British Exports

Iain Duncan Smith Excerpts

Tuesday 20th November 2018 Commons Chamber

[Andrea Jenkyns]

I thank my hon. Friend for his question. This is why I am a keen Brexiteer; rather than sending money across to the EU, I would like to see it invested in our own industries, and in research and development, so that we can really have a bright future for this country.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

There are two elements to point out about that previous intervention. First, Germany has done significantly well, but a huge amount of that has been because its currency level at the moment is far lower than it would have been had it not been in the euro. Secondly, that has caused extraordinary damage to countries that were massive exporters, such as Italy and others, which are now literally finding themselves impoverished by the fact that so much of the Germans’ production is now dumped into their countries, at their expense. So we have to be careful when we recognise what Germany has achieved. There is much it has achieved. We need to recognise that we have to invest more and make sure we are more productive. There are plenty of ways to do that. We need to be careful when we extol the virtues of what has been going on in Europe.

[Andrea Jenkyns]

I thank my right hon. Friend for his strong contribution. He is second to none in his commitment and passion for this, and I thank him for all the work he has done for decades.

There is near consensus among economists that free trade generates more wealth than any system that restricts cross-border exchange. The great exporting businesses in my constituency want us to be able to trade freely around the world, not just with the EU27. Protectionism benefits producers over consumers, favours big business over small businesses and hurts lower-income consumers more than higher-income consumers. Trade barriers are simply taxes on consumers and businesses that impede the global division of labour and the creation of wealth. That certainly does not match Conservative values.

I am lucky to have some incredible small and medium-sized enterprises and big companies in my constituency that already export around the world, but they would like to see lower tariffs and free trade opportunities further afield. Ties Planet exports to 190 countries around the world, and Associated Waste Management exports 170 tonnes of refuse-derived fuel around the world. The Coca-Cola plant in my constituency is the biggest soft drinks plant in Europe, and it manufactures and distributes more than 100 million cases of soft drinks a year. I am sure that Coca-Cola, too, would like to see low tariffs, not only in Europe but globally. The British people voted to take back control and Brexit should now be supporting British exporters.

One third of the world’s population currently lives in the Commonwealth. Our close relationship with this wonderful organisation and its respect for Britain could easily be tapped.

[Mr Duncan Smith]

My hon. Friend mentioned soft drinks. Given that the Scottish nationalists are on the Benches opposite, will she also recognise that Scotch whisky is exported to places such as India that charge huge tariffs on it? One great benefit for that soft drink would be that it could be exported much more, and many of us who enjoy that soft drink occasionally in the evening would see that we had done a huge amount of good for businesses, even in Scotland.

[Andrea Jenkyns]

As somebody who gets tipsy on one glass of wine, I will leave the whisky drinking to my right hon. Friend and my husband.

Britain’s entry into the European Economic Community in 1973, and the EEC’s evolution into the European Union, has meant that it has been impossible for the UK to enter independently into negotiations with Commonwealth states to establish free trade agreements. However, after Britain’s decision on 23 June 2016 to leave the EU, and as article 50 of the EU’s Lisbon treaty has been invoked, Britain may be able to negotiate its own trade deals.