Leaving the EU: Customs

Jeremy Quin Excerpts

Wednesday 16th May 2018 Commons Chamber

[Paul Blomfield]

The right hon. Gentleman misses the point. He should listen to his own International Trade Secretary, who has talked clearly about a customs union not preventing us from increasing trade.

[Jeremy Quin (Horsham) (Con)]

Will the hon. Gentleman give way?

[Paul Blomfield]

I am happy to give way—I enjoy the cut and thrust of debate—but interventions will cut into the time for other Members to speak.

[Jeremy Quin]

The hon. Gentleman talks about missing the point. I do not want to be rude, because he is making an interesting speech about the customs union, but the actual subject of the debate is whether or not these documents should be released. We are talking about an important constitutional precedent. We have been run by Cabinet government since George III. The hon. Gentleman has not even addressed that as an issue.

[Paul Blomfield]

I intend to address it as an issue as I conclude my remarks, so I will come back to that.

The Government’s own analysis shows that none of their ambitious proposed new trade deals will go anywhere near compensating for the loss of a customs union with the EU. Free trade agreements with the United States, China, India, Australia, the Gulf and south-east Asia would add just 0.3% to 0.6% to our GDP, but moving to a comprehensive free trade agreement with the EU would hit our growth by 5% over the next 15 years. Despite the number of air miles that the International Trade Secretary has clocked up, India has said that it is in no rush to strike a trade deal with us, while Japan has said that it is prioritising the EU for a trade deal.

Working with the EU in the future and seeking deals for a market of 650 million, we can build on the full or partial free trade agreements that we already enjoy with 68 other countries through the EU, as well as the EU deals just concluded with Japan, Singapore and Mexico. If we are confident about our country, and if we are ambitious for its future, we should recognise that we have nothing to fear from a new, comprehensive customs union and everything to gain. It is the best way to support jobs, particularly those 2.1 million in manufacturing, and it is an essential step towards avoiding a hard border in Northern Ireland.

When we previously heard the argument about playing into the hands of those with whom we are negotiating in the EU27, it was as bogus in relation to the other papers that have been released as it is to these papers. Members who insist on a customs partnership or the maximum facilitation model should be confident that the Cabinet papers will stand up to parliamentary scrutiny, and the constraints that were laid down previously provide for the confidentiality that is right for this place. Others who share concerns about those models should also want them to be subjected to proper scrutiny.

This is one of the most important decisions faced by the country since the second world war, but the Cabinet is unable to agree. Parliament therefore has a deep responsibility to stand up for the people whom we represent, and we need access to the information in order to do so. I hope that the House will approve the motion.

--- Later in debate ---

[Ross Thomson (Aberdeen South) (Con)]

When the UK voted to leave the EU, the UK voted to rejoin the rest of the world. The great Brexit prize will be our regaining our ability to strike new free trade deals across the globe, leading the world as a free trading nation, championing trade liberalisation, and directly taking on those who advocate protectionism. If we were to take the advice of some of our colleagues in the Lords or even right here in the Commons, we would find ourselves a vassal state, shackled to the rules of the customs union and unable to set our own trade policy, while not only being absent from the table, but out of the room when decisions affecting us are taken, which is the very worst of all worlds.

The Prime Minister has been clear that we are leaving the customs union, but what has been astonishing is the hokey-cokey approach to the customs union adopted by Labour Members: in out, in out, shake the shadow Cabinet all about. They are now taking a position that means that the UK will not be able to set its own independent trade policy. Labour peers have tried to frustrate the Brexit process, while Labour would keep us following EU rules with no say. Some Labour MPs want to keep us in the single market permanently.

[Jeremy Quin]

Like my hon. Friend, I have been very interested in the shenanigans within the Labour party. I know that Labour Members are all fair and decent-minded people, and I therefore trust that they will be releasing all the shadow Cabinet papers regarding their deliberations on this issue. Does he agree?

[Ross Thomson]

I wholeheartedly agree. If Labour Members think it is good enough for the Government to do this, it is certainly good enough for the shadow Cabinet.

Labour still refuses to commit to ending free movement. The hon. Member for Sheffield Central (Paul Blomfield) raised the issue of the border with Ireland in relation to “max fac”. Let us be clear that this approach relies on electronic customs clearing, which is standard practice across the EU, following World Customs Organisation principles.

I draw Members’ attention to the EU’s own customs expert, Lars Karlsson, who in evidence to the Brexit Committee said that using new technology is not in itself new. GPS technology, which most motorists already carry in their cars, has been available for years. Such technology is already in use for the mass tracking of vehicles, and it is used by the likes of Network Rail, and by Uber for taxis. Furthermore, we could extend the authorised economic operator or trusted trader schemes for reputable companies, such as Guinness, which already, despite the different excise duties, has many lorries crossing the Irish border that do not need ever to be stopped. Beyond the scaremongering, an Irish border without any infrastructure is absolutely possible, using both new and existing technology.