DEBATE: Is ‘level playing field’ alignment a reasonable part of a UK-EU free trade agreement?

Is ‘level playing field’ alignment a necessary and reasonable part of a UK-EU free trade agreement?

Sir Ed Davey, Liberal Democrat acting leader and economy spokesperson, says YES.

Maintaining a common rulebook with the EU is in the UK’s best interest. Boris Johnson claims that, like Canada, we shouldn’t be expected to take on EU regulations. What he ignores is that our trading relationship with Europe is much deeper than Canada’s.

The EU accounts for 45 per cent of British exports and 53 per cent of imports. Combined, they’re worth a whopping £648bn. Canada, on the other hand, trades just 10 per cent of its goods with the EU, worth only £60bn.

Unlike Canada, The UK shares highly integrated industrial supply chains, and the EU is a key market for our services sector. No matter how much we expand trade with other regions, access to the European market can’t be replaced — and regulatory alignment is what makes this access possible, reducing costs and delays for our businesses.

Scrapping it will be a huge blow to industry, swathes of which might find it hard to keep trading.

Boris thinks that by tearing up the rulebook, he’s taking back control. All he’s doing is tearing up the UK’s business plan.

Victoria Hewson, head of regulatory affairs at the Institute of Economic Affairs, says NO.

A “level playing field” — a sporting analogy to appeal to the British sense of fair play? In reality, this is an effort by the EU to continue to apply EU rules and ECJ jurisdiction in this country.

The UK government has already said that it will accept the kind of commitments on competition policy, subsidies, environment and climate, labour, and tax that are usually found in free trade agreements.

This would give the EU the right to take retaliatory action if we are unfairly subsidising British producers, but would give the UK government autonomy in making the laws within the parameters of high level, common standards.

The EU, though, wants more. It is pressing to “ensure the application of Union State aid rules to and in the UK”.

The UK historically pays less state aid than almost any country in Europe, and has stronger employment laws and climate policies. So what is the EU really worried about? Surely if its regulations and policies are as good for growth competitiveness as its advocates claim, they have nothing to fear.

Main image credit: Getty