Oral Answers to Questions

Debate between Andrew Lewer and Liam Fox

Thursday 11th July 2019 Commons Chamber

[Robert Courts (Witney) (Con)]

2. What steps he is taking to promote free trade and WTO reform.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

This weekend, it will be three years since my Department was formed, and in that time the UK has worked with partners to ensure that the World Trade Organisation is equipped with the tools needed to tackle present challenges and address 21st-century trade issues at a time of significant global headwinds. I emphasised the urgent need for WTO reform in discussions with my counterparts at the G20 trade and digital economy ministerial meeting in Japan a few weeks ago.

[Andrew Lewer]

Can the Secretary of State please explain why some nations, such as Canada, are refusing to roll over their existing EU free trade agreements, while many others, such as Switzerland, have happily done so?

[Dr Fox]

Continuity of existing trade terms is in everybody’s interests. I have to say that when the House of Commons gives mixed signals about the possibility of a no-deal exit, quite understandably some of our trading partners wonder whether it is worth investing in getting those continuity agreements. What I would say to those trading partners is that a no-deal exit is not entirely within the control of the United Kingdom; we might end up with a no-deal exit from the European Union. It is in everybody’s interests to have those safety nets in place.

--- Later in debate ---

[Andrew Lewer (Northampton South) (Con)]

T5. The Secretary of State rightly said that we will need an agreement with the EU to allow a GATT 24 basic deal to apply, but does he not accept that GATT 24 and a temporary FTA would save the EU £13 billion in tariffs and the UK just £5 billion, so the EU has every incentive to back it?

[Dr Fox]

My hon. Friend makes an important point, but an article 24 agreement would cover tariffs and quantitative restrictions; it would not cover services, standards and regulations. An agreement covering those latter elements would have to be negotiated separately and would probably take longer to strike. In the meantime, the UK would be subject to the full array of existing third-country checks and controls carried out as standard by the EU. In other words, even if we both did agree an article 24 continuation, it would not cover access to the single market—it would not be trading as usual.