PARLIAMENTARY DEBATE
European Council - 26 March 2018 (Commons/Commons Chamber)
Debate Detail
Turning to the European Council, we discussed confronting Russia’s threat to the rules-based order. We agreed our response to America’s import tariffs on steel and aluminium, and we also discussed Turkey and the western Balkans, as well as economic issues including the appropriate means of taxing digital companies. All of those are issues on which the UK will continue to play a leading role in our future partnership with the EU after we have left, and this Council also took important steps towards building that future partnership.
First, on Russia, we are shortly to debate the threat that Russia poses to our national security—I will set that out in detail then—but at this Council I shared the basis for our assessment that Russia was responsible for the reckless and brazen attempted murder of Sergei and Yulia Skripal in Salisbury, and for the exposure of many others to potential harm. All EU leaders agreed and, as a result, the Council conclusions were changed to state that the Council
“agrees with the United Kingdom government’s assessment that it is highly likely that the Russian Federation is responsible and that there is no alternative plausible explanation.”
This was the first offensive use of a nerve agent on European soil since the foundation of the EU and NATO. It is a clear violation of the chemical weapons convention and, as an unlawful use of force, a clear breach of the UN charter. It is part of a pattern of increasingly aggressive Russian behaviour, but it also represents a new and dangerous phase in Russia’s hostile activity against Europe and our shared values and interests. So I argued that there should be a reappraisal of how our collective efforts can best tackle the challenge that Russia poses following President Putin’s re-election. In my discussions with President Macron and Chancellor Merkel, as well as with other leaders, we agreed on the importance of sending a strong European message in response to Russia’s actions not just out of solidarity with the UK, but recognising the threat posed to the national security of all EU countries.
The Council agreed immediate actions including withdrawing the EU’s ambassador from Moscow. Today, 18 countries have announced their intention to expel more than 100 Russian intelligence officers from their countries. That includes 15 EU member states, as well as the US, Canada, and the Ukraine. It is the largest collective expulsion of Russian intelligence officers in history. I have found great solidarity from our friends and partners in the EU, North America, NATO and beyond over the past three weeks as we have confronted the aftermath of the Salisbury incident, and together we have sent a message that we will not tolerate Russia’s continued attempts to flout international law and undermine our values. European nations will also act to strengthen their resilience to chemical, biological, radiological and nuclear-related risks, as well as to bolster their capabilities to deal with hybrid threats. We also agreed that we would review progress in June, with Foreign Ministers being tasked to report back ahead of the next Council.
The challenge of Russia is one that will endure for years to come. As I have made clear before, we have no disagreement with the Russian people who have achieved so much through their country’s great history. Indeed, our thoughts are with them today in the aftermath of the awful shopping centre fire in Kemerovo in Siberia.
But President Putin’s regime is carrying out acts of aggression against our shared values and interests within our continent and beyond, and as a sovereign European democracy, the United Kingdom will stand shoulder to shoulder with the EU and with NATO to face down these threats together.
Turning to the United States’s decision to impose import tariffs on steel and aluminium, the Council was clear that these measures cannot be justified on national security grounds, and that sector-wide protection in the US is an inappropriate remedy for the real problems of overcapacity. My right hon. Friend the Secretary of State for International Trade travelled to Washington last week to argue for an EU-wide exemption. So we welcome the temporary exemption that has now been given to the European Union, but we must work hard to ensure this becomes permanent. At the same time, we will continue to support preparations in the EU to defend our industry in a proportionate manner, in compliance with World Trade Organisation rules.
Turning to Brexit, last week the Secretary of State for Exiting the European Union reached agreement with the European Commission negotiating team on large parts of the draft withdrawal agreement. That includes the reciprocal agreement on citizens’ rights, the financial settlement, aspects of issues relating to Northern Ireland, such as the common travel area, and crucially the detailed terms of a time-limited implementation period running to the end of December 2020. I am today placing copies of the draft agreement in the Libraries of both Houses, and I thank the Secretary of State and our negotiating team for all their work in getting us to this point.
The Council welcomed the agreement, including the time that the implementation period will provide for Governments, businesses and citizens on both sides to prepare for the new relationship we want to build. As I set out in my speech in Florence, it is not in our national interest to ask businesses to undertake two sets of changes, so it follows that during the implementation period, they should continue to trade on current terms. Although I recognise that not everyone will welcome the continuation of current trading terms for another 21 months, such an implementation period has been widely welcomed by British business because it is necessary if we are to minimise uncertainty and deliver a smooth and successful Brexit. For all of us, the most important issue must be focusing on negotiating the right future relationship that will endure for years to come.
We are determined to use the implementation period to prepare properly for that future relationship. That is why it is essential that we have clarity about the terms of that relationship when we ask the House to agree the implementation period and the rest of the withdrawal agreement in the autumn.
Of course, some key questions remain to be resolved on the withdrawal agreement, including the governance of the agreement, and how our commitments to avoid a hard border between Ireland and Northern Ireland should be turned into legal text. As I have made clear, we remain committed to the agreement we reached in December in its entirety. That includes a commitment to agree operational legal text for the “backstop option” set out in the joint report, although it remains my firm belief that we can and will find the best solutions for Northern Ireland as part of the overall future relationship between the UK and the EU.
I have explained that the specific European Commission proposals for that backstop were unacceptable because they were not in line with the Belfast agreement and threatened the break-up of the UK’s internal market. As such, they were not a fair reflection of the joint report. But there are many issues on which we can agree with the Commission and we are committed to working intensively to resolve those that remain outstanding. I welcome the fact that we are beginning a dedicated set of talks today with the European Commission and, where appropriate, the Irish Government so that we can work together to agree the best way to fulfil our commitments.
We have also been working closely with the Government of Gibraltar to ensure that Gibraltar is covered by our EU negotiations on withdrawal, the implementation period and future relationship. I am pleased that the draft agreement published jointly last week correctly applies to Gibraltar, but we will continue to engage closely with the Government of Gibraltar and our European partners to resolve the particular challenges our EU withdrawal poses for Gibraltar and for Spain.
Following my speeches in Munich and at the Mansion House setting out the future security and economic partnerships we want to develop, the Council also agreed guidelines for the next stage of the negotiations on this future relationship, which must rightly now be our focus. While there are of course some clear differences between our initial positions, the guidelines are a useful starting point for the negotiations that will now get under way.
I welcome the Council’s restating the EU’s determination to
“have as close as possible a partnership with the UK”
and its desire for a “balanced, ambitious and wide-ranging” free trade agreement. For I believe there is now an opportunity to create a new dynamic in these negotiations. The agreements our negotiators have reached on the withdrawal agreement and the implementation period are proof that, with political will, a spirit of co-operation and a spirit of opportunity for the future, we can find answers to difficult issues together. We must continue to do so. For whether people voted leave or remain, many are frankly tired of the old arguments and the attempts to refight the referendum over the past year. With a year to go, people are coming back together and looking forward. They want us to get on with it, and that is what we are going to do.
I commend this statement to the House.
On Russia, I welcome the international consensus that the Prime Minister has built; as I said two weeks ago, the most powerful response we can make is multilateral action. So I would like to place on record our thanks to the EU and other states for their co-operation with us. I know that we will discuss these issues further later this afternoon, but I would add my condolences to all those Russian families affected by the Kemerovo shopping centre fire at the weekend.
On US steel tariffs, we need a co-ordinated response to tackle the dumping of steel by some nations and to resist the retreat into protectionism by the United States. The temporary respite from tariffs is welcome, but we must make it permanent.
We are pleased that some progress seems to have been made on the transition period, especially given that the agreement is identical to what Labour was calling for last summer. The only real question is why it took the Government so long to realise that a transition on the same terms is vital to protect jobs and our economy. The Government wasted months and months, dithering and posturing, before accepting the inevitable. That is the consistent pattern of these Brexit talks: wild claims and red lines quickly become climbdowns and broken promises.
Our coastal and fishing communities were told by the Environment Secretary only this month:
“The Prime Minister has been clear: Britain will leave the CFP”—
common fisheries policy—
“as of March 2019.”
Just a few weeks later, we find out that that will not be the case. What happened when we were told by the Brexit Secretary that the Government would deliver “the exact same benefits” of the single market and the customs union? Well, now the Prime Minister is saying, “We won’t be able to have the benefits of the single market” and, after saying it was a viable option earlier this year, any form of customs union is now ruled out, too. In January, we were told by the Prime Minister that EU citizens arriving during the transition period would not get the same rights as those already in the UK. She said:
“I’m clear there is a difference between those people who came prior to us leaving and those who will come when they know the UK is no longer a member.”
Now she is clear that there is no difference.
The insecurity for families and businesses, and the confusion at the heart of Government, have dogged the first phase of negotiations. So can the Prime Minister today give some clarity and confirm that we will not withdraw from the European nuclear agreement—Euratom—until alternative international arrangements for nuclear co-operation are agreed? Will her Government back those pragmatic amendments to the Nuclear Safeguards Bill? The Prime Minister had previously signalled that there would be flexibility over the duration of the transition period, yet in the withdrawal agreement the Government have accepted a definitive withdrawal date of December 2020. Can the Prime Minister explain what happened to her request for flexibility? And what are the Government doing to ensure that this date could be extended if a deal has not been reached? It has been broken promise after broken promise, and I can only hope that the next broken promise does not involve their commitment to “no hard border” in Ireland. The Government have still offered no credible solution, and now, in order to move negotiations on, the Prime Minister has been forced into an agreement that could result in a hard border in the Irish sea. Will the Prime Minister outline how she will prevent a hard border in Ireland, or in the Irish sea, if she rules out any form of customs union?
Many UK nations and regions have benefited from the European Investment Bank. Given that we are still paying into the EU budget, will the Prime Minister explain why the UK will not be eligible for new funding during transition? Does that not leave us still paying in, but to get less?
Has the Prime Minister signed up to there being an Anglo-Spanish bilateral agreement on Gibraltar? Who will lead the negotiations for the Government?
Last week, the Government presided over a new fiasco over passports. In her last Brexit statement, the Prime Minister told the House:
“We are delivering for the British people, and we are going to make a success of it.”—[Official Report, 5 March 2018; Vol. 637, c. 31.]
Well, tell that to De La Rue workers in Gateshead. It seems that her red, white and blue Brexit has become the blue, white and red of the flag of France. Time after time, the Tories sell off British assets and jobs to the lowest bidder.
The Prime Minister says that last week was a significant breakthrough, but it is the same breakthrough that we were told had been signed off in December, and some of it is still fudged, four months on. Yet we know that the hardest decisions are yet to come. In the second phase of the talks, the Government must stop posturing, drop the impossible red lines, finally put jobs and our economy first and give workers and businesses the clarity that they need.
The right hon. Gentleman raised various other issues. He will know that membership of Euratom is legally linked to membership of the European Union. We are putting in place the arrangements necessary to ensure that we can continue to operate with others in that area.
The right hon. Gentleman talked about clarity on citizens’ rights. The December joint report and the report on the implementation period that was agreed last Friday do precisely that: they provide clarity for citizens as to what their rights are going to be.
The right hon. Gentleman referred once again to the Northern Ireland border. We are very clear and have set out proposals and ways in which we can ensure that there is no hard border between Northern Ireland and Ireland. We were also very clear in the December joint report, to which both the United Kingdom and the European Union signed up, that there should be no hard border down the Irish sea—in effect, that the internal market of the United Kingdom should be retained—and that all aspects of the Belfast agreement should be respected. We continue to do that.
The right hon. Gentleman talked about the fact that the implementation period was a Labour party idea. May I remind him of two things? First, the concept of a smooth and orderly withdrawal from Brexit was first referenced in my Lancaster House speech in January 2017. Secondly, I seem to remember that the day after the referendum result in 2016, the right hon. Gentleman wanted to trigger article 50 immediately. There was no suggestion of an implementation period then, was there? So, there we go.
Finally, the right hon. Gentleman talked about changes of opinion. This is the Leader of the Opposition who says that he wants us to continue to be in a customs union, but at the same time refuses to accept the competition policy that is a necessary element of being in a customs union. It is the right hon. Gentleman who, when the shadow Home Secretary, the right hon. Member for Hackney North and Stoke Newington (Ms Abbott), backed a rerun of the referendum, kept her in her job, but sacked the then shadow Northern Ireland Secretary, the hon. Member for Pontypridd (Owen Smith), when he backed a rerun of the referendum. I say to the right hon. Gentleman that it is the Conservative party in government that is getting on with delivering on the wishes of the British people and delivering a Brexit that works for everyone.
I start by wishing Detective Sergeant Nick Bailey and his family the very best following his discharge from hospital last week. I pay tribute to the NHS staff who cared for him in such difficult circumstances, and, of course, our thoughts remain with Yulia and Sergei Skripal. I want to associate myself with the Prime Minister’s remarks on the terrorist atrocity in Trèbes and on the selfless sacrifice of Lieutenant Colonel Arnaud Beltrame. I pay tribute, too, to those who have been caught up in the terrible fire in Kemerovo in Siberia.
Last week, the Prime Minister secured an important message in the European Council’s formal declaration that it is “highly likely” that Russia was behind the nerve agent attack in Salisbury earlier this month. I note that EU leaders also agreed to recall Markus Ederer, the bloc’s ambassador to Moscow, for consultations. That is a strong position that our friends have taken, and I welcome united efforts in responding to the reckless chemical attack in Salisbury. Can the Prime Minister tell the House what discussions she has had with European partners in ensuring that non-governmental organisations on the ground in Russia continue to have support from the United Kingdom and the EU?
Although the Scottish National party welcomed the Prime Minister’s statement on 14 March, we want to see firm action taken by the Government on Scottish limited partnerships, which are often used by criminals for money laundering. We also want action on Magnitsky amendments to the Sanctions and Anti-Money Laundering Bill. Will the Prime Minister confirm when we can expect to see her Government’s plans to clamp down on Scottish limited partnerships and, more generally, to deal with all forms of Russian money laundering?
Turning to the EU Council’s conclusions on the latest phase of Brexit negotiations, will the Prime Minister tell the House what representations she made to EU leaders to reverse the conclusions on the UK’s fishing rights post Brexit? Last week, fishing communities across Scotland were left in the dark as their industry was bargained away by this Government. Why were the Secretary of State for Scotland and Ruth Davidson permitted to issue a statement on 11 March that we would have control of our fishing grounds for this to be reversed only a week later? What changed? Did the Secretary of State know what was to happen? Had he been properly informed by the Government? It is incumbent on the Prime Minister to secure the rights of fishing communities and to reject any deal that leaves them hamstrung in a transition agreement.
SNP Members continue to hold concerns about the UK Government’s approach to the Good Friday agreement and the Irish border. Time is running out. The Prime Minister cannot play fast and loose with Northern Ireland any longer. Decisions are needed to give businesses and communities in Northern Ireland the certainty in their day-to-day lives that they deserve.
Finally, what discussions has the Prime Minister had with the Prime Minister of Spain on the ongoing situation between Spain and Catalonia and on the arrest warrants that have been issued for democratically elected politicians, including those who are living in Scotland? Surely, we need a political solution, not this situation in which Spain is trying to impose on directly elected politicians.
The right hon. Gentleman raises a number of issues. We have had discussions with the Scottish National party and others about what a Magnitsky amendment might look like. We have already taken some action, but we are looking to ensure that we take the strongest possible action. Of course, a number of my colleagues in the European Council mentioned their own Magnitsky legislation and that issue.
I will write to the right hon. Gentleman on SLPs, if I may. We have taken some action, but are looking further at what we might be able to do.
On Catalonia, we continue to wish to see the rule of law upheld and to ensure that the Spanish constitution is upheld. On Northern Ireland, talks are starting today with the European Commission on the details of the ways in which we will be able to ensure that there is no hard border between Ireland and Northern Ireland. Where appropriate, those talks will also involve the Irish Government.
Finally, the right hon. Gentleman mentions the common fisheries policy. We will be leaving the common fisheries policy and taking back control of our waters. But it is a bit rich for him to make those comments, given that he belongs to a party that wants to stay in the CFP in perpetuity.
The Prime Minister mentions the discussions on taxing digital companies whose behaviour as guardians of our data is of course a subject of increasing concern. Does she agree that Brexit or no Brexit, the UK’s only hope of tackling the massive and damaging monopoly power of the likes of Google, Facebook and Amazon is to work closely with our European partners on a co-ordinated approach not only on tax but on data protection and competition regulation?
Work is in hand at an international level—at the OECD level—on the taxation of digital companies. We believe that the best result is an international result, but we also think it right to look, as the European Union, at whether any interim steps need to be taken to ensure that we are properly taxing these companies.
Will the Prime Minister state categorically today that no matter what happens, the implementation period will end at the end of December 2020? Does she agree that to go into any negotiation saying that one will never walk away is not the way to get the best result?
On the end date of the implementation period, I have spoken about it being around two years. In the negotiations, the European Union wanted it to be at December 2020, and I felt it was appropriate that we had that firm date, so that everybody is clear about when the implementation period will end.
Does the Prime Minister share the bemusement of many in Northern Ireland that there is so much concentration on the so-called backstop provisions when we should be getting on with negotiating the overall agreement, which will take care of the Irish border issue? Does she share the concern of many in Northern Ireland that that is being used by some in the European Union, and indeed some in the Irish Government, to shape their version of Brexit or to thwart Brexit altogether, by inventing problems when there are none? Will she give a clear assurance to the people of Northern Ireland that there will be no backtracking on her firm resolve that no British Prime Minister could ever sign up to the sort of legal text that the EU put forward?
“Being outside the Customs Union and the Single Market will inevitably lead to frictions in trade.”
Does that sentence not confirm beyond all doubt that the Prime Minister’s red lines are leading us inexorably to a hard border between Northern Ireland and the Republic?
My right hon. Friend clearly attended a very busy Council. During the conversations on the margins, was she able to raise with other European leaders the rather ugly rise in the scourge of anti-Semitism in Europe?
“Britain has never ever challenged the quota shares that we have used every year in the annual negotiations”.
If the Tories are so concerned about the fishing industry, why have they never challenged the quotas?
“the United Kingdom does not stand alone in confronting Russian aggression.”—[Official Report, 14 March 2018; Vol. 637, c. 857.]
We should remember that there were those who questioned that at the time, and also questioned whether some of our allies really believed the evidence that they were shown. Surely what is so significant about today is that we are far from being alone, and that those countries can clearly see the culpability of the Kremlin in this terrible attack.
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.