Exiting the EU: New Partnership

Debate between Jonathan Reynolds and David Davis

Thursday 2nd February 2017 Commons Chamber

[Mr Davis]

Absolutely, control does not mean slamming the door. As I said, it is in the UK’s interest to keep attracting talent, and if we attract talent, we attract the families—that goes without saying. Earlier, I was asked whether I could promise something that is to be negotiated, but this is something we will decide in this House, for the first time, in a couple of years’ time.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

One crucial and reasonable question for the Secretary of State to answer is: how does he see frictionless, unfettered trade with the EU continuing after we have signed free trade deals with other countries? Surely the greater the divergence between ourselves and the single market in external tariffs and standards, the greater their need at some point to impose customs checks on us.

[Mr Davis]

Obviously, we need to seek to maintain some sort of standard parity, be it by a measure of equivalence or by something else, depending on the product. The area where the deals outside and the deals with the European Union conflict is on rules of origin. We will have to have a good rules of origin scheme, just as any other free trade area has. For example, the Canadian treaty has specific rules of origin and we will need to do the same. But that is a very small burden by comparison with the sorts of things people are worrying about, if we get the customs agreement we seek.

New Partnership with the EU

Debate between Jonathan Reynolds and David Davis

Tuesday 17th January 2017 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Free trade in goods is much easier to achieve than the free flow of services where non-tariff barriers are the problem. How will the Government seek to ensure the continued success over time of UK financial service exports to Europe when we no longer get a say in the regulatory harmonisation that has facilitated that success so far?

[Mr Davis]

The hon. Gentleman may have noticed that last week TheCityUK, which obviously has an interest in the area he refers to, was talking about mutual recognition and external equivalence, as it were, rather than passporting. We have not arrived at a conclusion on that yet, but he is right that the goods side of it will be easier. That is partly because the single market is very incomplete in services. However, notwithstanding that, we have been very successful in this area, and he may take it as read that we will continue to facilitate that success.