UK and EU Relations

Baroness Anelay of St Johns Excerpts

Tuesday 12th September 2017 Lords Chamber

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[Baroness Anelay of St Johns]

That this House takes note of the position papers and future partnership papers published by Her Majesty’s Government on the United Kingdom’s future relationship with the European Union.

[The Minister of State, Department for Exiting the European Union (Baroness Anelay of St Johns) (Con)]

My Lords, the Motion standing in my name asks the House to take note of the papers published by Her Majesty’s Government during the summer on the UK’s position in the negotiating rounds and our future relationship with the European Union. These papers were developed to support the UK’s negotiating position and delivered transparency to Parliament and the public as we enter into our discussions with the EU. Over the summer, we published seven position papers unpacking a range of withdrawal issues, and six future partnership papers that set out the Government’s vision for the future partnership with the EU. It is on these 13 papers that I will focus my attention and that of the House today. However, note that these papers are in addition to five technical notes on key negotiation issues and two White Papers.

These papers reflect the Government’s constructive engagement with external parties and the extensive work undertaken across government since the referendum just over a year ago. As my right honourable friend the Secretary of State for Exiting the European Union and I outlined last week in the Statement, it is fair to say that we have seen concrete progress. I use this opportunity to outline how the approach set out in each position paper published to date helped secure that progress. My focus today, and my hope and expectation, is for this to be the beginning of an opportunity for Peers to feed back their views to the Government on the papers, and this being a continuing conversation—one in which I listen rather than speak. I know I will speak today but I would like to listen more.

First, on the paper on safeguarding the position of EU citizens in the UK and of UK nationals in the EU, our June policy paper set out our position on EU citizens’ rights in some detail. It is already clear that there is much common ground between the UK and EU positions and we are confident that we can reach agreement on this important issue early in negotiations. Indeed, we have achieved a great deal so far. As the joint technical paper we first published in July demonstrates, there is significant common ground between the EU’s and the UK’s respective positions, including on matters relating to immigration and residence, social security, healthcare and the mutual recognition of qualifications. I hope that those seeking more information on this issue will review these technical notes, which provide a detailed analysis of the work carried out so far. Looking ahead, we made concrete progress in preparing the ground for the September negotiations, where we expect to move closer to a reciprocal deal. However, as I set out last week, in a number of areas the UK’s position goes further than that of the EU as we seek to provide swift reassurance to the 4 million EU and UK citizens concerned.

Turning to privileges and immunities, we set out our position in July on the framework of privileges and immunities that allows for the smooth conduct of relations between the EU and the UK. Following the August round, I am pleased to say that we are close to agreement on our approach to post-exit privileges and immunities.

Also in July, we set out the key principles for our future co-operation on nuclear materials and safeguards. This includes ensuring a smooth transition to a UK nuclear safeguards regime, collaboration on research and development, minimising barriers to civil nuclear trade and providing clarity and certainty. As part of our orderly withdrawal, and to provide certainty to industry and reassurance to all, the UK welcomes early discussion on issues relating to nuclear safeguards arrangements and nuclear materials in the UK. I appreciate that there was much interest in this House and debate on that matter just before we rose in July. In the August round of negotiations, we reiterated a strong mutual interest in ensuring that the UK and Euratom community continue to work closely together in the future as part of a comprehensive new partnership.

July also saw the publication of our position paper, Ongoing Union Judicial and Administrative Proceedings, which sets out how the UK will seek to ensure a smooth and orderly transition to a position where the CJEU no longer has jurisdiction in this country. In the August round, the UK and the EU discussed and made progress on the cut-off points for cases being defined as pending. There was also progress in discussions concerning the UK’s role before the court whilst these pending cases are being heard.

At the time of withdrawal, administrative procedures will also be undertaken under EU regulations which concern businesses and individuals in the UK, and reaching agreement on the best approach for these is part of securing a smooth and orderly withdrawal from the EU.  

I know that the position paper we published in August on Northern Ireland and Ireland was a matter of much interest in this House. Our paper outlines the UK’s position on how to address the unique circumstances of Northern Ireland and Ireland. As the Prime Minister made clear in her Article 50 letter, preserving the unique relationship between the UK and Ireland and protecting the peace process in Northern Ireland is an absolute priority for the United Kingdom. The paper directly addresses separation issues to inform the current negotiations, but it also proposes high-level principles and criteria which are inextricably linked to the future relationship between the UK and the EU, and highlights the importance of moving to discussions on the future relationship as quickly as possible. In August, the negotiation co-ordinators had detailed discussions on the basis of this paper. We believe there is a high degree of convergence on key issues, and we agreed to work up shared principles on the common travel area. We also carried out further technical work on cross-border co-operation under the Belfast, otherwise known as the Good Friday, agreement.

We are also seeking a strong regime to protect the confidentiality of information and access to official documents produced or exchanged while the UK was a member state. Our position paper on this was published on 21 August. It shows that we are getting on with negotiations by directly responding to the EU’s paper, Issues relating to the Functioning of the Union Institutions, Agencies and Bodies. In the August round, we agreed general principles on a mutual approach to professional confidentiality and access to official documents exchanged or obtained prior to exit.

I appreciate that there has been not only interest in but reports by this House on continuity in the availability of goods for the EU and the UK. Our position paper was published in August. Moving to continuity in the availability of goods for the EU and the UK is vital. Ultimately, we want a deep and special partnership which allows the freest and most frictionless possible trade in goods. Our paper on this subject builds on a range of precedents for removing barriers to trade, together with the options set out for customs. In the negotiations we emphasised that the principles outlined in this paper seek to minimise uncertainty and disruption for business and consumers in the UK and the EU. However, our intention is that many of these issues will become irrelevant as we quickly move on to secure agreement about a deep and special partnership that includes free and frictionless trade in goods. For this reason, the UK sees this negotiation on the status of goods on the market before and after our withdrawal as an opportunity to provide certainty, but also recognise our common regulatory systems and ambition for co-operation in the future.

Looking to the future, we have, alongside negotiations, also published a number of papers over the summer which set out our thinking on our future partnership with the EU. These papers are different from our position papers, which relate specifically to negotiations on the withdrawal agreement itself. They offer pragmatic and innovative solutions to issues related to our withdrawal, as well as the future deep and special partnership we want with the European Union. From the start, we have argued that talks around our withdrawal cannot in practice be treated in isolation from the future partnership we wish to achieve.

The future partnership papers do not aim to dictate a single approach but rather to set out considered options for us to work on in partnership with the EU. One such paper was published on 15 August with regard to future customs arrangements, setting out our objectives and our proposals to achieve them. In assessing the options for the UK’s future outside the EU customs union, the Government will be guided by what delivers the greatest economic advantage to the UK and by three strategic objectives: ensuring that UK-EU trade is as frictionless as possible; avoiding a hard border between Ireland and Northern Ireland; and establishing an independent international trade policy.

Over the last year, the Government have conducted detailed and extensive work on all the options for a future customs relationship with the EU. Our paper sets out the two approaches that most commonly meet our objectives. Under either option, it will take time for the UK and our European neighbours to put the new system in place, and for businesses to adapt to new arrangements. The Government therefore wish to explore with the EU a model for an interim implementation period. The Commission published its own paper on customs last week, but that paper is focused narrowly on separation issues that would apply in a context where no agreement at all had been reached. We are more positive and forward-looking in the way we are approaching the matter. It is imperative that both sides consider our future arrangements together to ensure that there is as little disruption as possible to UK and European businesses, service providers and consumers.

The paper that we published on civil judicial co-operation in late August makes it clear that it is in the interests of the UK and the EU that there continues to be an effective framework for resolving cross-border legal disputes after we leave. This is to provide confidence and certainty, and minimise delay and expense for families, businesses and individuals, ensuring they can continue to settle cross-border disputes efficiently and effectively in the future. For businesses engaged in international trade, it is crucial to have confidence in, and respect for, choices made about which country’s courts will hear a case in the event of a dispute, and which country’s law will apply to resolve that dispute.

Our paper on enforcement and dispute resolution, published at the end of August, reinforces the Government’s message that after our withdrawal we will take back control of our laws and bring an end to the direct jurisdiction of the Court of Justice of the European Union in the United Kingdom. This paper states that it is in the interests of both parties that the rights and obligations agreed upon between us can be relied upon and enforced by individuals and businesses, and that where disputes arise between the UK and the EU on the application or interpretation of these obligations we can resolve them efficiently and effectively. We are clear that we do not consider that the Court of Justice of the EU should have direct jurisdiction for any of the UK-EU agreements that comprise the deep and special partnership. This is entirely in line with the many precedents which demonstrate that it is normal for the EU to reach agreements with third countries that provide for a close co-operative relationship, without the CJEU having direct jurisdiction over those third countries.

I turn to a matter of current issue, and certainly of great interest, under the presidency of the Council by Estonia: data protection. Our paper outlines the United Kingdom’s position on ensuring the continued protection and exchange of personal data between the UK and the EU. The UK recognises the need for, and indeed is one of the leading drivers of, high data protection standards across the globe. In an ever more connected world, we cannot expect data flows to remain confined within national borders. Individuals should have confidence that their personal data are being appropriately protected. After leaving the EU, the UK will continue to play a leading global role in the development and promotion of appropriate data protection standards and cross-border data flows. It is essential that we agree a UK-EU relationship on data that maintains the free flow of personal data between the UK and the EU and offers sufficient stability and confidence for businesses, public authorities and individuals.

More recently—last week—our paper on science and innovation explored how the UK can continue to collaborate with European partners on major science, research and technology initiatives. The UK has a long history of collaborating with European partners on ground-breaking research, from the development of a new clinical trials approach for the Ebola vaccine to cleaner energy and space exploration. This Government want the UK to maintain its world-leading position on science and innovation. We have four of the world’s top 10 universities, a world-class intellectual property regime and more Nobel laureates than any country apart from the US. As part of the new, deep and special relationship, the UK will seek an ambitious science and innovation agreement with the EU that ensures that the valuable research links between us can continue to grow.

Today our most recent paper was published, which sets out our vision for future UK-EU co-operation on foreign policy, defence, security and development. In doing so, it reinforces the Prime Minister’s message that the UK will continue to play a leading role as a global foreign policy and security actor. With challenges to our common security becoming more serious, our response cannot be to co-operate with one another less, but to work together more. This approach reflects our shared history, the practical benefits of our co-operation and the UK’s ongoing genuine commitment to the promotion of European interests and values across the world. The UK will also continue to use its partnerships and substantial international development budget to increase the impact of global development or to tackle country-specific problems. Noble Lords should have no doubt as to the commitment of this country to the security of Europe as a whole. The closing paragraph of today’s report makes clear our unconditional support for that.

Our future partnership papers describe a vision that will inform the current negotiations on separation issues where they relate to questions that can be settled only in light of the future partnership. Indeed, the early rounds of the negotiations have already demonstrated that many withdrawal questions and future partnership issues are inextricably linked. As the negotiations proceed in the autumn, the case for a more detailed discussion on that future partnership grows in importance. The position papers and those on the future partnership, taken together, provide the essential path towards building a new relationship to promote our shared interests and values—a relationship that will enable the continued success of all the peoples of the UK and the European Union, our closest neighbours and friends. I beg to move.