Thursday, 5 October 2017

It should be about trade

So it does look as though Schengen may be suspended. With the New Year claims of immigrants molesting women, with the UK's winning Leave campaign relying so heavily on promises of reducing numbers despite the high cost (promises now being ignored), with the rise of Far Right parties such as France's National Front, it is surely a sensible move to clamp down while feelings are so high. After all, once things calm down borders can be loosened again. If keeping borders open means that the xenophobes take power, then tightening controls is the right move. When the road becomes icy you slow down.

Still, it looks as though we will be well out of the EU anyway. Mr Juncker is calling for a eurozone finance minister, Mr Macron is backing a eurozone budget and a European defence force, as well as deeper integration of the digital services and energy markets. Are they aiming for a European superstate?

Or are they finally acknowledging that we were right (when we had a voice at the table)? Mr Macron wants community-wide harmonisation of core markets - something we have pushed for for decades. He is even suggesting the Common Agricultural Policy should be reformed.

The UK has always pushed for opening the EU up, for increasing its competitiveness and productivity, expanding trade internally as well as externally. We fought for the expansion of the club, and welcomed nationals from newly joined states when we could have kept them out.

We are a highly services-oriented economy with some world-beating sectors. If we can keep Brexit disruption to a minimum and retain access to the single market, then we will be sitting pretty, in at the ground floor as services go global.

For example, the UK education brand is a big earner. Mr Macron wants a pan-European higher education system - now there's a serious market. Financial services are another of the UK's strengths, and further European integration makes that potential market very large indeed.

However, we need access. Right now we are at a crucial point. If we pull up the drawbridge, then when we let it down in a few years and rejoin the EU, the core members will have everything sewn up.

If the Brextremists are serious about trade then they should do the first deals with our most important trading partner, and do them now. Trade should be the focus of the Brexit negotiations not point scoring, looking to Britain's future not our past. It will mean compromises - but that is exactly what deals are made of.

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