PARLIAMENTARY DEBATE
G20 Summit - 3 December 2018 (Commons/Commons Chamber)
Debate Detail
As we leave the European Union, I have always been clear that Britain will play a full and active role on the global stage as a bold and outward-facing trading nation. We will stand up for the rules-based international order; strive to resolve, with others, challenges and tensions in the global economy; work with old allies and new friends for the mutual benefit of all our citizens; and remain steadfast in our determination to tackle the great challenges of our time. At this summit, we showed that the international community is capable of working through its differences constructively, and the leading role the UK will continue to play in addressing shared global challenges. We agreed, along with the other G20 leaders, on the need for important reforms to the World Trade Organisation to ensure it responds to changes in international trade. We pursued our objective of making sure that the global economy works for everyone and that the benefits are felt by all. We called for greater action in the fight against modern slavery and tackling climate change, and I held discussions with international partners on security and economic matters, including on the progress of our exit from the European Union and the good deal an orderly exit will be for the global economy. Let me take each of these in turn.
At this year’s summit, I came with the clear message that Britain is open for business and that we are looking forward to future trade agreements. Once we leave the EU, we can and we will strike ambitious trade deals. For the first time in more than 40 years we will have an independent trade policy, and we will continue to be a passionate advocate for the benefits open economies and free markets can bring. We will forge new and ambitious economic partnerships and open up new markets for our goods and services in the fastest growing economies around the world. During the summit, I held meetings with leaders who are keen to reach ambitious free trade agreements with us as soon as possible. This includes Argentina, with whom I discussed boosting bilateral trade and investment, and I announced the appointment of a new UK trade envoy. I also discussed future trade deals with Canada, Australia, Chile and Japan, with whom we want to work quickly to establish a new economic partnership based on the EU-Japan economic partnership agreement.
On the global rules that govern trade, we discussed the importance of ensuring an equal playing field and the need for the rules to keep pace with the changing nature of trade and technology. There is no doubt that the international trading system, to which the United Kingdom attaches such importance, is under significant strain. That is why I have repeatedly called for urgent and ambitious reform of the World Trade Organisation. At this summit, I did so again. In a significant breakthrough, we agreed on the need for important reforms to boost the effectiveness of the WTO, with a commitment to review progress at next year’s G20 summit in Japan.
On the global economy, we recognised the progress made in the past 10 years, with this year seeing the strongest global growth since 2011. However, risks to the global economy are re-emerging. In particular, debt in lower income countries has reached an all-time high of 224% of global GDP. I called on members to implement the G20 guidelines on sustainable finance that we agreed last year and that increase transparency and encourage co-operation. At this year’s summit, I continued to pursue our mission to make the global economy work for everyone, and the need to take action, in our own countries and collectively, to ensure that the benefits of economic growth are felt by all.
Around the world, we are on the brink of a new era in technology that will transform lives and change the way we live. This has the potential to bring us huge benefits, but many are anxious about what it means for jobs. That is why in the UK, alongside creating the right environment for tech companies to flourish through our modern industrial strategy, we are investing in the education and skills needed so that people can make the most of the jobs and opportunities that will be created. We made strong commitments to improving women’s economic empowerment, and alongside that I called on G20 leaders to take practical action to ensure that by 2030 all girls, not just in our own countries but around the world, get 12 years of quality education.
To build fair economies and inclusive societies, we must tackle injustice wherever we find it. Around the world, we must all do more to end the horrific practice of modern slavery and protect vulnerable men, women and children from being abused and exploited in the name of profit. Two years ago, I put modern slavery on the G20 agenda at my first summit, and this year, I was pleased to give my full support to the G20’s strategy to eradicate modern slavery from the world of work. I announced that next year the Government will publish the steps we are taking to identify and prevent slavery in the UK Government’s supply chains in our own transparency statement. This is a huge challenge. Last financial year, the UK Government spent £47 billion on public procurement, demonstrating just how important this task is. I urged the other leaders around the G20 table to work with us and ensure that their supply chains are free from slavery, as we work to bring an end to this appalling crime.
On climate change, I made clear the UK’s determination to lead the way on the serious threat that this poses to our planet. We need a step change in preparing for temperature rises, to cut the cost and impact of climate-related disasters and to secure food, water and jobs for the future. As a UN champion on climate resilience, the UK will continue to pursue this agenda at next year’s UN climate summit. Nineteen of us at the G20 reaffirmed our commitment to the Paris agreement, but it remains a disappointment that the United States continues to opt out. I also announced that the UK will be committing £100 million to the Renewable Energy Performance Platform, which will directly support the private sector in leveraging private finance to fund renewable energy projects in sub-Saharan Africa.
This summit also gave me the opportunity to discuss important matters directly with other leaders and raise concerns openly and frankly. In that context, I met Crown Prince Mohammed bin Salman, first to stress the importance of a full, transparent and credible investigation into the terrible murder of Jamal Khashoggi and of those responsible being held to account—a matter which I also discussed with President Erdogan—and secondly, to urge an end to the conflict in Yemen and relief for those suffering from starvation and to press for progress at the upcoming talks in Stockholm. Our relationship with Saudi Arabia is important to this country, but that does not prevent us from putting forward robust views on these matters of grave concern.
I also discussed the situation in Ukraine with a number of G20 leaders. The UK condemns Russian aggression in the Black sea and calls for the release of the 24 Ukrainian service personnel detained and their three vessels.
At this year’s summit, we reached important agreements, demonstrating the continued importance of the G20 and international co-operation. It also demonstrated the role that a global Britain will play on the world’s stage as we work with our friends and partners around the world to address shared challenges and bolster global prosperity. I commend this statement to the House.
Of course, some G20 countries have no such democratic mechanisms, so while economics are important, our belief in universal human rights and democratic principles must never be subservient to them. The Prime Minister—[Interruption.] The Prime Minister told the media she would—[Interruption.]
On Ukraine, as NATO has said, we need both sides to show restraint and to de-escalate the situation, with international law adhered to, including Russia allowing unhindered access to Ukraine’s ports on the sea of Azov.
Britain’s trade policy must be led by clear principles that do not sacrifice human rights. The International Trade Secretary claimed last summer that a trade deal between the UK and the EU would be easiest in human history, but all we have before us is 26 pages of vague aspirations. It seems that neither has he got very far on the 40 trade deals he said he would be ready to sign on the day we leave next year, unless the Prime Minister can update us in her response. In the light of last week’s report from the Foreign Affairs Committee, how does she intend to ensure that the 240 export trade negotiators she promised by Brexit day will be in place, given that the Government have had two years and only 90 are currently in post?
Did the Prime Minister speak again to President Trump at the G20? He seems to have rejected her Brexit agreement because it does not put America first. The International Trade Secretary claimed that bilateral US and UK trade could rise by £40 billion a year by 2030,
“if we’re able to remove the barriers to trade that we have”.
The Prime Minister claims that under her deal we can and will strike ambitious trade deals, but this morning we learned that Britain’s top civil servant in charge of these negotiations wrote to her admitting that there was no legal guarantee of being able to end the backstop.
It is clear, however, that some in the Prime Minister’s Government do want to remove barriers. Just this weekend, the Environment Secretary said, with regard to the Brexit deal and workers’ rights, that
“it allows us to diverge and have flexibility”.
Our flexible labour market already means that the UK has the weakest wage growth of all the G20 nations. Did the Prime Minister ask the other leaders how they were faring so much better?
UK capital investment is the second worst in the G20. The previous Chancellor slashed UK corporation tax to the lowest level in the G20, telling us—[Hon. Members: “Hear, hear!”] In doing so, he told us it would boost investment. It did not. Did the Prime Minister ask other G20 leaders why, despite having higher corporation tax, they attracted much higher investment?
Given that the G20 is responsible for 76% of carbon dioxide emissions, I welcome the fact that building a consensus for a fair and sustainable development was a theme of the summit. Why then did her Government vote against Labour’s proposal to include the sustainable development goals as a reference point when the Trade Bill was put before Parliament earlier this year? If present trends continue, many G20 nations will not meet their Paris 2015 commitments, so I am glad that the Government will be pursuing this agenda at next year’s UN climate summit, and I hope that they will also pursue it this week in the talks in Katowice, Poland.
Given that climate change is the biggest issue facing our world, it is imperative that a sustainable economic and trade model be put forward that puts people and planet over profit. Our country has the lowest wage growth in the G20, the lowest investment and poor productivity. Ten years on from the global financial crisis, this Prime Minister and too much of the G20 have simply failed to learn the lessons of that crash.
First, as I have made entirely clear in my conversations with Crown Prince Mohammed bin Salman, in the Foreign Secretary’s conversations with King Salman himself, in my conversations with King Salman and in other interactions with Saudi Arabia, we have been absolutely robust in our response in relation to the terrible murder of Jamal Khashoggi, and very clear about the need for those responsible to be held to account.
The right hon. Gentleman referred to the war in Yemen. I might remind him that the coalition intervention in Yemen was actually requested by the legitimate Government of Yemen and has been acknowledged by the United Nations Security Council.
The right hon. Gentleman asked whether I had spoken to President Trump. I did speak to President Trump in the margins of the meeting. I was clear with him that we can indeed do a trade deal with the United States of America with the deal that is on the table with the European Union. We recognise that the working group that exists between the UK and the USA, which is looking at trade arrangements for the future, has been making good progress.
The right hon. Gentleman made various other references to issues relating to trade. Yes, I did discuss trade with a number of the other leaders I met. Prime Minister Abe of Japan made it very clear that he looked forward to being able to discuss the United Kingdom’s possible membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and, indeed, that was echoed by others with whom I spoke at the G20 summit.
I am very interested that the right hon. Gentleman made so many references to trade. Of course, he used to want to do trade deals with other countries, and he put that in his manifesto, but just last week he said that he did not want to do trade deals after all. Trade deals will be important to the economy of this country in the future, and we are certainly committed to those trade deals around the rest of the world.
The right hon. Gentleman then talked about corporation tax. I might remind him that, yes, we have cut corporation tax, which has been of benefit to businesses, employers and jobs in this country, and guess what? We cut corporation tax, and we are raising more money from it. We have employment at record levels, and we are the first choice in Europe for foreign direct investment.
One thing that I omitted from my statement was that during some of the other conversations that I had with leaders of countries in South America, they were reflecting on the migration problem that is being caused by the terrible situation of the economy in Venezuela.
As for the issue of opening up the American market for public procurement and financial services, the working group that exists between us and the United States is looking at exactly that.
Given the current strains on international diplomacy, it is welcome that the G20 was able to come together and deliver a joint statement of endeavour. The communiqué itself is clearly a compromise agreement, but it falls short in a number of areas. In particular, the pledge to look at WTO reform requires further explanation from the Prime Minister on what reform she believes is needed and why. Also, on the refugee crisis and our responsibilities, it seems that the communiqué has the bare minimum commitment rather than real ambition. That is particularly shocking given that this weekend marks the 80th anniversary of the Kindertransport—the journey of children who fled the Nazis. We should still have the same generosity of spirit towards refugees in this country today. I do, however, agree with the Prime Minister’s sentiments about the importance of the G20 to international economic co-operation, and I welcome the fact that commitments have been made to work together on economic opportunities and the greatest threat to our generation, climate change.
However, I note that in her press release the Prime Minister exclaimed that the summit gave her the opportunity to update leaders on her Brexit plans. Did the Prime Minister share with world leaders any concern that her deal is a lame duck? There are many questions for her to answer. Will she explain how she was discussing trade agreements when she will not be able to strike any deals until after the transition? Furthermore, can she explain how any of these discussions can take place when the backstop comes in, as she confirmed in the House last Monday that the UK will not be able to have any independent trade deals?
Does the Prime Minister see the direct contradiction in her claims of working in collaboration and partnership to deliver economic prosperity when her Brexit deal rips economic stability and opportunity from beneath our feet by taking us out of the European Union? I can see her shaking her head, but that is the reality: young people are going to be denied the opportunities that our generations had.
At the summit, did the Prime Minister use her time to discuss pressing human rights issues? What discussions did she have, and did she raise the matter of Khashoggi’s death with Mohammed bin Salman?
Finally, will the Prime Minister share with us an update on her Government’s actions over the past two years to tackle climate change, or has she been too distracted to get on with the job of government?
The right hon. Gentleman talked about trade deals and said—I was listening carefully—that we would not be able to strike trade deals until after the transition or implementation period. That is not correct: during that period we will be able to negotiate, sign and ratify trade deals, which can then come into operation at the end of the implementation period.
I hope we will all welcome the growing and developing bilateral relationship between the UK and Argentina, and when I was there I was pleased to be able to welcome the extra flight that will now take place from the Falkland Islands via Cordoba to São Paulo.
The right hon. Gentleman asked whether any pressing human rights issues had been raised. I specifically referenced in my statement a human rights issue on which this Government have been leading the world: modern slavery.
“vulnerabilities in the financial system”.
What with the National Crime Agency—which the Prime Minister had a hand in setting up, as she reminded us—estimating that hundreds of billions of pounds are currently being laundered through the UK, will she give us a date for when the commitment to consult on the creation of a criminal offence for corporations of failure to prevent money laundering will materialise, so that we can practise what we preach?
My hon. Friend is absolutely right. With the launch event of the Global Compact on Migration next week, it is absolutely right that migration is being discussed in a number of forums, including, obviously, the references that we saw in the communiqué that came out of the G20 summit. That Global Compact is one way in which we can bolster international co-operation in these areas, because it does set out an approach to reduce irregular or illegal migration while improving regular and managed migration. It enables all states effectively to manage their borders. This issue is recognised across the G20 as one that needs to be addressed.
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