Global Britain
John Hayes Excerpts(4 years, 5 months ago)
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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.
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.
Points of Order
John Hayes Excerpts(5 years, 5 months ago)
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Mr Speaker
I am happy to assure the hon. Gentleman that, as has been my unfailing practice since 22 June 2009, I am always equally open to hearing from, and then, as best I can, responding to any Member of the House of Commons who approaches me.
Mr Speaker
I am very grateful to the right hon. Member for South Holland and The Deepings (Sir John Hayes), who is nodding vigorously in assent to that proposition from a sedentary position. The right hon. Gentleman and I have known each other for well over 20 years, and he knows that I am utterly and scrupulously fair-minded in these matters. I have been, I am, and I always will be. I am not responsible for what other people might be talking about. I do not plant stories in the newspapers. That is a black art perhaps practised by other people from time to time. It is not something that greatly concerns me. I do not get very excited about it. The hon. Member for Mid Worcestershire (Nigel Huddleston) is entirely entitled to seek the assurance of equality of treatment.
Let me just say one further thing in the light of some press reports. People really ought to understand, because it is incredibly simple, straightforward and uncontroversial, that any hon. or right hon. Member of this House who wishes to come to see the Speaker about something that concerns him or her can ask to do so, and diary permitting and subject to agreement on suitable dates, that would always happen. The notion that some particular advantage is given to a specified individual, or a little coterie, as part of a secret plot in private apartments is so staggeringly absurd that I would not expect for one moment that someone of the intelligence and perspicacity of the hon. Gentleman would give it credence for so much as a single second. I hope that is helpful to him.
European Union (Withdrawal) Act
John Hayes Excerpts(5 years, 5 months ago)
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Sir John Hayes (South Holland and The Deepings) (Con)
I want to speak about the exercise of political authority, the character of entitlement and the nature of expectations. Political power has one virtuous object: the defence and welfare of the people, and the advancement of their interests. For that to be true in practice, the exercise of power must be accountable. The European Union is esoteric, obtuse and obscure, so far as most of our constituents are concerned—they neither hold people to account nor understand how it works. I barely understand it myself, even after all those years in government. What I do know is that in every single Government Department in which I served, at some point a civil servant would come to me and say, “It’s bad news! There is a directive from Europe. How can we get round it? How can we get out of it? How can we dilute it?” Never did anyone come to me to say, “This has arrived from the European Union and it is good news for Britain.” Because the British people knew that, they voted to leave.
There are those in this place who have a deep sense of entitlement. They believe that they were born to rule. More than that, they believe that they are entitled to dictate the views of all those around them and to proscribe views that do not fit in with their globalist, liberal establishment preoccupations. They neither understand the British people nor truly care about them. They are determined to frustrate Brexit and to use every process to corrupt every possible method to do so. We must stand in their way: for the people against that liberal establishment.
I know that the Prime Minister has done her best. I am not one of those who thinks that she has failed, but she must do more. She has the national interest at heart, but the backstop cannot be sustainable, and the reason is straightforward—it could continue in perpetuity. It could create a contractual, treaty-based relationship with the European Union that we could not get out of even if this Parliament believed that it was in our national interest. The Attorney General told us so in December when he said:
“There is therefore no unilateral right for either party to terminate this arrangement. This means that if no superseding agreement can be reached within the implementation period, the protocol would be activated and in international law would subsist even if negotiations had broken down.”—[Official Report, 3 December 2018; Vol. 650, c. 547.]
That brings me to my third and final point. We now stand ready to deliver the expectations of the British people or to frustrate them. Our power in this place and power in government arise from the legitimacy conferred on us by those people who elect us and to whom we answer. If we frustrate them and let them down, I would be reminded of the words of Benjamin Disraeli, who said:
“Duty cannot exist without faith”,
and if we breach the faith of the British people in our integrity, we will do a disservice not only to this Parliament at this time, but to our very democratic system of government. I am not prepared to do that, and I know that Members across the Chamber are not prepared to do that, so I ask all my colleagues—wisdom does not reside on one side of the House or the other, by the way—to live up to what the people ask us to do. Do not support the deal tomorrow night, but back Brexit and ensure that we leave the EU lock, stock and barrel.
Mr Hammond
The hon. Lady acknowledges something that the Chancellor of the Duchy of Lancaster said in his contribution a couple of days ago. It is important for us to remember that any form of negotiated solution requires a withdrawal agreement, and that has to include provisions around the financial settlement, citizens’ rights and the Irish border. The EU has made it clear that it is not prepared to renegotiate the withdrawal agreement that has already been negotiated.
I am not suggesting that all those who recognise the need for a deal support the Prime Minister’s deal. I know that that is not true, but I want to make the case that this deal can provide a way forward for all those who support a deal. I want to explain why those who call for a deal, but not this deal, as a number of Members from all parts of the House have done—people who dream of a negotiated arrangement without the Irish backstop or of single market access without the entry fee and without free movement of people—are simply dreaming, because the deal that is on the table represents the high water mark. A withdrawal agreement is a necessary precondition to any negotiated deal with the EU and to any form of transition or implementation period. Without a withdrawal agreement, the EU will not negotiate any form of future relationship.
On citizens and money, we have reached good outcomes in the withdrawal agreement. On the Irish protocol, clearly none of us is comfortable with the temporary backstop arrangement, which is why all of us—the UK Government, the Irish Government and the EU—will be seeking to avoid its use under any circumstances and have committed to using our best endeavours to ensure that it will never be used and that in the unlikely event that it is, it is replaced by new arrangements as rapidly as possible. It is not a trivial point that the backstop fundamentally challenges the EU’s core principles.
We should be in no doubt, either, that the EU means what it says about the withdrawal agreement not being open for renegotiation. If we want a negotiated future relationship of any kind—I say this to the hon. Member for Manchester Central—it will be based on the withdrawal agreement that is before the House tonight.
Sir John Hayes
We have heard once again that the backstop is undesirable and no one wants it. We have heard that it is temporary and an insurance policy. Every insurance policy is time-limited. If neither side wants it and everyone acknowledges that it is temporary, why can we not put a date on it and end it at a particular time? Surely that is not unreasonable.
Mr Hammond
I do not know how much engagement my right hon. Friend has with the insurance industry, but it would baulk at the notion that an insurance policy is time-limited. If someone is covered by an insurance policy against the acquisition of some terrible disease, such as asbestosis, it may be 10 or 20 years later that they discover they are a sufferer. They would expect the insurance put in place to cover them. The European Union and the Irish Government are very clear that the withdrawal agreement is negotiated on the basis that the backstop provides an absolute reassurance that in every circumstance, the Irish border will remain open.
The Prime Minister said earlier this evening that her deal is a compromise, and she was clear in her Lancaster House speech at the outset of the process that achieving an agreement would require compromise. The political declaration that has been achieved has exceeded our expectations in the commitments that the EU has made: an agreement to construct the closest economic relationship between the EU and any advanced economy in the world; a free trade area for goods with no tariffs, no fees, no charges and no quantitative restrictions; a commitment to an ambitious relationship on services and investment, including financial services, building on the most ambitious achievements of EU trade deals; and agreement to further co-operation across a wide range of sectors, from transport to energy and data. It provides a strong basis on which to negotiate the legal text of our future partnership agreement, and the Prime Minister has made it clear that we expect Parliament to play a prominent role as we shape the political declaration into a legally binding text.
Oral Answers to Questions
John Hayes Excerpts(6 years, 3 months ago)
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Mr John Hayes (South Holland and The Deepings) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I am grateful for my right hon. Friend’s question. I would of course be delighted to meet him and colleagues to discuss food and drink, which is so important both to his constituency and mine. I am delighted to say that last year food and drink exports went up by £2 billion to £22 billion, and that, for the first time ever, we have a Department of State whose only role is to focus on the international economic interests of this nation. I will be delighted to meet him to discuss how we can do more.
Oral Answers to Questions
John Hayes Excerpts(6 years, 4 months ago)
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Graham Stuart
My Department’s ODI support pilots have successfully demonstrated the impact that the Government can have in supporting UK businesses to overcome barriers to market access and to expand overseas. By harnessing the private sector wherever possible and focusing Government interventions only on market failures, my Department has successfully supported overseas investment for a range of UK businesses in six global markets.
Mr John Hayes (South Holland and The Deepings) (Con)
The Minister for Trade Policy (Greg Hands)
In 2016, the UK had a trade deficit with the EU of £70.97 billion, and a trade surplus of £39 billion with non-EU countries, up from £33.6 billion in 2015. The latest trade figures show that in 2017, the UK’s trade deficit in goods and services narrowed by £7 billion to £33.7 billion.
Mr Hayes
Balance of trade figures were once regarded as pivotal. They were even thought to win or lose elections. Given that we are now going to escape from the constraining clutches of the European Union, will my right hon. Friend invest again in old friends and rejuvenate our relationships in the realm with allies such as Australia and New Zealand? What steps has he taken to ensure preferential arrangements with such old allies?
Greg Hands
My right hon. Friend asks a very good question. First, I should like to put on record my thanks to him for leading various Government trade delegations in recent years, including one to Colombia. I know that he takes a strong interest in this subject. As I said earlier, we have set up trade working groups with Canada, the United States, Australia and New Zealand, and, unlike Opposition Front Benchers, we also voted for the comprehensive economic and trade agreement, the EU’s free trade agreement with Canada. The Secretary of State has been in all four of those markets in the past year, leading efforts to break down trade barriers and to seek new trade agreements.