5. Option: EFTA

The UK was the major founding member of EFTA.

EFTA has free trade agreements with the EU and many other countries. Re-joining EFTA would guarantee that UK goods had tariff-free access to the EU and ensure the UK did not impose tariffs on goods imported from the EU.

Crucially for Brexit voters, it would not impose free movement of people. On the other hand, it would not offer free trade in services between the UK and the EU, and services are a major UK export.

Of course there are many other kinds of barriers other than tariffs and some commentators suggest non-tariff barriers may be more relevant. These take the forms of import quotas, import licensing, pre-shipment inspections, rules of origin, customs delays, technical barriers, and other measures that impede trade. Some commentators suggest that the cost of EFTA membership, post-Brexit damage, and the cost of non-tariff barriers would ultimately be higher than the cost of EU membership.

Some EFTA members have offered a warm welcome to the UK and others are rather cooler. From a UK perspective, rejoining EFTA may seem a little like going back to the primary school playground for a game of football when you have been playing at secondary school level.

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