Customs and Borders

Debate between Yvette Cooper and Geraint Davies

Thursday 26th April 2018 Commons Chamber

[Yvette Cooper]

That is right. If a manufacturer’s components come in from China but then, as part of the manufacturing process, the product moves to France for further manufacturing, and the components come back again and are then sent somewhere else, at every stage those calculations would have to be done. At the moment, because we all have the common external tariff, when the components come in from China or elsewhere in the world, those rules of origin checks do not need to be done after the manufacturing process and before it is sold on. It does not matter where the widgets come from or where the gadgets go; we have the common external tariff, which makes that process much, much smoother than it would otherwise be.

[Geraint Davies (Swansea West) (Lab/Co-op)]

My right hon. Friend will be aware that third countries represent some 12% of our exports via the EU. Already, South Korea, Australia and Chile have said that they want to renegotiate the trade agreements, including tariffs, if we are not in the customs union, and many more may. Is she fearful that we will end up with higher tariffs, worse terms of trade and fewer jobs?

[Yvette Cooper]

That is right. I think there is common agreement that we want no tariffs with the EU as part of this—I think that is shared across the House—but we also want to ensure that we do not end up with worse terms of trade with the rest of the world, rather than having the promises we have had that somehow things will magically be better.