Oral Answers to Questions

Douglas Alexander Excerpts

Tuesday 3rd December 2013 Commons Chamber

[Mr Hague]

Clearly, it is open to Ukraine to change its policy. As my right hon. Friend knows, there is a great deal of discussion about that in Ukraine at the moment. Again, I urge the Ukrainian authorities to respect the right of peaceful protest and to investigate thoroughly why police violence was used several days ago. I believe it would also be in the long-term interests of Russia for Ukraine to have more open trade with the European Union. The sorts of economic benefits that I have said would flow to Ukraine would go on to benefit the Russian economy as well.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

The Foreign Secretary said a moment ago that the benefits of this potential agreement are self-evident. The EU High Representative has described it as the

“most ambitious agreement ever offered to a partner country”,

yet, as we have heard, the Ukrainian President has refused to sign it. Will the Foreign Secretary set out a little more of what he believes were the main barriers to the deal being agreed and whether he still believes they can be overcome, given the external pressure on Ukraine?

[Mr Hague]

One principal barrier was the pressure from Russia not to sign or make such an agreement with the European Union. As I have said, we disagree with that assessment even from Russia’s point of view. It would be in the interests of Russia and the whole of eastern Europe to have more open trade and co-operation with each other. We will go on setting out the advantages, but we will also look to Ukraine to clearly meet the criteria set out in the association agreement. Reliable studies have suggested that average wages in Ukraine would rise and that exports to the EU would rise by an estimated 6%. The arguments are very clear, but in the end it is for Ukrainians to make their judgment on them.

[Mr Alexander]

I am grateful to the Foreign Secretary for the candour of his last answer, which confirms the role that Russia clearly played in the events that unfolded at the summit. Reports suggest that the International Monetary Fund has a stand-by facility of between $10 billion and $15 billion to provide emergency financial support for Ukraine should Russia take steps to increase economic pressure on the country. Will he set out the British Government’s position on that stand-by facility, and say whether he thinks there might be circumstances in which it is appropriate to make it available to Ukraine?

[Mr Hague]

If Ukraine is to make use of that facility, it is necessary for it to engage in important structural reforms. The reforms on which the IMF has made a new arrangement conditional would help to build a more stable and prosperous Ukraine, which again is important.

It is also important to note in passing that although this agreement has not been signed, deep and comprehensive free trade areas have been agreed between the EU and Georgia and Moldova, so parts of the EU’s Eastern Partnership have continued to progress.

--- Later in debate ---

[Mr Hague]

We will take a look at that. The Prime Minister’s visit to India was certainly very successful. We have greatly strengthened our relations with India with the Prime Minister’s three visits and all the other work we have done. My hon. Friend draws attention to an important issue, and I undertake to him that we will look at it in more detail.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

Can the Foreign Secretary offer the House an explanation as to why it has taken the Prime Minister three years to make his second visit to China this week?

[Mr Hague]

I think the right hon. Gentleman could have phrased the question in a slightly more positive way, for instance by asking why it is that this Prime Minister has taken the biggest ever trade delegation to China or why we now have more dialogue between the UK and China than ever before, more people-to-people exchanges, more students studying in each other’s countries than ever before, and more trade and investment than ever before. Clearly the Prime Minister gets extremely good value out of the visits he makes.