The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)
It is a pleasure to wind up this debate. It has run over time, for which I apologise to hon. Members taking part in the next debate, but that is testament to the importance of the subject and the exceedingly high-quality contributions. More important than the quality of the rhetoric has been the unanimity of argument in favour of an EU-US trade deal. Of course important questions need to be addressed, and I will deal with as many of those as I can in the time available, but all speakers have been in favour, in principle, of pushing to make this deal happen, and that message should go out loud and clear from this House. As a passionate supporter of free trade, believing that free trade and capitalism has been the greatest force for prosperity ever invented by man, I am proud to be part of a political consensus in this country in favour of free trade. That is one of our great political and economic strengths.
On that note, I pay tribute to the right hon. Member for Wentworth and Dearne (John Healey) and my hon. Friend the Member for Aberconwy (Guto Bebb), not only for securing this debate, but for starting up the all-party group on European Union-United States trade and investment to make sure that a forum is available for all Members to discuss the issues relating to the TTIP deal. The launch of the negotiations started last week, and they are a once-in-a-generation opportunity to secure the biggest bilateral trade agreement in the history of the world. As many hon. Members have said, it would bring significant economic benefits, in growth and jobs, to both sides of the Atlantic.
There are also compelling strategic reasons for the agreement, as the right hon. Member for Warley (Mr Spellar) and the hon. Member for Linlithgow and East Falkirk (Michael Connarty) argued, putting the proposal in its historical context. It would be good not only for trade but for the relationship between our two continents. A successful conclusion could allow the EU and the US to agree common standards and rules fit for the 21st century. The principle of mutual recognition is an important one, and perhaps the mutually recognised standards would form the basis for standards around the rest of the world, given the sheer scale of a free trade area between the EU and the US.
We heard Opposition Members argue passionately in favour of the EU and against giving people their say, not least the hon. Members for Linlithgow, for Sheffield Central (Paul Blomfield), who gave a spectacularly passionate argument against allowing people their say in a referendum, and for Glasgow North East (Mr Bain). I think that the TTIP is central to our vision of a reformed EU that is more competitive and better able to deliver jobs and growth for its citizens, and for that proposition to be put to the British people in a referendum is a strong strategy for the way forward. Opposition Members talked about Barack Obama’s White House officials saying this and that, but I will go by the words of the man himself, who fulsomely supported the strategy of renegotiating our relationship and putting it to the people in a referendum.
The EU-US trade deal would be the biggest in the world, and it would build on our strong relationship.
Mike Gapes
The Minister just said that President Obama had supported a referendum. Perhaps he will give us the source of that statement.
Matthew Hancock
The source of the statement was President Obama. He said during a press conference with the Prime Minister—I do not have the precise quote, but I have the substance of it—that he thought it was right to try to renegotiate a relationship before deciding to leave. I will write to the hon. Gentleman with the precise quote. I think that it is better to listen to a politician, rather than officials representing a politician.
Crucially, the free trade deal must genuinely support free trade, which I think it will. My hon. Friend the Member for Aberconwy commented on that, channelling Bright. Negotiating an ambitious programme is vital. Many numbers have been quoted in the debate. We are already negotiating trade deals with Canada, India and Japan, each of which represents 2% of our exports. The United States represents 15% of our exports. I think that sums up the scale and importance of the proposition.
The relationship is already exceptionally close and deep. The US is the top export destination after the rest of the EU, and the US and the UK are each other’s largest foreign investors, supporting over 1 million jobs in this country, and US investment stock in the UK is worth around £200 billion, which is eight times the size of US investment stock in China. The scale is important, the Government’s ambition is high, and all areas are in scope. Of course, as has been mentioned, the audio-visual sector has been set to one side, but there is the potential to include it if negotiations go in that direction.
With regard to whether regional jobs data can be made available, the hon. Member for West Bromwich West (Mr Bailey) and the right hon. Member for Wentworth and Dearne argued strongly that we need to ensure that we make the argument for the deal. We will look at publishing regional jobs data in as robust a way as possible. Arguments were made, not least by the hon. Members for Hartlepool (Mr Wright) and for Birmingham, Yardley (John Hemming) and my hon. Friend the Member for Skipton and Ripon (Julian Smith), giving specific examples of how the deal would help British businesses and jobs and be a positive force for the economy and prosperity. It is some of the specific examples that were given that make the case most eloquently and strongly.
Mr Jenkin
Will the Minister address the concern, raised by my hon. Friend the Member for Stone (Mr Cash), that there are already vast disparities of economic potential in different parts of the EU, which has caused massive trade imbalances between member states? The danger is that a genuine free trade deal would exacerbate those tensions? Will the incentive in the EU not be for a more protectionist deal than we would want? How will he address that?
Matthew Hancock
The incentive in the EU is for liberalisation, because overall the analysis of the European Commission and the analysis that we commissioned on the impact on the UK indicated a positive impact on every member state. Of course there are winners and losers, but the overall impact on each part of the EU will be positive. That is what the Commission’s analysis showed.
Matthew Hancock
Yes, of course. I was just about to move on to scrutiny, which came up in many Members’ contributions and is important. I agree with my hon. Friend the Member for Stone (Mr Cash) about the uncertainty of forecasts and numbers, but I will give the Committee the analysis. The Committee will play an important part in scrutinising the negotiations. Of course, as many Members have said, the negotiations will be led by the Commission, so we must ensure that we do not get in the way of positive developments of substance by publishing things that the Commission would not want us to publish, but within those constraints we will ensure that we engage with the Committee, and indeed with Members on both sides. I think that it would be positive to have debates such as this one as the process goes forward.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The Minister has now been speaking for 10 minutes, so I am sure that Bob Stewart can save himself for later.
Matthew Hancock
Let me just run through as quickly as I can some of the other points that were made.
The objective in the negotiations, including in TTIP, will be to have commitments in health services that are broadly in line with existing international trade agreements, so I can reassure Members on that point. It is true that this is an ambitious project, but our goal is that it should be concluded within 18 to 24 months. The US interpretation is that it should be concluded on one tank of gas, and we wholeheartedly agree. The British Government will put in place whatever support is necessary for the Commission to help that happen. The benefits will come not only as a result of reducing tariffs, although they are relatively low, but from non-tariff barriers, mutual recognition of regulation and the treatment of intellectual property, which has been mentioned.
We are under no illusions that this will be easy, but we are well placed and have a strong political commitment. In the first negotiating round, which took place last week, good progress was made. A framework for the negotiations was agreed and an initial productive exchange of views on ambition and approach across each dossier was achieved. As the Prime Minister has said, it is a once-in-a-generation prize and we are determined to seize it to ensure that the benefits of free trade can increase and strengthen jobs and prosperity in this nation and around the world.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I call Mr John Healey. You have up to two minutes, but please be brief.