Cabinet ministers have been given detailed warnings that the UK pulling out of the EU customs union could lead to a 4.5% fall in GDP by 2030 and the clogging up of trade through Britain’s ports. That would involve remaining inside the single market but outside the customs union, within which countries set common external tariffs and so do not require customs checks. “Whether in or out of the customs union, British negotiators should treat the maintenance of unimpeded movement of trade as non-negotiable,” he said. James Hookham, of the Freight Transport Association, said there would be a “profound” impact if there is a sudden exit from the customs union as over half of Britain’s exports go to the EU. Charles Grant, director of the Centre for European Reform, said that Irish officials feared that the return of customs posts would provoke terrorist attacks.

Source: The Guardian October 18, 2016 21:00 UTC