Paterson: assume no trade deal with EU

North Shropshire MP Owen Paterson is one of 30 signatories of a letter to Prime Minister Theresa May calling for her to start preparing to operate under World Trade Organisation terms when the UK leaves the EU in March 2019.

The call comes after EU negotiator Michel Barnier said "insufficient progress" had been made for trade negotiations to begin with Brexit Secretary David Davis.

The letter accuses the EU of deliberately dragging its heels on trade talks in the belief that Britain would not be prepared to walk away from negotiations without a deal.

It says focusing on administrative issues and looking at the opportunities presented by Brexit would give businesses the certainty they need, as well as providing an opportunity for Britain to develop its own independent trade policy.

Mr Paterson told the Shropshire Star that he did not advocate walking out of the talks, as some reports had suggested, but said there seemed to be little will on the part of the EU to negotiate a trade deal.

"We are not saying that the PM should walk out of talks, not at all," he said.

"It is the others who are not talking at the moment. If they decide they want to talk then that would be great."

The letter has been sent by the Leave Means Leave pressure group, with other signatories including former chancellor Lord Lawson, former trade secretary Peter Lilley, and ex Welsh secretary John Redwood.

Labour MPs Kate Hoey, Graham Stringer and Kelvin Hopkins have also signed the letter, along with JD Wetherspoon chairman Tim Martin, mail order tycoon and chairman of Labour Leave John Mills, economist Patrick Minford and scientist Prof Angus Dalgleish.

Leave Means Leave is said to have the backing of more than 50 Conservative MPs, so Mrs May will be in no doubt about its significance.

The letter says: "It has become increasingly clear that the European Commission is deliberately deferring discussions on the UK's future trading relationship with the E27 post-Brexit.

"This is causing a highly damaging level of uncertainty for businesses which need time to make preparations for March 2019.

"They EU is taking this approach because they do not believe that the UK would be prepared to go to WTO rules for our trading relationship with them.

"If the EU continues to refuse to discuss the future framework for a trade relationship, we should formally declare that we are assuming we will be subject to WTO rules from March 30, 2019.

"This would provide businesses with absolute certainty about the future and enable immediate steps to be taken to implement our independent trade policy.

"If early next year, the EU then decides to come back to discuss free trade, this will be a bonus – but it is not, and should not, be treated as essential."

It adds that countries such as the US and India do not pay to sell goods and services in the EU, but managed to trade successfully from outside.

He said leaving the EU would allow the UK to cut tariffs on imported food, meaning lower grocery bills.