Scotland’s Place in Europe

36 | SCOTLAND’S PLACE IN EUROPE
Imports and exports outwith the European Single Market or not covered by the EEA
157. These arrangements would only be necessary for those elements of trade between
the UK and the European Single Market, and only to those products covered by the
EEA. It would, therefore, exclude agricultural and fisheries products. Similarly, as
Scotland would remain within the UK-wide customs union, there would be no
impact on goods and services traded between the UK and third countries.
158. It is worth stressing that insofar as the UK succeeds in its stated aim of negotiating
a free trade agreement with the EU, and replicating with non-EU countries the
terms of its present trade relations, the administrative burden associated with
managing rules of origin will be minimised even further.
Maintaining current free movement for people within the UK
159. The free movement of people is one of the essential four pillars of being in the
European Single Market and Chapter Two outlines the significant benefits to the
economy of Scotland, as well as providing the opportunity for thousands of Scots
who work, study or travel across the European Union. Limiting free movement of
people has the potential to seriously harm Scotland’s long-term economic future.
160. Indeed, regardless of the outcome of the Scottish Government’s efforts to keep
Scotland in the European Single Market in line with the proposal in this chapter,
there is a strong and increasingly urgent case for greater flexibilities on
immigration for different parts of the UK. It is increasingly clear that a one-sizefits-all
approach is not in the best interests of Scotland. For these reasons, Scotland
needs to explore a distinctive approach, whatever its future relationship with the
single market turns out to be.
161. There is, of course, past precedent for differentiation in Scotland. We have already
pioneered approaches suited to our particular circumstances such as the
introduction of “Fresh Talent” in 2005 which allowed international students to work
in Scotland, contributing to our economy and communities for two years after
graduation. There is also strong support for future differentiation – with our
partners in the university and business sectors, the Scottish Government has
consistently made the case for the re-introduction of a post study work route which
would allow talented graduates to stay in Scotland after completing their studies
and continue to make a valuable contribution to the country.
162. However, it is not just Scotland that would benefit from a more flexible approach
to immigration to the UK. The Mayor of London has also called for greater
flexibility. A report published in October 2016 59 identified different parts of the UK
with different immigration needs and proposed potential models for further
consideration. One such example is the possibility of a system of “regional visas”
for non-UK nationals being explored by the City of London Corporation.
59 Regional Visas – A Unique Immigration Solution, PWC for City of London Corporation