Originally Posted by
jmclaugh:
“Not afaik it didn't and iirc the customs union was hadly ever mentioned during ther referendum campaigns by either side.
I thought that to be able to negotiate trade agreements the UK would need to leave the customs union and this point is made by a number of sources. This is incorrect according to the article below which cites Turkey, a customs union member, as making FTAs with other countries. The article sees no advantage to the UK remaining in it.
http://campaignforanindependentbrita...nograph-16.pdf”
There is nothing in the WTO definition of a Customs Union that stops parties making their own FTAs. However it's unusual as as it kind of defeats the purpose of the Customs Union.
In the case of the Turkey /Eu agreement the purpose was set out in the Ankara agreement and it was to harmonise the Turkish position with the EU so that Turkey could eventually join the Eu. So the Eu can go off and sign FTAs with other countries without including Turkey. Turkey, under the Ankara agreement rather than the Customs Union are then meant to go off and try to replicate the same deal with the third party but the third party is under no obligation to play ball.
The EU did this with Mexico but Turkey was unable to get the same agreement with Mexico. So if a Mexican car is exported directly to Turkey it pays a 12% tariff. However if the car should be imported via an EU country it comes in tariff free and can be moved into Turkey tariff free. As Turkey has a land border with Bulgaria the Mexican car manufacturer has no incentive to put pressure on the Mexican government to do a free trade deal with Turkey.
This doesn't suit the UK which has a land border with Ireland and a tunnel to France. So even though we could do our own FTAs our negotiating position would be weakened. I don't think it is the long term deal that is right for the UK.
(The Turkey agreement was initiated in the late 1960s when the EC was still the group of 6 with no land border with Turkey and the nearest Ec port was in Italy - so the additional costs of shipping via the EC would often be greater than the Turkish tariffs. It was meant to be a precursor to Membership and even for Turkey was never meant to be the ideal long term solution.)