There has been a great deal of sound and fury over Brandon Lewis’s remark that if we seek to vary the terms of the Northern Irish Protocol to the Brexit agreement, then we will “be in breach of International Law.” It is perfectly true that every time you try to vary any international treaty it is a technical breach of the law. All that is happening is that we have spotted a fundamental flaw in one aspect of the EU Withdrawal Agreement and this Bill seeks to correct it.
It would only have effect if we fail to come to a Free Trade Agreement with the EU by the end of the year- which I still hope we will be able to do. But the trouble is that this particular aspect of the Withdrawal Agreement actually incentivises the EU NOT to make any such trade agreement. After we have finally left the EU, the UK Government may decide to help certain sectors of business in various ways. It may be that we would try to create a high-tech hub rather like Silicon Valley, very probably much of it in this area. Electric cars, for example, may well be an attractive idea, perhaps to replace Honda. Perhaps we will seek to support one or other aspect of farming. These things are known as ‘State Aid’, and under the Withdrawal Agreement they can only be done with prior approval of the EU - for all time to come. It’s ostensibly in case any of the State Aid supported goods went via Northern Ireland and into the EU market; but that is cover for banning State aid on the mainland of GB as well. And the EU of course would never agree to it.
So the UK Internal Market Bill is crucial to protect seamless trade and jobs across all four corners of the United Kingdom at the end of the Transition Period. It will: ensure that there are no tariffs on goods remaining within the UK customs territory; guarantee that businesses based in Northern Ireland have true ‘unfettered access’ to the rest of the United Kingdom, without paperwork; removes any possible legal confusion about the fact that, while Northern Ireland will remain subject to the EU’s State Aid regime for the duration of the Protocol, Great Britain will not be subject to those EU rules.
The Free Trade Negotiations are at a crucial stage. The EU wants to apply their State Aid rules to the whole of the UK; they want to apply fishing quotas to fish caught in our own territorial waters, and in a number of other ways they want to keep the UK within the EU in all but name. We cannot allow that. That is why we must make it plain that if we do not reach agreement on Free Trade, we will have taken steps towards an alternative- of which this Bill is a crucial part.
I am glad that the negotiators are being tough- it’s the only language which Mr Barnier and co understand. They need to realise that the people of Britain voted to leave the EU, to leave the single market, to leave the EU courts and structures. The notion that we would nonetheless be prevented from subsidising one or other of our business sectors in the event that we chose to do so, undermines and invalidates Brexit. This is fundamental to our decision to leave; and if the EU negotiators do not give ground, then we must be ready to walk away, leave the question of a trading agreement to another day; and be ready to trade under WTO rules just as much as we will do with the rest of the world.