(5 years, 8 months ago)
Commons ChamberMy understanding is that, of the 40 potential continuity agreements, five represent 76% of the total trade, of which Switzerland is one. Is not that a good omen for the remaining big four?
Of course a number of those who are engaged in trade continuity discussions with the UK are waiting to see what we will do in terms of Britain’s approach to the EU. They will be much more likely to sign up to those agreements when this House of Commons is clear about what it is going to do.
Absolutely. I agree with my hon. Friend that it is important that both parents are able to spend quality time with their children, particularly in their first year. I would like to highlight to my hon. Friend that Her Majesty’s Revenue and Customs reported that, in 2017-18, 9,200 employees took up the scheme, of whom 80% were men.
Does the Minister think that that 80% figure is where we want to end up?
No. We want to encourage further take-up. Currently, the take-up is between 2% and 8%, which is in line with our prediction. A figure of 80% is a good start, but I want to see more mothers and more fathers taking advantage of this shared parental leave policy.
(5 years, 9 months ago)
Commons ChamberWherever we can bring down prices to make the disposable incomes of people throughout the United Kingdom go further, we will do so. That is a sound Conservative principle. We will also cut tariffs where we can do so without any potential disruption or disbenefit to UK business and industry, because tariffs are taxes. We are able to take those measures today because we will no longer have to apply remedies—that is, taxes—to the UK in areas where there is no UK production, but there is currently EU production. It is an act of economic liberation.
The Trade Remedies Authority sounds like a good idea, but it is a quango. It used to be a “sound Conservative principle” that we would reduce the number of quangos. I think it was our policy at one time that for every new quango introduced, two would be abolished. Before the authority is formally, officially established, will the Secretary of State identify two quangos that will get the chop?
(5 years, 11 months ago)
Commons ChamberNot directly in the discussions that I have had with other countries, but there is clearly a desire to have an agreement, so that there is time during the transition of these agreements before they become a more bespoke relationship. The two-year implementation period set out in the Government’s proposals would enable that, so that is clearly preferable for both sides.
Can the Secretary of State confirm that if we leave with no deal, the sun will still rise on 30 March, Britain will remain a premier global trading nation and the current booms in exports and inward investment are set to continue?
I am grateful to my hon. Friend for his usual patriotic and optimistic tone. He is right that the country is in the middle of an export boom; our exports are at an all-time high. In the first six months of the year, according to the United Nations Conference on Trade and Development, the United Kingdom was second only to China in inward investment. It is truly a very positive picture, and we will be able to build on that, whatever our relationship with the European Union.
Our returners programme is not designed to do what the hon. Gentleman has asked; it is a distinct fund. We have also announced some additional money to support women facing the greatest barriers to getting into the labour market. We should absolutely be talking to every Government Department, including the Department for Work and Pensions, about universal credit and other policies, to ensure that they are supporting women.
How many women, and how many men, does my right hon. Friend expect the returners fund to support?
The fund is just one piece of work that the Government are doing, but it is focused primarily on women. However, my hon. Friend raises an important point. If he is aware of my recent speech at Bright Blue, he will know that we are also very focused on addressing the barriers that prevent men from taking up the roles that they would wish to do—being prime carers for their children, for example. We are also looking at those issues, and my hon. Friend is right to raise them.
(6 years ago)
Commons ChamberI can confirm that the hon. Gentleman does live in a parallel universe, but it is one that he shares with his Front Benchers. His parallel universe is entirely divorced from the reality that investors are coming to the UK. We are the No. 1 foreign direct investment destination in Europe. We have the largest stock, and that is why we have been able to support more than half a million new jobs since 2010. The biggest threat, investors tell me, is that of Labour coming to power.
During the referendum, “Project Fear” told us that global business interest in the UK would collapse if people voted to leave. Can the Minister confirm whether foreign direct investment has gone up or down since the referendum in June 2016?
I am glad to confirm to my hon. Friend that our stock of foreign direct investment has gone up. We remain the No. 1 destination in Europe and are seeing companies in so many sectors coming here. Investors have some concerns about Brexit but, as I have said, what they are really alarmed about is the prospect of Labour seizing their assets and destroying the job creation that investment brings.
What justification is there for an eight-year delay in the implementation of section 106?
The Government have kept that under review, but, as I said earlier, it is also for political parties themselves to act on it, so I am pleased that the Conservative party is looking into how we can gather the evidence in order to improve diversity in our candidates list.
(6 years, 2 months ago)
Commons ChamberThe UK and Israel have an important trading relationship in information and agricultural technology, which we are strengthening through our dedicated trade promotion team at our embassy in Tel Aviv. We have established a UK-Israel tech hub, which helps to create partnerships between British companies and innovative Israeli technology businesses. This is part of our confident, outward-looking approach to Britain’s trading future.
From online banking security to prescription drugs to cherry tomatoes, Israel has become an international technological and trade powerhouse. Every day, millions of Britons are benefiting from Israeli inventions and produce, even if they do not realise it. What progress is being made in the UK-Israel trade working group to ensure that this vital trade relationship continues to prosper after Brexit?
My hon. Friend is right. Our trade with Israel currently stands at £3.9 billion in goods and services, with our exports up 7% in the past year. The Prime Minister met the Israeli Prime Minister in February 2017 to set up the joint trade working group, and I would like to thank the Israeli Government for their close liaison. We are dedicated to the continuity of trade and, once we leave the European Union, to having an ambitious new trade agreement that will provide even greater benefits than those we currently have.
Department of Health and Social Care Ministers only have the power to approve English homes as a class of place for medical abortion. The definition of what “home” means in this context is not straightforward and will be determined as we take this work forward. DHSC officials are working with the Royal College of Obstetricians and Gynaecologists to develop a protocol that will set out criteria for which places should be covered by the term “home”, as well as contradictions for use at home and other relevant issues. We will look at how the schemes are working in Scotland and Wales and learn from their experience. The hon. Lady knows, on the wider point of abortion, that we call upon representatives in Northern Ireland to get their act together and get the Assembly working again, so that Northern Irish people can make their decision on this very important topic.
Through the industrial strategy and our response to the Taylor review, the Government’s ambition is to increase the earning power of men and women throughout the UK, and to support the creation of good-quality jobs. Where women are under-represented in sectors of the economy, the Government are actively supporting business-led reviews to increase participation and the representation of women.
Male teachers are massively under-represented in primary schools. What are the Government doing to put that right?
I thank my hon. Friend for his question. He raises an important point. He clearly recognises the value and benefits that more men entering into primary school teaching can bring. We are committed to developing a diverse teaching workforce and to undertaking a range of activities to achieve that. We convened a roundtable with the sector to discuss equality and diversity, and to drive progress to meet these challenges.
(6 years, 4 months ago)
Commons ChamberWe have had a look at what other countries have done, particularly in their online content, and how well it has gone down with those who have been involved in consultation processes. For that reason, I think it is very important that we have an online consultation that is fairly standardised so that the public know what is being asked of them from the information they are given.
Will a comprehensive free trade agreement with the United States be more likely or less likely as a result of the White Paper?
It will be dependent on what both sides are willing to concede and on the level of ambition that both sides have. Following my discussions, not least with the President of the United States last week, I am very optimistic that such an agreement is well within the reach of both parties.
(6 years, 4 months ago)
Commons ChamberThe hon. Gentleman will know very well that mode 4 is applied in many circumstances, and that it was part of the Japan-EU free trade deal. Our conversations with the Home Office are ongoing, but it will always be a matter of national policy that we will control our own immigration system. Despite what is said in trade deals, that is protected.
Will the Minister confirm that, whatever agreement is or is not reached with the European Union, after Brexit this country will continue to see increased trade in goods and services with the European Union, developing countries, and other countries around the world?
I thank my hon. Friend for his question. Clearly, the whole purpose of our leaving the European Union, or one of the plain purposes, is to increase sovereignty and to conduct our own trade deals. We are very keen to do a good deal with Europe—to see frictionless borders and to keep trade going on that front—and indeed to seek wide and ambitious free trade deals with others.
The Government set up the tampon tax fund from the 5% VAT that is charged on sanitary products. The fund serves many charities, but it is particularly helping the Brook Young People project, which I welcome.
Will the Minister confirm that we can reduce VAT to zero only because we are leaving the European Union? Can she quantify in millions of pounds how much that step will save women in Britain?
On the first question, yes. On the second, I will write to my hon. Friend with the figure.
(6 years, 5 months ago)
Commons ChamberI have set out what I believe are the principles, but the mechanism may well be different. The Commission has not yet finished its work on the technical detail of the ICS. We have reservations about the ICS as a system, but, as I have set out, we believe that there needs to be protection for investors. What we cannot do as a country is say that our investors should be protected overseas when they make investments of UK money, but a reciprocal agreement should not be in place for others. We have to ensure that this is fair and equitable, and that is what we seek to do. I have to say to the right hon. Gentleman in all candour that I am not terribly attracted by the ICS, but we want to see the detail that the European Commission comes to and, when we leave the European Union, we will want to discuss with Canada what we think, on a bilateral basis, the best disputes resolution system might be.
It is also important to note that the customary international right to regulate has been re-emphasised in this agreement. Moreover, the agreement explicitly provides that member states should not reduce their labour or environmental standards to encourage trade and investment, ensuring that our high standards are not affected by this agreement. Let me say that nothing in CETA prevents the UK from regulating in the pursuit of legitimate public policy objectives.
Such objectives include the national health service. This Government have been absolutely clear that protecting the NHS is of the utmost importance for the UK. The delivery of public health services is safeguarded in the trade in services aspects of all EU free trade agreements, including CETA. Neither will anything in CETA prevent future Governments from taking back into public ownership—should they be crazy enough to do so—any services currently run by the private sector. The legal text makes this clear, if Labour Members would like to read it, although I have to say that the fear of nationalisation is the No. 1 issue that potential investors currently give for thinking twice about the UK as a foreign direct investment destination.
In fact, robust protections in CETA are covered in a number of related articles and reservations in the text. A key article is article 9.2, in chapter 9 on cross-border trade in services, which excludes services supplied in the exercise of governmental authority from measures affecting trade in services. In addition, in annex II on reservations applicable in the European Union, the UK has gone beyond the EU-wide reservations and has included additional national reservations for doctors, privately funded ambulances and residential health facilities, and the majority of privately funded social services. The UK Government will continue to ensure that decisions about public services are made by the United Kingdom, not by our trade partners. This is a fundamental principle of our current and future trade policy.
Given these extensive labour and public sector protections, which I congratulate my right hon. Friend on negotiating, could this EU-Canada agreement not serve as a template for a UK-EU trade agreement on our exit?
As the Prime Minister has made clear, we hope, given we are starting from the position of complete regulatory and legal identity with the European Union and given the size of our trade with the European Union—not least the fact that the European Union has a surplus in goods with the United Kingdom of almost £100 billion—that we would be able to negotiate an even more liberal agreement than CETA. That is of course a decision not just for the United Kingdom Government, but for the other 27 Governments, who need to look not to political ideology, but to the economic wellbeing of their own citizens.
Let me say something on scrutiny. We have committed, through our White Paper published last year, that we will ensure appropriate parliamentary scrutiny of trade agreements as we move ahead with our independent trade policy. The Government can guarantee that Parliament will have a crucial role to play in the scrutiny and ratification of the UK’s future trade agreements, and we will bring forward proposals in Parliament in due course.
I would like to provide further reassurance to the House about the Government’s ongoing commitment to openness and transparency. Indeed, we have scheduled a debate on the Floor of the House on the EU-Japan economic partnership agreement, which the Minister for Trade Policy—it is a pleasure to welcome my hon. Friend the Member for Meon Valley (George Hollingbery) to his position on the Front Bench—will be leading straight after this debate. This is already over and above the engagement required for EU-only trade agreements.
(6 years, 5 months ago)
Commons ChamberIt was not possible in putting together this agreement to reach the agreement that we wished for on data. The discussion between the two countries on that is still ongoing, and I have no doubt that the matter will come back to the House in due course.
My Department will continue to work with the European scrutiny Committees to identify appropriate ways to ensure the thorough scrutiny of similar EU-only free trade agreements while the UK remains a member state. The Government are considering the legislative framework for future trade agreements, but they are committed to ensuring that Parliament will have a crucial role to play in the scrutiny and ratification of the UK’s future trade deals when we bring forward proposals in due course.
The EU and UK agreed at the European Council in March that international agreements to which the UK is party by virtue of its EU membership—including, at the time of exit, the EU-Japan EPA—should continue to apply to the UK during the implementation period. Text to that effect was agreed in the draft withdrawal agreement. We continue to advance our dialogue with the Japanese Government on the shape of our future bilateral trade and investment relationship, which will come into effect after the implementation period, and I look forward to making progress as we continue to foster our post-Brexit relationship with the Japanese.
I congratulate the Minister on his speech and his appointment. On his point about the trade arrangements rolling over to the post-Brexit period, will he remind the House that we were told by the Opposition that that would never be possible—that we would never be able to agree that with the European Union and it absolutely would not happen? But of course the Prime Minister has delivered that.
Indeed, my hon. Friend is plainly right.
As Members will know, in August 2017, the Prime Minister and the Japanese Prime Minister, Shinzo Abe, agreed to
“work quickly to establish a new economic partnership between Japan and the UK based on the final terms of the EPA”
as the UK leaves the EU. The UK-Japan trade and investment working group, established last year by the Japan-UK joint declaration on prosperity co-operation, is tasked to deliver on that commitment, and it met for the first time in May.
(6 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The hon. Gentleman is right. Some of what has been proposed has not been experienced around the world; we will be testing something out that has not been tried. I will move on now, and I will not take many more interventions as time is short, but it would be particularly helpful to know whether the intention is that trade remedies would be applied before any test or only after the test. As the Manufacturing Trade Remedies Alliance has argued, duties could always be refunded retroactively if any test found that trade remedy measures were not in the public interest.
Current trade rules have served the ceramics sector well against outrageous dumping by countries that have far less regard for the spirit of free trade and the necessary rules underpinning free market economies. For example, just 10 years ago, we saw huge volumes of ceramic tiles, giftware and tableware all made in China being dumped at a price that could not have covered the real cost of production. The investigations into those price anomalies found that they were such clear cut cases of dumping that the EU still imposes remedial duties today.
There are good reasons for maintaining those duties after Brexit. Not least is the fact that since the measures against tile dumping were introduced in 2011, employee numbers in the UK have increased by about 40%. Not every new job will have been created as a result of the anti-dumping duties—the economy recovered substantially and employment grew significantly across many sectors in that time—but it is clear from the evidence that anti-dumping measures underpin the ceramics sector’s ability to take advantage of the Government’s wider pro-enterprise policy agenda, giving breathing space for the industry to invest in becoming more resilient.
Indeed, as recently as 2016, an expiry review of anti-dumping measures in the ceramic tiles market found overcapacity in the Chinese industry equal to six times total EU annual consumption. The anti-dumping duties on Chinese tiles were therefore extended for a further five years. I hope that the Minister will confirm that those measures will apply at least for the rest of those five years once we have left the European Union. Similarly, in the giftware and tableware sector, UK employee numbers have increased by 20% since anti-dumping measures were introduced. Our ceramics manufacturers are currently preparing a complaint for an expiry review. If the complaint is successful, the investigation will take place while we are still in the process of leaving the EU, so for clarity the industry would surely welcome any indication the Minister can give that the continuation of any EU anti-dumping measures that might result from any expiry review will also apply in the UK market.
In addition, the ceramics industry is keen for Ministers to reflect on how difficult it can be to counter dumping if the definition of dumping is too narrow. Unscrupulous actors who seek to dump their goods will be unscrupulous in exploiting any loopholes they see. For example, it may not be appropriate to rely on the price in the home market from which imports come when those imports originate from heavily distorted economies—that is to say from countries where market situations are distorted by the interventions of the state, which is usually an undemocratic state working outside the norms of transparency and governance that we take for granted.
On dumping calculations, I am therefore eager to learn what view the Government take on ensuring that the Taxation (Cross-border Trade) Bill makes it clear that there are circumstances in which the difficulty in determining normal value in the presence of state distortions means that provisions should be made for when it is not appropriate to use the domestic price. By clarifying how the Trade Remedies Authority would, in anti-dumping investigations, calculate the level of dumping for cases in which the domestic price of the alleged dumped imports cannot be used, there will be legal certainty and greater confidence in the ceramics industry.
I also wish to raise the Government’s proposed use of a minimum market share in relation to the acceptance of dumping—or indeed subsidy—complaints. I would be grateful for clarity on their intentions. Will a de minimis level be set and, if so, at what level? What rules for flexibility might there be in that level? For example, will there be flexibility if an industry has evidence that it is being materially retarded from achieving the minimum market share by dumping or subsidies, if previous injury from dumping has reduced an industry to the de minimis level, or if an industry plays a peculiarly important role in a particular area of the UK, though not across the UK economy as a whole?
As we leave the EU, almost everyone now agrees that the Brexit process should not be some sort of sharp shock; it should be a growing opportunity, with a smooth transition period in which to adjust to the new reality of global Britain. Will that transition include the retention of existing trade remedies for the ceramics sector, followed to their full course and renewed if necessary? Such an assurance from the Minister would be extremely welcome.
While the Department for International Trade will rightly be proffering carrots in seeking free trade deals for global Britain, in terms of opening access to the UK market, it should also let it be known that we will keep some big sticks in our trade policy array should tit-for-tat measures prove necessary. Brexit is a great opportunity for us to be a leading independent force in the WTO, and the champion of free and fair trade across the world. It will take time to convince all other members of our case, and in that time we will have to be ready to combat egregious distortions. However, the direction of travel should be clear: freer markets, freer trade, and an empowered and liberated entrepreneurial British spirit, with more of our world-class manufactured goods reaching global markets, all of it underpinned by a sense of enforceable fair play. That is the Brexit that my constituents voted for, and that is the direction in which I hope the Minister will be pleased to travel.
The debate can last until 5.45 pm. I am obliged to call the Front-Bench spokespeople no later than 5.23 pm. The guideline limits are: five minutes for the Scottish National party, five minutes for Her Majesty’s Opposition, 10 minutes for the Minister, and two or three minutes for Mr Brereton to sum up the debate at the end. Until 5.23 pm there is time for other contributions.
I am grateful to my hon. Friend for the intervention. I was about to make the same point. She is absolutely right to say that we need to hear from the Minister what his intentions are.
The EU does not want the UK to be swamped with dumped goods, whether that is steel, ceramics or washing machines, because if that happened, such goods could enter the EU market from the UK. Equally, UK businesses do not want dumping, because it is unfair competition. Lack of protection in the UK risks thousands of jobs in the UK. It is no good the Minister’s saying that it means cheaper goods for consumers—as I have heard him say on countless occasions—because the workers whose jobs are at risk are consumers as well. No job means no wage to buy the goods. A lack of trade defence is bad for producers, workers and consumers, yet that is what there has been far too often. My hon. Friend the Member for Sheffield, Brightside and Hillsborough (Gill Furniss) is right to highlight exactly what happened in the steel industry, because when the Government failed to support EU trade defence measures against Chinese steel dumping and acted too late to intervene and save SSI, it was the Conservative group of MEPs, at David Cameron’s prompting, who were the cheerleaders in the European Parliament against Europe-wide action. That included their blocking attempts to end the use of the lesser duty rule.
However, protection and the use of trade remedies is not the same as Trump-style protectionism. Trade remedies should be about the creation of a level playing field that defends domestic producers against unfair competition from dumped goods. They are an essential policy tool to correct multilateral distortions. Failure to use anti-dumping measures, in the name of free trade, misses the point that for trade to be free, it also has to be fair. Adjustments are needed in the event of Chinese or Russian state subsidies or distorted pricing of raw materials, or to address Trump’s tariffs. The European Commission is due to vote soon on higher anti-dumping duties to tackle raw material distortions, so it is incredible for the Government to say, as the Minister has, that they will vote against those measures.
That brings us to the customs Bill—the Taxation (Cross-border) Trade Bill—and the Trade Bill. As the hon. Member for Livingston (Hannah Bardell) said, we should be debating the amendments to the two Bills on Report in the main Chamber, not having a general debate in this Chamber, but as we are, let us look at what the Bills will do.
The Government are planning to give themselves the power to decide not to act on behalf of UK industries, in favour of the consumer interest. That will be a political decision, balancing the interests of jobs in one area of the country against the interest of consumers—a point made to us by George Peretz, QC, when he gave evidence to the Trade Bill Committee. Trade remedies are essential to protect British industries, whether that is steel, ceramics, tyres, chemicals or pharmaceuticals. The Minister will no doubt say—he has said it before—that the lesser duty rule has been effective in tackling unfair trade. He wants to continue to apply it at the very moment when the EU is moving away from it, so tell us: where is the evidence to support that approach? I am glad that he is nodding, because I am looking forward to hearing his answer. Ask workers who used to work at SSI. Ask the MTRA. Ask industry and workers. They believe in strong trade remedies and they want to know the reason why the Government are taking a different approach.
The continued application of the lesser duty rule will see dumped goods diverted to the UK, and as we leave the EU, divergence in trade remedies will add to the damage done to the UK economy. The Minister is fond of saying to me and my colleagues that we are against the creation of a trade remedies authority. He knows that that is not true, of course, but that does not stop him saying it. The difference between him and me is that I want the Trade Remedies Authority to be effective. I take seriously the importance of trade remedies in creating a level playing field for our producers so that they can compete in international trade in a fair market. That is why we tabled a reasoned amendment on Second Reading of the Trade Bill that stated categorically our support for the creation of a trade remedies authority, but we believe that the Trade Remedies Authority should be representative of all sides of industry; it should include representatives of producers, trade unions and each of the devolved Administrations. We tabled amendments to that effect in Committee, as did the SNP. In addition, the chair of the TRA should go through parliamentary scrutiny of their appointment, rather than being placed in post by the Secretary of State; Parliament should also have its say on the membership and non-executive appointments. I totally agree with the hon. Member for Hornchurch and Upminster that the Select Committee on which she serves should be scrutinising all these appointments. The Government are using ministerial discretion in the establishment of the TRA before the legislation has been passed that sets it up, and the Minister should explain why, as ministerial discretion is usually reserved for matters of disagreement on spending within a Department.
British industry needs a strong, robust and independent Trade Remedies Authority that will use international best practice. Our amendments to the customs Bill and the Trade Bill will be designed to achieve the objective of giving our industry a level playing field. The Minister and his hon. Friends should support our approach or introduce their own amendments to do just that; otherwise, workers in the Potteries and many more across the country will face the possibility of the same fate as steelworkers faced in Redcar just a few years ago.
If the Minister would be kind enough to finish his remarks no later than 5.42 pm, that would give Mr Brereton time to sum up the debate.