United Kingdom-European Union Future Economic Partnership

Lord Davies of Stamford Excerpts

Monday 5th March 2018 Lords Chamber

[Baroness Evans of Bowes Park]

Well, as the Statement made clear, if, as part of our future partnership, Parliament passes, for instance, an identical law to an EU law, it may make sense for our courts to look at the appropriate ECJ judgments so that they can interpret those laws consistently.

[Lord Davies of Stamford (Lab)]

It is an unconvincing Statement in many ways but there are three particular delusions and contradictions in it. First, the Prime Minister still has not explained how you can have two countries with different tariffs and no controls at the border, but that is exactly what she promised the Irish before Christmas. Secondly, and very importantly, the Prime Minister is still under this extraordinarily naive delusion that she can sign trade agreements with Mr Trump without obliging us to take American agricultural products, which is quite inconceivable, and that she can sign a trade agreement with China while retaining quotas on Chinese steel imports. She obviously does not know Mr Xi Jinping. She also does not take seriously Mr Modi’s statements about the need for Indian immigration as a priority, in the event that he signs trade agreements with this country.

Thirdly, it really must be almost unprecedented in history for a Government to adopt policies that are directly designed to weaken a major staple of economic activity in that country, which is exactly what is happening here with the rejection of the idea that we should retain passports for the single market in financial services, banking and insurance. Will the Minister commit to making a study of the economic costs of that very self-destructive policy?

[Baroness Evans of Bowes Park]

Well, I am afraid that I do not agree with the noble Lord’s extremely pessimistic view of every aspect of both the Statement and the Government’s approach. We believe that we will be able to develop a deep, special and productive relationship with the EU, which is what we are committed to, and the Prime Minister in the Statement set out the principles underpinning that.

In relation to the noble Lord’s point about passporting, the reason why we are not looking for passporting is that we understand that it is intrinsic to the single market, and it would require us to be subject to a single rule book over which we have no say. We are looking for a collaborative, objective framework that is reciprocal, mutually agreed and permanent, and therefore stable for businesses—and we believe that we can achieve this.