Quitting could boost trade deals
BRITAIN could strike better trade deals if it leaves the European Union, according to a report today.
The Civitas think-tank says the UK could emulate Switzerland and forge a ‘successful independent free trade policy’ if it was set free from the shackles of Brussels.
The official EU ‘in’ campaign warned this week that Britain would struggle to negotiate the same level of access for its goods and services in world markets. Speaking at the launch of the campaign, the former BBC economics editor Stephanie Flanders said it was ‘fanciful’ to suggest Britain acting alone could achieve equivalent deals.
But today’s report says the Swiss experience gives the lie to this view. The study examined Switzerland’s ability to secure international agreements without being a member of the EU and suggested the UK could strike ‘serious deals’ with greater ease if it severed ties with Brussels.
In a detailed case study of Switzerland’s 2009 trade agreement with Japan, Civitas said the Swiss won lower tariffs for key exports like cheese, watches, chocolate and cereal, plus better access for services.
The report warned the size of the EU meant deals were harder to strike, because countries were worried about the impact on their own industries of a trade agreement with the 28member bloc.
It pointed out that, unlike Switzerland, the EU had not yet managed to secure a deal with Japan. ‘UK trade would have much to gain if Britain took a similar approach to Switzerland, whose achievement has been considerable given Japan’s historically protectionist approach, especially over food,’ the report said.
‘Many possible trade partners are intimidated by the EU’s great size, which could be a threat to their domestic industries.
‘This can delay or halt EU negotiations, which are anyway slowed by competing internal demands. Britain alone would not be such a threat or suffer such internal division, but would still be an attractive market.’
But the report noted that securing new deals around the world could take some time after an exit from the EU, with the Switzerland-Japan agreement taking six years to conclude.