Women in the Commonwealth: Trade and Investment

Stewart Hosie Excerpts
Wednesday 11th March 2020

(4 years, 2 months ago)

Westminster Hall
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Theo Clarke Portrait Theo Clarke
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Absolutely.

Stewart Hosie Portrait Stewart Hosie (in the Chair)
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I call Laura Harris.

Laura Farris Portrait Laura Farris
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On that point, although there have been really significant improvements in the employment of women, particularly in the developing countries of the Commonwealth, the fact remains that they lag behind significantly—as my hon. Friend’s statistics demonstrate—primarily because of poor literacy. In sub-Saharan Africa, 70% of women are illiterate whether they live in urban or rural settings, and that is usually linked to the size of their families and burdens at home. Does my hon. Friend agree about the imperative to improve girls’ education in developing countries as the critical determinant of whether they will be able to participate in trade in an equal way?

Stewart Hosie Portrait Stewart Hosie (in the Chair)
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I apologise for getting your surname wrong, Ms Farris—it will not happen again. That was a very long intervention; I am sure that they will get slightly shorter. I call Theo Clarke.

Theo Clarke Portrait Theo Clarke
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I absolutely agree with my hon. Friend. I was very pleased that our Prime Minister made a commitment to support 12 years of quality education for girls around the world. Later in my speech, I will tackle some of the barriers that women face in developing countries.

Empowering women in the economy and closing gender gaps in the world of work is key to achieving the 2030 agenda for sustainable development and the sustainable development goals, particularly goal 5 on gender equality. The Commonwealth is an especially unique forum that the UK can leverage to further promote gender equality and bolster women’s economic empowerment in developing countries. With 54 countries and more than 2.4 billion people, the Commonwealth offers a more unified and structured network, sharing historical ties, values and language, and allows the UK to amplify its commitment to gender equality.

Commonwealth countries are more likely to trade and invest with each other than with the rest of the world. Collectively, Commonwealth members are less protectionist than other countries. Reduced trade costs and similarities in business, regulatory and administrative systems underpin the “Commonwealth advantage”. According to the International Monetary Fund’s forecasts, nine out of the top 25 fastest-growing economies are members of the Commonwealth, which demonstrates the trade potential of the group.

The UK chocolate industry is worth at least £4 billion each year, yet most cocoa farmers live in abject poverty. A typical farmer, such as those in Ghana and the Ivory Coast, which account for 60% of the world’s cocoa production, earns less than 75p a day. That is well below the World Bank’s extreme poverty line of approximately £1.40 per day. When visiting farmers in west Africa, I was struck to learn that only 25% of women cocoa farmers own their land, and and that on average they work about a third more than men when childcare and domestic chores are taken into account.

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Stewart Hosie Portrait Stewart Hosie (in the Chair)
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Order. Before the hon. Lady makes her point, it has been a very good debate and I am sure after this wonderful point of order the Minister will return to his normal good-hearted self and come swiftly to a close.

Thangam Debbonaire Portrait Thangam Debbonaire
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I am not going to make a point of order, Mr Hosie. I am going to ask the Minister if he would reconsider that uncharacteristically ungenerous characterisation of what I said. I absolutely said that we welcome trade agreements. I said that I welcome trade agreements. I also quoted from NGOs in the developing world—not my view but the views of those from the developing world themselves, from Commonwealth organisations, whom I have met in my work—who have themselves talked about some of the problems that emerge from some trade agreements. I was very careful in my choice of words and I was most definitely not opposing all trade agreements—very far from it. I do hope he will reconsider.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 5th March 2020

(4 years, 2 months ago)

Commons Chamber
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Greg Hands Portrait The Minister of State, Department for International Trade (Greg Hands)
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I thank my hon. Friend for that question. When I was previously in this job, I visited the sector in Cambridgeshire. We know that the life sciences industry contributes £74 billion a year to the economy, creating 250,000 jobs and developing life-saving medicines for UK patients. Annually, the east of England exports £711 million of medical and pharmaceutical products to the US. Estimates show that a UK-US FTA could boost the whole region’s economy by £345 million in the long run.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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Will the Secretary of State update the House on the progress being made to ensure that the legal services trade between the UK and the European Union can be maintained after the end of this year?

Greg Hands Portrait Greg Hands
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That is properly a question for a different Question Time, because it is Taskforce Europe that is responsible for our future trading relations with the European Union. What I can say to the hon. Member is that the mutual recognition of professional qualifications is one of the key aspects we are looking at in free trade agreements with counterparties across the world.

Stewart Hosie Portrait Stewart Hosie
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I am glad that that is being looked at because, right now, if an agreement is not reached between the UK and the European Union, UK legal practitioners—lawyers—will no longer be protected by legal or professional privilege inside the European Union. May we have a specific focus on that to ensure that jeopardy is removed, but also, more importantly, to ensure that the associated disincentive to trade in legal services is removed?

Greg Hands Portrait Greg Hands
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Again, this is really a matter for Taskforce Europe, but I will pass on the hon. Member’s question to it to give him a more detailed response. What I can say is that the DIT team promote trade in legal services, particularly the mutual recognition of qualifications, in all our talks. I have done that personally in this role, and the Secretary of State is committed to doing so. We make sure that this is promoted, particularly regulator to regulator, including for legal services, accountancy, architecture and all our professional services.

UK-US Trade Deal

Stewart Hosie Excerpts
Monday 2nd March 2020

(4 years, 2 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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My right hon. Friend is absolutely right. May I thank him for the work that he put in as Trade Secretary, which has got us to this point where we are able to launch these negotiating objectives, and for doing all the fantastic work that he did with our colleagues in the United States? I know the Labour party does not seem to think that tariffs are important, but that is not so for a pottery manufacturer in Stoke-on-Trent who is facing 28% tariffs on their dinnerware going into the US. If we get those tariffs removed, that will mean that that factory is able to employ more people, grow its business and invest. Yet again, that is the Labour party refusing to understand how enterprise works and where wealth comes from in this country.

My right hon. Friend is right about the steel industry. It is currently facing £300 million-worth of tariffs a year. If we can get those tariffs removed, that provides a brilliant opportunity for our steel industry to sell more products in the United States.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I thank the Minister for her statement and early sight of it. It is true that the analysis published today, which forms part of these documents, does provide some very useful information. It tells us that the maximum tariff reduction will be less than half a billion pounds, that the maximum increase in UK GDP would be 0.16%, that the maximum increase in gross value added for Scotland would be less than half a per cent—0.4%—and that, in the long-run, financial services GVA might actually go down. Yet in order to achieve these decidedly underwhelming targets, the UK will have to leave the European Union, surrender around 5% of GDP growth, and risk around 20% of UK global trade.

More worryingly, a pattern is emerging in the UK’s approach to trade negotiations. In the document on the future relationship with the EU, the UK seeks to exclude subsidies, competition policy, and environmental, tax and labour provisions from any dispute resolution mechanism. In today’s UK-US public negotiating objectives —only four pages of the total published today—there is limited reference to competition, labour and environment provision, nothing on subsidy or tax, and a single vague bullet point on dispute resolution that would enforce the level playing field and avoid the race to the bottom.

Apart from the environment, the Secretary of State mentioned none of those things in her statement. Let me ask her this: why are the UK Government giving the impression of abandoning level playing field provisions across so many aspects of modern trade deals? Why are they giving the impression that they are in favour of a wild west free-for-all in trade rather than a comprehensive rules-based system with a comprehensive dispute resolution mechanism? Why are they prepared to sacrifice so much in terms of global UK trade and GDP growth to secure what, by their own admission, are very, very modest gains indeed?

Elizabeth Truss Portrait Elizabeth Truss
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I have news for the hon. Gentleman: we have already left the European Union, although the news might not have reached him.

Scotland is one of the largest potential beneficiaries of a US-UK free trade agreement. The hon. Gentleman sniffs at the half a billion pound extra value added to the Scottish economy that is analysed, but a number of Scottish businesses are supportive, including the Scottish chamber of commerce. I suggest that he listens, as we have been doing, to businesses in Scotland about how they can see their businesses grow.

The hon. Gentleman specifically mentioned standards. In free trade agreements, including in the comprehensive and economic trade agreement, or CETA, there are often clauses saying that the parties will not deliberately lower standards for competitive advantage. That is what we are referring to in our US negotiating objectives and it is a perfectly proper and regular part of free trade agreements that we are happy to sign up to.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 23rd January 2020

(4 years, 3 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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Lowering barriers will mean lower costs for businesses and more choice for consumers. In Wolverhampton and the west midlands overall, we send one in five of all exports to the United States. Getting a trade deal with the US would mean a removal of tariffs on products such as cars, textiles and steel, so there are huge opportunities there for those businesses to grow.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I am glad that the Secretary of State expects us to cut lots of free trade deals, but they do not happen by chance; they happen by detailed analysis and tough negotiations. How does she believe we can succeed in those negotiations when the number of expert trade negotiators she has is a fraction of the 600 the EU has? More importantly, is she not setting herself up for a fall by rather foolishly, in my opinion, embarking on parallel trade negotiations with such limited resources with both the European Union and the USA?

Elizabeth Truss Portrait Elizabeth Truss
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I am afraid I am not surprised to hear the SNP talking our country down. The fact is that we have scaled up our trade negotiation expertise. We now have approximately the same number as the US Trade Representative, which is one of the leading trade negotiators in the world. Our trade negotiators have already secured £110 billion of trade continuity deals, even though people such as the hon. Gentleman said it could not be done. Those negotiators have a wide experience in trade law from the private sector, and we have also recruited people from other Commonwealth nations with experience from the WTO. We have an excellent team at the Department for International Trade, and we have the staff in place ready to conduct the negotiations with the US, Australia, New Zealand and Japan.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 17th October 2019

(4 years, 6 months ago)

Commons Chamber
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Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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We all wish to see reform of the WTO and a functioning dispute resolution system, but given that the UK is responsible for 3.4% of global trade compared with the EU being responsible for 35%—a full third—of global trade, is it not the case that the UK’s influence inside the WTO is now massively diminished?

Elizabeth Truss Portrait Elizabeth Truss
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One of the groups we are working very closely with is our Commonwealth partners. We are developing a Commonwealth caucus at the WTO that represents a third of the world’s population and has a very strong stake in making sure that the WTO works for small states, in particular. Of course we will work with the EU and of course we will work with the US when it is in our mutual interests, but the fact is that the EU has pursued protectionist policies, and that has not necessarily helped some of the least-developed nations. I believe that the UK will have a unique voice, particularly in favour of free trade.

No-deal Brexit: Schedule of Tariffs

Stewart Hosie Excerpts
Monday 7th October 2019

(4 years, 7 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

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Conor Burns Portrait Conor Burns
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This Government take great pride in the number of those agreements that we have transitioned into continuity agreements. There are many more on the cusp of being agreed. We are dealing with some technical issues and there is ongoing engagement all the time. I was recently in Algeria and Morocco, where we are making substantial progress, and I returned yesterday evening from Vietnam—you might say that I am in another time zone, Mr Speaker, while the hon. Member for Brent North (Barry Gardiner) is on another planet. Even in Vietnam there is significant interest in coming to a continuity agreement with the UK. We will continue to work to deliver those. Of course, as my right hon. Friend and I will both agree, it would be much better if we did not have to go to continuity agreements but instead got the best continuity agreement, which would be a new agreement between ourselves and the European Union, which I hope the Opposition will finally support.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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When the temporary tariff regime was announced this March, the UK Government argued that if they maintained the current external tariff regime, there would be new tariffs on EU imports. They said that if zero tariffs were maintained with the EU, even though that would minimise trade disruption, that would be required to be extended to the rest of the world due to WTO rules. The Government also said that they would keep 43 of the existing trade remedy measures that were in place, but much has changed since then. There has been another round of US tariffs and there is the potential for another round of EU tariffs in response to the US action, so let me ask the Minister this.

Given new tariffs from the US and the EU, has the schedule in the temporary tariff regime changed and, if so, by how much? Has the list of 43 trade remedies to be kept and 66 to be abandoned changed and, if so, by how many? Most importantly, with barely three weeks to go to a potential no-deal Brexit—although the Benn Act should protect us from that—I say to the Minister that it is not irresponsible to publish the new schedule. It is absolutely necessary to publish it, not least to allow businesses—importing and exporting businesses alike—at least a little certainty and to ensure that they can continue to operate within the law. The Minister is having a great time teasing us about when the schedule will be published, so may I ask him to publish it today so that businesses understand precisely what they are dealing with?

Arms Export Licences (Saudi Arabia)

Stewart Hosie Excerpts
Thursday 26th September 2019

(4 years, 7 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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I can assure my hon. Friend that I have put in place an interim procedure to ensure that there is sign-off from senior officials in all three relevant Departments and ministerial sign-off on any proposed export licences to the relevant parties. I also assure him that we are conducting an investigation, which will be led by a director general from the Department for Work and Pensions, into exactly what went wrong in this case to ensure that it cannot happen again.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I recognise and welcome the Secretary of State’s apology and acceptance of responsibility. It is true that the breaches in export licensing that are the subject of this urgent question may well be described, as she said, as “procedural”, but this case highlights some profound problems with her Department. We are talking about spare parts for armoured vehicles and for military radio used by Saudi land forces, which form half the Saudi military and were operating on the ground in Yemen when the licences were issued, forming part of the invasion by land into Yemen by a country—Saudi Arabia—found to be in breach of international humanitarian law, which is precisely what is supposed to be checked before licences are granted.

Can the Secretary of State tell us whether the provision of incomplete information shared across the Government was simple incompetence? Were her Department and others not aware of their responsibilities in this regard? She will have to be convincing, because I am not convinced that the actions being taken so far remove the perception that this Government and this Department are prepared to ignore the law—in this case, from the Court of Appeal—when it suits them to do so.

Elizabeth Truss Portrait Elizabeth Truss
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The Court of Appeal was very clear in its judgment that there is a rigorous and robust process in place across the Government. The question is about the specific sharing of information between Departments. I have absolute confidence that the unit, when it receives information, implements that in doing its work. The issue is the sharing of information. That is why we have conducted an internal review of the licences already issued as well as asking another Department to look across the board at where information was shared. This is not an issue about the process, which was deemed by the Court of Appeal to be rigorous and robust; it is about how that process has been followed. A lot of people are saying, “Why can’t we do this quicker?” It is very important that we get this right. In the interim period, I have put in place a procedure that makes sure that there is senior sign-off from all three Departments—the Foreign Office, the Ministry of Defence and the DIT—as well as ministerial sign-off. There was not ministerial sign-off on these licences. This was done under the previous procedure. There will now be ministerial sign-off on all the relevant licences.

NHS and Future Trade Deals

Stewart Hosie Excerpts
Monday 22nd July 2019

(4 years, 9 months ago)

Westminster Hall
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Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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It is a pleasure to serve under your chairmanship, Sir Roger. I thank the hon. Member for Hartlepool (Mike Hill) for introducing the debate and speaking so well on behalf of the petitioners.

Let me start with a reference to Brexit, because I suspect that many of the concerns about trade deals, which may bring the NHS into play, will be driven by the loss of trade associated with Brexit. Let us remind ourselves of what the UK Government’s long-term economic analysis said. Under all the versions of Brexit that they analysed—the White Paper, the European economic area-type agreement, an average free trade agreement, and no deal—trade and GDP would be lower at the end of the forecast period than they otherwise would have been. The analysis went on to say that, under all those options—with the exception of the EEA, which does not apply—the situation would be worse if we had net zero migration from EEA workers. So before I come on to talk about trade, it is worth pointing out that we face a challenge relating to the retention and recruitment of staff if whatever Brexit we end up with drives a hideous and illogical end to the free movement of people.

The National Institute of Economic and Social Research’s analysis suggests that, depending on the type of Brexit, we could see a 22% to 30% fall in total trade. It went on to suggest that a free trade agreement with Brazil, Russia, India, China and all the major English-speaking economies, including the USA, would result in an approximately 6% uplift. I suspect that, if Brexit happens, Government thinking will end up being that, in order to make up some of the losses, we will have to have a quick win—a quick gain—probably with the USA. It is hard to see, for a variety of reasons, why the NHS would not be included in that.

Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
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Does the hon. Gentleman agree that it is very concerning that, when the President was here on his state visit, he seemed to say that that was the No. 1 priority, despite the fact that our Prime Minister tried to deny that on the day?

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Stewart Hosie Portrait Stewart Hosie
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It was concerning that his initial response was, “Yeah, sure, the NHS—everything is on the table.” It was clawed back slightly the next day, but one wonders whether he understood what he said on the first day, or even what he said on the second day. The concerns out there among the public are very real, for the reasons I have set out. If we need to make up trade gains from the losses that almost every single forecast suggests we will have, it is hard to see how the NHS, or broader aspects of health, might not be included in some kind of trade deal.

The starting point for me is that we should not be contemplating exposing the NHS through trade deals, not least because the EU has made more trade deals with third countries than any other bloc, which we benefit from, and it has done so while protecting public services. It makes little or no sense to throw that away. The EU has protected public services such as the NHS in all trade negotiations. It has shown itself to be principled in its approach. Not only would we potentially lose access to those markets, but we do not have the means to replicate the agreements we already benefit from. The hon. Member for South Thanet (Craig Mackinlay) mentioned the Swiss deal, but it was of course not rolled over in its entirety. Indeed, a number of the reports that came out at the time said:

“The deal risks new limits on the export of agricultural products from the UK to Switzerland—for example, a possible ban on organic products…Switzerland may no longer recognise UK businesses as ‘authorised economic operators’, eligible for lighter controls at the Swiss border.”

At the same time, a second roll-over deal was announced—the Norwegian one—but while it included zero duty for industrial goods, it did not include services. It was described in the Norwegian press as a “crisis agreement”, and it did not cover technical regulations and rules for trade in food, animals or plants.

I mention those two because they highlight the UK’s weakness in the Brexit process. If we are not able to roll over in full with friendly countries with which we have long trading relationships, how on earth are the public expected to believe that we will be able to cut a deal with the USA to make up some of the losses from Brexit without having to sacrifice the NHS? On my last visit to the United States, I was told time after time that the UK will be required to put everything on the table, and the US will be required to put nothing on the table.

Catherine West Portrait Catherine West
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The hon. Gentleman is being very generous in giving way. Does he agree that one sector for which there will be implications is research and innovation? Is he as concerned as me about the prospect that a lot of our universities and the collaborations they do, which are in effect services, will be at risk? It will take an awful long time and an awful lot of effort to replicate them in a US trade deal.

Stewart Hosie Portrait Stewart Hosie
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I am concerned about that. I am concerned that, even now, we are seeing relationships, partnerships and academic work being restricted, and doubt being cast on their continuation, for those very reasons. It would be tragic if health improvement work was not done or was lost from the excellent universities that undertake those studies.

The weaknesses that I speak about are where many of the concerns about the NHS lie, particularly in relation to a US-UK deal. They drive the impression, rightly or wrongly, that the UK will be involved in some kind of investor-state dispute settlement mechanism, and that Governments or other public bodies could be sued simply for protecting our health service.

I will give three examples to demonstrate why there are real concerns and why the public are extremely anxious. The first took place between 1995 and 1997. The Canadian Government banned the export of polychlorinated biphenyl waste to comply with obligations under the Basel convention, to which the US was not a party. The waste treatment company SD Myers then sued the Canadian Government for £20 million in net damages under chapter 11 of the North American free trade agreement—an ISDS-type arbitration scheme. That claim was upheld under NAFTA, even though Canada had taken action to remain in compliance with an international treaty.

In the second case, in 1997, the Canadian Parliament again banned the import and transport of the petrol additive methylcyclopentadienyl manganese tricarbonyl over concerns that it caused a significant public health risk. Ethyl Corporation, the manufacturer of the additive, sued the Canadian Government, again under NAFTA chapter 11, for $251 million to cover losses resulting from what it called the “expropriation” of its plant and to its “good reputation”. That action was upheld by the Canadian dispute settlement panel. The Canadian Government repealed the ban and paid Ethyl Corporation $50 million in compensation.

Cases that involve toxic polychlorinated biphenyl waste and a petrol additive that was deemed to have a public health impact were overturned. It is quite wrong for any corporation to be able to sue a Government simply for taking steps to protect the wellbeing of their citizens. I use those two examples on purpose; they may not have a direct clinical NHS procurement characteristic, but no one could doubt they were public health measures that were overturned as a result of a trade deal that allowed private investors to do certain things.

My final example is more local. Some time ago in Scotland, we had an increase in the prevalence of hospital-acquired infection. One of the actions the Scottish Government took was to remove private cleaners and return cleaning to NHS staff. Lo and behold, the incidence of hospital-acquired infection reduced dramatically. It does not take an enormous leap of the imagination for non-core work, such as cleaning, to be put out for competition. Had that been an international company, utilising an ISDS-type arbitration scheme, one can easily see how it may have sued the Scottish Government to win back that work and continue to make profit, irrespective of the health consequences.

I have heard what the petitioners have said, and I welcome the commitments made so far that the NHS will not be included in any future trade deal. However, it would be foolish not to recognise the concerns the public have or that fraying around the edges, when it comes to what appears to be non-core, non-clinical work, can still lead to the kind of problems the petitioners are concerned about. I await with interest what the Minister says. I congratulate those who signed the petition and brought this important matter before us today.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 11th July 2019

(4 years, 10 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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For Britain to be able to sell abroad, we need to be able to do two things simultaneously: understand what Britain has to sell abroad and understand the markets we are selling into. That is why my Department is bringing in a major change to rotate our staff from our international posts through our sectors in the UK, so that they can understand what the UK can do in terms of services and goods in a real-time way as well as understand the markets. It is not just about how many people we have in the market, but about how well they understand what is happening in the UK. I hope that this innovation will lead to an increased capability for the UK and improve our competitiveness vis-à-vis other exporting countries.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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We recognise the need to reform the WTO, not least in the area of speeding up dispute resolution. We also recognise the benefits of regional trade agreements and bilateral agreements that can be WTO-compliant. However, it remains essential that we have a fully functioning WTO implementing globally agreed trade rules, so may I ask the Secretary of State to take on board and to agree with me that in these negotiations on reform he should reject some of the approach of the United States, which is to suggest that it will walk away from the WTO if it does not get its own way?

Liam Fox Portrait Dr Fox
- Hansard - - - Excerpts

I absolutely agree that we need an international rules-based system based on the WTO. It does require reform, but the fact that it needs reform is not an excuse to leave—it is an excuse to be more engaged in those reforms. It is worth pointing out that the United States has done very well, winning around 90% of the cases it has taken to dispute at the WTO. I hope that we all understand that the alternative to a rules-based system is a deals-based system, and the biggest casualties of that will be developing countries.

Export Licences: High Court Judgment

Stewart Hosie Excerpts
Thursday 20th June 2019

(4 years, 10 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
- Hansard - - - Excerpts

The Foreign Secretary and I have answered numerous questions on this issue in the House of Commons, and we have certainly cited some of those incidents and been questioned on specific incidents in the House. On my right hon. Friend’s key point, I do not think the proximity or otherwise to 9/11 is the key determinant here; rather, it is whether Saudi Arabia acts as an important source of intelligence for this country in our shared combat against a global terrorism. It is a valuable partner in that particular battle and has helped to keep numerous UK citizens safe.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I thank the Secretary of State for his statement and for giving me advance sight of it. I recognise that, under criterion 2c of the consolidated criteria, the Government will not grant a licence if there is a clear risk that the items might be used in the commission of a serious violation of international humanitarian law. I also recognise that the judgment is not about whether the Government made the right or wrong decisions, but about whether the decision making was rational. I also recognise the words from the 2017 ruling that there was

“anxious scrutiny—indeed…what seems like anguished scrutiny at some stages”

over the decision making process. However, that anxiety and anguish are as nothing compared to the civilians who have been on the receiving end of Saudi armaments since the war in Yemen began.

I also note that since that war started, the UK has licensed some £4.7 billion-worth of arms sales to Saudi Arabia in a conflict whose death toll is now approaching 100,000 people. So may I ask the Secretary of State two questions? The ruling means that the UK must retake its decision on the correct legal basis, taking into account past possible human rights abuses from Saudi Arabia. Will this Government now take seriously the deep concern, anguish and anxiety that there are substantial human rights abuses emanating from Saudi Arabia? Secondly, I was disappointed to hear him say that it was the Government’s intention to appeal. I understand the legal costs so far are somewhere over £100,000. May I ask him to respect the ruling today, not to proceed with an appeal, and not to throw good money after bad?

Liam Fox Portrait Dr Fox
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The hon. Gentleman asks an important key question on the specifics. Of course, criterion 2c is a predictive element. We have to look at what we think the future risk is in granting licences, and we take into account all the information that we have had, not least since the last licensing period decision that we have looked at. That takes into account all the sources I have already given him. He asks about the wider issues. I want to make it clear to the House that in reaching the decisions, I have to rely on advice from those with specialist diplomatic and military expertise, but the law does not permit me, in taking these decisions on licensing exports of weapons, to take into account the UK’s strategic economic, social, commercial and industrial interests. These are very important issues, but there are areas of wider policy and they are not areas that I am allowed to take into account when I take these particular decisions.