Rejoining customs union would not fix damage caused by Brexit, research finds
Summary
Research shows that Brexit has reduced UK exports to the EU by about 12%. Rejoining the customs union would only fix a small part of this problem, while the biggest losses come from leaving the single market.Key Facts
- UK exports to the EU are 12% lower due to Brexit.
- Services exports to the EU are 7% lower, and goods exports are 16% lower than if the UK stayed in the EU.
- Most of the export loss (10% out of 12%) is caused by leaving the single market.
- Regulatory checks and new certification requirements have a bigger impact than customs barriers.
- Sectors most affected include travel, finance and insurance, chemicals, pharmaceuticals, and food.
- Rejoining the customs union would reduce some trade rules but would not help services exports much.
- Being in the customs union means the UK would have to follow EU tariffs and lose freedom to make separate trade deals.
- Fully rejoining the single market would mean accepting free movement of people, budget contributions, and following EU rules without voting rights.
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