‘UK’s future is BRIGHT outside EU’ - Rees-Mogg lays out POSITIVE Brexit blueprint

A faction of Brexiteer dissidents, spearheaded by Jacob Rees-Mogg, is working to create an “alternative view” to the Government’s White Paper, which was rubbished both by Westminster and the EU.

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The group intends to publish a policy paper next month detailing the advantages to the UK of leaving the EU on World Trade Organisation (WTO) terms.

Prominent Tory MPs, among them International Trade Secretary Liam Fox and Foreign Secretary Jeremy Hunt, have warned crashing out of the EU on WTO terms is an increasingly likely outcome.

Meanwhile, Remainers and groups such as the International Monetary Fund (IMF) brand the scenario Mr Rees-Mogg is proposing as a “cliff edge” situation, which will harm economic prosperity all over the continent.

In recent gloomy forecasts inciting “project fear”, the IMF estimated the EU's lost economic output in the event of a so-called “no deal” Brexit would be around $250billion (£196billion).
But Mr Rees-Mogg and his trusted group of hardline Brexiteers insist there can be a positive way forward on WTO rules for the UK post-Brexit.

Still in the development stages, the policy paper they aim to publish is understood to follow a Canadian-style free trade agreement, but only if the EU compromises on demands over the Irish border.

Writing in The Times today, Conservative former Cabinet Minister Lord Lilley claimed that while a Canadian-style trade deal would be the “best outcome”, no deal “would be a good second best”.

He said: “The Chequers plan is moribund and the agreement offered by the EU in March is unacceptable because the ‘Irish backstop’ means splitting the UK.
“‘No deal’ is likely and would be a good second best, making a better deal possible later.”

Mr Rees-Mogg contends if the EU refuses to compromise on the Irish border, the UK could still thrive relying on WTO mechanisms.

Under a Canadian-style arrangement, the UK and the EU would have no tariffs on trade between them, but the UK would not be a member of the single market or customs union.

Mr Rees Mogg, who is the chairman of the European Research Group (ERG) of Conservative MPs, is working alongside former Brexit minister Steve Baker to devise a plan to create an “alternative view” to the Government’s White Paper.

60 to 80 Conservative MPs are predicted to support Mr Rees-Mogg’s plans, ratcheting up the pressure on the Prime Minister ahead of the party conference in Birmingham this October.
Mrs May now fears such a show of strength by the Tory right may discourage the Brussels machine from seriously engaging with her plans; EU negotiators may surmise she does not have the backing to push her proposals through Parliament.

Senior ERG figures believe Brussels will reject the Chequers proposals anyway.

One said: “We have made it very clear that we do not accept the Chequers proposals, but there is an acknowledgement that we need to make the case for an alternative.

“The tricky bit is coming to a common position that everyone can sign up to, but I’m confident that we should be able to achieve that.”

Another source said: “We are working to come up with a positive policy paper that will take a realistic approach outlining what is acceptable in line with the referendum result.”
Writing to their colleagues before they return to Parliament next month, two Tory MPs said: “We need an agreement that stands the best chance of getting through Parliament.

“We are worried that this outcome could be put at risk by those who, perfectly honourably, seek the purity of perfection.

“In politics, ‘perfection’ does not exist, it is the siren song calling us on to the rocks.”

It is understood the EU’s chief negotiator, Michel Barnier, and the Brexit Secretary, Dominic Raab, will issue a joint statement next week.