Thursday, 17 September 2020

The Internal Markets Bill

Thank you to the many constituents who have recently got in touch with me regarding the Internal Market Bill.

At the end of the Brexit transition period, the UK will leave the EU single market. The EU legal underpinnings for free trade in goods and services between the four nations will fall away. To prevent new barriers to intra-UK trade from emerging the Government has proposed a new legal framework: the United Kingdom Internal Market Bill.

The aims of the Bill are to provide continuity for businesses and citizens and improve competitiveness and business environment across the UK. The Bill will contribute to general welfare and prosperity in all nations of the UK. A UK internal market will help the UK in reaching international trade agreements and allow the benefits of those agreements to extend to all parts of the UK.

The provisions of the Bill set out general principles for market access and support, affecting trade in goods and services. The UK internal market principles would apply all to nations of the UK equally.

There are several principles within the Bill. I will cover a couple of them.

The first principle means that if a good or service can be legally sold in one part of the UK, then it can be sold in any part of the UK. This is the principle of mutual recognition.

The second principle prevents parts of the UK treating goods coming in from other parts of the UK less favourably than local goods. This is the principle of non-discrimination.

Other principles include the introduction of a unified system for the recognition of professional qualifications across the UK for professions that are regulated by law, the establishment of an independent Office for the Internal Market and a proposal that Restricts UK authorities from using their powers after the transition period in a way that might result in the introduction of checks, controls or administrative processes for goods moving from Northern Ireland to Great Britain.

Importantly for areas of the UK like Cornwall that have previously been in receipt of EU funding, the Bill also creates a new power allowing ministers to provide financial assistance for a wide range of different purposes. This power is intended to be used to replace the funding that the EU currently distributes within the UK. The Bill also contains provisions on government financial assistance and clauses that in effect give the UK Parliament the exclusive right to legislate on how subsidy controls will work in the future.

The Internal Markets Bill is one that will provide the foundation for our internal economy as we move beyond Brexit, and allow the Government to replace EU funding with monies that are better targeted and easier to access than what we have received in the past. It is one that I fully support and I look forward to seeing it pass through Parliament and become law.

To put it in to perspective, last week saw Back British Farming Day, the national day to celebrate our support for British Farmers. I took the opportunity to meet with leading Cornish food producer Riviera Produce, who supply to some of the UK’s major supermarkets. One interesting fact I learned from my visit is that currently Cornish cauliflowers reach 95% of British supermarkets, a really positive example of how our supply chains currently work. This is just one element of our current arrangements that would be disrupted if the EU get their way in the current Brexit negotiations. This why the Government is bringing forward the United Kingdom Internal Market Bill.

Q: Will this end the trade negotiations with the EU? There is no reason why this safety net should undermine the UK’s relationship with our European friends and partners. We are taking the steps that we are in order to ensure that nothing inadvertently compromises our shared commitment to upholding the Belfast (Good Friday) Agreement, and to ensuring that the original intention of the Northern Ireland Protocol is properly implemented. We are confident that that is the EU’s view as well.

Q: Are you deliberately breaking international law? We still want to reach an agreement with the EU that means we don’t need to use this insurance policy. But it is the responsible thing to do so that we can preserve peace in NI and the integrity of the UK. In the event we are not able to reach a deal with the EU, we will have to disapply elements of EU law if they prevent us from either upholding peace in NI or recovering from the economic shock of coronavirus.

Q: Why did you sign up to an agreement with the EU that you knew you were going to break? We signed up to the Northern Ireland Protocol in the belief that the important areas left to the Joint Committee would be resolved satisfactorily in 2020. That may yet happen. But, unfortunately, while both the UK and EU negotiating teams have worked at pace, we have now reached the point where - because we haven’t yet reached a final deal on some of these tricky issues - we have to consider sensible fall back options to ensure the communities of Northern Ireland are protected if agreement isn’t in place by the end of the transition period. We will, of course continue to work with the EU in the Joint Committee to resolve these issues, however – as a responsible Government – we cannot allow the peace process or other essential parts of Government business to inadvertently be compromised by unintended consequences of the protocol.

If you would like to discuss the Bill or any other matter then please do not hesitate to get in touch – cherilyn.mackrory.mp@parliament.uk

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