Brexit: Trade Arrangements

Lord Purvis of Tweed Excerpts

Thursday 12th January 2017 Lords Chamber

[Lord Bridges of Headley]

My noble friend is absolutely right, and once again we need to be very precise in the use of our language here. In many treaties there are periods for implementation. In other treaties, heads of terms might be negotiated and they are a bridge between those heads of terms and the end date. We need to be very clear what we are talking about.

[Lord Purvis of Tweed (LD)]

My Lords, to remove potentially years and years of uncertainty over tariffs and regulatory instability for business, would not the clearest signal to British business be for the Government now to indicate their intention that the UK retain membership of the customs union? Have the Government ruled this out?

[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.