Update on EU Exit Negotiations — House of Lords, 2017-10-17
Topic: Foreign Trade
Dianne Hayter (Labour, Centre-left): I thank the Minister for repeating the Statement, although sadly it adds nothing to what we have already seen in the press. Indeed, it is rather less since we have been able to read what the EU negotiators and their political masters think of how things are going, and it was their side that used the words "impasse" or "deadlock". It is noticeable that the Governments of the 27 EU member states have shown markedly more unity than the 29 people who sit around our Cabinet table. Moreover, while the British side argues, the clock ticks relentlessly on, so it is time to talk turkey for the sake of citizens, business, trade, farmers and consumers. If that means talking money now, so be it. We know that the Government’s reluctance to do so is a fear of their more uncompromising Eurosceptics A financial deal will need to be made, a deal that some will not like no matter how good it is, so why put it off for fear of their wrath at such cost to everyone else? Every industry, as well as agriculture, consumers, patients, doctors, lawyers and investors, says that we must end this uncertainty. Just this morning I met representatives from Rolls-Royce who told me how key it is that we can trade freely with the EU. We might make the best aircraft engines, but they include parts from the EU, use the skills of people from the EU, and sell within the EU when complete, as do 90% of Toyota cars made here. Their reps were telling me this morning that non-tariff barriers, rules of origin certificates and so on are as challenging as tariffs if we leave the customs union Meanwhile, Rolls-Royce and other companies are highly dependent on our participation in the European Aviation Safety Agency, but they are hearing nothing from the Government as to what they want in that regard—as with other vital agencies, such as Euratom and the European Medical Agency. I even read talk of us coming under the US Food and Drug Administration in Maryland—or la-la land There is a host of other non-trade issues where reciprocity is key: the mutual recognition of civil and family judgments, handling insolvency cases, data protection, and long-term insurance contracts. All those issues need early negotiation and preparation by the Government, which those industries concerned simply find that they are not invited to engage with. They can get no answers on those questions and nor can we. For example, the Minister for Consumers in the Commons said last week that while consumers will retain rights on goods bought, "from a trader based in the UK", beyond that, "is a matter for negotiations".—[Official Report, Commons, 10/10/17; col. 51WH.] Nothing was set out about what we wanted from those negotiations. She said only that we are exploring options in maintaining early warnings of dangerous non-food products—shared at the moment via Rapex—as with the pharmacovigilance network on unexpected responses to drugs and our key role in the European Consumer Centre Network. It is not simply that Europe is not ready to talk on these issues, though I understand it is on some of them, but that the Government are not engaging with industries or the consumers concerned There are three key areas on which Parliament, not just the Government, must have the right to decide. One is future trade with the EU, where the Institute of Directors is demanding to know what the Government want from our EU trade deal. Can the Minister indicate whether achieving tariff-free trade is the Government’s objective? The second area is about transitional agreements. The word "implementation" was used, but I think we are really talking about transitional arrangements. Can the Minister confirm that the Government will press to achieve those arrangements on the same terms as now and to ensure that the withdrawal Bill contains approval of those agreements? Finally, does the Minister agree that any walking away from the negotiations—effectively a "no deal"—should be a matter for Parliament and not Ministers alone? Will the Government therefore agree to amend the withdrawal Bill to ensure that any such decision will be taken by Parliament?