EU-US Trade and Investment Agreement
Debate between Jonathan Evans and William Cash(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jonathan Evans (Cardiff North) (Con)
It is a great privilege to follow the hon. Member for West Bromwich West (Mr Bailey), and I agree with much of what he had to say. Let me take the opportunity to congratulate the right hon. Member for Wentworth and Dearne (John Healey) and my hon. Friend the Member for Aberconwy (Guto Bebb), who played such an important part in creating the new all-party group, whose establishment is both timely and necessary if we are to realise some of the prizes that should flow from a new transatlantic trade deal. Let me make it clear, bearing in mind some of the speeches we have heard, that I regard myself as an old-fashioned Tory. I believe in free trade, and I think it crucial for parliamentarians here in the UK and throughout Europe to be well aware and fully informed of all the arguments and implications at the very earliest opportunity.
Mr Cash
It is inevitable. When my hon. Friend referred to himself as an old-fashioned Tory, I was bound to reflect on the fact that nobody was much more protectionist than Disraeli and that nobody was more in favour of free trade than John Bright and Richard Cobden, who were of course Liberals.
Jonathan Evans
I cannot help thinking that we are missing my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). I had thought that we were likely to get on to the corn laws at some stage of this debate, but let us move that issue to one side.
The negotiations will be led by the European Commission, which is inevitable as we currently stand, and the White House. Legislators in Europe, however, will in many instances have the final say on whatever emerges from these negotiations, so I view early engagement with parliamentarians as of real importance. I also want to welcome the willingness of Ministers—we have already seen it from my noble Friend Lord Green and my right hon. and learned Friend the Minister without Portfolio—fully to engage with us. I welcome, too, the commitment of President Obama to place the delivery of this new trade partnership as a key objective of his final term, but it is important to understand that the aim of creating a truly free transatlantic market is not a recent phenomenon.
As colleagues may know, after an all too short period of service in this House during John Major’s premiership, I served as a Member of the European Parliament, leading the Conservative delegation, and I was later elected by the European Parliament as the president of its relations with the US Congress. I took up that post eight years ago, and from then on it was clear to me that many legislators on both sides of the Atlantic had already devoted decades of effort to bringing about much closer economic co-operation between the United States and Europe. I pay particular tribute to two British MEPs who will leave the European Parliament next year for the unswerving commitment that they have shown to the promotion of that trade partnership, and to the achievement of a truly free transatlantic market.
My Conservative colleague James Elles, who served six terms in the European Parliament, was the founder of the Transatlantic Policy Network, a forum for debate between Atlanticist legislators which I believe has played an important role in bringing us to where we are today. One former US chairman of the TPN is Chuck Hagel, who now serves at the heart of the US Administration as Defence Secretary. There is no doubt that many other members of the Obama Administration share the objectives that have been promoted by the TPN.
Another former TPN chairman who will leave the European Parliament next year is the Labour MEP for the South East, Peter Skinner. It may be strange to hear it said from these Benches, but I am pleased to say that Peter is one of the best-regarded parliamentarians in Brussels. We worked very closely together in the Economic and Monetary Affairs Committee of the Parliament, and also later when I served as chair of the advisory board of the Transatlantic Economic Council, set up by Chancellor Merkel and President Bush in 2007. I well recall encouraging Peter to join me in establishing better links with our US friends, words that he took quite literally—I mention this particularly in the context of an earlier intervention—when he met his future wife Kimberley, a Penn State republican, during one of our parliamentary visits.
Much of the background research on the massive opportunities for economic growth to be gained from an EU-US an agreement has been done by the Centre for Transatlantic Relations at Johns Hopkins university in Washington. Daniel S. Hamilton and Joseph P. Quinlan from the university produce an annual report on the transatlantic economy. I know that my hon. Friend the Member for Skipton and Ripon (Julian Smith) has seen that document, which surveys jobs and trade and investment between the US and Europe, and whose details make a powerful case for closer transatlantic co-operation. I shall ensure that my hon. Friend the Member for Stone (Mr Cash) receives a copy, because I think it crucially important for him to see it.
The Prime Minister has said that a successful transatlantic agreement could be the biggest trade deal in history. I have heard some cynical observations about the figures, but much of the analysis shows that not only will the agreement constitute a gain for Europe and for the United States, but there will be gains elsewhere as a result of the growth in the world economy that will follow.
No one doubts the challenge that we face in achieving agreement. As may have become evident during today’s debate, we sometimes hear protectionist voices, which can be at their most seductive during times of austerity. I know that comments have been made about the “Buy America” legislation which exists in no fewer than 21 states. The latest state to pass such legislation is Maryland, whose legislators seem to be unaware that some 70,000 people in the state work directly for European companies, that $13 billion from Europe is invested in Maryland annually, and that every year $3 billion worth of goods are exported from Maryland to Europe. Immediately after signing the new “Buy America” law, the Maryland state governor flew to the Paris air show to urge Europeans to buy defence products made—believe it or not—in Maryland. You couldn’t make it up.
Narrow protectionism does not protect jobs in Maryland or anywhere else in the United States, and it does not do so in this country either. Reference has been made to the effectiveness of laws of that kind. I think it worth observing that Government procurement agreements made by the United States at the World Trade Organisation grant EU countries full reciprocity with Maryland providers and manufacturers. I believe that, in this instance, “Buy America” laws are not just wrong-headed but a blatant deception of US and Maryland voters. Let me add that my warning against protectionism is just as appropriate in the case of the French voices that successfully compelled the European Commission to remove audio-visual services from the scope of the negotiation.
Finally, let me say a little about the financial ties between Europe and the United States. At this point I should draw the House’s attention to my entry in the Register of Members’ Financial Interests, although my own interests will not be affected in any way by this particular deal. Those financial ties represent a market share of between 66% and 86% of global financial sectors, which render this deal crucially important to the United States, and to us here in the United Kingdom. Delivering the deal by 2014 requires a tight timetable, but I urge Ministers to continue to engage with us as we proceed with our work.