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A reminder that a customs union is not soft Brexit. It only eliminates some tariff costs. The biggest costs of Brexit come from leaving the single market.
Have been asked to elaborate. Here goes. Being in the CU would help car manufacturers that import a lot of car components from outside the EU. Think of Nissan, Honda, and Ford. 2/
That means that they can put those components straight into their cars, and send them to the EU without further checks, because the UK would be inside the EU’s tariff regime. That’s helpful, but a small extra benefit compared to a free trade agreement. 3/
A single market tries to make capital, labour, goods and services move more freely. Common goods standards mean that there are no checks on whether a car made in the UK meets EU rules. 4/
Common financial services rules mean that banks can lend to each other, and to businesses and consumers across borders. 5/
Free movement means that businesses can send workers to different countries without the hassle of visas, lorry drivers can ship goods across borders without being subject to quotas, and employers can hire from a larger pool of labour. 6/
That’s why the so-called ‘non-tariff barriers’ that the single market tackles are more important than tariffs, and why the EU’s single market has been more successful at raising trade between its members than FTAs. Ends
