European Affairs
Debate between Hilary Benn and Greg Hands(6 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Hands
It is a bit rich for the right hon. Gentleman to vote against the European Union (Withdrawal) Bill and then to call for something that would be a consequence of that Bill: creating a new geographical indication scheme—by the way, we will be doing that in consultation with the devolved Administrations—to make sure that we continue to protect the UK’s 84 registered GIs within the UK. That is the Government’s objective, which I would hope he would support.
Greg Hands
No, I will make a little more progress.
We have heard questions about why we would want a bespoke trade agreement rather than taking one off the shelf, which, the argument goes, would involve easier negotiation. I remind the House of the Government’s reasons for choosing this approach over existing models, such as the EEA or CETA, and why whatever model we choose must involve leaving the customs union. A Norway-style deal might seem superficially attractive, but we would be subject to any new rules that the Commission chose to enact, automatically and in their entirety, with no endpoint. Most importantly, we would have little influence over those rules and no vote, which would be too much of a loss of democratic control, and also no guarantee—far from it—that whatever the EU27 did would also be in the interests of UK businesses and consumers.
Nor should we look to a Canadian-style agreement for the answer. Even if it were easier to achieve a CETA-style deal, we start from a unique position of regulatory alignment with the EU. Unlike other countries, we start from the position that our systems are already the same. It is precisely because the Government recognise how important EU trade is that we must look to an ambitious deal, rather than starting our relationship from scratch with something like CETA.
As important as trade with the EU is, however, we must also look outside Europe. The IMF—this statistic is also on the Commission’s website—estimates that over the next decade or so, 90% of global growth will come from beyond the EU. China adds an economy the size of Switzerland every year. There will be over 1 billion middle-class African consumers in 2060, and Commonwealth GDP is predicted to hit $13 trillion in two years. These represent unprecedented opportunities, yet they are harder to reach from behind the EU’s customs wall. Only once we can sign our own independent trade deals can we take full advantage of them.
Signing those deals means being outside the customs union. We need look only to Turkey to see that being in the customs union, in whole or in part, can sometimes be the worst of all worlds.