Debate on the implications of the UK leaving the EU quickly died down in the weeks after 31 January 2020 as the Covid pandemic prevailed. Since then, much of MPs’ economic focus has been on the fallout from lockdowns, global supply chain issues and Russia’s invasion of Ukraine. However, following the recent market turmoil caused by the Prime Ministership of Liz Truss and her successor Rishi Sunak’s efforts to rescue the UK economy, attention is beginning to turn to the impact of Brexit. Unresolved issues with staff shortages, costlier and more bureaucratic barriers for businesses wanting to import goods or trade with Europe, and Northern Ireland’s political crisis have put fresh scrutiny on the terms of Boris Johnson’s deal. After it was reported that senior government officials want the UK to pursue close ties with the EU, we take a look at what this will mean and the political implications.
What has been suggested?
It has been claimed that some within the government want to put the UK on a path towards a Swiss-style relationship with the EU. Talks are said to be taking place behind the scenes, but Chancellor Jeremy Hunt’s suggestion that he wants to reduce trade barriers with Brussels has been interpreted as evidence of a desire for a renewed relationship. There is no proposal to return to freedom of movement, but the Sunday Times reported that ministers feel that relations between the UK and the EU are thawing given the shared challenges caused by inflation and the war in Ukraine.
What would a Swiss-style deal look like?
Switzerland is outside the EU, but it is the bloc’s fourth-largest trading partner and its economy is closely integrated with those of its 27 member states. It has selective access to the single market and participates in EU research and training programs and is registered in the Schengen free travel zone. In particular, it also contributes to the EU budget. To ensure the smooth cross-border trade of goods, the EU-Switzerland agreement abolishes all document and identity checks, most physical checks and most veterinary certificates. It’s a complicated relationship. The UK in a Changing Europe thinktank notes that Switzerland must accept package deals from the EU that include elements of legislation it has opposed. It said such agreements were frequently renewed to reflect changes in EU law, with each bill submitted to the Swiss federal parliament scrutinized for compatibility with EU law. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply.
Haven’t we been here before?
Brussels’ Brexit negotiator Maroš Šefčovič offered a Swiss-style trade deal last June, but the British side, led by David Frost, rejected it because it required regulatory alignment. The move was mooted given the failure to end Brexit border controls on food, including frozen meat, entering Northern Ireland from Great Britain. Šefčovič said in June 2021 that a Swiss-style deal would remove all documentary and physical checks on red meat, poultry, mince, fish and dairy products, and that pets would be able to travel between Great Britain and Northern Ireland with a pet passport.
What was the reaction?
Steve Barclay, who is the health secretary but led the Brexit department, rejected the suggestion that a Swiss-style deal was being considered. Former cabinet minister Liam Fox also said there were always some senior ministers who would have preferred a Swiss-style solution after Brexit, but stressed he believed it was “time to put those ideas to bed and get on with the job at hand ». . Tracking from the YouGov poll, however, reveals that the number of Britons who think it was the wrong decision to leave the EU is at its highest point since the referendum, at 56%, compared to 32% who think it was the right decision.
