G7

Edward Leigh Excerpts

Monday 11th June 2018 Commons Chamber

[The Prime Minister]

The hon. Gentleman is right that we need to be wary of any seeming approaches taken around the world that increase protectionism or that increase the likelihood of protectionism being adopted. When people talk about trade, there tends always to be a focus on tariffs, but of course free trade depends on a great deal more than tariffs. It depends on having similar systems that ensure that there is not unfair competition and that abilities to reduce tariffs are not simply replaced by the sort of barriers to trade that he talks about. As an independent member of the WTO, we will of course be able to play our part in trying to ensure that we row back any attempt at protectionism.

[Sir Edward Leigh (Gainsborough) (Con)]

I am sorry to break the cosy consensus, but has not President Trump got a point to the extent that free trade, like all these theories, depends on some level of equivalence and fair dealing, yet China, with its unlimited population, is rapidly building massive trade surpluses with the rest of the world and draining other economies dry? Given that its secretive Government have proved utterly impervious to previous pressure, perhaps history will prove that there is some method in President Trump’s madness.

[The Prime Minister]

We have absolutely no doubt that there is a need to ensure that everybody is playing within the rules-based international order. Obviously, we have spoken in this House and elsewhere in particular about the overcapacity in steel and the role that China has played in that. That is why I was pleased, at the first G20 I went to, that the global forum on steel excess capacity was set up, with China as a member of that forum. As we committed to in the communiqué, we have called on the members of that forum to implement its recommendations fully and promptly, and we need to say that we must bring those countries that are emerging and perhaps not playing fully by the rules of the international rules-based order, into that order. I am pleased to say that we also in the communiqué committed to continue to fight protectionism.