European Economic Area: UK Membership

John Stevenson Excerpts

Monday 6th November 2017 Commons Chamber

[Stephen Kinnock]

I think that there is unanimity, almost, on the issue of the timing. I would add that the benefit of EFTA is that it is not a customs union but a free trade area, thus enabling us to connect with the vital single EU market but also to strike third-country deals with countries including, potentially, the United States.

[John Stevenson (Carlisle) (Con)]

Does the hon. Gentleman agree that if the United Kingdom became part of EFTA, that could in many respects turbocharge EFTA and make it a far more appealing organisation in respect of trade deals?

[Stephen Kinnock]

That is an excellent point. I think that the current EFTA members recognise the clout that they would potentially have through the addition of a 60-million-person consumer market to their current market, which is a great deal smaller. As we know, global trade negotiations are all about leverage and clout.

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[John Stevenson (Carlisle) (Con)]

First, I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing this important and much needed debate. It is important because it is very relevant to our relationship with the EU. We see a lot of discussion going on in the media about the remain and leave debate, and the vote we had. In my view, that is over: the referendum decided that we should leave the EU, and that should now be a given—we have just to get on and accept it.

However, the referendum did not decide our future relationship between the UK and the EU. That is for the Government and Parliament to determine. It is our responsibility to achieve the best possible arrangement for the UK in our relationships with the EU. When we are doing that, we must recognise the views of both the 52% and the 48% from the referendum. It is important that we get the arrangement right and that it balances the different views in the best possible way, acknowledging that that will be difficult and we will have to compromise—that is a very important word.

I accept that there are two clear and different views: the “WTO view” and the “hardly any change at all” view. All of us would agree that in a perfect world there would be a perfect free trade agreement, but we need to have a reality check. At the moment there is a huge amount of uncertainty, which affects Parliament, Government activity, individuals and, most importantly, industry and commerce, where it is leading to decisions about investment not being taken or being postponed. To some extent, damage is already happening and it will continue to happen. For example, in my constituency a tyre factory was going to go ahead prior to the vote, but this has now been postponed and may never happen, so we are seeing the loss of £155 million of investment.

Two key decisions have been made. The first is that we are leaving the EU in March 2019. Secondly, there is a general acceptance that there has to be a transitional arrangement until 2021. I have watched the debate so far, and my conclusions are simple. We are leaving, as that was the decision of the people in the referendum. We all accept that there is a need for a transition, and we must also recognise the huge amount of uncertainty and the need to minimise it as soon as possible. We should look for the most practical, sensible and easy option to deal with that uncertainty—one that is easy to understand and well established. We do not need to invent the wheel once more. That solution is simply that we base our future on rejoining EFTA, thereby retaining membership of the EEA.

The advantages of such an approach have already been set out: we would leave the EU, as set out in the referendum; we would be out of the ECJ; agricultural and fisheries policies would be returned to us; we would have our own trade agreement opportunities; and, most importantly, we are talking about something that is established and understood by all concerned, and is a compromise.

[Sir Edward Leigh]

When my hon. Friend’s constituents voted to leave the EU, did they really vote to ensure that our borders remained open for ever more through European immigration? That would be the consequence of his proposal that we stay in the EEA.

[John Stevenson]

I am going on to talk about that very issue. I fully accept that my constituency voted to leave, and I totally respect that. I also understand that many of the reasons revolved around immigration.

By rejoining EFTA, we would eliminate a huge amount of the uncertainty almost immediately and we could very well turbo-charge EFTA in the future; a country of 65 million people would be coming in to support and help improve the prospects of additional agreements with other countries. But we have to acknowledge that there are certain compromises involved in our rejoining EFTA: free movement would continue—although, as the hon. Member for Aberavon has pointed out, there is article 112. We must also remember that we will need some sort of free movement if we are to make sure that we have people coming into this country with the right skills to support our industries.

[Alex Chalk (Cheltenham) (Con)]

Does my hon. Friend agree that it is clear that if David Cameron had been able to secure a form of emergency brake, it is more likely than not that the UK would have voted to remain? If EFTA does allow for third-party trade deals plus the introduction of an emergency brake, while ousting the jurisdiction of the ECJ, it should merit the closest consideration.

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[John Stevenson]

Hindsight is always a wonderful thing, but I very much sympathise with the point my hon. Friend puts forward.

Continued EFTA membership does mean access to the single market. Some people have commented that we would be a rule-taker. While we are going through the transition, that is likely to be true, but one can make the argument that we are already a rule-taker, because under the EU a lot of the decisions are made via a majority and we are sometimes in a minority and still have to accept those decisions. There would also undoubtedly be a requirement for us to continue to make a payment into the EU.

I accept that at present this approach is not perfect, but it is a compromise that we could have now. It would still allow us time to go for further negotiations to modify things such as immigration, access to the single market and the rules that we have to accept, and to have a debate about the amount of money we contribute to the EU. Today, politics would appear to have drifted to the political wings. The voice of the centre is struggling to be heard. It is as though the centre is no longer seen as appealing or as a place to be. However, I remind this House that life is not black and white; it is shades of grey. Compromise is required and certainty is urgently needed.

By rejoining EFTA, we would, to some extent, end the uncertainty now; business would be able to plan for the future more confidently. Negotiations would be able to continue with all parties, understanding the transition and the nature of the institutions, and in the long run we would hope to achieve a bespoke UK-EU agreement through the auspices of EFTA. I may be a centrist willing to be pragmatic and to compromise, but I firmly believe that such an approach is in the best interests of the people I represent and of the future of the United Kingdom.