Contribution
My Lords, I thank the noble Baroness for repeating yesterday’s Statement. I begin by associating these Benches with the sentiments expressed in the Statement on Gaza. Recent Israeli action is indeed horrific and requires a response. Yesterday’s actions by the Foreign Secretary are welcome, but the most obvious way in which we can demonstrate our further support for the Palestinian people is to support their demand for statehood. Can the noble Baroness confirm whether this option is under active consideration by the Government?
On Europe, the joint statement issued by the UK and EU begins by pointing out that this was the first UK-EU summit since Brexit, and this is the context against which the outcome should be judged. It was, of course, a real dereliction of duty for the previous Government to turn their back so comprehensively on our largest and closest partner. A reset in our relations is long overdue in the national interest.
Perhaps the biggest achievement of the summit was that it represented a milestone in rebuilding trust between the UK and the EU. For too long, too many in British politics have poured scorn on the EU while placing their hopes on replacing ties with Europe with countries which are now run by unreliable allies. The EU has noticed this and has been understandably wary about treating with the UK as a result. Against this background, the specific outcomes of the summit are to be welcomed, whether on freer trade in food products, energy, security, defence, or youth mobility, and I am sure pet owners will also be cheering to the rafters the return of the pet passport.
It will surprise no one, however, that we on these Benches see these agreements as but small, tentative first steps towards restoring a much deeper, more productive relationship with the EU. The progress on veterinary and plant health requirements is particularly welcome as it will lead to immediate benefits to the food and agriculture sectors; and, as the Statement made clear, it has even been welcomed by the Scottish salmon industry. The return of frictionless trade in these areas is one of the main reasons why yesterday’s deal will add 0.2% to GDP.
However, for firms in every other productive sector seeking to export to the EU, the deal does nothing to make that easier. Before yesterday’s deal we were set to lost 4% of GDP as a result of Brexit. Now we are set to lose 3.8%. This shows how much more there is to do and why movement towards rejoining the customs union and single market is still urgently required.
The commitment to a youth mobility scheme and reassociation with Erasmus+ I welcome, but it is vague as to timing and detailed content. Can the Minister say what the Government’s aspirations are for concluding these new arrangements so that students and young people more generally can benefit?
The agreements on travelling artists, short-term business mobility and mutual recognition of professional qualifications are also welcome but are even vaguer. Given that agreement in these areas would be a clear win-win for both sides, it is surprising and disappointing that more progress has not been achieved. Can the Government say what they envisage happening next to bring about these much-needed easements?
The new UK-EU security and defence partnership is also welcome. At the heart of this is the €150 billion defence equipment procurement fund. The UK will now negotiate to become a participant in this programme. This could significantly benefit the UK defence industry, but there are no details. When can we expect some? In defence and security, and in the other areas covered by yesterday’s agreements, new institutional ties with the EU will give the UK, for the first time in almost a decade, a formal route to influence EU thinking. This is no small gain.
Taken together, yesterday’s agreements, far from representing a surrender of British interests, are an overdue reassertion of them. This view is shared by the British public, who now decisively support closer ties with the EU. The Government now need to build on the progress they made yesterday. That will make the UK more prosperous, more influential and more secure. The sooner and more decisively they do it, the better.