The Liberal Democrats are to call for the government to seek a formal customs union with the EU to boost growth and insulate the UK from the impacts of a Trump presidency, a move that will place new pressure on Keir Starmer over Europe.
The changed Lib Dem stance – the party’s election manifesto argued only for closer links with Europe – will be made by its leader, Ed Davey, in a speech in London on Thursday.
Calling for talks to begin immediately on a customs union, with a target of 2030 for it to come into force, Davey says ministers should be “far more positive, far more ambitious” rather than “tinkering around the edges of the botched [Brexit] deal the Conservatives signed four years ago”.
A customs union would be “the single biggest thing we can do to turbocharge our economy in the medium and long term”, Davey is expected to say. The Lib Dem leader has argued that closer links with the EU in both trade and defence could help the UK “Trump-proof” itself against the returning US president, who will be inaugurated on Monday.
While the Lib Dems have been the most openly critical of Trump among the three biggest Westminster parties, sources say they are keen to suggest ways for the UK to cope better with his administration rather than try to pretend it does not exist, as arguably happened during his first term.
An explicit call to seek renewed membership of the customs union, where the UK would sign up to common trade rules and tariffs in exchange for smoother imports and exports, is also intended to appeal to voters frustrated at Labour’s limited movement over Brexit – even if negotiating such a deal would be very complex.
In his speech, Davey will argue that better EU ties would allow the UK to deal with Trump from a position of strength, saying: “The answer is to show we are not so reliant on the United States, that the UK has alternatives, and won’t be bullied into taking whatever Trump offers us.
“We can rebuild our crucial relationship with Europe so much faster. That is how we can protect our economy, defend European security, and deal with President Trump from a position of strength, not weakness.”
In the speech, Davey will contrast this approach to what he says is the one taken by the Conservative leader, Kemi Badenoch – to “go to him cap in hand and beg for whatever trade deal he’ll give us”.
He is also expected to say: “Nor can we take the Farage approach of fawning over Trump and licking his boots, seemingly more interested in advancing Trump’s agenda over here than the UK’s interests over there.”
