(7 years, 10 months ago)
Commons ChamberI will correct one or two things the right hon. Gentleman got wrong about what I said. He is wrong to interpret what I said as any suggestion that we will not be able to negotiate this outcome in the timetable in front of us. I said the issue was that we would look at implementation issues, because they may well take time. I cited some of them—borders, customs and various other aspects that might take time to put into effect. It will be in the joint interests of the European Union and ourselves to put those in place. But more widely, I cannot think how I could have been clearer. I have answered every single question, with one exception, that the Labour spokesman put to us. I have tried to answer as many as I can of the ones the Select Committee put to us. We have been very clear. I do not think anybody out there will believe the Labour party now when it says, “We don’t know what the negotiating strategy is.” It is as plain as a pikestaff, and the right hon. Gentleman should recognise that.
The Prime Minister has indeed given clarity: we are leaving the single market, and we are leaving the customs union. But further to the point that has just been asked, in the implementation phase the Prime Minister has proposed after article 50—that period of adjustment to a deal—will all the detailed terms already have been finalised, or are the details of the so-called bold and ambitious deal, as she put it, to be worked out during the implementation phase?
My right hon. Friend wrote a very wise paper, which I referred to in a previous exchange here. He will recognise that the negotiating balance changes at the end of the two-year period, so it is very important that we conclude the deal by then. The implementation is a different matter; it may take time, and it does take time, but we cannot control that, whether we are putting in place a new customs arrangement or whatever it might be. So there are practicalities there, and it is the practicalities that will drive this.
(8 years ago)
Commons ChamberThe Prime Minister is currently in India attempting to begin negotiations on a trade deal that the UK may, in the event, not have the authority to conclude—not, that is, unless the Government have already quietly decided to leave the customs union. Will the Government give at least some indication of when they will set out their negotiating position on the core objectives of whether we remain in the customs union, whether we are attempting to retain full access to the single market, and whether we intend to retain passporting for our financial services?
As my right hon. Friend well knows, the issue of the customs union is a complex one. There are many different configurations. Turkey is inside the customs union but outside the single market, Norway is inside the single market but outside the customs union, and Switzerland is outside the customs union and partly inside the single market. We have to make a judgment on what is best for Britain in toto, in terms of its access both to the European market and to the rest of the world. We will make that judgment in due course and make it public in due course.
(8 years, 1 month ago)
Commons ChamberThe majority was over a million. This was, I think, the largest vote gained by any Government ever. [Interruption.] I assume that the right hon. Gentleman voted “remain”. It is rather rich for someone like him, who voted the other way, to try to be the arbiter and interpreter of those who voted to leave.
First, we must obey the democratic instruction that we were given. Secondly, I strongly challenge the idea that this will somehow cause an economic downturn. It will not: it will create economic opportunities on a major scale, and that is what we look forward to.
The Government’s negotiating position will leak as soon as other member states are told about it. Does the Secretary of State not recognise that it would be wholly unacceptable for the British public to find out what the United Kingdom’s position is from our counterparts in the negotiations?
Had the Chairman of the Treasury Committee read my evidence to the Lords Select Committee, he would have seen that I gave an undertaking that this House and the other House would be at least as well informed as democratic institutions on the continent, including the European Parliament. That has never been done before, but it will be done now.
(8 years, 2 months ago)
Commons ChamberIt is early days to forecast the negotiation, but the right hon. Gentleman is right—there is a large trade surplus. The one that was cited time and again during the referendum campaign, which I do not want to revisit, was the surplus in cars from Germany alone, for example. With countries of the European Union facing economic difficulties, I do not think they will want to create problems for themselves by creating bilateral arrangements that hurt them, so the way I think it will play out is that over the period concerned—probably a couple of years or so—people will start to focus on what their own national interest is. My experience of the European Union is that the Commission makes a great deal of public statements, but at the end of the day the national interest of individual countries decides the outcome.
Can the Secretary of State confirm that as the UK will want to be able to negotiate new trade deals with the rest of the world and has created a Department for that very purpose, it will not be able to remain a member of the customs union?
I am pleased to be asked a question by my right hon. Friend. I spent the weekend reading his draft for Open Europe. I did not agree with everything in it, but, as always with him, what he has to say was insightful and wise. I recommend that people read pages 10, 11 and 12 if they do not have a lot of time.
My right hon. Friend has a good point on the customs union. Membership of a customs union puts restrictions of varying degrees on what countries can do outside. It would put restrictions on what my right hon. Friend the Secretary of State for International Trade is doing, so we have to look at the matter carefully. There is a range of different types of customs union, but that is exactly the sort of decision that we will resolve before we trigger article 50.