EU Trade Agreements: Replication

Debate between Liam Fox and Jonathan Djanogly

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

It is tedious to have to give the same answer, but if the same question keeps getting asked, I will keep doing so. The way that we get continuity at one minute after midnight is to have an agreement with the European Union so that we have continuity of the agreements. A number of the agreements are very close to completion, but there is a level of confidentiality around that. At the same time, the Government clearly want to give business an indication of where we think a trade agreement may not be able to be rolled over on time. I will do that in the coming days, following an assessment of where we are at the present time, and I will make a written ministerial statement to the House as well.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

Is it not necessary for us to take lessons from the fact that we have failed to land a pre-Brexit trade deal with Japan or with most of the other 70 countries with which the EU enjoys FTAs, such as that actually we would be better off being in a customs union or having some close customs arrangement with the EU, backed up by the firepower of 510 million consumers rather than 65 million?

[Dr Fox]

But we are leaving the EU. Were we to attempt to have a customs union relationship, which is what the Labour party says, we would have no say in that trade policy; we would actually be worse off than we are today in the European Union. The EU has made it very clear—and the European Union treaty makes it very clear—that a third country outside the EU cannot be involved in setting EU trade policy. At best, it is a fantasy, at worst, a dangerous delusion.

Trade Bill

Debate between Liam Fox and Jonathan Djanogly

Tuesday 9th January 2018 Commons Chamber

[Dr Fox]

I have given way a number of times, so I will make some progress.

The new legislation has four primary aims. First, as I have already mentioned, it aims to prevent disruption to UK businesses and consumers. I alluded earlier to the importance of the UK’s ability to access other markets across the world. Currently, as a member of the European Union, we are part of about 40 free trade agreements across the world, as my right hon. Friend just mentioned. Maintaining that market access for UK companies is a priority. That is why, as we leave the EU, we seek continuity and have therefore been public about our aim to enter into our own agreements with our partner countries that maintain the effects of the free trade agreements currently in place with the EU. The Bill will create new powers to make regulations, where required, to ensure that we can fully implement these free trade agreements and our other existing trade agreements as we leave the EU. By ensuring continuity in our existing trade arrangements, we will provide certainty and stability for workers, consumers, businesses, and our international trading partners.

Secondly, we want to maintain UK businesses’ guaranteed rights to access global public procurement markets worth approximately £1.3 trillion per year. The GPA, or government procurement agreement, is a plurilateral agreement within the framework of the WTO that aims to create an open market for Government procurement among participating nations. They include many of the world’s major economies, such as the United States, Japan and Canada, as well as the EU states. Currently, we participate in the GPA through our membership of the EU. It is worth pointing out that the UK creates around £68 billion of procurement opportunities within the GPA annually—over 25% of the total EU offering. After we leave the EU, the UK will need to join the GPA as an independent member, not only to safeguard continuity of access for UK companies overseas, but to ensure that we can tap into international expertise and obtain the best deal for the taxpayer here in the UK. The powers in clause 1 will allow us to make regulations implementing our obligations under the GPA as an independent member, reflecting our new status within the GPA. Parliament will be able to scrutinise the terms of our membership of the GPA through the Constitutional Reform and Governance Act 2010 before we join.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

I totally support my right hon. Friend’s aims in clause 1 and the need for us to re-engage with the GPA. The clause also shows how vital it is that we leave the EU with agreements in place, rather than just falling off a cliff. We are not a member of the GPA through our membership of the EU, and we will have to rejoin in our own right—in the same way as we will have to re-engage with our schedules, which we have through the EU rather than in our own right.

[Dr Fox]

As a doctor, I have never thought that falling off a cliff is sensible. It is certainly clear that it is beneficial to the UK to have a number of agreements in place, which is why we have introduced the legislation—to provide maximal continuity and security. That is the whole point of the legislation. My hon. Friend is correct that we will have to do the same exercise with our schedules in Geneva, but if I may make one slight correction, we are already an independent member of the WTO in our own right and we simply operate our schedules through the EU. We are not a member of the WTO by virtue of our membership of the EU in the same way as we are with the GPA.