EU Free Trade Agreements

John Bercow Excerpts

Thursday 24th January 2019 Commons Chamber

[Greg Hands (Chelsea and Fulham) (Con)]

It has always been very likely that the counterparties to these deals would want to keep them operable, as it is in their interests to do so, but may I highlight the stinking hypocrisy of the Labour party on this? It voted against adopting many of these deals in the first place—it voted against adopting the comprehensive economic and trade agreement in February 2017 and against adopting the EU-Singapore agreement in September 2018—and now Labour Members complain that the deals will no longer be operable next month. Does my hon. Friend agree that this shows the Labour party at its absolute worst on Brexit, with its members unable to agree among themselves, and unable to do what is in the UK national interest?

[Mr Speaker]

The Minister at least pays obeisance to, and I think has genuine respect for, etiquette, protocol and the principle of parliamentary courtesy, so it would not occur to him for a moment to descend into the swamp, disregard his ministerial responsibility to the House, and start prating on about the policy of the Opposition, but let us put it to the test and hear from the Minister.

[George Hollingbery]

First, let me pay tribute to my right hon. Friend the Member for Chelsea and Fulham (Greg Hands) for all the work that he did in preparing this country for striking new trade deals, and indeed in maintaining the continuity of our existing free trade deals. He points out an inconsistency in the Opposition’s position on this matter. I agree with him that it is a fairly pointed one, and ask them to contemplate a bit. Yes, he is correct in his assessment.

[Mr Speaker]

The tiger that was previously in the library has now been removed, and the immediate danger has been averted. I think the Minister will be familiar with the Merchant Ivory film in which that exchange occurs. [Interruption.] It is fairly obvious, if one applies one’s mind to it.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend the Member for Nottingham East (Mr Leslie) asked a very simple and sensible question. The Minister’s long and rambling answer had a simple summary—clearly, it was no. The Secretary of State repeatedly told us that it was a simple matter to roll over deals on trade with approximately 70 countries, which constitutes 13% of our exports and 12% of our imports—it would be a cut-and-paste job. The Government would be ready on day one after Brexit, he told us. That was never true, was it? Those deals are entirely separate and independent from any deal that we may have with the EU.

If we leave with no deal, can the Minister confirm that these arrangements with third-party countries will fall away, as we have consistently warned? Will he confirm that, without new agreements in place, we could, in the absence of a deal with the EU, have no basis of trade with these countries after 29 March, and would fall back on World Trade Organisation rules? That is an argument for taking no deal off the table if ever there was one.

Will the Minister confirm that many of the terms of those agreements will need to be amended, and could be changed substantively as countries seek to improve on the terms that they have with the EU? Will he also confirm that agreements with countries that have economic partnership agreements are often regarded as being not fit for purpose and are alleged to have been signed under economic duress? The Minister will do well to listen to some of this, as this is the reality of what is going on in his Department. For example, North African countries want to sell their oranges and olive oil to us in far greater quantities than is allowed by the EPAs with the EU, which protect southern European producers.

In the Trade Bill debate in the Lords yesterday, the Minister conceded that the Department had no idea how many countries were ready to roll over their free trade agreements, how many would not, how many would have to adjust their constitutional arrangements, and how long that might take. Will the Minister for Trade Policy confirm that his colleague was right to say so?

The Secretary of State is busy socialising in Davos. Is that not a reminder of the incompetence and overconfidence that he has shown over the past two and a half years?

--- Later in debate ---

[George Hollingbery]

The answer is that there is not much more that I can say at this stage. [Interruption.] There are no deals that have yet actually been signed, but I want to make it absolutely clear—

[Mr Speaker]

Order. A question has been asked. The Minister is an unfailingly courteous fellow, and we must hear his answer.

[George Hollingbery]

I want to be absolutely clear with the House that although it is possible to interpret my last answer as meaning that there has been absolutely no progress on the agreements, that would be an entirely, completely and utterly unfair interpretation of where we find ourselves. There are agreements that have had initialling; there are agreements that are very close to having initialling; and there are very many agreements that we believe will have a signature at the appropriate time. There is not an agreement that has had a formal signature yet, but to focus only on that is to misunderstand, or at least mispaint, how these agreements work. I have said to the House that we believe that we will transition the majority of the agreements by exit day, which necessarily means that they will have a signature, and I have every confidence that they will.