Leaving the EU

Marcus Fysh Excerpts

Monday 26th November 2018 Commons Chamber

[The Prime Minister]

No, the political declaration is a clear set of instructions to the negotiators on the legal text. I have also on a number of occasions made clear the position on the European Union not being able to sign a legal treaty relating to these trade matters with a country until that country is a third country.

[Mr Marcus Fysh (Yeovil) (Con)]

Some 123,000 defence industry jobs nationwide and our security and that of our allies depend on our defence industry being competitive and flexible, with Government involvement, yet the permanent backstop in the withdrawal agreement that would apply should the EU not choose arbitration would oblige our defence industry to comply with EU state aid law, from which EU defence firms are exempt. Why would my right hon. Friend give the EU this—yet another hostage to negotiate with—and have us beg to keep our sovereign ability in defence?

[The Prime Minister]

First, this is not a permanent backstop. Secondly, I do not share my hon. Friend’s interpretation in relation to the defence industry. The issue of state aid is simple: in any trade agreement we have with any country around the world, there would need to be elements relating to competitiveness matters, such as state aid. In the White Paper in the summer, we put forward a set of proposals that went further than some arrangements that would be in other trade agreements, but it is not the case that state aid will never be included in trade arrangements. State aid is included in trade arrangements.