George Osborne has called on the Labour government to "re-enter the customs union" and has praised the PM's UK-EU reset.
The former chancellor is speaking to the Commons Treasury Select Committee ahead of the autumn budget later this month.
He said that Brexit has done "damage" to the UK economy, and insisted he is not trying to "relitigate the referendum".
The 'Remainer' said: "It's to say, you could have left the European Union in a very different way, with much less economic damage.
"And at the time, there was a strong argument from Brexiteers that we could have stayed in the Single Market and stayed in the Customs Union."
The Customs Union is a trade agreement between all EU member states that means there are no customs duties on trade with each other, while it also applies a common external tariff on all trade imported from outside the bloc.
Challenged then whether the current chancellor, Rachel Reeves, should re-join these, Osborne responds: "I personally thought that the Labour government should have rejoined the Customs Union on entering office.
"It would have put the opposition in an impossible situation today, of, like 'elect us, we're going to come out of the Customs Union'.
"Good luck trying to get elected on that platform.
"But [Labour] didn't. I strongly applaud what the prime minister and others are doing to negotiate a better trade deal with the EU and I would urge them to double down."
He also said that while building a new railway might take 15 years, "getting a better trade deal or service agreement with the EU is something within your gift and the gift of the European negotiator".
He added there are lots of reasons why the UK should "cooperate with out largest trading neighbour without rejoining the EU, without reopening the debate on free movement".
Osborne also called these "pretty easy wins" and "quite straightforward to deliver".
The Liberal Democrats have been calling for the UK to create a new "bespoke" customs union with the EU for months.