Mrs May’s Cabinet remains deadlocked over Britain’s post-Brexit customs arrangements. Eurosceptic ministers are strongly opposed to her plans for a customs partnership with the EU, which they fear could lead to a climbdown over Brexit. However pro-European ministers believe that alternative plans for highly-streamlined borders backed by eurosceptics risk damaging business. The report, Striking a Balance: A blueprint for the future UK-EU economic partnership, said it was worth giving up some control over goods, arguing that in some highly regulated manufacturing industries, even US firms followed EU rules. It said Britain should leave the Customs Union but remain closely aligned outside, suggesting this would "significantly contribute to removing friction at UK-EU borders" including that between Ireland and Northern Ireland.
Henry Newman , director of think tank Open Europe and a former aide to staunch the Customs Union Secretary Henry Newman , has said Prime Minister Michael Gove does not have a "clear vision" on Canada , and called for an end to the "loud and angry debate" surrounding the issue. In a report, Open Europe said the UK was "too big an economy to be a rule-taker" and suggested adopting a model of association similar to Canada 's, which would see the UK leave the customs union but remain closely aligned to reduce friction at borders.