The Press and Journal (Aberdeen and Aberdeenshire)
Prime option for Britain after EU exit is Swiss role
Economy: Model of ‘middle way’
A Swiss-style Brexit deal would be the UK’s best option for withdrawal from the EU, a new report has said.
The Centre for European Reform (CER) study found the government’s priority should be to keep trade barriers between Britain and the EU as low as possible.
The pro-European think tank said Switzerland offers the UK a good model as the country represents “the limit of market access that the EU has been willing to accept without the full supremacy of EU law”.
The report says the Swiss option provides a middle way for Brexit “between two extremes” as long as the remaining 27 EU members are prepared to be flexible with the UK on free movement of labour.
The CER found Switzerland had an “arms-length relationship” with the EU, that Britain could emulate.
“Switzerland’s barriers in goods with the EU are now almost as low as the UK’s, despite its partial membership of the single market, and its arm’s-length relationship with the EU’s institutions.
“Barriers in both goods and services between the UK and the EU have barely fallen since the year 2000. This suggests that the single market is reaching its limits, given that further falls would require more sharing of sovereignty, especially in the highly-regulated services sector.
“It also suggests that the losses foregone by Britain from further single market integration will be limited: the priority must be to limit the costs of the divorce.
“The Swiss-EU bilateral agreements show that compromises between sovereignty and economic integration are possible. Bilateral committees in the sectors where the Swiss and EU co-operate closely determine whether the Swiss should update their regulations to match those of the EU.
“The European Court of Justice (ECJ) does not adjudicate disputes – although Swiss updates to their regulations must take account of ECJ case law,” the study found.
CER director of research John Springford said: “Something similar to the Swiss deal, but without free movement, would be the very best that Britain can hope for.
“The EU might not be prepared to offer the UK such a deal, since the Swiss have accepted free movement as the price of single market participation in goods, and the EU want the Swiss to download EU law more rapidly.
“But such an outcome would have significant economic costs for Britain, given its advantage in financial and business services.
“The UK’s manufacturing sector is less productive and adds less value than that of Switzerland; the 27 might demand a lower price for market access.
“A Swiss-style Brexit provides a middle way between two extremes.”
“A Swiss-style Brexit provides a middle way for the UK”