The UKIP Manifesto calls for withdrawal from the EU because: "outside the EU, we can manage our
borders and decide who we want to come and live and work in the UK. EU rules
stop us from doing this." As far as how the UK is to pay its way in the European
order the manifesto is less than fulsome but, on the other side of the beer
mat, it says: "On leaving the EU, the UK will keep the trade
agreements we entered as an EU member prior to the Lisbon Treaty. Outside the
EU, we can negotiate our own trade deals, but be in a stronger position, as we
will be negotiating in the British interest."
Leaving aside the
nitty-gritty of accounting arguments, there is no doubt that the UK's trade
with the rest of the EU is enormous. The key to what would happen, as Roger
Bootle points out in "The Trouble with Europe," is what sort of trade
relations could be agreed with the rest of the EU post UK exit. Indeed, he warns that if the UK withdrew from the Union, we would still
have to abide by many of the obligations to which we are already legally party.
Nevertheless, it
would appear that UKIP is broadly right in concluding that UK would have a
strong negotiating hand. Since trade
with the UK is as much as 15% of the EU economy, it would be vital, to both
parties, to maintain this activity. The situations of Norway and Switzerland
are often held forth as examples of the
best of both worlds. So would achieving a similar agreement for UK be the
answer or a Catch 22?
Although both Norway
and Switzerland are outside the EU they are closely tied in practice. Indeed, as Mats Persson noted in The Telegraph
on 24 November, "both Switzerland and Norway are required to accept free
movement of labour as the price for trading with the EU." In a delightful irony he continues,
"these two countries now take in more EU migrants per head than the
UK." So, if UK were to become like
Switzerland we would be faced with the prospect of four times as many EU
migrants as today!
As Yossarian
observed, "that's some catch that Catch-22." "The best there is," agreed Doc
Daneeka!
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