UK's May battles split with Cabinet over customs union, Brexit transition
UK Prime Minister Theresa May was on Friday trying to mend the usual splits in her Cabinet and address concerns that she would be unable to agree a Brexit transition deal by March.
The EU has agreed its bargaining position on the transition, offering 21 months of business-as-usual after the UK leaves the 28-member bloc in March 2019.
However, it is conditional on Britain adhering to all existing rules and decisions by the European Court of Justice and guaranteeing the rights of European citizens who settle in the UK during the changeover. EU leaders also demanded much more clarity from May on what she wanted in a final deal.
Hard right Brexiteers within May's government want a split from the European court and tougher rules on immigration.
In a television interview while on a trip to China this week May said the transitional arrangements would be in place at the next phase of talks in March.
“In seven weeks time, we will have an agreement with the European Union, that is the timetable they have said on an implementation period,” May said.
The pressure on May increased on Friday when Cabinet members openly disagreed on whether the UK should remain part of a customs union with the EU.
The Financial Times reported on Friday that the Chancellor Philip Hammond, and the Business Secretary, Greg Clark, favoured staying in a customs union for goods.
However, International Trade Secretary and a proponent of a 'hard Brexit' Liam Fox, dismissed the idea out of hand, saying it would hinder the UK in making free trade deals elsewhere.
“It is very difficult to see how being in a customs union is compatible with having an independent trade policy, because we would therefore be dependent on what the EU negotiated in terms of its trading policies, and we’d be following behind that,” he said.