Leaving the EU: No Deal — House of Commons, 2018-12-19
Topic: Foreign Trade
Jeremy John Elton Lefroy (Conservative, Centre-right): It is a great honour to follow the right hon. Member for Derby South (Margaret Beckett) We are living in the most serious of times, and I think that that is very clear to all of us. What we are discussing today is of such great import that there should be a reaching out across the Front Benches, as I have said in this place more than once. It is incumbent on the Government to do that and it is also incumbent on the Opposition to do that I will largely restrict my remarks to why I believe that no deal should not and must not happen—indeed, I was one of those who signed the letter co-signed by my right hon. Friend the Member for Meriden (Dame Caroline Spelman) and the hon. Member for Birmingham, Erdington (Jack Dromey). A no deal would cause such grave disruption to the businesses in my constituency in the west midlands and further afield. Let us just look at what no deal means. No deal means going on World Trade Organisation terms. These have been lauded in some quarters. I disagree. I have been involved in international trade for most of my working life. Yes, the WTO provides the lowest common denominator for world trade. It provides for nothing more than that. Those who think that a country such as the United Kingdom will thrive on World Trade Organisation terms, which no other major country thinks are anything like sufficient, are deluded. Indeed, no other country of our size has World Trade Organisation membership without several other additional agreements, whether it is with China, the United States or wherever. They all have agreements with their neighbouring countries for a start Let us look at what World Trade Organisation means on a day-to-day basis: it means tariffs. We do not have tariffs with the European Union at the moment, but it will mean tariffs. Much more importantly, it will mean the non-tariff barriers that have already been mentioned, whether that is phytosanitary inspections, veterinary inspections and other types of inspections of borders. I, along with colleagues from the Exiting the European Union Committee, have seen what happens at Dover. It is a smooth flow of trucks through the port—one every few seconds. A slight delay, which we have seen for other reasons, causes massive back-ups. This is simply not possible, and that will happen at other ports as well World Trade Organisation terms would also mean that we would have to deal with the separation of the quotas that we have as part of the European Union. This will not be easy. For instance, New Zealand has questions about how its quota of lamb to the European Union will be divided between the UK and the EU27. We will not have the benefit of the 40 free trade agreements that cover about 70 different countries, unless they are rolled over. It is going to be difficult enough to roll all those over if we sign the withdrawal agreement; if we do not, it will be next to impossible and I do not believe that we have the capacity or time to do that. And that is just for goods For services, World Trade Organisation terms would mean a very basic agreement. Whatever has been said about the failure of the European Union to complete the single market in services, it is nevertheless a much better market for services than WTO rules.