Growth in Britain will be damaged if politicians can't do a deal to avoid the costs of leaving the EU customs union, according to a new report from the House of Lords.
The European Union is Britain's largest trading partner with almost £357 billion ($431 bn) of goods flowing between the two each year, according to 2016 figures from the Office for National Statistics.
Now the EU External Affairs Sub-Committee, chaired by Baroness Verma, has published a report Tuesday studying how Brexit will affect the U.K.'s trade with the European Union.
The report found that avoiding barriers to trade will be essential if the U.K. is to succeed in its commitment to pushing growth in regions where manufacturing and agriculture are prevalent.
"The manufacturing and primary commodities sectors are integrated into efficient EU-wide supply chains.
"Supplies and components may cross the Channel multiple times during production, and tariffs on UK-EU trade in goods could be imposed every time, increasing costs.
"Many UK businesses cannot easily substitute their imports from the EU, or find alternative export destinations," the report stated.
The study concluded that leaving the EU customs union would mean increased administrative costs for U.K. firms as well as possible delays to deliveries.