Transatlantic Trade and Investment Partnership — House of Commons, 2015-01-15
Topic: Foreign Trade
Philip Wilson (Labour, Centre-left): First, I congratulate my hon. Friend the Member for Swansea West (Geraint Davies) on securing a debate on an issue that is important for the future economy of the UK and of Europe and for globalisation. We should broadly welcome the principles behind TTIP but obviously we need to take into consideration a lot of the issues raised by Members, especially the hon. Member for Richmond Park (Zac Goldsmith), and to ensure that we have continued parliamentary scrutiny Any trade agreement that can give the UK and Europe greater access to US markets can only be welcomed. There are obviously certain caveats to that and I will come on to them. I believe that this agreement has the potential to help regulate a globalised economy so that it is pro-business but also pro-fairness. It is also critical that we take part in the negotiations from the start and continue with them because we cannot close the door on the world. To be opposed to TTIP as a matter of principle without any regard to jobs and investment opportunities is counter-productive. It would seem to me to be fundamentally wrong to say no to something before the negotiations have really started and a framework decided upon I shall say a few things about the importance of US-UK trade and investment. US investment in the UK in 2013 was $571 billion. UK investment in the US was $519 billion. US exports to the UK were $107 billion, while US imports from the UK were £101 billion. With $1 trillion in investment and £204 billion each year in trade, the UK-US economic relationship is one of the largest and most important anywhere in the world. The US and the UK are each other’s largest foreign investors, and this investment supports over 1 million jobs in each country, and the Government estimate that TTIP could boost the UK economy by as much as £10 billion a year As far as trade and investment is concerned, the UK can benefit the most through TTIP in comparison with any other EU economy. The impact on the north-east, where my constituency is based, could be significant, too. Some £2.4 billion of north-east exports go to our single biggest market—the US—which is equivalent to 66% of all north-east air freight. The North East chamber of commerce estimates that 42% of its members want to export to the US in the next 24 months, while the trend for the numbers of exporters in the north-east is increasing every year to the point where more than 2,500 businesses are exporting to Europe. Over 200 medium and large US-owned companies in the north-east exports products around the world US-owned companies such as Sevcon, Caterpillar, AAF Ltd, Esterline Darchem, GE Wellstream and Union Electric Steel are all based in the north-east of England. Newcastle airport is starting direct flights to New York to prove the significance of the north-east/US relationship. Any deal that can bring down business tariffs and raise standards by harmonising regulation, including the labour market, and that can promote trade and investment can only be worth negotiating It is not only US companies that can benefit; UK-based companies can, too. I am thinking of Kromek in my constituency; it is based at Netpark, which is a science park. It produces systems for airline security and state-of-the-art X-ray technology, which has great trade significance for the US There is obviously some scepticism about the deal, especially concerning ISDS. However, EU Trade Commissioner Malström has said: "Let me be clear: the TTIP that the European Commission will negotiate and present for ratification will be an agreement that is good for citizens—good for growth and jobs here in Europe. It will be an agreement which strengthens Europe’s influence in the world, and which would help us protect our strict standards. The European Commission would never even consider an agreement which would lower our standards or limit our governments’ right to regulate. Neither would EU Member States, nor the European Parliament." A letter from another Commissioner to my right hon. Friend the Member for Wentworth and Dearne (John Healey), who chairs the all-party group on TTIP, says on the question of ISDS: "We can already state with confidence that any ISDS provisions in TTIP could have no impact on the UK’s sovereign right to make changes to the NHS." I hope that this information clearly demonstrates that there is no reason to fear either for the NHS as it stands today or for changes to the NHS in future as a result of TTIP It seems to me that the problem is not with TTIP, but with the Government. Judith Kirton-Darling, Labour MEP for the north-east, has said: "The European Commission mandate prevents it from including services that are still publicly funded…TTIP must guarantee our full ability to provide any service publicly if the British people choose to do so. The coalition government claim that the NHS is safe but refuse to specifically exclude it from the draft text. That can only lead…to the conclusion that the biggest threat to our NHS is not TTIP but the Tory-led government." Finally, let me say that TTIP is something on which we have to negotiate. It was Clem Attlee 70 years ago who got us involved with the general agreement on tariffs and trade because he wanted to regulate the global economy. That was 70 years ago—and we want an opportunity to do exactly the same now.