EU Exit Negotiations

Owen Paterson Excerpts

Tuesday 17th October 2017 Commons Chamber

[Mr Davis]

There were three questions there, which I will take in sequence. First, on separating the 27, nothing could be further from the truth; the worst thing for the UK would be for us to have to deal with fragmentary groups of the European Union, as we would never get an answer and that would lead us to the Walloon Parliament outcome on the Transatlantic Trade and Investment Partnership and the Canadian treaty, so we have not done that at all. However, we should also talk to each of the 27 to see what their own interests are, as those of Poland and Lithuania may differ from those of littoral states such as Holland or Belgium, and differ again from those of Spain and Italy. We talk to all of them on a continuous basis to make sure we know what they want.

To pick up the hon. Gentleman’s last point, about his Polish constituents, let me say that we also go to those Governments to explain precisely what we have on offer. There have been times in the past few months when the European institutions have not reflected what we intended to do. For example, in a perfectly legitimate and reasonable mistake, Guy Verhofstadt said that we were not going to give European citizens the right to vote in local elections. That was not true, so we corrected it directly with the Governments.

As for no deal, the issue is straightforward: we are intending, setting out and straining every sinew to get a deal. That will be the best outcome, but for two reasons we need to prepare for all the other alternatives. The first is that it is a negotiation with many people and it could go wrong, so we have to be ready for that. The second is that in a negotiation you always have to have the right to walk away: if you do not, you get a terrible deal.

[Mr Owen Paterson (North Shropshire) (Con)]

Today, a report estimated that should we move to a tariff regime, the German motor car industry alone could lose between 8,600 and 29,400 jobs. It is massively in the interests of the UK and our 27 partners that we establish reciprocal free trade based on a recognition of conformity of standards. In his conclusion, the Secretary of State says that he recognises that we have reached the limits of what we can achieve without consideration of our future relationship. When are our partners going to recognise that it is massively in their interests that we establish reciprocal free trade and start talking about our end trading relationship?

[Mr Davis]

My right hon. Friend makes a good point. Of course it is absolutely in everybody’s interest that we have an outcome that encourages free trade in all directions, across the EU and with us. The simple truth is that we are in a negotiation and they are using time pressure to see whether they can get more money out of us—that is what is going on, as is obvious to anybody. That will take some time, but I am sure we will get there in time to get a decent outcome for everybody.