(2 years, 6 months ago)
Commons ChamberThis argument, I am afraid, is a false one, and it has also been perpetrated with regard to the Australia deal. The structures and kinds of regulations and laws that we are talking about are not equivalent. In Australia’s case, we are not talking about law or EU retained law; we are talking about guidelines that sit at state level. Obviously, the MOUs that we are agreeing with US states are not free trade agreements in terms of tariffs; they talk about our regulation, mutual recognition of qualifications and all of those things. Within those MOUs, we are actually doing partnerships between particular locations of the UK, which could include the devolved nations. Northern Ireland has such an MOU with other parts of the US, and I encourage the Scottish Government to get on board, because there would be massive advantages to people in Scotland if they did so.
I commend my right hon. Friend’s progress in her discussions with California, but she will know that many leading companies have left California for Texas because of that state’s low-tax, light-touch, pro-growth regulation. Will she update the House on the progress that she is making in her discussions with Texas? What lessons has she learned and passed on about the scope for regulatory reform in this country?
There is massive scope for such reform, which is one reason why we are pursuing this agenda. My hon. Friend is absolutely right that business is seeking out business-friendly states in the United States. There is now some competition to secure MOUs with us, and we are going after states that are really open for business and open to bringing people, ideas and money together to solve the world’s problems. Texas will be a trailblazer state; we have signed with Indiana; and Oklahoma, the Carolinas and others are really pushing the agenda forward. There are massive potential benefits for us, and for the United States too.
They should follow the hon. Lady’s example: I know that she attended the session with the Trade Remedies Authority. It is incredibly important that we get the message out to businesses that the TRA is an independent body with which they can take up issues. I thank the hon. Lady for attending and for enabling me to say that at the Dispatch Box today.
There are significant opportunities for British exporters to the Gulf states that are members of the Gulf Co-operation Council, not least because we already export a lot and because the barriers for our exporters are greater than those for GCC exports to the UK. Will my hon. Friend update me on what progress is being made on achieving such a deal?
(3 years, 6 months ago)
Commons ChamberThe hon. Gentleman is right to say that we must champion British steel at every turn. Indeed, the Department for Business, Energy and Industrial Strategy has been creating a strong pipeline to ensure that advance notice has been given to industry about the 7 million tonnes of steel that will be required, so that industry can seek the opportunities that lie ahead. The safeguard measures that Labour Members talk about today are only part of the picture with trade remedies. Dare I say that it is not the first time the Labour party has not quite understood international trade?
We must remember that safeguard measures are not intended to address unfair practices, which are the subject of the motion. They are emergency measures intended to tackle unforeseen surges in imports, and they are governed by strict WTO rules. It has been the job of the independent Trade Remedies Authority to investigate whether the steel safeguard measures should be extended, amended or revoked. That independent organisation has followed the evidence, and engaged widely with importers, domestic producers and overseas exporters. Although on Twitter the shadow Business Secretary seemingly does not know the difference between independence and being part of Government, the TRA is independent. This is not the Government’s proposal, and for each commodity covered by the safeguard measures, the TRA has considered whether there is domestic production, whether there is evidence that a surge in imports has caused or threatens to cause serious harm, and whether it is in British economic interests to maintain the measure.
The shadow Secretary of State stated that she was shocked that the TRA had not considered what the impact would be if the restrictions were removed. Under schedule 49(4)(a) of the Trade Remedies (Increase in Imports Causing Serious Injury to UK Producers) (EU Exit) Regulations 2019, that is precisely what it must consider in its analysis. Does the Minister agree that the right hon. Lady does not know what she is talking about?
My hon. Friend makes an excellent point about the lack of attention to detail on the Labour Benches. The approach we have taken forward is in line not only with WTO rules but with our domestic legislation.
I will tell you the truth, Madam Deputy Speaker: the TRA has recommended to the Secretary of State that nine product categories of the existing safeguard measure be removed. It judged that seven of them did not meet the requirement to show a significant increase in imports. Another failed to show any risk of serious injury or injury recurring, and the other did not pass the economic interest test, with industry asking for it to be removed, as the shadow Secretary of State discovered this morning, courtesy of the “Today” programme on BBC Radio 4. The Labour party seems intent on throwing the baby out with the bath water. The TRA recommended retaining the safeguard on 10 other product categories, and that would be exposed to legal challenge if we were arbitrarily to take the sort of decision that the Labour party advocates. Does the Labour party want to leave the WTO and adopt an isolationist approach in the world? I don’t, and I won’t.
Changes by politicians to the recommendations of the Trade Remedies Authority is the sort of meddling that the regulations were designed to discourage, because political involvement is too often influenced by lobbying pressure and special interests rather than by the wider benefits to society. The TRA is clear that trade protections should continue where there is evidence of an import surge over the period of investigation and injury to producers. Protection will continue on 82% by volume of currently protected products. Protection is recommended to end only where there has been no import surge at all or where any increase in imports has resulted in no injury to producers. We should not continue protection when no injury has been incurred.
The motion says that, on Monday 28 June, Labour will be prepared to take all the steps necessary for
“urgent legislative action to protect the vital interests of the British steel industry.”
However, that is false for two reasons. First, as analysis by the authority demonstrates, the changes are designed not to affect steel industry participants. The UK steel industry is at risk from dumping arising from chronic global over-supply, but it also suffers from relatively high labour costs, burdensome energy costs, a large green footprint for accessing raw materials and an expensive, unproven and unfunded pathway to a green steel future, none of which is addressed in the motion but all of which is vital for the industry’s future.
Secondly, the Labour motion seeks to align completely the largely private interests of the owners of businesses in the steel industry—some of them are good; some of them are a bit more dodgy—with the interests of UK taxpayers as a whole. Those interests may overlap, but they are not identical. The motion is an incoherent gesture, not a viable strategy for the UK steel industry, demonstrating the superficiality of Labour’s approach to the steel industry, just as Labour’s call to put taxpayers’ money into a firm that is now under investigation by the Serious Fraud Office was a few weeks ago.
If the UK wishes to have a vibrant steel industry, it needs the sort of thorough review that my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is undertaking. Should the industry require additional investment by the UK taxpayer, the case for that will have to stand up well to Treasury scrutiny. The context for the Treasury includes: that the UK economy is already being taxed at its highest rate since the 1960s; that Government debt is already at nearly 100% of GDP; that last year the UK ran its largest ever peacetime deficit of £303 billion; that, worryingly, £303 billion means that we are borrowing one third of all public expenditure; and that, in 2020, the Bank of England bought approximately 80% of that borrowing. Quantitative easing to finance Government expenditure rather than to meet an inflation target is an emergency tactic, not a regular tool of fiscal policy, and the benign period of its availability is coming to an end.
This Parliament needs to start making tough decisions if we are to make space to support our UK steel industry’s green transition. If we can address bigger issues along the lines of infrastructure projects, we can support the green change in the steel industry.
(3 years, 6 months ago)
Commons ChamberThe New Zealanders have a veterinary agreement with the EU, but they also have their own independent SPS policy. Let me be clear: we are not dynamically aligning with the EU’s SPS policies. In fact, our agreement in principle makes it very clear that both Australia and the United Kingdom have their own independent SPS regimes.
There cannot be British citizens in the Australian Parliament but there are Australians in this Parliament.
I, for one, commend my right hon. Friend for securing this deal. She will understand that one of its strategic benefits is to set the basis for a global arrangement on standards in services. What progress did she make towards that strategic objective?
My hon. Friend is right. In this deal, we have agreement on the free flow of data, advanced provisions on the mobility of professionals, recognition of qualifications and a whole host of positive arrangements in areas such as investment and procurement. By Australia and the United Kingdom working together to set standards alongside other allies, we can help challenge unfair trade practices across the world and make sure that we stand up for good, rules-based trade in areas where the UK leads.
(4 years ago)
Commons ChamberIt is a pleasure to rise in support of this Bill. When I saw that we had six hours to debate this Bill and only 10 speakers down to speak, I thought that at last I might have just enough time to begin to outline some of my thoughts on this particular measure.
Behind that, there is a serious point, as we enter the Christmas and new year period: too often this year there has been very little time for anyone making a speech in this House. We are frequently limited to two or three minutes, and not all of us are, as Lincoln, able to summarise our thoughts in 272 words or less. If it is possible for you, Mr Deputy Speaker, to talk to the Speaker to see whether there are ways of amending that in the new year, it would be a very nice new year’s resolution.
While I am in that spirit, perhaps I may address a comment to the Minister. Frequently this year, and maybe for good purpose, the Government have come forward with measures a day or two ahead of their being placed before this House, and they have then gone through the House in a single day. For minor measures such as this one, there is very little to be concerned about, if questions are answered adequately by the Minister, as I am sure they will be. However, the Coronavirus Act 2020, and any potential free trade agreement with the EU, are very significant measures to be passed in a single day, and I am not sure the governance of this country is fully served by such oblique reference to the legislature.
The hon. Gentleman stood last year and was elected, as were the majority of Members of this House, on a manifesto that included an unconditional guarantee of a free trade agreement with Europe. Do his comments of a few moments ago indicate that he now is not convinced that a free trade agreement with Europe is the best way forward?
No, I have full faith in my commitments in the manifesto and in the election, and full confidence in the Prime Minister. I only wish that the separatists from the Scottish National party would have the same full confidence in their words ahead of any referendum on their future, but that is not for today.
I want to press the Minister on some issues largely to do with information. I think he has mentioned some of them, but it would be reassuring to have them more fully expanded upon, because information is the currency of modern wealth creation in many instances, and it is certainly a source of competitive advantage.
I am not clear—perhaps the Minister could clarify this for me—to what extent the permissions in the Bill relate to sharing information solely within the borders and boundaries of the United Kingdom, and to what extent any such information will be shared with third parties. What reassurance can the Minister provide that the scope and format of data sharing, either within Ministries or externally, will not result in a loss of competitive advantage to an individual business, an industry sector or the nation state?
It would be helpful to have a little more clarity from the Minister on the scope of data. He explained that it is to do with trade, but that is a very wide-ranging remit. He said that it is to do only with data that is currently held by public bodies, but public bodies in this country hold almost every piece of data imaginable on us as individuals and on corporations and business activity. Perhaps he cannot say explicitly what will be included, but what sorts of things might be included? Perhaps he could also explain what might be excluded.
Will the Minister clarify that no demands will be made for new data disclosures, essentially protecting people from other burdens—additional data that may be required —in this short period? If there may be demands for additional data disclosure, what might they be?
What provisions are there for the anonymity of data, particularly in relation to the sharing of data with other nation states? Even if the data is at commodity level, that may be a concern. Some sectors have one or two main UK providers, so just because the data is at the level of a standard industrial classification code does not necessarily mean that it does not disclose information that may be relevant to a particular competitor.
I think the Minister was clear about the oversight of data rules in the case of a breach, saying that existing legislation will be covered. If that is not correct, perhaps he could advise us.
A particular bugbear of mine is HMRC’s influence over the Government, which is undue in many respects at the moment. Can the Minister assure me that the provisions of clause 2(4) will specifically restrict HMRC from cross-sharing data with other elements of its work, most explicitly to do with the taxation of enterprises in the UK?
I was interested to read that clause 2(11) defines a public authority as
“an authority exercising functions of a public nature,”
which did not seem to take me very far at all. Will the Minister advise whether the phrase “a public nature” is a defined term in law? If it is not, will he explain what it might mean? Does it include, for example, regulatory agencies, private organisations that are fulfilling public contracts, or organisations that are recipients of public moneys, all of which one could claim are “exercising functions of a public nature”? It would be helpful to get some scoping of what is included here.
The Opposition spokesman and the hon. Member for Glenrothes (Peter Grant) referred to a trade deal with the EU. There has been some press speculation—it is just speculation—that the European Union, in its discussions, has proposed pre-emptive tariff regimes as part of its approach to the UK. Can the Minister reassure me that no provisions of the Bill would require information to be disclosed to the European Union as part of a negotiation of any pre-emptive tariff regime in the intervening period? I think that is highly unlikely, but because there has been some speculation, it would be useful to have clarification.
When it comes to agricultural products—the Opposition spokesman mentioned this, but I emphasise it in particular —many people who are farming producers or who are interested in food standards are very reassured by the Minister’s amendments to the Bill, both in this place and in the other place, regarding food standards. As many farmers will be looking particularly intently at this Bill, will he provide reassurance that nothing in this Bill will do anything to undermine the measures under- pinning standards on agricultural products and trade in agricultural products?
I shall give up my ambition to fill six hours and retire, not hurt but early. I commend the Bill to the House.
(4 years ago)
Commons ChamberThat is a very reasonable question, but I will stress what I said earlier: it is not possible at this stage to anticipate what specific restrictions may apply to the additional public bodies, otherwise we would have put on the face of the Bill which other public bodies could be added in due course. We have not put those on the face of the Bill, but we have said that it is perfectly possible that, during the conduct of these operations, it will become clear that there is other data out there that would assist the Government in ensuring that trade flows well at the border. We want to ensure that those other bodies could quickly come within scope, through the delegated procedures that we have laid out in legislation, and therefore it would not be appropriate to put a general restriction on those bodies. It is best to rely on the overall restrictions in the legislation to ensure that we have robust data protection.
The hon. Member for Dundee East (Stewart Hosie) has raised an issue that would become more relevant if the sunsetting of this legislation does not take hold. If this legislation sunsets, most of us will be fairly comfortable with it. However, there is an opening here, with the combination of subsections (7) and (11) of clause 2, and subsection (1)—that sets out the purpose—which is that it would be right for Parliament to have some review of the application of this in practice. Can my right hon. Friend give an assurance, if there is no sunset within six months, that he will come back to the House to reassure us that those potential areas of concern have not been breached?
My hon. Friend makes a very good point. I must say that if the Trade Bill has not received Royal Assent within six months, I will certainly be under scrutiny in this House, for a piece of legislation that has now been with us for three and a half years. I can give him that assurance. Obviously, the intention is that this will sunset when the Trade Bill receives Royal Assent. We do think that the overall restrictions on the use of the data, and the discretionary nature of the power, are appropriate in this place. But it is also quite right for the Government to make allowance for the fact that it may come to light that extra data will be needed, and we do not want to have what might be viewed as unnecessary restrictions on the use of that data being added now as it becomes useful to us during the course of January. Our intention, however, is that the legislation should sunset as early as possible, with the Trade Bill receiving Royal Assent.
Clause 2(8) makes explicit the requirement for any data sharing conducted under the proposed gateway to comply with data protection legislation, including GDPR. Government Departments sharing data under this gateway will also be expected to comply with robust data governance practices, including completing data protection impact assessments and ensuring that data sharing agreements are in place. Furthermore, clause 3 creates an offence for the disclosure of any information in contravention of clause 2 where a person’s identity is specified in the disclosure or can be deduced from it—the point raised by my hon. Friend the Member for North East Bedfordshire (Richard Fuller).
I hope my remarks have reassured the hon. Member for Dundee East on both the importance of clause 2(7) and the steps that the Government have taken to ensure the safeguards are in place where data is shared under this gateway. I hope that his intention is not to press his amendment. I urge the Committee to support clauses 1 to 6.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 6 ordered to stand part of the Bill.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading
Motion made, and Question proposed, That the Bill be now read the Third time.—(Greg Hands.)
(4 years, 5 months ago)
Commons ChamberI will not give way just now. We are committed to additional scrutiny arrangements for any deal with Japan. We believe that the current sunset provisions in the Bill strike the right balance between flexibility for negotiators and the ability to keep agreements operable, and that they provide sufficient constraints and scrutiny to Parliament.
The Government are aware that during the 2017-19 Trade Bill there was uncertainty and concern in Parliament about the nature of the Government’s continuity programme—indeed, I can testify to that, because I was the Minister at the time—and that is why we have tabled a number of amendments to the Bill. There is, however, a crucial change in circumstance since the previous Bill, because Parliament can now see that we have not strayed beyond our mandate to deliver continuity. The transition agreements have not resulted in new or enhanced trading obligations, standards have not been reduced in any way, and our right to choose how we deliver public services has been protected.
In that context, I understand why there is limited scrutiny for small trade deals, and the Minister has spoken about enhanced scrutiny for the Japan deal. He will know, however, that for many constituents, the US trade deal and the China trade deal will raise the most concerns. Can he give us some assurance that the process of increased scrutiny in Parliament will be higher for those deals than for the ones mentioned earlier?
I absolutely agree. In January 2018, on Second Reading of the 2017-19 Bill, the then Secretary of State stood up and said that he would be looking for a new approval process and take soundings on that, but that has simply not happened. As things stand, there is no longer a parliamentary veto, and no formal scrutiny committee has yet been established, despite US negotiations having started.
The important point of a parliamentary veto is not that it is often used, but rather, as seen in other Parliaments, that it encourages the Executive to seek consensus on their negotiating mandate, and keeps legislators in touch during negotiations through regular discourse and discussion. A wise Executive will naturally wish to avoid an unnecessary bust-up just before signing an FTA. Of course, that is where it all went wrong with the TTIP negotiations between the US and the EU, because the US Congress and the EU Parliament were disclosing information to their respective elected representatives that was not provided to UK parliamentarians.
My hon. Friend is mentioning very large trade deals. Does he mean that the crux of this oversight is really required with those big trade deals, such as those with the US, China, and the Trans-Pacific Partnership?
New clause 4 does deal with all trade deals, but obviously the amount of scrutiny would be proportionate.
(8 years, 1 month ago)
Commons ChamberThere are a number of errors in what the hon. Gentleman has said. The EU currently has 36 free trade agreements covering more than 50 countries. It is entirely possible for us to be able to transition those into UK agreements and we are free to discuss them with countries while we are still a member of the European Union. Our aim will be to have minimum disruption of trade and no gap in market access for British companies.
Although I welcome the Canadian-EU trade agreement, does my right hon. Friend share my concerns at the elements of protectionism that have emerged in this agreement? Do they not indicate that there are advantages to the United Kingdom outside the customs union in negotiating its own deals more rapidly, in defence of free trade?
In recent history, most of the trade deals done in the world have been bilateral, because it is clearly easier to get country-to-country agreement. One of the reasons why the European Union does not have an agreement with the United States, China, Japan, India or the Gulf is that it is rather difficult to negotiate with 28 different partners, especially if they retain a veto.