Future Relationship Between the UK and the EU

Jim Cunningham Excerpts

Wednesday 18th July 2018 Commons Chamber

[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.

[Mr Jim Cunningham (Coventry South) (Lab)]

What discussions has the Secretary of State had with companies in this country, such as Jaguar Land Rover, regarding their concerns about Brexit? What reassurances has he given them, or is it too early to ask him that question because he is fairly new in the job? I congratulate him on his appointment.

[Dominic Raab]

The hon. Gentleman is being far too kind, but I appreciate it. I have already met business leaders, from the Federation of Small Businesses to the CBI. The devil will of course be in the detail as we negotiate, but we have received a positive and constructive response. I will be meeting more business leaders on Friday, so perhaps next week I can fill him in further. I think it is widely understood that we have a principled but pragmatic and flexible approach that will preserve frictionless trade. The key advantage of the model we have is that it protects the UK-EU supply and value chains, and the businesses he refers to that rely on them. As well as supporting business, the approach would meet our shared commitments to Northern Ireland and Ireland in a way that respects the autonomy of the EU without harming the UK’s constitutional and economic integrity.