Oral Answers to Questions

Debate between Steve Barclay and Richard Graham

Thursday 6th December 2018 Commons Chamber

[Richard Graham (Gloucester) (Con)]

12. What recent discussions he has had with the Secretary of State for International Trade on potential policy options in the event that a trade agreement between the UK and the EU is not finalised by the end of June 2020.

[The Secretary of State for Exiting the European Union (Stephen Barclay)]

DExEU Ministers and officials hold regular discussions with the Department for International Trade on EU exit and trade matters. We are working at pace to ensure that the necessary arrangements for our future partnership are in place for December 2020.

[Richard Graham]

Being in the customs union with the European Union means that we cannot negotiate our own independent free trade agreements. If negotiating our future trade relationship with the EU required us to extend the transition period by a year, that could be seen as negative, but the reality is that negotiations with most major countries, such as China and the US, will take time to conclude. Does my right hon. Friend therefore agree that extending the transition period by a year would be better for securing independent free trade agreements than being stuck in an indefinite backstop?

[Stephen Barclay]

I know that my hon. Friend has considerable experience, particularly on issues such as China, in which I know he takes a deep interest. The key point is that it will be a sovereign choice for the UK whether it extends the implementation period. He alludes to the fact that significant work is already going on. For example, the economic and financial dialogues the Treasury has with countries such as China, India and Brazil lay the groundwork for much of the trade discussions that colleagues in the Department for International Trade are concluding.