Exiting the EU

Lord Hannay of Chiswick Excerpts

Monday 9th July 2018 Lords Chamber

[Lord Hannay of Chiswick (CB)]

My Lords, first, what the Leader of the House has said about dispute settlement for trade seems incredibly complex. Can she say whether there is any precedent for introducing into international law—because this will eventually be a treaty—the concept of “due regard” by one court for another? Has that ever been done before? This proposal is completely unsuited to some parts of the future partnership, particularly those dealing with justice and home affairs and the European arrest warrant, which cannot possibly be handled on the basis that has been set out. Would it not have been wiser to have looked at the precedent of the EFTA Court, on which we could have representation and which would provide a means of dispute settlement, for both goods and justice and home affairs? Secondly, the Statement states categorically and flatly that what has been proposed does not inhibit our right or ability to make deals with third countries. Can she name any third country that agrees with that proposition? Finally, the Brexit dividend seems to have come up. Could she table at some stage the size of the Brexit dividend, just for the next five financial years?

[Baroness Evans of Bowes Park]

I am sure that the noble Lord will be pleased to know that Malcolm Turnbull has welcomed the fact that we want to talk about joining the Trans-Pacific Partnership after we have completed our exit from the EU. There are certainly countries which are very keen to have trade relationships with us. In relation to his question about dispute resolution, where there is a dispute, it will be raised in a joint committee, which can refer a question to the CJEU only with the agreement of both parties. If the joint committee cannot resolve the dispute, it will go to independent arbitration. That mechanism respects our red line that the court of one party cannot resolve disputes between the two and the EU’s red line that the CJEU has to be the ultimate arbiter of EU law.