02/11/2016

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:00:00. > :00:07.jobs depend on our staying hn the customs union. I believe, I am sure

:00:08. > :00:09.the Secretary of State for International trade is delighted

:00:10. > :00:11.that his career is flourishhng and two years travelling around the

:00:12. > :00:17.world, meeting all sorts of interesting people and trying to do

:00:18. > :00:19.lots of deals, but those million manufacturing jobs matter more than

:00:20. > :00:38.his grandiloquent ideas. Subtitles will resume on Wddnesday

:00:39. > :02:15.In Parliament at 2300. This is an area in which thdse

:02:16. > :02:18.excellent cross government cooperation and I'm very pldased to

:02:19. > :02:21.be joined on the bench todax by my colleague from the Treasury, my

:02:22. > :02:26.honourable friend for Battersea which shows how the Treasurx are

:02:27. > :02:30.working hand on this issue. I would like to be very clear from the

:02:31. > :02:35.outset, we are all, I think, with that no final decision has been

:02:36. > :02:39.taken on our border, future economic relationship with the EU whhch

:02:40. > :02:43.includes an approach to customer unions. As with the decision not to

:02:44. > :02:48.trigger off 50 metres the drought we we take the time to analyse

:02:49. > :02:55.carefully our options. We whll seek to secure the best deal for the

:02:56. > :02:58.whole of the UK. I'm very grateful. I wonder if he might help md with

:02:59. > :03:02.the question I posed to the honourable lady opposite. The ballot

:03:03. > :03:09.paper said that we are leavhng the European Union. We voted to leave.

:03:10. > :03:12.We joined the customs union in 973. Isn't the presumption, the starting

:03:13. > :03:17.position for the Government, that we will be leaving the customs union.

:03:18. > :03:20.Arguments have been made, why we won't be doing that rather than why

:03:21. > :03:26.we should take that as the opening position. I think it's important we

:03:27. > :03:30.engage with the month on both sides of the debate. We need to sdcure the

:03:31. > :03:34.UK national interest. We want to listen very carefully to thd

:03:35. > :03:40.arguments for staying in before we take a decision. I think th`t is

:03:41. > :03:44.important. I think we can all agree there are numerous aspects without

:03:45. > :03:49.issue. The honourable lady speaks with considerable experiencd on

:03:50. > :03:54.complex economic issues havhng been a Treasury serving on the sdlect

:03:55. > :03:58.committee former minister. H think, you know, she will appreciate, as

:03:59. > :04:02.the Prime Minister said in her reply the other day that making a full

:04:03. > :04:05.assessment of the options of the customs union is more compldx than

:04:06. > :04:09.it may seem at first when ddscribed to the public. Firstly, it's

:04:10. > :04:14.important to understand exactly what a customs union is, and is not. It

:04:15. > :04:18.is an arrangement which rel`tes to trade in goods. It doesn't cover

:04:19. > :04:22.trading services free movemdnt of capital people. To facilitate trade

:04:23. > :04:26.the customs union removes t`riffs and customs controls on goods moving

:04:27. > :04:30.between its members. Whilst services are not directly included. They are

:04:31. > :04:35.not subject to tariffs or ctstoms controls. They have becoming bedded

:04:36. > :04:39.in goods production. The customs union could indirectly affect

:04:40. > :04:43.agencies such as in parallel to exporting an aircraft engind and

:04:44. > :04:48.engineering firm might also provide maintenance services or, in parallel

:04:49. > :04:52.to an automotive firm exporting cars, they might provide financial

:04:53. > :04:56.services alongside it. To ftnction properly the customs union lust have

:04:57. > :05:00.a common external tariff. Applied equally by all members of the union.

:05:01. > :05:01.This supports the freezer creation of birds within a customs union

:05:02. > :05:05.trade diversions.