International Trade Ministers were taking questions in the Commons.
Subjects covered included...
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Free Trade and WTO Reform
(Northampton South) (Con)
1. What steps he is taking to promote free trade and WTO reform.
[911893]
(Witney) (Con)
2. What steps he is taking to promote free trade and WTO reform.
[911896]
The Secretary of State for International Trade and President of
the Board of Trade ( )
This weekend, it will be three years since my Department was
formed, and in that time the UK has worked with partners to
ensure that the World Trade Organisation is equipped with the
tools needed to tackle present challenges and address 21st
century trade issues at a time of significant global headwinds. I
emphasised the urgent need for WTO reform in discussions with my
counterparts at the G20 trade and digital economy ministerial
meeting in Japan a few weeks ago.
Can the Secretary of State please explain why some nations, such
as Canada, are refusing to roll over their existing EU free trade
agreements, while many others, such as Switzerland, have happily
done so?
Continuity of existing trade terms is in everybody’s interests. I
have to say that when the House of Commons gives mixed signals
about the possibility of a no-deal exit, quit understandably some
of our trading partners wonder whether it is worth investing in
getting those continuity agreements. What I would say to those
trading partners is that a no-deal exit is not entirely within
the control of the United Kingdom; we might end up with a no-deal
exit from the European Union. It is in everybody’s interests to
have those safety nets in place.
Free trade has the ability to spread the blessings of prosperity
and to bring nations closer together. What is my right hon.
Friend doing to spread free trade, particularly with our friends
in the Commonwealth and the Anglophone countries?
I would go further than my hon. Friend and say that free trade is
beneficial for prosperity, stability and security, in the United
Kingdom and beyond. The creation of Her Majesty’s trade
commissioners is one of the most important elements of the
Department for International Trade, and I am passionate about
increasing the size of the DIT’s overseas network, including in
the Commonwealth. Therefore, this morning I am proud to announce
the creation of a new HM trade commissioner for Australasia. The
post will be a senior civil service 2 director role and will be
externally advertised later this year, to attract the best and
brightest talent.
(Bristol East) (Lab)
To return to the subjective continuity agreements, a number have
been put in place but they do not apply to some of our biggest
trading partners. Does the Secretary of State really think that
by the end of October we will have a significant number of
agreements in place with those countries with which we do the
most trade?
Well, 10.7% of our trade is done under EU trade agreements with
third countries. In fact, the largest of those, with Switzerland,
and some of the other largest—for example, with the European
economic area and South Korea—have already been concluded or
signed, and I expect further agreements to be reached.
(Bishop Auckland) (Lab)
I do not know whether the Secretary of State saw the alarming
report in yesterday’s Financial Times on the impact on the
Amazonian rainforest of the EU-Mercosur trade deal. Of course
free trade is a good thing, but not if the cost is climate
change. Does he agree?
This Government have been very consistent in our approach to this
matter. In fact, next week I will be setting out, at a slightly
lesser level, moves that the Department for International Trade
intends to take to mitigate our own international travel. We all
have a responsibility, at international, national and personal
level, to take climate change absolutely seriously. In
international agreements, the environmental impacts are very much
looked at. Of course, that agreement has not yet been finally
concluded.
Mr (Ribble Valley) (Con)
I congratulate the Secretary of State and his Department on the
latest export figures, which have reached another new high, but
there is clearly potential for further growth, particularly post
Brexit. What plans does he have to ensure that we have sufficient
staff and personnel in high commissions and embassies throughout
the world looking for those opportunities and feeding them back
to British firms?
For Britain to be able to sell abroad, we need to be able to do
two things simultaneously: understand what Britain has to sell
abroad and understand the markets we are selling into. That is
why my Department is bringing in a major change to rotate our
staff from our international posts through our sectors in the UK,
so that they can understand what the UK can do in terms of
services and goods in a real-time way as well as understand the
markets. It is not just about how many people we have in the
market, but about how well they understand what is happening in
the UK. I hope that this innovation will lead to an increased
capability for the UK and improve our competitiveness vis-à-vis
other exporting countries.
(Dundee East) (SNP)
We recognise the need to reform the WTO, not least in the area of
speeding up dispute resolution. We also recognise the benefits of
regional trade agreements and bilateral agreements that can be
WTO-compliant. However, it remains essential that we have a fully
functioning WTO implementing globally agreed trade rules, so may
I ask the Secretary of State to take on board and to agree with
me that in these negotiations on reform he should reject some of
the approach of the United States, which is to suggest that it
will walk away from the WTO if it does not get its own way?
I absolutely agree that we need an international rules-based
system based on the WTO. It does require reform, but the fact
that it needs reform is not an excuse to leave—it is an excuse to
be more engaged in those reforms. It is worth pointing out that
the United States has done very well, winning around 90% of the
cases it has taken to dispute at the WTO. I hope that we all
understand that the alternative to a rules-based system is a
deals-based system, and the biggest casualties of that will be
developing countries.
Renewable Energy Exports
(Ogmore) (Lab)
3. What plans he has to increase exports by the renewable energy
sector. [911897]
The Parliamentary Under-Secretary of State for International
Trade ()
Promoting renewables is, of course, one more function of a
dedicated trade Department, and we have export campaigns
targeting renewable energy opportunities across Europe, Latin
America and south-east Asia, along with support programmes. For
example, the offshore wind sector deal commits the Department for
International Trade and industry to increase offshore wind
exports fivefold to £2.6 billion by 2030 and puts in place
support mechanisms to help UK suppliers grow.
I thank the Minister for his answer. In Wales, the low- carbon
and renewable energy economy employs nearly 10,000 people.
However, as he has already said, this could be hugely expanded if
there were more opportunities to explore and to export renewable
energy, so what steps are the UK Government taking to boost the
economy and export more to provide more jobs across Wales and the
wider UK?
I congratulate the hon. Gentleman for championing those employers
and, more importantly, employees in his constituency across the
world. We are absolutely dedicated to doing that. As I said, the
offshore wind sector deal puts a lot of that in place. UK Export
Finance now has a dedicated team to support renewables.
Colleagues from across the Department worked with Taiwan, and I
was there last year at the signing of a memorandum of
understanding that opens up its offshore wind opportunities for
local companies.
(Sefton Central) (Lab)
The Society of Maritime Industries says that export finance
support in the UK lags behind what is available in other
countries. It is calling for a much-needed follow-up detailing
the specifics of the export strategy. If the Government are
serious about the UK being a zero-carbon economy, where is the
detail, the coherent plan and the investment into exports of our
world-leading renewables sector? Labour believes in the industry;
when will the Government start to?
I shall try to give a straight answer to a not entirely straight
question. As I said, we have the sector deal. We have the export
strategy and we are putting enormous effort into that. I am
pleased to say, Mr Speaker, that in this 100th centenary year of
UK Export Finance, it has, under this dedicated trade Department,
been rated the best export credit agency in the world.
Mr Speaker
It is good to know that a centenary year marks 100 years and that
100 years would be considered to constitute a centenary. I wonder
whether a 100th centenary year might be in danger of being a
tautology.
Leaving the EU: UK Trade Policy
(Copeland) (Con)
5. What plans he has to use the Board of Trade to ensure that the
constituent parts of the UK benefit from UK trade policy after
the UK leaves the EU. [911899]
The Secretary of State for International Trade and President of
the Board of Trade ( )
Establishing the Board of Trade has been one of this Department’s
major achievements over the past three years, and it will
continue to meet in all UK nations and regions. Included as
advisers to the board are the Secretaries of State for Northern
Ireland, for Scotland and for Wales, and it has representation
from business advisers from across the UK. We will make sure that
all parts of the UK benefit from the jobs and investment that
come with an independent UK-wide trade policy.
My right hon. Friend will know that Copeland is home to a
thriving agriculture sector. Will he tell us more about what is
being done in his Department to open up new markets?
There are a number of ways in which we can do that. The
traditional trade agreements are one of them, but market access
is another. For example, countries such as China are huge markets
for Northern Ireland dairy products and Scottish beef, and the
Department is focusing increasingly on identifying regulations
that, if removed, will automatically increase market access for
UK exporters.
(Rhondda) (Lab)
When the Foreign Affairs Committee met businesses in Hirwaun,
south Wales, they were very critical of the Board of Trade. They
said that it simply did not listen to Welsh concerns and did not
project Wales on the international market. Is there not a danger
that the Welsh Assembly might take it into its head that it wants
to do that work instead of—and, I would argue, less effectively
than—the United Kingdom?
The hon. Gentleman may be slightly confusing the Board of Trade
with the Department for International Trade. They have slightly
different functions. When the Board of Trade met in Wales
recently, we presented a number of awards to Welsh exporters, but
the Board of Trade is an augmentation of the DIT in that it is
able to take its own trade missions abroad. The advantage of the
DIT to Wales is that it provides access to a much bigger network
than could ever be achieved by the Welsh Government, and thus
gives Welsh business a far greater capability than it would
otherwise have.
(Stirling) (Con)
9. I was delighted to welcome my right hon. Friend to Stirling
last year for the first ever meeting of the Board of Trade in
Scotland. He has mentioned Scotch beef. The National Farmers
Union of Scotland has launched a social media campaign,
#BackScotchBeef. Will my right hon. Friend be beefing up his
Department in Scotland, to provide more presence and resources to
support the export of Scotch beef? [911903]
I am delighted to say that the outcomes of the Department’s
efforts have already been pretty beefy. The important point is,
however, that because Scotland is part of the United Kingdom and
therefore has access to a Department of State with a very large
international footprint, we are better able to tackle issues such
as market access to Scottish beef than Scotland would ever be if
it were an independent state.
(Newcastle upon Tyne Central)
(Lab)
The north-east is the one region that consistently exports more
than it imports, but its voice in international trade policy and
its representation on trade missions do not reflect that. What is
the Board of Trade doing to support the voice of the north-east,
rather than providing a platform for the Secretary of State so
that he can tour the regions without delivering change?
The point of the Board of Trade’s visits to the regions is
gathering information that the Department can use for the purpose
of export policy and recognising the excellence of those who have
already succeeded in exporting. I should have thought that the
hon. Lady considered it a worthwhile exercise for the Government
to recognise the excellent exporters in her own region.
Mr (Kettering) (Con)
Will the Secretary of State hold a meeting of the Board of Trade
in Kettering, so that we can meet the Northamptonshire chamber of
commerce to discuss export opportunities?
I am astonished that we have got this far with only one bid for a
meeting place for the Board of Trade. As with all my hon.
Friend’s suggestions, I will take it seriously.
(Bradford South) (Lab)
If trade is to work for all parts of the UK, all parts of the
UK—including Kettering—must be heard before, during and after
trade negotiations. The Government have announced the creation of
a ministerial forum for international trade, but they have
provided no information about its membership, how often it will
meet, or what its exact terms of reference will be. Will the
Secretary of State now give us some much-needed detail on how
both the nations and the regions of the UK will be included in
the entire trade negotiation process?
As I have said, the Board of Trade’s advisers—which is what they
are technically called—are the Secretaries of State for Scotland,
Wales and Northern Ireland. We have visited all the English
regions, and I intend in future to be constantly moving around
the regions and nations of the UK, to thank the businesses that
have contributed to Britain’s export performance, to consult
those businesses and to create a network of business people who
will act as champions and mentors for companies that want to
export.
Export Strategy
(Waveney) (Con)
6. What recent progress the Government has made on implementing
its Export Strategy. [911900]
Sir (The Cotswolds)
(Con)
8. What recent progress the Government has made on implementing
its Export Strategy. [911902]
The Minister for Trade Policy ()
This summer marks three years since the DIT was established and
one year since the publication of the Department’s export
strategy, which sets out how the Government will encourage,
inform, connect and finance UK businesses to take advantage of
the international demand for British goods and services. Last
month, we announced a new package of financial support from UK
Export Finance to help businesses, and small and medium-sized
enterprises in particular, to do just that.
Does the Department’s export strategy make provision for
promoting the expertise of British business in the emerging
markets of offshore wind and the late-life decarbonising
management and decommissioning of oil and gas fields?
Yes, the offshore wind sector deal announced earlier this year
will support UK companies to seize the export opportunities
generated by the rapidly expanding market. The DIT is working
with markets such as Taiwan, with which I recently hosted an
offshore wind roundtable last month, to support their engagement
with the UK supply chain. On oil and gas production, the DIT is
engaging with the industry and stakeholders on export
opportunities across the full industrial lifecycle.
Sir
We have already heard that our trade agreements with the EU
amount to about 11% of our trade, which is significant. Will my
hon. Friend update the House on where he expects to have got with
rolling over all the existing trade agreements by the time we are
able to make our own independent trade policy?
Since the Department’s formation three years ago, the DIT has
grown its trade negotiating capability from a standing start to a
fully trained core of specialists. That has allowed us to
negotiate the transition of EU free trade agreements,
representing almost two thirds of trade covered by these
agreements, and we continue to work intensively on the balance.
Mr (Coventry South) (Lab)
What is the Secretary of State doing in relation to manufacturing
in the west midlands, which has the Jaguar Land Rover and black
cab companies, to increase their exports given the market has had
a slight downturn as a result of Trump’s sanctions on China?
Of course, Jaguar Land Rover remains an extraordinarily important
company to the UK. It has faced some challenges recently, but the
announcement of the new electrification programme in the west
midlands is extremely welcome. As the hon. Gentleman might
expect, the DIT has been very heavily involved in that process.
(Cardiff West) (Lab)
But what has the DIT been doing through its export strategy about
the automotive sector in Wales and in particular in Bridgend,
with the announcement that Ford will close the engine plant? What
can the Department do to try to persuade Ford to change its mind
about this and to ensure that we have a thriving export sector?
The hon. Gentleman will know that the Department for Business,
Energy and Industrial Strategy has been very heavily involved
with Ford at Bridgend; in the end this is a matter for the
company itself, but I have no doubt that BEIS has had productive
conversations with it. The DIT is, along with BEIS, investing
very large amounts of money across government in electrification
and the automotive market of the future. That involves huge
amounts put into research and development at universities, and we
believe that will put the UK car industry in a very good position
for the future.
UK-US Trade and Investment
(Lichfield) (Con)
7. What recent discussions he has had with his counterpart in the
US Administration on trade and investment between the UK and the
US; and if he will make a statement. [911901]
The Secretary of State for International Trade and President of
the Board of Trade ( )
Over the past three years, the DIT has laid the groundwork for an
ambitious free trade agreement with the US once we have left the
EU, including through the UK-US trade and investment working
group, which met for the sixth time in London yesterday. This
week, I have been in Washington to discuss the progress of these
preparations with my American counterparts and make sure we are
ready to grasp this golden opportunity once we have left the EU.
Is it not the case that, notwithstanding the little local
difficulty—or even large local difficulty—in Washington DC at the
moment, the underlying facts remain that the United Kingdom is
the biggest investor in the United States and vice versa, that
military and intelligence integration between the United Kingdom
and the United States is bigger than any other in the rest of the
world and that our strength remains with the United States?
My hon. Friend is correct. The UK and the US have a deep
long-standing relationship with a strong and enduring bond. We
have a shared heritage, legal system and language, and we
co-operate extensively in security, prosperity and defence, and
at many levels of our society, culture and economy, our
co-operation is closer than that of any other two
countries—something that my hon. Friend contributed to in his
time as shadow Trade Minister.
Mr (Huddersfield)
(Lab/Co-op)
Has the Secretary of State woken up to the fact that when we
trade with America, and with other countries, we have to take
manufacturing very seriously indeed? This also involves our
universities. I have a good memory and I remember that, on his
first outing, he refused to meet the all-party parliamentary
group on manufacturing. He has still not met it. Why does he not
take manufacturing seriously? It matters for our trade
relationship with America, which is very close.
When it comes to the manufacturing element, we take it very
seriously. Our goods exports have actually exceeded the growth in
our service exports in recent times, which is testament to the
way in which the manufacturing sector has been encouraged and
grown under this Government, in stark contrast to what happened
under the previous Labour Government, when it shrank
substantially.
(Edinburgh South) (Lab)
The Secretary of State is obviously aware of the unprecedented
way in which our ambassador in Washington was removed from his
post yesterday by the former Foreign Secretary and the President
of the United States. Does he think that that will harm or hinder
our trade investment with the United States?
I deeply regret the resignation of Sir Kim Darroch, whom I was
with actually in the time before his resignation. He was a great,
dedicated and professional public servant. I hugely decry the
leak that led to that resignation. The leak was unprofessional,
unethical and unpatriotic, and I hope that, if we are able to
discover the culprit, we will throw the book at them.
Arms Sales: Saudi Arabia
(North Ayrshire and Arran)
(SNP)
10. What recent assessment he has made of the implications for
his policies of the Court of Appeal’s ruling on the process of
granting licences for the sale of arms to Saudi Arabia. [911904]
The Secretary of State for International Trade and President of
the Board of Trade ( )
We disagree with the judgment and are seeking permission to
appeal. Alongside this we are considering the implications of the
judgment for decision making. While we do this, we will not issue
any new licences for exports to Saudi Arabia or its coalition
partners which might be used in Yemen.
Given the evidence from organisations such as the Red Cross, and
given what we know about the humanitarian violations in Yemen,
does the Secretary of State not think it is time, once and for
all and regardless of any review, to look at the international
evidence, and stop selling arms to Saudi Arabia to break
international law?
We take a rigorous and robust view in this country, as the court
said, and we are very aware of any potential breaches of
international humanitarian law. I think the hon. Lady will find
that the United Kingdom has one of the most stringent sets of
rules around arms exporting anywhere in the world.
Topical Questions
(Berwick-upon-Tweed)
(Con)
T1. If he will make a statement on his departmental
responsibilities. [911910]
The Secretary of State for International Trade and President of
the Board of Trade ( )
My Department is responsible for foreign and outward direct
investment, establishing independent trade policy and export
promotion. I am proud to announce that, on 17 July, my Department
will be launching the MP Exporting toolkit. This will highlight
the role that all MPs can play in helping to promote local
businesses in their own constituencies. It says “Become a Trade
Minister for your constituency”, and 650 Trade Ministers would be
even more effective than the Department for International Trade.
My right hon. Friend is a brave man to let us all loose like
that. He will be aware that the Royal Navy has done incredible
work in the past couple of days to protect our British shipping
as it moves through the Strait of Hormuz. Does he agree that,
given that 95% of our goods travel by sea, it is imperative that
our armed forces have the resources they need to keep all those
exports and imports safe?
Contrary to international law, three Iranian vessels attempted to
impede the passage of a commercial vessel, British Heritage,
through the Strait of Hormuz. HMS was forced to position
herself between the Iranian vessels and British Heritage and to
issue verbal warnings, which caused the vessels to turn away. Our
thanks go to the crew of HMS and to all those who protect
the safety of vital international maritime traffic. It is our
duty as a Parliament to ensure that all those forces are
adequately resourced.
(Brent North) (Lab)
Last month, the Department released the worst foreign direct
investment statistics in five years. New projects were down 14%,
new jobs were down 24%, and investment to safeguard existing jobs
was down 54%. I know that the Secretary of State will want to
explain the reasons for this to the House, but will he also tell
us whether he still thinks he was right to announce that, in the
event of a no deal, he would unilaterally drop more than 80% of
our tariffs to zero for a period? I ask this because Canada has
said that it will not now conclude a roll-over agreement
conceding preferences to the UK because the Secretary of State is
offering market access for free. In June, he boasted to the
Select Committee that the roll-over was 99% there. Now, it is
100% not there. Was he right, or is Canada?
As ever, it is nice to know that the hon. Gentleman is
consistently wrong. He talks about our investment figures, but
investment into the United Kingdom was the third highest of any
country in the world, and it was the highest in Europe. At a time
when global foreign direct investment fell, it continued to rise
in the UK. When it comes to tariffs, one reason the Government
introduced the temporary tariff scheme was to stop a price shock
in the UK, and one of the reasons for that is that those on lower
incomes spend more on goods than services. Introducing
liberalisation will help to protect consumers on lower incomes,
and I would have thought even today’s Labour party might have
supported that.
Sir (New Forest West) (Con)
T2. Can market access agreements be even more important than free
trade agreements? [911911]
The Minister for Trade Policy ()
My right hon. Friend is absolutely right. There are some huge
opportunities in market access. Indeed, we have identified one
potential change in China that, if negotiated, might be worth £10
billion of turnover over a considerable period through one
regulation alone. Resources at the Department at the moment are
necessarily skewed towards FTAs, because of the trade agreement
continuity process, but they will in due course shift towards
market access, which is terribly important.
(Glasgow East) (SNP)
T3. Can the Secretary of State explain what his Department is
doing to encourage the EU and US to resolve the Airbus and Boeing
subsidies dispute without resorting to tariff retaliation in
unrelated sectors, including UK agri-food products? [911912]
I had a number of discussions in the United States about that
issue this week, as the hon. Gentleman may have guessed. It is
likely that tariffs will be applied following the WTO
determination of the level of tariffs that the US is allowed by
law to set following the judgment on Airbus. Of course, the
judgment on Boeing, to which he alluded, is also coming. At some
point, we must ensure that both European countries and the United
States are able to give appropriate support to their aircraft
industries, because the alternative will be market access for
China, which will be in the interests of neither.
(Stoke-on-Trent South)
(Con)
T4. As South Korea is the third largest export market for
ceramics, does the Secretary of State agree that the recently
signed outline free trade agreement with South Korea is a huge
boost for the ceramics industry? [911913]
The transition agreement will replicate the effects of the
preferential market access in the existing EU-South Korea FTA,
providing certainty for businesses and allowing them to continue
trading on preferential terms. It will provide a firm basis for
the further strengthening of our ambitious trade and investment
relationship as we work together in future.
(Edinburgh South) (Lab)
T6. The Secretary of State promised this House that all bilateral
trade deals between the EU and other countries would be rolled
over by 29 March, including a bilateral trade deal with the EU
itself. How many will be done by 31 October? [911915]
I could just ask the hon. Gentleman to look up the answer that I
gave a few moments ago. We have signed roughly two thirds of the
deals already and we expect there to be more. As for the number,
it is well over 50%, and a large number of the countries in there
are agglomerated into blocs, but we are confident in terms of
trade that we will have two thirds or thereabouts.
(Northampton South) (Con)
T5. The Secretary of State rightly said that we will need an
agreement with the EU to allow a GATT 24 basic deal to apply, but
does he not accept that GATT 24 and a temporary FTA would save
the EU £13 billion in tariffs and the UK just £5 billion, so the
EU has every incentive to back it? [911914]
My hon. Friend makes an important point, but an article 24
agreement would cover tariffs and quantitative restrictions; it
would not cover services, standards and regulations. An agreement
covering those latter elements would have to be negotiated
separately and would probably take longer to strike. In the
meantime, the UK would be subject to the full array of existing
third-country checks and controls carried out as standard by the
EU. In other words, even if we both did agree an article 24
continuation, it would not cover access to the single market—it
would not be trading as usual.
(Bristol West) (Lab)
Further to the question from the hon. Member for North Ayrshire
and Arran (), is it not time that the
Department for International Trade undertook a thorough review of
all 29 or 30 countries identified as countries of concern for
human rights by the Government’s own Foreign Office?
We do, and we act in line with the consolidated criteria of the
EU. We look at all those elements. In fact, the Court of Appeal
was clear that the Government were rigorous and robust in doing
so.
