Davis: SNP’s bespoke Brexit deal would create confusion

Tory says Sturgeon’s proposal could result in barriers to trade within UK

NICOLA Sturgeon’s proposal for a bespoke Brexit deal would have caused “significant disruption” to business, Brexit Secretary David Davis has told the Scottish Government in a previously secret rejection letter.

Mr Davis said the First Minister’s plan to keep Scotland in the single market after Brexit would create barriers to trade within the UK and confusion over regulation.

He also said he was “disappointed” Ms Sturgeon had called a second referendum while the UK and Scottish governments were still discussing her plan.

But SNP Brexit minister Michael Russell responded to him by saying that “with the necessary political will and commitment” the objections could have been overcome.

Ms Sturgeon published a detailed plan to keep Scotland in the single market after the rest of the UK had left in December.

It said Scotland could be a Norway-style member of the single market through the European Economic Area (EAA) or European Free Trade Association (EFTA).

Free movement of goods, capital, services and labour with the EU would have continued, although Scotland would not have had a say in writing EU rules.

The SNP admitted the plan was politically and technically challenging, and would need Holyrood to gain new powers over immigration, workers’ rights and international deals.

It would also have relied on the UK making sacrifices in negotiations with the other 27 EU nations to secure a bespoke deal for Scotland.

After Ms Sturgeon called a referendum in mid-March, the UK Government rejected the plan, but refused to publish its letter to the Scottish Government.

After a row, Mr Russell yesterday put the correspondence on the Scottish Government website.

In his March 29 letter, Mr Davis said the two governments shared a desire for “the freest and most frictionless trade with EU”, despite disagreement over the means.

But he said of Ms Sturgeon’s single market plan: “As the Prime Minister has made clear, this is simply not possible if we wish to take back control of borders and immigration in the way people in Scotland and the rest of the UK desire, nor if we wish to enjoy the supremacy of our domestic courts.”

He added: “Scotland’s accession to EFTA, and then the EEA, would not be deliverable and, importantly, would require the consent of all EFTA and EU member states. Any divergence between EU and UK law – as a result, perhaps, of new EU regulation – could lead to the creation of new barriers to trade within our Union, which could take the form of additional controls and checks on trade within the United Kingdom.

“Given that trade with the rest of the UK is worth four times trade with the EU, I do not believe such significant disruption to the internal UK market is in Scotland’s – or the UK’s – best interests. And Scotland’s businesses could face a confusing mix of regulatory regimes.”

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