Brexit - what does this mean?
hard Brexit arrangement would likely see the UK give up full access to the single market and full access of the customs union along with the EU.
The arrangement would prioritise giving Britain full control over its borders, making new trade deals and applying laws within its own territory.
Initially, this would mean the UK would likely fall back on World Trade Organisation (WTO) rules for trade with its former EU partners.
What are the pros and cons?
The International Trade Secretary, Liam Fox, has said a hard approach would benefit the UK by making it a global trading nation. He said that "the UK is a full and founding member of the WTO", during a speech in Geneva last Tuesday,
German business leaders have expressed a similar view. Markus Kerber of the German BDI group told BBC Radio 4's Today programme: "It's better to have a hard Brexit that works than to have a fudge in the middle that has to be renegotiated or doesn't politically work and you have uncertainty lingering on."
A hard Brexit, however, could see British goods and services subject to tariffs, adding 10 per cent, for example, to the cost of exported
cars, or 5 per cent to other products, into the EU. While sectors such as agriculture could lose protections against cheap imports from abroad.
fact, as we import more than we export, if there was a 5% tarrif going
both ways, in and out of the EU, we would actually make a profit on the
we already pay about a 5% tariff to our 2nd biggest export market, the
USA, and this doesn't present much of a barrier.
Leaving the customs union would mean a significant increase in bureaucratic checks on goods passing through ports and airports. And nations such as the US and Australia have said that reaching a new trade agreements with the EU would take priority.
alternative - see the 5 point plan.