THE UK SHOULD JOIN THE EUROPEAN ECONOMIC AREA (EEA) AND THE CUSTOMS UNION

By joining the European Economic Area (EEA), the UK would be able to fully participate in the single market, without the EU’s agricultural and fisheries policies. On top of this, rejoining the customs union (which is separate from the EEA), would allow for the restoration of frictionless trade flows between the UK and its largest trading partner. This  would solve two huge problems.

First, over time, it would allow trade to flow to the EU again without bureaucratic costs, as well as restore the free movement of people. It would also undo the damage of being excluded from EU research and educational programs, specifically Horizon Europe and the Erasmus scheme.

The British people would immediately recognize what a difference rejoining the EEA and customs union would make, from the younger generation who would see the whole of Europe open up again to their ambitions and tastes, through to retirees who would appreciate more their place in the sun in the south of Europe with previously lost rights restored, including healthcare.

Second, and crucially important now politically, it would entirely scrap the need for the Northern Irish Protocol, which is a nightmare of a mess both for business and, above all, for the politics and stability of the island of Ireland.

Of course, there would be cries of outrage from the Brexiteers. Rejoining the customs union, they would argue, would mean losing the freedom to make free trade deals with countries that the EU did not have its own deals with, such as the US, India, Australia and New Zealand. This argument has not survived reality, however. The UK has not been able to progress with the US, while the EU is now negotiating ambitious free trade deals with India, Australia and New Zealand, and has established a Trade and Technology Council with the US.

Being an integral part of the single market was always the ideal EU model for the UK. But there was always the lingering concern about the ‘ever closer union’ that would threaten the UK with federal powers born in Brussels.

No problem, the EEA states are covered against this perceived risk, as it specifically excludes having to join the very federal eurozone, as well as EU fiscal-macroeconomic policy, justice and home affairs, and foreign and security policy. It still leaves the door open for ad hoc cooperation, such as for research or foreign security policy cooperation (as is the case today over the sanctions against Russia).

The European Economic Area

By joining European Economic Area (EEA), the UK would be able to participate fully in the Single Market. The EEA Agreement provides for the inclusion of EU legislation in all policy areas of the Single Market. This covers the four freedoms, i.e. the free movement of goods, services, persons and capital, as well as competition and state aid rules, but also the following horizontal policies: consumer protection, company law, environment, social policy, statistics. In addition, the EEA Agreement provides for cooperation in several flanking policies such as research and technological development, education, training and youth, employment, tourism, culture, civil protection, enterprise, entrepreneurship and small and medium-sized enterprises. The EEA Agreement guarantees equal rights and obligations within the Single Market for citizens and economic operators in the EEA. Through Article 6 of the EEA Agreement, the case law of the Court of Justice of the European Union is also of relevance to the EEA Agreement, as the provisions of the EEA Agreement shall be interpreted in conformity with the relevant rulings of the Court given prior to the date of signature (i.e. 2 May 1992).

The EEA Agreement does not cover the following EU policies:

1. common agriculture and fisheries policies (although the EEA Agreement contains provisions on trade in agricultural and fish products); customs union; common trade policy;
2. common foreign and security policy;
3. justice and home affairs (the EEA States are however part of the Schengen area);
4. direct and indirect taxation; or
5. economic and monetary union.