Commonwealth Trade

Lord Bellingham Excerpts

Wednesday 12th December 2012 Westminster Hall

[Andrew Rosindell]

Once again, I admire the right hon. Gentleman’s stance on these issues. I have enormous sympathy with his remarks. The Minister will recall that only yesterday I raised with him the failure of the United Kingdom in this regard. It is the only post-colonial nation to deny its territories the right to vote in its own elections. The Government in London, our Parliament, can of course make laws affecting our territories. We can declare war on their behalf. We can sign treaties and decide foreign policy and currency issues—a whole range of things—yet no one from our territories has the right to vote in our elections or to have any direct say. We do not even have a Standing Committee of Parliament that deals exclusively with our territories and dependencies. In that regard, we are unlike Australia, which has an external territories committee. Therefore we have, I believe, let our territories down over many years.

It is only since the election of the current Government that I have seen a genuine change of attitude to our territories. I pay tribute to my hon. Friend the Member for North West Norfolk (Mr Bellingham), who championed this cause as Minister for the overseas territories until only recently. Many of the representatives from those territories are truly grateful to him for everything that he did to change the relationship and to ensure that we have a much more positive attitude towards our overseas territories.

[Mr Henry Bellingham (North West Norfolk) (Con)]

I am very grateful to my hon. Friend for those kind remarks. On the overseas territories, does he agree that one should look not at the size of population but at GDP and per capita income? We should look at some of the territories that have world-class financial services and world-class hydrocarbons and at ways of harnessing bilateral trade in both our interests. Does he agree that any reinvigorated approach to the territories must focus more on the trade agenda?

[Andrew Rosindell]

I wholeheartedly support what my hon. Friend said. This is not just about population. There is a whole range of factors, as he mentioned, and we must look at all those opportunities if we are to capitalise on parts of the world that we have neglected. We have missed opportunities. We know that if we want a sustainable future for all our people, we have to stretch beyond the European continent, and what more obvious opportunities are there than those offered by countries with which we have so much in common, not least the English language?

--- Later in debate ---

[Andrew Rosindell]

My hon. Friend makes an excellent point. I will refer to this later, but we spend rather a lot of money on aid, through our Department for International Development budget. It is probably more beneficial in the long term to assist such countries to trade. We should help people to trade themselves out of poverty, which is a far better solution than continuously giving them handouts. Trade is the way out of poverty, and the Commonwealth is uniquely placed to form a foundation for that. I thank my hon. Friend for that intervention.

[Mr Bellingham]

Does my hon. Friend agree that a vital part of the Commonwealth organisation is the Commonwealth Business Council? In the past, it focused largely on India, the far east and the antipodes—rightly so, in some ways—but seven of the 10 fastest growing economies in the world are African, and many of them are in the Commonwealth. Does he therefore agree that the Commonwealth Business Council should concentrate more on Anglophone and, indeed, Lusophone Africa?

[Andrew Rosindell]

I agree with my hon. Friend. I hope that his work in the Foreign Office laid the foundations for closer co-operation with our friends in Africa, which is an up and coming continent. Once again, Britain is uniquely placed to develop trade and co-operation with those countries, and the Commonwealth Business Council also has a role to play. But what were we thinking of, in the past few decades, when we completely forgot about countries all around the world, and focused purely on a model of Europe that, frankly, was alien to what most of us in this country believe? All those opportunities lie before us, and we now need the political courage to seize them and make the best of them, not only for our own people, but for those of all the Commonwealth nations. I believe that we have the chance to do so at this point in our history.

We all know that, in comparison with the combined Commonwealth annual growth rate of 3.7%, the European Union’s growth is shrinking. Under the so-called Commonwealth effect, the overhead costs of trading with the Commonwealth are reduced by about 15% in comparison with trade outside the Commonwealth. I hope that the Minister will acknowledge the Commonwealth factor in doing business.

We are the world’s sixth largest trading nation. Yet while we remain wedded to an outmoded customs union, emerging nations are at liberty to trade freely and openly in a healthy competitive environment. Will the Minister tell us what the Government are doing, despite that hindrance, to help UK small and medium-sized enterprises trade with other Commonwealth nations, and what platforms are open to UK SMEs to get information about Commonwealth trade?

I am left in absolutely no doubt that we are at a crossroads; not taking a practical outlook now on how the UK moves its trade relations forward will be viewed by future generations as utterly foolish. As a member of the Foreign Affairs Committee, in my work with the Commonwealth Parliamentary Association, and as chairman of all-party groups relating to Commonwealth countries and the overseas territories, I am fortunate to have met and had direct dealings with many high commissioners, prime ministers, premiers, chief ministers, diplomats, Government representatives and those engaged with trade and commerce. Let me tell the House that there is a strong and clear message that resonates: the Commonwealth nations are eager for our business, and they want to explore and develop a trading relationship. But what do we do? We talk. We talk about the valuable asset of the Commonwealth, how relevant it remains to Britain and the potential for business and trade, but we seem to do very little.

Therefore, I ask the Minister to consider making that a central theme for Her Majesty’s Government to pursue in the second half of this Parliament. Will a Business Minister join him in Colombo for next year’s Commonwealth business forum to promote what I hope will be a new British vision for trade across the Commonwealth? I, for one, recognise how important it is for the UK to take a lead in Commonwealth initiatives. What could be more important in these times than to build steadfast foundations for trade for the decades to come? To all those who think that adopting a different relationship with the EU would put us on the periphery of Europe, I say no—it would place us on the doorstep of the world. That point runs much deeper, because increased Commonwealth trade and co-operation would bring a whole host of other benefits. A Commonwealth investment bank might cultivate projects in emerging markets, and a Commonwealth business visa could promote a trans-regional investor environment.

On that note, a few simple changes at our border would also provide a friendlier reception for Commonwealth citizens entering the United Kingdom. As colleagues will be aware, I am promoting the United Kingdom Borders Bill, which would provide for recognition at our border of people from Commonwealth realms where Her Majesty the Queen remains the Head of State. It would give people from those 15 nations the right to enter UK passport control in the same channel as the British, which would generate a tremendous amount of good will.

The shadow Minister, who has links with Australia, will know how passionately such people feel let down when, on arriving at Heathrow, they are told to queue with those from the rest of the world. They fought shoulder to shoulder with us in every war, they share the Queen as their Head of State, they speak our language and their culture and heritage is ours, yet we treat them as aliens. Why do we not allow people from those realms and territories the right to enter through the same channel as the British, while those from countries with whom we have not always had that much in common can enter through that channel? It is a shameful indictment of the failure of all Governments to recognise our very special relationship with those countries. I hope the Government will address that by supporting my Bill, which is now before the House. The Bill would boost tourism and trade by making it easier to move between Her Majesty’s realms and territories.

There is a social justice element to the argument. The UK currently hands out £8.57 billion a year in international aid, which is a lot of money, almost all of which is distributed to Commonwealth countries. However, as we have discovered, handouts are futile for long-term sustainability: endless handouts are not the solution. If we really care—in other words, if we really mean it—we should offer such nations a way to trade their way up and out of poverty.

The cruel reality is that that cannot realistically be achieved by the UK at the moment, for we cannot give Commonwealth states the chance to trade with us on equal terms. While other countries such as Russia and China are able to invest in mutually beneficial relationships with the Commonwealth nations in the developing world, Britain is left simply throwing money at well-meaning projects, because we are not able to have trading relations directly with those nations without going through the European Union.