Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
It is a pleasure to serve under your chairmanship, Sir Jeremy. I will certainly endeavour to extend that generosity. I congratulate my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) on securing an important and timely debate, and commend him for his ongoing work on the issue as the chair of the UK Trade and Business Commission. The letter that he and a number of parliamentary colleagues present submitted to the Minister for the Cabinet Office, who leads for the Government on UK-EU relationships, made some excellent points, many of which I will endeavour to address in my remarks today. I will seek to specifically address the three main points that he raised in his introductory speech—the mutual recognition of professional qualifications, the broader alignment and the youth mobility scheme. I also thank all hon. Members who have spoken today.
First, I will set out why we must use our strengthened relations with the EU to deliver a long-term UK-EU strategic alliance that grows our economy. I listened with care to the remarks of the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith), suggesting that if the Conservative party were in office, we would have the best of all worlds. I struggle to reconcile that with the universe that the rest of us live in: the Conservative Government not only abjectly failed to secure a trade agreement with the United States, but alienated our closest trading partners in the European Union and were in a deep freeze with China. It is not entirely clear what the Conservatives’ grand post-Brexit strategy involved.
Let us consider the numbers for a moment. In trade, geography still matters. As a bloc, the European Union is still the UK’s largest trading market, covering 46% or about £813 billion of our trade. It is important to note that the UK is the EU’s second-largest trade partner, but unfortunately, UK exports to the EU were 5% lower in 2024 than they were in 2018, which is the most recent stable pre-Brexit, pre-covid year for comparison, and UK imports from the EU have remained level at about plus 0.4%.
Moreover, our overall global trade performance continues to suffer, and we are lagging behind our G7 peers. In 2024, our global trade flows were only 4% above 2018 levels, while other G7 economies have seen an average trade growth of 8%. What explains those trends? There is an increasing body of external research studies, such as those of the London School of Economics Centre for Economic Performance and Aston University, which demonstrate that Brexit accounts for those changes. That is why it is in both the UK and the EU’s interest to strengthen our trading relationship.
Let me turn now to some of the specific issues raised during the debate. The hon. Member for Arbroath and Broughty Ferry (Stephen Gethins), who I like and admire on a personal level, gave a sadly rather partisan speech in wilful denial of the fact that had his side prevailed in the 2014 referendum in Scotland, we would have found ourselves outside the European Union. A politics of manufactured grievance, flags and new borders is as wrong in Scotland as it is here in England. Thankfully, Scotland made its choice to support a sensible and pragmatic internationalist party in July.
Mr Alexander
No, I am keen to make some progress.
My right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) made a characteristically brilliant speech—a judgment in no way related to the fact that he is the Chair of the Business and Trade Committee. In all seriousness, fresh from the spring meetings in Washington this week, he brought a wider geopolitical perspective to our debate that frames the conversations that are happening today between EU Commission President von der Leyen and the Prime Minister.
I note all the points that were made by the hon. Member for Bristol Central (Carla Denyer). I simply say that when I see images of the Prime Minister meeting President Trump in the Oval Office, meeting EU Commission President von der Leyen today, at the Lancaster House summit, or sitting with President Macron in Paris, I feel a sense of relief and change. There is change, because the clown show is over, and there is relief that we have a serious Prime Minister for these serious times.
My hon. Friend the Member for Bournemouth East (Tom Hayes), in a strikingly personal speech, spoke eloquently of the divisions we witnessed within families and communities at the time of the Brexit referendum. That explains why we as a Government have no interest in reopening old divisions and wounds, and instead are working to remove unnecessary barriers and strengthen our trading relationships.
No debate in this House would be complete without the contribution of the hon. Member for Strangford (Jim Shannon). I assure him, although he is no longer in his place, that in the work of both the Minister for the Cabinet Office and the Secretary of State for Northern Ireland, the concerns and needs of Northern Ireland are never far from their thoughts.
My hon. Friend the Member for Northampton South (Mike Reader) brought to bear all his professional experience working across Europe and made a characteristically powerful case for the mutual recognition of professional qualifications. I made that case only this morning at a meeting with TheCityUK representatives here in London. The hon. Member for Melksham and Devizes (Brian Mathew) then spoke eloquently of the need to maintain high standards in farming and the merits of strengthening our trading relationship with the European Union.
My hon. Friend the Member for South Norfolk (Ben Goldsborough) took us on a veritable tour of research and innovation labs in his constituency. He is right to recognise that innovation today relies on not only often complex, integrated and international supply chains, but research co-operation. What was the opportunity cost of the years when the previous Government took us out of the Horizon cross-Europe research programme? It is exactly that kind of research collaboration that our own scientists need and demand if they are going to continue to be world leading in their research domains.
The hon. Member for Wokingham (Clive Jones) highlighted some of the statistics that I also used in this debate to highlight the damage done by our predecessors. He asked if we would act only in the national interest. That is an undertaking I am happy to offer. National interest is the north star by which we are navigating these frankly turbulent trading waters today.
My hon. Friend the Member for Bolton West (Phil Brickell) spoke of the civic ties between his community and Germany. It was a timely and helpful reminder that first through the European Coal and Steel Community, then through the European Economic Community, and ultimately through the European Union, the European project has always been about peace as well as security and prosperity.
The hon. Member for Mid Dorset and North Poole (Vikki Slade) also touched on the need for spending on defence to reflect the changing circumstances, not least in the Euro-Atlantic security area. That is a recognition that underpins the strategic defence review and the recent decisions that have been reached on defence expenditure by this Government.
My hon. Friend the Member for Monmouthshire (Catherine Fookes) asked me to pass on her good wishes to the Minister for the Cabinet Office for all his excellent work ahead of the UK-EU summit next month. As a colleague in the Cabinet Office, and indeed as a friend, I will be happy to do so. She is right to recognise all the work that he is doing to undo past damage and to rebuild and reset relations with our friends, partners and neighbours in the European Union.
The hon. Member for Richmond Park (Sarah Olney) urged us to take serious action to strengthen our trading relationships with the EU. Again, I assure her that that is exactly the work to which we have committed ourselves.
My hon. Friend the Member for Kensington and Bayswater (Joe Powell) rightly referred to the changed context on our continent, and indeed in our world. Red tape and uncertainty—his description—seems a pretty fair judgment of the inheritance that we secured in July. In these history-shaping days, it is right to recognise the changing geopolitical and geo-economic backdrop for the negotiations under way—not just the talks in Downing Street today, but those being led by the Minister for the Cabinet Office ahead of next month’s summit.
The hon. Member for Esher and Walton (Monica Harding) urged the leadership to follow the trade and follow the money. As I said earlier, we have chosen to follow the data, rather than the post-imperial delusions that were the hallmark of our predecessors’ approach to trade.
My hon. Friend the Member for Walthamstow (Ms Creasy), who has eloquently spoken of the need for closer ties with Europe on many occasions, talked of the need for new debates and offered a number of powerful suggestions for the way forward at the UK-EU summit. I have to say that she offered a fantastically large number of suggestions in the necessarily constrained time for her speech, but I listened carefully to all of them.
The hon. Member for Dewsbury and Batley (Iqbal Mohamed) urged the Government to write a new chapter. I hope we are doing somewhat more than that: we are actually writing a whole new trade strategy, which we aim to publish in the coming weeks.
My hon. Friend the Member for Exeter (Steve Race) acknowledged the need for partnerships with like-minded nations. I agree with his powerful points about the particular need for security and defence partnerships given the changed geopolitical context with which we are all familiar.
My hon. Friend the Member for Beckenham and Penge (Liam Conlon) reminded us, with reference to the Good Friday agreement, that we must reject isolationism. I am happy to confirm that we have left behind the era in which a previous Prime Minister resisted the opportunity to confirm that President Macron is indeed a friend of the United Kingdom. Let me confirm today that we regard France as a trading partner, a close neighbour, a steadfast security partner and a country bound to the United Kingdom by bonds not just of shared history, but of shared and continuing friendship.
My hon. Friend the Member for Chelsea and Fulham (Ben Coleman) spoke authoritatively of the need for cool-headed, ambitious negotiations. I assure him that that is the approach that the Government are taking to the coming summit.
My hon. Friend the Member for Glasgow North (Martin Rhodes) made the case for recognising the challenges faced by touring artists. I put on the record my appreciation of all the work done for our country not just by touring artists but by the creative industries more broadly.
My hon. Friend the Member for Stratford and Bow (Uma Kumaran), in a veritable Noah’s ark of a speech, highlighted not just the importance of the pygmy hippo that she met but, more substantively, the need for an SPS agreement. I assure her that we continue to work on all those issues.
My hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley) moved seamlessly on to a discussion of Carl the crane, and indeed his local businesses. I assure him that we noted all his points, and we will endeavour to ensure that small businesses are at the forefront of our thinking as we work not least on SPS and the other issues about which we have spoken.
My hon. Friend the Member for Camborne and Redruth (Perran Moon) brought a Cornish perspective to the debate. I listened carefully to all the points that he made about the need to bring down unnecessary barriers.
The right hon. Member for Orkney and Shetland (Mr Carmichael) similarly spoke eloquently of the needs of fishermen in his constituency, and made the case for an SPS agreement. We committed in our manifesto to negotiate that veterinary agreement with the EU—an agreement on the application of sanitary and phytosanitary measures, to use the technical term. That is because agrifood producers across the United Kingdom are among those most affected, as they are buried in the paperwork left by our predecessors, and are affected by checks when exporting to the EU.
The EU remains an absolutely vital market for agrifood producers, accounting for 57% of the UK’s agrifood exports in 2024. Between 2018 and 2024, UK exports of agrifood products to the European Union, excluding beverages, dropped by 16% in inflation-adjusted terms. I have to say, that does not sound like the best of all worlds to me. The potential benefits of an SPS agreement are clear: Aston University estimates that an SPS agreement could increase UK agrifood exports by fully 22.5%. Bearing in mind that we import more agrifood from the EU than we export to it, a veterinary agreement would of course be mutually beneficial.
A number of Members raised a youth mobility scheme. The UK and the EU are in talks ahead of the summit, but alas I will not provide a running commentary today in this Chamber. We made a clear manifesto commitment to bring down net migration and to have no return to free movement within the EU. It is important that we determine who comes into our country, and those things are not up for negotiation in the continuing discussions.
We would like to strengthen MRPQ arrangements so that businesses can access the right talent at the right time. Again, improvements would be mutually beneficial. UK and European industries have repeatedly asked for the recognition of professional qualifications between the UK and the EU to be strengthened. That includes 24% of respondents to the recent British Chambers of Commerce annual trade survey and the European Services Forum.
On strengthening relations with the EU, we have an opportunity to address some of the trade barriers that we did not explicitly reference in our manifesto, including regulatory co-operation—
Sir Jeremy Wright (in the Chair)
Order. I am sorry to interrupt the Minister, but we are out of time. I thank all hon. Members who have participated in the debate.