Taxation (Cross-border Trade) Bill

Jack Brereton Excerpts

2nd reading: House of Commons
Monday 8th January 2018 Commons Chamber

[Jack Brereton (Stoke-on-Trent South) (Con)]

I agree with a number of the comments about trade remedies in relation to the ceramics industry, but I will touch on that later.

It is essential in leaving the EU and the EU customs union that we develop our own customs regime. It will put in place the foundations for the negotiations on leaving the EU but does not predetermine them, allowing the flexibility needed as with any negotiating process. I hope that we secure the best possible Brexit deal. But whatever the outcome may be from those negotiations on future customs—deal or not—it is essential to have legislation in place on the UK statute book when we leave. It is important that we have the strongest hand possible in the negotiations, with the powers in place as required to adapt the UK system to fit with the outcomes from the negotiations.

It is clear that we need to maintain certainty for our businesses, ensuring initially that there can be parity as far as possible between the existing EU customs union and the new regime developed for the UK, creating a smooth transitional period. This must be based on the continued strong support for rules-based free trade and the structures of international institutions set out particularly through the World Trade Organisation. An independent customs policy will allow us to pursue policies that are in the best interests of UK trade and our own economy, and in the interests of my constituents in Stoke-on-Trent South. We are clear on these Benches about our policy on trade and leaving the customs union. This is in stark contrast to the concoction of views from the Opposition Benches.

This is what my constituents voted for when they voted 70% to leave. They wanted to see a change—not just in leaving the EU, but in pursing our interests more effectively around the world and supporting all our communities to become more prosperous. Businesses in Stoke-on-Trent South, where we have a significant manufacturing base, see huge opportunities for developing new trade links outside the EU, and leaving the customs union will enable this. There is significant potential to grow our export markets in order to sell some of the fantastic products that we produce to countries such as the United States, Japan and other developed market economies around the world.

For manufacturing and specific industries such as ceramics in Stoke-on-Trent, it is critical that we have the right trade policies in place that support a robust trade remedies regime. This is about ensuring a level playing field for these industries, continuing the anti-dumping measures already put in place by the EU that have allowed industries such as ceramics to stabilise. I was pleased by the assurances given to me by the Secretary of State for International Trade when he visited my constituency that the current measures in place within the EU will continue post-Brexit.

Where we face unfair competition from state subsidisation in non-market economies such as China and others, resulting in huge overproduction, we need to ensure that it is not possible for below-value products to be dumped into the British market. Just to reflect on the vast scale of these distortions, there is currently an overproduction of tiles in China that is six times the entire EU annual demand. This puts at risk jobs in Stoke-on-Trent and other manufacturing industries across constituencies such as ours. To ensure that there can be real free trade, we must ensure that in leaving the EU there continues to be an effective trade remedies framework that aligns well with other WTO members.

In all, it is essential that the Bill is accepted by the House today to ensure that we have the necessary legislation in place when we leave the EU, with the flexibility to support our negotiations and a new tariffs regime that is in the national interest.