Global Britain

John Hayes Excerpts

Thursday 30th January 2020 Commons Chamber

[The Secretary of State for International Trade (Elizabeth Truss)]

I beg to move,

That this House has considered global Britain.

As the clock strikes 11 tomorrow night, we will start building the UK’s future as a sovereign trading nation. I should make clear that there are many aspects of global Britain that have nothing to do with trade. The Prime Minister will be leading an integrated defence, security and foreign policy review that will examine all aspects of our place in the world. The Foreign Secretary is spending today with his counterpart from our most important ally, the United States. The Government are committed to exceeding the 2% NATO defence spending target, and to spending 0.7% of GNP on development. Today, however, I will restrict my remarks to one aspect of the story, and that is trade.

Global Britain will be a beacon for free enterprise, free trade and free people across the world, and we will light that beacon championing the values for which the UK has long been known. From our abolition of the corn laws in 1846 to helping to found the General Agreement on Tariffs and Trade in 1948, the UK has long been a global leader in shaping the rules-based system, but from 1973 onwards that role has been increasingly curtailed. Tomorrow we will begin to reclaim that global leadership.

It is more than two centuries since our great political economist David Ricardo outlined the idea of comparative advantage, demonstrating how free and open trade benefits everyone, but it is an idea that still illuminates our country, and we have an opportunity to take that message out and across the world. Why is that important? First, it is the right thing to do. Believing in freedom is about more than economic theory. It is about believing in our freedom to set up a business, choose what we buy, and chart our own future. In its essence, free trade is about expanding that freedom across borders. It is the catalyst for sharing ideas, products, services and the innovations that improve all our lives. If we believe that people have the choice to access the best goods and services, we must also believe in free trade.

Secondly, that opportunity is important because Britain’s global leadership is sorely needed. Protectionist measures are on the rise across the world, increasing by three times the rate at the onset of the financial crisis. Brexit is the opportunity for this country to turn the tide, and to be a global champion of free, rules-based trade with the World Trade Organisation at its heart. That is not only morally right, but in the interests of our country. It is forecast that 90% of global growth will come from outside the EU. The world is bursting with opportunity—opportunity that Britain will seize with both hands.

[Sir John Hayes (South Holland and The Deepings) (Con)]

Leaving aside our contrasting views on Ricardo and the corn laws, I believe that my right hon. Friend and I share a distaste for the vapid, elitist supra- nationalism that the EU represents. Will she consider the possibility of a preferential trading arrangement with our Commonwealth allies, as suggested by the former President of Nigeria? That would build on the bond which already exists in Her Majesty’s realm and beyond.

[Elizabeth Truss]

My right hon. Friend has made a very good point. The Commonwealth makes up a third of the members of the WTO, and I am determined that we will work with Commonwealth partners not only to reduce tariffs, but to promote the rules-based international system that will benefit all those nations.

As I heard during a recent visit to Stoke-on-Trent, ceramics producers currently face a 28% tariff to export their fantastic crockery to the United States. We export nearly £8 billion worth of cars to the US every year, but, again, we face tariffs. British beef and lamb have been banned from entering the US for more than 20 years. More free trade with our partners, reducing those tariffs and barriers, will play an integral part in our agenda to level up the country.

--- Later in debate ---

[Barry Gardiner (Brent North) (Lab)]

The system of rules that has been at the core of world trade for the past 70 years is at breaking point. Corporations such as Google, Amazon and Huawei have arrogated to themselves enormous power. They are able to stand up to sovereign Governments, if not always their own, and to undermine fiscal and public policy. Countries such as China are emerging from non-market economy status with labour and utility costs that enable them to dump subsidised products on to western markets that undercut our domestic producers. The response from the USA has been increased protectionism, imposing arbitrary tariffs on aircraft, steel, aluminium and—my personal non-favourite—Scotch whisky, the impacts of which colleagues will be debating later today in Westminster Hall. At the end of last year, the American President made good on his promise to undermine the WTO by refusing to ratify the appointments to the appellate court. These actions go to the heart of the multilateral rules-based order.

None of this is meant as a criticism of Government. It is merely to set out the context against which the prudence of Government action must be assessed, because it is against this background that our country is tomorrow pulling out of the largest and most powerful free trade grouping in the world and, paradoxically, doing so in the name of free trade itself. It has therefore never been more important for this Parliament to articulate its support for an open and fair rules-based global trading system that creates wealth and jobs in a way that protects workplace rights and environmental standards and ensures that vital sectors of our national economy are protected from unfair external competition.

[Sir John Hayes]

The hon. Gentleman knows that I share his distaste for monolithic multinational companies that do not play by the rules, but the EU has been singularly ineffective at dealing with them, as he illustrated in his opening remarks. Why, then, does he think our departure will not give us a better opportunity to deal with exactly the problems he outlines?

[Barry Gardiner]

The right hon. Gentleman mistakes me. I am not seeking to reopen the debate about the EU. We are leaving the EU tomorrow, and we must forge a positive and constructive future.

Madam Deputy Speaker, if you feel any sense of déjà vu in what I believe is the fifth debate entitled “Global Britain” in the past two years, then for my part it will only be in asking the Government to set out a coherent strategy as to what that phrase is going to mean in practice. In previous debates, I heard calls from Government Members to bring back the royal yacht and talk of something called empire 2.0, but that does not constitute a strategy. To ask the Government for their strategy is not to talk Britain down or to act against the national interest; it is simply to ask that we work together as grown-ups to devise a new relationship with our closest trading partners and to agree a set of priorities for our country’s future relations with others in an increasingly fraught geopolitical context.