Leaving the EU: Future Trade Remedies

Jonathan Edwards Excerpts

Tuesday 17th April 2018 Westminster Hall

[Jack Brereton]

I agree that it is important that we have a transparent and open approach. It is certainly important to ensure that there is transparency through an independent trade remedies authority.

Most pressingly, I seek assurances from the Minister that we will have effective anti-dumping measures which ensure that there is a level and fair playing field on which free trade can be played out. Our job is to embrace the opportunities of Brexit and use Britain’s position as a leading member of the World Trade Organisation to push for free and fair trade globally. We need the same level and fair playing field globally that we pushed for on the regional stage of the single market as a member of the European Union.

Thanks to this Government, global Britain starts from a solid economic base, underpinned by a world-renowned and hugely attractive legal system with sound governance rules that has been hard built over centuries. The UK is a great place to do business. In a competitive world, it needs to be. I do not argue that we should reinvent the corn laws—far from it. British industry must continue its efforts to be more productive and innovative. Although our modern industrial strategy will create an environment from which winners can emerge, it will not pick winners, and it will not prop up or bail out those who fail to satisfy their customer base, diversify their product range or provide the right value for money with products that are worth every penny of their competitive price.

I am hugely encouraged that manufacturing productivity increased by 2.6% in the fourth quarter of 2017, not just because that might be a signal that we are finally resolving the productivity puzzle but because it shows that the renaissance of British manufacturing and export success is, unlike what some people claim, built on more than the current low trading range of the pound. It is true that the lower pound helps with finding new markets in the short term, but achieving longer-term competitiveness will be key to keeping those markets and expanding them when exchange rates change again. Getting domestic policies right, keeping taxes and the regulatory burden down and getting skills and the entrepreneurial spirit high is every bit as important to our future trade as the adoption of remedial measures sanctioned by the WTO.

By getting both domestic policies and international rules right, and having free and fair rules-based markets guiding both, we can continue to boost the number of UK firms that engage in export markets. That is not just theory; it is happening in practice. City A.M. reported only yesterday that, according to Lloyds bank’s latest business barometer, two in five businesses in the UK are planning to export for the first time or enter a new market within six months. The prospect of increased profits and turnover is the main reason why firms are looking to expand their business abroad. Almost one fifth explained that they were looking to export due to existing demand overseas, while only 13% were driven by exchange rates. There are big growth markets out there, and the Prime Minister is right to highlight and drive the amazing opportunities for trade across the Commonwealth.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I congratulate the hon. Gentleman on securing the debate, but it seems to me that we are entering a global trade war, largely driven by the protectionist policies of the United States. Is it his view that domestic industries are better protected within the EU customs union or outside it?

[Jack Brereton]

I do not think it needs to be. We should pursue opportunities globally. As I said, there are real opportunities out there in the Commonwealth—and, yes, with the United States, too—to improve our trade links and the opportunities of trade for British businesses, such as those in my Stoke-on-Trent constituency.

We need more businesses to be confident exporters. For that, they need the right skills, the right support from DIT, the right trading opportunities and trade agreements negotiated by Britain in the British national interest. We need of course to ensure that, as a nation, we make full use of digital technology and use the internet as a worldwide exports showroom and sales platform. But we also need to guard against material retardation of the establishment of new industries in the UK, either from barriers to entry due to costs or regulation here at home, or from imports that are unfairly and illegally dumped or subsidised by those who wish to nip competition in the bud.