EU-Japan Economic Partnership Agreement

Debate between Geraint Davies and George Hollingbery

Tuesday 26th June 2018 Commons Chamber

[George Hollingbery]

I am not entirely sure whether the right hon. Gentleman is talking about my achievements or those of my right hon. Friend. [Interruption.] The establishment, in conjunction with the Secretary of State, of a brand new Department for International Trade and preparing ourselves for Brexit is evidence in itself—I could list a great many things.

The Government have an overarching commitment to free trade—

[Geraint Davies (Swansea West) (Lab/Co-op)]

With all due respect to his predecessor, does the Minister accept that there has been no firming up of deals with third countries that we are assured will continue? Furthermore, South Korea, Chile and Australia have already said that they want to renegotiate their deals, so we have been left in a state of uncertainty and without any deals.

[George Hollingbery]

The fact is that the previous Minister was engaged, as was I, in a great many lines of negotiation with countries that have agreement with the EU. Progress is being made and will continue to be made under this Administration.

The Government have an overarching commitment to free trade, which is a fantastic and progressive means of stimulating economic growth, creating jobs and providing greater consumer choice. The UK has been, and will continue to be, a leading voice in support of free trade globally. We will continue to support the EU’s ambitious trade agenda while we remain an EU member state. As I have just illustrated, this includes some 40 trade agreements, including the EPA with Japan, which we are talking about today. Ongoing UK support for these agreements, including in respect of signature and conclusion of the Japan agreement in July, will send a positive message about our commitment to global free trade, now and as we prepare to leave the EU.

--- Later in debate ---

[George Hollingbery]

I thank the hon. Lady for her intervention, but I should point out that there have been a number of large-scale investments by Japanese companies in the UK. Toyota, Nissan and Honda have all recently made large-scale investments. Furthermore, the trade deal that has been negotiated includes increasing access for supply chain elements to the automotive market into Japan in a way in which it has not hitherto been accessible. We should always remember that there are small businesses that will have access to the market that did not realistically have that access before.

Hon. Members will have seen from the Government’s detailed and comprehensive impact assessment that the EPA is estimated to be worth up to £3 billion to UK GDP annually in the long run. UK imports are due to grow by up to £8.4 billion per year in the long run, which reflects reduced input costs for British businesses, which in turn are expected to lower prices for consumers. UK exports will increase by up to £5.4 billion, with the largest gains in the chemicals and automotive sectors.

[Geraint Davies]

Does the Minister accept that when we technically exit in March there will be no legal obligation for Japan to keep us in this trade agreement, and that after the transition period we certainly will not be in it? There is every risk we will be out in the cold. That just shows we are better negotiating as part of team EU.

[George Hollingbery]

Clearly, all sorts of scenarios are possible, but the hon. Gentleman will also know that a piece of legislation is coming to this House shortly that lays the framework to ensure that we can continue those arrangements. As I have already said, efforts are ongoing across the piece to go around those 40 organisations and 70 countries with which we already have agreements such that we can continue them after exit.