13 Chris Leslie debates involving the Department for International Trade

No-deal Brexit: Schedule of Tariffs

Chris Leslie Excerpts
Monday 7th October 2019

(5 years, 1 month ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (IGC)
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(Urgent Question): To ask the Secretary of State for International Trade if she will set out the final schedule of import tariffs proposed in the event of a no-deal Brexit.

Conor Burns Portrait The Minister of State, Department for International Trade (Conor Burns)
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I am grateful to the hon. Gentleman for his question.

On 13 March, the Government announced that they would implement a temporary tariff regime in the event of a no-deal Brexit. This regime would apply equally to all imports that are not subject to alternative trade arrangements and would apply for up to—I stress, up to—12 months while a full public consultation takes place to inform long-term tariff arrangements. The Government would prefer to leave with a deal and will continue to work energetically and with determination to get that better deal. This will require the European Union to show the same spirit of compromise that my right hon. Friend the Prime Minister is demonstrating in his engagement with our European friends and allies.

As the UK leaves the EU, the Government are stepping up their preparations to get the UK ready to trade if there is no deal. The temporary tariff regime will maintain open trade on the majority of UK imports, helping to support consumers, business supply chains and sensitive sectors of the UK economy. Due regard has been given to the five principles set out in the Taxation (Cross-border Trade) Act 2018: the interests of consumers in the UK; the interests of producers in the UK; the desire to maintain and promote external trade of the UK; the desire to maintain and promote productivity in the UK; and the extent to which these goods are subject to competition. It reaffirms our commitment to become a free-trading nation. It realises the benefits of an independent trade policy to support increased trade and investment with partners new and old around the world and increased choice for British shoppers.

At the same time, Her Majesty’s Government recognise the importance of retaining some tariffs. Tariffs would therefore apply on just over 10% of imports, supporting sectors facing unfair global competition, mitigating otherwise significant adjustment costs for the agricultural sector, supporting the strategically important automotive sector and maintaining our commitments to developing countries. Preferential access to the UK market is important for our developing country partners, and tariffs are being retained on a set of goods, including bananas, raw sugar cane and certain kinds of fish, to demonstrate the Government’s ongoing commitment to countries in the developing world. During the article 50 extension, the Government have remained responsive to the concerns of business and have reviewed the tariffs that would come into effect if the UK left the EU without a deal.

To answer the hon. Member for Nottingham East (Mr Leslie), the Government will publish the final tariffs shortly. It would not be appropriate for me to comment on any amendments being considered prior to that announcement. As he will understand from his former guise as shadow Chancellor, to do so would be irresponsible. The Government will ensure that Parliament is informed as soon as is practically possible once a final decision has been made.

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Chris Leslie Portrait Mr Leslie
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Thankfully, the Benn Act will safeguard Britain from a no-deal Brexit, but with the Minister still insisting that, in only 24 days’ time, we might somehow crash out on a World Trade Organisation basis, does it not beggar belief that the Government have still not got around to publishing the final schedule of import tariffs for that eventuality? The Chancellor of the Duchy of Lancaster has said that what we have had is not the final word, and he has repeated that today.

At present, we can import from and export to the EU without any customs duties applying, but that could be about to end. The consequences for so many sectors of our economy, including farming, manufacturing and engineering, are massive. I ask the Minister: how are businesses supposed to “get ready”, as the £100 million advertising campaign suggests, if Ministers still cannot tell us the tariffs that will be imposed and seem incapable of even the most basic competent level of preparation?

The CBI director general Carolyn Fairbairn rightly asks why there is no time to consult industries about what tariffs will be applied. Even if we put aside the enormous non-tariff barriers of veterinary inspections, border checks and certification, are businesses to assume that the draft tariffs that were put out in March will still apply? Some of the import tariffs that Ministers are rumoured to be planning are really high. For example, if a British haulage company needs to buy an HGV truck from abroad, should it plan to pay an additional 22% on the cost or 10% because of the Government’s tariff plan? Will my constituents have to add 10% to the cost of buying a new car? What about the UK energy and bioethanol sector? Will customers have to pay the 4.7% tariff on fuel imported from the EU, as they currently do for fuel from beyond the EU? If not, will that not push the British energy sector into a competitive disadvantage when the 4.7% is imposed on its exports? There are container ships full of goods, components, textiles and clothing that have already been dispatched from the far east and elsewhere, heading for arrival at our shores at the end of the month. Will they face tariffs when they get to Britain, or not?

If British businesses suddenly have to start paying tariffs to export into Europe, what will the reciprocal tariffs be on goods imported into our country? How will British farmers compete with foreign produce when, for example, their lamb will face a 48% tariff when selling into Europe, their cheddar 57%, their poultry 37%, their wheat 53% and their beef 84%? The National Farmers Union is deeply concerned about the risk of foreign producers undercutting domestic production. So can the Minister at least do us the courtesy of setting out the rationale and strategic logic behind his decisions? Where is the parliamentary authority for imposing these tariffs and taxes? When will there be a vote in the House of Commons as the customs legislation requires?

Given that the Government now want a customs frontier in Ireland, will the Minister confirm that goods coming from the Republic into Northern Ireland will have tariffs added on? How does he think people and businesses in Northern Ireland will respond to the imposition of a tariff border in that way?

Would it not be far better to accept that erecting reciprocal tariffs between the UK and the EU is a fool’s errand—an endless cycle of costs and bureaucracy where everyone loses out in the end? Will the Minister at least have the good grace to acknowledge that, by leaving the single market and the customs union, British businesses and customers will be worse off, and for no good reason?

Conor Burns Portrait Conor Burns
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I said in reply to the hon. Gentleman’s first question that it would be irresponsible to go through the entire list of proposed tariffs prior to the formal announcement by the Government, which, as I indicated to him, he may not have to wait all that long to see. He spent the majority of his subsequent questions asking me to do that which I had said it would be irresponsible to do and I will not be drawn down that road, however tempting it is.

I thought the hon. Gentleman’s subsequent questions underlined the desirability of there being a deal between the United Kingdom and the European Union as we seek to leave. I hope that in the days ahead the EU will respond in the same spirit that my right hon. Friend the Prime Minister has demonstrated and show flexibility and compromise to get a deal that will pass the House. Then the tariff announcements might become redundant. That is very much our hope. The hon. Gentleman said that he found it extraordinary that so long had passed and we had yet to publish this. Many people in my constituency and around the country find it equally astonishing that it is more than three years since the UK voted to leave the EU and still people in this House are determined to thwart that democratic decision.

The hon. Gentleman asked specifically about the situation on the island of Ireland. I am happy to confirm, as I think he will know, that there will be no tariffs on goods coming from the Republic of Ireland into Northern Ireland. On parliamentary process, he will know exactly how that works. The House will have the opportunity to have its say within 60 days of the tariff regime coming into place.

Trade Remedy Measures: UK Interests

Chris Leslie Excerpts
Monday 25th February 2019

(5 years, 8 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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As I said in my statement, if we are unable to get the Trade Bill through, which provides legal underpinning of the TRA, we will use mechanisms under the Taxation (Cross-border Trade) Act 2018, but I would want to see the Trade Bill go through as soon as possible, because it gives us the best possible legal underpinnings for the mechanisms that we are putting in place.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Ind)
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When we talk sometimes about national security, we think about military and defensive measures. This is about our economic security and businesses that are potentially under threat of being undercut by unfair subsidies from China or elsewhere, putting our workforce and their livelihoods on the line. Will the Secretary of State give us an absolute guarantee that our economic security is not going to be weakened after 29 March? It is clear that the haphazard way in which he has not managed to give the Trade Remedies Authority a proper, legal basis yet makes this look as though it is all held together by a box of matches and sticky-back plastic. We need strong defences for our country and surely that has to include strong economic defences as well.

Liam Fox Portrait Dr Fox
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The hon. Gentleman is absolutely correct. We do need to look after our economic interests, which is why we need a Trade Remedies Authority that is able to put these trade remedies in place and review them. We did not vote against the establishment of the Trade Remedies Authority; the Opposition parties did so by voting against the Trade Bill in what would otherwise be an act of economic vandalism, were we not stepping in to ensure that businesses such as steel and ceramics are properly protected.

EU Free Trade Agreements

Chris Leslie Excerpts
Thursday 24th January 2019

(5 years, 10 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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(Urgent Question): To ask the Secretary of State for International Trade if he will make a statement on maintaining EU free trade agreements after the UK leaves the EU.

George Hollingbery Portrait The Minister for Trade Policy (George Hollingbery)
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As a member of the European Union, the UK currently participates in around 40 free trade agreements with more than 70 countries. These free trade agreements cover a wide variety of relationships, including economic partnership agreements with developing nations; association agreements, which cover broader economic and political co-operation; and trade agreements with countries that are closely aligned with the EU, such as Turkey and Switzerland. Of course, more conventional free trade agreements are also part of the package.

Businesses in the UK, EU and partner countries are eligible for a range of preferential market-access opportunities under the terms of the free trade agreements. Those opportunities can include, but are not limited to, preferential duties for goods, including reductions in import tariff rates across a wide variety of products, quotas for reduced or nil payments of payable duties, and quotas for more relaxed rules-of-origin requirements; enhanced market access for service providers; access to public procurement opportunities across a range of sectors; and improved protections for intellectual property.

For continuity and stability for businesses, consumers and investors, we are committed to ensuring that the benefits I have outlined are maintained, providing a smooth transition as we leave the EU. The Department for International Trade, the Foreign Office and the Department for International Development are working with partner countries to prepare to maintain existing trading relationships.

Chris Leslie Portrait Mr Leslie
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With just 64 days to go, will the Minister confirm that not only is there the well-known Brexit risk of catastrophic disruption to 44% of our country’s trade, but now, on top of that, a further 12% of our trade could be thrown into chaos because of the Government’s failure to roll over our 40 trade agreements with 70 countries around the rest of the world in time for exit day?

Does the Minister recall the promise made by his Secretary of State at his party conference in October 2017, when he boasted:

“I hear people saying, ‘Oh, we won’t have any’”

free trade agreements

“‘before we leave.’ Well, believe me, we’ll have up to 40 ready for one second after midnight in March 2019”?

Was that bragging not made worse when the former trade Minister Lord Price tweeted falsely in October 2017:

“All have agreed roll over”?

Will the Minister explain why expectations were raised so high back then, when today’s reality is so dangerously disappointing? Can he confirm that the leaked memo reported in the Financial Times was accurate, and that he has been warned by his officials that most of the deals Britain is covered by will lapse because there is no transition period to keep Britain under the EU umbrella once Brexit occurs? Does he agree with the Government official quoted in the FT that

“Almost none of them are ready to go now”?

As well as the 40 free trade agreements, there are more than 700 other trade-related treaties and mutual recognition agreements, so when will we get an accurate update from the Government on how many of those will lapse in March as well? Some 2% of our trade is via the European economic area free trade agreement, with Norway and Iceland, which has still not been settled for roll-over; Canada accounts for 1.4% of our trade; Turkey, with which we currently have a form of customs union, accounts for 1.3%; South Korea accounts for 1%; and Switzerland accounts for 3.1%. All these and more add up to £151 billion of export and import markets. Will the Minister confirm that if we do not roll over the trade arrangements we enjoy by virtue of our EU membership, the full range of World Trade Organisation tariffs will start to apply?

What is the real situation in respect of Australia and New Zealand? Are the press claims that a full free trade agreement has been signed accurate, or are these just mutual recognition agreements being passed off as FTAs? On Switzerland, can the Minister place full details of the allegedly initialled agreement in the Library of the House? It is still not clear which aspects of the existing UK-Swiss relationship are due to be replicated. Will UK-based firms continue trading into Switzerland on exactly the same basis, including the free movement of people, or are there differences? For example, can he rule out tariffs on imported Swiss goods from March?

If British cars are exported, could they face 10% WTO tariffs? What will the tariffs be on Norwegian salmon, Canadian maple syrup, and food and veg from Turkey? When will the Government start telling Parliament about these things? Is it not the truth that all these countries first want to know what the UK’s relationship will be with our largest trading partner, the EU, and that we have little hope of pinning down brand new agreements until we have pinned down that agreement? Will the Minister face reality, slay these fantasy unicorn promises, and admit that Brexit is not going well and presents a clear and present danger to the free trade agreements our economy desperately relies on?

George Hollingbery Portrait George Hollingbery
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That was a pretty long shopping list, and I am not in a position to answer all the hon. Gentleman’s questions, but I will make one point. I told him in Committee back in November that there was a wide range of reasons why some of these agreements had been challenging in many instances. For example, there have been changing incentives. If this House cannot make up its mind on what Brexit looks like, it will obviously be difficult for some of our interlocutors to decide whether we will be leaving the EU on 29 March. That said, a responsible Government make plans for any eventuality, and we are working extremely hard to make sure that the 40 agreements we have in place are available to those companies that use the preferences they guarantee.

I told the hon. Gentleman earlier that I believed the majority of these agreements would be in place by 29 March, and I continue to believe that, but it would not be appropriate to go into further details on an individual country basis, because these conversations are necessarily confidential, and our partners wish them to be confidential. To go into them, therefore, would not be proper. I am very happy to tell the House, however, that I believe we will have the majority of agreements rolled over, and it is absolutely our objective to have them all rolled over.

Finally, one small detail worth clearing up—it has been a matter of some press speculation—is that the Swiss agreement does not include any provisions on free movement.

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Rachel Maclean Portrait Rachel Maclean (Redditch) (Con)
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There is a deal on the table that the Government have negotiated with the EU, and it provides a transition period that would provide certainty for all these trade agreements to be completed in time for our exit. It is my understanding, although I have not checked his voting record, that the hon. Member for Nottingham East (Mr Leslie), who has posed this urgent question, voted against that deal.

Chris Leslie Portrait Mr Leslie
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Which one?

Rachel Maclean Portrait Rachel Maclean
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The meaningful vote.

Chris Leslie Portrait Mr Leslie
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indicated assent.

Rachel Maclean Portrait Rachel Maclean
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The hon. Gentleman voted against having a transition agreement because he voted against the deal. Does the Minister agree that it might be better for the hon. Gentleman to pose his urgent question to the leader of his own party and ask him why he did not engage in talks with the Prime Minister to get through the deal that would provide certainty for our businesses?

Oral Answers to Questions

Chris Leslie Excerpts
Thursday 20th December 2018

(5 years, 11 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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Ministers have been engaging with all 11 CPTPP members. I have recently spoken to a number of Ministers, including from Singapore, Mexico, Canada, Australia, New Zealand and Japan, and the positive response to our engagement has been demonstrated by the supportive comments from some of the leaders of those countries—including Prime Minister Abe of Japan and Prime Minister Morrison of Australia—all of whom are very keen, as Prime Minister Abe said, to welcome Britain with open arms as soon as possible.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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But isn’t the problem for the Secretary of State that these potential new free trade agreements will not be concludable until we know what the UK’s trade relationship with the EU is? Does he not now have to admit that it is not possible, realistically, to sign or conclude free trade agreements with all those other countries, because it will be several years—maybe two, three or more—before we conclude our trade arrangement with the EU?

Liam Fox Portrait Dr Fox
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Of course, the best thing that any of us could do is ensure that we have an agreement as soon as possible with the European Union, which Members of this House will be able to contribute to. Of course, if the House decides that we are not to come to an agreement with the European Union, there will be adverse consequences.

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

Chris Leslie Excerpts
Monday 10th September 2018

(6 years, 2 months ago)

General Committees
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Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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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 Portrait Barry Gardiner
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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.

Chris Leslie Portrait Mr Leslie
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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.

Trade Bill

Chris Leslie Excerpts
3rd reading: House of Commons & Report stage: House of Commons
Tuesday 17th July 2018

(6 years, 4 months ago)

Commons Chamber
Read Full debate Trade Bill 2017-19 View all Trade Bill 2017-19 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 17 July 2018 - (17 Jul 2018)
John Bercow Portrait Mr Speaker
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Magnificent. We are very grateful to him.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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This group of amendments is about parliamentary scrutiny, and in a way it is a shame that some on this subject are in later groups. The key thing I want is to ensure that appointments to the Trade Remedies Authority are subject to confirmation by the International Trade Committee in the same way that the Treasury Committee has confirmation hearings on the Monetary Policy Committee and the Financial Policy Committee.

New clause 12 gives me a little tickle, a little laugh, because it says that Ministers will now come to report to the House when there are any significant differences in the free trade agreements we have as a member of the EU that will be rolled over. Apparently the agreements will be cut and pasted, and it was only at last year’s Conservative party conference that the Secretary of State for International Trade himself promised that, one second after midnight, all 40 agreements will be rolled over and available from March 2019. Well, it has not quite been going his way, because the Government have not got a single other jurisdiction to sign up legally to doing that.

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John Bercow Portrait Mr Speaker
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Order. Two-minute speeches are now required.

Chris Leslie Portrait Mr Leslie
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Surely new clause 17 is a no-brainer. If we are going to preserve anything, we must surely keep the frictionless flow of medicines and treatments for our national health service going. If ever there were an example of an ideology getting in the way of common sense, it would be that of a hard Brexit attitude physically placing itself at the border in the way of the free flow of those medicines. We know that 45 million packages of medicines cross that border every month. That is how essential this is, so new clause 17 has to be supported.

New clause 18 has been tabled by the hon. Member for Wimbledon (Stephen Hammond). I have to say to him that he is being incredibly generous to the Government in relation to this proposal. He is giving them the benefit of the doubt on the free trade area in goods. It is true that, whatever we get, the lowest common denominator will be a free trade area in goods. We will have to get that. But frankly, I am really quite surprised by the way in which some Conservative Members have been treated by the Government in respect of the ERG amendments—all of which were accepted without any objection—when some of them are trying their best to preserve the Prime Minister’s Chequers plan. Those Conservative Members are being very generous, but I think it is reasonable to put in place a safety net in the form of a customs union in January. I hope that, on this one occasion, we can put party politicking to one side and do the right thing for our country.

John Bercow Portrait Mr Speaker
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Thank you. Two minutes, please. I call John Redwood.

Trade Policy

Chris Leslie Excerpts
Monday 16th July 2018

(6 years, 4 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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My right hon. Friend is right: it is important that we explain what is involved. It is also important to genuinely consult, as he says. That is why the Government in their pre-negotiation phase are doing what has never been done to this extent before. Pascal Lamy, the former director-general of the World Trade Organisation, said we are leaving a period in trade which was about the protection of producers and entering one about the precaution of consumers. Our consumers are very much more interested in trade policy today than they have ever been, and therefore they will expect, and we have a duty to provide, the appropriate consultation for them.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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This statement is about consultations in advance of future trading arrangements, so will the Secretary of State assure the House that he at no time consulted members of the Conservative European Research Group on their four wrecking amendments wrecking the Chequers arrangement before they were tabled?

Draft EU-Canada Trade Agreement Order

Chris Leslie Excerpts
Tuesday 26th June 2018

(6 years, 4 months ago)

Commons Chamber
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Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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We on the International Trade Committee took time to hear evidence on the Canada trade deal. In hisnear-40-minute speech from the Front Bench today, my hon. Friend the Member for Brent North (Barry Gardiner) covered a number of important points about parliamentary scrutiny, but I am not entirely clear what those on my Front Bench are going to do if this issue comes to a vote. I shall therefore make my own mind up, based on the debate that we are having. From what I can see, CETA is quite a decent trade deal. As my right hon. Friend the Member for Warley (John Spellar) said, Canada is a liberal, open economy with which we have a great affinity.

A number of improvements have been made to the agreement along the way as part of the negotiations. The old ISDS has gone, and there is a new, more transparent and open arrangement for settling disputes. By the way, trade deals tend to need some sort of mechanism for settling disputes. Most importantly, CETA is already provisionally in force. So, if for some reason the House were to kick it out today, and possibly prevent the European Union as a whole from ratifying the treaty, we would go from a position in which we currently enjoy zero tariffs to one in which tariffs would again be imposed on a whole basket of goods. For example, the UK currently enjoys zero tariffs on clothing and textiles, but they would have to go back up to 16%. The tariffs on vehicles and machinery would go back up to 9.5%, those on medical devices would go back up to 8% and those on chemicals would go back up to 6.5%. We have to look responsibly at the options before the House today.

At this time in particular, when we are talking about Brexit and when our access to our largest markets across the European Union, 40% of our trade, is in a somewhat precarious situation—I do not want to open that particular debate up more widely just now—to start putting question marks over the non-EU trade deals, 30% of our trade, does not seem very sensible. As we are potentially at the brink of a worldwide trade war, with Trump and the Americans’ ridiculous approach of irrational tariffs on a whole series of goods, this is not the time for us to step away from free and fair trade arrangements.

All I would say to my colleagues on the Front Bench is to be very careful about slipping into an oppositionalist rut on these issues. If we want to be a Government in waiting, we sometimes have to weigh things in the balance and take a responsible view about the prosperity of our economy, because from that prosperity comes the revenues we need for our public services, our health service, our schools, and all those local council services. There is danger in flirting with anti-trade populism. Yes, we must harness globalisation, but we must not resist it entirely. There is a sensible mainstream, dare I say it centre-ground approach to being rational and sensible about trade deals. Yes, make the points about parliamentary scrutiny, but at the end of the day we have to take the long view, which is that free and fair trade benefits us all.

EU-Japan Economic Partnership Agreement

Chris Leslie Excerpts
Tuesday 26th June 2018

(6 years, 4 months ago)

Commons Chamber
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Barry Gardiner Portrait Barry Gardiner
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I will make a little progress, Madam Deputy Speaker, because I know that you want to encourage other Members to speak.

The automotive industry offers the clearest indication of the issues posed by the EU’s deal with Japan. The EU-Japan EPA will, for example, remove the 10% tariff that currently applies to all car imports into the UK from Japan, which will—again, according to the Government’s figures—result in a £2.8 billion surge in Japanese car imports into the UK. That will have significant implications for the future viability of our domestic automotive sector and the thousands of jobs attached to it. But this is precisely where the Government’s assessment is so hopelessly unsatisfactory. It fails to ask the real questions as to what the long-term impacts on the UK car industry might be when we remove the existing 10% tariffs on Japanese car imports. This question is clearly of the utmost importance when it comes to safeguarding jobs in the UK auto industry, as there will no longer be a trade incentive to maintain Japanese investment in precisely the way in which my hon. Friends the Members for Newcastle upon Tyne North (Catherine McKinnell) and for Crewe and Nantwich (Laura Smith) mentioned earlier.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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I wonder whether my hon. Friend could help me out, because the Opposition are very keen to get to the denouement of this particular question. It feels to me as though he is raising some issues of concern. But, by and large, this is quite a positive deal for the UK, the EU and Japan. Is he saying that we should oppose the motion before the House?

Barry Gardiner Portrait Barry Gardiner
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I am astonished. I should have thought that each week my hon. Friend reads—just as I do—the Whip that comes out from our Whips Office, so he will know perfectly well which way we will be voting. [Interruption.] No, and Government Members will get to find out in due course.

Chris Leslie Portrait Mr Leslie
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On a point of order, Madam Deputy Speaker.

Baroness Winterton of Doncaster Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I hope that this is a point of order.

Chris Leslie Portrait Mr Leslie
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My point is that I do not have a copy of the paper Whip in front of me at the moment, Madam Deputy Speaker. Would you encourage my hon. Friend the Member for Brent North (Barry Gardiner) to share with Labour Members what our position is on this important issue?

Baroness Winterton of Doncaster Portrait Madam Deputy Speaker
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That is a point of debate. I want the debate to move on because a lot of Members wish to speak.

United States Tariffs: Steel and Aluminium

Chris Leslie Excerpts
Liam Fox Portrait Dr Fox
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We are seeing the sort of problems that come from introducing protectionist measures. Tariffs will very seldom—for any length of time—successfully protect a domestic industry. They are likely to add cost to the inputs for that economy. In the United States, where 140,000 people are employed in the production of steel, there are also 6.5 million people in industries dependent on steel usage who will not be helped by an increase in the price. My hon. Friend makes a good point. We should all be recommitting ourselves to an open, liberal, global trading system, rather than considering impediments to it.

Chris Leslie Portrait Mr Chris Leslie (Nottingham East) (Lab/Co-op)
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If the Secretary of State wants to rebuff Donald Trump’s claim that these tariffs are for national security reasons, he need only look at the President’s tweet from six hours ago, in which he starts off down the avenue of saying, “Oh, what about European farming tariffs or manufacturing tariffs?” It is quite clear that the Secretary of State and the European Union should be able to drive a coach and horses through the national security nonsense that the American President is putting up. Will the Secretary of State at least see this as an opportunity for us to work with our partners in the European Union and to use the leverage that we have in that alliance of 500 million customers to ensure that the Americans cannot walk all over us?

Lindsay Hoyle Portrait Mr Deputy Speaker (Sir Lindsay Hoyle)
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Order. A load of constituencies are affected. May I suggest that we have short answers and short questions, so that hon. Members can get in?