Brexit and Foreign Affairs

Tom Brake Excerpts

Monday 26th June 2017 Commons Chamber

[Mr Davis]

Security considerations pretty much always predominate when it comes to the control of immigration and control of migration generally, and there will be no difference in this case. We obviously treat the security of all our citizens, and all our allies’ citizens, as paramount. There should be, for instance, a broad security agreement covering all aspects of our current collaboration, including defence, foreign policy, justice, home affairs, law enforcement and counter-terrorism, which should be supported by continued co-operation and open access in highly regulated areas such as aviation, financial services, data, transport and nuclear.

We recognise that such a wide-ranging partnership will require fair and uniform implementation. It must also be long-lasting. That is why we must ensure that mechanisms exist to manage the evolution of our regulatory frameworks to maintain a fair and open trading environment and minimise non-tariff barriers.

[Tom Brake (Carshalton and Wallington) (LD)]

rose—

[Stephen Doughty]

Will the Secretary of State give way, on that point?

--- Later in debate ---

[Mr Davis]

I congratulate my hon. Friend on what I think is her maiden intervention. It was delivered brilliantly, as I would expect, and she is exactly right. We want a deep, special, bespoke arrangement to maximise our trade opportunities.

As I was saying, the 90% growth outside the European Union means that our relative share of trade in the EU has gone down. In services, for example, we are now 60% outside the EU and 40% inside it, and all of this is without preferential trade agreements for much of our trade. Just so that the House understands, the best academic data that I could find show that creating a new trade agreement increases the amount of trade by about 28%. If the House wants an individual parable, in the first seven years of its operation, the North American Free Trade Agreement increased trade by 40%. These are really significant items of policy that we can exercise.

[Tom Brake]

rose—

[Mr Davis]

I see the right hon. Gentleman looking at me, so I shall give way to him.

[Tom Brake]

On the question of academic research, can the Secretary of State confirm what the most recent research says about the cost to the British economy of coming out of the single market and the customs union?

[Mr Davis]

That research would depend on what the actual deal was. It is madness to make an estimate without knowing what the deal is. If the deal involves a comprehensive free trade area with no tariffs and no non-tariff barriers, there will be zero effect. It is rather daft to try to cite some non-existent academic issue.