Trade Bill

Vicky Ford Excerpts

Tuesday 9th January 2018 Commons Chamber

[Barry Gardiner]

I am very happy to respond to my hon. Friend, and I understand the distinctions she is making, but she will also understand what I have already set out about the force of the treaties, which is simply a matter of law. We will not be bound by the treaties and therefore we would not be able to continue as a member of the EU, and therefore as a member of the EU customs union, although, as I have pointed out, we could then come back and form a customs union with the European Union.

My hon. Friend asked specifically about Turkey’s relationship with the European Union. Turkey has a customs union agreement with the EU customs union, but it is not a member of the EU customs union—she should be aware of that—and there is therefore an asymmetry in the way in which its trade relations are conducted. The EU conducts the deals and agreements with third-party countries on behalf of Turkey that set its tariffs and quotas. Indeed, that has caused Turkey great concern, because while the Mexico-EU agreement means that Mexico can import cars into Turkey tariff-free, there is no reciprocal liberalisation of Mexico’s markets for Turkey’s textiles, and Turkey is extremely aggrieved about that.

Were we to have the same arrangement, we could be in a position in which the European Union concluded an agreement with the United States—for example, perhaps along the lines of the Transatlantic Trade and Investment Partnership, which many Members would have concerns about—to the detriment of this country but the advantage of the European Union, which we would have no control over, and without liberalising US markets to British exports. That would be an extremely bad deal indeed. I trust that fully answers my hon. Friend’s question.

[Vicky Ford (Chelmsford) (Con)]

rose—

[Anna Soubry (Broxtowe) (Con)]

Will the hon. Gentleman give way on that point?

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[Barry Gardiner]

The right hon. Lady is free to suggest whatever she likes. I have dealt with the customs union at great length this afternoon and made our position quite clear.

All information exchanged between the UK and US officials will be kept secret until four years after the working group has been concluded. That is why hon. Members should not take on trust any verbal reassurances that the Government or the Secretary of State might give this afternoon. One has to establish good faith to earn trust.

[Vicky Ford]

Will the hon. Gentleman give way on the subject of transparency?

[Barry Gardiner]

On transparency, yes. The hon. Lady has been very persistent, so I will give way.

[Vicky Ford]

If I may, I want to take the hon. Gentleman back to his suggestion that the European Parliament is somehow a far more transparent organisation when it comes to discussions on trade deals, especially trade deals with the US. My memory is that the discussions with trade negotiators and MEPs were held behind closed doors, with only trade committee members and committee chairs present. The papers held by the European Parliament were all kept behind closed doors and were not transparent. I have heard the Minister say that he wants us to have a transparent process in which the House will be consulted and able to scrutinise future trade deals in a better manner.

[Barry Gardiner]

Look, the hon. Lady is of course right that the European Union held a lot of those discussions in private, particularly over TTIP. However, she may be unaware though that although European Members of Parliament were able to access the text of the TTIP agreement, this Secretary of State refused for nine months to set up a reading room so that Members of this House could access the very same information that was available to her colleagues in the European Union.

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[Vicky Ford (Chelmsford) (Con)]

It is enormously important that as we move through the period of the Brexit negotiations and into the future, we give businesses and consumers stability and continuity in trade agreements—not only in our trade relationship with the EU, but in our relationships with the 60-odd other countries with which we currently trade via our relationship with the EU. We are living in a time of unprecedented change in the world, with the fourth industrial revolution and the digital revolution, and trading flows are ever-changing. It is crucial that at this time we hold on to the principles and remember the benefits of free trade. Free trade is not just about helping big business; it brings benefits for all. Opening markets brings opportunities for exporters and importers, large and small. Those businesses can then help to deliver growth, real jobs and opportunities. For consumers, trade brings more choice and lower prices.

It is incredibly important that we look at what this Bill does and does not do, because the entirety of our new FTAs will not be set just in this one move. This is an enabling Bill that maintains the right of British companies to bid on government procurement contracts in other parts of the world. We are talking about £1.3 trillion—there are so many zeroes on the end of that number—and we must protect that business. The Bill also protects our national interests such as the NHS and our broadcasters. It transitions our existing trade deals with those 60-odd countries into British law from the current EU relationship. I do not know how many Members have read CETA, but it is 1,568 pages long and I have read a lot of it. There will need to be changes when it comes into British law, which is why the Minister needs powers to make technical changes. The Bill allows us to collect and share vital information on our existing and potential future trade flows—this is information currently shared under EU premises. It will allow us to share and understand that information domestically.

Free trade is not a free-for-all; we have global rules that protect us. It is important that when those rules are broken, we can take remedies, which is why the Bill also establishes the new Trade Remedies Authority. It is incredibly important that it is up and running, and staffed with strength, well in advance of our new era. That is why we must make sure in Committee that its powers are made very clear, as I mentioned last night.

The Bill does not set a long-term trade policy. It is important that it does not do so today, because that needs to be properly consulted on with not just Members of this House, but the many stakeholders who are involved. There has been a lot of scaremongering about what free trade could involve. Free trade does not mean lowering our standards. It does not mean throwing out our environmental standards, our consumer protections, our environment law or our long history on human rights. All that can be preserved and should continue to be preserved in the new era, but it is right that the Government take time to consult stakeholders across the country on the priority of our new law.

The Bill also does not say, as Opposition Members were suggesting last night, that we should stay in the customs union. There seems to be some confusion about the benefits of a union with the customs union, and I would like to remind the shadow Minister about the deficiencies of the Turkish solution, for example: Turkey opens up its market to any trade that the EU signs itself up to, but Turkey cannot get access to the Canadian market in return, for example. The UK needs a better, more bespoke and more workable and practical relationship with the EU, as well as the rest of the world. I hope that we can start to work together this year to deliver that.