Exports from Devolved Nations to the EU Gavin Newlands (Paisley and
Renfrewshire North) (SNP) 1. What steps her Department is taking to
help increase exports from the devolved nations to the EU. (903563)
The Minister of State, Department for Business and Trade (Nigel
Huddleston) We are supporting businesses in all parts of the United
Kingdom through our export support service, including our
innovative Export Academy, which helps build market export
capability among...Request free trial
Exports from Devolved Nations to the EU
(Paisley and Renfrewshire
North) (SNP)
1. What steps her Department is taking to help increase exports
from the devolved nations to the EU. (903563)
The Minister of State, Department for Business and Trade ()
We are supporting businesses in all parts of the United Kingdom
through our export support service, including our innovative
Export Academy, which helps build market export capability among
small and medium-sized enterprises across the UK. We have also
established trade and investment offices in Edinburgh, Cardiff
and Belfast, increasing the visibility of the Department’s
services in the nations, and channelling the benefits of our new
export and investment strategies to the entire UK. I am sure the
hon. Member is aware of those benefits in his own constituency,
with businesses such as Lynkeos Technology winning a £100,000
contract last year in Germany with the assistance of the
Department.
I like the hon. Member, but that answer was nonsense, quite
frankly. The Institute of Directors found in a recent survey that
almost half—47%—of businesses are still finding trade after
Brexit a challenge, with just a third envisaging any
opportunities at all from Brexit. That report also found that 45%
of SMEs are exporting less to the European Union post Brexit,
with Scottish exports having already slumped by £2.2 billion
because of Brexit. Does the Minister agree that Brexit is an act
of state-sanctioned economic vandalism?
I am sorry that the hon. Gentleman is saying this is nonsense. I
am sure that those businesses in his constituency and across
Scotland who get support from the Department do not share that
attitude. As well as focusing on the EU, which is and will
continue to be an important trading partner of the UK, we are
looking to the entire world, hence focusing on so many other
countries. I hope he will be a little more “glass half full” in
the future.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
Is the Minister aware that the Scottish Government are planning
to bring forward draconian restrictions on the advertising of
whisky and other drinks in Scotland? Not only will that cost jobs
in Scotland but it will make it much more difficult for the
industry to export to the EU and elsewhere.
My right hon. Friend makes an important point. Such measures
could have a considerable negative impact on so many Scottish
businesses. That is precisely why we are seeking opportunities to
support them, for example with trade deals, and trying to ensure
that we reduce tariffs and are able to export more overseas.
While we are backing our businesses right across the UK, I hope
that in future we can get support from the Opposition, who might
at some point come and join us and support one of the trade deals
we are negotiating.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
Unfortunately for the Minister, and unfortunately for Scotland,
the latest data from His Majesty’s Revenue and Customs shows that
between July and September last year, exports from Scotland to
the European Union slumped by 5%. Will the Minister explain for
an expectant nation exactly how that is in any way strengthening
the case for the Union?
The hon. Gentleman will be well aware that, as we recover from a
global pandemic, certain sectors and certain industries are
suffering more than others. That is precisely why we have an
export strategy and why the Secretary of State has articulated a
five-point strategy for growth. We will continue to work
positively with all sectors to grow our export opportunities. UK
exports to the EU for the 12-month period to September 2022 were
up by 25% in current prices.
It is not just the SNP who are saying what a disaster Brexit has
been. With the director of the Institute for Fiscal Studies
saying that Brexit is clearly an “economic own goal”, and even a
former Brexit Secretary saying that there have been no economic
benefits from Brexit, is it not surely time for voters in
Scotland to be given the choice between continued British
economic decline or a prosperous, independent European
future?
I know the hon. Member and some people are tempted to continue to
fight the battles of the past, but this Government will be
laser-focused on the future and future opportunities. We have the
comprehensive and progressive agreement for trans-Pacific
partnership and so many other opportunities around the world, and
I think it would be good for all of us in this place to talk the
British economy up, rather than talk it down.
US State-level Market Barriers
(Buckingham) (Con)
2. What recent discussions she has had with her US counterpart on
reducing market barriers at the state level in the US.
(903564)
The Minister of State, Department for Business and Trade ()
We are taking tangible steps to improve our trade relationship
with our largest bilateral trading partner, the United States. We
have already signed state-level memorandums of understanding with
Indiana, and North and South Carolina, which we are using to
address barriers and promote British business in priority areas
such as procurement, renewable energy, automotive, and life
sciences. Together, those states imported more than £3.3 billion
of UK goods in 2021. In December, the previous Minister for Trade
Policy met counterparts in California to discuss an MOU, and
counterparts in Utah to advance our talks. We are also making
progress with Oklahoma and Texas, alongside our regular
engagement with states across the US.
I welcome my hon. Friend’s answer, particularly the priority
areas he outlined. However, from financial services to online
shopping, digital trade is at the heart of doing business with
our closest ally—the United States. Will my hon. Friend update
the House on the progress made on removing barriers specific to
such digital trade with individual states?
My hon. Friend is absolutely right to highlight the importance of
the digital economy. We very much see digital trade as an
excellent area to focus on, deepening ties between the US and the
UK. As part of that, we are keen to explore where we might be
able to facilitate co-operation and promote digital trade with
the US at state level. Further, the US-UK trade dialogues in
Baltimore and Aberdeen last year helped to identify a range of
trade-related areas for the two countries to collaborate on, and
we agreed to strengthen further our bilateral trade in a range of
areas, including on digital trade.
Mr Speaker
I call the shadow Minister.
(Brentford and Isleworth)
(Lab)
After failing to get a trade deal with the United States, the
Government have resorted to signing non-binding agreements with
separate US states. The Minister’s answer to the hon. Member for
Buckingham () on the different sectors was
interesting, but the Government have refused to confirm what
economic benefits these agreements will bring to the UK economy.
I give the Minister another chance: will he tell me what value in
pounds and pence these agreements will bring to our economy?
Again, I am somewhat disappointed that the Opposition are talking
down the opportunities we have. These MOUs seek to bolster the
already strong trading relationships with US states, which, as I
said, are worth £3.3 billion of UK goods. As we move through and
implement the MOUs—we have good faith and goodwill with the
people we have been negotiating with—we will inevitably increase
our trade volumes. The US is already our strongest and most
important trading partner, accounting for about 16% of the UK’s
overall trade, and growing.
(Strangford) (DUP)
In my constituency, companies are able to sell to Europe, the far
east, South Africa and south America, but they have difficulty
selling their products—foodstuffs that come from our farms across
Strangford in Northern Ireland—to the US. Will the Minister give
some indication of what can be done in conjunction with the
Department for the Economy in Northern Ireland to open those
doors to sales?
We are fighting for opportunities right across the UK. As I said,
the US is a really important trading partner. With the MOUs, we
are seeking further opportunities, but we are also working on
removing trade barriers and inhibitions to trade. For example,
since leaving the EU, we have secured major trade deals with the
US, reinstating beef and lamb imports and ending damaging steel
and aluminium tariffs, so we are working in individual sectors to
try to find further opportunities at both state and federal
level.
Export Opportunities for SMEs
(Dewsbury) (Con)
3 What steps her Department is taking to help increase export
opportunities for small and medium-sized businesses. (903565)
The Minister of State, Department for Business and Trade ( )
UK exports have grown by 24% year on year, and our landmark
12-point export strategy will challenge Government and the
private sector to reach £1 trillion-worth of exports a year. As
part of that strategy, we created the export support service,
which has brought together helplines and services across
Government to build a one-stop shop for UK exporters facing
challenges in exporting to the EU. We are also delivering for
businesses through our dedicated team of international trade
advisers, reinforced by Department for International Trade events
and programmes such as the UK Export Academy.
Last month, I was delighted to co-host my first successful export
academy at Kirklees College in association with the Department
for International Trade and UK Export Finance. Will the Minister
outline how local DIT officers and UKEF can assist SMEs to export
their goods and services across the world?
Ms Ghani
Mr Speaker, may I first thank you for your leadership in hosting
President Zelensky yesterday? It really was a humbling moment for
us all. My hon. Friend the Member for Dewsbury (), with his can-do attitude,
is constantly championing everybody in Dewsbury. As he may know,
UK Export Finance offers a range of trade, finance and insurance
products to help small and medium-sized businesses fulfil export
contracts. It works with more than 100 private sector partners,
including all major UK banks. UKEF support is underpinned by the
innovative general export facility, a product designed to give
SME exporters more flexibility when accessing trade finance. It
unlocked almost £250 million of working capital loans in the last
financial year. Local trade has obviously helped strengthen the
“Made in the UK” branding, which provides export support to SMEs
across the country. Face-to-face support for exporters in England
is delivered via a network of around 200 international trade
advisers. There is so much to say, but I think I should stop
there.
Mr Speaker
Hear, hear. I call .
(Warwick and Leamington)
(Lab)
SMEs in my area have been doing a huge amount of business
internationally. One such company has been exporting 80% of its
business for decades. In recent years, it has been challenged by
China, and has had intellectual property issues; its IP has been
stolen. I am afraid to say that it felt unsupported by the
Department for International Trade. It faces an issue in Germany.
Will the Minister meet me to help this business with the
challenge that it faces in those countries?
Ms Ghani
The beauty of having former business Ministers in the new
Department is that we are across most of these issues, including
the issue of IP. I am more than happy to sit down with the hon.
Gentleman, or to make sure that the right Minister does, because
we need to protect our IP.
Export Barriers for Food and Farming Businesses
(South East Cornwall)
(Con)
4. What recent progress her Department has made on tackling
export barriers for food and farming businesses. (903567)
The Parliamentary Under-Secretary of State for Business and Trade
()
May I also pay tribute to you for the way that you welcomed
President Zelensky here yesterday, Mr Speaker? The occasion made
us even more proud to be British.
Over the financial year up to March 2022, we did away with 192
barriers across 79 countries, including by opening up markets for
UK poultry meat in Japan, and for UK pork in Mexico—a market that
will be worth £50 million to UK pork producers in the first five
years of trade. Of course, Cornwall is home to fantastic British
produce, such as Cornish yarg and clotted cream, which are
promoted and recognised around the globe through the GREAT
Britain and Northern Ireland campaign, and at home through our
“Made in the UK, sold to the world” marketing strategy.
Mrs Murray
I have to mention Cornish blue and Cornish Gouda, which are made
in my constituency. South East Cornwall farmers are rightly proud
of their excellent produce. What more can the Department do to
help these small businesses access the widest possible
market?
My hon. Friend is absolutely right: we should be very proud of
the food and drink sector. It is our largest manufacturing
sector—larger than automotive and aerospace put together. Our
Export Academy delivers specialist food and drink modules to get
companies started, and our Export Support Service can answer
questions on export markets in Europe. Companies can access our
network of international trade advisers across England, and the
Department has teams in Scotland, Wales and Northern Ireland.
Mr Speaker
I call shadow Minister Dame .
Dame (Llanelli) (Lab)
It is over a year since the announcement of eight additional
agrifood and drink attachés. Given that there was yet another
gloomy report from the British Chambers of Commerce last month,
which said that three quarters of SMEs anticipated zero or
negative export growth this year, help is certainly needed. Will
the Minister tell us what specialist training the attachés have
completed on food and drink regulation in the relevant countries?
How many UK SMEs have they helped to find new markets, and what
is the value of any new exports that they have secured?
I am very happy to engage with the hon. Lady on that question,
which had a number of other questions within it. As she knows, we
have staff in more than 100 markets, and are building our
existing attaché roles in China, Japan and the Gulf region. The
Government are placing eight new dedicated UK agriculture, food
and drink attachés in growth markets such as the US, Canada,
Africa, India, South America, Brazil and Mexico.
Export Opportunities for SMEs
(Merthyr Tydfil and Rhymney)
(Lab)
5. What steps her Department is taking to help small and
medium-sized businesses export products and services to new
markets. (903568)
The Parliamentary Under-Secretary of State for Business and Trade
()
The Department is opening new markets and creating new
opportunities for exporters by agreeing new trade agreements and
tackling market access barriers in countries around the world.
Indeed, recently a deal was struck, worth up to £20 million, that
allows Welsh lamb exports to the US.
The 2019 Conservative manifesto committed to 80% of UK trade
being done under free trade terms by the end of 2022. The
Government have clearly failed in their commitment to deliver
free trade agreements. Does the Minister believe that free trade
deals with the USA and India would help more small and
medium-sized businesses to export? If so, would he care to
apologise to businesses for over-promising and under-delivering
yet again when it comes to these deals?
Trade agreements are clearly very important, which is why we have
struck 71 agreements with countries around the world, as well as
with the European Union. It would be a good thing if the
Opposition were to support those free trade agreements. I just
reassure the hon. Gentleman that trade with the EU, for example,
is now at record levels. Last year, exports to the EU were £330
billion, compared to £298 billion in 2019.
(Banff and Buchan) (Con)
Small and medium-sized businesses make up a large part of the
huge food and drink export sector that the Minister has already
discussed. Tomorrow, the Scotch whisky industry will announce
full-year export results for 2022. Significant growth is
expected, particularly in India, even with 150% tariffs. Will the
Minister update the House on negotiations with India? Does he
agree that a deal to reduce tariffs on Scotch whisky would be
good not only for the distillers of Scotch whisky in Scotland but
for the wider supply chain right across the UK?
I know my hon. Friend is visiting one of his distilleries next
week. I agree with him that opening new markets to our whisky
exporters is one of the great opportunities open to us in a
post-Brexit Britain. As he knows, whisky is one of the UK’s
largest food and drink exports, with £4.6 billion in 2021. We
have an ambitious programme of free trade agreement negotiations
to break down barriers. We are now in our sixth round of
negotiations with India this very week.
Inward Investment
(Burnley) (Con)
6. What steps her Department is taking to help secure more inward
investment into the UK. (903570)
(Cambridge) (Lab)
13. What steps she is to taking help increase foreign direct
investment into the UK. (903578)
(Keighley) (Con)
17. What steps her Department is taking to help increase the
level of inward investment into the UK. (903583)
The Minister of State, Department for Business and Trade ( )
The UK’s total inward investment stock is the second highest in
the world, having recently passed £2 trillion. As the Secretary
of State outlined, we want to make the UK the undisputed top
investment destination in Europe, attracting high-impact,
high-value investment into our strategically important sectors
which will make a real difference to the UK economy. We are
facilitating both Government-to-Government and industry
investment. The UK-UAE sovereign investment partnership will
bring £10 billion to key UK sectors. Likewise, the Moderna
partnership will support our research and clinical trials
infrastructure, building a state-of-the-art vaccine manufacturing
centre and creating over 150 highly skilled jobs in the UK.
Compared to 2020-21, last year —2021-22—the estimated economic
impact of foreign direct investment projects supported by the
Department for International Trade increased by 82% and the
number of new jobs by 53%.
Mr Speaker
Minister, why are the answers so long? We have not heard the rest
of the questions yet. I have a big list.
Burnley and Padiham are already home to some brilliant
international businesses, such as Safran Nacelles, Paradigm
Precision and Futaba Manufacturing among many, many more.
Together, they support thousands of local jobs. To make our area
even better, we want to attract more investment, helping
businesses already here to grow and attracting new ones in. Will
the Minister agree to meet me to talk through how we can make
Burnley the best place to invest in Britain?
Ms Ghani
I think my hon. Friend, in promoting Burnley so much, has already
made it the best place to be doing business. Burnley has a global
reputation for manufacturing excellence. The companies that he
references demonstrate the attractiveness of his constituency to
investors across the globe, and the free trade agreements make it
easier for investors to bring capital and create jobs in Burnley.
And, of course, we would be delighted to meet him.
The Minister references the life sciences sector, which is so
important for future prosperity, particularly in and around
Cambridge. We are in danger of falling behind in the race for
international investment, as evidenced by the fact that since
2018 we have fallen from fourth to 10th in hosting late-phase
clinical trials. What are the Government doing to address that
issue?
Ms Ghani
On clinical trials specifically, when I was life science Minister
we commissioned a review of clinical trials—we knew that was a
blockage—but I do not think the data he presents reflects the £1
billion Moderna deal we have just secured, including the deal
with biotech. The fact that we have life science missions will
enable us to attract more attention and work to the ecosystems we
have here in the UK, including in the hon. Gentleman’s
constituency. I am more than happy to work with him, because life
science is one of our key exports of expertise.
I recently had the honour of welcoming the Prime Minister to
Keighley, where he had the opportunity to visit Teconnex, a
global leader in clamp technology that also provides battery
storage to help commercial and industrial facilities to become
more energy-independent. What steps is my hon. Friend taking to
ensure that with businesses such as Teconnex in my constituency
and other world-leading businesses right here in the UK, we can
be seen as a more attractive place for foreign investment?
Ms Ghani
My hon. Friend proudly represents Teconnex as a firm in his
constituency. The Department is keen to support all businesses
that seek to invest or expand in the UK, particularly those that
can help to spread jobs and opportunities across the UK and help
us to deliver net zero. The Department is working across
Government; we have previous Business Ministers here, and we are
very close to the automotive sector and the supply chain. The new
Department will ensure that there is a single, coherent voice for
business inside Government to help my hon. Friend to represent
business in his constituency.
(Denton and Reddish)
(Lab)
The investment in Moderna will not be worth anything if we do not
have the precision temperature-calibrated machinery to help with
that development. SK Wiring in Denton is the UK’s only
manufacturer of that high-tech wiring. It stayed open during the
pandemic, even though it lost 70% of its industrial trade, to
keep the covid vaccine going and keep the NHS going. It is now at
risk of closure. Can we have an urgent meeting so that we can
keep this critical national infrastructure developed in
Britain?
Ms Ghani
Within the life sciences missions, manufacturing is a key point.
I was at the life sciences conference in San Francisco when we
finalised the deal with Moderna. Of course this is not about
playing politics; I am more than happy to meet the firm in the
hon. Gentleman’s constituency, because vaccine manufacturing will
be a key growth area for us.
Trade with European Countries
(Bath) (LD)
7. What steps she is taking to help increase trade with European
countries. (903571)
The Minister of State, Department for Business and Trade ()
Europe remains a vital destination for British businesses, with
exports of over £386 billion in the year to September 2022. That
is up almost 25%, in current prices, on the previous year. As we
speak, the Secretary of State is in Rome to establish the
UK-Italy export and investment promotion dialogue, which will
help to strengthen practical co-operation on exports in
high-performing sectors and promote inward investment. We are
also working closely with EU member states to tackle priority
barriers and unlock export opportunities for UK businesses.
More than half of firms surveyed by the British Chambers of
Commerce are struggling with the new post-Brexit export system.
The Office for National Statistics reports that Brexit costs the
economy £1 million per hour, and the UK economy has not recovered
as well as other countries post covid. What plans does the
Minister have to reduce trade barriers and EU border bureaucracy,
which have hugely increased since Brexit?
As I said earlier, I hope that we can look at the opportunities
of leaving the EU as well as trying to fight past battles. There
are a host of opportunities; for example, I do not think that the
EU had a particularly proud record on services around the globe.
We are opening up services for many companies, which under the EU
we were to a very large degree constrained in doing. We have huge
resources for supporting businesses. Trade with the EU has been
growing considerably, and we will do everything we can to support
further growth.
(New Forest West) (Con)
These barriers have had a greater impact on EU trade than on the
UK. When does the Minister anticipate the EU will wake up to what
is in our mutual interest?
My right hon. Friend makes a perfectly good point. Our agreement
with the EU is one of the most thorough and comprehensive trade
agreements, but we need to work further. We are constantly
looking at opportunities—country by country, industry subsector
by subsector—to open up more trade by reducing the barriers.
These are barriers that also existed when we were in the EU.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
Over the past three years, according to the latest German trade
figures, exports to Germany are up by almost a third from the US,
by almost a quarter from the rest of the EU and by more than 10%
from China, yet exports from Britain to Germany are down.
Everybody else’s exports are up; Britain’s are down. Is it a lack
of support to our exporters to Germany, is it the poor deal that
the Conservative party negotiated with the EU, or does the
Minister blame British business for the situation, as one of last
year’s Prime Ministers once did?
Again, all I have to say is that I have much greater confidence
in British industries taking advantage of opportunities, not only
in the EU but around the world. I wish others in this Chamber
shared that optimism and confidence in British business.
Foreign Direct Investment since 2016
(Kettering) (Con)
8. If she will make an estimate of the level of foreign direct
investment into the UK since 23 June 2016. (903573)
The Minister of State, Department for Business and Trade ( )
More global multinationals have set up subsidiaries in the UK
than in any country other than the United States. This is the
best place in Europe in which to raise capital. Between April
2016 and the end of March 2022, the Department assisted more than
8,700 foreign direct investment projects in the UK, which have
created about 348,000 new jobs across the United Kingdom.
Mr Hollobone
The UK has had a great track record of attracting foreign direct
investment since we voted to leave the European Union. The
figures given by the Minister will include the £200 million
investment by Ball Corporation in the United States in the UK’s
largest and Europe’s most advanced can manufacturing plant, in
Burton Latimer. How does the UK’s record of attracting foreign
direct investment compare with those of our major EU
competitors?
Ms Ghani
My hon. Friend has given a fantastic example of the opportunities
that have been created. The UK is a highly attractive destination
for FDI, and has been among the top recipients in Europe over the
last decade. According to the Financial Times and the United
Nations Conference on Trade and Development, the UK has the
highest market share of greenfield FDI capital expenditure in
Europe, at 20%—almost double that of Spain, which is in second
place with 12%. It also has the highest levels of Food and Drug
Administration stock in Europe, second only to the United States
globally. It is remarkable how far we have progressed in such a
short time.
(Bristol East) (Lab)
The Biden Administration’s Inflation Reduction Act 2022 makes
investing in the US very attractive, particularly for innovative
green technology. How are we going to compete?
Ms Ghani
In my previous role I was dealing with the impacts of the
Inflation Reduction Act, and I hope I will continue to do so,
because so many business representatives whom I have met have
raised it as a concern. The hon. Lady has referred to green
technology. A great deal of work has already been done to promote
all our expertise, especially in relation to hydrogen, but there
is a huge amount of investment in the UK’s green technology
sector and technology in general, and we are also a leading light
when it comes to lithium. I was recently in Cape Town with our
Green Lithium firm, which wanted to negotiate on how it could do
more work in the United States. That is exactly what we are here
to do—to facilitate collaboration of that kind.
Trade Envoy for the Commonwealth
(Clacton) (Con)
9. What assessment she has made of the potential merits of
establishing a trade envoy for the Commonwealth. (903574)
The Minister of State, Department for Business and Trade ()
The countries of the Commonwealth are important trading partners.
Our total trading relationship was worth more than £146 billion
in the 12 months to September 2022, which is why my right hon.
Friend the Prime Minister has already appointed trade envoys to
15 Commonwealth nations. We have trade agreements with 33
Commonwealth members, and five of the 11 members of the
comprehensive and progressive agreement for trans-Pacific
partnership are in the Commonwealth as well.
As chairman of the 1922 committee’s Back-Bench foreign affairs
policy committee, I recently shared our report with ministerial
colleagues. One of its recommendations was the creation of a
Commonwealth-specific trade envoy post. Does my hon. Friend agree
that in this post-Brexit era, increasing trade and movement
between the Commonwealth and the UK should be a top priority to
foster economic growth? By the way, this is not a pitch for that
job.
Yes, I am afraid that those jobs are at the discretion of the
Prime Minister.
I hear what my hon. Friend is saying. We already have extensive
coverage through the existing network, but we review the network
regularly because we are committed to working with our allies in
the Commonwealth to remove the barriers to trade and strengthen
trading relationships to foster economic growth. Growing exports
to Commonwealth countries is a priority, and trade increased by
25% in the year to September 2022. As for movement, we have a new
global immigration system which is vital in supporting trade and
economic growth, and the movement of business people on a
temporary basis promotes and supports trade in services and goods
and investment activities. Recognition of professional
qualifications and business travel are always an important part
of our trade deals.
Automotive Exports
(Luton South) (Lab)
10. What steps she is taking to help increase automotive exports.
(903575)
The Minister of State, Department for Business and Trade ( )
The Department is working across Whitehall and with industry to
secure export-led investment as the sector makes the transition
to zero-emission vehicles, including new electric vehicle models,
along with battery gigafactories and the electric vehicle supply
chain. We have a dedicated export support system throughout the
UK in the shape of our international trade advisers, ensuring
that the automotive industry is the country’s biggest single
exporter of goods, exporting nearly 80% of vehicle
production—about 6% of the UK’s total exported goods.
If we are to continue to drive British automotive exports, it is
critical that automotive businesses such as Vauxhall in Luton can
make the transition to manufacturing electric vehicles
effectively. The rules of origin from 2024 onwards highlight the
need to attract the wider electrified supply chain to the UK as
soon as possible. How is the Minister working with the automotive
sector to expand our domestic electric vehicle supply
chain—especially in respect of batteries—to avoid any future
tariffs when rules of origin come into effect?
Ms Ghani
The hon. Lady will hopefully find some comfort in the fact that I
have many meetings with the Society of Motor Manufacturers and
Traders and have met the automotive sector multiple times to deal
with this issue. We are very much aware of the rules-of-origin
issue, which is why we are investing so much in batteries. In
particular, the Faraday battery challenge is a £541 million
project to help us to develop new battery technologies. I have
mentioned already that I was in Cape Town to deal with the
diversification of access to critical minerals in supply chains
to ensure that we can process them and manufacture here.
(South Norfolk) (Con)
Would the Minister like to congratulate Group Lotus in my
constituency, which exports more than 70% of its car production?
Would she like to take the opportunity to come to Hethel to see
the new Lotus Evija supercar, which can do nought to 180 mph in
nine seconds?
Ms Ghani
I am not sure that I can speak as far as that car goes, but I am
more than happy to come to Hethel to visit Group Lotus. The
amount of progress that has been made by experts, academics and
scientists when it comes not only to zero emission vehicles but
to speed is remarkable.
Foreign Direct Investment: Metro Mayors
(Orpington) (Con)
11. What recent discussions her Department has had with Metro
Mayors on attracting more foreign direct investment.(903576)
The Parliamentary Under-Secretary of State for Business and Trade
()
I met this week to talk about
foreign direct investment, and will meet the 10 Metro Mayors
today and look to discuss how we can attract more investment into
mayoral combined authorities and how the Department can connect
strategic regional opportunities to major international capital,
such as the sovereign investment partnerships that have been
established over the past 18 months by the Department and the
Office for Investment.
I chair the all-party parliamentary group for London as a global
city, and last year we published our first report, which featured
analysis of the London-plus effect, a term coined by the London
& Partners agency to show that our capital is the gateway to
the world and that companies that first invest in London go on to
contribute £7.6 billion and create 40,000 jobs throughout the
country. Is my hon. Friend’s Department willing to consider
convening roundtables with the Metro Mayors on how to maximise
the potential benefit to the UK of the London-plus effect?
My hon. Friend is absolutely right. was very clear about the
importance of London to regional development in the west
midlands. The Department convenes roundtable joint sessions with
the M10 Metro Mayors twice every year, in additional to ongoing
ministerial-mayoral bilaterals and official-level engagement.
Such meetings include the discussion of shared priorities in
respect of international trade and investment and of greater
collaboration throughout all regions to increase foreign direct
investment from new and existing investors.
(Ogmore) (Lab)
The Minister will know that there are no Metro Mayors in Wales,
but there are city deals and leaders that link across the
south-west of England into Bristol and across the south Wales
belt. Will the Minister set out what he is doing to work with
local government leaders in Wales to ensure that investment is
brought into Welsh constituencies as well as those throughout
England?
The hon. Gentleman is absolutely right. We are pleased that
across York and North Yorkshire we are about to get our own Metro
Mayor; I am sure he is working hard to bring that kind of
governance to his area too, because it clearly delivers
opportunity right across the country. As he knows, the FDI stock
in the UK is worth £2 trillion, which is the second highest
amount in the world. I am sure the opportunities would be
beneficial to the hon. Gentleman’s constituents should he strike
that kind of deal.
Free Trade Agreement with the US
(South Shields) (Lab)
12. What recent progress she has made on a free trade agreement
with the US.(903577)
The Minister of State, Department for Business and Trade ()
We recognise that the US is not currently focused on FTAs.
However, we stand ready to resume negotiations when they are
ready. In the meantime, we are working to improve the trading
landscape, including by removing US steel and aluminium tariffs
and lifting the US ban on British lamb and beef. We are also
working with the US on areas of shared interest that include
digital trade, small and medium-sized enterprise support and
supply chain security.
Mrs Lewell-Buck
The reality is that there has been no real progress and, despite
all the previous rhetoric, there remains no free trade agreement
with the US. Does the Minister think his suggestion that this is
the fault of the US President will help or hinder future
negotiations?
As I said, the US is not currently negotiating FTAs, not just
with us but with any other country. We are working and we have
very good dialogue with one of our closest allies in so many
areas, including economically, culturally and militarily, and
that dialogue will of course continue. As I said in my previous
answer, we are working in many areas, including steel and food,
to create opportunities, alongside work in respect of the
memorandum of understanding. Considerable progress can be and
will continue to be made, even without an FTA.
(Gainsborough) (Con)
Global free trade is and always has been the greatest motor for
global prosperity, which is why many of us voted for Brexit. A
free trade deal with America is the greatest prize of all. Will
the Minister confirm that, as far as we are concerned, there are
no barriers at all—whether it be chlorinated chicken or
whatever—to trying to conclude an agreement? We want this deal
with the US. Does the Minister think that it will happen?
We are very keen to conclude a deal with the US, but, at the
moment, it is not able to enter into those negotiations. However,
that will not prohibit us from continuing to find opportunities
and to remove barriers where and when we can, as well as seeking
those opportunities across the world. I appreciate what the right
hon. Member said at the beginning of his question about how we,
on the Conservative Benches, are firm proponents of free trade.
It is good for the UK economy and good for the world economy, and
we need to continue to make sure that that message is heard loud
and clear.
(Harrow West) (Lab/Co-op)
Had the Conservative party negotiated a free trade agreement with
the US, as it promised at the general election, British firms
would have been protected from new market barriers to green trade
that are being introduced by the US Inflation Reduction Act 2022.
That means that new investment and jobs here in Britain in green
energy, electric vehicles and new technology are at risk. Is it
not the truth that the infighting in the Conservative party last
year meant that Ministers woke up much too late to the threat and
that they have done far too little since to try to ameliorate the
damage?
As I said, the US is not focused on free trade agreements at the
moment, and we are disappointed that the US has opted to pursue
policies in the Inflation Reduction Act that will harm British
businesses and impact global supply chains. The UK expects to be
and, as the closest ally of the US, should be part of any
flexibilities in the implementation of the IRA, and we will
continue closely engaging with the US Administration to ensure
that UK concerns are addressed.
Tackling Modern Slavery: Trade Negotiations
(Edmonton) (Lab/Co-op)
14. What steps her Department is taking through trade
negotiations to help tackle modern slavery in global supply
chains. (903579)
The Minister of State, Department for Business and Trade ()
The UK is a world leader in the promotion of human rights and
remains committed to ensuring that trade supports an environment
where workers’ rights are upheld, including working towards the
eradication of modern slavery in global supply chains. We should
remember that the UK was the first country to produce a national
action plan for the implementation of the UN guiding principles
on business and human rights. In both our agreements with
Australia and New Zealand, for example, we have secured
world-leading modern slavery provisions.
I thank the Minister for his answer, but the UK has named the
Gulf Cooperation Council as one of its priorities for trade deals
and has begun negotiations. We know that the economies across the
Gulf are built on the terrible kafala system, enabling coercion
and debt bondage and facilitating modern slavery. How can the
Government justify such talks with the Gulf Cooperation Council
given those basic human rights concerns?
Protecting UK workers’ rights remains a priority for this
Government. The UK will continue to meet its obligations under
the International Labour Organisation and to advocate for the
highest labour standards and working conditions globally, and
that includes in our discussions on free trade agreements. In the
UK GCC FTA, we will retain the UK’s high standards and
protections, including the right to regulate labour, and we will
also seek assurances that labour rights are not reduced to gain a
trade advantage. We have these discussions in this and other
Departments, and we are always happy to have frank conversations
with our friends.
Green Industrial Sector
(North Devon) (Con)
16. What steps her Department is taking to help increase trade
opportunities for the green industrial sector. (903582)
The Parliamentary Under-Secretary of State for Business and Trade
()
Green trade is a foundational building block of sustainable
growth, helping to protect our environment and our energy
security, and future-proof UK jobs. In the two years to October
2022, the Government have supported £20 billion of net
zero-related inward investment to help grow our green
industries.
Does my hon. Friend agree that, if we drag our feet developing
new renewable energy industries, foreign investment will go
overseas?
I agree with my hon. Friend and thank her for her incredible work
on the Celtic sea initiative. I attended her reception in
Parliament, which was very well attended indeed and very
optimistic about the potential for the Celtic sea.
We know that the net zero transition will create new industries
worth around $10 trillion to the global economy by 2050. We
recognise that the international landscape is becoming
increasingly competitive as a result, but we are not dragging our
feet. Securing inward investment to the UK’s green economy is a
top priority for the Government, and the Department will be
working closely with the Department for Energy Security and Net
Zero, UK Export Finance and the Office for Investment, using all
the levers at our disposal to promote the UK offer overseas.
Parliamentary Scrutiny of New Free Trade Agreements
(Blaydon) (Lab)
18. What steps she is taking to support effective parliamentary
scrutiny of new free trade agreements.(903584)
The Minister of State, Department for Business and Trade ()
The Government are committed to transparency and effective
scrutiny in our trade agenda, going beyond the statutory
framework set out in the Constitutional Reform and Governance Act
2010. That includes providing extensive information prior to the
commencement of talks on free trade agreements, as well as
regular updates to Parliament during negotiations. At the end of
negotiations, we have committed to additional parliamentary
scrutiny time, as well as to publishing further information such
as the advice of the independent Trade and Agriculture
Commission.
Over the last year, the Government’s former Environment
Secretary, the right hon. Member for Camborne and Redruth (), has labelled the
Government free trade agreements a failure, and the Prime
Minister has called them one-sided. Is such criticism the reason
the Government spend so much time avoiding any real detailed
scrutiny of these trade agreements?
I respectfully disagree with the hon. Lady’s characterisation
that there is insufficient scrutiny, and I respectfully disagree
with my right hon. Friend the Member for Camborne and Redruth
(), who made some comments
earlier this year. Last time I answered this question, you quite
rightly had a go at me, Mr Speaker, because I gave a long list of
examples of extensive scrutiny on our free trade agreements. I
will spare the House by not repeating it , but I refer the hon.
Lady to the answer I gave previously.
Topical Questions
(Cambridge) (Lab)
T1. If she will make a statement on her departmental
responsibilities.(903588)
The Minister of State, Department for Business and Trade ()
The Secretary of State for Business and Trade is currently in
Mexico, driving forward our negotiations to join the
comprehensive and progressive agreement for trans-Pacific
partnership and progressing bilateral trade discussions. I am
delighted to be representing the Department as the Minister for
international trade; I thank my predecessor for his work in
delivering the Government’s ambitions, and the former Minister
for exports as well.
Just last week, the then Minister for trade policy, my right hon.
Friend the Member for Chelsea and Fulham (), held talks with his
counterparts in Vietnam, Malaysia and Singapore on trade,
outlining the benefits the UK will bring to CPTPP as we look to
conclude our accession process. When the UK joins, the bloc will
represent 15.4% of global GDP, rising from 12%. Later today, I am
meeting ambassadors and high commissioners from all CPTPP
countries, where I look forward to discussing how we can enhance
their ties with the UK. Our negotiators continue to engage with
their counterparts.
International students are of huge benefit to every constituency
in this country, not just to university cities such as Cambridge,
but different parts of the Government seem to be sending out very
different messages as to how welcome they are. Will the Minister
tell us what his Department is doing to secure this important
trade benefit for the UK?
The Government are always open across multiple Departments to
engage constructively with industry and players, and that will
continue to be the case. If the hon. Gentleman would like to
invite us to have a discussion with him, somebody in his
constituency or other stakeholders, we would be delighted to do
so. We work with businesses in this party.
(Wimbledon) (Con)
T4. Wimbledon, Morden, Raynes Park and Motspur Park are home to
many high-tech companies, including GripAble, which is developing
solutions for neuro diseases. What are the Government doing in
these trade deals and what steps are they taking to ensure that
we get investment and trade in high-tech companies?(903592)
The Minister of State, Department for Business and Trade ( )
My hon. Friend once again promotes a fantastic business in his
constituency. The UK tech and digital sectors are key for us and
are our greatest success stories, with a total valuation in
excess of £1 trillion in 2022. The UK tech sector retains the No.
1 spot in Europe and is No. 3 in the world, as the sector’s
resilience brings continued growth. On tech within life sciences,
we are one of the top countries in the world to be seen
collaborating and investing with.
Mr Speaker
I call the shadow Secretary of State.
(Torfaen) (Lab)
I thank you, Mr Speaker, and all House staff for the work on
President Zelensky’s visit. I also welcome the Ministers to their
rearranged places, but I do not think it is a surprise that the
Prime Minister has decided to shuffle the deckchairs on this
particular ship. We had a Department for Business, Energy and
Industrial Strategy with no industrial strategy and we had a
Department for International Trade delivering either no deals or
bad deals. In an assessment of the Conservatives’ 13 years in
office, can the Minister inform the House when they expect to hit
the target of £1 trillion- worth of exports, which promised by 2020?
Ms Ghani
What a blow to one’s ego to know that one’s Department is such a
disappointment, but we are working so closely with our colleagues
to drive investment, represent businesses and focus on trade that
it makes absolute sense for us to be here. I know that I am new
to this business, but I thought that the £1-trillion target was
for 2030. If that is the case, we have seven years to go, so I
suggest that the right hon. Gentleman be a little patient. In
seven years’ time, he will be there, on the Opposition Benches,
and we will be here, on the Government Benches, ready to update
him.
promised it by 2020; the last
Prime Minister but one promised it by 2030; and, as the
Department for International Trade set out in a written response,
the Office for Budget Responsibility said that the target will
not be met until 2035—15 years late. Is that any surprise? The
Government have delivered no trade deal with the US, no trade
deal with India, and an ongoing impasse on the Northern Ireland
protocol, and the current Prime Minister said that the deals that
they have delivered, such as the Australia deal, were “one
sided”. The truth is that they can swap around Ministers and
departmental names, but at the heart of it is a failing
Government who are out of ideas.
Ms Ghani
I completely understand why the right hon. Member may be
confused. We on the Conservative Benches represent business, and
I know that the Labour party was stopping people from doing their
business by backing the strikes. We on this side of the House
represent trade, but I cannot think of a single trade deal that
he was proud to support. I can understand the level of complete
confusion, but I do not understand some of the figures that he
cites.
There is such fantastic news out there. We have talked about the
fact that we have attracted £20 billion in tech. Why would the
right hon. Member not be proud of that? If he wants to talk about
reports, just last night I read the PricewaterhouseCoopers
report, which said that the UK would be the fastest growing G7
economy by 2050, and will outgrow Germany, France and Italy. That
is good news. I thought Thursday mornings were about promoting
Great Britain—
Mr Speaker
And topical questions are meant to be short and brief. I call
to set the example.
(Kettering) (Con)
T6. Excitement is building in Kettering ahead of the visit by
the Minister with responsibility for small business, my hon.
Friend the Member for Thirsk and Malton (), to the North Northants
Business Network on Friday 10 March. One hundred representatives
from local small businesses are really keen to meet him. Will he
be kind enough to give us a taster of the optimistic message that
he will bring to small businesses in Kettering?(903596)
The Parliamentary Under-Secretary of State for Business and Trade
()
Excitement is also building in me ahead of my visit to Kettering.
I am a proud champion of small businesses, which, as we all know,
are the engine room of growth in our economy. That growth has
been good over the past 12 years—the third fastest in the G7—but
we want it to be faster. I am very keen to engage with my hon.
Friend to see how we can help small and medium-sized enterprises
to do that.
(Blaydon) (Lab)
T2. Now that the Trade Remedies Authority has been in operation
for almost two years and has produced its decision, can the
Minister tell me what plans there are, if any, to review how it
operates and the guidelines to which it works?(903589)
I thank the hon. Lady for the constructive engagement that we
have had about the TRA. I know that some of its decisions have
been impactful on her and her constituency. We will be looking
for some reform of the TRA, and I would be happy to discuss that
further with her.
(Burnley) (Con)
T7. It is brilliant to see that state-level memorandums of
understanding are being signed in the US, but with only three so
far, it is clear that we can go further to cement that important
trading relationship. What progress are we making with other
states, and when can we expect further MOUs to be
signed?(903597)
Absolutely. We have agreed MOUs with Indiana, North Carolina and,
most recently, South Carolina, as my hon. Friend sets out. We are
actively engaging with other states, including Oklahoma, Utah,
Texas and California, and I look forward to updating the House on
further progress.
(Edmonton) (Lab/Co-op)
T3. I understand that the Government are set to undertake a
second round of trade negotiations with Israel in the spring.
Israel applies our current agreement to the Occupied Palestinian
Territories, against the EU negotiator’s original intentions.
Have the Government considered how they will go about preventing
any repeat of that situation and preventing illegal settlements
from benefiting from the prospective deal?(903591)
We are progressing with the free trade agreement with Israel. We
are excited about the opportunities it presents, in particular
because of the focus on science, technology and innovation. I
understand the point that the hon. Lady is raising. I think some
of it cuts across other Departments, but I will write to her.
(Buckingham) (Con)
The global dairy market is forecast to be growing in the region
of 2%, so can my hon. Friend outline what steps his Department is
taking to ensure that our world-class British dairy products are
at the front of the queue to benefit from that growth?
My hon. Friend is absolutely right. As I said earlier, food and
drink is our largest manufacturing sector—larger than aerospace
and automotive put together. He is right to point out the
opportunities for dairy in our free-trade negotiations, and that
will be taken forward as the negotiations progress.
(South Shields) (Lab)
T5. Banks and insurers are using environmental, social and
governance criteria to block companies that work in the defence
industry, stifling jobs, skills, innovation and UK exports. Why
have the Government done nothing about that?(903594)
The hon. Lady raises an important point, but we are trying to
work across all sectors—industry by industry and sector by
sector. We have clear processes, particularly when it relates to
arms. We are trying to seek opportunities for fair trade across
the world, whether it is imports or exports, and we will continue
to make sure that we do so on an ethical basis.
(Dewsbury) (Con)
What action does my hon. Friend intend to take to reduce tariff
barriers with developing countries, such as Pakistan?
Ms Ghani
I believe that my hon. Friend is the trade envoy to Pakistan, and
I look forward to collaborating with him. Pakistan already has a
preferential trading relationship with the UK through our
generalised scheme of preferences. This will be replaced by the
developing countries trading scheme, and Pakistan will continue
to benefit from duty-free exports to the UK and the removal of
tariffs on 156 products. I look forward to working with my hon.
Friend.
(Glasgow Central)
(SNP)
Edusport Academy, based in my constituency, was set up in 2011
and had a thriving business prior to Brexit. It brings young
sports people over to Scotland, combining sport and English
language training. Since Brexit, Edusport has struggled to make
the business work due to restrictions put in place by the Home
Office. Will the Minister meet me and Edusport to discuss how we
can make this business work and continue to thrive?
As I have said, we will continue to work with the EU to try to
reduce barriers that do exist. I cannot make a promise on behalf
of the Home Office, but I note what the hon. Lady has said, and I
will try to facilitate the appropriate meeting with the
appropriate Minister for her.
(Strangford) (DUP)
The fairness of imports and exports in Northern Ireland is
hindered by the impacts of the Northern Ireland protocol. What
steps are being taken to ensure that the Northern Ireland
Protocol Bill, which is sitting in the House of Lords like the
Mary Celeste, as others have said, passes smoothly and
efficiently to reinforce trading fairness for businesses in
Northern Ireland?
Ms Ghani
Northern Ireland plays a full part in all our trading agreements,
and I believe that a Northern Irish machinery exporter is
involved in the Australia deal. My hon. Friend and I have spoken
quite a bit about the Northern Ireland protocol in respect of the
Bill I took through recently, and he will be aware of the
sensitive discussions that have taken place with the
Administration to ensure everything can be as smooth as possible.
If needed, I will always be available to meet my hon. Friend.
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