LONDON Oct 19 Finance minister Philip Hammond
said on Wednesday he was sensitive to the potential problems for
British companies if the country decides to leave the European
Union's customs union as well as the EU itself.
"We're looking at all key sectors and you're right that we
should take particular note of those sectors with complex
pan-European supply chains where often components and
self-assemblies move backwards and forwards across European
borders several times before they get incorporated into a final
product," Hammond said in a response to a question from
He declined to comment on whether Britain would seek to stay
in the EU customs union.
It includes Turkey, Andorra and San Marino which are not
members of the bloc but trade freely and share the EU's common
external tariffs. If Britain was in the customs union, it could
complicate attempts to strike free trade deals with other
countries around the world.
(Reporting by David Milliken and Andy Bruce; writing by William
Schomberg; editing by William James)