EU-Singapore Free Trade Agreement (FTA) AND INVESTMENT PROTECTION AGREEMENT (IPA)

Chris Leslie Excerpts

Monday 10th September 2018 General Committees

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

I had not intended to speak, but I have a number of criticisms of the Government. On the Brexit process, for instance, whether we keep existing free trade agreements or make new ones, will it be possible for agreements to be rolled over in time for exit day? I have real doubts about the Department’s commitment to securing the arrangements for that.

The contribution by my hon. Friend the Member for Brent North prompts me to query the conclusions he has reached. He takes a similar stance on this agreement as he took to our trade agreements with Canada and Japan. As a party, we cannot take a purist, oppositionalist view to all potential trade agreements. No trade agreements are perfect. They all involve some degree of compromise. By no means do I say that the Singapore-European Union free trade agreement is perfect—I am sure, were we all individually in charge, we would all have far greater insight than the negotiators and be able to secure a far better deal—but I am worried that there are real firms, real jobs and a real economy in the real world that may be affected if we turned our face against all proposed trade agreements. It is therefore not responsible to oppose a motion that simply welcomes the proposed signature and conclusion of the EU-Singapore free trade agreement.

The motion notes the signature of the IPA. As I understand it, the Singapore-EU IPA is similar to the Canadian arrangement and far superior to that which was mooted in the proposed TTIP agreement with the United States. A number of objections were made to that, but as I see it, the proposal we are debating is more transparent and would have less impact on public procurement. We have to weigh up this whole question in the round.

At best, my hon. Friend may not be seeing the wood for the trees. If we turn our face against all future trade agreements, we may inhibit the trading gains and growth that we may be able to secure for our constituents. At worst, we are allowing the anti-trade ideological zeal from some quarters on the left to infect us against free trade arrangements more generally. It would be terribly damaging to allow the Labour party to get into that stance.

[Barry Gardiner]

I have delayed the Committee quite enough, so I do not propose to intervene for long, but I hope my hon. Friend understands that I made it clear that we in the Labour party would support the free trade agreement element of what we are discussing. We believe the Government have not handled the matter correctly. We believe that the impact assessment should have been much better, and that a number of questions rightly raised by the European Scrutiny Committee, which the hon. Member for Mid Dorset and North Poole put forward, should have been addressed much earlier. Having said that, we would support the free trade agreement element. There is no dispute whatsoever between my hon. Friend and I on that matter. We must enhance trade and let business in this country thrive, for the sake of our economy, jobs and growth.

However, the Government bundled the IPA in this way. They could have separated it out. In fact, the European Union has tried to separate these things out. This Government have not. That is their failing. They cannot expect us to swallow something that is, in policy terms and in logical, logistical and chronological terms, legally problematic along with the free trade agreement, which otherwise we would have accepted.

[Mr Leslie]

I heard my hon. Friend’s argument the first time. As I said, we can take an absolute view—that unless we get 100% perfection in every area, we will vote against things—but we also need to take a view on our responsibilities with our vote. If my hon. Friend’s very powerful speech persuaded all Committee members to take the same view that he did, the UK would turn down the ratification of the EU-Singapore free trade agreement and the British contribution, as we try to negotiate amicable and cordial relationships with the rest of the EU, would be to say “Get lost!” to the EU-Singapore trade arrangement. At this particular time, it would not be prudent, diplomatic or wise, especially as we are leaving, for the UK to sabotage the EU’s trade arrangements with Singapore. I happen to think that we should support a Singapore-UK free trade agreement in these terms—I am glad to hear him say that. Obviously, I would want that to be rolled over.

This agreement is an important link to the ASEAN economies; it has net benefits for our constituents. As Vic Feather, the famous trade unionist from Bradford, once said, “If your boy comes home from school with 99 out of 100, don’t hit him over the head.” Sometimes we need to accept that there are gains to be had from being responsible and taking the best that might be on offer. Sure, it could be better and improved, but a responsible approach to trade at this particularly sensitive time in our negotiations with the European Union would not be to block the EU-Singapore trade deal. My hon. Friend may be right that it is a bit mischievous for the Government potentially to wrap these things together in the motion, but the motion is simply a “take note” motion. There are other ways and means of raising these particular issues. I am not minded to oppose the motion before the Committee.