26 Accepted

We ask the Government to provide clarity at the earliest opportunity about the state of...

Recommendation
We ask the Government to provide clarity at the earliest opportunity about the state of play of its engagement, if any, with the EU to agree an interim arrangement for British exports under the EU’s Carbon Border Adjustment Mechanism, while negotiations on a formal agreement to achieve linkage between the UK and EU Emissions Trading Systems are on-going. (Recommendation, Paragraph 81)
Government Response Summary
The government states that it has delivered on its manifesto commitments to reset relations with European partners, that closer alignment can benefit UK businesses, and that they are already aligning with the Single Market in some areas. They also engage with stakeholders through various forums.
Government Response
Accepted
HM Government Accepted
The Government was elected on the basis of manifesto commitments to reset relations with our European Partners, while sticking to our red lines – that we will not return to the Customs Union, Single Market, or freedom of movement. That is what this Government has delivered – though we are clear there is more to do. There are clear areas where closer alignment with the EU can benefit UK businesses, drive growth, create jobs and lower prices. We are already aligning with the Single Market in some areas to drive down the prices of food and energy. This could add up to £5.1 billion a year to our economy, increase agricultural exports to the EU by 16%, and mean lorries will spend less time in queues at the border. Ultimately, this could reduce pressure on food prices for consumers. The Government will look at other areas where the UK and EU can work together, as set out in our manifesto. Deeper economic integration is in our collective interest. As the Prime Minister has stated, we want closer economic cooperation with the EU. It will benefit British businesses, British workers and British security, The Government will continue to take a pragmatic, sector-by-sector approach. We recognise the importance of engaging industry as part of the UK-EU negotiations process, and the Government is in regular dialogue with stakeholders through both formal TCA fora, like the Domestic Advisory Group and the Civil Society Forum, and departmental-led fora on specific thematic issues.