EU: Withdrawal and Future Relationship (Motions)

Marcus Fysh Excerpts

Wednesday 27th March 2019 Commons Chamber

[Mr Marcus Fysh (Yeovil) (Con)]

It is a pleasure to follow the right hon. Member for Leeds Central (Hilary Benn). However, let us actually remember the people in all this. They voted two years ago to leave the European Union and then they voted in an election in which we stood on a manifesto saying that we would leave the European Union and its two main pillars, the single market and the customs union, which are integral to what the European Union is. They want their instruction to be carried out now. To be honest, I think it is quite shameful to call for a second referendum before the result of the first has even been implemented.

Let me discuss what the reality would be if we went down the road of participation in the single market and customs union, which most of these motions are trying to implement, even as we leave, in contravention of our manifesto commitments and the referendum result. Those options would effectively give away our trade policy and the control of regulation in our own country, both of which are valuable to our economy, our future as a nation and our children.

With respect, many people do not quite understand what being in a customs union, rather than being in the customs union of the European Union, would actually entail. Many people think that it would allow frictionless trade, but that is not correct. It would mean that we would have to implement a system of movement certificates and export declarations. It would not take away the need for border formalities and the recording of goods moving across borders.

[Anna Soubry]

Will the hon. Gentleman give way?

[Mr Fysh]

I am not going to give way because I know that a lot of people want to speak.

In a customs union, we would not be in control of various aspects of the process. We would not be in control of the conditions of the border formalities, nor of the tariffs collected. For example, if goods were coming to our market via Rotterdam, the tariffs on those imports—effectively to us—would be collected and kept in the European Union. A customs union would not give us control over our money, our trading partners’ access to our market, or our traders’ access to our trading partners’ markets. It really is inconceivable that we should even be considering any recognisable description of a permanent customs union as a feature of leaving the EU. That is one reason that people outside this place are quite confused by some of the suggestions that the House has been coming up with.

Many of the single market and customs union proposals on the table tonight would not obviate the need for a backstop in the withdrawal agreement, so the problems of the withdrawal agreement highlighted by some Conservative Members and others would remain anyway. There is the problem of being hostage to fortune within the further negotiation of how these customs union or single market arrangements might work. For example, exemptions on fishing and other matters would still be up for negotiation, as we heard earlier, but we would be in a relatively weak position in those negotiations. Defence manufacturing would be prejudiced by the backstop, should we end up having to go into it. The same is true for agriculture, as the restrictions on state aid for our agriculture, while the EU is allowed to subsidise its agriculture, would still remain. The issue of Northern Ireland—what happens to Northern Ireland should we not be able to agree—would still remain. I do not really see those motions as solutions. It is also possible, to come to the circumstances of my motion—

[Toby Perkins (Chesterfield) (Lab)]

On a point of order, Mr Speaker. The hon. Gentleman has been on his feet for five minutes, but he has not yet had an opportunity to tell us why we should vote for his motion. Would you encourage him to tell us about motion (O), rather than what is wrong with all the other motions?

[Mr Speaker]

Yes, and it would be best if the hon. Member for Yeovil (Mr Fysh) would expedite the process in the light of the number of colleagues who wish to contribute.

[Mr Fysh]

That is exactly what I was getting to. Motion (O) is about what happens in the circumstances that we cannot agree a withdrawal agreement for one reason or another, and there are a host of circumstances where that might occur. The European Union might not want to do that. It might not want to extend; all sorts of different permutations could have an impact. I do not think that this House is going to revoke article 50, because that really would be a finger in the eye to the public, so we need to have a plan B. This sets out a plan B arrangement—a contingency arrangement. It is, in essence, a two-year stop-gap arrangement to facilitate trade and allow space for our longer-term negotiation to take place. It consists, in effect, of having a trade preference with no tariffs and no quantitative restrictions, with mutual recognition of standards and conformity assessment. It involves having a customs arrangement but one that consists of advance trade facilitation measures. We are prepared to pay money for that and to agree potentially other measures that are within the withdrawal agreement; the EU will no doubt want to try to agree some of the things, such as on geographical indications, that we have agreed.

This is a practical approach and a compromise that was discussed in the Malthouse process, showing what to do as a back-up if we cannot get anything else done. It is a very fair settlement. It does involve money, contrary to what the Secretary of State said. We know that EU business wants to trade with us. We now know that the EU and Ireland have no intention of putting up a hard border. I have no doubt that they have seen the alternative arrangements that we have proposed and that that is how they would want to implement things. So that is how we are going to do this.

This is simple to agree. It does not prejudice the future relationship with the EU, so we can keep talking about that. It is pro-trade and pro-business with the EU as well as the rest of the world. It honours the referendum and our manifesto. I commend it to the House.