European Union (Withdrawal Agreement) Bill

Jonathan Edwards Excerpts
Committee stage & Committee: 1st sitting: House of Commons & Committee: 1st sitting
Tuesday 7th January 2020

(4 years, 3 months ago)

Commons Chamber
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Steve Barclay Portrait Steve Barclay
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I will move on, because new clauses 4 and 36 speak to the same point, but, in short, this is being done partly for the reasons I have already given the House in respect of what is set out in the political declaration, where there is a shared commitment, and partly because Members on my side of the House gave a manifesto commitment to stick to this timetable. I am sure the hon. Lady would be the first to criticise the Government if they made a manifesto commitment and then decided not to stand by it. So we are committed to the commitment we gave on the timescale, which is why we want to move forward with clause 33.

Steve Barclay Portrait Steve Barclay
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I will make a little progress and then, of course, I will come back to the hon. Gentleman.

New clauses 4 and 36 stand in the names of the Leader of the Opposition and the acting leader of the Liberal Democrats respectively. New clause 4 has been tabled by the Leader of the Opposition in an attempt to force the Government to extend the implementation period if a deal has not been agreed with the EU by 15 June. The new clause would also give Parliament a vote on any such extension. New clause 36 is similar in effect to new clause 4, but it would do this without having any parliamentary vote. It states that a deal is required on both economic and security matters by 1 June or an extension is mandated as a consequence of this legislation. The Opposition parties therefore want to amend the Bill to force further delay.

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Jonathan Edwards Portrait Jonathan Edwards
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Is not the danger in setting this fixed date that the British Government will quickly have to make a decision about what they want to achieve in the second phase of Brexit? Are they going to go for close alignment? If so, they could possibly get the deal done in the year. But if they decide they are going to disalign, that will create difficulties, and the best we can hope for will be, if not a no-deal cliff edge, a bare-bones free trade agreement. That could be very bad news for the economy.

Steve Barclay Portrait Steve Barclay
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With respect to the hon. Gentleman, we see it as a win-win. The EU wishes to trade with the UK; we wish to trade with the EU. They are our neighbours and we want to have a constructive relationship, but at the same time people voted for change and they want to see change. The Government are committed to delivering, through the Bill, the change that the British public voted for.

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Paul Blomfield Portrait Paul Blomfield
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I do not question the hon. Member’s credentials in terms of his concern about our leaving without a deal, but I ask him to look carefully at new clause 4. The framing of the new clause in relation to two years builds on the provisions of the withdrawal agreement to which the Government have signed up but includes the capacity for a much shorter transitional period if the Government are successful in concluding a deal or if this House agrees. Our proposal very much addresses the point that he makes. I will come to that in more detail, and he might want to intervene again.

It was because of the risks of a disorderly departure that we were first to argue—it seems like a very long time ago now—for a transition period, which at that stage the Government opposed. We were raising the voice of business and of the trade unions, and we were pleased when the Government accepted that principle, although they saved face by renaming it an implementation period. When the end of the transition was originally set for December 2020, it was on the assumption that we would have left the EU on 29 March last year, leaving 21 months—[Interruption.] The Under-Secretary of State for Exiting the European Union asks, “Why didn’t we?” He could ask that of a number of his colleagues, including the Prime Minister. That would have left 21 months to negotiate our new relationships on trade and, as my hon. Friend the Member for Rhondda (Chris Bryant) pointed out, on security in particular. Twenty-one months was seen as ambitious. Many in the Government sitting around the Cabinet table doubted its deliverability. That is why there was a provision to extend it. But now there is only 11 months, and in trade negotiation terms 11 months is unbelievably short.

The Government say that they want an ambitious, best-in-class free trade agreement. They talk about CETA as a model, but not about the time taken to negotiate CETA, of which they are well aware. They say that it will be easy to negotiate, because we start from the unique position in trade talks of existing alignment; the right hon. Member for Wokingham (John Redwood) is nodding. But it is the Government’s objective to diverge from that alignment, to seek a deal that allows the UK to race to the bottom, undercutting the EU on obligations and regulations and stepping off the level playing field. That will be uniquely difficult to negotiate, and any deal secured in 11 months is highly likely not to be a good deal for the UK.

Jonathan Edwards Portrait Jonathan Edwards
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The hon. Member is making an important point. Essentially, this will be the first trade deal in history where the aim is to put up barriers rather than remove them. Rather than this being an easy process, is it not likely to be convoluted and difficult?

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Sammy Wilson Portrait Sammy Wilson
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The Democratic Unionist party will be supporting clause 33, though tomorrow we will be tabling amendments to the Bill, because, although we accept that it is essential to get out of the EU as quickly as possible, we believe that the terms of the withdrawal agreement are detrimental to Northern Ireland. The purpose, however, of any amendments my party puts forward will be to assist the process of leaving the EU and to ensure that the whole UK leaves. That is not the case with new clauses 4 and 36, which are designed to extend the period for which we stay in the EU and would make it much more difficult to have a clean break.

Have we learned nothing from the tactics the EU has used over the last few years? The longer the period, the more it can hold back, and the more demands it can make. We have seen that time and again.

The last Parliament made it clear that it would not give the Government the support that they needed to move forward with a deal. The EU dug its heels in deeper, and did not try to be accommodating. What is important about clause 33 is that it draws a line, sends a signal and makes the position very clear. It says, “Here is the deadline: now get on with the negotiations.” No clearer message could be sent to those who are negotiating on the EU’s behalf.

Indeed it is significant that, although we were formerly told that a trade deal could take years to negotiate, the language is suddenly changing because the arithmetic in the House has changed and the Government’s will is different. We are now being told, “Well, it might not be as difficult as it was for Canada and Japan. After all, we are starting from the same place, and we have a lot of the same regulations”—and there are a number of other reasons why the negotiation might be easier than we were previously told that it would be.

Jonathan Edwards Portrait Jonathan Edwards
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I suspect that the right hon. Gentleman is referring to the comments of the EU Trade Commissioner. He made those comments in the context of a decision by the British Government to retain close alignment. The difficulties occur when we disalign.

Sammy Wilson Portrait Sammy Wilson
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Of course that will be the opening negotiating position. He is not going to say, “Yes, and by the way, we do not have to have close alignment.” There will still be a desire on the part of the EU to keep us as close as possible. However, one way of ensuring that we get a deal, and get the kind of deal that we want, is to make it clear that we will not engage in protracted negotiations. We must say, “We will not allow you to use all the tactics that you have used before. You must come to a conclusion. If you want access to our UK market—and you need access to it because you sell more to us than we sell to you—and if you want the future trading relationship and the co-operation that the Government have offered time and again, you must reach a deal quickly.”