European Economic Area: UK Membership

Debate between Stephen Kinnock and Michael Tomlinson

Monday 6th November 2017 Commons Chamber

[Stephen Kinnock]

The hon. Gentleman hits the nail on the head. I would add that EU member states are required to refer rulings to the ECJ, whereas EEA-EFTA states are not required to refer rulings to the EFTA court. This is a vital distinction, because it has significant implications for the functioning of the two markets. The EU single market is predicated on the treaty of the European Union, with its commitment to ever closer union. The EEA, however, is governed by the EEA agreement, article 1 of which states that the aim of the EEA is to:

“promote a continuous and balanced strengthening of trade and economic relations between the Contracting Parties”.

The fundamental differences between the founding mission of the EU and the founding mission of the EEA mean that for the EU the four freedoms are indivisible, whereas for the EEA they are negotiable. This, in turn, means that the EEA membership would allow a post-Brexit Britain to square the circle between market access and sovereignty when it comes to that most thorny of issues, the free movement of labour.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I always enjoy listening to the hon. Gentleman’s arguments and I have the pleasure of serving on the European Scrutiny Committee with him. Is not one difficulty with his argument that, under this model, we would have to follow all the rules—the rules of the single market and, as he says, the rules of freedom of movement—without having a say or an input into how those rules are made? Is there not a risk that that will not fulfil the wish of the British people?

[Stephen Kinnock]

I thank the hon. Gentleman for his intervention, but I am afraid he has misinterpreted how the EEA functions. The EEA joint committee sits with Commission officials, and officials of the European Parliament and the European Council in comitology, which provides the EEA joint committee with the ability to shape EU legislation, regulations and directives. I will come on to this later in my speech, but the idea that the EEA means rule-taker rather than rule-maker is incorrect.

As an EEA member, the UK could unilaterally suspend the free movement of labour by triggering article 112 of the EEA agreement, which allows for an emergency brake on any of the four freedoms on the basis of economic, environmental or societal difficulties. There is legal precedent for this. Upon entering the EEA in 1993, Liechtenstein triggered articles 112 and 113 of the EEA agreement, thus suspending the free movement of labour and ultimately agreeing a protocol that enabled the introduction of a quota-based immigration system.

The manner and form of economic or societal difficulties facing the UK would of course be different, but the fact is that the legal precedent has been set so there is no reason why the UK should not be allowed to follow suit. Having pulled that emergency brake, we would then, as per article 113, enter into deliberations with other contracting parties through the EEA joint committee to negotiate a lasting solution. In the case of Liechtenstein, this took the form of industry-by-industry quotas.