EU-UK Trade and Cooperation Agreement — House of Lords, 2021-01-08
Topic: Mixed Topics
Nicholas True (Conservative, Centre-right): My Lords, in opening in this difficult week, I affirm our unqualified and unending respect for this Parliament and its institutions, and for democracy and democratic decisions I am grateful to be opening this debate. No fewer than 125 noble Lords took part in last Thursday’s debate for the Second Reading of what was then the European Union (Future Relationship) Bill, but the time for contributions and reflections was necessarily compressed—as it is again today, I understand. With much still to pore over and deliberate, I welcome the opportunity—as, I know, will my ministerial colleagues—that today’s occasion affords to take your Lordships’ wisdom further. I particularly look forward to hearing the maiden speech of my noble friend Lord Wharton of Yarm Since last we were here together, we have welcomed in a new year and a new chapter for the United Kingdom. We have kept faith with the British people who voted in 2016 to leave the European Union in the largest democratic exercise in this nation’s history: a vote for freedom, for parliamentary sovereignty and for change I am grateful to your Lordships for enabling the Bill’s passage in such unusual circumstances. Its enactment into law enabled the trade and co-operation agreement to be provisionally implemented and our future relationship with the European Union to begin. As I said in this House at Second Reading: "The nature of any compromise is that not everyone gets what they wish for."—[Official Report, 30/12/20; col. 1921.] Overall, however, this deal is good for both the United Kingdom and Europe. A no-quota, no-tariff deal is good news for families and businesses in every part of the United Kingdom This Canada-style agreement, worth more than £650 billion, is the first free trade agreement based on zero tariffs and zero quotas that the EU has ever reached with an independent country. As of 1 January, the United Kingdom now enjoys full political and economic independence. The pledges made to the British public during the 2016 referendum and in the general election last year have been delivered. From now on, our laws will be determined by our elected politicians, and MPs will be accountable to the voters who send them to Parliament to legislate on their behalf The Canada-style agreement takes back control of our laws, borders, trade, money and waters. It ends any role for the European Court and protects the Belfast/Good Friday agreement. It provides certainty for business, from service providers to our world-leading manufacturers—including our car industry—thus safe-guarding highly skilled jobs and investment across our country We have protected the integrity of our internal market and Northern Ireland’s place within it thanks to the agreement on implementing the protocol that exists as part of the withdrawal agreement. That was struck with the European Union earlier in December by my right honourable friend the Chancellor of the Duchy of Lancaster. To support traders in preparing for the end of the grace period, the UK Government will work with supermarkets, retailers and their suppliers to move to new end-to-end digital systems that will enable goods to be moved in accordance with the protocol in the most streamlined way possible. This will be backed by a major injection of new UK Government funding as part of the broader support package we have announced My right honourable friend the Chancellor of the Duchy has also been working hard to ensure that our borders and the many businesses involved in trading with the European Union were prepared for the end of the transition period on 31 December. To that end, the Government have worked closely with hauliers, carriers and relevant operators on the requirements of a number of systems. All the necessary changes, including changes to IT systems, were carried out successfully in the run-up to 31 December In addition, we have put in place measures of support to mitigate potential teething problems following our exit from the EU customs union and the single market and will continue to work with stakeholders to work through any disruption that arises. But noble Lords should recognise that, even though we have left behind the EU customs union, the EU single market and, indeed, the EU’s entire legal order, we are not walking away from Europe—quite the reverse. This agreement—this new chapter for global Britain—is also the beginning of our new partnership with our closest neighbours We have already seen that friendly co-operation at work. On New Year’s Eve, the Foreign Secretary announced that, working side by side with the Chief Minister of Gibraltar and following intensive discussions with the Spanish Government, we reached agreement on a political framework to form the basis of a separate treaty between the UK and the European Union regarding Gibraltar. We have sent this to the European Commission to initiate negotiations on the formal treaty. All sides are committed to ensuring border fluidity, which is clearly in the best interests of the people living on both sides. We remain steadfast in our support for Gibraltar and its sovereignty. We have a warm and strong relationship with Spain, which we look forward to building on in 2021 On financial services, this agreement provides a stable foundation for us to develop our future relationship with the EU and facilitate new arrangements to promote international financial services trade. Alongside the agreement we have agreed a joint declaration on regulatory co-operation in the area of financial services. This sets out the commitment to structured regulatory co-operation on financial services, with the aim of establishing a durable and stable relationship. The parties will now discuss how to move forward with equivalence determinations between the European Union and the UK and will codify this in a memorandum of understanding on regulatory co-operation by the end of March On the creative industries, and musicians in particular, I heard the remarks made by many noble Lords in last week’s debate. The Government recognise the importance of the UK’s thriving cultural industries. We recognise that there will be some additional processes for those working in the creative industries. However, our agreement with the EU contains transparency and procedural facilitation measures that will help ensure that visa processes are as prompt and smooth as possible During our negotiations with the EU, the UK proposed measures that would have allowed musicians to travel and perform in the UK and the EU more easily, without needing work permits. Specifically, we proposed including the work done by musicians, artists and entertainers, and their accompanying staff, in the list of permitted activities for short-term visitors. In practice, this would have delivered an outcome closer to the UK’s approach to incoming musicians, artists and entertainers, but these proposals were, sadly, rejected by the EU We have always been clear that the safety and security of our citizens is the Government’s top priority. This agreement delivers a comprehensive package of capabilities that will ensure that we can work with counterparts across Europe to tackle serious crime and terrorism, protecting the public and bringing criminals to justice. We have agreed streamlined extradition arrangements based on the EU’s surrender agreement with Norway and Iceland, but with stronger safeguards. The deal supports effective operational co-operation with Europol and Eurojust. It also enables the fast and effective exchange of national DNA, fingerprint and vehicle registration data via the Prüm system to aid law enforcement agencies investigating crime and terrorism The Government are already taking advantage of the opportunities available to us as an independent, sovereign nation, and we will continue to do so. As of 1 January, we abolished the tampon tax, honouring a government commitment. This was made possible only by the end of the transition period and the freedom from EU law mandating VAT on sanitary products Last week my noble friend the Leader of the House set out the fundamentals of the trade and co-operation agreement. I have focused on some of them today and given the House an update. We believe that the agreement will help unlock investment and protect high-value jobs right across the United Kingdom, from financial services through to car manufacturing. The UK can now regulate in a way that suits the UK economy and UK businesses, doing things in a more innovative and effective way without being bound by EU rules. We will now take full advantage of the remarkable opportunities available to us as an independent trading nation, striking trade deals with other partners around the world. I look forward to hearing fruitful and positive ideas from your Lordships in the course of this debate.