Brexit deal should be judged a failure if businesses face ‘additional costs’ for EU trading, MPs warn

Theresa May’s Brexit deal must be judged a failure unless it secures “no additional costs” for businesses trading with the EU, a committee of MPs warns today.

Its report sets “a high bar” for the agreement the prime minister must achieve by the autumn – also demanding no new checks at the Irish border, or weakening of the fight against crime or terrorism, among no fewer than 15 tests.

Hilary Benn, the chairman of the Brexit committee, said MPs should be ready to use the “meaningful vote” to reject the Brexit deal if it fell short of the promises the Government had made for it.

“It is vital that UK businesses are able to continue to trade freely and sell services into our largest market after we leave, without additional costs or burdens or a hard border in Northern Ireland, and that we maintain close cooperation on defence, security, data and information sharing and consumer safety,” he said.

The report recommends the UK takes up the “Norway option” of European Economic Area (EEA) membership if the talks fail, arguing that could be “negotiated relatively quickly”.

Significantly, two Conservative members of the committee voted with opposition parties to deliver a majority backing the tests and EEA membership if necessary.

Talks are now getting under way on what the prime minister hopes will be a “deep and special partnership”, after agreement was reached on a 21-month transitional deal last month.

The EU has scotched UK hopes of a detailed trade agreement before Brexit Day next March. Instead, there will be merely be a “political declaration” on the “framework” for the future relationship.

The official deadline is October, for publication alongside the withdrawal agreement, allowing six months for ratification by the European Parliament.

Today’s report, agreed by 10 of the Brexit Committee’s 16 members, says the deal will be “judged on the ground” by the public and businesses, insisting it must deliver:

* An open border in Ireland, with “no physical infrastructure or any related checks and controls”.

* “Continued involvement” with Europol and the European Arrest Warrant as part of anti-crime cooperation that “must replicate” current arrangements.

* “No tariffs” on trade between the UK and the EU 27 – and “no additional costs” to businesses that trade in goods or services.

* No “additional border or rules of origin checks” that would delay the delivery of “perishable” items or clog up cross-border supply chains.

* Immigration arrangements that do not affect the movement of workers providing services across borders or their right to practise.

* Continued participation in the European Medicines Agency, the European Aviation Safety Agency, and the European Chemicals Agency.

* Continued participation in the Open Skies Agreement to ensure “no disruption to the existing level of direct flights”.

The long list of tests – there are 15 in all – makes it all-but impossible that the declaration will meet them all, given Ms May’s pledge to leave the EU single market and customs union.

Mr Benn acknowledged they “set a high bar”, but said they were based on the prime minister’s statements on life outside the EU and David Davis’ pledge that “any new deal would be at least as good as what we have now”.

“I hope these will assist parliament when it comes to its meaningful vote at the end of the Article 50 negotiations,” he added.

The prime minister has insisted rejection of the future deal framework by MPs would mean crashing out of the EU with no deal - because the two-year Article 50 timetable expires on 29 March next year.

However, Labour has insisted defeat in the “meaningful vote” should see the prime minister “go back to the negotiating table” to achieve a better deal.

Others have even suggested it would force Ms May's resignation and a possible attempt to extend the Article 50 timetable with the agreement of other EU nations.