Ben Bradley and Jeremy Corbyn
"The government will not be joining a customs union".
The stance puts him at direct odds with Prime Minister Theresa May, who wants to be outside any customs union so Britain can sign free trade deals with countries around the world after leaving the EU.
In a speech in Coventry, described as a high stakes showdown with Prime Minister Theresa May, Mr Corbyn said his party would rather contribute to the European Union budget to remain part of Euratom than pay more to duplicate its function in the UK.
"Labour would negotiate a new and strong relationship with the single market that includes full tariff-free access and a floor under existing rights, standards and protections", he'll say.
Mrs May has ruled out any Customs union with the EU after Brexit because it would prevent Britain from striking new trade deals with fast-growing economies including China and India.
Shadow Foreign Secretary Emily Thornberry told LBC last week that the party wanted a new customs relationship with the EU that was "pretty much the same" as the old one, while the Shadow Brexit secretary Keir Starmer hinted on Sunday that Labour would back a rebel Conservative amendment created to keep Britain in a customs union after Brexit.
Corbyn appealed to lawmakers from all parties to "put the people's interests before ideological fantasies" and join the Labour Party "in supporting the option of a new United Kingdom customs union with the EU".
But that, supporters of leaving the European Union argue, would prevent other trade deals around the world, which they see as one of Britain's big potential gains from Brexit.
'The other confusing element is the sense of "a" customs union as distinct from "the" customs union, there is an existing customs union and there are states who are members of the customs union that are not members of the single market, Turkey is an obvious example.
Barry Gardiner, Labour's shadow worldwide trade secretary, refused to be drawn on whether his party would back the amendment.
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Previously, Corbyn and the Labour leadership had left unanswered knotty questions about trade deals, except to say that Brexit should work for Britain's working classes.
Paul Everitt, Chief Executive of ADS, the trade association for the aerospace, defence, security and space sectors, said: "A customs union with the EU is a practical solution that would put businesses in the best possible position to compete after Brexit".
Corbyn's speech is most important for its opening up a clear policy divide - 20 months after the Brexit vote - between Labour and Tories.
Starmer hinted on Sunday that his party might support those amendments, which have the potential to hand the government a major defeat that would amount to a direct challenge to the prime minister.
"Sinn Fein's spokesperson for Brexit, David Cullinane TD, described Mr Corbyn's speech as a 'welcome dose of reality".
In this morning's speech at Coventry University Corbyn made skills and workers' rights the main focus of Labour's Brexit policy. There is likely to be a sizeable market reaction on the back of the news especially if clarity over the future trading relationship between Britain and the European Union is offered.
Nonetheless he argued that Labour would only stay in the Customs Union if it has a say in future EU trade deals.
"Despite Scotland's overwhelming vote to remain, Scottish Labour has swung fully behind his fantasy of a jobs-first Brexit".
Extracts of Corbyn's speech released in advance contained no mention of a customs union, although his office said he would be talking about it.
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