UK Parliament / Open data

Taxation (Cross-border Trade) Bill

I want to speak against new clause 1, which my right hon. Friend the Member for Broxtowe (Anna Soubry) tabled.

Among many points my constituents have made to me in the past few weeks, they have asked why the House cannot work together on Brexit. I suppose the simple answer is that our biggest challenge—what divides us most—is not acceptance of the result of the referendum on 23 June 2016, but its practical interpretation as the basis for our future relationship with the EU.

Parliament is bound by our promise on Brexit, but perhaps it also needs to accept some key principles, which reflect the promises that were made during the referendum campaign. Where better to look for those promises than the voice of the official body that argued for Brexit—Vote Leave? On trade, the Vote Leave manifesto was clear:

“We take back the power to make our own trade deals”.

On that basis, it is clear that we must not remain part of a customs union as that would prevent us from directly negotiating and implementing trade deals. It is, therefore, strange that being part of a customs union seems to be Labour party policy, which goes right against the clear mandate that the people gave us.

There were other commitments in the Vote Leave manifesto, for example,

“one thing which won’t change is our ability to trade freely with Europe.”

On that basis, it is fair for businesses, and the people whose jobs rely on those businesses, to assume that nothing will change. Of course, Members have made the point that other countries manage to have just-in-time supply chains when they have a customs border, but most countries have not been part of a trading environment for 44 years in which they have not carried the burden of those complexities.

We know from Ricardo’s theory of comparative advantage that businesses have a choice to station themselves here or move jobs to other parts of the EU because extra costs will ensue if they do not: costs for customs checks and for checks on standards. I believe that staying part of a customs union is not consistent with the mandate that the people gave us, but that the White Paper, as articulated by the Prime Minister, deals with our obligation to leave the EU while also minimising the costs of comparative advantage. The House should support it.

About this proceeding contribution

Reference

645 c129 

Session

2017-19

Chamber / Committee

House of Commons chamber
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