(3 years, 6 months ago)
Commons ChamberIn order to observe social distancing, the Reasons Committee will meet in Committee Room 12.
(3 years, 7 months ago)
Commons ChamberIn order to observe social distancing, the Reasons Committee will meet in Committee Room 12.
Business of the House
Motion made, and Question put forthwith (Standing Order No. 15 and No. 41A),
That, at this day’s sitting, the motion in the name of Andrew Stephenson relating to Business of the House (High Speed Rail (West Midlands - Crewe) Bill) may be proceeded with, though opposed, until any hour and Standing Order No. 41A (Deferred divisions) shall not apply.—(Mr Marcus Jones.)
Question agreed to.
Business of the House (High Speed Rail (West Midlands - Crewe) Bill)
Ordered,
That, at today’s sitting, proceedings on consideration of Lords Amendments to the High Speed Rail (West Midlands - Crewe) Bill may continue for up to one hour from the commencement of proceedings on the motion for this Order and shall then (so far as not previously concluded) be brought to a conclusion in accordance with the provisions of Standing Order No. 83F (Programme orders: conclusion of proceedings on consideration of Lords Amendments).—(Andrew Stephenson.)
(3 years, 8 months ago)
Commons ChamberI am going to finish now. The purpose of the Bill is simple: it allows the Government to use data that they already hold, in order to ensure the smooth flow of traffic, goods and people across the UK’s borders at the end of the transition period. The Bill will support better services by permitting data on the flow of international trade to be shared and analysed. The Bill does not create any new powers, but brings forward critical powers that are needed from the end of the transition period to ensure that the Government and public bodies can use the information that they already collect.
We have had a good debate, carried out in an excellent spirit, and I thank all Members for their contributions. My thanks also go to the Government Opposition Whips, of course, who have ensured that the Second Reading has run effectively—particularly under your direction, Madam Deputy Speaker.
That will be it.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).
(3 years, 8 months ago)
Commons ChamberBefore I ask the Clerk to read the title of the Bill, I should explain that in these exceptional circumstances, although the Chair of the Committee would normally sit in the Clerk’s chair, in order to comply with social distancing requirements I will remain in the Speaker’s Chair. However, I will be carrying out the role not of Deputy Speaker but Chair of the Committee. We should be addressed as Chairs of the Committee, rather than as Deputy Speakers.
Clause 1
Trade functions: disclosure of information by HMRC
Question proposed, That the clause stand part of the Bill.
With this it will be convenient to discuss the following:
Amendment 1, in clause 2, page 3, line 3, leave out subsection (7).
Clause 2 stand part.
Clauses 3 to 6 stand part.
On a point of order, Madam Deputy Speaker, I thank you for your indulgence and your patience, and I ask your advice on a matter that has come to my attention today that is of great importance not only to my constituent, Murray Gray, but to a number of constituents, mostly children, who are currently in receipt of private prescriptions for medicinal cannabis. I have had confirmation today that the Department of Health and Social Care says that those prescriptions will not be permissible after 1 January, so a number of patients will find themselves without medication. I wondered whether there is some way that could be raised as an urgent matter to be discussed by the House, and that we could hear from the Department, before the House rises for recess.
I thank the hon. Lady for that point of order. It is not really a matter for the Chair, but she is a very experienced Member of the House and I am sure she will talk to the Table Office about the different ways she might raise this matter, perhaps through written questions or directly with Ministers. Obviously, the Treasury Bench has heard what she has to say, so I trust that she will do that as quickly as she can. It is also business questions tomorrow, and she may wish to raise it there.
I will now suspend the House for three minutes in order to allow the safe entry and exit of right hon. and hon. Members.
(3 years, 9 months ago)
Commons ChamberThis is all very lively, as I can see, and a large number of hon. and right hon. Members wish to contribute to this debate, so I will start with an immediate five-minute limit for Back Benchers. That may well have to come down later, but we will try to keep that on for as long as possible.
(4 years, 3 months ago)
Commons ChamberI must inform the House that Mr Speaker has selected the reasoned amendment in the name of Keir Starmer. I call Secretary Elizabeth Truss to move the Second Reading. The Secretary of State is asked to speak for no more than 15 minutes.
I beg to move, That the Bill be now read a Second time.
Coronavirus is the biggest threat this country has faced in decades. All over the world we see its devastating impact. We will do whatever it takes to support United Kingdom businesses to continue trading, with our network of 350 advisers across the country and trade commissioners across the world.
This crisis highlights just how important it is to keep trade flowing and supply chains open, so that we can all have the essential supplies we need. It is free and open trade that has ensured that we have food on our table and access to vital personal protective equipment and medication. At meetings with my fellow G20 Trade Ministers, I have continually called for a united global response, tariff cuts on key supplies and reform of the World Trade Organisation. Although it is unfortunate that some countries have resorted to protectionism, many have sought to liberalise in the face of this crisis. In particular, I have been working with colleagues such as Australia, New Zealand and Singapore to highlight the importance of keeping trade flowing.
Free trade and resilient supply chains will be crucial to the global economic recovery as the crisis passes. Time after time, history has shown us that free trade makes us more prosperous, while protectionism results only in poverty, especially for the worst off. Britain has a proud history as a global leader and advocate of free trade. The bold and principled decision of Sir Robert Peel to take on the power of the wealthy producers and repeal the corn laws in 1846 ushered in an unprecedented era of free trade that saw ordinary people in Britain benefit from more varied and cheaper food, helping to grow our cities and power forward the world’s first industrial revolution.
I see a real opportunity again for industrial areas across Britain as we become an independent trading nation. By cutting tariffs and reducing export red tape, our great British businesses will be able to sell more goods around the world. British steel, ceramics and textiles are some of the world’s best, but all too often they are subject to high tariffs and barriers. Those industries are already looking forward to the opportunities that future trade deals will bring.
The US imposes tariffs of 25% on steel; removing them would boost our domestic industries. As my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) knows, that will particularly benefit areas such as Yorkshire and the Humber, which account for more than a third of our iron and steel exports to the United States. Indeed, just this week UK Steel said:
“A new UK/US Free Trade Agreement would provide a significant boost to our trade to this high-value market, create a global-competitive advantage for UK steel producers, and open up valuable new market opportunities.”
Our farmers and food producers stand to gain from a trade deal with the US. The US is the world’s second largest importer of lamb, but current restrictions mean that British producers are kept out. We can also grow, for example, our malting barley exports from Scotland and the east of England.
The tech trade will benefit from a US free trade agreement through cutting-edge provisions on digital and data. Telecoms and tech have more than doubled in the past decade, and an ambitious FTA could see those exports grow further.
While free trade provides opportunities, protectionism would harm farmers, tech entrepreneurs and steel manufacturers. We have already seen this before: in 1930, the Smoot-Hawley Act raised US tariffs on more than 20,000 imported goods, resulting in retaliation from other nations and the deepening and prolonging of the depression. As President Reagan said in 1985:
“Protectionism almost always ends up making the protected industry weaker and less able to compete against foreign imports…Instead of protectionism, we should call it destructionism. It destroys jobs, weakens our industries, harms exports, costs billions of dollars to consumers, and damages our overall economy.”
We have a golden opportunity to make sure that our recovery is export led and high value—a recovery that will see our industrial heartlands create more high-quality and high-paying jobs across all sectors. Free trade does not just benefit us here in Britain; it benefits the world. Since the end of the cold war, free trade has lifted a billion people out of extreme poverty. For want of a better word, free trade is good. It is those benefits that underpin our Government’s approach: free and fair trade fit for the modern world.
Let me turn to the contents of the Bill. We can have fair trade only if it is free trade. The Bill will embed market access for British companies by enabling the UK to join the WTO’s Government procurement agreement as an independent member. This will provide businesses with continued access to the extraordinary opportunities of the global procurement market, worth some £1.3 trillion a year. The GPA is an agreement between 20 parties that mutually opens up Government procurement. We have already seen in the UK the way that competition drives up quality while keeping prices low. The GPA keeps suppliers competitive and provides them with opportunities overseas. It is a driver of growth, not a threat to our economy. The idea that we can, or even should, do everything domestically is not desirable or practical in this increasingly interconnected world. Instead, we should be making sure that we have resilient supply chains through a more diverse range of partners. We will be an international champion for free and fair competition in the coming months and years through our discussions at the WTO, the G20 and bilaterally. We will urge other countries not to heed that false, but enticing, call for protectionism.
Let me be clear to the House: the GPA sets out rules for how public procurement covered by the agreement is carried out. As an independent member, we are free to decide what procurement is covered under the agreement. The UK’s GPA coverage does not and will not apply to the procurement of UK health services. Our NHS is not on the table.
We are also committed to continuing our trade with existing partners that have agreements through the EU, such as South Korea and Chile. To date, we have signed 20 such trade agreements representing 48 countries, and others are still under negotiation. This accounts for £110 billion of UK trade in 2018, which represents 74% of continuity trade. People said that we would not be able to roll over these agreements—well, they were wrong, and we will be signing more in the coming months. This work is part of securing the Government’s aim to have 80% of UK trade covered by free trade agreements in the next three years.
We are also looking to new partners. Negotiations with the US and Japan are kicking off. We are prioritising signing FTAs with Australia and New Zealand and accession to the comprehensive and progressive agreement for trans-Pacific partnership, otherwise known as the CPTPP. With the UK global tariff now published, there will be an increased incentive for other countries to come to the table to maintain or improve upon their preferential terms and conditions. Fundamentally, free trade is humanitarian and we will maintain preferential margins for developing countries, helping businesses lift millions out of poverty. As a Government, we have committed to going further than the EU has in terms of trade for development, and we are looking at reducing or removing tariffs where the UK does not produce goods and getting rid of cliff edges in current tariff schedules.
That brings me to the second part of our approach: fair trade. The Bill will help establish the independent trade remedies authority, which will help protect British businesses against injury caused by unfair trading practices such as dumping or subsidy, or unforeseen import surges. I tell the House that while free trade has no stauncher friend than this Government, unfair trading practices that hold back British businesses will have no worse enemy. We will fight against state-owned enterprises that use public money to subsidise their goods and Governments who support the lobbying of these under-priced products into the UK market.
Excellent UK industries such as ceramics and steel—represented ably by my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon), for Stoke-on-Trent North (Jonathan Gullis), for Stoke-on-Trent South (Jack Brereton), for Redcar (Jacob Young) and for Scunthorpe—should not face unfair trade. The TRA will be responsible for investigating claims of unfair trading practices based on the evidence available. It will then make impartial representations to Ministers.
The TRA’s impartiality is vital. Decisions on trade remedies cases can have a material impact on business and financial markets. This Bill will allow us to create an independent body to carry out objective investigations in which businesses can have full confidence. In developing our own trade policy for the first time in almost 50 years, we will use technology to ensure that our trade agreements are fit for the modern world. Therefore, this Bill will give the Government powers to collect and share the trade data that will help our independent trade policy. This will make it easier for our trade policy to reflect the interests of businesses across the UK.
Let me assure the House that this Bill is a continuity Bill. It cannot be used to implement any trade agreement between the UK and the EU itself, nor can it be used to implement an agreement with a country that did not have a trade agreement with the EU before exit day, such as the United States of America. The Bill can be used only to transition the 40 free trade agreements that the EU had signed with third countries by exit day, and these powers are subject to a five-year sunset clause to ensure that we can maintain the operability of transitioned agreements beyond the end of the transition period. Any extension of this five-year period will require explicit consent of both this House and the other place.
We face a period of unprecedented economic challenge. It is vital that we do not just maintain the current global trading system, but make it better. That means diversifying our trade and supporting those businesses that export. Exports, be they software or steel, cars or ceramics, barley or beef, will underpin our recovery. This Bill will ensure continued access to existing markets by letting us implement trade agreements with partner countries that previously applied under the EU. It will secure continued access for UK businesses to the £1.3 trillion global public procurement market. It establishes the independent body in the Trade Remedies Authority to give our great British businesses the protection they need from unfair trade practices. Trade will be fair as well as free. By adopting a cutting-edge digital first approach, we will be able to give businesses the best possible support.
As we recover from the economic shock of the coronavirus crisis, providing certainty and predictability in our trading arrangements will be vital to securing the interests of businesses and consumers. We will unleash the potential and level up every region and nation of our United Kingdom. Now is the time for this House to speak out against protectionism. It is time for us to embrace the opportunities that free trade and an export-led recovery will bring. I commend this Bill to the House.
I now call the shadow Secretary of State, Emily Thornberry, to move her reasoned amendment, and she has 10 minutes in which to speak.
I will not go over the detailed points in relation to the Bill so eloquently made by my right hon. Friend the Secretary of State—I have to say that I recognised some of the phraseology in her arguments—but I want to deal with the context in which it is being brought forward.
During the long gestation of the Bill, a lot has changed. Not only have we had the covid crisis, which will have a fundamental effect on the global economy, but in 2019 we saw the culmination of many of the predictions that were made by the Department for International Trade. We predicted that we would see first a slowdown in the growth of global trade and then potentially a contraction of global trade itself. We watched through 2019 the WTO make predictions on global trade growth, down from 2.8% to 2.2% and 1.4%. It finally came in at 0.7%. The key element was that it contracted in Q4, which has generally in history presaged a downturn in the global economy.
That happened for a number of reasons. The US-China trade dispute had a general effect on global trade, and in particular we saw the shortening of global supply chains, as people sought to onshore and shorten global supply chains by minimising the import of intermediate goods. We saw the inevitable consequence of the trend over the decade of the G20 countries applying more and more non-tariff barriers to trade—quadrupling them in the first half of this decade—and they all matter. A bit of consumer protection here, a bit of environmental protection there and a bit of producer protection here are all justifiable in themselves, but they all add up. They have all resulted in a silting up of the global trading system, and the skies over the global trading system are now darkening with those chickens coming home to roost.
Why does it matter? It matters because a free and open trading system has been our route to the reduction in global poverty, with more than 1 billion people taken out of abject poverty in just one generation. There is another reason it matters, which is that access to prosperity, political stability and security are part of the same continuum. It is unthinkable that the wealthiest countries in the world should pull up the ladder behind us, stopping developing countries gaining access to the same levels of prosperity. It is absurd to believe that we can do that without seeing disruption in global security. If we deny people access to prosperity, do not be surprised if we see more mass migration and more radicalisation. We need to understand that we cannot separate the concepts. Those who wish to introduce protectionism into the global economy will have to bear the consequences of the actions they are currently embarked upon.
I want to see us, through this Bill and beyond, doing more on global trade liberalisation. Going back to where we were pre-covid will not be enough, because global trade was contracting. I was a proud Brexiteer, but I have never been a little Englander. My objection to the European Union in the era of globalisation was not the absurd notion that it was foreign, but that it was not foreign enough. It did not have global aspirations that were in tune with what we as a country wanted to see. Post covid, all the challenges we face together will be bigger, and we will have to work with all those who believe in free trade to put them right.
The UK exports 30% of our GDP. Germany exports 48% of its GDP, and OECD data shows that the trade slowdown has hit the European Union hardest of all in the global economy, with exports from the EU contracting by 1.8% in the third quarter of 2019, even before global trade itself contracted. That is the scale of the challenge that we face.
The Government’s proposed tariff regime reform is to be hugely welcomed, although it could be even more liberal yet. The new FTAs and the roll-over agreements allowed through the Bill are also to be welcomed. Those who put obstacles, political and otherwise, in the way of both the roll-over agreements and the new FTAs through largely pointless and irrelevant arguments need to understand the consequences to the wider global economy, as well as to our domestic prosperity, of doing so.
My right hon. Friend was right when she talked about the bigger picture and how we must champion World Trade Organisation reform. Without it, we will be unable to maintain the rules-based system, which is already substantially under threat. The alternative to a rules-based system is the survival of the strongest, and that will have the biggest impact on the poorest countries. This is an area where we can give a lead as a country not only economically, but morally.
I call Stewart Hosie, who has seven minutes.
May I start by agreeing with the Secretary of State that it is absolutely vital that we keep trade open and recognise the importance of the supply chain, and that it is absolutely essential that we stand against protectionism? We need to do that, because right now there are three main threats to trade. The first is self-evidently from the covid crisis, which the World Trade Organisation has suggested might cause a fall in global trade of something in the order of 13% to 32%. That is a substantial reduction, no matter where on the scale one looks. The second is the impact of Brexit. Assessments suggest that the UK could lose a substantial chunk of its global trade. The third is the more systemic problem that the right hon. Member for North Somerset (Dr Fox), the ex-Trade Secretary, was speaking about, which is the continued implementation of new and the continuation of existing trade restriction measures, with tariffs valuing somewhere around $1.6 trillion in force.
I am not confident that those problems will be resolved any time soon, not least because there is as yet no cure for coronavirus and restrictions of one sort or another may well remain in force for some considerable time, because of the highly publicised lack of progress on the Brexit negotiations, and also, sadly, because of the absence of a functioning World Trade Organisation appellate body. This Trade Bill does not address any of those matters, other than perhaps at the margins, by trying to roll over and maintain the trade the UK has with third countries via membership of the EU and thereby minimise the losses from Brexit.
The Bill does do a number of other things, as the Secretary of State set out. It creates procurement obligations arising from membership of the GPA—the agreement on Government procurement; it creates the Trade Remedies Authority; and it gives powers to Her Majesty’s Revenue and Customs to collect and share data. However, it is not without its problems. Let me deal with the powers relating to the devolved Administrations first. The previous Trade Bill, which was under consideration in the previous Parliament, contained provision for regulation-making powers to be available to the UK Government within areas of devolved competence. That Bill also contained a provision that prohibited devolved Administrations from using powers to modify retained direct EU legislation or anything that was retained EU law by virtue of section 4 of the European Union (Withdrawal) 2018 Act in ways that would be inconsistent with any modifications made by the UK Government, even in devolved areas. As a result, the Scottish Government could not consent to that, and that view was shared by the Scottish Parliament Finance and Constitution Committee.
That Trade Bill did not complete its passage and fell, and the good news is that those provisions have been removed from this reintroduced Trade Bill. However, there remains no statutory obligation for the UK Government to consult or seek the consent of Scottish Ministers before exercising the powers they have in devolved areas. However, during the partial passage of the previous Trade Bill, the UK Government made a commitment to avoid using the powers in the Bill in devolved areas without consulting and ideally obtaining the consent of Scottish Ministers. The then Minister of State at the Department for International Trade, the right hon. Member for Bournemouth West (Conor Burns), subsequently restated those commitments in his letter to Ivan McKee, the Scottish Trade Minister, on 18 March, and I hope that the Minister we hear from today will restate these non-legislative commitments.
The Bill is not without its problems, and they do not relate simply to the devolved Administrations. It allows the UK Government to modify retained direct principal EU law, and it appears to me that there are no legislative limits on such modifications. The second problem is the description of an “international trade agreement” in clause 2(2)(b), which states that it may be
“an international agreement that mainly relates to trade, other than a free trade agreement.”
As we know, modern agreements are as much about regulation, standards, conformance, dispute resolution or food safety as they are about quotas and tariffs. Many people will uncomfortable that Ministers can modify existing agreements in the way in which this Bill permits, particularly without scrutiny and consent.
That leads me to the fundamental problem with the Bill. The absence of parliamentary scrutiny and a parliamentary vote on significant changes or modifications, or, indeed, in the future, on new trade deals as may be envisaged by the Government, is a huge problem. Modern democracies need to have full scrutiny of trade agreements, from the scope of the negotiating mandate right through to implementation. That is absent from this Bill, as is any provision for scrutiny other than through the voluntary scrutiny proposed by the Government in the Command Paper published in the previous Parliament, to which I will return briefly at the end of my speech.
These issues also highlight the absence of any formal input into trade deals or significant modification of existing ones by the devolved Administrations—a problem replicated in the membership of the Trade Remedies Authority, where no formal ability exists for the devolved Administrations to propose or nominate a member with expertise in regionally or nationally significant trade.
I shall turn briefly to the Command Paper that was published in 2019 and covered the previous Trade Bill. Does it still apply? Does the commitment to publishing our negotiating objectives and scoping assessments still exist? Even if it does, does the Minister recognise that that still does not give Parliament or the devolved Administrations any role in approving them? Is it still the intention of the UK Government to provide sensitive information to a scrutiny Committee? Would that be the Select Committee on International Trade, which is ably chaired by my hon. Friend the Member for Na h-Eileanan an Iar (Angus Brendan MacNeil)? If it is, will any papers provided be publishable, or will they be restricted? If they are restricted, that will still leave Members of Parliament, exporting businesses and other interested third parties none the wiser about the Government’s real intentions. I am conscious of the limited time, Madam Deputy Speaker, so let me end simply by saying—
Order. I ask the hon. Gentleman to bring his remarks to a close. I thank him for his contribution, but we must move on. I am now introducing a time limit of five minutes, and I advise hon. Members who are speaking virtually to have a timing device visible.
The Trade Bill is a bad Bill. It is bad because it fails to establish a proper framework whereby Parliament can scrutinise, ratify and implement all future international trade treaties; because it creates one of the weakest trade remedy authorities in the world, and because it pretends that it is necessary to roll over our existing agreements with third countries through the EU. So necessary is the measure that the Minister will have great difficulty when summing up in explaining how the Government have managed to roll over the majority of them before the Bill has passed into law. This is legislative prestidigitation of the highest order. The Government say that they need the Bill to do what they proudly boast they have already succeeded in doing without it. The truth is that the Bill is about the Government’s abrogating to themselves all future power in relation to trade agreements, freed from the inconvenient scrutiny of Parliament.
The procedure for ratifying international agreements is set out in the Constitutional Reform and Governance Act 2010—CRAGA. It stipulates that any treaty need only be laid before Parliament for 21 sitting days. If there is no vote against it during that period, it passes into law. But the Government decide Parliament’s business and can simply arrange that no vote takes place. When CRAGA was introduced, a huge number of democratic scrutiny processes were in place through the European Union. There was the European Council’s negotiation mandate and formal consultation procedures. The Committee on International Trade—the INTA Committee —scrutinised treaties before passing them to the European Parliament to vote on. Treaties then came to the European Scrutiny Committee in the Commons for further examination before the CRAGA process ratified them. Under the Bill, all that is left is the rubber stamp of CRAGA. All other layers are gone. The Bill should try to replace those layers. It cannot be right that there is no democratic oversight whatsoever of trade agreements.
Members of Parliament may disagree about whether an agreement will benefit jobs or adequately protect standards, but they should have at least the right to debate those matters and hold the Government to account. The Bill denies us that right. This is not Parliament taking back control, but Government snatching it from Parliament. That is why I believe the Bill is dangerous.
Let me remind Conservative Members of what they claimed to be fighting for at the last general election. They said that sovereignty meant not accepting the rulings of supranational courts such as the European Court of Justice. Do they therefore agree with us that the use of investor-state dispute settlement mechanisms in future trade agreements should be ruled out in any form? They give higher rights to foreign investors than to our own domestic companies, allowing them to sue our Government in private courts for policy decisions that have an impact on their potential profits. So much for gaining freedom from a supranational court.
Conservative Members said that Britain had to be free to chart its own future in the world. Do they therefore agree that negative lists of services should be banned? It is impossible to specify in a list a service that has not yet been invented. The negative list process would stop the UK Government making a decision about how such services should be provided in future. So much for making our own way in the world.
Conservative Members said that they would safeguard our domestic environmental protections, food safety regulations and animal welfare laws, but simply keeping our regulations for our farmers here does not protect them in a free trade agreement. Allowing the importation of goods produced elsewhere to lower standards will undermine our producers and lead to a race to the bottom—so much for safeguarding our food and welfare standards.
The Government said they would not sell off the NHS, and of course they cannot. The NHS is not an entity that can be sold, but free trade agreements can contain an innocuous-sounding provision about the restructuring of pharmaceutical pricing models. That is the way to undermine the health service—by downgrading our bulk purchasing power against big pharma companies. So much for the NHS being “safe” in their hands.
Finally, does it follow that if this Bill is enacted, by necessity we will end up with all these measures? No, it does not. It does mean, however, that if they exist in any proposed FDA, Parliament will have no means of stopping that. This debate is about more than trade; it is about the balance of power between Parliament and the Executive. It is about the sovereignty of Parliament—something that every Tory who will vote for this obnoxious Bill swore in their manifesto to defend.
I am afraid we cannot hear Richard Graham at the moment, so I will now call Robert Courts.
It is an honour to speak in this debate and to participate in the detail of the Bill with my colleagues from the International Trade Committee. I am pleased that so many of them are taking part in this debate. Free and open trade has created the world in which we live—a world that is open, prosperous, and inventive. One of the greatest prizes to be seized by any Government is the ability to carry out an independent trade policy, which is what we are doing today.
Why does trade matter in the first place? It is pretty straightforward. Exporters and their supply chains are responsible for millions of jobs in the UK. Countries whose economies are open have higher productivity, because of competitive pressures and greater specialisation. Analysis by the Department for International Trade suggests that businesses that export goods are around 21% more productive than their non-exporting counterparts. Those exporters provide a larger proportion of UK manufacturing and labour productivity growth.
However, we can do so much better that we currently do. That same survey data suggests that 250,000 to 350,000 UK businesses have tradeable goods and services, but do not currently trade internationally. When we couple that with the undoubted, unquestionable benefit of the UK brand, which has fans from North America to China and everywhere in between, this is an opportunity for each and every one of us throughout the country. When we consider the potential benefits of a US trade deal alone, and the possibility of bilateral trade increasing by more than £15 billion, increasing wages by £1.8 billion and benefiting every area of the country, we see the extraordinary prize that lies before us. All that is before we even start to consider the exponential growth that is likely to come from the developing world in the next 10 to 20 years.
It is foolish to see trade as some game of numbers that is reduced to statistics. People have traded together since one cave dweller traded food for tools in the dim and distant past, and what trade starts, friendships continue. Whether it was Bastiat, or someone else, who said that when goods do not trek across borders, soldiers will, the essence of that remains true, as is its flipside. Trade helps people to understand each other and get to know something of the way that other societies work. That must be delivered through an independent trade policy—one that applies our priorities to our country, and does not let somebody else’s priorities be applied for us.
Those who say that the Bill does not make provision for high standards must know that this is not the place for that; this Bill sets the framework for the conversations that are to come. In any event, the Government have been crystal clear about our ambitions for the future. As the Prime Minister said in his speech on 3 February,
“we will not accept any diminution in food hygiene or animal welfare standards… We are not leaving the EU to undermine European standards. We will not engage in any kind of dumping, whether commercial, social or environmental.”
However, having high standards is not the same thing as letting others set them for us, or seeking to control the way that others regulate their industries. If, in any event, we want to set trade defences, barriers or tariffs, we will need the Trade Remedies Authority that is set out in the Bill.
It is difficult to avoid the conclusion that those who object to the Bill as it stands are those who object to free trade in general and wish to cling to the old-fashioned protectionist agenda that was defeated in this country more than 100 years ago. Protectionism will always have an appeal for those who wish to protect vested interests, but we should be clear: history makes it clear that protectionism leaves everybody the poorer, and the poorest worse of all. That is all the clearer when we look at the impact of the current crisis. Exporters and their supply chains are responsible for millions of jobs in the UK. With unemployment rising during the crisis, job creation with exporters afterwards will be more important than ever, and we must have the flexibility to make our own measures for our own markets. Only by having that flexibility can we ensure that Britain’s economy is successfully refreshed.
As we look to ensure that we have what we need to protect us for the future—PPE, medicines and other things —it is natural to wish to turn inwards, to protect we have and to keep more for ourselves, and to ensure that we in our island can look after ourselves. In some ways, that is an understandable impulse, but not in the area of trade. Not only is it morally wrong to retreat behind a protectionist barrier wall by which the developing world is excluded—we would pay the consequences for that behaviour in any event—but it is against our own interests. We cannot make everything ourselves and we cannot make everything well. We should concentrate on what we are good at—high-tech industries, for example—and look elsewhere at where others can better help us and we can help them, too.
It is keeping open global trade routes that has enabled us to be fed, to buy PPE and to secure essential medication from all across the globe. Free trade is not just an economic opportunity, but the openness of the system itself provides a vital defence. We must seek to diversify our supply chains, because in that way we can improve our resilience to withstand future challenges and ensure that we reduce our reliance on countries—
Order. I thank the hon. Gentleman for his speech, but we have to move on now to Paul Girvan—[Interruption.] We will come back to Paul Girvan, and will move on to Marco Longhi.
The Trade Bill we are discussing today is a framework that allows us to continue to trade as a nation state with those countries who already have a trade agreement with the EU. It enables UK service providers to seek out business in Government procurement markets worth £1.3 trillion, and reshores from the EU those protections available under WTO rules to support British business against unfair trading activities under the new trade remedies authority.
Why is that important? It means that we will harpoon yet again the ill cited arguments that we will crash out and fall off a cliff edge through Brexit. It means that we can seek out new business, and it means that we can finally take effective action ourselves against rogue nations who do not respect international trading conventions. Let us remind ourselves of the EU’s impotence when China dumped its excess steel on our markets, and the jobs it cost us here in the UK.
It is an undisputed fact that open markets and free trade generate wealth and our new-found and hard-won ability to seek out new markets will grow our economy. Covid-19 has brought about a global tendency towards protectionism, which we know has the opposite effect. We must not be drawn into this trap at any cost, as we shall be poorer for it. However, what covid-19 has shown is that for all their rhetoric, the EU’s institutions fail to respond effectively, if at all, and its constituent members immediately behaved as a collection of nation states. They offered a shallow apology to the Italian people for leaving them to their own devices while protecting their own. I must ask, was that not entirely predictable? That begs the question of how, as a nation at this historic junction, we consider the strategic implications of a future crisis. Should we be more self-reliant in key areas such as energy, food and medicines? Many large corporates are now reshoring as they understand the total cost of outsourced activities, including problems with quality control, the cost of unreliable supply chains and the carbon footprint of products, just to name a few. That is why I was delighted to hear about our investment to produce 70 million masks in the UK and create around 450 jobs at the same time. It is about taking a risk-based approach and understanding the total cost-benefit arguments of decisions that we take in the key areas that affect our national resilience.
Globalisation is here to stay. As we harness the great opportunities presented to us by Brexit and FTAs, our biggest challenge is how we do so. The area that I represent in Dudley and the many areas that my new colleagues represent have not always benefited. Globalisation has seen benefits, but also a race to the bottom with a low-wage economy in traditional manufacturing and the loss of jobs in the sector. Buying a pair of boots for a few pounds less is not a huge benefit if there is not a job to go to.
Analysis shows that there are between 250,000 and 350,000 businesses that currently do not export but could. My plea is that we target those businesses, with a special focus on those in the midlands, with determination, enthusiasm and strategic focus, and at real pace, so that we can add value and bring new jobs to these areas while we also minimise the devastating impact of covid-19 on local economies and people’s lives.
It is a privilege to follow the hon. Member for Dudley North (Marco Longhi) and to have an opportunity to talk about the Bill, which is a road map to the UK and Northern Ireland’s future trading relationship with the rest of the world. It is important that we uphold and protect the good standards that we have set.
The Bill is focused on five main areas: procurement and the GPA; trade agreements; the formation of a trade remedies authority; information collecting, mainly in respect of HMRC; and data sharing. I want to focus mainly on what will affect Northern Ireland, which has a large proportion of exports, with 17% of all Northern Ireland sales going out of the country—sales worth £6.2 billion in 2018-19.
Two of our main sectors are machinery and transport: machinery makes up £3.2 billion of our total, and food, agriculture and the export of live animals make up £1.5 billion. I agree with the comments by the hon. Member for Montgomeryshire (Craig Williams) about agri-food, which we have to protect. We must ensure that we maintain the standards that have been fought for and achieved, and that we implement them as much as we can in any future agreements. We have a fantastic farming and agri-food industry in Northern Ireland. We have fought hard to ensure that our industry is sustainable, and we want to ensure that it is there for the future.
The pharmaceutical industry plays a big role in Northern Ireland. In my constituency we have Randox, and elsewhere in Northern Ireland we have Almac and Norbrook Laboratories. All are working hard during this covid-19 crisis. They have an offer to the rest of the world that we have to maintain.
We have a great wealth of talent in our tech industry. It was recently announced that 65 jobs are to be created in Northern Ireland at the American firm Cygilant. We have to ensure that we have opportunities to uphold. I am a free marketeer, but I do believe that we have to protect those industries that are currently struggling and make sure that they have every opportunity to be included in trade deals.
The previous Bill fell in 2019 as a result of the Westminster election. As we did not have a Northern Ireland Assembly in place at that stage, we had no input from the Northern Ireland Executive in relation to what should or should not be included in that Bill. We have an opportunity to ensure that all areas of the United Kingdom are represented on the new body, the TRA, that will be set up. All regions of the United Kingdom and the devolved areas should be represented on it. I am asking for an assurance that when deals are put forward, they apply in full to Northern Ireland, are fully accessible to businesses and trade from Northern Ireland and will be for the benefit of all. This Bill is an opportunity for us to take back trade certainty and to take back control within our own Parliament and we will support it. I thank you, Madam Deputy Speaker, for giving me the opportunity to speak in this debate this afternoon.
I hope you can hear me better this time, Madam Deputy Speaker. I am grateful for the opportunity to join this debate.
As our debate across the country widens gradually from how to protect our citizens’ health to how to protect their jobs, this Trade Bill is important. Some 30% of our GDP comes directly from our exports, and they in turn generate many of the jobs of all of our constituents. This is especially true in high-value manufacturing and engineering, cyber and services, in all of which there are some great examples clustered around my constituency of Gloucester.
This Bill, which provides the infrastructure for our own trading agreements with the Government procurement and the Trade Remedies Agency, is part of our plan to put our exporters in a position not just to recover but to grow again. Alongside the talks with the EU being handled through the Cabinet Office, and those by the Department of International Trade with the US, Australasia and the Trans-Pacific Partnership, this Bill highlights some of the Government’s strategy to take this forward.
I support all the goals mentioned in the Bill, but at the same time we should be honest about the risks. Global trade is currently in decline. Nationalism and protectionism are on the rise. The backdrop is not as benign as it was for an overall expansion of our trade, growth of exports and expansion of jobs in exporting businesses. We clearly do need to finish the agreements with our allies, such as Singapore, Canada and Japan, with which agreements did already exist. Trying to negotiate separate agreements with separate teams simultaneously with both the US and the EU is high-wire trade diplomacy. I wish our ministerial teams and all the negotiators all good fortune in taking these forward successfully. I believe that many of these things will go down to the wire, and our teams should play tough. They should stick with the game, and we need their success.
It is also worth highlighting the opportunities from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which is an important accession opportunity rather than an FTA. Even though there is some overlap, we should not forget the importance of the 10 members of the Association of Southeast Asian Nations. TPP is not a complete substitute for continuing to grow our business with ASEAN in terms both of exports and bilateral investment. The way in which investment from the Philippines, to pick one small example, has turned around the fortunes of the Glaswegian Scottish whisky blender Whyte and Mackay is a strong case in point when it comes to the advantages of inward investment.
May I encourage the Secretary of State, the Minister who in his place and their teams to focus strongly, as we go forward, on the Continent of Asia both for greater market access through economic dialogues, as well as on FTAs and the TPP, recognising that most of its agricultural commodities and handicrafts are completely complementary to rather than competitive with our own output. Our services, for example those providing health insurance for millions across south-east Asia, are hugely beneficial for those countries as well as for our businesses. Ultimately, that is why this Bill is so important: it is an opportunity not only for us but for our trading partners, and we are right to strongly make the case as to why free trade does matter across the world.
I shall now suspend the House until 4.24 pm.
(4 years, 5 months ago)
Commons ChamberI am going to mention a lot of women, and most people in this room will not have a clue who they are, but they are important women in my life, my constituency and my community, and I make no apology for mentioning them.
I will start by challenging my right hon. Friend the Member for Romsey and Southampton North (Caroline Nokes). I know that Florence Nightingale is buried in Romsey, but she spent most of her time—apart from when she was nursing in the Crimea—living in Derbyshire. This year, we are celebrating 200 years since her birth. I think she would congratulate the current Government on their policy on washing hands, because she was really keen on cleanliness in the Crimea and the other places she served in. She would recognise that that is probably the best thing we can do against the coronavirus. First and foremost, I want to celebrate Florence Nightingale. We have a statue of her in Derby, and there is a lot of controversy about whether it will be moved.
Another important person in Derby and Derbyshire is Alice Wheeldon, a suffragette who was imprisoned wrongly in 1917 because it was claimed that she plotted to kill the then Prime Minister, and there is a big campaign to get that overturned. Recently we celebrated Nancy Astor—who has no connections with Derbyshire, as far as I know—making her maiden speech 100 years ago, which was very important in the progression of this country. It is important that the women in this place today celebrate those women, of whatever party, who were first in their field, because they are trailblazers for the rest of us.
Yesterday I was lucky to go to WE Day, which is one day a year run by a charity, following a whole year of social action for children. We heard inspirational speakers at Wembley arena, and two in particular resonated with many of the young people there. One was a trainee doctor—a girl who is almost deaf and almost blind. Everybody said that she could not get on to a course to become a doctor. Well, she has, and she continues to train as a doctor. She will have tremendous empathy with disabled patients and a lot of sympathy for the people she will be treating. It is brilliant that she has got on that course.
The other speaker was a Syrian refugee, who was told that because of her accent and because she was a refugee, she could not achieve virtually anything. She is training to be a pilot and working with Airbus at the moment. Those two young women were inspirational to the audience of 12,000 young people between the age of nine or 10 and 17.
Derbyshire is touched by some amazing women, not least Severn Trent chief executive Liv Garfield. The Severn Trent water authority goes through the whole of Derbyshire. Severn Trent is now on the London stock exchange. It is one of the FTSE 100, and is led by this amazing woman who goes at 1 million miles an hour. It does not matter what you ask her about her company, she can answer it. She is a pioneer, and there are many other women in the FTSE 100, but not enough. We need more women to get up to the top.
In Derby we have a lot of this country’s rail industry, which is predominantly a male bastion. There is a company in Derby called Resonate, led by Anna Ince, who is a pioneer running an organisation that combines technology and transport to optimise traffic management solutions. That sounds terribly boring, but she can transform the way that our rail works and provide other logistical travel solutions. She has taken that company from being a fairly average company to a really impressive one.
Porterbrook, which specialises in the leasing of trains, is run by a woman called Mary Grant. She is fantastic, because she has come along after a series of men, and she is changing that industry. There is Elaine Clark, who is the CEO of the Rail Forum Midlands. She is doing incredibly well in leading a series of 200 companies in the rail industry, which is male-dominated. Helen Simpson and Chandra Morbey are directors of innovation at Porterbrook, and they are the brains behind the HydroFLEX, which is the UK’s first hydrogen-powered train. Again, those are women in a very male-dominated industry.
Another male-dominated industry is printing, and yet we have Amanda Strong of Mercia Image, who has moved that printing company forward so far and is an incredibly successful chief executive. She does a lot of charity work alongside that—she is not just using it to make a lot of money; she is using some of the money for charity.
In Derby, we have a university that was very poor but is coming on in leaps and bounds. It had men running it for a long time, but it now has a very dynamic woman, Kath Mitchell, who is taking it much higher, much faster than we have ever moved before. We also have Derby College, which goes from GCSEs to hair and beauty and land-based courses, including looking after wallabies and meerkats, tarantulas and other spiders, and snakes and all sorts of things in order to train veterinary nurses in how to handle unusual animals. Mandie Stravino—again, a woman after many men—has moved that college forward so far. I have to congratulate those two women in education, who are brilliant.
In Derby, we also have the first female bishop. She did not start in Derby as the first female bishop, but she has moved to run the Derby bishopric. She is amazing, and again, she is changing the dynamics. She has a lot of women supporting her, including the suffragan bishop, the Bishop of Repton, Jan McFarlane—again, a woman.
We are finding that many women in Derbyshire are coming to the top of their profession and leading from the front, including as high sheriffs. At the moment, we have Lord Burlington, who is a very good high sheriff, but before him we had Lucy Palmer, the late Annie Hall— sadly, she drowned in the floods last year—and Liz Fothergill, who has gone on to develop the Derby book festival, which had not happened before. These people are inspirational leaders within the Derbyshire community.
Another amazing woman is Dionne Reid, who runs Women’s Work, which is trying to help prostitutes get another life so that they do not have to be prostitutes any more. At the end of the day, prostitutes are victims, and we need to give them another opportunity in life so that they can get out of that job and get a different kind of job that will be more fulfilling.
I have something of a beef with Derby because the gender pay gap there is very wide. It is much worse in Derby than in the rest of the country. I think it is about 31%, which is terrible. I would say to Derby businesses, “Listen, we’ve got some brilliant businesses and some amazing leaders, but we’ve got to do better. Get on your bikes and do better for the women in Derby!” For the women coming through to the top, we have to make sure that they have equality.
I have talked before in the Chamber about some very inspirational women who have undertaken fantastic schemes, such as Jacci Woodcock who is running the “Dying to Work” campaign, having been diagnosed with secondary breast cancer. She is unwell now, but she is still working hard to try to get as many companies as possible to sign the voluntary charter for women who have been given a terminal diagnosis and want to carry on working—not everybody does but some do, and some have to in order to pay the bills—so that they are not defined by their illness, but are seen as people, because such people are very often defined by the particular illness they have.
There is Siobhan Fennell, who is running Accessible Belper. She is in a wheelchair, and she can only drive it with her head now, but she is an inspirational person. She goes out and does training for businesses, councillors and all sorts of people to get them to recognise that accessibility is not just about wheelchair accessibility, but about how those in a shop should deal with someone with autism or dementia. There is also Fliss Goldsmith, who is another volunteer. She has two very active young children, and she has several illnesses of her own and has had multiple operations. However, she is still highly active in the arts scene, which is very important in Belper, where many other people are working to make it a much more dynamic town.
I am very lucky in that I have five grandchildren, and two of them are girls. The choices that they will have or that they have—Poppy is 16 this year, and she is doing her GCSEs—are much greater than when Nancy Astor made her first speech in this place. I hope that the girls in my family and in everybody’s family have such opportunities, as well as the boys. As the Minister said earlier, it is important that boys can also do things that are not just traditional boys’ jobs; we need to make sure that anybody can do any job whatsoever. I believe that, even in the last 25 years, the opportunities for girls have changed dramatically and they will continue to change.
Poppy has got fantastic opportunities, but the trouble with being at school is that children do not know about all the opportunities that are out there and the jobs that are out there that we see in our everyday lives—with charities, in business or whatever they are. We see an amazing number of different jobs that are never suggested at school, but Poppy has fantastic opportunities for where she is going to go when she has finished school. Whether she goes to university, does an apprenticeship or whatever she chooses to do, the world is her oyster.
For Betty, who is only five, her opportunities, even after Poppy has started work, will be completely different again. There will be many more opportunities that we probably do not even know about at this stage. I look forward to what they can achieve in their lifetimes, and to the opportunities that all girls now in school can look out for, take up, grasp and run with to become leaders in their field. I believe that young people now have such fantastic opportunities, and it is up to us to make sure that as many people as possible know what those opportunities are for young girls. However, let us not forget the boys, because they are very important. They are very important in my life—I have three grandsons—and I want them to have fantastic opportunities as well. Those opportunities are out there, and I think young people should go out and grasp them.
It is a great pleasure to call Apsana Begum to make her maiden speech.
(4 years, 5 months ago)
Commons ChamberOrder. I intend to run this statement until about quarter past 6. I urge short questions and short replies. Anybody who was not here at the beginning should not be standing. I will prioritise people who did not get called during the previous urgent questions.
Is the Secretary of State able to promise that the Government will not remove current restrictions or tariffs on food imports unless those imports are produced to standards of animal welfare as tough as the ones that we expect our own farmers to meet?
(4 years, 6 months ago)
Commons ChamberWe cannot forget that this Government have continued to support the Kingdom of Saudi Arabia with arms sales, despite the humanitarian crisis in Yemen and despite the Court of Appeal ruling that such exports must cease. The Secretary of State had to come before this House to apologise for breaching the Government’s undertakings to the Court of Appeal and to the House of Commons. Perhaps she might be able to tell us the outcome of the Department’s inquiry into how many breaches of those undertakings there were and how they came about. I will happily give way to her if she can. If she cannot, can the Minister of State, Department for International Trade, the right hon. Member for Bournemouth West (Conor Burns), when he sums up, at least inform the House of when we might expect the outcome of that report?
I am reminded that we are also waiting for further information on the Department’s investigation into bribery and corrupt practices involving British companies overseas, especially those supported by taxpayers’ funds through UK Export Finance. Can we have an update on that investigation, too?
Earlier this week, it was revealed that Airbus has entered a deferred prosecution agreement in relation to allegations of corrupt practices overseas. This is not the global Britain that we should be projecting: a nation willing to sell arms and equipment to countries with a track record of violating international humanitarian law, where they may be used against innocent civilians, deployed in efforts to oppress citizens or exported through corrupt practices.
It is not just in the arena of international trade that the global order is under threat. NATO, too, is coming under increased strain. There are wrangles on costs and burden sharing, and member states are purchasing weapons systems outside the alliance.
Later this year, the UK will host the crucial United Nations framework convention on climate change—COP26—in Glasgow. This is a truly global responsibility but, sadly, it will also be the moment when America finally pulls out of the Paris agreement, in accordance with the notification it gave two years ago. It will also coincide with the result of the US presidential election. Many countries that have been earnestly engaging in the Paris process, seeking to reduce their own emissions, may come to question their engagement if America continues to be absent from the process.
The pattern of global power is shifting dramatically and swiftly. It is turbocharged by big data, the fourth industrial revolution, artificial intelligence, robotics and the internet of things. Above all, geopolitics will be affected by the energy transformation as the world moves towards a net-zero carbon economy.
From coal and whale oil to crude and shale, the geopolitical map has been moulded by the need to control energy supplies. Distribution pinch points such as the Suez canal and the strait of Hormuz have been flash points for conflict, and the projection of global power has relied on the ability to maintain security of energy supply. The inevitability of this shift is not simply due to the rapidly declining cost of renewables, or even the health and climate problems associated with fossil fuels.
Renewables, in many forms, are widely dispersed in most countries, promoting domestic self-sufficiency. They are not stocks that are used and then depleted; they are flows that are constantly recharged and so require less transportation and have no choke points. They lend themselves to decentralisation of production and consumption, and they can more easily be deployed at a local community scale. They also have marginal costs that approach to zero. So just as the geographic concentration of coal, oil and gas moulded our political landscape since the industrial revolution, the dispersed nature of renewable energy will erode those traditional patterns in a new global world. It is not clear that the Government have thought through the geopolitical implications of this energy transformation: which countries are likely to forge ahead and leapfrog the old technology; and which will fail to transform their subsoil assets of oil and gas into surface assets of human social and political capital quickly enough. It is often said that the stone age did not end because of a lack of stone, and nor will the fossil fuel age end because of a lack of oil, gas or coal. It will end with a lot of stranded assets that could pose severe financial risks that a global Britain must guard against.
The Government have sought to congratulate themselves repeatedly on our domestic progress towards net zero, but this has been achieved through the systematic exporting of our carbon emissions and an explicit policy of supporting activities overseas that we no longer support at home. I therefore welcome what the Prime Minister said:
“there’s no point in the UK reducing the amount of coal we burn if we then trundle over to Africa and line our pockets by encouraging African states to use more of it.”
He is right, and that is why we stopped UK Export Finance funding for coal back in 2002 and why we stopped official development assistance finance for coal back in 2012. What I want to hear from the Minister is an update, the logical corollary of what the Prime Minister said, which is that there is no point in the UK reducing the amount of fossil fuels we burn if we then trundle over to Brazil or Africa or India or anywhere and line our pockets by encouraging those countries to use more oil and gas.
UKEF has helped to finance oil and gas projects that, when complete, will emit 69 million tonnes of carbon a year. That is nearly a sixth of the total annual carbon emissions of the UK itself. Global Britain cannot be Janus-faced, with domestic virtue masking the international promotion of the very policies we say we want to prevent, freeing ourselves to embrace a net-zero future while locking other developing countries into fossil fuel dependency.
It is a pleasure to call Stuart Anderson to make his maiden speech.
It is a pleasure to call Stephen Flynn to make his maiden speech.
It is a pleasure to call Shaun Bailey to make his maiden speech.
Order. It is a pleasure to call Bell Ribeiro-Addy to make her maiden speech.
(6 years, 1 month ago)
Commons ChamberThat is a point of debate. I want the debate to move on because a lot of Members wish to speak.
The Government have not published any serious analysis as to the potential outcomes of the EU-Japan EPA on the car industry beyond the basic econometric analysis in their impact assessment. It cannot be right to allow the Government to proceed with fast-tracking approval of this trade deal when we have not had answers to the critical questions posed by the hon. Member for Stone and his Committee, based on a proper analysis of what the likely impacts might be.
Order. A large number of colleagues want to speak. I will have to put an immediate six-minute limit on Back-Bench speeches.