EU-Japan Economic Partnership Agreement

Bob Stewart Excerpts

Tuesday 26th June 2018 Commons Chamber

[Stewart Hosie (Dundee East) (SNP)]

I welcome the new Minister to his place. I want to start by making an observation about trade deficits and surpluses, which seemed to get the hon. Member for Brent North (Barry Gardiner) into a bit of a pickle. They will not be solved by trade agreements alone, and they will not be exacerbated by trade agreements alone. They will not be resolved by general protectionism. They will be resolved, if they are deemed a problem, by Scottish companies, UK companies and EU companies making better products, marketing them better, designing them better and manufacturing them more cheaply. All trade agreements do is facilitate trade, and that is why this Japan agreement, which is mercifully free of an unacceptable investor-state dispute resolution mechanism, is very much to be welcomed.

I say that because Japan is a massively important market for Scotland. Indeed, the value of Scottish food and drink exports has surged to almost £100 million a year. Japan is Scotland’s 13th largest food and drink export market. Scotch whisky sales alone are up to some £76 million, making Japan the 14th largest global market for Scotch whisky. There are 85 businesses in Scotland with parent companies registered in Japan, with 210 local sites employing more than 6,000 people, with a turnover of £1.5 billion. That represents an increase of some 520 local employees on the 2015 figures and an additional £187 million of Scottish turnover. The more we can encourage investment from Japan into Scotland, and the more we can sell directly from Scotland, the UK and the EU to Japan, the better.

[Bob Stewart (Beckenham) (Con)]

I assume that the hon. Gentleman is saying that his party is fully supportive of and enthusiastic about this deal.

[Stewart Hosie]

I am saying that we see absolutely nothing in the Japan deal that would cause us to vote against it, which, on balance, is a good thing.

We very much welcome this. There was a bit of a bun fight in the previous debate on CETA, but this is a much calmer affair, and it allows me to speak for far less time, which makes me very happy indeed. I agreed with much of what the previous Minister, the right hon. Member for Chelsea and Fulham (Greg Hands), said about global free trade. I was also very taken by the example he gave of Harley-Davidson, which is important in terms of the Japan deal and other trade deals. We have seen the US tariffs on imported steel and aluminium increase Harley-Davidson’s costs in the States by around $30 million. We have seen the reaction to President Trump’s tariffs lead to an increase in the cost of an exported Harley-Davidson to Europe of around $2,500. These tariffs in and out are bad, and they are counterproductive. I hope that people get calm quickly and that these things are wound back, because tariffs do not protect jobs. Tariffs destroy trade and ultimately weaken jobs. [Interruption.] I am glad that the Conservatives are saying that this is an excellent speech.

I am going to say that again in a different way, in the context of the Japan agreement, by quoting the Front Benchers’ favourite European, Jean-Claude Juncker. [Interruption.] I thank the Minister for that marvellous introduction. Jean-Claude Juncker said:

“The step we are taking today paves the way for our companies and citizens to start benefitting from the full potential of the Economic Partnership Agreement with Japan already in the coming year.”

He went on to say—this is the philosophical bit where there is pretty much broad agreement, apart from the proto-Trumpian economists on the Labour Front Bench—that the agreement

“sends a clear and unambiguous message that we stand together against protectionism and in defence of multilateralism. This is more important than ever.”