EU Withdrawal Joint Committee: Oversight

Marcus Fysh Excerpts

Wednesday 20th March 2019 Commons Chamber

[Mr Speaker]

I call Mr Marcus Fysh.

[Mr Marcus Fysh (Yeovil) (Con)]

Thank you, Mr Speaker, and very well done for granting this urgent question. I have been really concerned about this matter for a long time.

I want to talk about the mutual consent provision in article 166. Effectively, in certain circumstances, it gives the EU a hard veto over what the decisions are. The Minister said that no negotiation was planned, but we know that the customs procedure embedded in the plans for a backstop, should we be unable to agree a subsequent agreement, is admitted by the UK Government and the EU to be unworkable in its current form, is non-compliant with the Union customs code and is incomplete with respect to matters such as what happens to VAT at our borders or what happens with the export declarations. The customs procedure itself specifies that unilateral measures can be taken by the EU, should it not be satisfied with that procedure. The whole point is that these matters, and the rectification of these matters, are fundamental to the collection of taxes at our borders. There is no way in the world that we as a House should ever contemplate giving the EU power over how they are changed, as this provision does.

[Kwasi Kwarteng]

My hon. Friend is quite right to say that the EU may have a veto, but just as the mutual consent provision gives the EU a veto, it also gives us—the UK Government—a veto over such decisions. On VAT and other matters, much of what my hon. Friend said referred, in my understanding, to phase 2 of the negotiations, in which there will be, one hopes, a more comprehensive free trade agreement. That is the ultimate goal to which we are tending.