The Institute for Public Policy Research (I.P.P.R.) think tank headquartered in London has proposed a type of shared market deal between the U.K. and the E.U. following Brexit. It would allow them each to share in the other’s markets.
Maintained Regulatory Alignment
The U.K. and E.U. would continue to use the current regulatory alignment in this new shared market, said the I.P.P.R. Furthermore, together they would create a new customs union comparable to the one presently in place, said the centre-left think tank. The idea is to permit tariff-free trade, allowing the U.K. to benefit from trade deals in the European Union.
Using this strategy “honours the referendum result,” said Tom Kibasi, director of the I.P.P.R., while it continues to give priority to the security of the United Kingdom’s economic interests.
The think tank also suggested that the European Union would enjoy benefits from this type of agreement. The reason is that it would give them the advantage of the U.K.’s economic scale within future trade negotiations.
Single Market Benefits Outside E.U. Rule
The idea behind the I.P.P.R.’s shared market model is to make it possible for the United Kingdom to proceed with Brexit as per the referendum results, while still allowing both sides to continue to benefit from the advantages of a single market. Furthermore, using this proposed strategy would mean that there would not need to be an interruption in trade between the United Kingdom and European Union. Equally, it would avoid any necessity for a hard border between the Republic of Ireland and Northern Ireland, said the think tank’s report.
The group feels that this plan demonstrates greater ambition for the U.K. to step into the European Economic Area (EEA) than was required by the campaigners for the Remain supporters.
Elimination of Customs and Compliance Checks
The proposed shared market between the U.K. an E.U. would include several industries, such as fisheries, agriculture and a customs union. As a result, any need for customs and compliance checks as are required between the E.U. and EEA countries would be eliminated. The think tank referred to the example of the border checks between Sweden and Norway. Last year alone, there were around 229,000 border checks processed.