Future Relationship Between the UK and the EU

Part of Domestic Gas and Electricity (Tariff Cap) Bill – in the House of Commons at 4:16 pm on 18th July 2018.

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Photo of Dominic Raab Dominic Raab The Secretary of State for Exiting the European Union 4:16 pm, 18th July 2018

I was paying tribute, and paying my respects, to the service that my right hon. Friend had done to this country as Foreign Secretary, and admiring the optimism and the passion with which he had spoken, particularly in relation to Brexit. It is not for me to pick at the detail of his statement. I think that all Members, whatever their views on Brexit, recognise the convictions held by other Members on all sides, and in all parties, in relation to this important matter.

As I was saying, the White Paper is a principled and pragmatic plan for the relationship that we wish to build for the future. It delivers on our dual strategic aim of taking back control over our laws, our money and our borders, while preserving and building on the historic ties with our EU friends—such as trade and security—that we all rightly prize.

The White Paper proposes a free trade area for goods to maintain frictionless trade, supported by a common rulebook and a new facilitated customs arrangement, but only for the rules that are necessary to provide frictionless trade at the border. That will help to secure the complex supply chains and just-in-time manufacturing processes that we have developed with the EU over 40 years. It will give businesses certainty and clarity, and will help us to preserve the jobs that thrive on the basis of frictionless trade across the border. Under those arrangements, businesses from Stockholm to Sunderland and from Cardiff to Krakow will be able to rely on smooth procedures to avoid any potential disruption of their livelihoods.

A key component of the free trade area will be our proposal for a facilitated customs arrangement, a business-friendly model that removes the need for new routine customs checks and controls between the UK and the EU while enabling the UK to control its own tariffs to boost trade with the rest of the world. The UK would apply the EU’s tariffs to goods intended for the EU, and its own tariffs and policy to goods intended for consumption in the UK.