Nearly a decade since the Brexit vote, Britain’s economy shows lasting challenges. Trade, investment, and living standards have all taken a hit. In 2020, the UK faced tougher trade barriers with the EU, its biggest trading partner. Wes Streeting, a Labour frontbencher, recently called for a deeper trade link with the EU, hinting at joining a customs union. Labour leader Keir Starmer opposes this idea. UK exports to the EU were £358bn last year, 41% of total exports, while imports stood at £454bn. Under Boris Johnson’s deal, Britain has tariff-free trade but faces new rules that limit access compared to EU membership. UK goods exports dropped sharply after Brexit and remain below 2019 levels. Services exports fell in 2020 but have since bounced back. Financial services suffered big losses in the EU market. Labour’s manifesto rejects returning to the single market or customs union due to issues like freedom of movement, seen as a key reason behind Brexit. Instead, Labour promises to remove trade barriers through targeted deals, such as on veterinary rules and professional qualifications. The UK and EU made progress this year with agreements on some trade areas and plans for youth mobility and energy cooperation. Still, the expected economic gains are small; models predict only a 0.3% GDP boost by 2040 from new deals, far less than Brexit’s estimated 4% GDP loss. A customs union could offer bigger benefits by cutting bureaucracy and costs linked to “rules of origin.” The Liberal Democrats say a bespoke customs union could add 2.2% to the economy and £25bn yearly to public funds, though experts warn this assumes deep regulatory alignment. Negotiations for a customs union would be complex. The EU would likely demand tough terms, possibly including freedom of movement and budget contributions. Joining would also mean following EU tariffs without UK control over trade policy, limiting new trade deals. Some argue the UK’s independent trade policy helped avoid harms from the US trade war and created opportunities. Most economists agree closer EU ties would boost growth but expect lengthy political battles ahead both at home and with Brussels.