Global Britain
William Cash Excerpts(4 years, 3 months ago)
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Mr Steve Baker (Wycombe) (Con)
The title of this debate seems to be shorthand for the United Kingdom taking up its separate and equal status among the nations of the world, and everything that that means. As we approached this debate, people might have been asking, “What would it look like if Brexiteers had thought in advance about Britain’s global future? What would it mean if we had had a comprehensive analysis of every area of relevant policy that would change as we left the EU? What would it mean if we had actually drawn a picture of what Britain’s future would look like if it was global?” What if we had set out:
“Why the EU needs to Change
The Change we need
How Britain would gain influence outside an unreformed EU
How Britain would prosper outside an unreformed EU”?
What if we had then brought it together in a substantial conclusion.
I do not suppose, Madam Deputy Speaker, that you will allow me to read 1,030 pages into the record, but for anyone who thinks there was no plan, and that Brexiteers had not thought through what it would mean to leave the EU and where we wanted to go, I encourage them to Google—or use their preferred search engine to search for—“Change, or go” by Business for Britain, which was published before the designated period of the referendum began. I am very proud of that document. I recently revisited it to see what it said about trade policy, and I think it stands the test of time. I am sure it contains something I will not agree with, something outside the boundaries of the manifesto, but anyone with a fair, objective mind should understand that we have always been clear about where we wanted to go.
This really matters, because ideas inform action, and both ideas and action are guided by values. At the heart of the difficulties we have faced recently is the fact that too many people have not understood our values. Brexiteers, people like me, are liberals of the old kind: open and tolerant, and believers in a diverse society, one that makes progress. For a long time, I was in favour of the European Union as it was, including, at one point, the euro. Why did I change my mind? It was because of Gordon Brown going off and signing that Lisbon treaty on his own, trying almost to hide what he was doing. I came to realise that democracy was under threat. When I recall how I felt at the time of the Lisbon treaty, watching the European constitution being hammered through, positively against democracy and with a refusal of a mandate, I remember fear and anxiety. I remember that I was concerned for the future of the country.
I therefore listened to the concerns of our opponents—the opponents of Brexit—expressed in the past few years. I have listened to them with considerable sympathy. Today it is incumbent on all Brexiteers to manufacture consent for what we are doing, to recognise that we have won: we have the Prime Minister we wanted and the policy we wanted, and the majority in the House of Commons necessary to give the Prime Minister the power necessary to put that through.
The Prime Minister is a centrist. Anyone objective, looking at our manifesto and our programme for government, will see that he is willing to intervene in the economy, that he wants to be outside the EU but that he is open, liberal, tolerant and turning to the world. I am therefore making an appeal today for grace and patience, for people to be kind to one another, particularly as we approach this celebration. It is difficult to be kind to people when they have been trying to delegitimise election results and referendum results, including the recent election: I heard people talking about first past the post, seeking to delegitimise the result. It will not do to be trying to delegitimise the constitutional arrangements that have served us very well. It is difficult to be graceful to people when they are demonising you, in one case saying that Brexiteers—indeed, the European Research Group—were worse than Nazis. That is a ridiculous comment, yet demonisation has been common. It will not do for leaders of our society to be constantly seeking to demoralise the public, but that is what we have seen. No more—no more demoralisation, no more demonisation of opponents and no more attempts, please, to delegitimise legitimate results.
Sir William Cash (Stone) (Con)
Does my hon. Friend agree that the reason he is so right is that the outcome of the general election, which endorsed the result of the referendum itself, is a tribute to the British people, who made the decision that we should be returned to this House in the numbers that we see?
Mr Baker
Absolutely, and I shall come on to the question having been asked and answered.
Currently, journalists are asking me how I feel about tomorrow, the day of our leaving the European Union. It is, after all, the conclusion of what I have worked for for a good 10 to 12 years of my life—I got into politics because of that fury about the Lisbon treaty—so I should be elated. I should be rejoicing, but I am reminded of Wellington:
“Believe me, nothing except a battle lost is half so melancholy as a battle won.”
I approach tomorrow in a spirit of some considerable melancholy. I very much regret the division that this country has faced. I very much regret the cost of coming so far—the things we have had to do in British politics to get to this point. I very much regret the sorrow that my opponents will feel tomorrow as some are rejoicing on the streets.
I know that we are going to celebrate. I will celebrate—I will allow myself a smile and that glass of champagne and I will enjoy myself—but I will celebrate discreetly and in a way that is respectful of the genuine sorrow that others are feeling at the same time. That means not that I am giving in—it does not mean that I am turning away from what I believe—but that I recognise that all of us on the Government Benches who have won the argument now have a duty to be magnanimous. I urge that on everyone, inside and outside the House, even as we press forward. There are some who take an attitude of “no quarter” after the events of the past few years, and I say to them no, enough. We have to forgive and turn away from what has happened in the past, because we need to create the future that we can all enjoy and be proud of in this country. It is not a future based on past grievances; it is an open and expansive future that embraces the infinite value of every other person, even when we disagree with one another.
I do not wish to make a speech about disagreeing gracefully—perhaps on another occasion—but I do want to pick up on what the Secretary of State said about the battle of ideas raging around the world. She is absolutely right. It is a subject about which I have talked before, and if anybody is interested in my analysis, it is in the pinned video on my YouTube channel. A true conflict of ideas is going on right now—a widespread crisis of political economy—and when we listened to the hon. Member for Brent North (Barry Gardiner) talk through his ideas, some of the difficulties and conflicts about how we go forward in the world were evident in what he said.
I am not going to be critical of what the hon. Gentleman said, but one point that I shall draw out is that so many people, including him, have made a plea for us to comply with the rules-based international order. I want us to do that. I want us to build up the World Trade Organisation—a great multilateral organisation that does not involve having a supreme court with wide-ranging powers to deliver free trade—but I say gently that if we comply with the World Trade Organisation rules, we cannot discriminate against food that is safe to eat, yet there are Members of this House who make both pleas: they plead that we ban American food that is safe to eat at the same time as making a plea for complying with WTO rules. People will have to make up their minds as to what they want to do. I want to respect international institutions—the things we have carefully built up to pursue human flourishing through liberty under the rule of law, not only nationally but internationally.
Draft EU-Canada Trade Agreement Order
William Cash Excerpts(5 years, 10 months ago)
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Dr Fox
I will make some progress.
In parallel with the trade benefits to which I referred, investment in the UK from Canada continues to grow. In 2016, Canada had £18.6 billion invested in the UK and we had £21.1 billion invested in Canada.
As I have said, ratifying CETA is also an important step towards our future trading relationship with Canada as we prepare to take advantage of the opportunities offered by our exit from the European Union. During the Prime Minister’s visit to Canada in September last year, both she and Prime Minister Trudeau reiterated their intention to seek to “transition” CETA swiftly and seamlessly into a UK-Canada deal once the UK has left the EU, and formally announced the establishment of a working group to ensure that the transition was as seamless as possible. Officials from our two countries have already begun to meet to discuss that transition. It is important that, as a first step, we prevent a “cliff edge” for British and Canadian businesses.
Of course, while we remain in the EU we continue to support its ambitious trade agenda. Free trade is not a zero-sum game, but rather a win-win. Ratifying CETA will send a strong message about our determination to champion free trade, to seek global trade liberalisation wherever we can, and to support the rules-based international trading system to deliver mutually beneficial outcomes. That is a key part of the Government’s vision of delivering a prosperous and truly global Britain as we leave the European Union—
Sir William Cash
I congratulate my right hon. Friend not only on what he has said today—which is completely correct—but on the fact that the repeal Act to which Her Majesty has just assented reinforces the point that we will now be able to make our own international trade deals under that Act. I congratulate my right hon. Friend and the Government on that achievement.
Dr Fox
I am grateful to my hon. Friend. Of course, our ability to take full advantage of what we have already agreed depends on our passing both the Trade Bill and the customs Bill in this House. If we are unable to do so, we will be unable to provide that continuity for businesses and workers in the United Kingdom, which would be hugely to their disadvantage. I hope that the Opposition will think again about their vote against the Trade Bill on Second Reading, and will give it the fair wind that it deserves during its subsequent stages.
It is important for the UK that CETA is ratified successfully by all EU member states, because ratification by all member states is required for the treaty to enter fully into force. This will give Canadian and EU businesses greater certainty that the agreement will continue into the future.
Areas that were not provisionally applied include a large part of the chapter on investment, including the new investment court system, about which there has been extensive discussion in Parliament and in wider civil society. The UK supports the principle of investment protection, and looks forward to engaging further with the Commission on the technical detail of the investment court system. We support the objectives of obtaining fair outcomes for claims, high ethical standards for arbitrators and increased transparency of tribunal hearings.
I also want to be clear that investment protection provisions protect investors from discriminatory or unfair treatment by a state. This includes protection of UK institutional investors—for example, pension funds—where we have a duty to ensure that individual investments are protected. We have over 90 such agreements in place with other countries. There has never been a successful investor-state dispute settlement claim brought against the United Kingdom, nor has the threat of potential claims affected any Government’s legislative programme.
EU-Japan Economic Partnership Agreement
William Cash Excerpts(5 years, 10 months ago)
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George Hollingbery
Evidently, that is the case, because we are here today discussing exactly that, and there can be no reason to think that that position would not continue beyond Brexit.
Sir William Cash (Stone) (Con)
As Chairman of the European Scrutiny Committee, which recommended that this issue be debated on the Floor of the House, I thank the Government very much on the Committee’s behalf for agreeing to that. It demonstrates that this House of Commons does debate and, if necessary, vote on matters not behind closed doors and with full transcripts. We operate not in the way that the European Union functions but in the proper, traditional Westminster manner, with full transparency. For that reason, I congratulate the Government on holding this debate.
George Hollingbery
My hon. Friend is plainly right: we have debated this matter and are giving it further scrutiny today.
Barry Gardiner
Clearly, while we remain a member of the EU, we have a seat at the negotiating table of any deals. If we are outside the EU, we will not have that, but, equally, we will not have the benefit of being part of a 500 million-strong consumer market that would enable us to negotiate better deals. I am sure that the hon. Gentleman appreciates that being in a new customs union with the EU, as the leader of my party set out in a speech he gave in Coventry a little while ago, would mean that we would be co-decision makers with the EU in that relationship—a customs union not such as the one we currently have with the EU, but one much more like Mercosur, where each of the countries has equal sway.
Barry Gardiner
I will make a little progress and then, of course, I will very happily give way to the hon. Gentleman, because his Committee has raised a number of questions on the EU-Japan deal that we need to explore further. The Committee insisted, in fact, that the Government bring the deal to a debate on the Floor of the House before the EU Council. Interestingly, in the light of the absurdly tight timeframe that the Government imposed on themselves, the Committee also instructed them to publish their impact assessment on the EU-Japan EPA no later than 4 June.
The first question that the Minister must answer then is why the Government failed to meet that deadline. The impact assessment was published a week late, on 11 June, on the same day that this debate was announced. It is an extraordinary document. Its own authors openly acknowledge that the assessment cannot be taken as an accurate guide to the future impacts of the agreement. It failed to calculate the specific effects on individual EU member states. The assessment admits that it cannot know what proportion of any aggregate gains from the EU-Japan EPA might come to the UK or to any other EU member state. There has been no proper independent assessment of the impacts on the UK, and the authors—these are the authors of the assessment—say that they have just had to assume proportionate outcomes in line with the UK’s projected share of EU trade with Japan.
Sir William Cash
I thought I might try to lift this enormous pile of documents to show the House what we are actually considering today; it is really quite formidable. I want to make one point regarding the single market. Does the hon. Gentleman deny that, in relation to our trade with the other 27 member states, we run a deficit of £82 billion a year—these are figures from the Office for National Statistics—whereas our external growth, our external surplus, is growing exponentially and, of course, 90% of all future trading will be outside the EU?
Barry Gardiner
I am grateful to the hon. Gentleman on two counts—first for showing us precisely what we are talking about. I know that he will have read the full EPA assessment, as I have done. I am equally grateful to him for raising the issue of the balance of trade surplus and deficit that we currently run. I am just about to come to that point, so I hope that he can hold off with his remarks.
It is perhaps most damning to quote from the impact assessment document itself, which states:
“Figures presented here reflect the long run impacts per annum and should be treated as a magnitude of change and not a forecast…It is important to note the results below are not based on the final EU-Japan EPA text and are therefore subject to a degree of uncertainty…Estimates are produced against a baseline of 2008 and reflect a world in which the Doha trade round and EU-Korea FTA are un-concluded.”
So there we have it. The baseline is 10 years out of date and fails to take account not only of the EU-South Korea FTA, which has been applied ever since July 2011 —seven years ago—but of the terms of the final agreement text that it is supposed to be assessing.
The European Scrutiny Committee was absolutely right to demand in its report
“a clear breakdown of how different UK sectors and stakeholders are expected to win or lose from the agreement.”
All the independent projections made of the EU-Japan deal calculated that the gains accruing to Japanese firms would be far higher than those seen by European businesses. All the forecasts spoke of major increases in Japanese exports, and the potential loss of jobs and businesses in Europe as a result. The Government assessment has at least picked up on these forecasts, recognising that the UK’s balance of trade with Japan will take a serious hit when this agreement comes into force. Voting to approve this motion will allow the Government to rush ahead and sign a deal that the Government’s own figures show will result in a decline in our trade balance with Japan of between £2.2 billion and £2.9 billion, so the hon. Member for Stone, who chairs the European Scrutiny Committee and asked for the impact assessment to be published, will now see that the effect of this deal is, in fact, to increase our problems in terms of our balance of payments with Japan.
Trade Bill
William Cash Excerpts(6 years, 3 months ago)
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Dr Fox
I will give way later.
Before we can begin to forge new trading relationships, we must act to prevent disruption to our existing trade environment. As the Prime Minister has said, our ambition is to forge a deep and special new partnership with our European friends and allies; we will retain the bonds of friendship, security and trade that have united Britain and Europe for so long. If we want to achieve that, before we leave the European Union we must put in place the essential legal powers and structures that will enable the UK to operate an independent trade policy. That is what our trade legislation is designed to achieve. In this, as in all our legislation, the Department for International Trade will be guided by what delivers the greatest economic advantage to the UK and ensures the continued confidence of our partners and allies.
The Bill contains six delegated powers allowing the Government to make regulations to support and develop their trade policy. Two of the powers allow the Government to amend primary legislation; they relate to ensuring the continuity of EU trade agreements into a UK-only context and to the collection of exporter information by Her Majesty’s Revenue and Customs. Both powers are subject to significant restrictions on how they can be used. The trade agreement continuity powers are limited in scope; in particular, they can be used to amend primary legislation only when it forms part of retained EU law. We intend to use the powers to make necessary amendments to domestic legislation as part of the transition project. By taking those powers, we can be sure that we have the ability to implement efficiently all obligations of existing trade agreements in our new context.
The EU’s trade agreements, which we intend to transition and which are within the scope of this Bill, will have already been scrutinised by Parliament’s EU Committees. Free trade agreements that the UK has already ratified have also been through the normal parliamentary scrutiny process. The Bill simply aims to enable us to continue those existing trading arrangements, allowing us to provide certainty and to reassure international partners, businesses and investors.
Sir William Cash (Stone) (Con)
I am glad to hear everything that my right hon. Friend has said not only today, but throughout his tenure as Secretary of State. I am so glad that he is still in that post and that he will carry on.
Will my right hon. Friend confirm that we are running a trade deficit with the other 27 member states of the EU that has been accumulating for a long time? It increased from £71 billion to £82 billion in one year alone, which gives some indication of the fact that we are now looking outwards towards the rest of the world and that continuing to pursue a policy of exclusively working in the context of a strategy run by the EU Commission does not work for us.
Dr Fox
First, the fact that there is a large EU trade surplus with the UK is one reason why it is in the interests of the EU to want a good and open trading agreement with the UK. Secondly, on my hon. Friend’s point about the direction of travel, it is certainly true that the proportion of UK exports that go to the EU has diminished from some 54% at the beginning of the millennium to about 42% today, so it is already true that the UK is exporting into other growing parts of the global economy.
Exiting the European Union and Global Trade
William Cash Excerpts(6 years, 9 months ago)
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Dr Fox
The first service we can do is not to add adjectives to the word Brexit, because what the Government intend to achieve is as open a trading relationship as possible. If we think about it, the free trade agreement that we will go on to negotiate with the European Union ought to be the easiest FTA in global history. We are starting in a zero-tariff environment and from absolute 100% regulatory and legal equivalence. The only way we would not reach a free and open trading environment would be if the politics of the process took precedence over the economics, prosperity and wellbeing of the people. That is the challenge.
I will give the hon. Member for Edinburgh North and Leith (Deidre Brock) a second challenge, as this is not just about Europe. The decisions we take will reverberate through the global economy. If we put trade and investment impediments into the European economy that do not exist today, that will cause ripples across the global economy that will be felt well beyond our borders.
Sir William Cash (Stone) (Con)
My right hon. Friend knows that all 47 ports in this country opposed the European Union port regulation, which was inimical to our national interest and the lifeblood of our trading relationships. Ports are central to this whole question, and that is another good reason for our leaving the EU.
Sir William Cash (Stone) (Con)
I would like to quote what Angela Merkel has said quite recently, but first I would like to say that I entirely endorse every single word that my right hon. Friend the Secretary of State said—not to flatter him, but because it is practical. He has shown a command of the subject that completely belies the tittle-tattle that the hon. Member for Brent North (Barry Gardiner) talked about. It has been my happy experience to notice that my right hon. Friend has a complete command of the subject.
What my right hon. Friend said is enormously important. That includes, in particular, the historical—but not nostalgic—background to his remarks. This country has, for the past 400 years, built up a policy of external, global trading, right the way through from the Elizabethan period—in fact, even earlier than that, in the late 15th century. He mentioned Robert Peel. I hope he will not mind my mentioning the fact that Peel was driven into the repeal of the corn laws by no less than Richard Cobden and John Bright during the massive battle over that issue. That liberalised the whole trading system. Indeed, the French commercial treaty of 1860—the first ever free-trade treaty in the world—was negotiated on the initiative of John Bright by Richard Cobden, with Michel Chevalier, who was the president of the French board of trade at the time. This is the basis on which our history has been developed. We have been right all the time that we have stuck with free trade.
I have been much encouraged by the attitude of other countries, including in my right hon. Friend’s meeting with Mr Ross in the United States only a few days ago. With regard to the United States, only one and a half hours ago I watched a live speech by Donald Trump from Poland. Among other things, he said that we must get rid of Government bureaucracy, deal with over-regulation and insist on sovereignty. He said that is the basis of freedom for sovereign nations. My right hon. Friend spoke about our ability to conclude our own trade agreements. That is why we have to unshackle ourselves, by virtue of leaving the customs union, from the fact that the European Commission determines our trade policies—there is no getting away from that.
The hon. Member for Brent North is in a bit of a pickle because, as he knows perfectly well, only last week the hon. Member for Streatham (Chuka Umunna) tabled an amendment on the single market, and it was defeated by the Opposition themselves—they were not prepared to go along with it. I have heard similar remarks made with regard to the noble Lord Adonis’s debate in the House of Lords. There is a kind of schizophrenia on these questions among Labour Members. They do not really know where they stand, and they are completely confused, but I think that a sense of realism is coming into it. I pay tribute to the extremely sensible Opposition Members who are beginning to realise that we cannot stay in the single market and the customs union and leave the European Union, because the two things are completely inconsistent. I know that the hon. Member for Brent North accepts that now.
Sir William Cash
I will not give way just yet.
The speech by Mr Barnier today is extremely relevant, and I have the benefit of having the full text here. I will not go through every detail of it, I can assure you, Madam Deputy Speaker, but I note that some of the things that he said are highly relevant to what my right hon. Friend the Secretary of State rightly pointed out in his speech. On the question of what happens if there is no deal, Mr Barnier said:
“Here also, I want to be very clear: in a classic negotiation, ‘no deal’ means a return to the status quo. In the case of Brexit, ‘no deal'”,
he claimed,
“would be a return to a distant past.”
He is wrong—that is not the case. I think the hon. Member for Brent North said that under the World Trade Organisation tariffs, there would be a 40% tariff on lamb, but even Mr Barnier says that custom duties would include
“an average of 12% on lamb and also fish”,
which is very different from what the hon. Gentleman asserted. I do not blame him—he was speaking from memory, so I am not criticising him—but I am just pointing out what Mr Barnier said.
Mr Barnier also made the extraordinary assumption:
“In practice, ‘no deal’ would worsen the ‘lose-lose’ situation which is bound to result from Brexit.”
Again, he is wrong. He went on to say:
“And I think, objectively, that the UK would have more to lose than its partners.”
That is just not so. He then went on to reveal what is really going on at the EU and with his negotiating position:
“I therefore want to be very clear: to my mind there is no reasonable justification for the ‘no deal’ scenario. There is no sense in making the consequences of Brexit even worse. That is why we want an agreement.”
They want an agreement because they know, just as Allister Heath, the distinguished editor of The Sunday Telegraph, pointed out in an article two weeks ago, that German car makers are getting really worried about the idea that there will not be an agreement, because that is not in their interests either.
On trading relationships, it is absolutely essential to remember that, while we will continue to have some 40% of our trade—although the figure is declining—with the internal market, or the framework of the remaining 27 member states, we run a monumental deficit of £71 billion a year with the EU, as the hon. Member for Luton North (Kelvin Hopkins) has said. That figure went up by £10 billion last year alone, and we do not even have this year’s figures, which will be even greater. The Office for National Statistics may have indicated to my right hon. Friend the Secretary of State how much worse they will be by this time next year.
By the same token, our global trade surplus with the rest of the world, in goods and services, imports and exports—that is the golden thread and the parameter that international trade statistics rely on—is expanding at an enormous, accelerating rate. That is the basis of our future prosperity. I say with respect to Opposition Members that more effective trade with the rest of the world, including taxing companies, will result in greater profitability. Out of that enormously growing prosperity zone, we will be able to pay for the public services that the public want and we want. The national health service will actually have more money at its disposal as a result of our successful international trading relationship with the rest of the world.
Mr Barnier went on to make an interesting observation:
“To my British partners I say: a fair deal is far better than no deal.”
That may be how it looks, but the truth is that they have to be very careful that they do not put us in the position of having to accept the idea of no deal. If that happens, as my right hon. Friend the Secretary of State has said, the advantages to us of trading on WTO terms are simply not unsatisfactory at all—quite the opposite. We all need to be realistic.
Interestingly, Mr Barnier then referred to the great port of Zeebrugge, which he said he will visit shortly,
“and for which the UK is the primary market with 17 million tonnes of roll-on roll-off traffic in 2016”.
He went on to say that he could not imagine, in the interests of the UK, Flanders and Belgium, that it would be a good idea to have
“an interruption of supply or a highly efficient organisation being called into question.”
We do not want a trade war over ports with the rest of the European Union. As I pointed out in an intervention, it was the EU that introduced the ports regulation. We had a massive row in the House of Commons, including in Committee, and I have been dealing with the issue as Chairman of the European Scrutiny Committee for the past two years. It is, however, going ahead, and the reason for that is that there is no way we can stop it. That is the response to the questions that have been asked. The reality is that until we get our sovereignty back and get the ability to run our own ports system on our own terms, we will be subjected to things like the ports regulation, which was put through by a majority vote behind closed doors. Nobody really knows who decided what. I tried to find out, but we could not make any serious progress in discovering who was making decisions. A lot of it, I think, was coming from Hamburg, because it has an enormous interest in preserving its own position.
The imposed rules were rejected by every single one of our 47 ports—not just the employers but the trade unions, which all piled in and said, “We can’t tolerate this new ports regulation.” Yet there it is, going through, if it has not gone through already while we were away for the general election. The bottom line is that our ports are the arteries for the lifeblood of our international trade, and they have been such for four centuries, as my right hon. Friend the Secretary of State said.
Mr Jenkin
I remind my hon. Friend and the House that the reason it is a ports regulation is that when it was a directive it was blocked by the European Parliament. So undemocratic is the EU’s legislative system that the Commission can force it through as a regulation, so even the European Parliament cannot block it. What kind of democracy is that, and is it not a good thing that we are getting back control over our laws?
Sir William Cash
My hon. Friend and I have been battling on these questions for 30 years, including since Maastricht. He hits the nail on the head. Democracy is lacking in the European Union. The freedom of choice to which Donald Trump referred today—the freedom of sovereign nations to decide their own democratic decision-making processes, including the right to determine their own trade policies—does not mean that there is anything negative about our ability to deliver what is in our national interest. All our history, and every single aspect of our life in this Parliament for centuries, has depended on our ability to make up our own minds about what is in the interests of our own electorate, based on the general elections at which they exercise their freedom of choice. That freedom of choice is based on the word “freedom”.
The key point is that, as the likes of John Bright and Richard Cobden understood, freedom includes freedom of choice—freedom of choice in the marketplace and economics, and freedom of choice to make electoral decisions in the ballot box. That is why they worked towards giving working people the right to vote in 1867. It is all about freedom; when we have that freedom, we will be able to make decisions in our own national interest. My right hon. Friend the Secretary of State is right to say that we have done so successfully for centuries.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The hon. Gentleman complains that the European Union is not democratic, while at the same time worrying about it being a superstate. The reality is that the European Union is a regional trade agreement, of which there are many in the world. One hundred and eighty-eight states of the United Nations are in regional trade agreements. Only five are not in regional trade agreements, and thus have the type of sovereignty that he has been talking about. The hon. Gentleman is taking the UK towards the type of sovereignty enjoyed by East Timor, Somalia, South Sudan, Mauritania and São Tomé and Príncipe, and many people wonder whether he really understands what he is doing.
Sir William Cash
I know where the hon. Gentleman is coming from, but I simply say that even the leader of his party has more or less had to abandon the pursuit of the independence of Scotland, which is what underpins that question. [Interruption.] That is the bottom line. Comparisons between our great country and Somalia and Sudan are simply absurd, because this is a great country that has been making its own laws for centuries.
We went into the European Community with hope, and I voted yes in the 1975 referendum because I wanted to see whether it could work. My 30 years in the European Scrutiny Committee have proven absolutely that it does not. It is undemocratic and operates behind closed doors, and I doubt whether even that applies in some of the countries to which the hon. Gentleman has referred.
I now want to conclude—
Sir William Cash
I always know that I am making an impact when the hon. Member for Wantage starts wanting to get to his feet.
Sir William Cash
He is my right hon. Friend—my very good friend. [Laughter.] I have great respect for him, although we do not always agree about everything. The same is true of my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), who is, I suspect, on much the same track as him.
We enjoy a trade surplus of £34.4 billion with the rest of the world. As I said, yes, 44% of our trade is with the EU—
James Cartlidge
Is the surplus to which my hon. Friend has referred not smaller than our surplus in services with the EU?
Sir William Cash
It is the aggregate of goods and services. When we consider whether we are making a deficit or a surplus, we have to look at the totality of the position.
Mr Crawford Falconer, the chief trade negotiation adviser, has an enormous amount of experience, and I am extremely glad to hear that he has been given the job of negotiating with countries such as the USA, Canada and Australia. Last year, our trade surplus with the USA was £39.6 billion and our trade surplus with Canada was £1.3 billion. In 2015, we had a trade surplus of £3.7 billion with Australia. They have all said that they want to trade bilaterally with us. It is absolutely right that we should go into those negotiations on the basis that they will lead to greater prosperity for everybody, including ourselves.
Such trading arrangements are the means by which our economic growth and our prosperity will increase exponentially. They will provide security and stability, which will allow us to deliver an effective economy and public services from the taxation of the companies involved. It is a virtuous circle and we are dedicated to it not out of ideology or from any sense of anti-Europeanism, but simply because it works. It is a good policy. The Prime Minister has put her will behind it, and my right hon. Friend the Secretary of State has explained it thoroughly and well today.
Whatever the circumstances, and whether we were remainers or leavers, we must continue with our current policy. Angela Merkel says that what matters is the future of Europe, not Brexit. That is the policy of the German Chancellor. Let us seize the opportunity to make Brexit work in our national interest.
Several hon. Members rose—