Future Free Trade Agreements

Debate between Stephen Timms and Liam Fox

Thursday 21st February 2019 Commons Chamber

[Dr Fox]

The importance that the UK ascribes to human rights is extremely well documented in the range of Departments that are involved. The Government do not intend to seek any watering down of concepts of human rights, although it is very reasonable for us to have different provisions in countries such as Canada and the United States, whose legal remedies and legal systems are similar to ours, from those that we would have in some other countries. We will want to be flexible on that, and it is one of the issues that I want to see built into real-time parliamentary scrutiny of our trade agreements so that the House can determine whether the values represented by the United Kingdom are reflected in those agreements.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State expect the beneficial arrangements that the European Union has made with developing countries to be maintained in the deals that his Department will negotiate?

[Dr Fox]

I am grateful to the right hon. Gentleman, who takes an interest in these issues, for his intervention. Not only would I like to see those maintained, but I would like to see us use our greater freedom to enhance them. For example, I would like to see a greater convergence of our trade and our development policies; I would like to see us use outward direct investment to help some of the poorest countries develop the ability to add value to their primary commodities; and I would like then for us to be able to use our freedoms in tariff policy to be able to reduce those tariffs on those value-added goods. It cannot be right that countries that produce coffee or fish are penalised for roasting their coffee beans or canning their fish when they try to sell them into our markets. By bringing those two elements together, we would be able to bring enormous benefit and enable people to trade their way to prosperity, rather than being as dependent on our aid policies as they are today. I am grateful to colleagues on both sides of the House who have come forward to us with proposals on that, because I think that we could find a strong bipartisan consensus in this country to be able to do some of that work.

--- Later in debate ---

[Dr Fox]

The liberalisation of global trade is to everyone’s advantage. The hon. Lady says it is a terrible agreement, but her party’s Front-Bench policy is to keep Britain in the customs union, which would mean the agreement is there in perpetuity. Not only that, but we would have no ability to alter it in future, nor would we have the ability to resist any changes made to it, whether or not we think they are to Britain’s advantage. The Labour party cannot have it both ways: it either wants the freedom to create trade agreements or it wants them to be dictated by the European Union. It must be one or the other.

[Stephen Timms]

The hon. Member for Chelmsford (Vicky Ford) asked the Secretary of State for an assurance that the wording he read out from the agreement with Canada will be included in these future trade deals, too. Can he give the House that assurance?

[Dr Fox]

I have done so in previous debates of this nature, in which I said that we regard the public provisions in CETA as being the template we would like to see for future trade agreements. We think it is a good agreement, which is why we find it difficult to fathom why the Labour party did not vote for it in the House of Commons.

The world is crying out for the goods and services in which Britain excels, and it will do so even more in future. We have long been a proud and open trading nation. Trade totals some 61% of our GDP, and it is the foundation of an economy that delivers high-quality, high-paid jobs, that delivers better and more affordable products and that creates the conditions for competitive, world-leading businesses to innovate, prosper and grow across all parts of the UK.

Our openness to free trade, founded on a rules-based multilateral trading system with the World Trade Organisation at its centre, is at the heart of our prosperity. The Government have a clear position that multilateral agreements remain the gold standard of international trade agreements and are the ideal means of pursuing prosperity for the UK and globally across all 164 WTO members. However, this does not mean that bilateral or regional agreements cannot be useful complements to the multilateral system as an adjunct to wider liberalisation. That is why we are also pursuing a range of free trade agreements at both a regional and a bilateral level. Through these free trade agreements, the United Kingdom can work with our partners to establish modern, enduring and impactful trading rules that work for British businesses and for people and communities across our country.

One of the most important trade agreements we are considering is, of course, with the United States, which is our largest single-nation trading partner, with £184 billion- worth in the last year accounting for around a fifth of our exports, and is the single biggest source of inward investment into the United Kingdom. The UK and the US have a deep, long-standing relationship with a strong and enduring bond. We have a shared heritage and shared values, and of course we have deep co-operation across a wide variety of security and defence matters.

We have already taken concrete steps towards this potential trade agreement, including the signing of a mutual recognition agreement last week that confirms both Governments’ commitment to maintaining all relevant aspects of the current EU-US MRA when it ceases to apply to the UK. This will help to facilitate goods trade between the two nations and will guarantee that UK and US exporters can continue to ensure goods are compliant with technical regulations before they depart their home country. Total UK trade in the sectors covered by the deal is worth up to £12.8 billion, with the UK exports covered worth an estimated £8.9 billion.

Similar agreements have been signed in recent weeks with Australia and New Zealand. These agreements ensure continuity and safeguard revenues for British businesses and consumers, and they mark a further crucial step in securing and furthering our vital trading relationships. An ambitious free trade agreement between the US and the UK would further cement our existing strong bilateral partnership and further the interests of our highly compatible economies. It will make it easier for UK and US businesses to trade with each other and identify where we can collaborate to promote open markets around the world.

EU Trade Agreements: Replication

Debate between Stephen Timms and Liam Fox

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

I will admit that the agreement with the Faroe Islands is a small one, but it is very important for people who work in the fish processing industry in this country because it provides the necessary continuity. Labour Members mock it, but they might want to go to places such as Grimsby and tell people there that the agreement has no value, when it clearly does. Countries that are much smaller than the United Kingdom have been able to get trade agreements. For example, Canada—a smaller economy than the United Kingdom—was able to negotiate a perfectly acceptable trade agreement with the European Union, as it has with many other places. It is the utter lack of ambition, optimism and confidence shown by the hon. Lady that I am happy was defeated by the optimism of the British people in the referendum.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State has managed to reach agreement with the Faroe Islands, but not with Japan or Canada. Why has this crucial exercise proved so much harder than he said it would be?

[Dr Fox]

The process continues, but it is worth pointing out that we have reached agreement with Switzerland, which is by far the biggest of all the agreements under this section of our trade. The trade agreement that we have signed with Switzerland this week is, by value, more than 20% of all 40 of the EU agreements. If it is possible to do it with the biggest one, it should be possible to do it with others.

Budget Resolutions and Economic Situation

Debate between Stephen Timms and Liam Fox

Thursday 17th March 2016 Commons Chamber

[Stephen Timms]

Chinese companies looking to move into the Asian business park in my constituency want to come to the UK because it is the best place in Europe for them to be located, it is English speaking and so on. Is it not the case that they want to address the European market, and that if we have left the European market, they will not come?

[Dr Fox]

I simply do not believe that that——the idea that, if we are not in the EU, we will no longer trade—is credible. Countries do not trade with countries; companies sell to consumers. They will sell to consumers when they have products of the appropriate quality at the appropriate price. The worst case scenario is having World Trade Organisation tariffs, but sterling’s depreciation since November was a far bigger change in the financial costs to business than anything tariffs could produce.