Ross Clark
for businesses which are hoping to build exports with countries outside the EU Brexit brings with it the potential of opening up trade. That is why we have to leave the customs union. Were we to remain in it we would be throwing away one of the great advantages of leaving – the chance to do our own trade deals with outside countries.
The EU likes to pose as a friend of free trade. Yet its protectionism, along with pressure from vested interests such as the powerful French farming lobby, mean that in many areas trade barriers remain in place. Look at Switzerland, which has struck trade deals with China and Japan, respectively the world’s second and third largest economies. The EU has yet to complete a deal with either – and its efforts to open up trade with the US collapsed two years ago.
Shorn of the need to balance the interests of 28 different countries, we can and should do a lot better on our own.
That said, I can understand why some businesses are concerned about Britain leaving the customs union. If you have an established export – or import – trade you are bound to have negative feelings towards any potential disruption.
Yet the claims that lorrydrivers will find themselves delayed for hours at Dover are scaremongering. If the EU eventually agrees to a comprehensive trade deal with a postBrexit Britain there will be no more import duties to pay than there are now.
Such a trade deal is almost certain to happen because it is in the mutual interest of businesses either side of the Channel. There are already many signs that commercial interests and national politicians are getting fed up with the political posturing of Michel Barnier and his negotiating team.
But say that Britain did end up leaving the EU without a deal. Would it mean lorries backed up from London to Dover? Absolutely not. We already trade with many countries whose goods are liable to tariffs. Much of this trade is conducted through ports such as Felixstowe and Immingham – neither of which have traffic jams on their approach roads.
CUSTOMS officials are used to dealing with imports and exports. Most of the paperwork is done before lorries reach the port, while any duties payable are collected through the tax system. When you buy an outfit at Marks & Spencer you don’t have a customs and excise man hovering beside the till to make sure that the VAT is paid. It is collected by the shop, passed on to HMRC and accounted for through audit.
Why should it be any different for tariffs collected on imports from the EU – if, indeed, there are any tariffs to pay?
As for tackling smugglers, the taxman has to cope with them already. Duties on fuel, alcohol and tobacco differ between Britain and other EU countries. We have laws banning the import of drugs, guns and explosives into Britain.
Does it mean every individual and vehicle being searched? No. While there are some checks at ports, the battle against smuggling is carried out everywhere, from inspections of tobacconists to raids on clubs where it is suspected drugs are being sold. Tariffs on EU goods would be just one extra form of tax enforcement.
There is no reason why it should bring everyday life to a halt. To claim that it will do this is nothing but propaganda on the part of those who have not accepted the Brexit vote and never will.
‘We have to leave the customs union’