UK-EU Negotiations — House of Lords, 2020-06-18
Topic: Foreign Trade
Dianne Hayter (Labour, Centre-left): My Lords, we should welcome this rare ministerial Statement —indeed, the first since negotiations began—but while I am delighted, of course, to see the Minister, I am surprised that following the PM’s first direct talks with EU leaders since we left the EU, he did not report to the Commons on these, instead choosing to announce the merger of two Whitehall departments The Statement before us rehearses old arguments while being shamefully lacking in detail, with more on process than on content. The Statement quotes the WTO director-general as saying that a deal can be reached in a timely way "if the political will is there" It is a shame that it does not give the full quote, in which the director-general suggests that a no-deal Brexit risks extra trouble for the UK during a recession that could be as deep as the great depression. What Roberto Azevêdo actually said was: "In these circumstances, the less disruption the better, the less turbulence the better. The less turbulence is the closest to where you were before … if you can maintain the degree of integration and relationship that you had before Brexit, it is a less traumatic situation, of course, than if you have to go to WTO terms", which would require adjustments that "can be painful". He said that "in my view the less changes the better." Can the Minister confirm whether Mr Gove had actually read the whole quote before selecting a small part to repeat? Can he also confirm, for all the bluster about not accepting any ECJ role, that trading on WTO terms means answering to its appellate body Our concern is with what deal will emerge from the talks. We want the Government to achieve their manifesto promise: no tariffs, fees, charges or quantitative restrictions, across all sectors. Can the Minister indicate whether that is still the aim and whether he judges it to be achievable? Even a free trade agreement means that we will move from a highly integrated relationship with the EU to one in which trading becomes significantly more difficult. More worrying is the Government’s assertion that they would be content with an Australia-type deal, completely ignoring the fact that Australia does not have a deal with Brussels, so that must be code for no deal Tony Barber suggests in the FT that Ministers are trying to disguise the seriousness of no deal by playing on some positive image of Australia as a prosperous, easy-going country, while an FT editorial opines that even "a bad … trade deal is better than no deal" —although any deal struck before December will be so modest as to fall short of the comprehensive accord for which the Government had originally aimed Some things are urgent whatever is agreed, such as in manufacturing or food, where the trade associations call for special rules to maximise commerce between the UK and the EU. Similarly, mutual recognition of professional qualifications and rules of origin needs sorting urgently It is no good relying on advertising. We have just learned of a £4.5 million "shock and awe" advertising campaign to spur businesses to prepare for the end of the transition. Businesses cannot prepare for the unknown. An advertising blitz without substance is yet more money down the drain—perhaps even worse than on the side of a plane. Until they know what tariffs, rules of origin declarations, certificates and checks are needed, how the new borders will work or even where they will be, businesses simply cannot prepare. The reality is that a hard border for physical goods, involving customs duties and checks, probably cannot be introduced by the end of December—hence the six-month leeway the Government have announced, but without any sense of clarity Nowhere is this uncertainty more harmful than over Northern Ireland. Can the Minister tell the House what talks are taking place with Northern Ireland businesses and others trading across the Irish Sea Finally, the Department for International Trade established a Strategic Trade Advisory Group with trade unions, consumer bodies and trade organisations for other trade negotiations. Even at this late stage, could the Government involve these groups now as we enter the new, intense round of EU negotiations?