I am delighted to announce that last Friday we reached agreement in principle on a free trade deal with Japan. The UK-Japan comprehensive economic partnership agreement is a major moment in our national history. It shows that economic powerhouses, such as Japan, want ambitious deals with the United Kingdom, and it shows that the UK can succeed as an independent trading nation. It shows that we can strike deals that go further and faster than the EU—British-shaped deals that suit our economy.

This deal will drive economic growth and help level up our United Kingdom. On tech, it goes far beyond the EU-Japan deal, banning data localisation and providing for the free flow of data and net neutrality, benefiting our leading tech firms. In services, we have secured improved market access for financial services and better business mobility arrangements for professionals and their families. On food and drink, up to 70 of our brilliant British products can now be recognised in Japan, from Welsh lamb to Yorkshire Wensleydale cheese, English sparkling wine and Stornoway black pudding. Under the EU deal, that was limited to just seven. We have also secured tariff reductions on British goods from biscuits to pork, as well as continued access for malt and Stilton cheese.

In manufacturing, lower tariffs on parts and improved regulatory arrangements will benefit major employers such as Nissan and Hitachi in the north-east. The deal strengthens our ties with the world’s third-largest economy and deepens the bond between two like-minded island nations who believe in free and fair trade.

One of our greatest Prime Ministers, Mrs Thatcher, saw the value of co-operating with Japan in areas such as the automotive sector and electronics in the 1980s, which attracted the likes of Nissan and Toyota to our shores and delivered lasting benefits. Now, in 2020, we will unleash a new era of mutually beneficial economic co-operation with our great friend Japan, pushing new frontiers in areas such as tech and services trade. Japan, as one of the world’s major economies, is a vital partner for the UK and one of the most significant nations in the Pacific region. Securing this Japan deal is a key stepping stone towards joining the trans-Pacific partnership, which is one of the world’s largest free trade areas, covering 13% of the global economy and £110 billion-worth of trade. Accession is vital to our future interests. It will put us in a stronger position to reshape global rules alongside like-minded allies. It will hitch us to one of the fastest growing parts of the world. It will strengthen the global consensus for free trade at a time of global uncertainty and creeping protectionism. Japan, alongside this agreement, has given its strong commitment for UK accession to the comprehensive and progressive agreement for trans-Pacific partnership, and last week I co-chaired a chief negotiators’ meeting of all 11 TPP countries—the first time that a non-member state has been asked to do this—where we discussed the path to UK membership. As negotiations progress, we will bring forward the formal application process to Parliament, and ensure that it is scrutinised openly and transparently.

As I have promised, there will be a full scrutiny process for the Japan deal and all the other agreements that we strike. Prior to entering negotiations, we issued a scoping assessment and published our objectives. During the negotiations, we have engaged extensively with business and stakeholders, including sharing sensitive tariff and market access information with our new trade advisory groups. We have established a Trade and Agriculture Commission to put our farmers at the heart of trade policy and ensure that their interests are advanced. When it is complete, I will be issuing a copy of the final deal to the International Trade Committee for scrutiny. We will also produce an independently scrutinised impact assessment, covering social, labour, environmental and animal welfare aspects of the agreement so that parliamentarians are able to interrogate the deal and prepare a report that is debated in Parliament. Ultimately, Parliament will decide whether to ratify the deal through the Constitutional Reform and Governance Act process or to withhold its support.

I am strongly of the view that this is a great deal for Britain. It benefits all parts of our country while protecting our red lines on areas such as the NHS and food standards. The agreement that we lay before Parliament will be the first of many, because there is a huge appetite to do business with global Britain and a huge opportunity for every part of this country to benefit from these agreements. This deal is a sign and a signal that we are back as an independent trading nation, back as a major force in global trade and back as a country that stands up for free enterprise across the world. This is just the start for global Britain.

After the right hon. Lady’s congratulations to me on securing this important deal, it is perhaps a bit churlish of me to point out that she did not vote for the original EU-Japan deal, so none of the original benefits she talked about would have come into existence had we followed the steer given by the Labour party at the time. The deal we have secured goes significantly beyond the EU-Japan deal in areas that are important to the United Kingdom. For example, the data and digital chapter in some cases goes beyond the CPTPP and sets new precedents for a high-quality deal. On business mobility, financial services, geographical indicators and rules of origin, there are advances in all parts of the negotiation that benefit all parts of the UK and all parts of business.

The right hon. Lady asked about the impact assessment. No doubt she has read the scoping study, which shows a £15 billion increase in trade under this deal, but of course we will conduct another impact assessment following the finalisation of the details of the deal, which we will indeed publish. It will also cover the deal’s environmental impact, social impact and impact on agriculture. [Interruption.] From a sedentary position, the hon. Member for Harrow West (Gareth Thomas) asks when we will publish it. The answer is that we will do so when we have completed the full legal scrub of the documents and signed the agreement.

The right hon. Lady asked me about agriculture. I am pleased to hear that she shares my strong interest in improving exports of Great British products around the world. The vast majority of agricultural products such as beef and pork are not subject to tariff rate quotas, and we have secured the full liberalisation of those products under this agreement, which is a tremendous boost for British farmers. There is a limited number of areas where there are tariff rate quotas, and that represents about £1 million worth of business versus just over £150 million for the remainder of agriculture, but in those areas we have fought hard to ensure that British exporters continue to get the benefit of exports into the Japanese market at lower tariff rates, including but not limited to Stilton. We have also secured an agreement on malt barley, and we are the second largest exporter of malt into Japan, so that is a significant benefit for British farmers. We have also succeeded in getting more liberal rules of origin on many food and drink products, which will mean that more producers are able to export into Japan tariff-free.

As the right hon. Lady knows, under the Constitutional Reform and Governance Act 2010, Parliament can refuse to ratify trade deals. Parliament has the power that other Parliaments have. If there is not a majority in this House for this trade deal, which I do not think will be true because it sounds like she has changed her mind since she voted against the Japan deal last time, it will simply not be ratified.

The right hon. Lady asked me all kinds of questions about the details of the agreement. Obviously, as we, first of all, share it with the International Trade Committee and then with Parliament, she will be able to see the details, but I assure her that the subsidies chapter is the standard kind of chapter you get in an FTA. It is vastly different from what the EU is trying to do with us, which is essentially impose the EU state aid regime in Britain. As David Frost has made clear, that is simply not acceptable.

The right hon. Lady tries to compare and contrast the EU and Japan. We can have both deals—we are global Britain. We want to have deals with CPTPP, with the United States, with the EU and with Canada, and I believe that that is absolutely possible. I am afraid to say that the right hon. Lady still seems to want to relitigate the EU referendum. In 2016, the people of Britain decided. It is time for her to get behind it.

I thank my hon. Friend for his question. I am looking forward to visiting Davidstow, which is one of the major cheese exporters from the United Kingdom, this Friday. The answer is that dairy products, such as cheddar from Davidstow, will go down to a zero tariff over time as a result of the agreement. We are protecting new product names, whether it is Cornish pasties or clotted cream. We will also see reductions in tariffs for fantastic products such as beef, also from Cornwall.

Only the SNP could say that £15 billion of extra trade is insignificant, but this Japan deal is not just important economically in itself; it is important, as the hon. Gentleman mentioned, for accession to TPP, a trade area worth £110 billion. That is vital. This is a step forward. One of the key things we have secured is strong agreement from the Japanese to help us accede to TPP.

I hope that the hon. Gentleman is also pleased by the extra protection we have secured for Scotch whisky. There have been issues in Japan, and the Japanese Government have agreed to work with us and the industry on the development of enforcement mechanisms for lot codes on wines and spirits, meaning that Scotch whisky will be even better protected in the Japan market.

The hon. Gentleman talked about cheese. The vast majority of the cheese we export is not subject to quotas. Thanks to this deal, as I mentioned to my hon. Friend the Member for North Cornwall (Scott Mann), the tariffs on our cheese will go down to zero over time, which will be of huge benefit to Scottish cheddar producers.

We are the first potential accession country that has had a meeting with all 11 chief negotiators. We will now go into separate discussions with those countries to prepare our accession plans. I hope to be able to formally apply early next year so that we can make progress and accede to this high-standards agreement, which will give British exporters access to the fast-growing Pacific market.

I am pleased to hear the hon. Gentleman’s welcoming the increased protection for Stornoway black pudding in the Japan market. He will note that a number of other indicators have been given access to that market, which is important. There are also, of course, huge benefits for Scottish lamb and beef farmers in terms of reduction in their tariffs.

On the hon. Gentleman’s point about the EU, this is not an either/or choice. Global Britain wants to have a good trading relationship with the EU and a good trading relationship with Japan and CPTPP. That is all possible, but what it will take is for the EU to give us a deal in the way that it has given Canada a deal.

Once we have the fully legally scrubbed deal, that will go to the International Trade Committee on a confidential basis for that Committee to analyse it. We will also undertake independent analysis on the key points that I outlined earlier—the environmental impact, the social impact and the impact on animal welfare standards. That will then be debated by Parliament and, through the CRaG process, if Parliament is not happy, it will be able to not ratify the deal. I do not think that will be the eventuality, however, because I think people will recognise that the deal is of benefit to the UK economy.

I understand that the deal will go to both Parliaments at the same time—it will go to the Japanese Diet at the same time as it goes to the International Trade Committee in this House for its analysis. As I have said, under the CRaG process, which was introduced by the Labour Government in 2010, Parliament can block the deal if it does not like it, and that process is roughly equivalent to those in other Parliaments, including in Canada, Australia and New Zealand.

I am committed to making sure that we have independently audited analysis of the deal that we complete, but the hon. Lady has highlighted a hypothetical situation. We are now in a world where we have left the EU, even though some Opposition Members do not seem to want to acknowledge that. What we have to talk about is the benefits of signing the deal versus not signing it.

The deal with Japan has a dedicated SME chapter, which is all about reducing the red tape that SMEs face, making it easier for UK and Japanese SMEs to understand the others’ markets and providing information to make it easier for them to export and gain the benefits of international trade.

I urge the hon. Lady to look beyond the EU—90% of global growth is coming from beyond the EU. Both Japan and the wider Pacific region, which is a fast-growing area, are vital for Britain’s future economy. Of course we want a deal with the EU, but that should not stop us doing advantageous deals with fast-growing parts of the world and working with allies to put forward the cause of free and fair trade.

We have achieved improvements in areas such as transportation services as well as financial services in the trade deal. We have also improved professional and business mobility, making it easier for business people to travel between Japan and the United Kingdom and increasing our economic links. That will be particularly helpful for the south-east of England.

That was a typically upbeat question from the hon. Gentleman. It is not true that our deal with the United States is not progressing; on the contrary, we are in the middle of a very positive negotiating round in which we are currently discussing market access terms.

My hon. Friend is right: a number of products in Cornwall—whether the Cornish pasty, west country farmhouse cheddar or clotted cream—will benefit from this deal through not only lower tariffs but increased recognition of their geographic indicators. I will be in Cornwall later this week, and I hope to talk to producers about how we can increase their exports and take advantage of these new opportunities.

I find it extraordinary, when I am appearing in front of the House to update it, for the hon. Gentleman to complain that I have not given the next update. I am here because, every stage that we agree with the Japanese, I want to share it with the House and have that debate. Of course there will be another debate when we have produced the final text, which he will be able to participate in. Many FTAs have subsidy clauses, but no FTA, apart from the one that the EU is demanding with the UK, has one bloc imposing its subsidy regime on another country.

The deal will, in essence, underwrite digital and data flows between the UK and Japan, so there will be no requirements such as data localisation and we will uphold the principles of net neutrality and enable the free flow of data. It will mean that brilliant companies, such as those in my hon. Friend’s constituency, will be able to sell their products into Japan without hinderance.

I am not quite clear what the hon. Gentleman’s question was—it seemed to be more of an accusation—but, as I have said, the subsidy clauses in the deal are standard FTA clauses. They are nothing like what the EU is demanding of us.

British beef and lamb were let back into the Japanese market in 2019. In this deal, we have achieved significant tariff reductions on beef and more protection of geographic indicators such as Welsh lamb and, of course, Ynys Môn sea salt from my hon. Friend’s constituency.

There are huge benefits to the economy of north-east Wales, whether in digital and data, agriculture such as Welsh lamb, or areas such as manufacturing, where we have reduced the cost of bringing in car parts and agreed closer regulatory co-operation between Japan and the UK.

We absolutely can expect an increase. As I said, British beef has only just been allowed back into the Japanese market, and we are now going to see significant tariff reductions. Northern Ireland is, of course, a strong exporter of such products, and it will also benefit from the increased protection of geographic indicators, whether for the Armagh Bramley apple or the Lough Neagh eel.

We are in active negotiations with the United States, and one of the things I have been very clear about is that we need to see those unfair section 232 tariffs on our steel removed.

There are two benefits for fisheries from this deal. First, we are going to see a reduction in tariffs on all kinds of fish, be it mackerel, cod or salmon. And my hon. Friend will be pleased to hear that traditional Grimsby smoked fish is one of the geographical indicators we are going to replicating in Japan.

We have already made significant progress, achieving agreement in principle; we are working on the legal scrubbing, and I will bringing this back to Parliament very soon.

My right hon. Friend is right about the investment in both countries. This deal seeks to deepen that economic relationship, in services, in manufacturing and, of course, in agriculture. I am delighted to say that Welsh lamb is on the list of geographical indicators that should be recognised by Japan.

I have recently visited Hitachi and Nissan, both of which are pleased with the progress we have made in the Japan deal. Of course, like all of us, they want a deal with the EU, but it has to be the right deal for Britain. My lesson, as Trade Secretary, is that we have to be prepared to hold out for the right deal.

My right hon. Friend is right on that, and one important aspect of this deal and our relationship with Japan is that it is a leading free enterprise democracy. We need to be working with like-minded countries, not only to protect free trade across the world, but to make sure trade is fair. That is one of the huge benefits of joining CPTPP: it is a high standards trade agreement of countries that believe in free trade.

I am pleased that the right hon. Gentleman appreciates the new listing of Orkney beef, Orkney lamb and Orkney Scottish Islands cheddar, and I think we also have a Shetland geographical indicator—

I am sorry to hear the right hon. Gentleman denigrate foodstuffs from his own constituency. [Hon. Members: “Wool”!] I am sorry but I did not hear him. We are still in the legal scrubbing process with Japan —[Interruption.] That has nothing to do with wool. Once that process is finished, we will be sharing our text with the International Trade Committee, which will then fully analyse it.

We are very committed to behaving fairly in all our dealings, but, as I made clear earlier, what the EU is asking for is not a standard FTA clause, but for the EU state aid regime to be put into UK law, and that is not on.

I do not think that £30 billion is to be sniffed at in terms of our trade with Japan. The hon. Lady must look to the future when what we will see is the vast majority of global growth coming from outside the EU. What we want is for the UK to be hitched to those growth opportunities, so that our businesses can expand. I do not see today as a maximum or a steady state. Of course we can do more in the future, but what these lower tariffs mean is that it will be easier and more economic for our businesses to export to Japan.

I will pass that call on to my colleague, the Defence Secretary. My hon. Friend is absolutely right about the central importance of TPP, not just as a huge economic opportunity for the United Kingdom, but as a beacon of free trade and fair play that will be vital as we seek to reform the global trading system.

Mr Speaker, I think some hon. Members have got the wrong title of today’s statement. They seem to think that it is about the EU referendum, which I believe happened three years ago.

My hon. Friend makes a very important point. We were previously being told that we would not get a deal with Japan, or we would not get a better deal than the EU had got with Japan. Well, that has been shown to be wrong, and the people who are going to benefit are the people of the midlands and around the country, who are going to see their goods able to be exported to Japan at a lower price, which means more jobs and more opportunities.

I can assure the hon. Gentleman that there are very strong climate change commitments in our agreement with Japan.

I certainly can. This deal goes beyond the deal the EU had agreed both in terms of UK business people being able to go to Japan and Japanese business people being able to come here. That is vitally important for industries such as financial services and professional services—for example, the increased ability to bring families with people on business visits—and there are wider rules about what type of professions qualify. Overall, this will see an increase in the exchange of professional people between both countries.

We have been very closely involving the Scottish Government in all our work. In fact, my right hon. Friend the Trade Minister spoke to his Scottish counterpart early today.

My hon. Friend certainly has a wide array of excellent Stiltons in her constituency. What we have done through this agreement is protect our access to low tariffs for Stilton, and gained a commitment from the Japanese to even wider access when we accede to CPTPP. Overall, for all types of cheese, we are seeing tariffs coming down, which will mean more of our great British product going into the Japanese market.

Of course, Lord Frost is negotiating the EU deal, and I know that one of his key areas is making sure we get good access for our agricultural products to the EU market. However, I would point out to the hon. Gentleman that of course the US is the second largest importer of lamb in the world, so I hope for his strong support for a US deal as well as for our deal with Japan.

I thank my hon. Friend for his question, and I know that the Minister for Trade Policy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), recently had a webinar with businesses from the Black Country, but of course as we approach 1 January, we want to encourage more businesses to get involved in this exciting trade with Japan. It is a huge market, the British brand is very appreciated there and it is also a gateway to the wider Pacific region.

I am very pleased to hear the hon. Member’s tribute to our great Prime Minister, Mrs Thatcher. That is a first from him, and I hope it is the first of many. The answer is that we want a successful British car industry, and car companies such as Nissan are supportive of this deal because it brings extra benefits to the UK.

My hon. Friend is absolutely right. This deal has benefits and opportunities for all of the UK. It is a central part of levelling up our country, ensuring that every region and nation has those opportunities and gets jobs and growth into its local areas.

This Government are committed to engaging business and farmers in our trade negotiations. Last Wednesday, I announced the creation of 11 new trade advisory groups to ensure that trade deals benefit the whole UK, from agriculture to the car industry.

We have engaged with SMEs directly, and we are also working through organisations such as the Federation of Small Businesses and the British Chambers of Commerce. What we are committed to is negotiating dedicated SME chapters in our trade agreements with the US, Australia, New Zealand and Japan to give our fantastic small businesses greater access to those markets.

The right hon. Lady will be very pleased to hear that we will shortly be announcing new groups—the strategic trade advisory group, as well as groups consulting civil society and the trade unions—and that is the way that we will engage those organisations in our trade negotiations. I have already had meetings with environmental groups and with trade unions, and I am committed to continuing to do that.

We are reformulating the new strategic advisory group, which will contain some large business representative organisations alongside civil society groups, and we will be announcing that in due course. None the less, there is a difference between the detailed consultation that we need to undergo on the specifics of trade negotiation—for example, rules of origin for specific industries—and then the broader strategic advice on our trade policy. It is right that we are consulting the trade unions, the environmental groups and organisations such as the CBI on that broader strategy as well, and we will be announcing that in due course. The hon. Lady will not have to wait much longer.

We have established an agrifood trade advisory group to ensure that farmers and food producers are involved in the details of our negotiations. We have also launched the Trade and Agriculture Commission to advise and inform on agriculture, trade policies and export opportunities for UK farmers.

I can confirm that, as part of the EU withdrawal Act, the ban in place on chlorinated chicken and hormone-treated beef remains after we leave the transition period on 1 January 2021.

I can absolutely give the hon. Gentleman that assurance, and I point out that NFU Scotland sits as part of our Trade and Agriculture Commission, looking at future trade policy.

My hon. Friend the Member for Moray (Douglas Ross) is a huge champion of Scottish farming and the Scotch whisky industry, and I am working extremely closely with him. I am also working very closely with NFU Scotland, and it is involved in the Trade and Agriculture Commission. The fundamental principle of our trade policy is that we will not allow our fantastic farmers, whether in Scotland, Wales, Wales or Northern Ireland, and their great produce to be undermined. What we want them to be doing is exporting more around the world.

In the EU withdrawal Act, all the import standards that we had as part of the EU have been transposed into UK law. Those import standards remain, and we will not be negotiating them away in any trade agreement. Furthermore, we have the Trade and Agriculture Commission, which is specifically involving organisations such as NFU Scotland, to ensure that British farmers get a fair deal and British consumers have products that they can have confidence in.

These standards, such as the ban on chlorinated chicken and hormone-injected beef, are already in UK law as part of the EU withdrawal Act. I have been explicit: it is not a matter for trade policy; it is a matter for our domestic law what standards we have in this country, and we are not trading it away, so it should not be part of any trade Bill. [Interruption.] The hon. Member for Sefton Central (Bill Esterson) speaks from a sedentary position. I do not think that it is the Government’s job to legislate twice for things that are already in legislation.

Any product that is sold in the UK has to be subject to the rules of the UK. Those standards are set by Food Standards Scotland and the Food Standards Agency in England and Wales, and those rules will not be changed as part of any trade deal with anyone, whether the US, Australia, New Zealand or Japan.

We have been pushing hard to remove tariffs in all our trade agreements in order to benefit UK consumers and business, whether the 28% tariff on dinner plates to the US, Japanese tariffs on footwear or the 8% tariff on Tim Tams with Australia.

I congratulate my hon. Friend on his championing of this fantastic ice cream van business. Such vans are indeed a great export and currently face tariffs of up to 5% with some of our negotiating partners. We will certainly be looking at removing those tariffs as well as other tariffs as part of the trade deals we are looking to strike.