Global Britain

Tobias Ellwood Excerpts

Monday 11th January 2021 Commons Chamber

[The Secretary of State for International Trade (Elizabeth Truss)]

I beg to move,

That this House has considered Global Britain.

I am delighted to open this debate on global Britain when, for the first time in 48 years, we now have full control of our trade policy. Back in 1846, Richard Cobden inspired people in Manchester with his belief that free trade would be

“the greatest revolution that ever happened in the world’s history…drawing men together, thrusting aside…antagonism…and uniting us in the bonds of eternal peace.”

That revolution continues today, as for the first time in nearly half a century we are a sovereign trading nation free to pursue British interests while promoting British values. Our newly independent trade policy will create jobs, grow our slice of the global pie, and unlock great swathes of the world to the best of Britain.

As we recover from covid-19, we need to think radically about how we generate economic growth and how we are going to use our new global platform in 2021 to promote free and fair trade—how we are going to take on those countries that try to cheat and to undermine free enterprise. In 2020, we negotiated trade agreements covering 63 nations and the European Union, and in 2021 we will use this year, including our presidency of the G7, to champion free and fair trade in an era rife with pernicious practices. We will promote modern rules that are relevant to people’s lives for digital and data trade. We will champion high environmental and animal welfare standards in a science-led approach, and we will push for modernisation of the World Trade Organisation and trade agreements to reflect our values of free enterprise and fair play. We will also build an advanced network of trade deals, from the Americas to the Indo-Pacific, with the UK at its heart as a global services and technology hub. We have already reached deals covering 63% of UK trade, well on our way to our manifesto target of 80% in three years. We want to hit that target and to deepen our existing relationships in areas such as services and technology.

Exports are equivalent to nearly a third of our national income. Trade equals jobs. A job means independence and security, the realisation of our dreams, funding public services and the future prospects of our country. The deals we have done with the EU and our partners across the world, from South Africa to South Korea, mean that our traders continue to enjoy preferential access to world markets.

We have secured arrangements with Turkey that mean that Ford in Dagenham can continue to export its engines tariff-free. We have secured access to the Canadian market for our beef producers, such as the Foyle Food Group in Northern Ireland. We have secured tariff-free access into Mexico for our car exporters such as Jaguar Land Rover, while Scotch whisky—one of our biggest exports—continues to enter markets such as Singapore tariff-free and stays recognised.

All in all, this adds up to £885 billion of trade that we have secured. In addition, we have been able to go further and faster in our deal with Japan, protecting the free flow of data, which benefits industries such as FinTech and computer gaming, regulatory dialogue on financial services and improved mobility provisions, including allowing spouses to travel with businesspeople. We have secured additional protections for our fantastic creative industries, from music to TV, and recognition for geographical indications across the UK, from Welsh lamb to Scotch beef, from Armagh Bramley apples to English sparkling wine, subject to Japanese domestic processes.

This platform allows us to step up this year to show our full potential as president of the G7 and as an independent trading nation. At the G7, we will work to reform the World Trade Organisation, make progress on data and digital trade and promote greener trade. Our new UK global tariff will see around 57% of our imports entering our market tariff-free—more than the 44% that we had under the EU.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

My right hon. Friend is making a powerful start to promoting global Britain. She speaks of the G7 and the opportunity for us to make our mark in the world. Does she believe that now is the right time to move from the G7 to the G10, and to include Korea, India, and Australia? That would represent over half the world’s GDP in order for us to start looking at the challenges that we face of updating the United Nations, NATO and the WTO, and to make sure that we are in a position to offer a counterweight to China.

[Elizabeth Truss]

My right hon. Friend makes a very powerful point. Allies such as Australia, South Korea and India will be key to forging that group of democratic nations who can stand up for democracy, human rights and fair and free trade, and, of course, we are very committed to working with them this year.

Our new global tariff, as I said, will eliminate tariffs on more than 57% of imports. In particular, it will eliminate tariffs on 100 environmental goods. In short, our new tariff regime is lower, simpler and greener.

Furthermore, we will be working with our friends and family across the world to drive forward free and fair trade, setting the global standard for trade in the 21st century. We are already in deep negotiations with the United States, Australia and New Zealand, and, this year, we will apply to one of the most dynamic trading areas on earth—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Joining is part of our plan to grow our economy by making it far easier for British goods to reach our friends in Asia and the Americas. This high standards agreement would align the UK with some of the world’s fastest growing economies in a free trade area covering nearly £9 trillion of GDP. We will also deepen our relationships with countries such as Canada, Mexico, South Korea and Israel. As well as this, we are working closely with India, the world’s largest democracy, on an enhanced trade partnership, reflecting our mutual interest in technology and innovation. We are also in talks with Brazil and our allies in the Gulf.

--- Later in debate ---

[Mr Tobias Ellwood (Bournemouth East) (Con)]

Looking back in our timeline of history, we see that it is punctuated by years where dramatic events and their consequences have altered the course of history. I believe that 2021 will be such a year, when we repair and rebuild our post-covid world. We will also better appreciate the frailty of our global order, with authoritarianism on the rise, the disunity of the west and a fast-changing relationship with an ever more assertive China. If 2020 was the year in which we calibrated our view on China and saw that it was not going to mature into the responsible global citizen we had hoped for, in 2021 we are likely to see Beijing unashamedly advance its own competing strategic agenda, exploiting battered economies across the globe and ensnaring ever more states into debt through its infrastructure and digital programmes. We face an inflection point this year. Either we support global democracy and repair it, or we allow the world to splinter into two dangerously competing spheres of influence.

Of course, 2021 brings a change in guard at the White House, with President-elect Biden promising to commit to rebuild alliances, to stand up against geopolitical threats and to return a sense of purpose to what the west believes in, stands for and is willing to defend. So this is a pivotal year and a time for Britain to step forward. Let us recall the last time there was a global reset. It involved the United States and Britain. It was Roosevelt and Churchill, through the Atlantic charter, who set the tone for the new international architecture, which now needs to be revisited.

The opportunity for Britain cannot be overstated, but our hard work is cut out in front of us. We talk up global Britain and the special relationship, but our international stock is not what it was. We have become too risk-averse and too distracted. Mention has been made of cuts to our soft power because of our aid budget. Indeed, the integrated review has yet to be completed. We need these answers in order to understand what our defence posture should be.

I encourage No. 10 to expand its bandwidth so that we can reassess and confirm our place in the world. The international to-do list is huge: reviving international organisations, for example, the United Nations and the World Trade Organisation; updating the Geneva conventions; securing a viable climate change agreement; and, of course, coming up with a unified strategy on China. None of those issues can be addressed without the appropriate alliance. I have said this before, but my single recommendation to the Government today is to advance and empower the G7 group of nations, widening it to include Australia, India and Korea, and advancing it from a talking shop to a new coalition with genuine clout. This is half the world’s GDP around one table. This formidable partnership, committed to collective security, democracy and the international rule of law, can be the vehicle that offers the leadership and designs the fresh international architecture our world now desperately requires. I encourage the Government to work with President-elect Biden and make this happen.