Brexit: Transition Period

Lord Hannay of Chiswick Excerpts

Wednesday 31st January 2018 Lords Chamber

[Lord Callanan]

The Liberals have obviously forgotten all about the referendum, but we will put that to one side. As an ex-member of the European Parliament, the noble Baroness will know that it is obviously illegal for the EU to sign trade deals with a country that is still a member. We need to be a third-party country, and we need also during the period to have the ability to agree and sign trade deals with other countries. That is why we need an implementation period. Article 50 says that we will leave the EU on 29 March next year. That is what will happen.

[Lord Hannay of Chiswick (CB)]

My Lords, will the Minister say what will happen if the period chosen by the EU and ourselves for the standstill period turns out to be insufficient for the negotiation of all the details and the implementation of the new partnership? Will that not simply postpone the cliff edge by 19 months or two years, and will it not then subject business to two wrenching changes, where one is the maximum that should be even thought about?

[Lord Callanan]

The reason that we are doing this is to have one set of changes. I totally agree with the noble Lord. It is very important that this period is strictly time limited, and both we and the EU agree that roughly two years is the appropriate period.