EU-US Trade and Investment Agreement

Paul Blomfield Excerpts

Thursday 18th July 2013 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

I add to the congratulations to my right hon. Friend the Member for Wentworth and Dearne (John Healey) and to the hon. Member for Aberconwy (Guto Bebb) on securing this debate. What a difference a week makes, or maybe two weeks. Here we are today debating something of importance in relation to our membership of the European Union, focusing on the benefits of our membership, and the Government Benches are empty, in such contrast with the excitable packed Benches we saw—[Interruption.] Practically empty. I apologise to those few Members who are there. The contrast, however, is not with the Opposition Benches today but with the Government Benches two weeks ago. Today we are debating a serious and important issue to do with our membership of the European Union.

[Julian Smith]

The hon. Gentleman says this is a serious and important matter, but does he agree that giving the British people a say on Europe is also serious and important?

[Paul Blomfield]

I thought the debate a couple of weeks ago was more about resolving internal differences in the Conservative party than a wider concern for the views of British people.

What an irony it is that too many Government Members want to lead us out of Europe, just at the moment that the already substantial benefits from our membership of the EU are set to become even better. I might even feel sorry for the Prime Minister if these problems were not of his own making. He knows that our future lies in Europe, just as our past always has done, and he wants this country to be at the heart of the European Union and his party to stop banging on about Europe. He knows the importance of this trade deal, but he made an early mistake back in 2005 when, lagging behind in the leadership contest for his party, he threw red meat to Conservative Members who would take us out of the EU with a promise to leave the European People’s party. He was warned by his Conservative allies in Europe—

[Jonathan Evans]

Perhaps I should point out to the hon. Gentleman that I was leader of the Conservatives in the European Parliament at that time, and the Conservative party was never in the European People’s party at any time.

[Paul Blomfield]

The Conservative party’s alliances when the hon. Gentleman was in the European Parliament were better than those it has made subsequently.

[Guto Bebb]

Will the hon. Gentleman give way?

[Paul Blomfield]

Let me make some progress, My point is that the Prime Minister did not understand that the more red meat he threw to those on his right, the more they would want. We find ourselves being pushed towards the exit door of the European Union at a time when the case for membership has never been stronger.

Let me turn to the trade deal and the comments made earlier by the hon. Member for Stone (Mr Cash), who sadly is no longer in his place, when he sought to diminish the importance of our trade with the European Union. The EU is the UK’s main trading partner and comprises around 52% of the UK’s total trade in goods and services. Of course growing markets in China and India are important, but those two markets account for 5.6% and 1.6% of our current trade. Through the Department for Business, Innovation and Skills, the Government estimate that 3.5 million jobs in Britain are linked, directly or indirectly, to our trade with EU member states.

Let us look to the future. It has been estimated that by 2020 the UK will have fallen to the ninth largest economy in the world. In contrast, the EU is the largest economy in the world, home to 7.4% of the world’s population and accounting for almost 20% of world GDP. The EU is not important to the UK simply for that reason, but also because of the access it provides to other markets. The EU is the top trading partner for 80 countries and currently has free trade agreements with more than 40. That process is continuing, and the EU is currently negotiating agreements with more than 70 countries, including important UK partners such as India and Japan, as well as growing economies such as Brazil. According to the CBI, the European Union has negotiated trade agreements that cover around 30% of trade outside the EU area, and it is in the process of raising that figure to 70%.

It has been estimated that the deal we are considering today will generate around €119 billion of benefits to the EU and create 2 million jobs. As my right hon. Friend the Member for Wentworth and Dearne pointed out in his opening remarks, that could benefit the UK economy by up to £10 billion a year. My hon. Friend the Member for West Bromwich West (Mr Bailey) was right to point out that current tariffs averaging around 4% are quite low, but given the volume of trade, the benefits are significant. Even more significant—my right hon. Friend the Member for Wentworth and Dearne referred to this—is the alignment of regulatory standards and the opportunity that offers not only for trade between these two important blocs, but in raising standards internationally.

My right hon. Friend was also right to highlight concerns about the potential privatisation of public services—a threat that has been targeted wrongly at this deal. It is important that we reassure those who are worried about the impact of this deal on public services, and the health service in particular, which might disappoint some Conservative Members who would like to see much greater privatisation.

In the free trade agreements that the EU has negotiated, public services exemptions are provided in two ways: first, by provisions that refer to

“services exercised under Government authority”—

the police, for example, and the justice system—and, secondly, by provision for public utilities, which would cover health care. The former provisions are automatically excluded from all trade agreements. The latter are not automatically excluded but reservations are attached that allow EU member states to maintain public provision or limit access to a certain number of providers—both domestic and foreign—in those sectors.

It is important that we send a clear message that the EU-US trade agreement in itself cannot lead to further privatisation of health care in this country. The policies of this Government will do that—or perhaps not, if they are successfully defeated. The trade agreement could, however, lead to a significant boost to the UK economy. It would be the most significant bilateral agreement, and our combined economies are worth almost 40% of world GDP. We must be honest when responding to comments made by some Government Members who are no longer in their seats, and recognise where we stand internationally. The UK alone would not have the negotiating clout of the EU in striking the sort of deal that would benefit all member states, including the UK. As with so many other things, we are stronger together in Europe, and this deal is yet another reason why we must be at the centre of the European Union.