Trade Bill

Antony Higginbotham Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Wednesday 20th May 2020 Commons Chamber

[Antony Higginbotham (Burnley) (Con) [V]]

I welcome the opportunity to speak in this debate, as it represents a major step forward in the UK’s journey to reclaim its role as the independent, global trading nation we all want it to be, delivering on a pledge I made to my constituents and the Government made to the country. Burnley has been a beneficiary of free trade: our largest employers include Safran Nacelles, of France, and Paradigm Precision, of the United States, and only a few weeks ago, Ultimate Visual Solutions, a local business, worked with the Department for International Trade to secure its first order in Vietnam—I am sure it will be the first of many.

Sadly, however, our area has lost jobs in recent weeks. Lancashire is the fourth largest manufacturing cluster for aerospace in the world, and that is one of the most global of sectors, in terms of both the supply chain and the customers it serves. The sector has been hit hard, and our challenge is to make sure that free and fair trade helps to spur our recovery on, getting the hundreds of thousands of businesses that do not currently export exporting, and generating economic growth and the jobs that go with it. I am committed to doing everything I can to make sure that is the case in Burnley. I was particularly pleased to hear the Secretary of State mention the textiles industry, as anyone who knows Burnley well will know that it was once the centre of global textiles and continues to have a thriving industry, which I know can reclaim that title once again.

For international trade to work, we need to ensure we have a safety mechanism—a way of dealing with those countries that say they trade freely but seek advantage through anti-competitive means. The proposal in this Bill for a Trade Remedies Authority is therefore welcome. That body will need to have the teeth required to deal with subsidies, dumping and any other measures used to distort the market.

As we take this step again towards being an independent, global trading nation, it is right that we also consider why trade is important, and not just why we are supporting it. The simple truth remains that free trade creates free people; it has done more to lift people out of poverty than any other measure, and it continues to drive global economic growth. That is why the UK initially joined what was then the European Economic Community; we saw, and continue to see, the benefits of striking trade relationships with like-minded countries. Having left the EU, it is important for us to look at the agreements struck on our behalf over the past 40 years to identify whether to carry them over. This Bill allows us to do that. I congratulate the Secretary of State and the whole departmental team for the way in which they have done this; 48 of these agreements are ready to be rolled over, securing more than £110 billion-worth of trade.

I have heard some people criticise the way in which the Government are planning to roll over some of the agreements, including the one with Japan, as though trying to be more ambitious, liberalising more trade and securing thousands more jobs in the UK were, in some way, a bad thing. The message from the House in this debate should be clear: the Government have our full support in trying to strike the best trade deals. We should roll them over where we can, where it is in our interests, but we should also build on them where we can, getting the best for Britain, because as we emerge on to the world stage of trade, we should be the leading light. I welcome the Government’s transparency as to where they seek to do that. Last week, we got full sight of the negotiation objectives for the UK-Japanese negotiations, just as we have done in respect of the US ones. The Secretary of State has made herself available to all colleagues on many occasions to discuss the UK-US free trade agreement, and I am sure that similar time will be made available to discuss the Japanese negotiations. Committing to using the affirmative procedure for any secondary legislation required to implement these continuity agreements ensures that there is ample time for debate in both Houses.

We also need to ensure that our trade agreements—those that are getting rolled over and those we negotiate in the future—are fit for the 21st century. Where we can negotiate new deals that allow UK technology companies to operate globally, including through innovative regulatory mechanisms such as the FinTech bridge, we should do so. Chapters on that, along with those on SMEs, will allow our businesses not just in Burnley but beyond to scale up rapidly in the global market, delivering the economy of the future.

I warmly welcome the Bill. It puts the UK back on the global trading map with an independent trade remedies body, and it provides the mechanism needed to roll over and expand existing trade agreements. For that reason, I look forward to voting for the Bill later.

Trade Bill (Second sitting)

Antony Higginbotham Excerpts

Committee stage & Committee Debate: 2nd sitting: House of Commons
Tuesday 16th June 2020 Public Bill Committees

[The Chair]

It was a slow burn, but I have to say that the witnesses have excited the Committee, and I am getting lots of people wanting to get in, so if everybody can try to be quite crisp in their questions and answers, it would be appreciated. Antony Higginbotham next.

[Antony Higginbotham (Burnley) (Con)]

Q This question is probably more for you, Mr Warren. When we talk about trade remedies and defences, a sector we always go to is steel. Has an assessment been made of the impact of not having a Trade Remedies Authority? Has any assessment been made, for example, of the number of jobs that could be at risk if the body was not set up by 1 January?

Richard Warren: As Ian Cranshaw noted earlier, we have been on this journey for quite some time. We first started having discussions on the possibility of a Trade Remedies Authority at the back end of 2016. At that stage, there obviously was uncertainty. I do not think the UK Government had thought about—no one in the UK had—the need to establish a Trade Remedies Authority. Obviously, after the Brexit vote in 2016, that became immediately apparent to the UK steel industry. So if there has been an assessment done, I suppose it was an unofficial assessment through the evidence that we provided and the discussions we had with Government, and it became evident that this was an absolute must and there was no question that the UK would need an authority. I am happy to provide further data or evidence to the Committee afterwards.

If you look at the impact that trade remedies have had on imports and on dumping into the UK, the evidence speaks for itself. It is clear. China was exporting perhaps 500,000 tonnes to the UK in 2015-16. That has been reduced to 100,000 tonnes because of the measures that have been in place on the key steel products that it was found to be dumping and that were subsidised by the Chinese state. If that had gone on—it was a major cause of the difficulties that the steel industry was undergoing in 2015-16, when we saw a major restructure of the steel industry and new ownership—and those measures had not come in, the situation would have been far more dire, and the modest recovery that the steel industry saw in 2017-18, which has obviously been knocked off course by recent events, certainly would have been far slower and far more fragile.

[Drew Hendry]

Q Mr Cranshaw, on a comment you made earlier about a deal with the EU, including an agreement on data sharing, have you done any work on the implications, resources or costs of a failure to get such a deal?

Ian Cranshaw: In chemicals, the REACH regulation is the key documentation, and that is stored by ECHA. We would accept that if you had to design a system now, it probably would not look a lot like what it does, but here we are 13 years after the ECHA database and the REACH regulations were introduced. UK companies alone have spent upwards of £600 million in furnishing that information on to the database, so you can appreciate the nervousness that, if we do not negotiate a deal with the EU that gives us access to that data, we will be back to a point where UK companies will have to rebuild a new database under UK REACH. There is no suggestion from DEFRA that we would move away from REACH. Globally it is seen as the gold standard for chemical regulation, so it is critical that we secure access to the data.

It is worth pointing out that UK companies are the second largest contributor of data to the information held on the ECHA database. Not only have our companies paid for the ability to use those chemicals, but, through their own innovation, research and capability, they have contributed significantly to the value of that database. It is crucial that we secure access to the data.

Trade Bill (Third sitting)

Antony Higginbotham Excerpts

Committee stage & Committee Debate: 3rd sitting: House of Commons
Thursday 18th June 2020 Public Bill Committees

[Antony Higginbotham (Burnley) (Con)]

Q Mr Lowe, that was really helpful, thank you. I want to turn to the Trade Remedies Authority, if I may. Can you outline your thoughts on whether there are any downsides to our having a Trade Remedies Authority and joining the global rules-based system? If we did not have one, what might be the impact?

Sam Lowe: Sorry, you cut out at the end.

[Antony Higginbotham]

It was just about what the impact of our not having a TRA might be. Have you given any thought to that?

Sam Lowe: We do need a Trade Remedies Authority. As it stands, this is dealt with at EU level, and when it comes to disputes over trade—be it because we are worried about unfair subsidies abroad, or worried about products being dumped on our markets or being sold at an artificially low price—we need a means to investigate and remedy them. In the interim, I believe the approach is that following our exit from the transition, we are just going to continue with the EU trade defence measures. However, those measures might not be justifiable if we are only taking into account the UK context, so they are all going to need to be reviewed.

I do have some concerns about the practicalities of the Trade Remedies Authority. First, I believe it has lost two provisional chief executives already, and it is still looking for a new one. Secondly, speaking as someone who comes from south Wales, from Llanelli—I am not an “everything needs to happen in London” person—I am not convinced that it was a sensible decision to put it in Reading and offer the salaries it does when it is trying to attract trade lawyers with vast amounts of experience. My fear is that it will create a false economy: we will end up paying law firms to do it all for us for a while as we build up the internal capacity, and then because of the pay constraints, the people who have learned how to do the job will be able to leap into these law firms to get paid a lot more. That may point to a broader problem with retention in the civil service.

[Gareth Thomas]

Q Mr Lowe, thanks very much for coming this morning. Could you talk a little bit about the difficulties there have been in getting continuity agreements with Japan and Canada completed, and what big issues you expect to arise with these deals, which you described as effectively new trade deals?

Sam Lowe: Canada is a long story, in that it links back to the previous iteration of the Government’s no-deal tariff schedule and its publication. When we put forward a tariff schedule that was very liberal and offered a lot of access to everyone, the Canadians looked at it and said, “We do not want to roll over any more, because you are giving the whole world for free what we had to pay for via our trade agreement”—remember, they also had to open up their market in that context. I believe that the more recent update to the new global tariffs has changed that calculation slightly on the Canadian side, and will lead to a renegotiation.

The reason that the Japanese were not able to roll it over from a domestic point of view was that from their perspective, they had liberalised their agriculture sector to a great extent over previous years—through their agreement with the EU, through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and also through their more recent agreement with the US. If they were to roll the agreement over to the UK, they would be giving extra agriculture access to their market on top of all that, but for free. That was just not politically doable within the Japanese context, so it led to the need for this renegotiation.

Turning to the contentious issues, I suppose that with Canada we could return to some of the TTIP issues around investment all over again. That is also the case with Japan. I think both those deals are probably doable by the end of the year under certain circumstances, but you will notice that the UK has had difficulty replicating agreements with the bigger countries. It has not been so difficult with some of the smaller countries, but if you think about the ones that have not been done yet—Japan and Canada, but also Mexico and Ukraine—many of those countries want to be certain of what the future UK-EU relationship looks like, and what concessions the UK offers the EU, before finalising anything with the UK.

Trade Bill

Antony Higginbotham Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Lady has exceeded her time by quite a long way. I call Antony Higginbotham.

[Antony Higginbotham (Burnley) (Con)]

It is a pleasure to follow the hon. Member for Upper Bann (Carla Lockhart). Having spoken on Second Reading and been a member of the Public Bill Committee on the Bill, it is a pleasure to speak today. I intend to speak mainly about new clause 4, but first I want to say that it is worth the House remembering that this is a continuity Bill, designed to give confidence and continuity to the hundreds of thousands of businesses in this country that export to many, many countries, from Switzerland to South Korea to Chile, that they can continue to do so. I also want to voice my agreement with everything my hon. Friend the Member for Witney (Robert Courts) said about how many of the amendments tabled, particularly those to do with standards, are actually anti-trade measures that will do nothing to support our exporters and everything to kill off trade.

In relation to new clause 4, it is important that we remember and that our constituents are aware that Members of Parliament already have and will continue to have the ability to scrutinise international treaties that the Government negotiate. The Constitutional Reform and Governance Act gives all Members of Parliament those powers, so under the law as it already stands, if we are not happy with the contents of an international treaty, it will not be ratified. Also, I cannot subscribe to the view that Parliament needs to be more involved in negotiations, because I, like all of my constituents in Burnley and Padiham, watched the scenes in this place not that long ago when Parliament tried to be involved in negotiations, and instead of helping, it hindered them. This place was paralysed and the country was paralysed. Votes held on options were not helpful at all. I do not want to see that happen again, and in December my constituents voted to end the paralysis and embrace the new opportunities that are available to us.

When we were a member of the European Union, no MP in this place was involved in trade agreements, but since January the Secretary of State for International Trade and all her ministerial team have made sure that we are involved, with consultations on the parameters of free trade agreements and objectives published in advanced. Members of this House have engaged not just through parliamentary questions but directly. I have been able to speak to Ministers about the objectives we have, the benefits they will bring to my constituents and where my concerns are, and I have every intention of continuing to do so.

I will support this Bill and vote against the amendments. We need to embrace the opportunities and move with speed if we are going to embrace the new world.