Exiting the European Union

Lord Tyrie Excerpts

Monday 5th September 2016 Commons Chamber

[Mr Davis]

It is early days to forecast the negotiation, but the right hon. Gentleman is right—there is a large trade surplus. The one that was cited time and again during the referendum campaign, which I do not want to revisit, was the surplus in cars from Germany alone, for example. With countries of the European Union facing economic difficulties, I do not think they will want to create problems for themselves by creating bilateral arrangements that hurt them, so the way I think it will play out is that over the period concerned—probably a couple of years or so—people will start to focus on what their own national interest is. My experience of the European Union is that the Commission makes a great deal of public statements, but at the end of the day the national interest of individual countries decides the outcome.

[Mr Andrew Tyrie (Chichester) (Con)]

Can the Secretary of State confirm that as the UK will want to be able to negotiate new trade deals with the rest of the world and has created a Department for that very purpose, it will not be able to remain a member of the customs union?

[Mr Davis]

I am pleased to be asked a question by my right hon. Friend. I spent the weekend reading his draft for Open Europe. I did not agree with everything in it, but, as always with him, what he has to say was insightful and wise. I recommend that people read pages 10, 11 and 12 if they do not have a lot of time.

My right hon. Friend has a good point on the customs union. Membership of a customs union puts restrictions of varying degrees on what countries can do outside. It would put restrictions on what my right hon. Friend the Secretary of State for International Trade is doing, so we have to look at the matter carefully. There is a range of different types of customs union, but that is exactly the sort of decision that we will resolve before we trigger article 50.