Every alternative to EU membership would leave Britain “weaker, less safe, and worse off”, a British government report has said.
The document analyses four main options, including agreements with the EU like those enjoyed by Norway and Switzerland, and concludes that all would involve a loss of influence and the likelihood of higher tariffs for British exporters.
Foreign secretary Philip Hammond said the report was designed to "smoke out" the Leave campaigners, who had failed to clarify what future they advocated for Britain outside the EU.
Launching the report at the think tank Chatham House, Mr Hammond said: "At different times, the various Leave campaigns have suggested over 20 different models to choose from, including the current EU deals with Norway, Switzerland, Iceland, Lichtenstein, Canada, Turkey, Korea, Macedonia. Even Peru and Vanuatu!
“But they have been unable to settle on one. In fact, they have deliberately avoided trying because they cannot point to an example which is better than the special status within the EU that we now have on offer.”
Running through the options, the report says Norway, which has access to the European single market but cannot influence its rule, has the worst of both worlds.
It says bilateral deals with the EU, such as those enjoyed by Switzerland, Canada and Turkey, all have serious drawbacks and limitations, and simply relying on World Trade Organisation agreements would mean high tariffs for British goods.
Jobs at risk
“And that would not be all,” Mr Hammond said. “Under WTO rules, we couldn’t differentiate between countries. So, for example, if we decided to allow Irish goods to enter the UK tariff-free, we would have to do the same for all 160 countries in the WTO – putting British jobs at risk from foreign competition.”
Britain currently enjoys the benefits of EU trade deals with more than 50 countries, and Mr Hammond said it would take years to negotiate bilateral versions. He dismissed the idea that Britain could find an alternative to the EU in a community of English-speaking nations.
“Some have said we should focus our attention on the Anglosphere and the Commonwealth. But the EU already has or is negotiating trade deals with all the biggest commonwealth countries.
"None of our allies wants us to leave the EU – not Australia, not New Zealand, not Canada, not the US. In fact, the only country, if the truth is told, that would like us to leave the EU is Russia. That should probably tell us all we need to know."
Dodgy dossier
Dismissing the report as a “dodgy dossier”, Work and Pensions secretary
Iain Duncan Smith
, who is campaigning for a Leave vote, said Europe’s migration crisis showed that the real risk for Britain lay in remaining in the EU.
“This dodgy dossier won’t fool anyone,” he said, “and is proof that Remain are in denial about the risks of remaining in a crisis ridden EU.
“The truth is, we won’t copy any other country’s deal. We will have a settlement on our own terms – and one that will return control of our borders, and money to Britain. That’s the safer choice.”
