UK-EU Trading Relationship
1/21. What assessment his Department has made of the effectiveness of the new trading relationship with the EU.
15. What assessment his Department has made of the effectiveness of the new UK-EU trading relationship.
We have reset our relationships with the European Union, and are now focused on delivering a long-term strategic partnership to improve the lives of working people and make the UK more prosperous. That is good for bills, good for our borders and good for jobs.
In 1973, the UK joined the European Economic Community, which later became the European Union. Given this week’s visit by the French President and this Government’s desire for closer co-operation with the EU, will the Minister confirm that no new or existing trade deal will lead to this country rejoining the EU through the back door?
That is absolutely not the case. What we have with the European Union is a new deal that the supermarkets say has put a downward pressure on prices, and which Octopus Energy says will bring the cost of energy down. I am surprised to hear that Reform is against that, but since it has welcomed Liz Truss’s party chairman as a new member today, perhaps it is no surprise that Reform takes that view.
Yesterday on “Farming Today” at 5.45 am, it was put to a shellfish farmer that it was going to become much easier for her to export her produce to the European Union. Her response was, “Yes, but we are told that the changes will be two or perhaps four years away, if they happen at all.” Given what we have negotiated away, can those changes be expedited?
I am determined to expedite these new arrangements as quickly as possible. It is fantastic to see the Opposition take that position—I thought the right hon. Gentleman’s Front Benchers were against them.
I call the shadow Minister.
As the Minister will be aware, under the existing framework, the UK is entitled to take unilateral measures to protect the internal market where there is a diversion of trade. The Federation of Small Businesses Northern Ireland says that a third of businesses that previously traded between Great Britain and Northern Ireland have ceased to do so. We know from his interview yesterday that the Minister does not consider three quarters of deportations being voluntary to represent a majority, but does he consider a third of businesses to be a diversion of trade? If he does not, what would be a diversion of trade?
On 1 July, we introduced the phase 3 checks under the Windsor framework. The Windsor framework was negotiated by the previous Government, and we supported it from the Opposition Benches. I assume that the Conservatives continue to support those arrangements. Obviously, we monitor the issue of trade diversion very carefully, and we stand ready to help businesses adjust to the new arrangements.
I call the Liberal Democrat spokesperson.
A few months ago, this Government reached a small but welcome trade agreement with the EU—our largest trading partner—and just this week, Members of this House heard from the President of France, Emmanuel Macron, about the closeness of the relationship between the UK and France. It was the first state visit by a French President since 2008 and the first by a European Union political leader since Brexit. Now that UK-EU relations are at a turning point, does the Minister agree that it is finally time to be more ambitious, drop the red lines, cut the red tape, and aim to negotiate a UK-EU customs union that would boost the public coffers by £25 billion a year?
We have delivered an ambitious new trading arrangement with the European Union. We have also delivered a new free trade agreement with India and an economic deal with the United States. What the hon. Lady is suggesting would take away our freedom to be able to do that, which is contributing to our economy.