Trade Agreements: SMEs
(Thirsk and Malton) (Con)
What steps she is taking to ensure that trade agreements provide
a level playing field for SMEs.
The Minister for Trade Policy () [V]
Employing 17 million people and generating £2.3 trillion in
turnover, small and medium-sized enterprises are vital to
increasing UK trade. That is why we are continuing to seek SME
chapters and SME-friendly provisions throughout all our free
trade agreements. Outside the SME chapter, the wider benefits of
the agreements—for example, reducing customs costs, supporting
intellectual property rights, facilitating mutual recognition of
professional qualifications and increasing regulatory
transparency—will help to level the field between SMEs and large
businesses.
Mr Speaker
Mr Hollinrake is not here, so we will go instead to the shadow
Secretary of State.
(Islington South and Finsbury) (Lab)
Small and medium-sized farms across the country are rightly
worried that this weekend’s agreement with Australia and the
precedent it will set for future trade deals will not just
undermine their business but destroy them. Last November, the
Minister of State promised these farmers that the new trade and
agriculture commission would mean that
“all the National Farmers Unions…will play an active role in
assessing trade agreements going forward”—[Official Report, 17
November 2020; Vol. 684, c. 190.]—
and that as a consequence the farming industry’s interests would
be “advanced and protected” by the TAC. Does he stand by those
statements today?
[V]
I thank the right hon. Lady for those questions and I absolutely
stand by that. We are involving NFUs from all four nations; I
have met NFU Scotland’s Martin Kennedy twice in recent weeks. We
are confident that the new trade and agriculture commission will
be up and running in good time for it to conduct its statutory
review of the Australia free trade agreement.
I thank the Minister for that answer but the British farming
industry knows the truth: the trade and agriculture commission it
was promised to defend the interests of British farmers is not
the one advertised by the Government this week, and my question
to the Minister of State is simply this: why? What are the
Government so scared of? If they are confident that their deal
with Australia will benefit British farmers, not undermine them,
why do they not have the courage of their convictions and
establish the trade and agriculture commission on the basis that
farmers were promised last November and let the voice of British
farming deliver its verdict on the deal?
We—myself, the Secretary of State and the whole of the Department
for International Trade—listen very carefully, of course, to the
voices of British farmers. The Secretary of State opened
expressions of interest to become members of the trade and
agriculture commission just this week. It is very important to
understand that the role of the commission never has been to
advise on negotiations; its role will be as debated and approved
during the passage of the Trade Act 2021 and the Agriculture Act
2020, and we are looking forward to seeing its scrutiny later
this year.
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
Many happy returns to you today, Mr Speaker.
SMEs make up the backbone of the Scotch whisky industry and the
Minister likes to talk about whisky, so let us talk about the
reality for the industry resulting from the Government’s trade
policy. Speyside Distillery, winner of best whisky at the world
whisky awards, tells me that sales are dramatically down since
Brexit and that this Government’s awful Brexit deal has led to
the cost of its goods going up by a fifth—up 12% on glass and up
7% on cardboard—and increased shipping costs and delays. Extra
paperwork alone is costing it 33p per case. It tells me that a
deal with Australia will not even scratch the sides of its
substantial losses from Brexit, so what additional support and
compensation will the Government pay to distilleries such as
Speyside for these losses?
I am delighted to hear the Scottish National party raise the
subject of whisky, because it did not do so in the urgent
question two weeks ago on the Australia trade deal. I remind SNP
Members that Scotch whisky currently faces tariffs going into
Australia; it is one of Scotch whisky’s most important markets
and is a growing market even during the pandemic. In terms of
trade volumes with the European Union, we are continuing to see a
recovery in the data. This is of course volatile data, but none
the less there was a 46% increase in exports to the EU in
February and a further 9% increase in March. Further data will be
coming out in due course.
As ever, when presented with the realities the Minister just
spins into Brexit fantasy. They just do not care about Scottish
businesses. There is a good reason why the SNP has never
supported Westminster’s trade policy, and that is because
Scotland’s needs are always ignored. The UK Government said
fishing was expendable during the EU negotiations in the ’70s,
their Brexit obsession dragged us out of the world’s largest
single market, and now they are betraying our farmers and
crofters all while capitulating on standards in animal welfare.
They do not listen to Scotland and they do not care about
Scotland, but is the Minister aware that they are being found out
in Scotland?
I am not sure that the hon. Gentleman has been listening
carefully enough to what I have been saying to him about the SNP
and trade deals. It is not just Westminster trade deals that he
and his colleagues have rejected; they have even rejected the
trade deals negotiated previously by the European Union. He has
pledged to rejoin the EU, in which case Scotland would become
immediately subject to those trade deals. He also wishes to
rejoin the common fisheries policy, which would be completely
against the interest of fishers right across Scotland.
The SNP has never supported any trade deal. It has been against
the Canada and South Africa deals, and it has not supported the
Japan or Singapore deals. It is simply anti-business, anti-trade
and against the interests of the Scotch whisky industry and of
Scottish fishers.
Trade Agreements: US, Canada and New Zealand
(Kettering)
(Con)
What progress she has made on negotiating free trade agreements
with (a) the US, (b) Canada and (c) New Zealand.
The Secretary of State for International Trade ()
We are making significant progress with our free trade agreement
negotiations. We have just launched a consultation on the new,
improved trade agreement with Canada, we are in the final stages
of our FTA with New Zealand, and we are in the midst of resolving
the Airbus-Boeing dispute with the US.
Mr Hollobone
Does my right hon. Friend think it is right that the EU should
have greater access to the UK market than our friends in New
Zealand?
Next week we have the New Zealand Trade Minister, Damien
O’Connor, coming to the UK, and we are working on a gold-standard
agreement that will give us more access to Pacific markets at the
same time as further deepening our economic relationship with a
long-standing and trusted partner.
Mr Speaker
Let us go to the Chair of the International Development
Committee.
(Na h-Eileanan an Iar) (SNP) [V]
Happy birthday from Na h-Eileanan an Iar, Mr Speaker.
The point of trade deals is economic growth, but as the Secretary
of State well knows, the trade deals with the US, Canada and New
Zealand will make up only about 4% of the Brexit damage. However,
signing a Swiss-style sanitary and phytosanitary agreement could
achieve greater economic growth, would not threaten farming as
the Australian trade deal does, would sort out the Northern
Ireland protocol sausage situation and would prevent the Prime
Minister from getting spoken to like a naughty schoolboy by the
President of the United States. Given those four advantages, has
she considered lifting her pen and signing a Swiss-style SPS
agreement to make things a whole lot better on a number of
fronts?
My colleague is clear that we need to see pragmatism from the EU to
resolve this issue. The hon. Gentleman does not seem to
acknowledge that the parts of the world where we are striking
deals, whether Asia-Pacific with the comprehensive and
progressive agreement for trans-Pacific partnership or countries
such as India and those in the Gulf, are the fast-growing parts
of the world. He is living in a static past; we are living in a
dynamic future.
English Language Teaching
(Eastbourne) (Con)
What discussions she has had with Cabinet colleagues on
supporting the recovery of the UK’s English language teaching
sector.
The Parliamentary Under-Secretary of State for International
Trade ()
Happy birthday, Mr Speaker.
Recognising the challenges that the sector faces, both I and my
co-chair of the education sector advisory group, the Minister for
Universities, continue to engage with colleagues across
Government to explore options for further support.
[V]
The English language is arguably this country’s most successful
export. Covid has of course devastated the sector, and with the
international scene still challenging, the impact goes on and is
deep and wide even as other sectors recover. Will my hon. Friend
meet me, a delegation of MPs and officials from the Department
for Business, Energy and Industrial Strategy and the Ministry of
Housing, Communities and Local Government to work together to
overcome the challenges that the sector faces and safeguard the
future of this vital export, which is so important to Eastbourne
and to the UK?
I would of course be delighted to meet my hon. Friend, and I
congratulate her on her continued leadership in Parliament on
behalf of her constituents and the country as a whole.
Free Trade Agreements
(Gower) (Lab)
What recent progress she has made on negotiating new free trade
agreements.
The Secretary of State for International Trade ()
We have signed trade deals covering 67 countries and the European
Union, we are making good progress with like-minded friends and
allies such as New Zealand and Australia, and we will shortly
launch negotiations to join the trans-Pacific partnership, worth
£9 trillion of GDP.
[V]
Penblwydd hapus, Mr Speaker. On 6 November, the Secretary of
State told the National Farmers Union of Wales:
“We have no intention of ever striking a deal that doesn’t
benefit farmers, but we have provided checks and balances in the
form of the Trade and Agriculture Commission”.
May I ask her if the commission will have the power to tell
Parliament whether her Australia deal benefits Welsh farmers, or
is she breaking the promise that she made only seven months ago?
I assure the hon. Lady that the Trade and Agriculture Commission
will be up and running to fully scrutinise the Australia trade
deal. As set out in the Agriculture Act 2020, the TAC will look
at whether FTAs
“are consistent with the maintenance of UK levels of statutory
protection”
for
“animal or plant life or health…animal welfare, and…the
environment.”
That is what Parliament supported in the Agriculture Act and the
Trade Act 2021.
(Islington South and Finsbury) (Lab)
On 6 October, the Secretary of State said:
“A lot of farmers would consider it unfair if practices that are
banned in the UK because of animal welfare reasons are allowed
elsewhere and those products are allowed to come in and undercut
the standards that our farmers are asked to follow. I agree with
that. I think that’s an important principle.”
That is what she said, so may I simply ask the Secretary of State
whether she still stands by that principle in the context of her
proposed deal with Australia?
I have always been clear that we will not allow our farmers, with
their high animal welfare standards, to be undermined by unfair
competition from elsewhere. The right hon. Lady will be well
aware that Australian beef and lamb is already able to come into
the United Kingdom under our current import rules.
I thank the Secretary of State for that answer, but if I may, I
will give her a specific example. The practice of mulesing is
illegal in Britain but is in common use in Australia, not just in
the wool industry, but in meat. Lambs at six weeks old are held
down without pain relief and have the skin from their buttocks
gouged out to prevent the scar tissue that grows back bearing
wool. My simple question to her is this: under her proposed trade
deal with Australia, will tariffs be reduced on meat produced on
sheep farms that use the practice of mulesing?
We are still in negotiations about the final stage of the deal,
but I can assure the right hon. Lady that British farmers, with
their high animal welfare standards, will not be undermined. I am
sure she is aware of World Trade Organisation rules that prevent
discrimination on the basis of production methods, and what she
seems to be advocating is leaving the World Trade Organisation.
By the way, she might be interested to know that foie gras is
already banned in Australia.
Unfair Trading Practices
(Crewe and Nantwich) (Con)
What steps she is taking to tackle the use of (a)
trade-distorting subsidies and (b) other unfair trading
practices.
The Parliamentary Under-Secretary of State for International
Trade (
)
Happy birthday, Mr Speaker. The United Kingdom now has a fully
operational trade remedies system that can take action if foreign
subsidies harm British businesses. In addition, last month, my
right hon. Friend the International Trade Secretary chaired a
meeting of G7 Trade Ministers that called for the start of
negotiations to develop stronger international rules on
market-distorting subsidies and trade-distorting actions by
state-owned enterprises, such as the forced transfer of
technology.
Dr Mullan
Happy birthday, Mr Speaker. With nine out of 10 of the largest
Chinese firms being state-owned enterprises, it is clear that the
international rulebook is not keeping up with the latest players’
tactics. I do not want to see—I do not think anyone here wants to
see—British businesses undercut. Will the Minister elaborate on
what more we can do, working with like-minded allies in the WTO
and the G7, to tackle these unfair practices?
Mr Jayawardena
My hon. Friend is right that global trading rules have not
adapted to take account of China’s growth or its different
economic model, so Britain cannot, and will not, allow her
businesses to be damaged or undercut by those who do not play by
the rules, such as through the non-transparent granting of
different forms of industrial subsidies. We will work with
like-minded partners at the G7, the G20, the WTO and elsewhere to
address the harmful impacts of these unfair practices.
(Sefton Central) (Lab) [V]
Happy birthday, Mr Speaker. The Trade Remedies Authority has made
a deeply flawed recommendation to withdraw half of all the
safeguards on steel. If the recommendation is implemented, it is
likely to lead to a flood of steel imports, with potentially
disastrous consequences for the steel industry, communities and
livelihoods. The Government’s own regulations do not allow them
to retain the safeguards unless the Trade Remedies Authority
advises them to do so. The Secretary of State has already said
that the regulations need to be reviewed, so will Ministers
accept our offer to work together to find a way to retain these
vital safeguards and, in so doing, live up to the commitment made
by the Trade Secretary to do whatever it takes to protect our
steel industry?
Mr Jayawardena
I am delighted to hear what the shadow Minister says, but what he
is asking for, which is the imposition of measures against the
independent recommendation of the TRA, is not within the
Secretary of State’s powers today. In fact, his party argued that
the Secretary of State should have fewer powers when the
legislation was going through the House under the last
Government. It wanted to curtail her powers further, and it was
robust on that. We will not hesitate to defend British industry;
that is our policy. The world has changed since 2018, when these
powers were put in place, and the Trade Secretary is exploring
what else might be needed in Britain’s toolkit to defend British
industry.
Australia Trade Agreement: Buckinghamshire
(Aylesbury) (Con)
What assessment she has made of the potential benefits of a free
trade agreement with Australia for Buckinghamshire.
The Minister for Trade Policy () [V]
There will be opportunities for businesses across Buckinghamshire
as part of the 2,600 businesses in the south-east that were
already exporting goods to Australia last year. They are set to
benefit from action on tariffs in areas such as cars, food and
drink, and machinery, and there will be benefits in services,
including digital, data and innovation provisions that will
future-proof the FTA for businesses in Buckinghamshire and across
the United Kingdom.
Many happy returns, Mr Speaker. I thank the Minister for his
answer. Buckinghamshire has more microbusinesses than any other
county in the country, so now that we are a free sovereign
trading nation once again, what help can my right hon. Friend
give to those very small businesses that want to export to
Australia but might not yet have the expertise and experience to
do so?
I am well aware of the situation in Buckinghamshire; my father
set up a microbusiness in Buckinghamshire 40-odd years ago. I can
tell my hon. Friend that our refreshed export strategy will raise
the exporting culture of the UK, taking advantage of our new
independent trade policy by providing SMEs and micro-businesses
across Buckinghamshire with new opportunities to build their
exporting capability in both goods and services, to enhance
support, to strengthen one-to-many digital services and to
improve access to finance.
Trade Deals: Human Rights
(Cynon Valley) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Blaydon) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(St Helens South and Whiston) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Swansea West) (Lab/Co-op)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights in future trade deals.
(Stockton North) (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 supported the promotion of her values
globally. We are clear that more trade does not need to come at
the expense of rights or responsibilities, and although our
approach to agreements will vary between partners, our strong
economic relationships allow us to have open discussions on a
range of issues.
Penblwydd hapus, Mr Speaker. Given the ongoing violations of
international law by the Israeli Government, the attacks on the
human rights of the Palestinian people and their suffering, and
Israel’s recent bombardment of the Gaza strip in May, in which
more than 240 Palestinians, over a quarter of them children, were
killed, thousands more were injured and more than 90,000 people
displaced, does the Minister agree that it is now essential that
there is an investigation into whether UK-made arms or components
have been used in the recent violence and destruction of homes,
businesses and health facilities in Gaza? In the meantime, will
the Government immediately cease the export of arms to Israel?
Mr Jayawardena
Every Israeli and Palestinian has the right to live in peace and
security. We understand the deep frustration on all sides at the
lack of progress in the middle east peace process. The ongoing
violence just underlines that a lasting resolution that ends
these problems is long overdue. In respect of our arms exports,
we have a robust arms export control process in the United
Kingdom that is governed by the consolidated criteria, and no
exports occur where the consolidated criteria are not met.
The UK’s deal with Cameroon will complete its ratification
process today, with no vote by MPs and no apparent concern from
Ministers about the abuse that is taking place in that country.
Can I ask the Minister whether he thinks the US Government were
wrong to end preferential trade with Cameroon because of the Biya
regime’s abuses, and if not, why are we ratifying a deal to do
the opposite?
Mr Jayawardena
The Under-Secretary of State for International Trade, my hon.
Friend the Member for Beverley and Holderness (), spoke in an Adjournment debate yesterday on this
topic, and the Opposition could, of course, have used an
Opposition day debate on this area. We have a strong history of
protecting rights around the world, promoting our values
globally, and we will continue to do so. By having an economic
partnership agreement in place and encouraging trade, we are
continuing to support some of the most vulnerable people in
Cameroon, providing valuable employment and helping to lift them
out of poverty.
Ms Rimmer
Happy birthday, Mr Speaker.
“Mass torture”, “rape” and “forced sterilisation”—that is the
testimony of dozens of survivors at the Uyghur tribunal in
London, which is chaired by the former lead prosecutor at The
Hague, Sir Geoffrey Nice, QC. Does the Minister really think the
British Government should be turning a blind eye to the suffering
of the human race for the sake of trade deals?
Mr Jayawardena
We have not. We have proven our leadership and commitment time
and again. We have ramped up pressure on China in multilateral
forums. We are taking targeted action on supply chains and our
approach to China remains clear-eyed: we remain rooted in our
values and in our interests. The truth is that we have announced
a series of measures to help make sure that British businesses
and the public sector are in no way complicit in the rights
violations in Xinjiang, and that includes making sure there is a
review of export controls as they apply to the situation there.
[V]
Happy birthday, Mr Speaker. The English-speaking population in
Cameroon faces mass killings, atrocities and torture. As we have
heard, the US has now invoked trade sanctions, but the UK has
signed a trade deal without parliamentary approval. So can I ask:
has the EU’s essential rights clause now been removed from all
future trade deals, so that abuses, however abhorrent and
widespread, will now be supported by the British economy through
secret deals, thereby taking control back from Parliament and
giving it to those with blood on their hands?
Mr Jayawardena
I am not entirely sure what the hon. Gentleman is referring to in
respect of secret deals. This is an agreement that the EU had
originally. We have continued an agreement here to provide
certainty to businesses in both countries and to date the EU has
not taken measures against Cameroon—I know how fond he is of the
EU.
In response to the Adjournment debate last night, the
Under-Secretary of State for International Trade, the hon. Member
for Beverley and Holderness, told the House in relation to
Cameroon that
“Violence does appear to have decreased in recent months compared
with the peak of the conflict”.—[Official Report, 9 June 2021;
Vol. 696, c. 1070.]
as if the fact that the Biya regime is killing and maiming fewer
of its citizens was justification for our trade deal with them.
Is it really the Government’s position that it is fine to do
trade deals with murderous regimes if they are now killing fewer
of their own people than they were?
Mr Jayawardena
The British people will have noticed that I have now answered
five questions from Labour Members on future trade agreements
and, instead of seeking to secure benefits for their constituents
on those deals, they are clutching at straws to stop them. The
Labour party is hopelessly out of touch. This Conservative
Government are focused on delivering for the British people.
Unlike Labour, we have a plan for jobs and growth, and trade is
central to that. We have secured trade deals with 67 countries
around the world, plus the EU, covering trade worth £730 billion
last year—and we are just getting started.
UK Steel Exports
(Newport East) (Lab)
What steps her Department is taking to support UK steel exports.
The Parliamentary Under-Secretary of State for International
Trade ()
We are working to de-escalate trade tensions that negatively
impact steel exporters, including our pursuit of a permanent
resolution to the US section 232 tariffs, which so unfairly harm
the UK steel industry. I am pleased to say that in terms of the
EU we have agreed tariff-rate quota allocations for UK steel
exports, without which the industry could have been hit by a 25%
tariff and an estimated cost of £80 million in the first half of
this year alone.
Another penblwydd hapus to you, Mr Speaker.
The greatest step that Ministers can take to protect our exports
is to protect our steel industry as a whole. As my hon. Friend
the Member for Sefton Central () asked earlier, will Ministers commit to working
with Labour on a cross-party basis, as was promised in the
Westminster Hall debate yesterday, to fix deficiencies in our
trade remedies legislation and reverse the recommendations from
the Trade Remedies Investigations Directorate that UK Steel has
called “a hammer blow” to our industry?
The TRA has conducted a full review of the steel safeguard
measure so that it applies to the UK in a proportionate and
WTO-compliant manner. It is an independent body, as the hon. Lady
knows, that provides unbiased evidence-based assessments of the
need for remedies. For clarity, the Secretary of
State—[Interruption.] It would be great to get through one answer
without chuntering from the right hon. Member for Islington South
and Finsbury (), but it seems to be impossible. The Secretary of
State can only accept or reject the TRA recommendation as a
whole; she cannot modify or partially accept it and she cannot
extend the measure if the TRA does not recommend it. However, it
is crucial that the Government have the correct tools available
to allow them to tackle unfair trade, and the Secretary of State
will be giving careful consideration to the trade remedies
framework and the powers that it affords her.
G7 Summit: Trade Priorities
(Cardiff North) (Lab)
What her Department’s trade priorities are for the upcoming G7
summit.
(Portsmouth South) (Lab)
What her Department’s trade priorities are for the upcoming G7
summit.
The Secretary of State for International Trade ()
Happy birthday, Mr Speaker; I am sorry that I did not mention it
earlier.
Mr Speaker
You’ve made up for it now.
The UK has inaugurated the first ever G7 trade track to take
forward the issue of free and fair trade. We need to make sure
that the WTO is reformed to stop unfair trading practices and
modernise the global trading system.
Penblwydd hapus, Mr Speaker.
Ahead of the G7, the Prime Minister has said that climate is his
top priority, yet the Department for International Trade is still
funnelling billions—including £3.5 billion from UK Export
Finance—into overseas fossil-fuel projects and dirty projects are
still being considered, despite the promise to end them. The
Prime Minister himself flies into Cornwall on a private jet to
talk climate. How can this Government expect to be taken
seriously as a climate leader on the biggest threat facing us
when they clearly do not take the issue seriously themselves?
I refute what the hon. Lady just said. We have changed the rules
that govern UK Export Finance to make sure that it is focused
solely on financing clean-energy projects, and that is alongside
other measures that support our zero-carbon objectives. We are
also working hard at the World Trade Organisation and through the
G7 to make trade greener and to make sure that zero carbon is
part of how the global trading system works.
Labour has backed an intellectual property waiver on vaccines to
help with the pandemic in the poorest countries. The US agrees,
as do the majority of world leaders, but the UK remains
steadfastly against the plan. With the G7 giving us the
opportunity for breakthrough this weekend, will the Secretary of
State tell us why she will not support this life-saving
initiative?
I am very proud that the UK Government funded research into the
Oxford-AstraZeneca vaccine, which is now producing 98% of the 49
million covid vaccines delivered right around the world. We have
played a leading role in that. I am interested in practical
measures that have real effect, such as voluntary licensing
agreements. If there is any evidence that intellectual property
waivers could help, I am all ears and interested to hear it, but
we cannot have a regime that destroys intellectual property
rights and ends up stopping future innovation.
(Harrow West) (Lab/Co-op)
With all due respect to the Secretary of State, boosting the
overall global supply of vaccines is key to get global trade
going, secure British jobs and help our allies in the
Commonwealth and the developing world. In these exceptional
times, why did Britain, as my hon. Friend the Member for
Portsmouth South () said, refuse to support at the World Trade
Organisation yesterday—presumably on the Secretary of State’s
instruction—allies of ours such as America, India and South
Africa, and many other countries, and to back a temporary waiver
of patents on covid vaccines?
As I have said, the UK is always willing to listen to pragmatic
suggestions about how we make the regime work better. For
example, we have supported the abolition of export
restrictions—many other countries have not—so that we can see
goods flow around the world. The fact is that the real changes
are being made by voluntary licensing, as we have enabled at the
Serum Institute in India. We are part of the third-way work to
roll out practical answers. There is no IP waiver proposal on the
table that would actually deliver more vaccines to the poorest
people in the world, which is what we want to achieve.
Mr Speaker
Right, let us try the next challenge.
Free Trade Agreement: Australia
(Gainsborough) (Con)
What progress she has made in securing a free trade agreement
with Australia.
The Minister for Trade Policy () [V]
Following two days of intensive discussions during the visit of
Dan Tehan, the Australian Minister for Trade, Tourism and
Investment, on 22 and 23 April, both sides reached consensus on
most elements of a comprehensive free trade agreement. The UK and
Australia are now working to agree the outstanding elements, with
the aim of reaching agreement in principle this month.
[V]
I am speaking from Lincolnshire, the bread basket of England. It
is a prosperous county, but in the area of world free trade
before the second world war, we could walk on derelict farms from
Lincoln to Grimsby. Can the Minister assure me that this free
trade deal with Australia, which I welcome, will ensure a bright
future for our farmers, and that there will be no relaxation of
our high-quality standards and no imports of mass-produced wheat
that could undercut our farmers?
My right hon. Friend is quite right to point to the brilliance of
the Lincolnshire farmers and their industry in helping both to
feed this country and to export. We have been absolutely clear
that, when it comes to trade deals, there will be no compromise
on our standards, food safety, animal welfare and the
environment. I agree that there is an opportunity here for
Lincolnshire to be exporting more. We have secured more access
last week in the Norway, Iceland and Liechtenstein deal. We are
looking forward to joining the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership, which has big
opportunities for UK agriculture and future free trade agreements
going forward.
Australia Trade Agreement: Scottish Farming
(Gordon) (SNP)
What recent assessment she has made of the potential economic
effect of the proposed free trade agreement between the UK and
Australia on farming in Scotland.
(East Dunbartonshire) (SNP)
What recent assessment she has made of the potential economic
effect of the proposed free trade agreement between the UK and
Australia on farming in Scotland.
The Minister for Trade Policy () [V]
This is a deal for the whole Union. Our scoping assessment found
that Scotland will benefit in all modelled scenarios. Reducing
tariff barriers for our world-class food and drink industry
should help bolster exports of iconic Scottish goods to
Australia, such as Scotch whisky, apparel and services, such as
financial services. Once we accede to CPTPP, Scottish farmers
will also gain access to the increasing middle class in Asia.
Australia’s red meat industry has the goal of doubling its sales
by 2030, which requires access to UK markets. That expansion can
only come, despite what the Government say, at the expense of
domestic producers and standards. What absolute minimum SPS,
bio-security and welfare standards will the Government insist on
in any Australian trade deal to safeguard producers and
consumers, and to ensure that our farmers are not simply the next
industry to be thrown beneath the wheels of the Brexit bus?
I have met with NFU Scotland a few times in recent weeks. To be
honest, it would be nice to hear the hon. Gentleman and his
colleagues for once sticking up for agriculture in Scotland and
the opportunities that come from trade, rather than being against
every single trade agreement. Australia apparently exports a lot
to Asia—75% of its beef exports, 70% of its lamb exports—and only
0.15% to the UK. There are strong reasons for that. The
production costs, for beef in particular, are much higher in
countries such as Japan and Korea than they are in either the UK
or in Australia. Staged over time, tariff reductions and making
sure that safeguards are in place, we are confident that we will
have the ability to protect UK farmers from any unforeseen
increases in Australian imports to this country.
[V]
I wish you a very happy birthday, Mr Speaker.
Currently, the UK does not have specific legislation to ban meat
from animals raised by inhumane methods such as battery
cages—methods that are utterly intolerable here but permitted and
used extensively in Australia. The Department for International
Trade has also never set out if or how it might inspect animal
welfare and food standards in countries with which we may sign
new post-Brexit trade deals. Does the Minister truly believe that
the people of Scotland are prepared to see food on their
supermarket shelves reared in appalling conditions, all for the
additional 0.1% to 0.2% of GDP over 15 years as per his
Department’s own assessment?
I have never heard the SNP support any trade deal, ever. SNP
Members even voted for a no-deal Brexit last December. The hon.
Member mentioned standards. We have been absolutely clear that
there will be no compromise on our standards. However, Australia,
in its standards on animal welfare, is actually ranked five out
of five by the World Organisation for Animal Health for its
performance in veterinary services across 38 categories. The hon.
Member talks about meeting our standards; our import standards
remain high, and will be unchanged as a result of this or any
other trade agreement. Australian produce—as, indeed, other
produce—must continue to meet our high import standards.
Domestic Battery Development
(Birmingham, Selly Oak) (Lab)
If she will include provisions to support domestic battery
development in future trade deals.
The Parliamentary Under-Secretary of State for International
Trade (
)
We recognise the importance of domestic battery development and
manufacturing, which is why we have engaged with business to
understand its needs and ensure that our free trade agreements
deliver. That includes negotiating rules of origin that consider
the transition to electric vehicles and enable British
manufacturers such as Jaguar Land Rover and Nissan to access
global markets.
[V]
Happy birthday, Mr Speaker.
As the Minister acknowledges, the future of our car industry in
the west midlands is dependent on battery production and the
Government giving the go-ahead for a gigafactory, but battery
production requires ready access to materials such as cobalt,
lithium and manganese. Will he tell us which countries he is
talking to about trade deals that would secure these supplies?
Mr Jayawardena
We are talking to friends around the world to make sure that our
supply chains are more resilient than ever before. That is a
clear lesson from our coronavirus situation, where we have seen
that we should not be too reliant on any one country. We have
prioritised securing investment in battery cell gigafactories, to
which the hon. Member refers. I am delighted that he is
supporting our agenda, which we believe is key to anchoring the
mass manufacture of electric vehicles in Britain, safeguarding
jobs and driving emissions to net zero by 2050.
Australia Trade Agreement: Bishop Auckland
(Bishop Auckland) (Con)
What steps her Department has taken to ensure that (a) farmers
and (b) food producers in Bishop Auckland can benefit from an
free trade agreement with Australia.
The Minister for Trade Policy () [V]
The Government are clear that any deal with Australia must work
for UK farmers and producers. We will use a range of tools to
defend British farming. As well as improving access to the
Australian market, an FTA will act as a gateway to CPTPP,
creating unheralded new export opportunities for British farmers
and producers.
Last summer, the Secretary of State visited Grange Hill farm in
Bishop Auckland, where leading farmers John and Jane are rightly
proud of the fabulous beef that they produce. Will my right hon.
Friend please tell the House how the gateway to the CPTPP—a deal
with Australia—will open up new markets for British beef farmers?
I know that the Secretary of State greatly enjoyed her visit last
year to the farms in my hon. Friend’s constituency. CPTPP is a
great opportunity. I referenced in an earlier question growing
Asian demand for products such as meat and other British agrifood
products. We see there being tremendous opportunities in that
fast-growing market—13% of global GDP across four continents.
This is a real opportunity to be able to sell British farming
produce to those fast-growing Asian and American markets.
UK-China Trading Relationship
(Edinburgh South West) (SNP)
What recent assessment she has made of the UK’s trading
relationship with China.
The Parliamentary Under-Secretary of State for International
Trade ()
China is an important trading partner for the UK, with bilateral
trade worth £78.8 billion in 2020. In fact, China was our third
largest overall trading partner and seventh largest export market
last year, with UK exports to China amounting to £22.9 billion.
The UK also remains a leading destination for Chinese outbound
investment in Europe.
[V]
Coda Octopus, a company based in my constituency, has been
encouraged by successive Tory Governments to expand its sales to
China. Its world-leading Echoscope is used in underwater port
construction and in renewable energy projects, and it does not
have a military use. Yet despite a 23-year track record of
exports, it is now losing millions of pounds in orders due to a
change in attitude on export licences, and responses from the
Minister’s Department are taking over 100 days. Will the Minister
meet me so that I can sort this situation out for my
constituents?
I thank the hon. and learned Lady for her reasonable question. It
is a delight to have an SNP Member in the Chamber actually
championing business and looking to open up markets. We have one
of the most rigorous and thorough export licensing regimes in the
world, and we are proud of it. Every application is looked at on
a case-by-case basis against the consolidated criteria. However,
I will ensure that a meeting is set up for her with the
appropriate Minister to discuss this.
(Oxford
West and Abingdon) (LD) [V]
Happy birthday, Mr Speaker.
Two weeks ago, we heard that Jimmy Lai, the owner of the largest
pro-democracy newspaper in Hong Kong, had not only been sentenced
for a second time but has now had his assets frozen. This step
makes it incredibly hard to continue to fund his journalistic
enterprises, which in turn has a chilling implication for a free
press in Hong Kong. Colleagues across this House have called on
the Government to implement Magnitsky sanctions, but there is
concern that the UK’s sluggishness to implement sanctions is
because the Government seek a future trade deal with China. Can
the Minister clarify: is the prospect of a future deal causing
this Government to treat China with leniency it does not deserve?
It is one of the abiding characteristics of the left in general
that if they cannot find a scare story they invent one. This
Government are clear: we are not seeking a free trade agreement
with China. We have led the world in challenging China where we
have found it necessary to do so. Working with international
partners, we seek to maximise impact on any actions China takes
that run counter to its international treaty obligations,
including detentions without trial, detention of human rights
defenders, and persecution of some religious and ethnic
minorities. We work with allies on the most effective means to
challenge it. On 30 June, at the 44th session of the UN Human
Rights Council, the UK read out a formal statement on behalf of
28 countries highlighting concerns about the human rights
situation in Hong Kong and Xinjiang. I hope that the hon. Lady
and other Opposition Members will never again suggest that we
would do anything to put trade ahead of our responsibilities on
human rights.
Topical Questions
(Oxford
West and Abingdon) (LD)
If she will make a statement on her departmental
responsibilities.
The Secretary of State for International Trade ()
Last week the UK agreed in principle a new trade deal with
Norway, Iceland and Liechtenstein worth £22 billion that brings
opportunities for British exporters and services, from farmers to
lawyers to musicians. It is the first trade deal ever to include
provisions on mobile roaming, and it brings benefits to UK fish
processing, supporting 18,000 jobs in Scotland, East Yorkshire
and north Lincolnshire.
[V]
Last month, Members in all parts of the House were horrified by
the appalling outbreak of violence between Israel and Gaza. Can
the Secretary of State set out whether British arms exports were
used in any way against innocent civilians in that conflict? If
she is unable to do so, does she not agree that the inability to
know where our arms are being used, and what for, is hugely
concerning given the potential breaches of international law?
We welcomed the announcement of a ceasefire in Israel and Gaza
last month. We are committed to a durable ceasefire. As the
Under-Secretary of State for International Trade, my hon. Friend
the Member for Beverley and Holderness () mentioned, we have one of the most robust export
control regimes in the world and we take these issues very
seriously.
(Aylesbury) (Con)
I know that my right hon. Friend the Secretary of State is
currently working on a possible trade deal with the Gulf, which
would be of great benefit to all concerned. For trade to be
successful, we need to ensure easy mobility for business people,
but currently Emiratis wanting to visit the UK on the visa waiver
scheme are permitted only a single entry in a period of six
months. Will the Minister work with colleagues in the Home Office
to allow multiple entries so that the UK is never at a
disadvantage compared with other European countries?
The Parliamentary Under-Secretary of State for International
Trade (
)
My hon. Friend is absolutely right to recognise the importance of
the Gulf given that the six countries in the Gulf Co-operation
Council are our third-largest non-EU export market, at over £30
billion last year. I am very pleased that we have a strong visa
offer for our partners there, including the electronic visa
waiver programme, and that the introduction of Britain’s new
points-based immigration system creates a level playing field for
the first time in many years. I will continue to work closely
with fellow Ministers at the Home Office to make sure that the
visa system contributes to Britain rightly being recognised as a
world leader with which to trade and invest.
(Blyth Valley)
(Con)
Happy birthday from Blyth Valley, Mr Speaker. I recently had the
pleasure of visiting B&B Attachments, a fantastic firm in
Cramlington that designs and constructs stock handling machinery
for the front of forklift trucks. During my visit, it became
evident that now more than ever, we need to showcase the ability
of such firms on a global stage. Does the Secretary of State
agree that she is doing all she can to support and promote the
achievements of our homegrown manufacturing?
The Parliamentary Under-Secretary of State for International
Trade ()
I thank my hon. Friend for his continued support for businesses
in his constituency, and I agree with him that B&B
Attachments is an example of UK manufacturing at its best. My
Department was delighted to help B&B grow its business
overseas by providing specialised advice and dedicated funding.
The Department is doing all it can to help other manufacturing
suppliers from across the regions and nations of the UK to
achieve success overseas, including with grants from our £38
million internationalisation fund.
(Coventry North West) (Lab) [V]
Given that physical trade shows are taking place in the EU as
early as July and given that so far there has not been any
confirmation of what support will be provided to UK exporters,
can the Minister provide clarity on when his Department will
publish its trade show access programme for the financial year
2021-22? I am sure that the Minister knows that continued delays
will be disastrous for UK exporters, as the UK is supposed to be
showing the world that it is ready to export and keen to forge
new commercial relationships with the rest of the world.
I thank the hon. Lady for her excellent question, because trade
show support is really important for putting British business on
the front foot. We have worked across multiple industries to
improve our digital and virtual offer, and I am delighted to say
that in some areas that has led to higher levels of activity than
we had before. I will make sure that the House is informed as
soon as we have further to say about the plan, possibly following
21 June.
(Airdrie and Shotts) (SNP)
Rouzan, a medic, and Yasin, aged nine—those are only two names of
the many children and frontline medics who have been killed
during systematic oppression of the Palestinian people by the
Israeli Government. Export licences to sell arms to Israel worth
£80 million—£80 million—have been granted by Ministers in the
Department over the past three years. Lives have been lost,
businesses have been attacked, homes are in rubble and families
have been torn apart, yet the UK Government are still selling
British-made weapons to Israel. Will the Minister please clarify
whether it is UK Government policy to sell arms to those
complicit in violations of international law?
The UK has one of the most robust arms export control regimes in
the world. We rigorously examine every application on a
case-by-case basis, and the criteria are clearly laid out in
legislation to ensure complete compliance with international law.
(Stockton South) (Con) [V]
Happy birthday, Mr Speaker. I congratulate my right hon. Friend
on the work she is doing to secure a free trade agreement with
Australia. Does she agree that an agreement with our friends in
Australia will deliver for the whole of the Union, bringing huge
benefits to businesses and jobs not only in my patch of Stockton
South, but in every corner of our United Kingdom?
I welcome my hon. Friend’s enthusiasm for a deal with Australia.
There is also the fact that it will lead to entry to the CPTPP—a
vast Pacific market of huge benefit to the manufacturing industry
in the north-east of England and beyond. I thank him very much
for his support.
(Liverpool, Wavertree) (Lab) [V]
The Secretary of State will be aware that, post Brexit, there
have been substantial changes to checks being undertaken on
products of animal origin. However, an abundance of red tape,
including the need for certified veterinarians to sign off dairy
products, rather than a dairy inspector, as required by most
non-EU countries, is creating an additional burden and causing
extensive delays to the processing of crucial consumer products.
Will Ministers impress on their Cabinet colleagues the need to
resolve these delays and press for a speedy resolution to
facilitate efficient trade across borders?
Mr Jayawardena
The Labour party is the party of red tape; we are the ones who
are getting rid of it. We have called for pragmatism in this
area. We are a sovereign nation—we are British, and we are proud
of it—and we are going to stand by every corner of this country
as we deliver trade benefits and create jobs. In respect of the
issues around meat, it is wrong that anyone should be threatening
the British sausage. We will stand up for the British sausage,
and no one will ever be able to destroy it.
(Burnley) (Con)
A very happy birthday to you, Mr Speaker. In Burnley and Padiham,
we have world-class skills and products, and when we export
those, it is phenomenally successful, but we know that businesses
struggle with having the confidence and knowledge to export if
they have never done it before. Could my hon. Friend set out what
steps the Department for International Trade is taking to give
businesses the support they need when exporting for the first
time, so that we can push the “made in Burnley” message even
further around the world?
I am pleased to say that my Department has recently created the
new Export Academy, designed precisely to equip businesses with
the capabilities and confidence to export successfully. My hon.
Friend is such a champion of his local exporters, and it is so
refreshing to have Government Members like him championing local
business. I believe that he is holding an exporters fair shortly,
and I congratulate him on that. He will be pleased to hear that
259 businesses from the north-west have joined the SME pilot
Export Academy since it began, including 15 from the Burnley
area. We have international trade advisers for the northern
powerhouse, so additional resource has gone in there, and with
his help, we will continue to champion northern businesses, and
businesses from Burnley in particular, over the coming months and
years.
(Sheffield Central) (Lab) [V]
The International Trade Secretary described her new deal with
Norway, Iceland and Liechtenstein as a “major boost” for our
trade, but the Norwegian Government were more realistic. They
said that the deal is “not as comprehensive” as our previous
arrangements, that trade would be“more bureaucratic and less
dynamic”and that without a veterinary agreement, there will be“a
number of trade barriers”that we did not previously face. Does
the Secretary of State recognise that more honest description of
the deal, and will she take steps to reduce the barriers to trade
that she has created for our exporters and importers?
Mr Jayawardena
Once again, the Labour party is obsessed by membership of the
European Union. It has not moved on from the referendum, when the
British people provided a clear signal to us in this place that
we should get on with delivering the benefits of Brexit. This
deal is a world leader in digital trade, eliminating the need for
paperwork, and many countries and trade blocs could learn from
that.
(Kenilworth
and Southam) (Con)
I feel somewhat inadequate that I can only say this in English,
but many happy returns, Mr Speaker.
Will my right hon. Friend confirm that, as and when a trade deal
with the United States is agreed, the Government will not
compromise on the principle that underpins the online safety
Bill—that digital platforms, including American ones, must comply
with the duty of care to keep their users as safe as they
reasonably can—and that that will hold true whether or not the
Bill has completed its legislative passage and is enforced by
that point?
The UK is committed to making our regime the safest place in the
world to be online. In trade negotiations, we will protect our
online safety regime, while also promoting our thriving digital
industry. I am pleased that in free trade agreements with Japan
and the European economic area, we have agreed free flow of data
alongside protecting Britain’s high standards, and that is
exactly what we would do in an agreement with the United States.
(North East Fife) (LD)
Scotch whisky is vital in North East Fife, not just because we
enjoy a wee dram, particularly on birthdays—many happy returns,
Mr Speaker—but because it forms a key part of the local economy.
With four independent distilleries in my constituency, the
success of these businesses matters both for those in directly
linked jobs and for those working in tourism and hospitality. Can
the Secretary of State confirm that the Prime Minister will use
his bilateral meeting with President Biden this week to agree and
publish a clear road map for the permanent settlement of the
Boeing-Airbus dispute, which would remove the risk of tariffs
being reimposed on Scotch whisky and other sectors?
It was very positive news when the tariffs were lifted earlier
this year. We are now working very closely with Katherine Tai,
the US TR, with whom I have regular conversations, on a permanent
settlement to this arrangement, and we are making good progress.
Mr Speaker
As it is my birthday, I am going to give a gift to .
(Strangford) (DUP)
You and I are of a similar vintage, Mr Speaker—
Mr Speaker
You’ve just lost that question—come on, Jim!
The difference is that you and I don’t count the years, Mr
Speaker. Instead, we make the years count, and that is important.
It is really important that we have these trade deals and I
support them, but I wish to express concern about the Australian
trade deal. I declare an interest as a member of the Ulster
Farmers’ Union. The Ulster Farmers’ Union and my neighbours, who
are members of it, have expressed concern about the quality of
Australian beef and the fact that it might impact adversely on
the Northern Ireland beef sector and industry. We export most of
our beef. Can the Secretary of State assure me that the deal will
not impact on the Northern Ireland beef sector?
I thank the hon. Gentleman for his question. I have met the Foyle
Food Group, for example, who were the first beef exporters to
export to the United States when we got the ban removed. I know
that there are huge opportunities around the world for
high-quality Northern Ireland beef. Part of what we are doing
with the Australian trade deal is opening up wider access to the
Asia-Pacific markets, which have higher prices than here in the
UK and in Europe and will bring more opportunity. I am very happy
to have further conversations with the hon. Gentleman.
