European Union: UK Membership

Sean Woodcock Excerpts

Monday 24th March 2025 Westminster Hall

[Sean Woodcock (Banbury) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I thank my hon. Friend the Member for Colne Valley (Paul Davies) for opening the debate on behalf of the Petitions Committee.

Banbury has a proud history as a hub for industry and manufacturing, from the aluminium works, which were crucial to the construction of aircraft during world war two, and which my grandfather later worked at, to the automotive supply chains, green tech start-ups and Formula 1 teams that call my constituency home today. Those companies and many others rely on smooth, efficient trade with the European Union.

The psychodrama of the final eight years of the last Conservative Government culminated in a botched Brexit deal that put up barriers to trade, soured relations with our closest allies and ultimately left our constituents out of pocket, so I welcome the reset in relations between the United Kingdom and the European Union that has taken place since the general election. We have a real opportunity to forge a new, more constructive relationship with our European friends.

Hundreds of constituents have written to me, signed petitions—including this one—and spoken to me on the doorstep about the damage that Brexit has caused. I have also had the privilege of hearing from and meeting business owners across Banbury who once enjoyed seamless access to European markets but now feel buried under the very paperwork and bureaucracy that Brexiteers once promised to eliminate.

Take, for example, Electric Assisted Vehicles Ltd, an exciting Banbury-based company manufacturing electric-assisted bikes. Those bikes represent the future of urban green transport, a sector in which the UK could be leading. However, instead of expanding easily across Europe, as EAV once could, it now faces an avalanche of paperwork. It has told me that what was once a single-page document is now 20 pages. That is a clear and direct demonstration of the previous Government’s failure to deliver a Brexit deal that works for British business.

Consider the BMW plant down the road in Oxford, a cornerstone of the UK automotive industry. When I spoke to workers alongside my right hon. Friend the Member for Oxford East (Anneliese Dodds) a few weeks ago, it became clear that Brexit was a key factor in BMW shifting production away from the UK and towards the EU and China. The reality is that multinational manufacturers now find it cheaper and easier to downsize their workforces in the UK than in European counterparts. That is not a situation we should accept.

Banbury is home to a network of key automotive suppliers, including Magna Exteriors, Faurecia, HBPO and Borg & Beck, all of which rely on just-in-time supply chains in Europe. When delays at borders increase costs, additional import-export paperwork slows down deliveries, and rules of origin requirements limit market access, it is British workers who suffer.

Under the current UK-EU trade and co-operation agreement, goods must comply with certain rules of origin regulations to qualify for tariff-free trade. That is creating new challenges for businesses, particularly manufacturers, that previously enjoyed seamless trade with the European Union. For example, a UK-based bus manufacturer exporting to the EU must ensure that at least 55% of the vehicle’s value is derived from UK or EU components, but many manufacturers rely on parts from outside the UK and the EU, making it harder to meet that requirement. Rejoining the Pan-Euro-Mediterranean convention would ease those constraints, keeping manufacturers in European and global markets. If we rejoined the PEM, components sourced from all 51 PEM countries would count as local content, making it easier for British businesses to qualify for tariff-free trade. That would be particularly beneficial for the automotive, chemical, pharmaceutical and machinery sectors.

Although rejoining the PEM will not solve all the post-Brexit trade issues, it is a practical and immediate step towards restoring smoother trade flows. It would signal to the EU that the UK is serious about improving trade relations while staying outside the customs union and the single market, which were referred to earlier.

[Ben Coleman (Chelsea and Fulham) (Lab)]

I support my hon. Friend’s encouragement for the UK to accede to the pan-Euro-Mediterranean convention. I was at a meeting last week of the UK-EU Parliamentary Partnership Assembly in Brussels, which issued a recommendation to explore options for closer customs co-operation and alignment of regulatory standards—that goes further than the current UK Government position—to facilitate trade and economic growth. That could include, for example, UK accession to the Pan-Euro-Mediterranean convention, so I hope very much that my hon. Friend is pushing at an open door with both the UK and the European Union.

[Sean Woodcock]

I thank my hon. Friend for his contribution. As I said, we have an opportunity to reduce barriers to trade, support manufacturing, attract investment and rebuild a closer relationship with Europe. The Government have rightly set a mission of making the UK the fastest-growing economy in the G7 by the end of this Parliament, and I believe that joining the PEM would be a logical step towards achieving that goal.

--- Later in debate ---

[Clive Jones]

It certainly does. They certainly know how to easily waste £20 million. They showed us that they were very good at doing that.

Shockingly, it is estimated that from 2021 up to the end of 2023, nearly 2 billion additional pieces of paper had to be filled out by British exporters as a result of our leaving the EU. They range from export declarations to transit declarations, origin certificates and other documents with obscure acronyms. It is a Gordian knot of red tape. It is a figure so large that if all 2 billion pieces of paper were put end to end, they could wrap around the circumference of the Earth 14.7 times, or reach the moon and come halfway back again. When the Government said that Brexit would be a stellar success, that was not what I thought they had in mind.

Marks and Spencer recently hit out against the Brexit bureaucracy that plagues our economy. I want to share some of its examples because they perfectly illustrate the day-to-day impact of the current Brexit deal in constraining our economy’s ability to grow. Before Brexit, lorries full of produce going from Scotland to the Republic of Ireland would need just one piece of paper listing what was in the trailer before setting off. Now, its trucks are armed with more than 200 pieces of paper, which take hours to complete and require niche details such as the Latin name for the chicken used in its tikka masalas. About 7,000 different Marks and Spencer products destined for Irish customers require export health certificates, and each certificate requires a vet to sign it off, costing Marks and Spencer more than £1 million a year. Exporting to the EU has become a nightmare, even for bigger companies, because of unnecessary administration and physical checks.

[Sean Woodcock]

Will the hon. Member give way?

[Clive Jones]

I will.