Daily Politics Special Daily Politics


Daily Politics Special

Jo Coburn and guests with live coverage of the prime minister's speech setting out the government's position on Brexit and the UK's future relationship with the EU.


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Transcript


LineFromTo

Hello and welcome to

the Daily Politics, where we'll be

0:00:040:00:07

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

0:14:030:14:11

economies and keep people safe.

Fourth, it must be consistent with

0:14:110:14:14

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

0:15:020:15:08

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

0:15:220:15:24

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.

0:15:350:15:40

We must not only negotiate our exit

from a negotiation that touches so

0:15:400:15:45

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

0:15:490:15:55

negotiation, preparing for every

scenario. But we are making real

0:15:550:15:58

progress. At the end of last year,

we agreed the key elements of our

0:15:580:16:04

withdrawal. We are in the process of

turning that agreement into draft

0:16:040:16:07

legal text. We have made clear our

concerns about the first draft that

0:16:070:16:14

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

0:16:210:16:26

period in which was a key element of

December's deal. Although some

0:16:260:16:33

points of difference remain, I am

confident they can be resolved in

0:16:330:16:35

the days ahead. Both the UK and the

EU are clear, this implimentation

0:16:350:16:41

period must be time limited and

cannot become a permanent solution.

0:16:410:16:46

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

0:16:570:17:01

this new relationship. But before we

can do that we need to set out in

0:17:010:17:06

more detail what relationship we

want, building on my Lancaster house

0:17:060:17:13

and foreign speeches. So, last month

I spoke in Munich about the security

0:17:130:17:19

partnership that we seek. Today, I

want to talk about the other pillar

0:17:190:17:23

of the relationship, how we build

our economic partnership. In my

0:17:230:17:28

speech in Florence, I set out why

the existing models for economic

0:17:280:17:32

partnership either do not deliver

the ambition we need or impose

0:17:320:17:36

unsustainable constraints on our

democracy. For example, the Norway

0:17:360:17:40

model, where we would stay in the

single market, would mean having to

0:17:400:17:44

implement new EU legislation

automatically, and its entirety, and

0:17:440:17:49

would also mean continued free

movement. Others suggested we

0:17:490:17:55

negotiate a free trade agreement

similar to that which Canada has

0:17:550:17:58

recently negotiated with the EU, or

trade on World Trade Organisation

0:17:580:18:02

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

0:18:060:18:08

enjoy. This would mean customs and

regulatory checks at the border

0:18:080:18:13

which would damage the integrated

supply chains that our industries

0:18:130:18:18

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

0:18:430:18:48

up holding the Belfast agreement at

the heart of the UK's approach. Our

0:18:480:18:55

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

0:18:580:19:04

this is not surprising that our

decision to leave has caused anxiety

0:19:040:19:07

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

0:19:120:19:17

any physical infrastructure of the

border, or any related checks and

0:19:170:19:19

controls. But it is not good not to

say we will not introduce a hard

0:19:190:19:26

border, if EU forces Ireland to do

it it is down to them. We chose to

0:19:260:19:31

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

0:19:500:19:54

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

0:20:190:20:22

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

0:20:570:21:00

or any country were allowed to enjoy

all of the benefits without all of

0:21:000:21:07

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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