I rise to speak to the House today on behalf of the Business and Trade Committee on our sixth report—a road map for the EU reset. I hope you will forgive me, Madam Deputy Speaker, for using this moment to share my profound thanks to the members of the Committee, who are both diligent and hard-working.
From our earliest days together as a Committee, it was clear to us all that our relationship with the European Union had been trapped in the logic of the past, and that although not all of that past was bitter, the present was clearly unsatisfactory, and the future could be richer if we collectively chose to reset that relationship with more ambition. That, we sensed, was also the analysis of His Majesty’s Government. We asked ourselves what could be done to move this relationship forward—not distracted by fantasy, but informed with a real, hard-headed and pragmatic focus.
We travelled to Brussels, Belfast and Geneva. We listened to businesses, trade unions, diplomats and officials in the European Commission. We looked at border posts, trade barriers and, I am afraid to say, an awful lot of lost opportunities. We asked one simple question: how can we make these arrangements better? We sought not to reopen old wounds, but to open new doors.
What surprised us was that it was not difficult to find 21 different ways in which our relationship with the European Union could be reset in a manner that would make our country richer—with steps that would support our security, deepen our energy ties, and cut the red tape that is throttling trade with the EU. These were not abstract aspirations. They were grounded, practical and deliverable, and they were supported by an overwhelming coalition of business groups that we met. In short, the proposals we presented were backed by business, because they were good for business and therefore good for our country.
We divided the work into three ambitions: first, to defend our prosperity; secondly, to defend and advance energy co-operation; and, thirdly, to cut the red tape strangling trade at the border.
On security, we proposed a bold new partnership: a joint defence industrial policy, a framework for protecting critical national infrastructure and stronger co-ordination to tackle economic crime. We called for closer co-operation at the World Trade Organisation, including UK participation in the new dispute resolution procedures, because a rules-based order is not just idealism; for us it is insurance. On energy, we saw something extraordinary: an opportunity to unlock the potential of the North sea as the world’s biggest green energy power station. That vision demanded that we come together with the EU to create a single carbon border adjustment mechanism and to connect, again, electricity trading and emissions trading. That could add up to a faster and cheaper path to net zero for both us and our European neighbours.
On trade, we welcomed the Government’s ambition for a deep sanitary and phytosanitary agreement and, indeed, a fair fisheries deal, but we pressed for some specifics: mutual recognition of alternative economic operator schemes; bilateral waivers for safety and security declarations; co-operation around roll-on, roll-off ferries; rejoining the Pan-Euro-Mediterranean convention; mutual recognition of conformity assessments; and a long-term road map for compatible regulation.
On services, we urged His Majesty’s Government to strike a new data adequacy agreement, pursue deeper co-operation on financial services, ensure UK access to Horizon Europe framework programme 10, sort out a new road map for mutual recognition of professional qualifications, reduce the barriers for touring artists, and implement a visa-based, number-capped, age-capped youth experience scheme.
We published our draft report to test it. The response was overwhelming, with support levels of between 80% and 90% for the measures that we proposed. Businesses said, “This is what we need, because it will unlock growth, create jobs and raise wages.”
On Monday, we saw some signs that the Government had listened. We were glad to see progress on security, defence, electricity trading and emissions alignment. There was a new security and defence pact. There was useful language on critical national infrastructure. There was a welcome step towards joining electricity and carbon markets together. There was, however, also much left in the to-do pile. There was no iron-clad commitment to a shared defence industrial policy and there was too little progress on law enforcement co-operation. There was silence on WTO co-operation, although I acknowledge that may come in the trade strategy when it is published. We also thought that there could have been more on financial services co-operation, data adequacy and mutual recognition of conformity assessments.
This is a deal without a date—a handshake, but not yet a contract. None the less, it was an important start. After years of drift and division, this was the first time since Brexit that, collectively, we had the chance to stop digging ditches of grievance and start rebuilding some bridges of co-operation. This was a step forward, but it was only a step. What comes next must be really clear. We must now have a timetable for drawing up, finalising and implementing these agreements. There should be action to take forward the unfinished business, which we have set out in this report. Crucially, we think there should be a bigger role for Parliament, because Parliament should not be a bystander while our future is forged.
Let us not retreat into nostalgia. Let us work pragmatically together in the national interest, because that is how futures are built. We are at our best in this Parliament when we choose to lead, and that is exactly what this relationship now needs. I commend to the House this report and its call to action.