Leaving the European Union

Lord Hannay of Chiswick Excerpts

Monday 14th January 2019 Lords Chamber

[Baroness Evans of Bowes Park]

As we have said, we are working hard to get the deal through for that exact reason. No deal would create issues in Ireland, which is why we have been working so hard to ensure that we can move forward. Tomorrow, the Prime Minister will make the case in the Commons once again for people to support the deal so that we can move on to the future relationship and the strong partnership we want between the UK and the EU.

[Lord Hannay of Chiswick (CB)]

My Lords, can the Minister help the House by describing the implications of the most favoured nation provisions of the World Trade Organization—of which both we and the European Union are members—which do not permit us to not charge tariffs on any border with a country with which we are not in a free trade or customs union relationship at the time? If she explained that, it would answer quite a lot of the questions that have been asked.

[Baroness Evans of Bowes Park]

We do believe that we can do better than trading under WTO rules, which would mean tariffs and quotas on British goods going to the EU. For instance, trading on WTO rules would mean a 10% tariff on cars we sold to the EU and average tariffs of more than 35% on dairy products. That is why we are focused on achieving a broader, deeper and stronger economic partnership with the EU—a result flowing from the political declaration if the deal is passed tomorrow.