(6 years, 2 months ago)
Commons ChamberAfter the UK leaves the EU on 29 March 2019 the implementation period will provide a bridge to our future relationship, ensuring that citizens and businesses only have to plan for one set of changes. During the implementation period the UK will no longer be a member state of the EU, nor will it have MEPs at the European Parliament or a judge at the European Court of Justice. We will have the freedom to negotiate, sign and ratify new trade deals with third countries, although they will not come into force until the end of the implementation period.
I thank my hon. Friend for that answer, but clearly the position should be that on day zero we are a full member of the EU and by the end of the transition period we have no connection other than the future arrangements that we have. It seems to me that instead of a curve as we reduce the transition period, all we have is a postponing of the cliff edge and a delayed departure. Will my hon. Friend comment?
I take note of my hon. Friend’s comments. The aim of the implementation period is to provide certainty for businesses and individuals with access to each other’s markets on terms similar to those today. There will be a number of changes to reflect the UK’s new status as a third country—those I mentioned before—but crucially we have got new opportunities to start taking steps to enjoy our new freedoms, and that time should be used effectively.
(6 years, 9 months ago)
Commons ChamberIf the UK were to remain in the customs union, we would be unable to implement our own trade deals or set our own tariffs. The EU would be able to offer other countries access to our market, but we would not necessarily get access to other countries’ markets in return. This would not give us control over our trade policy and it would not respect the referendum result. We have a great chance for the first time in decades to develop a new trade policy by leaving the EU customs union.
It has been the clear commitment of this Government that during the implementation period we will be able to take concrete steps forward in negotiating and signing new free trade agreements with countries outside the EU, although of course they would not come into force until after the end of the implementation period. My hon. Friend is right that leaving the customs union and forging a new trade policy is a chance to open up to British businesses new markets that they have not previously had access to. That will help consumers, increase investment and only lead to prosperity.
I thank my hon. Friend for her answers. India currently enjoys a growth rate of 7.5% and is on course to be the fifth biggest economy in the world. Given our cultural links and shared history with our friends in India, does my right hon. Friend—my hon. Friend; I am getting ahead of myself—agree that we have an opportunity to forge a trade deal with India, which will be excellent news for the UK and India?
My hon. Friend is absolutely right. India represents a great opportunity in trade for Britain and British consumers and for our Indian counterparts. It is no coincidence that the Prime Minister made a point of visiting India early on in her premiership. The Department for International Trade has recently completed a trade audit with India to look at the particular barriers, and the joint economic and trade committee has decided to look at four sectors—food, life sciences, IT and services—to see where opportunities can be explored.
(6 years, 11 months ago)
Commons ChamberRemaining in the customs union would prevent the UK from striking new free trade deals and setting new tariffs on goods from countries outside the EU. By leaving the customs union and building a new customs arrangement with the EU, we will be able to forge new trade arrangements with our partners around the world while ensuring that trade in goods between the UK and the EU is as frictionless as possible.
I thank my hon. Friend and the Mayor of Tees Valley for welcoming the Secretary of State and me to Teesport last Friday. My hon. Friend has been an indefatigable voice for his constituents since his election to Parliament last year. It was a pleasure to meet some of the 100 business representatives who were present when the Secretary of State made his speech last Friday. Teesport is an opportunity for global Britain, and a gateway to the world—an example of our forward-thinking, independent trade policy. When we leave the EU customs union, we will have the opportunity to create our own trading policy to benefit Teesport and other areas. I sincerely hope that the free port proposal on the table will be one of the options explored.
As my hon. Friend will know well, in Harrow, we have a thriving Indian diaspora, whose members are desperate to encourage trade between the UK and India. Will she ensure that, during the negotiations, they will not be held back from improving trade between India and the UK by artificial trade barriers between those countries?
I pay tribute to my hon. Friend for his lifelong advocacy for the British Asian community, not least in the 1990s when he encouraged my mother to stand as a local councillor—you could say, Mr Speaker, that my hon. Friend is to blame for my being here today.
Leaving the EU offers us the opportunity to forge a new role for ourselves in the world. The Prime Minister’s first bilateral visit outside Europe was to India, which is very telling. It was encouraging that the Indian Finance Minister visited the UK for the year of culture launch in February last year. I am optimistic about the opportunities that leaving the customs union and the EU presents for UK-India relations.