Oral Answers to Questions

Greg Hands Excerpts

Thursday 17th October 2019 Commons Chamber

[Greg Hands (Chelsea and Fulham) (Con)]

5. What assessment she has made of the effect on EU trade policy of recent changes in tariff policies between the US and China.

[The Minister of State, Department for International Trade (Conor Burns)]

The European Union has made very clear its opposition to tariff escalation and its support for the international rules-based trading system. As a vocal champion of that very system, the United Kingdom endorses the EU approach. Low tariffs and free trade are the underpinning guarantor of prosperity and jobs in the UK; tariff wars are in no one’s interest.

[Greg Hands]

Does my right hon. Friend agree, given the growing disruption in the EU’s trade relationship with both the US and China, that now is not the time to have disruption in the EU-UK trade relationship? The UK will become, overnight, the EU’s second largest trade partner. Does that not show all of us the need to get a trade deal with Brussels that we can live with and move on?

[Conor Burns]

I am grateful to my right hon. Friend. As a distinguished former occupant of the job I now have, he understands these matters incredibly well. He is absolutely correct: the United Kingdom is about to become the EU’s second largest trading partner, with £357 billion of goods and services exported to the UK last year. A good Brexit deal is in the interests of the EU and in the interests of the UK, and I am sure the whole House—at least, I wish the whole House—would wish my right hon. Friend the Prime Minister every success today in trying to get that agreement.

--- Later in debate ---

[Elizabeth Truss]

The best way of avoiding no deal is for the—[Interruption.] The hon. Gentleman shakes his head, but this is common sense: the best way to avoid no deal is to vote for a deal.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the Secretary of State give us an update on where we are on joining the comprehensive and progressive agreement for trans-Pacific partnership?

[Elizabeth Truss]

I discussed that with Trade Ministers when I visited New Zealand, Japan and Australia. They are all very interested in the UK’s joining, and I want to progress that alongside the bilateral discussions that we are having with the countries. It will give us access to 11 fast-growing markets in Asia, so it is a massively exciting opportunity.

Oral Answers to Questions

Greg Hands Excerpts

Thursday 14th March 2019 Commons Chamber

[Mr Speaker]

I do not want to invest levity into these important proceedings, but equally one must not lose one’s sense of humour. That £32 billion volume of trade with Switzerland is very important, but I always say the best thing about Switzerland is not its watches, its financial services or its chocolate; the best thing about Switzerland is Roger Federer.

[Greg Hands (Chelsea and Fulham) (Con)]

I must say that I am tempted to answer questions this morning due to the constitutional innovation of Ministers no longer having to resign when they disagree with Government policy, but I will ask this one. Trade with Switzerland represents about 21% of all the trade of all the countries that have the continuity agreement. Does my right hon. Friend agree that it shows the growing success of this programme and the importance of ensuring that we have those trade agreements in place in the event of a Brexit without a deal later this month?

[Dr Fox]

I half-expected to see my right hon. Friend on the Front Bench with us this morning given the turn of events, but he is absolutely right that this is an important agreement. Over 20% of all the trade done under EU trade agreements is represented by Switzerland.

Mr Speaker, it is unlike me to disagree with you, but I do wonder whether on the morning after Roger Federer has defeated Kyle Edmund it is not a touch unpatriotic to be quite so pro-Swiss.

EU Trade Agreements: Replication

Greg Hands Excerpts

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

Again, I make the point: if Opposition Members want us to get trade continuity, the best way to do so is to vote for the deal that the Prime Minister has already set out. As for future FTAs, we could not negotiate those were we to follow the hon. Gentleman’s advice and remain in a customs union.

[Greg Hands (Chelsea and Fulham) (Con)]

I have had a careful look at the passage of these agreements through this House in the first place. Every one of them was supported by my right hon. Friend but most of them have been opposed by the hon. Member for Brent North (Barry Gardiner): CETA—the Comprehensive Economic and Trade Agreement—in February 2017; the EU-Japan agreement in June 2018; and the EU-Singapore agreement in September 2018. He voted against those. Does my right hon. Friend share my consternation at this urgent question, given that the hon. Gentleman never wanted us to be in these trade agreements in the first place?

[Dr Fox]

First, let me thank my right hon. Friend for the work he has done in my Department as part of this overall process. What stands out in this debate is the utter humbug we hear from the hon. Member for Brent North, who talks about the need to roll over agreements such as the one with Canada and asks why the Government are late in doing so. The Labour party voted against the agreement in the first place; Labour did not want us to have the agreement. So now, to come to the House asking why we are not rolling it over on time is, sadly, absolutely typical of the way he does business.

Oral Answers to Questions

Greg Hands Excerpts

Thursday 7th February 2019 Commons Chamber

[George Hollingbery]

All I can say is that the hon. Gentleman is entitled to his opinions, but I happen to disagree with him fundamentally. We have a close trading relationship with India, and we are working extremely hard to grow trade there. The figures I have already given him this morning demonstrate that there is potential in India, which we are exploiting and will continue to exploit if and when we leave the EU.

[Greg Hands (Chelsea and Fulham) (Con)]

India of course is in the EU’s generalised scheme of preferences, whereas nearby countries such as Pakistan and Sri Lanka are in GSP+, with Bangladesh probably soon to join them. Does my hon. Friend agree that, if we were to adopt Labour’s customs union policy, we would have to accept EU trade preference policy without any say in its formulation? Does he also agree that that would lead to a big decline in UK foreign policy influence in south Asia and among diaspora communities in the UK?

[George Hollingbery]

One reason why the Prime Minister has put forward the deal that she has to the House is that it allows the flexibility for us to engage in the ways in which my right hon. Friend expects us to be able to —actively with the south Asia region, and India in particular—and to prescribe our own preference schemes such that we can control our own rules.

--- Later in debate ---

[The Minister for Trade Policy (George Hollingbery)]

I can say straightforwardly that the anti-subsidy and anti-dumping measures that are currently in place in the EU have been widely consulted on with British industry, and particularly with the steel sector, as the hon. Gentleman will appreciate. We will be transitioning the measures that are important to those industries. The same process has been gone through for safeguarding, and the same result will occur.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the ministerial team update us on progress in seeking continuity of some of the other EU trade agreements, particularly those in Canada and in Africa, many of which, of course, the Opposition opposed in the first place?

[George Hollingbery]

I simply say what I have said to the House on a number of occasions: we are making good progress on many of those agreements. I have already signed three of them very recently and deposited them with the House. We will continue to update the House as progress is made, and we will bring forward a report in the next week or two, which will help elucidate the matter further.

EU Free Trade Agreements

Greg Hands Excerpts

Thursday 24th January 2019 Commons Chamber

[George Hollingbery]

That was a pretty long shopping list, and I am not in a position to answer all the hon. Gentleman’s questions, but I will make one point. I told him in Committee back in November that there was a wide range of reasons why some of these agreements had been challenging in many instances. For example, there have been changing incentives. If this House cannot make up its mind on what Brexit looks like, it will obviously be difficult for some of our interlocutors to decide whether we will be leaving the EU on 29 March. That said, a responsible Government make plans for any eventuality, and we are working extremely hard to make sure that the 40 agreements we have in place are available to those companies that use the preferences they guarantee.

I told the hon. Gentleman earlier that I believed the majority of these agreements would be in place by 29 March, and I continue to believe that, but it would not be appropriate to go into further details on an individual country basis, because these conversations are necessarily confidential, and our partners wish them to be confidential. To go into them, therefore, would not be proper. I am very happy to tell the House, however, that I believe we will have the majority of agreements rolled over, and it is absolutely our objective to have them all rolled over.

Finally, one small detail worth clearing up—it has been a matter of some press speculation—is that the Swiss agreement does not include any provisions on free movement.

[Greg Hands (Chelsea and Fulham) (Con)]

It has always been very likely that the counterparties to these deals would want to keep them operable, as it is in their interests to do so, but may I highlight the stinking hypocrisy of the Labour party on this? It voted against adopting many of these deals in the first place—it voted against adopting the comprehensive economic and trade agreement in February 2017 and against adopting the EU-Singapore agreement in September 2018—and now Labour Members complain that the deals will no longer be operable next month. Does my hon. Friend agree that this shows the Labour party at its absolute worst on Brexit, with its members unable to agree among themselves, and unable to do what is in the UK national interest?

[Mr Speaker]

The Minister at least pays obeisance to, and I think has genuine respect for, etiquette, protocol and the principle of parliamentary courtesy, so it would not occur to him for a moment to descend into the swamp, disregard his ministerial responsibility to the House, and start prating on about the policy of the Opposition, but let us put it to the test and hear from the Minister.

European Union (Withdrawal) Act

Greg Hands Excerpts

Monday 14th January 2019 Commons Chamber

[Barry Gardiner]

I think we should look at what actually happened, and it is relevant to the point that the Secretary of State was trying to make back in December. People are very fond of saying, “There were predictions of disaster and financial meltdown, but nothing happened.” Well, actually, something did happen: I think it was called “£70 billion of quantitative easing”, which the Treasury put into the economy in order to stop the problems.

Of course the Secretary of State once believed that his friends in the Anglosphere would be queuing up to do new trade agreements that would replace any lost GDP growth. The Bank of England has quantified the potential value of those deals at just 0.2%—not 2%, but 0.2%, or one fifth of 1%, or £4.25 billion. Nice to have, but by my reckoning the Secretary of State would still owe me about 533 Brexit buses.

The Prime Minister is fond of saying that her deal is the only one on the table. Well, of course it is; she is the Government, and only the Government are able to negotiate with the EU. That does not mean that there could not be a different deal. The Brexit negotiations have been constrained by the Prime Minister’s red lines. We know that had the red lines been different then the deal would have been different also.

The Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke), reminded us in his admonishment of the Home Secretary that

“if we are maintaining an open border where there is a land border, it can only be done in a modern economy by having some form of customs union applying to both sides of the border”.—[Official Report, 5 December 2018; Vol. 650, c. 900.]

That is why we on the Labour Benches have been calling for a new permanent customs union with the EU in which we would have a say over future trade agreements.

When the shadow Chancellor mentioned this previously in our debate the Secretary of State was really rather rude and he reinforced that disparagement today. He reminded the House that under article 3 of the treaty on the functioning of the European Union the EU shall have exclusive competence with regard to the customs union. Of course it does: the treaty binds the member states of the EU and gives the Commission that right to negotiate the terms of any agreement with third-party countries. It does not stop the EU concluding agreements with third-party countries where there is joint control.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the hon. Gentleman give way?

[Barry Gardiner]

No.

Perhaps I can read from article 8 of the TFEU:

“The Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation.

2. For the purposes of paragraph 1, the Union may conclude specific agreements with the countries concerned. These agreements may contain reciprocal rights and obligations as well as the possibility of undertaking activities jointly.”

--- Later in debate ---

[Mr Speaker]

Order. Just before I call the hon. Member for Scunthorpe (Nic Dakin), I must point out what some Members will have noticed—namely that, most unfortunately, the timer display to my right is not functioning, which is gravely to the disadvantage of Opposition Members. I have been advised, I am afraid, that it cannot be repaired while the House is sitting, so I would encourage Members to—

[Greg Hands]

Come over here.

[Mr Speaker]

No, not to cross the Floor of the House—it was a nice try by the right hon. Gentleman, and I do not blame him for making the attempt, although whether they will be inspired by the prospect of sitting near him is a matter for legitimate speculation and conjecture. I was saying that Members should try to take account of exactly when they started speaking, and they may be assisted by their Whip as well. I know that it is imperfect, and I am glad that the right hon. Gentleman has kept his sense of humour at this time of night, but we will have to keep going to the best of our ability.

--- Later in debate ---

[Greg Hands (Chelsea and Fulham) (Con)]

I am not an ideologue on Brexit; I campaigned hard to remain in 2016, and do not regret having led the “Stronger In” campaign in my constituency. My strong family and other links to the continent mean that I have never been what is called a “Brexiteer”. But like my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) and unlike my hon. Friend the Member for Totnes (Dr Wollaston), I strongly believe that the referendum in 2016 was a legitimate exercise, with huge voter participation. It did not get the result that I wanted, but the result needs to be respected. I have spent the last two and a half years believing that, with the right deal, Brexit could work. Indeed, the ability to leave the EU is in the treaties themselves.

My view, however, is that as it currently stands, this agreement is one of the worst possible combinations. I am stating today for the first time that, as the deal currently stands, I will vote against it tomorrow night. Brexit is a set of challenges and opportunities, but this deal fails to address the challenges. It kicks the can down the road on EU trade until at least December 2020. It closes down the opportunities: most prominently, there is not going to be an independent trade policy of any consequence.

Some say that there are merits. The Prime Minister lauds and promotes some of them. For example, the deal ends free movement but for me and my inner London constituents, free movement has never been a particular issue. Some 11,000 nationals of EU countries in Chelsea and Fulham are all very welcome to stay—one is even my wife. The Prime Minister’s achievement in ending free movement is not much of one at all for me and my constituency.

The three principal reasons why I oppose the agreement are, first, that it treats Northern Ireland very differently from the rest of the UK; secondly, there is the backstop itself. Both those reasons have featured quite heavily. My third reason is this: I believe that embedded within the agreement is being in a customs union with the European Union for the long term, not just in the backstop. That is the stated goal in the future partnership. It is a myth that the withdrawal agreement plus the future partnership opens up all possible future trade outcomes. No: the economic partnership will

“build and improve on the single customs territory provided for in the Withdrawal Agreement which obviates the need for checks on rules of origin.”

It “builds and improves on”—that is unacceptable. There is not going to be any independent trade policy in a customs union or in any single customs territory. Indeed, Sabine Weyand, Michel Barnier’s No. 2, briefed EU ambassadors that the future partnership

“requires the customs union as the basis of the future relationship”.

That gives rise to all kinds of problems: trade agreements, the Turkey trap, and the contracting out of trade remedies to Brussels, with the effect that will have on key UK industries such steel and ceramics. The UK will lose its say and contract out that policy to Brussels. Then there are trade preferences. How we treat the developing world is incredibly important. Those will now be a matter for Brussels. That will be a huge loss for UK influence in foreign policy.

I talked earlier today about some of the comments made by some senior EU officials. I will not repeat those now, but it is always worth while for us to study what somebody we are negotiating with is saying. Most, maybe all, of the alternatives are preferable to the agreement as it currently stands. Brussels needs a deal too, and Barnier’s mandate is to achieve a deal. Unless the deal can pass the House of Commons, it is not a deal at all.

Trade Bill

Greg Hands Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 17th July 2018 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

We raised concerns in Committee about the Government’s power grab in the Bill. For 40 years, we have subcontracted our responsibility for trade agreements to the EU, while scrutiny has been delivered through the European Parliament and by our own European Scrutiny Committee, yet the Government are not proposing any equivalent scrutiny processes for agreements that will replace those we currently have through our membership of the EU. This lack of scrutiny is a major issue, and we raised the concerns of business, trade unions, civil society, consumers and many more in Committee.

The Labour party submitted a series of amendments in Committee that embodied a full process of parliamentary scrutiny and extra-parliamentary consultation. The Government responded by saying that the new UK agreements would just roll over the terms of existing EU agreements and would thus need no process of scrutiny, having already been scrutinised.

[Greg Hands (Chelsea and Fulham) (Con)]

Does the hon. Gentleman not accept that we are dealing with existing EU agreements that have already been scrutinised in both Houses of Parliament and that in many cases have already been in effect for a long time—in some cases, decades? It is important to have the ability to scrutinise the agreements if they have changed, but in general I think that he is barking up the wrong tree in alleging that this is an attempt to avoid parliamentary scrutiny.

[Bill Esterson]

The former Minister should have waited, because he anticipated my remarks: the Government’s delegated powers memorandum told a different story. Paragraph 46 noted that the new UK agreements would not just be legally distinct but could include

“substantial amendments, including new obligations”.

In other words, these will not just be roll-overs; they will be new treaties that can introduce wholly new terms of trade between the UK and our trading partners—terms that will be binding on us for years to come.

Government new clause 12 is confirmation that Labour was right to identify the problem here. It will require a report to be laid before Parliament before the ratification of any free trade agreement that will highlight and explain any significant differences between the new agreement and the corresponding EU agreement on which the new agreement is based. It is disappointing, therefore, to see this concession wiped out immediately by Government new clause 13, which will allow them to sidestep the obligation to lay such a report. It will also allow the Government to ratify new agreements without having produced the report in question. Government new clause 14 picks up the same point prior to implementation, but by this time the trade agreement will already have been ratified.

We will support new clause 12, but if the Government really mean what they say, they should withdraw new clause 13. We will also support new clause 3, which pays us the compliment of replicating the amendments that we tabled in Committee and which sets out the scrutiny process that should be adopted for new trade agreements.

--- Later in debate ---

[Mr Speaker]

Greg Hands, you have three minutes.

[Greg Hands]

I welcome the return of the Bill to the House and, perhaps not surprisingly, I support the Government’s approach, having been the Minister responsible for the Bill until about three weeks ago. I commend the approach taken by my successor in moving a number of these issues forward, particularly in his discussions with my hon. Friend the Member for Huntingdon (Mr Djanogly).

Parliamentary scrutiny is crucial for trade agreements, and we have seen the difficulties in recent years with trade agreements that have been insufficiently scrutinised, or where there was a feeling that there had been insufficient scrutiny—the Transatlantic Trade and Investment Partnership perhaps being the most important example.

I very much welcome the Secretary of State’s proposals yesterday for the scrutiny of new trade agreements. Returning to where we started, it is vital to distinguish between the 40-plus existing EU trade agreements and what may happen for future agreements. No one should underestimate the importance of those EU agreements. With Japan being in scope, too, the volume of our trade that is done with countries for which there is an EU trade agreement—that is not the same as saying the volume of trade that is dependent on those agreements—rises to around 16%, which is an incredibly important part of our trade. As we know, none of these countries is in principle opposed to doing and rolling over these agreements. I have had productive talks with South Korea and South Africa, as I am sure my successor has. Various memorandums have been signed agreeing to transition these agreements. So I refer anybody who says that these countries have problems doing that to those agreements that were signed, for example, the one signed with the South African Trade Minister, Rob Davies.

I welcome the approach taken by my hon. Friend the Member for Huntingdon and his agreement that we are now satisfied with and have coalesced around new clauses 12, 13 and 14. We are always trying to get a balance between ensuring that any significant change to a trade agreement is scrutinised by Parliament and not creating a laborious and cumbersome procedure that would potentially jeopardise the future of one or more of those 40-plus agreements. I am delighted that we seem to have reached that agreement. I have visited businesses that are directly impacted by some of these agreements, including the Ford factory just outside Johannesburg, which is very dependent on the EU-South African Development Community agreement, in terms not just of taking components for vehicles from the UK to South Africa, but exporting finished vehicles to the EU. The business voice is very much saying that it wants these agreements to continue—that is business’s principal concern.

Finally, I wish to argue against new clauses 3 and 16, and other proposals that seek to legislate now for future trade agreements. It is only fair that we look at the proposals made by the Secretary of State yesterday in this House and do not prejudge them by passing legislation today, as it would have an impact on future trade agreements. We must make sure we listen to all voices, so that they are included in consideration of where we take future trade agreements.

[Several hon. Members rose—]

--- Later in debate ---

[Nicky Morgan (Loughborough) (Con)]

I will necessarily keep my remarks extremely brief. I cannot match the magnificence of my right hon. Friend the Member for Broxtowe (Anna Soubry) when she spoke yesterday, but let me say the following to the Chamber. Brexit is a matter of national interest. It is time to put party politics aside, which is why I welcome the fact that Labour Members are open to supporting the Chequers proposals, as captured in new clause 18, which I rise to support. I hear what the hon. Member for Bradford South (Judith Cummins) said about her scepticism regarding whether the proposals could work, but the Prime Minister did the right thing in the national interest by putting on the table a workable, practical proposal, captured at Chequers, that could be negotiated with the EU.

[Greg Hands]

Will my right hon. Friend give way?

[Nicky Morgan]

No. Some Government Members chose to try to scupper that agreement and those proposals yesterday. Some of us tried to stop that; but sadly, we failed. What is proposed in new clause 18—I am delighted to join my hon. Friend the Member for Wimbledon (Stephen Hammond) in proposing it—is eminently sensible. We want to give the Prime Minister space for the negotiations, and it is clear that there is a majority in this House for a customs union to safeguard business, jobs and our constituents’ future financial security. I hope that the House will have the opportunity to demonstrate that shortly.

--- Later in debate ---

[Greg Hands]

There are three or four very strong arguments not to be in a customs union as outlined in new clause 18. First, being in a customs union puts massive restrictions on having an independent trade policy. Trade agreements are all about WTO schedules, and if we are in a customs union, we cannot have our own WTO schedules. Secondly, who would run trade remedies in such a position? Would trade remedies be run in London or would they be run in Brussels, and in whose interest? With British jobs and British companies on the line, it is incredibly important that we have the ability to run trade remedies.

Thirdly, on the subject of trade preferences, we want to do better for the developing world. Being in a customs union would prevent that. Finally—

Trade Policy

Greg Hands Excerpts

Monday 16th July 2018 Commons Chamber

[Dr Fox]

The whole point of the negotiation phase, which is one of five phases of a free trade agreement, is that the public set out what they believe the level of ambition should be. Those who want to set restrictions on what they think the Government’s mandate in the negotiation should be will be free to express themselves during that period. That is exactly why we are putting this forward, because the worst thing would be to go into a negotiation when the public felt that their views had not been taken into account in any way. As I have said, this is not just about the Government being philanthropic in the trade space; it is also about our self-interest, because it makes the job much easier for the Government and for Parliament if the public feel that they have genuinely been consulted. As my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) said, one of the problems with the TTIP process was that the public felt that they had been ignored and that the negotiation had happened from start to finish away from public scrutiny. We have to try to avoid that happening in future if we are to take advantage of the freedom that new free trade agreements will give to the country.

[Greg Hands (Chelsea and Fulham) (Con)]

I congratulate my right hon. Friend on outlining the broad parameters of how future trade policy and consultation will work. I think he is on exactly the right lines, particularly with the commitment to primary legislation for each individual trade deal. Will he tell us a bit more about the consultative roundtables that he has described? One of the things we will discover is that politicians and producer interests will quickly try to get to the front of them, so how will he ensure that consumers, consumer companies and consumer groups will have a proper voice in that consultation?

[Dr Fox]

As I mentioned earlier, one of the key elements will be the setting up of the strategic trade advisory group. We will ensure that we have representatives across that, including small and medium-sized enterprises, consumer representatives, development organisations and non-governmental organisations. I go back to the point that I made earlier: it is absolutely essential that people feel they have been genuinely consulted throughout the process; otherwise, they will say that they do not accept the agreement because there has not been sufficient transparency throughout the process.

EU-Japan Economic Partnership Agreement

Greg Hands Excerpts

Tuesday 26th June 2018 Commons Chamber

[Greg Hands (Chelsea and Fulham) (Con)]

For the second time today, I have the rather dubious honour of following the shadow Secretary of State after he made what was, yet again, a most extraordinary speech. Earlier, he spoke for 40 minutes without actually telling us what the Labour Front-Bench view was on CETA. Then we discovered not long afterwards that he was abstaining in the Division, even though last year he had been against CETA. More Labour MPs have voted in favour of the provisional adoption of CETA than have voted against it. The confusion continues. In that 21-minute effort by the hon. Gentleman, I do not think we got any closer to finding whether Labour agrees with the EU-Japan EPA or not.

The hon. Gentleman came out with some extraordinary statements. I think he said that the EU or the UK would be some billions of pounds worse off as a result of the agreement. That is not what the impact assessment says, as I know because I signed off on it. The impact assessment actually says that Japanese exports to the EU will rise more quickly than Japanese imports from the EU. That is not the same as saying that anybody is going to be worse off. Trade is not a zero-sum game. He has bizarrely moved from the position of being anti-trade agreements to having some kind of Trumpist, mercantilist view of the world. From what I could interpret from his 60 minutes of oration today, he is the living embodiment of the Trump view on trade here in the House of Commons.

The EU-Japan EPA is a very good agreement. I will speak about three aspects. First, it is a good agreement in its own right. Secondly, it is very important for current trade policy and also for our future UK trade policy. Thirdly, there is what it means for free trade generally at a time when free trade is being challenged in different parts of the world. On its entry into force, the agreement will see 91% of Japanese tariffs eliminated overnight and 97% eliminated over the long term. There will be benefits for all of the UK in this agreement, whether in chemicals, motor vehicles, agricultural products, food and drink, processed foods, beer, wine, whisky and more. All will enjoy lower tariffs.

The agreement is also very good for UK services. With trade agreements, we must always remember the importance of services to our economy. Services provide 80% of the employment in our economy and 79% of GDP. One of the best and most exciting aspects of the future UK independent trade policy is being able to do more for UK services. We are the world’s second-largest services exporter. It is estimated that the agreement could be worth up to £3 billion to the UK economy each year. We are in a good position with Japan on trade. Last year, UK exports to Japan were up by 13.3% to a total of £14.3 billion.

This agreement is important, as is the CETA agreement, for the EU’s own trade agenda and for our future UK trade agenda. After five or six years of no EU trade agreement seeing fruition, we now have CETA, the EU-Japan agreement coming on track, important agreements with Singapore and Vietnam, modernised versions with Mexico and Chile, and the possibility of agreements with Indonesia and Mercosur. These are all really important agreements and steps for the EU.

I have been to the last four of five EU Trade Council meetings. Some people might say, “Why is the UK so enthusiastic about these EU trade agreements?” The answer is briefly this: trade agreements generally are good for trade, and the UK is a passionate supporter of free trade. This also gives us the potential to take the substance of the agreements that are being negotiated at the moment to put into a future UK agreement. In my time in the role, I have found myself being the most enthusiastic for the EU’s trade agenda of all the EU 28 member states sat around that table—ironically, at a time when we are leaving. It is important to recognise that, as my hon. Friend the Minister pointed out, the two Prime Ministers recognised that the substance of this agreement will establish a new economic partnership between Japan and the UK based on the final terms of the EPA.

This agreement and other agreements like it are very important for free trade generally. We need to be breaking down barriers. Most of the new barriers to trade that have arisen in the past 10 years have come in G20 countries. This is a big agreement between the EU and the world’s third-largest economy. It is breaking down quite a few non-tariff barriers, particularly in services. This is a step in the right direction.

We look increasingly to our friends—countries such as Canada and Japan—when it comes to the debate about the importance of free trade and of the rules-based trading system. There are worrying developments in trade at the moment, such as the section 232 steel tariffs and what is going on with automobiles. Earlier today in my constituency, I bumped into John Warr of Warr’s Harley-Davidson in Fulham, and he is concerned about the potential for that trade dispute to escalate. We must never forget that trade is about real jobs, real businesses and the real livelihoods of our constituents.

Draft EU-Canada Trade Agreement Order

Greg Hands Excerpts

Tuesday 26th June 2018 Commons Chamber

[Greg Hands (Chelsea and Fulham) (Con)]

I rise to speak very much in favour of ratifying this agreement, and I welcome the opportunity to support my right hon. Friend the Secretary of State for International Trade and President of the Board of Trade, and to record my thanks to him for doing so much good work in the last two years to establish the Department for International Trade. I also thank the superb officials at the Department, who have worked tirelessly to get our independent trade policy up and running and heading in a successful direction. I also congratulate my successor as Minister for Trade Policy, my hon. Friend the Member for Meon Valley (George Hollingbery), who I think will be leading the next debate. I welcome him to his position and wish him every good fortune in his important role, in which he has a lot coming up in the next couple of weeks.

I want to reflect on the extraordinary contribution by the shadow Secretary of State. It was an abuse of procedure to speak for 35 minutes in a 90-minute statutory instrument debate and to leave others, who actually want to speak about the content of the agreement and its implications, with just four minutes each. I listened to his explanation of what happened, or did not happen, in 2016, and I thought it not really in his interests, as we could also go back to his position in 2016 and 2017, when I think he said that staying in the customs union, which I believe is now his party’s policy, would be a disaster for the country. I should have thought he was the last person to want to draw attention to what people said two years ago.

Most importantly, we heard the shadow Secretary of State speak for 35 minutes but never got a straight answer as to what his position on the agreement actually is. I think he said he would like to renegotiate it. Now, not only would that have implications for an agreement that is already in place—the provisions have been in place since September—but is he also saying he would renegotiate all the other 40-plus EU agreements, rather than seek their transition into UK agreements? [Interruption.] I think he is saying from a sedentary position that he would like to renegotiate the whole lot.

[Geraint Davies]

rose—

[Greg Hands]

I will not take any interventions because there is no time.

I want to say three things. First, CETA itself, on its own merits, is a very good deal. It could be worth as much as £1.3 billion per annum to the UK economy. It removes all tariffs on industrial products and wines and spirits, and eliminates customs duties on ciders, wines and spirits. On the investment provisions, we must remember, as the Secretary of State laid out, that the UK is the fourth-largest source of investment into Canada and the UK is the second most popular destination for Canadian investment. It is also important for the EU’s trade agenda, as it will be the first EU trade agreement to be ratified since that with South Korea some six years ago. The UK is supportive of the EU’s trade agenda, partly because we believe in breaking down barriers ourselves, and partly because the UK will seek to maintain the substance of these agreements as we go forward after Brexit.

Last time around on CETA the official Opposition split three ways. We look forward to seeing what the official position of the Opposition is and what the practical position is of their various MPs.