Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years ago)
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Dr Fox
No, I will not commit to that. I have set out the reasons why I believe the application of a common external tariff will be limiting on the UK’s ability to carry out an independent trade policy. What I would say is that we already have the Trade Remedies Authority up and running, and that is the best way to deal with any disputes over steel through WTO rules.[Official Report, 30 April 2019, Vol. 659, c. 2MC.]
Tom Brake (Carshalton and Wallington) (LD)
Does the Secretary of State accept that even outside the European Union, some other countries will seek to restrict their trade? For instance, has not the United States said about its negotiating objectives that it will seek to restrict the trading ability of any country that seeks to trade with China?
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years, 1 month ago)
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Dr Fox
I half-expected to see my right hon. Friend on the Front Bench with us this morning given the turn of events, but he is absolutely right that this is an important agreement. Over 20% of all the trade done under EU trade agreements is represented by Switzerland.
Mr Speaker, it is unlike me to disagree with you, but I do wonder whether on the morning after Roger Federer has defeated Kyle Edmund it is not a touch unpatriotic to be quite so pro-Swiss.
Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State may have heard an exchange a couple of days ago in which my right hon. Friend the leader of the Liberal Democrats highlighted the fact that, in the existing EU-Swiss trade deal, 19 technical standards have been brought in in common, whereas under the current UK-Swiss trade deal, only five technical standards have been brought in in common. What assessment has the Secretary of State made of the impact of that on UK business?
Trade Remedy Measures: UK Interests
Debate between Tom Brake and Liam Fox(5 years, 2 months ago)
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Tom Brake (Carshalton and Wallington) (LD)
When does the Secretary of State expect the Trade Remedies Authority to be established, and what additional costs will be incurred before it is?
EU Trade Agreements: Replication
Debate between Tom Brake and Liam Fox(5 years, 2 months ago)
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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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Dr Fox
There are issues with Turkey, which is in a customs union, although it is a partial customs union, so we can discuss our future relationship in areas such as agriculture and services. I refer in all humility to the shadow Secretary of State, the hon. Member for Brent North (Barry Gardiner), who put it best. He said of a customs union that
“as an end point it is deeply unattractive. It would preclude us from making our own independent trade agreements with our five largest export markets outside the EU”.
That was then; it is not the policy today.
Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State will recall that last week I asked him to provide this risk matrix to the House, but he would not. Instead, he asserted that if only I listened to his contribution in the International Trade Committee, all would be revealed. I went back and listened to it and nothing was revealed about the content of the matrix. Why would he not make this information, which has now been leaked to The Sun, available to Members of Parliament in the same way that he was happy to make it available to businesses? Is it because he does not believe that we have a role in the scrutiny of his activities? Or was it simply to save him the embarrassment of Members seeing what lack of progress there has been on the 40 trade deals he said would be signed by one minute after midnight on 30 March?
Dr Fox
It is tedious to have to give the same answer, but if the same question keeps getting asked, I will keep doing so. The way that we get continuity at one minute after midnight is to have an agreement with the European Union so that we have continuity of the agreements. A number of the agreements are very close to completion, but there is a level of confidentiality around that. At the same time, the Government clearly want to give business an indication of where we think a trade agreement may not be able to be rolled over on time. I will do that in the coming days, following an assessment of where we are at the present time, and I will make a written ministerial statement to the House as well.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years, 2 months ago)
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Dr Fox
Food and drink is one of this country’s most successful export sectors, but a lot of areas of it, particularly those such as spirits—I had discussions with the Scotch Whisky Association just a couple of nights ago—face very high tariffs in countries such as India and Brazil. They are enormous markets for us, but we face disproportionate tariffs, and that is one of the key areas where we seek unilateral reform in such countries so that they can show that they are genuinely committed to free trade.
Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State has shared with business a progress report on trade deals. I have been trying to obtain that information from him for months; is he willing to share that information with Members of the House as well as with business?
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years, 4 months ago)
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Mr Jim Cunningham (Coventry South) (Lab)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
We will replicate existing EU free trade agreements and their preferential effects with partner countries as far as possible, while making the technical changes needed to ensure that agreements can operate in a bilateral context. We will inform Parliament and the public when agreements have been signed.
Tom Brake
First, I wish you, Mr Speaker, other Members and staff a very merry Christmas.
I would like to do something that I do not often do: thank the Secretary of State, his Ministers and his staff for organising a very helpful series of all-party briefings to Members. They are very welcome and informative.
The Secretary of State will know that as a result of our EU membership, we have 35 free trade agreements in place, 48 partly in place, 22 pending, and 100 sectoral arrangements with the US that go beyond World Trade Organisation rules. I would like to hear the Secretary of State say precisely when he expects all those to be rolled over.
Dr Fox
I am grateful to the right hon. Gentleman for his comments. It has been extremely useful to have been able to raise, across the House, the understanding of complex trade issues that have not always been within the UK Government’s remit in recent years.
As the right hon. Gentleman rightly says, there are a number of agreements. My Department is responsible for some of them, some are the responsibility of the Department for International Development, and some are the responsibility of the Foreign and Commonwealth Office—they cut right across the whole Government. We are making very good progress across a whole range of them. Of course, we have now initialled the first of those major trade agreements, with Switzerland, which is responsible for almost a fifth of the total trade within those agreements. Others will follow. The discussions are very often commercially quite sensitive, so we will inform the House when we have signed agreements, and not before.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years, 5 months ago)
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Dr Fox
There are a number of events up and down the country. I will be hosting events in my own constituency, using the export hub. A number of Members will already have used the hub in their own constituencies. This is a great initiative, and it is a chance for MPs of all parties to show just how much support they give to small businesses. I know that a number of MPs hosted events up and down the country last year. I will be doing so, and I urge my hon. Friend to do so, although I am sure he requires no urging whatsoever. I hope that Members on both sides of the House will use this opportunity to celebrate the success of small business.
Tom Brake (Carshalton and Wallington) (LD)
Dr Fox
We have set out our export and investment strategy, and we are one of the few countries in the world that are seeing a rise in investment at a time when foreign direct investment is dropping by 41%. We currently have one of the biggest increases in exports, and our trade policy and new system of trade commissioners will ensure increased levels of contact with Governments in all countries, including the one that the right hon. Gentleman failed to tell us the name of.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(5 years, 7 months ago)
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Tom Brake (Carshalton and Wallington) (LD)
A report from the University of Sussex three days ago identified that a third of UK exporting firms have lost business due to Brexit. How will the export strategy help to secure existing jobs in export?
Dr Fox
As usual, the right hon. Gentleman seems to have overlooked the fact that UK exports rose to a record £429 billion in the 12 months ending in July 2018. We are witnessing a very strong UK export performance, and the Government aim to see that continue by achieving a comprehensive trade agreement with the EU, and taking advantage of market liberalisation and new free trade agreements elsewhere. The Government are committed to that process; I just wish that we had seen more commitment to it from the Opposition this week in Parliament.
Trade Policy
Debate between Tom Brake and Liam Fox(5 years, 9 months ago)
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Dr Fox
We have always made it clear, as I did at the beginning of my statement, that there is a distinction between the continuity agreements covered in the Trade Bill that we will debate tomorrow and new free trade agreements, which we promised we would set out the scrutiny procedure for, and that is what has happened today. I know that it sometimes comes as a shock to the House when a Government do exactly as they said they would do in exactly the timescale allocated, but I am afraid that that is exactly what has happened today.
Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State said in his statement:
“We will ensure that parliamentarians are given the opportunity to consider the level of ambition of the Government’s approach to negotiations and the potential implications of any agreements.”
Will he therefore confirm that the “potential implications” of, say, a US deal might include chlorinated chicken—toxic or otherwise—hormone-fed beef or GMO food?
Dr Fox
The whole point of the negotiation phase, which is one of five phases of a free trade agreement, is that the public set out what they believe the level of ambition should be. Those who want to set restrictions on what they think the Government’s mandate in the negotiation should be will be free to express themselves during that period. That is exactly why we are putting this forward, because the worst thing would be to go into a negotiation when the public felt that their views had not been taken into account in any way. As I have said, this is not just about the Government being philanthropic in the trade space; it is also about our self-interest, because it makes the job much easier for the Government and for Parliament if the public feel that they have genuinely been consulted. As my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) said, one of the problems with the TTIP process was that the public felt that they had been ignored and that the negotiation had happened from start to finish away from public scrutiny. We have to try to avoid that happening in future if we are to take advantage of the freedom that new free trade agreements will give to the country.
Draft EU-Canada Trade Agreement Order
Debate between Tom Brake and Liam Fox(5 years, 10 months ago)
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Dr Fox
I am grateful to my hon. Friend. Of course, our ability to take full advantage of what we have already agreed depends on our passing both the Trade Bill and the customs Bill in this House. If we are unable to do so, we will be unable to provide that continuity for businesses and workers in the United Kingdom, which would be hugely to their disadvantage. I hope that the Opposition will think again about their vote against the Trade Bill on Second Reading, and will give it the fair wind that it deserves during its subsequent stages.
It is important for the UK that CETA is ratified successfully by all EU member states, because ratification by all member states is required for the treaty to enter fully into force. This will give Canadian and EU businesses greater certainty that the agreement will continue into the future.
Areas that were not provisionally applied include a large part of the chapter on investment, including the new investment court system, about which there has been extensive discussion in Parliament and in wider civil society. The UK supports the principle of investment protection, and looks forward to engaging further with the Commission on the technical detail of the investment court system. We support the objectives of obtaining fair outcomes for claims, high ethical standards for arbitrators and increased transparency of tribunal hearings.
I also want to be clear that investment protection provisions protect investors from discriminatory or unfair treatment by a state. This includes protection of UK institutional investors—for example, pension funds—where we have a duty to ensure that individual investments are protected. We have over 90 such agreements in place with other countries. There has never been a successful investor-state dispute settlement claim brought against the United Kingdom, nor has the threat of potential claims affected any Government’s legislative programme.
Tom Brake (Carshalton and Wallington) (LD)
Will the Secretary of State confirm that any investment court system is in fact a pooling of sovereignty? He will be aware that Canada and the EU have agreed that they want to transform the investment court system into something more open, transparent and global. Will he confirm that the UK Government will also undertake to do that after Brexit?
Dr Fox
I have set out what I believe are the principles, but the mechanism may well be different. The Commission has not yet finished its work on the technical detail of the ICS. We have reservations about the ICS as a system, but, as I have set out, we believe that there needs to be protection for investors. What we cannot do as a country is say that our investors should be protected overseas when they make investments of UK money, but a reciprocal agreement should not be in place for others. We have to ensure that this is fair and equitable, and that is what we seek to do. I have to say to the right hon. Gentleman in all candour that I am not terribly attracted by the ICS, but we want to see the detail that the European Commission comes to and, when we leave the European Union, we will want to discuss with Canada what we think, on a bilateral basis, the best disputes resolution system might be.
It is also important to note that the customary international right to regulate has been re-emphasised in this agreement. Moreover, the agreement explicitly provides that member states should not reduce their labour or environmental standards to encourage trade and investment, ensuring that our high standards are not affected by this agreement. Let me say that nothing in CETA prevents the UK from regulating in the pursuit of legitimate public policy objectives.
Such objectives include the national health service. This Government have been absolutely clear that protecting the NHS is of the utmost importance for the UK. The delivery of public health services is safeguarded in the trade in services aspects of all EU free trade agreements, including CETA. Neither will anything in CETA prevent future Governments from taking back into public ownership—should they be crazy enough to do so—any services currently run by the private sector. The legal text makes this clear, if Labour Members would like to read it, although I have to say that the fear of nationalisation is the No. 1 issue that potential investors currently give for thinking twice about the UK as a foreign direct investment destination.
In fact, robust protections in CETA are covered in a number of related articles and reservations in the text. A key article is article 9.2, in chapter 9 on cross-border trade in services, which excludes services supplied in the exercise of governmental authority from measures affecting trade in services. In addition, in annex II on reservations applicable in the European Union, the UK has gone beyond the EU-wide reservations and has included additional national reservations for doctors, privately funded ambulances and residential health facilities, and the majority of privately funded social services. The UK Government will continue to ensure that decisions about public services are made by the United Kingdom, not by our trade partners. This is a fundamental principle of our current and future trade policy.
US Steel and Aluminium Tariffs
Debate between Tom Brake and Liam Fox(5 years, 10 months ago)
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Dr Fox
My hon. Friend makes a very interesting point. Not only do we send some very high-end steel to the United States, but some of it is steel that the United States itself does not manufacture. For end users in the United States, that will actually increase the price of a product they do not manufacture domestically, which cannot have anything other than adverse economic consequences. That is why it is very important, as I have said, that the voices of US industry and of those in Congress make their views very clear about the potential damage that this will pose, as Chairman Brady has said, to American families and jobs.
Tom Brake (Carshalton and Wallington) (LD)
The imposition of US tariffs is rash, probably illegal and certainly self-defeating. Is the Secretary of State still confident that the UK can get a better deal with a protectionist United States after the UK has left the EU than we could with the European Union? Does he agree with me that if the US continues to act like a rogue state, we may reach a point where it needs to be suspended from the G7?
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(6 years, 3 months ago)
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Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
As the Prime Minister set out in her Florence speech, the UK will seek a time-limited implementation period with the EU. We will prepare for our future independent trade policy by negotiating trade deals with third countries, which could come into force after the conclusion of the implementation period. To that end, we have already established a series of 14 working groups and high-level dialogues with key trade partners.
Tom Brake
Will the Secretary of State confirm that he is still on track to deliver 40 trade deals with non-EU countries after we leave the European Union in March 2019, as he said he would be? Will he explain to the House what demands there have been from those countries for additional visas for their citizens to come to the United Kingdom, and how that impacts on the tens of thousands figure?
Dr Fox
The Government are indeed committed to ensuring continuity of the 40 or so EU free trade agreements after we leave the European Union, and that is why we introduced the relevant legislation this week. I am, however, rather disappointed that the right hon. Gentleman and his party saw fit to vote against that legislation, and deny British business that confidence.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(6 years, 5 months ago)
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Tom Brake (Carshalton and Wallington) (LD)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Foreign and Commonwealth Office is responsible for policy on human rights across the whole of Government. The UK has a strong history of protecting human rights and promoting our values globally. We will continue to encourage all states to uphold international human rights obligations, including when we meet them both in the UK and on overseas visits.
Tom Brake
I thank the Secretary of State for that answer. I am going to put to the test the statement he made a few seconds ago—that the UK always promotes human rights in trade talks. Did he raise the case of Andy Tsege, and the prison visit that the UK Government have promised, with his Ethiopian counterparts? What progress is being made on releasing him?
Dr Fox
In my official meeting with the Ethiopian Prime Minister, we discussed the need for long-term political and economic stability, as well as the political space. We did, indeed, raise the consular case mentioned by the right hon. Gentleman in private and with our ambassador. I hope that we will see the results of that interaction soon.
Export Licensing: High Court Judgment
Debate between Tom Brake and Liam Fox(6 years, 9 months ago)
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Dr Fox
There are a number of different criteria, and they are assessed on a regular basis. There were 366 refusals or revocations in 2016. Eight different categories of refusals and revocations are set out. To be helpful, I will make a copy of those categories available in the Library, if it does not have one already.
Tom Brake (Carshalton and Wallington) (LD)
Will the Secretary of State confirm that the judgment does not affirm that there was no risk of IHL breaches in Yemen; that the judge acknowledged significant evidence that suggested that there was, or is, a risk of such breaches; and that the UK Government remain very heavily dependent on the Saudis’ guarantees that they are not targeting civilians?
Dr Fox
It is impossible to sell anything to anybody with no risk attached. That is why we have a clear risk test in the consolidated criteria. We are in close touch with the Saudis, to a degree that I have never known before with a country that is party to a military dispute, in seeing how they do their targeting and understanding their methods and information. We have been closely helping to instruct them in ways to minimise civilian casualties in future.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(7 years, 1 month ago)
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Tom Brake (Carshalton and Wallington) (LD)
May I echo the opening words of the Secretary of State and indeed the condolences that have been expressed for the police officer and the families of others affected by this tragedy?
The world-leading Institute of Cancer Research in the London borough of Sutton already does a lot of work with Israel. Can the Secretary of State confirm whether the post-grads who work at the institute, a third of whom come from the European Union, will be able to carry on working in those projects for years to come?
Dr Fox
The Government have already made it clear that the United Kingdom wishes to see an early resolution on the status of EU citizens. Those who collaborate with our research institutes do so on the basis of the quality of the research, and I am sure that that will continue.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(7 years, 7 months ago)
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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.
Tom Brake (Carshalton and Wallington) (LD)
Can the Secretary of State confirm whether he is likely to hire any consultants to manage these trade negotiations? According to a headhunter I was speaking to a couple of weeks ago—[Laughter.] Not for my purposes. According to a headhunter I was talking to a couple of weeks ago, the head of a trade negotiating team, if hired as a consultant, would cost around £750,000 a year.
Dr Fox
It is nice to see that the Lib Dems are looking forward to repeating their election success at the next election. I always think it is nice for politicians to cover all their options. We do not intend to create a standing army of bureaucrats that would be expensive to the taxpayer. We are looking to see how most effectively we can create the skills and the cadre of negotiators we will require.
Oral Answers to Questions
Debate between Tom Brake and Liam Fox(13 years, 1 month ago)
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Tom Brake (Carshalton and Wallington) (LD)
1. What recent assessment he has made of the security situation in Afghanistan; and if he will make a statement.
The Secretary of State for Defence (Dr Liam Fox)
The whole House will want to join me in paying tribute to Lance Corporal Stephen McKee, from 1st Battalion The Royal Irish Regiment, who was killed in Afghanistan on 9 March. The House will want to join me in paying tribute also to the station commander of RAF Northolt, Group Captain Tom Barrett, who was killed in a road traffic accident on the evening of Thursday 10 March. Many members of the current and former Governments will have known him well. Both men served their country with honour and distinction, and our thoughts and prayers are with their friends, colleagues and families at this very difficult time.
The security situation in Afghanistan varies significantly across the country. About 64% of violent incidents take place in just three of Afghanistan’s 34 provinces, Helmand, Kandahar and Kunar, which have about 11% of the total population. The insurgency’s heartland remains in the south. The increases in the international security assistance force and Afghan national security force have helped us to make real progress over the winter in all aspects of our counter-insurgency operations: security, governance, and development.
Tom Brake
I join the Secretary of State in his tributes to our fallen soldiers.
The security situation in Afghanistan may have a permanent impact on service personnel after the conflict. Taking into account valuable lessons learned from previous conflicts, such as the Falklands, whereby more servicemen took their own lives afterwards than died during fighting, what measures are in place to support servicemen and women who experience mental health or social problems either during or after the conflict?
Dr Fox
My hon. Friend makes a very valuable point. It is all too easy to see the physical scars of war; it is much more difficult to see the mental scars of war. It is because of the importance given to the matter by the Government that, cross-departmentally, we are making more funding available to mental health projects for our armed forces. We are looking at the scientific evidence available to see whether we can better target that help, but the measures that we are putting in place include the new phone line for service personnel.