Legislating for the Withdrawal Agreement

Colin Clark Excerpts

Monday 10th September 2018 Commons Chamber

[Colin Clark (Gordon) (Con)]

It is an honour to follow the hon. Member for Hartlepool (Mike Hill). It was great to hear about his admirably level-headed constituents; my constituents in Gordon are equally level-headed.

I was inspired by the paper on the withdrawal Bill that the Secretary of State published in July. He expressed a very positive view, referring to

“a smooth transition to a comprehensive future economic and security partnership for business and citizens”.

I could not agree with him more.

Fundamentally, the Government have, in good faith, prepared for an amicable Brexit. They have reached out; they have bent over backwards; and they have pushed colleagues to the limit to work with the EU. We need a sustainable plan, welcomed by the EU and by this Parliament. We need an agreement that would lay to rest the divisions on both sides of the House. The paper states that

“it remains our firm view…to reach agreement on a good and sustainable future relationship.”

That agreement must be legally robust.

The Government are publishing papers in preparation for no deal. I am a pragmatist—a long-time business person—and I know that we cannot afford a cliff-edge no deal. As the Minister said in her opening speech, the withdrawal agreement recognises that a deal is still being negotiated; but can we explore existing EU and international rules-based agreements? They are numerous and have been signed up to by major economies—valued trading partners of the EU.

This is a balance. Is the EU willing to accept a proposal that it claims undermines its founding principles—it does not look like it—or can we cut and paste from existing, tested free trade agreements such as the comprehensive economic and trade agreement and the Transatlantic Trade and Investment Partnership to facilitate a deal honouring article 50, respecting the right to withdraw, upholding World Trade Organisation rules, recognising regulatory equivalence, protecting the union of the United Kingdom and, fundamentally, respecting the will of the people of Britain, the EU’s closest trading partner and historic ally?

We must debate the merits of a hybrid deal. I do not accept that there can be no deal. I believe that there is time—within the timetable that has been specified—to agree a framework modelled on proven free trade agreements, allowing withdrawal as laid out in article 50 and outlined in the July 2018 exit document, and leaving 18 months in which to negotiate the detail. That could be welcomed by the EU and embraced by the British Government. It would be in line with their stated aims, and it would be vastly superior to a cliff-edge so-called hard Brexit.

My right hon. Friend the Member for Wokingham (John Redwood), who is no longer in the Chamber, mentioned a super-Canada, CETA-plus arrangement, which would be a comprehensive free trade deal. An enhanced basic Canada deal could deliver 99% access to the EU single market, with no fees and no free movement. President Tusk himself mentioned it.

As the Minister said, we have made significant progress in protecting the rights of EU citizens. The oil and gas industry in Gordon values them very highly.

[Peter Grant]

Everyone knows that one of Scotland’s major challenges is the fact that the age profile of our population is all wrong. Can the hon. Gentleman explain why the free movement of people is such a bad thing for his constituency?

--- Later in debate ---

[Colin Clark]

It is worrying that free movement into the rest of the United Kingdom has continued strongly during the Brexit debate but has fallen in Scotland. That prompts us to ask what it is about the Scottish economy and the Scottish Government that is putting people off coming to work in Scotland. It is deeply worrying that people are not moving from the south, from other countries, to work in our NHS. We are still bereft of doctors. But I will not go into that further, because to do so would diverge substantially from the subject that we are discussing.

An FTA would mean customs declarations, but let me respond to the issue raised earlier by the hon. Gentleman. The British people did vote to leave the customs union, and they did vote to leave the single market. They did that in the full understanding that it was in exchange for the return of sovereignty and self-government, and a proven free trade agreement would respect that.

We must remember that other countries that do not have FTAs do more exporting to the EU than we do. Only 12% of the UK economy and 5% of UK businesses even trade with the EU; 60% of our trade is with the rest of the world, and most of the world’s fifth largest economy—ours—is domestic. The reality is that even the EU single market for services barely exists. The European Commission’s 2014 single market integration report shows that trade integration stands at only 5% for services, compared with 22% for goods.

When the transition period begins, we will have 18 months in which to negotiate the details of an FTA or CETA-style deal. That will be mostly in the area of services, and financial services in particular. TTIP contained advanced provisions for services: the framework is there. We have an opportunity to cut and paste what already exists. As the Minister said, the purpose of the transition period is to provide certainty and consistency, and that is what my constituents in Gordon and businesses in the north-east of Scotland want to see.

[Sir Hugo Swire (East Devon) (Con)]

There has been much talk of a second referendum. I think that it would take Parliament eight or nine months to legislate for that, and would it not just mean a further negative in terms of inward investment and confidence in the British economy? Would it not be the worst possible outcome of all those that are being discussed?

[Colin Clark]

I could not agree more. The last thing that the country needs is more doubt about its politicians. The same applies to the referendum in Scotland. The people vote and trust us to represent them in a democratic system, and that is what we are here to do. We are here to make the difficult decisions, and we must be brave enough to do that.

Non-trade agreements can be made for aviation, customs and security. They can cover non-trade items such as Horizon 2020, Erasmus, or the European Aviation Safety Agency. North sea helicopter operators are a subject close to my heart, because the airport from which they fly is in my constituency. EASA needs associate access. The Government have already proposed that, but it requires an agreement, not a no deal.

A CETA-style FTA is not backward looking. It could free the UK to do its own free trade deals throughout the world. As has been said, 90% of growth over the next 10 to 15 years will be outside the European Union, and the Minister recognised that. We can build on those 65 bilateral deals the UK supported in the EU.

No deal is not an alternative; an internationally-tested FTA would be. It is said that the EU has never signed an FTA containing significant liberalisation in financial services, but the point is that it has; it has had deviations in the past, and therefore we should be ambitious about having them in the future.

[Stephen Kerr]

In fact, Michel Barnier himself has said:

“We are prepared to offer Britain a partnership such as there never has been with any other…country.”

That is exactly the kind of situation my hon. Friend is describing.

[Colin Clark]

I could not agree more. The UK’s aim of a deep and comprehensive trade agreement is a matter of degree, not principle, so this is surmountable.

[Chris Bryant]

But Mr Barnier’s comment is just a statement of the bleedin’ obvious, because of course the outcome will be different from anything there has ever been before because nobody has ever left the EU before. I do not think anybody should get over-excited by some mistranslated words from Michel Barnier.

[Colin Clark]

I thank the hon. Gentleman for his intervention, and I am glad he was intervening on the intervention on me.

We are either inside or outside the single market. Pragmatism shows derogations are possible, and in the latter case there have been many concessions. So is it in or out? The British people voted out; they expect us to deliver, not drive them into a cul-de-sac.

The EU has a record of FTAs—off-the-shelf agreements based on international trading rules that could protect the EU and UK industry and jobs, and that is paramount in what I want to see from this process. But without article 50 and £39 billion focusing EU negotiations, we cannot revisit this; we have to get it right the first time. The impediments are not insurmountable; we should stick to the transition timetable laid out in the withdrawal agreement, with a clear framework.