Re-joining the EU customs union would mean losing the benefit of new trade deals and is not on the cards, the Chancellor has said, as she focuses on “breaking down barriers” to trade.
The remarks come as Ms Reeves announced plans for the UK to reimburse visa fees and fast-track applications for top international firms.
Asked if re-entering a customs union with the bloc was on the cards, she told Bloomberg TV: “No, it was very clear in our manifesto that we wouldn’t be re-joining the customs union, the single market, or bringing back free movement of labour.
“We can’t go back in time and since we’ve left the EU we have done trade deals with India, with the US, with South Korea, and obviously you would lose the benefit of some of those trade deals if you were to re-enter a customs union.
“I don’t think you have to return to the customs union to seize greater benefits of free and fair trade.”
Ms Reeves added: “These are times when others are putting up barriers to trade. What Britain is arguing for, and what I believe in strongly, is that those of us who believe in free and fair trade practice what we preach and reduce barriers between ourselves.”
The Chancellor was speaking at the World Economic Forum in Davos as she sought to woo business chiefs and incentivise investment into the UK in her push for economic growth.
Under Treasury proposals, visa fees will be reimbursed for “select trailblazers in deep tech sectors” and workers joining British companies in these “priority” industries.
Meanwhile, companies seeking to grow their footprint in the UK will be offered fast-track processing for their sponsor licenses.
