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What is soft Brexit? How could it work as UK negotiates leaving the EU? | What is soft Brexit? How could it work as UK negotiates leaving the EU? |
(35 minutes later) | |
Theresa May’s failure to achieve a majority in the general election has put the prospect of a “soft Brexit” back onto the agenda. | Theresa May’s failure to achieve a majority in the general election has put the prospect of a “soft Brexit” back onto the agenda. |
The Prime Minister had hoped to win a mandate that would strengthen her hand on the EU negotiating table. | |
But the prospect of the UK leaving the talks without a deal in place, an outcome known as "hard Brexit", appear to have diminished after her Conservative Party lost its parliamentary majority on 8 June. | |
So what would a so-called “soft Brexit” mean? | So what would a so-called “soft Brexit” mean? |
Access to the Single Market | Access to the Single Market |
A soft Brexit would likely see the UK have a Norway-style membership of the European Economic Area (EEA). | A soft Brexit would likely see the UK have a Norway-style membership of the European Economic Area (EEA). |
This would allow the UK almost full access to the Single Market while also letting it make deals without the rest of the EU. | This would allow the UK almost full access to the Single Market while also letting it make deals without the rest of the EU. |
Goods and services would be traded with the remaining EU states on a tariff-free basis and financial firms would keep their “passporting” rights to sell services and operate branches in the EU. | Goods and services would be traded with the remaining EU states on a tariff-free basis and financial firms would keep their “passporting” rights to sell services and operate branches in the EU. |
This would mean that British firms could do cross-border business in any part of the bloc. | This would mean that British firms could do cross-border business in any part of the bloc. |
Remaining in EU customs union | Remaining in EU customs union |
A "softened" departure would also probably see the UK remain within the EU customs union, meaning exports would not be subject to border checks. | A "softened" departure would also probably see the UK remain within the EU customs union, meaning exports would not be subject to border checks. |
The customs union facilitates free trade between EU states by ensuring that they all charge the same import duties to countries outside the union. | The customs union facilitates free trade between EU states by ensuring that they all charge the same import duties to countries outside the union. |
The 27 nation bloc also agree not to impose tariffs on goods travelling between countries in the union. | The 27 nation bloc also agree not to impose tariffs on goods travelling between countries in the union. |
Remaining in in the customs union would help avoid the risk of increased tariffs which lead to rising prices. | Remaining in in the customs union would help avoid the risk of increased tariffs which lead to rising prices. |
It will also prevent Britain from having to trade on standard tariffs under World Trade Organisation rules. | It will also prevent Britain from having to trade on standard tariffs under World Trade Organisation rules. |
Accepting the 'four freedoms' | Accepting the 'four freedoms' |
Remaining part of the Single Market would require the UK to make payments into EU budgets and accept the “four freedoms” of movement of goods, services, capital and people. | Remaining part of the Single Market would require the UK to make payments into EU budgets and accept the “four freedoms” of movement of goods, services, capital and people. |
This would mean continued free access for European nationals to work and settle in the UK. | This would mean continued free access for European nationals to work and settle in the UK. |
As a result the Conservative Party's manifesto commitment to bring immigration down to the “tens of thousands” per year would be highly unlikely. | As a result the Conservative Party's manifesto commitment to bring immigration down to the “tens of thousands” per year would be highly unlikely. |
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