Ceasefire in Gaza

Debate between Angus Brendan MacNeil and Liam Fox

Wednesday 21st February 2024 Commons Chamber

[Sir Liam Fox (North Somerset) (Con)]

Whatever anyone’s views are about the history or the politics of the middle east, no one can be in any doubt that since 7 October we have all witnessed a humanitarian tragedy. The attacks of the terrorist group Hamas, including the murder of young people attending a music festival and the taking of hostages, were bound to set in train a series of violence, which Hamas must have fully understood, including a full response by the Israeli Government.

In associating myself completely with the comments of my right hon. Friend the Minister on the Government’s amendment, particularly on the need for an immediate humanitarian pause and a permanent, sustainable ceasefire, including the release of hostages, I want to take up the point made by the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), who is no longer in his place, about the role that Britain can have in the more substantive issue around the conflict. As has been pointed out in the debate, we are not participants in the conflict, so we cannot have a direct effect on whether arms are laid down, but we can have an influence in the process that comes later. Sooner or later, this will have to return to a political process, and Britain should now be setting down the rules by which we want to see peace put in place.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)]

Will the right hon. Member give way?

[Sir Liam Fox]

Not at the moment.

It is highly important that we understand what we mean by peace when the term is being used in this context. The hon. Member for Oxford West and Abingdon (Layla Moran) had the privilege of being at the Manama Dialogue, and feels strongly about that. We have constantly to make clear to both sides that the concept of peace is not just the absence of war or conflict but freedom from the fear of conflict, oppression or terror. Peace requires mutual respect, freedom from persecution and living without fear of destitution. It comes with self-determination and liberation from arbitrary justice. It needs hope, dignity and enforceable rights. Only when all the people of the region have access to all that could we talk about having achieved a peaceful solution to the conflict.

We need to look at the political process with two addenda. We must move to a two-state solution, because the country that does not want that is Iran, which does not want Israel to exist, and apparently Prime Minister Netanyahu does not want a Palestinian state to exist. We must recognise the will of the international community for a two-state solution in the end. For a political process to be able to exist, we need to deal with the wider security issues. There needs to be a guaranteed security for Israel, to protect it from the sort of attacks that it has seen. It is clear that the Israeli construct of security has failed—otherwise, the Hamas incursions would not have taken place. It is also clear that there has to be a proper guarantee of security for any emerging Palestinian state. Quite self-evidently, that cannot be done by the states on their own. Just as we looked for international security guarantees for Europe after world war two, so we will need international agreement on any security architecture within which a political solution can be found to the Israel-Palestinian issue.

I am sure that this House can unite around the need, as a country, to be concerned about the improved prosperity, hope and opportunity of all young people in the region. It has been my privilege to lead the UK Abraham Accords Group over the past two years, and I welcome the support that we have had across the House, but we must find mechanisms to improve the economic wellbeing of young people, particularly, on the Arab street. Otherwise, there will be no lasting basis for a political solution. People who have nothing to lose will gamble. People who have something to lose will be much more circumspect. That has been the lesson from peace being brought to disputes around the world.

I believe that the important issue of Rafah comes into this, because we are at something of a crossroads. We can move forward with the ideas of hope and prosperity, bridge building and rapprochement that the Abraham accords have brought. The Governments of Bahrain, the United Arab Emirates and Morocco have been far sighted in maintaining that process during the current conflict. If we do not take that path, we run the risk of going back to 1971 and a generation of radicalised young Arabs who will make a political solution impossible.

Much of this debate is quite nuanced in terms of when and how ceasefires should take place, but as a country, we need to set our sights and horizons further, on what happens when the political process does re-engage. Where does Britain play a role? I believe that we have a positive and constructive role to play, and we need to take our debate on to that wider, more important and far-sighted horizon.

Trade Bill

Debate between Angus Brendan MacNeil and Liam Fox

Consideration of Lords amendments
Tuesday 9th February 2021 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

It is good to have this debate, although I am afraid it is a bit too short, as I think most Members would accept.

When it comes to trade deals, Parliament really needs to debate beforehand. One of the things we know from the little interaction we have had with negotiators is that it is much better for them to know what Parliament is thinking; it strengthens their hand in negotiations to understand what they might get through Parliament at the end of the day. That is hugely important. It is also important for them to hear the concerns of 650 people who represent the geographical area that the trade deal will be a huge, integral part of and will affect. I would caution that what happened before Christmas, with the rush of the European trade deal, is a lesson that Parliament should think and not rush.

There is, of course, within any Executive—any Government—a feeling that they do not want scrutiny, they do not want to discuss, and they do not want to pause, reflect and think again, but for the good of everyone concerned, they should do that. Parliament treats itself as a sausage factory; it gets things done and through, and that is the end of it. However, at the end of the day, as the shellfish exporters, the poultry exporters and many others in the UK know, once Parliament has washed its hands of it and walked away, other people have to deal with the text at hand. They cannot deal with that text very well if it has not been thought about, reflected upon or given due scrutiny.

In Parliament, we talk a lot about trade deals, but do we realise the GDP size we are talking about? That is something we can lay out beforehand. Leaving the European Union will cost the UK about 4.9% of GDP. The best of the upcoming trade deals that we are looking at will make only a fraction of that back—with New Zealand and Australia, probably about a fiftieth of it. Are people aware of that?

During the negotiations on the Japan trade deal, the International Trade Committee could not get access to the right level of negotiators. It was only at the end that we understood the pass we were sold on tariff rate quotas, where the UK accepted playing second fiddle to the European Union; after the European Union had dined with Japan, the UK could then perhaps go to the table for the crumbs. We were not aware of that at all during the negotiations. Parliament has to look a bit better. We have to trust our Select Committees, improve access, and have debate beforehand and afterwards. As for the point that Parliament has much power with the CRaG process, frankly, that is just not true.

The best the Government could do at this stage would be to adopt Lord Lansley’s amendment 1B. That would be a huge help from the point of view of the Select Committee and Parliament, and the Government should have the humility to do that.

[Dr Liam Fox (North Somerset) (Con)]

I wish to make only three brief points. First, the House of Commons is the appropriate place to scrutinise the elected Government’s independent trade policy. That is why I am against Lords amendment 1B, because it actually gives powers away from the House of Commons. The amendment requires the House of Lords to give its permission for the elected Government to even have discussions on our future trade policy. I cannot believe that the Labour party’s position is to give the House of Lords a veto on what an elected Government in the House of Commons should or should not be able to do. I wonder sometimes whether this House is having some sort of collective democratic nervous breakdown, because it seems always to want to give its powers away to someone else.

As I said last time, I do not believe that the courts should have a say on the elected Government’s trade policy, either—whether prospectively or retrospectively—or on what we debate in Parliament. When it comes to the issue of genocide, what matters is what we do about credible accusations of genocide. We should not be waiting for judicial confirmation through the Trade Bill. We can assess evidence, assess intelligence and listen to eyewitnesses ourselves. Frankly, if we want to take action in response to the Chinese Communist party’s treatment of the Uyghur people, we should do so. We have given ourselves new powers. But the Trade Bill is not the appropriate place to deal with that issue.

On the impact, we are talking not about stopping trade with China or stopping companies doing trade deals with suppliers in China—the use of sloppy language that fails to differentiate between trade deals and free trade agreements, which are a different legal entity entirely, does not help the quality of the debate—but we do have a perfect right to take into account any state’s behaviour when it comes to a future free trade agreement, and our ability to do so is limited. I campaigned to leave the European Union because I wanted powers brought back from Brussels, but I wanted them brought back to this place, not given straight back to the Executive to exercise them on our behalf. When I was Secretary of State, I wanted to see Parliament given a vote on new trade agreements, as the previous Speaker would have attested. I still believe that that is most appropriate at the beginning, at the setting of the mandate, because if Parliament can agree then on the direction of travel, we are less likely to have the sort of misinformation that we had on the transatlantic trade and investment partnership and the ridiculous scare stories that we heard from the SNP spokesman today. If we do not have the ability to vote at the beginning of the mandate, it makes the CRaG process less credible.

The Government are making a rod for their own back. Today we have an opportunity to give power back to the House of Commons—not the House of Lords, not the courts, not the Executive. We should show a little bit of courage and faith in our own institution.

Oral Answers to Questions

Debate between Angus Brendan MacNeil and Liam Fox

Thursday 25th April 2019 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Free trade agreements are, of course, needed, and the EU has some very good ones, which is why the United Kingdom Government are copying them. But trading on World Trade Organisation terms is very expensive. What is the Secretary of State doing to dispel the notion that is abroad, particularly in his own party, that leaving the EU and trading on WTO terms is a good idea? If it was, every country would be walking out of their trade blocs and every country would be ripping up trade agreements. It is a very silly and very dangerous idea, and I hope he is doing his best to combat it.

[Dr Fox]

I am not quite sure how that relates to the question on healthcare, but it is an important point that the WTO rules provide a baseline, and the way in which countries get preferential treatment beyond that baseline is very often through a free trade agreement. That is why we want to see free trade agreements beyond what we have today.

Future Free Trade Agreements

Debate between Angus Brendan MacNeil and Liam Fox

Thursday 21st February 2019 Commons Chamber

[Dr Fox]

I really find it quite insulting that the United Kingdom, the fifth biggest economy in the world, should be described as a dwarf by the hon. Gentleman. We are one of the most successful global economies. It is also worth pointing out that the European Union does not have a trade agreement with China or with the United States because it was too difficult to get an agreement with the 28 nations in those negotiations. He is right to suggest that economies of scale have a role in trade agreements, but so also does the ability to conclude those agreements and to ratify them. That has shown itself to be easier when dealing with single nations, which is why Australia has a trade agreement with China but the European Union does not.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The Secretary of State has given us a good rundown of eastern growth metrics. This is why the EU is making the free trade deals with Japan and Korea that we are worried we are going to fall out of. The percentage that I would like him to give us is the gain to gross domestic product for the UK in any deals. We know that the UK will probably gain about 0.2% of GDP with a United States deal, as opposed to the 6% to 8% that it is going to lose from the European Union. That is only about one thirtieth or one fortieth of the gain. If the right hon. Gentleman is talking percentages, will he give us the percentages in context? He says that there will be a loss from Europe and gains with the United States of America and other places, but sadly those gains will be dwarfed by the losses.

[Dr Fox]

But that is a false prospectus, because we want a full and comprehensive trading agreement with the European Union that maintains that trade for the United Kingdom plus the extended opportunities that will come with increased access to those markets that are growing faster. It is possible to do both. It is possible to maintain our trade with the European Union and to improve our trade with the rest of the world. In fact, Britain will have to do that if we want to generate the sort of income that we require for the provision of our public services. Work done by the Institute of Economic Affairs suggests that in 2017 the big increase in UK exports of about £60 billion fed back into the Exchequer at a level of something like £15 billion to £20 billion. That is an example of how, when we come to balance our budget, it is not simply a choice between raising taxes and cutting spending; it is also about earning more money as a country.

[Angus Brendan MacNeil]

Is the right hon. Gentleman seriously saying that the Treasury’s suggestion that getting out of the European Union and the single market will hit the UK economy by 6% to 8% is not actually the truth? That is what is going to happen; he knows that we will take a GDP hit from that. He also knows that a deal with the USA, which accounts for a quarter of the world’s GDP, will give us only a 0.2% gain. He will need to make about 30 or 40 USA-style deals to make up for that loss. Given that the USA accounts for a quarter of the planet, he is going to have to trade with seven or eight planets to make up the loss resulting from his Government’s policy on Europe.

[Dr Fox]

I know that the hon. Gentleman feels very strongly about this. He did not like the result of the referendum and he does not like the decision to leave the European Union, but we are leaving the European Union and we need to ensure that we have sufficient access to the European market, but in a way that does not tie our hands in relation to increased access to other global markets. He makes assumptions on growth in other markets that I do not accept. Nor is this purely about access to goods markets; it is also about the growing access to services markets. In the global trading environment, we have simply not seen the sort of liberalisation in services that we have seen in goods since the establishment of the World Trade Organisation. There is huge potential to unlock the economic benefits to the United Kingdom in seeking global liberalisation in services trading, which is not factored into any of the equations that the hon. Gentleman has mentioned.

--- Later in debate ---

[Dr Fox]

At the other end of the scale, the Australia-US trade agreement was an extremely short one to negotiate. So where there are compatible economies, it is possible to do that. I spoke to my Australian counterpart yesterday, and we hope that, given the openness of our economies and their compatibility in terms of shape, we will be able to conclude an agreement as soon as possible. There is no way, in advance of a negotiation, to say how long it will take. At the beginning of this process, our Australian colleagues are likely to be involved in a general election, which may mean that it will be slightly later when we can get into the process, but I hope to be able to conduct bipartisan negotiations with them to ensure that we can make progress as quickly as possible, which is in our mutual interest.

On 20 July 2018, we launched four online public consultations, providing the public with an opportunity to give their views on potential future trade agreements with the US, Australia and New Zealand and on accession to the CPTPP. All four consultations were open for 14 weeks—two weeks longer than the EU’s trade agreement consultations—and collectively attracted more than 600,000 responses, making it one of the largest consultation exercises ever run by the UK Government.

Alongside the consultations, we ran 12 events across the different regions and nations of the UK to seek their views on how prospective trade agreements could support prosperity and growth. The evidence provided in the responses to those consultations will inform the Government’s overall approach to our future trading relationship with these countries, including our approach to negotiating any trade agreements. Decisions made as a result of the consultations will be published before potential negotiations start.

This is the first time that the United Kingdom has consulted on potential future trade agreements independently. The volume of responses across all four consultations, run simultaneously, means that it is only right that we take time to consider the responses and the views of this House in detail. While there are many other markets that the UK will look to for new agreements, our shared values and our strength of trade with the US, Australia and New Zealand make them the right places on which to focus our initial attention, alongside our interest in potentially negotiating accession to the CPTPP.

Let me turn to future scrutiny of our free trade agreements—a topic that has received much discussion in both Houses, including through the inquiry co-ordinated by the International Trade Committee and the published response.

[Angus Brendan MacNeil]

Let me provide a little extra scrutiny. The Secretary of State has talked a lot about trade policy and trade agreements, but these are very different from trade; trade is a different thing. I am thinking about my constituency, where there are guys who travel to the European continent on a weekly rotation basis with lorries containing live shellfish. Now, if we have trade agreements with New Zealand, it is not so easy to drive there on a weekly rotation with a lorry of live shellfish. These guys would also face snarl-ups and there would not be the openness that there currently is to access the French, Spanish, Italian and German markets. How will the interface between trade, trade policies and trade agreements actually work in practice for lorry drivers of shellfish? That is what these people need to know.

[Dr Fox]

The mechanics of the market become immaterial if there is no market to sell into. We are looking to ensure that UK producers have increased market access so they can trade more, sell more of their products and make more profit, which enables us to employ more people. That is what the whole concept of free trade is about. The hon. Gentleman is quite right that the mechanics at borders need to be ensured—not only in the United Kingdom, but in many of the other countries that we are selling into. That is what the trade facilitation agreement that we signed last year was all about. There has to be an improvement in global trading mechanics, including through using new technologies.

The Government are committed to the established principle that Parliament must be able to scrutinise trade agreements at the beginning, throughout and at the end of negotiations. We must have a mechanism that balances real and meaningful scrutiny with the need to maintain the greatest possible security for sensitive negotiating positions and potentially market-sensitive data. I am grateful to Members on both sides of the House for their encouragement and the private conversations that we have been able to have on this issue. The Government are considering how best to balance these elements and I will bring forward further proposals very shortly, not least because we need this for the Trade Bill to make progress on Report in the other place. We will of course take account of views expressed on the subject in this debate.

As we leave the European Union, the United Kingdom will have the opportunity to negotiate, sign and ratify free trade agreements during the implementation period. Working with like-minded partners such as Australia and New Zealand in bilateral agreements and adding our weight to the CPTPP—a modern and ambitious agreement— alongside an agreement with the largest and one of the most innovative countries in the world, the United States, will allow the United Kingdom to take advantage of the opportunities that leaving the European Union affords. This will allow us both to break down barriers that exist with our established partners, and to adapt to the momentous changes taking place in global trading patterns and the growth of the global economy.

Across the world, new markets are emerging that will provide golden opportunities for British goods and services, and it is right that the Government seek out like-minded partners to build the relationships and trading environments that will best maximise those opportunities for the benefit of the United Kingdom and the wider world.

EU Trade Agreements: Replication

Debate between Angus Brendan MacNeil and Liam Fox

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

First, let me thank my right hon. Friend for the work he has done in my Department as part of this overall process. What stands out in this debate is the utter humbug we hear from the hon. Member for Brent North, who talks about the need to roll over agreements such as the one with Canada and asks why the Government are late in doing so. The Labour party voted against the agreement in the first place; Labour did not want us to have the agreement. So now, to come to the House asking why we are not rolling it over on time is, sadly, absolutely typical of the way he does business.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The serious matter here is that on 29 March, transition or no transition, the UK is going to be at the mercy of the sovereignty of 70 other countries in their agreeing to the trade deal roll-over. The EU seems to have been very good at these trade agreements, which include human rights. The Secretary of State wants to maintain those agreements, despite wanting to rip up trade agreements with the most important partners, namely the 27 countries in the EU trading bloc.



The importance of the 40-odd trade agreements with 70 countries is recognised by the Society of Motor Manufacturers and Traders, which warns that even if EU trade agreements are rolled over, advantages will not always be met. For example, the EU-Korea agreement allows for 55% automotive content, but the UK cannot reach 55% automotive content. As the Society of Motor Manufacturers and Traders has warned, that will put the UK at the disadvantage of not being able to fulfil the rates of the trade agreement, and we will be on the more disadvantageous World Trade Organisation terms as well. In the 40 agreements with 70 other countries, how many other instances are there of clauses such as the one on 55% content that cannot be met? People who trade and export from the UK need to know, and they need to know now, with 44 days to go.

[Dr Fox]

The central premise of the hon. Gentleman’s question is that we intend to rip up our trade agreement with what he describes as our most important trading partner, the EU27. We have no intention of having a breach. We want to have a full, liberal trading arrangement with the European Union. We do not want Britain to be subjugated in a political relationship that the voters have told us to leave. When it comes to continuity, the Government have set out what we will do with the agreements. For each of them, we have set out to Parliament—this is in both Libraries—the text of the agreement, an explanatory memorandum and the political statement on where there is any change between the agreement in place and the one we are rolling over, if utter and complete replication has not been possible. We have done that already, and we shall do that with the others.

Trade Bill

Debate between Angus Brendan MacNeil and Liam Fox

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 17th July 2018 Commons Chamber

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

I beg to move, That the Bill be now read the Third time.

Let me begin by thanking right hon. and hon. Members from across the House who have shared their time and expertise to help enhance the Bill. We have spent today on Report thoroughly examining the measures in this short but significant proposed legislation. This followed four days of line-by-line scrutiny in Public Bill Committee. I would like to thank those who gave oral evidence to the Committee, and the individuals and organisations who provided written evidence and recommendations. I also extend particular thanks to the members of the Committee, on which the hon. Member for Brent North (Barry Gardiner) led for the Opposition and the hon. Member for Aberdeen North (Kirsty Blackman) led for the Scottish National party, for their detailed examination of the Bill and the positive way in which they contributed to debates on its provisions. I would also like to pay particular thanks to my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), who as Minister of State for Trade Policy played a vital role in developing the Bill and in steering it through the preceding parliamentary stages. I, and all my parliamentary colleagues, owe him a great debt.

This is an important Bill. It provides continuity and stability as the UK leaves the European Union for individuals, businesses and our international trading partners. It will be the confident first step that the UK takes towards establishing itself as an independent trading nation for the first time in over 40 years. As the hon. Member for Brent North concluded on Second Reading:

“The need for a Bill to establish a trade remedies authority, to establish our independent membership of the WTO government procurement agreement, to enable us to maintain strong trading ties with partner countries that have had historical agreements with us through the EU, and to establish the power to collect and share…information—all are uncontroversial requirements.”—[Official Report, 9 January 2018; Vol. 634, c. 221.]

I wholeheartedly concur.

As the UK leaves the EU, the Government are committed to seeking continuity in our current trade relationships. One way we will achieve this is by introducing powers to let us make domestic legislation implementing our independent membership of the Agreement on Government Procurement, or GPA. This continuity is important for both business and the taxpayer. GPA membership will maintain the access of UK businesses to a global public procurement market estimated at £1.3 trillion every year, across major economies such as the United States, Canada and Japan.

Taxpayers and users of public services will also benefit. The GPA has led to increased choice, quality and value for money in the public sector. TheCityUK, which represents financial and related professional services, wrote to the Public Bill Committee to say:

“We fully recognise the need for the UK to become a party to the WTO GPA”.

As it explained:

“The GPA requires that open, fair and transparent conditions of competition be ensured in government procurement…which cover both goods and services”.

The Federation of Small Businesses said:

“it is essential that the UK is able to become an independent member of the GPA, allowing small businesses to have continued access to government contracts and procurement opportunities.”

It is clear that the agreement is of great value to UK businesses and its importance is endorsed by organisations representing their interests.

As an EU member, the UK participates in many trade agreements with partner countries. We want continuity as far as possible in our existing trading relationships with these existing partners. As these agreements account for 12% of the UK’s total international trade, this will be important in preventing disruption to businesses, consumers and workers. The International Trade Committee observed in a recent report that:

“Almost no one who contributed to our inquiry suggested that the Government’s policy objective of seeking continuity was the wrong one.”

Additionally, the Scotch Whisky Association, which I have much pleasure in promoting at home and abroad, has said that

“continuity of current EU trade agreements is vitally important to us”.

British Sugar stated:

“We support the Government’s overriding intention to maintain continuity by replicating existing trade as closely as possible and believe that this is the best means by which to provide certainty to business.”

Continuity for the taxpayer, businesses, consumers and our international partners—that is what this Bill is about. To be absolutely clear, and as I made clear in my statement yesterday, this Bill is not about signing new trade agreements or making substantial changes to existing ones.

Despite many misleading claims to the contrary, the Government will not use measures in the Bill to implement substantially different agreements with existing partner countries. Our policy has always been, and remains, one of securing continuity first and seeking new opportunities second. We have been clear with our trading partners that continuity remains our primary objective, as I made clear earlier this evening. However, as debated on Report, to further reassure the House, the Trade Bill requires the Secretary of State to table a report outlining all the changes made to existing agreements as part of the transition into UK-only agreements. This places in statute the Government’s clear commitment to transparency—to aid appropriate parliamentary involvement, allowing Members of both Houses of Parliament the opportunity to see what changes have been made to secure continuity.

Additionally, the use of the clause 2 power will now be subject to the affirmative resolution procedure, allowing both Houses to debate regulations made under that power. The Government will not use the powers in the Bill to implement the obligations of new free trade agreements—ones with countries with which the EU does not already have a free trade agreement. We consider these to be future trade agreements and we announced this week our proposals for them.

The Bill also provides for the establishment of the Trade Remedies Authority. The World Trade Organisation allows its members to provide a safety net to protect domestic industries against injury caused by unfair trading practices, such as dumping and subsidies, and unforeseen surges in imports. Trade remedies level the playing field and restore the competitive balance. They are key to ensuring an effective rules-based system for international trade. The European Commission is currently responsible for undertaking trade remedies investigations and imposing measures on behalf of the UK. The Government are establishing the TRA to ensure that the UK can continue to provide a safety net for domestic industries after we have left the EU. I am grateful to Members on both sides of the House for the support that they have given on this issue.

Specifically, the TRA will be responsible for making an assessment in a case for a trade remedies measure, based on the evidence available. It will then make impartial recommendations to Ministers. This includes protection from goods that are heavily subsidised or dumped in the UK market at below domestic price. It also includes injury caused by unforeseen surges in imports. The investigative and decision-making framework that the TRA will be responsible for delivering is set out in the Taxation (Cross-border Trade) Bill.

The Government’s commitment to establishing the TRA has been recognised by stakeholders—by both producers and consumers. The Public Bill Committee was told by the British Ceramic Confederation:

“It is clear that we need a TRA, and it is certainly welcome that the Bill establishes one.”––[Official Report, Trade Public Bill Committee, 23 January 2018; c. 64, Q123.]

In its written evidence, consumer organisation Which? stated that it

“recognises the need to develop a trade remedies regime and establish a new TRA which will be able to consider the need for remedies objectively, on a case by case basis”.

As the International Trade Committee also recently acknowledged:

“Establishing a trade defence regime is critical to protect UK domestic industries from injury from adverse trading practices.”

The Committee described the Trade Bill and the Taxation (Cross-border Trade) Bill as “important, necessary steps” and stated that

“we welcome the Government’s attention to this subject.”

The Bill also includes measures that will allow HMRC to collect more detailed information on trade and share it with appropriate bodies, primarily the Department for International Trade. This will allow the Government a sharper picture of how the UK trades and where we can best target support for British businesses. These provisions will also ensure that the UK is able to fulfil its international transparency obligations to share data with organisations such as the WTO. This function is currently undertaken by the European Union and it is vital that the UK can take over this responsibility, if we are to operate an independent trade policy.

Appearing as an expert witness before the Public Bill Committee, Professor Winters of the UK Trade Policy Observatory said:

“Information is very important, not least in my trade, for analysing what goes on. The case for collecting reasonable amounts of information, as long as it is cheap to do so, is very strong indeed”.––[Official Report, Trade Bill Public Bill Committee, 23 January 2018; c. 57, Q108.]

In a similar vein, the British Chambers of Commerce told that Committee:

“If, in the future, there can be a more robust collection of data and stronger assessments of UK-third country trade, that would be helpful.”––[Official Report, Trade Bill Public Bill Committee, 23 January 2018; c. 72, Q136.]

[Angus Brendan MacNeil]

Given the vote just now and that the UK is turning its back on the customs union, we will most likely have a border in Ireland. In that eventuality, we will not have a transition agreement with the Republic of Ireland. If we have a border but no transition agreement, will the Government be ready in March 2019 with the TRA and will they have in place the 40 trade agreements that are vital for industry?

[Dr Fox]

I do not accept that the Government’s proposals will require a border in Ireland. In fact, the Cabinet took a specific decision to bring forward a proposal to take to the EU that will prevent us from having that border. Nor will we accept a border down the Irish sea, because all parts of the UK, however much the hon. Gentleman might dislike it, will be treated the same by this Government, who are proud to be a Conservative and Unionist Government.

The Bill also brings forward measures that will ensure a joined-up UK approach to implementing the GPA and continuity trade agreements. However, the Government respect the devolution settlement, as reflected by the amendments tabled by the Government on Report and accepted by the House. We have worked closely with the devolved Administrations to make progress towards legislative consent. Let me reiterate the Government’s commitment to not normally using the powers in the Bill in areas of devolved competence without the consent of the devolved Administrations. These powers are primarily here for administrative efficiency. We will not be taking back any powers currently in the hands of the devolved Administrations, however much the nationalists pretend that we will be. In fact, as powers return from Brussels, more will sit with the Scottish, Welsh and Northern Irish Governments than ever before.

As we leave the European Union, we want to provide continuity for businesses, for consumers and for our trading partners. This Bill sets the scene for the United Kingdom’s independent, sovereign trade policy. We will approach that with optimism and confidence. I commend the Bill to the House.

Draft EU-Canada Trade Agreement Order

Debate between Angus Brendan MacNeil and Liam Fox

Tuesday 26th June 2018 Commons Chamber

[Dr Fox]

I think that something we share across the House is the belief that we would prefer people to be able to trade their way sustainably out of poverty rather than having to depend on aid budgets, and, of course, free trade is one of the key ways of ensuring that that happens. My hon. Friend is right: it is important that we send a signal, and I hope we can add to the signal that we sent last time that it is not possible to believe in the concept of free trade while not agreeing with any of the specific agreements that make free trade happen. It is important that we have consistency throughout.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

rose—

[Dr Fox]

Of course I give way to the Chairman of the International Trade Committee.

[Angus Brendan MacNeil]

I am picking up the clear message that it is the view of the Brexiteer UK Government that the European Union has negotiated a very good trade deal. Is that correct?

[Dr Fox]

We think it is the most advanced and ambitious trade deal that the EU has produced so far. That is not to say that it could not have been more ambitious in some areas, such as services. There is, of course, room for improvement in the future.

Canada is an important strategic partner too. As one of the “Five Eyes”, and as a member of NATO, the Commonwealth, the G7 and the G20, we have bonds that go far beyond just our trading relationship.

As Members will know, CETA was provisionally applied in September last year, removing 98% of the tariffs previously faced by UK businesses at the Canadian border, and UK firms are already benefiting. We have seen drinks exporters such as Dorset’s Black Cow Vodka and Kent-based sparkling wine producer Hush Heath Estate improve their market access and profitability with the reductions in tariff and non-tariff barriers. We are also seeing new UK exporters to Canada, including Seedlip, which produces the world’s first distilled non-alcoholic spirit. Under CETA, Seedlip does not have to pay the 11% pre-CETA tariffs on its product.

Moordale Foods, which entered the Canadian market in March 2017 with assistance from the Department, was helped by CETA duty elimination. Pre-CETA, its range of products would have been subject to duties of 12.5%. Its prices in Canada are now closer than ever to its current domestic UK price, and its products can now be found in key Canadian gourmet food outlets, including the flagship Saks Fifth Avenue food hall in Toronto. That is an example of trade in action, and of how it will help the United Kingdom to earn more abroad and provide more jobs in the UK.

--- Later in debate ---

[Dr Fox]

As the Prime Minister has made clear, we hope, given we are starting from the position of complete regulatory and legal identity with the European Union and given the size of our trade with the European Union—not least the fact that the European Union has a surplus in goods with the United Kingdom of almost £100 billion—that we would be able to negotiate an even more liberal agreement than CETA. That is of course a decision not just for the United Kingdom Government, but for the other 27 Governments, who need to look not to political ideology, but to the economic wellbeing of their own citizens.

Let me say something on scrutiny. We have committed, through our White Paper published last year, that we will ensure appropriate parliamentary scrutiny of trade agreements as we move ahead with our independent trade policy. The Government can guarantee that Parliament will have a crucial role to play in the scrutiny and ratification of the UK’s future trade agreements, and we will bring forward proposals in Parliament in due course.

I would like to provide further reassurance to the House about the Government’s ongoing commitment to openness and transparency. Indeed, we have scheduled a debate on the Floor of the House on the EU-Japan economic partnership agreement, which the Minister for Trade Policy—it is a pleasure to welcome my hon. Friend the Member for Meon Valley (George Hollingbery) to his position on the Front Bench—will be leading straight after this debate. This is already over and above the engagement required for EU-only trade agreements.

[Angus Brendan MacNeil]

Should the right hon. Gentleman be talking not only about “Parliament”, but about “Parliaments”? Last week, the International Trade Committee took evidence from John Weekes, the former Canadian ambassador to the World Trade Organisation. He was also Canada’s chief negotiator for the North American free trade agreement, and an adviser to the Canadian Government and Parliament on CETA. One of the things he was asked was whether the central Government in Canada were tempted to make a power grab, or to deal with the provinces as they stand. He said that it added a degree of complexity, but that it made for a better deal at the end to respect the provinces of Canada, rather than deal with this centrally. Should the UK Government not ape that, and should the Secretary of State talk not just about Parliament, but about Parliaments? If we reach that stage when Scotland is still in the UK, we will need such respect.

[Dr Fox]

I have considerable sympathy with the hon. Gentleman, although trade is a reserved power for this Parliament. We have to accept as a country that, in an age of increased consumer awareness of trade, the public will want a genuine consultation about any future agreements that the Government reach. That requires us to avoid some of the pitfalls that occurred with the Transatlantic Trade and Investment Partnership, when the public felt that they had not been consulted during the process and were asked to take it or leave it.

It is therefore incumbent on Governments to devise mechanisms by which there is the fullest possible consultation not only with Parliament, devolved bodies and English regions, but with civil society. The Government will set out our proposals on that in the near future. I would add that I am grateful to the Select Committee for its thoughtful work on this area, because I think there will be quite strong consensus across the House about the mechanisms of consultation, even if we do not agree with the outcomes of such consultations.

I welcome this opportunity to make the case for CETA to Parliament, and to provide an opportunity, as the Government have done on previous EU free trade agreements, for full scrutiny of this important agreement. During the implementation period, the United Kingdom will retain access to EU free trade agreements, but we will also be able to negotiate, sign and ratify new UK-only free trade agreements for the first time in more than 40 years. In doing so, we will safeguard the benefits achieved in CETA for UK businesses and consumers, and lay a foundation for an even stronger relationship in the future. Canada is a progressive, dependable and honest trading partner which is committed, as we are, to the World Trade Organisation and the international rules-based system. This is an important time, internationally, to show our commitment to a free trading Commonwealth, G7 and NATO ally. I commend this order to the House.

US Steel and Aluminium Tariffs

Debate between Angus Brendan MacNeil and Liam Fox

Monday 4th June 2018 Commons Chamber

[Dr Fox]

My hon. Friend, who knows a great deal about this subject from his time as a Defence Minister, is absolutely right. We will be looking at the displacement issue very closely to see whether safeguards are required for aluminium as well as steel. He is right about Bridgnorth in his constituency, which exported £21 million of products to the US in 2017. The irony is that the only potential competitor in that particular market is Alcoa in Warrick, Indiana, which has shown little, if any, interest in it. This situation can only lead to damage to US customers at the other end.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

As Chair of the International Trade Committee, may I take this opportunity to thank the Secretary of State for his courteous phone call to me at the end of last week outlining the situation that he found himself him? These tariffs stem from the very weird belief of the US President that if the US has a deficit with anyone, it is a result of unfair trading. Given that just about any two sets of nations find themselves in surplus or deficit with each other at times, there would be global trade chaos if the rest of the world were to follow his example of what the Secretary of State calls unjustified decision making. Meanwhile, how confident is the Secretary of State that the UK can legally take safeguarding trade defence measures if it finds itself out of the EU in March 2019, and that a trade remedies authority will be in place? My Committee has concerns about that, as I am sure he knows.

[Dr Fox]

I am very grateful to the hon. Gentleman for his comments. He is right that we have to have the TRA up and running. As he knows, we have now advertised for the most senior appointments and agreed its setting in Reading.

On the wider economic issue, the hon. Gentleman is absolutely correct. It is impossible, in an open and free trading system, that all economies will be in balance with one another. Surpluses and deficits are part of the allocation of resources that happens inside a free market. Were we all to aim for a trade policy where everybody was in balance, it would not be a free trading system. Apart from anything else, consumers would soon feel the detrimental effects of such a system.

--- Later in debate ---

[Dr Fox]

There are two interesting points to make on that tirade of nonsense. First, we do not have the legal authority in the United Kingdom on our own, because the European Union is responsible for this issue on our behalf. When we leave the European Union we will have greater freedom, but I say to the hon. Gentleman in all seriousness that escalation is not what we require. We need a proportionate response, made calmly, giving the United States time to reflect and change its mind. This is about getting the right result, not the right rhetoric.

[Angus Brendan MacNeil]

Put him in the bunker!

Oral Answers to Questions

Debate between Angus Brendan MacNeil and Liam Fox

Thursday 11th January 2018 Commons Chamber

[Dr Fox]

Clearly, there would be a major disruption in the local economy, which is why it is so important that we get that continuity. The reason the Government introduced the Trade Bill with the parameters it has is that we are looking to get stability and continuity on the agreements we already have. I reiterate what I said in the House a couple of days ago: it is not about new free trade agreements; it is about giving stability to the ones we already have, which is why I am amazed that anyone should vote against the Bill.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

What analysis has the Department done of the cost to business of complying with possible new non-tariff barriers, and what help will the Government provide companies, particularly SMEs, to understand the impact of any possible changes in this area?

[Dr Fox]

Of course we look at all possible scenarios, but I reiterate what I have said several times today: we want to see an open and comprehensive trading agreement with the European Union, because that is good not only for the United Kingdom but for the European Union. European member states are looking for their companies to have access to the UK market, just as we are doing the other direction.

Oral Answers to Questions

Debate between Angus Brendan MacNeil and Liam Fox

Thursday 12th October 2017 Commons Chamber

[Dr Fox]

We will take the same approach to New Zealand lamb as we do to all other tariff-rate quotas: allocate them on the basis of usage. As I have already explained, that will keep the market stable and mean that we are not disadvantaging New Zealand exporters or our domestic market. That is not only the fairest thing to do, but the best way to prevent the UK from being taken to dispute at the WTO, which is again to our mutual advantage.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

If the EU27 do not give the two-year extension that the Prime Minister begged for in Florence, trade barriers will rise between the UK and how many other countries? Does the Department have a number?

Home Affairs and Justice

Debate between Angus Brendan MacNeil and Liam Fox

Thursday 28th May 2015 Commons Chamber

[Dr Liam Fox (North Somerset) (Con)]

The Gracious Speech sets out a programme with both vision and ambition. The Government have three historic tasks in this term: balancing the budget; doing so in a way that does not diminish our national security; and, of course, giving the British people a say on our future relationship with the European Union. The great dividing line at the general election was between those who believed in living within our means and those who believed there was a different way. The myth peddled by the left—that there is an easy and painless alternative to what they call “austerity”—was seen through by the British public.

Dealing with the deficit is the great unfinished business from the last Parliament. Let me remind the House of the actual figures. Government debt is almost £1.6 trillion, or 81% of GDP. Debt interest is £43 billion this year, which is more than 3% of GDP and more than 8% of Government tax income. Almost a tenth of what people pay in their taxes goes towards debt interest. This is a profoundly immoral policy, because it says that the generation coming after us should pay for our spending today. It is a wholly unacceptable way for the country to proceed economically.

I do not believe that overspending by more than £87 billion, as we are this year, fits anyone’s definition of austerity. It will not be easy to reduce our deficit, given the plans we have set out, quite understandably, on such things as the pension lock and the NHS. However, it is not just about shrinking the size of the state; it is about which state we are shrinking. In my book, we should not reduce the security of the state to pay for the welfare state.

[Mr MacNeil]

The right hon. Gentleman is painting an accurate picture of the disastrous state of UK finances and the mismanagement of them over the years. Will he tell us when the UK last did not have a black hole in its annual current account?

Defence Treaties (France)

Debate between Angus Brendan MacNeil and Liam Fox

Tuesday 2nd November 2010 Commons Chamber

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

In the Scottish National party, we watch these treaties with France with great interest, echoing as they do, beyond the entente cordiale to 1295 and what became known as the Auld Alliance between Scotland and France. Again, that was about two sovereign nations being prepared for any belligerence from a neighbour. In the modern day, perhaps it is a glimpse of things to come when independent countries work together to keep their sovereignty. Although I hope to see the French in increasing numbers in the Hebrides range, is there any possibility that we might see the French air force providing Nimrod cover?

[Dr Fox]

We will be looking across the board at where we can co-operate. To hear those who claim to represent Scotland moving from the Auld Alliance to a pathetically anti-NATO posture is one of the saddest things in contemporary politics.