EU Trade Agreements: Replication

Debate between Richard Graham and Liam Fox

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

As ever, I am grateful to the hon. Lady for her question. On the UK’s trade, 48% of our trade is with the European Union and 52% with the rest of the world. Of the rest of the world trade, around 11% occurs under EU FTAs. Of the 40 or so agreements, five represent 76% of the 11%, and the bottom 20 represent less than 0.8% of 1%. Therefore, there is very clear advantage in getting those larger agreements across the line first, and we are making excellent progress in that regard.

[Richard Graham (Gloucester) (Con)]

There are two groups in this House who underestimate the value of free trade agreements. The first includes those Opposition Front Benchers who did not vote for them in the first place and whose leader believes that free trade agreements benefit only multinationals at the expense of everyone else. He should try explaining that on the workshop floor of some of the small and medium-sized manufacturers in my constituency of Gloucester that export around the world. The second group are some Conservative Members who believe that leaving the EU with no deal will be no problem. Will my right hon. Friend confirm that, in the event of no deal, the tariffs that will come into play with the EU will be devastating for farmers and manufacturers and all the rest of the 148,000 companies that export only to the EU and that the simplest way to take this risk off the table is for everybody to get behind the Government’s withdrawal agreement Bill and make sure that all these deals are rolled over without problem?

[Dr Fox]

It seems that the country is caught between the irrational pessimism of those who fail to be reconciled to the referendum result and believe that everything to do with Brexit will be disastrous for the UK and those who are irrationally optimistic that it would be no problem whatever to leave the European Union with no deal. The truth is that we would be better off with a deal, which is why the Government want to get that deal with the European Union across the line. I still urge Opposition Members to support it. If we do not achieve it, we will end up with the uncertainties that they have identified today.

European Union (Withdrawal) Act

Debate between Richard Graham and Liam Fox

Monday 14th January 2019 Commons Chamber

[Dr Fox]

I have already given way to the hon. Lady and I will not do so again.

This was further confirmed by the last general election in which the two main parties, comprising over 80% of the total votes cast, promised to respect the referendum result. Let us imagine that a second referendum were held in which the remain side won, perhaps with a narrow majority but with a lower turnout. Leave supporters like me could well begin demanding a third referendum, a best of three. Where would the process actually end? We have had a people’s vote and we need to respect the people’s vote. Another referendum would not settle the issue or heal our divisions—quite the opposite. It would further divide our already fractious country at a time when we need to come together.

There is also the constitutional issue. If we overturn this referendum result, we will be setting a precedent that could be applied to other referendums too. Furthermore, a second referendum would create prolonged, not diminished, political and economic uncertainty.

[Richard Graham (Gloucester) (Con)]

Is not the point about the future trade relationship and the opportunities for global Britain that without this withdrawal agreement there can be no negotiation with Europe, whether to achieve a Canada-plus solution or any other solution? The danger with no deal is that without an agreement at the beginning, we would never be able to structure a future free trade agreement with the European Union.

[Dr Fox]

As usual, my hon. Friend makes a very good point very clearly. There are, across the House, a number of potential destinations that Members want to see: a Norway-type option, EEA-plus, a Canada-style agreement or FTA-plus. What they all have in common is one thing: there needs to be a withdrawal agreement before we are actually able to have any of them. That is why this particular deal is so important.

European Union (Withdrawal) Act

Debate between Richard Graham and Liam Fox

Thursday 6th December 2018 Commons Chamber

[Dr Fox]

I will not give way again.

The Government have made it clear that we want to take a balanced approach to the question of our future trading prospects. We acknowledge the need to maximise our access to the EU market, but without damaging our potential to benefit from the emerging trade opportunities in other parts of the world. I remind the House that the International Monetary Fund has said that 90% of global growth in the next five years, bringing its forecast forward, will occur outside continental Europe.

Ambitious arrangements have been made in the political declaration for services and investment—crucial to this country—arrangements that go well beyond WTO commitments and build on the most ambitious of the EU’s recent FTAs. But we have also been clear that our future relationship with the EU would recognise the development of an independent UK trade policy and not tie our hands when it comes to global opportunities. The 27 nations of the EU constitute some of our largest trading partners. As a whole, some 44% of this country’s exports of goods and services still go to the EU, although that proportion has diminished somewhat over the past decade or so. We have set out an approach that means the UK would be able to set its own trade policy with the rest of the world, including—let me be very clear—setting our own tariffs, implementing our own trade remedies and taking up our own independent seat at the World Trade Organisation. It is at the WTO and like bodies that proper global liberalisation is likely to take place. In an economy that is 80% services-orientated, the liberalisation globally of services will have a far greater impact on the future prosperity of the United Kingdom than anything that is likely to be done on a bilateral agreement in goods, which has largely been liberalised over the past 20 or so years.

Britain is well prepared for a global future. No other country has the same combination of fundamental strengths, which will allow us to thrive in an age where knowledge and expertise are the instigators of success. The inward investment into this country in recent months is testament to that. Not only have we maintained our place in global FDI—we have improved it. According to the UN, in the first six months of 2018, Britain was second only to China and ahead of the United States in terms of inward investment because of the strong economic fundamentals of this country that have been set down since 2010 by the Conservative Government. Our export and investment performance shows that the sceptics have been wrong and that Britain is flourishing. The divisions of the referendum now need to be consigned to the past. It is time to set aside our differences and lead our country to a future of freedom, success and prosperity.

Let us be clear about one thing. There are those who claim, and it has been claimed today, that Parliament can override the result of the referendum because Parliament is sovereign. I say this to them: on this particular issue Parliament subcontracted its sovereignty to the British people when it said, “We cannot or will not make a decision on this particular matter. We want the people to take this decision and issue an instruction to Parliament.” The people of this country made that decision and issued that instruction. If we want to retain the public’s faith in our democratic institutions, it is time for Parliament to live up to our side of the bargain. In politics, we cannot always have the luxury of doing what we want for ourselves, but we always have an abiding duty to do what is right for our country. I commend this motion to the House.

Ordered, That the debate be now adjourned.—(Gareth Johnson.)

Debate to be resumed on Monday 10 December (Order, 4 December).

[Richard Graham]

On a point of order, Mr Speaker. Earlier, I intervened on the hon. Member for Dundee East (Stewart Hosie) to make a point about the difference in sentencing by courts of EU nationals and those from other countries. I want to make it clear that I intended no disrespect to European nationals, but I made the point clumsily—I illustrated it clumsily. I therefore want to apologise to anyone who took offence. I promise the House that that was absolutely not intended.

Oral Answers to Questions

Debate between Richard Graham and Liam Fox

Thursday 13th September 2018 Commons Chamber

[Dr Fox]

We spend a great deal of time doing so, and in fact I was deeply encouraged by the welcome that we received for the export strategy from the FSB, the chambers, the Institute of Directors and the Confederation of British Industry, who do not share the Labour party’s anti-trade, anti-capitalist, anti-wealth agenda. The Labour party increasingly seems to see the model it prefers for Britain as the Venezuelan model.

[Richard Graham (Gloucester) (Con)]

5. What progress his Department has made on the UK’s potential accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

We are preparing ourselves to be able to take a decision on potential CPTPP accession in the light of the ongoing public consultation and the process of accession for new members being established. We are also undertaking further work to understand the opportunities that CPTPP presents, including by engaging with existing members.

[Richard Graham]

I share the Secretary of State’s enthusiasm for the potential of the Trans-Pacific Partnership and greater trade with the countries of the Pacific rim in general. Will he confirm that nothing in the proposals currently being negotiated with the EU would prevent our being able to accede to the TPP? Does my right hon. Friend agree that although it is of course entirely for Malaysia to decide its role in the TPP, both its involvement and our accession would be good for all involved?

[Dr Fox]

The CPTPP states currently account for more than 13% of global GDP—they comprise a combined GDP of around $11 trillion. Their economies are projected to grow to more than $14 trillion by 2023. It is self-evident that if Britain is able to take advantage of growing markets, a country that has a much more ambitious export strategy can benefit hugely. Malaysia will be able to take advantage of the improvement in our bilateral trade.

US Steel and Aluminium Tariffs

Debate between Richard Graham and Liam Fox

Monday 4th June 2018 Commons Chamber

[Dr Fox]

The right hon. Lady is absolutely correct that if we are to get a change in US Government policy, the most effective pressure will come from US business and the US Congress. I was very heartened to hear Chairman Brady of the Committee on Ways and Means making exactly these points yesterday—if American input prices rise, output prices will rise, and that is likely to hinder, not help, the problem with the American trade deficit. I hope that our colleagues in Congress will listen to the views being expressed clearly on both sides of the House and make those points accordingly.

[Richard Graham (Gloucester) (Con)]

When there was a sharp exchange on trade between China and the US recently, it was resolved surprisingly quickly. Does my right hon. Friend see that there are possibilities for a similarly swift resolution to this? If there are not, how confident is he that our voice in the EU will be able to prevent the EU from taking strong retaliatory measures and getting into the spiral of trade wars that he has described?

[Dr Fox]

The EU’s measures are designed to be proportionate and legal so that we can make the case that we have responded to what we believe to be legally dubious moves in a properly legal way, through the rules-based system. That is the appropriate way to go. I do not believe that the EU tariffs are escalatory, and it would be hugely unfortunate if further moves in that direction were made by either the United States or Europe.