‘We must have Brexit trade deal by March or walk away’
IF initial terms for free trade with the EU are not agreed by March, Britain must quit talks and prepare for no deal, senior Brexiteer Owen Paterson has warned Theresa May.
The former Cabinet minister, who sits on the board of Leave Means Leave, says he has told the Prime Minister that enough concessions have been made and she must not be taken in by “Remoaner double talk”.
The tough line from the Brexit group, which includes more than 50 Tory MPs, comes as Mrs May has said that the New Year will allow Britons to feel “renewed confidence and pride” in Brexit and in a “stronger and fairer” society.
Ministers and Eurocrats have said that a deal needs to be completed by October but Brexiteers fear that could force Britain to accept “Brexit in name only”.
And while the Prime Minister hailed the progress made in 2017, Mr Paterson, a former Northern Ireland and former environment secretary, warned Mrs May that she needs to take a strong stand in remaining talks on issues such as trade and security.
He said: “It has been clear from the outset that a reciprocal freetrade agreement with zero tariffs is in all our best interests.
“But if the EU will not agree heads of terms by March next year or if the price – either financially or in concessions of sovereignty – is too high, then we should politely advise them that our trade will continue on World Trade Organisation terms, maintaining such reciprocal sectoral arrangements as mutual aviation landing rights.”
The group Economists for Free Trade, led by Professor Patrick Minford, has estimated that GDP could grow by £135billion a year by leaving and going on to WTO rules.
Quoting the research, Mr Paterson said that by leaving without a formal deal the cost of food per household could fall by £305 a year.
He added: “By 2025, they predict that three per cent growth will give the Government an additional dividend of £65billion per annum. The famous £350million per week for the NHS will be easy to achieve.” After Tory Remainer MPs and peers joined Labour, the Lib Dems and SNP to try to scupper Brexit in 2017, Mr Paterson urged: “Don’t be taken in by the double-talk of the Remoaners. Brexit means taking back control of our laws, money and borders.
“This same message was central to the Prime Minister’s speech at Lancaster House in January in which she confirmed that we would be leaving the single market and the customs union.”
His warning comes amid fears the UK will seek full “regulatory alignment” to solve the problem of the border with Northern Ireland.
This could undermine Britain seizing the benefits of free trade and cutting the costs of EU red tape.
Brexiteers are also concerned about a two-year transition deal which could keep Britain tied to EU rules – including free movement – allowing uncontrolled immigration.
As Brussels plays hard on financial services and key trade issues, Mr Paterson has told Mrs May that she must not concede further.
He pointed out that the EU only represents 12 per cent of GDP and less than 50 per cent of exports while Britain also has a trade deficit with Europe of more than £70billion.
He said: “Outside the single market and customs union, we will be best placed to exploit the opportunities to be found in the fastestgrowing parts of the world – all outside the EU.
“I suggest Mrs May gives the EU until March to agree heads of terms, and – if they spurn her friendly advances again – plans seriously for the WTO outcome.”