Brexit: Trade Arrangements

Lord Hannay of Chiswick Excerpts

Thursday 12th January 2017 Lords Chamber

[Lord Bridges of Headley]

The noble Lord raises an issue that the Government are analysing and assessing. There are a range of options open to us regarding the customs union and other aspects of our relationship with the EU. I will just repeat that we want to have a smooth and orderly exit, and as the Governor of the Bank of England pointed out yesterday, such an eventuality is in not just our interests but the interests of the EU itself.

[Lord Hannay of Chiswick (CB)]

My Lords, would the Minister perhaps respond to the point made by the noble Lord, Lord Wood: that you cannot start the negotiations for the new external relationship until after the withdrawal negotiations are concluded? I know that is the view of some people in Brussels, but I hope he will say that it is not the Government’s view and that their intention will be, after triggering Article 50, to begin the negotiations on a new external relationship without delay, and not to accept that they have to wait until the other negotiation is complete.

[Lord Bridges of Headley]

The noble Lord speaks with great authority on this, and he is absolutely right: there is nothing in Article 50 to suggest that we cannot negotiate the exit treaty and our new relationship with the EU at the same time. Indeed, paragraph 2 of Article 50, which I have in front of me, makes the point that the arrangements for a country’s withdrawal will be negotiated,

“taking account of the framework for its future relationship with the Union”.