G20 — House of Lords, 2017-07-10
Topic: Foreign Trade
Angela Smith (Labour, Centre-left): My Lords, from a number of reports I have read, this seems to have been quite a challenging G20 meeting, but the Prime Minister’s Statement strikes an extremely optimistic note about future trade relationships—she spoke about "exciting opportunities". It is clear that, for her, our role in the global economy and trade relationships and trade deals following Brexit were high on her agenda The Statement refers to the bilateral meetings with America, Japan, India and China. We have had reports of that meeting with President Trump. I understand that the Prime Minister claimed to be "optimistic" that President Trump could be taken at his word regarding a swift trade deal with the UK. Let us remind ourselves of what President Trump said, because, as we know, he never knowingly understates a case: "There is no country that could possibly be closer than our countries. We have been working on a trade deal which will be a very, very big deal, a very powerful deal, great for both countries and … we will have that done very, very quickly" Yet the experienced Canadian negotiator who dealt with the Canada-US trade agreement described that statement as "political puffery". As well as understanding the complexities of international trade deals, the President would have to consult Congress, which would have to take at least six months to consider the issue. Is that the Prime Minister’s understanding as well? It would be helpful to have some clarity and detail about those discussions, as well as about the timescale that the Prime Minister discussed with the President given his quite emphatic statements. We also need assurances that, in her eagerness to ensure a deal, we do not negotiate away the protections that we have gained—for example, for the environment, for employees and for food safety—that have served this country well Many of us may have heard the report a few weeks ago on Radio 4—I think that it was on the "Today" programme—about American poultry farmers who, post Brexit, want to export their chickens and turkeys to the UK. US standards allow chemicals in production that we in this country do not consider safe or appropriate. We have to maintain our high standards, so assurances on that issue would be welcome Is the noble Baroness able to provide some more information on the other bilateral discussions with Japan, China and India, which do not seem to have received the same attention? At the last G20 meeting in September, following our bilateral with Japan, the Japanese Prime Minister issued a 15-page document on its specific concerns regarding a trade relationship. When the Japanese returned to the bilateral at this meeting, did they discuss that document and have those concerns been addressed? Last time, the Prime Minister was unable to say whether they had discussed car manufacturing. Is the noble Baroness able to do so today, particularly with reference to any financial assurances that have been given for the post-Brexit era? Also, the Statement referred to a meeting today—not at the G20 but today—and discussions at No. 10 with the Australian Prime Minister. I am not quite sure why that is in the Statement: it does not seem any different from the casual assurances and statements made at last year’s meeting, but seems to be just a repetition of an ambition, at some point in the future, post Brexit, to do a trade deal. Can the noble Baroness tell us what those discussions were today and why that is in the Statement Staying with trade issues, the Statement refers to the risks created by the dumping of steel on global markets. One report at the weekend said that UK officials acted as a go-between during the disagreement between the US and China over the alleged overproduction of steel. The Statement refers to calls to remove excess capacity in steel from global markets. The noble Baroness may recall that the steel industry in this country was desperate for the Government to back European intervention to protect our steel industry from being destroyed by imported steel, yet the UK Government at that time refused to act. Therefore, I am curious now about the role the UK played as a so-called go-between. Can she enlighten us on that On economic issues, the declaration raises a number of matters under the heading "Building Resilience". Mark Carney, who is also the chair of the G20 financial stability board, has warned about the continued economic risks to the UK banking sector. While the UK’s financial stability remains resilient, there are a number of worrying trends; specifically, the increase in consumer credit, which at more than 10% is outstripping household income. The ratio of household debt to income is high by historic standards. Is this the case across the G20, and was this considered at the summit On counterterrorism, which was the first issue the Prime Minister raised in her Statement, the noble Baroness will be aware that I have returned to this issue many times to express concerns about how our leaving the EU improves our serious and organised crime and counterterrorism operations and investigations. Obviously, we welcome any successful co-operation on counterterrorism, including tackling the funding of extremism. In the Statement the Prime Minister says that: "The UK is leading the way" Does she understand and recognise that part of leading the way is through the co-operative work we lead and are part of within the EU? What consideration has been given to post-Brexit negotiations on this issue? Given that the Statement refers to tackling the funding of such activities as being key—the noble Baroness will be aware that this issue has also been raised many times in your Lordships’ House—when will the Government release the report into the foreign funding of extremism and radicalism in the UK? Before she met President Trump the Prime Minister said she would raise with him his personal attacks on Sadiq Khan, the Mayor of London. The President’s attacks on the mayor on Twitter were extraordinary. What the mayor said, in reassuring people after the horrific terrorist incident in London, was "You have no need to be alarmed about additional police and armed police on our streets; they are there for your safety". This was a perfectly reasonable and responsible comment to make. The President attacked him constantly on this on Twitter and the Prime Minister said that she would raise that directly with the President. Did she do so? The Observer newspaper reported that she failed to do it. If that is true, and given that she said she would, can the Minister assure us that she is seeking another opportunity to do so? The mayor was speaking and acting for Londoners at a difficult time and should not be attacked for doing so by a foreign leader Finally, my favourite film is "Casablanca". Bear with me—it might not seem relevant but I am getting there. One of my favourite scenes, and the saddest, has Rick saying goodbye to Ilsa at the airport as she leaves with her husband to continue their work trying to save France from the Nazis. Rick tells her not to worry, saying, "We’ll always have Paris". When the Paris agreement on climate change was signed last year, to great acclaim, I am sure that I was not the only who thought of that scene. To protect the world from climate change, we’ll always have Paris. But will we? Nineteen of the 20 countries remain committed. But President Trump’s rejection is a bitter blow. In the Statement, the Prime Minister said that she raised this personally with President Trump but I understand that she did not raise it in the bilateral, which was the appropriate and proper place to do so. So how and when did she raise it? I hope it was not an informal chat over a cup of tea later on. It is all very well being "dismayed", as the Prime Minister said in the Statement, but if our close relationship with President Trump is to be meaningful, it has to be two-way and it has to have an honesty about it. If she did not discuss it with the President in that informal meeting, did she talk to, support or advise President Macron in any way, and thank him for taking a lead on this issue? What are the implications of the US rejection of the agreement?