Philip Hammond: EU Has Already Objected Max Fac Customs Solution


Philip Hammond, the British Chancellor, has said that the European Union has already slapped down the customs solution that was proposed by the Leavers which include Boris Johnson.

This week, the so-called max fac model, or “maximum facilitation,” gained some traction. It was revealed that ministers who are working on the problem were set to get behind the idea.

However, it seems like the European Union may have already poured on cold water on the said proposal. Talking to Business Insider, Hammond said that max fac was not likely to be accepted by the European Union.

Philip Hammond,  the UK Chancellor of the Exchequer, said during an interview with the Business Insider that the European Union has some objections “in principle” to the customs proposal that is being pushed by the David Davis and other leading Conservative Brexiteers.

Hammond told Business Insider: “The EU negotiators have an objection in principle to the so-called max fac option. And that is that it requires an exemption for small traders across the Irish border, which they object to.”

This is considered to be the most recent setback that will add more tension to the long-running negotiations on how to deal with the Irish border after Brexit takes place in March 2019.

According to the Chancellor, a customs partnership that is not supported by most Leavers is another alternative model that could be considered to be more feasible.

He said that the European Union only has “practical concerns” which could be addressed to look for a solution.

He stated: “Their concerns about the hybrid model are, as I understand it, more practical concerns. They’re not objections in principle, but they’re objections about the deliverability of the model. We accept those challenges.”

He continued: “We accept that there’s more work to do here — there’s still more work.”