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[...]We agree the implementation period should be delivered as a part of the Withdrawal Agreement, to be adopted under Article 50. That means it can be adopted quickly and efficiently.
That it should see the UK outside of the European Union, no longer a Member State.
We also agree on the need for this period to have a strict time limit, guided by how long it will take us all to prepare and implement the new processes.
And we agree on the need to base this period on the existing structure of rules and regulations.
Including, crucially, on continued access to each other’s markets on current terms. [...]
The details
For such a period to work, both sides must continue to follow the same, stable set of laws and rules.
Without compromising the integrity of the single market, and the customs union to which we will maintain access on current terms.
Maintaining the same regulations across all sectors of the economy — from agriculture to aviation, transport to financial services, as part of a new international treaty.
In keeping with the existing structure of EU rules that will allow a strictly time-limited role for the European Court of Justice during that period.
During this implementation period, people will of course be able to travel between the UK and EU to live and work.
And as agreed in December, we will fulfil the financial commitments we have made during the period of our membership.
With Britain upholding its responsibilities during this period, it follows the European Union will need to respect our rights and our interests too.
And this means we must discuss how regulators and agencies can best provide continuity and clarity for businesses during this period in a way that benefits everyone.
Continued cooperation
Of course, we will leave the institutions of the Union next March.
But we will still make our voice heard.
This will be a relationship where respect flows both ways — as we move from being a member of the European Union to its closest partner. [...]
That means each side committing to not taking any action that undermines the other.
Because it usually takes around two full years for major legislation to make its way through the European Union system into law – virtually all of the laws that will come into effect during this time will have been drafted while the United Kingdom was a Member State.
However, we will have to agree a way of resolving concerns if laws are deemed to run contrary to our interests and we have not had our say and we will agree an appropriate process for this temporary period.
So that we have the means to remedy any issues, through dialogue, as soon as possible. It’s very, very important. If there are new laws that affect us, we have the means to resolve any issues during that period.
International agreements
Now, the implementation period has implications beyond the relationship between the UK and the European Union.
It’s also relevant to our relationships with the rest of the world – both our existing international agreements — struck during our membership of the European Union and the new trading relationships the United Kingdom will build on the outside.
The existing international agreements we are party to should continue to apply during this period.
They are an important part of the existing EU structure of rules and regulations, to which we will remain a part during the implementation period.
And they cover a wide range areas from aviation through to security.
They also include the trade agreements the EU has struck while we were a member. So this matters particularly with respect to Teesport. [...]
So since the terms of trade between the UK and EU will not have changed, a simple step forward is for all parties, all parties, to agree that the United Kingdom will continue to be party to these agreements while we continue to work on ensuring they maintain their effects in perpetuity.
And, of course, the biggest international challenge we face is ensuring the security of our continent. [...]
What will change
While the aim of the implementation period is to provide certainty and continuity, we must keep sight of the fact that this is a bridge to a new future partnership.
Where, crucially, the United Kingdom is outside of the single market, and outside of the customs union.
Where the United Kingdom courts are sovereign once more.
And where the United Kingdom can take advantage of its status as an independent trading nation, forging its own way in the world.
So, during the implementation period, the UK must be able to prepare for this new relationship not just with the European Union, but with the rest of the world too.
The United Kingdom will be able to design a new immigration system, that works in the national interest.
That welcomes talent from around the world, and people who want to come to Britain to work hard and contribute.
During the period, when people from the EU move to the UK freely, we will have a registration system in place.
It will have no bearing on people’s ability to work or visit.
But the system will allow us to better plan for our future public services, and prepare for our future immigration system.
And as an independent country, no longer a member of the European Union, the United Kingdom will once again have its own trading policy. This is a vital aspect of this period.
For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends — and new allies — around the globe.
Increasingly, we are trading with the key emerging markets of the world in Asia and the Americas.
The UK’s fastest growing export markets between 2005 and 2014 included countries like China and Brazil.
These are the future.
We will be able to build on this in coming years.
Of course maintaining access to each other’s markets on current terms means that we will replicate the effects of the EU customs union during the implementation period including new rights and obligations of trading arrangements entered into by the European Union.
But participating in a customs union should not and will not preclude us from formally negotiating — and indeed signing — independent trade agreements.
Although, of course, they would not enter into force until the implementation period has ended.
Talking to other countries about our future trade will allow businesses — like those in this room — to take action and make decisions based on the new opportunities that will be open to them.
It will also allow us to kick-start a new global race to the top in quality and standards.
Because Britain cannot outcompete emerging economies with cheap labour.
There is no future in us trying to be cheaper than China, or other emerging economies which have enormous low wage cost advantages.
Instead we must work with our international partners to drive up quality and standards.
And with 90% of future global growth expected to happen outside Europe’s borders — driven by developments in new technologies and innovations and industries that haven’t even yet been invented, the premium for agility in national policy-making has never been higher.
Over the coming years and decades we, as a country, need to be flexible and nimble to take advantages of the changing landscape of the global economy.
We start from an incredibly strong position. [...]