0:00:04 > 0:00:07Hello and welcome to the Daily Politics, where we'll be
0:00:07 > 0:00:09bringing you live coverage from the City of London
0:00:09 > 0:00:12of Theresa May's speech on Brexit and the UK's future relationship
0:00:12 > 0:00:15with the EU.
0:00:15 > 0:00:19We're promised it will contain a lot of detail and some hard truths,
0:00:19 > 0:00:21but will it be enough to satisfy her critics at home and
0:00:21 > 0:00:27unlock negotiations with Brussels.
0:00:27 > 0:00:28Welcome to the show.
0:00:28 > 0:00:31We're expecting the Prime Minister to begin speaking shortly.
0:00:31 > 0:00:34She arrived at the Mansion House a short while ago, that's the home
0:00:34 > 0:00:38and office of the Lord Mayor of London - she was meant to be
0:00:38 > 0:00:40delivering this speech in Newcastle but the bad weather put
0:00:40 > 0:00:44paid to that.
0:00:44 > 0:00:47I'm joined today by two MPs who are very keen to hear
0:00:47 > 0:00:49what she's got to say, they've got very different
0:00:49 > 0:00:51views on Brexit and they are the Conservative MP
0:00:51 > 0:00:54Anne-Marie Trevelyan and the Labour MP Emma Reynolds.
0:00:54 > 0:00:56Welcome both of you.
0:00:56 > 0:01:02We've been told that Mrs May has set five tests for a future
0:01:02 > 0:01:03trade deal with the EU.
0:01:03 > 0:01:04So what are they?
0:01:04 > 0:01:06She'll say the deal must respect the result
0:01:06 > 0:01:08of the 2016 EU referendum.
0:01:08 > 0:01:11Provide a lasting solution that will endure for years.
0:01:11 > 0:01:15She'll say the deal must protect jobs and security
0:01:15 > 0:01:18in the UK and the EU, Maintain the UK as a modern,
0:01:18 > 0:01:23outward-looking, tolerant European democracy And she'll say it must
0:01:23 > 0:01:31strengthen, not weaken, the ties between the four nations of the UK.
0:01:35 > 0:01:40Anne-Marie Trevelyan, what do you want to hear her say?We saw this
0:01:40 > 0:01:47week, the EU's attempt which at this shocking suggestion that somehow a
0:01:47 > 0:01:50Northern Ireland should be annexed to the rest of Ireland. But tone was
0:01:50 > 0:01:55completely wrong so too he has set out clearly how we see our framework
0:01:55 > 0:01:58as a nation going forward as four Nations together, is important and
0:01:58 > 0:02:02making sure we have the clarity, the separation away from the single
0:02:02 > 0:02:08market and Customs union.What do you want to hear her say?I want her
0:02:08 > 0:02:13to explain, if we don't stay in the customs union, how would the
0:02:13 > 0:02:16government avoid a visible border, real border between Northern Ireland
0:02:16 > 0:02:20and the Republic of Ireland. It is a difficult issue and I don't think
0:02:20 > 0:02:24the government have grappled with that. I want her to show some clear
0:02:24 > 0:02:27leadership and be clear about what the government wants rather than
0:02:27 > 0:02:32what it doesn't want, because they haven't done that yet.The Prime
0:02:32 > 0:02:37Minister and the billing for this speech has been all about healing
0:02:37 > 0:02:42divisions, reach out to European partners. Give me one compromise you
0:02:42 > 0:02:46would been prepared to make to break the impasse?If we needed to pay
0:02:46 > 0:02:50more money to help them balance their books a bit longer.So more
0:02:50 > 0:02:55than the £40 million that has been agreed?Yes, one of the challenges
0:02:55 > 0:03:00the EU has, with the stepping away, it leaves them with a financial
0:03:00 > 0:03:06challenge. To help ease back, I would live with that as a Brexiteer.
0:03:06 > 0:03:10Your colleagues are parts of the speech may make her feel
0:03:10 > 0:03:16uncomfortable, do you share that sentiment?I hope they will be very
0:03:16 > 0:03:20clear. The end state the me is where we get to, which is out of the EU so
0:03:20 > 0:03:26we are a sovereign state and we can make decisions for ourselves.
0:03:26 > 0:03:29Anne-Marie Trevelyan says the government should be prepared to pay
0:03:29 > 0:03:33more to get something back from the EU, what compromise would you make
0:03:33 > 0:03:42as a Remain MP?With the government or the EU?With the government in
0:03:42 > 0:03:46terms to unlock these negotiations? I want the government to stop
0:03:46 > 0:03:51talking about the party's massa nations and what is in the best
0:03:51 > 0:03:57interests of the country and the best interests of constituents of
0:03:57 > 0:04:00mine, jobs. What does the government want from these negotiations, rather
0:04:00 > 0:04:06than what it doesn't want. All we have heard so far is red lines, we
0:04:06 > 0:04:10have heard sound bites, we have heard breadstick means Brexit, we
0:04:10 > 0:04:13haven't had a clear vision of what Brexit will look like under this
0:04:13 > 0:04:18government and we haven't had the government taking on board the EU 27
0:04:18 > 0:04:23have different priorities. They have been looking over their shoulders to
0:04:23 > 0:04:27their backbenchers to negotiate with them and other members of the
0:04:27 > 0:04:30Cabinet.You haven't said what you would compromise on, what would you
0:04:30 > 0:04:34give way on in order to unlock what have been very difficult
0:04:34 > 0:04:39negotiations between the EU and the government?Are you prepared to
0:04:39 > 0:04:43move? I would say to the EU I want the closest economic partnership
0:04:43 > 0:04:48with you, and as Jeremy Corbyn set out this week, means staying in the
0:04:48 > 0:04:55customs union, which would give the EU more
0:05:02 > 0:05:05clout and power in negotiations with countries.I think that is something
0:05:05 > 0:05:08that is worth doing. He said the EU had made a shocking announcement in
0:05:08 > 0:05:09terms of its draft proposals, do you think they have overreached
0:05:09 > 0:05:12themselves in terms of the tone of these negotiations?I did trade
0:05:12 > 0:05:16negotiations when I bought and sold companies. You get your favourable
0:05:16 > 0:05:20position and then you move somewhere to the middle ground. I was
0:05:20 > 0:05:24surprised they would start at that point. That is unacceptable to the
0:05:24 > 0:05:28British people and to the Northern Irish residents. I was surprised
0:05:28 > 0:05:35they started that far along the continuum.There is a reason,
0:05:35 > 0:05:38because the three options in December, the government has done
0:05:38 > 0:05:43nothing on the first two to lay out how it would work and how it would
0:05:43 > 0:05:49avoid the hard border in Northern Ireland.Let's talk to our
0:05:49 > 0:05:54correspondence, Alex Forsyth. This is not going to be a speech that
0:05:54 > 0:05:57will answer all the questions or solve all the issues and problems
0:05:57 > 0:06:03that exist. So what is the best people can hope for?You are right,
0:06:03 > 0:06:07there is so much in this complex negotiation which cannot possibly be
0:06:07 > 0:06:11resolved in 130 minute speech by the Prime Minister. What the real
0:06:11 > 0:06:18ambition speech of this is, is whether or not this does enough to
0:06:18 > 0:06:21convince her counterparts in Brussels that Theresa May has some
0:06:21 > 0:06:24sort of credible plan for Brexit rooted in reality, rather than
0:06:24 > 0:06:30rhetoric. We have heard from Michel Barnier, the chief negotiator for
0:06:30 > 0:06:34the EU, Donald Tusk, the president of the European Council, who
0:06:34 > 0:06:38suggested there needed to be an injection of reality in Theresa
0:06:38 > 0:06:43May's ambition. She cannot keep saying she wants at the spoke deal,
0:06:43 > 0:06:48she has to flesh out in practice. We won't get huge amounts of detail, it
0:06:48 > 0:06:52will be more of persuasion she has something to offer so they can move
0:06:52 > 0:06:57the talks on to the crucial issue of trade. If you think back to the
0:06:57 > 0:07:00original speech she made in Lancaster house, when she set up the
0:07:00 > 0:07:04premise of what she wanted to achieve from Brexit. Then when she
0:07:04 > 0:07:10went to Florence to give her speech there, they did play a part in
0:07:10 > 0:07:13unblocking negotiations when everybody was feeling dismal about
0:07:13 > 0:07:18the process. That is what she will be hoping to achieve from today.
0:07:18 > 0:07:21And, the tricky job of keeping her own party and the different elements
0:07:21 > 0:07:26with in it, onside.Alex Forsyth, thank you and you will be watching
0:07:26 > 0:07:30the speech with the rest of us. Let's go to Mansion house and see
0:07:30 > 0:07:36the gathering of journalists as they wait for Theresa May to make this
0:07:36 > 0:07:44third Brexit speech. Boris Johnson was supposed to be there, but he has
0:07:44 > 0:07:47been snowed in in Budapest. I don't know whether that will be
0:07:47 > 0:07:52disappointment relief to the Prime Minister! We are told it will be
0:07:52 > 0:07:56about 45 minutes. There is the Bank of England governor, Mark Carney,
0:07:56 > 0:08:02coming in and various other officials. I think we are expecting
0:08:02 > 0:08:08her probably to take to her feet in the next few moments. It will be
0:08:08 > 0:08:12about 45 minutes. Anne-Marie Trevelyan, a former Prime Minister,
0:08:12 > 0:08:17John Major, intervened this week. He said he didn't want to undermine the
0:08:17 > 0:08:20Prime Minister Bob Bernard Jenkin has called him an enemy of
0:08:20 > 0:08:25democracy, how do you view him?I wouldn't have used such harsh words
0:08:25 > 0:08:28but his position seems to be on the preference to stay in and the
0:08:28 > 0:08:32feeling that the British people choice to go for Brexit wasn't one
0:08:32 > 0:08:39he agreed with and he continues to push the alternate line. Which, is
0:08:39 > 0:08:43frustrating. If we believe in democracy and the majority Alcon,
0:08:43 > 0:08:50Brexit is what we are doing.We can see members of the Cabinet in have
0:08:50 > 0:08:55made it, the Brexit secretary, and the Chancellor Philip Hammond. One
0:08:55 > 0:08:58of the issues has been getting the Cabinet to broadly agree what is to
0:08:58 > 0:09:03be said in this speech. Again, from what you are hearing, are your
0:09:03 > 0:09:07Brexit colleagues happy with what is going to be said, from what they
0:09:07 > 0:09:13know?There seems to be an upbeat feel to last week's meetings and the
0:09:13 > 0:09:18fact everybody is moving in the same direction. The sense of
0:09:18 > 0:09:22understanding that it is what the British people majority asked for,
0:09:22 > 0:09:26therefore we must deliver it and find a way forward is that works for
0:09:26 > 0:09:31everybody.Is that because that you believe further down the line, post
0:09:31 > 0:09:35the transition agreement, if and when it is signed off, there would
0:09:35 > 0:09:39be an opportunity to change and I've urge from the EU wants that
0:09:39 > 0:09:45implementation period is over?When we are a sovereign state once more,
0:09:45 > 0:09:49ten or 15 years down the line, moving forward we will have free
0:09:49 > 0:09:53trade arrangements with the EU partners and others and we will
0:09:53 > 0:09:58continue to grow businesses and trade skills will grow.Change what
0:09:58 > 0:10:03has been agreed now?It will move forward, free trade agreements will
0:10:03 > 0:10:09get added to, that is the point of being independent.Will the
0:10:09 > 0:10:15transition last for ten or 15 years? I think we would both be very
0:10:15 > 0:10:19unhappy with that.If we think about the way the EU has behaved this
0:10:19 > 0:10:25week, is there a risk pushing too far and too hard and stiffening the
0:10:25 > 0:10:30resolve of the government?I think from the EU's point of view, they
0:10:30 > 0:10:34have this agreement in December and they needed to be flushed out.There
0:10:34 > 0:10:38is the applause for Theresa May as she begins her third Brexit speech
0:10:38 > 0:10:45and Mansion house. The Prime Minister.
0:10:45 > 0:10:49Good afternoon, I am grateful for the Lord Mayor and his team for
0:10:49 > 0:10:54hosting us here this afternoon. I would like to take a moment before I
0:10:54 > 0:10:58begin my speech, to thank everyone in our country who is going the
0:10:58 > 0:11:03extra mile to help people at this time. I think that our emergency
0:11:03 > 0:11:08services and Armed Forces working to keep people safe, NHS staff and care
0:11:08 > 0:11:11workers and all those keeping our public services going and the many
0:11:11 > 0:11:16volunteers who are giving their time to help those in need. Your
0:11:16 > 0:11:19contribution is a special part of who we are as a country and it is
0:11:19 > 0:11:24all the more appreciated at a moment like this. I am here today to set
0:11:24 > 0:11:28out my vision for the future economic partnership between the
0:11:28 > 0:11:32United Kingdom and the European Union. There have been many
0:11:32 > 0:11:36different voices and views in the debate about what our new
0:11:36 > 0:11:39relationship with the EU should look like and I have listened carefully
0:11:39 > 0:11:47to them all. But as we go forward with the EU, I want to take a moment
0:11:47 > 0:11:51to look back. 18 months ago, I stood in Downing Street and addressed the
0:11:51 > 0:11:56nation for my first time as Prime Minister. I made this pledge then,
0:11:56 > 0:12:02to the people I serve. I know you are working around the clock and
0:12:02 > 0:12:06doing your best and I know that sometimes life can be a struggle.
0:12:06 > 0:12:11The government I lead will be driven, not by the interests of the
0:12:11 > 0:12:15privileged few, but by yours. We will do everything we can to give
0:12:15 > 0:12:20you more control over your lives. When we take the big calls, we will
0:12:20 > 0:12:24think not of the powerful, but you. When we pass new laws, we will
0:12:24 > 0:12:32listen not to the mighty, but you. When it
0:12:32 > 0:12:35When it comes to taxes, we will prioritise not the wealthy, but you.
0:12:35 > 0:12:38When it comes to opportunity we won't entrench the advantages of the
0:12:38 > 0:12:42fortunate few, we will help anybody, whatever your background to go as
0:12:42 > 0:12:47far as your talents will take you. We are living in an important moment
0:12:47 > 0:12:53in our country's history. As we leave the European Union we will
0:12:53 > 0:12:56forge a new, positive role for ourselves in the world and we will
0:12:56 > 0:13:01make Britain a country that works, not for a privileged few, but for
0:13:01 > 0:13:06everyone of us. That pledge to the people of our United Kingdom is what
0:13:06 > 0:13:16guides me in our negotiations with the EU.
0:13:16 > 0:13:18the EU. For me, that means five things. First, the agreement we
0:13:18 > 0:13:21reached with the EU must respect the referendum. It was voted to take
0:13:21 > 0:13:25control of our borders, laws and money and a vote for wider change,
0:13:25 > 0:13:29so no community in Britain would ever be left behind again. But it
0:13:29 > 0:13:35was not a vote for a distant relationship with our neighbours.
0:13:35 > 0:13:39Second, the new agreement we reach with the EU must endure. After
0:13:39 > 0:13:44Brexit, both the UK and the EU want to forge ahead with building a
0:13:44 > 0:13:49better future for our people, not find ourselves back at the
0:13:49 > 0:13:53negotiating table because things have broken down. Third, it must
0:13:53 > 0:13:58protect jobs and security. People in the UK voted for our country to have
0:13:58 > 0:14:03a new and different relationship with Europe. But while the means may
0:14:03 > 0:14:11change, our shared goals, surely have not. To work together, grow our
0:14:11 > 0:14:14economies and keep people safe. Fourth, it must be consistent with
0:14:14 > 0:14:21the kind of country we want to be as we leave, and modern, open, outward
0:14:21 > 0:14:26looking country. A nation of pioneers, innovators, explorers and
0:14:26 > 0:14:30creators. A country that celebrates our history and diversity, confident
0:14:30 > 0:14:35of our place in the world. That meets its obligations to our
0:14:35 > 0:14:40neighbours and four friends and is proud to stand up for its values.
0:14:40 > 0:14:44And fifth, in doing all of these things, it must strengthen our union
0:14:44 > 0:14:50of nations and union of people. We must bring our country back
0:14:50 > 0:14:53together, taking into account the views of everyone who cares about
0:14:53 > 0:14:58this issue from both sides of the debate. As Prime Minister, it is my
0:14:58 > 0:15:02duty to represent all of our United Kingdom, England, Scotland, Wales
0:15:02 > 0:15:08and Northern Ireland. North and south, from coastal tiles to our
0:15:08 > 0:15:11great cities. So these are the five tests for the deal but we will
0:15:11 > 0:15:21negotiate.
0:15:22 > 0:15:24Delivering an outcome that is consistent with the kind of country
0:15:24 > 0:15:29that we want to be. And bringing our country together, strengthening the
0:15:29 > 0:15:35precious union of all our people. We are now approaching a crucial
0:15:35 > 0:15:40moment. There is no escaping the complexity of the task ahead of us.
0:15:40 > 0:15:45We must not only negotiate our exit from a negotiation that touches so
0:15:45 > 0:15:49many important parts of our national life, we must also build a new and
0:15:49 > 0:15:55lasting relationship while, given the uncertainty inherent in the
0:15:55 > 0:15:58negotiation, preparing for every scenario. But we are making real
0:15:58 > 0:16:04progress. At the end of last year, we agreed the key elements of our
0:16:04 > 0:16:07withdrawal. We are in the process of turning that agreement into draft
0:16:07 > 0:16:14legal text. We have made clear our concerns about the first draft that
0:16:14 > 0:16:18the commission published on Wednesday, that nobody should be in
0:16:18 > 0:16:21any doubt about our commitment to the joint report that we agreed in
0:16:21 > 0:16:26December. We are close to agreement on the terms of implementation
0:16:26 > 0:16:33period in which was a key element of December's deal. Although some
0:16:33 > 0:16:35points of difference remain, I am confident they can be resolved in
0:16:35 > 0:16:41the days ahead. Both the UK and the EU are clear, this implimentation
0:16:41 > 0:16:46period must be time limited and cannot become a permanent solution.
0:16:46 > 0:16:52But it is vital to give governments, businesses and citizens on both
0:16:52 > 0:16:57sides the time they need to prepare for our new relationship. With this
0:16:57 > 0:17:01agreed, I want both sides to turn all our attention and efforts to
0:17:01 > 0:17:06this new relationship. But before we can do that we need to set out in
0:17:06 > 0:17:13more detail what relationship we want, building on my Lancaster house
0:17:13 > 0:17:19and foreign speeches. So, last month I spoke in Munich about the security
0:17:19 > 0:17:23partnership that we seek. Today, I want to talk about the other pillar
0:17:23 > 0:17:28of the relationship, how we build our economic partnership. In my
0:17:28 > 0:17:32speech in Florence, I set out why the existing models for economic
0:17:32 > 0:17:36partnership either do not deliver the ambition we need or impose
0:17:36 > 0:17:40unsustainable constraints on our democracy. For example, the Norway
0:17:40 > 0:17:44model, where we would stay in the single market, would mean having to
0:17:44 > 0:17:49implement new EU legislation automatically, and its entirety, and
0:17:49 > 0:17:55would also mean continued free movement. Others suggested we
0:17:55 > 0:17:58negotiate a free trade agreement similar to that which Canada has
0:17:58 > 0:18:02recently negotiated with the EU, or trade on World Trade Organisation
0:18:02 > 0:18:06terms. But these options would mean a significant reduction in our
0:18:06 > 0:18:08access to each other's markets, compared to that which we currently
0:18:08 > 0:18:13enjoy. This would mean customs and regulatory checks at the border
0:18:13 > 0:18:18which would damage the integrated supply chains that our industries
0:18:18 > 0:18:21depend on and be inconsistent with the commitments that both we and the
0:18:21 > 0:18:28EU have made in respect to Northern Ireland. This is a wider issue in
0:18:28 > 0:18:31our negotiations and I want to dwell on this for a minute. Successive
0:18:31 > 0:18:36British governments have worked tirelessly, together with all of the
0:18:36 > 0:18:40parties in Northern Ireland and with the Irish government, to bring about
0:18:40 > 0:18:43the historic achievement of peace. This is an achievement that we
0:18:43 > 0:18:48should all be proud of and protect. That is why I have consistently put
0:18:48 > 0:18:55up holding the Belfast agreement at the heart of the UK's approach. Our
0:18:55 > 0:18:58departure from the EU causes very particular challenges for Northern
0:18:58 > 0:19:04Ireland and for Ireland. We joined the EU together 45 years ago, and
0:19:04 > 0:19:07this is not surprising that our decision to leave has caused anxiety
0:19:07 > 0:19:12and a desire for concrete solutions. We have been clear all along that we
0:19:12 > 0:19:17don't want to go back to a hard border in Ireland. We have ruled out
0:19:17 > 0:19:19any physical infrastructure of the border, or any related checks and
0:19:19 > 0:19:26controls. But it is not good not to say we will not introduce a hard
0:19:26 > 0:19:31border, if EU forces Ireland to do it it is down to them. We chose to
0:19:31 > 0:19:35leave and we have a responsibility to help find a solution. But we
0:19:35 > 0:19:41can't do it on our own, it is for all of us to work together. The
0:19:41 > 0:19:45Taoiseach and I agreed when we met recently that our teams and the
0:19:45 > 0:19:50commission should now do just that. I want to make one final point. Just
0:19:50 > 0:19:54as it would be unacceptable to go back to a hard border between
0:19:54 > 0:19:59Northern Ireland and Ireland, it would also be unacceptable to break
0:19:59 > 0:20:04up the United Kingdom's own Common Market by creating a customs and
0:20:04 > 0:20:09regulatory border down the Irish Sea. My personal commitment to this
0:20:09 > 0:20:13is clear. As Prime Minister of the whole United Kingdom, I am not going
0:20:13 > 0:20:19to let our departure from the European Union do anything to set
0:20:19 > 0:20:22back the historic progress that we have made in Northern Ireland, nor
0:20:22 > 0:20:26will I allow anything that would damage the integrity of our precious
0:20:26 > 0:20:32union. So, existing models do not provide the best way forward for
0:20:32 > 0:20:37either the UK or the EU. But before I turn to what a new and better
0:20:37 > 0:20:43model may look like, I would like to be straight with people. The reality
0:20:43 > 0:20:48is that we all need to face up to some hard facts. We are leaving the
0:20:48 > 0:20:53single market. Life is going to be different. In certain ways, our
0:20:53 > 0:20:57access to each other's markets will be less than it is now. How could
0:20:57 > 0:21:00the EU structure of rights and obligations be sustained if the UK
0:21:00 > 0:21:07or any country were allowed to enjoy all of the benefits without all of
0:21:07 > 0:21:10the obligations? So, we need to strike a new balance. But we will
0:21:10 > 0:21:16not accept the rights of Canada and the obligations of Norway. The
0:21:16 > 0:21:21second hard fact is that even after we have left the jurisdiction of the
0:21:21 > 0:21:25European Court of Justice, EU law and the decisions of the ECJ will
0:21:25 > 0:21:28continue to affect us. For a start, the ECJ determines whether
0:21:28 > 0:21:34agreements that EU has struck an illegal under the EU's own laws, as
0:21:34 > 0:21:38the US found when the ECJ declared the safe harbour framework for data
0:21:38 > 0:21:45invalid. When we leave the EU, the Withdrawal Bill will bring EU law
0:21:45 > 0:21:50into UK law, meaning cases will be determined in our courts, but, where
0:21:50 > 0:21:53appropriate, our courts will continue to look at the ECJ's
0:21:53 > 0:21:59judgments, as they do for the appropriate jurisprudence of other
0:21:59 > 0:22:03countries' courts. If, as part of the future partnership, Parliament
0:22:03 > 0:22:06passes an identical law to the EU law, it may make sense for our
0:22:06 > 0:22:10courts to look at the appropriate ECJ judgments, so that we both
0:22:10 > 0:22:15interpret those laws consistently. As I said in Munich, if we agree
0:22:15 > 0:22:21that the UK should continue to participate in the EU agency, the UK
0:22:21 > 0:22:25would have to respect the remit of the ECJ in that regard. But, in the
0:22:25 > 0:22:31future, the EU treaties and hence EU law will no longer apply in the
0:22:31 > 0:22:35United Kingdom. The agreement we reach must therefore respect the
0:22:35 > 0:22:41sovereignty of both the UK and the EU's legal orders. That means the
0:22:41 > 0:22:47jurisdiction of the ECJ in the UK must end. It also means the ultimate
0:22:47 > 0:22:51arbiter of disputes about our future partnership cannot be the court of
0:22:51 > 0:22:58either party. The next hard fact is this, if we want good access to each
0:22:58 > 0:23:01other's markets, it has to be on fair terms. As with any trade
0:23:01 > 0:23:05agreement, we must accept the need for binding commitments, for example
0:23:05 > 0:23:10we might choose to commit some areas of regulations, like state aid and
0:23:10 > 0:23:15competition, to remain in step with the EU's. The UK drove much of the
0:23:15 > 0:23:19policy in that area, and we have much to gain from maintaining proper
0:23:19 > 0:23:25disciplines on the use of subsidies and an anti-competitive practices.
0:23:25 > 0:23:28Furthermore, as I said in France, we share the same set of fundamental
0:23:28 > 0:23:33beliefs, a belief in free trade, rigorous and fair competition,
0:23:33 > 0:23:35strong consumer rights and that is trying to beat each other... Try to
0:23:35 > 0:23:43beat each other's countries industries by subsidising one's own
0:23:43 > 0:23:47is a big mistake. In other areas, like workers' rights of the
0:23:47 > 0:23:49environment, the EU should be confident that we will not engage in
0:23:49 > 0:23:55a race to the bottom in standards and protections we set. There is no
0:23:55 > 0:23:57serious political constituency in the UK that would support this,
0:23:57 > 0:24:03quite the opposite. Finally, we need to resolve the tensions around our
0:24:03 > 0:24:06key objectives. We want the freedom to negotiate trade agreements with
0:24:06 > 0:24:10other countries around the world. We want to take back control of our
0:24:10 > 0:24:15laws. We also want as frictionless a border as possible between us and
0:24:15 > 0:24:19the EU, so that we don't damage the integrated supply chain is our
0:24:19 > 0:24:23industries depend on, and don't have a hard border between Northern
0:24:23 > 0:24:28Ireland and Ireland. But there are some tensions in the EU's position,
0:24:28 > 0:24:34too. And some hard facts for them to face as well. The commission has
0:24:34 > 0:24:36suggested that the only option available to the UK is an
0:24:36 > 0:24:41off-the-shelf model. But, at the same time, they have also said that
0:24:41 > 0:24:47in certain areas none of the EU's third country agreements would be
0:24:47 > 0:24:51appropriate, and the European Council's guidelines aspire to a
0:24:51 > 0:24:56balanced, ambitious and wide-ranging deal, with common rules a number of
0:24:56 > 0:25:01areas to ensure fair and open competition. This would not be
0:25:01 > 0:25:04delivered by a Canada style deal, which would not give them the breath
0:25:04 > 0:25:08or depth of market access that they want. It is hard to see how it would
0:25:08 > 0:25:14be in the EU's interests for the UK's regulatory standards to be as
0:25:14 > 0:25:19different as Canada's. We both need to face the fact that this is a
0:25:19 > 0:25:22negotiation, and neither of us can have exactly what we want. But I am
0:25:22 > 0:25:28confident that we can reach agreement. We both want good access
0:25:28 > 0:25:33to each other's markets, we want competition between us to be fair
0:25:33 > 0:25:36and open, and we want reliable transparent means of verifying that
0:25:36 > 0:25:40we are meeting our commitments and resolving disputes. But what is
0:25:40 > 0:25:48clear is that for us both to meet our objectives, we need to look
0:25:48 > 0:25:53beyond the presidents and find a new balance. As an security, what I am
0:25:53 > 0:25:56seeking is a relationship that goes beyond the transactional, to one
0:25:56 > 0:26:03that we support each other's interests, so I wanted broadest and
0:26:03 > 0:26:06deepest partnership possible, covering all sectors and cooperate
0:26:06 > 0:26:09and more fully than any free trade agreement anywhere in the world
0:26:09 > 0:26:14today. As I will go on to describe, we will also need agreement on a
0:26:14 > 0:26:18range of areas covering the breath of our relationship. I believe this
0:26:18 > 0:26:23is achievable because it is in the EU's interests as well as ours. The
0:26:23 > 0:26:28EU is the UK's biggest market and, of course, the UK is also a big
0:26:28 > 0:26:32market for the EU. Furthermore, we have a unique starting point where,
0:26:32 > 0:26:37on day one, we both have the same laws and rules. So, rather than
0:26:37 > 0:26:40having to bring two different systems closer together, the task
0:26:40 > 0:26:45will be to manage the relationship once we are to EU separate legal
0:26:45 > 0:26:50systems. To do so, and to realise its level of ambition, there are
0:26:50 > 0:26:54five foundations that must underpin our trading relationship. First, our
0:26:54 > 0:27:01agreement will need reciprocal, binding commitments to ensure fair
0:27:01 > 0:27:03and open competition. Such agreements are part and parcel of
0:27:03 > 0:27:08any trade agreement. After all, why would any country and into a
0:27:08 > 0:27:12privileged relationship without any means of redress on the other party
0:27:12 > 0:27:19engaged in anti-competitive practices? The level of integration
0:27:19 > 0:27:24between EU and UK markets, and our geographical proximity, mean that
0:27:24 > 0:27:28the reciprocal commitments will be particularly important to make sure
0:27:28 > 0:27:32that UK businesses can compete fairly in EU markets and vice versa.
0:27:32 > 0:27:35A deep and comprehensive agreement with the EU will need to include
0:27:35 > 0:27:40commitments affecting the extent to which the UK and EU economies are
0:27:40 > 0:27:46entwined. Second, we will need an arbitration mechanism that is
0:27:46 > 0:27:49completely independent, something which again is common to free trade
0:27:49 > 0:27:52agreements. This will ensure that any disagreements about the purpose
0:27:52 > 0:27:58or scope of the agreement can be resolved fairly and promptly. Third,
0:27:58 > 0:28:03given the close relationship we envisage, we will need an ongoing
0:28:03 > 0:28:06dialogue with the EU and to ensure we have the means to consult each
0:28:06 > 0:28:10other regularly. In particular, we will want to make sure our
0:28:10 > 0:28:12regulators continue to work together, as they do with regulators
0:28:12 > 0:28:18internationally. This will be essential for everything from
0:28:18 > 0:28:21getting you drugs to patients quickly, to maintaining financial
0:28:21 > 0:28:25stability. We start from the place where our regulators already have
0:28:25 > 0:28:27deep and long-standing relationships, so the task is
0:28:27 > 0:28:32maintaining that trust, not building it in the first place. Fourth, we
0:28:32 > 0:28:36will need an arrangement for data protection. I made this point in
0:28:36 > 0:28:40Munich in relation to our security relationship, but the free flow of
0:28:40 > 0:28:46data is also critical for both sides in any modern trading relationship.
0:28:46 > 0:28:50The UK has exceptionally high standards of data protection, and we
0:28:50 > 0:28:54want to secure an agreement with the EU that provides the stability and
0:28:54 > 0:28:59confidence for EU and UK businesses and individuals to achieve our aims
0:28:59 > 0:29:03in maintaining and developing the UK's strong trading and economic
0:29:03 > 0:29:08links with the EU. That is why we will be seeking more than just an
0:29:08 > 0:29:12advocacy relationship, and want to see an appropriate ongoing role for
0:29:12 > 0:29:15the UK's Information Commissioner's Office. This will ensure that UK
0:29:15 > 0:29:20businesses or effectively represented under the EU's new
0:29:20 > 0:29:24one-stop shop mechanism for resolving data protection disputes.
0:29:24 > 0:29:28Fifth, we must maintain the links between our people. EU citizens are
0:29:28 > 0:29:33an integral part of economic, cultural and social fabric of our
0:29:33 > 0:29:37country. I know that UK nationals are viewed in entirely the same way
0:29:37 > 0:29:41by communities across the EU. This is why, at every stage of these
0:29:41 > 0:29:45negotiations, I have put the interests of EU citizens and UK
0:29:45 > 0:29:50nationals at the heart of our approach. We are clear that, as we
0:29:50 > 0:29:54leave the EU, free movement of people will come to an end, and we
0:29:54 > 0:29:58will control the number of people who come to live in our country. But
0:29:58 > 0:30:03UK citizens will still want to work and study in EU countries, just as
0:30:03 > 0:30:07EU citizens will want to do the same here, helping to shape and drive
0:30:07 > 0:30:13growth, innovation and enterprise. Indeed, businesses across the EU and
0:30:13 > 0:30:17the UK must be able to attract and employ the people they need, and we
0:30:17 > 0:30:21are open to discussing how to facilitate these valuable links.
0:30:21 > 0:30:26Reciprocal commitments to ensure fair and open competition, an
0:30:26 > 0:30:30independent arbitration mechanism, an ongoing dialogue, data protection
0:30:30 > 0:30:33arrangements and maintaining the links between our people. These are
0:30:33 > 0:30:36the foundations that underpin the ambition of this unique and
0:30:36 > 0:30:40unprecedented partnership. It will then need to be tailored to the
0:30:40 > 0:30:46needs of our economies.
0:30:46 > 0:30:50This follows the approach the EU has taken with its trade agreements in
0:30:50 > 0:30:55the past and indeed, with its own single market, as it has developed.
0:30:55 > 0:31:00The EU agreement with Ukraine sees it aligned in some areas but not
0:31:00 > 0:31:05others. It's a lineman with South Korea seems to recognise each
0:31:05 > 0:31:09other's approvals with new car models, but that agreement with
0:31:09 > 0:31:16Canada does not. The EU's agreement with Canada recognises each of the's
0:31:16 > 0:31:20testing on machinery, its agreement with South Korea does not. The EU
0:31:20 > 0:31:25itself is taking a tailored approach with what it is seeking in the UK.
0:31:25 > 0:31:29On fisheries, the commission has been clear, no precedents exist for
0:31:29 > 0:31:36the sort of access it once from the UK. The fact is, every free trade
0:31:36 > 0:31:40agreement has varying market access, depending on the respective
0:31:40 > 0:31:45interests of the countries involved. If this is cherry picking, then
0:31:45 > 0:31:51every trade arrangement is cherry picking. Moreover, with all its
0:31:51 > 0:31:54neighbours, the EU has varying levels of access to the single
0:31:54 > 0:32:00market, depending the obligations those neighbours are willing to
0:32:00 > 0:32:04undertake. What would be cherry picking is if we were to seek a deal
0:32:04 > 0:32:09where our rights and obligations were not held in balance. And I have
0:32:09 > 0:32:14been categorically clear that is not what we are going to do. I think it
0:32:14 > 0:32:17is pragmatic common sense that we should work together to deliver the
0:32:17 > 0:32:22best outcome for both sides. Let me start with how we do this for goods.
0:32:22 > 0:32:27This is the area where the single market is most established in both
0:32:27 > 0:32:33the UK and EU have a strong commercial interest in preserving
0:32:33 > 0:32:35integrated supply chains that have built up over 40 years of our
0:32:35 > 0:32:41membership. When it comes to goods, the fundamental principle in our
0:32:41 > 0:32:45negotiating strategy should be betrayed at the UK, EU border should
0:32:45 > 0:32:50be as frictionless as possible. That means we don't want the introduction
0:32:50 > 0:32:57of any tariffs or quotas. And as the secretary of state set out in his
0:32:57 > 0:33:02speech last week in Vienna, products only need to undergo one series of
0:33:02 > 0:33:06approvals in one country to show they meet the regulatory standards.
0:33:06 > 0:33:10For this we would need a comprehensive system of mutual
0:33:10 > 0:33:15recognition. The UK would need to make a strong commitment its
0:33:15 > 0:33:20regulatory standards would remain as high as the EU's and that would mean
0:33:20 > 0:33:23EU and UK regulatory standards would remain substantially similar in the
0:33:23 > 0:33:29future. Many of these regulatory standards are themselves underpinned
0:33:29 > 0:33:33by international standards set by non-EU bodies, of which we will
0:33:33 > 0:33:36remain a member. Such as the UN economic commission for Europe,
0:33:36 > 0:33:44which sets a vehicle safety standards.
0:33:44 > 0:33:45standards. Countries around the world, including Turkey, South
0:33:45 > 0:33:48Africa, South Korea, Japan and Russia are party to the agreement.
0:33:48 > 0:33:52As I said in my speech in Florence, this could be achieved in different
0:33:52 > 0:33:58ways. Our default is UK law might not necessarily be identical to EU
0:33:58 > 0:34:03law, but it should achieve the same outcomes. In some cases, parliament
0:34:03 > 0:34:08might choose to pass an identical law. Businesses who export to the EU
0:34:08 > 0:34:12tell us it is strongly in their interest to have a single set of
0:34:12 > 0:34:16regulatory standards that mean they can sell into the UK and EU markets.
0:34:16 > 0:34:25If the Parliament of the day decided not to achieve the same outcomes as
0:34:25 > 0:34:28EU law, it would be in the knowledge there may be consequences for our
0:34:28 > 0:34:30market access and there would need to be an independent mechanism to
0:34:30 > 0:34:33oversee these arrangements. We would also want to explode the EU, the
0:34:33 > 0:34:39terms of which the UK should remain part of the agencies that are
0:34:39 > 0:34:47critical for medicines and Aero agencies.
0:34:47 > 0:34:51agencies. We would of course accept this would be abiding by the rules
0:34:51 > 0:34:55of those agencies in making appropriate financial contribution.
0:34:55 > 0:34:59But I want to explain what I believe the benefits of this approach could
0:34:59 > 0:35:03be both for us and you. First, associate membership of these
0:35:03 > 0:35:06agencies is the only way to meet our objective to ensure these products
0:35:06 > 0:35:11only need to go one series of approvals in one country. Second,
0:35:11 > 0:35:15these agencies have a critical role in setting and enforcing relevant
0:35:15 > 0:35:20rules. If we were able to negotiate associate membership, we could
0:35:20 > 0:35:25ensure we could prevent new to provide our technical expertise.
0:35:25 > 0:35:30Third, associate membership could permit UK firms to resolve certain
0:35:30 > 0:35:35challenges related to the agencies through UK courts, rather than the
0:35:35 > 0:35:43ECJ. For example in the case of Scotland, associate -- Switzerland,
0:35:43 > 0:35:46means her worthiness certifications are granted by its own aviation
0:35:46 > 0:35:50authority and disputes are resolved through its courts without its
0:35:50 > 0:35:54membership, Swiss airlines would need to gain their certificates to
0:35:54 > 0:35:58another member state or to the agency and any dispute would need to
0:35:58 > 0:36:03be resolved through the ECJ. Fourth, it would bring other benefits. For
0:36:03 > 0:36:08example, membership of the European medicines agency would mean
0:36:08 > 0:36:10investment in new medicines continuing in the UK and it would
0:36:10 > 0:36:16mean these medicines getting to patients faster as firms prioritise
0:36:16 > 0:36:18larger markets when they start the lengthy process of seeking
0:36:18 > 0:36:25authorisations. It would also be good for the EU, because the UK
0:36:25 > 0:36:28regulator assesses more new medicines than any other member
0:36:28 > 0:36:35state. The EU would continue to access the expertise of the UK's
0:36:35 > 0:36:39world leading universities. And of course, Parliament would remain
0:36:39 > 0:36:44ultimately sovereign. It could decide not to access these rules,
0:36:44 > 0:36:50but with consequences for our membership of the relevant agency
0:36:50 > 0:36:58and market access rights. Lastly, to achieve a frictionless border as
0:36:58 > 0:37:02possible and avoid the hard border. Let me repeat, to avoid a hard
0:37:02 > 0:37:06border between Northern Ireland and Ireland. We also need an agreement
0:37:06 > 0:37:12on customs. The UK has been clear it is leaving the customs union. The EU
0:37:12 > 0:37:16has also formed a customs union with some other countries. But those
0:37:16 > 0:37:21arrangements, if applied to the UK cake would mean the EU setting the
0:37:21 > 0:37:26UK's external tariffs, being able to let other countries sell more to the
0:37:26 > 0:37:30UK without making it any easier for us to sell to them or the UK signing
0:37:30 > 0:37:37up to the UK commercial policy. That would not be compatible with a
0:37:37 > 0:37:39meaningful, independent trade policy. It would mean we have less
0:37:39 > 0:37:45control than we do now over our trade in the world. Neither leave or
0:37:45 > 0:37:49remain voters would want that. We thought seriously about how our
0:37:49 > 0:37:54commitment to a frictionless border could be delivered. Last year we set
0:37:54 > 0:37:59out two potential options. Option one, is a customs partnership
0:37:59 > 0:38:04between the UK and the EU. At the border, the UK would mirror the EU's
0:38:04 > 0:38:08requirements for imports from the rest of the world, applied the same
0:38:08 > 0:38:12tariffs and the same rules of origin as the EU. For those goods arriving
0:38:12 > 0:38:20in the UK and intended for the EU. By following this approach, we would
0:38:20 > 0:38:23know all goods entering the EU via the UK pay the right EU duties,
0:38:23 > 0:38:27removing the need for customs processes at the border.
0:38:27 > 0:38:31Importantly, we were put in place a mechanism, so the UK would also be
0:38:31 > 0:38:36able to apply its own tariffs and trade policy for goods intended for
0:38:36 > 0:38:40the UK market. As we have set out previously, this would require the
0:38:40 > 0:38:45means to ensure both sides can trust the system and a robust enforcement
0:38:45 > 0:38:50mechanism. Option two would be a streamlined customs arrangement,
0:38:50 > 0:38:54where we would agree to implement a range of measures to minimise
0:38:54 > 0:38:57friction is to trade together with specific provisions for Northern
0:38:57 > 0:39:03Ireland. First, measures to require the movement of goods across borders
0:39:03 > 0:39:07are as simple as possible and we should waive the requirement for
0:39:07 > 0:39:11exit and entry declarations for goods moving between the UK and the
0:39:11 > 0:39:15EU. We should allow goods moving between the UK and the rest of the
0:39:15 > 0:39:19world to travel through the EU without paying EU duties and vice
0:39:19 > 0:39:26versa. Measure to reduce the risk of delays at ports and airports by
0:39:26 > 0:39:30recognising each other's trusted trade schemes and drawing on IT
0:39:30 > 0:39:36solutions so vehicles don't need to stop at the border. Third, continue
0:39:36 > 0:39:40our cooperation to mitigate customs duty and security risks. And fourth,
0:39:40 > 0:39:45measure to reduce the cost and burden of complying with customs
0:39:45 > 0:39:50admin of requirements, including by maximising the use of automation.
0:39:50 > 0:39:53And recognising the unique circumstances in Northern Ireland
0:39:53 > 0:39:57and our shared commitments to avoiding a hard border, we should
0:39:57 > 0:40:04consider further measures. 80% of north-south trade is carried out by
0:40:04 > 0:40:07Micro, small and medium-sized businesses. So the smaller traders,
0:40:07 > 0:40:11whose members of the community are most effective but whose economic
0:40:11 > 0:40:15role is not systemically significant for the EU market, we would allow
0:40:15 > 0:40:19them to continue to operate as they do currently, with no new
0:40:19 > 0:40:23restrictions. The larger traders, we would introduce streamlined
0:40:23 > 0:40:27processes including a trusted trade scheme that would be consistent with
0:40:27 > 0:40:33our commitments. Both of these options for our future customs
0:40:33 > 0:40:36arrangement would lead the UK free to determine its own tariffs with
0:40:36 > 0:40:42third countries, which would simply not be possible in a customs union.
0:40:42 > 0:40:47I recognise some of these ideas depend on technology, robust systems
0:40:47 > 0:40:51to ensure trust and confidence as well as goodwill, but they are
0:40:51 > 0:40:57serious and merit consideration by all sides. So to conclude on goods,
0:40:57 > 0:41:00fundamental principle in our negotiating strategy is that trade
0:41:00 > 0:41:05at their UK EU border should be as frictionless as possible with no
0:41:05 > 0:41:09hard border between Northern Ireland and Ireland. We believe this can be
0:41:09 > 0:41:14achieved via a commitment to ensure the relevant UK regulatory standards
0:41:14 > 0:41:19remain at least as high as the EU's and a customs arrangement. We
0:41:19 > 0:41:23recognise this would constrain our ability to lower regulatory
0:41:23 > 0:41:29standards for industrial goods, but in practice we are unlikely to want
0:41:29 > 0:41:33to reduce our standards because the British public would punish any
0:41:33 > 0:41:38government at the ballot box. This approach for trading goods is good
0:41:38 > 0:41:42for agriculture, food and drinks but other consideration also apply. We
0:41:42 > 0:41:46are leaving the common agricultural policy and will want to take the
0:41:46 > 0:41:50opportunity that brings to reform our agricultural and fisheries
0:41:50 > 0:41:54management. The UK has among the highest environmental and animal
0:41:54 > 0:41:59welfare standards of any nation on earth. As we leave the EU, we will
0:41:59 > 0:42:05uphold environmental standards and go further to protect our shared
0:42:05 > 0:42:13natural heritage. And I expect our standards will remain at
0:42:17 > 0:42:19standards will remain at least as high as the EU's. But it will be
0:42:19 > 0:42:21particularly important to secure flexibility to ensure we can make
0:42:21 > 0:42:23the most of the opportunities presented by car withdrawal from the
0:42:23 > 0:42:29EU for farmers and exporters. We are leaving the common fisheries policy.
0:42:29 > 0:42:33The UK will regain control over domestic fisheries rules and access
0:42:33 > 0:42:38to our waters. But as part of the economic partnership, we want to
0:42:38 > 0:42:42work together to manage shared stocks in a sustainable way and
0:42:42 > 0:42:45agree reciprocal access to the waters and a fairer allocation of
0:42:45 > 0:42:50fishing opportunities for the UK fishing industry. We will also want
0:42:50 > 0:42:55to ensure open markets for each other's products. Just as our
0:42:55 > 0:43:00partnership in goods needs to be deeper than any other free
0:43:00 > 0:43:04agreement, so in services, we have the opportunity to break new ground
0:43:04 > 0:43:10with a broader agreement than ever before. We recognise that certain
0:43:10 > 0:43:13aspects of trade services are intrinsically linked to the single
0:43:13 > 0:43:17market and a market access in these areas will need to be different. But
0:43:17 > 0:43:21we should only allow new barriers to be introduced when absolutely
0:43:21 > 0:43:25necessary. We don't want to discriminate between EU service
0:43:25 > 0:43:30providers in the UK and we wouldn't want the EU to discriminate against
0:43:30 > 0:43:34UK service providers. We want to limit the number of barriers that
0:43:34 > 0:43:40would prevent UK firm setting up in the EU and vice versa. And agree
0:43:40 > 0:43:44appropriate labour mobility framework, that enables UK
0:43:44 > 0:43:47businesses and self employed professionals to travel to the EU,
0:43:47 > 0:43:51to provide services to clients in person and that allows UK businesses
0:43:51 > 0:43:58to provide services to the EU over the phone and Internet. We want to
0:43:58 > 0:44:05do the same for EU firms providing services to the UK. Given UK
0:44:05 > 0:44:09qualifications are recognised across the EU and vice versa, it would make
0:44:09 > 0:44:13sense to recognise each other's qualifications in the future. There
0:44:13 > 0:44:18are two areas which have never been covered in a free-trade agreement in
0:44:18 > 0:44:25any meaningful way. Broadcasting and despite the EU's best efforts in the
0:44:25 > 0:44:27Transatlantic Trade and Investment Partnership, financial services. But
0:44:27 > 0:44:32we have some ideas for how we can do this and it is in all our interests
0:44:32 > 0:44:36to explore these. On broadcasting we recognise we cannot have exactly the
0:44:36 > 0:44:43same arrangements with the EU as we do now.
0:44:47 > 0:44:49do now. Currently because of the country of origin principle, a
0:44:49 > 0:44:52company based in the UK can be licensed by off, and broadcast into
0:44:52 > 0:44:54any EU member state and vice versa. The relevant directive will not
0:44:54 > 0:44:58apply to the UK as leave the EU and relying on precedents will hurt
0:44:58 > 0:45:01consumers and businesses on both sides. The UK's creative hub leads
0:45:01 > 0:45:05to the development is a product that European consumers want. The UK
0:45:05 > 0:45:12currently provides around 30% of the channels available in the EU. But
0:45:12 > 0:45:16equally, many UK companies have pan-European ownership and there are
0:45:16 > 0:45:1935 channels and on demand services which are offered in the UK, but
0:45:19 > 0:45:23licensed in the EU.
0:45:23 > 0:45:30We should export creative options with a open mind, including mutual
0:45:30 > 0:45:33recognition, allowing for Frontier broadcasting, recognising the
0:45:33 > 0:45:35enriching role that British broadcasters and programme makers
0:45:35 > 0:45:40play, not only in British but, more broadly, in our common, European
0:45:40 > 0:45:44culture. Similarly, on financial services, the Chancellor will be
0:45:44 > 0:45:49setting out next week our financial services, and how they can and
0:45:49 > 0:45:52should be part of a comprehensive partnership. We are not looking for
0:45:52 > 0:45:55passporting because we understand this is intrinsic to the single
0:45:55 > 0:45:58market, of which we would no longer be a member. It would also require
0:45:58 > 0:46:02us to be subject to a single rule book over which we would have no
0:46:02 > 0:46:08say. The UK has responsibility for the financial stability of the
0:46:08 > 0:46:13world's most significant financial centre, and our taxpayers bear the
0:46:13 > 0:46:17risk. So, it would be unrealistic for us to implement new EU
0:46:17 > 0:46:23legislation automatically, and in its entirety. But with UK located
0:46:23 > 0:46:29banks underwriting around half of the debt and equity issued by EU
0:46:29 > 0:46:36companies, providing more than £1.1 trillion of lending to the rest of
0:46:36 > 0:46:40the EU in 2015 alone, this is a clear example of where only looking
0:46:40 > 0:46:45at precedent would hurt both the UK and the EU economies. As in other
0:46:45 > 0:46:49areas of future economic partnership, our goal should be to
0:46:49 > 0:46:57establish the ability to access each other's markets, based on the UK and
0:46:57 > 0:47:02EU maintaining the same regulatory outcomes over time, with a mechanism
0:47:02 > 0:47:06for propulsion consequences where they are not maintained. Given the
0:47:06 > 0:47:10highly regulated area of financial services, and our shared desire to
0:47:10 > 0:47:14manage financial stability risks, we would need a collaborative,
0:47:14 > 0:47:18objective framework that is reciprocal, mutually agreed and
0:47:18 > 0:47:23permanent, and therefore reliable for businesses. There are many other
0:47:23 > 0:47:29areas where the UK and EU economies are closely linked, including
0:47:29 > 0:47:32energy, transport, digital, Law, science and innovation, education
0:47:32 > 0:47:35and culture. One energy, we want to secure broad energy cooperation with
0:47:35 > 0:47:42the EU. This includes protecting the single electricity market across
0:47:42 > 0:47:47Ireland and Northern Ireland, and options for the UK's continued
0:47:47 > 0:47:51participation in the EU's internal energy market. We also believe it is
0:47:51 > 0:47:59of benefit for both sides for the UK to have a close association
0:47:59 > 0:48:01to have a close association with Euratom. We want to protect the
0:48:01 > 0:48:09rights of road hauliers to access the EU market and vice versa. One
0:48:09 > 0:48:13digital, the UK will not be part of the single digital market, which
0:48:13 > 0:48:17will continue to develop after our withdrawal from the EU. This is a
0:48:17 > 0:48:22fast evolving, innovative sector, in which the UK is a world leader, so
0:48:22 > 0:48:27it will be particularly important to have domestic flexibility to ensure
0:48:27 > 0:48:30the regulatory environment can always respond nimbly and
0:48:30 > 0:48:37ambitiously to new developments. We want our agreement to cover several
0:48:37 > 0:48:39judicial Corporation, where the EU has already shown it can reach
0:48:39 > 0:48:43agreement with non-member states, such as through the regard no
0:48:43 > 0:48:46convention, although we would want a broader agreement which reflects our
0:48:46 > 0:48:51unique starting point, and our agreement will also need to cover
0:48:51 > 0:48:54company law and intellectual property to provide further legal
0:48:54 > 0:49:00certainty and coherence. The UK is also committed to establishing a
0:49:00 > 0:49:04far-reaching science and innovation packed with the EU, facilitating the
0:49:04 > 0:49:08exchange of ideas and researchers. That would enable the UK to
0:49:08 > 0:49:12participate in key programmes alongside our EU partners. We want
0:49:12 > 0:49:16to take a similar approach to education and cultural programmes,
0:49:16 > 0:49:19to promote our shared values and enhance our intellectual strength in
0:49:19 > 0:49:25the world. Again, making an ongoing contribution to cover our fair share
0:49:25 > 0:49:30of the costs involved. In all of these areas, bold and creative
0:49:30 > 0:49:34thinking can deliver new agreements that are in the very best interests
0:49:34 > 0:49:41of all of our people, both in the UK and across the EU. In the face of a
0:49:41 > 0:49:44worrying rise in protectionism, I believe such agreements can enable
0:49:44 > 0:49:52us to set an example to the world. For the world is watching. We should
0:49:52 > 0:49:59not think of our leaving the EU as marking and ending, so much as a new
0:49:59 > 0:50:02beginning for the United Kingdom and our relationship with our European
0:50:02 > 0:50:07allies. Change is not to be feared, so long as we face it with a
0:50:07 > 0:50:11clear-sighted determination to act for the common good. Nor is Brexit
0:50:11 > 0:50:17an end in itself, rather it must be the means by which we reaffirm
0:50:17 > 0:50:21Britain's place in the world and renew the ties that bind us here at
0:50:21 > 0:50:27home. I know that the United Kingdom I treasure can emerge from this
0:50:27 > 0:50:33process a stronger, more cohesive nation. They United Kingdom which is
0:50:33 > 0:50:36a cradle for innovation, a leader in the industries of the future, a
0:50:36 > 0:50:43champion of free trade are based on high standards, a modern, outward
0:50:43 > 0:50:47looking, tolerant country, proud of our values and confident of our
0:50:47 > 0:50:50place in the world. This is an optimistic and confident future
0:50:50 > 0:50:56which can unite us all. A global Britain which thrives in the world,
0:50:56 > 0:51:00by forging a bold and comprehensive economic partnership with our
0:51:00 > 0:51:04neighbours in the EU and reaches out beyond our continent, to trade with
0:51:04 > 0:51:09nations across the globe. The approach that I have set out today
0:51:09 > 0:51:13would implement the referendum result, provide an enduring
0:51:13 > 0:51:17solution, protect our security and prosperity, help us build the kind
0:51:17 > 0:51:23of country we want to be and bring our country together by commanding
0:51:23 > 0:51:27the confidence of those who voted Leave and those that voted Remain.
0:51:27 > 0:51:31It is an approach to deliver for the whole of our United Kingdom, and our
0:51:31 > 0:51:36wider family of overseas territories. I am in no doubt that,
0:51:36 > 0:51:41whatever agreement we reach with the EU, our future is bright. The
0:51:41 > 0:51:46stability and continuity of centuries of self-government, our
0:51:46 > 0:51:50commitment to freedom under the rule of law, our belief in enterprise and
0:51:50 > 0:51:55innovation, but, above all, the talent and genius of all of our
0:51:55 > 0:51:59people, and especially our young people, are the seeds of our success
0:51:59 > 0:52:04in the future, as they have been the guarantors of our success in the
0:52:04 > 0:52:08past. I look forward to discussing our future partnership with our
0:52:08 > 0:52:13European friends. Because, although we are leaving the EU, and in that
0:52:13 > 0:52:19regard we will become separate, we are all still European and will stay
0:52:19 > 0:52:26linked by the many ties and values we have in common. It is only by
0:52:26 > 0:52:30working together that we will find solutions that work for all our
0:52:30 > 0:52:35peoples. Yes, there will be ups and downs in the months ahead, as in any
0:52:35 > 0:52:39negotiation no one will get everything they want. We will not be
0:52:39 > 0:52:52buffeted by those wanting a walk-out.
0:52:52 > 0:52:55It is my responsibility as Prime Minister to provide that leadership
0:52:55 > 0:53:00for our country at this crucial time. By following the course I set
0:53:00 > 0:53:04out today, I am confident we will get there and deliver the right
0:53:04 > 0:53:11outcome for Britain and the EU. A generation from now, what will be
0:53:11 > 0:53:15remembered is not the rough and tumble of negotiation but whether we
0:53:15 > 0:53:19reached and injuring solution, the interests of the people that we are
0:53:19 > 0:53:27all here to serve. My message to our friends in Europe is clear. We know
0:53:27 > 0:53:31what we want, we understand your principles, we have a shared
0:53:31 > 0:53:36interest in getting this right. So let's get on with it. Thank you.
0:53:36 > 0:53:42APPLAUSE
0:53:43 > 0:53:47Theresa May, ending at 45 minute speech, the third Brexit speech,
0:53:47 > 0:53:52with an optimistic note and our message to the EU. Trying to answer
0:53:52 > 0:53:55the criticism, by stating that she does know what she wants. They have
0:53:55 > 0:53:59criticised her for saying that she doesn't. There are also going to be
0:53:59 > 0:54:02questions and answers to the Prime Minister now. Let's go back over
0:54:02 > 0:54:05what she said. She started the speech by returning to what she said
0:54:05 > 0:54:10on the steps of Downing Street. A country that works for everyone, not
0:54:10 > 0:54:13a privileged few. That was the template for the whole of this
0:54:13 > 0:54:16Brexit speech. She quickly dismissed the existing models for Britain, in
0:54:16 > 0:54:22terms of Norway and Canada. She said they would not work for the UK,
0:54:22 > 0:54:27going forward. Then it was a speech of hard choices. She did actually
0:54:27 > 0:54:31answer some of the big questions. She said life was going to be
0:54:31 > 0:54:35different when we leave the EU, we are leaving the single market, which
0:54:35 > 0:54:39she has stated before, and our access is going to be less. We have
0:54:39 > 0:54:43not heard her say that. No, they are not going to be able to have their
0:54:43 > 0:54:48cake and eat it, which some of the Cabinet had said in the past. She
0:54:48 > 0:54:52also said that EU law and decisions of the European Court of Justice
0:54:52 > 0:54:57will continue to affect us in certain instances. She gave various
0:54:57 > 0:55:01examples of that, if you pass the same law as the EU it may make sense
0:55:01 > 0:55:05to look at what the European Court of Justice has done in the past. She
0:55:05 > 0:55:09then pointed to some of the tensions that exist for the European Union.
0:55:09 > 0:55:18She said that their position is also incompatible. She said the UK has
0:55:18 > 0:55:21been told it has to have an off-the-shelf model, but said that
0:55:21 > 0:55:25none of the third country agreements that have already been done would be
0:55:25 > 0:55:29suitable for Britain. She said that was negotiation, and that was
0:55:29 > 0:55:33obviously meant for Michel Barnier, the EU negotiator, and neither side
0:55:33 > 0:55:37can have exactly what we want. That is the first time we have heard that
0:55:37 > 0:55:41sort of language. There was one statement that may upset some of the
0:55:41 > 0:55:46Brexiteers, and also my guest in the studio, reciprocal binding
0:55:46 > 0:55:51commitments to guarantee fair and open competition. How far did she
0:55:51 > 0:55:54see mirroring the European rules and regulations going forward? But in a
0:55:54 > 0:55:58strong riposte to Michel Barnier's criticism of cherry picking, that
0:55:58 > 0:56:02the UK can't do, she said every trade agreement is cherry picking.
0:56:02 > 0:56:08In that instance, we should be able to find a third way. That has been
0:56:08 > 0:56:12rejected, of course, by the EU. She said no to a customs union, that
0:56:12 > 0:56:16will upset some of the Remain colleagues in the Conservative
0:56:16 > 0:56:20Party. Again, an Northern Ireland, it was not entirely clear how she
0:56:20 > 0:56:24sees this frictionless border working between Ireland and Northern
0:56:24 > 0:56:30Ireland when it comes to goods going across what she says will be a
0:56:30 > 0:56:33frictionless border, and no hard border will be erected. The customs
0:56:33 > 0:56:38partnership that she talked about will narrate EU rules of origin. So,
0:56:38 > 0:56:44she is still looking for a third way. It has actually given ground,
0:56:44 > 0:56:48if you like, to say that Britain is not going to get everything at once.
0:56:48 > 0:56:52It was a reality check for Brexiteers like you. You are not
0:56:52 > 0:56:55going to be up to have your cake and eat it, you have to put up with less
0:56:55 > 0:56:59market of the single market, which was not what will set out by the
0:56:59 > 0:57:02Brexit Secretary?What I heard was the most optimistic and positive
0:57:02 > 0:57:06tone I think I have heard from the Prime Minister in a long time. I
0:57:06 > 0:57:09think the words that came out most from the whole speech were
0:57:09 > 0:57:12reciprocity, fair and open competition. The fact that she has
0:57:12 > 0:57:17been fairly clear that she is happy to be flexible, that we must be
0:57:17 > 0:57:20flexible, but that the EU must as well. We want them to be as good a
0:57:20 > 0:57:25place as we want to be, in a different relationship, a deep and
0:57:25 > 0:57:28special relationship. She kept reiterating those words. That energy
0:57:28 > 0:57:31that everybody needs to come to to get to a situation that works for
0:57:31 > 0:57:36everybody.But no customs union, not in the way that you would like to
0:57:36 > 0:57:40see. Do you accept that another way can be found to keep Northern
0:57:40 > 0:57:45Ireland part of the UK but still have frictionless trade?No, she
0:57:45 > 0:57:49talked about two other options. As far as I can see it, they still do
0:57:49 > 0:57:52not stop Northern Ireland possibly becoming a back door into the rest
0:57:52 > 0:57:57of the EU via the Republic of Ireland, on standards, rules of
0:57:57 > 0:58:01origin. I just don't see how it works, to be quite frank. Either you
0:58:01 > 0:58:04are in the customs union and you avoid that visible hard border, or
0:58:04 > 0:58:08you are not and you will have to have some checks. There are no other
0:58:08 > 0:58:12countries in the rest of the world, there are no other countries that
0:58:12 > 0:58:15avoid a border. You've got Sweden and Norway, there are checks on
0:58:15 > 0:58:20lorries going across the border. You've got Canada and the US, there
0:58:20 > 0:58:24are checks on lorries going across those borders. It is just not going
0:58:24 > 0:58:28to fly, what she talked about, with regard to the other options.What do
0:58:28 > 0:58:32you say to that? If there are checks, it will be a hard border?We
0:58:32 > 0:58:36need to see how it pans out. She mentioned the Taoiseach, working
0:58:36 > 0:58:38with him to find a way that will work for everybody so there isn't a
0:58:38 > 0:58:46hard border. She has been clear that is not acceptable.That is the
0:58:46 > 0:58:48objective, but there is no clear route without the customs union.
0:58:48 > 0:58:51Let's speak now to the Conservative MP Anna Soubry, she's been a critic
0:58:51 > 0:58:54of the government's position over Brexit.
0:58:54 > 0:58:57What was your reaction?To be welcomed, in the sense that the
0:58:57 > 0:59:01Prime Minister is clearly waking up to the realities. I think she has
0:59:01 > 0:59:06always known that, actually, look, she is facing a very difficult task.
0:59:06 > 0:59:10Well, we know that!Exactly. She has the difficulties she has within the
0:59:10 > 0:59:15Conservative Party and that is a fact. I think she is beginning to
0:59:15 > 0:59:17bring people together. If she achieves that, it will be
0:59:17 > 0:59:21remarkable, and good luck to her. The other thing that I think she is
0:59:21 > 0:59:25now appreciating, or at least talking about, is this huge gulf
0:59:25 > 0:59:29that exists between what the EU has made very clear is there Brexit
0:59:29 > 0:59:35reality, and where we have been. I think we are seeing that she is now
0:59:35 > 0:59:39publicly explaining that, and she is saying, at the moment, the way that
0:59:39 > 0:59:44she is falling, that we will not have the access that we have had in
0:59:44 > 0:59:48the past. That is not what David Davis promised.Do you accept that,
0:59:48 > 0:59:53that in order to have a new relationship, to strike out on free
0:59:53 > 0:59:57trade deals as a third country, to still maintain those high
0:59:57 > 1:00:01regulations, we won't be able to have the same access?No, I'm afraid
1:00:01 > 1:00:05I don't accept any of these things. Nobody voted to be poorer. What
1:00:05 > 1:00:09we're talking about is an acceptance that our economic prosperity will
1:00:09 > 1:00:16not be as good. May I just say, it is very important that we lance this
1:00:16 > 1:00:20boil about free trade agreements. The Government's own analysis shows
1:00:20 > 1:00:23that even if we got all of the free trade agreement is available, and
1:00:23 > 1:00:30God knows we have already got 40 of them, they will not make good the
1:00:30 > 1:00:33damage that will be caused to our economy by leaving the single
1:00:33 > 1:00:37market.This is a negotiation, as Theresa May has said. It is a
1:00:37 > 1:00:40negotiation for the EU as well. It's all very well for them to reject
1:00:40 > 1:00:44everything that has been put on the table so far, that having listened
1:00:44 > 1:00:47to the speech from Theresa May, would you expect them to move and
1:00:47 > 1:00:57look more closely at a bespoke deal? The big problem everybody is missing
1:00:57 > 1:01:02is that we want any canonic solution that keeps us in prosperity.But she
1:01:02 > 1:01:06said every free trade agreement is cherry picking, that is true?When
1:01:06 > 1:01:10you have a free trade agreement, both sides want to do the same for
1:01:10 > 1:01:13their respective economies. This is the mistake that is being made. For
1:01:13 > 1:01:19us it is about the economy. For the EU it is a political set of
1:01:19 > 1:01:22negotiations in the sense that they have to maintain the integrity of
1:01:22 > 1:01:30the remaining 27 countries. This is the big question to be asked.
1:01:30 > 1:01:35Harmony German car manufacturers have been to the German government
1:01:35 > 1:01:38and said, for goodness' sake, do a great deal with the UK because we
1:01:38 > 1:01:45needed because of the market? Not one. Because they understand the
1:01:45 > 1:01:47integrity of the single market and the customs union is absolutely
1:01:47 > 1:01:54overpoweringly more important. Truthfully, they can continue to get
1:01:54 > 1:01:58FTAs at other countries that will make good any drop in the sales to
1:01:58 > 1:02:02our country. That is the harsh reality that we have got to wake up
1:02:02 > 1:02:08to.
1:02:21 > 1:02:26She is not to be seen as some hard Brexiteer.It might be uncomfortable
1:02:26 > 1:02:35if others...We are both members of Her Majesty 's government.Don't
1:02:35 > 1:02:39promote Anna Soubry gesture to the government. Not sure that would
1:02:39 > 1:02:43happen anyway. In terms of Brexiteers they not be happy because
1:02:43 > 1:02:49we say we are leaving the EU, leaving the single market and the
1:02:49 > 1:02:52customs union and we shouldn't have the European Court of Justice
1:02:52 > 1:02:58overseen.We should not seek to tarnish people with the same brush.
1:02:58 > 1:03:02There are different sorts of people who voted for Brexit. You have the
1:03:02 > 1:03:07hard Brexiteer is, the one you have spoken about.Slung out of the
1:03:07 > 1:03:16party.I identified Theresa May as the person who had done that. We are
1:03:16 > 1:03:20those with hard Brexit, and then there are many who voted obviously
1:03:20 > 1:03:26to leave, but they are not the hardliners. I have been approached
1:03:26 > 1:03:32by three, only in the last week, all of whom voted leave, but now are
1:03:32 > 1:03:42seeing the
1:03:42 > 1:03:47seeing the value of EFTA and there is a shift.Would you accept that
1:03:47 > 1:03:55sort of shift?We set out the framework the Prime Minister wants
1:03:55 > 1:04:00to see.How do you bring Anna Soubry on board?We will keep working
1:04:00 > 1:04:06together as best as we can.Do you think it is going to be possible?
1:04:06 > 1:04:09One of the challenges and beauty of sovereignty is we will get to a
1:04:09 > 1:04:13point where we can all live for the outcome, it won't be perfect for me,
1:04:13 > 1:04:21it won't be perfect for you.Can you live with it? I am an old-fashioned,
1:04:21 > 1:04:25pragmatic conservative, it runs all the way through me. We both know
1:04:25 > 1:04:28there are some in our party who are not of that way, they are hardline
1:04:28 > 1:04:36and they
1:04:36 > 1:04:38and they will not shift. That speech, the way she positioned it,
1:04:38 > 1:04:42the reality she has accepted, the judgments of the ECJ, is welcome
1:04:42 > 1:04:45news. The reality of the difficulties in Northern Ireland.
1:04:45 > 1:04:50Emma Reynolds is absolutely right, there needs to be an alternative and
1:04:50 > 1:04:54non-is forthcoming.What Theresa May has just said in answer to a
1:04:54 > 1:04:59question post this speech is no deal is still better than a bad deal, do
1:04:59 > 1:05:06you agree?No, what I want to see is the European Union making this
1:05:06 > 1:05:11clear, there are many options that will face us. I say in good faith, I
1:05:11 > 1:05:15wish Theresa May all the best.In the way John Major did when he made
1:05:15 > 1:05:23his speech?I am not talking about John Major.He also wished her well.
1:05:23 > 1:05:26I am saying this Prime Minister wants the right thing for our
1:05:26 > 1:05:33country and is driven by a sense of public duty.Does it worry you she's
1:05:33 > 1:05:39saying no deal is better than a bad deal?Of course, when it comes to
1:05:39 > 1:05:43the withdrawal agreement in October, the EU has made it clear we still
1:05:43 > 1:05:49have options. The agreement, we can stay or become like Norway. It is
1:05:49 > 1:05:53important parliament and the public know there is an alternative to the
1:05:53 > 1:05:57sorts of Brexit that unfortunately is being put forward at the moment.
1:05:57 > 1:06:02But the Prime Minister, her speech is to be welcomed, she is moving in
1:06:02 > 1:06:06the right direction and facing Brexit reality.Anna Soubry, thank
1:06:06 > 1:06:12you. Emma Reynolds, Parliament is sovereign she said, but could reject
1:06:12 > 1:06:16EU regulations and standards but accepted the UK would be locked out
1:06:16 > 1:06:21in terms of access, what did you make of that?I welcome the fact she
1:06:21 > 1:06:24has acknowledged we will not have the same type of access to the
1:06:24 > 1:06:28single market if we do not abide by the rules and if we leave the single
1:06:28 > 1:06:32market. But I would like her to spell out what that means in terms
1:06:32 > 1:06:40of jobs and investment. According to the leaked report we saw on those
1:06:40 > 1:06:43feet, it will mean growth will be less than it would be if we stayed
1:06:43 > 1:06:47in the single market and there will be a threat to jobs and investment.
1:06:47 > 1:06:51I would like to see has spell out in Parliament when she comes to do her
1:06:51 > 1:06:55statement, and I will ask her and maybe Steve Baker could enlighten
1:06:55 > 1:06:59us, it is good she had recognised there are hard choices and we won't
1:06:59 > 1:07:03have the same access to the EU market. What does that mean in terms
1:07:03 > 1:07:05of jobs and investment.
1:07:05 > 1:07:09We're joined now by the Brexit minister Steve Baker.
1:07:09 > 1:07:13Theresa May conceded there will have to be less access to the single
1:07:13 > 1:07:18market at the Brexit, but David Davis famously promised last year,
1:07:18 > 1:07:21the exact same benefits in terms of access to the single market after
1:07:21 > 1:07:28Brexit, as we have now. Has the government realised Brexit reality,
1:07:28 > 1:07:32it is impossible to have back?The Prime Minister set out an ambitious
1:07:32 > 1:07:36and credible plan and I think we can be proud of what has been set out.
1:07:36 > 1:07:41If we go forward with the plan, it will serve our interest and the
1:07:41 > 1:07:46European Union's.Do you accept that was was promised to the UK by the
1:07:46 > 1:07:52Brexit secretary and others is now possible?The speech, as it was set
1:07:52 > 1:07:56out should be taken on its own terms. She set out how we can have
1:07:56 > 1:07:58an enduring relationship with the European Union, a vision on which
1:07:58 > 1:08:03the country can unite and I'm looking forward to delivering it.
1:08:03 > 1:08:07Can you unite and support the speech and some of the suggestions she made
1:08:07 > 1:08:11in Britain staying in permanent locks that in certain areas like
1:08:11 > 1:08:15state aid, workers' rights and the environment, where you pleased to
1:08:15 > 1:08:20hear that?We have been on a journey of these speeches where the
1:08:20 > 1:08:23Secretary of State set out we would be high standards country. The Prime
1:08:23 > 1:08:27Minister said there is no serious political constituency in this
1:08:27 > 1:08:31country to seriously reduce standards.And the European Court of
1:08:31 > 1:08:36Justice still arbitrating in certain areas pose Brexit?Don't get carried
1:08:36 > 1:08:43away on this.In areas, do you accept that?The language people
1:08:43 > 1:08:48should refer to as the Prime Minister's. She was clear the
1:08:48 > 1:08:52jurisdiction of the European Court of Justice will end in the UK...She
1:08:52 > 1:09:00said EU law and the decisions of the ECJ will continue to affect us.
1:09:00 > 1:09:04Number one, the jurisdiction of the ECJ will end in the UK. Parliament
1:09:04 > 1:09:08will be sovereign. But the example she gave is a pertinent one. Even
1:09:08 > 1:09:13the United States of America was affected by the ECJ's judgment on
1:09:13 > 1:09:19safe harbour. That is the reality of international trade. When you are
1:09:19 > 1:09:22cooperating with trading partners, their domestic decisions will have
1:09:22 > 1:09:28an effect on trading relations and that is to be expected.She did say
1:09:28 > 1:09:35Parliament is sovereign but also you would have the right to reject those
1:09:35 > 1:09:38rules and regulations in the future. Is it your belief we stay close to
1:09:38 > 1:09:40them for now, those high standards, but there is the possibility they
1:09:40 > 1:09:45could be rejected down the line? This is a matter for Parliament.So
1:09:45 > 1:09:51it is true, isn't it?We will become a normal, parliamentary democracy
1:09:51 > 1:09:54operating at high standards with liberty under the rule of law, all
1:09:54 > 1:09:58those things the Prime Minister set out. We will be on the basis of a
1:09:58 > 1:10:04normal style of free trade agreement with the European Union, albeit with
1:10:04 > 1:10:08unprecedented ambition.David Davis wrote to Tory MPs this week to say
1:10:08 > 1:10:12Britain wouldn't pay the £40 billion divorce bill into law the issues
1:10:12 > 1:10:20have been resolved. Is it still on the table, should it still be on the
1:10:20 > 1:10:24table as a threat to the EU if they don't look at some of the offers
1:10:24 > 1:10:26made by Theresa May?It is not a threat. It is a principle that
1:10:26 > 1:10:30nothing is agreed until everything is agreed.So that could be Rene
1:10:30 > 1:10:37don?Nobody is threatening anyone, we are talking in a spirit of
1:10:37 > 1:10:42optimism. The principle of the EU has articulated is that nothing is
1:10:42 > 1:10:47agreed until everything is agreed. Right, no deal is still better than
1:10:47 > 1:10:53a bad deal, how much planning is there going forward for no deal?The
1:10:53 > 1:10:56Prime Minister explained what we cannot do is access the rights of
1:10:56 > 1:11:01Canada and the obligations of Norway. That is something people can
1:11:01 > 1:11:05agree to. Of course, any responsible government must prepare for all
1:11:05 > 1:11:10possible outcomes and we continue to do that. What planning is being
1:11:10 > 1:11:15done? We have plans across all relevant government departments.Is
1:11:15 > 1:11:20that still a very real option in the minds of governments and ministers
1:11:20 > 1:11:28like you?The very real option is we move forward now, prioritising the
1:11:28 > 1:11:31implementation period which we intend to deliver, and hope to
1:11:31 > 1:11:34deliver in March. Once we have agreed the implementation period, to
1:11:34 > 1:11:39get on with negotiating for the vision for which the Prime Minister
1:11:39 > 1:11:44has set out.She articulated a blue sky vision for the border with
1:11:44 > 1:11:48Ireland and Northern Ireland, no acceptance of a customs union to get
1:11:48 > 1:11:53over that issue, as some in Parliament have suggested.How would
1:11:53 > 1:11:57it work? One of the points of the customs union, it doesn't answer all
1:11:57 > 1:12:02of the questions.Answer how she thinks it will work?What the
1:12:02 > 1:12:05Taoiseach and the Prime Minister have agreed, the first that of rules
1:12:05 > 1:12:08which arise is through our future economic partnership. This is why we
1:12:08 > 1:12:14need a set of recognition agreements which deal with regulations on both
1:12:14 > 1:12:18sides and we need free tariff access and we need a customs agreement. If
1:12:18 > 1:12:23we do all the things which the Prime Minister set out, then I believe we
1:12:23 > 1:12:27can deliver a borderless, frictionless border in Northern
1:12:27 > 1:12:34Ireland...No checkpoints, no lorries being stopped, totally
1:12:34 > 1:12:40frictionless?I am convinced that we can do it. People need to look at
1:12:40 > 1:12:45the report from the European Parliament, and have a serious think
1:12:45 > 1:12:49about what is possible if there is the political will.You are happy
1:12:49 > 1:12:54with a closer alliance in terms of rules and regulations with the EU?I
1:12:54 > 1:12:58am happy with the way the Prime Minister has articulated her speech,
1:12:58 > 1:13:03Parliament will be sovereign and the jurisdiction of the ECJ will end and
1:13:03 > 1:13:08we will be a free enterprise country based on high standards in a race to
1:13:08 > 1:13:14the top.Steve Baker, thank you for coming to talk to us. That was the
1:13:14 > 1:13:20end of Theresa May's third Brexit speech. I have to say thank you for
1:13:20 > 1:13:23my guests coming in and keeping me company throughout the show. I will
1:13:23 > 1:13:27be back with the Daily Politics at the usual time of noon on Monday.
1:13:27 > 1:13:30Goodbye.