International Trade The Secretary of State was asked— SME Trade
with EU Sarah Green (Chesham and Amersham) (LD) 1. What support her
Department is providing to SMEs that trade with the EU. (905100)
The Parliamentary Under-Secretary of State for International Trade
(Mike Freer) The refreshed export strategy, launched in November,
focuses on the barriers to trade faced by small and medium-sized
enterprises, using targeted interventions that help...Request free trial
International
Trade
The Secretary of State was asked—
SME Trade with EU
(Chesham and Amersham) (LD)
1. What support her Department is providing to SMEs that trade
with the EU. (905100)
The Parliamentary Under-Secretary of State for International
Trade ()
The refreshed export strategy, launched in November, focuses on
the barriers to trade faced by small and medium-sized
enterprises, using targeted interventions that help businesses at
every stage of their exporting journey. Our newly unified Export
Support Service provides a single point of contact for businesses
trading with Europe, as one of the central elements of the
strategy.
After finally getting to grips with last year’s contradictory
guidance on trading with the European Union, one family-run
business in Chesham has immediately come up against problems with
the new rules introduced this month. They tell me that
“we would love to do it all absolutely correctly”,
but that nobody will tell them what correctly is. Will the
Minister support the thousands of UK businesses struggling to
trade with Europe by clarifying the Government’s new rules, and
will he work with colleagues in the Department for Business,
Energy and Industrial Strategy to reopen and expand the SME
Brexit support fund?
The ESS is there to help traders who are struggling with elements
of trading with Europe and it will continue to do so. It is
available online and by telephone, but if the hon. Lady would
like me to meet her constituents, I would be more than happy to
do so.
(Harrow West) (Lab/Co-op)
Given the growing list of companies setting out the real and
obvious difficulties they are facing in accessing markets in
Europe, and given the many very practical suggestions that
business groups have put forward to the Government in recent
weeks, from negotiating a veterinary agreement and making
progress on mutual recognition, to even just getting agreement on
shared customs advice, when are Ministers going to try a bit
harder to help businesses make Brexit work?
As far as I know, we have suggested solutions and are waiting for
the EU to respond.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(Wycombe) (Con)
2. What progress her Department has made on securing UK
membership of the comprehensive and progressive agreement for
trans-Pacific partnership. (905101)
(Cheadle) (Con)
14. What progress her Department has made on securing UK
membership of the comprehensive and progressive agreement for
trans-Pacific partnership. (905119)
The Minister for Trade Policy ()
We have made good progress in negotiations and we hope to have
concluded them by the end of this year.
Mr Baker
Is CPTPP not now one of the greatest opportunities we have to
reshape the basis of international trade, to the benefit of not
only the whole UK and the world, but great British businesses
such as Oxford Instruments in Wycombe?
I thank my hon. Friend for the work he is doing to champion his
local businesses. He is right: it is an £8.4 trillion market that
we are opening up. However, this is about not only the economic
benefits, but the benefits of those closer trading ties to enable
people to work on problems that we are all facing around the
world, in tech, the environment, healthcare and other sectors.
That has got to be good for the progress of humanity as well.
Many people in Cheadle work in the tech sector, where jobs in
digital, HealthTech and FinTech provide high-skilled, well-paid
work. Given the high rate of northern unicorn start-ups, does my
right hon. Friend agree that new trading partnerships can open up
markets for future growth and for levelling up in the north?
My hon. Friend is absolutely right; the pay for people working in
those sectors is about 50% higher than the UK average, so the
more jobs we can create in those growth sectors, the better. I
thank her for the work she is doing to champion her local
businesses and expand those opportunities for her
constituents.
(Na h-Eileanan an
Iar) (SNP)
For every £490 of Brexit damage, CPTPP should recover about £8 of
it, but that is at risk if the UK patent attorneys’ membership of
the European Patent Organisation is undermined or removed. At the
moment, UK patent attorneys, who represent about a fifth of the
patent attorneys in Europe, deal with a third of the patents of
Europe. What assessment has been made by the Government of the
damage that could be done to them through CPTPP and will that
assessment be published so that they will know?
CPTPP is not doing damage and our accession to it is opening up
markets. I work closely with all kinds of professional bodies,
including those looking at patents, intellectual property and so
forth. These are key sectors where we want to break down barriers
to trade. As well as free trade agreements, we are looking, as
the hon. Gentleman will know, at memorandums of understanding not
only with countries across the world, but with states in the
United States, to enable those non-tariff barriers to trade to be
removed. We want to work with the EU. I know that the hon.
Gentleman has not come to terms with the fact that we have left
the EU and that we are looking to expand our trading
opportunities. Some 99.9% of the businesses in his constituency
that export will benefit from CPTPP, and I look forward to the
day when he welcomes that.
(Bristol East) (Lab)
The national food strategy published last year said that to allow
lower environmental and welfare standards in future trade deals
would represent
“an extraordinary failure of joined-up thinking”,
yet that seems to be exactly the Government’s approach. As we
await the Government’s White Paper in response to the national
food strategy, what discussions is the Minister having with
colleagues in other Departments to make sure that in that White
Paper we firmly pin down that we will not accept lower
standards?
As I have alluded to, as well as the economic benefits that we
hope trade agreements will bring, they are about highlighting the
fantastic food safety, quality and welfare standards of our local
produce and are an opportunity to champion that. For example, on
my recent visit to the United States I met the agriculture
commissioners of every state and talked about the practices and
values that sit behind what we do here in the UK. The United
States is interested in that and wants to reform some of its
practices. I know that the hon. Lady is passionate about this
agenda and hope she will support us in ours.
Free Trade Agreement: India
(Harrow East) (Con)
3. What progress she has made on a free trade agreement with
India.(905102)
Mr Speaker
We have a slight problem. Will the Secretary of State answer the
question? I will then go to the Opposition spokesperson.
The Secretary of State for International Trade ()
I visited India last week to launch negotiations with my
counterpart, Minister Goyal, for an ambitious free trade deal.
India is one of the world’s biggest and fastest-growing economies
and is home to more than a billion consumers, with a growing
middle class eager to buy the goods and services that our country
excels in. Securing a world-class FTA with India will deliver
benefits for people across all four nations of the UK.
(Llanelli) (Lab)
We know that India does not cede access to its markets easily and
that one of its top demands in any trade deal will be generous
visa concessions for Indian citizens to come to the UK. Recent
press reports indicate that although the Secretary of State would
consider such terms, the Home Secretary would oppose them. Will
the Secretary of State clarify the Government’s negotiating
position and what their red lines will be?
From services and digital to investment and intellectual
property, we are aiming for a broad and ambitious deal with India
that delivers for both businesses and consumers alike. The first
round of negotiations started this week and we hope the second
round of talks will be in March, at which point we will have the
opportunity to shape and see the scope of the FTA that both
countries want to work towards. We will confirm that at an
appropriate time as the negotiations progress. We very much hope
to reach a mutually beneficial agreement by the end of this
year.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
Scotch whisky exports to India, the world’s largest whisky
market, have declined dramatically since 2019. A year on from
Brexit, the Government can no longer deflect to the EU for their
failure to deal with the eye-watering 150% tariffs that apply to
Scotch whisky sales to India. Will the Secretary of State confirm
today that her Government will finally make the removal of those
tariffs a priority?
As the hon. Gentleman says, British products such as Scotch
whisky and cars currently face substantial barriers to trade in
the form of tariffs of well over 100% on their import into India.
The reduction of tariff barriers would be a golden opportunity
for UK exporters and, indeed, slash tens of millions of pounds
off costs. We will put forward our position in a number of areas,
including in respect of Scotch whisky, in the first round of
negotiations in the next two weeks. We will make clear the issues
that are important to us so that we can achieve a successful,
mutually beneficial FTA for all sides.
The whisky industry is used to dealing with weights and measures,
but it has been waiting for too long for measures from this
Government. Will the Secretary of State confirm what target has
been set for tariff reduction for Scotch whisky? Is it half, more
than half or—what the industry needs—the complete removal of that
150% tariff? What is her measure of success?
The hon. Gentleman would be surprised if I were to disclose the
details of my negotiations mandate at this point, but I think I
have already been clear—I will say it again—that it is important
that the trade deal is mutually beneficial, and the reduction of
barriers to trade such as tariffs will be an important point of
the UK’s negotiating mandate.
(Kettering) (Con)
A free trade agreement with India would be a wonderful thing, but
these agreements take a lot of negotiation and a lot of
negotiators. When we were in the EU, we lost all our trade
negotiators and we have had to build up the Department from
scratch. How many free trade negotiators does my right hon.
Friend have in her Department? Are there enough or do we need
more?
We have a fantastic team of now extremely experienced
negotiators. The team who are now focused on the India FTA not
only bring with them a wealth of experience from Whitehall, but
are experts drawn from a number of fields. We will be cracking on
with these discussions, which will be virtual for the first two
weeks, because of the restrictions in India, after which we hope
to be able negotiate face to face. The teams—for instance those
who worked on the Australia free trade deal—work 24/7, or
whatever is required through virtual discussions. We will
continue to do that, and we have a fantastic team leading the
way.
Free Trade Agreement: US
(Stockton North) (Lab)
4. What progress her Department has made on securing a free trade
agreement with the United States. (905104)
The Minister for Trade Policy ()
We have had five productive rounds of negotiations to date and
have agreed a significant proportion of the legal text across
multiple chapters.
The 2018 Tory manifesto on which the Minister stood said that a
trade agreement with the US would be completed by the end of
2022, but the agreement is shrouded in secrecy. As the Secretary
of State said, she toured the US last month, playing up what she
described as a “massive opportunity”. Can the Minister advise us
at what stage the negotiations are now, and confirm that the
promise to the electorate will be fulfilled and a deal put before
this House by the end of the year?
I have just outlined where we are to date in terms of how much
has been written and agreed to. I am sorry that the hon.
Gentleman did not congratulate my right hon. Friend on having
started discussions on section 232 and the announcement that was
made yesterday by the Administration. He will know that we are
concurrently negotiating memorandums of understanding with
states. These things can only be done at state level; I am
talking about regulated and regulator discussions, mutual
recognition of qualifications and so forth, which will reduce
massively the cost of doing business with the United States. We
are making good progress on that twin-track approach. If he
thinks that we should move a little faster, perhaps he might like
to say that to the US Administration.
Trade with Australia
(Ynys Môn) (Con)
5. What steps her Department is taking to increase trade with
Australia. (905105)
(Banff and Buchan) (Con)
7. What steps her Department is taking to increase trade with
Australia. (905107)
The Secretary of State for International Trade ()
The UK signed its first “from scratch” free trade agreement with
Australia on 16 December 2021. The deal is expected to increase
trade with Australia by 53%. Both countries have committed to
removing tariffs on a vast array of popular products, which can
now be more easily traded, including eliminating tariffs on 100%
of UK exports. This deal is tailored to British strengths,
providing benefits for our world-class services industry,
unprecedented new opportunities for UK professionals abroad, and
for trading digitally.
The Australian high commissioner is hosting a gala dinner on Ynys
Môn on 18 February to help raise much-needed funds for the
Anglesey Agricultural Society. How is the Minister working to
help my island farmers and businesses increase trade with
Australia?
First, I would like to wish the Anglesey Agricultural Society
good luck with the Anglesey show, which I understand is in
August. I look forward to an invitation and an excuse to pay a
visit.
The UK-Australia trade deal could boost Wales’s economy by around
£60 million. Welsh farmers will benefit from the opportunities to
sell their produce in Australia, and Welsh manufacturers could
benefit from new procurement opportunities and enhanced business
mobility provisions. Many small businesses will also enjoy
greater access to Australia.
Will my right hon. Friend provide a specific description of the
protections and safeguards that are in place for farmers,
particularly in Scotland, and what recent engagement her
Department has had with National Farmers Union Scotland and other
Scottish food production trade bodies?
The UK has secured a range of measures to safeguard our farmers,
including tariff-rate quotas for a number of sensitive
agricultural products, product-specific safeguards for beef and
sheep meat, and a general bilateral safeguard mechanism providing
a temporary safety net if an industry faces serious injury from
increased imports as a direct consequence of the agreement. The
NFU, Salmon Scotland and the Scotch Whisky Association are trade
advisory group members which were consulted throughout
negotiations and regular meetings, and we will continue to engage
with the NFU and other Scottish agricultural bodies to understand
the impact on the industry.
(Denton and Reddish)
(Lab)
Following on from that, the Government’s own impact assessment
shows a £94 million hit to farming, forestry and fishing sectors,
and a £225 million hit to the semi-processed food industry. The
Government have also negotiated first-year tariff-free allowances
of a 6,000% increase on Australian-imported beef to the UK. Can
the Secretary of State outline what conversations that she has
had with the NFU, specifically about the impact of that deal on
British agriculture?
We have continual and regular discussions with the NFU and other
agriculture bodies. As I have just said, they have been
integrally involved in the discussions all the way through, and I
know that the ministerial team will continue to meet them. I
believe that my Minister responsible for exports will be having a
meeting with them next week.
(Angus) (SNP)
Unseemly haste in securing as many free trade deals as quickly as
possible and at massive expense in pursuit of a press release and
a picture with some TimTams is not the optimal trade policy that
people deserve. Scotland’s farming and fishing sectors are paying
the price for this public relations jamboree masquerading as
trade policy. The UK Government’s own figures show domestic
agriculture, forestry and fishing will suffer a £94 million hit
just from the Australia deal. Scottish producers saw established
routes to EU markets needlessly frustrated by this UK
Government’s Brexit dogma. Will the Minister therefore apologise
to Scotland’s economy?
I am disappointed that moving to having new free trade agreements
with some of the great economies of the world is considered
unseemly haste. We are working at pace and alongside all our UK
businesses with a clear and mandated consultation process to
ensure that we are pitching for the areas of business in which
our businesses want to see growth. The EU market continues to be
there under our fantastic markets. Part of the work that the
Export Support Service is doing is to ensure that those who
already export can do so more easily and indeed that, for those
who have not yet considered exporting to the EU, the
opportunities and the support services are there to assist
them.
(Strangford) (DUP)
In 2019-20, trade in goods and services between Australia and the
UK was valued at £20.1 billion. Currently, the trade in meat
products between the two countries is very small. Specifically, I
want to ask this: what steps has the Minister taken to ensure
that there is more focus on the trade of meat produce from the UK
to Australia, to the advantage of people and farmers in Northern
Ireland?
One of the new tools in our armoury will be the trade and
agriculture commissioners—experts who will be there to help UK
businesses that want to take their products into new markets,
including Australia. I have no doubt at all that, just as we
enjoy Australian wine, we will have the opportunity to see
Northern Ireland meat on the plates of the Australians.
(Penrith and The Border)
(Con)
Free trade agreements should be fair to both partners. The
Australian FTA—dare I say it, like the Ashes cricket series—is a
bit one-sided in favour of Australia. Will my right hon. Friend
reassure the farmers in Cumbria and across the UK that the
safeguard mechanisms in the agreement will have teeth? For
instance, if the Australian meat market were to pivot away from
Asia towards Europe, would the tariff rate quota mechanism be
effective in turning down the supply of meat so that our
fantastic British farmers are not undermined?
Yes, I am confident that the safeguards we have brought in, which
I am happy to set out again, will support the most sensitive
parts of the UK farming community. They include a general
bilateral safeguard mechanism that provides a safety net for all
those products, staged liberalisation, tariff rate quotas and
specific safeguards for beef and sheep meat, which will be there
to support fantastic British produce. Again, I encourage everyone
to sing loudly about how fantastic our British produce is. It is
eaten from plates across the UK and around the world. We will
continue to see that finest produce enjoyed by all.
Mr Speaker
I thank the Secretary of State for not mentioning the
cricket.
US Steel Tariffs
(Preston) (Lab/Co-op)
6. What recent discussions she has had with her US counterpart on
the tariffs on UK steel exports to the US. (905106)
The Secretary of State for International Trade ()
I was pleased to meet virtually with the US Secretary of
Commerce, Gina Raimondo, yesterday to discuss the application of
US section 232 tariffs. As set out in our joint statement, which
was published last night, the US has agreed to commence
negotiations with the UK. I welcome that positive development,
and I will push for a deal that is right for the UK. I will
continue to work closely with industry throughout the
negotiations. The UK accounts for less than 1% of US steel and
aluminium imports in volume terms, so UK imports do not affect
the viability or the national security of the US steel or
aluminium industries.
The International Trade Secretary will recall the Hallowe’en
agreement from last year, when the US gave tariff-free access to
the EU for steel and aluminium exports from the beginning of this
year. That means that the EU will now have a 25% price advantage
over UK steel and aluminium exports to the US. In fact, any UK
steel, even if worked on in the EU, will still attract tariffs in
the US. Is that what the Prime Minister meant when said he said
Brexit was about taking back control?
As I said, it is a Government priority to secure a good deal and
ensure that we find the right way forward to get out of the
section 232 tariffs, which we are doing at pace. The US Secretary
of State for Commerce and I will work to ensure that that
imbalance is removed as quickly as possible.
(Torfaen) (Lab)
At the start of last month, I wrote to the Secretary of State
about those steel tariffs, which have been in place since 2018
and have already done great damage. In 2017, exports of steel and
aluminium to the United States were more than 350,000 tonnes. In
2020, that had fallen to 200,000 tonnes. The situation is urgent,
because as my hon. Friend the Member for Preston ( ) set out, the EU gained a
competitive advantage on new year’s day, with the US having
lifted tariffs for EU member states but not the UK. I welcome the
opening of those negotiations, but will the Secretary of State
confirm that in advance of those talks the Prime Minister raised
the issue personally with President Biden?
I assure the House that I have been extremely robust in moving
the issue along since coming into post. I am pleased that we were
able to launch these negotiations yesterday. It is important that
we sort out and remove those unnecessary and burdensome tariffs
on the UK. The UK steel and aluminium industries are not a threat
to the US ones. We were working closely at every level to ensure
that we find a solution as quickly as possible.
The lifting of the tariffs is vital for jobs and livelihoods
across the country, yet the Secretary of State could not confirm
that the Prime Minister has raised the issue with President
Biden. The truth is that the Prime Minister has been more
interested in saving his own job than in saving jobs in the steel
sector. The longer the tariffs remain in place, the more damage
the Government allow to happen to our steel sector, a
foundational industry that is vital for our economy. If the
Secretary of State cannot even confirm that the Prime Minister
has picked up the phone to the US President about that, are
people not right to conclude that the Prime Minister is focused
on saving himself and does not care about steelworkers’ jobs?
I hope that the right hon. Member will assist us in the
negotiations by speaking to their counterparts and indeed all
those across the US who want the tariffs removed. I reiterate
that at every level of the UK Government we have raised the issue
with the US, and we are therefore at the point where we are now
starting negotiations, which will move at pace. I look forward to
his assisting us to ensure a successful outcome.
International Trade Opportunities
(Truro and Falmouth)
(Con)
8. What progress her Department has made on maximising
opportunities for international trade in 2022. (905108)
The Parliamentary Under-Secretary of State for International
Trade ( )
The Department continues to work hard to boost prosperity in
every corner of our country, helping businesses export, securing
investment, negotiating free trade agreements, bulldozing trade
barriers and championing free trade. Just last week, as my right
hon. Friend the Secretary of State for International Trade said,
we launched negotiations with India, an economy of 1.4 billion
people worth £2 trillion. Our consultation on an FTA with the
Gulf Co-operation Council closed last week, and I look forward to
launching those negotiations soon. We continue to break through
market access barriers. In 2020-21 alone, we resolved more than
200 barriers across 74 countries.
I thank the Minister for his answer. Will my hon. Friend expand
on how businesses in Truro and Falmouth, as well as in wider
Cornwall, can take advantage of free trade deals that the
Government hope to secure in 2022, so that my constituents can
reap the rewards and benefits that they will bring?
Mr Jayawardena
My hon. Friend is a great champion of businesses in Truro and
Falmouth. The south-west is already benefiting from the
Department’s work and will continue to do so. A deal with India
would benefit the more than 600 west country businesses that
exported more than £20 million of goods to India in 2020, and I
am sure many more will do so in the future. Food and drink
producers—even those that use imported ingredients—now qualify
for nil tariffs in a deal with Australia, which is good news for
fans of Cornish pasties down under.
Imports from Xinjiang, China
(Manchester, Gorton) (Lab)
9. If she will take steps with Cabinet colleagues to ban the
import of Chinese cotton and solar panels from Xinjiang.
(905109)
The Minister for Trade Policy ()
We continue to keep our policy response under close review and
are working with international partners to hold China to account
for any violation of human rights.
China is the largest cotton producer in the world, with 84% of
cotton coming from the Xinjiang region. The region also produces
45% of the world’s supply of the key component in solar panels,
polysilicon, which means that the supply chains are tainted with
forced Uyghur labour. In a response given in the other place, the
Government outlined that they would
“continue to pursue a positive economic relationship with China
and…increase trade with China.”—[Official Report, House of Lords,
21 October 2021; Vol. 815, c. 252.]
In light of the genocide against the Uyghur Muslims, does the
Minister think that is an acceptable approach, and will the
Minister now follow in the footsteps of the US and ban imports
from China’s Xinjiang region?
First, I thank the hon. Gentleman for raising the issue. The more
we can talk about it, keep it on our agenda and raise the profile
of such matters consistently, the more helpful it is. We are
looking at what other nations are doing and we keep our policies
under review. He is right: we need a mix of targeted responses
against states and also companies that have those practices. We
have a good track record on combating modern slavery and being a
global leader in this field, but we also need the transparency
and tools for consumers and customers of those businesses to find
other suppliers if they have concerns. We will keep the matter
under review, and I can tell the hon. Gentleman that we take
those matters very seriously.
EU Veterinary Agreement
(North Down) (Alliance)
10. What assessment she has made of the implications of the
Australia and New Zealand free trade agreements for concluding a
veterinary agreement with the EU. (905112)
The Secretary of State for International Trade ()
Nothing in the UK-Australia or UK-New Zealand agreements prevents
the UK from reaching a veterinary agreement with the EU. Our
agreements allow the UK to co-operate with both Australia and New
Zealand and with the EU to avoid unnecessary sanitary and
phytosanitary barriers to trade in agrifood, without constraining
the UK’s right to regulate in those areas. We are open to
discussions with the EU on additional steps to further reduce
trade frictions.
The European Union will remain the UK’s largest export market for
the foreseeable future, so the priority must be to remove all
remaining non-tariff barriers, especially to help our UK agrifood
exporters, and also to address some of the tensions around the
Northern Ireland protocol. Does the Minister recognise that other
free trade agreements risk restricting the nature of any EU
veterinary agreement to one that is more limited and based around
equivalence, rather than a more comprehensive one based on
alignment? That will restrict our ability to trade with the EU to
the maximum potential in the future.
We are clear that we want goods to be able to travel from Great
Britain to Northern Ireland without unnecessary barriers, and the
Government continue to be in intense discussions with the EU with
the aim of delivering those significant changes to the protocol,
so that there should be a green channel for goods in and out of
Northern Ireland and no further checks or documentation for goods
moving between GB and Northern Ireland. This is an important part
of that wider process, and our trade agreements with the rest of
the world will continue to champion Northern Ireland as part of
the United Kingdom.
Export Protection: Leaving the EU
(Ealing Central and Acton)
(Lab)
12. What steps she is taking to ensure that protections for
exports to third countries negotiated while the UK was a member
of the EU are maintained following the UK’s departure from the
EU. (905116)
The Parliamentary Under-Secretary of State for International
Trade ( )
Since leaving the EU, the United Kingdom has secured trade
agreements with 70 non-EU countries, in addition to the deal with
the EU. Many of those deals were negotiated to secure continuity
of trade, and they cover 99% of the trade under trade agreements
we were subject to when we were also subject to the diktats of
the EU, which I am sure is not what the Labour party is
advocating today.
Dr Huq
I listened to what Mr Speaker said—I mean the
Minister—[Interruption.]Of course we always listen to everything
Mr Speaker says. The Minister’s description does not tally with
the experience of my constituent, Danny Hodgson, whose clothes
retail business Rivet & Hide made the Financial Times exactly
a year ago because of the crippling new additional duties he
faces in importing from the EU. This time it is even worse,
because he is finding that all the goods coming in from Japan are
attracting a 12% levy. That is slapped on erroneously and
routinely seven out of 10 times, I think, and it is a
bureaucratic, red tape, bookkeeping nightmare for him. Will the
Government look into the case? They are meant to be the party of
small and medium-sized enterprises and low tax, and they have
trashed their reputation for all that. Can the Government
urgently help my constituent please?
Mr Jayawardena
I am delighted that the hon. Lady recognises that this party is
the party of business. That is great news and I welcome her
remarks. She references a business that trades with Japan, but I
note that she did not vote for the deal with Japan nor the deals
with Canada, Singapore or even the EU. Of course we will happily
look at any business that she wishes to raise with me in writing,
but I point out that this party is the party of business. We are
the party that is securing the trade deals that will benefit
businesses across our country.
Manufacturing: Government Support
(Sedgefield) (Con)
13. What recent steps her Department has taken to support
manufacturing businesses to (a) increase exports, (b) participate
in the global market and (c) compete internationally.
(905117)
The Parliamentary Under-Secretary of State for International
Trade ()
In 2021, the DIT launched a new exports campaign: “Made in the
UK, Sold to the World”. The campaign, in line with our refreshed
export strategy, celebrates the quality of the UK manufacturing
sector and its potential to export worldwide. We are reaching out
to businesses across all UK regions and nations to create
opportunities for our manufacturers.
I thank the Minister for his answer. I recently had the pleasure
of visiting Gestamp on the industrial estate in Newton Aycliffe
in my constituency. It supplies thousands of subframes every day
to motor manufacturers worldwide, but it has outlined to me
concerns that have been raised with it by European companies
about the rules of origin and potential tariffs on goods supplied
from the UK. Will the Minister reassure Gestamp that it is
absolutely safe for European businesses to trade with British
companies and that our trade deal with the EU will not result in
future tariffs? I encourage him to find time in his diary to
visit that fantastic business.
My hon. Friend fights hard for his constituency. I am pleased to
reiterate that the trade and co-operation agreement ensures that
businesses in every part of the UK can continue to sell to their
customers in the EU. We successfully negotiated a zero tariff,
zero quota trade deal, which means that goods traded between our
markets can qualify for zero tariff trade as long as they meet
the rules of origin requirements set out in the TCA. We have
secured modern and appropriate product-specific rules of origin
that are tailored to the needs of UK business, including
innovative rules for the automotive sector. I am happy to join
him in visiting the company.
Barriers to Global Trade
(Dewsbury) (Con)
15. What steps her Department has taken to reduce barriers to
global trade for British businesses. (905121)
The Parliamentary Under-Secretary of State for International
Trade ( )
In addition to negotiating FTAs, as I have said, we are cutting
through red tape and opening markets for British business around
the world. Last year, we resolved over 200 barriers across 74
countries, which was an increase of 20% on the previous
year—[Interruption.] I am delighted that the hon. Member for Na
h-Eileanan an Iar () is getting so
excited about that success. We have secured British poultry
market access in Japan, estimated by industry to be worth up to
£13 million a year, and we have lifted the decades-long ban on
British lamb exports to the United States, estimated by industry
to be worth £37 million over the next five years.
Since being appointed the trade envoy to Pakistan, I have
encountered a number of issues that hinder potential trade
opportunities such as exporting meat and poultry to help our
farmers and importing high quality granite and marble that is
important to the UK burial industry, and difficulties for
businesses gaining access to UK Export Finance. Will the Minister
outline what he is doing to overcome those and other barriers so
that trade can be open not just to Pakistan but across the
globe?
Mr Jayawardena
I thank my hon. Friend for his great work as trade envoy to
Pakistan. We are very aware of the challenges to exports in the
farming sector posed by costly market access barriers around the
world, which is why we are working closely with our counterparts
in the Department for Environment, Food and Rural Affairs and
engaging trading partners to remove them where possible, as I
have outlined, so that Great British meat and produce can be
enjoyed all around the world.
My hon. Friend mentioned UKEF, which has a £1.5 billion risk
appetite to support exports in Pakistan with a specialist team on
hand to discuss options available to British businesses of all
sizes. He will also know that we will soon launch our developing
countries trading scheme, which will look to further simplify
trading arrangements with developing countries, including
Pakistan.
(Edinburgh North and Leith)
(SNP)
In the interests of peace and harmony, I shall refrain from
dwelling on the Ashes cricket series.
Small businesses are simply less likely to be able to afford the
consultants, lawyers, trade experts and advisers necessary to
navigate the complexities of the hard Brexit customs checks that
this Government insisted on. Despite that, the Government have
now closed the SME Brexit support fund and not replaced it,
although a Channel 4 investigation found that 26% of SMEs that
trade with the EU are now considering moving some of their
European operations outside the UK, while 16% said they had
already done so. A Lords report published in December said it is
absolutely vital that it is reopened with wider eligibility
criteria, and the Federation of Small Businesses has also been
calling for that for months. Will the Minister listen to the
small business experts?
Mr Jayawardena
First, I am sure the hon. Member would want to direct all
businesses to our export support service, which will help British
businesses get the answers to the practical questions they may
have about exporting to Europe, accessing cross-Government
information and support all in one place. She will be pleased to
know that the statistics actually show that monthly exports to
the EU are now £13.6 billion, which is 12% higher than average
exports in 2020. That shows that significant progress is being
made in our exports from businesses of all sizes up and down our
country.
UK Trade Levels
(Motherwell and Wishaw)
(SNP)
16. What recent assessment she has made of trends in the level of
UK trade with the (a) EU and (b) rest of the world. (905122)
The Secretary of State for International Trade ()
Official statistics up to end of November last year show that UK
trade in goods with the EU has seen three consecutive monthly
increases, with November showing an increase of nearly 3%. Goods
trade with the EU is now above average levels for 2020, although
still below 2019 levels. UK trade in goods with non-EU countries
is at record monthly levels, with recent increases due to the
high fuel prices we are seeing across the globe. UK trade in
services with EU and non-EU countries continues to show small
increases as covid restrictions on the movement of people ease,
but trade remains below pre-covid levels.
Ireland has seen goods imports from Great Britain drop by more
than a fifth since Brexit. Ireland has also, in that time,
increased its goods exports to GB by more than 20%, and imports
from Northern Ireland to the Republic jumped by more than 64%. Is
it not the case that, by becoming independent, Scots will open
the gate to 27 other markets and that Scotland can access that
bridge to economic prosperity, as trade levels in the Republic
and Northern Ireland are proving to us now?
On this side of the House, we continue to know that the Union is
the strongest way that Scottish businesses can continue to
export. Some 75% of exports are to the rest of the United
Kingdom, and we want to make sure that, as well as trading with
all of us, they have the opportunities our free trade agreements
will make and find that selling their fantastic goods and
services across the world becomes easier. However, we continue to
say that the best way for Scottish businesses to do that is to
stay within the UK.
(Preseli Pembrokeshire)
(Con)
Last week at Expo in Dubai, I was struck by the number of trade
reps and investors from across the Gulf who told us just how much
easier they have found doing business visits to London in recent
months compared with other cities internationally. Does my right
hon. Friend agree with me that such remarks underline just how
important it was for us as a Government, from a trade and
investment perspective, to get right those big decisions about
the vaccine roll-out and relaxing the covid restrictions to give
us a head start as the international trading community recovers
from covid?
My right hon. Friend is absolutely right. The Prime Minister has
taken some incredibly tough decisions, and in doing so has made
sure that our economy has stayed open and our population has
remained safe. We have been world leading not only in vaccine
production, but in distribution, so ensuring that the trade and
enterprise so vital to our constituents and across the world
supports healthy economies and, indeed, makes sure that everybody
is in as good health as possible. It is lovely to hear those
messages. What I hear as I travel around the world is that the UK
is open for business, and we are seeing the benefits of that
across the piece.
(Glenrothes) (SNP)
Purchasing managers index information shows that in December 2020
the United Kingdom was the only economy in the entire western
world to see a fall in exports. Who is responsible for that?
To go back to my earlier point, as we see markets open up and
opportunities for amazing UK businesses to discover not only the
markets some are in already but new markets, the export support
service and the team at the DIT stand ready to support all those
who want to expand and share the UK’s amazing goods and services
with the rest of the world. “Made in the UK, Sold to the World”
is our campaign motto, and that is what we want to support
everybody to share and get out there.
Topical Questions
(Preston) (Lab/Co-op)
T1. If she will make a statement on her departmental
responsibilities.(905125)
The Secretary of State for International Trade ()
The Department’s five-star year 2022 has begun at pace with the
launch of our India free trade agreement negotiations, the
signing of the sovereign investment partnership with Oman,
discussions with Brazil towards an economic trade partnership,
the launch of our new and improved trade show programme, and the
virtual African investment summit taking place today. As I
mentioned earlier, yesterday I met with US Secretary of Commerce
Gina Raimondo to start negotiations with the US on the section
232 tariffs. These have cost the steel industry over £60 million
per year; I am firmly pressing for their express removal and am
confident we can now make fast progress towards this to ensure
that trade works in the interests of all UK businesses and
workers.
Further to my earlier question with regard to US steel tariffs
and section 232, what are the chances of our getting those
tariffs lifted, given that the Prime Minister is playing fast and
loose with security policy on Northern Ireland, particularly
through doing his best to trash the Northern Ireland
protocol?
We will be pushing for a deal that is right for the UK steel
industry and I am confident that the long-standing alliance
between the UK and the US, built on a rich history of shared
values and free and fair trade, will ensure that the negotiating
outcomes are what we need for UK industry. The UK and the US work
together across the piece in so many difficult areas at the
moment and I hope that those in all parts of the House will
continue to give support as we take on some of those challenging
security issues.
(West Bromwich West)
(Con)
T2. With over £2.6 billion-worth of exports, I am sure my right
hon. Friend agrees that the Black Country is, and will remain,
the beating industrial heart of the west midlands. As she goes
out with ministerial colleagues to bat for the Black Country on
the industrial stage, what is she doing to ensure that supply
chain issues in particular are at the forefront of our trade
negotiations, and that businesses such as KJV Furniture in
Oldbury are able to import and export smoothly; and will she
ensure that once again other areas of the world can see the
fantastic wares that are made in the Black Country?(905126)
The Parliamentary Under-Secretary of State for International
Trade ()
My hon. Friend raises an important point. A key challenge facing
the UK and other major exporters is shipping container costs, and
there is ongoing engagement across Government, including the
Department for Business, Energy and Industrial Strategy, the
Competition and Markets Authority and the Department for
Transport, to ensure that we understand the background causes of
price rises and their impacts, such as by contacting the shipping
lines and engaging with international partners where necessary to
address the key issue of supply lines that my hon. Friend
raised.
(Harrow West) (Lab/Co-op)
Given the Government’s underwhelming performance on trade to
date, even the small gains from joining the comprehensive and
progressive agreement for trans-Pacific partnership would be
welcome, but one issue that the previous Secretary of State
always ducked was China’s interest. Given President Xi’s
reaffirmation on Monday of China’s desire to join the CPTPP, can
the Secretary of State clarify whether Britain would have the
right to veto China’s accession?
The hon. Gentleman raises an important point. These issues are
very complex, but what I will say is that we are first in the
queue to join CPTTP, and after that all things are up for
review.
(Truro and Falmouth)
(Con)
T5. The last couple of years have been extremely difficult for
the shell fishermen in Cornwall, include those on the River Fal,
which has one of the most historic and sustainable fisheries in
the world. That said, fishing communities across the UK will
benefit from the £75 million boost to the sector; can my right
hon. Friend the Secretary of State assure me that the Department
will work with the Cornish fishermen benefiting from this
investment and help them further capitalise on it by ensuring
that they are able to play their part in the Government’s “Race
to a Trillion” strategy?(905129)
My hon. Friend raises an important point, particularly for her
constituency, and I can give the assurance that the Government
will continue to work closely with Seafish and the Shellfish
Association of Great Britain to encourage their members to look
at new markets and drive awareness of UK seafood in international
markets. We have a network of trade advisers in the UK and
overseas who can support the sector to trade successfully, and I
am happy to put any of her businesses in contact with them.
(Brentford and Isleworth)
(Lab)
In December, the Government snuck through a change to the UK’s
arms export rules, and charities such as Oxfam have warned that
these changes will lessen transparency over arms exports and
could see UK arms being used against civilians such as those in
Yemen. What steps is the Minister taking to ensure that UK arms
exports are not used to commit breaches of international
humanitarian law?
The Minister for Trade Policy ()
The Government have not “snuck through” such changes. We are very
open and transparent about the policies that sit behind our very
good arms export controls, which are also scrutinised by this
House. The Department is due to meet a number of stakeholders; I
can check whether Oxfam is part of that. We meet regularly to
discuss these issues. We have one of the best arms export regimes
in the world; it is flexible and changes as situations change.
The hon. Lady will know that we recently made some new changes
because of what is happening in parts of the world. She should be
confident in what we are doing on that.
(Burnley) (Con)
T6. The Government will be aware of the global shortage of
semiconductor chips. The impact of that is being felt far more by
SMEs than the largest companies, which can make large purchases
years in advance. What steps are the Government taking to support
those SMEs to import semiconductors so that they can keep
operating? If I write to the Department, will they look at a
specific constituency case of mine?(905130)
My hon. Friend raises what is a vital point in a global economy.
The Government are carrying out a review of the UK’s
international and domestic approach to semiconductor supply
chains. The Department for Digital, Culture, Media and Sport is
leading that review, supported by the Department for
International Trade. We also support growth in the UK
semiconductor sector by driving investment—for example, by
promoting the world-leading compound semiconductor cluster in
south Wales, as part of our high potential opportunities
programme. If my hon. Friend would care to write to the
Department, we will of course take up the constituency issue.
(Aberavon) (Lab)
T3. The European Union secured a comprehensive exemption from the
section 232 steel tariffs way back on 30 October 2021. Here we
are, almost three months later, and talks with the UK Government
are only just starting. To ensure that the talks proceed smoothly
and rapidly, we need to understand the cause of the delay. Does
the Secretary of State agree that the probable cause is the
Government’s shambolic handling of the Northern Ireland protocol?
If she does not think that is the cause, perhaps she will
enlighten the House about what she thinks the cause of the delay
has been.(905127)
As I have outlined today, I am pleased that yesterday we were
able to formally launch our negotiations with the US to find a
solution to the section 232 tariffs, which have been unreasonably
imposed on the UK for a number of years. The EU quantum of steel
was of importance to the US, which wanted to start those
negotiations because the impacts on both sides were great. We are
very pleased that the UK is now able to progress on what will be
a very important impact, and release some of the pressures on our
excellent steel industry.
(West Aberdeenshire and
Kincardine) (Con)
T9. As some of my colleagues have already pointed out, it would
be wrong to say that there is not some nervousness in rural
Scotland about what the deal with Australia will mean. Some of
that is caused by the anti-trade scaremongering on the SNP
Benches, but will the Minister expand on the opportunities for
Scotland as a result of our deal with Australia?(905133)
The UK-Australia free trade agreement could boost Scotland’s
economy by about £120 million. The deal will help boost Scottish
exports by removing tariffs of up to 5% on Scotch whisky and
through additional commitments to release goods from customs
quickly. Scotland’s services firms will also benefit from access
to billions of pounds’ worth of Australian Government contracts.
Staff will be able to travel for work with easier access to
temporary entry visas.
(Chesham and Amersham) (LD)
T4. Can the Secretary of State confirm whether she is still
undertaking discussions with UK trade partners on inserting
clauses on investor-state dispute settlement systems into future
trade deals? There is evidence that they are opaque and could
open the UK to law suits from multinational corporations. Will
she confirm whether she is still pursuing them?(905128)
Every free trade agreement is negotiated in relation to the other
country and we will continue to work with those as we build
these, to look at how we best bring together free trade
agreements that will be beneficial to UK businesses and
consumers.
(Cleethorpes) (Con)
Last Friday, along with a number of local businesses, I took part
in a meeting of the parliamentary export programme for my
constituency businesses. What additional initiatives do Ministers
have to encourage small and medium-sized enterprises, in
particular, to look at and engage in the export market?
I am grateful for my hon. Friend’s support of the parliamentary
export scheme. It is about to be refreshed and relaunched so that
we can provide additional support to any of our parliamentary
colleagues who wish to engage with companies in their
constituency about exports. I ask him to hold fire while we
relaunch it, and he will be one of the first I contact.
(Orkney and Shetland)
(LD)
T7. May I bring the Secretary of State’s attention to the
analysis published recently by the Scotch whisky industry,
showing that even a phased reduction of the 150% tariffs on its
products sold into industry could bring back a £1 billion
increase in exports and something in the region of 1,300 UK jobs?
As she continues with the dialogue with India about a trade deal,
will she give us some commitment that the reduction and
elimination of that tariff would be one of her biggest priorities
in an early harvest agreement? [R](905131)
As I said, the negotiations with our Indian counterparts have
just begun. We will not discuss the details of the negotiations
while they are going on, but I have been very clear with the
Indians and through our consultation process that we will want to
see movement on issues such as high tariffs on some of our iconic
UK products.
(Harrow East) (Con)
My apologies for not being here earlier, Mr Speaker. Clearly, the
start of the talks with our friends in India is extremely welcome
news, particularly for Scotch whisky exporters, who could gain
tremendously. Will my right hon. Friend update the House on the
projected timetable, and will she publish some objectives in
relation to what we are attempting to achieve with our friends in
India?
Following our discussions last week, Minister Goyal and I were
very clear that we want our negotiating teams to crack on and get
a clear picture of the areas that we want to bring together in
our free trade agreement with India. We have set our negotiators
an initial target to see whether we can bring this to a
conclusion at the end of this year or in early 2023.
(Rutherglen and Hamilton
West) (Ind)
British wine traders have expressed concern that the Chancellor’s
reforms to alcohol duty might lead to higher prices and less
choice in wine. What discussions has the Secretary of State had
with her Cabinet colleagues about the impact of these reforms on
industry’s ability to trade effectively?
The Chancellor brought in duty reforms that are focused on
health: the higher the amount of alcohol, the higher the tariff.
Interestingly, as I have been travelling the world, I have
mentioned the policy to other countries, and they see it as a
really intelligent way to ensure that they balance the
opportunities from the healthy management of alcohol drinking and
the opportunities that fantastic producers—such as all of ours in
the UK—have to reach a wider audience while ensuring that people
always drink carefully and wisely.
(Blackpool South) (Con)
Our co-operation with Saudi Arabia on defence and security helps
to maintain hundreds of jobs at BAE Warton on the Fylde coast.
What steps are the Government taking to further develop that
relationship and the opportunities for trade with Saudi
Arabia?
The Parliamentary Under-Secretary of State for International
Trade ( )
We have just finished a consultation with British businesses,
citizens and civil society on their aspirations for a free trade
agreement with the Gulf Co-operation Council, of which Saudi
Arabia is an important part. My hon. Friend knows that that will
provide the opportunity to reduce tariffs and streamline market
access barriers. He will also be aware, from the excellent report
by BAE Systems, that there are well over 500—maybe even 600—jobs
in Blackpool because of the presence of BAE Systems in that part
of our country, which shows the importance of our strategic
exports.
(Na h-Eileanan an
Iar) (SNP)
This Government, as we know, have blundered many times, and now a
lobster or a leg of chicken cannot be sold to any country in the
world without five, eight or 10 bits of paperwork. I am trying to
prevent another blunder.
The Chartered Institute of Patent Attorneys supports the
accession to CPTPP, but cautions that
“we believe that if the UK were to sign up the CPTPP IP chapter
as currently drafted, this could have unintended
consequences”
for our reputation as an international patent leader, for
innovative small and medium-sized enterprises, for UK GDP and for
the UK patent profession. It asks that
“the UK…should take a very firm position and insist on carve outs
for the UK from these provisions of CPTPP.”
Will the Department take up that ask and insist that it
happens?
The hon. Gentleman raises a good point. It is in my diary to meet
him in the next few weeks; I suggest that he brings that paper
with him and we can have a more fruitful discussion.
(Manchester, Gorton) (Lab)
Can the Minister outline how much cotton and how many products to
construct solar panels have been imported into the UK from
Xinjiang in the past year?
I can certainly write to the hon. Gentleman with the information
that our Department and others may hold on the matter. May I
reassure him again that it is welcome that he has raised it today
and that we are taking it very seriously?
(Sedgefield) (Con)
Earlier, I mentioned a company in my patch called Gestamp. The
motor trade is a worldwide business; Gestamp supplies to Jaguar
Land Rover, Nissan, Volvo and all their factories throughout the
world. What is being done to help its research and development
efforts to make sure that it remains a world leader?
I think that a letter is winging its way towards my hon. Friend
about various issues that he has raised with us, which will
outline what we are doing to ensure that we are competitive and
creating the right environment to get inward investment. He will
know that we have a huge focus and push on science and
technology, spearheaded in part by the Under-Secretary of State
for Business, Energy and Industrial Strategy, my hon. Friend the
Member for Mid Norfolk (), as Science Minister. The
points that my hon. Friend the Member for Sedgefield () has raised with my Department
are being listened to and are well made.
(Glenrothes) (SNP)
Yesterday, the permanent secretary of the Department for
International Trade told the Public Accounts Committee that 85%
of post-Brexit trade deals have simply replicated the deals that
we already had with the European Union. Does it really represent
such a resounding success at knocking down trade barriers if 85%
of the barriers that the Government are knocking down are
barriers that they put up in the first place?
A lot of work needed to be done in all areas of Government,
including trade, to roll over legislation to our statute book and
move trade agreements to a new statutory footing. The opportunity
has come for what we can do next. It is not just about the big
economic benefits that we usually discuss in our meetings and
sessions, but about what we can do to help developing nations.
Many of the economic partnership agreements that have taken a
long time to make, for example with countries in Africa, will not
only provide economic benefits to the UK but lift millions of
people out of poverty.
(Motherwell and Wishaw)
(SNP)
Talks on steel and aluminium tariffs have started, but Washington
has still to confirm the apparent virtual plan. The British
economy, instead of becoming global post Brexit, is not. My
constituents at the Dalzell works in Motherwell want to see
progress on the punitive tariffs so that they can sell to the
Americans. The relationship between President Biden and the
current Prime Minister is not particularly rosy, but can the
Secretary of State confirm that whoever is Prime Minister in the
upcoming time, she will ask them to intervene and get this
sorted?
I am thrilled that we were able to launch the negotiations
formally yesterday. I will make sure that I keep in touch with
all across the UK steel industry as we move forward. The US
Secretary of Commerce and I have been clear, through our teams,
that we want to resolve the matter at pace, and that is what we
will be doing.
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