What is a Canada-style Brexit?27 Sep 2018 22:07
At its most basic, it is the idea that the UK would strike a free trade deal with the EU after Brexit along the lines of the agreement the bloc recently signed with Canada. This would remove most, if not all, customs tariffs on goods sold between the EU and Britain and potentially allow some market access for services. However, no one can say at this stage exactly how much market access such a deal would bring, or how disruptive it would be to current trade, as that would depend on the kind of deal negotiated.
It is important to note, however, that in any negotiation the EU would be very sensitive to the UK's close geographical proximity, as it is worried that a Canada-style deal could give the UK a competitive advantage. It is likely that they will demand legally binding commitments from the UK or clauses that would reduce market access if they did.
Why is the government opposed to the Canada option?
Principally because, they say, it would not solve the problem with the Irish border. The EU is worried that after Brexit Ireland could become a back door into the EU market for goods from around the world that have either not paid EU tariffs or fail to comply with its regulatory standards. It is for this reason that they are insisting on a "backstop" that would come into effect if the UK went down the road of Canada, because in this model the UK would be outside the EU's customs union and not following its regulations. The backstop would effectively put a customs and regulatory border in the Irish Sea, which is politically unacceptable to the government.
Do supporters of the Canada option have a solution to this problem?
They reject the entire premise of the EU's argument and maintain that it is possible to ensure that goods crossing between the north and south of Ireland fulfil customs requirements without the need for physical infrastructure at the border. They say that the government needs to stand firm on this and call the EU's bluff.
What is Canada+++?
It slightly depends who you ask, as this is a term that is bandied around and means different things to different people. In one context it refers to negotiating a more comprehensive trade treaty with the EU than the one with Canada. In another context it refers to a Canada-style free trade deal alongside other agreements on security cooperation and continued participation in EU programmes in areas such as science and technology.
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