Oral Answers to Questions

Stephen Timms Excerpts

Thursday 3rd May 2018 Commons Chamber

[Mr Davis]

Let me make a serious point here. The issue of leaving the customs union plays directly to the issue of how we manage our future export and trade arrangements. Almost 60% of our exports are now going to the rest of the world. That is not surprising because both the International Monetary Fund and the European Commission itself have said that the vast majority of growth in world trade will come from outside the European Union. It is our explicit aim to make the most of that, and that means we have to leave the customs union.

[Stephen Timms (East Ham) (Lab)]

Will the Secretary of State set out for the House the characteristics of the customs partnership that he is discussing with his right hon. Friends, and given that according to reports that is the Prime Minister’s preferred way forward, what are the reasons for holding back on it?

[Mr Davis]

There are two models. The streamline model essentially uses conventional techniques used around the rest of the world, including electronic pre-notification, the use of authorised economic operators and a whole series of other technical mechanisms. The alternative proposal—the new customs partnership—is a brand-new idea; it has never been tested anywhere in the world and involves, essentially, charging the common external tariff when goods enter the country and then rebating that. Both approaches have merits and virtues, and both have some drawbacks, and that is why we are taking our time over this discussion.

--- Later in debate ---

[Mr Davis]

No, it is the other way around: a number of countries have made it very plain that if we are still in the customs union, they will not do a trade deal with us.

[Stephen Timms (East Ham) (Lab)]

The European Union set out a very clear negotiating position at the beginning of this exercise. The Government are still being undermined by their inability to make up their mind, and the Secretary of State has told us that it is going to take a bit longer to decide about customs. The whole negotiation is supposed to be concluded by October. How many weeks longer will it be before our Government have a clear position on customs?

[Mr Davis]

The clarity of the position of not being a member of the customs union is absolute, and has been since the beginning, unlike the right hon. Gentleman’s party, which has had a number of different positions on this matter. Frankly, it is incredibly important that we get this right—not just for trade, which is massively important, but for the extremely sensitive issue of maintaining the peace process in Northern Ireland—and I do not undertake to put an artificial deadline on something so important.