The big issues in the White Paper – and the questions left unanswered

Q AWhat does the Brexit White Paper say about... customs and trade? The government says it wants to create a “free trade area for goods” between the UK and the EU. This will involve the establishment of a “combined customs territory” with EU tariffs and checks applied to goods destined for the continent, and the harmonisation of regulations for goods under a “common rulebook”. The government says this would “preserve frictionless trade for the majority of UK goods trade and reduce frictions for UK exporters and importers”.

Q A...immigration?

The government insists that free movement of people will end after Brexit, but the White Paper states that the UK “will want to continue to attract the brightest and best, from the EU and elsewhere”. The detail of exactly how that will work won’t be known until a review of migration is concluded, but the White Paper says new arrangements will allow businesses to hire the workers they need, and visafree travel will be extended to tourists and businesspeople on short-term work visits. EU students will also continue to be welcome. Brexiteers feel this could become free movement in all but name if the UK government could be forced into further concessions.

Q A...devolution?

Harmonising rules for agricultural and food products would be “legislated for by Parliament or the devolved legislatures”, but it isn’t yet clear what would happen if the Scottish Parliament disagrees on a specific regulation in a devolved area. The UK government says only that it will “work closely” with Edinburgh, Cardiff and Belfast. Negotiations on dispute resolution are ongoing.

Q A...the European Court of Justice?

The White Paper says that when there are disputes between the UK and the EU over the “common rulebook” on goods, “the UK recognises that only the European Court of Justice can bind the EU on the interpretation of EU law”

– so any deviation from EU rules means losing access to the European market. A new joint committe from London and Brussels will oversee any conflicts, but may be forced to refer to the ECJ for its opinion on the rules – a source of anxiety for Brexiteers.

Q A...the service sector? The White Paper concedes that the UK “can no longer operate under the EU’S “passporting’ regime” that allows the services sector, making up four-fifths of the British economy, to trade in the EU on the same terms as now. Businesses had hoped for a “mutual recognition” regime, where the UK and the EU accept each other’s regulations, as the next-best option for frictionless trade. Instead, the White Paper says there will be a “new economic and regulatory arrangement” to ensure the deep links between the UK and EU economies in services can continue. However, it isn’t clear how this will operate, or if the EU will accept what it considers to be ‘cherry picking’ of parts of the single market.