European Union: Future Relationship

Paul Blomfield Excerpts

Thursday 27th February 2020 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

I thank the Minister for the Cabinet Office for prior sight of his statement. He talks about having got Brexit done, but he knows that is not the case. We have taken the first step in leaving the European Union, but Brexit, as he knows, is far from done. The Government’s ambition for our new relationship with our most important trading partner is, frankly, underwhelming. They started with a commitment to securing the exact same benefits; then scaled it back to frictionless trade to protect our vital supply chains; then it was Canada-plus-plus-plus; and now it is Canada so long as that does not get in the way of ending our alignment with the standards that we have previously enjoyed.

The Minister talked about the Government’s mandate in the general election, which was based on a withdrawal agreement and a political declaration that says the free trade agreement will be

“underpinned by provisions ensuring a level playing field”.

They now apparently reject that. The Minister spoke of higher UK standards than are required within the EU, and he is right—there are some examples; there are also contrary examples—but EU standards are a floor, not a ceiling. May I ask the Minister: if the Government have no intention of falling below those standards, why are they unwilling to make that commitment?

I spent Monday evening with manufacturing companies from across the north of England, and they are not worried by alignment; indeed, they want it. They are concerned about the barriers to trade undermining their position in the crucial European market. I know that the Prime Minister has made his contempt for the views of business well known, but will the Government not think again at this crucial moment, because they are taking serious risks with our economy, people’s jobs and their livelihoods?

The Treasury analysis from November 2018 predicted that a Canada-style FTA would shrink the economy by up to 6.4%. I know the Government have rubbished their own analysis already, but what new analysis have they done? May I ask the Minister: will the Government publish a full economic impact assessment of the deal that they are seeking? Will they also publish the assessment of the other trade deals that he mentioned? A recent freedom of information request revealed that the Department for International Trade has commissioned and received, but not yet published, assessments of the impact on the UK economy of the FTA with the US, of that with Japan and of the Trans-Pacific Partnership. Will he commit to publishing those impact assessments immediately?

The Prime Minister has told us time and again that his Brexit deal

“represents stability and certainty for business.”—[Official Report, 19 October 2019; Vol. 666, c. 594.]

But in ruling out extending the transition period, the Government are taking business from one set of uncertainties to a new set. They are expecting to complete enormously complex negotiations in just 10 months, with a cavalier disregard for the consequences of failing to do so. The Minister’s warning to business that customs checks are “inevitable” and that “almost everybody” will face extra barriers at the border is deeply concerning. Indeed, the one place where the Government claim that there will not be checks—for GB trade with Northern Ireland—is the only place where they have actually so far committed to having them: down the Irish sea. In light of the conflicting statements from so many of his colleagues, will the Minister clarify the extent of checks along the border that the Government have created down the Irish sea?

Labour wants the best deal for Britain in trade, security and all the other areas mentioned by the Minister. That means maintaining the closest possible relationship with our most important trading partner, and it is on that that we will hold the Government to account.

[Michael Gove]

I am grateful to the hon. Gentleman for his questions and for the constructive way in which he approaches these matters. This Government are wholly committed to implementing the withdrawal agreement, to respecting and enacting the Northern Ireland protocol, and to giving effect to the political declaration and its aim of securing a comprehensive free trade agreement without tariffs, quotas or quantitative restrictions. He asked specifically about the maintenance of standards, and the requirement that we follow EU law and ECJ judgments in order to secure workers’ rights and environmental protections. We do not believe that is necessary, and the EU does not require submission to its legal order from any other sovereign independent state. Ultimately, the best guarantor of environmental protections and workers’ rights is a sovereign UK Parliament that is determined to lead in the world, just as this Government are doing in those areas.

It is vital to ensure that our manufacturing sector, like all sectors of our economy, is equipped to take advantage of new economic opportunities. That is what the Government are doing, and my right hon. Friend the Chancellor of the Exchequer will say more about how we can supercharge every part of our economy when he delivers the Budget statement on 11 March. The free trade agreement that we seek should ensure tariff-free access to markets, and provisions on rules of origin that will allow the manufacturing sector to flourish in the future.

The hon. Gentleman pointed out that the need to ensure that negotiations are concluded by the end of the transition period on 31 December necessarily means that they will have to proceed at pace. They will, but as I pointed out, and as he acknowledges, because we are seeking relationships for which there is already a precedent between the EU and other countries—precedents such as those between the EU and Canada, Japan, South Korea and others—it should be possible to make rapid progress. I note that my good friend, Dr Martin Selmayr—he is now the EU’s permanent representative to Austria, and he previously worked for the President of the Commission—has said that it would be entirely possible to conclude those negotiations in a timely fashion, and not for the last time, Dr Selmayr and I are in complete agreement on that.

The hon. Gentleman made a point about customs checks and a border down the Irish sea. There will be no border down the Irish sea, and we will ensure that there is unfettered access for Northern Ireland businesses to the rest of the United Kingdom.

I acknowledge the hon. Gentleman’s sincere beliefs and his commitment to appropriate scrutiny, but the problem for the Labour party more broadly is that its approach to Europe would mean that we would have no control over our fishing borders, no effective control over our borders, and no way of charting our own independent economic destiny. Looking at that proposal, I am afraid all I can say, as someone once said, is, “No, no, no.”