(2 years, 2 months ago)
Commons ChamberI thank the hon. Lady for her comments. I hope that as we progress the discussions today, we will be able to look at them.
Is it not the case that negotiations directly between Parliaments—that is the effect of what the hon. Member for Brighton, Pavilion (Caroline Lucas) says—on any international agreement would be an absolute nonsense and would never get us anywhere? The right way is to use plenipotentiary powers in the name of the Crown to negotiate the deal and then have a serious engagement with Parliament, as this is.
I thank my hon. Friend. Both hon. Members highlight what is important about what we are doing today, which is bringing to the House, as part of our new free trade agreement powers, the opportunity for the UK to negotiate and complete really great deals with our important trading partners that will help us to grow our economy. That is the power and the freedom that our departure from the European Union brought us in trade, and I have been proud to drive that forward in the last year. The Australia and New Zealand trade deals are two of many that are now in train that will help our businesses to export more widely to the rest of the world.
These free trade agreements will eliminate tariffs on 100% of all UK exports to Australia and New Zealand. As I say, that will open up new trade opportunities for businesses of all shapes and sizes, and that is an important aspect of the opportunities that our free trade powers bring us for our businesses to take advantage of.
(2 years, 10 months ago)
Commons ChamberWe have made good progress in negotiations and we hope to have concluded them by the end of this year.
I thank my hon. Friend for the work he is doing to champion his local businesses. He is right: it is an £8.4 trillion market that we are opening up. However, this is about not only the economic benefits, but the benefits of those closer trading ties to enable people to work on problems that we are all facing around the world, in tech, the environment, healthcare and other sectors. That has got to be good for the progress of humanity as well.
(3 years, 5 months ago)
Commons ChamberMy hon. Friend is quite right. I recommend that the Secretary of State read the speeches of many Members in that last debate. I have to say that it reminds me of reading, in March, the Department for International Trade’s report “Global Britain, local jobs”, in which it purported to tell us how many jobs in each region and constituency were dependent on trade. It did not mention any jobs in steel or agriculture. I thought at the time that that was a mistake, but I fear that actually it looks more like a forecast.
We ought, perhaps, to turn to the CPTPP. I have three key quotes to put to the Secretary of State from esteemed figures in Canada, Australia and New Zealand, all of which I hope will illuminate what is actually going on in the accession process—certainly rather more than the Government have to date.
The Secretary of State will recognise my first quote, because it was said directly to her last July when she was discussing the CPTPP with the former Canadian Prime Minister, Stephen Harper. “The UK,” he told her,
“is going to have to identify what are its offensive interests and what are its defensive red flags…You can seek tailor-made provisions,”
but
“the other countries are going to have a…take-it-or-leave-it approach…That is a big decision for the UK.”
It is indeed a big decision, but before the negotiations have even begun, the Secretary of State has apparently conceded defeat. Indeed, reading the Government’s so-called negotiating objectives, this appears to be the only negotiation in British history in which the objective is to accept everything the other side wants as quickly as possible, with not one single demand of our own. There is not one single clause in the thousands of pages that make up the agreement where the Government will seek any exemptions or amendments to reflect Britain’s interests. That is the literal definition of being rule takers and not rule makers.
Even when the Government make a veiled reference in their document to the prospect of China joining the CPTPP, the best they can offer in response is the assertion:
“We would only ever support applicants who meet CPTPP’s high standards on rules-based free and fair trade.”
In other words, they have no opinion of their own on whether a back-door deal with China is an acceptable prospect for Britain, and no concerns at all about the Uyghurs, slave labour or genocide. All they can say instead is that China will have to obey the same trade rules as us. That weak acceptance from the Government that we cannot change the CPTPP rules is deeply worrying when it comes to protecting our NHS, our food standards and other defensive concerns.
It is also deeply frustrating when it comes to promoting the interests of British business and the adoption of British standards in the trans-Pacific region. Why are the Government not using the accession process to press for improvements to the current provisions on financial services, small businesses and mutual recognition of qualifications? Why is the Secretary of State not arguing for new chapters to cover educational exports, chemicals and pharmaceuticals, and co-operation on new technology? Why are the Government not seeking to strengthen the agreement when it comes to protection of labour rights, animal welfare and the environment? The Government are doing none of those things.
The right hon. Lady must know that the CPTPP preserves the member states’ right to regulate for themselves. Will she not accept that that is one of the attractions of these arrangements compared with the EU, which we have just left precisely to recover control of our own regulation?
We live in interesting times, and I do not doubt that, whether it is in 100 or 1,000 years, historians will look back and record that these were times of great tumult—from the global financial crisis, through the unseating of a number of leaders around the world and Brexit, through to what I fear will be the next financial crisis, as inflation comes in and causes problems for bond markets, at which point we will have a great moment of decision. I believe that in that decision we will crystallise a great and long-standing crisis of political economy—how we are governed and how power is constructed so that we can deliver free trade and prosperity for all and raise the standard of living for everyone.
Whether people like it or not, the UK rejected the idea of political integration to deliver free trade within customs unions and harmonised regulations. The British public rejected it, not only in the referendum but in subsequent elections. This is where the CPTPP comes in and is so important. Yes, it is about trade, but it is about more than that; it is about strategy. It shows how we can be more prosperous, more free-trading, in a way that retains that crucial right to regulate.
I spoke for 15 minutes in a debate on 21 April, and I am very grateful to the Minister for Trade Policy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), for responding. I do not propose to repeat all of what I said, but I said in particular:
“CPTPP can provide a better standard of living for people in the UK and across the original member countries. It can deliver free trade plus self-government in this great age of interventionism.”—[Official Report, 21 April 2020; Vol. 692, c. 260WH.]
That is what I am looking to the Government to deliver.
I mentioned Taiwan in my speech. I would like to see Taiwan accede to the CPTPP along with us, together with the USA. If a number of accession countries joined, we could end up creating a new free-trading platform containing over half of global GDP. That would create a great force for good in the world.
Having recently met the Taiwanese ambassador, I am inclined to suggest to my right hon. Friend the Minister that he supports Taiwan’s accession to the CPTPP. Would he also look into proposals that Taiwan has made to the Government to deepen our trading and investment relations specifically? Given Taiwan’s very important semiconductor industry, it seems to me in the national interest that we should deepen and strengthen that friendship.
Finally, let us look at what a country as progressive as, presumably, any Opposition Member could wish—New Zealand—says in summarising CPTPP and the environment. One of its websites points out:
“The Environment chapter includes two key general commitments that underpin mutually supportive trade and environmental policies.”
It explains that CPTPP parties will effectively enforce their environmental laws.
As I run out of time, I recommend the website. It shows just how high-standards this agreement is.
(3 years, 5 months ago)
Commons ChamberI think the hon. Gentleman’s farmers deserve better than the ludicrous scaremongering that he has been putting forward.
I congratulate my right hon. Friend and all her officials on this excellent deal. Is not the quality of this deal and the speed with which it has been agreed a testament to what can be achieved by high-standards nations when they come together properly as partners and negotiate in good faith? Does she agree that this augurs very well for our accession to CPTPP?
I agree with my hon. Friend. The fact is that the UK is now open to doing liberalising trade deals around the world. We believe that our farmers, our manufacturers and our services companies are able to compete successfully. We also believe that we are better when we are able to share ideas and trade with our friends right across the globe. I can assure him that this is only the start of our free trade agreement programme. We are working on CPTPP accession. We are working on deals with other countries around the world. We are going to make global Britain a success and make the UK a hub for trade in all areas, from food and drink to manufacturing, services and digital.
(3 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
I beg to move,
That this House has considered the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
I am absolutely delighted to serve under your chairmanship, Mr Hollobone, and delighted that the Government are seeking to accede to the comprehensive and progressive agreement for trans-Pacific partnership—something I proposed while I was a Minister. At the time there was very little interest from officials or from other Ministers. It is a shame we had to change the Government and then have a general election to get here, but least said, soonest mended.
I am personally invested in this accession, I am glad to say. CPTPP can provide a better standard of living for people in the UK and across the original member countries. It can deliver free trade plus self-government in this great age of interventionism. By preserving the right to regulate, it can allow democracies to function while delivering free trade—a point I hope to elaborate on before I finish. It is a high-standards agreement, as I will flesh out, and it can facilitate greater international co-operation, which those of us who are free market liberals should aim for.
I want to start by landing the central point: how important this debate is and how important the agreement could be. If we take the current members of CPTPP, and if the United States chose to return to the agreement, plus the United Kingdom, plus other potential accession countries such as Taiwan, it could result in a new platform free trade agreement for the world, covering more than half the global economy. CPTPP is therefore a major geostrategic agreement of relevance to the whole world, so I am really delighted to be here for this debate. It is absolutely vital that the United Kingdom is there at the start.
Colleagues will know the Prime Minister’s speech in Greenwich on free trade. It was an admirable articulation of the principles of free trade, and I wholeheartedly support the policy, which it is refreshing to be able to say.
I want to turn to the Government’s own document, “UK applies to join huge Pacific free trade area CPTPP”. It was issued when the Government formally applied. It explains:
“Joining the £9 trillion partnership will cut tariffs for UK industries including food and drink, and cars, while also creating new opportunities for modern industries like tech and services, ultimately supporting and creating high-value jobs across the UK. Unlike EU membership, joining does not require the UK to cede control over our laws, borders, or money.”
That part, of course, has now run on to the rocks. As the Government explain, it has:
“Modern digital trade rules that allow data to flow freely between members”.
It eliminates tariffs more quickly on UK exports than, for example, the deal that we have with Canada. The rules of origin are extremely important. I will not get into the detail, but they
“allow content from any country within CPTPP to count as ‘originating’.
That is extremely important in a world of free trade areas.
The Prime Minister was very proud to support the agreement. The Secretary of State put out an excellent statement. Our accession was supported by techUK, the Federation of Small Businesses and the CBI. I was very pleased to see such a wide range of support.
The reason why I originally came across the CPTPP was that when I re-founded the European Research Group, which seems a long time ago now, it was to unite the various wings of the Conservative party—ironically—and of course, crucially, to do research. We therefore sought the best expertise from outside Parliament, and one of the documents produced was by the Legatum Institute Special Trade Commission, as it then was. It was a group of visionaries led by Shanker Singham, who is now a personal friend of mine. In April 2017, it produced “A Blueprint for UK Trade Policy”, which in particular described the importance of what was then known as the TPP. It states:
“The TPP is probably the most advanced trade agreement that has been agreed by any group of countries. It is a high-standards, platform agreement that attempts to make progress on the most difficult aspects of international trade—especially behind-the-border barriers, regulatory protection, the impact of state-owned business on trade, and distortions more generally.”
It goes through some of the key factors in the agreement; possibly I will come back to those in passing.
I cannot possibly go through all the detail of the agreement and I hope that hon. Members will not test my capacity to recall and interpret the text, although I did wade through the original TPP in detail. There is a very helpful explainer on the New Zealand Government website, and I very much hope that in due course our own Government will explain the agreement, but I will just cover the key features.
The agreement covers goods and market access, including for agriculture, an issue that I wish I had enough time to get into—I hope that other Members will mention it —and services’ market access, which is of course crucial for the UK. We have a comparative advantage in financial services. We should be looking to work with like-minded countries around the world not only to participate in but to define a new global standard for financial services in particular and services in general; and the CPTPP is a great basis on which to start.
The agreement makes provision for easier travel under business visas. It raises labour standards for the region. That is of course a matter of acute interest to all Members of this House. It raises them in the region; that needs to be understood. It has environmental provisions, including ensuring that there can be no waivers or derogations, for trade advantage, from any environmental standards.
The agreement protects individual nations’ right to regulate. Of course, it does not need to be elaborated on—well, perhaps it does—that in this country the idea of using political vertical integration to deliver trade policy within customs unions with harmonised regulation has, whether people like it or not, run on to the rocks of lacking democratic consent. Now, as we come together in a spirit of good will, seeking to unite, move forward and be prosperous, that is something that we need to deal with. The CPTPP is really important because it preserves that right to regulate and preserves the independence of the member countries, while delivering free trade.
There are provisions for pharmaceuticals, investment, disputes and Government procurement, because of course Governments everywhere buy a great deal. There are provisions for intellectual property, geographical indications, trade facilitation, which I will come back to later, and state-owned enterprises, at which point I will say a word about market distortions.
One key feature of Governments’ highly regulating and, indeed, spending a large proportion of GDP is the effect that they have on market economies. It is really important as we go forward, if we are seeking to promote the maximum human welfare—I hope that, despite our disagreements, everyone in the House is seeking to maximise human welfare—that we minimise unhelpful distortions. We are not trying to create the wild west here, not under this agreement and not in any reasonable future. What we are trying to do is to have pro-competitive, welfare-enhancing regulation. Of course I am in favour of doing it under an English common law tradition; there will be Members in this debate who would like to use the Scottish tradition or whichever. But the British tradition of regulation has in some ways, I think, been suppressed by our EU membership and now needs to be rediscovered. Regulation has become altogether too prescriptive. We need to rediscover people’s capacity to co-operate to deliver high quality standards within a framework that is provided by the Government but is not too prescriptive.
As an example of how things could be done better, I refer in passing to how we regulate autonomous vehicles; I remember serving on the Vehicle Technology and Aviation Bill Committee. Our regulation sets out a framework of liability, but does not end up with the Government prescribing software standards, which personally I think would be a disaster. That is just one example of how, using the common law tradition, we can provide high-standards regulation that protects the public and is conducive not only to the enhancement of welfare, but to social progress through innovation—goodness knows we will need that if we are to drive up productivity. Those are just a few thoughts on regulation.
The Government’s document on accession sets out three reasons why we would wish to accede to TPP: first, to
“secure increased trade and investment opportunities that help the UK economy…overcome the unprecedented challenge posed by coronavirus”;
secondly, to
“help us diversify our trading links and supply chains, and in doing increase our economic security”;
and thirdly to
“help us secure our future place in the world and advance our longer-term interests.”
The Government explain that
“CPTPP membership is an important part of our strategy to place the UK at the centre of a modern, progressive network of free trade agreements with dynamic economies. In doing so we aim to turn the UK into a global hub for businesses and investors wanting to trade with the rest of the world.”
That should be a really exciting prospect for everyone in the House and across the country who understands the trajectory. It will help the UK to forge a leadership position, as the Government have set out. So the Government’s strategic vision is excellent.
The agreement also leans into a really important set of current global trends. People will complain that the idealists seek to replace our EU membership, but I do not know of any credible proposition to replace EU trade with CPTPP trade—that is not a practical proposition, and I do not think that anyone is seeking to do it. I am very pleased that the Government have a high-quality agreement in place with the European Union. It is not an either/or; it is a complementary proposition. I am very pleased that the agreement that we finally struck with the European Union facilitates the accession to CPTPP.
I draw on a Bain & Company report, which is a few years old now, on the declining cost of distance. This is not about the momentary cost of containers, but about the great global trends that have taken place in our world, driving down the cost of geographical separation. The Bain paper states:
“The catalyst for this historic shift is an array of new platform technologies that have pushed the cost of distance to the tipping point. Multibillion-dollar investments in robotics, 3-D printing, delivery drones, logistics technology, autonomous vehicles and low-Earth-orbit (LEO) satellites are giving rise to new products and services that sharply erode the cost of moving people, goods and information. As these technologies combine and converge, change will accelerate…A significant change in the cost of distance would prompt millions of economic actors to rethink their strategies and investments, and cause individuals to reassess where they work, live and raise their families.”
If the coronavirus crisis has done anything on that point, it is to accelerate the trend—here we are, debating the matter in Parliament, with hon. Members about to contribute virtually. Bain was visionary in seeing the declining cost of distance as technology advances, which plays into the accession to CPTPP.
I turn briefly to two final matters. The first is geopolitics. The world can be seen now to be polarising between the Asian authoritarians—Russia and China—and the liberal maritime democracies that believe in free trade. In a speech given to Policy Exchange, the former Canadian Prime Minister Stephen Harper said that the CPTPP would go
“from being a purely regional pact to now being the beginning of an alternative global order”.
It is a huge and extremely important vision, and the UK’s acceding to the agreement will be a key part.
Let us not forget what is at stake. We see the behaviour of China and we know that the rest of the world’s nations will need to set a better example to their people than this tendency to so control the lives of ordinary people, including persecuting some of them. That is an important illustration, in the little time that remains, of how trade is strategy today, and our accession to CPTPP is about that strategy for not merely the short run but the long run, to position the UK for success and as a global leader. I do not mean “global leader” in any unhelpful way, but in a way that says, “We are your friends and partners in a very open and equal way,” to great nations such as Japan, Australia, New Zealand, Singapore, Vietnam, Canada, Mexico, Chile and Peru.
All that grand talk of geostrategy will not mean much to many of the small businesses in Wycombe, and across the country, which are perhaps still struggling with working out which incoterms they should use to help to facilitate their trade with the EU. That leads to a wider issue of trade facilitation, which I hope my right hon. Friend the Minister will touch on. It is important that we help firms that are used to trading and exporting only within a customs union to understand that it can be relatively straightforward to export across the world. It is also important to help firms to get set up to do that. I hope that my right hon. Friend will bring his great expertise on those matters to bear through the Government, to help the firms in my constituency and across the country. There will be a huge task of simplification and explanation. The agreements are complex and their interpretation is difficult. It will be for the Government to show small firms how to take the best advantage of them.
I hope that my right hon. Friend will touch on the issue of when the Government will be able to set out their approach to formal negotiations, and that they will say more about their hopes, and what safeguards they will be looking to maintain. Perhaps there can be more about our right to continue to regulate ourselves when entering into such a large agreement. A great deal has been said about our being a small nation, but when I talk to people in Japan or, indeed, when I am inspired, Mr Brandis, the high commissioner of Australia to the United Kingdom, I find that the rest of the world does not see us as we have been encouraged to see ourselves, but as a potentially important catalyst in the new order. I should be grateful if the Minister would say something about major geopolitics, but I appreciate that that might be out of scope. However, perhaps he could emphasise how the issue is really about—I do not like to say “ordinary”—normal men and women trading in the UK, taking advantage of new arrangements around the world, the better to innovate, improve our lives, develop productivity and create a greater spirit of global co-operation around the world.
As I finish my speech, I think I should wave this great doorstop of a document that Business for Britain produced before the referendum, on the back of which is a poster, with a vision of Britain having a future with the world. The accession to CPTPP is central to that bright, hopeful future of trade and co-operation with the world, and I am delighted that my right hon. Friend the Minister is here to respond to what I am sure will be an interesting debate.
The debate can last until 10.55. I am obliged to call the Front-Bench spokespeople no later than 10.22. That will be Drew Hendry first. The guideline limits are 10 minutes each for the Scottish National party and Labour spokesmen and the Minister; and Steve Baker will have three minutes to sum up the debate at the end. There are nine Back Benchers who seek to contribute before 10.22, and my aim is to get everyone in. If everyone is going to speak for the same length of time, Members will not want to speak for more than four and a half minutes. I know that Angus Brendan MacNeil, who is first, will want to show us how it is done within the time available.
I completely agree with my right hon. Friend the Minister. Like him, I have hugely enjoyed this debate. He enjoys my unqualified support, so I will turn my remarks to some other aspects of the debate.
I thought that the best part of the contributions from the Front-Bench spokesmen for the SNP and the Labour party was their vivid illustration of the shortcomings of virtual proceedings, because we were not able to intervene on them to explode the fallacies in their speeches. I regret that they are not able to intervene on me now, and I look forward to them supporting the full resumption of proceedings in the main Chamber and in Westminster Hall, so that we can resume our normal to and fro.
I thought the Labour party were progressive, and yet this progressive agreement is one that they do not wish to support. Of course there are problems with labour standards among the Pacific rim countries, and I would very much like to see those problems addressed and standards driven up. Of course we want to get children out of child labour, and that is why I support a progressive agreement that improves labour standards in the region. If we were to listen to the Labour party, they would have us do a deal with no one who had not already met the standards of the western world, the United Kingdom and the European Union. We can see why they want to be in the EU.
The SNP, of course, is speaking entirely from its own hymn sheet. It wishes to leave the UK and rejoin the EU—that is perfectly plain from what it has said. I refer the SNP, in its pinched and miserable assessment of our economic prospects, to an article by the well-known pro-EU commentator Wolfgang Münchau—he often, of course, writes for the Financial Times—in his own Eurointelligence:
“So much for the Brexit scare stories”—
he writes—
“Apart from a short-lived disruption of trade flows Brexit has been a macroeconomic non-event…If you look at the latest IMF data and projections in the graphic above, you don't find a discernible macroeconomic effect of Brexit in the first ten years after the referendum.”
Thank you, Mr Hollobone. It is only because of the manner of the speeches by the Opposition spokesmen that I am choosing to attack what they said. I look forward to them supporting the resumption of proceedings.
I have previously critiqued the computable general equilibrium modelling that is used, and I think that Opposition Members’ simplistic analysis and arithmetic shows that they, too, should look at the shortcomings of CGE models and at what can be done in the UK. Lord Lawson of Blaby has said that UK domestic settings will be dominant in our future, and that is something that Wolfgang Münchau turns out to agree with.
Turning to other colleagues, I enjoyed their speeches enormously—
Order. I am afraid the hon. Gentleman will not be able to do that.
Motion lapsed (Standing Order No. 10(6)).
(4 years ago)
Commons ChamberWe are determined to reach a deal with Canada before the end of the year. It is a fellow G7 member and one of the top 10 economies in the world. It will help our trade, from cars to beef, fish and whisky, in a trading relationship already worth £20 billion.
What we are negotiating at the moment is the vital continuity agreement, but I do hope that, in the future, as Canada is a member of the trans-Pacific partnership that has advanced chapters in areas such as data and digital, we will be able to go much further and build a much deeper relationship.
(4 years, 2 months ago)
Commons ChamberI am sorry to hear the right hon. Gentleman denigrate foodstuffs from his own constituency. [Hon. Members: “Wool”!] I am sorry but I did not hear him. We are still in the legal scrubbing process with Japan —[Interruption.] That has nothing to do with wool. Once that process is finished, we will be sharing our text with the International Trade Committee, which will then fully analyse it.
I congratulate my right hon. Friend heartily and her chief trade negotiation adviser who, I think, led this particular negotiation if I recall correctly. I want to welcome the fact that the Government have agreed disciplines to avoid anti-competitive market distortions and subsidies in particular. Does she think that we could offer a similar regime to the EU in order to reassure it that we will be behaving fairly as an independent United Kingdom?
We are very committed to behaving fairly in all our dealings, but, as I made clear earlier, what the EU is asking for is not a standard FTA clause, but for the EU state aid regime to be put into UK law, and that is not on.
(4 years, 9 months ago)
Commons ChamberThe title of this debate seems to be shorthand for the United Kingdom taking up its separate and equal status among the nations of the world, and everything that that means. As we approached this debate, people might have been asking, “What would it look like if Brexiteers had thought in advance about Britain’s global future? What would it mean if we had had a comprehensive analysis of every area of relevant policy that would change as we left the EU? What would it mean if we had actually drawn a picture of what Britain’s future would look like if it was global?” What if we had set out:
“Why the EU needs to Change
The Change we need
How Britain would gain influence outside an unreformed EU
How Britain would prosper outside an unreformed EU”?
What if we had then brought it together in a substantial conclusion.
I do not suppose, Madam Deputy Speaker, that you will allow me to read 1,030 pages into the record, but for anyone who thinks there was no plan, and that Brexiteers had not thought through what it would mean to leave the EU and where we wanted to go, I encourage them to Google—or use their preferred search engine to search for—“Change, or go” by Business for Britain, which was published before the designated period of the referendum began. I am very proud of that document. I recently revisited it to see what it said about trade policy, and I think it stands the test of time. I am sure it contains something I will not agree with, something outside the boundaries of the manifesto, but anyone with a fair, objective mind should understand that we have always been clear about where we wanted to go.
This really matters, because ideas inform action, and both ideas and action are guided by values. At the heart of the difficulties we have faced recently is the fact that too many people have not understood our values. Brexiteers, people like me, are liberals of the old kind: open and tolerant, and believers in a diverse society, one that makes progress. For a long time, I was in favour of the European Union as it was, including, at one point, the euro. Why did I change my mind? It was because of Gordon Brown going off and signing that Lisbon treaty on his own, trying almost to hide what he was doing. I came to realise that democracy was under threat. When I recall how I felt at the time of the Lisbon treaty, watching the European constitution being hammered through, positively against democracy and with a refusal of a mandate, I remember fear and anxiety. I remember that I was concerned for the future of the country.
I therefore listened to the concerns of our opponents—the opponents of Brexit—expressed in the past few years. I have listened to them with considerable sympathy. Today it is incumbent on all Brexiteers to manufacture consent for what we are doing, to recognise that we have won: we have the Prime Minister we wanted and the policy we wanted, and the majority in the House of Commons necessary to give the Prime Minister the power necessary to put that through.
The Prime Minister is a centrist. Anyone objective, looking at our manifesto and our programme for government, will see that he is willing to intervene in the economy, that he wants to be outside the EU but that he is open, liberal, tolerant and turning to the world. I am therefore making an appeal today for grace and patience, for people to be kind to one another, particularly as we approach this celebration. It is difficult to be kind to people when they have been trying to delegitimise election results and referendum results, including the recent election: I heard people talking about first past the post, seeking to delegitimise the result. It will not do to be trying to delegitimise the constitutional arrangements that have served us very well. It is difficult to be graceful to people when they are demonising you, in one case saying that Brexiteers—indeed, the European Research Group—were worse than Nazis. That is a ridiculous comment, yet demonisation has been common. It will not do for leaders of our society to be constantly seeking to demoralise the public, but that is what we have seen. No more—no more demoralisation, no more demonisation of opponents and no more attempts, please, to delegitimise legitimate results.
Does my hon. Friend agree that the reason he is so right is that the outcome of the general election, which endorsed the result of the referendum itself, is a tribute to the British people, who made the decision that we should be returned to this House in the numbers that we see?
Absolutely, and I shall come on to the question having been asked and answered.
Currently, journalists are asking me how I feel about tomorrow, the day of our leaving the European Union. It is, after all, the conclusion of what I have worked for for a good 10 to 12 years of my life—I got into politics because of that fury about the Lisbon treaty—so I should be elated. I should be rejoicing, but I am reminded of Wellington:
“Believe me, nothing except a battle lost is half so melancholy as a battle won.”
I approach tomorrow in a spirit of some considerable melancholy. I very much regret the division that this country has faced. I very much regret the cost of coming so far—the things we have had to do in British politics to get to this point. I very much regret the sorrow that my opponents will feel tomorrow as some are rejoicing on the streets.
I know that we are going to celebrate. I will celebrate—I will allow myself a smile and that glass of champagne and I will enjoy myself—but I will celebrate discreetly and in a way that is respectful of the genuine sorrow that others are feeling at the same time. That means not that I am giving in—it does not mean that I am turning away from what I believe—but that I recognise that all of us on the Government Benches who have won the argument now have a duty to be magnanimous. I urge that on everyone, inside and outside the House, even as we press forward. There are some who take an attitude of “no quarter” after the events of the past few years, and I say to them no, enough. We have to forgive and turn away from what has happened in the past, because we need to create the future that we can all enjoy and be proud of in this country. It is not a future based on past grievances; it is an open and expansive future that embraces the infinite value of every other person, even when we disagree with one another.
I do not wish to make a speech about disagreeing gracefully—perhaps on another occasion—but I do want to pick up on what the Secretary of State said about the battle of ideas raging around the world. She is absolutely right. It is a subject about which I have talked before, and if anybody is interested in my analysis, it is in the pinned video on my YouTube channel. A true conflict of ideas is going on right now—a widespread crisis of political economy—and when we listened to the hon. Member for Brent North (Barry Gardiner) talk through his ideas, some of the difficulties and conflicts about how we go forward in the world were evident in what he said.
I am not going to be critical of what the hon. Gentleman said, but one point that I shall draw out is that so many people, including him, have made a plea for us to comply with the rules-based international order. I want us to do that. I want us to build up the World Trade Organisation—a great multilateral organisation that does not involve having a supreme court with wide-ranging powers to deliver free trade—but I say gently that if we comply with the World Trade Organisation rules, we cannot discriminate against food that is safe to eat, yet there are Members of this House who make both pleas: they plead that we ban American food that is safe to eat at the same time as making a plea for complying with WTO rules. People will have to make up their minds as to what they want to do. I want to respect international institutions—the things we have carefully built up to pursue human flourishing through liberty under the rule of law, not only nationally but internationally.
Does my hon. Friend agree that it is important that we work together as a House to make sure that we do not take tariff reduction off the table, because if we are to achieve some of the ambitions that the Opposition outlined earlier, we need the ability to do deals with others, which requires us to be less protectionist in our own markets?
I fully agree with my hon. Friend. In fact, before I came to the House—before I expected to get into the House—I started a think-tank called the Cobden Centre. I consider myself to be an old English Cobdenite classical liberal. I believe that human flourishing will be best advanced by the policy on which my hon. Friend and I agree—one of liberalisation of both tariffs and non-tariff barriers. We should be promoting human flourishing through that deeply rooted sense of liberty that I know the Secretary of State fully believes in.
The battle in which we are engaged is, in a sense, the same old battle we have always faced. It is a battle between a belief in managing the lives of other people and a belief in liberty. Are we to be merely conservative, clinging on to the institutions of the past, or are we going to be what I would consider to be genuinely liberal? While respecting traditions that have worked, are we going to be genuinely liberal and progressive, recognising that human progress comes not through state planning and foreseeing every possible difficulty well in advance? That has never worked. It might sometimes make a contribution, but as a general principle it has not worked. Or are we going to recognise that everyone errs? Like entrepreneurs, are we going to recognise that things can and do go wrong? Are we going to have good-quality error correction mechanisms, which mean that in government, as in the market and as in science, when errors are made, they are rapidly corrected? Not only will progress in the world happen fast, but it will keep accelerating. We need the mechanisms to ensure that errors are not entrenched—not entrenched across the whole of Europe and the world—but corrected fast.
In concluding, I wish to turn to a speech made by Ronald Reagan in 1964 called “A Time for Choosing”. It is always a time for choosing. He talked about the long journey that mankind makes
“from the swamp to the stars”.
He said that
“this idea that government is beholden to the people, that it has no other source of power except the sovereign people, is still the newest and the most unique idea in all the long history of man’s relation to man.”
He went on:
“This is the issue of this election: whether we believe in our capacity for self-government or whether we abandon the American revolution and confess that a little intellectual elite in a far-distant capitol can plan our lives for us better than we can plan them ourselves.”
The question has been asked—not just once, but four times. It was answered in a referendum; in a general election in which both main parties had leave manifestos; in European Parliament elections in which the Brexit party came first with, for want of a better term, a harder proposal for Brexit than the Government had adopted; and the question has just been asked and answered in a general election with a result that none of us could have foreseen. It is time for the whole country and the whole House, magnanimously on the part of those of us who were victorious, to accept that it is time to move forward gracefully, to believe in ourselves and our capacity for self-government, and to go forward and flourish.
Well, it was a fine speech, in parts, that the hon. Member for Wycombe (Mr Baker) just made, and I say that with all sincerity. He ended—I can tell—with a quote from President Reagan, who I can only assume is a hero of his, and, indeed, of many of the colleagues who surround him on the Government Benches, but I prefer what the German Federal President Steinmeier said, which was that the politics of the European Union are based on the revolutionary idea that one’s opponent has a point. The hon. Gentleman brought that to this debate, because he did have a point, of sorts. What he said about how his side owns the victory is important; indeed, as a party that advocates Scotland’s independence, that is a lesson for us as well. These things do matter.
I remember that the day after the referendum, on Parliament Square, outside this building, a young girl held up a sign with the Europe flag on it that said, “I want my country back”, a phrase often used by people on the other side of the Brexit divide. There is a feeling of loss, and I will take at face value the way in which the hon. Gentleman extends the hand, but that does not mean that I have to accept everything that he asks the House to accept, because the clash of ideas does matter, and only a fool would not understand that there is a Scotland dynamic in this. Indeed, a Unionist should understand that better than anyone else.
I accept that the Prime Minister and the Conservative party have received a mandate to take England out of the European Union, but it is an arithmetical fact, adumbrated in all the electoral events that the hon. Gentleman just outlined, that that mandate does not extend to Scotland. I can accept that we had the referendum on independence in 2014, but facts change, circumstances change, and people’s minds change, too. I ask the hon. Gentleman—in all seriousness because he clearly has some clout on the Conservative Benches—to ask his colleagues in Government to engage their brains more fully than they have done to date in the Scottish dynamic of the constitutional conundrum that we are in and that will only intensify.
I am most grateful to the hon. Gentleman for making so much of my speech his own. What I say is that I hope I am not asking anything of him that I would not give myself. I said that I would accept the referendum result. I would have stood down in the general election of 2020, and I would have left politics. He is entitled to fight on, but I just say to him that the Prime Minister was right to say that there was a referendum in Scotland and that it should be accepted. It was stated that it would be a once-in-a-generation referendum. Of course, facts change. That is, I am sorry, to add nothing to the debate. I just ask him to accept his own referendum result.
I would not be in this House if I did not accept the 2014 referendum result. There would not be this huge number of Scottish National party Members of Parliament if we did not accept the 2014 referendum. As Ruth Davidson herself said, it is entirely right, honourable and indeed expected that the Scottish National party should continue to advocate for the very policy that it is in existence to try to deliver. There is nothing undemocratic or dishonourable about me and my colleagues advancing that cause.
None the less, even with accepting that the Brexiteers in the House have won—I can accept that—who, no matter what their Brexit position, can fail to have been moved by the scenes in the European Parliament yesterday, when parliamentarians from across the continent joined hands and sang that great Scots music hall poem, “Auld Lang Syne”. It is a song and a poem of friendship and of solidarity across the continent of Europe. What a contrast to the high hand of UK Unionism that we have seen just this week. This is what I mean when I say to colleagues on the Government Benches to please engage their brain.
The Scottish Government published a very serious document, seeking to alleviate the pressures on that part of the United Kingdom with regard to the movement of people. Scotland’s problem is people leaving, not people coming. It is inconceivable that the UK Government could even have read that proposal before they rejected it out of hand. I feel like they are doing my job for me, because in parts of my constituency—admittedly, it is a yes voting constituency, but it has always had the highest Tory vote in Glasgow—the people on whom they are relying, who are part of the coalition they need to keep the Union together, have not necessarily painted their faces blue and run into the forest declaring support for independence, but my goodness they want to have a conversation with my party in a way that they did not in the 2014 referendum. I ask colleagues on the Government Benches just to reflect on that, and on the fact that every single compromise that was offered by the Scottish Government and by the Scottish National party in this House over the past four years has been rejected out of hand—every single one of them.
I accept that the European Union—[Interruption.] The hon. Member for Wellingborough (Mr Bone), whom I am coming to, is yawning at this point. I accept that the European Union is the great devil for some people, but we just do not see it like that. The European Union as a project was created as Europe stood at the gates of hell and all of the history that went before it. Where there was Nazism and communism, it displaced those ideas and opened up economies and opened up markets. It allowed the clash of ideas in free and fair elections to take place all across the European continent. It still has a job to do in some parts of it.
The Secretary of State prayed in aid the Government’s trade strategy. The European Union, a place in the world where once there were warring navies in the waters and warring air forces in the sky, now has trading, shipping and exchanges of ideas and of commerce that I thought Conservatives would have welcomed, but perhaps I am at risk of re-running the old argument.
It is a pleasure, as ever, to follow my right hon. Friend the Member for Gloucester (Richard Graham), and I will be following up on some of his points. [Interruption.] Is he right honourable?
It is a pleasure to respond to this important, wide-ranging debate. The Opposition welcome the opportunity to discuss Britain’s place in the world at this critical juncture for the future of our country. Although we formally leave the EU at 11 o’clock tomorrow, there are still a great many unanswered questions about the UK’s future relationship with the EU and with countries all around the world.
In the Labour party, we of course want to see Britain as a globally influential country, trading with partners as equals and fulfilling our obligations to the poorest people in the world. We are optimistic and ambitious for our country, but we believe that we face a great many challenges, too, and it is not doing Britain down to be clear-eyed about that. We should all expect some frank and detailed answers from the Government.
Let me congratulate those Members who made their maiden speeches today. The hon. Member for Wolverhampton South West (Stuart Anderson) spoke extremely movingly about his journey to this place and the adversity that he has overcome. I am certain that his experiences will allow him to make an important contribution to our debates. The hon. Member for Aberdeen South (Stephen Flynn) spoke about the global nature of his city of Aberdeen, and made a powerful case for fairness in the face of injustice. The hon. Member for West Bromwich West (Shaun Bailey) spoke movingly about the sacrifices that his mum made, and I am sure she is very proud of him. We do not thank our mums enough. His point about spreading opportunity throughout the country was well made. My hon. Friend the Member for Streatham (Bell Ribeiro-Addy) spoke powerfully about the need to fight racism and injustice at home and abroad. She is exactly right that our country’s trade must be fair as well as free.
I wish to make a few points and pose some questions to the Government about exactly how prepared they are for the opportunities and challenges ahead. First, the Government must be clear about their priorities and capabilities as we seek to strike trade deals around the world. The Government have already said that they intend to carry out negotiations with the EU and US simultaneously, as well as moving ahead with the Australian and New Zealand deals. A number of important EU trade deals must be renegotiated, including those with Japan and Canada. Altogether, that will require significant resources and expertise to achieve.
The significant task facing the Government comes against the backdrop of a broader challenge: as the UK takes responsibility for trade policy for the first time in 40 years, we face a severe shortage of the skills and experience necessary to negotiate on the global stage. In a submission to the Foreign Affairs Committee, the Foreign Office has already acknowledged that it will be a challenge. It said:
“The UK has not had to operate on the frontline of trade policy and negotiations since it joined the EEC. The scale of the UK’s challenge in building trade capability from a very modest base is unparalleled amongst developed economies.”
When he responds to the debate, will the Minister tell us just how modest a base we are dealing with? What progress have the Department for International Trade and the Foreign Office made in training officials to an expert level in trade policy and negotiations? Put simply, just how many fully trained trade negotiators do we actually have?
On the subject of Government preparedness for trade negotiations, we are in the quite extraordinary situation of not knowing which Department will be responsible for the negotiations. The Government have said that the EU trade talks will be run from the Cabinet Office, but we still do not know whether the Department for International Trade will be merged into another Department or stay as a stand-alone entity. Can the Minister shed any light on that?
Whoever conducts the negotiations will have to think carefully about our priorities. That means engaging seriously with businesses and civil society about the potential benefits and costs of trade agreements. So far, we have had a lack of clarity from the Government about the trade-offs involved in a deal with, for example, the US. Instead of rushing into a deal for political purposes, the Government must engage fully and consider our national interests.
The UK is taking control of its trade policy at precisely the point that the global rules-based order is under great pressure and openness to trade is declining globally. We can no longer rely on the WTO to settle trade disputes, because of the US refusal to appoint new members to the appellate body. We must be a strong voice for free and fair trade and work with partners around the world to further those aims.
Is it the Labour party’s policy to abide by WTO rules, as they have been committed to by the UK? Is it the hon. Lady’s intention to build up the WTO, or does she envisage some other way of establishing free trade? I am delighted to hear, by implication, that she is open to free trade around the world.
I welcome that intervention. I will answer it very, very bluntly: we do want reform of the WTO rules.
I turn now to a couple of specific challenges that we face over the coming years. The Government’s announcement on Tuesday regarding the role that Huawei will be allowed to play in delivering our 5G network is an example of the global pressures that we face. The Government have given assurances about the security of our critical national infrastructure, and it is vital that these assurances are matched with action. The crucial question must be: why do we not have our own domestic tech and manufacturing capacity to deliver this technology and meet our own security needs? We must not allow ourselves to be held hostage in a geopolitical tug of war.
Global Britain must surely be underpinned by a strong and dynamic domestic economy, with good jobs and prosperity spread across the country. As we leave the EU, the Government must set out exactly how they will attract overseas investment into all the regions of the UK and help to grow our export base, particularly in manufacturing.
One of our most important industries is the British steel sector, which, as the Minister will know, faces acute global challenges. We are still waiting for a steel sector deal, and we need urgent action from the Government on the prolonged dumping of Chinese steel.
My hon. Friend is absolutely right. I have no doubt that as well as being a vocal and articulate champion for Peterborough, he will promote the service sector in the UK economy, as he has just done so effectively.
I will endeavour to reply to the specific points raised in the debate. The shadow Minister criticised the Government for our interaction with Parliament in future agreements. We are going to publish an outline for each negotiation that includes objectives and scoping assessments, as well as an explanatory memorandum. The shadow Secretary of State constantly talks about us having an ineffective trade remedy system. The simple repetition of something does not make it true. We are going to have a tough regime, learning from international best practice.
I promised to come back to the shadow Secretary of State on the situation in Western Sahara. The UK-Morocco agreement will apply in the same way as the EU-Morocco agreement, having been amended to comply with the European Court of Justice judgment on the issue; that is a critical point. He also raised the question of bribery and corruption in the provision of UK Export Finance. UK Export Finance always carries out anti-bribery due diligence before providing any support at all.
I promise that I did not put him up to it, but my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said that we needed greater resource and more trade commissioners. He made that point very well indeed, and I hope it is heard. It would be inappropriate for me to endorse it, but—what is the old saying?—“He might very well think that; I couldn’t possibly comment.”
May I impress upon the Minister that with so many trade negotiations going on simultaneously, it is very important that he has another Minister of State in his Department?
My hon. Friend will doubtless have been heard as well.
I pay tribute to those who made maiden speeches. The hon. Member for Aberdeen South (Stephen Flynn) gave an accomplished performance. I disagreed with almost every word of it, but he delivered it very effectively indeed. I thank him, from many of us on the Government Benches, for his kind words about his predecessor Ross Thomson.
My hon. Friend the Member for West Bromwich West (Shaun Bailey) spoke of his conversation with the noble Lady Boothroyd. We on the Treasury Bench understand the need to deliver, and having listened to him, I am certain that we will deliver for him and that he will not let Baroness Boothroyd down.
My hon. Friend the Member for Wolverhampton South West (Stuart Anderson) gave the most moving and deeply personal speech of the day. I salute him for his courage in speaking in that way in the Chamber. It was a genuine privilege to be on the Front Bench to hear his contribution.
The hon. Member for Streatham (Bell Ribeiro-Addy) gave an amusing and engaging speech, and spoke of her predecessor, Chuka Umunna. We all have things to learn from our predecessors. I learned much from Sir John Butterfill. I continue to learn much from the right hon. the Lord Eden of Winton, who first came to this House in 1954 and still provides me with excellent advice. The one piece of advice that the hon. Lady perhaps should not take from her predecessor is to join the Lib Dems—however tempting a prospect and however desperate they are. It would not be a career-enhancing move.
My hon. Friend the Member for Totnes (Anthony Mangnall) gave an absolute tour de force of a speech, in which he spoke a lot about fishing and ports, and then more about fish. I would say there is absolutely nothing fishy about my hon. Friend, which is not something that we could always say about his predecessor.
There are many who are worried about us leaving the European Union. They seem to think that we are going to cut all ties and walk away. The EU will remain our closest and largest market, and the Government are committed—as we committed with the EU in the political declaration—to signing a free trade agreement by the end of this year. But there are massive opportunities for the United Kingdom to exploit outside the European Union. According to the IMF, 90% of global GDP growth in the next five years will come from outside the EU. The trade deals we seek to negotiate, alongside those with the EU, represent a raft of exciting new trade agreements with other priority countries, our aim being to cover 80% of our trade with FTAs within three years. The United States, our largest single trading partner, is the obvious place to start—which is why we started there—but we also look to like-minded partners such as Australia, New Zealand and Japan. My right hon. Friend the Secretary of State has already made enormous strides in this regard, along with engaging positively on our potential accession to the CPTPP—heralded, again, by my hon. Friend the Member for Peterborough (Paul Bristow).
As I travel, I see enormous interest in what leaving the European Union means for other countries in their relationship with the United Kingdom. When I listened to the speech by the hon. Member for Brentford and Isleworth (Ruth Cadbury), I concluded that she must have been supping from the cup of pessimism. If what she was saying in the House today is what she is saying to people overseas, no wonder they think we are in a bad way. I find when I go to Chile, to Brazil, to Morocco, to Algeria—
(4 years, 10 months ago)
Commons ChamberIt shows the reverse. As the Government reach out to negotiate new comprehensive free trade agreements around the world, we will negotiate the best deals possible for every nation and every region of the United Kingdom. This Government will always have Scotland’s interests close to their heart.
Is my right hon. Friend as surprised as I am that so many Members of this House do not seem to have read and understood the political declaration on the future relationship? In particular, does he agree that we should expect that the various modes of supply in connection with services will go on around the world and that people will travel to deliver services?
My hon. Friend is right. It is sad that so many in this House, particularly on the Opposition side, including on the SNP Benches, appear stuck in June 2016. We on the Government Benches—[Interruption.] I say to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) that we are not remotely touchy. While she is stuck in the past, we are focused on the future.
(5 years, 10 months ago)
Commons ChamberThe problem with the withdrawal agreement is that it does not do what the Conservative party said we would do. In our manifesto, we said we would leave the customs union, but annex II, under the backstop provisions, would keep us in the customs union. We have had endless guarantees that the United Kingdom would not be divided, but the whole appendix divides Northern Ireland from the rest of Great Britain—something that Unionists are opposed to in principle, not just as the details of a treaty but because it seeks to divide our country.
The Conservatives and those who campaigned for Brexit always said that we must be free from the jurisdiction of the European Court of Justice. Why? Because it is a political court as well as a legal court, and because, Mr Speaker—I know you think this is very important—it could overrule this House and overrule our democracy. It could make laws for us that could not be stopped by Parliament—unless of course we withdrew altogether, which is what we are doing, with the purpose of taking away its authority to rule over us. For all this—for potentially being locked in a customs union, for dividing our nation up, and for allowing the European Court of Justice to continue—we are going to pay our European friends £39 billion of taxpayers’ money. For that we get nothing in return—no guarantee of any trade deal in future, but a vacuous political statement that could mean anything to anybody.
In the detail of this treaty and its failures, and its inability to deliver the Brexit that people voted for, perhaps we forget the economic benefits that come from making decisions for ourselves. We know from our own lives that the decisions we make for ourselves are likely to be better than those made for us by other people, but that is true as a nation as well, because any decision made in this House is accountable to the British people. The aim for us as politicians in all parties is to see the standard of living of the British people improve generation after generation, as my hon. Friend the Member for Bournemouth West (Conor Burns) said. That is something we seek to do. In the Conservative party, it was one of the founding principles that Disraeli followed—the “condition of the people” question.
The advantage of leaving the European Union is that we can once again make these decisions for ourselves. We can have a trade system that opens us up to the world, rather than being the fortress that the European Union has created to try to maintain its standard against the winds that blow from the rest of the world and have made the rest of the world grow so much faster than Europe has managed in recent times—a Europe that is mired in recession and economic failure.
I can reassure my hon. Friend that if he takes just a minute longer, he might persuade me to join him in the Lobby.
I am delighted to hear that. I think there will be a cascade of Members going into the Lobby to vote against this bad deal, because it denies us the opportunities that will make Brexit a success. It takes us further away from the ability to open up our economy to the benefits of free trade and the benefits that would allow the prices of food, clothing and footwear to be reduced, increasing the standard of living, most particularly of the least well-off in society. Instead, we are tied into a protectionist racket that keeps prices high and makes our economy less efficient. The rest of the world is overtaking us and the whole of Europe because it becomes less competitive as it seeks an outmoded, anti-competitive system, thinking that it can simply protect itself.
In this withdrawal agreement, there is no end in sight to the backstop—it could go on for generations. How long did the backstop turn out to be for Norway when it voted not to join, before it got a fully-fledged deal of its own? Over 20 years. “Temporary” in European terms is, for most of us, a generation. Of course, “temporary” in parliamentary terms is even longer, as we remember with the Parliament Act 1911 and the Liberal promise never delivered on to abolish the income tax—typical of the Liberals, you might say, Mr Speaker.
We risk denying ourselves these extraordinary opportunities and, in doing so, taking ourselves away from the electorate, for whom we promised to deliver on Brexit. Ultimately, whatever we think, surely we owe it to our voters to deliver. Otherwise, why should they ever trust us again?