0:12:15 > 0:12:17APPLAUSE
0:12:30 > 0:12:35Good afternoon and I am grateful to the Lord Mayor and all his team at
0:12:35 > 0:12:39Mansion House for hosting us this afternoon. And in the midst of the
0:12:39 > 0:12:44bad weather, I would like to take a moment before I begin my speech to
0:12:44 > 0:12:48thank everyone in our country who is going the extra mile to help people
0:12:48 > 0:12:52at this time. I think of our emergency services and Armed Forces
0:12:52 > 0:12:58working to keep people safe and all those keeping our public services
0:12:58 > 0:13:02going and the many volunteers who are giving their time to help those
0:13:02 > 0:13:06in need. Your contribution is a special part of who we are as a
0:13:06 > 0:13:11country and it is all the more appreciated at a moment like this. I
0:13:11 > 0:13:17am here today to set out my vision for the future economic partnership
0:13:17 > 0:13:21between the United Kingdom and the European Union. There have been many
0:13:21 > 0:13:25different voices and views in the debate on what our new relationship
0:13:25 > 0:13:30with the EU should look like and I have listened carefully to them all.
0:13:30 > 0:13:36But as we charter way forward with the EU, I want to take a moment to
0:13:36 > 0:13:40look back. 18 months ago, I stood in Downing Street and addressed the
0:13:40 > 0:13:45nation for my first time as Prime Minister. I made this pledge then to
0:13:45 > 0:13:51the people that I serve. I know you are working round the clock, I know
0:13:51 > 0:13:55you are doing your best and I know sometimes late can be a struggle.
0:13:55 > 0:14:01The government I read will be driven, not by the interest of the
0:14:01 > 0:14:04privileged few, but by yours. We will do everything we can to give
0:14:04 > 0:14:07you more control over your lives when we take the big calls we will
0:14:07 > 0:14:14take not more -- of the powerful bot of you. When we look at new laws, we
0:14:14 > 0:14:19will not listen to the mighty but of you. When we look at taxes, we will
0:14:19 > 0:14:24look at the wealthy not you. When it comes to opportunity, we will not
0:14:24 > 0:14:27entrench the advantages of the fortunate few, we will do whatever
0:14:27 > 0:14:33we can to help those whatever your background. We are living through an
0:14:33 > 0:14:38important moment in our country's history. As we leave the European
0:14:38 > 0:14:42Union, we will forge a bold new positive role for ourselves in the
0:14:42 > 0:14:47world and we will make Britain a country that works not for a
0:14:47 > 0:14:53privileged few, but everyone of us. That pledge, to the people of United
0:14:53 > 0:14:58Kingdom, is what guides meet in our negotiations with the EU. And for me
0:14:58 > 0:15:05that means five things - first, the agreement we reached with the EU
0:15:05 > 0:15:09must respect the referendum. It was a vote to take control of our
0:15:09 > 0:15:14borders, laws and money. And a vote for a wider change. So that no
0:15:14 > 0:15:20community in Britain would ever be left behind again. But it was not a
0:15:20 > 0:15:25vote for a distant relationship with our neighbours. Second, the new
0:15:25 > 0:15:30agreement we reach with the EU must endure. After Brexit, both the UK
0:15:30 > 0:15:34and the EU want to forge ahead with building a better future for our
0:15:34 > 0:15:39people. Not find ourselves back at the negotiating table because things
0:15:39 > 0:15:44are broken down. Third, it must protect people's jobs and security.
0:15:44 > 0:15:48People in the UK voted for our country to have a new and different
0:15:48 > 0:15:53relationship with Europe, but while the means may change, our shared
0:15:53 > 0:15:57goals surely have not. To work together, to grow our economies and
0:15:57 > 0:16:03keep our people say. Fourth, it must be consistent with the kind of
0:16:03 > 0:16:10country we want to be as we leave. A modern, open outward looking,
0:16:10 > 0:16:14tolerant European democracy. A nation of pioneers, innovators,
0:16:14 > 0:16:19explorers and creators. A country that celebrates our history and
0:16:19 > 0:16:24diversity, confident of place in the world. That meets its obligations to
0:16:24 > 0:16:29our new neighbours and far friends and is proud to stand up for values.
0:16:29 > 0:16:33And fifth, in doing all of these things, it must strengthen our union
0:16:33 > 0:16:38of nations and their union of people. We must bring our country
0:16:38 > 0:16:42back together, taking into account the views of everyone who cares
0:16:42 > 0:16:47about this issue from both sides of the debate. As Prime Minister, it is
0:16:47 > 0:16:52my duty to represent all of our United Kingdom, England, Scotland
0:16:52 > 0:16:56Wales and Northern Ireland, northern side, from coastal towns and rural
0:16:56 > 0:17:00villages to our great cities. So these are the five tests for the
0:17:00 > 0:17:06deal we will negotiate.
0:17:06 > 0:17:12Reaching an enduring solution, protecting our security and
0:17:12 > 0:17:16respiratory, delivering an outcome that is consistent with the kind of
0:17:16 > 0:17:20country we want to be and bringing our country together, strengthening
0:17:20 > 0:17:26the union of all our people. We are now approaching a crucial moment.
0:17:26 > 0:17:32There is no escaping the complexity of the task ahead of us. We must not
0:17:32 > 0:17:36only negotiate our exit from an organisation that touches so many
0:17:36 > 0:17:43important parts of our national life, we were just build a new and
0:17:43 > 0:17:49lasting relationship, whilst preparing for every scenario. We are
0:17:49 > 0:17:54making real progress. At the end of last year, we agreed the key
0:17:54 > 0:17:59elements of our withdrawal. We are in the process of turning that
0:17:59 > 0:18:03agreement into legal text. We have made clear our concerns about the
0:18:03 > 0:18:10first draft published on Monday. No one should be in any doubt about our
0:18:10 > 0:18:15commitment to the joint report in December. We are close to an
0:18:15 > 0:18:18agreement on an implementation period, a key element of December's
0:18:18 > 0:18:24deal. Of course, some points of difference remained but I am
0:18:24 > 0:18:30confident these can be resolved in the days ahead. Both the UK and the
0:18:30 > 0:18:34European Union are clear, this implementation period must be time
0:18:34 > 0:18:41limited and cannot become a permanent solution. It is vital to
0:18:41 > 0:18:45give Government, businesses and citizens the time we need to prepare
0:18:45 > 0:18:50for the new relationship. With this agreed, I want both sides to turn
0:18:50 > 0:18:54all our attention and effort to the new relationship. Before we can do
0:18:54 > 0:19:00that, we need to set out in more detail what relationship we want,
0:19:00 > 0:19:07building on my Lancaster house and Florence speeches. Last month, this
0:19:07 > 0:19:12book in Munich about the partnership we seek and I want to talk about the
0:19:12 > 0:19:16other pillar of the relationship, how we built the economic
0:19:16 > 0:19:21partnership. In my speech in Florence I set out how the models
0:19:21 > 0:19:25for economic partnership do not deliver the ambition we need or
0:19:25 > 0:19:31impose restraints on our democracy. For example, the Norway model where
0:19:31 > 0:19:37we would stay in the single market would mean having to implement new
0:19:37 > 0:19:40legislation automatically and in its entirety and would also mean
0:19:40 > 0:19:45continued free movement. Others have suggested we negotiate a free-trade
0:19:45 > 0:19:53agreement similar to that of which Canada has negotiated or trade on
0:19:53 > 0:19:58world organisation terms. This would mean a reduction in and access to
0:19:58 > 0:20:03each other's markets. This would mean customs and checks at the
0:20:03 > 0:20:11border that would affect the supply chains and be inconsistent with the
0:20:11 > 0:20:16commitments that we and the EU have made in respect of Northern Ireland.
0:20:16 > 0:20:20This is a wider issue in our negotiations and I want to dwell on
0:20:20 > 0:20:27this for one minute. Success at -- British governments have worked with
0:20:27 > 0:20:33parties in the Northern Ireland and Irish Government to bring about the
0:20:33 > 0:20:36achievement of peace. This is an achievement that we should be proud
0:20:36 > 0:20:41of and protect. That is why I have consistently put up holding the
0:20:41 > 0:20:48Belfast agreement at the heart of the UK's approach. Our departure
0:20:48 > 0:20:51from the EU causes challenges for Northern Ireland and for Ireland. We
0:20:51 > 0:20:56joined the EU together 45 years ago and it is not surprising that our
0:20:56 > 0:21:00decision to leave has caused anxiety and a desire for concrete solutions.
0:21:00 > 0:21:08We have been clear all along that we do not want to go back to a hard
0:21:08 > 0:21:11order in Ireland, we have ruled out physical infrastructure at the
0:21:11 > 0:21:15border or any related checks and controls. It is not good enough to
0:21:15 > 0:21:19say, we will not introduce a hard order, if the EU forces Ireland to
0:21:19 > 0:21:24do it, it is down to them. We chose to leave you have a responsibility
0:21:24 > 0:21:30to help find a solution. We cannot do it on our own. It is for all of
0:21:30 > 0:21:34us to work together. The Irish Prime Minister I agreed that our teams and
0:21:34 > 0:21:40the commission should do just that. I want to make one final point. Just
0:21:40 > 0:21:44as it would be unacceptable to go back to a hard order between
0:21:44 > 0:21:48Northern Ireland and Ireland, it would also be unacceptable to break
0:21:48 > 0:21:58up the United Kingdom's own market. My personal commitment to this is
0:21:58 > 0:22:04clear. As Prime Minister of the cold United Kingdom, I am not going to
0:22:04 > 0:22:08let our departure from the European Union do anything to set back the
0:22:08 > 0:22:13historic progress that we have made in Northern Ireland, nor will I
0:22:13 > 0:22:19allow anything that would damage the integrity of our precious union. So
0:22:19 > 0:22:24existing models to not provide the best way forward for either the UK
0:22:24 > 0:22:30or the EU. But before I turned to what a better model might look like,
0:22:30 > 0:22:35I want to be straight with people. The reality is that we all need to
0:22:35 > 0:22:40face up to some hard facts. We are leaving the single market. Life is
0:22:40 > 0:22:44going to be different. In certain ways our access to each other's
0:22:44 > 0:22:49markets will be less than now. How could the EU structure of rights and
0:22:49 > 0:22:54obligations be sustained if the UK, or any country, were allowed to
0:22:54 > 0:22:58enjoy all the benefits without all of the obligations? We need to
0:22:58 > 0:23:02strike a new balance, but we will not accept the rights of Canada and
0:23:02 > 0:23:09the obligations of Norway. The second hard fact is that even after
0:23:09 > 0:23:14we have left the jurisdiction of the European Court of Justice, EU law
0:23:14 > 0:23:18and the decisions will continue to affect us. For a start, agreements
0:23:18 > 0:23:28are determined whether EU laws are legal under the EU law, as the US
0:23:28 > 0:23:32found in the data framework was found to be invalid. When we leave
0:23:32 > 0:23:37the EU, the withdrawal bill will bring EU law into UK law. Cases will
0:23:37 > 0:23:42be determined in our courts, but where appropriate, our courts will
0:23:42 > 0:23:48continue to listen to the judgments, as they do for the other country's
0:23:48 > 0:23:53courts. If, as part of our future partnership, Parliament passes and
0:23:53 > 0:23:58identical law to the EU law, it may make sense for our courts to look at
0:23:58 > 0:24:07the appropriate each see J judgments. As I said before, if we
0:24:07 > 0:24:11continue to participate in an agency, we would have two respect
0:24:11 > 0:24:19the remit in that regard. In the future, the treaties and lot will no
0:24:19 > 0:24:23longer apply in the United Kingdom. The agreement we reach must
0:24:23 > 0:24:29therefore respect the sovereignty of both the UK and the EU legal orders.
0:24:29 > 0:24:35That means the jurisdiction of the European Court of Justice must end.
0:24:35 > 0:24:40It also means the ultimate arbiter of disputes about our future
0:24:40 > 0:24:45partnership cannot be the court of either party. The next hard fact is
0:24:45 > 0:24:51this, if we want good access to markets, it has to be on fair terms.
0:24:51 > 0:24:54As with any trade agreement, we must accept the need for binding
0:24:54 > 0:25:01commitments, we may choose to have regulations such as state aid and
0:25:01 > 0:25:05competition to remain in step with the EU. The UK drove much of the
0:25:05 > 0:25:10policy in this area and we have much to gain from maintaining discipline
0:25:10 > 0:25:14is on the use of subsidies and anti-competitive practices.
0:25:14 > 0:25:20Furthermore, as I said and Florence, we share the same set of beliefs,
0:25:20 > 0:25:23free trade, rigorous and fair competition, strong consumer rights
0:25:23 > 0:25:29and that trying to beat other industries by unfairly subsidising
0:25:29 > 0:25:361's own is the serious and state. In other areas, worker rights and the
0:25:36 > 0:25:39environment, the EU should be confident that we will not engage in
0:25:39 > 0:25:44a race to the bottom in the standards we set. There is no
0:25:44 > 0:25:46serious constituency in the UK that would support this, quite the
0:25:46 > 0:25:52opposite. Finally, we need to resolve the tensions between some of
0:25:52 > 0:25:55the key objectives. We want the freedom to negotiate trade
0:25:55 > 0:25:58agreements with other countries around the world, we want to take
0:25:58 > 0:26:04back control of our laws, we also want as frictionless a border as
0:26:04 > 0:26:08possible between us and the EU, so that we do not damage the integrated
0:26:08 > 0:26:14supply chains are industries rely on and no hard border between Northern
0:26:14 > 0:26:18Ireland and Ireland. There are tensions in the EU's position, too.
0:26:18 > 0:26:23Some hard facts for them to face as well. The commission has suggested
0:26:23 > 0:26:28that the only option available to the UK is an off the shelf model.
0:26:28 > 0:26:35But at the same time, they have also said that in certain areas none of
0:26:35 > 0:26:39the EU third country agreements would be appropriate. The European
0:26:39 > 0:26:43Council guidelines aspire to a balanced, ambitious and wide ranging
0:26:43 > 0:26:48deal with common rules any number of areas to insure fair and open
0:26:48 > 0:26:51competition. This would not be delivered by a Canada style deal,
0:26:51 > 0:26:55which would not give them the breadth or depth of market access
0:26:55 > 0:27:01that they want, and it is hard to see how it would be in the EU's
0:27:01 > 0:27:04interest for the UK regulatory standards to be the same as Canada.
0:27:04 > 0:27:09Finally, we both need to face the fact that this is in negotiation and
0:27:09 > 0:27:14neither of us can have exactly what we want. But I am confident that we
0:27:14 > 0:27:21can reach agreement. We both want good access to each other's markets,
0:27:21 > 0:27:26but competition to be fair and open and transparent means of verifying
0:27:26 > 0:27:31we are meeting our commitment and resolving disputes. What is clear is
0:27:31 > 0:27:36that for us both to meet our objectives, we need to look beyond
0:27:36 > 0:27:41the President and find a new balance. As an security, what I am
0:27:41 > 0:27:47seeking is a relationship that goes beyond the transactional to one
0:27:47 > 0:27:53where we support each other's interest. I want the broadest and
0:27:53 > 0:27:56deepest partnership, covering more sectors and cooperating more freely
0:27:56 > 0:28:01than any free trade agreement anywhere in the world today. As I
0:28:01 > 0:28:05will go on to describe, we will need agreements in a range of areas
0:28:05 > 0:28:09covering the breadth of our relationship. I believe this is
0:28:09 > 0:28:14achievable because it is in their interest as well as ours. The EU is
0:28:14 > 0:28:19the UK's biggest market and the UK is also a big market for the EU.
0:28:19 > 0:28:24Furthermore, we have a unique starting point. We are on day one we
0:28:24 > 0:28:30have the same laws and rules. -- on day one. Rather than being laws
0:28:30 > 0:28:34closer together, the task would be to manage the religion ship when we
0:28:34 > 0:28:38are to separate the good systems. To do so and to realise this level of
0:28:38 > 0:28:43ambition, there are five ambitions that must underpin the trading
0:28:43 > 0:28:49relationship. First, our agreement must have binding commitments to
0:28:49 > 0:28:52ensure fair competition. Such agreements are pass and parcel of
0:28:52 > 0:28:58any trade agreement. Why would any country enter into a partnership
0:28:58 > 0:29:05that any means of redress if the other party engaged in such
0:29:05 > 0:29:10practices. The level of integration and our geographical proximity means
0:29:10 > 0:29:16these reciprocal commitments will be important in ensuring the UK
0:29:16 > 0:29:21business can compete fairly in EU markets and vice versa. A deep and
0:29:21 > 0:29:25comprehensive agreement with the EU will need to include commitments
0:29:25 > 0:29:31reflecting the extent the UK and EU economies are intertwined. Second,
0:29:31 > 0:29:37we will need an arbitration mechanism that is completely
0:29:37 > 0:29:40independent, something which is common to free trade agreements.
0:29:40 > 0:29:44This will ensure any disagreements about the purpose or scope of the
0:29:44 > 0:29:49agreement can be resolved fairly and promptly. Third, given the close
0:29:49 > 0:29:52relationship we envisage, we will need to have an ongoing dialogue
0:29:52 > 0:29:56with the EU and to ensure we have the means to consult each other
0:29:56 > 0:30:01regularly. In particular, we want to make sure our regulators work
0:30:01 > 0:30:05together, as they do with regulators internationally. This will be
0:30:05 > 0:30:08essential for everything from getting new drugs to patients
0:30:08 > 0:30:14quickly, Jim and taming financial stability. We start from the place
0:30:14 > 0:30:18where we have deep and long-standing relationships so the task is and
0:30:18 > 0:30:23taming that trust, not building it in the first place. Fourth, we will
0:30:23 > 0:30:28need an arrangement for data protection. I made this point in
0:30:28 > 0:30:33Munich but the free flow of data is critical for both sides in any
0:30:33 > 0:30:37modern trading relationship, too. The UK has exceptionally high
0:30:37 > 0:30:41standards of data protection and we want to secure an agreement with the
0:30:41 > 0:30:47EU that provides the stability and confidence for EU and UK businesses
0:30:47 > 0:30:51and individuals to achieve our aims and then taming and developing the
0:30:51 > 0:30:55strong economic links with the EU. That is why we will be seeking more
0:30:55 > 0:31:00than just an adequacy arrangement and when to seek an appropriate
0:31:00 > 0:31:05ongoing role for the commission office. This will ensure UK
0:31:05 > 0:31:09businesses are effectively represented under the new one-stop
0:31:09 > 0:31:14shop mechanism for resolving data protection disputes.
0:31:14 > 0:31:19Fifth, we must maintain the links between our people. EU citizens are
0:31:19 > 0:31:23an integral part of the economic, cultural and social fabric of our
0:31:23 > 0:31:27country. I know UK nationals are viewed in the same way by
0:31:27 > 0:31:31communities across the EU, and this is why, at every stage of these
0:31:31 > 0:31:35negotiations, I have put the interests of EU citizens and UK
0:31:35 > 0:31:40nationals at the heart of our approach. We are clear that as we
0:31:40 > 0:31:44leave the EU, free movement of people will come to an end, and we
0:31:44 > 0:31:49will control the number of people who come to live in our country. But
0:31:49 > 0:31:53UK citizens will still want to work and study in EU countries, just as
0:31:53 > 0:31:58EU citizens will want to do the same here, helping to shape and drive
0:31:58 > 0:32:02growth, innovation and enterprise. Indeed, businesses across the EU and
0:32:02 > 0:32:08the UK must be able to attract and employ the people they need, and we
0:32:08 > 0:32:11are open to discussing how to facilitate these valuable links.
0:32:11 > 0:32:17Reciprocal commitments to ensure fair and open competition and
0:32:17 > 0:32:20independent arbitration mechanism, ongoing dialogue, data protection
0:32:20 > 0:32:23arrangements and maintaining the links between our people. These are
0:32:23 > 0:32:28the foundations that underpinned the ambition of this unique and
0:32:28 > 0:32:30unprecedented partnership. It will then need to be tailored to the
0:32:30 > 0:32:35needs of our economies. This follows the approach the EU has taken with
0:32:35 > 0:32:41its trade agreements in the past, and indeed with its own single
0:32:41 > 0:32:50market as it has developed. The EU's agreement with Ukraine CZ align with
0:32:50 > 0:32:57the UK in some but not others,, whereas the agreement with Canada is
0:32:57 > 0:33:00not extend to camels. Equally, the Canadian agreement contains
0:33:00 > 0:33:08provisions to recognise each other's testing machinery, but with South
0:33:08 > 0:33:12Korea does not. The EU was taking a tailored approach in what it is
0:33:12 > 0:33:16seeking within the UK. For example, on fisheries, the commission has
0:33:16 > 0:33:22been clear that no precedents exist for the sort of access it wants from
0:33:22 > 0:33:27the UK. The fact is that every free-trade agreement as varying
0:33:27 > 0:33:31market access depending on the respective interests of the
0:33:31 > 0:33:35countries involved. If this is cherry picking, then every trade
0:33:35 > 0:33:40arrangement is cherry picking. Moreover, with all its neighbours,
0:33:40 > 0:33:46the EU has burying levels of access to the single market, depending on
0:33:46 > 0:33:49the obligations those neighbours are willing to undertake. What would be
0:33:49 > 0:33:54cherry picking would be if we were to seek a deal where our rights and
0:33:54 > 0:33:58obligations were not held in balance. I have been categorically
0:33:58 > 0:34:03clear that that is not what we are going to do. I think it is pragmatic
0:34:03 > 0:34:06common sense that we should work together to deliver the best outcome
0:34:06 > 0:34:12for both sides. So let me start with how we will do this for goods. This
0:34:12 > 0:34:16is the area where the single market is most established and both the UK
0:34:16 > 0:34:20and EU have a strong commercial interest in preserving integrated
0:34:20 > 0:34:26supply chains that have built up over 40 years of membership. When it
0:34:26 > 0:34:30comes to goods, a fundamental principle in our negotiating
0:34:30 > 0:34:34strategy should be that trade at the UK-EU border should be as
0:34:34 > 0:34:37frictionless as possible. That means we don't want to see the
0:34:37 > 0:34:42introduction of any tariffs or quotas, and as the Secretary of
0:34:42 > 0:34:45State for Exiting the European Union set out in Vienna last week, we must
0:34:45 > 0:34:49ensure that, as now, product only needs to undergo one series of
0:34:49 > 0:34:53approvals in one country to show that they meet the required
0:34:53 > 0:34:56regulatory standards. To achieve this, we will need a comprehensive
0:34:56 > 0:35:00system of mutual recognition. The UK will need to make a strong
0:35:00 > 0:35:05commitment that it regulatory standards will remain as high as the
0:35:05 > 0:35:10EU's. That commitment, in practice, will mean that the readily to be
0:35:10 > 0:35:15standards will remain substantially similar in the future. Many of these
0:35:15 > 0:35:19regulatory standards are themselves underpinned by international
0:35:19 > 0:35:23standards, set by non-EU bodies, of which we will remain a member, such
0:35:23 > 0:35:28as the UN economic commission for Europe, which sets vehicle safety
0:35:28 > 0:35:32standards. Countries around the world, including Turkey, South
0:35:32 > 0:35:36Africa, South Korea, Japan and Russia, are party to the agreement.
0:35:36 > 0:35:41As I said in my speech in Florence, this could be cheered in different
0:35:41 > 0:35:47ways. Our default is that UK law may not necessarily be identical to EU
0:35:47 > 0:35:52law, but it should achieve the same outcome. In some cases, parliament
0:35:52 > 0:35:57might choose to pass an identical law. Businesses which export to the
0:35:57 > 0:36:00EU tell us that it is strongly in their interest to have a single set
0:36:00 > 0:36:05of regulatory standards to allow them to sell into both markets. If
0:36:05 > 0:36:09the parliament of the day decided not to achieve the same outcomes as
0:36:09 > 0:36:14EU law, it would be in the knowledge that there may be consequences for
0:36:14 > 0:36:16market access. And there would need to be an independent mechanism to
0:36:16 > 0:36:22oversee these arrangements. We will also want to explore with the EU the
0:36:22 > 0:36:26terms on which the UK could remain part of EU agencies such as those
0:36:26 > 0:36:30which are critical for the
0:36:30 > 0:36:32chemicals, medicines and aerospace industries. The European medicines
0:36:32 > 0:36:36agency, the European chemicals agency, and the European Aviation
0:36:36 > 0:36:40Safety Agency. We would, of course, accept this would mean abiding by
0:36:40 > 0:36:44the rules of those agencies and making an appropriate financial
0:36:44 > 0:36:47contribution. But I want to explain what I believe the benefits of this
0:36:47 > 0:36:55approach could be, both for us and the EU. First, associate membership
0:36:55 > 0:36:58is the only way to meet our objective of ensuring that these
0:36:58 > 0:37:00product only needs to undergo one series of approvals in one country.
0:37:00 > 0:37:04Second, these agencies have a critical role in setting and
0:37:04 > 0:37:08enforcing relevant rules. And if we were able to negotiate associate
0:37:08 > 0:37:10membership, we would be able to ensure that we could continue to
0:37:10 > 0:37:16provide our technical expertise. Third, associate mannish the ship
0:37:16 > 0:37:21could permit UK firms to resolve certain challenges related to the
0:37:21 > 0:37:25agency through UK courts, rather than the ECJ. -- associate
0:37:25 > 0:37:30membership. In the case of Switzerland, associate membership of
0:37:30 > 0:37:32the European Aviation Safety Agency means that air worthiness
0:37:32 > 0:37:36certifications are granted by its own aviation authority, and disputes
0:37:36 > 0:37:40are resolved through its courts, without its membership Swiss
0:37:40 > 0:37:44airlines would need to gain certification through another member
0:37:44 > 0:37:49state or through the agency, and any dispute would need to be resolved
0:37:49 > 0:37:53through the ECJ. Fourth, it would bring other benefit too. For
0:37:53 > 0:37:57example, membership of the medicines agency would mean investment in new
0:37:57 > 0:38:01innovative medicines continuing in the UK, and it would mean these
0:38:01 > 0:38:05medicines getting to patients faster as firms prioritise larger markets
0:38:05 > 0:38:09when they start the lengthy process of seeking authorisations. But it
0:38:09 > 0:38:14would also be good for the EU, because the UK regulator assesses
0:38:14 > 0:38:20more new medicines than any other member state. And the EU would
0:38:20 > 0:38:26continue to access the expertise of the UK's world leading universities.
0:38:26 > 0:38:31And, of course, parliament would remain ultimately sovereign. It
0:38:31 > 0:38:34could decide not to accept these rules, but with consequences for our
0:38:34 > 0:38:38membership of the relevant agency, and linked market access rights.
0:38:38 > 0:38:46Lastly, to achieve as frictionless a border as possible, and to achieve,
0:38:46 > 0:38:51avoid a hard border, sorry, let me but what I mean that, to avoid a
0:38:51 > 0:38:55hard border between Northern Ireland and Ireland, we also need an
0:38:55 > 0:38:58agreement on customs. The UK has been clear it is leaving the customs
0:38:58 > 0:39:05union. The EU has also formed a customs union with other countries,
0:39:05 > 0:39:10but those arrangements, if applied to the UK, would mean the EU setting
0:39:10 > 0:39:14the UK's external tariffs, being able to let other countries sell
0:39:14 > 0:39:18more into the UK, without making it any easier for us to sell more to
0:39:18 > 0:39:22them, all the UK signing up to the common commercial policy. That would
0:39:22 > 0:39:26not be compatible with a meaningful independent trade policy. It would
0:39:26 > 0:39:33mean we have less control than we do now of our trade in the world.
0:39:33 > 0:39:36Neither Leave nor Remain voters would want that. So we have thought
0:39:36 > 0:39:40seriously about how our commitment to a frictionless border can best be
0:39:40 > 0:39:45delivered, and last year we set out two potential options for our
0:39:45 > 0:39:49customs arrangements. Option one is a customs partnership between the UK
0:39:49 > 0:39:54and the EU. At the border, the UK would mirror the EU requirements for
0:39:54 > 0:39:57imports from the rest of the world, applying the same tariffs in the
0:39:57 > 0:40:02same rules of origin as the EU for those goods arriving in the UK and
0:40:02 > 0:40:06intended for the EU. By following this approach, all goods entering
0:40:06 > 0:40:12the EU by the UK would pay the right EU duties, removing the need for
0:40:12 > 0:40:17customs processes at the UK-EU border. But, importantly, we would
0:40:17 > 0:40:22put in place a mechanism so that the UK would also be able to apply its
0:40:22 > 0:40:26own tariffs and trade policy for goods intended for the UK market. As
0:40:26 > 0:40:30we have set out previously, this would require the means to ensure
0:40:30 > 0:40:35that both sides can trust the system and robust enforcement mechanisms.
0:40:35 > 0:40:39Option two would be a highly streamlined customs arrangements,
0:40:39 > 0:40:42where we would jointly agreed to implement a range of measures to
0:40:42 > 0:40:46minimise friction is to trade, together with some specific
0:40:46 > 0:40:49provisions for Northern Ireland. First, measures to ensure the
0:40:49 > 0:40:52requirements for moving goods across borders are as simple as possible.
0:40:52 > 0:40:56This means we should continue to waive the requirement for entry and
0:40:56 > 0:41:08exit declarations for goods moving between the UK and the EU, and we
0:41:08 > 0:41:11should allow goods moving between the UK and the rest of the world to
0:41:11 > 0:41:14travel through the EU without paying EU duty is, and vice versa. Second,
0:41:14 > 0:41:16measures to reduce delays at ports and airports, for instance
0:41:16 > 0:41:18recognising trusted traders schemes and drawing on the most advanced IT
0:41:18 > 0:41:23solution so that vehicles do not need to stop at the border. Third,
0:41:23 > 0:41:26we should continue our coverage and to mitigate customs duty and
0:41:26 > 0:41:32security risks. -- our corporation. And fourth, measures to reduce the
0:41:32 > 0:41:37cost and burden of complying with customs requirements, including by
0:41:37 > 0:41:40maximising the use of automation. And recognising the unique
0:41:40 > 0:41:43circumstances in Northern Ireland and our shared commitments to
0:41:43 > 0:41:48avoiding a hard border, we should consider further specific measures.
0:41:48 > 0:41:5480% of north-south trade is carried out by micro, small and medium-sized
0:41:54 > 0:41:59businesses, so for smaller traders, who as members of the community are
0:41:59 > 0:42:02most affected, but whose economic role is not systemically significant
0:42:02 > 0:42:07for the EU market, we would allow them to continue to operate as they
0:42:07 > 0:42:11do currently, with no new restrictions. And for larger
0:42:11 > 0:42:14traders, we would introduce streamlined processes, including a
0:42:14 > 0:42:18trusted traders scheme that would be consistent with our commitments.
0:42:18 > 0:42:23Both of these options for our future customs arrangement would leave the
0:42:23 > 0:42:27UK free to determine its own tariffs with third countries, which would
0:42:27 > 0:42:33simply not be possible in a customs union. Now, I recognise that some of
0:42:33 > 0:42:38these ideas depend on technology, robust systems to ensure trust and
0:42:38 > 0:42:41confidence, as well as goodwill. But they are serious and merit
0:42:41 > 0:42:46consideration by all sides. So to conclude on goods, a fundamental
0:42:46 > 0:42:50principle in our negotiating strategy is that trade at the UK-EU
0:42:50 > 0:42:56border should be as frictionless as possible with no hard border between
0:42:56 > 0:42:59Northern Ireland and Ireland. We believe this can be achieved via a
0:42:59 > 0:43:03commitment to ensure that the relevant UK regulatory standards
0:43:03 > 0:43:09remain at least as high as the EU's and a customs arrangement. We
0:43:09 > 0:43:12recognise this would constrain our ability to lower regulatory
0:43:12 > 0:43:16standards for industrial goods, but in practice we are unlikely to want
0:43:16 > 0:43:20to reduce our standards, not least because the British public would
0:43:20 > 0:43:24rightly punish any government that did so at the ballot box. This
0:43:24 > 0:43:28approach to trade in goods is important for agriculture, food and
0:43:28 > 0:43:33drinks, but other considerations also apply there. We are leaving the
0:43:33 > 0:43:36Common Agricultural Policy and will want to take the opportunity that
0:43:36 > 0:43:41brings to reform our agriculture and fisheries management. The UK has
0:43:41 > 0:43:44among the highest environmental and animal welfare standards of any
0:43:44 > 0:43:50nation on earth. As we leave the EU, we will uphold environmental
0:43:50 > 0:43:55standards and go further to protect our shared natural heritage. And I
0:43:55 > 0:44:00fully expect that our standards will remain at least as high as the EU's,
0:44:00 > 0:44:04but it will be particularly important to secure flexibility
0:44:04 > 0:44:07there, to ensure we can make the most of the opportunities presented
0:44:07 > 0:44:13by our withdrawal from the EU for our farmers and exporters. We are
0:44:13 > 0:44:18also leaving the Common Fisheries Policy. The UK will regain control
0:44:18 > 0:44:22of our domestic fisheries management rules and access to our waters. But
0:44:22 > 0:44:27as part of our economic partnership, we will want to continue to work
0:44:27 > 0:44:30together to manage shared stocks in a sustainable way, and to agree
0:44:30 > 0:44:35reciprocal access to water is and a fair allocation for fishing
0:44:35 > 0:44:40opportunities for the UK fishing industry. And we will also wants to
0:44:40 > 0:44:44ensure open markets for each other's products. Just as our partnership in
0:44:44 > 0:44:51goods needs to be deeper than any other free trade agreement, so in
0:44:51 > 0:44:54services we have the opportunity to break new ground with a broader
0:44:54 > 0:44:59agreements than ever before. We recognise that certain aspects of
0:44:59 > 0:45:04trade in services linked to the single market and therefore market
0:45:04 > 0:45:07access in these areas will need to be different. But we should only and
0:45:07 > 0:45:10eye out new barriers to be introduced where absolutely
0:45:10 > 0:45:14necessary. -- only allow new barriers. We don't want to
0:45:14 > 0:45:18disseminate against EU service providers in the UK, and we wouldn't
0:45:18 > 0:45:22want EU to discriminate against UK providers. We want to limit the
0:45:22 > 0:45:25number of barriers that could prevent UK firms from setting up in
0:45:25 > 0:45:30the EU and vice versa, and agree appropriate labour mobility
0:45:30 > 0:45:34frameworks which enables UK businesses and the self-employed
0:45:34 > 0:45:39professionals to travel to the EU to provide services to clients in
0:45:39 > 0:45:42person, and that allows UK businesses to provide services to
0:45:42 > 0:45:46the EU over the phone or the inter-net. And we want to do the
0:45:46 > 0:45:54same for EU firms providing services to the UK.
0:45:54 > 0:46:00It would make sense to continue to recognise qualifications in the
0:46:00 > 0:46:04future. There are two areas which have never been covered in a
0:46:04 > 0:46:08free-trade agreement and any meaningful way before, broadcasting
0:46:08 > 0:46:15and, despite the EU's best efforts in the Transatlantic Trade and
0:46:15 > 0:46:17Investment Partnership, financial services. We have ideas how we can
0:46:17 > 0:46:23do this and it is in our interests to explore these. On broadcasting,
0:46:23 > 0:46:27we recognise we cannot have the same arrangements with the EU as we do
0:46:27 > 0:46:31now. Currently, because of the country of origin principle, the
0:46:31 > 0:46:37company based in the UK can be broadcast into any EU state and vice
0:46:37 > 0:46:43versa. The relevant directive will not apply to the UK as we leave the
0:46:43 > 0:46:47EU, and replying on presidents will hurt businesses on both sides. The
0:46:47 > 0:46:52UK creative hub leads to the development of products that
0:46:52 > 0:46:59European and tumours want. The UK currently resides 35% of the
0:46:59 > 0:47:07channels available in the EU. There are 35 channels and OnDemand
0:47:07 > 0:47:13services which are offered in the UK the licensed in the EU. We should
0:47:13 > 0:47:18explore creative options with an open mind, including mutual
0:47:18 > 0:47:22recognition, allowing for Frontier broadcasting, recognising the
0:47:22 > 0:47:30enriching role that UK broadcasters play in British but more broadly in
0:47:30 > 0:47:33our common European culture. On financial services, the Chancellor
0:47:33 > 0:47:37will be setting out next week have financial services can and should be
0:47:37 > 0:47:42part of the deep and comprehensive partnership. We're not looking per
0:47:42 > 0:47:45passport in because we know this is intrinsic to the single market, of
0:47:45 > 0:47:51which we will longer be a member. It will require us to be part of a
0:47:51 > 0:47:57single rule book of which we will have no say. The UK has
0:47:57 > 0:48:01responsibility for the financial stability of the world's most
0:48:01 > 0:48:05significant financial centre and our taxpayers bear the risk. It would be
0:48:05 > 0:48:09unrealistic for us to implement new legislation automatically and in its
0:48:09 > 0:48:16entirety. But with UK located banks underwriting around half of the debt
0:48:16 > 0:48:22and equity issued the EU companies, and providing more than £1.1
0:48:22 > 0:48:27trillion of cross-border lending to the rest of the EU in 2015 alone,
0:48:27 > 0:48:31this is a clear example of only looking at President would hurt both
0:48:31 > 0:48:38the UK and economies. As in other areas of the partnership, our goal
0:48:38 > 0:48:45should be to establish the ability to reach each other's markets, based
0:48:45 > 0:48:52on maintaining the same regulatory outcomes over time. The consequences
0:48:52 > 0:48:59whether or not maintained. Given the high rate regulated nature of
0:48:59 > 0:49:04financial services and our desire to avoid risks, we would need a
0:49:04 > 0:49:09framework that is reciprocal, mutually agreed and permanent and
0:49:09 > 0:49:14therefore liable for businesses. There are many other areas with the
0:49:14 > 0:49:18UK and EU economies are closely linked, including energy, transport,
0:49:18 > 0:49:25digital, Law, science, education and culture. On energy, we want to
0:49:25 > 0:49:30secure broad energy cooperation with the EU. This includes protecting the
0:49:30 > 0:49:33Single Electricity Market across Northern Ireland and Ireland, and
0:49:33 > 0:49:37exploring options for the continued participation in the EU internal
0:49:37 > 0:49:42market. We also believe it is a benefit for both sides for the UK to
0:49:42 > 0:49:49have a close association with... On transport, we want to ensure the
0:49:49 > 0:49:53continuity of real and maritime services and the rights of road
0:49:53 > 0:49:59hauliers to reach the EU market, and vice versa. On Digital, the UK will
0:49:59 > 0:50:02not be part of the EU's digital single market, which will continue
0:50:02 > 0:50:07to develop after our withdrawal from the EU. This is a fast evolving
0:50:07 > 0:50:13innovative sector in which the UK is a world leader. It will be
0:50:13 > 0:50:20particularly important to have domestic flexibility, to ensure the
0:50:20 > 0:50:24regulatory environment can respond to new environments. We want our
0:50:24 > 0:50:31agreement to cover cooperation, with the EU has shown it can reach
0:50:31 > 0:50:38agreement with non-member states, through the Ricardo convention. Our
0:50:38 > 0:50:42agreement will also be to cover company law and intellectual
0:50:42 > 0:50:48property, to provide legal certainty and coherence. The UK is also
0:50:48 > 0:50:53committed to establishing a far reaching science and innovation pact
0:50:53 > 0:50:56with the EU, facilitating the exchange of ideas and researchers.
0:50:56 > 0:51:02This will allow the UK to participate in key programmes
0:51:02 > 0:51:05alongside our EU partners. They want to take a similar approach to
0:51:05 > 0:51:11education and culture, to promote our shared values and enhance our
0:51:11 > 0:51:14intellectual strength in the world, again making an ongoing contribution
0:51:14 > 0:51:19to cover our fair share of the costs involved. In all of these areas,
0:51:19 > 0:51:23bald and creative thinking can deliver new agreements that are for
0:51:23 > 0:51:32the very best for our people, and across the EU. In the face of a
0:51:32 > 0:51:36worrying rise of protectionism, I believe such agreements can let us
0:51:36 > 0:51:42set an example to the world. For the world is watching. We should not
0:51:42 > 0:51:47think of is leaving the EU as marking and ending, as much as a new
0:51:47 > 0:51:52beginning for the United Kingdom and our relationship with our European
0:51:52 > 0:51:57allies. Change is not to be feared, so long we face it with a
0:51:57 > 0:52:03clear-sighted determination to act for the common good. Nor is Brexit
0:52:03 > 0:52:08an end in itself. Rather, it must be the means for which we reaffirm
0:52:08 > 0:52:13Britain's place in the world and renew the ties that bind us here at
0:52:13 > 0:52:18home. And I know that the United Kingdom can emerge from this process
0:52:18 > 0:52:22is stronger and workers use of nation. The United Kingdom which is
0:52:22 > 0:52:27a cradle for innovation, a leader in the industries of the future, a
0:52:27 > 0:52:33champion of free trade based on high standards, a moderate, outward
0:52:33 > 0:52:36looking, tolerant country, proud of our values and confident of our
0:52:36 > 0:52:40place in the world. This is an optimistic and confident future
0:52:40 > 0:52:46which can unite us all, a global Britain which thrives in the world
0:52:46 > 0:52:50by forging a bold and comprehensive economic partnership with our
0:52:50 > 0:52:55neighbours in the EU and reaches out beyond our continent to trade with
0:52:55 > 0:53:01nations across the globe. The approach I have set up to date would
0:53:01 > 0:53:05implement the referendum result, provide an enduring solution,
0:53:05 > 0:53:07protect our security and respiratory, help us build the kind
0:53:07 > 0:53:13of country we want to be and bring our country together by commanding
0:53:13 > 0:53:17the confidence of those who voted leave and those who voted remain. It
0:53:17 > 0:53:21is an approach to deliver for the whole of our United Kingdom and our
0:53:21 > 0:53:26wider family of overseas territories. I am in no doubt that
0:53:26 > 0:53:33whatever agreement we reach with the EU, our future is bright. The
0:53:33 > 0:53:35stability and continuity of centuries of self-government, our
0:53:35 > 0:53:40commitment to freedom under the rule of law, our belief in enterprise and
0:53:40 > 0:53:45innovation, but above all, the talent and genius of all our people
0:53:45 > 0:53:49and especially our young people at the seeds of our success in the
0:53:49 > 0:53:53future, as they have been the
0:53:53 > 0:53:57guarantors of our success in the past. I look forward to discussing
0:53:57 > 0:54:00our future partnership with our European friends, because although
0:54:00 > 0:54:07we are leaving the EU, and in that regard we will become separate, we
0:54:07 > 0:54:12are all still European and will stay linked by the many Thais and values
0:54:12 > 0:54:16we have in common. And because it is only by working together we will
0:54:16 > 0:54:22find solution that work for all our people. -- the many ties. Yes, there
0:54:22 > 0:54:26will be ups and downs in the months ahead. No one will get everything
0:54:26 > 0:54:31they want, we will not be buffeted by the demands to talk tough or
0:54:31 > 0:54:37threaten a wok out, just as we will not accept the councils of the spear
0:54:37 > 0:54:41that this cannot happen. We will move forward with calm and patient
0:54:41 > 0:54:45discussion of the positions. It is my responsibility of Prime Minister
0:54:45 > 0:54:50to provide that leadership for our country at this time. By following
0:54:50 > 0:54:54the course I have set out today, I am confident we will get there and
0:54:54 > 0:54:58deliver the right outcome for Britain and the EU. A generation
0:54:58 > 0:55:04from now, what will be remembered is not the rough and tumble of
0:55:04 > 0:55:07negotiation, but whether we reached an enduring solution has to meet
0:55:07 > 0:55:12interest of the people we are all here to serve. So my message to our
0:55:12 > 0:55:20friends in Europe is clear, we know what we want, we understand your
0:55:20 > 0:55:25principles, we have a shared interest in getting this right. So,
0:55:25 > 0:55:36let's get on with it. Thank you. APPLAUSE
0:55:46 > 0:55:50Now, I am going to take some questions. I will start off with
0:55:50 > 0:55:57questions from the media then take some from the wider audience.
0:55:57 > 0:56:06Laura's Laura's BBC News.What you describe as hard facts could also be
0:56:06 > 0:56:11described as compromises, many of which seemed obvious months ago. Do
0:56:11 > 0:56:15you accept now that we cannot have it all as we leave? , you have
0:56:15 > 0:56:19outlined you want to pick and mix, even though the EU has rejected that
0:56:19 > 0:56:25approach. What is it you think you can say to the EU leaders that will
0:56:25 > 0:56:30actually change their minds?First of all, what I have set out today is
0:56:30 > 0:56:35what I believe to be the right Brexit deal for Britain. Also, I
0:56:35 > 0:56:39believe it is the right deal for the European Union. I am confident that
0:56:39 > 0:56:46as we come and sit down together, we will be able to show that mutual
0:56:46 > 0:56:50interest and benefit from the proposals that I have put forward.
0:56:50 > 0:56:54The European Union itself in its own guidelines, as I said in my speech,
0:56:54 > 0:56:58have said they want an ambitious and wide ranging relationship and
0:56:58 > 0:57:02agreement and deal with the United Kingdom for the future and I have
0:57:02 > 0:57:07set out in my speech the various areas in times of economic
0:57:07 > 0:57:10partnership where we want to sit down and talk to them about what
0:57:10 > 0:57:15that future relationship would be. As I say, I am confident that we
0:57:15 > 0:57:19will achieve the right Brexit deal for Britain because I believe that
0:57:19 > 0:57:29deal is also the right Brexit deal for the EU. Robert?BBC. Prime
0:57:29 > 0:57:35Minister, millions of people voted to coin a phrase, to take back
0:57:35 > 0:57:42control, but today you have said that in order to maximise
0:57:42 > 0:57:50frictionless low-cost trade with the EU, you will promise not to exercise
0:57:50 > 0:57:55the control of taking back, so what can you say to those people who
0:57:55 > 0:57:59voted for Brexit was the point of Brexit?Well, people voted to take
0:57:59 > 0:58:04back control of our money, laws and borders and that is exactly what the
0:58:04 > 0:58:11will be doing. Yes, there are some areas where... Parliament will
0:58:11 > 0:58:15always be sovereign and it will be parliament to make these decisions.
0:58:15 > 0:58:19There are some areas, as I have set out in the description of goods,
0:58:19 > 0:58:23where, from economic point of view businesses say it makes sense to
0:58:23 > 0:58:27operate on the same basis we can continue that good trading
0:58:27 > 0:58:33relationship. The decision on those rules will be for Parliament. Yes,
0:58:33 > 0:58:37as I sat in my speech, there will need to be binding commitments, as
0:58:37 > 0:58:43the is and any trade agreement. You sit down and you work out what laws
0:58:43 > 0:58:49both sides are going to operate on, particularly on issues on
0:58:49 > 0:58:52competition and state aid. That is what we will be doing on negotiating
0:58:52 > 0:58:56this trade agreement. We will be taking back control of our borders,
0:58:56 > 0:59:01free movement will end. We will be taking back control of our money, we
0:59:01 > 0:59:05will not be sending vast sums of money to the European every year and
0:59:05 > 0:59:11we will be insuring we take back control of our lords and Parliament
0:59:11 > 0:59:18will make decisions. -- control of our laws.Sky News. On customs, a
0:59:18 > 0:59:23specific question and a more general one. As the custom partnership
0:59:23 > 0:59:27option the number one option? It was described as the blue sky optioned
0:59:27 > 0:59:31by the Brexit secretary months ago and I think they had of Customs said
0:59:31 > 0:59:36it could take five years to put these systems in place. Would we
0:59:36 > 0:59:40stay in the interim? You say this is about bringing the country back
0:59:40 > 0:59:44together, but you describe those people who want to reform a customs
0:59:44 > 0:59:47union as betraying the vote. There are people from the CBI here,
0:59:47 > 0:59:57members of your own party. How does that help when you say that that
0:59:57 > 1:00:00betrays the boat?What I have set out today in my speech, and we set
1:00:00 > 1:00:03out previously as a Government in more detail, is two options for what
1:00:03 > 1:00:09we believe is a Customs arrangement that would enable us to both trade
1:00:09 > 1:00:12and develop our own independent trade policy and trade deals with
1:00:12 > 1:00:16other countries around the world, but also ensure we have as
1:00:16 > 1:00:21frictionless trade across the border as possible and ensuring we have no
1:00:21 > 1:00:24hard order between Northern Ireland and Ireland. What I want to do now,
1:00:24 > 1:00:29and as I said in my speech I agreed with the Prime Minister of Northern
1:00:29 > 1:00:32Ireland when I saw him in Belfast, that we will be sitting down with
1:00:32 > 1:00:36the commission to discuss the details of this. We want to explore
1:00:36 > 1:00:42those options with those partners so that we can ensure that we really go
1:00:42 > 1:00:47into them and develop the solution that is right, that delivers that no
1:00:47 > 1:00:51hard order between Northern Ireland and Ireland, as frictionless trade
1:00:51 > 1:00:58as possible and continues to enable us to develop our own independent
1:00:58 > 1:01:02trade policy around the world. I think that those are what the
1:01:02 > 1:01:07majority of people want us to achieve, and we have set out ways in
1:01:07 > 1:01:13which we can do just that.
1:01:13 > 1:01:17Thank you, Prime Minister, Tom Newton Dunn from the Sun. You have
1:01:17 > 1:01:21said you will be patient, you will not threaten to walk out, but what
1:01:21 > 1:01:25if you don't get what you want? What have you don't get anywhere near
1:01:25 > 1:01:30what you want? Is no deal still a possibility, is it still better than
1:01:30 > 1:01:35a bad deal, and if so, will you repeat that now?Yes, I've said on
1:01:35 > 1:01:40many occasions that no deal is better than a bad deal. At the
1:01:40 > 1:01:43beginning of my speech, I said one of the complexities as we go through
1:01:43 > 1:01:46this as we are not only in a queue shooting on that future publisher
1:01:46 > 1:01:51but ensuring we are preparing for possible outcomes because it is a
1:01:51 > 1:01:54negotiation, and that is only the right and sensible thing to do. But
1:01:54 > 1:02:01I am confident, as I say, I am confident in reaching a good deal,
1:02:01 > 1:02:05the right deal, because I believe it is in the interests of both the
1:02:05 > 1:02:15United Kingdom and the European Union. Jason?Thank you, Daily Mail.
1:02:15 > 1:02:19Some of your colleagues have been seeking full autonomy over our laws
1:02:19 > 1:02:24after we leave, you are suggesting that maybe impossible, it is a hard
1:02:24 > 1:02:28fact to swallow. Cover sorry, I couldn't quite hear the question.
1:02:28 > 1:02:33Can you hear me now? Some of your colleagues have suggested they want
1:02:33 > 1:02:37full autonomy over the UK's laws, you seem to be suggesting that won't
1:02:37 > 1:02:42be possible, and some of your colleagues in Cabinet see this as a
1:02:42 > 1:02:48bottom line, this speech you have given today, rather than opening
1:02:48 > 1:02:53position. Is it your bottom line, or could there be more hard facts to
1:02:53 > 1:02:56swallow in the future?When we look at the question of taking back
1:02:56 > 1:02:59control of our laws, it is very clear that Parliament will be
1:02:59 > 1:03:05sovereign and will determine our laws. I set out in my speech there
1:03:05 > 1:03:08are certain circumstances, as other countries have found, if you look at
1:03:08 > 1:03:12the United States and the safe harbour framework, for example, they
1:03:12 > 1:03:18had an agreement with the European Union, but the EU end of that is
1:03:18 > 1:03:21determined by the ECJ, and the ECJ took a decision that affected that
1:03:21 > 1:03:28agreement, but they came to another agreement. So what I was setting out
1:03:28 > 1:03:33was that the ECJ will still continue to have responsibility and a remit
1:03:33 > 1:03:38within the European Union, but the EU laws and the ECJ will no longer
1:03:38 > 1:03:42have jurisdiction in the UK, and it will be Parliament making these
1:03:42 > 1:03:51decisions about our future. Anushka
1:03:51 > 1:03:52will be Parliament making these decisions about our future. Anushka.
1:03:52 > 1:03:56Anushka Asthana from the Guardian. You have admitted there will be
1:03:56 > 1:04:01difficult decisions and trade-offs head, and I think that makes it
1:04:01 > 1:04:04important to understand what your priorities are, particularly among
1:04:04 > 1:04:10the five tests, one of which is prosperity. I want to ask, is in the
1:04:10 > 1:04:13end and negotiating a customs union with the European Union is shown to
1:04:13 > 1:04:18be the best way to protect the economy, in that situation, would
1:04:18 > 1:04:25British jobs Trump new trade deals after Brexit?What I set out in the
1:04:25 > 1:04:28five test is the five tests that we will be setting when we look at
1:04:28 > 1:04:32these negotiations of the future partnership, and it is those five
1:04:32 > 1:04:36tests that I set out at the beginning of the speech which will
1:04:36 > 1:04:38have determined the approach I set out today and the future
1:04:38 > 1:04:44negotiations. I have explained that when we leave the European Union, we
1:04:44 > 1:04:47want to be to make those trades deals around the rest of the world.
1:04:47 > 1:04:52I believe there is a way, as I set out in my speech, in which it is
1:04:52 > 1:04:55possible to come to a customs arrangements which enable us to have
1:04:55 > 1:05:00as frictionless a border possible, to ensure that has no hard border
1:05:00 > 1:05:03between Northern Ireland and Ireland, and be able to negotiate
1:05:03 > 1:05:07deals around the rest of the world. I will take a couple of journalist
1:05:07 > 1:05:24not from UK media. From handles Handelsblatt?You seem to be
1:05:24 > 1:05:27preparing EU people for difficult decisions, saying there will be ups
1:05:27 > 1:05:34and downs, saying you don't want to be part of the customs union, do you
1:05:34 > 1:05:40think Brexit is all worth it?If that was an attempt to say will we
1:05:40 > 1:05:46think again on Brexit, the answer is no, the British people voted for
1:05:46 > 1:05:50Brexit, and I think it is incumbent on politicians to deliver on the
1:05:50 > 1:05:55decision that we asked them to take. Parliament overwhelmingly voted for
1:05:55 > 1:05:58this to be a decision of the British people, and I think it is right,
1:05:58 > 1:06:02having taken that decision, that Parliament and politicians now
1:06:02 > 1:06:07deliver on that. What have I done today? Unlike some politicians, I am
1:06:07 > 1:06:14being straight with people, because there are hard facts to be faced. I
1:06:14 > 1:06:18have set out, though, what I believe is an economic partnership alongside
1:06:18 > 1:06:22the security partnership that I set out in my speech in Munich a couple
1:06:22 > 1:06:27of weeks ago, that will ensure that we deliver for the British people on
1:06:27 > 1:06:31that referendum result, but at the same time we have an arrangement, we
1:06:31 > 1:06:35have an agreement, a deal that is right for the British people in
1:06:35 > 1:06:38terms of our prosperity, but also for people across the European Union
1:06:38 > 1:06:44in terms of their future prosperity as well. Is Sonia here from
1:06:44 > 1:06:53Liberation?Liberation, the French newspaper. Prime Minister, about
1:06:53 > 1:06:58Northern Ireland, you have just repeated your red lines, no customs
1:06:58 > 1:07:01union, no single market. Isn't it time you tell the truth to the
1:07:01 > 1:07:07British and the Europeans that there will indeed be a border in Northern
1:07:07 > 1:07:10Ireland, a light, hi-tech border, there will be a border in Northern
1:07:10 > 1:07:14Ireland?We have been very clear there will be no hard border in
1:07:14 > 1:07:17Northern Ireland, and as we have said previously, we will not be
1:07:17 > 1:07:21returning to the borders of the past. What I have set out in my
1:07:21 > 1:07:25speech today in ways in which that can be achieved. I am pleased that
1:07:25 > 1:07:28we have now agreed with the Taoiseach that the Irish garment and
1:07:28 > 1:07:32the UK Government and the commission will now be sitting down to work
1:07:32 > 1:07:35through those options that have been proposed and to be working through
1:07:35 > 1:07:40them in detail. I am very clear there will be... We will not be
1:07:40 > 1:07:44returning to a hard border in Northern Ireland, between Northern
1:07:44 > 1:07:49Ireland and Ireland, and we will be ensuring that we also maintain the
1:07:49 > 1:07:52common market of the United Kingdom, and that there is no hard border
1:07:52 > 1:07:56down the Irish sea either. I said I would take a couple of questions
1:07:56 > 1:08:09from the audience. Is Mike Jerry here? I thought I had seen you
1:08:09 > 1:08:14somewhere.Good morning Prime Minister. Small businesses will very
1:08:14 > 1:08:17much welcome your views around mutual recognition, and you also
1:08:17 > 1:08:21mentioned certain sectors, but with over 40% of our members looking to
1:08:21 > 1:08:27grow their own business through global exports and needing
1:08:27 > 1:08:30certainty, what is your message for them today as Prime Minister,
1:08:30 > 1:08:37please? My messagefor them is the first of all we want to continue to
1:08:37 > 1:08:41get a good trade deal with the European Union, but we want to make
1:08:41 > 1:08:43sure they can expand their export markets around the rest of the world
1:08:43 > 1:08:48as well, and that is why the Department for International Trade
1:08:48 > 1:08:50is already talking to a number of countries around the world about
1:08:50 > 1:08:56what our future trade arrangements might be. But I am also clear that
1:08:56 > 1:08:59we want to find ways of helping and encouraging more small and
1:08:59 > 1:09:05medium-sized enterprises to export around the world, to the EU, but
1:09:05 > 1:09:09also around the rest of the world. I was very pleased to take some SMEs
1:09:09 > 1:09:19with me on my recent trip to China, and they had good results from the
1:09:19 > 1:09:23networking they were able to do there. As a government, through the
1:09:23 > 1:09:27work of export finance guarantee and so forth, we are working actively to
1:09:27 > 1:09:30encourage and help not just large companies but also small and
1:09:30 > 1:09:35medium-sized enterprises be able to trade outside of the United Kingdom,
1:09:35 > 1:09:37be that to the European Union or other countries around the world.
1:09:37 > 1:09:48Thank you.Thank you, Prime Minister, from Virgin Money, I live
1:09:48 > 1:09:52in Scotland and run a business in Newcastle, and I wonder how your
1:09:52 > 1:09:54vision of Britain after Brexit improves things for the people who
1:09:54 > 1:10:00live in both of those places and other cities around the UK?Well,
1:10:00 > 1:10:04first of all, the important thing, I would say, is kidding the United
1:10:04 > 1:10:07Kingdom such that we have the ability for you to live in Scotland
1:10:07 > 1:10:15and run a business in Newcastle. -- is keeping. As we look at United
1:10:15 > 1:10:18Kingdom outside of the European Union, it is not just about what I
1:10:18 > 1:10:22have been talking about today, our relationship with the EU or trade
1:10:22 > 1:10:25relationships with the rest of the world, it is how we develop our
1:10:25 > 1:10:28economy here in the United Kingdom, that is where the industrial
1:10:28 > 1:10:37strategy is an absolutely key part of what we are delivering. We are a
1:10:37 > 1:10:40nation of innovators, we are world leaders in so many areas, if you
1:10:40 > 1:10:50look at the the automotive sector, fintech, we are leading the world,
1:10:50 > 1:10:55and we want to create an environment in the UK to enable people to do
1:10:55 > 1:11:02that, to make real successes across industrial sectors and the financial
1:11:02 > 1:11:09sector as well. But also creating an environment in which new innovation
1:11:09 > 1:11:12can come forward, and part of that is also getting our people skilled
1:11:12 > 1:11:17up so that they can take the jobs of the future. Thank you.
1:11:17 > 1:11:27APPLAUSE