Commonwealth Trade

Debate between Andrew Rosindell and Robin Walker

Wednesday 12th December 2012 Westminster Hall

[Andrew Rosindell]

The shadow Minister misunderstands the point I am making. I value enormously our relationship with Europe. Co-operating and trading with Europe is very important, and I do not downplay it at all. I am sceptical over whether the EU, as constructed, is the right model for us to be part of. There are all sorts of ways to trade and co-operate with our neighbours on the continent, without necessarily being tied into a political union, which is, I am afraid, heading in the direction of an integrated united states of Europe. I do not think that many constituents of Members in the Hall today would support the idea of going further and deeper into that construction. If the Labour party intends to fight the next election wanting to sign up to an even closer relationship with Europe, I look forward to the election result.

What of the general UK presence in terms of trade with the Commonwealth? For example, how many UK trade delegations have been to Commonwealth nations since 2010? Maybe the Minister can answer that later. Sadly, it seems that Britain has delegated many such matters to Brussels. We appear to have lost our ability to conduct direct trade deals with countries outside the EU. The UK seems unable to carry out free trade agreements with a third party, due to our association with the EU customs union. Consequently, the UK can independently forge bilateral investment agreements only. In the light of that, could the Minister inform the House when the last bilateral investment agreement was signed by the UK and another Commonwealth country? Although we all recognise the importance of our trade relationship with our European neighbours as individual states, the idea that we must for ever have a Eurocentric focus is simply outdated and wrong. Commonwealth and European trade should not be seen as mutually exclusive; they should complement each other.

We run a trade deficit with the EU of £41 billion, but a trade surplus of more than £10.7 billion with the Commonwealth, so it makes sense to balance one with the other. More Commonwealth trade does not mean less trade with European nations. Germany, for example, had an extremely healthy surplus of £16.8 billion in 2011. Does anyone seriously believe that our German friends would stop that great deal with the British people if we forged a new agenda on Commonwealth trade? It would to be to no one’s advantage.

Our neighbours across the English Channel would be the beneficiaries of any new arrangement for Commonwealth trade. They, too, could plug into opportunities that Britain is in a unique position to create. We are in a unique position to concentrate on developing the potential for trade that exists beyond the continent of Europe, and we should not be held back from doing so.

In October this year, a paper authored by Tim Hewish and James Styles, “Common-Trade, Common-Growth, Common-Wealth”, set out the possibilities for Commonwealth trade. It examined in detail how we can further mould the Commonwealth into a relevant and practical 21st-century organisation, based around a mutually beneficial trade relationship, as well as how we can lift developing Commonwealth nations out of poverty. I highly recommend the book to the Minister. I hope that he will read it, and take it back to the Foreign and Commonwealth Office to develop ideas based on its excellent contents. The case is supremely compelling.

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend on the powerful case he is making for Commonwealth trade. To strengthen his argument and the report he just held up, yesterday the all-party group on the extractive industry was told by the International Council on Mining and Metals that the Commonwealth already plays an important role in capacity building in some developing countries, which ensures that they do not suffer from the resources curse and that they can deal with the classic issues of corruption and lack of transparency that have blighted so many economies. Does he therefore agree that Commonwealth trade can play an important role not only in increasing the UK’s trade, but in helping many developing countries to trade out of poverty?

[Andrew Rosindell]

My hon. Friend makes an excellent point. I will refer to this later, but we spend rather a lot of money on aid, through our Department for International Development budget. It is probably more beneficial in the long term to assist such countries to trade. We should help people to trade themselves out of poverty, which is a far better solution than continuously giving them handouts. Trade is the way out of poverty, and the Commonwealth is uniquely placed to form a foundation for that. I thank my hon. Friend for that intervention.