Brexit: Negotiations

Lord Hannay of Chiswick Excerpts

Thursday 22nd November 2018 Lords Chamber

[Baroness Evans of Bowes Park]

I thank my noble friend. I can certainly reassure him that the withdrawal agreement includes a legally binding commitment that ensures that both sides will use best endeavours to negotiate the detailed agreements he was talking about that will give effect to the future relationship, so that they can come into force by the end of 2020. We are obviously extremely pleased that the political document makes it very clear that whatever is agreed in relation to our future partnership with the EU must recognise the development of an independent UK trade policy, and of course during the implementation period we will be able to sign, negotiate and ratify our own trade agreements.

[Lord Hannay of Chiswick (CB)]

I thank the noble Baroness for the Statement. I agree with those who say that this is a highly aspirational document. I lighted upon a sentence which says that,

“a fair and appropriate financial contribution”,

will be made. Perhaps the noble Baroness could say something about how long she thinks it would take to flesh that out. It took Baroness Thatcher five years to get to a fair and appropriate financial contribution. How many years does the noble Baroness think it will take this negotiation?

Secondly, could the noble Baroness be very kind and now reply to the point made by the noble Baroness, Lady Ludford, about paragraph 134, on dispute settlement? It really is an important point and I am afraid that on Tuesday the noble and learned Lord, Lord Keen, did not get it quite right. It makes it quite clear that the European Court of Justice, which is described in this document that we are going to sign as,

“the sole arbiter of Union law”,

will in fact have an absolute grip on any disputes. That is the only reading of paragraph 134 that you can possibly make. And of course all these agreements will be European Union law, or they will be worthless. So could she comment on paragraph 134, please? It is a pretty important point.

[Baroness Evans of Bowes Park]

On the noble Lord’s first question, I answered it in my reply to my noble friend’s question when I said that we intend to have the future relationship come into force by the end of 2020. On the noble Lord’s second point, only the CJEU can bind the EU on the interpretation of EU law, so we have agreed that where a dispute raises a question of interpretation of EU law, the arbitration panel can refer this question to the CJEU for interpretation. What it cannot do is ask the CJEU to resolve the dispute. That will always be done by the independent arbitration panel. An ability for the CJEU to provide an interpretation of EU law is not the same as resolving disputes. The EU has been clear that that must fall to an independent arbitration panel. This respects the principle that the court of one party cannot resolve disputes between the two.