Labour EU customs policy remains a point of debate after Sir Keir Starmer confirmed the party will not rejoin the EU’s customs union. The party has ruled out full membership, despite claims from some MPs that such a move could boost economic growth.
Speaking on a Thursday podcast, deputy prime minister David Lammy said Brexit had clearly harmed the UK economy. He described leaving the EU as creating trade friction and limiting access to an important marketplace. Lammy noted that Turkey, which maintains a customs union with the EU, had experienced economic growth as a result.
However, he clarified that Labour does not currently plan to rejoin the EU’s customs union. Lammy said, “That’s not currently our policy, that’s not currently where we are.” He suggested the Turkish model might offer a compromise, allowing smoother trade without undermining post-Brexit commitments.
The UK’s current trade arrangements reflect Labour’s position of building stronger economic ties through alternative agreements. The government is pursuing side deals covering food standards, youth visas, carbon pricing, and electricity trading. These measures aim to maintain close EU ties while retaining trade independence.
Sir Keir responded on Friday, emphasizing that the party’s stance aligns with the election manifesto. He said Labour has “totally reset” the UK’s relationship with Europe since taking office last year. The prime minister insists economic growth remains the government’s top priority.
A Downing Street spokesperson also downplayed Lammy’s comments, stressing the need to rebuild EU ties while adhering to red lines. The spokesperson highlighted trade deals with India and the United States as examples of opportunities created by Brexit.
Meanwhile, the Liberal Democrats urged Lammy to “vote with us” next week when the party seeks a vote on rejoining the customs union. Europe spokesperson Al Pinkerton said the move could solve pressing economic problems, calling it “time for Lammy to put his money where his mouth is.”
As Labour EU customs discussions continue, the debate highlights ongoing tension between economic pragmatism and the party’s commitment to Brexit promises. Observers will watch closely to see if compromises emerge in Parliament and how the public responds to trade-focused proposals.
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