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LineFromTo

Hello and welcome to

the Daily Politics, where we'll be

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bringing you live coverage

from the City of London

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of Theresa May's speech on Brexit

and the UK's future relationship

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with the EU.

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We're promised it will contain a lot

of detail and some hard truths,

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but will it be enough

to satisfy her critics at home and

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unlock negotiations with Brussels.

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Welcome to the show.

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We're expecting the Prime Minister

to begin speaking shortly.

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She arrived at the Mansion House

a short while ago, that's the home

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and office of the Lord Mayor

of London - she was meant to be

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delivering this speech in Newcastle

but the bad weather put

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paid to that.

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I'm joined today by two MPs

who are very keen to hear

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what she's got to say,

they've got very different

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views on Brexit and they

are the Conservative MP

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Anne-Marie Trevelyan

and the Labour MP Emma Reynolds.

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Welcome both of you.

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We've been told that Mrs May has set

five tests for a future

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trade deal with the EU.

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So what are they?

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She'll say the deal

must respect the result

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of the 2016 EU referendum.

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Provide a lasting solution that

will endure for years.

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She'll say the deal must

protect jobs and security

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in the UK and the EU,

Maintain the UK as a modern,

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outward-looking, tolerant European

democracy And she'll say it must

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strengthen, not weaken, the ties

between the four nations of the UK.

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Anne-Marie Trevelyan, what do you

want to hear her say?

We saw this

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week, the EU's attempt which at this

shocking suggestion that somehow a

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Northern Ireland should be annexed

to the rest of Ireland. But tone was

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completely wrong so too he has set

out clearly how we see our framework

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as a nation going forward as four

Nations together, is important and

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making sure we have the clarity, the

separation away from the single

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market and Customs union.

What do

you want to hear her say?

I want her

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to explain, if we don't stay in the

customs union, how would the

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government avoid a visible border,

real border between Northern Ireland

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and the Republic of Ireland. It is a

difficult issue and I don't think

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the government have grappled with

that. I want her to show some clear

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leadership and be clear about what

the government wants rather than

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what it doesn't want, because they

haven't done that yet.

The Prime

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Minister and the billing for this

speech has been all about healing

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divisions, reach out to European

partners. Give me one compromise you

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would been prepared to make to break

the impasse?

If we needed to pay

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more money to help them balance

their books a bit longer.

So more

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than the £40 million that has been

agreed?

Yes, one of the challenges

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the EU has, with the stepping away,

it leaves them with a financial

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challenge. To help ease back, I

would live with that as a Brexiteer.

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Your colleagues are parts of the

speech may make her feel

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uncomfortable, do you share that

sentiment?

I hope they will be very

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clear. The end state the me is where

we get to, which is out of the EU so

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we are a sovereign state and we can

make decisions for ourselves.

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Anne-Marie Trevelyan says the

government should be prepared to pay

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more to get something back from the

EU, what compromise would you make

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as a Remain MP?

With the government

or the EU?

With the government in

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terms to unlock these negotiations?

I want the government to stop

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talking about the party's massa

nations and what is in the best

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interests of the country and the

best interests of constituents of

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mine, jobs. What does the government

want from these negotiations, rather

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than what it doesn't want. All we

have heard so far is red lines, we

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have heard sound bites, we have

heard breadstick means Brexit, we

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haven't had a clear vision of what

Brexit will look like under this

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government and we haven't had the

government taking on board the EU 27

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have different priorities. They have

been looking over their shoulders to

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their backbenchers to negotiate with

them and other members of the

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Cabinet.

You haven't said what you

would compromise on, what would you

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give way on in order to unlock what

have been very difficult

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negotiations between the EU and the

government?

Are you prepared to

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move? I would say to the EU I want

the closest economic partnership

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with you, and as Jeremy Corbyn set

out this week, means staying in the

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customs union, which would give the

EU more

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clout and power in negotiations with

countries.

I think that is something

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that is worth doing. He said the EU

had made a shocking announcement in

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terms of its draft proposals, do you

think they have overreached

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themselves in terms of the tone of

these negotiations?

I did trade

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negotiations when I bought and sold

companies. You get your favourable

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position and then you move somewhere

to the middle ground. I was

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surprised they would start at that

point. That is unacceptable to the

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British people and to the Northern

Irish residents. I was surprised

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they started that far along the

continuum.

There is a reason,

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because the three options in

December, the government has done

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nothing on the first two to lay out

how it would work and how it would

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avoid the hard border in Northern

Ireland.

Let's talk to our

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correspondence, Alex Forsyth. This

is not going to be a speech that

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will answer all the questions or

solve all the issues and problems

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that exist. So what is the best

people can hope for?

You are right,

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there is so much in this complex

negotiation which cannot possibly be

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resolved in 130 minute speech by the

Prime Minister. What the real

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ambition speech of this is, is

whether or not this does enough to

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convince her counterparts in

Brussels that Theresa May has some

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sort of credible plan for Brexit

rooted in reality, rather than

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rhetoric. We have heard from Michel

Barnier, the chief negotiator for

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the EU, Donald Tusk, the president

of the European Council, who

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suggested there needed to be an

injection of reality in Theresa

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May's ambition. She cannot keep

saying she wants at the spoke deal,

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she has to flesh out in practice. We

won't get huge amounts of detail, it

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will be more of persuasion she has

something to offer so they can move

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the talks on to the crucial issue of

trade. If you think back to the

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original speech she made in

Lancaster house, when she set up the

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premise of what she wanted to

achieve from Brexit. Then when she

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went to Florence to give her speech

there, they did play a part in

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unblocking negotiations when

everybody was feeling dismal about

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the process. That is what she will

be hoping to achieve from today.

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And, the tricky job of keeping her

own party and the different elements

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with in it, onside.

Alex Forsyth,

thank you and you will be watching

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the speech with the rest of us.

Let's go to Mansion house and see

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the gathering of journalists as they

wait for Theresa May to make this

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third Brexit speech. Boris Johnson

was supposed to be there, but he has

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been snowed in in Budapest. I don't

know whether that will be

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disappointment relief to the Prime

Minister! We are told it will be

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about 45 minutes. There is the Bank

of England governor, Mark Carney,

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coming in and various other

officials. I think we are expecting

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her probably to take to her feet in

the next few moments. It will be

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about 45 minutes. Anne-Marie

Trevelyan, a former Prime Minister,

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John Major, intervened this week. He

said he didn't want to undermine the

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Prime Minister Bob Bernard Jenkin

has called him an enemy of

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democracy, how do you view him?

I

wouldn't have used such harsh words

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but his position seems to be on the

preference to stay in and the

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feeling that the British people

choice to go for Brexit wasn't one

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he agreed with and he continues to

push the alternate line. Which, is

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frustrating. If we believe in

democracy and the majority Alcon,

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Brexit is what we are doing.

We can

see members of the Cabinet in have

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made it, the Brexit secretary, and

the Chancellor Philip Hammond. One

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of the issues has been getting the

Cabinet to broadly agree what is to

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be said in this speech. Again, from

what you are hearing, are your

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Brexit colleagues happy with what is

going to be said, from what they

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know?

There seems to be an upbeat

feel to last week's meetings and the

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fact everybody is moving in the same

direction. The sense of

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understanding that it is what the

British people majority asked for,

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therefore we must deliver it and

find a way forward is that works for

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everybody.

Is that because that you

believe further down the line, post

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the transition agreement, if and

when it is signed off, there would

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be an opportunity to change and I've

urge from the EU wants that

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implementation period is over?

When

we are a sovereign state once more,

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ten or 15 years down the line,

moving forward we will have free

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trade arrangements with the EU

partners and others and we will

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continue to grow businesses and

trade skills will grow.

Change what

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has been agreed now?

It will move

forward, free trade agreements will

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get added to, that is the point of

being independent.

Will the

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transition last for ten or 15 years?

I think we would both be very

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unhappy with that.

If we think about

the way the EU has behaved this

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week, is there a risk pushing too

far and too hard and stiffening the

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resolve of the government?

I think

from the EU's point of view, they

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have this agreement in December and

they needed to be flushed out.

There

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is the applause for Theresa May as

she begins her third Brexit speech

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and Mansion house.

The Prime Minister.

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Good afternoon, I am grateful for

the Lord Mayor and his team for

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hosting us here this afternoon. I

would like to take a moment before I

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begin my speech, to thank everyone

in our country who is going the

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extra mile to help people at this

time. I think that our emergency

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services and Armed Forces working to

keep people safe, NHS staff and care

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workers and all those keeping our

public services going and the many

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volunteers who are giving their time

to help those in need. Your

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contribution is a special part of

who we are as a country and it is

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all the more appreciated at a moment

like this. I am here today to set

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out my vision for the future

economic partnership between the

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United Kingdom and the European

Union. There have been many

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different voices and views in the

debate about what our new

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relationship with the EU should look

like and I have listened carefully

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to them all. But as we go forward

with the EU, I want to take a moment

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to look back. 18 months ago, I stood

in Downing Street and addressed the

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nation for my first time as Prime

Minister. I made this pledge then,

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to the people I serve. I know you

are working around the clock and

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doing your best and I know that

sometimes life can be a struggle.

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The government I lead will be

driven, not by the interests of the

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privileged few, but by yours. We

will do everything we can to give

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you more control over your lives.

When we take the big calls, we will

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think not of the powerful, but you.

When we pass new laws, we will

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listen not to the mighty, but you.

When it

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When it comes to taxes, we will

prioritise not the wealthy, but you.

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When it comes to opportunity we

won't entrench the advantages of the

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fortunate few, we will help anybody,

whatever your background to go as

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far as your talents will take you.

We are living in an important moment

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in our country's history. As we

leave the European Union we will

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forge a new, positive role for

ourselves in the world and we will

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make Britain a country that works,

not for a privileged few, but for

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everyone of us. That pledge to the

people of our United Kingdom is what

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guides me in our negotiations with

the EU.

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the EU. For me, that means five

things. First, the agreement we

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reached with the EU must respect the

referendum. It was voted to take

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control of our borders, laws and

money and a vote for wider change,

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so no community in Britain would

ever be left behind again. But it

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was not a vote for a distant

relationship with our neighbours.

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Second, the new agreement we reach

with the EU must endure. After

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Brexit, both the UK and the EU want

to forge ahead with building a

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better future for our people, not

find ourselves back at the

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negotiating table because things

have broken down. Third, it must

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protect jobs and security. People in

the UK voted for our country to have

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a new and different relationship

with Europe. But while the means may

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change, our shared goals, surely

have not. To work together, grow our

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economies and keep people safe.

Fourth, it must be consistent with

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the kind of country we want to be as

we leave, and modern, open, outward

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looking country. A nation of

pioneers, innovators, explorers and

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creators. A country that celebrates

our history and diversity, confident

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of our place in the world. That

meets its obligations to our

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neighbours and four friends and is

proud to stand up for its values.

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And fifth, in doing all of these

things, it must strengthen our union

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of nations and union of people. We

must bring our country back

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together, taking into account the

views of everyone who cares about

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this issue from both sides of the

debate. As Prime Minister, it is my

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duty to represent all of our United

Kingdom, England, Scotland, Wales

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and Northern Ireland. North and

south, from coastal tiles to our

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great cities. So these are the five

tests for the deal but we will

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negotiate.

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Delivering an outcome that is

consistent with the kind of country

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that we want to be. And bringing our

country together, strengthening the

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precious union of all our people. We

are now approaching a crucial

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moment. There is no escaping the

complexity of the task ahead of us.

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We must not only negotiate our exit

from a negotiation that touches so

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many important parts of our national

life, we must also build a new and

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lasting relationship while, given

the uncertainty inherent in the

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negotiation, preparing for every

scenario. But we are making real

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progress. At the end of last year,

we agreed the key elements of our

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withdrawal. We are in the process of

turning that agreement into draft

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legal text. We have made clear our

concerns about the first draft that

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the commission published on

Wednesday, that nobody should be in

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any doubt about our commitment to

the joint report that we agreed in

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December. We are close to agreement

on the terms of implementation

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period in which was a key element of

December's deal. Although some

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points of difference remain, I am

confident they can be resolved in

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the days ahead. Both the UK and the

EU are clear, this implimentation

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period must be time limited and

cannot become a permanent solution.

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But it is vital to give governments,

businesses and citizens on both

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sides the time they need to prepare

for our new relationship. With this

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agreed, I want both sides to turn

all our attention and efforts to

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this new relationship. But before we

can do that we need to set out in

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more detail what relationship we

want, building on my Lancaster house

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and foreign speeches. So, last month

I spoke in Munich about the security

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partnership that we seek. Today, I

want to talk about the other pillar

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of the relationship, how we build

our economic partnership. In my

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speech in Florence, I set out why

the existing models for economic

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partnership either do not deliver

the ambition we need or impose

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unsustainable constraints on our

democracy. For example, the Norway

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model, where we would stay in the

single market, would mean having to

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implement new EU legislation

automatically, and its entirety, and

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would also mean continued free

movement. Others suggested we

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negotiate a free trade agreement

similar to that which Canada has

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recently negotiated with the EU, or

trade on World Trade Organisation

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terms. But these options would mean

a significant reduction in our

0:18:020:18:06

access to each other's markets,

compared to that which we currently

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enjoy. This would mean customs and

regulatory checks at the border

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which would damage the integrated

supply chains that our industries

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depend on and be inconsistent with

the commitments that both we and the

0:18:180:18:21

EU have made in respect to Northern

Ireland. This is a wider issue in

0:18:210:18:28

our negotiations and I want to dwell

on this for a minute. Successive

0:18:280:18:31

British governments have worked

tirelessly, together with all of the

0:18:310:18:36

parties in Northern Ireland and with

the Irish government, to bring about

0:18:360:18:40

the historic achievement of peace.

This is an achievement that we

0:18:400:18:43

should all be proud of and protect.

That is why I have consistently put

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up holding the Belfast agreement at

the heart of the UK's approach. Our

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departure from the EU causes very

particular challenges for Northern

0:18:550:18:58

Ireland and for Ireland. We joined

the EU together 45 years ago, and

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this is not surprising that our

decision to leave has caused anxiety

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and a desire for concrete solutions.

We have been clear all along that we

0:19:070:19:12

don't want to go back to a hard

border in Ireland. We have ruled out

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any physical infrastructure of the

border, or any related checks and

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controls. But it is not good not to

say we will not introduce a hard

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border, if EU forces Ireland to do

it it is down to them. We chose to

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leave and we have a responsibility

to help find a solution. But we

0:19:310:19:35

can't do it on our own, it is for

all of us to work together. The

0:19:350:19:41

Taoiseach and I agreed when we met

recently that our teams and the

0:19:410:19:45

commission should now do just that.

I want to make one final point. Just

0:19:450:19:50

as it would be unacceptable to go

back to a hard border between

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Northern Ireland and Ireland, it

would also be unacceptable to break

0:19:540:19:59

up the United Kingdom's own Common

Market by creating a customs and

0:19:590:20:04

regulatory border down the Irish

Sea. My personal commitment to this

0:20:040:20:09

is clear. As Prime Minister of the

whole United Kingdom, I am not going

0:20:090:20:13

to let our departure from the

European Union do anything to set

0:20:130:20:19

back the historic progress that we

have made in Northern Ireland, nor

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will I allow anything that would

damage the integrity of our precious

0:20:220:20:26

union. So, existing models do not

provide the best way forward for

0:20:260:20:32

either the UK or the EU. But before

I turn to what a new and better

0:20:320:20:37

model may look like, I would like to

be straight with people. The reality

0:20:370:20:43

is that we all need to face up to

some hard facts. We are leaving the

0:20:430:20:48

single market. Life is going to be

different. In certain ways, our

0:20:480:20:53

access to each other's markets will

be less than it is now. How could

0:20:530:20:57

the EU structure of rights and

obligations be sustained if the UK

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or any country were allowed to enjoy

all of the benefits without all of

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the obligations? So, we need to

strike a new balance. But we will

0:21:070:21:10

not accept the rights of Canada and

the obligations of Norway. The

0:21:100:21:16

second hard fact is that even after

we have left the jurisdiction of the

0:21:160:21:21

European Court of Justice, EU law

and the decisions of the ECJ will

0:21:210:21:25

continue to affect us. For a start,

the ECJ determines whether

0:21:250:21:28

agreements that EU has struck an

illegal under the EU's own laws, as

0:21:280:21:34

the US found when the ECJ declared

the safe harbour framework for data

0:21:340:21:38

invalid. When we leave the EU, the

Withdrawal Bill will bring EU law

0:21:380:21:45

into UK law, meaning cases will be

determined in our courts, but, where

0:21:450:21:50

appropriate, our courts will

continue to look at the ECJ's

0:21:500:21:53

judgments, as they do for the

appropriate jurisprudence of other

0:21:530:21:59

countries' courts. If, as part of

the future partnership, Parliament

0:21:590:22:03

passes an identical law to the EU

law, it may make sense for our

0:22:030:22:06

courts to look at the appropriate

ECJ judgments, so that we both

0:22:060:22:10

interpret those laws consistently.

As I said in Munich, if we agree

0:22:100:22:15

that the UK should continue to

participate in the EU agency, the UK

0:22:150:22:21

would have to respect the remit of

the ECJ in that regard. But, in the

0:22:210:22:25

future, the EU treaties and hence EU

law will no longer apply in the

0:22:250:22:31

United Kingdom. The agreement we

reach must therefore respect the

0:22:310:22:35

sovereignty of both the UK and the

EU's legal orders. That means the

0:22:350:22:41

jurisdiction of the ECJ in the UK

must end. It also means the ultimate

0:22:410:22:47

arbiter of disputes about our future

partnership cannot be the court of

0:22:470:22:51

either party. The next hard fact is

this, if we want good access to each

0:22:510:22:58

other's markets, it has to be on

fair terms. As with any trade

0:22:580:23:01

agreement, we must accept the need

for binding commitments, for example

0:23:010:23:05

we might choose to commit some areas

of regulations, like state aid and

0:23:050:23:10

competition, to remain in step with

the EU's. The UK drove much of the

0:23:100:23:15

policy in that area, and we have

much to gain from maintaining proper

0:23:150:23:19

disciplines on the use of subsidies

and an anti-competitive practices.

0:23:190:23:25

Furthermore, as I said in France, we

share the same set of fundamental

0:23:250:23:28

beliefs, a belief in free trade,

rigorous and fair competition,

0:23:280:23:33

strong consumer rights and that is

trying to beat each other... Try to

0:23:330:23:35

beat each other's countries

industries by subsidising one's own

0:23:350:23:43

is a big mistake. In other areas,

like workers' rights of the

0:23:430:23:47

environment, the EU should be

confident that we will not engage in

0:23:470:23:49

a race to the bottom in standards

and protections we set. There is no

0:23:490:23:55

serious political constituency in

the UK that would support this,

0:23:550:23:57

quite the opposite. Finally, we need

to resolve the tensions around our

0:23:570:24:03

key objectives. We want the freedom

to negotiate trade agreements with

0:24:030:24:06

other countries around the world. We

want to take back control of our

0:24:060:24:10

laws. We also want as frictionless a

border as possible between us and

0:24:100:24:15

the EU, so that we don't damage the

integrated supply chain is our

0:24:150:24:19

industries depend on, and don't have

a hard border between Northern

0:24:190:24:23

Ireland and Ireland. But there are

some tensions in the EU's position,

0:24:230:24:28

too. And some hard facts for them to

face as well. The commission has

0:24:280:24:34

suggested that the only option

available to the UK is an

0:24:340:24:36

off-the-shelf model. But, at the

same time, they have also said that

0:24:360:24:41

in certain areas none of the EU's

third country agreements would be

0:24:410:24:47

appropriate, and the European

Council's guidelines aspire to a

0:24:470:24:51

balanced, ambitious and wide-ranging

deal, with common rules a number of

0:24:510:24:56

areas to ensure fair and open

competition. This would not be

0:24:560:25:01

delivered by a Canada style deal,

which would not give them the breath

0:25:010:25:04

or depth of market access that they

want. It is hard to see how it would

0:25:040:25:08

be in the EU's interests for the

UK's regulatory standards to be as

0:25:080:25:14

different as Canada's. We both need

to face the fact that this is a

0:25:140:25:19

negotiation, and neither of us can

have exactly what we want. But I am

0:25:190:25:22

confident that we can reach

agreement. We both want good access

0:25:220:25:28

to each other's markets, we want

competition between us to be fair

0:25:280:25:33

and open, and we want reliable

transparent means of verifying that

0:25:330:25:36

we are meeting our commitments and

resolving disputes. But what is

0:25:360:25:40

clear is that for us both to meet

our objectives, we need to look

0:25:400:25:48

beyond the presidents and find a new

balance. As an security, what I am

0:25:480:25:53

seeking is a relationship that goes

beyond the transactional, to one

0:25:530:25:56

that we support each other's

interests, so I wanted broadest and

0:25:560:26:03

deepest partnership possible,

covering all sectors and cooperate

0:26:030:26:06

and more fully than any free trade

agreement anywhere in the world

0:26:060:26:09

today. As I will go on to describe,

we will also need agreement on a

0:26:090:26:14

range of areas covering the breath

of our relationship. I believe this

0:26:140:26:18

is achievable because it is in the

EU's interests as well as ours. The

0:26:180:26:23

EU is the UK's biggest market and,

of course, the UK is also a big

0:26:230:26:28

market for the EU. Furthermore, we

have a unique starting point where,

0:26:280:26:32

on day one, we both have the same

laws and rules. So, rather than

0:26:320:26:37

having to bring two different

systems closer together, the task

0:26:370:26:40

will be to manage the relationship

once we are to EU separate legal

0:26:400:26:45

systems. To do so, and to realise

its level of ambition, there are

0:26:450:26:50

five foundations that must underpin

our trading relationship. First, our

0:26:500:26:54

agreement will need reciprocal,

binding commitments to ensure fair

0:26:540:27:01

and open competition. Such

agreements are part and parcel of

0:27:010:27:03

any trade agreement. After all, why

would any country and into a

0:27:030:27:08

privileged relationship without any

means of redress on the other party

0:27:080:27:12

engaged in anti-competitive

practices? The level of integration

0:27:120:27:19

between EU and UK markets, and our

geographical proximity, mean that

0:27:190:27:24

the reciprocal commitments will be

particularly important to make sure

0:27:240:27:28

that UK businesses can compete

fairly in EU markets and vice versa.

0:27:280:27:32

A deep and comprehensive agreement

with the EU will need to include

0:27:320:27:35

commitments affecting the extent to

which the UK and EU economies are

0:27:350:27:40

entwined. Second, we will need an

arbitration mechanism that is

0:27:400:27:46

completely independent, something

which again is common to free trade

0:27:460:27:49

agreements. This will ensure that

any disagreements about the purpose

0:27:490:27:52

or scope of the agreement can be

resolved fairly and promptly. Third,

0:27:520:27:58

given the close relationship we

envisage, we will need an ongoing

0:27:580:28:03

dialogue with the EU and to ensure

we have the means to consult each

0:28:030:28:06

other regularly. In particular, we

will want to make sure our

0:28:060:28:10

regulators continue to work

together, as they do with regulators

0:28:100:28:12

internationally. This will be

essential for everything from

0:28:120:28:18

getting you drugs to patients

quickly, to maintaining financial

0:28:180:28:21

stability. We start from the place

where our regulators already have

0:28:210:28:25

deep and long-standing

relationships, so the task is

0:28:250:28:27

maintaining that trust, not building

it in the first place. Fourth, we

0:28:270:28:32

will need an arrangement for data

protection. I made this point in

0:28:320:28:36

Munich in relation to our security

relationship, but the free flow of

0:28:360:28:40

data is also critical for both sides

in any modern trading relationship.

0:28:400:28:46

The UK has exceptionally high

standards of data protection, and we

0:28:460:28:50

want to secure an agreement with the

EU that provides the stability and

0:28:500:28:54

confidence for EU and UK businesses

and individuals to achieve our aims

0:28:540:28:59

in maintaining and developing the

UK's strong trading and economic

0:28:590:29:03

links with the EU. That is why we

will be seeking more than just an

0:29:030:29:08

advocacy relationship, and want to

see an appropriate ongoing role for

0:29:080:29:12

the UK's Information Commissioner's

Office. This will ensure that UK

0:29:120:29:15

businesses or effectively

represented under the EU's new

0:29:150:29:20

one-stop shop mechanism for

resolving data protection disputes.

0:29:200:29:24

Fifth, we must maintain the links

between our people. EU citizens are

0:29:240:29:28

an integral part of economic,

cultural and social fabric of our

0:29:280:29:33

country. I know that UK nationals

are viewed in entirely the same way

0:29:330:29:37

by communities across the EU. This

is why, at every stage of these

0:29:370:29:41

negotiations, I have put the

interests of EU citizens and UK

0:29:410:29:45

nationals at the heart of our

approach. We are clear that, as we

0:29:450:29:50

leave the EU, free movement of

people will come to an end, and we

0:29:500:29:54

will control the number of people

who come to live in our country. But

0:29:540:29:58

UK citizens will still want to work

and study in EU countries, just as

0:29:580:30:03

EU citizens will want to do the same

here, helping to shape and drive

0:30:030:30:07

growth, innovation and enterprise.

Indeed, businesses across the EU and

0:30:070:30:13

the UK must be able to attract and

employ the people they need, and we

0:30:130:30:17

are open to discussing how to

facilitate these valuable links.

0:30:170:30:21

Reciprocal commitments to ensure

fair and open competition, an

0:30:210:30:26

independent arbitration mechanism,

an ongoing dialogue, data protection

0:30:260:30:30

arrangements and maintaining the

links between our people. These are

0:30:300:30:33

the foundations that underpin the

ambition of this unique and

0:30:330:30:36

unprecedented partnership. It will

then need to be tailored to the

0:30:360:30:40

needs of our economies.

0:30:400:30:46

This follows the approach the EU has

taken with its trade agreements in

0:30:460:30:50

the past and indeed, with its own

single market, as it has developed.

0:30:500:30:55

The EU agreement with Ukraine sees

it aligned in some areas but not

0:30:550:31:00

others. It's a lineman with South

Korea seems to recognise each

0:31:000:31:05

other's approvals with new car

models, but that agreement with

0:31:050:31:09

Canada does not. The EU's agreement

with Canada recognises each of the's

0:31:090:31:16

testing on machinery, its agreement

with South Korea does not. The EU

0:31:160:31:20

itself is taking a tailored approach

with what it is seeking in the UK.

0:31:200:31:25

On fisheries, the commission has

been clear, no precedents exist for

0:31:250:31:29

the sort of access it once from the

UK. The fact is, every free trade

0:31:290:31:36

agreement has varying market access,

depending on the respective

0:31:360:31:40

interests of the countries involved.

If this is cherry picking, then

0:31:400:31:45

every trade arrangement is cherry

picking. Moreover, with all its

0:31:450:31:51

neighbours, the EU has varying

levels of access to the single

0:31:510:31:54

market, depending the obligations

those neighbours are willing to

0:31:540:32:00

undertake. What would be cherry

picking is if we were to seek a deal

0:32:000:32:04

where our rights and obligations

were not held in balance. And I have

0:32:040:32:09

been categorically clear that is not

what we are going to do. I think it

0:32:090:32:14

is pragmatic common sense that we

should work together to deliver the

0:32:140:32:17

best outcome for both sides. Let me

start with how we do this for goods.

0:32:170:32:22

This is the area where the single

market is most established in both

0:32:220:32:27

the UK and EU have a strong

commercial interest in preserving

0:32:270:32:33

integrated supply chains that have

built up over 40 years of our

0:32:330:32:35

membership. When it comes to goods,

the fundamental principle in our

0:32:350:32:41

negotiating strategy should be

betrayed at the UK, EU border should

0:32:410:32:45

be as frictionless as possible. That

means we don't want the introduction

0:32:450:32:50

of any tariffs or quotas. And as the

secretary of state set out in his

0:32:500:32:57

speech last week in Vienna, products

only need to undergo one series of

0:32:570:33:02

approvals in one country to show

they meet the regulatory standards.

0:33:020:33:06

For this we would need a

comprehensive system of mutual

0:33:060:33:10

recognition. The UK would need to

make a strong commitment its

0:33:100:33:15

regulatory standards would remain as

high as the EU's and that would mean

0:33:150:33:20

EU and UK regulatory standards would

remain substantially similar in the

0:33:200:33:23

future. Many of these regulatory

standards are themselves underpinned

0:33:230:33:29

by international standards set by

non-EU bodies, of which we will

0:33:290:33:33

remain a member. Such as the UN

economic commission for Europe,

0:33:330:33:36

which sets a vehicle safety

standards.

0:33:360:33:44

standards. Countries around the

world, including Turkey, South

0:33:440:33:45

Africa, South Korea, Japan and

Russia are party to the agreement.

0:33:450:33:48

As I said in my speech in Florence,

this could be achieved in different

0:33:480:33:52

ways. Our default is UK law might

not necessarily be identical to EU

0:33:520:33:58

law, but it should achieve the same

outcomes. In some cases, parliament

0:33:580:34:03

might choose to pass an identical

law. Businesses who export to the EU

0:34:030:34:08

tell us it is strongly in their

interest to have a single set of

0:34:080:34:12

regulatory standards that mean they

can sell into the UK and EU markets.

0:34:120:34:16

If the Parliament of the day decided

not to achieve the same outcomes as

0:34:160:34:25

EU law, it would be in the knowledge

there may be consequences for our

0:34:250:34:28

market access and there would need

to be an independent mechanism to

0:34:280:34:30

oversee these arrangements. We would

also want to explode the EU, the

0:34:300:34:33

terms of which the UK should remain

part of the agencies that are

0:34:330:34:39

critical for medicines and Aero

agencies.

0:34:390:34:47

agencies. We would of course accept

this would be abiding by the rules

0:34:470:34:51

of those agencies in making

appropriate financial contribution.

0:34:510:34:55

But I want to explain what I believe

the benefits of this approach could

0:34:550:34:59

be both for us and you. First,

associate membership of these

0:34:590:35:03

agencies is the only way to meet our

objective to ensure these products

0:35:030:35:06

only need to go one series of

approvals in one country. Second,

0:35:060:35:11

these agencies have a critical role

in setting and enforcing relevant

0:35:110:35:15

rules. If we were able to negotiate

associate membership, we could

0:35:150:35:20

ensure we could prevent new to

provide our technical expertise.

0:35:200:35:25

Third, associate membership could

permit UK firms to resolve certain

0:35:250:35:30

challenges related to the agencies

through UK courts, rather than the

0:35:300:35:35

ECJ. For example in the case of

Scotland, associate -- Switzerland,

0:35:350:35:43

means her worthiness certifications

are granted by its own aviation

0:35:430:35:46

authority and disputes are resolved

through its courts without its

0:35:460:35:50

membership, Swiss airlines would

need to gain their certificates to

0:35:500:35:54

another member state or to the

agency and any dispute would need to

0:35:540:35:58

be resolved through the ECJ. Fourth,

it would bring other benefits. For

0:35:580:36:03

example, membership of the European

medicines agency would mean

0:36:030:36:08

investment in new medicines

continuing in the UK and it would

0:36:080:36:10

mean these medicines getting to

patients faster as firms prioritise

0:36:100:36:16

larger markets when they start the

lengthy process of seeking

0:36:160:36:18

authorisations. It would also be

good for the EU, because the UK

0:36:180:36:25

regulator assesses more new

medicines than any other member

0:36:250:36:28

state. The EU would continue to

access the expertise of the UK's

0:36:280:36:35

world leading universities. And of

course, Parliament would remain

0:36:350:36:39

ultimately sovereign. It could

decide not to access these rules,

0:36:390:36:44

but with consequences for our

membership of the relevant agency

0:36:440:36:50

and market access rights. Lastly, to

achieve a frictionless border as

0:36:500:36:58

possible and avoid the hard border.

Let me repeat, to avoid a hard

0:36:580:37:02

border between Northern Ireland and

Ireland. We also need an agreement

0:37:020:37:06

on customs. The UK has been clear it

is leaving the customs union. The EU

0:37:060:37:12

has also formed a customs union with

some other countries. But those

0:37:120:37:16

arrangements, if applied to the UK

cake would mean the EU setting the

0:37:160:37:21

UK's external tariffs, being able to

let other countries sell more to the

0:37:210:37:26

UK without making it any easier for

us to sell to them or the UK signing

0:37:260:37:30

up to the UK commercial policy. That

would not be compatible with a

0:37:300:37:37

meaningful, independent trade

policy. It would mean we have less

0:37:370:37:39

control than we do now over our

trade in the world. Neither leave or

0:37:390:37:45

remain voters would want that. We

thought seriously about how our

0:37:450:37:49

commitment to a frictionless border

could be delivered. Last year we set

0:37:490:37:54

out two potential options. Option

one, is a customs partnership

0:37:540:37:59

between the UK and the EU. At the

border, the UK would mirror the EU's

0:37:590:38:04

requirements for imports from the

rest of the world, applied the same

0:38:040:38:08

tariffs and the same rules of origin

as the EU. For those goods arriving

0:38:080:38:12

in the UK and intended for the EU.

By following this approach, we would

0:38:120:38:20

know all goods entering the EU via

the UK pay the right EU duties,

0:38:200:38:23

removing the need for customs

processes at the border.

0:38:230:38:27

Importantly, we were put in place a

mechanism, so the UK would also be

0:38:270:38:31

able to apply its own tariffs and

trade policy for goods intended for

0:38:310:38:36

the UK market. As we have set out

previously, this would require the

0:38:360:38:40

means to ensure both sides can trust

the system and a robust enforcement

0:38:400:38:45

mechanism. Option two would be a

streamlined customs arrangement,

0:38:450:38:50

where we would agree to implement a

range of measures to minimise

0:38:500:38:54

friction is to trade together with

specific provisions for Northern

0:38:540:38:57

Ireland. First, measures to require

the movement of goods across borders

0:38:570:39:03

are as simple as possible and we

should waive the requirement for

0:39:030:39:07

exit and entry declarations for

goods moving between the UK and the

0:39:070:39:11

EU. We should allow goods moving

between the UK and the rest of the

0:39:110:39:15

world to travel through the EU

without paying EU duties and vice

0:39:150:39:19

versa. Measure to reduce the risk of

delays at ports and airports by

0:39:190:39:26

recognising each other's trusted

trade schemes and drawing on IT

0:39:260:39:30

solutions so vehicles don't need to

stop at the border. Third, continue

0:39:300:39:36

our cooperation to mitigate customs

duty and security risks. And fourth,

0:39:360:39:40

measure to reduce the cost and

burden of complying with customs

0:39:400:39:45

admin of requirements, including by

maximising the use of automation.

0:39:450:39:50

And recognising the unique

circumstances in Northern Ireland

0:39:500:39:53

and our shared commitments to

avoiding a hard border, we should

0:39:530:39:57

consider further measures. 80% of

north-south trade is carried out by

0:39:570:40:04

Micro, small and medium-sized

businesses. So the smaller traders,

0:40:040:40:07

whose members of the community are

most effective but whose economic

0:40:070:40:11

role is not systemically significant

for the EU market, we would allow

0:40:110:40:15

them to continue to operate as they

do currently, with no new

0:40:150:40:19

restrictions. The larger traders, we

would introduce streamlined

0:40:190:40:23

processes including a trusted trade

scheme that would be consistent with

0:40:230:40:27

our commitments. Both of these

options for our future customs

0:40:270:40:33

arrangement would lead the UK free

to determine its own tariffs with

0:40:330:40:36

third countries, which would simply

not be possible in a customs union.

0:40:360:40:42

I recognise some of these ideas

depend on technology, robust systems

0:40:420:40:47

to ensure trust and confidence as

well as goodwill, but they are

0:40:470:40:51

serious and merit consideration by

all sides. So to conclude on goods,

0:40:510:40:57

fundamental principle in our

negotiating strategy is that trade

0:40:570:41:00

at their UK EU border should be as

frictionless as possible with no

0:41:000:41:05

hard border between Northern Ireland

and Ireland. We believe this can be

0:41:050:41:09

achieved via a commitment to ensure

the relevant UK regulatory standards

0:41:090:41:14

remain at least as high as the EU's

and a customs arrangement. We

0:41:140:41:19

recognise this would constrain our

ability to lower regulatory

0:41:190:41:23

standards for industrial goods, but

in practice we are unlikely to want

0:41:230:41:29

to reduce our standards because the

British public would punish any

0:41:290:41:33

government at the ballot box. This

approach for trading goods is good

0:41:330:41:38

for agriculture, food and drinks but

other consideration also apply. We

0:41:380:41:42

are leaving the common agricultural

policy and will want to take the

0:41:420:41:46

opportunity that brings to reform

our agricultural and fisheries

0:41:460:41:50

management. The UK has among the

highest environmental and animal

0:41:500:41:54

welfare standards of any nation on

earth. As we leave the EU, we will

0:41:540:41:59

uphold environmental standards and

go further to protect our shared

0:41:590:42:05

natural heritage. And I expect our

standards will remain at

0:42:050:42:13

standards will remain at least as

high as the EU's. But it will be

0:42:170:42:19

particularly important to secure

flexibility to ensure we can make

0:42:190:42:21

the most of the opportunities

presented by car withdrawal from the

0:42:210:42:23

EU for farmers and exporters. We are

leaving the common fisheries policy.

0:42:230:42:29

The UK will regain control over

domestic fisheries rules and access

0:42:290:42:33

to our waters. But as part of the

economic partnership, we want to

0:42:330:42:38

work together to manage shared

stocks in a sustainable way and

0:42:380:42:42

agree reciprocal access to the

waters and a fairer allocation of

0:42:420:42:45

fishing opportunities for the UK

fishing industry. We will also want

0:42:450:42:50

to ensure open markets for each

other's products. Just as our

0:42:500:42:55

partnership in goods needs to be

deeper than any other free

0:42:550:43:00

agreement, so in services, we have

the opportunity to break new ground

0:43:000:43:04

with a broader agreement than ever

before. We recognise that certain

0:43:040:43:10

aspects of trade services are

intrinsically linked to the single

0:43:100:43:13

market and a market access in these

areas will need to be different. But

0:43:130:43:17

we should only allow new barriers to

be introduced when absolutely

0:43:170:43:21

necessary. We don't want to

discriminate between EU service

0:43:210:43:25

providers in the UK and we wouldn't

want the EU to discriminate against

0:43:250:43:30

UK service providers. We want to

limit the number of barriers that

0:43:300:43:34

would prevent UK firm setting up in

the EU and vice versa. And agree

0:43:340:43:40

appropriate labour mobility

framework, that enables UK

0:43:400:43:44

businesses and self employed

professionals to travel to the EU,

0:43:440:43:47

to provide services to clients in

person and that allows UK businesses

0:43:470:43:51

to provide services to the EU over

the phone and Internet. We want to

0:43:510:43:58

do the same for EU firms providing

services to the UK. Given UK

0:43:580:44:05

qualifications are recognised across

the EU and vice versa, it would make

0:44:050:44:09

sense to recognise each other's

qualifications in the future. There

0:44:090:44:13

are two areas which have never been

covered in a free-trade agreement in

0:44:130:44:18

any meaningful way. Broadcasting and

despite the EU's best efforts in the

0:44:180:44:25

Transatlantic Trade and Investment

Partnership, financial services. But

0:44:250:44:27

we have some ideas for how we can do

this and it is in all our interests

0:44:270:44:32

to explore these. On broadcasting we

recognise we cannot have exactly the

0:44:320:44:36

same arrangements with the EU as we

do now.

0:44:360:44:43

do now. Currently because of the

country of origin principle, a

0:44:470:44:49

company based in the UK can be

licensed by off, and broadcast into

0:44:490:44:52

any EU member state and vice versa.

The relevant directive will not

0:44:520:44:54

apply to the UK as leave the EU and

relying on precedents will hurt

0:44:540:44:58

consumers and businesses on both

sides. The UK's creative hub leads

0:44:580:45:01

to the development is a product that

European consumers want. The UK

0:45:010:45:05

currently provides around 30% of the

channels available in the EU. But

0:45:050:45:12

equally, many UK companies have

pan-European ownership and there are

0:45:120:45:16

35 channels and on demand services

which are offered in the UK, but

0:45:160:45:19

licensed in the EU.

0:45:190:45:23

We should export creative options

with a open mind, including mutual

0:45:230:45:30

recognition, allowing for Frontier

broadcasting, recognising the

0:45:300:45:33

enriching role that British

broadcasters and programme makers

0:45:330:45:35

play, not only in British but, more

broadly, in our common, European

0:45:350:45:40

culture. Similarly, on financial

services, the Chancellor will be

0:45:400:45:44

setting out next week our financial

services, and how they can and

0:45:440:45:49

should be part of a comprehensive

partnership. We are not looking for

0:45:490:45:52

passporting because we understand

this is intrinsic to the single

0:45:520:45:55

market, of which we would no longer

be a member. It would also require

0:45:550:45:58

us to be subject to a single rule

book over which we would have no

0:45:580:46:02

say. The UK has responsibility for

the financial stability of the

0:46:020:46:08

world's most significant financial

centre, and our taxpayers bear the

0:46:080:46:13

risk. So, it would be unrealistic

for us to implement new EU

0:46:130:46:17

legislation automatically, and in

its entirety. But with UK located

0:46:170:46:23

banks underwriting around half of

the debt and equity issued by EU

0:46:230:46:29

companies, providing more than £1.1

trillion of lending to the rest of

0:46:290:46:36

the EU in 2015 alone, this is a

clear example of where only looking

0:46:360:46:40

at precedent would hurt both the UK

and the EU economies. As in other

0:46:400:46:45

areas of future economic

partnership, our goal should be to

0:46:450:46:49

establish the ability to access each

other's markets, based on the UK and

0:46:490:46:57

EU maintaining the same regulatory

outcomes over time, with a mechanism

0:46:570:47:02

for propulsion consequences where

they are not maintained. Given the

0:47:020:47:06

highly regulated area of financial

services, and our shared desire to

0:47:060:47:10

manage financial stability risks, we

would need a collaborative,

0:47:100:47:14

objective framework that is

reciprocal, mutually agreed and

0:47:140:47:18

permanent, and therefore reliable

for businesses. There are many other

0:47:180:47:23

areas where the UK and EU economies

are closely linked, including

0:47:230:47:29

energy, transport, digital, Law,

science and innovation, education

0:47:290:47:32

and culture. One energy, we want to

secure broad energy cooperation with

0:47:320:47:35

the EU. This includes protecting the

single electricity market across

0:47:350:47:42

Ireland and Northern Ireland, and

options for the UK's continued

0:47:420:47:47

participation in the EU's internal

energy market. We also believe it is

0:47:470:47:51

of benefit for both sides for the UK

to have a close association

0:47:510:47:59

to have a close association with

Euratom. We want to protect the

0:47:590:48:01

rights of road hauliers to access

the EU market and vice versa. One

0:48:010:48:09

digital, the UK will not be part of

the single digital market, which

0:48:090:48:13

will continue to develop after our

withdrawal from the EU. This is a

0:48:130:48:17

fast evolving, innovative sector, in

which the UK is a world leader, so

0:48:170:48:22

it will be particularly important to

have domestic flexibility to ensure

0:48:220:48:27

the regulatory environment can

always respond nimbly and

0:48:270:48:30

ambitiously to new developments. We

want our agreement to cover several

0:48:300:48:37

judicial Corporation, where the EU

has already shown it can reach

0:48:370:48:39

agreement with non-member states,

such as through the regard no

0:48:390:48:43

convention, although we would want a

broader agreement which reflects our

0:48:430:48:46

unique starting point, and our

agreement will also need to cover

0:48:460:48:51

company law and intellectual

property to provide further legal

0:48:510:48:54

certainty and coherence. The UK is

also committed to establishing a

0:48:540:49:00

far-reaching science and innovation

packed with the EU, facilitating the

0:49:000:49:04

exchange of ideas and researchers.

That would enable the UK to

0:49:040:49:08

participate in key programmes

alongside our EU partners. We want

0:49:080:49:12

to take a similar approach to

education and cultural programmes,

0:49:120:49:16

to promote our shared values and

enhance our intellectual strength in

0:49:160:49:19

the world. Again, making an ongoing

contribution to cover our fair share

0:49:190:49:25

of the costs involved. In all of

these areas, bold and creative

0:49:250:49:30

thinking can deliver new agreements

that are in the very best interests

0:49:300:49:34

of all of our people, both in the UK

and across the EU. In the face of a

0:49:340:49:41

worrying rise in protectionism, I

believe such agreements can enable

0:49:410:49:44

us to set an example to the world.

For the world is watching. We should

0:49:440:49:52

not think of our leaving the EU as

marking and ending, so much as a new

0:49:520:49:59

beginning for the United Kingdom and

our relationship with our European

0:49:590:50:02

allies. Change is not to be feared,

so long as we face it with a

0:50:020:50:07

clear-sighted determination to act

for the common good. Nor is Brexit

0:50:070:50:11

an end in itself, rather it must be

the means by which we reaffirm

0:50:110:50:17

Britain's place in the world and

renew the ties that bind us here at

0:50:170:50:21

home. I know that the United Kingdom

I treasure can emerge from this

0:50:210:50:27

process a stronger, more cohesive

nation. They United Kingdom which is

0:50:270:50:33

a cradle for innovation, a leader in

the industries of the future, a

0:50:330:50:36

champion of free trade are based on

high standards, a modern, outward

0:50:360:50:43

looking, tolerant country, proud of

our values and confident of our

0:50:430:50:47

place in the world. This is an

optimistic and confident future

0:50:470:50:50

which can unite us all. A global

Britain which thrives in the world,

0:50:500:50:56

by forging a bold and comprehensive

economic partnership with our

0:50:560:51:00

neighbours in the EU and reaches out

beyond our continent, to trade with

0:51:000:51:04

nations across the globe. The

approach that I have set out today

0:51:040:51:09

would implement the referendum

result, provide an enduring

0:51:090:51:13

solution, protect our security and

prosperity, help us build the kind

0:51:130:51:17

of country we want to be and bring

our country together by commanding

0:51:170:51:23

the confidence of those who voted

Leave and those that voted Remain.

0:51:230:51:27

It is an approach to deliver for the

whole of our United Kingdom, and our

0:51:270:51:31

wider family of overseas

territories. I am in no doubt that,

0:51:310:51:36

whatever agreement we reach with the

EU, our future is bright. The

0:51:360:51:41

stability and continuity of

centuries of self-government, our

0:51:410:51:46

commitment to freedom under the rule

of law, our belief in enterprise and

0:51:460:51:50

innovation, but, above all, the

talent and genius of all of our

0:51:500:51:55

people, and especially our young

people, are the seeds of our success

0:51:550:51:59

in the future, as they have been the

guarantors of our success in the

0:51:590:52:04

past. I look forward to discussing

our future partnership with our

0:52:040:52:08

European friends. Because, although

we are leaving the EU, and in that

0:52:080:52:13

regard we will become separate, we

are all still European and will stay

0:52:130:52:19

linked by the many ties and values

we have in common. It is only by

0:52:190:52:26

working together that we will find

solutions that work for all our

0:52:260:52:30

peoples. Yes, there will be ups and

downs in the months ahead, as in any

0:52:300:52:35

negotiation no one will get

everything they want. We will not be

0:52:350:52:39

buffeted by those wanting a

walk-out.

0:52:390:52:52

It is my responsibility as Prime

Minister to provide that leadership

0:52:520:52:55

for our country at this crucial

time. By following the course I set

0:52:550:53:00

out today, I am confident we will

get there and deliver the right

0:53:000:53:04

outcome for Britain and the EU. A

generation from now, what will be

0:53:040:53:11

remembered is not the rough and

tumble of negotiation but whether we

0:53:110:53:15

reached and injuring solution, the

interests of the people that we are

0:53:150:53:19

all here to serve. My message to our

friends in Europe is clear. We know

0:53:190:53:27

what we want, we understand your

principles, we have a shared

0:53:270:53:31

interest in getting this right. So

let's get on with it. Thank you.

0:53:310:53:36

APPLAUSE

0:53:360:53:42

Theresa May, ending at 45 minute

speech, the third Brexit speech,

0:53:430:53:47

with an optimistic note and our

message to the EU. Trying to answer

0:53:470:53:52

the criticism, by stating that she

does know what she wants. They have

0:53:520:53:55

criticised her for saying that she

doesn't. There are also going to be

0:53:550:53:59

questions and answers to the Prime

Minister now. Let's go back over

0:53:590:54:02

what she said. She started the

speech by returning to what she said

0:54:020:54:05

on the steps of Downing Street. A

country that works for everyone, not

0:54:050:54:10

a privileged few. That was the

template for the whole of this

0:54:100:54:13

Brexit speech. She quickly dismissed

the existing models for Britain, in

0:54:130:54:16

terms of Norway and Canada. She said

they would not work for the UK,

0:54:160:54:22

going forward. Then it was a speech

of hard choices. She did actually

0:54:220:54:27

answer some of the big questions.

She said life was going to be

0:54:270:54:31

different when we leave the EU, we

are leaving the single market, which

0:54:310:54:35

she has stated before, and our

access is going to be less. We have

0:54:350:54:39

not heard her say that. No, they are

not going to be able to have their

0:54:390:54:43

cake and eat it, which some of the

Cabinet had said in the past. She

0:54:430:54:48

also said that EU law and decisions

of the European Court of Justice

0:54:480:54:52

will continue to affect us in

certain instances. She gave various

0:54:520:54:57

examples of that, if you pass the

same law as the EU it may make sense

0:54:570:55:01

to look at what the European Court

of Justice has done in the past. She

0:55:010:55:05

then pointed to some of the tensions

that exist for the European Union.

0:55:050:55:09

She said that their position is also

incompatible. She said the UK has

0:55:090:55:18

been told it has to have an

off-the-shelf model, but said that

0:55:180:55:21

none of the third country agreements

that have already been done would be

0:55:210:55:25

suitable for Britain. She said that

was negotiation, and that was

0:55:250:55:29

obviously meant for Michel Barnier,

the EU negotiator, and neither side

0:55:290:55:33

can have exactly what we want. That

is the first time we have heard that

0:55:330:55:37

sort of language. There was one

statement that may upset some of the

0:55:370:55:41

Brexiteers, and also my guest in the

studio, reciprocal binding

0:55:410:55:46

commitments to guarantee fair and

open competition. How far did she

0:55:460:55:51

see mirroring the European rules and

regulations going forward? But in a

0:55:510:55:54

strong riposte to Michel Barnier's

criticism of cherry picking, that

0:55:540:55:58

the UK can't do, she said every

trade agreement is cherry picking.

0:55:580:56:02

In that instance, we should be able

to find a third way. That has been

0:56:020:56:08

rejected, of course, by the EU. She

said no to a customs union, that

0:56:080:56:12

will upset some of the Remain

colleagues in the Conservative

0:56:120:56:16

Party. Again, an Northern Ireland,

it was not entirely clear how she

0:56:160:56:20

sees this frictionless border

working between Ireland and Northern

0:56:200:56:24

Ireland when it comes to goods going

across what she says will be a

0:56:240:56:30

frictionless border, and no hard

border will be erected. The customs

0:56:300:56:33

partnership that she talked about

will narrate EU rules of origin. So,

0:56:330:56:38

she is still looking for a third

way. It has actually given ground,

0:56:380:56:44

if you like, to say that Britain is

not going to get everything at once.

0:56:440:56:48

It was a reality check for

Brexiteers like you. You are not

0:56:480:56:52

going to be up to have your cake and

eat it, you have to put up with less

0:56:520:56:55

market of the single market, which

was not what will set out by the

0:56:550:56:59

Brexit Secretary?

What I heard was

the most optimistic and positive

0:56:590:57:02

tone I think I have heard from the

Prime Minister in a long time. I

0:57:020:57:06

think the words that came out most

from the whole speech were

0:57:060:57:09

reciprocity, fair and open

competition. The fact that she has

0:57:090:57:12

been fairly clear that she is happy

to be flexible, that we must be

0:57:120:57:17

flexible, but that the EU must as

well. We want them to be as good a

0:57:170:57:20

place as we want to be, in a

different relationship, a deep and

0:57:200:57:25

special relationship. She kept

reiterating those words. That energy

0:57:250:57:28

that everybody needs to come to to

get to a situation that works for

0:57:280:57:31

everybody.

But no customs union, not

in the way that you would like to

0:57:310:57:36

see. Do you accept that another way

can be found to keep Northern

0:57:360:57:40

Ireland part of the UK but still

have frictionless trade?

No, she

0:57:400:57:45

talked about two other options. As

far as I can see it, they still do

0:57:450:57:49

not stop Northern Ireland possibly

becoming a back door into the rest

0:57:490:57:52

of the EU via the Republic of

Ireland, on standards, rules of

0:57:520:57:57

origin. I just don't see how it

works, to be quite frank. Either you

0:57:570:58:01

are in the customs union and you

avoid that visible hard border, or

0:58:010:58:04

you are not and you will have to

have some checks. There are no other

0:58:040:58:08

countries in the rest of the world,

there are no other countries that

0:58:080:58:12

avoid a border. You've got Sweden

and Norway, there are checks on

0:58:120:58:15

lorries going across the border.

You've got Canada and the US, there

0:58:150:58:20

are checks on lorries going across

those borders. It is just not going

0:58:200:58:24

to fly, what she talked about, with

regard to the other options.

What do

0:58:240:58:28

you say to that? If there are

checks, it will be a hard border?

We

0:58:280:58:32

need to see how it pans out. She

mentioned the Taoiseach, working

0:58:320:58:36

with him to find a way that will

work for everybody so there isn't a

0:58:360:58:38

hard border. She has been clear that

is not acceptable.

That is the

0:58:380:58:46

objective, but there is no clear

route without the customs union.

0:58:460:58:48

Let's speak now to the Conservative

MP Anna Soubry, she's been a critic

0:58:480:58:51

of the government's position over

Brexit.

0:58:510:58:54

What was your reaction?

To be

welcomed, in the sense that the

0:58:540:58:57

Prime Minister is clearly waking up

to the realities. I think she has

0:58:570:59:01

always known that, actually, look,

she is facing a very difficult task.

0:59:010:59:06

Well, we know that!

Exactly. She has

the difficulties she has within the

0:59:060:59:10

Conservative Party and that is a

fact. I think she is beginning to

0:59:100:59:15

bring people together. If she

achieves that, it will be

0:59:150:59:17

remarkable, and good luck to her.

The other thing that I think she is

0:59:170:59:21

now appreciating, or at least

talking about, is this huge gulf

0:59:210:59:25

that exists between what the EU has

made very clear is there Brexit

0:59:250:59:29

reality, and where we have been. I

think we are seeing that she is now

0:59:290:59:35

publicly explaining that, and she is

saying, at the moment, the way that

0:59:350:59:39

she is falling, that we will not

have the access that we have had in

0:59:390:59:44

the past. That is not what David

Davis promised.

Do you accept that,

0:59:440:59:48

that in order to have a new

relationship, to strike out on free

0:59:480:59:53

trade deals as a third country, to

still maintain those high

0:59:530:59:57

regulations, we won't be able to

have the same access?

No, I'm afraid

0:59:571:00:01

I don't accept any of these things.

Nobody voted to be poorer. What

1:00:011:00:05

we're talking about is an acceptance

that our economic prosperity will

1:00:051:00:09

not be as good. May I just say, it

is very important that we lance this

1:00:091:00:16

boil about free trade agreements.

The Government's own analysis shows

1:00:161:00:20

that even if we got all of the free

trade agreement is available, and

1:00:201:00:23

God knows we have already got 40 of

them, they will not make good the

1:00:231:00:30

damage that will be caused to our

economy by leaving the single

1:00:301:00:33

market.

This is a negotiation, as

Theresa May has said. It is a

1:00:331:00:37

negotiation for the EU as well. It's

all very well for them to reject

1:00:371:00:40

everything that has been put on the

table so far, that having listened

1:00:401:00:44

to the speech from Theresa May,

would you expect them to move and

1:00:441:00:47

look more closely at a bespoke deal?

The big problem everybody is missing

1:00:471:00:57

is that we want any canonic solution

that keeps us in prosperity.

But she

1:00:571:01:02

said every free trade agreement is

cherry picking, that is true?

When

1:01:021:01:06

you have a free trade agreement,

both sides want to do the same for

1:01:061:01:10

their respective economies. This is

the mistake that is being made. For

1:01:101:01:13

us it is about the economy. For the

EU it is a political set of

1:01:131:01:19

negotiations in the sense that they

have to maintain the integrity of

1:01:191:01:22

the remaining 27 countries. This is

the big question to be asked.

1:01:221:01:30

Harmony German car manufacturers

have been to the German government

1:01:301:01:35

and said, for goodness' sake, do a

great deal with the UK because we

1:01:351:01:38

needed because of the market? Not

one. Because they understand the

1:01:381:01:45

integrity of the single market and

the customs union is absolutely

1:01:451:01:47

overpoweringly more important.

Truthfully, they can continue to get

1:01:471:01:54

FTAs at other countries that will

make good any drop in the sales to

1:01:541:01:58

our country. That is the harsh

reality that we have got to wake up

1:01:581:02:02

to.

1:02:021:02:08

She is not to be seen as some hard

Brexiteer.

It might be uncomfortable

1:02:211:02:26

if others...

We are both members of

Her Majesty 's government.

Don't

1:02:261:02:35

promote Anna Soubry gesture to the

government. Not sure that would

1:02:351:02:39

happen anyway. In terms of

Brexiteers they not be happy because

1:02:391:02:43

we say we are leaving the EU,

leaving the single market and the

1:02:431:02:49

customs union and we shouldn't have

the European Court of Justice

1:02:491:02:52

overseen.

We should not seek to

tarnish people with the same brush.

1:02:521:02:58

There are different sorts of people

who voted for Brexit. You have the

1:02:581:03:02

hard Brexiteer is, the one you have

spoken about.

Slung out of the

1:03:021:03:07

party.

I identified Theresa May as

the person who had done that. We are

1:03:071:03:16

those with hard Brexit, and then

there are many who voted obviously

1:03:161:03:20

to leave, but they are not the

hardliners. I have been approached

1:03:201:03:26

by three, only in the last week, all

of whom voted leave, but now are

1:03:261:03:32

seeing the

1:03:321:03:42

seeing the value of EFTA and there

is a shift.

Would you accept that

1:03:421:03:47

sort of shift?

We set out the

framework the Prime Minister wants

1:03:471:03:55

to see.

How do you bring Anna Soubry

on board?

We will keep working

1:03:551:04:00

together as best as we can.

Do you

think it is going to be possible?

1:04:001:04:06

One of the challenges and beauty of

sovereignty is we will get to a

1:04:061:04:09

point where we can all live for the

outcome, it won't be perfect for me,

1:04:091:04:13

it won't be perfect for you.

Can you

live with it? I am an old-fashioned,

1:04:131:04:21

pragmatic conservative, it runs all

the way through me. We both know

1:04:211:04:25

there are some in our party who are

not of that way, they are hardline

1:04:251:04:28

and they

1:04:281:04:36

and they will not shift. That

speech, the way she positioned it,

1:04:361:04:38

the reality she has accepted, the

judgments of the ECJ, is welcome

1:04:381:04:42

news. The reality of the

difficulties in Northern Ireland.

1:04:421:04:45

Emma Reynolds is absolutely right,

there needs to be an alternative and

1:04:451:04:50

non-is forthcoming.

What Theresa May

has just said in answer to a

1:04:501:04:54

question post this speech is no deal

is still better than a bad deal, do

1:04:541:04:59

you agree?

No, what I want to see is

the European Union making this

1:04:591:05:06

clear, there are many options that

will face us. I say in good faith, I

1:05:061:05:11

wish Theresa May all the best.

In

the way John Major did when he made

1:05:111:05:15

his speech?

I am not talking about

John Major.

He also wished her well.

1:05:151:05:23

I am saying this Prime Minister

wants the right thing for our

1:05:231:05:26

country and is driven by a sense of

public duty.

Does it worry you she's

1:05:261:05:33

saying no deal is better than a bad

deal?

Of course, when it comes to

1:05:331:05:39

the withdrawal agreement in October,

the EU has made it clear we still

1:05:391:05:43

have options. The agreement, we can

stay or become like Norway. It is

1:05:431:05:49

important parliament and the public

know there is an alternative to the

1:05:491:05:53

sorts of Brexit that unfortunately

is being put forward at the moment.

1:05:531:05:57

But the Prime Minister, her speech

is to be welcomed, she is moving in

1:05:571:06:02

the right direction and facing

Brexit reality.

Anna Soubry, thank

1:06:021:06:06

you. Emma Reynolds, Parliament is

sovereign she said, but could reject

1:06:061:06:12

EU regulations and standards but

accepted the UK would be locked out

1:06:121:06:16

in terms of access, what did you

make of that?

I welcome the fact she

1:06:161:06:21

has acknowledged we will not have

the same type of access to the

1:06:211:06:24

single market if we do not abide by

the rules and if we leave the single

1:06:241:06:28

market. But I would like her to

spell out what that means in terms

1:06:281:06:32

of jobs and investment. According to

the leaked report we saw on those

1:06:321:06:40

feet, it will mean growth will be

less than it would be if we stayed

1:06:401:06:43

in the single market and there will

be a threat to jobs and investment.

1:06:431:06:47

I would like to see has spell out in

Parliament when she comes to do her

1:06:471:06:51

statement, and I will ask her and

maybe Steve Baker could enlighten

1:06:511:06:55

us, it is good she had recognised

there are hard choices and we won't

1:06:551:06:59

have the same access to the EU

market. What does that mean in terms

1:06:591:07:03

of jobs and investment.

1:07:031:07:05

We're joined now by the Brexit

minister Steve Baker.

1:07:051:07:09

Theresa May conceded there will have

to be less access to the single

1:07:091:07:13

market at the Brexit, but David

Davis famously promised last year,

1:07:131:07:18

the exact same benefits in terms of

access to the single market after

1:07:181:07:21

Brexit, as we have now. Has the

government realised Brexit reality,

1:07:211:07:28

it is impossible to have back?

The

Prime Minister set out an ambitious

1:07:281:07:32

and credible plan and I think we can

be proud of what has been set out.

1:07:321:07:36

If we go forward with the plan, it

will serve our interest and the

1:07:361:07:41

European Union's.

Do you accept that

was was promised to the UK by the

1:07:411:07:46

Brexit secretary and others is now

possible?

The speech, as it was set

1:07:461:07:52

out should be taken on its own

terms. She set out how we can have

1:07:521:07:56

an enduring relationship with the

European Union, a vision on which

1:07:561:07:58

the country can unite and I'm

looking forward to delivering it.

1:07:581:08:03

Can you unite and support the speech

and some of the suggestions she made

1:08:031:08:07

in Britain staying in permanent

locks that in certain areas like

1:08:071:08:11

state aid, workers' rights and the

environment, where you pleased to

1:08:111:08:15

hear that?

We have been on a journey

of these speeches where the

1:08:151:08:20

Secretary of State set out we would

be high standards country. The Prime

1:08:201:08:23

Minister said there is no serious

political constituency in this

1:08:231:08:27

country to seriously reduce

standards.

And the European Court of

1:08:271:08:31

Justice still arbitrating in certain

areas pose Brexit?

Don't get carried

1:08:311:08:36

away on this.

In areas, do you

accept that?

The language people

1:08:361:08:43

should refer to as the Prime

Minister's. She was clear the

1:08:431:08:48

jurisdiction of the European Court

of Justice will end in the UK...

She

1:08:481:08:52

said EU law and the decisions of the

ECJ will continue to affect us.

1:08:521:09:00

Number one, the jurisdiction of the

ECJ will end in the UK. Parliament

1:09:001:09:04

will be sovereign. But the example

she gave is a pertinent one. Even

1:09:041:09:08

the United States of America was

affected by the ECJ's judgment on

1:09:081:09:13

safe harbour. That is the reality of

international trade. When you are

1:09:131:09:19

cooperating with trading partners,

their domestic decisions will have

1:09:191:09:22

an effect on trading relations and

that is to be expected.

She did say

1:09:221:09:28

Parliament is sovereign but also you

would have the right to reject those

1:09:281:09:35

rules and regulations in the future.

Is it your belief we stay close to

1:09:351:09:38

them for now, those high standards,

but there is the possibility they

1:09:381:09:40

could be rejected down the line?

This is a matter for Parliament.

So

1:09:401:09:45

it is true, isn't it?

We will become

a normal, parliamentary democracy

1:09:451:09:51

operating at high standards with

liberty under the rule of law, all

1:09:511:09:54

those things the Prime Minister set

out. We will be on the basis of a

1:09:541:09:58

normal style of free trade agreement

with the European Union, albeit with

1:09:581:10:04

unprecedented ambition.

David Davis

wrote to Tory MPs this week to say

1:10:041:10:08

Britain wouldn't pay the £40 billion

divorce bill into law the issues

1:10:081:10:12

have been resolved. Is it still on

the table, should it still be on the

1:10:121:10:20

table as a threat to the EU if they

don't look at some of the offers

1:10:201:10:24

made by Theresa May?

It is not a

threat. It is a principle that

1:10:241:10:26

nothing is agreed until everything

is agreed.

So that could be Rene

1:10:261:10:30

don?

Nobody is threatening anyone,

we are talking in a spirit of

1:10:301:10:37

optimism. The principle of the EU

has articulated is that nothing is

1:10:371:10:42

agreed until everything is agreed.

Right, no deal is still better than

1:10:421:10:47

a bad deal, how much planning is

there going forward for no deal?

The

1:10:471:10:53

Prime Minister explained what we

cannot do is access the rights of

1:10:531:10:56

Canada and the obligations of

Norway. That is something people can

1:10:561:11:01

agree to. Of course, any responsible

government must prepare for all

1:11:011:11:05

possible outcomes and we continue to

do that. What planning is being

1:11:051:11:10

done? We have plans across all

relevant government departments.

Is

1:11:101:11:15

that still a very real option in the

minds of governments and ministers

1:11:151:11:20

like you?

The very real option is we

move forward now, prioritising the

1:11:201:11:28

implementation period which we

intend to deliver, and hope to

1:11:281:11:31

deliver in March. Once we have

agreed the implementation period, to

1:11:311:11:34

get on with negotiating for the

vision for which the Prime Minister

1:11:341:11:39

has set out.

She articulated a blue

sky vision for the border with

1:11:391:11:44

Ireland and Northern Ireland, no

acceptance of a customs union to get

1:11:441:11:48

over that issue, as some in

Parliament have suggested.

How would

1:11:481:11:53

it work? One of the points of the

customs union, it doesn't answer all

1:11:531:11:57

of the questions.

Answer how she

thinks it will work?

What the

1:11:571:12:02

Taoiseach and the Prime Minister

have agreed, the first that of rules

1:12:021:12:05

which arise is through our future

economic partnership. This is why we

1:12:051:12:08

need a set of recognition agreements

which deal with regulations on both

1:12:081:12:14

sides and we need free tariff access

and we need a customs agreement. If

1:12:141:12:18

we do all the things which the Prime

Minister set out, then I believe we

1:12:181:12:23

can deliver a borderless,

frictionless border in Northern

1:12:231:12:27

Ireland...

No checkpoints, no

lorries being stopped, totally

1:12:271:12:34

frictionless?

I am convinced that we

can do it. People need to look at

1:12:341:12:40

the report from the European

Parliament, and have a serious think

1:12:401:12:45

about what is possible if there is

the political will.

You are happy

1:12:451:12:49

with a closer alliance in terms of

rules and regulations with the EU?

I

1:12:491:12:54

am happy with the way the Prime

Minister has articulated her speech,

1:12:541:12:58

Parliament will be sovereign and the

jurisdiction of the ECJ will end and

1:12:581:13:03

we will be a free enterprise country

based on high standards in a race to

1:13:031:13:08

the top.

Steve Baker, thank you for

coming to talk to us. That was the

1:13:081:13:14

end of Theresa May's third Brexit

speech. I have to say thank you for

1:13:141:13:20

my guests coming in and keeping me

company throughout the show. I will

1:13:201:13:23

be back with the Daily Politics at

the usual time of noon on Monday.

1:13:231:13:27

Goodbye.

1:13:271:13:30

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