Germany’s ‘soft Brexit’ suggestion is not as favourable to the UK as being a non-EU contracting partner to the European Economic Area Agreement (EEAA).
Letter to The Times, June 20 2017.
‘Soft’ Brexit plan
Sir, Further to your report “Germany offers soft Brexit amid worries about coup at No 10” (June 19), the German suggestion is well meant but is not as favourable to the UK as being a non-EU contracting partner to the European Economic Area Agreement (EEAA) as we negotiate an EU-UK trade agreement. The proposed court would be joint EU-UK, ie. it would retain a direct EU influence. In contrast, the EEA agreement’s “Efta” court is a fully independent court whose judges come only from non-EU members.
The contracting parties to the EEAA formally agreed in 2007 that the “Efta” court can differ significantly from the European Court of Justice in its interpretation of the implications of the free movement of persons directive. This highly advantageous (to the UK) agreement could easily be lost in a bespoke negotiation. Bundling the single market and customs union, as in the EU treaties, contrast unfavourably with the EEAA which rightly keeps them rigidly unbundled. Norway and Iceland do not have customs union arrangements with the EU. Lichtenstein is part of a customs union, but that is with Switzerland. The EEAA also allows the UK to run its own agriculture and fishing policy.
The primary aim of the EEAA is commercial and for open trading, whereas the primary aim of the EU customs union is protectionist.
House of Lords