Future Relationship Between the UK and the EU

Robin Walker Excerpts

Wednesday 18th July 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It is a pleasure to follow the hon. Member for Sheffield Central (Paul Blomfield). He talked about what people had been saying two years ago; of course, the leader of his own party was saying two years ago that we should just trigger article 50 and damn the consequences, and we should not worry about planning and preparing.

The White Paper sets out the right Brexit deal—which will deliver on the result of the referendum, and take back control over our money, laws and borders—and makes detailed proposals for a principled and pragmatic Brexit. I thank Members on both sides of the House for their contributions today, and for the many congratulations to my new Secretary of State, to which I add my own. I pay tribute to my hon. Friend the Member for Wycombe (Mr Baker). He will not be surprised that I disagree with much of his analysis, but I recognise his dedication and his passion for this subject. I thank him for his work in our Department, and for his constant courtesy to all our officials.

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell)—who notified me that, unfortunately, he would have to leave early—spoke about deep divisions on the referendum, but also about the need for people of good will to work together and come together to deliver a successful outcome. I have always believed in that, and it is exactly what we must do in relation to the constructive proposals in the White Paper.

I listened carefully to the right hon. and learned Member for Holborn and St Pancras (Keir Starmer). Both he and the hon. Member for Pontypridd (Owen Smith) included colourful political commentaries in their speeches, but I think that, coming from a party that has experienced 103 Front-Bench resignations, those should be taken with a pinch of salt. He actually had very little to say about the topic of this debate. What he said about the White Paper was based on taking snippets out of context, which I do not think is a helpful or constructive way to debate.

We talked about the proposal for a free trade area in goods. This would be enabled by a common rulebook for goods, including agri-food; participation in EU agencies that provide authorisation for goods in highly regulated sectors; and the phased introduction of a new facilitated customs arrangement. The arrangement would remove the need for customs checks and controls between the UK and the EU as if they were a combined customs territory, enabling the UK to control its own tariffs to trade with the rest of the world and ensure that businesses pay the right tariff or no tariff. Put simply, it means neither the UK nor the EU imposing tariff barriers on one another that do not exist today.

The hon. Member for Birmingham, Northfield (Richard Burden) spoke passionately about the automotive sector. I believe this is an approach that many in the automotive sector, including those I met over lunch today from Bosch, actually welcome and support. They have said that they would want to get a good hearing in EU member states. In combination with no tariffs on any goods moving between the UK and the EU, these arrangements will avoid new friction at the border and protect integrated supply chains that span both territories. We have heard from a wide range of international and multinational businesses that they would support that approach, but, crucially, as my right hon. Friend the Member for East Devon (Sir Hugo Swire) said, it is one that would deliver for many UK small and medium-sized enterprises that are part of the supply chains. We should never forget the importance of those SMEs.

We heard concerns from Government Members about the common rulebook and parliamentary sovereignty. The UK has played a crucial role in shaping the rules over the past 40 years. They do not change very regularly. They are relatively stable and are supported by a large share of our manufacturing, agricultural and farming businesses.

[Sir William Cash]

Will the Minister give way?

[Mr Walker]

I cannot. I am afraid I do not have the time to give way.

High standards in food and product safety are something all our constituents value. As we saw around debates on the TTIP negotiations, our constituents are unlikely to want any trade deal or arrangement that lowers standards. As my hon. Friend the Member for Basildon and Billericay (Mr Baron) pointed out, both the Government and Opposition parties were elected on a promise that we would be able to strike international trade deals. That is a very important point. Our proposals, unlike those from the Opposition, will allow the UK to negotiate new international trade agreements in line with our priorities and interests, including on goods, services and investment. This could include arrangements with the United States, Australia and New Zealand. The UK will explore accession to the comprehensive and progressive agreement on the Trans-Pacific Partnership, consistent with our future relationship with the EU and domestic priorities. In that context, my right hon. Friend the Trade Secretary recently announced the first public consultations on our future trade agreement negotiations with global partners, which we were not able to do in the TTIP context because that was a negotiation conducted on our behalf by the European Union. I sat on the Business, Innovation and Skills Committee with the hon. Member for Sheffield Central when we scrutinised those proposals at one remove.

I have talked a little about goods. I want to address the important point on services raised by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill). We want a comprehensive but different deal on services and digital, which allows us to exercise greater regulatory freedom in an area where the UK is a world leader. This will not involve adopting a common rulebook for services, as proposed for goods. Instead, we are seeking an ambitious deal for services, which will, among other things, minimise new trade barriers to service provision, allow UK firms to establish in the EU and cover mutual recognition of professional qualifications. On financial services, we are proposing a new economic and regulatory partnership in financial services. That makes sense because, unlike goods, services are not affected by frictions at the border. They are not subject to tariffs or customs. Unlike the vast majority of manufactured goods and agri-food products, most services are not subject to specific standards and regulatory frameworks. The UK is a world leader in services and in the regulation of services. I suspect we will continue to be so.

The Government’s proposals deliver a balance—the right hon. Member for Leeds Central (Hilary Benn) called for a balance—that respects the result of the referendum and the decision of the UK public to take back control of the UK’s laws, borders and money, while supporting growth and maintaining security co-operation. Importantly, they safeguard the constitutional and economic integrity of the UK while reclaiming the UK’s sovereignty. They protect our economic interests, supporting supply chains and jobs all over the UK, and delivering global opportunities for trade.

The UK will leave the European Union in March. The proposals in the White Paper mean that as we leave we will be a close friend, ally and partner of the EU and a major market for it. Our economy will continue to be strong.

Question put and agreed to.

Resolved,

That this House has considered the future relationship between the United Kingdom and the European Union.