Alarm at Brexit deal to keep Britain in the single market

TORY Eurosceptics last night gave a mixed reaction to a Brexit compromise that could keep Britain in the single market while escaping the rule of EU judges.

Under a proposal floated by top Swiss judge Carl Baudenbacher, the court of the European Free Trade Association (Efta) would step in to oversee the future trade relationship between the UK and Brussels.

Supporters believe the move could mean British firms continuing to enjoy full access to the EU’s trade zone while also meeting Prime Miniser Theresa May’s insistence that the European Court of Justice does not rule over the UK after we leave the bloc.

But the suggestion, being considered by ministers, received a wary response from

Should Britain insist on a total break from the EU?

some senior Tory MPs. Jacob Rees-Mogg said: “The big difficulty is that the Efta court takes its lead from the ECJ and while its rulings are technically advisory, in practice they take direct effect in the countries concerned. That would be unacceptable.”

Sir William Cash, who was chairman of the Commons European Scrutiny in the last parliament, said it would be “sensible” to set up a dispute resolution system to govern Britain’s relationship with Brussels after Brexit but he questioned whether the Efta court was up to the job.

“The problem with the Efta court is that it tends to follow the rulings of the ECJ,” he said. “The issue here is judicial sovereignty, which comes from our democracy.

“The most important thing is that the ECJ should not rule our affairs after we have left the EU.”

Fellow Tory Peter Bone wanted to see more details of the plan while accepting that a compromise deal could work. “The key issue is that the court must be neutral so it cannot be an EU court,” the backbencher said.

“Bringing in an Efta body could well be a possibility. As long as it was not an EU court, then I think everybody would be happy.”

The MPs spoke after it was revealed Prof Baudenbacher, who is president of the Efta court, has been attempting to broker a deal to break the deadlock in the Brexit negotiations between the British Government and Brussels.

The Efta Court of Justice, which was set up in 1992, oversees the trade relationships between the EU and non-EU nations Iceland, Liechtenstein and Norway.

Talks

Under Prof Baudenbacher’s proposal, Britain would allow the court to arbitrate in any disputes with Brussels over trade issues. But the judgments are not automatically binding on countries.

Prof Baudenbacher said Britain could accept its rulings without joining the European Economic Area which includes the EU and Efta countries and obliges member countries to accept free movement of migrants.

He is due in the UK next month for further talks with EU Exit Secretary David Davis.

His proposal is expected to feature in a document by Mr Davis’s department published tomorrow, but Downing Street yesterday declined to comment on the proposal.

“There has been some excitable speculation about what’s in the paper,” an official said. “You will have to wait and see when it comes.”