North Swindon MP Justin Tomlinson has welcomed the Prime Minister’s speech setting out the Government’s position on the next phase of the Brexit negotiations.
In her speech, the Prime Minister set out the Government’s ambitious and serious vision for the future economic partnership the UK is seeking with the EU. There have been many different voices and views in this debate and Ministers have listened carefully to them all.
The UK is seeking an agreement that goes beyond any existing Free Trade Agreement – covering more sectors and cooperating more deeply.
The Prime Minister set out five tests that will guide the negotiations with the EU to fulfil the pledge she made as she stood on Downing Street and addressed the nation for the first time as Prime Minister.
The UK’s future partnership with the EU must:
- Respect the result of the referendum;
- Be an enduring agreement;
- Protect people’s jobs and security;
- Deliver an outcome consistent with the kind of country the UK wants to be; and
- Strengthen the Union of nations and bring our country back together.
In the speech Theresa May also set out why the existing models for economic partnership either do not deliver the ambition the UK needs, or impose unsustainable constraints on its democracy.
Staying in the Single Market would mean having to implement new EU legislation automatically and in its entirety, and would also mean continued free movement.
Similarly, a Canada-style deal or a World Trade Organisation terms deal would mean a significant reduction in our access to each other’s markets compared to that which the UK currently enjoys. This would also mean customs and regulatory checks at the border that would damage the integrated supply chains that the UK industries depend on and be inconsistent with the commitments that both the UK and the EU have made in respect of Northern Ireland.
The Prime Minister also addressed the issue of the Northern Ireland border post-Brexit. Successive British governments have worked tirelessly – together with all the parties in Northern Ireland and with the Irish Government – to bring about the historic achievement of peace. The Government has been clear that there will be no going back to a hard borders of the past on the island of Ireland. The Prime Minister also ruled out any physical infrastructure at the border or any related checks and controls.
To realise the UK’s level of ambition there are five foundations that must underpin its trading relationship:
- Reciprocal binding commitments to ensure fair and open competition;
- A completely independent arbitration mechanism so disagreements about the purpose or scope of the agreement can be resolved fairly and promptly;
- Ongoing dialogue with the EU, in particular to ensure regulators continue to work together;
- An arrangement for data protection that goes beyond an adequacy agreement; and
- Maintaining the links between people because, while free movement will end, and the UK will control the numbers coming into the country, UK and EU citizens will still want to work and study in each other’s countries.
Like any trade agreement, it will then need to be tailored to the needs of both the UK and EU economies. This follows the approach the EU has taken to trade agreements in the past, and the approach it is taking with the UK. If that is cherry-picking then every trade agreement is cherry-picking.
Justin Tomlinson MP said: “In the speech, the Prime Minister has struck an open and pragmatic tone about what she wants to achieve with regards to a Brexit deal. Ultimately, the only way to get the best Brexit deal is by working with the EU to reach a deal which benefits both parties. This means being firm at times, but being open and outward-looking as well.”
The Prime Minister said: “We should not think of our leaving the EU as marking an ending, as much as a new beginning for the United Kingdom and our relationship with our European allies. Rather, it must be the means by which we reaffirm Britain’s place in the world and renew the ties that bind us here at home. And I know that the United Kingdom I treasure can emerge from this process a stronger, more cohesive nation.”
Speaking to her EU counterparts she said: “We know what we want. We understand your principles. We have a shared interest in getting this right. Let’s get on with it.”
The Prime Minister's speech in detail
Goods
- A fundamental principle in the Prime Minister’s negotiating strategy is that trade at the UK-EU border should be as frictionless as possible, with no hard border on the island of Ireland.
- This means we do not want to see the introduction of any tariffs or quotas, and we want to ensure products only need to undergo one series of approvals in one country to prove they meet the required regulatory standards.
- To achieve this there will need to be a comprehensive system of mutual recognition. There is a commitment to ensure that the relevant UK regulatory standards remain as high as the EU’s which, in practice, will mean that our standards remain substantially similar in the future.
- We will also want to explore with the EU the terms on which the UK could remain part of EU agencies such as those that are important for the chemicals, medicines and aerospace industries.
- This is the only way to ensure that these products need to undergo one series of approvals; the UK would be able to provide our technical expertise to these agencies; it would allow UK firms to resolve certain challenges related to these agencies through UK courts; and it would benefit both the UK and the EU.
Customs
- The UK has been clear that it is leaving the Customs Union and a customs union – neither would be compatible with a meaningful independent trade policy.
- Recognising the unique circumstances in Northern Ireland, and shared commitments to avoiding a hard border on the island of Ireland, it should be ensured that no new restrictions for smaller traders, and simplified processes for larger traders.
- Some of these ideas depend on technology, robust systems to ensure trust and confidence, as well as goodwill – but they are serious and merit consideration by all sides.
- The Prime Minister has put forward two potential options for a future customs arrangement with the EU:
Option one is a customs partnership between the UK and the EU:
- At the border, the UK would mirror the EU’s requirements for imports from the rest of the world, applying the same tariffs and the same rules of origin as the EU for those goods arriving in the UK and intended for the EU.
- By following this approach, the UK would know that all goods entering the EU via the UK pay the right EU duties, removing the need for customs processes between us.
- But, importantly, the UK would put in place a mechanism so that it would also be able to apply its own tariffs for goods intended for the UK market.
Option two is a highly streamlined customs arrangement, where the UK would jointly agree to implement a range of measures to minimise frictions to trade, together with specific provisions for Northern Ireland, including to:
- ensure the requirements for moving goods across borders are as simple as possible, e.g. continuing to waive the requirement for entry and exit declarations;
- reduce the risk of delays at ports and airports. For example, drawing on the most advanced IT solutions so that vehicles do not need to stop at the border;
- continue co-operation to mitigate customs duty and security risks; and
- reduce the cost and burden of complying with customs administrative requirements, including by maximising the use of automation.
Agriculture, Food & Fisheries
- The UK is leaving the Common Agricultural Policy and will want to take the opportunity that brings to reform its agriculture and fisheries management. The UK has some of the highest environmental and animal welfare standards of any nation.
- The Prime Minister has said we should expect that UK standards will remain at least as high as the EU’s. But it will be particularly important to secure flexibility here to ensure the UK can make the most of the opportunities presented by its withdrawal from the EU for our farmers and exporters.
- The UK is also leaving the Common Fisheries Policy and will regain control over its domestic fisheries management rules and access to its waters. But as part of the economic partnership it will want to continue to work together to manage shared stocks in a sustainable way and to agree reciprocal access to waters and a fairer allocation of fishing opportunities for the UK fishing industry.
Services
- For services, there is the opportunity to break new ground with a broader agreement than ever before.
- Two areas have never been covered in a Free Trade Agreement in any meaningful way: financial services and broadcasting.
- The Prime Minister recognised that the UK cannot have the rights of membership of the single market, such as ‘passporting’ in financial services and ‘country of origin’ in broadcasting. However that does not mean we should be bound by existing precedent.
- For broadcasting, we would like to consider options such as allowing broadcasting across borders, recognising the role that British broadcasters and programme makers play in not only British but more broadly in common European culture.
- Similarly, for financial services, the Prime Minister wants a new framework that allows trade across borders on a basis that is reliable for business. This will require collaboration between regulators, and an objective approach to assessing whether rules are equivalent.
Any agreement will also need to cover other crucial areas like:
- Energy, including protecting the single electricity market on the island of Ireland. The Government also believe it is of benefit to both sides for the UK to have a close association with Euratom;
- Transport, where the Prime Minister wants to ensure the continuity of aviation, maritime, rail and road haulage;
- The digital sector, where it will be particularly important to have domestic flexibility, to ensure it is possible to always respond nimbly and ambitiously to new developments;
- Civil judicial co-operation;
- A far-reaching science and innovation pact with the EU, facilitating the exchange of ideas and researchers; and
- A similar approach to educational and cultural programmes, to promote our shared values and enhance our intellectual strength in the world – again making an ongoing contribution to cover our fair share of the costs involved.
