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City pushes for Swiss-style EU trade deal

Brexit 2

City of London officials are lobbying for a unique trade deal with Europe that will build on the model Switzerland has with the EU.

According to the Financial Times, lawyers and bank bosses have been working on a plan to present to the Cabinet committee for Brexit, led by Prime Minister Theresa May, in early September.

A City taskforce, chaired by Santander chair Shriti Vadera, was given a blueprint for the UK’s relationship with the EU once it has exited the union. The report came from the British Bankers’ Association, advised by law form Clifford Chance and Global Counsel.

BBA chief executive Anthony Browne reportedly wants a bilateral deal with as much two-way market access as is possible.

The Swiss model gives some financial sectors – including life insurance – full two-way access through passporting rights while maintaining regulatory equivalence with the EU.

The City is expected to argue that because the UK is the biggest export market for the rest of the EU it should be able to negotiate an enhanced version of the Swiss model.

One potential obstacle to the UK achieving a bespoke trade deal is the EU pushing for the UK to accept freedom of movement across Europe if it wants single market access.

May reportedly wants initial positions to be ready in Autumn.

A Treasury spokesperson says: “We are actively engaged with the financial services sector and welcome its input as we prepare for the negotiations to exit the EU. Our position is absolutely clear, Britain remains open for business and we will work hard to get the best deal possible deal.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. So now it begins. The most profitable enterprise in the UK now fears for its future as a result of Brexit and we are only a couple of months in and have only signalled our intention – the deed is not yet done.

    How many more enterprises and businesses will come to discover that this xenophobic decision will not be so easy to overcome and may well lead to damage and detriment.

  2. Harry, I have to comment on your use of the word xenophobic.
    The UK is setting a course to leave a club with a population of some 500m, so as to open up more possibilities of trading with the wider world with a population 7,000m.
    How can opening up to trading with this wider world be xenophobic?

    As an aside how can leaving a club who’s rules we have little effect on and which has such a massive democracy deficit be considered such a terrible thing. Do you not believe the UK can be a success in the rest of the world? The rest of the world including China, the USA, Japan, Brazil and a host of other countries trade successfully with the EU without being a part of it and without having ‘freedom of movement’ of workers.
    Love to develop this further but must dash. Got to get some more business in Europe, the Far East and North America!!

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