EU Commonwealth Speech V2

SPEECH BY THE RT HON HUGO SWIRE MP

THE EU AND THE COMMONWEALTH – THE UK’S PLACE IN BOTH

CHATHAM HOUSE, 25 MAY 2016

Introduction

1. Excellencies, ladies and gentlemen, thank you

for that kind introduction. I am delighted to be

back at Chatham House. Given that Her

Majesty the Queen is your Patron and

Baroness Scotland is one of your Presidents, it

is particularly appropriate that I am speaking to

you this evening about the Commonwealth –

and about why being in the EU complements

our membership.

2. Today I want to debunk a myth. The myth that

our membership of the EU somehow limits our

engagement with the Commonwealth. I will

argue that it enhances it. Some have asserted that if we left the EU, UK-Commonwealth trade would increase and migration flows rebalance in favour of Commonwealth countries. I maintain this is wishful thinking. Others suggest that we should choose between the two institutions. I maintain that they are complementary. It is not an either-or choice.

The UK needs and can have both.

Importance of the Commonwealth to the UK

3. This Government has made clear that the

Commonwealth is of immense importance to

the United Kingdom. No matter how you look

at the relationship – historic, cultural, or our

personal ties – our connection with the

Commonwealth is stronger now than ever. The

fact that Commonwealth citizens resident in

the UK have the right to vote in the

forthcoming referendum shows just how close

that connection is.

4. Our commitment to the Commonwealth is

clear. A large part of the UK’s aid budget is

spent in Commonwealth countries - £1.88

billion in 2013-14. We remain the largest

contributor to the Commonwealth Secretariat.

And we are looking forward to hosting the first

ever meeting of Commonwealth trade

ministers in 2017 and the next Commonwealth

Heads Of Government Meeting (CHOGM) the

year after that.

5. And the Commonwealth itself is thriving. From

eight member countries in 1949, it has grown

to 53. It now covers nearly a quarter of the

world’s land mass and more than a third of its

people. It boasts a combined Gross National

Income of 10.7 trillion dollars, and a youthful

population, of whom 60 per cent are under the

age of 30.

6. The Commonwealth thrives because of its

great diversity. Whether large or small,

developed or developing, from Canada’s

glaciers to the African plains or tropical

beaches of the Pacific – the Commonwealth

has it all. But it also thrives because, at heart,

we have so much in common. Trade, for

instance, is on average 19% cheaper between

Commonwealth countries due to similarities in

our legal systems and language. Being a core

part of it is clearly in our national interest.

Could Brexit benefit the Commonwealth?

7. So, if we value the Commonwealth, and know

that it is going from strength to strength, does

this mean we should focus on it - to the

exclusion of the EU? Let’s examine the

arguments.

Migration

8. First, there’s the argument on migration. Some

in the leave campaign have made the

argument that leaving the EU would allow

greater migration from the Commonwealth.

But I have not seen Nigel Farage use this

argument in public. It wilfully misrepresents the

political reality and, to be honest, it is

irresponsible and misleading. Frankly, I

believe it is naïve to think that the same

people campaigning for Brexit would welcome

this.

9. And what possible basis do they have for

making such an assertion? Because - let’s

remember - it is already up to the United

Kingdom, not the EU, to decide who is allowed

to come to this country from outside the EU.

Our membership of the EU does not prevent

Commonwealth citizens from coming to the

United Kingdom. Anyone suggesting that it

would be different or easier is just raising false

hopes by suggesting we would water down

those criteria.

10. Nor should we forget that, if we did leave

the EU, keeping full and meaningful access to

the Single Market would also mean accepting

significant trade-offs, including the continued

free movement of people. No other country

has managed one without the other.

Trade

11. Secondly, there is the creeping narrative

promoted by the Brexiteers that somehow the

Commonwealth can replace the EU as the

UK's major trading partner. That is a leap of

faith with no basis in fact. Access to the Single

Market is a cornerstone of the UK’s prosperity.

44% of what we export goes to the European

Union, with 3 million jobs in the UK dependent

in some way on trade with the Single Market.

12. And it ignores what our EU membership

does to facilitate trade with the

Commonwealth. Access to the Single Market

doesn’t just matter to UK businesses and the

UK’s economic future. It matters to the

Commonwealth too.

13. As businesses up and down the country

will attest, we are a gateway to trade with the

EU, as well as an important market in our own

right. It’s the reason why Australia is a

disproportionately large investor in the UK for

the size of its economy. India too sees this

gateway role as vital. Prime Minister Modi

during his visit to the UK last November said

“As far as India is concerned, if there is an

entry point for us to the European Union that is

the UK”. And the head of the Federation of

Indian Chambers of Commerce and Industry

agreed, adding that: “we firmly believe that

leaving the EU would create considerable

uncertainty for Indian businesses engaged

with the UK and would possibly have an

adverse impact on investment and movement

of professionals to the UK.”

14. A third argument centres around the idea

of a Commonwealth Free Trade Area. It is

certainly a fine aspiration. Ultimately, as a

Conservative, I believe that free trade is the

engine of global growth – and that a rising tide

lifts all ships. But it is quite wrong to suggest

that Commonwealth trade might be a

substitute for the EU Single Market.

UK Influence within the EU

15. Rather than harking back to the days of

Imperial Preference, we should remind

ourselves why the Commonwealth benefits

from our close relationship with the EU. Our

seat at the table gives the Commonwealth a

voice - and it is a voice which brings results.

UK membership of the EU is creating jobs and

driving growth, in Britain and across the

Commonwealth. That’s why our

Commonwealth allies want us to stay in the

EU.

16. But don’t just take my word for it. A host

of Commonwealth leaders have come out and

said so. Canada’s Prime Minister Justin

Trudeau has said that Britain’s clout is

“obviously amplified by its strength as part of

the EU”. New Zealand Prime Minister John

Key has said: “We see Europe as an

extremely important continent that needs

strong leadership. We think Britain provides

that leadership”. Whilst his Australian

counterpart Malcolm Turnbull said: “Britain's

involvement in the European Union does

provide us - and Australian firms particularly,

many of whom are based in the UK -

considerable access to that market. From our

point of view it is an unalloyed plus for Britain to remain in the EU”.

Trade

17. Let’s look at the reasons why they feel so

strongly. Beginning with trade. Today, the EU

has, or is negotiating, trade deals with over

80% of Commonwealth countries. The benefits

of these deals are significant for both the

Commonwealth and the UK. Canada is

expected to benefit to the tune of £5.5 billion a

year from CETA - the Comprehensive

Economic and Trade Agreement with the EU –

and the UK by £1.3 billion.

18. The United Kingdom has been at the

forefront of efforts to deepen the EU’s trading

relationships with Commonwealth countries.

We were instrumental in getting the

Commission’s agreement to begin

negotiations on FTAs with Australia and New

Zealand. We continue to push for an ambitious

Free Trade Agreement with India. And the UK

has consistently advocated a pro-development

trade policy, arguing for generous access to

the EU market for developing countries in the

Commonwealth and beyond.

19. We strongly supported the granting of

GSP+ status to Pakistan - which reduces duty

on exports in exchange for progress on

governance and human rights; Pakistan’s

exports to the EU rose by 20% in the first year

of this scheme.

20. The United Kingdom is working with our

EU partners to successfully conclude

Economic Partnership Agreement negotiations

in West Africa and with the East African and

South African Development Communities. The

EU is Ghana’s 2nd largest trading partner after

China. And in South Africa the EU accounts

for a quarter of total exports, and is its largest

foreign direct investor, with 2,000 EU firms

credited with creating 350,000 jobs.

21. And 14 Commonwealth Least Developed

Countries benefit from the EU’s “Everything

but Arms” arrangement, which gives them

duty-free and quota-free access to the EU for

– as it says on the tin - all exports but arms

and ammunition.

22. Just think of the overall leveraging effect of

all these deals – this isn’t just access to the

UK, but to the whole EU, for all 2.1 billion

citizens of the Commonwealth.

Development

23. And the benefits of our influence go well

beyond trade.

24. The EU is the world’s largest aid donor,

promoting stability, human rights and good

governance. The UK is seen by EU Member

States as the expert on development, which

gives us significant influence over EU

development policy. And let’s not forget, a

proportion of EU aid money comes from the

UK contribution to the EU budget. We have

used the powerful voice this gives us to shape

EU development programmes and reinforce

our own support for our Commonwealth

partners. Contributing through the EU scales

up our impact, as every pound of aid the UK

spends through the EU institutions is matched

by around seven pounds from other member

states. You only have to look at the numbers

to see what this means in practice.

25. The EU is one of the biggest development

partners in Nigeria, with nearly 700 million

euros committed under the last five year

development programme, a further half a

billion euros under the regional programme,

and millions more to support peacekeeping,

elections, vaccination programmes and

communities affected by Boko Haram

violence.

26. In Kenya, it spends about 80 million euros

a year to support job creation and governance.

It is South Africa’s main aid partner,

accounting for 70% of development assistance

and it complements our own cooperation,

tackling climate change and sustainable

development.

27. In South Asia too, the EU reinforces UK

human rights objectives – lobbying in

Bangladesh on child marriage and restrictions

on the media and civil society, and in Sri

Lanka on the death penalty and LGBTI rights.

28. In Australia, EU research funding has

helped UK researchers to collaborate with

Australian and South African counterparts on

the Square Kilometre Array radio telescope,

worth 5 million euros. The EU recently

established dialogues with Australia on

Counter Terrorism and peacekeeping.

Climate Change

29. On climate change too the UK has used its

influence within the EU to the benefit of the

Commonwealth. Adapting to and preventing

climate change is, of course, a core

development issue. It is also an existential

threat to some members of the

Commonwealth. You only have to look at

some of the Pacific island states like Tuvalu,

Kiribati or Vanuatu to see how vulnerable they

are to global warming.

30. The EU has been at the forefront of action

on climate change – and the United Kingdom

has been at the forefront of the EU, helping to

ensure greater momentum on the issue and a

better outcome at the Paris conference. We

led the way with climate legislation in 2008

and have blazed a path for others to follow –

between 2000 and 2014 UK GDP grew by

27%, while carbon dioxide emissions fell by

20%.

31. Acting as part of a 500 million-strong EU

bloc increases our global influence. This

benefits the entire Commonwealth, in

particular Commonwealth Least Developed

Countries and Small Island Developing States.

32. So it is clear that, right across the

Commonwealth, the EU is deploying its

significant resources to good effect. And it is

just as clear that the United Kingdom has

played and continues to play a vital role in

pivoting the EU towards the Commonwealth.

All these examples demonstrate what our

Commonwealth partners have to gain from the

United Kingdom remaining an active member

of the EU: defending open markets and

pushing for effective action on poverty, climate

change and other shared challenges.

Voter registration

33. So the outcome of the referendum will

affect the lives and futures not just of British

citizens, but of Commonwealth citizens too.

Those of them with leave to remain in the UK

have the right to vote in the referendum, and a

say over that future. So my message to the

200,000 South Africans and Nigerians, the

160,000 Jamaicans and the 126,000

Australians – not to mention the more than 3

million members of our British South Asian

communities – my message to you is: this

referendum matters to you as well as to us.

Your vote will make a difference: unlike in a

general election, every vote will have equal

weight. Please exercise your right. Please register to vote by the seventh of June deadline. Please get out and vote.

Conclusion

34. To sum up, the United Kingdom is, and

has always been, a nation of traders, reaching

out to all corners of the world. The

Commonwealth is a vibrant, impressive

institution, with 2.1 billion people and

enormous potential. The EU is a global trading

powerhouse, with significant economic

muscle. Our Commonwealth allies know that

the United Kingdom - together with the other

Commonwealth members of the EU - Malta

and Cyprus - are influential partners within a

powerful organisation. This has been

reinforced to me throughout my travels across

the Commonwealth. We are their voice on the

inside.

35. I have the words used by the Roman

statesman Cicero inscribed on my pen: cui

bono – to whose profit? And here I readily

admit that I leave myself open to accusations

of pretentiousness but it is useful to pause and

think before signing anything. And so I am

here to ask you - who would profit from the

United Kingdom leaving the EU? Certainly not

either the United Kingdom or the

Commonwealth. Because far from conflicting,

the EU and the Commonwealth are different

but complementary institutions for the United

Kingdom. Far from solving problems on trade and migration, leaving the EU would create them. Far from having to make a compromise

– we should be in both. As I have said many times – there is no need to choose.

36. Ladies and Gentlemen, some have

suggested that Brexit is a patriotic cause. And

to argue for the UK to remain in the EU is

somehow unpatriotic. I reject that entirely. I, as

Britain’s Minister for the Commonwealth,

believe that the patriotic thing to do is what is

in our country’s long term interests. And I

believe these interests are best served by re-

committing to the Commonwealth and to a

reformed EU.

Thank you.