09 October 2017

UK PM statement on leaving the EU

Economic partnership

[...] We do not want to settle for adopting a model enjoyed by other countries.

So we have rejected the idea of something based on European Economic Area membership. For this would mean having to adopt - automatically and in their entirety - new EU rules over which, in future, we will have little influence and no vote.

Neither are we seeking a Canadian-style free trade agreement. For compared with what exists today, this would represent such a restriction on our mutual market access that it would benefit none of our economies.

Instead I am proposing a unique and ambitious economic partnership. It will reflect our unprecedented position of starting with the same rules and regulations. We will maintain our unequivocal commitment to free trade and high standards. And we will need a framework to manage where we continue to align and where we choose to differ.

There will be areas of policy and regulation which are outside the scope of our trade and economic relations where this should be straightforward.

There will be areas which do affect our economic relations where we and our European friends may have different goals; or where we share the same goals but want to achieve them through different means.

And there will be areas where we want to achieve the same goals in the same ways, because it makes sense for our economies.

And because rights and obligations must be held in balance, the decisions we both take will have consequences for the UK’s access to the EU market - and EU access to our market.

But this dynamic, creative and unique economic partnership will enable the UK and the EU to work side by side in bringing shared prosperity to our peoples.

Security relationship

[...] As I said when I visited our troops serving on the NATO mission in Estonia last month, the United Kingdom is unconditionally committed to maintaining Europe’s security.

And we will continue to offer aid and assistance to EU member states that are the victims of armed aggression, terrorism and natural or manmade disasters.

So we are proposing a bold new strategic agreement that provides a comprehensive framework for future security, law enforcement and criminal justice co-operation: a treaty between the UK and the EU. [...]

Implementation

[...] That is why I suggested in my speech at Lancaster House there should be a period of implementation – and why I proposed such a period in my speech in Florence last month.

During this strictly time-limited period, we will have left the EU and its institutions, but we are proposing that for this period access to one another’s markets should continue on current terms and Britain also should continue to take part in existing security measures.

The framework for this period, which can be agreed under Article 50, would be the existing structure of EU rules and regulations. [...]

During the implementation period, people will continue to be able to come and live and work in the UK; but there will be a registration system – an essential preparation for the new immigration system required to re-take control of our borders.

And our intention is that new arrivals would be subject to new rules for EU citizens on long term settlement.

We will also push forward on our future independent trade policy, talking to trading partners across the globe and preparing to introduce those deals once this period is over.

How long the period is should be determined simply by how long it will take to prepare and implement the new systems we need.

As of today, these considerations point to an implementation period of around two years.

And as I said in Florence – because I don’t believe that either the EU or the British people will want us to stay longer in the existing structures than necessary, we could also agree to bring forward aspects of that future framework, such as new dispute resolution mechanisms, more quickly if this can be done smoothly.

At the heart of these arrangements, there should be a clear double lock: guaranteeing a period of implementation giving businesses and people the certainty they will be able to prepare for the change; and guaranteeing this implementation period will be time-limited, giving everyone the certainty this will not go on forever.

Negotiations

Mr Speaker, the purpose of the Florence speech was to move the negotiations forward and that is exactly what has happened.

[...] On citizens’ rights, as I have said many times this government greatly values the contributions of all EU citizens who have made their lives in our country. We want them to stay.

In Florence, I gave further commitments that the rights of EU citizens in the UK - and UK citizens in the EU - will not diverge over time, committing to incorporate our agreement on citizens’ rights fully into UK law and making sure the UK courts can refer directly to it.

Since Florence there has been more progress including reaching agreement on reciprocal healthcare and pensions, and encouraging further alignment on a range of important social security rights.

So I hope our negotiating teams can now reach full agreement quickly.

On Northern Ireland, we have now begun drafting joint principles on preserving the Common Travel Area and associated rights. And we have both stated explicitly we will not accept any physical infrastructure at the border. [...]

Then there is the question of the EU budget.

As I have said, this can only be resolved as part of the settlement of all the issues that we are working through.

Still I do not want our partners to fear that they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave. The UK will honour commitments we have made during the period of our membership.

And as we move forwards, we will also want to continue working together in ways that promote the long-term economic development of our continent.

This includes continuing to take part in those specific policies and programmes which are greatly to our joint advantage, such as those that promote science, education and culture – and those that promote our mutual security.

And as I set out in my speech at Lancaster House, in doing so, we would want to make a contribution to cover our fair share of the costs involved. [...]

Legislation

[...] And today we are publishing two White Papers on trade and customs. These pave the way for legislation to allow the UK to operate as an independent trading nation and to create an innovative customs system that will help us achieve the greatest possible tariff and barrier-free trade as we leave the EU.

And while I believe it is profoundly in all our interests for the negotiations to succeed, it is also our responsibility as a government to prepare for every eventuality. So that is exactly what we are doing.

These White Papers also support that work, including setting out steps to minimise disruption for businesses and travellers.

Conclusion

[...] Achieving that partnership will require leadership and flexibility, not just from us but from our friends, the 27 nations of the EU.

And as we look forward to the next stage, the ball is in their court. But I am optimistic it will receive a positive response. [...]

Full speech

© Department for Exiting the European Union