The trade secretary rightly says a customs union would be the “worst of both worlds”. But Liam Fox draws the wrong conclusion. Instead of trying to forge an independent trade policy, we should stay in the EU.
Fox has quoted a famous Brussels saying: “If you are not at the table you are on the menu.” He has also pointed out the danger of being on the menu in the EU’s future trade talks. The other countries could sell access to our market to other countries without us having a say.
What this means is that the EU could, for example, do a deal with America opening up the NHS to competition from US healthcare companies. Or it could cut a deal with China which put our aerospace industry at an unfair competitive advantage.
Where Fox is wrong is in thinking we would fare much better if we go it alone. Although we are a big European economy, on the world stage we are medium sized. We do not have the clout to stand up to America or China in the increasingly brutal dog-eats-dog world of trade.
The Labour party‘s idea of joining a customs union with the EU and having a say over its future trade deals would solve the problem. The snag is it’s completely unrealistic to suppose that we could get a vote on the bloc’s trade if we are leaving the club.
This is why it is essential that the talks between Theresa May and Jeremy Corbyn over some compromise Brexit are not rushed. Anything they agree must first be tested with the other countries to make sure it is realistic. When MPs see what a customs union actually involves, many will pull back in horror.
This is all the more galling since the UK has been one of the most influential players in European trade over many years. Both the Conservative Leon Brittan and Labour’s Peter Mandelson were European trade commissioners. More recently, we have pushed hard for important trade deals with Canada and Japan.
Fox’s comments are the latest example of a hardline Brexiter inadvertently recognising how much power we currently have inside the EU. Jacob Rees-Mogg did something similar at the weekend when he suggested that we should be as awkward as possible if Brexit is delayed any longer. How could we be difficult if we are as powerless as he claims?
Rees-Mogg’s threat has now had the unfortunate consequence of making the other countries ask for assurances that we will not throw our weight around if Brexit is delayed. This could be a blow to our pride as well as the national interest – and rams home how many Brexiters are ideologues rather than true patriots.