Customs and Borders Debate

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Department: HM Treasury
Thursday 26th April 2018

(6 years ago)

Commons Chamber
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Yvette Cooper Portrait Yvette Cooper
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It is significant that the Northern Ireland Affairs Committee concluded last month that there were no technical solutions anywhere in the world “beyond the aspirational” that would remove the need for physical infrastructure at the border.

Tonia Antoniazzi Portrait Tonia Antoniazzi (Gower) (Lab)
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The Northern Ireland shadow team, of which I am a member, paid a visit to Stormont. We met the leaders of all the parties, and they all expressed their concerns about the barrier. There must be no barrier at any price.

Yvette Cooper Portrait Yvette Cooper
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I completely agree; I think that that is immensely important. It brings me back to what I said about our sense of responsibility. It is no good our pretending to be in a parallel universe when all the things that we might want to be true simply are not. We must face up to the world as it is, and to our responsibility and the consequences of any decisions that we make in the House for a process to build peace that has been going on for so many years. We are only the custodians of that process, and we must not be the ones who put it in jeopardy.

Another crucial point is that even if all that technology were possible—even if it were possible to solve all those problems at the border—it would not remove the need for rules of origin checks if we were not party to the common external tariff. It would not remove the bureaucratic burdens that would be imposed on manufacturing businesses every time they changed ingredients or components, because those ingredients and components will be subject to different external tariffs if we are outside a customs union, and the businesses will then have to account for their origins. That is why even new technology, however fabulous and whizzy it becomes in the years ahead, cannot solve the wider problem of what will happen if we have no customs union.

The second argument advanced by those who object to the customs union is that being outside will be worth it, because the benefits of not having a common external tariff and being able to have our own new trade agreements are somehow better than the benefits of being in the customs union. The problem is that the evidence—the Government’s own EU exit analysis, and the findings of the National Institute of Economic and Social Research—shows that the potential benefits of new trade treaties with far-flung countries, even if they could be created quickly, will still be outweighed by the losses resulting from the rules of origin checks and the friction at the border.