Transatlantic Trade and Investment Partnership

Debate between William Cash and Robert Walter

Tuesday 25th February 2014 Commons Chamber

[Mr Robert Walter (North Dorset) (Con)]

I congratulate the right hon. Member for Wentworth and Dearne (John Healey) and the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing the debate.

I want to start by saying that I believe in free trade. I subscribe to the goal of global trade that is both free and fair. Achieving that goal, however, is a slow and grinding process. In my view, it will be many decades before there is any meaningful World Trade Organisation-led, top-down framework that we could call global free trade. Why? Because the parties range from the richest to the poorest nations on the planet, from the prairie farmers of north America to the subsistence agriculture of sub-Saharan Africa. If we truly believe in free trade, however, we should use the building blocks that we have today. The European Union is the world’s largest market and we are part of it. It is the biggest building block in this equation.

Consider these numbers: EU GDP is 19.4% of world GDP, and US GDP is 18.9% of world GDP. Together that is nearly 40% of the worlds productive wealth, but between us we still maintain some of the most stringent tariff and non-tariff barriers to trade. Below the wire, under the barrier, 30% of the EU’s stock of foreign direct investment is in the United States, and 29% of the US’s FDI is in the EU. This is, therefore, a no-brainer. If we can create free trade across the Atlantic, with Canada as well of course, and have the transatlantic trade and investment partnership, that has got to be good for world trade, good for the United States, good for Europe and good for Britain. There are, however, those who want us to turn our backs on all of this and leave the EU, and so leave a trade deal representing 40% of world GDP.

The TTIP negotiations will not be easy. There are too many vested interests and we have heard about some of them already: in agriculture, the public sector, transport and financial services, to name but a few. However, the prize is so great and the balance of power so favourable to a deal that I am optimistic we can achieve it. Outside the EU, the cards are stacked against us. Heaven knows, it would be difficult enough to get a deal with the EU if we had just left it. Of course, some Eurosceptics would argue, in spite of the hard facts, that we would still be better off out and better off negotiating our own free trade deal with the US alone. That is, frankly, a fantasy. Can the UK afford to squander such a strategic and economic opportunity? I believe we cannot, and I hope we make sure that we do not.

I want to reiterate my support for the Government’s commitment to keeping our country firmly within the European Union, as a sure-fire guarantee of the UK’s best interests. I hope they will continue to hit home the point that the two issues are intimately linked and mutually reinforcing. The promise of a trade deal highlights not only the material value that the UK derives from our membership of the EU, but the leverage and influence that we can only exercise by playing the lead role within it. This is a fact. The UK has accomplished so much within the EU over many decades. UK companies already enjoy unfettered access to a single market of 500 million people. The EU has helped to create around 3.5 million jobs, one in 10 jobs in our country.

I agree that the UK wants to trade with the whole world but so do the Germans, the French, the Italians and the Americans—but here we have the opportunity of securing free access on our terms to a stable market that will represent 40% of the world’s productive wealth.

[Mr William Cash (Stone) (Con)]

In the light of his remarks, will my hon. Friend explain why, in our trading with the other 27 states, we have run a deficit, according to the last figures, of £49 billion, whereas with the rest of the world we run a surplus of around £13 billion, which is likely to rise by the end of this year to about £25 billion on the same goods and services?

[Mr Walter]

As always my hon. Friend asks an incisive question that deserves an answer, which is that if we successfully negotiate this deal—which is with another 20% of the world—it can only be advantageous to open up those markets in the United States, Canada and other countries to UK businesses.

There are other deals under discussion and in place that would mean that we would be more than halfway towards achieving our goal of world free trade. Do not let us throw that away. Our membership of the EU is too good to throw away and, in my view, the transatlantic trade and investment partnership is too good a deal to reject.

Europe

Debate between William Cash and Robert Walter

Wednesday 30th January 2013 Commons Chamber

[Mr Walter]

It is a warning from history, but if the hon. Gentleman listens to what else I have to say, I hope that he will accept that I will be campaigning to make sure that that does not happen. I had rather hoped that the question of Britain’s membership had been settled decisively back then—my view has not changed—but I believe that the prospect of a national vote would give our country an opportunity to have a serious national conversation about Britain’s relations with the European Union. I welcome that, because I think that for too long the debate has been dominated and, to an extent, distorted by mistrust and by a suspicion that more EU integration means less sovereignty for the United Kingdom.

We need to set the record straight. For those of us who support the European project, this will serve as an opportunity to explain what Parliament and politicians have done in the people’s name over the last 40 years. It will also give us a chance to expose the myths purveyed by those who would have us turn our backs on both our European history and our European future.

It is true that the Europe we joined in 1973 was created on the basis of a vision of a post-war Franco-German elite. It is also true that Schuman, Monnet and de Gaulle himself saw ever-closer union as meaning an eventual federal Europe. But that was another time, and another Europe. The EU of today is markedly different, and the EU of tomorrow will, I believe, be even more so. In the Commission and, to some extent, in the European Parliament, there are those who still see the EU as a centralising project, but in national Parliaments—including this one—and among the peoples of Europe there is no craving for that original centralised model.

Brussels is not Europe, and the people who work there have no monopoly on the European vision. Schuman’s plan was fundamentally about eliminating trouble, anxiety and distrust from a continent ravaged by centuries of conflict. Today, our focus is not on keeping the peace, but on consolidating prosperity. The treaty of Rome was signed in 1957 by just six countries with a combined population of 173 million. By the time the Lisbon treaty came into force, more than half a century later, the Union comprised 27 member states with a combined population of more than half a billion. With Croatia, we are soon to number 28. Enlargement, one of the EU’s greatest success stories, is set to continue, bringing more change to the character and direction of the European project.

As its membership has changed, the EU has embarked on a different path. If we reflect on the way in which European institutions have evolved since that original blueprint, if we look at the aspirations and stated aims of EU member states—all of which want to protect their identities and interests—and if we consider the actions that member states have taken independently, across a wide spectrum of policies, it is clear to us that there is no great craving for the centralising project envisaged by the founding fathers. The proof is all around us.

After 40 years of British membership, there is really no overarching bureaucracy or executive. The Commission and the Council are small in comparison with many national Government administrations. The Commission’s budget is barely 1% of Europe’s GDP. Countries retain sovereignty over many areas that might have been expected to be transferred in a federal system. Member states have their own foreign policies and their own armies, which they can deploy at will, and they do. Member states can choose to opt out of a raft of agreements that they oppose, and they have: that has been proved.

We should not forget, of course, that treaties require the consent of every member state, even if they are supported by the vast majority of the population of the EU. That is an important point. When consent is not given, Europe must go back to the drawing board, and that has been done. In 2005, France and the Netherlands rejected, by referendum, what was then the constitution. In 2008, Ireland rejected the Lisbon treaty in the same way. Did those countries threaten to leave the European Union? No. Did the EU respond by trying to coerce those countries into accepting a treaty that was judged unacceptable by the people? No. What happened was that the countries returned to the negotiating table, and their Governments renegotiated the aspects of the treaties that conflicted with their national interest. They made the case for their concerns to be addressed, and they were.

I think that there is a lesson here. We in the UK have our concerns and suspicions, and the EU has many shortcomings. We are therefore right to push for reform, but these examples show us that the EU is not heading inevitably and inexorably towards some sort of federal superstate, even if some people within the Commission and the European Parliament still harbour that goal. Every country has its own corner to fight, and it has the power to do so. We are far too reluctant to admit this, but the UK has time and again proven itself to be an influential leader in the EU.

[Mr Cash]

Will my hon. Friend give way?

[Mr Walter]

Sadly, I only have a couple of minutes left.

[Mr Cash]

I can give you an extra minute.

[Mr Walter]

No, you cannot.

Thanks to our positive engagement across a swathe of policy areas, from economic reform and deregulation to environment and trade, we have consistently set the agenda. In the debates ahead, we need to strip away the rhetoric and clarify what Europe represents. Europe is the solution, not the problem. Our history is in Europe, and I believe that our future is, too.

National Referendum on the European Union

Debate between William Cash and Robert Walter

Monday 24th October 2011 Commons Chamber

[Mr Walter]

The hon. Gentleman is absolutely right—it was a political argument. What I am sad about is that there are those who want to destroy that legacy and the legacy of those who fought and voted for that lasting peace—a Europe in harmony, comfortable with itself and respecting differences of culture, language, history and nationality, but confident in its ability to work together.

[Mr Cash]

I just want to mention to my hon. Friend that my father was killed in the war in Normandy and I am sure that he, together with all the others, also appreciated that what they were doing was fighting for freedom and for the democracy that is being put at risk by opposition to this motion.

[Mr Walter]

I hope that that is not correct and I remind my hon. Friend that he and I first met when we were both on a committee of the European Movement, which, of course, had just campaigned for a yes vote in that very referendum.