Transatlantic Trade and Investment Partnership

Debate between Robin Walker and Lord Spellar

Thursday 15th January 2015 Commons Chamber

[Mr John Spellar (Warley) (Lab)]

I congratulate my hon. Friend the Member for Swansea West (Geraint Davies) not only on securing the debate but on making it clear in his introduction that he is in favour of trade, and free trade. However, I think he must also accept that he is in some strange company with that particular argument. Many of those campaigning on this issue are definitely not in favour of trade, and I have been on public platforms where they have actually declared as much. I think that they are also against capitalism, and they are definitely against anything to do with the United States. It is interesting to note that, whereas we have a huge number of trade agreements, this issue has only become contentious when the United States has become involved.

We are talking about the creation of a free trade area and a trading and investing bloc amounting to about half the world’s GDP. That is significant to all of us who argue strongly that engagement in the European Union as part of a wider market is enormously important to working people in this country. Engagement in that much wider market, and, in particular, setting better benchmarks for world trade, is also enormously important, but it does not seem to have any impact on organisations such as 38 Degrees. Like other Members who have spoken, I have a slightly ambivalent attitude to 38 Degrees. It has some very decent supporters, many of whom are very concerned and engaged citizens, but it also has a nihilist, hysterical leadership.

[Mr Robin Walker]

I should just like to put on the record—

Commonwealth Trade

Debate between Robin Walker and Lord Spellar

Wednesday 12th December 2012 Westminster Hall

[Mr Robin Walker (Worcester) (Con)]

I apologise, Mr Turner, for not giving advance notice that I wish to speak in this debate, but having heard two such excellent speeches from two Members whom I greatly respect and who talk a great deal of sense on this issue—my hon. Friend the Member for Romford (Andrew Rosindell) and the right hon. Member for Birkenhead (Mr Field)—I was inspired to join in the debate and support some of the points that they have made.

Commonwealth trade is something about which we can both take lessons from the past and look to the future. Fundamentally, it is about Britain’s place in the 21st century and the opportunities and some of the risks, which the right hon. Member for Birkenhead pointed out, facing Britain’s place as a trading nation.

I have always believed that, because we are more externally facing and have greater links across the world than any other country in Europe, there are great risks in tying ourselves too closely into a European trading bloc to the exclusion of all else and that inevitably the process of closer union in Europe leads to compromises. Britain’s position as a trading nation with very strong external links throughout the Commonwealth and with other parts of the world, such as Latin America, can be compromised by compromising too far with our European neighbours, so I strongly support the case that my hon. Friend the Member for Romford has made.

[Mr Spellar]

Why does the hon. Gentleman think that membership of the EU constrains us in trading with the rest of the world, when Germany manages—dramatically successfully—to trade with the rest of the world? The last time that I looked, Germany was a member of the EU and even of the eurozone.

[Mr Walker]

It is absolutely true that it is possible to export to the rest of the world as a member of the EU—I do not deny that in the least. However, the EU puts up trade barriers, many of which have disadvantaged Commonwealth countries over the years. For example, in the famous banana wars, Commonwealth imports were seriously disadvantaged by European action, and that directly affected Britain’s relationships with some of its Commonwealth neighbours.

[Mr Spellar]

Surely, the banana wars were about regulations under the general agreement on tariffs and trade. Banana producers in former British and French territories were having problems with bananas produced by American companies on massive central American plantations; that had nothing to do with the EU—it was a general agreement on tariffs and trade issue.

[Mr Walker]

I am afraid I have to disagree with the right hon. Gentleman. Furthermore, by bringing some of their overseas territories into the European network, the French have been able to benefit them in a way that we cannot benefit members of our Commonwealth. We therefore need the flexibility to trade more freely.

Interestingly, this is not a new debate. In fact, I looked the issue up in Hansard, and I hope Members will indulge me if I read part of a speech by a former Member for Worcester:

“I suggest that it is the urgent duty of Her Majesty’s Government to pay far more attention to the markets of the Commonwealth than they have done in the past. I certainly feel that there has been something of a negative attitude towards the Commonwealth markets. There has been a tendency”—

this was when Britain was outside the Common Market, but trying to join—

“because we have been closed out of the Common Market, to call the Finance Ministers of the Commonwealth to this country not to discuss and formulate a vigorous policy for expanding our trade with the Commonwealth but to discuss the concessions which they may be willing to make to get into the Common Market countries. This is a matter which, I believe, has contributed to this large fall in the proportion of Commonwealth trade enjoyed by this country. In fact, it would appear that we are beginning to give away the substance of Commonwealth trade for the potage of possibilities elsewhere.”—[Official Report, 20 April 1961; Vol. 638, c. 1434-35.]

That Member happened to be my father, and that was his maiden speech in 1961. If we had taken a different route, as my hon. Friend said, we might be trading far more successfully with the Commonwealth today.

We need to look at the 21st-century world and at the rising powers in it, and we need recognise that the opportunities and challenges that we face are profoundly different from those in 1961. Europe is no longer such a large part of the world economy, and one of the rising world powers is India, which is a member of the Commonwealth. Britain therefore has an extra interest in trading with the Commonwealth and in breaking down some of the barriers to Commonwealth trade. We must recognise, however, that we no longer rule the roost when setting the Commonwealth’s rules. As we set out to increase Commonwealth trade and to work more closely with other Commonwealth countries, we must recognise that many of them have as much right to have a say in the process as we do. We should encourage and support other Commonwealth countries—particularly India, which stands out as one of the world’s emerging superpowers—to play a more active role in promoting the opportunities that would benefit us all.

The right hon. Gentleman mentioned the importance of education. In his speech in 1961, my late father talked about the importance of creating a Harvard business school for Commonwealth business executives, so that we could have more Commonwealth-minded business people carrying out trade. There is a real opportunity in that regard. I recently visited China, which is not of course a member of the Commonwealth, and saw the work a university in my constituency is doing to bring rising people in the local civil service over from China, train them and send them back. That created enormous good will, and when I took a business delegation there—I refer to my entry in the Register of Members’ Financial Interests—there were huge trade opportunities. We should look to do such things throughout the Commonwealth, especially given the enormous advantages offered by a common language and a common legal system. I therefore strongly endorse the point about the jubilee scholarships, which I should like to be taken even further to open up such opportunities.

We have an exciting opportunity to position Britain better in the 21st century and to work with some of the world’s fastest-growing economies and rising powers. We should not turn our back on Europe, but we should recognise that we are stronger if we have multilateral relationships in many different directions, and if we complement our trade with our European partners with trade throughout a world that is rapidly changing and in which the centres of economic power are shifting.