The Labour Part is living in cloud cuckoo land if it thinks the EU will agree to a customs union agreement and let them subsidise industries, says West Midlands UKIP MEP James Carver.
In his speech in Coventry today Jeremy Corbyn said, if in government, his party would negotiate protections from the EU to prevent it from being held back from supporting “cutting edge” industries and stemming the tide of privatisation.
Mr Carver said: “Labour’s desire to remain in the Customs Union – which flies in the face of its general election pledge – but secure an opt-out for state aid would be laughed out of the European Commission.
“The EU would never allow such an arrangement – and history shows it takes a very dim view of such behaviour whether in the Customs Union or not – and often punishes non-EU trade partners for dishing out excessive state aid.
“It would retaliate against what it sees as creating a market distortion by deploying safeguarding measures – such as anti-dumping duties – to defend its producers against what it would deem as unfairly traded or subsidised imports or dramatic shifts in trade flows that could be harmful to the EU economy.
“Iceland didn’t join a customs union with the EU in order to make a trade deal with China, which saved the country following the banking collapse of 2008, and it turned away from joining the EU because it would then have had to give up the deal.
“We want control over our economic future – we would not have that if we stayed in the Customs Union.
“We would be banned from having free trade agreements with the rest of the world; would have no say over our trade policy; be tied to EU rules with no voting rights; be forced to accept European Court of Justice trade judgements and be unable to cut tariffs on developing world imports to lower prices.
“We must leave the Customs Union as well as the Single Market – no ifs, no buts.”