Sturgeon: Only Nordic-style deal can protect UK trade
●First Minister warns of dangers from ‘a right-wing ideological experiment’
Nicola Sturgeon has called on Theresa May to abandon her Brexit red lines, warning that only a Norwaystyle deal with the EU can deliver on the Prime Minister’s promise to maintain a close trading relationship.
The First Minister said full devolution of powers and a “soft” Brexit inside the European Economic Area (EEA) were the only way to protect Scotland from a Thatcherite “rightwing ideological experiment”, as ministers from London and Edinburgh gather for a fresh round of talks today.
Ms Sturgeon and Mrs May will hold their own face-to-face meeting next week, with the First Minister doubling down on her claim that Conservative plans for Brexit pose a risk to devolution.
Her comments in an article for The Scotsman today follow the unveiling of the EU’S negotiating guidelines for the next stage of Brexit talks, with Brussels warning that leaving on Mrs May’s terms will be “complicated and
costly”. The UK Cabinet has settled on a policy of “ambitious managed divergence” from EU regulations after sustained pressure from probrexit Conservative MPS, leading to claims from opposition parties that Mrs May’s government is seeking to erode standards in order to make the UK attractive to future trade partners.
Ms Sturgeon argues that “the benefits of devolution have been reinforced” by membership of the European single market, particularly the free movement of people, and says it is essential to “protect both our place in Europe and the powers of our parliament”.
“That’s why we, together with other parties and the Welsh government, are resisting Tory plans to take control of devolved powers as part of their Brexit package,” the First Minister says.
“It’s important to remember that the campaign for a Scottish Parliament was to a large extent a reaction against a right-wing Tory economic and social experiment, carried out against Scotland’s wishes and with devastating consequences for many communities.
“And when the devolution referendum came, it saw a resounding Yes-yes vote. But today that overwhelming democratic endorsement is under threat from a Tory Westminster power grab.
“The danger for the next generation is that they will bear the brunt of another rightwing ideological experiment.”
Ms Sturgeon insists that the only way the Prime Minister can deliver on the agenda set out in a speech last week is to accept a Norway-style Brexit within the EEA – something the UK government has consistently ruled out.
“If the Prime Minister was able to unshackle herself from the hard-line Brexiteers currently dictating policy, she could aim for membership of the European Economic Area, meaning the UK could remain inside the single market, rather than having to negotiate its way back in – and then only partially so – through a complex series of arrangements,” Ms Sturgeon says.
“The services sector would be protected, the UK could still be influential in deciding standards regulations and the ‘level playing field’ on state aid, competition policy, environmental and labour standards would be achieved.
“In addition the UK would be outside the ‘direct jurisdiction’ of the European Court of Justice (the Prime Minister has now conceded an indirect role of the court) and the UK would be free to make trade deals with countries outside the EU – although the Scottish Government is clear in our view that the UK should also stay in the customs union.”
Setting out guidelines due to be adopted by the remaining 27 EU members later this month, European Council president Donald Tusk said “negative economic consequences” from leaving the single market were guaranteed.
“That is the essence of Brexit,” Mr Tusk added, despite the guidelines setting out the EU’S desire for “as close as possible a partnership” with the UK.
Mr Tusk said Brussels hoped for an “ambitious and advanced” free trade agreement (FTA) with zero tariffs on goods but limited access for services.
But he added: “This positive approach doesn’t change the simple fact that because of Brexit we will be drifting apart. Our agreement will not make trade between the UK and EU frictionless or smoother.
“It will make it more complicated and costly than today for all of us. This is the essence of Brexit.”
Mr Tusk said that under the terms set out by Mrs May, the only option available in negotiations was an FTA of the type signed with Canada.
And in a clear demonstration of Brussels’s reluctance to deliver the kind of bespoke deal outlined by the Prime Minister last week, he said: “I fully understand and of course I respect Theresa May’s political objective, to demonstrate at any price that Brexit could be a success and was the right choice. But sorry, it is not our objective.”
Ministers from the UK, Scotland and Wales will meet in London today, with hopes low that a breakthrough can be reached talks over claims of a devolution “power grab” in Brexit legislation.
The UK government is insisting on retaining an “emergency brake” covering around 25 areas of devolved responsibility returning from Brussels after Brexit, to avoid devolved administrations implementing different rules.
SNP Brexit minister Michael Russell says the Scottish Government must agree to devolved responsibilities being shared with London, rather than being consulted under UK government plans.
“If the Prime Minister was able to unshackle herself from the hard-line Brexiteers currently dictating policy, she could aim for EEA membership”
NICOLA STURGEON
In the daily rough and tumble of Scottish politics, it is easy to forget there is now widespread agreement on major issues that were once fiercely contested.
Back in the 1980s the whole idea of devolution was controversial – although ultimately only the Tories campaigned against it – and the thought of a single market, taking in 28 European countries, was still very much in development.
However, both the establishment of the Scottish Parliament and the single market have brought huge benefits to Scotland and now command as close to consensus support as it is possible to achieve.
Indeed the benefits of devolution have been reinforced by our membership of the single market. Because of the Scottish Parliament, we’ve been able to resist the creeping privatisation of the NHS in England and with our new tax powers we’re able to do more to protect health spending.
The single market has given Scottish business access to the world’s most lucrative marketplace of 500 million people – a marketplace which, it should be remembered, is around eight times bigger than the UK’S alone.
But freedom of movement, one of the single market’s “four freedoms”, has also played a major part in reversing Scotland’s historic population decline, bringing in wealth creators and helping to fund and staff our health service.
This combination of democratic support plus the benefits to people’s lives mean we must do everything we can to protect both our place in Europe and the powers of our Parliament.
That’s why we, together with other parties and the Welsh government, are resisting Tory plans to take control of devolved powers as part of their Brexit package. It’s important to remember that the campaign for a Scottish Parliament was, to a large extent, a reaction against a right-wing Tory economic and social experiment, carried out against Scotland’s wishes and with devastating consequences for many communities.
And when the devolution referendum came, it saw a resounding Yes-yes vote. But today that overwhelming democratic endorsement is under threat from a Tory Westminster power grab.
The danger for the next generation is that they will bear the brunt of another right-wing ideological experiment.
Brexit was comprehensively rejected by the people of Scotland, and there is even less support for the extreme Brexit now being pursued by the Prime Minister.
Theresa May’s speech last Friday confirmed that her government wants to take Scotland and the rest of the UK out of the single market. She also said the UK should no longer be part of the EU customs union – which guarantees tarifffree trade among its members and allows Scotland to take advantage of trade deals with more than 50 countries.
Make no mistake, this is a comprehensive victory for the hard Brexiteers, which the UK government’s own analysis shows will result in a substantial economic hit.
Indeed the Prime Minister admitted what has been obvious for some time – UK and Scottish business will see their access to the single market cut. That means Scotland’s producers will lose access to some markets they have spent many years developing. Consumers will face higher prices
and less choice, as “frictions” to UK-EU trade take their toll. It is inevitable that jobs will be lost.
Hardest hit will be our services industries which have benefited enormously from freedom of movement and the ability to attract wealth-creating talent to Scotland.
The UK government seems to accept the damage that will be caused, because much of the rest of the Prime Minister’s speech set out a complex piecemeal plan to get preferential access back into the single market.
That plan was yesterday largely rejected by the EU. They made clear this “pick and mix” approach was unacceptable and have made it clear her “red-lines” must go if anything other than a damaging, basic deal is to be achieved.
In fact there is still the very real danger of a catastrophic “no deal” outcome if the Tories backslide on the deal they reached in December to avoid a hard border in Ireland.
The Scottish Government, in line with the overwhelming majority in Scotland, supports full EU membership. Short of that, the best way to minimise the damage is to stay within the single market and customs union. If the Prime Minister was able to unshackle herself from the hard-line Brexiteers currently dictating policy, she could aim for membership of the European Economic Area, meaning the UK could remain inside the single market, rather than having to negotiate its way back in – and then only partially so – through a complex series of arrangements.
The services sector would be protected, the UK could still be influential in deciding standards and regulations, and the “level playing field” on state aid, competition policy, environmental and labour standards would be achieved.
In addition the UK would be outside the “direct jurisdiction” of the European Court of Justice (the Prime Minister has now conceded an indirect role for the court) and the UK would be free to make trade deals with countries outside the EU – although the Scottish Government is clear in our view that the UK should also stay in the customs union.
But in short, membership of the EEA is now the only way to achieve the aims the Prime Minister herself set out last week.
So far, the entire Brexit process has – disgracefully – been driven by internal Conservative Party interests, rather than the interests of the economy, businesses or the country as a whole.
Jobs, living standards and the interests of Scotland have barely featured.
That must change. The UK government’s EU Withdrawal Bill must be changed to protect devolution – anything less will simply confirm the impression of an arrogant Tory government which now thinks it can do what it wants to Scotland and get away with it.
On the wider issue of EU-UK negotiations, the clock is ticking.
As a minimum, a transitional period must be agreed by the end of this month, and the UK government must follow the logic of the Prime Minister’s speech and state clearly today that Scotland and the UK will remain inside the European Economic Area and customs union.