(6 years, 7 months ago)
Commons ChamberThe hon. Gentleman is exactly right. Not only that, but those other countries that we might seek to get alternative trade arrangements with are further away, and when it comes to manufacturing industry in particular, geography matters—gravity matters. The best opportunities and the greatest markets will be those that are closest, especially in a world of just-in-time production where you might need to get supplies very rapidly into your factories or into your retailers.
The European Union is a customs union. The right hon. Lady has spoken of preserving our existing arrangements, but the motion speaks of the establishment of a customs union. Can she explain what the difference might be between “the customs union” and the customs union that she envisages?
Obviously, the customs union is a part of the European Union; that is the arrangement that is in place at the moment. I think we need a customs union because once outside the European Union you cannot have “the customs union”; but we are in danger of getting ourselves tangled up on the definite and indefinite article. We chose the words “an effective customs union” in the motion to avoid disputes about grammar, and to get to the substance. We want an arrangement that includes no tariffs, but has frictionless borders and, crucially, a common external tariff. That is the immensely important point that I want to cover now.