How a customs union with the EU might work

I've been talking a lot to somebody whose job involves knowing about the way the EU works and some of the issues involved in Brexit. They get frustrated at the way that basic issues are not addressed in most discussions. I suggested that they talk about it, but because their job touches on these issues they feel they can't blog publicly. So I'm lending them this page. They are convinced nobody will read it and they may be right, but if you want to sound vaguely intelligent about some of the issues regarding the new proposed customs union you might like to have a look.

Comments are welcomed, but will be moderated. Unsubstantiated expressions of opinion will not be published. This is an attempt at a serious discussion around Brexit, not yet another re-hash of the referendum arguments.

Wise (anonymous) words

Turkey is only example of a non-EU country which has a customs union with the EU – so it worth understanding how it operates.

1) It does not apply to agriculture.

2) It does not prevent border checks: Where Turkey does not follow EU rules for the production, labelling, movement and storage of these goods, it still faces border checks for compliance, ranging from document checks to testing product samples. According to the FT, trucks on the Turkey-Bulgaria border may back up as far as 17 kilometres. This is partly because the customs union does not cover transport and Turkish hauliers must apply for transport permits for each member state they travel through.

3) Where either the EU or Turkey feels that imports are unfairly damaging its own producers, it can impose sanctions. These are common. A World Bank study showed that in 2014, the EU had actual or proposed anti-dumping duties on $500 million of Turkish exports to the EU, and Turkey had actual or proposed anti-dumping duties on $1billion of EU exports.

4) Turkey has to grant tariff-free access to goods from a third country with which the EU has negotiated a free trade agreement – but doesn’t necessarily get access to that country’s markets. For example, Turkey cannot export tariff free to Algeria, South Africa, or Mexico, but must grant those countries tariff free imports to Turkey.

None of this is mentioned in the Government’s paper in the negotiations. For God’s sake – time for a grown up debate, folks.