Transatlantic Trade and Investment Partnership — House of Commons, 2015-01-15
Topic: Foreign Trade
Margot Cathleen James (Conservative, Centre-right): I congratulate the hon. Member for Swansea West (Geraint Davies) on securing the debate and agree about the ongoing need for scrutiny of this and other important trade deals The US is the UK’s biggest single trading partner, accounting for nearly £90 billion of exports in 2013. With both economies doing so well, the opportunity afforded by TTIP has huge potential, with the right safeguards in place, for growth on both sides of the Atlantic At present, a lot of non-tariff barriers, as well as tariffs, are making it impossible for some companies—and far too difficult for others—to export to the US. The food and drink industry is our largest manufacturing sector, but many of its brands are too little seen in American supermarkets. The cost for food and drink companies in complying with US tariffs and regulations is equivalent to a tax of 13%. That is the tip of an iceberg that the trade negotiations are seeking to address. As other Members have said, if successful the trade agreement will generate GDP growth of £10 billion a year to the UK In my region, the automotive industry alone estimates that its exports to the US would grow by £1.4 billion more than would be the case without a deal. Production would increase by 7%, which would create jobs in the supply chain to the bigger companies that are so important to my constituency Building exports to the US is a sure-fire way to create growth and jobs. Last year I visited a company called Vee Bee Filtration in my constituency. Some 90% of the filtration systems it manufactures are exported, mainly to the US. It got started in the US with help from UK Export Finance in 2012, and since then sales have grown exponentially The growth that will be generated by a free trade agreement will benefit not just companies big and small, but employees, people taking up new jobs, families and consumers. The benefit in money terms to households in my constituency is estimated to be the equivalent of £400 a year Many of my constituents travel to the US for work and pleasure, and they often express frustration at how much cheaper consumer goods in many sectors are there. So far, I have talked about the benefits in terms of increased exports, but there are benefits for consumers from the potential removal of EU tariffs on American goods in that cars imported from the US would be 10% cheaper and jeans would be 12% cheaper. A free trade agreement, properly negotiated, will improve people’s standards of living in many ways, so it is very important to overcome any barriers to its successful conclusion I am not complacent about the difficulties. I agree that the negotiations should be subject to ongoing scrutiny. I have mentioned that the food and drink industry faces particularly costly barriers. I want the elimination of tariffs, but it is important to do so without jeopardising food safety, or the rights of Governments to establish public health policies, such as to prevent the increased use of trans fats in packaged foods Some of my constituents have raised concerns about the possible impact of TTIP on public services, particularly the NHS. I commend the right hon. Member for Wentworth and Dearne (John Healey) for his work as chair of the all-party group on TTIP, and for the reassurance he sought and has received directly from the European Commission on many points The Commission has confirmed that existing EU bilateral trade agreements either exclude or make specific reservations for the delivery of publicly funded services. Furthermore, the letter to the right hon. Gentleman reassured us that all member states are free to maintain measures, and even to adopt new ones, to control access to their health service by foreign suppliers—without constraints—under existing EU trade agreements. The Commission has confirmed in writing that the EU will not change its approach to health services in negotiations for TTIP. The provision of publicly funded health services will not be affected by the ISDS regime either. The Commission has guaranteed the rights of Governments to legislate in the public interest and to prevent unjustified claims. Virtually all of our 94 bilateral investment treaties include an ISDS regime, and the UK Government have never lost a case brought under the regime. Many safeguards are therefore already in place Members should be more positive about the benefits in jobs, growth and the standard of living of our constituents that TTIP offers, and they should grasp this opportunity, but with open eyes.