Iain Duncan Smith questions the Foreign Secretary about equivalence for the UK financial sector in the forthcoming negotiations with the EU.
I congratulate my right hon. Friend on his statement and the Prime Minister on his.
Looking at the service sector, given that the EU has made next to no effort in most of the trade deal arrangements that they have negotiated to put any special pressure for a regulatory position for the UK in financial services, does my right hon. Friend now think that the EU will reference enhanced equivalence, as in the paper written by the lawyer Barnabas Reynolds, which the Treasury accepted? Will my right hon. Friend be proposing that to the EU as the way forward when it comes to regulation?
Our ambition is to include comprehensive obligations on market access and fair competition in relation to—
As for financial services, we are willing to look at regulatory and supervisory co-operation arrangements as long as they can be done on the basis of equivalence. I am aware of the paper to which my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) refers, but the matter is already in the political declaration. Obviously, as we proceed with the second phase of the negotiations on the future relationship, we will want to ensure that the EU lives up to its side of the bargain in that area.