Oral Answers to Questions

Debate between Steve Baker and Liam Fox

Thursday 13th September 2018 Commons Chamber

[Dr Fox]

The CPTPP states currently account for more than 13% of global GDP—they comprise a combined GDP of around $11 trillion. Their economies are projected to grow to more than $14 trillion by 2023. It is self-evident that if Britain is able to take advantage of growing markets, a country that has a much more ambitious export strategy can benefit hugely. Malaysia will be able to take advantage of the improvement in our bilateral trade.

[Mr Steve Baker (Wycombe) (Con)]

12. To what extent is our accession reflected in the work programme of the Board of Trade? Will the board make it a priority to begin the formal process of our accession to CPTPP?

[Dr Fox]

The work of the Board of Trade is primarily about supporting exports and investment. The board itself does not have a role in trade policy, but the Department is fully co-ordinated with partners across the CPTPP and ready to discuss with them the great potential that exists for the United Kingdom. We should want to extend our trading horizons as we leave the European Union. We need to raise our ambitions, extend our timelines, and widen our geographical horizons if we are to maximise the benefits to the UK of the opportunities that Brexit will bring.

Oral Answers to Questions

Debate between Steve Baker and Liam Fox

Thursday 9th February 2017 Commons Chamber

[Dr Fox]

Let me join the hon. Lady in paying tribute to the fair trade campaign. It is very important in ensuring that farmers receive a fair price for their products, that agricultural workers receive better wages and that agricultural practices are made more sustainable. As Britain leaves the European Union, we will actually have greater freedom outside the common external tariff to be able to do some of the things she recommends.

[Mr Steve Baker (Wycombe) (Con)]

Whether we look at west African cocoa, east African coffee or Tunisian olives, time and again we find that the cause of unfair trade policy is the European Union. Does the Secretary of State agree with me that once we can set our own tariffs outside the common external tariff of the EU, we will be able to help those countries to trade their way out of poverty?

[Dr Fox]

This Government are committed to an open and liberal trading system. One of the best ways to help poor countries is to have even greater liberalisation than we have today. When we are outside the common external tariff of the European Union, Britain will have the opportunity to act unilaterally, which will give us new opportunities, as my hon. Friend rightly suggests.

Oral Answers to Questions

Debate between Steve Baker and Liam Fox

Thursday 15th December 2016 Commons Chamber

[Dr Fox]

I am tempted to ask the hon. Lady if she would like Santa to bring her a dictionary, because expectations and targets are not the same thing.

[Mr Steve Baker (Wycombe) (Con)]

Will my right hon. Friend seek to unblock the global trading system by adopting a new open anti-distortions agreement that can deliver free trade and self-government, fight crony capitalism at home and defend against predatory practice abroad, like the one proposed by the Legatum Institute special trade commission?

[Dr Fox]

I do not think I need to explain to my hon. Friend that I and my fellow Ministers have set out the case for free trade on a number of occasions. We are seeing a slowdown in the rate of global trade growth at present, which is a threat to the prosperity of people across the globe. We must have more open trade, fewer tariffs and fewer non-tariff barriers if we are to succeed in that task.

Oral Answers to Questions

Debate between Steve Baker and Liam Fox

Thursday 8th September 2016 Commons Chamber

[Dr Fox]

The hon. Lady is absolutely correct. It is a question not simply of having a single team, but of having the expertise to deal with specific sectors as well as in-country knowledge. We will certainly ensure that we build a core ability among those negotiators and bring in the sector experts who are so important in getting the sort of deals that she correctly outlines. That is especially important in areas such as the west country.

[Mr Steve Baker (Wycombe) (Con)]

A team of skilled, experienced, first-class international trade negotiators has been assembled at the Legatum Institute’s special trade commission. Will my right hon. Friend consult the commission and listen to its proposals for a much larger prosperity zone than the European Union?

[Dr Fox]

As I said, the expressions of interest have been wide: they have been from individuals, organisations and Governments. All those who are willing to put their talents at our disposal are extremely welcome. We will be looking at those individuals and the strengths they have in terms of sectoral and in-country knowledge, and we want to draw from the best that is on offer.

Budget Resolutions and Economic Situation

Debate between Steve Baker and Liam Fox

Thursday 17th March 2016 Commons Chamber

[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.

[Mr Steve Baker (Wycombe) (Con)]

Will my right hon. Friend give way?

[Dr Fox]

I will not.

I believe we will get investment into this country because we have a skilled workforce, a good tax structure, and fiscal and political stability. I also believe that money will go to where money can be made and moved. Our commercial law is one of the main reasons why money will continue to flood into this country. Those who invest in this country know that they can take their profits out, unlike other countries where they might consider investing.

Rather than providing the great opportunity, the EU provides two major risks to our economic stability, the first of which comes from the euro. The decision not to join the euro was one of the most beneficial in recent British politics. The euro is a vanity project. It is a political project dressed up as an economic one. The wrong countries were allowed to join, and when they joined, they were allowed to follow fiscal policies that caused them to diverge from the original premise. As a consequence, millions of young Europeans face structural, high and long-term unemployment, sacrificed on the altar of the single currency.

That will have a huge cost, and it has an economic cost to the UK because of the budgetary mechanism by which we support the EU. In other words, the more our economy continues to grow in relation to the EU, the higher our contributions will be, because they are a factor of our GDP. We in this country and our taxpayers will be penalised for our economic success and for remaining outside the project that we said from the very outset was doomed to failure. The one thing that we did not hear yesterday in the Budget was how we could otherwise spend the £350 million a week we currently send to Brussels.

The second instability that affects our economy is free movement. According to the Government’s figures, 1.162 million have settled from the European Union in the past decade. That puts pressure, including economic pressure, on the number of school places and the number of houses we require before we see any benefit to the UK population. It also puts pressure on health services. It might well be that those who fund the remain campaign, such as Morgan Stanley and the big oil companies, are not particularly worried about the lack of school places in this country—they will probably not use those places—but free movement has a huge impact in large parts of this country and applies financial pressure on the Government if they are to provide those things. That is even before we take into account the mass migration coming across Europe, which is leading to political and social instability, which will have an economic cost in the longer term.

I want briefly to deal with a completely separate issue that the Chancellor raised yesterday. In his Budget statement, he said:

“We have also agreed a new West of England mayoral authority”.—[Official Report, 17 March 2016; Vol. 607, c. 960.]

That is not true. We have not reached such an agreement. A draft agreement will be put to some of our councils in the coming weeks, but we have not agreed to the authority. Let me make it clear that the Members of Parliament—the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Weston-super-Mare (John Penrose), my hon. Friend the Member for North East Somerset (Mr Rees-Mogg), my hon. Friend the Member for Bath (Ben Howlett) and I—fundamentally and totally oppose the concept of a mayor being applied to the west of England.

We had the experience of Avon, when the outlying areas became nothing much more than an automated teller machine for Bristol’s spending plans. We have no wish to see it re-imposed on us by stealth. I am completely opposed to it and urge my colleagues in North Somerset to reject the proposal when it is put in front of them. If we want devolution, let us devolve down to existing democratic local government structures. We do not need another layer imposed on top of us—a metro mayor. That it works in the north of England is not a reason for it to be applied to the south of England. I have always believed it is a great Conservative policy to have whatever works in place, and not to apply a one-size-fits-all policy from Whitehall.

As I have said, the Budget comes against an extraordinarily good economic backdrop. Britain is outperforming almost all other EU countries, and almost all other developed countries. We have sound finance, free markets, low taxes, deregulation and political stability. The Government have presided over a veritable job creation miracle in this country while the European Union stagnates. We have a chance in the referendum on 23 June not only to reboot Britain, but to deliver much needed electric shock therapy to a sclerotic, failing and stagnating EU. I hope we take the economic opportunities available to us.