Alexander Pannett 1.15 pm
On Wednesday, the EU and US announced plans to forge a free trade area within two years, that would see tariffs removed and markets liberalised between the two largest economies in the world.
It is estimated that, if the agreement is successful, the free trade area would improve competitiveness, create jobs and generate billions in trade for the two economic areas. This is vital during a time of lagging global economic growth.
Combined together the economies of the US and EU account for over 54% of world GDP in terms of value and 40% in terms of purchasing power. Increased trade would also lead to a greater exchange of both human and intellectual capital. This would re-invigorate the trans-Atlantic ties that underpin that elusive idiom of the “West”.
Domestically, the proposed trade agreement has huge implications for the UK’s relationship with both the EU and US. If successful, the free trade area would mortally wound the eurosceptic movement.
British eurosceptics rue the perceived Byzantine tentacles of EU bureaucracy and instead advocate closer ties with the more economically liberal and culturally similar US. Whilst ideologically supportive of a European single market, they question the worth of suffering a multitude of EU regulations for the dubious benefits of a free trade area with hemorrhaging European economies.
However, leaving the EU will mean being outside the proposed EU/US trade area. Considering the complexity and length of negotiations, there will be no opportunity for the UK to leave the EU and then enter the EU/US trade area as an equal third party. The EU/US free trade area would be a carrot that should not be given up.
Economics aside, abandoning the EU/US trade pact would be an absolute rejection of British foreign policy over the past 70 years. We have consistently seen ourselves at the main bridge between the US and Europe and our geo-political aims have focused on forging closer trans-Atlantic ties. A US presence in Europe assures both our security and our prosperity. It is the bedrock of the UK’s international relations.
Bizarrely, eurosceptics trumpet the foreign policy goal of closer US relations as the reason to leave the EU. They have ignored what America seeks from the “Special Relationship”. The Obama administration has been quite clear that an assertive UK in a strong Europe is what is most useful to the US. They desire an integrated Europe that can be a useful ally, and the UK’s role inside Europe is vital to achieving this.
The referendum proposed by David Cameron will allow the British public to fully engage with the pros and cons of EU membership. As John Major iterated in his backing of Cameron in a speech at Chatham House yesterday, "It will be healthy to let the electorate re-endorse our membership, or pull us out altogether. At present, we are drifting towards – and possibly through – the European exit.”
This is why the launch this week of European Mainstream, by pro-Euro Conservative MPs such as Robert Buckland and Laura Sandys, is a necessary reminder that there are many in the Conservative party who understand the importance of our relationship with the EU. This group supports the Prime Minister’s position on Europe; that both the UK and the EU are stronger with the UK inside Europe.
The proposed EU/US trade agreement is a timely reminder of the huge opportunities that the EU provides and will continue to provide. We have allowed the eurosceptics in politics and the media to dominate the debate for too long. The EU needs reform. I believe this as sincerely as many eurosceptics. But from the recent EU budget concessions to the enlarging of the EU and liberalising of the single market, the UK’s vision for the EU is bearing fruit.
The world is changing and Britain’s global interests must change with it. We are right to seek out new markets and partners and to review our existing relationships. But we must not be blind to the importance of our relationship with Europe. The British public deserves to know all the facts.
It is time for pro-Europeans from across the political spectrum to announce themselves.