Oral Answers to Questions

Justin Madders Excerpts

Thursday 23rd March 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

14. What discussions he has had with businesses, trade bodies and industry representatives on the potential effects of WTO rules in the event that the Government do not secure free trade agreements with other countries after the UK leaves the EU.

[The Parliamentary Under-Secretary of State for International Trade (Mark Garnier)]

International Trade Ministers and officials regularly meet British businesses to discuss trade policy matters. These discussions have included our position in the WTO, work under way to avoid the loss of trade preferences that UK firms currently access via EU trade arrangements, and future trade negotiation priorities. The Department for Exiting the EU is also engaged fully with British businesses.

--- Later in debate ---

[Mark Garnier]

When we leave the European Union, it is the intention of the Department for International Trade to carry over the existing trade deals that we enjoy through our membership of the European Union. Countries such as Mexico, for example, have trade deals with the EU, and it is our intention to carry over such trade deals in the first instance in order to avoid any cliff edge.

[Justin Madders]

The Minister will be aware of statements made by the head of the PSA Group, following the takeover of Vauxhall-General Motors group, that when new models are awarded plants across Europe will be judged on their competitiveness. A 10% tariff on cars would have a huge impact on the competitiveness of the UK car industry, so what contingency plans do the Government have to ensure that the UK car industry remains competitive?

[Mark Garnier]

The hon. Gentleman is right to raise this point; he speaks on behalf of his constituents in an area that manufactures these vehicles. It is the intention that the UK can achieve tariff-free, customs-free access to the single market. That benefits not only the UK car manufacturers that produce 1.9 million cars, but the European manufacturers that export to the UK.