A New Partnership with the EU — House of Lords, 2017-01-17
Topic: Foreign Trade
James Bridges (Conservative, Centre-right): I thank the noble Baronesses, Lady Hayter and Lady Ludford, for their contributions. I start by addressing the point about no deal being better than a bad deal. I repeat what I said in the Statement and what my right honourable friend the Prime Minister said in her speech. The Government’s objective is to succeed in these negotiations. We are aiming for success but, as any responsible Government would do, we are preparing for a whole range of outcomes, and it is absolutely fair to say that we should be transparent in that. Being transparent all along is what I think this House would wish us to be I think that the noble Baroness said that we would be leaving the customs union and therefore essentially going straight to WTO terms. Again, that is not exactly what the Prime Minister set out this morning—indeed, it is far from that. We are aiming for a comprehensive free trade agreement. Undoubtedly there are aspects of and concepts behind the customs union which, as my right honourable friend spelled out this morning, we do not want to be part of, such as the common external tariff. But there are other aspects of the customs union, such as frictionless trade and, as she and her right honourable friend giving the Statement in the other place mentioned, ensuring that we avoid impediments to trade We are approaching these negotiations unlike how other countries have approached negotiations with the EU. Not only are we a considerable trading power in our own right, but we have spent the past 40 years as a member of the EU. Therefore, unlike other nations that are trying to ensure that trade barriers come down, we want to make sure that trade remains as frictionless and free as possible. That is an extremely good way to start these negotiations, and that is why I do not quite share the pessimism that I feel is coming from some of the questions we have heard today As regards the point on an impact assessment, there is a wide range of possible outcomes to these negotiations and it would be impossible for us to model all of them. Furthermore, as the House has heard me say at this Dispatch Box on many occasions, and as the other place voted for, we must not undermine our negotiating position by giving our European partners information that might enable them to see the weaknesses in our position A considerable amount of thought has gone into and continues to go into the issue of a dispute mechanism. The noble Baroness is absolutely right: there will need to be some form of dispute mechanism. She is quite right to observe that, in other trade deals, there are such mechanisms. We will be thinking about that and it will be a subject for negotiation As regards the envisaged EU response, I know from the conversations that I have been lucky enough to have with our European partners’ ambassadors in London, and from conversations that my colleagues in my department have had with their counterparts, that there is considerable keenness, as there is in this House, for the Government to spell out their position on certain things, such as whether we wish to be a member of the single market, have a transitional arrangement or continue to be part of the common external tariff. We have done that today. I very much hope they will recognise that and note the fact that we are, as the noble Baroness so rightly said, approaching this in the spirit of good will, wanting to create a new partnership that is of mutual benefit to both sides. I very much hope that that will come to pass Turning to the noble Baroness, Lady Ludford, who made a number of remarks, I have to say that I fundamentally disagree with the premise she is starting from. I do not agree that globalisation is an inherently bad thing. I think that competition and free markets are a good thing and that, over the past 10 to 20 years, the forces of globalisation have helped raise prosperity throughout the world. So I dispute that As regards becoming the Singapore of Europe, as I said, I also dispute the suggestion that we should be not transparent with people about the potential outcomes of these negotiations and our potential response to those. It is absolutely right that we should be candid with the British people about this, and that is what we shall do. I am sorry to say that I disagree entirely with the noble Baroness’s remarks that, essentially, we are aligning ourselves with those who wish to see Europe break up. It is absolutely not in our interests to see that happen. The Prime Minister has made that clear, and I will make that clear at any opportunity I have.