EU goods laws after Brexit but service sector freedom – claim
BRITAIN should be prepared to align itself to EU rules regarding goods exports after Brexit, but is too large an economy to allow the service sector to be a “rule-taker”, a think tank has recommended.
Open Europe said Britain should align with existing legislation on goods, citing Switzerland’s trade with the bloc as an example of how it can work with a non-member state.
But in a report published today it said Britain’s “comparative advantage” lay in services, including the financial sector, and there should be “mutual divergence” in this area.
Henry Newman, Open Europe’s director, attacked “hardline leavers and extreme remainers”, saying they did not represent the majority of people and businesses and threatened the chances of a deal through their “intransigence and refusal to compromise”.
Mr Newman, a former aide to Brexit-supporting Cabinet minister Michael Gove, said: “It’s nearly two years since the Brexit vote, but the UK Government still doesn’t have a clear vision for our EU relations, and Brussels is delaying the talks while refusing to discuss anything between a Canada-style deal and the Norwegian option.
“Meanwhile, we have spent months discussing a possible customs union which would neither resolve the Irish border nor guarantee frictionless trade.
“Open Europe’s blueprint recognises that the UK is too big an economy to be a rule-taker in areas like financial services, while accepting that we can get a very good degree of access in goods by giving up a limited amount of control.
“The country decisively voted to leave and we cannot be 52% out and 48% in, but we can and should aim for a close economic relationship with our nearest neighbours.”
The report, Striking a Balance: A blueprint for the future UK-EU economic partnership, said it was worth giving up some control over goods, arguing that in some highly regulated manufacturing industries, even US firms followed EU rules.