Trade Negotiations
Debate between Chris Law and Douglas Alexander(3 days ago)
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Mr Alexander
It has been a feature of the last few months, since the President was elected, that people have thought that trade policy and tariffs are synonymous. My hon. Friend is exactly right to recognise that a growing proportion of trade is conducted electronically. The UK is an almost 81% services-based economy. We therefore have a huge interest in non-tariffs barriers—not just barriers at the border but barriers behind the border. That is an area of focus in the agreement, and one that will require further work, as is appropriate and right. We were working under huge time pressure to address the tariff issue, for the reasons I have set out, but he is entirely right to recognise that we will take forward an ambitious agenda on non-tariff barriers.
Chris Law (Dundee Central) (SNP)
Although a reduction in tariffs is welcome, the past four months have shown the UK Government that President Trump is an unreliable partner, not just in trade but in defence and security, climate and the international rule of law. In contrast, closer relations with our trusted allies in the EU have never been more important. Given that Trump has previously described the EU as “a foe”, “very nasty” and “an atrocity”, will the Minister provide an unequivocal assurance that there are no conditions whatsoever attached to the deal that will constrain the UK’s relationship with the EU, which is the UK’s largest trading partner?
Mr Alexander
I can do no better than refer to the Prime Minister’s Mansion House speech towards the end of last year, when he said clearly that we do not want to have to choose between our friends and allies—between dealing and working constructively with the European Union and with the United States.
On the hon. Gentleman’s broader point, it is important to recognise that the United States is our deepest and strongest defence ally. For the past 80 years—we should remember the day on which we are gathering—the United Kingdom has worked hand in glove with the armed forces of the United States to keep the world safe. I saw for myself, in previous conflicts such as Afghanistan, the extraordinary heroism and courage that American service personnel brought to bear alongside British personnel, so it is right to recognise that, as well as taking forward this economic agreement, there is a strong and enduring security foundation to the relationship between the United States and the United Kingdom. All that said, of course we stand ready to work with the European Union as we look ahead to the UK-EU summit on 19 May.
The hon. Gentleman asks whether there are any conditions. The single biggest concern expressed by many commentators related to SPS, given that that was one of the key agricultural areas on which the previous Government foundered in their negotiations with the first Trump Administration. That was a red line for us in these negotiations—a red line that I am glad to say we have protected.
Trade Negotiations
Debate between Chris Law and Douglas Alexander(5 days ago)
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Mr Alexander
I can indeed. I said that this is a modern, forward-looking agreement, and that is why there is a recognition in the deal of exactly the values my hon. Friend mentions. That represents a first for India in many cases, it reflects the fact that we were determined to secure that as part of the negotiations, and it is one of the many reasons we are proud of the agreement announced today.
Chris Law (Dundee Central) (SNP)
Today’s trade deal announcement will be welcomed by many in Scotland, not least those in the whisky industry. In the face of volatile US tariffs, this is undoubtedly good news. However, there has been increasing pressure in the UK—even from the former Prime Minister Tony Blair—for the Government to abandon their net zero ambitions. I understand that carbon mechanisms were crucial in these trade negotiations with India. Given that the SNP Government have today reaffirmed their fullest commitment to net zero and sustainable industries, can the Minister give his reassurance that the UK Government’s climate ambitions have not been sacrificed to secure this deal?
Mr Alexander
I can give the House that assurance. I thought we were going to have an uncharacteristically warm endorsement from the hon. Gentleman until he got to the word “however”. I have to say, we have been so busy negotiating a trade deal with India that we have not had the chance to read the First Minister’s “Programme for Government” today. In the spirit of generosity, he pays tribute to the work that has been done on whisky, and I will read out the statement by Debra Crew, the Diageo chief executive, who said:
“The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.”
I could not have put it better myself.
Oral Answers to Questions
Debate between Chris Law and Douglas Alexander(1 week, 3 days ago)
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Mr Alexander
Having worked so closely with former Prime Minister Gordon Brown over a number of years, I am probably the last person in this Chamber who needs to be convinced of the economic significance of the Rosyth dockyard. As my hon. Friend knows, I have recently had meetings with Babcock’s executive team, both in London and abroad. Due to commercial sensitivities, I cannot discuss details of the deal to which he has referred. I am grateful for his recent letter to the Secretary of State on this matter; a response was issued yesterday. He can be fully assured that the Government value the defence relationship with Sweden and fully recognise the importance of defence industrial partnerships between the United Kingdom and Swedish companies. They contribute greatly to our defence and growth objectives.
Chris Law (Dundee Central) (SNP)
Food and drink is one of Scotland’s most successful industries, and it is worth £15 billion to the economy. Over the coming months, the UK Government face a choice in their trade talks with the EU and US: do we align our food and farming standards with those in the EU, or reduce our quality standards at the behest of the United States? Will the Secretary of State guarantee that Scotland’s food and drink industry will not be jeopardised through desperation to satisfy the demands of, and secure a deal with, Donald Trump?
Mr Alexander
At exactly this point tomorrow morning, I will be visiting a farm in East Lothian, so I can assure the hon. Gentleman that I am fully aware of the importance of food and agriculture to the Scottish economy and, more broadly, to the UK economy. I also respectfully refer him to the Labour manifesto at the last general election, which made very clear our commitment to maintaining important standards.
Chris Law (Dundee Central) (SNP)
Modelling by the Scottish Government has shown that Brexit-made barriers are likely to have reduced Scottish exports by £3 billion, compared with continued EU membership. Greater co-operation and a closer relationship with the EU will always be encouraged by SNP Members, but does the Secretary of State recognise that anything short of full single market and customs union membership continues to damage Scotland’s economy?
Mr Alexander
In substantive terms, the hon. Gentleman’s point is important: we should be looking to reduce unnecessary barriers to trade between the United Kingdom and our friends, neighbours and partners in the European Union. However, on a political level, it is worth recognising that, had Scotland voted in 2014 to leave the United Kingdom, it would also have left the European Union. There is a certain irony in being told that a politics of flags, borders and manufactured grievances are wrong in one context, when his party continues to argue for them in another.
US Steel Import Tariffs
Debate between Chris Law and Douglas Alexander(3 months ago)
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Mr Alexander
In terms of being willing to make the big fiscal choices, we have committed £2.5 billion of public money since July to support the steel industry, with resources being funnelled in part through the national wealth fund. I can assure my hon. Friend that we have already been willing to put money, as well as commitment, behind the steel industry. He is absolutely right to recognise the strategic significance of this industry, not just on its own terms but much more broadly to the manufacturing capability of the United Kingdom. He has alluded to the risk of trade diversion, given the potential remedial action taken by other trading blocs, so I also want to assure him that we have protections that will remain in place until 2026. There are safeguards in place in relation to trade diversion, as well as the UK’s ability to act independently.
Chris Law (Dundee Central) (SNP)
I have listened very carefully to what has been said this morning. We have known since November that this was coming, even though the press were saying that we would somehow get a special relationship. What is clear today is that Trump shows strength towards countries that are in a position of weakness, which is where the UK currently is. Is it not now time for this Government to think very seriously about being back in the EU, where there is strength against strength through the customs union and the single market? We do not know what else is coming down the line, and Scottish businesses need to know the future—it could be whisky, it could be fish or it could be manufacturing. Can the Minister give us some assurance about how he will stand up to the strength of global protectionism?
Mr Alexander
In terms of an understanding of Scottish business, again I should probably declare an interest, given that the Glenkinchie distillery is in the Lothian East constituency. Only this morning, I met with Chivas Regal and Diageo, so I can assure the hon. Gentleman that I am fully aware. Certainly, no one party should claim to speak for Scotland, or for Scotland’s businesses.
As for the United Kingdom’s departure from the European Union, it is no secret that I was a remain campaigner and wanted the United Kingdom to stay within the European Union in 2016. I would gently point out to the hon. Gentleman that had his party been successful in its endeavour to break up the United Kingdom in 2014, the direct and immediate consequence of that choice would have been Scotland’s departure from the European Union.
Oral Answers to Questions
Debate between Chris Law and Douglas Alexander(6 months, 1 week ago)
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Mr Alexander
Frankly, businesses in Scotland have been let down by two failed Governments. We have had a decade of division and decay in Scotland, and I am glad to see that we now have political stability, with Labour having a majority in Scotland, Wales and England. At the same time, we are committed to genuine partnership and working with the Scottish Government. I know that my hon. Friend has particular expertise in energy policy, given his past professional work. Tomorrow I will be in Torness, in my constituency, to meet EDF Energy—just one example of a business that, frankly, is being held back by the policy and approach of the present Scottish Government.
Chris Law (Dundee Central) (SNP)
I am not surprised in the slightest to hear the disparaging comments from those on the Government Benches about business in Scotland, so I will bring the House up to speed. For the ninth consecutive year, Scotland, under the SNP Scottish Government, is the UK’s top-performing area outside London for foreign direct investment, yet Brexit has reduced the attractiveness of the UK as a base for exporting to EU markets, resulting in its being overtaken by France as the leading destination for foreign direct investment in Europe. Does the Minister recognise that reversing what he seems to be married to at the moment—the Tories’ hard Brexit—is the most significant step that this Government could take to increase inward investment and boost growth in Scotland?
Mr Alexander
As I was saying, let me deal with both the failed Governments who have been letting Scotland down in the last decade. Frankly, if the hon. Gentleman wants to advance the case that there has been a decade of prosperity in Scotland, good luck to him. The reality is that it is very hard to think of a single aspect of Scottish public life that has improved over the last 10 years. Take the case of ferries. Take the case of hospitals. Take the case of our schools or, indeed, the broader business environment.
On Brexit, I recognise that there is a need for a fundamental reset with the European Union, and in recent days I have been taking forward that work. I welcome the work that the Prime Minister has been undertaking, but that is the task of a Labour Government. As so often on so many issues, the SNP talks and Labour delivers.
Chris Law (Dundee Central) (SNP)
The International Court of Justice judgment from 19 July this year ruled that it is the duty of third-party states not to aid or assist Israel’s “unlawful occupation” of Palestinian territory. In the light of this, will the Minister tell us whether the Department for Business and Trade has obtained legal advice, or whether it is in the process of doing so, on the legality of the UK’s existing trade relations with Israel, and if it has, will he share it with the House, please?
Mr Douglas Alexander
I can assure the hon. Gentleman that we work closely with our colleagues in the Foreign, Commonwealth and Development Office who are responsible for the international humanitarian law assessment. My good and right hon. Friend the Foreign Secretary has updated the House on the changed advice received by the Government, and I think that I should leave it there.