David was a former MEP for the East of England from 2009 to 2019 and stood down on 2nd July 2019. This website remains open for access only, and no further postings will be made.
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Talk Radio asks DCB what trade deal can we do next?
What really happened with negotiations and how we can still get a deal now. Listen to the interview on TalkRadio with David Campbell Bannerman here:
DCB STATEMENT on not contesting MEP elections 23rd May 2019
After quite some consideration, I have decided today not to stand again as a Conservative MEP for the East of England if elections are called for 23rd May 2019.
I think it would be dishonourable for me personally to stand again as a Conservative MEP in these circumstances, particularly with my strong views on honouring the Brexit result. I am unable to defend the decision to call these elections and the arguments for yet further delay when the British people just want Brexit done.
I strongly believe it is entirely wrong and counterproductive for these elections to be held at all. With nearly three years since the Referendum (of 23rd June 2016) the British people are angrily demanding that the result be honoured and Brexit be delivered.
There are better alternatives to a long extension that imperils Brexit. I believe leaving the EU under World Trade Organisation (WTO) rules with a basic one page trade deal invoking GATT Article 24 rules to keep tariffs the same whilst negotiating a comprehensive SuperCanada Free trade Agreement is doable and far more preferable to having zombie MEPs deprived of their voting rights on key issues and responsibilities.
I am prepared to support the Prime Minister’s deal – only on the basis of getting the UK legally out of the EU and with the ability to override many of its bad aspects under new leadership. But staying in a customs union will destroy our independent trade policy, do immense reputational damage amongst international friends, and continue to entrap the least well off within nearly 20,000 tariffs that drive up the cost of food, clothing and footwear.
I remain loyal and committed to the Conservative party and am not going to stand for any other party. I know the great majority of Conservatives want to see Brexit delivered and it is Conservative MPs who have done most to make it happen. I would like to thank all local Conservative activists for their help and support.
It has been a huge honour and privilege to represent the great people and wonderful area of the East of England for nearly ten years. I will continue to assist in local and national Westminster elections and plan to stay in politics.
There is no such thing as ‘No Deal’
On March 13th, if the meaningful vote on the deal fails again in spite of Geoffrey Cox’s legal acrobatics, there will be an MP vote on something that doesn’t actually exist: the so called ‘no deal’ exit.
It doesn’t exist because even what people call ‘no deal’ involves some negotiated deals. They may be smaller, bilateral, sector specific deals, often termed ‘standstill’ agreements, but are nevertheless important.
As an MEP I have already voted for four such mini deals – an arrangement for British car certifications to continue under ‘no deal’, permission for the EU to sell us their goods as a third country (!), an aviation deal to allow flights to continue to fly and a road haulage deal to allow trucks to continue to roll. The Strasbourg European Parliament next week will see hours of voting on more ‘no deal’ measures under (emergency) ‘simplified procedure’.
The EU’s chart of recommended ‘no deal’ measures runs from reciprocal fishing rights and shipping inspections to nuclear energy to continuing the Northern Ireland PEACE and Erasmus Plus student programmes. The Mayor of Calais is actually offended the U.K. thinks there will be any holdups.
In the UK meanwhile the port of Dover says it is ‘prepared’ for ‘no deal’. Eurotunnel say “with or without a deal, traffic flow through the Tunnel will be maintained”. The City of London is ready too – Lord Mayor Mr Estlin says Brexit has been a “pain in the backside” but “businesses have prepared already”.
The Bank of England and the European Securities and Markets Authority have signed baffling Memorandums of Understanding on things like the Central Securities Depository, and EU regulators continue to recognise U.K. clearing houses.
Brexit Minister Chris Heaton Harris lists what is ready from citizens’ rights, such as the welcome Spanish deal for U.K. residents, to chemicals to food labelling to holidays to archives. BMW is moving its summer shutdown to April and Toyota stockpiling parts. The U.K. car industry managed to survive 211 days over 20 years of ‘Operation Stack’ where lorries couldn’t get to/from Europe.
There is even an outbreak of naughty bilateral deals behind the EU’s back such as Italy’s bid to stabilise financial services and trade.
All of this is being done by professionals with no sign of the hysterics of extreme politicised Remainers in the U.K. The relentless ‘no deal’ silly stories from the BBC are a case in point, from food shortages being like “walking off a cliff in the dark without a torch” (we do actually import food from outside the EU) and Eurostar’s ‘one mile queues’, when passport checks exist now.
There is further confusion over what the deal in ‘no deal’ is. It isn’t a ‘no trade deal’ or ‘a no Future Relationship deal’ – we haven’t even started negotiating those yet. It is a ‘no Withdrawal Agreement deal’.
Let’s be clear. Up until now we have been dancing to the EU’s tune. The Withdrawal Agreement is specified under EU law – Article 50 of the Lisbon Treaty – and went wrong from the start. Without one, all the EU treaties stop applying as of 29th March.
But trade deals are done under the global trade rules of the 164 member World Trade Organisation (WTO) that the U.K. helped establish.
The WTO gives us a way out of the EU under Article XXIV/24 of the General Agreement on Tariffs and Trade (GATT) which preceded it. A GATT Article 24 compliant standstill trading arrangement forms one of the three ‘safety nets’ within the Malthouse Compromise Plan B, along with continuing to offer Plan A (a changed WA deal) and seeking to purchase the Implementation Period (IP) via funding.
GATT Article 24 means the EU and U.K. agree a very basic free trade agreement (FTA) that allows us to keep tariffs at zero whilst negotiating a comprehensive U.K.-wide Free Trade Agreement, the sort of ‘SuperCanada’ FTA I have long advocated (bigger, better and wider than the EU-Canada CETA deal), and which the EU has offered to us three times starting a year ago (7th March).
Article 24 is just a bridge – an alternative transition. It only needs literally a one page Free Trade Agreement to be signed. The neutral Cambridge law expert Dr Lorand Bartels has helpfully written one.
This protects you from discrimination claims by other WTO members. Even if there were legal challenges, these would take at least two years, and the FTA would in place before any verdict was reached.
Yes it will need other small deals such as interim regulatory recognition of goods and services, but the core remains Article 24. Its feasibility has been confirmed to me by top WTO and EU trade experts.
Article 24 also takes away the hassle of businesses having to calculate nearly 20,000 tariffs. Tariff rates are very complex and vary enormously even within one category such as lamb meat.
OK so businesses will have to fill in customs declaration forms, as they do for non-EU suppliers, but no tariffs mean the processes are simple. HMRC have helpfully enacted Transitional Simplified Procedures (TSP) for the 145,000 VAT-registered businesses who trade with EU (only 7% of U.K. businesses and 12% U.K. economy do) to remove need for full customs declarations at Borders and import duty payments.
The objection that the EU would refuse to agree Article 24 if the WA deal fails because of a lack of goodwill is patently absurd. The Eurozone is again implementing emergency measures as it falls into serious recession, whilst it would save the EU £13 billion in tariffs with their largest single customer. The U.K. would agree to pay a contribution too as per Malthouse (for 2019 budget, maybe 2020 too, but not the £39 billion).
The objection it does not address ‘non tariff barriers’ is equally silly. It’s not its job – the comprehensive FTA will address non tariff barriers, services and the whole shooting match.
So my earnest request to Government is this: if the favoured deal is not passed on 12th March, then please let’s have a meaningful vote on something that does exist and is deliverable.
Let’s amend the so called ‘no deal’ vote on 13th March to incorporate GATT Article 24, and Plan B of Malthouse, as this is a sensible alternative basic deal. Also, if necessary, let’s allow a strictly temporary extension of Article 50 of three months to 29th June, appealing to those who would favour an extension in a possible third vote. This extension will not be to renegotiate the Withdrawal Agreement, but to prepare to enact Article 24 and its happy band of mini deals.
With only an 8 MP majority for the Spelman amendment, just 5 MPs need persuading.
It might just pass.
David Campbell Bannerman MEP
Conservative MEP for the East England and Joint UK Spokesman on the International Trade Committee.
You can also read David’s article above, as it appears online at thetelegraph.co.uk