Leaving the European Union

Greg Hands Excerpts

Monday 21st January 2019 Commons Chamber

[The Prime Minister]

If the right hon. Gentleman had heard the speech that I made last week in the no-confidence debate, he would know that I made it absolutely clear that I do not believe that a general election is in the national interest at this time.

[Greg Hands (Chelsea and Fulham) (Con)]

May I return to issues concerning the World Trade Organisation? One of the things that will need to be sorted out in connection with the question of a no-deal Brexit is what will happen in relation to some of the “most favoured nation” clauses. If the Prime Minister were to put up no tariffs, barriers or checks to EU goods at all after 29 March—which would be very helpful in ensuring that there was no change in free-flowing trade from our side—that might provoke MFN challenges at the WTO.

What assessment have the Government made of the relative merit of carrying on with trade as it currently is in such a scenario, vis-à-vis the risk of WTO challenges? Those challenges would of course not be heard for 18 months, and any infraction could not be retrospective. Does my right hon. Friend agree that it may well be worth while—as long as the study is done—to pursue that course of simply keeping the border open in the event of a no-deal Brexit?

[The Prime Minister]

I know—given his previous ministerial position and his interests—that my right hon. Friend has considered this issue with great care. However, it is not simply a question of the tariffs that we set for items going across our border. Questions of the WTO requirements in relation to customs declarations at the border, and other issues which are referred to in the political declaration, such as issues relating to data, are also relevant to this matter.