Labour MPs are to press the chancellor on the risks of Britain leaving the EU customs union, after the Guardian revealed Whitehall estimates showing it could knock 4.5% off GDP. I hope the chancellor will be able to share his thinking with us.”Theresa May given stark warning about leaving customs union Read moreTrade flows and foreign investment would also be hit hard by leaving the customs union, according to figures calculated for the Guardian on the same basis as those prepared by civil servants for the government’s Brexit committee. Ministers were also warned at the Brexit committee that if leaving the customs union meant enhanced border checks, it could clog up Britain’s ports. Many Brexiters assume leaving the customs union is an inevitable result of leaving the EU. Fergus McReynolds, EU director of manufacturers’ group the EEF, said: “Whilst the UK is a member of the customs union, manufacturers in the UK have traded with EU partners without experiencing the delays and burden of comprehensive customs controls.

Source: The Guardian October 19, 2016 11:48 UTC