Future Relationship Between the UK and the EU

Edward Leigh Excerpts

Wednesday 18th July 2018 Commons Chamber

[Dominic Raab]

I thank the hon. Gentleman for his kind words. That is a draft agreement, which has not yet entered into force. We will of course be champions of global free trade with precisely those emerging markets of the future, from Asia to Latin America, which is where the jobs and opportunities will come from. Like him, I want to see more of that. In fact, one of the advantages of leaving the EU is that we will be able to have an even more energetic and liberal approach to free trade.

[Sir Edward Leigh (Gainsborough) (Con)]

My right hon. Friend was talking about the facilitated customs arrangement. Before Monday, it was already going to be difficult enough to persuade the EU that it was in its interests for us to collect tariffs on its behalf, but after Monday’s vote the arrangements must be reciprocal. Is there the remotest chance of us persuading the EU to collect tariffs on our behalf on some distant border? It just will not happen. It’s dead in the water, isn’t it?

[Dominic Raab]

My hon. Friend mentions the earlier approach. Under the earlier proposals for a new customs partnership, businesses would only receive tariff rebates after tracking goods through the entire supply chain to the point of final consumption in the UK. In contrast, the FCA—I hope this addresses his point—will be an upfront system. That means that most businesses, the overwhelming majority, would pay the right tariff to begin with. Other businesses could claim a tariff repayment as soon as possible in the supply chain. We will agree with the EU the circumstances in which repayments can be granted. As the White Paper makes clear, we will negotiate a reciprocal tariff revenue formula, taking into account goods destined for the UK entering via the EU and goods destined for the EU entering via the UK.

--- Later in debate ---

[Mr Baker]

I am about to come on to my alternative, but I will not have words put in my mouth. I said when I appeared on the television last Monday that this was a time for reflection and taking stock, because the choices before this country are grave. Every Member of this House, on whichever Bench they sit, needs to think extremely carefully about how we go forward. I will not have words put in my mouth. What I have said, I have said from my knowledge and I believe it. No one should plan on a high-alignment deal—an EEA-lite style deal—going through this House.

Three key steps should be taken as we go forward. The first is that those in the UK who I would call the establishment, the governing class—those who create the climate of opinion—must accept the referendum result and its consequences. I encourage them to look at President Tusk’s March statement on the guidelines. The red lines that the British public expect us to fulfil imply that the common landing ground of our relationship with the EU, which I spelled out, taking words from his statement, is partnership on security, some participation in research, innovation, culture and education, dealing with the absurd consequences that would otherwise arise, and having a free trade agreement in the style of a normal FTA, not EEA-lite. That must be embraced.

Secondly, I refer the House to the question asked of the Prime Minister by my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) today. The Government should table a legal text that should include a solution for the border in Ireland. We should stand ready, open, to negotiate this common ground set out in March.

[Sir Edward Leigh]

The Prime Minister appears to be saying that President Tusk’s suggestion of a Canada deal is not acceptable because it would result in some kind of hard border. That is not something I accept, but perhaps my hon. Friend can comment on it. If we have the facilitated customs arrangement, will we not need some tracking device and, if we have a tracking device, could that not be used to alleviate any hard border in Northern Ireland?

[Mr Baker]

Mr Speaker, I am conscious that I am going beyond the guidance that you gave us, and I am very grateful to you for allowing that.

What I would say to my hon. Friend the Member for Gainsborough (Sir Edward Leigh) is that I believe that the problems of the Irish border are first and foremost to do with political and administrative will. A great deal has been said about technology, which is in fact a distraction from the reality that there is already a border, particularly in relation to excise. It is necessary to have an element of political and administrative fudge on the border, if I may say so, but to do it in a way that works for both sides. I believe that it really is political and administrative will that stands in the way, and that there are no insurmountable problems on the border. I also believe that there are no insurmountable problems with customs declarations or rules of origin. I very much hope that my hon. Friend the Member for Yeovil (Mr Fysh) might touch on that, as I know that he is an expert on the subject.

The second point is to table legal text to stand ready in good faith to negotiate the landing zone set out by the President and Council and to be ready to deliver in the spirit of article 8.

The third thing we must do is that thing which the Cabinet resolved collectively at Chequers. We must accelerate the delivery of our plans to leave the European Union in the unwanted eventuality that nothing can be agreed. We must be ready. We cannot allow ourselves to be in a position where complacency means that the Government machine goes forward thinking that any deal will go through Parliament, when I feel confident that deals that are, for want of a better term, too soft will be rejected by this House. We cannot allow ourselves to be put in a position in which we are perhaps not as ready as we should be and a deal is unexpectedly voted down.