Japan Free Trade Agreement

Alyn Smith Excerpts

Monday 14th September 2020 Commons Chamber

[Elizabeth Truss]

My hon. Friend is right: a number of products in Cornwall—whether the Cornish pasty, west country farmhouse cheddar or clotted cream—will benefit from this deal through not only lower tariffs but increased recognition of their geographic indicators. I will be in Cornwall later this week, and I hope to talk to producers about how we can increase their exports and take advantage of these new opportunities.

[Alyn Smith (Stirling) (SNP)]

I find it absurd that the House is being asked to debate a text that has not been published, because with trade deals, the devil is in the detail. I want to pick up on the point about state aid provisions, because I am curious about this. In today’s Financial Times, it is reported that the UK and Japan

“have agreed to replicate the restrictions on subsidies in the EU-Japan deal that went into effect last year.”

I was involved in that in Brussels, in a previous incarnation, and it goes far beyond what the UK is looking for in the UK-EU trade deal. I listened carefully to the Secretary of State’s response, and she said that it is a “standard” state aid clause, which strikes me as bizarre language, because there are no standard state aid clauses in any trade deals ever anywhere. Has she made the commitment reported in the Financial Times? Will she stand by it, will she resile from it in six months’ time in a limited way or has she dropped the ball?

[Elizabeth Truss]

I find it extraordinary, when I am appearing in front of the House to update it, for the hon. Gentleman to complain that I have not given the next update. I am here because, every stage that we agree with the Japanese, I want to share it with the House and have that debate. Of course there will be another debate when we have produced the final text, which he will be able to participate in. Many FTAs have subsidy clauses, but no FTA, apart from the one that the EU is demanding with the UK, has one bloc imposing its subsidy regime on another country.