European Affairs
Debate between Matthew Pennycook and Mark Garnier(6 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Matthew Pennycook
The hon. Lady has great expertise in this area, but I think she has slightly misjudged the fact, as I understand it, that that is not about customs, but about the elements that make up the single market. We have said that we would seek, in principle, to negotiate protections, clarifications or exemptions where necessary, but I cannot imagine a situation in which those exemptions would be necessary. As I think the Leader of the Opposition said on “Peston on Sunday” some time ago, there is nothing in the current state aid rules that would prevent us from implementing, for example, our manifesto.
Many hon. Members have already mentioned this, but Sir Martin Donnelly, the former permanent secretary at the Department for International Trade, said that the reality is that what the Government are proposing is akin to giving up
“a three-course meal... for the promise of a packet of crisps in the future”.
The EU currently constitutes 44% of our exports and 53% of our imports. It must be our priority. Increases in trade from new free trade agreements with the USA, Canada, Australia and New Zealand combined would be worth less than 3% of our current trade in goods and services.
Matthew Pennycook
I will make a bit of progress.
FTAs with the BRIC countries would be worth just over 2%. Any such trade deals, even if they could be secured reasonably quickly, would in all likelihood also involve detrimental trade-offs and compromises in standards and regulations with which the British public would rightly take issue.
Matthew Pennycook
I thank my hon. Friend. That is certainly the fear. I read the same analysis as he did—I had to surrender my phone to do so and then found that it had been released publicly a week later—and it does say in several places that there are opportunities to deregulate. Perhaps the Minister can tell us why those things are being modelled and to what they might refer.
One has only to listen to the noises coming from the United States Government on issues ranging from the replacement of the EU-US open skies treaty to the inclusion of agriculture in any FTA to get a sense of how difficult things will be even when it comes to new deals with some of our closest allies, and that is irrespective of who occupies the White House. The prospect of new free trade agreements might give the International Trade Secretary a purpose, but they would be good for little else.
Mark Garnier
I want to go back to the comments that the hon. Gentleman made about Sir Martin Donnelly, whom I worked with for a number of months; he is a civil servant of extreme ability and wisdom. When he made the banquet versus the packet of crisps analogy, I think he was looking to a certain extent at some of those simple gravity models used by the Treasury—the simple mathematical trade-off between tariffs with the EU and tariffs elsewhere.
What is missed in all this debate is the ability of the UK to find itself at the centre of a network of trade deals. For example, a US manufacturer might see the advantage in moving its manufacturing operations to the UK to take advantage of a UK-India trade deal, for example, if the trade relationship between the UK and India was greater and better than that between America and India directly. That is the unknown that we are struggling to analyse, to get the true comparison between one type of relationship and the other.
Matthew Pennycook
I simply do not think that that stacks up. I listened to Sir Martin’s comments very carefully, and I am not sure that he was referring to that. However, if the hon. Gentleman makes a speech, I will be personally interested in hearing his points.