Leaving the European Union

Lord Wallace of Tankerness Excerpts

Monday 26th November 2018 Lords Chamber

[Baroness Evans of Bowes Park]

As I said, the withdrawal agreement contains a legally binding commitment to use best endeavours and to ensure that we negotiate in good faith. There will be a mechanism for resolving disputes, first through consultation at the joint committee, with the aim of reaching a mutually acceptable resolution. If that does not work, after three months either party can refer a dispute to independent arbitration. It is there in legally binding text, and that is how we believe both sides will go into the negotiation.

[Lord Wallace of Tankerness (LD)]

My Lords, will the noble Baroness the Leader of the House confirm that, if a matter is referred to independent arbitration and if any issue of European Union law should arise, it should be referred to the Court of Justice of the European Union for a binding ruling, with the arbitration panel obliged to settle a dispute in accordance with the ruling given by the CJEU? That makes a nonsense of saying that the CJEU will not have any relevance after Brexit.

[Baroness Evans of Bowes Park]

The arbitration panel would be the body to consider, decide and resolve disputes. The panel will consider a dispute, make a ruling based on findings of fact and reach conclusions on questions of law or of interpretation of the agreement, other than on points of EU law. If the panel decides that there is a question of EU law which requires interpretation, it will submit a question to the CJEU, but it is for the panel alone to decide whether to refer that question or not, and the resolution of the dispute remains solely with the arbitration panel.