Commonwealth: Trade

Andrew Rosindell Excerpts

Wednesday 22nd February 2017 Westminster Hall

[Jake Berry]

The best way for us to tackle poverty in the Commonwealth is for us to start trading freely and to make every single citizen of the Commonwealth richer. In truth, that is the best way of tackling it, along with other measures to which she referred.

I pay tribute to my right hon. Friend the Member for East Devon and our noble Friend Lord Marland. Together with the Maltese and the Commonwealth Enterprise and Investment Council, they have driven the issue of Commonwealth trade by organising the first ever Commonwealth heads of trade meeting, which takes place in London next month. That meeting has the sole purpose of increasing co-operation and trade between Commonwealth Governments and businesses. I hope it will put Commonwealth trade at the top of our Government’s agenda. Not only is it an exceptional meeting of Trade Ministers, but it is the perfect springboard for a successful meeting of Commonwealth Heads of Government meeting next year. I hope the Minister discusses next month’s meeting in his contribution to this debate, and takes the opportunity to put on record his commitment and that of our Government and his Department to expanding trade with our Commonwealth partners.

[Andrew Rosindell (Romford) (Con)]

I congratulate my hon. Friend on securing this very important debate at this time, as we leave the European Union. It is fantastic that he speaks passionately about the Commonwealth, but does he also include the overseas territories and the Crown dependencies? There are 21 of them and they are not members of the Commonwealth in their own right. Does he agree that we must include them in any discussions about trade and co-operation in future?

[Jake Berry]

I agree absolutely. I was in touch only this week with the Falkland Islands Government, who are watching this debate to see what is said about the Crown dependencies and overseas territories. I will come to how we must absolutely ensure that they are not left behind in any new Commonwealth trade deals.

Doing business in the Commonwealth makes sound economic sense for Britain. This is not a throwback to a sepia-tinted view of the Commonwealth; it is about ensuring that Britain’s economy grows. The facts speak for themselves. The Commonwealth is a market that comprises 52 largely English-speaking countries with a combined population of 2.6 billion, covering a third of the globe. Some 60% of its citizens are under 30, and half of the top 20 global emerging cities are in it. It should be noted that, although the UK has a trade deficit with the EU, it has a trade surplus with the Commonwealth that stood at £1.9 billion in 2015. The Commonwealth contains mature and open economies such as Canada, Singapore, Malaysia, New Zealand and Australia, exciting new emerging markets such as India, and developing economies in Africa, the Caribbean and the Pacific. It has a combined GDP of more than $10 trillion. It includes five G20 countries, with trade projected to surpass $1 trillion by 2020.

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[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Rossendale and Darwen (Jake Berry) on securing the debate. With all the focus on Brexit—we are all looking towards that—and import and export issues to the fore, we must remember that there is a wider market to explore. The aim of $1 trillion of Commonwealth trade by 2020 is a goal we must all work hard to achieve. That should be the focus of Ministers and Members of Parliament, in proud partnership with the Commonwealth.

I can always remember watching the Commonwealth games and being amazed by the number of countries that made up the Commonwealth. I was proud that they were happy to respect and be tied with the Queen and this great nation. There is a natural bond there, which the hon. Gentleman referred to in his introduction. It should be strongly explored and enhanced for the benefit of all those involved. We are all winners from enhanced trade and economic co-operation, but it will take time and effort to build it up.

Plenty of facts about trade are available, and other Members have mentioned them. In 2015, UK exports of goods and services to the Commonwealth were worth £47.4 billion, while imports from the Commonwealth were worth £45.5 billion. That gives an idea of the stats. It is clear that great work is being done, but there is massive potential for more to be done. The UK’s trade is heavily focused on a small number of the 51 Commonwealth countries. In 2015, Australia, Canada, India, Singapore and South Africa accounted for 70% of UK exports to Commonwealth countries and 65% of UK imports from the Commonwealth.

This is not a debate on Brexit, but it would be remiss of me not to point out the opportunity in the Brexit negotiations to enhance trade with our Commonwealth brothers and sisters. The Government have intimated that intention through the response of the Under-Secretary of State for International Trade, the hon. Member for Wyre Forest (Mark Garnier), to a written parliamentary question, in which he stated:

“We cannot negotiate and conclude trade agreements while we are a member of the EU, but we can have discussions on our future trading relationships. We have already announced working groups and dialogues on our future trading relationships with seven markets: Australia, China, India, New Zealand, Norway, South Korea and the Gulf Cooperation Council, which comprises six countries.”

My belief is that negotiations must range more widely to make the most of all avenues and ports of call within Commonwealth countries. That will help to develop those countries and will benefit our own. There should be a mutually beneficial system that allows small businesses and local economies to have access to the global network.

[Andrew Rosindell]

Does the hon. Gentleman agree that this is also a great opportunity to encourage the Republic of Ireland to join the Commonwealth and to include it in any possible arrangements for free trade across the world? There is an opportunity for the British Isles. Does he agree with that?

[Jim Shannon]

Of course I do; I wholeheartedly agree with that. Indeed, I would go the further mile and make it happen. It would be great to have the United Kingdom of Great Britain and Ireland, and not just Northern Ireland, together as one. That would be special, but I will settle for it being in the Commonwealth.

It is clear that deals with countries such as Australia, Canada and New Zealand will be important. They can open up big areas of new trade. It all depends on the terms we decide we will abide by in coming out of Europe, but we must ensure that we reach further. The initial talks with New Zealand have indicated the position that we will be seeking to establish post-Brexit: a foundation of respect and a hope to see winners in all areas. If we can do that across the Commonwealth and the United Kingdom, we should.

For too long we have had to labour under trade rules that did not allow for the foundations of the Commonwealth to be explored. Now is the time to seize the opportunities and to enjoy the benefits of the ties to our Queen and her aims, which we all hold dear in this place and further afield.

I will conclude, as I am conscious that I got an extra minute for taking an intervention. One Commonwealth charter principle is that

“international peace and security, sustainable economic growth and development and the rule of law are essential to the progress and prosperity of all.”

Let us enhance our links, so that we pay more than mere lip service to that charter principle. Let us start the planning right now.

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[Sir Henry Bellingham (North West Norfolk) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Rossendale and Darwen (Jake Berry) on securing this debate. I declare my interests: I am chairman of the all-party group for the Commonwealth, and I am the former Foreign and Commonwealth Office Minister for the Commonwealth in the Commons, although I was reporting to the right hon. Lord Howell of Guildford at the time.

It is a pleasure to follow my hon. Friend the Member for Mole Valley (Sir Paul Beresford). His expertise on New Zealand is greatly appreciated. I think our total bilateral trade with New Zealand is about £6 billion. With the Republic of Ireland, it is about £32 billion, so there is a lot of ground to be made up.

There has been much discussion about the Commonwealth Enterprise and Investment Council meeting on 15 March. I congratulate my right hon. Friend the Member for East Devon (Sir Hugo Swire) on the work he has done on that superb council and initiative. It is going to be co-hosted by the UK and Malta, and I think it really gives us an opportunity to look at where we go post-Brexit. We can—I hope the Minister will confirm this—start the pre-negotiations with many of these countries. We obviously cannot negotiate trade deals with Commonwealth countries until we actually exit the EU, but surely we can do a lot of the background work. I would be grateful if he could confirm that.

I recently met up with a number of Commonwealth high commissioners, who really want to be fully engaged in this process. They are the key link personnel in London, and they have a vital role to play. May I suggest that before the summit on the 15 March, the Minister has a pre-meeting with the Commonwealth high commissioners in London? I think that would be a really good initiative.

The hon. Member for City of Durham (Dr Blackman-Woods) made an excellent point about Commonwealth migration. I, too, would take student numbers out of migration figures. When we get control of our borders, we need to be sensible and ensure we have the right talent when people come to this country to work. For example, Russell Group universities have on average twice as many non-EU students as EU students. When EU students finish their studies they can do a postgraduate course or work here, whereas many of the non-EU students cannot work and have to go back to their country, as in many cases they find it very difficult to get a work permit or a visa. I think that industry and business need the advantages that will come from our being able to pick the brightest and best without any discrimination in favour of one country or another.

I absolutely agree with what my hon. Friend the Member for North West Cambridgeshire (Mr Vara) said a moment ago about border controls. How we treat Commonwealth citizens is going to be really important in the future, and what clearer and more emphatic innovative signal can we send than changing our border arrival arrangements? I suggest that, post-Brexit, we should have one queue for UK citizens, including citizens of the overseas territories and citizens of the realm—the Commonwealth countries that chose to keep Her Majesty as Head of State—another queue for Commonwealth citizens, or perhaps Commonwealth and EU together, and another for the rest of the world. That would show our trading partners where our loyalties and interests lie. After all, the people side of trade—the services side, and the exchange of people and ideas—is incredibly important.

[Andrew Rosindell]

On that very point, does my hon. Friend agree that the Commonwealth realms have been neglected? The constitutional link that they have with the United Kingdom in sharing Her Majesty the Queen as the Head of State should be cherished. Their citizens should be given preferential treatment not only when they arrive at Heathrow and enter this country, but in other ways. We should build a closer relationship based on sharing Her Majesty the Queen.

[Sir Henry Bellingham]

My hon. Friend is absolutely indefatigable on that issue. Of course he is absolutely right. I hope the Minister will take notice of that point and respond to it.

There are huge opportunities out there. It is incumbent on this country and the Government to seize them now.