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Post-Brexit customs union would make Britain 3 percent poorer: NIESR
Source: Reuters
BUSINESS NEWS MAY 8, 2019 / 7:17 PM / UPDATED 2 HOURS AGO
Post-Brexit customs union would make Britain 3 percent poorer: NIESR
David Milliken
3 MIN READ
LONDON (Reuters) - Britain’s economy will be around 3 percent poorer over the long term if it leaves the European Union and retains a customs union with the bloc, the option favored by the opposition Labour Party, academic forecasters predicted on Thursday.
The National Institute of Economic and Social Research (NIESR) said the long-run loss after 10 years, compared to staying in the EU, would be equivalent to around 800 pounds ($1,040) per person per year.
“Leaving the EU for a customs union will make it more costly for the UK to trade with a large market on our doorstep, particularly in services which make up 80 percent of our economy,” NIESR economist Garry Young said.
A customs union would allow goods to flow across the border more easily than if Britain left the EU with no deal at all, but it would not guarantee frictionless trade and would limit Britain’s capacity to strike its own free trade deals.
NIESR’s report did not look at the option favored by Prime Minister Theresa May, which would see a looser EU trading relationship than a customs union.
-snip-
Post-Brexit customs union would make Britain 3 percent poorer: NIESR
David Milliken
3 MIN READ
LONDON (Reuters) - Britain’s economy will be around 3 percent poorer over the long term if it leaves the European Union and retains a customs union with the bloc, the option favored by the opposition Labour Party, academic forecasters predicted on Thursday.
The National Institute of Economic and Social Research (NIESR) said the long-run loss after 10 years, compared to staying in the EU, would be equivalent to around 800 pounds ($1,040) per person per year.
“Leaving the EU for a customs union will make it more costly for the UK to trade with a large market on our doorstep, particularly in services which make up 80 percent of our economy,” NIESR economist Garry Young said.
A customs union would allow goods to flow across the border more easily than if Britain left the EU with no deal at all, but it would not guarantee frictionless trade and would limit Britain’s capacity to strike its own free trade deals.
NIESR’s report did not look at the option favored by Prime Minister Theresa May, which would see a looser EU trading relationship than a customs union.
-snip-
Read more: https://www.reuters.com/article/us-britain-eu-niesr/post-brexit-customs-union-would-make-britain-3-percent-poorer-niesr-idUSKCN1SE2VY