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Former Tory cabinet minister Oliver Letwin in parliament
Former Tory cabinet minister Oliver Letwin in parliament. Photograph: AFP/Getty Images
Former Tory cabinet minister Oliver Letwin in parliament. Photograph: AFP/Getty Images

Parliament out of options to stop no-deal Brexit, says Letwin

This article is more than 4 years old

Senior Tory says new PM can now let UK crash out of EU if no legislation put before MPs

A senior Tory MP behind cross-party efforts to block a no-deal Brexit has said parliament has now run out of options for preventing the UK from crashing out of the EU after the defeat of Labour’s motion.

Oliver Letwin, a former cabinet minister, was among the signatories to a Labour-led attempt to tie the next prime minister’s hands by ruling out no deal. It was defeated by 11 votes after eight Labour MPs voted with the government and 13 abstained, cancelling out 10 Conservative rebels who voted with Labour.

The defeat means parliament has now exhausted the options for preventing a no-deal exit, according to Letwin. “We have run out of all the possibilities that any of us can at the moment think of,” he told BBC Radio 4’s Today programme.

The interviewer Nick Robinson pointed out that MPs could not block a no-deal exit happening by default if no legislation was put before parliament.

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What does a no-deal or WTO-rules Brexit mean?

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If the UK leaves the EU without a deal it would by default, become a “third country”, with no overarching post-Brexit plan in place and no transition period. The UK would no longer be paying into the EU budget, nor would it hand over the £39bn divorce payment.

The UK would drop out of countless arrangements, pacts and treaties, covering everything from tariffs to the movement of people, foodstuffs, other goods and data, to numerous specific deals on things such as aviation, and policing and security. Without an overall withdrawal agreement each element would need to be agreed. In the immediate aftermath, without a deal the UK would trade with the EU on the default terms of the World Trade Organization (WTO), including tariffs on agricultural goods. This has also been referred to by government ministers as an "Australia-style deal". Australia does not have a free trade agreement with the EU.

The UK government has already indicated that it will set low or no tariffs on goods coming into the country. This would lower the price of imports – making it harder for British manufacturers to compete with foreign goods. If the UK sets the tariffs to zero on goods coming in from the EU, under WTO “most favoured nation” rules it must also offer the same zero tariffs to other countries.

WTO rules only cover goods – they do not apply to financial services, a significant part of the UK’s economy. Trading under WTO rules will also require border checks, which could cause delays at ports, and a severe challenge to the peace process in Ireland without alternative arrangements in place to avoid a hard border.

Some no-deal supporters have claimed that the UK can use article XXIV of the General Agreement on Tariffs and Trade (Gatt) to force the EU to accept a period of up to 10 years where there are no tariffs while a free trade agreement is negotiated. However, the UK cannot invoke article XXIV unilaterally – the EU would have to agree to it. In previous cases where the article has been used, the two sides had a deal in place, and it has never been used to replicate something of the scale and complexity of the EU and the UK’s trading relationship.

The director general of the WTO, Roberto Azevêdo, has told Prospect magazine that “in simple factual terms in this scenario, you could expect to see the application of tariffs between the UK and EU where currently there are none”.

Until some agreements are in place, a no-deal scenario will place extra overheads on UK businesses – eg the current government advice is that all drivers, including lorries and commercial vehicles, will require extra documentation to be able to drive in Europe if there is no deal. Those arguing for a “managed” no deal envisage that a range of smaller, sector-by-sector, bilateral agreements could be quickly put into place as mutual self-interest between the UK and EU to avoid introducing or to rapidly remove this kind of bureaucracy.

Martin Belam

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Letwin said: “That’s an extremely good summary of the situation, alas.” He added: “If the government doesn’t bring something before parliament, parliament won’t have a chance to take a view on that.”

He played down the prospect of Tory MPs voting down their own government to prevent no deal. Letwin said: “Evidently that’s not something any of us want to do.”

He added: “I’m not confident as things stand that the current Labour leadership would know how to solve this crisis either.”

Letwin said he was not sure if Boris Johnson, the frontrunner for the Conservative leadership, was a “no-deal Brexiteer”. He conceded Johnson was “clearly quite likely” to become the next prime minister.

The former Conservative MP Nick Boles, who flew back to the UK to vote with Labour on Wednesday, also conceded that opponents of a no-deal departure were fast running out of options, apart from a confidence vote to bring down the government.

He said: “No-deal Brexit on 31 October is back to being a racing certainty. It is very hard to see where any further legislative opportunities will come from. So it’s now a question of politics – specifically whether a PM pursuing a no-deal Brexit can command and sustain the confidence of the House of Commons.”

More on this story

More on this story

  • Theresa May makes veiled attack on Boris Johnson's Brexit policy

  • Jeremy Hunt sparks business anger with no-deal Brexit comment

  • 'We need to move now': John McDonnell voices Labour Brexit policy frustration

  • Brexit civil servant in charge of no-deal planning quits

  • Boris Johnson's foreigner-bashing tying UK to no-deal Brexit, says Brussels

  • UK must decide next step on Brexit, says France’s Europe minister

  • Theresa May says next PM must not try to bypass parliament on Brexit

  • Tory MPs will try to stop no-deal Brexit with amendment

  • Japan says next British PM must not lead UK out of EU without deal

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