Trade Bill — House of Commons, 2018-01-09
Topic: Foreign Trade
Anne Marie Morris (Conservative, Centre-right): I will be brief. First, Brexit has already been a great success. We have seen great improvements in our economy and great opportunities for many businesses. Despite her wonderful ditty, I take issue with the sentiments of the hon. Member for Livingston (Hannah Bardell) I am pleased that today we are talking trade because, when we talk about Brexit, trade is the key win as far as I am concerned. For me, it is vital that the 50 or so EU FTAs are properly transitioned. That is absolutely right. My right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) rightly explained that the powers are wide, but when we are trying to transition that number of agreements in a relatively short period, we need the ability to make necessary changes. Let us remember that third parties have a say in this; it is not just about the UK going to these countries and saying, "Let’s do it the old way." This is also an opportunity for us to do it in a way that benefits the UK economy This Bill is an important part of the whole Brexit piece. Although I understand that the prime objective of this legislation relates to the existing EU relationships and trade deals, there will be some new agreements and, de facto, the potential of their setting some form of precedent for the Government’s approach to doing future trade deals with other countries. I do not think it is appropriate to put this in the Bill, but it would be helpful to have something on the record from the Government about what exactly their trade policy is. What theme will bind their approach to these 50 agreements and future agreements with other states? The Government have said that they believe that they now have a great opportunity to set themselves up as the new global leader for free trade, a position that some might say has been vacated by the USA. Therein lies a question: what is free trade? We need to be clear that it does not mean free without any limitations. Every FTA has its exclusions and every country that is part of an FTA will negotiate for what is in its best interests. Complete free trade would work only if the law of comparative advantage could come into play, but that would apply only if we were all one country, with no boundaries, and with the same laws and taxes, and that is simply not the case Inevitably, therefore, all FTAs include some element of protectionism and it seems that now is the time for the Government, in carving out these exclusions, as is the norm, to make it clear to the country where they want to be on the balance between totally free trade, with no exclusions and no protections for our industries, and having some protection. I recall that way back the Prime Minister talked about ensuring that some of our core industries were protected. That is a key issue and I want to hear something from the Government on it. If we are talking about the economy versus the community and jobs issue, if I may put it that way, I want to hear that there is some commitment to retraining in those areas where there will be fallout. Clearly, those will be minimised, because the opportunity under Brexit is greater than the threat, but it would be naive not to recognise that there is that potential fallout People are increasingly talking about something called "fair trade". That also has an old meaning—ensuring fair access to markets in developing countries—but it is now being twisted. The President of the USA is redefining "fair trade" to talk about "fair" support for his national industries, which is interesting because it is a way of trying to make protectionism look like fair trade and free trade. It is important that we remember that these words are now being twisted. It is important that the Government are clear about what is meant. Let us forget for a minute the lingo and think about what we want to achieve through these agreements for our domestic economy and for our domestic security. That issue came to light specifically when the Hinkley Point contract was reviewed. In the end it was affirmed and it is going forward, but there is an issue about security, which we have not yet referred to in this debate. We need to consider whether there are key infrastructure areas that we believe should never be in foreign ownership. Would we like to see the BBC or BT owned by China or Russia? I do not think so, but it would be helpful if the Government made that clear So let us get rid of the labels. We must look at what the Government really want to do and have some clarity for industry. I have two significant ceramics businesses in my constituency and they are concerned that the TRA and the future protection will not be enough. Looking at this industry sector by industry sector is going to be important In conclusion, I do not agree with the solutions put forward by the Opposition because, given the speed required, the Henry VIII powers are necessary. Indeed, exactly the same conditions applied under the European Communities Act 1972. I do think, though, that there would be some benefit to the country were the Government to clarify exactly what their trade policy is. They should consult industries to find out where the opportunities are, so that we maximise rather than minimise the real win-win here. We should also put in place clear guidance on what we will do to support retraining. Of course there will be cost-benefits for consumers and higher salaries, but it would be wrong to ignore the fact that there will be a few losers, and we need to look after them We should never forget that trade agreements are not for the Government to determine on their own; they are also for the third parties with which we enter into agreements. International trends are moving and the notions of fair trade and free trade are parting company, depending on which part of the world one considers. Let us have some clarity from the Government. The Bill is a good start, but let us now have a little detail about how their ideas will be taken forward.