UK-US Bilateral Relations

Debate between Lord Spellar and Michael Fabricant

Tuesday 8th October 2013 Westminster Hall

[Michael Fabricant]

I thank the hon. Gentleman for his intervention, which reinforces my point. Having worked with the BBC in Northern Ireland many years ago, I well understand his points. At state level, New York trades more with the United Kingdom than with any other US state. New York and the UK are inextricably bound together. If we believe that that is important for our economy, the Americans know how important it is for theirs, too. Let us not forget that the United States is the world’s largest economy, even after the economic crisis, and that British business is its biggest investor. UK investment in the US is 116 times greater than China’s investment in the US, 90 times greater than India’s, and 88 times greater than Brazil’s. We are almost back to 2008 levels, having suffered a global economic crisis, and we have overtaken Germany to become the US’s fifth largest trading partner.

If a special relationship were based on trade alone, the relationship between the UK and the US would be more than special, given those figures, but we know that the relationship enjoyed by our two countries is about more than just trade. Something pushes that trade. The figures I quoted should be shouted from the rooftops. We are not some minor mid-Atlantic island, as President Putin’s spokesman said, that the US flatters occasionally; we are its biggest investor and it is our biggest investor. That has happened not by accident, but because we are friends, because business and entrepreneurial endeavour thrive in our shared culture, and because we use a shared language, have a shared history, and use a shared common law. Those are not bygone assets of a long-forgotten empire or age, but real assets that we share, and which our people use to their advantage every second of every day.

Throughout the US, local radio stations and national public radio rebroadcast live BBC news for US listeners. The BBC’s news is considered to be as reliable, if not more reliable, than that of some domestic news broadcasters. Where else in the world would a nation routinely rebroadcast live news, which cannot be edited, from a so-called foreign power? Only the US does that with the BBC news.

Even the US national anthem owes much to Britain—perhaps more to Britain than to the US. That is not just because the words were written by an American, Francis Scott Key, as he witnessed, from the deck of a Royal Navy ship, the British bombardment of Baltimore—we all know that—but because the very tune of the “Star-Spangled Banner” was, in fact, a bawdy and popular London drinking song written by a Brit, John Stafford Smith, from Gloucester, and I mean Gloucester, England, not Gloucester, Massachusetts.

Here in the UK Parliament, we have tiles made by Minton in Stoke-on-Trent, and the US Congress has identical tiles. I was told that 20 or 30 years ago, when the tiles in the US Congress needed to be replaced, it contacted Minton. The people there said, “The order is not big enough for us to set up a manufacturing plant for the special manufacturing needed for the tiles,” so the Serjeants at Arms of both the House of Representatives and the Senate in the US Congress contacted the Serjeant at Arms in the House of Commons and Black Rod, as we archaically call him, in the House of Lords, and said, “Can we place a joint order for the tiles?” That was duly done. Of course, we must not forget that the US Congress and the new Palace of Westminster, as it is officially known, were built roughly at the same time, although in rather different styles.

As I say, the relationship is not only about history; there is the travel between the two countries. The routes between London Heathrow and John F. Kennedy international airport and Newark, serving New York, are the busiest air links between any two cities in the world, with close to 3 million people a year travelling between the two.

The alliance, however, goes way beyond being just financial and cultural: it extends to the protection of British and American citizens. The United Kingdom and the United States are the closest of allies militarily. Where else in the world would a country allow another to test its nuclear weapons on its territory? I am not talking about the UK allowing the United States to do so, but about the United States allowing Britain to test its Trident missiles in the Nevada desert.

British and American troops have fought side by side in almost every theatre for the past century, for the same cause and in the same spirit. British territory welcomes American servicemen as though they are our own—not as foreign soldiers, but as kindred spirits. When foot and mouth disease prevented the Royal Marine Corps performing exercises in the United Kingdom, the US Marine Corps invited its counterparts to train in Virginia. Those regular visits continue, and I am told that the Post Exchange is a darn sight cheaper than the NAAFI. Our network of intelligence sharing, military co-operation and joint diplomacy in the United Nations and elsewhere never ceases.

Perhaps the vote on Syria was surprising for those who question whether the special relationship is right, but the vote demonstrated, actually, just how close we are, and that we do not often take different decisions, because we have similar goals and a similar global view and aspirations. In the end, what did President Obama do? He followed in the footsteps of David Cameron and referred the matter to the US Congress. Despite the US having the constitution that Britain did in the 18th century, in which the President is Head of State, with what we would call the royal prerogative—the right to wage war—he, too, went to Congress seeking a vote, and he delayed it when he saw that Congress might well echo the will of Parliament across the ocean.

In conclusion, at every level of co-operation, the relationship that the United Kingdom shares with the United States is unprecedented between two countries. President Obama remarked, on a visit to Britain, that the relationship is the “essential” one, and do you know something? He is right. A million jobs on both sides of the Atlantic depend on it. The special relationship is economically, socially and historically beyond single events.

What I have aimed to do today is demonstrate that our two countries are as interlinked and as co-dependent as any the world has ever seen. Both countries benefit from that, and we should aim to build on that. The Prime Minister has shown his dedication to pushing for an EU-US free trade deal as soon as possible. That would increase trade by at least a further $100 billion, and even the US Congress has speculated on the many benefits to the United States if the UK were to enter the North American Free Trade Agreement—even if it meant that the UK would have to leave the EU. Sometimes, when people talk about these things, they think it is just madness on the British side. Actually, I do not think it is madness at all; I think it is a view of the future.

As a prop, Mr Dobbin, I raise this weighty document, which was published by the US Treasury in 2000, outlining the benefits to NAFTA if the United Kingdom were to join, and the effect on the UK if it meant that the UK would have to leave the EU.

[Mr John Spellar (Warley) (Lab)]

Has the United States not clearly indicated that its primary interest in trade negotiations—rightly so, given that it represents some 40% to 45% of world gross domestic product in aggregate—is the transatlantic trade and investment partnership, or TTIP? The US has indicated that it wants that to be a partnership with the EU as a whole, rather than having 28 separate negotiations. Does that not show the real direction that trade talks will take?

[Michael Fabricant]

Indeed, as long as the UK is part of the EU. Of course, as the right hon. Gentleman says, it is much easier to negotiate with one body than with many different bodies. Nevertheless, it is a fact that this document was produced by the US Treasury. I might even add to his argument by saying that the US is very keen for us to remain in the European Union. However, that is partly because, as some US diplomats have said privately, they think that the United Kingdom is the only sane voice in the EU on some issues. I rather suspect that the Minister of State, Foreign and Commonwealth Office, my right hon. Friend the Member for East Devon (Mr Swire), may have a view on that.

I profoundly believe that Britain’s place in the world is as an outward-looking global trading nation, doing what it does best: being open to the world and building alliances with those who believe in freedom and the advancement of its people. Our alliance with the United States has done that for centuries, and it will continue to do so, for the benefit of the United States, the United Kingdom, and, I believe, the peace and prosperity of the world.

--- Later in debate ---

[Mr Spellar]

Actually, at the time that those discussions were taking place, there was not a European Union; there was not even a European Coal and Steel Community. When President Obama launched the transatlantic trade and investment partnership talks—unfortunately, the latest discussion this week had to be postponed because of events in Washington—he made it clear that the likely time scale for securing a trade agreement would not be possible with a multiplicity of individual countries. Therefore, in bringing together the two major trading areas of the world, it is not in the interests of the United States for one of them to be broken up and divided.

Interestingly enough, that is the view not only of the United States but of Japan, another major trading partner of ours and a massive investor in this country. The Japanese also see our engagement in Europe as part of their investment in the UK; they use the UK as their base within Europe. Also, earlier I mentioned Australian business, and the Japanese view is exactly the view of the Australian business community too. Therefore, the attempt to create a sharp dichotomy between the two and to make it a binary choice between them—either involvement with the United States or with Europe—is not only a false choice but a choice that is not welcomed by our partners.

[Michael Fabricant]

Just for clarity, I want to make it clear that I have never said, nor do I think that others think, that there is mutual exclusivity. I was referring to the document produced by the United States International Trade Commission, which investigated whether it would be beneficial for the North American Free Trade Agreement if the UK was a member. It took the view that the UK could be a member only if we were to leave the EU. We may or may not have a referendum on this issue in 2017; I hope that we will. But the UK is a global trading nation, and that includes trading with Europe as well as with the United States and Australia. The US and the EU are not mutually exclusive. And while we are bandying around Churchill quotes, I will just throw this one in. He said that the UK is in Europe “not of it”.

[Mr Spellar]

I am not sure that that exactly—

[Michael Fabricant]

But it is a good quote.

[Mr Spellar]

As I was saying, I am not sure whether that quote undermines my argument or even contradicts it. However, I am sure that if the Government Whip—the Lord Commissioner of Her Majesty's Treasury, the right hon. Member for New Forest West (Mr Swayne)—was still here, he would be very pleased to hear that the hon. Gentleman is committed to 2017 rather than to 2014. I am sure that a note has been taken for him.

Finally, I want to look a little more widely, because, as I have alluded to before, some consider it fashionable to blame America for much of the world’s ills. I counsel them to beware of what they wish for. It was very well summed up by President Obama in his address to the UN, in which he said:

“The danger for the world is not an America that is too eager to immerse itself in the affairs of other countries or to take on every problem in the region as its own. The danger for the world is that the United States, after a decade of war, rightly concerned about issues back home, aware of the hostility that our engagement in the region has engendered throughout the Muslim world, may disengage, creating a vacuum of leadership that no other nation is ready to fill.”

I believe that our relationship with the US helps to secure, facilitate and support that US engagement with the rest of the world, which is in the interests of Britain, Europe and the wider world.