The real point is getting rid of the Irish sea checks; it is anathema that one part of the United Kingdom is now treated separately from the rest of the UK. That is surely a reasonable idea and if it is in this Bill then the Government should want to take it through to the next stage and debate it. This is what the Bill does. Mutual enforcement does not of itself remove customs duties; neither does it harmonise or require mutual recognition of standards. It works by inverting the usual approach to customs enforcement; duties may, for example, be imposed for anti-dumping reasons or due to subsidies that one party claims are injurious to itself or to companies as a result of goods failing to qualify for zero duty under rules of origin. That is what the Bill does. All the rest that has been talked about is not in this Bill; it is very simple and very practical. The trade and co-operation agreement between the EU and the UK already has an agreed mechanism, which is very important for identifying and addressing these distortions. If we are able to allow that and make changes, that is how it will work.
There are other areas, too, which I will speed through as quickly as possible. Mutual enforcement can also under these terms accommodate the collection of customs duty. The detailed procedures are obviously beyond the scope of briefing papers and the Bill, but the reality is that we could have a system whereby an order of goods from the UK to the Republic of Ireland triggers a UK export declaration and an EU import declaration such that in terms of the EU’s customs data any sums owed are put into the goods invoice and paid by the importer to the exporter. There are many other ways ahead that can be facilitated, particularly now that almost all of this is done using modern technology, not large sheathes of paper and with a man standing at the border with a ladle to check whether the brandy being imported or exported tastes like brandy. That does not happen any longer, but from some of the debates it would seem somehow we have not moved on from 17th-century customs requirements.
To ensure compliance with this regime, a penalty in this arrangement would apply to those parties who failed to follow the procedure. The penalty would apply to both exporters and hauliers, therefore incentivising all parties involved in the carriage of goods to ensure that appropriate EU customs duties are paid. By the way, the same would be required in the Republic for its importers. It should be noted—this is the important bit that has gone missing—that an analogous system would in any event be required for the red and green lane approach prescribed in the Windsor framework.
Is this going back? No. It is using what we have and ultimately making it better. That seems to me the practical principle behind this idea of mutual enforcement. We should have started in this place, but we now have an opportunity to look at this issue and decide if there is a better way to do it that will take some of the good stuff already there and improve it by saying to the EU that we want a smooth process between the EU and the UK, because everything else then follows. Many EU members already agree; I have heard their discussions.
I cannot remember who it was, but somebody got up and said, “Did we not think they were allies? Did we not think they were friends?” It is because we think they are allies and friends that we want to get rid of the things that make us have rows and arguments about the most practical issues that could be dealt with. That is the point of this mutual enforcement process: to get rid of the ludicrous arguments about who we are and who they are. We can then be very good allies and friends, which we are and will need to be over the next few years, as we enter arguably the most dangerous time that I can remember.
I have a point for the Government. Given that almost identical rules apply in the EU and the UK, the EU could, and arguably should, negotiate an SPS equivalence agreement with the UK, as it has done for countries as far away as Canada and New Zealand, as I have said before.