New Partnership with the EU

Sarah Olney Excerpts

Tuesday 17th January 2017 Commons Chamber

[Mr Davis]

My hon. Friend goes to the heart of the strategy. We want not just a 0% tariff, but—let us remember that we have an 80% services economy—non-tariff barriers. In many ways, non-tariff barriers are as important as the 0% tariff, and perhaps a bit harder to negotiate.

[Sarah Olney (Richmond Park) (LD)]

Once the UK has left the EU, there will be a £9 billion hole in EU finances. Given reduced resources, why do the Government believe that the EU will prioritise negotiating a trade deal with the UK over more lucrative markets, such as the US or China?

[Mr Davis]

I am afraid that the hon. Lady is wrong about the more lucrative markets. Once we are outside the European Union, we will be the largest market for the European Union, and it does not want to lose what it already has, which is the massive trade deficit—in their direction, as it were—that is very important for many millions of jobs on the continent.