I am just going to make a little progress, if my hon. Friend will allow me, as he has had one bite of the cherry already.
While we step up the fight against Daesh and Islamist extremism, the old challenge of state-based aggression has not gone away. To our east, Russia’s disregard for international norms, its illegal annexation of Crimea and its continuing destabilisation of eastern Ukraine are echoes of an era that, frankly, most of us thought had passed with the fall of the Berlin wall. They represent a clear threat to the stability of the post-cold war European security order, and, more widely, to the rules-based international system on which an open, free-trading liberal democracy such as ours depends.
As well as violating the sovereign territory of another country and undermining the rules-based system, Russia’s actions in Ukraine have led to the loss of more than 9,000 lives and the displacement of up to 1 million people from their homes. Responsibility for this human misery lies squarely at the door of the Kremlin. It is a direct result of a deliberate policy that seeks to deny the right of independent former Soviet republics to determine their own economic and political destiny. This Government remain clear that Russia must be held to account for its actions. We will work through the EU to keep up the economic pressure with hard-hitting and carefully calibrated sanctions. Those sanctions must remain in place until such time as Russia delivers on the pledges it made at Minsk. In the meantime, we will continue to provide non-lethal support and training to the Ukrainian armed
forces. Building on the British military units already rotating through Poland and the Baltic states, we will announce at the NATO summit in Warsaw in June further measures to reassure our eastern allies in the face of this continuing aggression.
At the same time, we will engage with Russia where it is clearly in our national interests to do so. Russia, along with Iran, is one of the two countries that have real influence on the Syrian regime.
As members of the ISSG, they have the principal responsibility for telling Assad that it is time to go. We will continue to work with Russia on Syria and at the UN and to collaborate with it on counter-terrorism, where British lives are potentially at risk, but it will not be business as usual. All nations must know that we cannot and will not look the other way while the rules-based system is repeatedly violated. We look forward to the time when Russia rejoins the community of nations as a partner in upholding international rules, but our eyes are wide open and we know that it might be a long time coming.
As we said in the 2010 strategic defence and security review and again in 2015, Britain’s national security is indivisible from its economic security. We cannot keep people safe if we do not have a strong economy, and vice versa. As we have continued to deal with the economic legacy we inherited—bringing down the deficit and restoring sustainable growth to our economy—we have also been strengthening our diplomatic muscle in emerging economies in order to grow our trade and support jobs here at home. And those efforts are paying off. The state visit by China’s President Xi last year generated £40 billion of commercial deals, helping to create more than 5,000 permanent jobs in this country and more than 20,000 construction-phase jobs. During Prime Minister Modi’s visit in November, UK and Indian businesses agreed deals worth £9 billion. Inward investment from India in 2014-15 created more than 7,000 jobs and safeguarded more than 1,500 others. Since the UK’s free trade deal with the Republic of Korea in 2011, the value of UK exports to Korea has more than doubled.
While we seek to grow our links with the world’s emerging economies, however, our trade and investment relationship with the EU will always be central to our economic success story. As the House knows, the Government’s clear view is that Britain’s continuing prosperity is best served by our remaining a leading member of a reformed EU. Our membership puts us, the No. 2 economic power in the EU, inside the world’s largest single market, with a seat at the decision-making table. It is a market with 500 million consumers and a quarter of the world’s GDP and a market that buys 44% of Britain’s exports.
There is a world of difference between being inside such a market, with tariff-free access as of right, and being outside it, scrabbling around for a deal; between making the rules of the market to protect our interests and being governed by rules designed for the benefit and advantage of others. Our membership safeguards the pound and the Bank of England, and with the deal that my right hon. Friend the Prime Minister negotiated
in February, our membership keeps us out of Schengen, exempts us from ever-closer union and limits EU migrants’ access to our welfare system. It is the best of both worlds.