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You can find the current article at its original source at https://www.theguardian.com/commentisfree/2018/may/11/brexit-crisis-decision-trade-economy-efta
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| Brexit is a national crisis. We need a compromise solution | Brexit is a national crisis. We need a compromise solution |
| (7 months later) | |
| Everyone agrees that Brexit must not harm our economy. Everyone also agrees that we will need a customs arrangement that allows frictionless trade, coupled with the ability to access the single market without barriers, if not be a member of it. The problem is that a consensus has not yet emerged as to how this can be achieved. However, there is now a growing acceptance that compromise must be achieved and a dawning reality that the slogans need to be ditched. | Everyone agrees that Brexit must not harm our economy. Everyone also agrees that we will need a customs arrangement that allows frictionless trade, coupled with the ability to access the single market without barriers, if not be a member of it. The problem is that a consensus has not yet emerged as to how this can be achieved. However, there is now a growing acceptance that compromise must be achieved and a dawning reality that the slogans need to be ditched. |
| Theresa May sets up cabinet teams to thrash out rival customs plans | |
| The House of Lords has passed amendments to the EU withdrawal bill to the effect that a customs union and access to the single market are necessary. This has concentrated the minds of many pragmatic politicians to seek practical solutions that are achievable within the ever-shortening timeframe. The real evidence of this willingness to build a consensus came on Thursday when Daniel Hannan MEP, an arch leaver, backed joining the European Free Trade Association (Efta). | The House of Lords has passed amendments to the EU withdrawal bill to the effect that a customs union and access to the single market are necessary. This has concentrated the minds of many pragmatic politicians to seek practical solutions that are achievable within the ever-shortening timeframe. The real evidence of this willingness to build a consensus came on Thursday when Daniel Hannan MEP, an arch leaver, backed joining the European Free Trade Association (Efta). |
| I have advocated joining Efta on several occasions, alongside retaining our membership of the EEA. This would remove the need to check regulatory compliance and allow goods and services to continue to be traded freely. The UK would be consulted on all new regulations, which is when the real decisions are made. The UK could also restrict the free movement of people, as EU citizenship would not apply, and would be out of the common fisheries and agricultural policies. | I have advocated joining Efta on several occasions, alongside retaining our membership of the EEA. This would remove the need to check regulatory compliance and allow goods and services to continue to be traded freely. The UK would be consulted on all new regulations, which is when the real decisions are made. The UK could also restrict the free movement of people, as EU citizenship would not apply, and would be out of the common fisheries and agricultural policies. |
| However, we will need a customs union or partnership-type solution as well to avoid damage to our economy. This is essential to avoid tariffs and costly rules of origin requirements that would create a physical barrier to trade across Ireland, but also to prevent the need for increases of infrastructure at ports in England, Scotland and Wales. | However, we will need a customs union or partnership-type solution as well to avoid damage to our economy. This is essential to avoid tariffs and costly rules of origin requirements that would create a physical barrier to trade across Ireland, but also to prevent the need for increases of infrastructure at ports in England, Scotland and Wales. |
| The assertion that technology renders a customs union unnecessary to avoid a hard border in Ireland does not survive scrutiny. This is plainly demonstrated by the House of Commons’ Northern Ireland affairs committee, which reported in March that it “had no visibility of any technical solutions, anywhere in the world, beyond the aspirational, that would remove the need for physical infrastructure at the border”. This committee is chaired by a Brexit supporter, but one who is realistic about the challenges we face. | The assertion that technology renders a customs union unnecessary to avoid a hard border in Ireland does not survive scrutiny. This is plainly demonstrated by the House of Commons’ Northern Ireland affairs committee, which reported in March that it “had no visibility of any technical solutions, anywhere in the world, beyond the aspirational, that would remove the need for physical infrastructure at the border”. This committee is chaired by a Brexit supporter, but one who is realistic about the challenges we face. |
| New free trade agreements could still be possible, in a customs union or partnership with the EU. For example, financial services are not covered by customs rules or arrangements so would be the best starting point for any new deal. But we should also be clear on the real economic benefits the UK could gain from new free trade agreements once we leave the EU. There is little evidence that these would compensate for the loss of EU trade and offer anything above the EU’s existing free trade agreements. | New free trade agreements could still be possible, in a customs union or partnership with the EU. For example, financial services are not covered by customs rules or arrangements so would be the best starting point for any new deal. But we should also be clear on the real economic benefits the UK could gain from new free trade agreements once we leave the EU. There is little evidence that these would compensate for the loss of EU trade and offer anything above the EU’s existing free trade agreements. |
| But these are not the only barriers that could restrict trade post-Brexit. There are also those that would be caused by different standards and regulations between the UK and EU. This would mean checks would be needed to, for example, ensure chlorinated chicken does not enter the EU market. Additionally, the dilemma of potential burdensome “rules of origin” requirements will need to be solved by any new arrangements if excessive costs for businesses are to be avoided. | But these are not the only barriers that could restrict trade post-Brexit. There are also those that would be caused by different standards and regulations between the UK and EU. This would mean checks would be needed to, for example, ensure chlorinated chicken does not enter the EU market. Additionally, the dilemma of potential burdensome “rules of origin” requirements will need to be solved by any new arrangements if excessive costs for businesses are to be avoided. |
| It is abundantly clear that no model will satisfy everyone and there is a recognition that “no deal” is potentially catastrophic for our economy and our living standards. However, joining Efta and remaining in the EEA with frictionless trade and customs arrangements would be sensible and command majority support in the House of Commons. | It is abundantly clear that no model will satisfy everyone and there is a recognition that “no deal” is potentially catastrophic for our economy and our living standards. However, joining Efta and remaining in the EEA with frictionless trade and customs arrangements would be sensible and command majority support in the House of Commons. |
| In a national crisis – and this is a national crisis – the British political class has always had the ability to put aside ideology, reach a national consensus and act in the national interest. We must build that national consensus and achieve the best outcome for Britain. | In a national crisis – and this is a national crisis – the British political class has always had the ability to put aside ideology, reach a national consensus and act in the national interest. We must build that national consensus and achieve the best outcome for Britain. |
| • Stephen Hammond is Conservative MP for Wimbledon | • Stephen Hammond is Conservative MP for Wimbledon |
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