Global Britain

Daniel Kawczynski Excerpts

Monday 11th January 2021 Commons Chamber

[Elizabeth Truss]

My hon. Friend makes an excellent point. He is right that trade is the key not just to prosperity, but to peace and co-operation between nations. I want to reassure the House that we will ensure that no country is left behind without the benefits of free and fair trade with the United Kingdom. Later this year, we will be launching an emerging markets trade scheme, which will offer the lowest-income countries a better deal when they are trading with the UK. It will be more generous than the EU scheme and it will help those countries on to the ladder towards prosperity through the enterprise and ingenuity of their people.

We want to encourage British businesses to take advantage of all the opportunities that we have either negotiated or are negotiating. Therefore, we will be loudly and proudly championing exports in key industries from food and drink to services in technology trade. We have a network of trade advisers across the country ready to help our businesses go global and they can be proud to put the Union Jack on their pack, which is one of the most recognised symbols in the world. With our great campaign, we are showing partners worldwide that Britain is ready to trade. In December, the Prime Minister launched our new Office for Investment under the leadership of Lord Grimstone. It will work tirelessly to secure investment in every nation and region across Britain, backing jobs and livelihoods. More than 56,000 new jobs were created last year through foreign investment in the UK, with a further 9,000 others secured. We will also be founding our first new free ports, which will drive enterprising growth in port cities and towns across the country as we turbo-charge trade across the world.

Of course, many are sceptical about globalisation and the benefits of trade. One reason why they are sceptical is that too many unfair practices and cheating have been allowed to undermine real free trade. That is why we are establishing the Trade Remedies Authority, headed by Oliver Griffiths, to protect UK industries from unfair practices. It is not right, for example, that ceramics manufacturers in Stoke-on-Trent can be undercut by goods subsidised by state-owned enterprises, that our innovators can have the fruits of their work taken under forced technology transfer, and that goods can come into this country that have been produced through forced labour in abhorrent conditions. That is why we are pushing the World Trade Organisation for greater transparency and reform of the rules, and by joining CPTPP, with its ambitious digital and data provisions and clear rules, we will pile further pressure on the WTO to reform.

As an independent trading nation, we are setting our own path and rejecting the twin errors of values-free globalisation and protectionism.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

One thing that incentivises and encourages younger people in our country is their determination to help third world countries that are not as well off as we are. The spending of the Department for International Development has historically been very important, but I very much hope that the Minister will start to explain to the electorate the huge advantages that third world countries will now have as a result of our lowering tariffs on the sort of products that we cannot produce here in the United Kingdom.

[Elizabeth Truss]

My hon. Friend is right that, of course, the UK global tariff has lower import tariffs than the common external tariff of the EU, but we are going to go even further than that with our new emerging markets trade scheme, which will offer more preferential rates for the lowest-income countries in the world to help their populations trade their way out of poverty, and I agree with him that that is a really important way in which we can bring more prosperity to the world.

As I was saying, we now have the opportunity to set our own path by rejecting the twin errors of values-free globalisation and protectionism. Instead, as the United Kingdom, we are rooting our approach in the fundamental values of sovereignty, democracy, the rule of law and a fierce commitment to high standards. That is why we are bringing together a coalition of like-minded nations to advance high standards worldwide—from food and animal welfare to the environment and data. With fellow democracies such as Japan and Canada, we are championing innovation, a cleaner planet, women’s economic empowerment and much more. We have demonstrated this through the fantastic deal we have struck with the EU to ensure we can keep trading freely with zero tariffs and zero quotas, alongside deals covering 63 countries. No other nation has ever negotiated so many trade deals simultaneously, and I am proud of the results we have achieved.

At this tough time, we need to embrace our future as a confident, optimistic and outward-looking global Britain, delivering jobs and prosperity at home while helping lead the fight for free and fair trade abroad. My hope is that all sides of this House can join me in celebrating how far we have come and the huge opportunity we have in 2021, striking deal after deal with our friends and family worldwide to support our values and full economic potential. This is global Britain in action.

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[Henry Smith (Crawley) (Con)]

rose—

[Daniel Kawczynski]

rose—

[Emily Thornberry]

I will take one more intervention and then I need to make some more progress.

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[Emily Thornberry]

I understand entirely what the right hon. Lady is saying. It is interesting, is it not, that half of the agreements were done in six months by the previous Secretary of State for International Trade, and the other half have been done over an extended period of time under the current Secretary of State? Indeed, many of these agreements, as the right hon. Lady has said, were done on the basis that the European Union deal was likely to be quite different from the one that we actually have now. That is one reason that we had this condition, yet we end up with cut-and-paste agreements coming down to the absolute wire at the end of last year, without our being able to do any scrutiny. As the hon. Member for Crawley (Henry Smith) has said, there are many issues that Members would want to raise and would want to have considered before we make any trade agreements, but as things stand, there is very little time for us to debate these matters.

[Daniel Kawczynski]

Will the right hon. Lady give way?

[Emily Thornberry]

In the limited amount of time that I have left, I will not be taking any more interventions; let me just get to the end of my speech, because we already have only three minutes for each Back Bencher to make a speech in any event.

I would like to talk about the Secretary of State’s plan—as she has called it—on CPTPP, and to make a plea to her with regard to it. She has spoken many times about this matter. She talks as if the only issue to consider is whether we can persuade Japan, Australia and Canada to get on board, but I respectfully say to her that before she can win the argument for accession with them, she needs to start by making the case in Britain first. We have been through five years of division and debate in this country over leaving a trade bloc with our closest neighbours. Are we going to do that just in order to go and join another trade bloc on the other side of the world, simply because Tony Abbott thinks that it is a good idea? He might well be right—it may offer tremendous benefits for our country—but we cannot even start to judge until we know the terms on which we would join, and whether those terms are right for us.

There is a danger that the Government might even persuade themselves that this debate has already been had, thanks to the 14-week public consultation that was carried out back in 2018, but let me remind the Secretary of State of three things. First, only 81 business groups, non-governmental organisations and members of the public sat down and wrote formal responses to that consultation; in my book, that does not amount to proper engagement with stakeholders. Secondly, according to her Department’s own national survey conducted after that consultation, only 10% of the people of this country said that they knew what CPTPP was and supported joining it. That does not amount to a proper mandate in my book either. Thirdly, if she goes back to the consultation process responses, she will see that it is clear that many were based on very different assumptions about the outcome of our EU trade negotiations from the outcome that we have actually got. What is this about? In my view, it does not amount to a proper and reliable base of opinions.

For all those reasons, my plea to the Secretary of State today is for her to open up the consultation process again and to give business, unions, civil society and the public a chance to voice their opinions about whether joining CPTPP is the right next step based on where we are now and what we want to achieve as a country. The reason why that is crucial brings me back to what I said at the outset, about the chaos that is building at our ports and the crisis that is growing for our exporters. This is not a partisan statement; it is a simple statement of fact. We are going through all this pain because of a fervent belief on the Government Benches that the gains to be had from doing our own free trade deals with the rest of the world will eventually outweigh the losses from damaging our trading relationship with our nearest neighbours in Europe. That is the Government’s leap of faith. Even if I and many of my colleagues have fervently disagreed with that argument in recent years, we are now in a position where, for the good of our country and the communities we serve, we have to hope that we are proved wrong and that the Government are proved right—but, as things stand, that is not the case.

With every hour of delay that passes at Dover, every consignment that is turned away, and every product that is, after all, having to face tariffs because of rules of origin, British businesses are losing money. Meanwhile, in the rest of the world, we have not gained one single penny in extra trade from the Government’s leap of faith: not one single agreement that we did not have before, and not one single export facing lower tariffs than it did in December. Indeed, as we heard the last time we were here, according to the Government’s own figures, our country is forecast to be worse off and to make lower exports thanks to the Secretary of State’s enhanced deal with Japan compared with the deal that we had before. So it is understandable—perhaps inevitable —that when the Government resume their talks with Australia, New Zealand and America; when they start their talks with India, Brazil and the Gulf states; when they try to turn 14 pages of cut and paste into proper treaties with Mexico, Turkey or Canada; and most of all, when they make their formal bid for accession to CPTPP, they will be desperate to do these new trade deals at any price, to make up for our losses with Europe.

But no matter how desperate the Government get, they should not be allowed to do these deals at any price. These deals must not come at the cost of domestic British jobs and business. They must not come at the cost of our farmers and our food standards. They must not come at the cost of our ability to protect the NHS from marketisation or put environmental protection before corporate profits. They must not come at the cost of our principles when it comes to human rights, democratic freedoms and the future of the planet. To guard against all those things, every one of us should make clear that they will not be allowed to come at the cost of proper scrutiny and debate by this House.

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[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. It is right that we should be debating global Britain this week, the 75th anniversary of the founding of the United Nations, and the House of Commons will want to mark with sadness the passing of Sir Brian Urquhart, one of the principal architects of the UN and a fine British civil servant. As my right hon. Friend the Member for Maidenhead (Mrs May) said, the power of a passionate, compelling vision for global Britain has the ability to unite the United Kingdom, all four parts of it, in one vision, at a time when that Union is under great pressure.

I want to make two specific comments about global Britain. The first is about the what. As my right hon. Friend said, we await the report, because we have had the money but not yet the report of what global Britain is going to stand for, but it seems to me very important that global Britain should represent values, rather than geographers. This enables us from time to time to agree with China but to disagree with Donald Trump. The UK has been a very bright light in many difficult parts of the world, standing up for the rule of law and human rights against Islamic terror, standing against meddling Russians and Chinese human rights abuse, and standing in favour of women’s rights and the fight against starvation.

When it comes to the how, I think that the international rules-based system is the key. The UK has real leverage on this: our seat in the United Nations; as a leading member of the Commonwealth, that important north-south organisation, which embraces so much of the world; our principled position in NATO; the fact that we are a European power, in or out of the European Union; our relationship with the United States; and, of course, the British language, which, in terms of commerce, trade and law, gives Britain such a pre-eminent position, quite apart from the City of London as an international centre. And as others have mentioned, we have development. Over the past two decades, Britain has become a development superpower—the ideas of British universities, the actions on the ground of Britain’s international non-governmental organisations and the policy formation of the thinktanks—which is why I ask the Government to think again on breaking the 0.7% promise, on which every single Member of this House of Commons was elected just one year ago. Remember that the 0.7% has already been reduced.

[Daniel Kawczynski]

Will my right hon. Friend give way?

[Mr Mitchell]

I am afraid that I cannot give way as I have so little time.

[Daniel Kawczynski]

He will get an extra minute.

[Mr Mitchell]

I give way to my hon. Friend.

[Daniel Kawczynski]

I am very grateful to my right hon. Friend. He is a champion for DFID spending, but does he agree that, now we are outside the European Union, our intention to lower tariffs for third world countries will, in the long term, result in much more support for them than just the DFID money?

[Mr Mitchell]

I am very grateful to my hon. Friend. Of course, he is right that trade is the key, but in order to get to a point where countries can trade, you need many of the very important services that DFID has been providing in some of the poorest parts of the world. Remember that the 0.7% has already been reduced, because it is connected with our gross national income, by nearly £3 billion. If this cut goes ahead, the development budget will be reduced by nearly 50%. That is the worst thing we could do in a pandemic, which we know will never be defeated here until it is defeated everywhere. It is the most terrible timing—when we approach the chair of the G7, when this year we will chair the United Nations Security Council and when we have the most important COP in Glasgow in November. It would be a terrible mistake. I urge the Treasury Bench to think again about this £4 billion reduction—just 1% of the borrowing this year. It should not be carried out in this way and it should not be carried out at this time.

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I speak as the sole Polish-born British Member of Parliament in this Chamber. Obviously, for me, the three seas initiative is becoming increasingly important as we have left the European Union. The three seas initiative includes 12 countries in central and eastern Europe, bordering on the Black sea, the Baltic sea and the Adriatic sea. They are coming together; all are members of the European Union, and all apart from Austria are members of NATO. It is an increasingly important regional bloc on our continent. The three seas initiative is coming up with a different narrative from the Franco-German axis, which has perhaps for too long controlled the destiny of our continent.

The United States of America has been a very good example in its effective engagement with the three seas initiative, treating those 12 countries as a specific entity, investing in them and supporting them strategically from a defence perspective. In the post-Brexit era, we can show real leadership on our continent by supporting the three seas initiative and putting sanctions on the Nord Stream 2 pipeline. Now no longer constrained by our membership of the European Union, we ought to follow our American friends in imposing sanctions on any company involved in the Nord Stream 2 pipeline, which is a real issue for many politicians who represent countries in the three seas initiative.

This undersea gas pipeline that the Germans are building directly to Russia, bypassing all the gas and oil networks that run through our NATO partners, is extremely dangerous because it puts our NATO partners at great additional pressure from Moscow and makes them susceptible to additional energy blackmail, which the Russians have used so successfully in the past. The United States of America has managed to halt temporarily the construction of the Nord Stream 2 pipeline through sanctions on companies involved. I urge the Minister now, in a post-Brexit context, to show the same courage and resolve that his American counterparts are doing in standing up from a moral, strategic and security perspective, challenging the Germans not to endanger our NATO partners in this way, and imposing sanctions on any company involved in this highly risky project for the future security of our continent.