Leaving the EU: Customs

Debate between Lord McLoughlin and Paul Blomfield

Wednesday 16th May 2018 Commons Chamber

[Paul Blomfield]

I would, of course, and I am frankly distressed that those who favour the most destructive Brexit are so casually willing to dismiss that if it gets in the way of their objectives.

Let me return to the breadth of support for a comprehensive customs union outside the House. The director-general of the CBI, Carolyn Fairbairn, has described it as a non-ideological and practical solution. Crucially, she pointed out:

“If we don’t break the impasse on this customs decision, everybody will be affected—manufacturers, services companies, retailers. An awful lot hangs on this now.”

Her view is shared across business and the trade unions.

Those who seek the deepest possible rupture with the EU, no matter the cost, have been developing their arguments against a customs union, so let me address them. Some have warned that being in a customs union raises prices for food and clothing through the common external tariff. I hope that they will also reflect on the response of British farmers and clothes producers to their idea of unilaterally cutting our tariffs, presumably to zero.

I have also heard the absurd argument that developing countries would be disadvantaged by a customs union with the EU. Current customs arrangements serve developing countries well, as 49 of the poorest countries have tariff-free access to the EU market through the “Everything but Arms” policy. If the approach would be so damaging, perhaps the Government will explain why they propose to replicate the entire EU regime on market access for developing countries—the general system of preferences—after Brexit.

The most frequent objection, of course, is that a customs union would prevent us from signing trade deals with other countries—it would. That sounds significant, but the significance is largely symbolic. We can and do trade with non-EU countries without trade deals. The EU is our biggest trading partner, but the US is our biggest national trading partner, and that is without our having a trade deal. Some people talk about increasing trade with China once we are free of a customs union, but Germany trades four times as much with China as we do.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

How helpful does the hon. Gentleman think that the publication of all these documents would be to the people we are trying to negotiate with?

[Paul Blomfield]

The right hon. Gentleman misses the point. He should listen to his own International Trade Secretary, who has talked clearly about a customs union not preventing us from increasing trade.