New research indicates Brexit has reduced UK exports to the EU by 12%, with services exports down 7% and goods exports down 16%. Leaving the single market accounts for most of this decline, with regulatory costs having a greater impact than customs barriers. Rejoining the customs union would offer only a minor benefit.
The Liberal Democrats are pushing for the UK to rejoin the EU's single market, urging Labour leader Andy Burnham to abandon his party's "red lines" on closer economic ties with Europe. Ahead of the Brexit vote anniversary, the Lib Dems advocate for free movement and a new customs union to reverse perceived economic damage.
The UK government proposed a single market for goods with the EU, but EU officials reportedly rejected it, suggesting a customs union or EEA instead. Labour's red lines prevent these alternatives. The UK hopes for agreements on food, emissions trading, and youth mobility at an upcoming summit.
