UK govt says Scottish Brexit proposal could disrupt trade

Trade between the United Kingdom’s four nations could be disrupted if Scotland wins a different divorce deal with the European Union, a letter from UK Brexit minister David Davis published by the Scottish government said on Friday.

Scotland, where a majority voted to stay in the EU though Britain as a whole voted to leave at a June referendum, has proposed a separate trade carve-out for itself in London’s upcoming divorce talks with the EU.

Scotland’s First Minister Nicola Sturgeon has said Prime Minister Theresa May’s government has not taken the proposals seriously, and has been seeking a new vote on independence from Britain.

“There are clear barriers to making your proposals a reality,” Davis said in a photocopy of the letter dated March 29 and addressed to Michael Russell, the Scottish minister for UK negotiations on Scotland’s place in Europe.

Russell published the letter despite an indication from May’s government not to do so.

“Scotland’s accession to the (European Free Trade Association) and then the (European Economic Area) would not be deliverable and, importantly, would require the consent of all EFTA and EU member states,” Davis wrote, referring to EFTA which includes Norway, Switzerland, Iceland and Liechtenstein.

“Any divergence between EU and UK law – as a result, perhaps, of new EU regulation – could lead to the creation of new barriers to trade within our Union,” Davis said.

He added that it could create potential “significant disruption to the internal UK market”.

The letter published by Russell offers some insight into the British government’s thinking on Scotland winning a separate deal after its vote to remain in the EU.

Russell said he had “repeatedly expressed disappointment that the substance of (joint) meetings has not enabled proper discussion or engagement on the strategic choices we face.

“The result is a negotiating position set out solely by the UK government rather than what was set out in the terms of reference, namely to agree a UK approach,” Russell said.

Sturgeon says Scotland needs a new referendum on secession to avoid being dragged out of the EU against its will.

This has been rebuffed by May‘s government and polls show that although support for independence stands at around 45 percent, most Scots do not want another vote on secession after rejecting it by a 10 point margin in 2014.

Davis said that, with more powers from Brussels to be repatriated to the UK after Brexit, “the outcome of this process will be a significant increase in the decision-making power of each devolved administration”, boosting the role of the assemblies in Northern Ireland, Scotland and Wales.

Britain hopes to continue collaboration with the EU on security and environmental issues and major science, research and technology initiatives to mutual benefit, Davis said.