Parliamentary Debates (Hansard)
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Thursday Volume 626 6 July 2017 No. 13 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 6 July 2017 © Parliamentary Copyright House of Commons 2017 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1283 6 JULY 2017 1284 Dr Fox: We are sympathetic to the concept of an House of Commons African continental free trade area, and we are in favour of a range of initiatives to help foster wider and Thursday 6 July 2017 greater intra-Commonwealth trade. There is a great deal to be gained for all Commonwealth partners from closer co-operation. The Government’s aim—including The House met at half-past Nine o’clock through the development agenda championed by my right hon. Friend the Secretary of State for International PRAYERS Development—is to create sustainable prosperity, and helping developing countries to enable them to trade their way out of poverty is an essential and key element [MR SPEAKER in the Chair] of that strategy. BUSINESS BEFORE QUESTIONS Chris Davies: Britain and the Commonwealth nations share a great history, and over the years have formed ACCOUNT OF THE CONTINGENCIES FUND 2016-17 many great links across academia, sport, culture and numerous other areas. What steps has my right hon. Resolved, Friend taken to expand this co-operation with That there be laid before this House an Account of the Commonwealth countries to include a free trade agreement, Contingencies Fund, 2016-17, showing— so that we can add business and commerce to the long (1) A Statement of Financial Position; list of Commonwealth co-operative endeavours? (2) A Statement of Cash Flows; and (3) Notes to the Accounts; together with the Certificate Dr Fox: As my hon. Friend knows, the Commonwealth and Report of the Comptroller and Auditor General is not a trading bloc, and it actually contains a number thereon.—(Mrs Wheeler.) of very disparate economies. We are liaising with several Commonwealth partners about bilateral agreements in the future,and my Department is working with stakeholders Oral Answers to Questions to develop initiatives that will stimulate UK and intra- Commonwealth trade and investment in the lead up to and beyond that vital Commonwealth summit next year. INTERNATIONAL TRADE Toby Perkins (Chesterfield) (Lab): Members on the The Secretary of State was asked— Conservative Back Benches are desperate for the Secretary of State to give us more confidence that we will massively Commonwealth Countries increase trade with the Commonwealth, but I think he is wise not to do so. India, Australia and Canada collectively account for less than 5% of our exports, and 1. James Duddridge (Rochford and Southend East) research shows that the most enduring statistic is that (Con): What recent discussions he has had with his trade halves whenever the distance between nations counterparts in other Commonwealth countries on the doubles. Is it not foolhardy for us to be turning away future of trade and investment between the UK and from our closest trading partners and relying on increasing those countries. [900255] trade with countries so very far away? 7. Chris Davies (Brecon and Radnorshire) (Con): What recent discussions he has had with his counterparts Dr Fox: I am sorry to hear such a lack of understanding in other Commonwealth countries on the future of of how the modern economy works. Particularly for trade and investment between the UK and those countries. countries that have a large proportion of their trade in [900262] services, services trade does not depend on distance. In fact, what we need is increasingly close co-operation The Secretary of State for International Trade and with countries that are similar to us in their economic President of the Board of Trade (Dr Liam Fox): Ministerial status, not necessarily geographically proximate, although colleagues and I regularly engage with business stakeholders I entirely understand that for goods the geographical and policy makers in Commonwealth partner countries. distance does have a greater bearing. In March, my noble Friend Lord Price and I met over 20 visiting Trade Ministers at the inaugural John Spellar (Warley) (Lab): One country with which Commonwealth Trade Ministers meeting in London, negotiations on trade have been very advanced is Canada, and we discussed strengthening collaboration and deepening with the EU discussions on the Canadian trade deal. intra-Commonwealth trade and investment. We are Obviously, the Secretary of State will want to seek to now preparing for the Commonwealth summit in 2018. replicate that fairly quickly after our exit from the EU, but that has been subject to a huge amount of James Duddridge: I thank the Secretary of State for disinformation regarding the costs and benefits of the that answer. The Commonwealth is particularly up for deal. When are the Government actually going to take doing trade with the UK, especially in Africa. The on this issue and set the record straight? Secretary of State referred to intra-Africa trade. Can we be even bolder and encourage a continental—intra- Dr Fox: What we do not know at present is what the Africa—free trade deal not only with our Commonwealth state of the EU-Canada agreement will be at the point friends but going beyond our Commonwealth friends? at which we exit the European Union. It may well be 1285 Oral Answers 6 JULY 2017 Oral Answers 1286 that all countries have ratified it, but as the right hon. agree that with the increase in demand for British Gentleman is well aware, as a result of the Singapore exports, UK Export Finance, with its widened role, has judgment every single Parliament and some regional an important part to play? parliaments will have to ratify the deal. If the deal is not ratified at the point at which we leave the European Mark Garnier: My hon. Friend is absolutely right to Union and has only provisional application, it will have raise that matter. I thank him for the work he does on no basis in UK law, in which case we will have to have the all-party parliamentary group for international trade the fall-back position of using that as the basis for a and investment. He is absolutely right that the Department future UK-Canada agreement. for International Trade needs to provide a suite of services, and that includes UK Export Finance. Some Mr Nigel Evans (Ribble Valley) (Con): I think that 7,000 businesses have been helped by UK Export Finance, the potential for trade with Commonwealth countries is the appetite for risk has been doubled and we have very exciting—they are growing and strong economies—but increased the number of currencies we can use from every time I open a newspaper or listen to the radio or 10 to 40, from the Australian dollar to the Zambian TV, the story is presented very negatively, as though it kwacha. That is part of a very wide range of things and will be almost impossible for us to do these trade deals. we have been successful so far. Does the Secretary of State feel that that is wrong, and that it undermines the work he is doing? Mr Barry Sheerman (Huddersfield) (Lab/Co-op): This Front-Bench team must know that a silly attack on the Dr Fox: It does appear that some elements of our BBC cannot be used as an excuse for policy. This is a media would rather see Britain fail than see Brexit Secretary of State who has refused to meet the all-party succeed. I cannot recall a single time recently when I parliamentary manufacturing group. The manufacturers have seen good economic news that the BBC has not I know have no confidence in this Secretary of State. described as being “despite Brexit”. They think he is living in cloud cuckoo land and is not competent, and they want his resignation. Ian Paisley (North Antrim) (DUP): Our agri-food producers see the Commonwealth as an exciting, wonderful Mark Garnier: I will take note of the hon. Gentleman’s and expansive new market for their powdered milk comments. products, red meats, pig and poultry. Will the Secretary of State assure us that he is in discussions with the Dr Julian Lewis (New Forest East) (Con): Will the Commonwealth countries about increasing the Minister explain what steps the Government are taking opportunities for trade in our agri-food products to give to ensure that, following our departure from the European encouragement to our producers at home? Union, our export manufacturing businesses do not face high tariffs from other nations? Dr Fox: I entirely agree. To underpin the confidence in the agricultural sector, it needs to know that there are Mark Garnier: The Department for International increasing markets out there. One of the key roles of the Trade is embarking on a series of talks with the World Government is to help our agricultural sector to have Trade Organisation and individual countries to, in the the confidence that it requires for investment by showing first instance, secure continuity of business with those that we can help it into markets. It is worth pointing out countries with which we already have agreements. I that according to the European Commission’sown website, speak as a remainer from the campaign, but this is a 90% of global growth in the next 10 years will be fantastic opportunity to forge new trade deals and take outside the European Union. Those are the markets we advantage of the opportunities that Brexit presents. have to help British business get into. Tom Brake (Carshalton and Wallington) (LD): To Businesses (Support) grow their international trade, many businesses need to be able to call on the best possible members of staff.