EU Council

John Baron Excerpts

Wednesday 29th June 2016 Commons Chamber

[The Prime Minister]

The right hon. Gentleman makes an important point. This is one of the key arguments. When I examine why I have always believed that we are better off in, even though I have wanted to see reform, it has always come down to this: the single market exists, we are in it, and it will go on existing even if we leave it and it has a profound effect on our economic, business, political and national life. I certainly urge my colleagues to aim for the greatest possible access, but, obviously, they will have to think about what the benefits and disbenefits of that route are.

[Mr John Baron (Basildon and Billericay) (Con)]

Does the Prime Minister accept that, when negotiating with the EU, we should remember our many strengths? One of the strongest economies, Britain has many competitive advantages that would more than compensate for any tariffs, which the World Trade Organisation will ensure cannot be punitive even if they were imposed. Furthermore, nations around the world, including Australia and New Zealand, are already knocking at our door with regard to trade deals.

[The Prime Minister]

Certainly no one is more impressed by the strength of the British economy than I am. It is strong, and it has a lot of advantages and many key industries that are admired the world over. We have to recognise that it will be a hard and difficult negotiation in many ways, because we are negotiating with a bloc of 440 million people, but we should make the most of our strengths. I would avoid tariffs, though. The idea that tariffs can be compensated for in other ways is quite dangerous talk. If we think of the car companies and others that want to come and invest here, they do not want to do that and then pay tariffs as they sell into the European single market, so I think tariffs are, on the whole, to be avoided.