UK-EU Negotiations

Rachel Reeves Excerpts

Tuesday 16th June 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

Four years ago today, I was at Leeds General Infirmary with Jo Cox’s parents and her sister. I will never forget that day and all that we lost. Today we remember Jo and remind ourselves of her values and all that she stood for.

I thank the Minister for an advance copy of his statement today. Following the meeting on Friday, both the UK and the EU confirmed that there is not going to be an extension of negotiations beyond the end of this year, which puts the focus firmly on both sides to secure the deal that they describe in the political declaration. The right hon. Gentleman knows full well what a calamity leaving only on World Trade Organisation terms would be for our country. Last year, the Minister told the Oxford farming conference that small farms would be hardest hit by the barriers and tariffs of trading on WTO terms. That is on top of what many farmers fear from a lack of safeguards from cheap imports with lower environmental and animal welfare standards.

This is not an isolated incident of uncertainty. In the automotive industry, Nissan says:

“We’ve modelled every possible ramification of Brexit and the fact remains that our entire business…is not sustainable in the event of WTO tariffs”.

Similar warnings have been issued by Vauxhall’s owners about their future presence in Ellesmere Port. The Minister has made clear in the past why it is important to secure a deal, so will he explain again today why a deal is better than leaving on WTO terms?

The Prime Minister has staked his own authority on having an “oven-ready” deal, but in his statement the Minister said that we wanted to intensify talks in July and find, if possible, an early understanding of principles underlying any agreement. That does not sound like an oven-ready deal to me, and is a cause of great concern for all of us. The ingredients of such a deal were published, and the country expects them to be delivered.

The Minister has referred today to his manifesto pledges to end the transition period at the end of this year, so may I remind him of some other pledges in that manifesto? First,

“no tariffs, fees, charges or quantitative restrictions”

across all sectors. Will the Government give UK industries and workforces peace of mind and prevent their business models from rupturing in the coming months? Late on Thursday, the Government published a written statement indicating a U-turn on border controls, perhaps recognising that they simply have not done enough to prepare for new rules that they wanted to introduce. That does nothing, however, to help British businesses that export to the UK. The Minister said in his statement that the Government would manage the commitments required, but he cannot make that pledge unilaterally. How will the Government help exporters, who will face those rules from day one?

Secondly, the Conservative manifesto told voters that the Brexit deal would safeguard workers’ rights, consumer and environmental protections. Does the Minister agree that it is essential that the UK defends those standards in all trade negotiations with other countries? People want to see the UK win a race to the top, not be forced into a race to the bottom, overseen by an overseas president.

Thirdly, we were promised a

“broad, comprehensive and balanced security partnership.”

There is no greater priority than keeping the British people safe and secure. On 3 June, with regard to European criminal records data, the right hon. Member for Maidenhead (Mrs May) asked for

“reassurance that as from 1 January 2021, the UK will have access to the quantity and quality of data that it currently has”. —[Official Report, 3 June 2020; Vol. 676, c. 846.]

Will the Minister provide an answer? Two weeks ago, the Prime Minister was unable to do so.

Fourthly, we were told that whatever happens, the UK will respect the Good Friday agreement. Many Northern Irish businesses, including manufacturing firms, have integrated supply chains across the United Kingdom. Unite and GMB members working at Bombardier in Belfast are reeling from the prospect of more redundancies following the covid-19 crisis. We need to stem the tide of job losses, not exacerbate them. Firms in Northern Ireland need to know the real-world detail of the business environment in which they will be operating, the precise checks and controls that they need to implement, and the operational readiness of the systems that they will be using in just 29 weeks’ time. It is far from reassuring that according to paragraph 28 of the UK Command Paper, the Government have so far committed to

“produce full guidance to business…before the end of the transition period.”

That could be December. That simply is not good enough for British businesses.

Finally, on the same day that the Prime Minister claimed that the impasse can be resolved and a deal achieved in July, the Government signed up to two further negotiating rounds, concluding on 21 August. Is July a serious proposal, or is it one of those over-promises to which we have become accustomed from the Prime Minister, agreed in haste to win a headline only to fall by the wayside when reality bites?

With that in mind, and thinking firmly about what is best for the United Kingdom, Labour wants the Government to succeed in achieving the deal that they promised and to avoid the perils of the alternative. The Government must fulfil their pledges to the British people in order to protect jobs, secure our food and medical supplies, and protect our citizens’ safety and security. We urge both sides to show the flexibility required to achieve a deal in our national interest.

[Michael Gove]

I thank the hon. Lady for her response, her questions and her support for a united effort to secure a good deal in the interests of the United Kingdom and the European Union. May I also once again extend my sympathy to her and others who were close friends of Jo Cox? Her death four years ago was an unimaginable tragedy, and I cannot begin to imagine what it must have been like for those who were so close to Jo.

The hon. Lady asked about an oven-ready deal; of course, that oven-ready deal was cooked before 31 January, which is why we left the European Union. The withdrawal agreement, which we are now faithfully implementing and which includes the Northern Ireland protocol, was a deal that secured support across this House of Commons. We are now taking all the steps necessary to ensure that that deal can be effectively implemented. Of course, we also seek a future trading relationship with the European Union but, if the European Union is incapable of concluding that relationship, we are ready to trade successfully on our own terms. That is why the steps with respect to the border that she mentioned were taken and confirmed last Friday and universally welcomed by business as a pragmatic and flexible way of providing both certainty and the flexibility that is required for business to continue.

The hon. Lady mentioned a variety of sectors that will obviously be affected by our relationship with the European Union. She mentioned agriculture; it is naturally the case that, of course, we want to maintain tariff-free access to European markets for our farmers, but it is also the case, as she knows, that we run a deficit in agri-food goods with the EU, so if there were to be no deal, European producers would be adversely affected to a greater extent than UK producers. But that would be in nobody’s interests.

The hon. Lady mentioned the importance of manufacturing. I agree with her—it is important that we secure a deal that works in manufacturing’s interests—but it is also important that we all recognise that before we left the European Union there was speculation that we would see a flight of manufacturing jobs from the UK to other countries. It is instructive to see the way in which Nissan, to which the hon. Lady referred, has reshored production to the UK, and how Unilever, after thinking about whether or not it should relocate its headquarters to the Netherlands, decided to keep its headquarters in the UK—all, as the BBC might put it, despite Brexit.

The hon. Lady asked about workers’ rights, environmental rights and consumers’ rights. The UK has a proud record in all those areas. Governments both Labour and Conservative, and politicians from Barbara Castle to Margaret Thatcher, have been in the van of ensuring that, whether it is equal pay or the fight against climate change, the UK has led and will continue to lead the world. In any trade or other agreements that we sign, our commitment to the rights of our citizens, to protection for workers and to putting the future of the planet first is absolutely non-negotiable.

The hon. Lady asked about security and the tools and instruments available. We do believe that it is possible to make progress on a suite of arrangements to safeguard the security of British citizens, but one thing that we cannot do is accept the jurisdiction of the European Court of Justice. We voted to be an independent nation and we must honour that decision. Democracy is more important than any other principle.

The hon. Lady mentioned the Good Friday agreement. Of course, the Northern Ireland protocol is there and is being implemented by this Government in order to ensure that the principles of the Good Friday agreement are upheld. One of those is unfettered access for Northern Ireland businesses to the rest of the United Kingdom, and I hope that she and her party will support any legislation that may be required in order to ensure that we have unfettered access for goods across the whole United Kingdom.

The hon. Lady ended by saying that the Prime Minister was showing haste. Indeed, the Prime Minister is determined that we should conclude a deal. It is in the interests of everyone that we have certainty. As long as the Labour party is silent on whether it would seek an extension, uncertainty will still hover over this process.