Oral Answers to Questions

David Lidington Excerpts

Tuesday 4th March 2014 Commons Chamber

[Nadine Dorries (Mid Bedfordshire) (Con)]

9. What recent progress has been made on the transatlantic trade and investment partnership; and if he will make a statement.

[The Minister for Europe (Mr David Lidington)]

TTIP is this country’s top trade policy priority, worth up to £10 billion a year for the UK. Negotiations are progressing well and our ambition remains to conclude the deal next year.

[Nadine Dorries]

Does the Minister agree that TTIP provides an ideal opportunity to look at having a US free trade agreement based on sovereign states and not on political integration, as well at as our relationship with Europe?

[Mr Lidington]

The key advantage of TTIP is that a successful deal would create what would be by far the world’s most important free trade area, and would set global regulatory standards for trade on a transatlantic basis rather than having to wait for other countries to come and set the model for us to follow.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The partnership does indeed offer great potential to Europe and the United States, but as the Minister will know, there are fears that it could lead to a watering down of workers’ rights and environmental and social protection. What are the Government doing to ensure that that does not happen?

[Mr Lidington]

I am sure the hon. Gentleman is aware that considerable legal and other measures already exist on both sides of the Atlantic to secure proper protection for workers, and those matters are indeed in the minds of negotiators. However, I do not think that we should take our eyes off the enormous prize that a trade deal of this kind would represent in increasing economic growth and mutual trade on both sides of the Atlantic.

[Mr Robert Walter (North Dorset) (Con)]

Does my right hon. Friend agree that those who campaign for us to leave the European Union would be turning their backs on a free trade area constituting some 40% of the productive wealth of the world, and that we would be unlikely to negotiate similar terms outside the Union?

[Mr Lidington]

I think it is true that the opportunity for a trade deal with a market of more than 500 million people in Europe as a whole is more attractive to United States negotiators than a trade deal with any single European country. Moreover, as my hon. Friend says, any member state that left the European Union would, unless alternative arrangements were negotiated, be abandoning the free trade agreements that the Union had negotiated with other countries around the world.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Minister ensure in the negotiations that the multinationals pay their proper tax in this country, notwithstanding some of the things that have happened in the past?

[Mr Lidington]

I am sure that the hon. Gentleman will want to applaud vigorously the initiative taken by our Prime Minister through the G8 to try to secure an international agreement on a system whereby all multinational companies pay their fair share of tax, but I am also sure he will accept that that can be realised effectively only on a global basis.

[Valerie Vaz (Walsall South) (Lab)]

10. What discussions he had during his recent visit to Burma.

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[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Given Chancellor Merkel’s confirmation that she does not support a fundamental reform of the European Union’s architecture, will the Minister for Europe update the House on when we may expect some clarity from the Prime Minister about what powers he wants repatriated to the UK?

[The Minister for Europe (Mr David Lidington)]

I was heartened by Chancellor Merkel’s strong words about her determination to work with the Prime Minister to secure a European Union that is significantly more competitive, more democratic and more flexible than it is today. I wish that, instead of carping all the time, the hon. Gentleman would join us in that great project of reform.

[Bob Blackman (Harrow East) (Con)]

T2. The coalition Government have set great store by encouraging stronger economic, cultural, religious and tourism links with India. With that in mind, there is constant lobbying for the reintroduction of direct flights from London to Gujarat, and especially Ahmedabad. What diplomatic efforts can Ministers launch to assist that campaign and get that much needed reform in place?

--- Later in debate ---

[Andrea Leadsom (South Northamptonshire) (Con)]

Does my right hon. Friend the Minister for Europe agree that although the free trade agreement with the United States is a very good step in the right direction, it is nevertheless very unambitious that the EU spends only 2% of its annual budget on trade, compared with over 40% on subsidising farming?

[Mr Lidington]

I must say that if the Commission is looking for a way to allocate its priorities better, beefing up its excellent team in the Directorate-General for Trade would be a good way of going about it.

[Dr William McCrea (South Antrim) (DUP)]

There has been international condemnation of Putin’s actions as Russian aggression intensifies in Ukraine. However, European leaders seem hampered by the dependence of much of the European Union on Russian oil and gas. What effective action will be taken to stop Putin walking over the will of the people of Ukraine?