A meeting of the UK government’s cabinet has reiterated that the UK will leave the EU’s customs union in 2019 when the UK formally exits the bloc. However, remarks by a senior minister also suggest that the UK will aim for ‘frictionless’ trade with the EU by aligning UK regulations with those of the EU in some industrial sectors, including automotive.

Health minister Jeremy Hunt told BBC radio there was no possibility of the government changing its position on leaving the EU’s customs union after Brexit. If the UK stays in a customs union with the EU, it would be severely constrained on striking trade deals with non-EU countries around the world.

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Leaving the customs union raises the possibility of tariffs on shipments of goods between the UK and the EU, as well as added checks – and costs – on cross-border trade. The auto industry in Britain is particularly concerned over future trade arrangements between the UK and the EU because of the volume of automotive trade (both vehicles and parts) and the impact on pan-European supply chains. Hunt’s comments point to the UK’s search for a compromise arrangement on UK-EU trade that would minimise the impact of leaving the EU’s customs union and single market via a new ‘bespoke’ trade deal.

The UK’s ‘alignment’ of standards with the EU – if recognised by the EU – could be an important element in a new set of arrangements governing UK-EU trade.

“There will be areas and sectors of industry where we agree to align our regulations with European regulations, the automotive industry is perhaps an obvious example because of supply chains that are integrated, but it will be on a voluntary basis,” Hunt told the BBC.

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Hunt also said in the interview Britain would have the right to diverge from EU rules, if it chose to do so.

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The UK government is currently in negotiations with the EU over the terms of the UK’s withdrawal from the trade bloc in 2019.