Businesses have spent the last 18 months analysing what is important about the future economic relationship between the UK and EU as negotiations move into phase two. Analysing the evidence of the models on the table, the CBI suggests a new relationship with the EU single market is needed, one that goes a lot further than Canada on services and rules, as well as on customs. A hybrid or “managed alignment” model could be an acceptable alternative to single market membership, and a comprehensive customs union is needed as part of the practical answer to some of the many challenges Brexit presents.