United States Tariffs: Steel and Aluminium

Debate between Hannah Bardell and Liam Fox

Report stage: House of Commons
Monday 12th March 2018 Commons Chamber

[Dr Fox]

The EU is taking countermeasures because the EU views section 232 itself as a safeguard. Any action that the United States were to take in response to that would be completely out of line with international trade law, as well as exacerbating an already tense situation.

[Hannah Bardell (Livingston) (SNP)]

This really is a blow to those right-wing, free-market Brexiteers who argue that the US will welcome a trade deal with open arms. Anyone looking at the somewhat unhinged tweets coming out of President Trump’s office will tell us otherwise. Given the Secretary of State’s nationality and where he was brought up, I am interested to know whether he has raised the matter specifically of Scottish steel and aluminium, and the steel industry’s impact on all nations of the UK. It was in 1992 that his Conservative Government closed Ravenscraig in Scotland, decimating 1,200 jobs and livelihoods, and it was the Scottish National party Government in Scotland who brought back into production the steelworks in Clydebridge and Dalzell and the aluminium smelter in Lochaber. We are fed up in Scotland with clearing up his Government’s mess and we do not want to have to do it again.

We know from recent reports in the press that the geographical indicators of products such as Scotch whisky could be under threat in a US-UK trade deal. The Secretary of State may have seen the article in The Scotsman last week suggesting that Scotch whisky is

“among the products that could carry a ‘Made in America’ tag after Brexit.”

It further said:

“US lobbyists are calling for the UK to drop geographical name protections after Brexit to allow supermarkets to import American copies.”

That would be outrageous.

Will the Secretary of State commit to protecting our valuable steel and aluminium industries and not to trading off our vital GIs for Scotch whisky in any trade deals? Given that a Tory Brexit would reduce UK GDP by 8% and put at risk some of our key exports, will he finally reconsider his approach to Brexit and admit that he was wrong in suggesting that leaving the EU single market and customs union could somehow be overcome by magical trade deals with the US and the EU that were going to be, in his words, the “easiest in human history”?

[Dr Fox]

It is not long since I remember the SNP being delighted at some of Mr Trump’s tweets, when he was having some of his relationships with the previous SNP leader.

We can best tackle this issue as a united United Kingdom in line with our European Union partners. The hon. Lady dares to raise the issue of GI. These matters are in the roll-over of the EU trade agreement for which we are trying to get continuity in our current Trade Bill and the customs Bill. She needs to understand that she actually voted against the roll-over of those Bills that would have given the very protections for which she is asking.

--- Later in debate ---

[Dr Fox]

We touched on that earlier. We will do that by replicating the trade remedies measures that exist. To do it, however, we have to set up a Trade Remedies Authority under the Trade Bill that is currently going through the House. I hope that the Opposition parties will look again at their rather inexplicable decision to vote against the setting up of a Trade Remedies Authority.

[Hannah Bardell]

On a point of order, Mr Deputy Speaker.

Oral Answers to Questions

Debate between Hannah Bardell and Liam Fox

Thursday 22nd February 2018 Commons Chamber

[Hannah Bardell (Livingston) (SNP)]

Although my party does not want to leave the single market or the customs union, a properly planned and managed transition period is always top of the agenda for businesses across Scotland, particularly in our thriving food and drink sector. Does the Secretary of State agree with his own Government that a sensible transition period is required, or is he sticking to his cliff-edge position, which will have a devastating impact for businesses across Scotland and the UK?

[Dr Fox]

We believe across Government that the simplest way to get to the position that we will be able to enjoy, of leaving the single market and the customs union, is via a transition period that is carefully planned and that gives predictability to business.

Oral Answers to Questions

Debate between Hannah Bardell and Liam Fox

Thursday 11th January 2018 Commons Chamber

[Dr Fox]

Alignment is about pursuing the same objectives; it is not the same as requiring regulatory harmonisation. We hope that our agreement with the Republic of Ireland is covered by a full and comprehensive agreement with the rest of the European Union.

[Hannah Bardell (Livingston) (SNP)]

The Irish Government have been clear that a deal that maintains regulatory alignment means free movement of people, goods and services across the border to Northern Ireland. Given that the United Kingdom Government have shown that they are willing to give a nation of the UK a differential deal, will they now bring to Brussels the Scottish Government’s proposals to keep Scotland in the single market and customs union, and if not, why not?

[Dr Fox]

Why not? Because when we leave the European Union we leave the single market and the customs union—it is not that complicated.

Trade Bill

Debate between Hannah Bardell and Liam Fox

Tuesday 9th January 2018 Commons Chamber

[Dr Fox]

As my hon. Friend knows, detail on the implementation of the Trade Remedies Authority will be in secondary legislation subsequent to the passing of the Taxation (Cross-border Trade) Bill, which we debated in this House last night. The Trade Bill merely creates the framework for creating the Trade Remedies Authority, which will be an arm’s length authority. These issues are often commercially sensitive and market sensitive, so it is important that we are seen not to have overt political intervention. Likewise, if we want to be WTO compliant, we have to be as transparent as possible. We will want to consult further, but we want to set out the details as soon as possible.

Closely related to that is the Bill’s fourth aim. We want to enable HMRC to collect and share essential data on the United Kingdom’s trade flows, which will enable DIT and bodies such as the Trade Remedies Authority to perform essential trade functions such as providing evidence to WTO panels that rule on trade disputes. It will also provide a vital insight into our export performance during our development of trade policy.

[Hannah Bardell (Livingston) (SNP)]

Can the Secretary of State give us an idea of how much more resource HMRC will get so it can do that job of collecting data? Will the Government expand the number of HMRC offices, rather than reducing the number of offices, as he and his Government are currently doing?

[Dr Fox]

My understanding is that HMRC was given extra resource in advance, before we reached this point. It seems strange that we do not already collect this data. If we want better-informed policy, we need better datasets. It is merely a sensible option for any Government to collect this data as widely as possible, so that we operate on the basis of better information.

Before I further explain the process, this is a good juncture to correct some of the misunderstandings that seem to have grown, deliberately or otherwise, around the Trade Bill. As I have explained, the Bill contains two powers that allow the Government to amend primary legislation: the power in clause 2 to implement the trade agreements that the UK adopts; and the power in clause 7 to allow HMRC to collect the export information that the hon. Lady has just mentioned. Both these powers are limited in scope and restricted in their use. Contrary to the belief of some in this House and beyond, seemingly including the shadow Secretary of State for International Trade, this Bill does not legislate for powers that could be used when implementing new free trade agreements with countries with which the EU does not have a free trade agreement before exit day. An article in The Guardian—I do not avidly read it, but this was brought to my attention—written by him incorrectly asserted that the Government would only be obliged to present the text of new trade agreements under the convention of the Ponsonby rule. As I mentioned earlier, the scrutiny of new agreements requiring ratification is ensured by the Constitutional Reform and Governance Act 2010.

Oral Answers to Questions

Debate between Hannah Bardell and Liam Fox

Thursday 12th October 2017 Commons Chamber

[Dr Fox]

The Government will bring forward legislation that sets out our plans for a trade remedies authority to ensure that the protections that UK business currently has—and that the UK workforce currently enjoy—are continued when we leave the European Union.

[Hannah Bardell (Livingston) (SNP)]

White Papers are all good and well, but yesterday the Scottish Government published a report showing what is at stake for business as the UK edges closer to the Brexit cliff edge. We know that the Secretary of State has consulted the business community to find out how it will be affected, but will he commit today to publishing the findings, as called for by a range of MPs across the House, even if they show that business wants to stay in the single market and customs union? At what point will this Government stop governing in secret and publish the reality of the impact of Brexit?

[Dr Fox]

The Government are of course extremely concerned about any perceptions of instability. We will consult widely, particularly when it comes to new free trade agreements, but of course the greatest threat to stability, particularly in Scotland, is the insistence of the Scottish Government on threatening a second referendum on independence.

Export Licensing: High Court Judgment

Debate between Hannah Bardell and Liam Fox

Monday 10th July 2017 Commons Chamber

[Dr Fox]

As my right hon. Friend knows from his experience, there are a number of criteria for refusals and revocations; if he has not seen the list, I will ensure that he is sent it. If we believed that we were not able to convince ourselves that we were operating entirely within the consolidated criteria, we could suspend extant licences and refuse new ones. As I made very clear, if we believed that we were not fully in line with the criteria, we would do so.

[Hannah Bardell (Livingston) (SNP)]

I thank the Secretary of State for advance notice of the statement. I apologise for my hoarse voice—I think I shouted a bit too much in excitement at London Pride on Saturday.

Amnesty International, Human Rights Watch and other human rights campaign groups believe that UK and US weapons have been used against Yemeni civilians. As things stand, 10,000 civilians have been killed, 50,000 wounded and 3 million displaced. Today’s judgment raises a number of questions. We pay tribute to Campaign Against Arms Trade, which has taken the Government to court and forced them to explain themselves. We acknowledge CAAT’s plan to appeal this decision and wish it well, but the UK Government should be coming to this house with the facts at all times, not having to be dragged through the courts for the public to get a full explanation.

Does the Secretary of State accept that it cannot be beneficial if the public lose confidence in the Government over their relationship with a supposed ally—one that is in flagrant breach of international humanitarian law in Yemen? Let us not forget that Saudi Arabia, the UK’s largest weapons client, has bought more than £3 billion-worth of British arms in the past two years. UK and EU arms sales rules state that export licences cannot be granted if there is a “clear risk” that the equipment could be used to break international humanitarian law.

The Secretary of State says that he takes this very seriously. He will know that our former colleagues Angus Robertson and Tasmina Ahmed-Sheikh were strong advocates for the re-establishment of the Committees on Arms Export Controls, which the UK Government promised before the election would be reconvened. When will that happen, and when will the first meeting take place? Can he give us categorical assurances that the election does not mean that such an important Committee will be kicked into the long grass?

[Dr Fox]

I thank the hon. Lady for her comments. As the judgment set out, the case focused on the airstrikes conducted by a coalition led by Saudi Arabia in support of the legitimate Government of Yemen against the Houthi rebellion. We need to put on record that that is the origin of the conflict. Of course the humanitarian issues in Yemen are deeply troubling to all of us; we have all seen the pictures. The United Kingdom, through our various agencies and Government Departments, has been fulfilling as much of our diplomatic and humanitarian actions as we can in the circumstances. This will only be brought to an end by a political settlement, not by a military settlement.

The hon. Lady talks about the “clear risk” test. The judgment could not have been clearer that the Government met the “clear risk” test of criterion 2c in the way they carried this out.

On the hon. Lady’s point about the Committees on Arms Export Controls, I have absolutely no objection to such a Committee being set up. In fact, I think it is beneficial to us to ensure at all times the highest reputation of our probity in these matters. I would have absolutely no objection whatsoever to such a Committee being in place.

Exiting the European Union and Global Trade

Debate between Hannah Bardell and Liam Fox

Thursday 6th July 2017 Commons Chamber

[Hannah Bardell (Livingston) (SNP)]

The right hon. Gentleman speaks about the customs union and the Lancaster House speech, but does he not share my concern, and the concern of the Scotch whisky industry, that the customs processes as they stand are creaking under pressure? I should declare an interest as the chair of the all-party group on Scotch whisky, which met for the first time last night. Those processes are being transformed into a new digital process, but there is little confidence that it will be able to cope with the process of Brexit. What guarantees can he give that industry that those issues will be solved?

[Dr Fox]

The hon. Lady raises a fair point about global trade facilitation. We have just signed the trade facilitation agreement, which aims to reduce border friction across the world. It is estimated that that is worth about £70 billion in the global economy. One of the biggest barriers facing Scotch whisky, however, is tariff barriers. The Department has been trying to talk to Governments such as India’s who have very high tariffs against Scotch whisky, which is not good for their own consumers because it encourages an illicit trade. I encourage all those Governments to indulge liberally in the pleasures of single malt—as I do myself.

By 2010, G7 and G20 countries were estimated to be operating some 300 non-tariff barriers to trade. By 2015, that number had mushroomed to more than 1,200. There are those who, having accrued great wealth, would pull up the drawbridge behind them. We cannot let that happen. This country’s own commitment to free trade was perhaps most clearly illustrated by the repeal of the Corn Laws in 1846. The Conservative Prime Minister Sir Robert Peel rightly saw protectionism as an attempt to preserve the wealth of a privileged few at the expense of the many. Import tariffs were all but abolished and Britain’s free trade principles were created to put bread into the mouths of the hungry majority. Now, as then, it is free trade and competition that will do most to address inequality and safeguard the interests of working people. More than ever, it is up to nations that possess the economic and diplomatic means to reassert the rationale of free trade to do so.