(7 years, 6 months ago)
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Because of the time, I will not.
The Conservative Free Enterprise Group think-tank identified those countries as the priority target for trade agreements. It also recognised that the 10 largest Commonwealth export markets for the UK account for no more than 8% of our total exports but almost three quarters of our exports to the Commonwealth. Clearly, any shift away from the EU would require a substantial uplift in our export growth to make up for the potential loss from the European Union.
It has properly been said that trade between Commonwealth countries is enhanced and facilitated by the context of shared languages, cultural familiarity and particularly common legal and regulatory frameworks. The various communities in the UK from Commonwealth countries, including those in my borough, Brent, are our very best trade advantage. It is estimated that the so-called Commonwealth effect reduces overhead costs for businesses trading between markets by up to 15%.
However, there has been a move to greater regional co-operation through formalised partnerships and institutions very like the European Union, and the increased regulatory harmonisation that goes with that, which has unlocked similar benefits for those Commonwealth countries. It can be no coincidence that the countries mentioned by the hon. Member for Rossendale and Darwen are all members of the Trans-Pacific Partnership agreement. That drive to regional partnerships is significant. We must consider that, although the United Kingdom has determined that it will withdraw from the EU, many Commonwealth countries seek precisely to strengthen their own participation in such regional agreements, and not to recreate the Commonwealth’s old links with the UK. Two Commonwealth countries—Malta and Cyprus—remain members of the EU and will find themselves similarly restricted from pursuing the trade agreements that the UK now seeks.
I will try to move to a close in the next couple of minutes, Mr Owen, as I was asked to. That means leaving out a great deal, but let me pick up one essential thing. By withdrawing from the European Union, we will leave the EU’s generalised system of preferences, which allows developing countries favourable market access through generous tariff reductions, which essentially remove tariffs on approximately two thirds of imports from those countries.
I want to ask the Minister about the GSP-plus enhanced preference scheme for countries that have ratified and implemented core international conventions relating to human and labour rights, the environment and good governance, and the “Everything but Arms” arrangement for least developed countries, which grants duty-free and quota-free access to all products from those countries except arms and ammunition. Will he give us a strong reassurance that, when the UK leaves the EU, those very poorest countries, many of which are Commonwealth countries, will not see their exports to the UK effectively fall off a cliff edge? Will he assure us that the Government will continue the generalised system of preferences arrangements after the UK leaves the EU?
I call the Minister to respond to the debate and perhaps allow Mr Berry a minute at the end to wind up.
That point is often made; it is often said that Germany is getting rid of its low-carbon nuclear and is embracing coal as the fuel for the future. The hon. Gentleman is diligent on these matters, and I am therefore sure that he has examined the Pöyry report commissioned by his Government—by DECC—which was published in April 2013 and which made it clear that this is not a sustainable pathway for Germany. It concludes:
“It is our opinion that there will be no major new unabated coal or lignite projects in Germany for the foreseeable future beyond those currently under construction. Our view appears to be endorsed by the German companies: three majors have very publicly announced that they have no intention of building additional coal-fired power stations in Germany until at least the end of the decade.
The Netherlands has many parallels to Germany in that legacy circumstances are responsible for a wave of new coal-fired power stations, but that these conditions are highly unlikely to repeated.”
It then goes on to talk about Spain.
The hon. Gentleman knows that the decision on nuclear in Germany was taken at a time when highly political conditions were in play. Those conditions are not going to be replicated in the future, and, importantly, the business sectors in these countries have seen that this is not a credible future pathway.
I will be brief, but my hon. Friend’s comments on the German issue have provoked me to intervene. He is right that there may be no new-build coal power stations in Germany, but German business is concerned that it will be importing nuclear from France or coal from Poland, and that carbon issues will therefore be imported.