Trade Deals with ASEAN Countries
(Wyre Forest) (Con)
What progress she has made on securing trade deals with ASEAN
countries.
The Secretary of State for International Trade ()
Last year, we secured trade deals with Vietnam and Singapore.
This month, I submitted our application to CPTPP—the
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership—a huge free trade area covering £9 trillion of GDP,
which contains four ASEAN countries.
[V]
First, I congratulate my right hon. Friend on everything she and
her Department have achieved in terms of signing trade deals
across the world. It is certainly important that the UK continues
to engage in deepening its trading relationships with its close
allies and trading partners, such as Australia, New Zealand and
the United States, but there are also many other significant
trading partners and friends across the globe, such as the
Kingdom of Thailand, where I serve as the Prime Minister’s trade
envoy. Could my right hon. Friend see her way to prioritising
Thailand in the next round of countries to engage in formal free
trade agreement negotiations, so that we can formalise our
trading relationship with this long-standing and valued trading
partner?
My hon. Friend is right to highlight the importance of Thailand.
We have a bilateral relationship worth £5 billion a year and he
is doing a fantastic job as our trade envoy to that great
country. We are currently conducting a joint trade review to
identify priorities in agriculture, pharmaceuticals and food and
drink, and this is strong groundwork for a future FTA
negotiation.
(Islington South and Finsbury) (Lab)
I am delighted to see that the Secretary of State is answering
questions about the 2.9% of our global trade that we have with
ASEAN countries, having refused to answer questions about the 47%
of our trade with Europe. However, as that is clearly her
priority, can she tell us this: why has she decided not to
suspend Cambodia’s trade preferences, given the escalating human
rights abuses in that country? How bad would these abuses need to
get before the so-called “last resort” was reached?
I would point out to the right hon. Lady that the trade that I am
responsible for covers 80% of GDP, and the reason why we have not
hitherto had as much trade with that part of the world is because
of the high trade barriers that we are seeking to remove through
these trade agreements. I do, however, share her concerns about
human rights violations in Cambodia, and this Government continue
to raise the issue with the Cambodian Government at every
opportunity.
I listened carefully to the Secretary of State’s answer, which I
find very interesting indeed. Is she not aware of the guidance
that has been given by her Department to UK companies doing
business in Cambodia? It was published by her Department last
week and contains this reassuring advice:
“while political disputes could trigger protests, these would be
broken up rapidly by the security forces.”
That sounds to me like her Department does not care. How does the
Secretary of State think it sounds in Cambodia?
As I have said, we are concerned about the situation in Cambodia,
but it is important to recognise that trade sanctions can often
have impacts on the poorest people in a country. The best way
that we can achieve our objectives is through the work of the
Foreign Office and my colleague the Foreign Secretary, in raising
this issue at a political level.
(Na h-Eileanan an Iar) (SNP) [V]
Mòran taing fawr, Mr Speaker. The UK Government have removed
direct access to the EU market, damaging GDP for the UK by about
4.9%, and that is the area that 47% of UK exports go to. The
Minister has not replaced that with any new markets at all; all
the new deals have been merely rollovers of EU deals. So,
forgetting all the flowery adjectives about trade deals, and she
did talk about GDP, what do the numbers say about the gains to
GDP from ASEAN trade deals? Also, does she have any numbers for
CPTPP yet?
The Chairman of the Select Committee understands that a lot of
the economies we are talking about are fast-growing. We want to
be in a position, in 2030 to 2040, to make sure that the UK has
deep relationships with some of the fastest-growing parts of the
world, like CPTPP, the United States and places where our exports
are currently growing faster than they are for the EU. I would
also point out to him that it is and the Cabinet Office who are responsible for
negotiating and working with the EU.
Trade Deals: Human Rights Clauses
(Kingston upon Hull West and Hessle) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Rochdale) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Lancaster
and Fleetwood) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Luton South) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Bradford East) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
The Parliamentary Under-Secretary of State for International
Trade (
)
The United Kingdom has long promoted her values globally. While
our approach to agreements will vary between partners, it will
always allow this Government to open discussions on issues,
including on rights and responsibilities. We are clear that more
trade does not have to come at the expense of our values.
[V]
The Lords have listened to the Minister’s objections to the
genocide amendment and done everything to accommodate them in its
latest iteration, while retaining the fundamental objective that
judges should decide whether genocide has been committed. On
behalf of the Government, will the Minister of State finally
agree to accept the will of Parliament and back this historic
amendment?
Mr Jayawardena
We are clear that Britain has a long history of protecting rights
and promoting our values globally. We will continue to encourage
all states to uphold international rights obligations, including
under the convention on the prevention and punishment of the
crime of genocide. We supported an amendment in this House on the
principle of a formal parliamentary process leading to a
guaranteed debate, but the latest amendment is unacceptable
because it seeks to bring about constitutional reform by the back
door, and it would impinge on the proper constitutional
settlement, blurring the distinctions between the courts and
Parliament.
[V]
I say to the Minister that this country does have a proud record
of upholding human rights, but this Government have a very
unhappy record of allowing, for example, arms sales to Saudi
Arabia, which has seen the killing of innocent men, women and
children. On that basis, does he accept that trust is
fundamentally important on the issue of human rights under any
Government? Why should anybody trust this Government?
Mr Jayawardena
I certainly want to make sure that all Members across this House
can trust this Government, but I say gently to the hon. Gentleman
that Labour’s record on this is hypocritical and, sadly, it
enabled antisemitism to be rife within its ranks. They turned a
blind eye to terrible behaviour from countries that they like,
like Venezuela, and the shadow Secretary of State even shared a
platform with Hamas. So we will not be lectured by the Opposition
on these issues.
I last raised this issue on the Floor of the House on 19
November, and the Minister for Trade Policy told me to
“judge us on our deeds and not always on our words.”—[Official
Report, 19 November 2020; Vol. 684, c. 455.]
So can I clarify, when it comes to human rights and Saudi air
strikes in Yemen, that we should be judging the Government on the
export licensing statistics published last month, which included
the sale of £1.36 billion-worth of bombs and missiles to Saudi
between July and September 2020—almost as much as the last 19
quarters put together?
Mr Jayawardena
We have a rigorous arms export control system in this country,
one of the best in the world, and no arms will be exported that
are inconsistent with the consolidated criteria, which were
introduced in 2014.
[V]
I just want to press the Minister on the issues raised by my hon.
Friend the Member for Lancaster and Fleetwood (). Last
September, the UN said that Saudi airstrikes in Yemen had led to
a consistent pattern of harm to civilians, unlike our own
Government who said in July that there was no such pattern and
that it was therefore lawful to resume arms exports. Can the
Minister of State explain how his Department looked at exactly
the same evidence as the UN and reached an entirely different
conclusion?
Mr Jayawardena
We rely on a range of information from across Government,
non-governmental organisations and elsewhere and we will always
make sure that all of that evidence is properly considered before
any arms are exported anywhere in the world.
[V]
Grave human rights abuses, including torture, rape,
extra-judicial killings, and arbitrary detention continue to be
committed against Kashmiris in Indian-occupied Kashmir. Will the
Minister ensure that any trade deal signed with the Indian
Government includes firm commitments to ending those human rights
abuses and holding a free and fair plebiscite, as agreed by the
United Nations, that allows the sons and daughters of Kashmir to
fulfil their birthright to self-determination?
Mr Jayawardena
I do not doubt the hon. Gentleman’s passion for this issue, but
where is the passion for jobs, where is the passion for exports,
and where is the passion for investment? That is what this
Government are getting on with. Perhaps it is because they cannot
make up their minds on the Opposition Benches: they are against
deals with democracies such as Israel as well, and yet they have
cosied up to regimes such as Venezuela. Although this question
was about future trade deals, we will get on and deliver jobs and
prosperity for the British people.
(Harrow West) (Lab/Co-op)
It has now been two months since Ministers agreed a trade deal
with Cameroon. It was shortly before the US Senate voted to
suspend theirs because of President Biya’s human rights record.
Incredibly, we do not know what the UK’s trade deal with Cameroon
says on human rights, because it has still not been published.
Can the Minister tell us when Parliament will be finally shown
that deal, and can he guarantee a debate on it in Government
time?
Mr Jayawardena
I welcome the fact that the shadow Minister is interested in our
trade agreement with Cameroon, which benefits both countries to
the tune of £177 million-worth of bilateral trade, but the
British people will have heard today six questions from the
Labour Benches and not one of them included anything about jobs.
That just shows, sadly, that Labour has no intention of
delivering for the British people and capitalising on our
independent trade policy, because it is anti-trade, anti-jobs,
EU-obsessed and it sneers at those who do not share their world
view and are proud to be British.
(Sheffield South
East) (Lab) [V]
One area, of course, where we do not have problems with human
rights clauses being inserted is the EU. The Minister is
interested in jobs. I have a small company in my constituency,
Poco Nido, which employs four people. The owner of that company,
Catherine Lobley, has told me that, since the end of December,
she has not had a single shipment of goods getting through to the
EU. The goods are caught up in customs and have been stuck there
for three weeks. She says that the whole system has collapsed.
Her 10-year-old business will be destroyed, with the jobs, within
a month unless the Minister acts. When will the Minister ensure
that the Brexit deal that the Government promised is actually
delivered in practice?
Mr Jayawardena
My hon. Friend the Minister for exports is doing great work to
make sure that British businesses can export to the world,
including to the EU, and the hon. Gentleman will know that we
have covered deals with 64 countries, plus the EU, protecting
trade worth £889 billion. Of course we want to make sure that, in
the years ahead, there can be more trade with the EU, our near
neighbours and good friends, but we are also focused in this
Department on trading with the world.
High Growth Global Markets
(Shrewsbury and Atcham) (Con)
What steps she is taking to improve access for UK exporters to
high growth global markets.
(Vale of Clwyd) (Con)
What steps she is taking to improve access for UK exporters to
high growth global markets.
(Penistone and
Stocksbridge) (Con)
What steps she is taking to improve access for UK exporters to
high growth global markets.
The Parliamentary Under-Secretary of State for International
Trade ()
Driving access for UK exporters to high growth markets worldwide
is at the heart of this Department’s work, securing new free
trade agreements, removing trade barriers and informing,
encouraging, connecting and financing exporters. Ninety per cent
of global growth—90%—over the coming years is expected to be
outside Europe, so that is why we are hitching UK business to the
fastest growing markets and have recently applied to join the
CPTPP.
I thank my hon. Friend for that answer. What action is the UK
taking to increase our export footprint in future growth areas
such as renewable energy, particularly in countries such as
Mongolia?
The Department—not only in renewables, but in minerals as well—is
running a mining export campaign for Mongolia, supporting
UK-based investors and our mining supply chain, using the unique
convening power of government to engage with the Mongolian
Government and mining businesses. We are supporting UK investment
in solar and waste energy plants, and are in discussions with the
Mongolian Government on UK participation in infrastructure
projects, including renewables, which my hon. Friend mentions,
and hydropower. Atop all that is the cherry, in the form of my
hon. Friend, who is the Prime Minister’s dynamic and effective
trade envoy for the country.
Dr Davies [V]
I thank my hon. Friend for all the work he does to strengthen
trading relationships between Britain and our international
partners. Can he assure me that the Department for International
Trade regularly engages with businesses of all sizes across the
UK, including in north Wales, to ensure that the objectives of
the Department are closely aligned with the needs of industry?
My hon. Friend is quite right to highlight this issue. DIT has a
relationship with more than 200,000 UK businesses, ranging from
large multinationals to small start-ups. Our UK-based sector
teams, our highly experienced trade advisers across the regions
and devolved Administrations, and our teams in our overseas
embassies all work closely with UK businesses to support their
export ambitions, while our export academy programme builds small
and medium-sized enterprise know-how, enabling businesses to sell
to customers around the world with confidence.
[V]
Steel manufacturers such as Liberty Speciality Steels in
Stocksbridge produce high-quality components that are used across
the world. Steel produced in Europe has half the carbon footprint
of equivalent Chinese imports, and, as countries follow the UK’s
lead in reducing emissions demands, demand for green steel will
increase. How will my hon. Friend ensure that UK manufacturers
such as Liberty Speciality Steels in Stocksbridge can capitalise
on this growing market and make global Britain the world leader
in green steel?
I thank my hon. Friend for that excellent question. There is a
real opportunity here, is there not? That is why the Government
have a range of schemes in place to help the steel sector to
expand its green exports into those growing global markets. That
includes establishing a £250 million clean steel fund and
providing £66 million through the industrial strategy challenge
fund to help steel manufacturers to develop radical new
technologies and establish innovation centres of excellence.
These funds will be accessible to all UK steel manufacturers,
including those in my hon. Friend’s constituency, which I am sure
value her long-standing commitment to the sector, and her
permanent and regular efforts to raise them in the House.
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
[V]
Dream Climbing Walls is a Scottish business that was exporting to
the high-growth market that is the European Union, which
accounted for around 60% of its sales. After Brexit, its costs
due to customs charges and delivery add-ons have skyrocketed.
Goods that would normally take three to four days to arrive are
currently a month in transit. Because of this Government, that
business is now climbing the wall in a very different sense. What
steps is the Minister taking to sort out this Government’s
calamitous mess, and will he now urgently look at measures to
compensate the thousands of companies just like Dream Climbing
Walls that have lost out as a result of this Government’s
actions?
May I congratulate the hon. Gentleman on his personal commitment
to rigorous scrutiny and ensuring that the Government are held to
account? I am sure that he would agree that others could do
likewise in being similarly robust. As my right hon. Friend the
Secretary of State has already made clear, it is our noble friend
and the Cabinet Office who lead on that particular
work. There are teething problems and there will be on ongoing
frictions every day, but I am pleased to say that we are reducing
those and are now seeing a return to pre-covid levels at our
border. We will continue to work with and support our exporters
in order to learn how best to do this. I hope that the hon.
Gentleman will ensure that his Administration support his
colleagues in the SNP and beyond to help support exporters.
(Sefton Central) (Lab) [V]
I appreciate that the Minister wants to promote exports to some
countries more than to others, but many of our constituents trade
with Europe and need to safeguard their existing relationships
before going looking for new ones. That is just good business
practice. His Department telling exporters to open an office in
the EU is not good practice when it is its answer to delays at
the border that it was warned about. When are Ministers going to
sort out the problems at the border that mean businesses are
drowning in red tape?
I would have hoped that the shadow Minister would be aware of
where Government responsibilities lie in terms of the
negotiations with the EU, but I can assure him that the work is
ongoing to do that. I am sure that the hon. Gentleman, who is,
unusually for a Labour Member, a former businessman
himself—[Interruption.] I am being endlessly heckled by the
shadow Secretary of State, who probably knows where I am going
with this, because she appears more interested in exports to
Venezuela and Russia and only last month was chiding the
Secretary of State for talking to the US—
Mr Speaker
Order. We don’t want to fall out again, do we? We have got
in Glasgow waiting.
(Glasgow North East) (SNP) [V]
One of the biggest global growth markets for local companies
until Brexit was the EU. A1 Kilt Hire in my constituency was
doing a roaring trade hiring out kilts to wedding parties across
Europe, but nobody in the UK Government has been able to tell it
if and how it can continue trading because its products are for
hire and not for sale. HMRC could not even tell it if it would
have to pay tax when the kilts were returned. Where on earth can
hire companies that have survived this double whammy so far go to
for advice on continuing to trade in Europe? Given the Minister’s
two previous answers, I am guessing that it is not him.
Mr Speaker
With the Minister’s family background, we might get a good
answer.
I must congratulate the hon. Lady on the speed of her uptake,
because yes indeed, as I have said in my previous answers, this
is for a different Department of Government. I think she
suggested that the EU was a growing share of the global market,
but it is not. Twenty years ago it was the majority of our
exports; now it is a minority. Its share of global GDP has been
falling. We are, at the direction of the Secretary of State,
pitching our business to the fastest-growing parts of the world,
not the more sclerotic.
(Ealing
Central and Acton) (Lab) [V]
Mounting costs are killing one of our biggest
exports—culture—with additional duties on physical product and
performers. My constituent Andy Smart has regularly performed at
two comedy/ski festivals, but now one of them no longer accepts
Brits, preferring the Irish, and the other has been cancelled as
unviable because of Brexit obstacles. Can we work
cross-departmentally to abolish these levies, because, as one of
those festivals is called, it is literally taking the piste?
There is no one better in this House than the hon. Lady at
marrying sociological insight with popular culture, and of course
as an experienced DJ she knows more about music than most of the
rest of us. I entirely agree with her, though, that we have to
work flat out, in a cross-governmental way, to ensure that we
minimise any frictions at the border for those vital and
important cultural exports of which music is an important part.
G7 Presidency
Mr (South West Hertfordshire) (Con)
What recent discussions she has had with Cabinet colleagues on
trade priorities for the UK’s G7 presidency.
(Rother
Valley) (Con)
What recent discussions she has had with Cabinet colleagues on
trade priorities for the UK’s G7 presidency.
(Broxtowe) (Con)
What recent discussions she has had with Cabinet colleagues on
trade priorities for the UK’s G7 presidency.
The Secretary of State for International Trade ()
The United Kingdom has a huge opportunity, with the presidency of
the G7 this year and the election of Dr Ngozi as World Trade
Organisation director general, to drive forward free and fair
trade. This is more important than ever as we seek to recover
from covid and address the issues with the WTO. We hope to make
good progress ahead of the ministerial conference in December.
[V]
May I once again commend my right hon. Friend for the excellent
work she and her team have done to date? Can she advise the House
what she will be looking to achieve under the trade track?
Under the trade track, there will be an opportunity for G7
democracies to work together to help to reform free and fair
global trade and shape a bold vision for recovery. In particular,
we want to make progress on key issues such as challenging unfair
industrial subsidies, dealing with carbon leakage and promoting
digital trade.
[V]
A key plank of the UK’s future trade strategy must be dedicated
to securing our supply of critical minerals, which are vitally
important components in the next generation of green renewables
and communications equipment. Does the Secretary of State agree
with me that in the run-up to the G7 summit, we must take urgent
action, first, to work with allies to form a stable, reliable and
independent coalition for the mining and processing of critical
minerals and, secondly, to bolster the British critical minerals
industry for domestic use and for exports?
My hon. Friend makes a very good point. We need to work with
allies to make sure we have resilient supply chains of critical
minerals and are not reliant on high-risk vendors. That is a
priority for this Government, and that is why we are leading
Project Defend. I was delighted to see Cornish Lithium for myself
on a visit to Cornwall last autumn. Not only will that help us
make sure that we have this critical supply of minerals, but it
will boost jobs and growth in a very important part of our
country.
[V]
I welcome the exceptional work done by my right hon. Friend’s
Department to ensure that the UK stands as an ambitious
internationalist country, and in that regard I would like to know
what steps she is taking to improve access for UK exporters to
high-growth global markets.
We have signed deals covering 64 countries, including the
Caribbean nations, where my hon. Friend is our trade envoy. Total
exports to CARICOM—the Caribbean Community—were worth £1.5
billion in the 12 months to September 2020, and I am sure he is
actively looking for new opportunities to use those trade deals
to benefit people in the Caribbean and here in the United
Kingdom.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(North Norfolk) (Con)
What assessment she has made of the potential merits for UK
businesses of the UK joining the comprehensive and progressive
agreement for trans-Pacific partnership.
The Secretary of State for International Trade ()
Joining the CPTPP is a massive opportunity for UK businesses. It
will cut tariffs for vital industries such as cars and whisky,
and it will help drive an exports-led, jobs-led recovery from
covid.
[V]
As opposed to the flat EU markets, we know that CPTPP markets are
emerging and growing, giving huge tariff-free opportunities for
those that join, so for my barley barons of North Norfolk, may I
ask the Secretary of State what wonderful opportunities for
growth access to these markets gives us?
I know my hon. Friend was delighted with our Japan deal, which
gave more access for malt in the Japanese market, where we are
the second largest exporter of malt. We will be looking for more
such opportunities under the CPTPP for malt and whisky, to make
sure that the barley barons continue to do well.
(Islington South and Finsbury) (Lab)
Will the Secretary of State explain the recent comments from her
top adviser on trade and agriculture, Mr Shanker Singham? He
said:
“I think it would be fantastic to get the EU into the CPTPP”,
which is interesting, but not as interesting as what he said
next. He said that the EU
“would not be able to join at the moment…With their approach on
agriculture and standards, it is impossible for them to accede.”
Can the Secretary of State explain what he means?
I do not know what Mr Singham means. He is an adviser to the
Government; he is not the Government. The important point is that
now we have left the European Union, we have an opportunity to
develop more innovative policies in areas such as agriculture.
For example, my right hon. Friend the Secretary of State for
Environment, Food and Rural Affairs has recently launched a
consultation on gene editing. We will be able to use new
technologies to benefit farmers in Britain and across the
world—technologies that historically the EU was averse to.
I do not really think that gene editing was the answer to the
question. The question was: what does Mr Singham mean? Perhaps I
can help. I think he means that joining the CPTPP not only means
eliminating tariffs on meat exports from other member states; it
also means abandoning the precautionary principle when we decide
which meat imports to allow. If the Secretary of State disagrees
on that, perhaps she will answer this: under the terms that she
is proposing to join the trans-Pacific partnership, will Britain
have the right to ban the import of meat produced using
growth-promoting antibiotics?
I am sure that the right hon. Lady, being an avid student of the
CPTPP, will have read the fact that the same standards on
SPS—sanitary and phytosanitary—are in the CPTPP as are in the
World Trade Organisation, which the UK has already signed up to.
I have been very clear that in every trade deal we sign, we will
not lower our excellent standards in the United Kingdom, and we
will not expose our farmers to unfair competition.
Growth for British Businesses
(Clwyd South) (Con)
What recent assessment she has made of the potential effect of
her Department’s trade policies on growth for British businesses.
The Parliamentary Under-Secretary of State for International
Trade ()
The Department’s trade policies aim to support growth,
productivity and jobs for British businesses. The OECD estimates
that 6.6 million UK workers were supported by exports in 2015. In
addition, the Department’s recently published impact assessment
shows that the UK-Japan free trade agreement could increase UK
GDP by £1.5 billion in the long run compared with trading under
WTO terms.
[V]
Given that the St David’s day debate is being held this
afternoon, will the Minister comment on his Department’s
activities in promoting exports by Welsh companies, such as Ifor
Williams Trailers, AE Sewing Machines in Ruabon, and the Rhug
Estate’s famous Welsh beef and lamb in my constituency of Clwyd
South?
It is never too early to celebrate St David’s day and the doughty
exporters of Clwyd South, as well as the rest of the
Principality. We are lowering barriers to Welsh exporters through
trade deals, supporting them through staff in 119 countries,
organising trade missions, providing online resources and
championing them at international events. We have a long-standing
relationship with the Rhug Estate, and we continue to support
Welsh produce in particular, as part of both the Food is GREAT
campaign and the Open Doors campaign, announced with fanfare only
this week by the Secretary of State.
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
[V]
As the Government continue to hide the overall effect of their
trade policies, the first official estimate from the European
Commission shows that this Government’s Brexit deal will cost the
UK at least 2.25% of GDP by the end of next year. In addition,
two out of three supply chain managers report experiencing import
delays of two to three days. Is that why the Minister is going so
far to remove questions and avoid scrutiny of this disastrous
Brexit deal in the Chamber? If he denies that, will he now
publish the impact assessments prepared for his Government, which
have so far been hidden away from those who deserve to know the
real costs to business and families?
I can assure the hon. Gentleman that we are certainly not
avoiding scrutiny; we are just directing it to where it rightly
should go. He knows all about those who are seeking genuinely to
avoid scrutiny. As I have been double-Drewed today, I pay tribute
to the efforts he makes. All I will say as a final point—before I
am cut short yet again by Mr Speaker, quite rightly, and even as
I lose my attention because I am barracked so often by the right
hon. Member for Islington South and Finsbury ()—is that he voted no deal, so it is odd for him to
be complaining so much.
Mr Speaker
Of course, we would not expect the Minister to try to abuse his
position.
(Belfast South) (SDLP) [V]
Northern Ireland opposed Brexit, but it has happened. The
protocol is its outworking, and it has to be made to work. The
SDLP is determined to maximise the opportunities available to
this region from being the crossroads between the UK and EU
markets. We have written to the Minister seeking support in
promoting Northern Ireland and this unique access. Will he commit
his Department to promoting Northern Ireland to investors who are
seeking access to both the EU and UK markets?
I commend the hon. Lady’s positive attitude. She is absolutely
right: whatever our views on Brexit, we have to get on, make the
most of it and support our businesses, as she is doing, and I can
give her that commitment. We will absolutely work with her and
Invest Northern Ireland, which does a fantastic job in
conjunction with DIT to promote both investment into Northern
Ireland and exports from it.
Mr Speaker
Let us head to Yorkshire with shadow Minister .
(Sheffield Central) (Lab) [V]
I am no longer shadow Minister, but happy to be contributing to
this debate, Mr Speaker.
Moon Climbing, a specialist rock climbing supplier in my
constituency, tells me how, since January, new barriers have
damaged its trade with Europe. In line with the advice of DIT
officials, it set up a base in the Netherlands to avoid the
barriers and it anticipates that that will
“be our main base from which we service both the EU and the rest
of the world”.
I heard the Minister and the Secretary of State say earlier that
it is nothing to do with them, but, frankly, companies expect the
Department for International Trade to take some responsibility
for trade, so what are they doing to prevent more UK businesses
moving abroad as a result of the damaging Brexit deal—losing UK
jobs, GDP and tax revenue?
The British people decided to leave the European Union. We are
supporting businesses, in Europe and beyond, but it is not overly
complicated to accept that it is the Cabinet Office and the unit
led by Lord that are taking responsibility for those negotiations.
However, we work actively, and we run webinars with thousands
attending, and I and other Ministers participate in those to give
people the tools to overcome the frictions that inevitably result
from our departure. I am pleased to say they are declining over
time, and I am confident that we will return to where we were in
2019, when we were the only top 10 exporting nation in the world
to see our exports rise and, the hon. Member will be delighted to
hear, we overtook France to become the fifth largest exporter in
the world.
Free Trade Agreement: Australia
(Tiverton and Honiton) (Con)
What progress she is making on securing a free trade agreement
with Australia.
The Minister for Trade Policy ()
The UK and Australia held the third round of negotiations for a
free trade agreement between 23 November and 4 December.
Discussions reached an early milestone of exchanging initial
tariff offers, showing the momentum behind the negotiations. The
fourth round of negotiations began this week and is live as we
speak.
[V]
The Trade and Agriculture Commission report will be out next
week. How does the Department see incorporating that in the deal
with the Australians to make sure that we can maintain these high
standards of imported food that meet our standards when we are
doing a deal with Australia?
I thank the Chairman of the Environment, Food and Rural Affairs
Committee for that question. I know he takes a very keen interest
and we also await with equal interest the publication of the
report next week. It would not be proper to prejudge what may or
may not be in the report, but it is clear that we are doing
everything possible to support our food and drink exports.
Returning to the question of Australia, we actually have a food
and drink surplus with Australia. We are looking to get more
market access and to promote more agricultural exports to
Australia, which I know will come with great welcome from him and
the EFRA Committee.
Scottish Exports to US: Tariffs
(Berwickshire, Roxburgh and Selkirk) (Con)
What progress she has made on removing tariffs on Scottish goods
exported to the US.
(Glasgow East) (SNP)
What steps she is taking to seek a reduction on the US tariffs
applied on the export of Scotch whisky from the UK to the US.
The Secretary of State for International Trade ()
We have been working hard to de-escalate this conflict and get
punitive tariffs removed on both sides of the Atlantic. This is
the way forward, not escalating the tariff battle.
US barriers to trade have been broken down in the past to the
benefit of Scottish jobs, and this includes the great work of the
UK Government to get Scotch beef back in American supermarkets
for the first time in two decades. Does the Secretary of State
envisage similar success in removing US tariffs to help cashmere
mills in the Scottish borders and Scotch whisky distillers to
export to American customers?
My hon. Friend has been a huge champion for Scottish goods such
as cashmere and whisky. These tariffs are damaging on both sides
of the Atlantic. Today, we are seeing the confirmation hearing of
the new US trade representative, and as soon as that is finished
I will be on the phone to her seeking an early resolution of
these issues.
Despite the pandemic, we have seen a rise in consumption of
spirits in North America; this is taking account of the fact that
there is a 25% tariff in place for Scotch whisky. There is a
danger that some of the alternatives—for example, Canadian whisky
or Irish whiskey—could move into that space, and that is damaging
for all of us who support the Scotch whisky industry, so has the
Prime Minister raised this with President Biden?
I can assure the hon. Member that the Prime Minister is exercised
about this issue, as am I, and we are working flat out to get an
agreement to make sure that these tariffs are removed.
EU VAT Regulations under DDP Terms
(Northampton South) (Con)
What steps her Department is taking to assist British small and
medium-sized enterprise exporters with EU VAT regulations under
delivered duty paid terms.
The Parliamentary Under-Secretary of State for International
Trade ()
While VAT in the UK is a matter for the Treasury, and in the EU
it is the responsibility of member states, my Department is aware
of SMEs feeling pressured to supply on a delivered duty paid
basis. That is a matter for commercial decision between
contracting parties, but none the less, we provide support for
SMEs through our international trade adviser network, and just
last week we held a webinar as part of the UK Export Academy
dealing with Incoterms in general, of which DDP forms part.
[V]
Many SMEs have EU clients that are themselves SMEs, which
understandably do not wish to be importers and thus take on extra
regulatory burdens. Due to the insistence on DDP terms, UK
exporters have to try to reclaim EU VAT. I hear what the Minister
says about different responsibilities and so on, but in his
co-ordinating and supportive role, will he agree to meet me and
representatives of the British Promotional Merchandise
Association, to hear at first hand the difficulties that its
members are having and to explore solutions, even if they are
cross-departmental?
In a belated attempt to score some points with Mr Speaker, I will
simply say that I would be delighted to do so.
Mr Speaker
You might slip on something; be careful!
Topical Questions
(Stoke-on-Trent North) (Con)
If she will make a statement on her departmental
responsibilities.
The Secretary of State for International Trade ()
Earlier this month, I submitted the UK’s formal application to
the comprehensive and progressive agreement for trans-Pacific
partnership. Joining CPTPP will put us at the heart of some of
the world’s fastest-growing economies and slash tariffs for key
industries such as cars and whisky. Membership of this
high-standards agreement comes with no strings attached, with no
requirement to cede control over our laws, our borders or our
money. Joining will help propel a jobs-led, export-led,
investment-led recovery from covid across our United Kingdom.
[V]
I thank my right hon. Friend for all her hard work flying the
Union flag with pride around the world. There has never been a
more important time to champion the exporting potential of
British business, so will she enable the Department for
International Trade to partner with me so that I can ensure that
the Potteries’ world-leading ceramic tableware manufacturers,
such as Churchill China and Steelite, based in Stoke-on-Trent
North, Kidsgrove and Talke, can benefit from support for exciting
exporting opportunities?
We recently launched the parliamentary export programme, through
which MPs can partner with DIT, and we will shortly be recruiting
a second cohort of MPs; I know that the Exports Minister, my hon.
Friend the Member for Beverley and Holderness (), already has my hon. Friend’s name on the list. I
also invite my hon. Friend to join our virtual Japan
mega-mission, which is being led by the Exports Minister in the
next couple of weeks and will bring Stoke-on-Trent firms in
contact with Japanese companies so that they can sell their
fantastic goods.
(City of Durham) (Lab) [V]
Can the Secretary of State say when the review of procedures for
the resolution of investment disputes between investors and
states in the UK-Canada agreement on trade continuity will take
place, and how the views of Parliament and the public will be
taken into account in the review?
I thank the hon. Lady for her question. I am working very closely
with my Canadian colleague, Mary Ng, to make sure that that
happens as soon as possible.
(Bracknell) (Con)
As we embark on our recovery from covid-19 in the post-EU era,
will my hon. Friend provide the assurance that businesses in
Bracknell need, and will he please outline what measures have
been considered to improve the attractiveness of British exports?
The Parliamentary Under-Secretary of State for International
Trade ()
Bracknell businesses should be assured that we have a plethora of
new initiatives to whet their exporting appetites. We are
committed to helping businesses realise their economic potential
through exports, and we provide a comprehensive global system of
support to help them do so. There are a range of initiatives that
enhance UK exporting, including our international export hubs,
the £38 million internationalisation fund providing grants, and
UK Export Finance’s general export facility, another new
initiative, all of which combine to help upskill firms, build
their capability and finance everyday costs.
(Oldham East and Saddleworth) (Lab) [V]
One of my Saddleworth constituents who runs a small import-export
business in woollen goods has told me of the difficulties that
his business is facing, including that there is no customs
clearance agent in the UK who will take on new clients. This is
in spite of the fact that he was told, prior to Christmas, that
this would not be an issue. As I speak, he has bulk export
products delayed in Madrid and Milan airports, Dublin port, at
the Greece and Turkey border and in Tokyo. He says that the cash
flow implications for his businesses will be very damaging. This,
of course, is all within six weeks of Brexit, a situation that he
feels will eventually cripple his 19-year-old business. He asked
me, and I ask the Trade Secretary in turn: why is this such a
mess, and where are the grassy uplands that the Government
promised?
Mr Speaker
I remind Members that they have to be short in topicals; we
cannot go into full statements.
The Minister for Trade Policy ()
Thank you, Mr Speaker. I will try to be as quick in my response.
I will pass on the hon. Lady’s concerns to the Cabinet Office.
The Government have invested considerably in customs and
clearance agents. I refer her and her constituent’s company to
the different helplines that are available both from us at DIT
and, most particularly, from Her Majesty’s Revenue and Customs
and the Border and Protocol Delivery Group to provide practical
assistance for her constituents.
(Winchester) (Con)
It was good to see the Government’s new Open Doors food and drink
export campaign launched this week at the National Farmers Union
conference, but I was rather surprised to see that only one in
five food manufacturers sell overseas at the moment. Will the
Minister tell me how producers in Hampshire can take advantage of
our new international opportunities and trade deals through Open
Doors and what support is available?
The simple answer is for them to go to gov.uk/growbyexports.
There are educational masterclasses, meet the buyer events and
the opportunity to send samples of their products to overseas
buyers in specially selected hampers. Those are just some of the
activities open to Hampshire businesses.
(North
Ayrshire and Arran) (SNP) [V]
With the Biden Administration announcing plans to end arms
exports to Saudi Arabia, the UK is isolated on the world stage as
it continues to sell arms to this barbaric regime. Will the
Minister explain how this Government can claim to have the most
effective export regime in the world when it has the moral stain
of being virtually isolated in the world in its obstinate support
for Saudi Arabia, which is a serial human rights violator?
The Parliamentary Under-Secretary of State for International
Trade (
)
As I said earlier, we have one of the most robust systems in the
world for arms export controls. All exports are governed by the
consolidated criteria, and we have a proud record in this country
of upholding our values. In the 19th century, we abolished
slavery. In the 1990s, we were peacekeepers in the Balkans. We
have always played our role in the world and we will continue to
do so.
(Keighley) (Con)
It was brilliant to welcome the Secretary of State to Keighley
when she met Tony Day from Marrose Abrasives; they are export
champions, with products going worldwide. We have many brilliant
manufacturing businesses in Keighley that are hungry for growth
opportunities around the world. I would welcome suggestions on
how they can get involved and influence future trade arrangements
so that we can make exporting easier.
Is not it fantastic to hear that genuine enthusiasm for business,
jobs and the prosperity that results? What a shame we do not hear
it from the Opposition. I know that my right hon. Friend the
Secretary of State enjoyed her visit to Marrose Abrasives, and
there are many opportunities before our negotiations with New
Zealand, Australia and the United States. We have conducted
public consultations. We have trade advisory groups, so through
representative organisations and others, we are open every day to
hear from businesses such as Marrose and make sure that their
voice is heard and drives our trade policy objectives.
(Cynon Valley) (Lab) [V]
This month’s figures show that the UK authorised arms sales worth
almost £1.4 billion to Saudi Arabia. In the same month, the UN
warned that the conflict in Yemen had taken a sharp escalatory
turn. As several other Members have asked, will the Minister
please explain why he has not followed the lead of his
counterparts in the US and Italy and halted arms sales to Saudi
Arabia? Does he agree that this behaviour has actively undermined
efforts on peace talks?
Mr Jayawardena
As I have said, we do have a robust arms export control policy in
Britain, and it is absolutely right that we maintain our own
independent policy. The policies of the United States are a
matter for the United States.
(Hastings and
Rye) (Con) [V]
The strong British pound and economy attracted significant
foreign investment when the UK was a member of the EU. Can my
right hon. Friend outline the steps that are being taken to
ensure that, as we come out of the EU and out of the pandemic,
the UK becomes an even more attractive place to invest,
increasing quality jobs and helping to turbocharge our economy?
I thank my hon. Friend for that question. She is absolutely
right; the UK is a great place to invest. The UK was the first
major economy to make a breakthrough in attracting foreign
investment, under Margaret Thatcher, now four decades ago. The UK
has remained an extremely attractive place to invest since. In
November the Prime Minister announced a new Office for
Investment, jointly led by No. 10 and the Department for
International Trade.
(Vale of Clwyd) (Con)
As our economy looks to recover from covid-19, there are
businesses in my constituency that can expand globally. Will my
hon. Friend outline what steps the Department is taking to help
not just large companies but SMEs to access global markets? Will
he join me in encouraging businesses in the Vale of Clwyd to
attend the first local parliamentary export programme event on 4
March?
SMEs are vital to increasing UK trade, which is why we are
seeking SME chapters in all our free trade agreements, and we
provide a vast range of support for them. I congratulate my hon.
Friend on being a trailblazer for the parliamentary export
programme, and I encourage businesspeople in the Vale of Clwyd to
attend the virtual meetings that he is organising, chairing and
using to ensure that his local companies get all the
international sales support that Government can offer.
(Bolton South East) (Lab) [V]
Does the Minister agree that we cannot remain silent or
indifferent to the worst crimes and atrocities, whether against
the Rohingyas in Myanmar, the Uyghurs in China or people anywhere
else in the world? Will she guarantee that the Government,
although not supporting the genocide amendment that is coming to
the House soon, will at least stop playing political games and
allow a straight vote on the matter?
I agree with the hon. Lady that the atrocities committed by China
in Xinjiang are abhorrent. The Government have taken firm action
on supply chains and businesses doing business in that part of
China, but expanding the role of the UK courts raises serious
constitutional issues, and instead the issue needs to be
addressed politically.
(New Forest West) (Con)
Are we using our position at the World Trade Organisation to
counter reprehensible trading practices by China and others?
I thank my right hon. Friend. He is right to identify these
unfair practices in world trade. Put simply, for far too long,
China has not been transparent, with practices such as industrial
subsidies for state-owned enterprises, forced technology
transfers and claiming special differential treatment. We will
continue to work at the WTO and with G7 democracies to tighten up
the rules and ensure that they are properly enforced.
