Brexit: Negotiations and No-deal Contingency Planning

Debate between Lord Maude of Horsham and Lord Callanan

Tuesday 4th September 2018 Lords Chamber

[Lord Maude of Horsham (Con)]

My Lords, is it not now clear that, despite the best efforts of my noble friend and his Secretary of State, whom I admire greatly, the Chequers proposal could be agreed only at the expense of further, very substantial concessions extracted under duress, which would lock the UK indefinitely into a highly disadvantageous one-sided arrangement? Is it not now clear that there is a growing and powerful case for the UK to exercise its right to join the European Economic Area, very much as a holding arrangement, so that businesses could have a line of sight for the next few years on how they can trade and invest? That would create a period in which, when emotions have settled, a substantive free-trade agreement could be negotiated with the EU. Would he accept that this argument is most powerful not for those who want to reverse the result of the referendum and prevent Brexit happening but for those who, like myself, believe that it must happen?

[Lord Callanan]

I thank my noble friend for his comments; he brings a lot of informed commentary on the subject. I am afraid that I do not think the option he set out is particularly practical. Were we able to carry on with membership of the European Economic Area, of course freedom of movement would continue, which I think would disappoint a lot of people who voted for Brexit, while the legal options are not straightforward. It would require the agreement of existing EEA countries and the ongoing agreement and co-operation of the EU, which would not necessarily be forthcoming. I know that the option has been put forward in good faith by a number of people, but I am afraid that the legal and practical difficulties would be considerable. That is why we default to our proposals, which we continue to negotiate on in good faith in Brussels and in other member state capitals.