'Britain could remain in EU customs union', says trade minister

Britain could continue to trade freely in Europe through the bloc's customs union despite the Brexit vote, the international trade minister has said.

Greg Hands said Britain could seek a deal with Europe that would allow individual sectors to trade easily with EU nations.

The customs union covers the 28 EU states, as well as Turkey, Monaco, San Marino, Andorra and non-EU UK territories such as the Channel Islands.

Each nation enjoys free trade but must impose common external tariffs on goods arriving from outside the union.

The sectors within the trade club are also barred from doing bilateral trade deals with other countries.

Some of the main economic sectors in Britain include mining, fishing and agriculture as well as factories making toys, cars, food, and clothes.

Mr Hands said the UK would not face a "binary" choice between remaining within or moving outside the customs union when it negotiates its withdrawal from the EU.

Speaking to Bloomberg, the minister suggested the UK could be selective about which sectors of the economy it could include in the arrangement.

He said: "You can choose which markets, which products the customs unions affect and which they don't, so there isn't a binary thing of being inside the customs union or outside of the customs union.

"The history of international trade has got all kinds of examples of customs unions."

Supporters of the customs union claim if the UK were to leave it, paperwork would increase for UK businesses.

Critics say it limits ability to negotiate trade deals with countries outside the union.

Mr Hands' comments come after Brexit Secretary David Davis signalled the UK may also take a flexible approach to immigration controls after leaving the EU.

Mr Davis told business leaders on Thursday that post-Brexit changes to migration rules would not be allowed to damage the economy by creating labour shortages in key industries.