Paul Nowak, the General Secretary of the Trades Union Congress (TUC), urged Prime Minister Keir Starmer to consider a customs union with the European Union to bolster economic growth. Nowak told the BBC that establishing the "closest possible economic and political relationship with the European Union" would be "essential" for improving living standards and maintaining faith in mainstream politics.
Nowak argued that a customs union would lower trade barriers with the UK's largest market. His comments come as Starmer has stated his intention to "reset" relations with Brussels, while ruling out rejoining the EU's single market and customs union.
A customs union with the EU would eliminate tariffs and other trade barriers between member countries, while also establishing a common external tariff on goods entering the union from outside. The prime minister fears that recent trade deals with countries such as the United States and India would be scrapped if the UK rejoined a customs union. The Labour Party's manifesto also ruled out signing up to the existing EU customs union.
The TUC has been advocating for stronger workers' rights and has called on the government to deliver a workers' rights bill in full. Thirteen Labour MPs recently voted in favor of talks on joining an EU customs union, signaling a potential divide within the party on the issue.
Senior cabinet ministers, including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy, have recently alluded to the possibility of re-evaluating the party's stance on closer ties with the EU, though without explicitly advocating for rejoining the single market or customs union. The debate over the UK's relationship with the EU continues to be a significant political issue, with various stakeholders offering differing perspectives on the optimal path forward.
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