Mr Paterson said Brussels’ refusal to accept British Brexit proposals is pushing business into a downward spiral of “uncertainty.”
He said: “They have simply not taken up our generosity to discuss the future trade relationship with the EU. That is providing very serious uncertainty to business.
“If we go on like this, and we’ve already seen the lite conclusion of this summit already – which was toughened up by Frau Merkel and the President of France – they’re not going to talk about trade at all today. That puts the whole thing off to December, then we have Christmas, then we have the New Year.”
Speaking to BBC Radio 4 Today, the North Shropshire MP said the UK wants to establish “the best possible relationship” with Brussels but should not be afraid to sidestep trade talks with the bloc.
Mr Paterson joined a group of fellow MPs, economists and historians in penning a letter to Prime Minister Theresa May demanding Britain revert to WTO trade rules immediately instead of waiting on Brussels to give the green light.
The letter, organised by Leave Means Leave, sets out how the UK economy can benefit from a clean break from talks if the UK has enough time to prepare.
It is signed by senior politicians including former cabinet ministers Lord Lawson, Peter Lilley, John Redwood MP and Labour MPs Kate Hoey and Graham Stringer.
In the event of no progress at the European Council, the UK should formally declare that it is assuming that it will be subject to WTO rules from 30 March 2019.
The authors of the letter argue that an ultimatum is needed as the EU institutions currently “do not believe that the UK would be prepared to go to WTO rules”.
The letter suggests Britain adopt a similar system to the one used by countries such as India or the United States as they “do not pay to sell to the EU but successfully trade from outside.”
The major intervention comes as the European Commission comes together to decide whether to progress Brexit talks onto the future trade relationship between the UK and the EU
Source : EXPRESS