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Last week, the government's white paper on Brexit told the country that it could expect a "common settlement" with the EU. We are now facing a continuous harmonization with the rules of the Union on goods. Unfortunately, this jeopardizes the opportunities offered by Brexit.
According to this plan approved by the cabinet of Checkers, the residence of the Prime Minister, Britain should obey EU regulations, follow the rules of the EU on the manufacture of all goods and on a wide range of interconnected areas.
The possibility of becoming a credible trading partner will be compromised and we will be unable to conclude free trade agreements. As Donald Trump rightly pointed out, it would "kill" the prospect of an agreement between the United States and the United Kingdom. Without the control of the goods, we would not have the decisive influence to open the export of services from the UK to the rest of the world.
Not controlling our own regulation is far from being an esoteric technicality. This would mean that the UK simply does not manage its own economy. The way laws are developed is also a central indicator of our democratic functioning. If parliament determines laws, we have one; otherwise, we do not do it.
If British democracy is now at stake, our future prosperity is too. Much of the regulation that emerges from Brussels favors incumbents – by preventing small, innovative firms from leaving the market. That's why the EU fails to compete with big innovative companies such as Microsoft and Facebook that were born in the United States.
Applying to EU regulation without any intervention would mean that any new innovative British company using artificial intelligence or biotechnology to develop life-changing products could find itself faced with regulations that make it uncompetitive for the rest of the world.
If the government follows its current course, it will curb innovation and hinder economic growth. It would be extremely dangerous to leave the EU but to remain subject to regulations from institutions in which we do not have a voice, as argued by an article from the Institute of Business. economic. Brexit can be an opportunity to become a much more competitive economy – not a transition house that will stifle wealth creation.
To be more dynamic, regulations must be developed to free the anti-competitive burdens that are strangling British companies. It also means that we must be a credible trading partner for the United States and the Trans-Pacific Partnership countries, such as Australia and Japan. We will not be credible if we can not make regulatory changes affecting large parts of the economy.
Of course, when a sector prefers EU regulations, it can and should use them. Having the freedom to diverge does not mean we will – and the UK should remain open to products manufactured to EU standards. Yet, if we can choose EU rules and standards when they are convenient to us, it goes against our economic and democratic interests which we should harmonize with the rules of the single market.
Precisely because we were a member of the single market, the regulations will be identical on Brexit Day. This creates an opportunity for the UK and the EU to recognize the rules of the other, allowing a low-friction exchange with a mechanism to handle the differences. Nobody denies that there will be costs, including in terms of customs clearance and regulatory divergence.
But they will be overwhelmingly offset by national economic opportunities and Britain's ability to be a serious trading partner.
This freedom to manage our own economy is vital. As the world's second largest exporter of services and fifth largest importer of goods, the United Kingdom has a unique opportunity to connect to the world's most dynamic markets in North America and Asia. Regulatory autonomy and pro-competitive regulation are essential to this mission. Success in Brexit means significant economic gains for all. But it also means a change in attitude; a rebirth of the spirit of enterprise, and the triumphant optimism of fear.
The writer is the former secretary of Brexit
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