Living Next Door to an Elephant: Lessons for the UK from EFTA

Summary:

The experience of the EFTA countries shows both the benefits and the inconveniences of being the EU’s neighbour. The EU is a reliable partner that can be flexible when it suits it. At the same time, it is an economic giant and a tough negotiator that is not afraid of throwing its weight around when it wants. And the combination of its size, relative openness and continued integration means that it inevitably draws in its neighbours in a constant pull. For the UK, there is little reason to pick any of the EFTA countries as a model. Given its own history with the EU, the UK must build from where it is rather than on what others have achieved. However, the experience of the EFTA countries holds some useful lessons in how to navigate relations with the EU to shape a uniquely British model: pay attention to process and institutions, know that the existence of EU red lines does not prevent the EU from being flexible when it wants, and be aware that there will be a constant incentive to engage and negotiate.

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