UK’s Exit from the European Union

Debate between Layla Moran and Stephen Farry

Monday 24th April 2023 Westminster Hall

[Stephen Farry (North Down) (Alliance)]

It is a pleasure to serve under your chairmanship, Mr McCabe. I will make some specific comments in relation to Northern Ireland shortly, but I will first make some common points that apply UK-wide. Before getting to those, outside the Northern Ireland issue, which has been prominent in recent months and years, it is rare that we have a more general debate in this place about Brexit itself. Brexit has fundamentally changed so much in relation to the UK economy and our ability to influence transnational issues, such as crime and the environment. It has diminished the UK’s international standing. The UK is not as powerful a voice on the world stage as it was previously, when the European Union served to amplify that voice.

It is useful to drill down into the notion of sovereignty. For me, sovereignty is about the ability to do things, rather than some abstract concept. But even if we look at the abstract concept of sovereignty, that the UK was able to enter the European Union and also leave it proves that the UK had sovereignty all along. It was through pooling that sovereignty within the European Union that we were able to deliver collective outcomes for people right across Europe and, crucially, for people within the UK.

[Layla Moran (Oxford West and Abingdon) (LD)]

On that point, the hon. Member for Gravesham (Adam Holloway) mentioned that the laws that the EU created were not ones we chose. The fact is that we had MEPs who were on those commissions and the committees that decided those laws. Actually, the British voice was a leading light in many of the changes that were enacted. There were certainly changes that needed to be made in regards to the processes, but we had a seat at the table.

[Stephen Farry]

I agree. We will soon discover that in many respects, by design the UK will have to be a rule taker. It is in the fundamental interest of the UK economy to follow rules that are essentially set at the European level, but we will not have the important say that we had previously.

Like the hon. Member for Oxford West and Abingdon (Layla Moran) and many other colleagues in today’s debate, including the right hon. Member for Leeds Central (Hilary Benn), I sit on the UK Trade and Business Commission. Almost every week we hear evidence from a range of experts and other stakeholders who set out huge concerns about the impact of Brexit on their sectors. It is accurate to say that the UK economy has seen seriously constrained growth as a consequence of Brexit. Of course, there are other issues, but Brexit is by far the major stand-out factor that differentiates the UK from its main competitor nations in the developed world.

The trade deals that are happening around the world will never compensate for the increased trade barriers that we have erected with our closest and biggest external trading partner. It is one thing to say that the European Union is not growing at the same rate in terms of international trade; having a trading partner that represents 30% to 40% of our international market compared with a partner that grows from 0.1% to 0.2%, while maybe a radical change in the level of trade on the surface, does not amount to the same impact on UK business. Also, we have discovered that freedom of movement applies in two directions. Who knew? Constraints on the ability of others to come here applies to UK citizens seeking to move overseas.

I want to focus on the impact on Northern Ireland. In some ways, I feel slightly humbled in this respect because we have had, at the very least, the benefit of the Windsor framework. I put on the record again my appreciation for those who were involved in reaching that agreement, both on the UK side and in the European Commission. At best, the Windsor framework is a soft landing for Northern Ireland, but Northern Ireland will still suffer many of the same problems that the UK as a whole is facing from Brexit, as well as some further particular challenges that are unique to our own geographical situation on the island of Ireland.

Perhaps the most apparent consequence is seen in our governance. I have no doubt that my colleague, the hon. Member for Strangford (Jim Shannon), will express a different view on this when he speaks, but for me our governance worked based on sharing and interdependence. It relied upon the joint membership of the UK and Ireland within the single market and customs union, and that in turn allowed us to have those interlocking relationships, within Northern Ireland, on the island of Ireland and within the UK, allowing a balance of different identities to be expressed without that much encumbrance. Brexit—particularly a hard Brexit—will threaten some people’s sense of identity and create some degree of economic friction. The Windsor framework has gone a long way to mitigate some of that, but it only applies to goods and not to the other fundamental freedoms around services, capital and the freedom of movement.