European Economic Area: UK Membership

Debate between Gareth Thomas and William Cash

Monday 6th November 2017 Commons Chamber

[Sir William Cash (Stone) (Con)]

For a free trade agreement to be possible after Brexit, the interim period must involve no membership of the EEA, the customs union or EFTA, because that would remove the freedom we need to negotiate with third countries. That includes any period in the EEA, being party to the EEA agreement, like EFTA states, or a bilateral Swiss-style agreement. The EEA essentially means membership of the single market and commitment to the four freedoms—free movement of goods, services, capital and workers. Three EFTA states—Norway, Iceland and Liechtenstein—signed the EEA agreement in 1994, but the EEA agreement would mean insufficient freedom for us to be a credible partner in trade negotiations with others. The agreement means taking on the single market acquis, but having no vote on legislation.

Through the EFTA Surveillance Authority, regulation is being harmonised, with EFTA itself stating that

“the EFTA Surveillance Authority and the EFTA court… respectively mirror the surveillance functions of the European Commission and the Competences of the Court of Justice of the European Union”.

The EEA therefore does involve the harmonisation of laws in significant areas of the environment, social policy and so on, in those countries’ domestic economies. It involves the application of ECJ case law by the EFTA court, and I completely disagree with the assertion of the hon. Member for Aberavon (Stephen Kinnock) that it does not. The EEA also includes the free movement of persons. In other words, the European Court of Justice effectively prevails, and our influence over the EEA would be infinitely and hopelessly inadequate.

Let us consider the experience of Norway for a moment. The Norwegian Government commissioned a study of the EEA’s impact, and it found that Norway implements

“approximately three quarters of substantive EU law and policy”.

That makes a mockery of much of what the hon. Gentleman said. Furthermore, the cost of the EEA to Norway has increased tenfold since 1992, and nearly 12,000 EU directives and regulations have been implemented through the EEA agreement and have changed Norwegian society in a significant number of areas. We are told that, on the EU legal database, 17,000 regulations have come to us since we entered the European Union, yet Norway, which is in the EEA, has acquired nearly 12,000 EU directives and regulations.

[Gareth Thomas]

Can the hon. Gentleman tell the House when a Norwegian Government last proposed leaving the EEA?

[Sir William Cash]

The Norwegian Government have consistently made it clear that their position is to stay in but, in practice, the trend of attitudes in Norway is increasingly moving against that position. I was at a conference only last week at which a young Norwegian leader of the people’s movement made it clear that more than 70% of young people in Norway want to get out of the EEA and do not want to join the EU. That is the position, and the bottom line—I do not need to speak any longer on this—is that there is absolutely no case whatsoever for our joining the EEA. Joining is completely contradictory to the mandate that we received in the referendum, which is perfectly clear. It is impossible.