International Trade Ministers were answering questions in the
Commons. Subjects covered included...
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UK/US Free Trade Agreement
(Newcastle-under-Lyme)
(Con)
1. What recent assessment she has made of the potential economic
benefits to manufacturing industries of a free trade agreement with
the US. [901114]
The Secretary of State for International Trade ()
A free trade agreement with the US could deliver a £15 billion
increase in bilateral trade, increase manufacturing output and
benefit all parts of the UK economy, particularly the midlands,
Scotland and the north-east.
I thank the Secretary of State for that answer, and for the scale
of the Government’s ambitions for the trade deal. In
Newcastle-under-Lyme we have a number of firms that have US
subsidiaries or sister companies, or that themselves have US
parent companies. Can she confirm that a comprehensive UK-US
trade deal would benefit such firms by cutting red tape and
increasing the trading ties between our two countries?
My hon. Friend is absolutely right; every morning more than 1
million people in Britain get up and go to work for American
firms, and more than 1 million people in the US go to work for
British firms. We want a closer economic relationship so that we
can share ideas, products and goods, to the benefit of both
nations.
(Sefton Central) (Lab)
The Secretary of State told us on Monday that ceramics factories
in the UK could benefit from a US trade deal, but that is not the
view of the British Ceramic Confederation, which has warned of
the dangers that low-quality ceramics would have on UK industry.
Does she not accept that the manufacturing industry is right to
be concerned about the threat posed by the agreement she is
proposing?
Laura Cohen, of the British Ceramic Confederation, has said:
“A USA trade agreement could help our sector. For example, there
are high tariffs on ceramic catering-ware imports…and without
this barrier our exports to the USA could grow.”
Of course we will take action through the Trade Remedies
Authority to deal with the illegal dumping of ceramic products on
the UK market, but it is simply wrong to say that the ceramics
industry would not benefit from a US trade deal.
But Laura Cohen is not talking about the type of trade deal that
the Government are proposing, is she? The BCC has warned of the
dangers of the Government’s proposed mutual recognition clauses,
which is where the flood of low-quality imports would come from.
The Secretary of State’s own scoping assessment says nothing
about the impact of cheap US imports on UK manufacturing either,
so why will she not listen to the industry? Should the Government
not rethink their approach to the US agreement and look after our
own excellent manufacturing sector, rather than pursuing a policy
of “America First”?
I find this pretty ludicrous. The hon. Gentleman will have seen
in the scoping assessment that virtually every sector of the UK
economy, including manufacturing and agriculture, will benefit
from a US trade deal. Steelite International, a fantastic company
that I visited recently in Stoke-on-Trent, has also welcomed the
potential removal of tariffs on its products—up to 28% on
dinnerware—which it says will help it expand its operations.
(Witney) (Con)
Will the Secretary of State please comment on some of the parts
of her proposals that are likely to benefit manufacturing and
high-tech companies in west Oxfordshire and enable them to export
their goods to the United States?
One of the points that we laid out in our negotiation objectives
is that we want to achieve an advanced digital and data chapter.
Currently, 79% of all our services are provided remotely. A
digital and data chapter will give us the ability to underwrite
those transactions and do more electronically, which will provide
huge benefits to those high-tech industries in my hon. Friend’s
constituency.
(Edinburgh South West)
(SNP)
All this debate between the Secretary of State and Labour’s
Front-Bench spokesperson shows how important it will be to
scrutinise the small print of the deal, so will she allow this
Parliament a vote on the deal, such as the kind that the US
Congress will get, or does she think that America deserves more
democratic scrutiny of the deal than the United Kingdom?
We have a parliamentary system in this country, so for these
types of decisions the treaties are laid before Parliament
through the CRAG—Constitutional Reform and Governance Act
2010—process. I point out to the hon. and learned Lady that we
also have an extensive programme of engagement with business. We
have 17 expert trade advisory groups, through which we will ask
business for their specific feedback to ensure that we are not
lowering standards, and to ensure that we have the right
standards for our industry. That is the consultation process that
we are undertaking.
Goods Exports
(Kettering) (Con)
2. What the three fastest growing UK goods exports were in 2019.
[901116]
The Parliamentary Under-Secretary of State for International
Trade ()
UK goods exports were up 6.4% last year to a record £372 billion.
Interestingly, the three fastest growing UK goods exports in 2019
were: one, unspecified goods; two, works of art; and three,
jewellery.
Mr Hollobone
Are UK goods exports growing quicker to EU countries or to non-EU
countries?
In 2019, goods exports to the EU were down by 0.9% to £170.6
billion, while goods exports to the non-EU were up by 13.6% to
£201.5 billion.
UK/EU Trade Agreement
(Richmond Park) (LD)
3. What assessment she has made of the potential merits of a
trade agreement with the EU on similar terms to the EU-Australia
trade negotiations. [901117]
The Minister of State, Department for International Trade
()
The United Kingdom has published its approach to negotiations
with the European Union, and the first round of talks is already
under way. The United Kingdom is looking for a free trade
agreement with the European Union based on EU precedent. Whatever
the outcome of the talks led by and “Taskforce Europe,”
this year we will recover our political and economic independence
in full.
The question was about whether the Government are seeking to
agree what they call an Australia-style deal between the EU and
the UK. Given that there is no deal between Australia and the EU,
can the Government confirm whether they are happy to accept a no
deal between the UK and the EU?
We already have a deal with the EU that the Prime Minister
secured last year. The question now is whether we can secure a
free trade agreement with the EU. We seek a Canada-style deal,
but Australia trades perfectly effectively through a number of
side deals with the EU. Whatever happens, we are going to deliver
on the referendum result, fully leave the European Union and
provide British business and the British people with the
opportunities of global free trade.
(Brent North) (Lab)
Can the Minister confirm that, under what the Government
euphemistically call this Australia-style trade agreement, all
the bilateral investment agreements we have with EU states, which
were suspended while we were a member of the EU, will come back
into force? What assessment has he made of the likely dispute
proceedings that investors from those countries could launch and
of the impact that would have on UK trade?
The shadow Secretary of State may be moderately confused about
our purpose here today, as this is questions to the Department
for International Trade. As he is well aware, the European Union
negotiations are handled by the Cabinet Office, the Chancellor of
the Duchy of Lancaster and , reporting to the Prime
Minister.
(North West Leicestershire)
(Con)
What progress has been made in laying the groundwork for a
UK-Australia free trade agreement? Is a timetable in place for
the commencement of those negotiations?
This week we have published the proposals for the United States
deal, and my right hon. Friend the Secretary of State for
International Trade is ably leading on Australia, Canada, Japan
and, potentially, the comprehensive and progressive agreement for
trans-Pacific partnership. She will come to the House in due
course, hopefully soon, to lay out full proposals for the terms
of those negotiations.
(Windsor) (Con)
As the Prime Minister’s trade envoy to Ghana and other parts of
west Africa, I am delighted to be meeting a delegation this
afternoon to talk about our expertise in science and technology
and how we can help to support development in those countries.
Does the Minister agree that, as we look out to the rest of the
world post Brexit, it is trade with developing nations that will
deliver the jobs, prosperity and mutual benefit we seek?
I absolutely agree with my hon. Friend. He does an excellent job,
for which I thank him, as trade envoy to Ghana. We see enormous
potential for development and people’s life chances, particularly
on the continent of Africa, in free trade between us and Africa,
and around the world. Free trade is the route to prosperity, and
it is the route to lift people out of poverty. This Government
will always champion it for the most deprived people in the
world.
(Warwick and Leamington)
(Lab)
The Minister has just mentioned the Department’s economic impact
assessments on future trade deals with Australia, New Zealand,
Japan and a CPTPP-type deal, but he will understand that a
CETA-type deal—a Canada-style deal with Europe—will hit our
economy by 6.2%. To what extent does he believe that the trade
deals done with Japan, Australia, New Zealand and so on will
compensate for that huge loss to our economy?
We do not see these things as mutually exclusive. We are now
going to be an independent sovereign nation, seeking free trade
agreements around the world, liberating British business, with
the opportunity to tap in to some of the fastest-growing
economies around the world. We want a good deal with the EU and
with partners around the world, to the mutual benefit and
prosperity of all our citizens.
Foreign Direct Investment
(Amber Valley) (Con)
4. What recent assessment she has made of the potential
contribution of future foreign direct investment to the economy
of each region of the UK. [901119]
(Carshalton and Wallington)
(Con)
17. What recent assessment she has made of the potential
contribution of future foreign direct investment to the economy
of each region of the UK. [901136]
(Filton and Bradley Stoke)
(Con)
18. What recent assessment she has made of the potential
contribution of future foreign direct investment to the economy
of each region of the UK. [901137]
The Parliamentary Under-Secretary of State for International
Trade ()
Winning further foreign direct investment is crucial to the
delivery of rising living standards and the levelling up of
left-behind communities up and down the land. Companies such as
Ferrero, in the constituency of my hon. Friend the Member for
Amber Valley (),
which exports wonderful, quality chocolate all over the world,
will potentially benefit, as will other UK chocolate producers,
as a result of our UK-US free trade agreement.
I thank the Minister for that answer, and I join him in valuing
the investment that Ferrero has brought to the old Thorntons
factory. Most of the large employers in my constituency have had
FDI at some point or other in their history, so what more can the
Government do to ensure that that investment is spread out evenly
across the country, and is not just focused in London and the
south-east?
I thank my hon. Friend for that question, because FDI is so
important to the UK. Foreign-owned firms represent only 1% of
businesses, yet they contribute 22% of economic output and
deliver 15% of employment. My Department uses our regional teams
right around the country, and in 110 countries around the world,
to make sure that we get that message out. Only yesterday, I
hosted a meeting with regional leaders from right across the UK
at No. 10 to show the importance we attach, as my hon. Friend
does, to sharing these FDI benefits right across the country.
Does the Minister agree with me and with residents of Carshalton
and Wallington that instead of talking down London, as the
current Mayor does, we should be supporting Shaun Bailey’s idea
to put in a deputy Mayor for trade to make sure that London
remains a destination with one of the highest levels of FDI in
the world, to attract businesses and entrepreneurs?
I am grateful to my hon. Friend for that. I think the people of
London want a Mayor who makes things happen, who is a champion of
business and who recognises that, for all the wealth in London,
there are too many people left behind. We need a Mayor who gets
on with the job—one who does not act like a commentator but who
actually acts like a leader.
Does my hon. Friend agree that free ports will help to attract
significant foreign investment, and regenerate and create jobs in
some of our communities and deprived areas?
I thank my hon. Friend for his question, on which he is right. He
is constantly championing the interests of his area, not least
because of the need for regeneration. Free ports offer that
opportunity. We are in constant talks with The Bristol Port
Company, and I know that he is working closely with the West of
England Mayor to make sure that that regeneration and the
benefits of FDI are brought to his part of the country, with all
the prosperity and employment benefits that that will bring.
(Bradford South) (Lab)
The Minister will be aware of the concerns of businesses and, in
particular, of producers supporting our regional economies about
the impact of the proposed most favoured nation tariffs on their
capacity to attract investment in new technology that is
essential for our transition to net zero. What assessment has he
made of the impact of the proposed measures on the UK’s
attractiveness as a destination for investment, particularly in
new green technology?
I thank the hon. Lady for her question. The consultation closes
tonight and we are determined to get the right balance. We are
clear that we are going to have a tariff regime that benefits UK
consumers and business, and allows us to align ourselves most
effectively to where 90% of global growth is expected by the
International Monetary Fund to be in the next five years or so,
which is outside Europe.
I thank the Minister for that answer, but he is not addressing
the specific concern that the tariff schedule could hurt domestic
producers by stifling FDI in precisely the places in the country
that need it most. Are the Government really going to ignore
industry concerns, potentially costing jobs?
I would have hoped that, after sufficient time in the House, the
hon. Lady might have understood how a consultation worked. The
consultation closes today, and I cannot comment on a consultation
that has not yet closed. What I can tell her is that, as she will
be delighted to hear, under this Government the UK has attracted
more FDI than any other country in Europe. Indeed, we have
attracted more FDI in aggregate than Germany and France combined.
If she and her colleagues on the Labour Front Bench were to
support business and enterprise in the way we do, instead of
opposing them, we might see more jobs and prosperity.
(Strangford) (DUP)
With Northern Ireland being recognised as the cyber-security
capital of the United Kingdom of Great Britain and Northern
Ireland, will the Minister outline what steps are being taken to
highlight this massive international market?
As I said in an earlier answer, I was pleased to meet Northern
Ireland representatives in No. 10 Downing Street yesterday. When
I visited Belfast last year, I learnt more about the phenomenal
tech, and in particular cyber, capability there is in Belfast.
The Department is determined to make sure that the message of how
investable and how strong Northern Ireland is, and what great
capability it has, is understood through all our posts in
countries around the world.
(Kensington)
(Con)
There has been a huge amount of foreign direct investment in the
financial services sector, not only in London but throughout the
regions and in Scotland. Can my hon. Friend assure me that, in
all free trade negotiations, the interests of the financial
services sector will be protected?
I thank my hon. Friend, who characteristically puts her finger on
an important point. Services have too often not had sufficient
focus in trade agreements. We are very much looking to put
financial services, data and other elements at the heart of our
trade policy, which will be great for the City of London.
However, it is important to note that there are more people
working in financial services in the northern powerhouse than
there are in the whole of Frankfurt.
Renewable Energy: Exports
(Portsmouth South) (Lab)
5. What steps her Department is taking to support exports by the
UK renewable energy sector. [901121]
The Parliamentary Under-Secretary of State for International
Trade ()
We are working with the Department for Business, Energy and
Industrial Strategy to maximise the overall economic impact of
our world-leading renewable energy sector, including that of
exports. The Department undertakes a range of promotion
activities, including running trade missions and dedicated
workshops.
Mr Morgan
I thank the Minister for that response. What support has the
prosperity fund awarded to fossil fuel projects in developing
countries, and how was that funding assessed in terms of the
environmental and social impacts of those projects?
All investments by the prosperity fund are examined against the
raft of UK Government policies, objectives and aims, and we do
that in all cases in each continent of the world.
(Cleethorpes) (Con)
As the Minister is aware, the Grimsby and Cleethorpes
constituencies are major centres for the renewables sector. Many
of the smaller businesses are vital parts of the supply chain,
and they would like to get more involved in exports. Will the
Minister agree to meet me and a delegation from the local
industry to explore the possibilities?
I am grateful to my hon. Friend. He will be aware that the
offshore wind sector deal, published in March 2019, sets an
ambition of increasing exports fivefold to £2.6 billion by 2030.
He and I, in our respective constituencies, have seen the
transformation of the economics of offshore wind. We are now
seeing UK Export Finance, for instance, financing major
investments in Taiwan and other parts of the world, with UK
exports and UK expertise, not least from my hon. Friend’s
constituency, at the heart of that. I would be delighted to meet
him.
(Bristol East) (Lab)
17. A recent investigation by “Newsnight” and Greenpeace found
that UK Export Finance is financing oil and gas companies that
will emit 69 million tonnes of carbon a year—nearly a sixth of
the UK’s annual emissions. It is ridiculous to talk about
tackling climate change in this country when we are exporting our
carbon footprint abroad. Will the Minister commit to phasing out
this support by 2021? [901135]
The Government are investing £2.5 billion in clean growth
innovation by 2021, as set out in the industrial strategy. The
offshore wind sector deal commits the sector to investing up to
£250 million, building a stronger UK supply chain. It is a
transition—a transition away from fossil fuels to cleaner
technologies—and we intend to drive that ever faster.
Foreign Direct Investment: Film and Television
(Bolton North East)
(Con)
6. What recent assessment she has made of the ability of the UK
to attract foreign direct investment in (a) film and (b)
television production. [901122]
The Parliamentary Under-Secretary of State for International
Trade ()
Foreign investment in film and TV is booming. Just last month, I
met representatives of the US’s Blackhall Studios, and they
unveiled plans for a major investment in conjunction with Reading
University, which should bring £500 million a year in inward
investment to the UK. That studio alone is expected to employ
3,000 people and further strengthen the UK industry as a creative
and economic triumph.
As everyone knows, Bolton is the new Hollywood. Having appeared
in the Netflix show “The Stranger” and in “Top Gear”, which is
filming in town today, Bolton has generated more than £200,000 in
the past 12 months from being used as a film location. Will the
Minister give an indication as to how a US-UK trade deal will
benefit Bolton’s creative industries and cement our place as the
newest leading media centre in the UK?
Smoothing access to the US through an FTA will help Bolton, and
having such an excellent and film-ready advocate for Bolton as my
hon. Friend, I look forward to him appearing, perhaps even with a
speaking role, in future productions. It is notable that, in the
past two years alone, we have seen the BBC, Netflix and Sky all
using Bolton as locations for major productions, including “Peaky
Blinders”, which I can certainly see him in; the “Last Tango in
Halifax”, where he may be a younger love interest; “The
Stranger”, although I know he never tries to be; and “Cobra”,
which perhaps suggests his action credentials.
Mr Speaker
The famous film “Spring and Port Wine” was also filmed in Bolton.
(Glasgow Central)
(SNP)
Mr Speaker, you should also know that the filming of the new
Batman movie has been happening in my constituency in Glasgow.
Is it still the intention of the UK Government not to implement
the EU copyright directive because of Brexit? If so, what
analysis have they done on what impact that will have on foreign
direct investment in film and the creative industries?
Now that we have departed the EU, we are determined to ensure
that we remain the leading production hub globally, as we
increasingly have been in film, not least thanks to the skill,
expertise and beauty of the people and the places, including in
the hon. Lady’s constituency.
Bilateral Trade Relations: Japan
(Gedling) (Con)
7. What recent steps she has taken to help improve bilateral
trade relations with Japan. [901123]
(North West Durham)
(Con)
10. What recent steps she has taken to help improve bilateral
trade relations with Japan. [901128]
The Secretary of State for International Trade ()
Japan is the third largest economy in the world and a key partner
of the UK. I visited Japan in September to promote UK trade and
we are shortly likely to commence our free trade negotiations
with it.
London 2012 offered an opportunity not only for Britain to
showcase itself to the world, but for the competing nations to
showcase themselves to the host nation. May I ask what steps the
Department is taking to promote Great Britain at the forthcoming
Olympic and Paralympic games in Tokyo?
I understand that Japan will be using a lot of British-made
products in the Olympics, for example, the white water obstacles
made by UK company RapidBlocs. During Tokyo 2020, we will be
hosting a series of promotional events, and I look forward to
Team GB celebrating its success with Scotch whisky and English
sparkling wine.
Mr Holden
Nissan is very important to the north-east and employs hundreds
directly in my constituency and hundreds more via the supply
chain. What further benefits will a new free trade agreement with
Japan, which is currently being pursued by the Government, bring
to manufacturers and suppliers in my constituency?
My hon. Friend is absolutely right. Nissan’s Sunderland plant is
the most productive in Europe, and I can see every reason why the
Japanese are likely to put even more investment there and make
more cars there. There are opportunities through the Japan FTA
and the US FTA where Nissan already exports from its UK factory.
(Huddersfield)
(Lab/Co-op)
Should not the Secretary of State be looking at the way in which
we source things in this country—whether from Japan or China. We
know that many of the drugs that we need to fight this virus are
actually made in India, and it is not allowing us to have a full
complement of imports. We also know that firms all over our
country are closing down because China is the workshop of the
world and it is exporting nothing. What is she going to do in the
future to secure those supply chains?
First, we are participating in the efforts to tackle coronavirus
through the cross-Government working group. The Prime Minister
chaired a Cobra meeting on Monday to make sure that we are
dealing with those supply chain issues. Furthermore, I expect the
Trade Remedies Authority to play a strong role in making sure
that we do not see the dumping of products on the UK market.
UK/US Trade Agreement: SMEs
(South Ribble)
(Con)
8. What recent assessment she has made of the potential economic
benefits to small and medium-sized enterprises of a trade
agreement with the US. [901124]
The Secretary of State for International Trade ()
Some 30,000 small and medium-sized enterprises already trade with
the United States. In the new free trade agreement, we will be
asking for a dedicated SME chapter that removes customs red tape,
does more stuff online and makes it much easier for our fantastic
small businesses to trade with the United States.
Many businesses in South Ribble stand to benefit hugely from a
free trade agreement with the USA—not least Leyland Exports, a
commercial vehicle and silicone hose specialist. Does the
Secretary of State agree that we must push hard to secure a free
trade deal that benefits businesses of all sizes in all regions,
and supports supply chains?
My hon. Friend is right. I understand that Leyland Exports can
face up to 25% tariffs on the export of goods vehicles to the
United States, and 5% tariffs on its exports to Australia. In the
free trade agreements we are looking for from the United States
and Australia, one of our key asks will be to get rid of those
tariffs, and to make it much easier for the car industry—by
reducing testing and red tape—to ensure that we can get our
fantastic exports into those markets.
UK Ports of Entry
(North Tyneside)
(Lab)
9. What recent discussions she has had with Cabinet colleagues on
the preparedness of UK ports of entry to facilitate international
trade after the transition period. [901125]
The Minister of State, Department for International Trade
()
We are using the transition period to ensure that the UK rises to
the challenges of leaving the European Union while being ready to
take advantage of all the benefits. Work on ports preparedness is
being led by the Cabinet Office’s border delivery group. I remind
the House and onlookers that tonight is the closure of our
consultation on the new UK global tariff.
Can the Minister ensure that virtual free ports will be
considered during the free ports bidding process, so that we can
protect existing jobs in the north-east as well as creating new
ones?
The hon. Member makes an extremely good point, and that is one of
the points of the free port policy. We launched the consultation
last month with the Command Paper, and it closes on 20 April. It
would not be proper for me to make comments specifically about
the location of future free ports, but the Tyne port in
particular is very important to this country, as it is the second
largest vehicle port in the nation. Free ports are designed to
support jobs, trade and investment.
UK/US Trade Agreement: Thames Valley
(Buckingham) (Con)
11. What assessment she has made of the potential economic
benefits to the Thames valley of a trade agreement with the US.
[901129]
The Minister of State, Department for International Trade
()
An ambitious United States free trade agreement could boost the
economy in the south-east, including the Thames valley, by £622
million in the long run, supporting the growth of key local
industries such as professional business services, and automotive
and digital businesses. The FTA presents a golden opportunity for
the region, which has a thriving trade with America, with the
equivalent of £14,000 of goods exported to the US every minute.
The Thames valley is home to many high-tech businesses, not least
in the north of my constituency of Buckingham crossing into
Northamptonshire at Silverstone Park. Can my right hon. Friend
outline the steps he is taking to ensure that we are supporting
high-tech businesses at places such as Silverstone Park to grow,
prosper and bring global solutions in areas such as low-carbon
transport, and that they are at the forefront of our negotiations
for a free trade deal with the United States?
May I start by congratulating my hon. Friend yet again on being a
brilliant new representative for the Buckingham constituency? The
Silverstone technology cluster includes excellent tech and
start-up companies such as Advanced Automotive Technologies,
Altair Engineering, room44 e-bikes and many more. Those are
exactly the kind of companies that we want to see exporting more
to the USA and to benefit from fewer hurdles to trade. That is
why both sides want an SME chapter in the trade deal.
(Newcastle upon Tyne Central)
(Lab)
The Government’s own figures show that a US trade deal could
raise the north-east’s economy by a maximum of 0.4% a year and
that a no-deal Brexit will cut the north-east’s economy by up to
10%. Is this the Government’s idea of levelling up—to destroy
thousands of jobs in the north-east?
The hon. Member does not do this question justice. Our objective,
of course, is to have both a very good free trade deal with the
European Union and a new trade deal with the United States of
America, which would have the potential to raise the gross value
added of the north-eastern region by some £170 million. She
should join us, work with us and ensure that the benefits of
these deals can be heard by all her constituents across the
region.
Global Exports: Tech Start-ups
(Meriden) (Con)
12. What recent steps she has taken to support UK tech start-ups
to export globally. [901130]
(South West
Hertfordshire) (Con)
13. What recent steps she has taken to support UK tech start-ups
to export globally. [901131]
The Secretary of State for International Trade ()
We are a world leader in tech. Following our departure from the
European Union, we have launched a new GREAT campaign that
promotes everything from our agri-tech to our gaming
capabilities. The Under-Secretary of State, my hon. Friend the
Member for Beverley and Holderness (), recently led a delegation
to Las Vegas where he promoted UK tech at the Consumer
Electronics Show.
To meet the challenges of our time, we must ensure that we create
an environment where we encourage tech start-ups to set up,
thrive and innovate. What are the Secretary of State and
Ministers doing to ensure that tech start-ups in the west
midlands are able to fulfil their potential?
Birmingham has the largest tech sector outside London. It has
firms specialising in FinTech, games, health-tech and
cyber-security. We will keep the UK at the top of the investment
tree. Last year we saw investment in UK tech growing faster than
in any other nation in the world. We need to keep at the
forefront, and there are huge opportunities for our tech
industry.
Will my right hon. Friend the Secretary of State join me in
celebrating the fact that last year investment into the UK’s tech
start-ups grew more than anywhere else in the world? Will she
outline the steps she is taking to build on this fantastic
achievement?
After we have left the European Union, we have a huge opportunity
to strike new data and digital agreements with the rest of the
world. We are looking for a data and digital chapter in the US
FTA. We are looking for an advanced data and digital chapter with
Japan. We have the opportunity to create a global powerhouse here
in the UK.
(Brentford and Isleworth)
(Lab)
As the Secretary of State said, the UK is a world leader in
future technology, yet it is also assessed to be one of the
sectors most at risk from Brexit. Therefore, new opportunities
for tech sector start-ups are absolutely important. The
Department was recently criticised by tech sector magazines for
cutting funding for the tradeshow access programme, which is used
by entrepreneurs in the tech sector to get to potential clients
overseas. So will she set out what funding will be available, and
with what long-term guarantees for those SMEs and start-ups, so
that they can make the best of opportunities through the TAP?
I disagree with the premise of the hon. Lady’s question. Now that
we have left the EU, we have the opportunity to set our own rules
and regulations in tech, and really lead the world in areas like
artificial intelligence and blockchain. That is exactly what we
are seeking to do with these new free trade agreements. We are
also seeking, at the World Trade Organisation, to lead in areas
like the joint statement on e-commerce, and looking for new
SME-friendly chapters in our trade deals to help exactly these
types of tech start-ups to sell their goods around the world.
Trade Agreements: Non-EU Countries
(Ealing Central and Acton)
(Lab)
14. What recent progress she has made with her non-EU
counterparts on negotiations for future trade agreements with
those countries. [901133]
The Minister of State, Department for International Trade
()
As we said earlier, only this week we have launched our
negotiating platform for a free trade agreement with the United
States. Those for Australia, New Zealand and Japan will follow in
due course, and my right hon. Friend the Secretary of State will
set those out. My role within the Department is to support her in
scoping out and assessing the potential for future free trade
agreements around the rest of the world.
Dr Huq
In reality, the roll-over deals struck to date amount to just 8%
of our existing total trade, yet we were told that all this would
be sorted by one minute past midnight on 31 March last year. Are
the US negotiations being conducted in tandem with the EU ones,
with fully trained teams aware of what each other is doing so
that that can be factored into any future relationship? I am sure
that other countries will be thinking the same, particularly as
our objectives seem to be so divergent from the US’s “America
first” aims?
I understand that the hon. Lady attended a briefing yesterday on
the negotiations, led by our brilliant chief negotiator. She asks
whether we are pursuing concurrent trade negotiations with the EU
and the United States. The answer is yes we are, in exactly the
same way that the EU is currently negotiating with the United
States.
Brendan O’Hara (Argyll and Bute) (SNP)
Further to that question and to the question asked by the hon.
Member for Richmond Park (), I want to be absolutely
clear about one thing: there is no such thing as an Australian
free trade deal with the EU. An Australia-terms Brexit is
actually a no-deal Brexit, and no amount of spin or repackaging
can hide that fact. Does the Minister think that no deal is an
acceptable outcome, given the near apocalyptic conclusions of his
own Government’s Yellowhammer report, which talked about two and
a half day waits at ports for lorries? Is that acceptable?
A free trade agreement with the European Union is our ambition,
and we hope that it shares that ambition. Our ambition is also to
engage in free trade negotiations, which the Secretary of State
is leading on, with the United States, Australia, New Zealand and
Japan in the first instance. I can tell the hon. Gentleman and
sceptics on the Opposition Benches that the interest in the
opportunities for the United Kingdom to engage bilaterally around
the world, now that we control our own independent trade policy
for the first time in almost 50 years, is almost unquenchable—I
think of the conversations we have had in the last six months
with the Gulf Co-operation Council, Vietnam, Brazil, Chile,
Morocco, Algeria and Commonwealth Trade Ministers. I just hope
that the hon. Gentleman’s constituents will welcome the
opportunities that we are giving them to trade with the world and
enjoy ever increasing prosperity.
(East Londonderry)
(DUP)
Is the collective mind of Government concentrated on ensuring
that these deals are shared across the entirety of the United
Kingdom?
I am grateful to the hon. Gentleman for that question. The answer
is unequivocally yes. We are determined that the entire United
Kingdom—all nations and every region of it—will benefit, and I
had the pleasure of returning home to Northern Ireland only a
couple of weeks ago to talk about those ambitions with the
Executive and businesses in Northern Ireland.
Trade Strategy
(Ilford South) (Lab)
15. What recent assessment she has made of the effectiveness of
the Government’s trade strategy. [901134]
The Parliamentary Under-Secretary of State for International
Trade ()
UK exports are at a record high, with the latest figures showing
exports of £689 billion—up 5% on 2018. We are committed to doing
even more, building on the measures in our export strategy. Just
last month, we launched a new business support campaign, helping
businesses of all sizes to fulfil their exporting potential.
Over the last few weeks, the good residents of Ilford South have
been writing to me in greater and greater numbers because they
are concerned about the sectarian violence we are seeing in some
of our Commonwealth partners in certain regions of the world. Can
the Minister reassure me and the residents of Ilford South by
telling us what steps he will take to ensure that the
Government’s trade strategy always promotes human rights abroad
and does not embolden or reward regimes or Governments who
oppress communities that are a minority in number?
The hon. Gentleman is quite right to highlight the issue of
trade’s role in parts of the world where human rights are being
breached. Right across the Department, we seek to ensure that all
such considerations are taken into account, while recognising the
need to engage with regimes that may have less than perfect
Governments, for the benefit of the people there. It is a balance
that we take very seriously, and I look forward to further
discussion with him to get it right.
(New Forest West) (Con)
There are lessons for our strategy arising from Japan’s rather
unsatisfactory negotiations with the EU, are there not?
We could look at Japan, or we could look at Mercosur, which took
20 years of negotiation. Some say that the UK shorn of the heft
of the EU will be less able to do deals. There are ways in which
that would be true, but fundamentally, with agility, as many
countries have shown, we can do more deals more quickly and, most
importantly, bring greater prosperity, employment and opportunity
to my right hon. Friend’s constituents and mine as a result of
the UK having its own independent trade policy for the first time
in 40-odd years.
Topical Questions
(St Austell and Newquay)
(Con)
T1. If she will make a statement on her departmental
responsibilities. [901139]
The Secretary of State for International Trade ()
Following our departure from the EU, the UK has established
itself as an independent trading nation. On Tuesday, I was the
first UK Trade Secretary in almost 50 years to make a speech at
the World Trade Organisation representing the UK as an
independent trading nation. We will use our position at the WTO
to champion free trade, champion reform and make the case for
liberalisation in digital and services. Mr Speaker, I can tell
you that Britain is back.
The British Egg Industry Council recently commissioned a report
on the impact that changes to import tariffs would have on UK egg
producers. The report particularly highlighted concerns about
cutting import tariffs on egg products when they come from
countries with much lower welfare standards. How does my right
hon. Friend plan to protect the good eggs, such as St Ewe Free
Range Eggs in my constituency, which produces the finest free
range eggs money can buy, against the bad eggs from countries
with lower welfare standards?
The consultation on the UK global tariff, which will set the most
favoured nation tariff rate for eggs, among other products,
closes tonight, so I suggest that my hon. Friend gets the
eggs-cellent company in his constituency to put in a submission
to the consultation and make its views known.
Mr Speaker
You’ve cracked that one before!
(Brent North) (Lab)
The Secretary of State will be familiar with the Brexit voucher
scheme that has been launched by the Irish Government to support
small and medium-sized enterprises trading across borders and
affected by Brexit. The Dutch have introduced a similar scheme
paying grants of over €2,000 and loans of up to €1.5 million.
What assessment has she made of those measures and whether they
are compliant with state aid rules, and if they are, why has she
not introduced any similar measures to support our own SMEs,
which face unknown tariffs, increased checks and inspections, and
substantial delays to their trade?
We are working very closely with the Cabinet Office to make sure
that businesses have all the information they need to prepare for
transition at the end of this year. This is also an opportunity,
of course, to get more businesses trading with the rest of the
world, and we will be saying more about this soon in our new
export strategy.
(South Cambridgeshire)
(Con)
T2. My constituency of South Cambridgeshire is not just the life
sciences capital of the UK or of Europe, but it claims to be the
life sciences capital of the world. It has the global
headquarters of AstraZeneca, the Wellcome Sanger Institute, which
is leading the world in genome sequencing, and Abcam, a start-up
company now worth £3 billion, which is leading the UK in antibody
products, and many of these are exporters. What assessment has
the Secretary of State made of the commercial opportunities for
these firms of a potential UK-US free trade agreement? [901140]
The Minister of State, Department for International Trade
()
I thank my hon. Friend for that question. When I was previously
in this job, I visited the sector in Cambridgeshire. We know that
the life sciences industry contributes £74 billion a year to the
economy, creating 250,000 jobs and developing life-saving
medicines for UK patients. Annually, the east of England exports
£711 million of medical and pharmaceutical products to the US.
Estimates show that a UK-US FTA could boost the whole region’s
economy by £345 million in the long run.
(Dundee East) (SNP)
Will the Secretary of State update the House on the progress
being made to ensure that the legal services trade between the UK
and the European Union can be maintained after the end of this
year?
That is properly a question for a different Question Time,
because it is Taskforce Europe that is responsible for our future
trading relations with the European Union. What I can say to the
hon. Member is that the mutual recognition of professional
qualifications is one of the key aspects we are looking at in
free trade agreements with counterparties across the world.
I am glad that that is being looked at because, right now, if an
agreement is not reached between the UK and the European Union,
UK legal practitioners—lawyers—will no longer be protected by
legal or professional privilege inside the European Union. May we
have a specific focus on that to ensure that jeopardy is removed,
but also, more importantly, to ensure that the associated
disincentive to trade in legal services is removed?
Again, this is really a matter for Taskforce Europe, but I will
pass on the hon. Member’s question to it to give him a more
detailed response. What I can say is that the DIT team promote
trade in legal services, particularly the mutual recognition of
qualifications, in all our talks. I have done that personally in
this role, and the Secretary of State is committed to doing so.
We make sure that this is promoted, particularly regulator to
regulator, including for legal services, accountancy,
architecture and all our professional services.
(Ynys Môn) (Con)
T4. Can the Secretary of State confirm that the free trade
agreement will benefit the whole of the UK, including my
constituency of Ynys Môn in north Wales, which will be
disproportionately affected by the collapse of Flybe overnight?
And does she agree that the port of Holyhead is a prime candidate
to be one of the new free ports? [901142]
My hon. Friend has been lobbying extremely hard for Holyhead to
be considered as a free port, and we are very grateful for all
her input to the free port consultation. She is right, of course,
that a US free trade deal will benefit every single part of the
United Kingdom, including Wales. There are particular
opportunities for the export of Welsh lamb into the United
States, where it is currently not allowed. I also agree that we
need to ensure—I know the Transport Secretary is working hard on
this—that we continue to keep routes open and that new companies
can operate those flight routes, which are so vital for our
connectivity.
(Coventry South)
(Lab)
T3. Last summer, the Government were found to have unlawfully
committed arms exports to Saudi Arabia for use in Yemen. In
September it emerged that this ban had been repeatedly violated.
In response, last month the Secretary of State said processes had
been updated. If she genuinely wants to give confidence that this
Government will not put the interests of arms dealers ahead of
human rights yet again, will she commit to an immediate embargo
on all arms exports to Saudi Arabia? [901141]
I was very clear in the statement I made to the House that there
had been problems with our process. I subsequently issued a
written ministerial statement, followed by an internal review
conducted by another Government Department.
We have now fixed that problem. The information is now being
provided in real time, and that fulfils the requirements of the
court order.
(North Warwickshire)
(Con)
T5. [R] Israeli exports to the UK grew by 286% over the last
decade, and bilateral trade levels are also at a record high, so
it was no surprise that one of the first post-Brexit trade
agreements we signed was with Israel. What steps will the
Secretary of State be taking to further strengthen and enhance
our trade relationship with Israel and go beyond the terms of the
continuity agreement that is already in place? [901143]
The Minister of State, Department for International Trade
()
We strongly value our trading relationship with the state of
Israel and are working closely with the Israeli Government to
implement the UK-Israel trade and partnership agreement, but my
hon. Friend is absolutely correct to identify the opportunities
for us to do so much more. In my constituency, the town of
Bournemouth is twinned with Netanya in Israel, and I have seen
first-hand the opportunities in the innovation and tech sectors.
We are working with Israeli counterparts to host a UK-Israel
trade and investment conference in London, whose primary focus
will be scoping out and identifying new opportunities for
collaboration between Israel and the United Kingdom.
(Newport West) (Lab)
T7. Bearing in mind the latest comments coming from the US, what
steps will the Minister take to provide legal safeguards and
reassure the British public that our food and animal welfare
standards will not be at risk in a US-UK trade deal? [901146]
The hon. Lady can see that laid out in black and white in our
objectives: we simply will not do a deal that undermines our food
safety standards, and we will also retain our very high animal
welfare standards. That is very clear and, ultimately, if the US
is not prepared to agree to that, we will walk away.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
T6. The Secretary of State knows that I am very excited about the
prospects for Scotland to grow its exports. Scottish Development
International does a good job, but it does not have, as it would
concede, the global reach of her Department. So to ensure that
Scottish businesses get the maximum support going forward to grow
exports, will the Minister commit today to increase the
Department’s presence on the ground in Scotland? [901144]
(Edinburgh South West)
(SNP)
No, thank you!
The Parliamentary Under-Secretary of State for International
Trade ()
I am grateful to my right hon. Friend the Member for
Dumfriesshire, Clydesdale and Tweeddale (), who sets an example—not
least to the party over there, the SNP—in championing the
interests of Scottish workers and Scottish business, regardless
of politics. [Laughter.] The hon. and learned Member for
Edinburgh South West () laughs, but all too often
she sits there and says—as she did just now, chuntering from a
sedentary position—“We don’t want it”: she does not want more
resource from the UK Government to support Scottish business. If
ever we had an example of how the separatist SNP put that single
agenda ahead of the interests of the Scottish people, that was
it. Thank the Lord that we have Members like my right hon. Friend
to stand up for us.
(Arfon) (PC)
T8. Is the Secretary of State confident that the Government
stance in the EU trade negotiations meets the needs of successful
horticultural businesses such as Seiont Nurseries in my
constituency, whose time-sensitive exports just will not thrive
with delays at the ports, regulatory divergence and punitive
tariffs? [901147]
We are leaving the EU so that we can make our own regulatory
decisions, including about how we manage our agriculture and
horticulture. Of course we want to get the best possible free
trade deal with the EU, but that does not mean continuously
harmonising with its regulations.
(Preseli Pembrokeshire) (Con)
The top source market of foreign direct investment projects
coming into the UK continues to be the United States, by a
considerable margin. Does that not underline the importance of
Heathrow and of the transatlantic aviation route as an enabler of
those deals? Will the Minister confirm that the Government are
still committed to growth in that important market?
My right hon. Friend is correct to highlight the importance of
Heathrow and transatlantic links with the US and beyond—not only
for exports, but for foreign direct investment. I am sure that he
and the rest of the House will be kept informed as Government
policy develops.
(Sheffield South East) (Lab)
T9. In the middle of last year, I visited the port of Rotterdam,
a major trading port for us—for goods from not just within the EU
but outside it as well. At the time, that port was taking on more
than 300 new customs officers and more than 100 new vets for the
trade in animals and animal products. Will the Secretary of State
confirm whether the UK ports are making similar arrangements? If
so, can she give the House an estimate of the cost? [901148]
We are making extensive preparations at our ports to cater for
all possible scenarios of outcome from the current talks with the
European Union; we are very much following the philosophy of
preparing for the worst but working for the best. We are making
sure that, across Government, all the resources will be in place
to deal with a whole range of eventualities as they may arise at
the border.
(Stroud) (Con)
Last weekend, worrying comments were reported in the Mail on
Sunday questioning the need for UK farming and agriculture for
our economy. This is at a time when farmers’ fields are saturated
and they are lambing in really difficult conditions—they did not
need that over their cornflakes on Sunday. Will my right hon.
Friend give Stroud farmers and farmers across the UK confidence
that the Government will stand up for them in all trade
negotiations, and will she reconfirm their importance to our
economy?
My hon. Friend is right: British farming is vital, for its food
production, for its custodianship of the environment and for the
enjoyment it provides in all our lives through its fantastic
products. She will notice from the US negotiating objectives and
scoping statement that agriculture will benefit, because there
will be more opportunities to export our fantastic lamb and beef
and we can cut tariffs on dairy products. There are lots of
opportunities, and I want British farmers to take them up.
(Newcastle upon Tyne Central)
(Lab)
Unlike that Government aide, in the north-east we know that we do
need farmers—not least because they protect our glorious
Northumberland and County Durham countryside. Can the Secretary
of State give a commitment to protecting the small-scale farmers
and their high-welfare and farming standards in any trade deal?
As the hon. Lady will be aware, we are developing new farming
support policies to supersede the common agricultural policy.
Those will be much more suited to British farmers, making sure
that we are supporting farmers to protect the environment and
produce great products. In our trade agreements I have been very
clear that there will be no diminution in our standards.
(Witney) (Con)
Some of our closest friends and most productive trading
relationships have always been in the Commonwealth, and it is
time that this was reinvigorated. What are Ministers doing to
explore Commonwealth free trade?
I hosted a meeting in London last year with the Commonwealth
Trade Ministers. There is a huge amount of enthusiasm to work
more closely together. One of our first priority trade deals will
be with Australia and New Zealand. We are also creating a
Commonwealth caucus at the World Trade Organisation. Commonwealth
countries represent 33% of delegates to the WTO. We can be a real
force in making the case for free trade and for small countries
not to be overwhelmed by big trading blocs.
(Glasgow Central)
(SNP)
What action is the Secretary of State taking to ensure that food
standards are upheld in future trade agreements, specifically to
protect infant and child health?
We are very clear that in future trade agreements, we will
maintain our food standards. We were clear about that in the US
objectives and we will be clear about it in subsequent
objectives.
