Business
EU ‘open-minded’ on UK customs union talks, commissioner says
Brussels would be willing to discuss closer trade ties with the UK, including the possibility of cooperation on a customs union, a senior European commissioner has said, signalling the clearest openness yet from the EU to re-engage with Britain.Speaking to the BBC
after high-level talks in London, Valdis Dombrovskis, the European Commissioner for Economy, said the EU was “ready to engage with an open mind” if the UK wanted to explore deeper economic alignment.
His comments come amid growing pressure on Labour to reconsider its stance on a customs union with the EU, as businesses and some MPs argue closer ties could help offset global trade uncertainty.
Dombrovskis also said the EU and UK could remove “most” food checks between Britain and the bloc if agreement is reached on aligning sanitary and phytosanitary rules, potentially easing one of the biggest sources of friction for exporters since Brexit.
The commissioner was speaking following meetings with senior UK ministers, including Chancellor Rachel Reeves, European trade commissioner Maroš Šefčovič, and cabinet ministers Peter Kyle and Nick Thomas-Symonds.
The group, informally dubbed the “Quint” by diplomats, is intended to meet regularly to coordinate responses to a rapidly shifting global trade and security environment. While it is not formally tasked with renegotiating Brexit arrangements, its creation signals a renewed willingness on both sides to cooperate.
At a public event alongside Dombrovskis, Reeves said stronger UK-EU ties were becoming increasingly important as “we are sliding towards a world where the rules are less clear”, pointing to heightened geopolitical and trade tensions.
A customs union would eliminate tariffs on goods traded between the UK and the EU and significantly reduce border bureaucracy. However, critics argue it would restrict the UK’s ability to strike independent trade deals, as Britain would be required to align with the EU’s common external tariff and trade policy.
Labour’s election manifesto ruled out rejoining the EU customs union or the single market, and also rejected freedom of movement. However, senior figures have increasingly acknowledged the economic case for closer alignment, with Foreign Secretary David Lammy previously suggesting a customs union could support growth.
Asked directly whether the EU would welcome talks on a customs union, Dombrovskis stopped short of a commitment but said: “We are ready to engage with an open mind and seek those areas of cooperation.”
He added that the EU was also open to discussing alignment in specific single-market areas, while stressing that full single-market membership would require acceptance of the four freedoms, including freedom of movement.
On defence, Dombrovskis said the EU remained open to further discussions on UK participation in the bloc’s €150bn Security Action for Europe (SAFE) defence loans programme, after talks stalled last year over limits on British firms’ involvement.
“We know the prime minister has expressed interest in returning to this issue, and there is certainly openness from the EU side,” he said.
Progress has been stronger in other areas. Dombrovskis confirmed talks on a youth mobility scheme were “very advanced”, and said a forthcoming food standards agreement could eliminate most border checks, provided the UK aligns with EU rules.
The Liberal Democrats, who have long backed a customs union, welcomed the comments as a turning point. Treasury spokesperson Daisy Cooper said the EU’s stance was “a significant moment the government simply cannot afford to ignore”.
The developments come against the backdrop of escalating global tensions, including US tariff threats and renewed uncertainty over international trade rules, which both London and Brussels see as strengthening the case for closer cooperation.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.