EU: Withdrawal and Future Relationship (Motions) — House of Commons, 2019-04-01
Topic: Foreign Trade
Kenneth Clarke (Conservative, Centre-right): No, I will not, in the interests of other Members who wish to speak First, that argument is not actually accurate. It is true that trade agreements with other countries would mean that we would not be able to make changes in external tariffs. Of course, we would have the benefit of no tariffs at all: totally tariff-free entry into the rest of the EU. What we would be able to have trade agreements on is the service economy, service industries, which constitute the vast majority of this country’s GDP I have been involved in trade negotiations quite a lot over the years. It is not vanity, but simply my longevity, which leads me to say that I have probably had more experience of trade arrangements and dealings than any other Member. In every Department that I have occupied, I have led trade delegations to somewhere or other. During my spell at the Department of Trade and Industry and my spell at the Treasury, I became heavily involved in trade deals, particularly with the Americans, China, and large parts of Latin America. I led for the last Government—the coalition Government—on the EU-US TTIP negotiations. Although the Commission conducts the negotiations on a mandate that it has been given by the 28 member states, certain of the bigger ones—such as Britain—remain a constant presence, and go backwards and forwards to try to ensure that the process is going smoothly. So I have been involved in many attempts to secure trade deals, some successful and some not. Opening up the Chinese market is a very slow business: I could have told President Trump that Some of my right hon. and hon. Friends ascribe great weight to an American deal. TTIP failed. It was given that strange title—the Transatlantic Trade and Investment Partnership—because Obama’s officials said that it would not be possible to get anything called a free trade agreement past America, which is quite a protectionist country. Certainly Congress is protectionist, and that was under Obama. The problem with the Americans was, first of all, that we wanted to open up access to services. Tariffs do not matter much in European-American trade. They are vestigial. All the Europeans, including the British, are quite content to abandon tariffs in both directions, because they are fairly small. The auto industry, on both sides of the Atlantic, did not really want tariffs. It is regulatory differences, and getting regulatory equivalence, or convergence, that stand in the way We wanted the Americans to open up public procurement, which they would not do—and, anyway, it is a state-by-state process, which makes it more difficult—and to open up the service sector, particularly financial services. The lobbies in Congress are too strong for that to make much progress. The present President has given no indication that he would open up any market to us. The approach that he has taken to trade negotiations, when he talks about a trade agreement and takes on the Mexicans, the Canadians and the Chinese, is that he wants America to export more to them and wants them to export less to America. We have a large trade surplus with America, and that is what he has in mind. It is perfectly plain. His obsession is with food and agricultural products, and that means giving up our standards of animal welfare and food quality—which, owing to British lobbying, are very high in Europe—and accepting America’s lower standards involving hormone-treated beef and chicken If any Members think we can influence that—if they think that with such a trade agreement we can somehow start tightening up American food standards and animal welfare—I can only tell them that the agriculture lobby in Congress is extremely powerful, and would not take the slightest notice of British interests in such matters. The Australians would probably agree to a deal, but we would have to face the problem of hormone-treated beef, because that is what they want to export to us. The New Zealanders would want a deal as long as the quotas were lifted from their tariff-free exports of lamb. I am sure that they would be happy if we could think of anything that we wished to sell to New Zealand that we do not sell at the moment. But those negotiations will not compensate for the loss of our European markets if we stay outside the customs union and the single market and erect great barriers in our way I have made a modest case—it is modest compared with my own views; nobody in this House is a greater supporter of the European project than I am and nobody in this House wants Britain to remain in the EU more than I do, if that were in the realm of the possible. To reject motion (C) again would run the risk of the adverse reaction outside that we got when—as I think we all anticipated—there were minorities for every motion last week. Now is the time for hon. Members to get behind motion (C). If they wish to get behind common market 2.0, they should feel free to do so, and those who want to reinforce the revocation argument if otherwise we would crash out with no deal should vote for that So far, the process has been a shambles. The public hold their political parties and politicians and the institutions of Government almost in contempt. Today, we must start to bring that to an end. All I propose is a modest step compared with most others on the Order Paper. It is perfectly compatible with the wider ambitions of a large majority of this House. It is fitting that I should open the debate because my motion is the basic, obvious beginning. If the House wishes to add more, I shall probably vote with it.