European Free Trade Association

Lord Lea of Crondall Excerpts

Tuesday 27th February 2018 Lords Chamber

Asked by

[Lord Lea of Crondall]

To ask Her Majesty’s Government whether remaining in the European Single Market, post-Brexit, would require the United Kingdom to retain membership of the European Economic Area and associated European Union agencies through re-joining the European Free Trade Association.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, the Government’s position is clear: the United Kingdom is leaving the EU and will no longer be a member of the single market. As such, we have no plans to join EFTA in order to continue to participate in the EEA agreement beyond the implementation period. Instead, we are seeking a bold and ambitious economic partnership that is of greater scope and ambition than any existing agreement.

[Lord Lea of Crondall (Lab)]

I thank the Minister for that helpful Answer. The customs union and the European single market are, from a practical and industrial perspective in the advanced economies, intertwined—technical standards being a good example. Is not the way to make the best of a bad job to move from where we are now, in Pillar 1 of the European Economic Area—namely, the EU—to Pillar 2, namely EFTA? We would not be at the EU table, it is true, but to make that complaint on the way out is palpably risible. Is not one indisputable advantage that EFTA is a vehicle which actually works, as opposed to one which has not yet been designed, let alone road tested? It has been a nice runner, without any engine or transmission failure since 1959, and we would get it for half price or, to use a different metaphor, for half the annual subscription and country membership.

[Lord Callanan]

I was not totally clear what the noble Lord was asking me there, but of course not all of the EFTA countries are in the EEA: Switzerland is not. We will clearly want to continue our relationship with the EFTA countries afterwards, as they are close friends and neighbours. After the end of the implementation period, we will of course want to continue our association with them.