EU-UK Partnership: EU’s Mandate

Sammy Wilson Excerpts

Thursday 4th June 2020 Commons Chamber

[Michael Gove]

The right hon Gentleman is right; it is our intention. Indeed, it is a commitment in the political declaration that accompanies the withdrawal agreement that both sides will work towards ensuring that we have a zero-tariff, zero-quota approach. One of the problems we face is that the European Union is placing an unprecedented demand on the United Kingdom, which is that in order to secure that zero-tariff, zero-quota approach, we accept a suite of commitments—the so-called level playing field commitments—that would place obligations on the UK Government and our institutions to follow EU law in a way that no other sovereign nation would and in a way that no other free trade agreement requires. That takes us to the heart of the UK’s approach.

In all these appearances and opportunities in which the House has allowed me, on behalf of the Government, to explain our approach, we have taken a consistent line, and that is in keeping with the political declaration. We want a free trade agreement with the European Union, and the free trade agreement that we seek is built on precedent. There is nothing novel, outrageous or excessive about our requests, and the free trade agreement that we seek is, as I say, one that builds on precedents from Canada, Japan and South Korea and agreements that other sovereign nations have entered into with the EU.

The challenge that we face, however, is that the European Union argues that, because of the size of our market and our geographical proximity, we should be subject to rules of the club that we have left, which they impose on no other sovereign nation. At the same time, the EU insists that in the hugely important area of fisheries, it should continue to have access on terms that are similar, if not identical, to the common fisheries policy, which so many people in this country recognise as having worked against the interests of our coastal communities and of marine conservation.

It is on that basis that the fourth round of negotiations is currently being conducted. David Frost, our negotiator, is negotiating hard today, and I am sure that Michel Barnier will update us with his perspective on these negotiations tomorrow. We will also be laying a written ministerial statement next week and, of course, should the House require any further updates on the progress of the negotiations, I would be delighted to give them.

[Sammy Wilson (East Antrim) (DUP)]

Does the Chancellor of the Duchy of Lancaster also accept that another impediment is Michel Barnier’s insistence that the EU’s draconian interpretation of the provisions of the withdrawal agreement and the Northern Ireland protocol should be implemented? Does he agree that the Government cannot and must not give in to those demands?

[Michael Gove]

I am grateful to the right hon. Gentleman for making that point. The protocol is part of the withdrawal agreement, but it makes it clear that Northern Ireland is part of the UK customs territory. Also, in the Command Paper that we published recently—which was broadly welcomed, albeit with caveats by political parties, businesses and citizens across Northern Ireland—we made it clear that we would not impose additional physical customs infrastructure and that we would do everything we could to ensure that the Good Friday agreement was upheld in its essentials, and that means that the citizens and the businesses of Northern Ireland should continue to enjoy unfettered access to the rest of the United Kingdom’s internal market, its customs territory and its nation overall.

In these negotiations, there will inevitably be commentary, in the form of shots fired from outside and attempts by some who do not have an interest in us reaching an agreement, to suggest that an agreement is impossible, and certainly impossible within the time allowed. However, there is ample time for us to reach an agreement. The detailed work that has been undertaken by both sides should not be set aside or diminished. All that is required is political will, imagination and flexibility, and I believe that with the advent of the German presidency of the European Union on 1 July, we will see the leadership required to guarantee that we secure the agreement that we need.

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[Sammy Wilson (East Antrim) (DUP)]

May I say at the very start that we support the Government in getting this deal done by the end of this year, and in honouring the commitment that has been made, including in manifestos to the people of the UK?

I could rehearse the things that we in Northern Ireland want to see undone in this withdrawal agreement. Of course, it is most damaging to the Northern Ireland economy and Northern Ireland businesses—it puts burdens on them and puts additional administrative checks on them—and, indeed, it leaves Northern Ireland open to anti-competitive dumping by EU countries. However, I want to widen this today. Many people see the Northern Ireland protocol as something that simply affects Northern Ireland: “It was unfortunate; we had to do it; we had to get a deal through; we don’t like parts of it, but given the special circumstances, it was the best we could do.” The point of the Northern Ireland protocol is this: it is the back door through which the EU is going to continue to undermine the sovereignty of this Parliament.

The Minister congratulated the hon. Member for Stone (Sir William Cash) on the fact that he has worked tirelessly to restore the sovereignty of this House. This withdrawal agreement and the protocol undermine and continue to undermine the sovereignty of this House. It does that through article 10 of the Northern Ireland protocol, which insists that the state aid rules will apply not to Northern Ireland, as paragraph 40 of the Government’s Command Paper suggests, but to the United Kingdom as a whole. Any state aid that the Government of the United Kingdom give to any firm that trades in Northern Ireland, as this therefore has an effect on possible trade by those firms through Northern Ireland into the rest of the EU, will be subject to EU laws, and the final adjudication on that, according to article 12 of the Northern Ireland protocol, will be by the European Court of Justice.

Let me give an example about any support that the Government give. Nissan has been mentioned today. If the Government decide they are going to help Nissan to develop battery cars, as Nissan sells cars in Northern Ireland, other car makers in Europe could challenge that, and the final adjudication on it will be not in the British courts, but in the European Court of Justice. That could extend to almost any activity, and for that reason it is important, if the Government are to live up to the commitment in the third part of their motion, that they address the withdrawal agreement. In the Command Paper, they see the withdrawal agreement as temporary anyway. They see it going along with a future trade arrangement.

[Sir William Cash]

Did my right hon. Friend notice the remarks that I made at the end of my speech with respect to the question of the Northern Ireland protocol?

[Sammy Wilson]

I did, and I appreciated the point that was made. It is important that this is revisited, and not just for the good of the economy and businesses in Northern Ireland. It is essential that it is addressed for the sovereignty of this Parliament and for the freedom of this Government to use fiscal policy, monetary policy and any kind of state support policy for the whole of the United Kingdom.

There is hardly a business in GB that does not trade with Northern Ireland, so either they do not invest in or do not trade in Northern Ireland, or else they will find that they are subject to EU laws, and any Government policy addressed to them would be perceived as giving an advantage. By the way, that advantage only has to be theoretical, according to EU law. The effect does not have to be real, it does not have to affect sales—in theory, it does have to affect sales—and it does not have to be substantial; it can be a very small proportion of help or a very small proportion of the market. This is a huge foot in the door.

I say to the Government that, during the scrutiny of and in the reports on this, we want to see what has been done. The withdrawal agreement must not be seen as set in stone if the Government, in their own Command Paper, see it as temporary anyway, albeit with the consent of the Northern Ireland Assembly. They also have to address the issue of how the withdrawal agreement impacts on sovereignty and on the ability of this Government to conduct their own economic policy in the United Kingdom.

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[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

It is a pleasure to follow the hon. Member for Gloucester (Richard Graham). We have been good friends for a long time, and I appreciate his comments.

The negotiations on our future relationship are crucial for Northern Ireland. As someone who has been involved in the political process for many years, I want the peace process in Northern Ireland to be sustained, but I am concerned that the Northern Ireland protocol fundamentally undermines Northern Ireland’s status as part of the United Kingdom. People talk about protecting and preserving the Good Friday/Belfast agreement, but at the heart of that agreement was an acceptance of the principle of consent, and that Northern Ireland’s status would remain unchanged, save for the wishes of the people of Northern Ireland determining otherwise. The Northern Ireland protocol undermines that key, fundamental element of the Good Friday agreement. Indeed, we voted against the withdrawal agreement because it had the potential to create a customs border within the United Kingdom, which would be unacceptable. We will continue to work with the Government to mitigate that, to ensure unfettered access to the UK market, as promised by the Government, and to diminish and reduce any friction to the absolute minimum.

We continue to have concerns about the Northern Ireland protocol and the potential for tariffs to be applied on trade between Northern Ireland and Great Britain, as well as about the paperwork and added burden for businesses as a result of entry and import summary declarations. We have concerns about regulatory checks on goods travelling between Great Britain and Northern Ireland, including agri-food and manufacturing. Our fishermen in Northern Ireland may have to make declarations, including customs declarations, to the European Union. On agricultural support, I echo the comments of the right hon. Member for Orkney and Shetland (Mr Carmichael) about the risk to our agricultural industry from cheap food imports. That is why we supported amendments to the Agriculture Bill. We will have to apply EU rules on VAT in Northern Ireland, and there is also the issue of state aid—I will not repeat the comments made by my right hon. Friend the Member for East Antrim (Sammy Wilson) about that issue, which has implications for the UK as a whole.

We need the Government to ensure that the aims set out in the UK Command Paper remain a foundational requirement, and that those commitments are unmoveable and the minimum requirements we will have. Indeed, we want to go further and see greater flexibility demonstrated by Brussels regarding how the Northern Ireland protocol will be implemented. The UK Command Paper, for example, sees no requirement for export or exit summary declarations for trade between Northern Ireland and Great Britain. We agree with that, but we need to ensure that the EU does not hold a veto on these customs formalities.

[Sammy Wilson]

The Government give those guarantees, but does my right hon. Friend accept that at the same time, HMRC officials are going around briefing firms in Northern Ireland as to the likely costs of those declarations?

[Sir Jeffrey M. Donaldson]

That is why I think it is important that the Government hold to the commitments they made in the Command Paper and, indeed, go further. Businesses need clarity on this, because we have officials in Northern Ireland saying something that appears to contradict what is in the Government’s Command Paper. We need that clarity.

The Government must also honour the funding pledges that have been made in terms of support for Northern Ireland in how the protocol is implemented. I hope that the Minister and the Government will give us more regular updates on what is happening with the Northern Ireland protocol, and in particular the work of the EU-UK Joint Committee, because that is crucial to Northern Ireland.

There is a lot of uncertainty at the moment about the impact of the coronavirus on our economy. We do not want any more uncertainty, and that is why my party is against extending the transition period. But we need clarity and certainty around how the protocol for Northern Ireland will be implemented, and we want the Government to take a minimalist approach to that protocol.