In a much-anticipated speech, Prime Minister Theresa May outlined her objectives for Brexit on Tuesday.
One thing May made clear was her intention for the UK to leave the European single market, which allows the free movement of goods, services and workers between its members.
“This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states. It should give British companies the maximum freedom to trade with and operate within European markets, and let European businesses do the same in Britain.
“But I want to be clear: What I am proposing cannot mean membership of the single market.” she said on Tuesday.
Addressing an audience in central London, May told the remaining member states: “We will continue to be reliable partners, willing allies and close friends. We want to buy your goods, sell you ours, trade with you as freely as possible, and work with one another to make sure we are all safer, more secure and more prosperous through continued friendship.”
The Prime Minister also rejected the common external tariff that prevents Britain from negotiating separate trade deals with third countries. However, she went on to say that she had an “open mind” on how it could be amended.
“I do want us to have a customs agreement with the EU,” she said. However, this was something to be on Britain’s terms. “No deal for Britain is better than a bad deal for Britain”
Shadow Brexit secretary, Sir Keir Starmer, told BBC Newsnight that Britain should stay in the customs union.
“We have to decide how we front up to these negotiations. We need to aim for the best deal for the UK. That’s the deal that works for trade. It’s a deal that accepts there has to be change on freedom-of-movement rules. That’s the starting position.”
“Preserving our ability to trade successfully in Europe has to be the priority for business. Staying in the customs union is the best way to achieve that.” he said.
Following May’s speech, Liberal Democrat leader Tim Farron has told press that whatever the Prime Minister’s intentions are for Brexit, it will be a destructive process.
“You can call this Brexit clean, red, white and blue, or whatever you want. But this doesn’t disguise the fact that it will be a destructive, hard Brexit and the consequences will be felt by millions of people through higher prices, greater instability and rising fuel costs.”
The value of the pound increased after May started her speech. Sterling was as much as 1.9 percent higher at $1.2278 before easing to trade 1.6 percent stronger at $1.2250.