Senior government figures plan to put Britain towards a Swiss-style relationship with the European Union.
The move, intended to forge closer economic ties, is likely to infuriate hardline Conservative Brexiteers.Last week, Jeremy Hunt, the chancellor, signalled that Rishi Sunak's administration intends to break from the approach adopted by Boris Johnson and remove the vast majority of trade barriers with the bloc.
In private, senior government sources have suggested that pursuing frictionless trade requires moving towards a Swiss-style relationship over the next decade. However, they insist this would not extend to a return to freedom of movement.
However, the model also involves more liberal EU migration and payments to the EU budget, with the bloc in recent years pushing for the European Court of Justice to have greater oversight in the relationship. The Swiss have frequently debated restricting free movement from the bloc but opted to keep it in the most recent referendum.
These are all red lines for members of the rebellious European Research Group.
It was also an approach that Johnson and Lord Frost, his chief Brexit negotiator, ruled out when they drew up the UK's negotiating mandate in 2020.
Ministers are confident that the EU's approach to relations with the UK is thawing as the continent faces the challenges caused by soaring inflation and the conflict in Ukraine.
The Tory Brexiteers are fiercely opposed to any move that risks returning the UK closer to the EU's regulatory orbit.
Last night Frost said: "Any approach requiring the UK to align with EU rules to get trade benefits, whether as part of a Swiss-style approach or any other, would be quite unacceptable. Boris Johnson and I fought very hard to avoid any such requirements in 2020 and ensure the UK could set its own laws, and we should not contemplate giving this away in future."
Speaking on Radio 4's Today programme earlier this week, Hunt rejected the prospect of rejoining the single market but backed working to strengthen Britain's relationship with Brussels.
He said: Having unfettered trade with our neighbours and countries all over the world is very beneficial to growth. So I am confident that we will find, outside the single market, we can remove the vast majority of the trade barriers between us and the EU.
ReplyDeleteThe priority shouldn't be for the UK to set its own laws but to create more connections with all states. This would lead to more money coming into the UK and the people would have to gain from it. It's about the long game not what some politicians want for now.