Thursday, August 17, 2017

Never going to get it

We have read Ray Bassett in the Daily Telegraph so that you don't have to:

In fact, the alternative, involving Ireland leaving the EU, opting out of the EU customs regime and staying in a free trade and customs union with the UK, may well be the better approach. It would allow the Irish to stay in the European Economic Area (EEA), like Norway, and still have free access to the EU market for its products.

That's the core misunderstanding of the West Brexiters; the same mistake appears in Bassett's Policy Exchange report (incidentally, Policy Exchange is now describing him as a Senior Fellow). If Ireland stays in the EEA Single Market while the UK is outside (as the government has said it will be), all the same problems that happen with Brexit still happen: the UK's non-compliance with EEA rules with make an open border with an EEA member, Ireland, incompatible. These are bilateral people bewildered by a multilateral world.

UPDATE: Policy Exchange Senior Fellow Ray Bassett says that Ireland should stay in the single market while leaving the EU. Here's Policy Exchange Chief Economic Adviser Gerard Lyons explaining why the UK will leave the Single Market (FT today) --

The [transition] plan has to be seen in the context of the need to leave both the EU single market and the customs union. This is the best way to maximise the economic benefits of Brexit. Outside the single market, Britain would save its EU contribution, determine its own laws, regulations and migration quotas. Outside the customs union, it can escape EU protectionism, cut trade deals and set its own tariffs.

Policy Exchange needs to have a staff meeting where they clarify internally how a UK-Ireland open border and differing participation in the single market can be reconciled.

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