It changes the complexion of the U.K.\u2019s internal Brexit politics by establishing a position for proponents of a softer Brexit and those still in favor of no Brexit at all to rally behind.<\/p>\n
Amendments to Brexit legislation have already been set down in the House of Commons that aim to cause problems for May<\/a>. Internally, Labour calculates it needs the backing of just 10 Tory rebels to defeat the government on these clauses.<\/p>\n The first thing to note is the government controls when these bills are brought forward for parliamentary votes, so has delayed the crisis until at least April.<\/p>\n The bigger picture, however, is that Corbyn\u2019s closest advisers believe they can topple the government later this year when the final Brexit deal is put to MPs.<\/p>\n Forcing the prime minister to accept a new EU-U.K. customs union \u2014 precluding an independent British trade policy \u2014 would be a big step toward this goal, Labour believes. For many Tory MPs, not being able to strike trade deals outside the EU defeats the whole point of Brexit.<\/p>\n Corbyn poses for a selfie after his speech | Ben Stansall\/AFP via Getty Images<\/p>\n Developing an independent British trade policy is also the government\u2019s central strategic vision for life after Brexit. Inside a customs union, its \u201cGlobal Britain\u201d policy is dead. May might not survive such a humiliation.<\/p>\n The road map to her departure \u2014 or to another general election \u2014 is not simple though. A two-thirds majority is required in parliament to call an early election. This is only conceivable if May herself were to decide that one was necessary in order to resolve a customs union impasse \u2014 unlikely given how the last election went for her.<\/p>\n Also, under the strict wording contained in the Fixed Terms Parliaments Act, the customs union amendment vote could not be deemed a \u201cconfidence\u201d vote by the government \u2014 one that would force an election if it was lost. A standalone confidence vote could be held, but it is very unlikely any Tory MPs would vote against the government if the issue was decoupled from the customs union question.<\/p>\n Another scenario following the government losing a vote to keep the U.K. in a customs union would be a confidence vote triggered by Brexiteer MPs. And that might lead to an election called by a new Tory leader.<\/p>\n So a clash over the customs union could spell the end for May but not immediately and it is far from certain it would.<\/p>\n Labour\u2019s customs union decision is also a proxy for the party\u2019s wider belief that the U.K. should maintain a European economic model post Brexit. This contrasts with the emerging Tory position of \u201cmanaged divergence\u201d from European regulation with an emphasis on the advantage to be gained from flexibility in trade negotiations with bigger economic powers like the U.S. and China that do business in very different ways.<\/p>\n \u201cSome seem very keen on downgrading our trading links with Europe. But we do not believe that deals with the U.S. or China would be likely to compensate for a significant loss of trade with our trading neighbors in the EU, and the government\u2019s own leaked assessments show that,\u201d Corbyn said. \u201cBoth the U.S. and China have weaker standards and regulations that would risk dragging Britain into a race to the bottom on vital protections and rights at work.\u201d<\/p>\n Shipping containers and vehicles wait to be loaded for export at Liverpool Docks | Christopher Furlong\/Getty Images<\/p>\n The government, too, insists it does not want a race to the bottom<\/a>. Brexit Secretary David Davis said last week the U.K. would maintain high regulatory standards as the basis of trade with Europe, and insisted there would be no \u201cAnglo-Saxon race to the bottom.\u201d<\/p>\n Ministers reject the Corbyn characterization of \u201cGlobal Britain\u201d as a deregulators\u2019 charter, claiming they will bring the whole world with them in a \u201cglobal race to the top\u201d in high regulatory standards.<\/p>\n But Corbyn\u2019s focus on trade with Europe, within a European model of rights and standards, is a sign of clear blue water between the U.K.\u2019s main parties.<\/p>\n Corbyn might have come around to the idea of a customs union, but on the single market the Labour leadership remains in the territory of constructive \u2014 or unhelpful, depending on your point of view \u2014 ambiguity.<\/p>\n \u201cI welcome any Labour movement in right direction,\u201d tweeted Scotland\u2019s First Minister Nicola Sturgeon<\/a>, \u201cbut \u2026 it still sounds very similar to \u2018have cake and eat it\u2019 approach of PM.\u201d<\/p>\n Corbyn\u2019s vision of the Brexit deal is one that \u201cmaintains the benefits of the single market and the customs union \u2026 with no new impediments to trade\u201d without actually stating that the U.K. would be inside the single market. Many in Brussels say not being in the single market is the first and biggest \u201cimpediment to trade\u201d with the EU that the U.K. could place on itself.<\/p>\n The Labour leader also set out a wish list of \u201cprotections, clarifications or exemptions where necessary\u201d from EU rules, namely on state aid, competition, procurement and posted workers (rules that allow firms to bring staff from other EU countries without abiding by all local labor terms and conditions.)<\/p>\n Corbyn during his keynote speech on Brexit | Ben Stansall\/AFP via Getty Images<\/p>\n To the EU, Corbyn\u2019s approach amounts to granting the power for a state subsidized industry in the U.K. to flood the bloc\u2019s market unfairly with cheap goods. Those watching his speech in Brussels will have raised their eyebrows at such requests.<\/p>\n \u201cIf there is one thing the Commission has been banging on most uncompromisingly about for the future U.K.-EU relationship, it has been in regards to a level playing field as regards competition policy,\u201d said Allie Renison<\/a>, head of Europe and trade policy at the Institute of Directors, adding that it represents a \u201chuge cornerstone\u201d of the single market.<\/p>\n Labour\u2019s insistence that as part of a customs union and despite being outside the bloc, the U.K. should have a say in the EU\u2019s future trade deals, could also come up against EU resistance.<\/p>\n If anyone wanted an example of how Brexit turned British politics on its head, look at the Confederation for British Industry\u2019s response to Corbyn\u2019s speech.<\/p>\n The CBI, the U.K.\u2019s biggest business lobbying group, is no fan of Corbyn\u2019s approach to nationalization and the private sector. The Conservatives, meanwhile, have long considered themselves the natural party of business. But on the customs union question, Corbyn is now the CBI\u2019s champion in Westminster.<\/p>\n \u201cThe Labour leader\u2019s commitment to a customs union will put jobs and living standards first by remaining in a close economic relationship with the EU. It will help grow trade without accepting freedom of movement or payments to the EU,\u201d CBI Director General Carolyn Fairbairn said.<\/p>\n The unusual alignment of a unabashedly socialist Labour leader and big business \u2014 on this issue at least \u2014 prompted an exasperated editorial<\/a> in the London Evening Standard newspaper, edited by former Tory Chancellor George Osborne.<\/p>\n \u201cThe Labour leader has, with the smallest of nudges, manoeuvred himself into a more pro-business, pro-free trade European policy than the Tory government,\u201d the editorial says.<\/p>\n \u201cAt the Lancaster House speech a year ago, the option of membership of a customs union was kept open by the prime minister. Last week it was formally closed,\u201d it adds, referring to ministers\u2019 clear statements on the matter after Friday\u2019s away day<\/a> at the PM\u2019s country residence, Chequers.<\/p>\n \u201cThe result is an open goal for Labour \u2014 and surprise, surprise they just kicked the ball into the back of it.\u201d<\/p>\n Another major business group, the British Chambers of Commerce, was less sympathetic though, calling Corbyn\u2019s speech \u201cmore political than practical for business.\u201d<\/p>\n \u201cThe priority must be to delve far more into the detail and negotiate a pragmatic deal on both customs and regulatory recognition that allows businesses to get their goods across borders as quickly as possible,\u201d its director general, Adam Marshall, said.<\/p>\n Original Article<\/a><\/p>\n [contf] [contfnew] COVENTRY, England \u2014 It isn\u2019t in Jeremy Corbyn\u2019s gift to alter the U.K.\u2019s Brexit policy \u2014 but with hi..<\/p>\n","protected":false},"author":1,"featured_media":66625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-66624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\n![](\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/02\/GettyImages-924408814-714x476.jpg\"\/)
<\/p>\nGlobal Britain versus European Britain<\/h3>\n
![](\"https:\/\/www.politico.eu\/wp-content\/uploads\/2016\/10\/GettyImages-515664948-714x476.jpg\"\/)
<\/p>\nRed velvet cake and eat it<\/h3>\n
![](\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/02\/GettyImages-924445522-714x476.jpg\"\/)
<\/p>\nJeremy Corbyn, champion of big business<\/h3>\n
<\/p>\n
<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"