Free Trade Agreement: India Bob Blackman (Harrow East) (Con) 1.
What progress her Department has made on securing a free trade
agreement with India. (901216) The Secretary of State for
International Trade (Anne-Marie Trevelyan) India is a dynamic,
fast-growing trade partner, and a free trade agreement offers the
opportunity to deepen our already strong relationship, which was
worth £24.3 billion in 2021. Round 5 of trade agreement
negotiations began on Monday 18...Request free trial
Free Trade Agreement: India
(Harrow East) (Con)
1. What progress her Department has made on securing a free trade
agreement with India. (901216)
The Secretary of State for International Trade ()
India is a dynamic, fast-growing trade partner, and a free trade
agreement offers the opportunity to deepen our already strong
relationship, which was worth £24.3 billion in 2021. Round 5 of
trade agreement negotiations began on Monday 18 July and will
continue until the end of next week. We have already closed 12
chapters and continue to work hard to reach a balanced and
comprehensive agreement. We are in detailed negotiations and
discussions on texts now and are confident in our progress with
India, as we work towards a comprehensive FTA.
I thank my right hon. Friend for that answer. Clearly, doing a
trade deal with India is complex and difficult. The European
Union, for example, has been trying to do one for 25 years
without success, so I wish her and her team well on negotiations.
Clearly, it will be challenging to achieve it by Diwali, but I
know that she is committed to doing so. Will she set out, for the
benefit of the House, the benefits to the UK and to India of the
free trade deal she is undertaking?
Our priority in talks has always been to address the significant
barriers that businesses face in exporting to India. In the past
decade, UK services exports to India have increased by 60% in
current prices, totalling £3.6 billion in 2021. However, the
reality is that India’s barriers to services trade are still
relatively high compared with those of other trading partners, so
this FTA will provide a great opportunity to address those
barriers and support the UK’s service sector, in particular, to
do business in India’s growing markets.
(Huddersfield)
(Lab/Co-op)
The Secretary of State must know that Huddersfield and West
Yorkshire are the beating heart of the manufacturing sector; so
many firms are good at exporting, and have expertise and a
history of trade with India, but they are still finding huge
barriers to any exporting effort they make. Can her Department
not really step up the action to help, especially for the small
and medium-sized enterprises?
As always, the hon. Member is a champion of businesses in his
constituency. He is exactly right: those barriers to trade are
still difficult, and the free trade agreement brings us the
opportunity to work with India to strip away those market access
barriers. We are listening, obviously, through the consultation
process. On the FTA process, at the beginning of the year we
asked businesses to talk to us and share their own experiences
and the particular areas where they wanted us to negotiate
reductions in barriers. I hope that we are doing that. I would be
very happy to hear directly from the hon. Member’s businesses
whether they have particular areas in mind. We are looking to
reach a broad and comprehensive agreement that will strip away
many of those market access barriers, be they tariff areas around
goods or, indeed, those very many areas of service sector
activity, which will benefit both sides. We have some highly
mutually compatible business opportunities to work on
together.
Trade with the EU
(Dulwich and West Norwood)
(Lab)
2. What steps she plans to take to help increase trade with the
EU. (901218)
(Ealing Central and Acton)
(Lab)
8. What steps she plans to take to help increase trade with the
EU. (901228)
The Parliamentary Under-Secretary of State for International
Trade ()
This Government continue to seek an excellent trading
relationship with our former EU partners, just as we do with
other international markets. Hon. Members will be pleased to note
that goods exported to the EU for May 2022 were over 17% higher
than the 2018 monthly average, so trade here is already
increasing. To increase exports, we need to get more British
businesses exporting, and to do that the Department has
initiatives such as the Export Academy and the export champions
scheme that help to give them the knowledge and practical help
that they need.
Mr Speaker
I welcome the Minister to the Dispatch Box.
Research by the London School of Economics has found a huge drop
in the number of trade relationships between UK businesses and
the EU, with a 30% decrease in the variety of goods sold. That is
a clear indication of the damage that the Government’s Brexit
deal is doing to smaller businesses, which cannot afford the
increased costs of administration. Will the Minister detail how
many small and medium-sized enterprises applied to the Brexit
support fund and how many were successful? May I also ask the
Minister, on behalf of the small and medium-sized businesses in
my constituency, where is the urgency to find solutions to enable
SMEs to trade with our EU neighbours once again?
Thank you, Mr Speaker, for your welcome. I also thank the hon.
Member for her question. Of course, she did not support the EU
trade agreement that this Government put in place, so it is quite
rich for her now to turn around and say that we are not
increasing exports. In my previous answer, I talked about the
many interventions that this Government are making, including
internationalisation and the Brexit support fund of £38 million
that is going to small and medium-sized enterprises to help them
overcome the barriers that the protectionist EU puts in
place.
Dr Huq
I, too, welcome the Minister to what I hope is a long and
fruitful career. My question is about services, not goods. Our
biggest export is the English language—it is the lingua franca of
the world, isn’t it?—but the language schools that teach
teenagers over the summer months are collapsing at quite a scary
rate. Only seven out of 20 remain in Hastings, and there are
three in Ealing, but before 2019 there were five. Will the
Minister—whoever it is at any particular time—and their officials
sit down with me and the trade bodies? They say that there has
been an 80% drop in business, which is now going to Malta and
Ireland. We can do better than this in global Britain. Can we sit
down to talk about removing those things for this once
lucrative—
Mr Speaker
Order. Come on—you have to get to the question eventually.
Education is indeed one of the great opportunities, and the
lingua franca of English is one of the benefits as we seek to do
trade deals not just with our friends in Europe but across the
whole world. I am very happy to talk to my colleagues in the
Department for Education and between us respond to the hon.
Lady.
(Watford) (Con)
As we look to the future, does my hon. Friend agree that it goes
beyond the EU, as do the opportunities for trade around the
world? From my constituency of Watford to the rest of the world,
we have the opportunity to build industry and opportunity for
everyone.
My hon. Friend is absolutely right. He is a champion of small
business in his constituency. That is why it is so important
that, as we seek to do trade deals such as the comprehensive and
progressive trans-Pacific partnership and those with the Gulf,
India, Canada and many more, we have SME chapters and SME
preference within them.
Mr Speaker
I call the shadow Secretary of State, .
(Torfaen) (Lab)
Thank you, Mr Speaker. I join you in wishing Penny and Isabel
well for the future. I also welcome the Minister to the Dispatch
Box.
I ask this question in place of my hon. Friend the Member for
Harrow West (), who has covid. I am sure
that the whole House will wish him a swift recovery. The tonnage
of UK trade in food, feed and drink with both the EU and non-EU
countries has fallen and has been steadily falling since 2019.
Looking back at the record of this Government over the past three
years, does the Minister accept that they have failed to make
Brexit work?
I am sure Government Members wish the hon. Member for Harrow West
() a speedy recovery as
well.
Tonnage is, of course, only one measure. I note that, for the
year to March, the value of British exports actually increased.
[Interruption.] It will be a combination of growing markets, a
growing number of exporters and a greater ability of exporters to
obtain the price for their exports. That is what we on the
Conservative Benches are focused on.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
I, too, welcome the Minister to his place.
Thanks to Westminster’s disastrous hostile post-Brexit
immigration policy, our lack of workers means that Scottish
exports of fruit and vegetables to the European Union are down by
53% and of dairy and eggs by 33%. Given that both candidates for
Prime Minister as well as, indeed, the Labour Leader have stated
that they will not do anything about that, is it not time that
the UK Government stood aside and gave the powers over
immigration to the Scottish Government so that we can protect
these businesses and their Scottish trade?
I am very happy to talk to my colleagues in the Department for
Work and Pensions about the access to skilled workers, but I hope
the hon. Gentleman will join me in thanking the Department’s
Edinburgh-based team for its dedication to promoting the work of
exporters from Scotland.
That answer will not give any comfort to those growers who are
struggling at the moment. Of course, trade goes both ways, and
our importing businesses are being hammered by long delays and
increased costs. A single invoice shared with me by a small
importer in Inverness, Oil and Vinegar, showed many new charges
from the UK Government, running to many hundreds of pounds of
additional costs. It contained separate lines for duty, admin
fees and import custom fees, and the largest of all the costs was
a curiously titled “Customs Add”. Does the Minister know how much
the Treasury is raking in from these schemes? It must be vast
sums. Will it call for any of it to be returned to those
struggling businesses?
I share the hon. Gentleman’s pain in hearing of the friction
presented to British firms in seeking to do trade
internationally. That is why Scotland remaining in this great
Union is a great advantage to British businesses that want a
single one-stop shop. If he has not already availed himself of
the Export Support Service’s helpline, I would be very happy to
connect his businesses to that.
Free Trade Agreements: Workers Rights
(Kingston upon Hull North)
(Lab)
3. What steps she is taking to ensure that workers’ rights are
maintained in all UK free trade agreements. (901222)
(Newcastle upon Tyne Central) (Lab)
9. What steps she is taking to ensure that workers’ rights are
maintained in all UK free trade agreements. (901230)
The Parliamentary Under-Secretary of State for International
Trade ( )
Her Majesty’s Government have been clear that there will be no
reduction in British labour protections in signing up to new free
trade deals. Our new agreements with Australia and New Zealand
demonstrate that. We engage extensively with trade unions to make
sure that the interests of workers are fully considered in our
policy. My right hon. Friend the Secretary of State has hosted
trade unions, including the TUC, at the recent UK-US trade
dialogues.
With the greatest of respect to the Minister, given the contrasts
and contradictions in the Government’s approach around things
such as the P&O ferry scandal and the recent events with the
rail industry, can he tell us what guarantee he can provide to
the House that the Government will not sail down the river the
rights of working people in this country?
Mr Jayawardena
I would point to precedent. The United Kingdom has ratified all
eight of the fundamental International Labour Organisation
conventions. We continue to encourage our partners to do the same
around the world. The agreements with Australia and New Zealand,
as I said earlier, reaffirm our commitment to comply with the
core international labour obligations that we are party to.
When I visited Washington DC with the British-American
Parliamentary Group, I was told in no uncertain terms—I know that
the Secretary of State had the same message at the Baltimore
talks—that there could be no trade agreement with the United
States that did not, first, protect workers’ rights and also
reflect the workers’ voice. Will the Minister set out the
detailed process by which he will ensure that British workers’
voices will shape the prospective deal with the United States and
how those voices will be reflected throughout international
discussions? I know that the Secretary of State’s predecessor met
the American trade union movement. I think it is really important
that British workers’ voices are reflected consistently in deals
as well.
Mr Jayawardena
I thank the hon. Lady for the question and I can confirm that my
right hon. Friend the Secretary of State has met the same bodies.
We engage extensively with trade unions to make sure that the
interests of workers are fully consulted in our trade policy. We
have a trade union advisory group, the TUC is a part of our
strategic trade advisory group and, of course, this Conservative
side of the House represents the views of hard-working people
across the country.
(Brentford and Isleworth)
(Lab)
The Government are currently negotiating a free trade agreement
with the Gulf Cooperation Council. The majority of the Gulf
countries do not meet basic international standards for workers’
rights, such as the right to unionise. Why on earth, therefore,
did the Government drop human rights and the rule of law from
their stated negotiation objectives?
Mr Jayawardena
We decide on future deals based on the potential benefit to our
economy, economic trends and whether we can negotiate a quality
agreement supporting the British people and the British national
interest. Closer engagement is how we increase our influence
around the world and support higher standards, including with
countries that might have rights that differ from ours. The
United Kingdom will not compromise on our high labour standards,
and we will continue to work hard to maintain those standards
through our free trade agreement programme.
UK Arms Exports: Transparency
(Manchester, Withington)
(Lab)
4. What assessment she has made of the adequacy of the
transparency requirements for UK arms exports. (901223)
(South Shields) (Lab)
16. What assessment she has made of the adequacy of the
transparency requirements for UK arms exports. (901238)
The Parliamentary Under-Secretary of State for International
Trade ( )
We publish more licensing data than any other country. Yesterday,
we published our annual report covering 2021. The data reveal
that of 4,234 licensing decisions on standard individual export
licences, 96.1% were issued, 1.5% were refused and, because of
our sanctions on Russia and Belarus, 2.4% were revoked. The
Government remain committed to openness on strategic export
licensing to provide Parliament with the means to hold us to
account.
In February, Her Majesty’s Revenue and Customs issued its biggest
ever fine of £2.7 million for breach of the arms exports
controls. HMRC has refused to publish any details so we do not
know who was fined, the name of the company, the military goods
exported or where they ended up. How does the Minister expect us
to have any faith or confidence in our arms export controls when
they are so shrouded in secrecy?
Mr Jayawardena
The hon. Gentleman refers to HMRC which does not fall under my
Department, but I will ensure that the relevant Minister provides
him with an answer.
Mrs Lewell-Buck
I heard the Minister’s response to my hon. Friend the Member for
Manchester, Withington (), but the reality is that the
changes to licensing criteria have reduced transparency and
accountability. Can the Minister explain the rationale for
changing Government guidance on granting licences from refusing a
licence if there is a clear risk that items may be used in
violation of international humanitarian law to if the Government
determine there is a clear risk?
Mr Jayawardena
As we have left the European Union, we have decided that it is
right to review many aspects of our system. This is one part, and
we have made the wording of the criteria clearer than before to
provide certainty to exporters and others.
Export of UK Services
(Coatbridge, Chryston and
Bellshill) (SNP)
5. What recent assessment her Department has made of trends in
the level of exports of UK services. (901225)
The Parliamentary Under-Secretary of State for International
Trade ()
The Government are committed to promoting the UK’s world leading
strengths in services. Latest figures published by the Office for
National Statistics show that service exports were £316 billion
in the 12 months to the end of May, an increase of 7% on the
previous 12 months. The Government’s export strategy, published
in November 2021 by the Secretary of State, recognises the
importance of services and commits the Government to working with
the sector in its implementation. That includes working with the
CBI-led Trade in Services Council to understand and promote trade
in services.
The Centre for Economic Policy Research has calculated that since
Brexit there has been a 6% drop in service exports to the EU.
Services are Scotland’s biggest export, so what, if anything, is
the Department doing to stabilise service exports, never mind
grow them? There is a real fear that the Government have no real
plan for progress or change.
As we recover, we expect to see a continued increase in services
exports. The hon. Member is right that Scotland is a significant
exporter of services—worth more than £21 billion in
2020-21—making it the third largest exporting region in the UK. I
wish all of our Scottish service exporters well, and it is the
work of this Department to try to continue to grow that.
Barriers to Global Trade
(North Devon) (Con)
6. What steps her Department has taken to help reduce barriers to
global trade for British businesses. (901226)
The Parliamentary Under-Secretary of State for International
Trade ( )
Removing trade barriers boosts our exports to new and familiar
markets around the world. We have resolved 396 barriers around
the world in the past two years, and just 45 of the 192 barriers
we resolved in the last financial year could be worth around £5
billion to businesses across our country. If we can remove the
next 100 trade barriers on our most wanted list, it has the
potential to deliver export opportunities for British businesses
worth around £20 billion. As one example, last month we removed
barriers in Mongolia that prevented the export of British poultry
and fish, opening up a market worth £10 million.
Many of my North Devon farmers and the National Farmers Union are
concerned about food imports, but given the quality of our
British food and drink, and the vast global market for our
superior produce, what support has my hon. Friend’s Department
put in place to promote and help farmers export around the
world?
Mr Jayawardena
My hon. Friend is absolutely right. We see real potential for
British food and drink exports to grow, particularly in
high-growth markets where the middle classes are
expanding—notably the Asia- Pacific region. We work closely with
farming and food organisations, such as the NFU, to deliver a
practical range of export support for farmers and food
businesses. We are removing trade barriers globally, as I have
referenced, including the ban on British beef in the Philippines,
opening up a market worth £375 million a year to British farmers.
We are expanding our overseas network of more than 100
agriculture, food and drink trade advisers to include eight new
dedicated attachés, who will focus on unlocking trade barriers
for our great British farmers.
(Rhondda) (Lab)
What a load of bollards the Government are putting in the way of
British trade with other parts of the world, and in particular
with the European Union. Historically, loads of British
orchestras, theatre groups, ballet groups and bands have toured
easily across the whole of the European Union, and endless
Committees have been told by Ministers that it is all being
sorted out. The truth is that they are now prevented from taking
that British export across the European Union. When is any one of
these Ministers actually going to do something and get it
sorted?
Mr Jayawardena
I thank the hon. Gentleman for his question, which he puts in his
usual way. The truth is that we continue to bang the drum for
British exports of all kinds around the world, and we will
continue to do that with the EU and beyond.
Exports to the EU: Devolved Nations
(Angus) (SNP)
7. What steps she is taking to help increase exports from the
devolved nations to the EU. (901227)
(North Ayrshire and Arran)
(SNP)
13. What steps she is taking to help increase exports from the
devolved nations to the EU. (901235)
The Parliamentary Under-Secretary of State for International
Trade ()
The Department is delivering prosperity through trade and
investment to all parts of the United Kingdom. In addition to
UK-wide initiatives such as the UK Export Academy for smaller
enterprises, we have established teams in Edinburgh, Cardiff and
Belfast, and I hope in my role to be visiting them over the
coming months. Those teams will bring business support closer to
businesses in the nations and work in partnership with devolved
Administrations.
I thank the Minister for his answer, but it is clear to farmers
across Scotland, nowhere more so than in Angus, that Brexit has
made a great many things harder and more expensive, made nothing
any easier and created no more opportunity whatever.
[Interruption.] That will be the same in Banff and Buchan, by the
way. With regard to Australia, and without reference to whisky or
salmon, what dedicated analysis has his Department undertaken
that evidences net increases for Scotch beef and lamb exports to
Australia in quantitative, not rhetorical terms? If he cannot
say, will he write to me with that data, please?
I note that Invest in Angus, based in the hon. Member’s
constituency, estimates that food and drink is worth more than
£200 million to the Angus domestic economy. We are supporting
farmers and food producers across Scotland, including in Angus,
and that is one of the reasons why we are seeking opportunities
for greater agricultural exports through the comprehensive and
progressive agreement for trans-Pacific partnership and the
Indian trade deal, and with the Gulf.
I am sure that James Withers from Scotland Food & Drink will
be interested to hear what the Minister has said, because James
has said:
“Brexit has made absolutely nothing better and it’s made a lot of
things worse.”
Does the Minister share my concern—I hope he does—that the
candidates in the current Tory leadership race are simply not
being up front about the mess we are in because of Brexit? They
need to listen carefully to businesses and make exporting easier,
instead of pretending that Brexit is working for business in
Scotland and across the UK, because clearly it is not.
I look forward to meeting Scotland Food & Drink and hearing
about the positive opportunities. I hope that it is not overly
infected by the hon. Lady’s pessimism about the prospects for
this great Union outside the European Union.
(Brecon and Radnorshire)
(Con)
Welsh food and drink exports have no better showcase than the
Royal Welsh show—the largest agricultural show in Europe—which
concludes in my constituency today. It has been fantastic to see
visitors from right around the world back on the showground. I
want to pay particular tribute to Steve Hughson, who is stepping
down as the show’s chief executive after 10 very successful
years. Does my hon. Friend agree that agricultural shows are
fantastically helpful for boosting our exports around the
world?
I thank my hon. Friend for promoting the great opportunities for
British food and drink. The Royal Welsh show is a great
institution and I am sure that everyone on the Government side of
the House thanks Steve Hughson for his endeavours.
SMEs: Trade with the EU
(Bath) (LD)
11. What steps she is taking with Cabinet colleagues to support
small and medium-sized enterprises trading with the
EU.(901232)
The Parliamentary Under-Secretary of State for International
Trade ()
Small and medium-sized businesses make up a huge part of
Britain’s economy, accounting for over 60% of employment and more
than half of all turnover from the UK private sector. The
Department for International Trade is doing all it can to help
businesses overcome the barriers that the protectionist bloc of
the European Union now imposes when consumers seek to buy goods
from elsewhere in the world.
The only thing that Brexit has brought for many small businesses
in Bath is increased costs, paperwork and border delays, as has
been confirmed by the Public Accounts Committee—more barriers,
not less. Small businesses are the lifeblood of our economy. Will
the Government please reintroduce the SME Brexit support fund,
with a simplified application process and a significantly
expanded remit?
I am proud of the endeavours of my colleagues and those in local
enterprise partnerships up and down the UK in disbursing the £38
million internationalisation fund to support businesses as we go
through some of the changes that result from leaving the European
Union and seek opportunities elsewhere in the world. I will of
course undertake to look at any way we can make it simpler for
small businesses, in particular, to engage with the
Department.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(Lichfield) (Con)
12. What progress her Department has made on securing UK
membership of the comprehensive and progressive agreement for
trans-Pacific partnership.(901233)
The Minister for Trade Policy ()
The UK is well on the way to joining CPTPP, one of the largest
trading blocs in the world. We are now in market access
negotiations, which are the final phase of the accession
process.
May I first say what a great pleasure it is to ask my right hon.
Friend—and she will always be my friend—this question? Will she
say—[Interruption.] Sorry, that was an emotional moment, Mr
Speaker; I hope you will forgive me. Will she outline the real
advantages that CPT—whatever the bloody thing is
called—[Interruption.] Whatever the ruddy thing is called. Will
should outline the benefits of membership, and will she perhaps
also say what sort of difference it will make to our trading
relationship with the United States, which is also a member?
I thank my very dear hon. Friend for that question. He is right
to point to the benefits of joining this trading bloc: 99.9% of
all UK goods are eligible for tariff-free access, it will
increase wages in this country, and obviously it will help our
relationships with other nations outside the bloc. The UK moving
to the accession process will encourage and strengthen other
like-minded free-trade nations around the world to co-operate and
do more together, and to reform the World Trade Organisation.
(Strangford) (DUP)
I welcome the Minister’s answer. If the United Kingdom becomes
part of this bloc, will the Minister outline what trading
advantages will come directly to Northern Ireland and its
businesses? We obviously want to gain from it as well.
Those very same benefits will also apply to Northern Ireland, and
the hon. Gentleman will know that we are providing extra support
to help with the particular export opportunities, including for
services, that are so strong in Northern Ireland. We are
determined not only with this accession, but with the other FTAs
we are doing, that all businesses can benefit, because that is
obviously our end goal.
Dame (South Northamptonshire)
(Con)
I pay tribute to my right hon. Friend for a fantastic, brave,
clean campaign for the leadership of the Conservative party and
to be Prime Minister.
As a passionate Brexiteer, does my right hon. Friend agree that
being a force for good in the world for free trade is an
absolutely honourable goal and one that the UK should promote at
every opportunity?
I thank my right hon. Friend. I am amazed to find myself here
this morning given my reported work ethic, but here I am.
My right hon. Friend is absolutely right that the UK, a G7
nation, leaving the regulatory orbit of the EU is an
international event. It gives us a huge opportunity, alongside
nations like the United States, to set out our view of the world
and of capitalism and to fight for the things we believe in.
(Rutherglen and Hamilton
West) (Ind)
Environmental campaigners have raised concerns that joining the
CPTPP would put our deforestation commitments at risk because it
drops generic trade tariffs. What assurances can the Minister
provide that our trade deals will not put our environmental
commitments at risk?
I would point to the forestry programmes that this nation has
funded—some more than 30 years old—in parts of the world that are
covered by this trading bloc. This country has an important
history under successive Governments of protecting not only our
own environment but that of other nations. I ask the hon. Lady to
point those programmes out to any of her constituents who are
concerned.
Mr Speaker
I call the shadow Minister, .
(Brentford and Isleworth)
(Lab)
From swerving eight invitations to attend the International Trade
Committee to avoiding bringing a debate with a vote to this
Chamber before ratification, we have seen a truly shameless
attempt from the Department for International Trade to dodge to
any form of scrutiny of the trade deal with Australia. With the
UK now negotiating membership of the CPTPP, I have a simple
question: will the Minister promise that this House will be
granted a full and timely debate before any deal is ratified—yes
or no?
I will ask my right hon. Friend the Secretary of State to set out
any parliamentary business and timetable for any future trade
agreements. We have clearly committed to a particular process.
For my part, every time the International Trade Committee or
other body of this House has asked me to go before it, I have.
That is the attitude of the ministerial team, and we will
continue to do that.
Australia and New Zealand FTAs: UK Food Sector
(Bristol East) (Lab)
14. What assessment she has made with Cabinet colleagues of the
impact of the Australia and New Zealand free trade agreements on
employment in the UK food sector. (901236)
The Minister for Trade Policy ()
The trade deals with Australia and New Zealand are expected to
increase bilateral trade by 53% and 59% respectively in the long
run.
It has been revealed that when the Foreign Secretary was
Secretary of State for International Trade she ignored advice
from her officials that the Australia and New Zealand trade
agreements would shrink our food and farming sectors. I think we
can all agree that that is a disgrace—[Interruption.] I am glad
someone got the joke. The food and farming sectors are already
hurting due to severe labour shortages and rising costs, and
these rushed trade agreements could be the final nail in the
coffin. If the Foreign Secretary cannot be trusted to do the
right thing for farmers, can she be trusted to run the
country?
If the hon. Lady would like to write with the specific details, I
am sure the Department will be able to provide a full answer to
her assertions. The economic modelling was based on full
employment, which does not reflect the change in employment
between sectors and, critically, does not estimate jobs lost or
gained in any sector. However, if she writes with the specific
details, I am sure we can address that for her.
UK Exports
(Blaydon) (Lab)
15. What steps she is taking to help increase the (a) volume and
(b) reach of UK exports. (901237)
The Parliamentary Under-Secretary of State for International
Trade ()
Increasing the volume and reach of British exports is at the
heart of the Department’s export strategy. It includes a
comprehensive set of support for exporters, combined with seeking
trade deals in the areas of greatest opportunity
internationally.
Tourism to the UK is our third-largest service export. I am sure
the Minister, or at least the Secretary of State, will agree that
the north-east is a fantastic place to visit and that we want to
encourage visitors. In September 2020, the Government ended the
VAT retail export scheme and the VAT shopping airside sales
concession for airports, such as Newcastle airport. With the
majority of visits including shopping as part of the trip,
including shopping in Newcastle Metrocentre and, no doubt,
Berwick, what discussions is the Minister having with the
Treasury on that anomaly?
I assure the hon. Lady that it is not just the Secretary of State
but the Exports Minister who agrees about the potential of the
tourism economy. We on the Government Benches will do everything
we can to make the most of that opportunity, just as we are with
freeports, which we are able to establish by being outside the
EU. I note that one of those freeports is in the north-east.
(Sedgefield) (Con)
I welcome the Exports Minister to his place. I hope he will join
his Front-Bench colleagues, both past and present, who have on
many occasions come to Sedgefield to visit our outstanding export
businesses. At last week’s Great Yorkshire show, I met Billy
Maughan, one of my local farmers, and other members of the
National Farmers Union, who talked to me about the opportunities
from deals such as the India deal. It would be great if he could
meet them to explore those opportunities further.
My hon. Friend is a doughty champion for all sorts of businesses
in Sedgefield, including his local farmer. I would be very happy
to arrange to meet him and Billy and continue what is clearly a
tradition.
Mr Speaker
I call the shadow Minister.
(Brentford and Isleworth)
(Lab)
Thank you, Mr Speaker. I am asking this question on behalf of my
hon. Friend the Member for Llanelli (Dame ), who is away on parliamentary business.
There is a concern among businesses that unlike its predecessor,
the trade access programme, the current trade show programme will
support a company only if it is exhibiting for the first time or
venturing into new markets. We all know that marketing for export
requires repeated efforts. There is evidence that there is now a
drop in the number of UK exhibitors in some sectors, just when
the Government are struggling to stimulate growth in the UK
economy. Will the Minister now listen to businesses hoping to
export, make the scheme more generous and widen the access
criteria to allow businesses to benefit from the support by
attending more than once?
As we seek to get more businesses exporting, the first step is
clearly often the hardest, so it seems thoroughly reasonable to
put the highest amount of support into helping businesses make
that first step outside the UK. The trade show programme supports
over 128 different overseas trade shows across 28 different
markets. I will listen to the hon. Lady, and I have been meeting
business organisations in my first few days in this role. We will
make sure that the trade show programme, which is a great example
of the Department supporting British businesses, remains fully
supported.
Free Trade Agreements: Scrutiny
(Orkney and Shetland)
(LD)
17. What assessment her Department has made of the adequacy of
scrutiny mechanisms for future UK free trade agreements.
(901239)
The Secretary of State for International Trade ()
The Government are committed to effective scrutiny of trade
agreements. We have put in place enhanced transparency and
scrutiny arrangements for every stage of FTA negotiations. That
includes publishing our objectives prior to talks, providing
additional time for scrutiny at the end of the process and
putting in place the independent Trade and Agriculture Commission
to report on new agreements. We are delivering on those
agreements. The Australia FTA has been available for scrutiny for
seven months, enabling three Select Committees to take evidence
and to report on the agreement prior to ratification.
Mr Carmichael
We all know what Government undertakings in relation to trade
agreements are worth, and it is not an awful lot. If the
Secretary of State does not believe me, she can ask the farmers
and crofters in my constituency. Is the breach of the undertaking
on the trade agreement with Australia to be a one-off, or is it
the start of a course of conduct?
As I set out, we have followed a broad and open process. There is
no breach of any situation such as the right hon. Member
suggests. The arrangements in place are robust. We want to make
sure that as we go through the process—there will be enabling
legislation for the Australia and New Zealand trade deals in the
autumn—there will be an opportunity for colleagues who wish to
raise issues. We know that this process is effective. I talk to
fellow Trade Ministers around the world who work with us and it
is interesting that they consider our process to be very robust
and very inclusive, both at a parliamentary level and with the
business community.
Topical Questions
(Banff and Buchan) (Con)
T1. If she will make a statement on her departmental
responsibilities.(901206)
The Secretary of State for International Trade ()
Our exports strategy, coupled with our trade, investment and
foreign policy, are a potent combination. For our brilliant UK
exporters to reach the people and places where they can be most
effective, we need to be able to build closer relationships
around the globe, so my Department has launched our
Government-to-Government capability. We can now bring industry
experience and UK support to provide tailor-made solutions around
the world. G2G is a powerful new tool for the UK. It better
connects our prosperity, trade and diplomacy agendas and opens
exciting new possibilities for our businesses. We are working
closely with our Ukrainian counterparts to get UK businesses
delivering crucial repairs to bridges, modular homes and railways
before the winter sets in. New tools such as our G2G capability
will allow us to achieve more in Ukraine and globally, ensuring
that UK trade acts as a force for good in the world.
We have heard today about the value of agricultural shows across
our United Kingdom, not least in my constituency where we had the
New Deer show last weekend and we have the Turriff show, the
largest two-day agricultural show in Scotland, at the end of the
month. They provide a huge opportunity to showcase the wonderful
Scottish food and drink that we have to offer. Will my right hon.
Friend confirm what DIT support is available directly to the
fabulous Scottish food and drink producers, and what
conversations she has had with the Scottish Government to make
sure that that support is made directly available to those
producers?
We are indeed hearing of the wonderful shows that go on across
the UK through our summer months and I commend all Members to
visit some if they can. Speaking as a north-east MP who
occasionally pops across the border to enjoy some Scottish
hospitality, the Scottish shows are as good as any others.
The DIT Scotland team are now based in Edinburgh; we established
the new office last year. We have trade and investment expertise
there dedicated to supporting Scotland’s businesses to grow
through their exporting efforts. We also work closely with the
Scottish Government to ensure that all businesses in Scotland
have access to DIT support and the full reach of the UK’s global
network, including what has been set out by the new Minister
responsible for exports—the Under-Secretary of State for
International Trade, my hon. Friend the Member for Arundel and
South Downs ().
Mr Speaker
Never forget the Royal Lancashire agricultural show. I call the
shadow Secretary of State.
(Torfaen) (Lab)
We Opposition Members have long argued that the Government are
not doing enough to support exporters. It is now clear that the
former Minister, the hon. Member for Finchley and Golders Green
(), absolutely agrees. He argued
that the trade access programme is underfunded and said of it,
“We support too few shows, we don’t send enough business, our
pavilions are often decent but overshadowed by bigger and better
ones from our competitors.” He is absolutely right, is he
not?
It was a pleasure to have the former Minister, my hon. Friend the
Member for Finchley and Golders Green (), in the team; he has been a
champion for growing our new tools. Brexit gave us opportunities
to own our trade policy and to start to really champion and talk
to our businesses about where they can find opportunities across
the globe, whether for goods or services. We have a fantastic
suite of tools in the export strategy, which we launched in
November last year, and we can now really push on with that. As
with everything, perhaps Labour Members can tell me where I can
rapidly find a great deal more cash to make these measures much
more effective. In the meantime, we have put together a fantastic
fund that we will continue to use to encourage our businesses to
trade.
Mr Speaker
Order. These are topical questions, not “War and Peace”
questions. .
The truth is that the Government have fallen behind woefully on
their manifesto commitment to have 80% of UK trade covered by
free trade agreements by the end of this year, and there is no
comprehensive US trade deal in sight. Something has been going
severely wrong. I welcome back the Minister for Trade Policy, the
right hon. Member for Portsmouth North (), after her efforts in the
Tory leadership contest, but the Secretary of State is far less
complimentary about the right hon. Member’s efforts in the
Department. She said:
“There have been a number of times when she hasn’t been
available, which would have been useful, and other ministers have
picked up the pieces.”
Mr Speaker—[Interruption.] Conservative Members shout “Shameful”
at me, but these are the Conservatives’ words about each other,
not my words. The reality is that it is the British economy that
has been suffering. Our projected growth is the lowest in the G7
apart from sanctioned Russia. Is not the truth that trade policy
is yet another Tory failure?
Mr Speaker
Order. These are topicals. Topicals are meant to let those people
who did not get in earlier ask a question. They are about Back
Benchers, not about Front Benchers indulging themselves at the
expense of others. Secretary of State—briefly.
I have a fantastic team of Ministers, which is exactly why we are
able to do all that we can to make sure that our UK businesses
have access to UK Government support to get their fantastic goods
and services out across the world. We are rolling out the FTA
programme at incredible pace by the rest of the world’s
standards, which we are fêted for, and we will continue to do
that with the comprehensive and progressive agreement for
trans-Pacific partnership, India, the Gulf states, Switzerland
and Israel—all ongoing at the moment.
(Aylesbury) (Con)
T5. My constituency of Aylesbury has many brilliant businesses
exporting their goods and services around the world. One example
is Sterling Thermal Technology, which I visited recently and
which manufactures bespoke heat exchangers. Many more would like
to follow suit, so how can the Department help them to reap the
benefits of Brexit and our new trade deals?(901213)
The Parliamentary Under-Secretary of State for International
Trade ()
I congratulate my hon. Friend, who has a strong reputation on the
Conservative Benches as a champion of the many excellent
businesses in his constituency, including Sterling Thermal
Technology, whose products are not just sold around the world,
contributing to the path to net zero, but used, I note, in our
own Hinkley Point C. One of the benefits of leaving the European
Union is that we can now tailor trade deals to suit the needs of
British businesses as well as prioritising the markets that are
of most interest to exporters.
(Newport East) (Lab)
T2. The Trade Remedies Authority has bizarrely recommended the
dropping of anti-dumping duties on Chinese reinforcing steel bar,
a move that will undermine UK manufacturers of the product and
the whole industry. Will the Secretary of State call that in for
investigation?(901208)
The opportunity for the TRA, as our independent adviser, to look
at these issues is one that we have great respect for. As Members
across the House will understand, we await its decision and we
will look at that in due course.
(Cleethorpes) (Con)
The seafood processing sector based in my constituency and
neighbouring Grimsby is anxious to increase its exports. Will the
appropriate Minister meet me and representatives of the industry
so we can push forward with a new initiative?
I will be very happy to meet my hon. Friend’s constituents.
(Bath) (LD)
T3. Only one in 10 British firms trades overseas, and exports are
falling. Many of my Bath businesses have suffered significantly
as a result. What steps is the Department taking to increase
exports with the EU, our closest neighbour and, in the past, our
biggest trading partner?(901209)
I am sorry to hear that the exports of the hon. Lady’s local
businesses are falling. That is not the general experience in the
UK; the value of exports was up 9% in the 12 months to the end of
March. If she would like, I will write to her with the
comprehensive set of measures that I hope she and other hon.
Members will take the summer months to promote to small
businesses in their constituencies.
(Rutland and Melton)
(Con)
I have always been struck by the quiet diligence with which the
Minister for Trade Policy, my right hon. Friend the Member for
Portsmouth North (), does her job. Can she
please update me on progress on signing individual deals with US
states, which my farmers in Rutland and Melton are particularly
interested in?
The Minister for Trade Policy ()
This week we have continued our negotiations with Utah;
yesterday, we also signed the second state-level memorandum of
understanding with North Carolina, which will be based on green
growth. We are currently negotiating with half of all US states.
The first eight deals that we will sign will cover 20% of the US
economy and that will open up procurement, enable mutual
recognition of qualifications, and enable British businesses to
take a larger share of exports of both goods and services.
(Chesham and Amersham) (LD)
T4. There was cross-party agreement during the urgent question
earlier this week that Parliament has not been given the
opportunity to properly scrutinise, debate or vote on the
Australia trade deal, despite assurances from the Government that
time would be made for debate. I heard the Secretary of State’s
response to my right hon. Friend the Member for Orkney and
Shetland (Mr Carmichael). What assurances can she give that
future trade agreements will make it to the Floor of the House
for debate and a vote before they are ratified?(901212)
As I set out earlier, we have a robust process of transparency
and we will continue to follow it as we bring more ratified free
trade agreements to the House in due course.
(East Worthing and Shoreham) (Con)
Topically, the Government have announced yet another deal with
the American states, in no small part due to the allegedly
“work-shy” efforts of the Minister for Trade Policy, my right
hon. Friend the Member for Portsmouth North (). Think what she could
achieve if her focus was actually on the job!
The economies of many of these American states are larger than
those of European countries. Texas is the 12th largest economy in
the world. Can my right hon. Friend give us a cumulative total of
the sort of economies that we are dealing with in these trade
deals and that are likely to be signing up over the next few
months? I think that total is considerable, thanks to her
efforts.
States such as California and Texas are super-economies: if they
were nations, they would be the seventh and eighth largest
economies in the world. We hope that Texas will be in the first
eight deals that we sign. In addition to the potential for their
economies and ours, this is also about bringing together smart
people, money and ideas to solve problems that we are all
grappling with. Texas in particular is doing a huge amount on
fintech blockchain; the synergy between what it is doing and the
innovation in the City of London could be really special.
(City of Chester)
(Lab)
Small businesses in my constituency wanting to export to the
European Union tell me that they have to fill in customs
declarations of up to 70 pages. Why are the Government putting
such barriers in the way of small business exports?
It is not at all the intention of the Government to put barriers
in place; this Government are about knocking down barriers to
export and unleashing the potential of small businesses across
the United Kingdom to make the most of the opportunities not just
in the European Union but in the rest of the world, as we have
heard from Government Members.
(Harrow East) (Con)
Recently, my right hon. Friend the Secretary of State announced
enhanced free trade deal negotiations with our close allies and
friends in the state of Israel. Will she set out for the benefit
of the House the aims of those negotiations and what the benefits
to the UK will be?
The Parliamentary Under-Secretary of State for International
Trade ( )
I thank my hon. Friend for his diligence in championing the
opportunities from free trade with Israel and many other
countries around the world, including India. As two like-minded
partners with expertise in areas such as tech and innovation, we
are very confident that we can agree an ambitious deal that will
complement both economies and showcase our leading businesses,
growing our trade even further than we already have today.
(Edinburgh North and Leith)
(SNP)
I was interested to learn from the Minister about the close
relationship that Department for International Trade officials
apparently enjoy with the Scottish Government—something that I
suspect will be news to Scottish Ministers.
The Lords report on the Australia-UK trade deal criticised the
fact that, despite the heavy impact of the deal on the food and
drink sectors in the devolved nations, those nations have been
shut out of negotiating the terms of that deal and no doubt
future ones. Will the devolved nations be consulted from the
outset and throughout negotiations during future trade deals, and
will Ministers make Parliament aware of their views?
We have regular and ongoing discussions and a good relationship
with all the devolved Administrations, but of course the trade
policy programme is reserved to the UK.
(Watford) (Con)
The volume of the trade deals that we are hearing about is
incredibly encouraging and shows the role that the UK has around
the world. Will the Minister please update me on the trade deals
with the Gulf?
Mr Jayawardena
My hon. Friend is a great champion for businesses throughout his
constituency of Watford, and they will want to seize the benefits
of new trade deals, including with the Gulf Co-operation Council,
a group of six countries that want to trade more with the United
Kingdom. The GCC is already equivalent to the fourth largest
trading partner with Britain, with total trade worth more than
£33 billion last year. We are going to boost the economy even
further to create jobs, increase wages and support levelling up
throughout our country.
(Rutherglen and Hamilton
West) (Ind)
According to HMRC data, UK food exports to the EU fell by 19% in
the 15 months following Brexit, at a cost of £2.4 billion. What
steps are Ministers taking specifically to protect and promote
our fantastic UK food businesses in future trade deals?
Of course, the aftermath of covid reduced trade of all kinds with
every part of the world. This Government’s job was to protect
businesses in the aftermath and is now to use our dedicated food
and drink advisers across the Department’s offices to make sure
the world understands the enormous opportunity for the
high-quality produce produced not only in the hon. Member’s
constituency but throughout the rest of the United Kingdom.
Mr Speaker
I call
(Strangford) (DUP)
Thank you, Mr Speaker. You almost caught me off guard there, but
I do have a question and it refers to Northern Ireland. I know
that the Secretary of State is particularly keen to ensure that
all the advantages that come out of any trade deals always follow
down the line so that my local businesses, especially those in
the farming sector, can take advantage of them. Will the
Secretary of State confirm that we will always get that
advantage?
Thank you, Mr Speaker, for making sure that the important voice
of Northern Ireland was heard in DIT questions today. Northern
Ireland remains at the heart of the UK and we will make sure
that, in respect of all our trade deals and, indeed, in the work
we do to reduce market-access barriers, our teams speak to
businesses in Northern Ireland and throughout the rest of the UK.
We are working to support them to make great British exports
around the world.
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