(4 years, 5 months ago)
Commons ChamberI spoke to my Canadian counterpart Mary Ng last week, and we talked about progressing our bilateral trade and working together to promote free trade across the world.
Bilateral trade between the UK and Canada is worth £20 billion a year. It grew exponentially following the implementation of the Comprehensive Economic and Trade Agreement. In comparison, our bilateral trade with New Zealand is worth £3 billion a year. We have opened formal negotiations with New Zealand on a new trade agreement. Can we not go further with Canada and seek something much more comprehensive than simply a roll-over of CETA?
I know that my hon. Friend is committed to Canada, having served as trade envoy and done a fantastic job. As part of our ambitious free trade agreement programme, we announced yesterday our intention to accede to the CPTPP, which is an advanced trade agreement covering chapters such as data and digital and goes far beyond what the EU has been willing to agree. Canada is one of the key players in the CPTPP, alongside countries such as Australia and New Zealand.
(4 years, 5 months ago)
Commons ChamberThe NHS is not on the table. The price the NHS pays for drugs is not on the table.
I welcome the accession to the CPTPP, which could be good news for UK dairy farmers. Canada, which is a member, has a lot of unused quota and there are not many other dairy producers in the partnership, so there is a huge opportunity for UK dairy there. More important, though, is transitioning the EU-Canada comprehensive economic and trade agreement, because this will be a medium to long-term ambition. Where are we on the transition arrangement for CETA?
I had a good conversation with my Canadian counterpart, Mary Ng, last week to talk about, first, our mutual commitment to free trade, but also how we are going to improve our trading relationship with Canada.
(5 years, 1 month ago)
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Anybody with a ha’p’orth of understanding of the Canadian skill at negotiating trade deals should have foreseen in March, when we issued our day-one tariff schedules, that Canada would not sign a rollover for the comprehensive economic and trade agreement. As we move forward with these new schedules, will the Minister assure me that nothing in them will undermine the deal that the Canadian Government and the Canadian opposition both say they want to achieve? If we are unable to achieve that deal, will he assure me that the Department is beginning work on at least rolling over the provisions on labour mobility, which are so important when it comes to independent professionals and inter-company transfers?
My hon. Friend yields to no one in his understanding of and expertise in Canada. I understand that not least because he never tires of telling us. I pay tribute to him for his work as the Prime Minister’s trade envoy. I am probably not allowed to say this at the Dispatch Box, but I hope that he will take up that position again in due course, because no one in this House is better qualified to do it. I am happy to confirm to my hon. Friend that we remain determined to come to terms with Canada. It is one of our closest allies, and we share so much in common in terms of values. A free trade agreement between us will be to the mutual benefit and prosperity of all our citizens.
(6 years, 4 months ago)
Commons ChamberThe presumption in my right hon. Friend’s question is entirely wrong. The presumption is that we cannot do a trade deal with Canada, but of course we can. We want to do a trade deal with Canada, but he will recognise that we did not want the TTIP deal with the United States even though the United States perhaps has a claim above Canada’s to be our closest ally on the international stage. The question is not who but what. Of course we can do a deal, but it must be the right deal for British business and jobs.
I spend a lot of time in Canada as our trade envoy. What would the hon. Gentleman’s message be to those British companies I meet in Canada that tell me how the provisional application of CETA is helping to boost their trade in that country and open up procurement—there are $20 billion-worth of opportunities in the city of Toronto alone. He wishes to cut that off to British businesses by rejecting this deal, so what is his message to them when they are already benefiting and helping to support jobs in the United Kingdom?
As I think I have already made clear to the House, we want those jobs and procurement opportunities, but we want them on the right terms.
I apologise, Madam Deputy Speaker. There are many aspects of the deal that we would welcome, but there are elements of it that are absolutely unsustainable and constitute red lines. South Africa, India and New Zealand have all stated their opposition to ISDS procedures, and New Zealand has gone so far as to sign side letters with five counter-signatories to the Trans-Pacific Partnership disapplying the ISDS provisions included in that agreement. The current impasse in the renegotiation of the North American free trade agreement hinges on US demands to drop ISDS provisions from the revised agreement, the rationale being that their respective domestic court systems are perfectly capable of adequately settling any disputes. Indeed, if our courts are sufficient for British companies, why should they not be considered so for foreign investors, too? The United Kingdom has long been considered a safe legal system, and a significant proportion of global trade is governed by legal—
On a point of order, Madam Deputy Speaker. The shadow Secretary of State has now spoken for longer than the Secretary of State. Many Back Benchers are waiting to get in on this important debate. Is he still in order?
The hon. Member for Brent North is still in order, but I point out that a lot of speakers want to come in. I am sure that he will bring his remarks to an end very shortly.
It is a pleasure to speak in support of this excellent trade deal between the EU and Canada, and in so doing I want to pick the shadow Secretary of State up on a number of points that he made in his interesting—and somewhat bizarre at times—comments. I like him personally—he is a jolly decent chap—but I am afraid his position on this is completely and utterly incoherent. The idea that he would oppose this deal while also trying to negotiate a new UK-Canada trade deal effectively puts him in the same boat as President Trump, in that he would immediately, by rejecting this deal, presumably reimpose the tariffs that have gone as part of the initial application of CETA. My question to him is: what would he say to British producers? I am thinking of companies like Isle of Harris Gin, whose launch I attended in Toronto in October, and which very successfully got into the Liquor Control Board of Ontario, the second biggest purchaser of alcohol—
I am not going to give way, as time is very limited. I know that concerns the hon. Gentleman’s constituency, but he has intervened a number of times.
The hon. Member for Brent North (Barry Gardiner) would impose tariffs in such areas immediately, damaging British interests now. Moreover, he fails to understand the position of the Canadian Government. Their position is that CETA will be the basis of the future UK-Canada trade deal. That is the position not only of Prime Minister Trudeau but of the Canadian Opposition leader Andrew Scheer, who was here and met the Secretary of State only a few months ago. So the hon. Gentleman would rip up a deal that the Canadian side in good faith wants to use as the basis of a trade deal. I am afraid the hon. Gentleman’s position is total nonsense and would be hugely damaging to those British producers who are already benefiting from the initial application of these provisions.
I also want to say something about the current environment in Canada based on what I find when I make my visits out there and also welcome Canadians here. There is massive support for this agreement in Canada, which leads into huge support for a seamless transition into a UK-Canada trade deal, because Canada recognises that, particularly in terms of public procurement, there are specific skills that this country has that are needed to make good on some of Canada’s infrastructure investment plans. In my earlier intervention I mentioned that there are £20 billion-worth of infrastructure contracts up for grabs in the greater Toronto area alone. This treaty makes it much easier for British companies to gain access to them. So the opportunities for UK companies in Canada are huge under this agreement.
On where we should go in the future, the Secretary of State rightly said that this is a good deal but we can do better, although this must of course be the basis of a future UK-Canada deal. There are two areas in particular where we should be more ambitious. First, services is a hugely important area of our economy, and we have a great deal in common with Canada in terms of services, but there are barriers at present that are not dealt with as part of the agreement, and which we would wish to see improved in a future deal. Similarly, CETA does some good things on labour mobility, but there is more that we can and should look to do with Canada in the future on the ability of companies to move people between the two economies.
Finally, I welcome the Secretary of State’s commitment to working with the devolved Administrations here. That is important. We must also recognise in our future negotiations with Canada the important role that Canadian provinces will play. I met with the Quebec negotiator Pierre Marc Johnson in Montreal just a few weeks ago. There is big support in the provinces for a UK-Canada deal, but we must engage with them at an early stage to ensure that remains the case.
(6 years, 10 months ago)
Commons ChamberAs I think I already said, we will use separate vehicles for new free trade agreements, and we will introduce a separate proposal on consultation. I am keen not to get to the position we got to in, for example, the Transatlantic Trade and Investment Partnership, where a whole negotiation was undertaken only to find there was insufficient public support. It is much better to seek support for a trade agreement mandate by having as wide a consultation as possible across the country with various ranges of stakeholders before we enter such negotiations. That is more democratic, and the process is more efficient. Consumers will in future take a greater interest in trade agreements than they have perhaps taken in the past, so consultation is also politically prudent.
The Secretary of State is absolutely right that the Bill will prevent anybody from falling off any sort of cliff edge. One of our most important trading relationships is, of course, with Canada, which is covered by the comprehensive economic and trade agreement. Will he confirm that the Canadian Government have committed themselves to reaching a free trade agreement with the United Kingdom once we leave the European Union and have established a joint ministerial council with us? Contrary to what we hear from some who seem unable to accept the result, many of our bigger trading partners, such as Canada, have quite a lot of enthusiasm for ensuring that we have a new relationship that perhaps goes further than the current arrangement through the EU.
I confirm that we have had very positive discussions with the Canadian Government, and I also confirm it is our intention, as we have said, to ratify CETA before we leave the European Union. Once we have left the European Union, CETA will form a good basis for any future agreement with Canada, while taking advantage of the increased trading freedoms the United Kingdom might have, unrestricted by elements such as the data localisation restrictions that are currently placed on us by the EU’s negotiating position.
(7 years, 4 months ago)
Commons ChamberWe engage on these issues on an ongoing basis with Japan. I know this is very important to the hon. Lady, so may I reassure her that the Government share a lot of her concerns on protecting animal welfare in free trade agreements? The UK has one of the best scores on the world animal protection index, where we are in the top four. It is important that we maintain animal welfare standards in this country in future agreements, and I have every confidence that we will.
T6. Ten and a half thousand UK businesses export to Canada, a quarter of a million jobs in the UK rely on trade with Canada and we are likely to be one of the biggest winners from the EU-Canada trade treaty. However, CETA—the EU-Canada comprehensive economic and trade agreement—is imperfect, so what are we going to do post-Brexit to ensure that we do even better in our trading relationship with Canada?
That is a very appropriate question, in this the week of the 150th anniversary of the Canadian confederation. My hon. Friend will know only too well that the UK exported more than £7 billion-worth of goods and services to Canada in 2015. We have five offices throughout Canada. We remain strongly supportive of CETA, but of course we will look to have a future agreement with Canada at an appropriate time.