Conservative peer Lord Hannan's colourful analogy – that leaving the EU only to rejoin its customs union is like "throwing away the burger and eating the napkin" – has found a powerful echo in Westminster. According to former Trade Secretary Kemi Badenoch, he is absolutely right.
A Bizarre and Damaging Retreat
In recent weeks, a surprising campaign has emerged from some Labour and Liberal Democrat politicians, amplified in major newspaper interviews, advocating for the UK to re-enter the European Union's customs union. Badenoch argues that most proponents of this idea were not on the frontline during the political turmoil of 2017–2019, which followed the Brexit referendum. Those who were, particularly Labour MPs now supporting this move, appear to have learned nothing from the experience.
The former Trade Secretary states bluntly that the only people championing this policy, including certain trade union bosses, fundamentally misunderstand what a customs union entails. Drawing on her experience, she emphasises that trade policy is about making hard choices to defend British national interests, often requiring the rejection of deals that are easy to sign but detrimental to the country.
The High Cost of Surrendering Trade Autonomy
Badenoch warns that the renewed chatter about dragging Britain back into the EU's framework is a symptom of weakness, not pragmatism. She contends that it is now "painfully obvious" Prime Minister Keir Starmer entered government without a solid plan, citing a long list of "humiliating U-turns" on policies from winter fuel payments to tax thresholds.
Rejoining the customs union, she asserts, would inflict severe damage on the British economy and make the nation poorer. Four major Brexit benefits would be instantly lost: the UK would forfeit the right to set its own tariffs, negotiate its own independent trade deals, maintain the agreements it has signed since leaving, and reject deals struck by others that harm British interests.
Furthermore, Badenoch predicts the EU would demand significant concessions for re-entry, concessions a "hapless" Labour government would likely surrender. She points to what she calls Starmer's previous negotiating "humiliations," such as allegedly giving up fishing rights for an EU defence fund with no access and paying nearly £600 million to rejoin an Erasmus-style scheme previously deemed too expensive at £100 million.
Contrasting Records and a Conservative Plan
The article draws a sharp contrast between the records of the two parties. Badenoch acknowledges Conservative mistakes but states her party left Labour the fastest-growing economy in the G7, record employment, and inflation on target at 2 per cent. As Trade Secretary, she highlights signing the UK into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a major post-Brexit deal with a market of 500 million people.
Since the change in government, she claims growth has flatlined, unemployment has risen monthly, and inflation has nearly doubled. Badenoch concludes that Britain needs a government with a clear plan, which she believes the Conservatives offer. This includes scrapping taxes like stamp duty, cracking down on benefits, and leaving the ECHR to "stop the boats." For Badenoch, talk of a customs union is a dangerous distraction from the real work of reviving a nation in a slump.
