Scottish Trade and Culture
(Glasgow North) (SNP)
1. What discussions she has had with (a) Cabinet colleagues and
(b) the Scottish Government on promoting Scottish trade and
culture overseas.(905681)
The Secretary of State for Business and Trade ()
I regularly discuss with my Cabinet colleagues promoting trade in
Scotland as well as the United Kingdom as a whole. Just this week
I chaired a meeting of the Board of Trade that focused on trade
promotion across the nations, and held discussions, alongside the
Secretary of State for Scotland, on ensuring that the
Department’s work delivers for the whole UK.
That sounds just wonderful, but I would like to know how the
Secretary of State thinks ending freedom of movement has helped
to promote Scottish trade and culture overseas. Does she think it
is a good thing that musicians in Glasgow North now find it much
more difficult to tour in Europe—one of the most important
markets for traditional Scottish music nowadays —and that their
merchandise can no longer be manufactured in Scotland but must be
manufactured in the countries to which they are travelling
because the customs costs have become so prohibitive?
I welcome the hon. Gentleman’s early-morning snarkiness as he
asks about what we are doing for Scotland. We understand that
there are issues that people have across borders, and my
Department works closely with musicians and with all those who
trade across borders to see what we can do to resolve those
issues. If there are specific cases in the hon. Gentleman’s
constituency, the Department is well placed to help his
constituents with the issues he has described.
Mr Speaker
I call the shadow Secretary of State.
(Torfaen) (Lab)
Scotch whisky is an iconic Scottish export, and it is also hugely
important strategically to the whole UK. Had Ministers completed
the free trade agreement with India by Diwali last year, as was
promised, the 150% tariff that producers of Scotch face when
exporting to India could have been eliminated. Given that the
10th round of talks has recently ended, with an 11th planned
soon, can the Secretary of State tell us whether the free trade
agreement will be completed by Diwali this year?
I have said repeatedly that it is about the deal and not the day.
Every single trade agreement that we negotiate is bespoke to the
specific country and tailored to its economy, to ensure that it
benefits both the UK and the counterpart country. I am happy to
say that the Scotch Whisky Association is very pleased with what
it has been hearing about negotiations from its Indian
counterparts, and we are working hard to make sure that the
industry is successful.
Mr Speaker
I call the Scottish National party spokesperson.
(Gordon) (SNP)
The Scottish seafood industry has been hit with an estimated 50%
increase in the cost of packaging owing to the requirement—thanks
to the form of Brexit chosen by this Government—for export health
certificates with every consignment. Does the Secretary of State
accept that the form of Brexit that was chosen, and in particular
the failure to align in respect of sanitary and phytosanitary
matters, is adding costs to Scotland’s iconic seafood sector at a
time when it can barely afford to absorb such costs?
No, I do not accept that at all. If anything, what is increasing
the costs is what the Scottish Government have been doing in
relation to the deposit return scheme. While complaining about
our divergence between here and the EU, they are trying to split
the UK single market, and we are not going to let them do
that.
Steel Industry: Decarbonisation
(Aberavon) (Lab)
2. What steps she is taking to help the steel industry to
decarbonise.(905682)
The Minister for Industry and Economic Security ( )
The Paris agreement made clear that the steel industry needs to
cut emissions by 93% by 2050, and the Government recognise the
vital role that the steel sector plays in our economy. The 2021
net zero strategy sets out our aim to make the transition to a
low-carbon economy, and reaffirms our commitment to continuing to
work with the steel industry on decarbonisation.
Hundreds of steelworkers gathered in Westminster yesterday to
make absolutely clear their feeling that the Government are not
doing enough, particularly in comparison with competitor nations,
when it comes to investment in the transition to decarbonised
steel. The numbers do not lie. The Government are also worryingly
slow in introducing a carbon border adjustment mechanism. UK
Steel has estimated that nearly 23 million tonnes of non-EU steel
could flood the UK market if the UK fails to introduce its own
carbon border adjustment mechanism at the same time as the EU in
2026. When will we see the Government stepping up and investing
in green steel as is being done in competitor countries, and when
can we expect the introduction of a British CBAM?
Ms Ghani
We have been supporting the steel industry, with more than £1
billion available in grants to help decarbonise the sector and
the provision of more than £730 million to cover energy costs
since 2013. The CBAM is clearly an issue for many countries, not
just ours. We have just finished one consultation, and will
produce a response in due course. A transitional reporting phase
is due to start in October, with full introduction in 2026. The
EU is still developing details about CBAM implementation, and has
a consultation open on proposed reporting requirements until 11
July. I know that the hon. Member chairs the all-party
parliamentary group for steel and metal related industries, and I
urge him to ensure that all businesses express their views as
strongly as possible. I think we are meeting on Monday to make
sure that we can provide a substantial response.
Mr Speaker
I call the shadow Minister.
(Sefton Central) (Lab)
The Minister said that she recognises the vital role that steel
plays in this country, but the UK is the only country in the G20
where steel production is falling. It is also the only G7 country
whose Government do not insist on using domestically produced
steel in defence contracts. Meanwhile, UK steel producers pay 62%
more than their German counterparts for electricity. Labour’s £3
billion green steel plan will give our industry the bright future
that other countries are offering their steel sectors. Labour
believes in our steel; why do this Government not?
Ms Ghani
I am not sure where Labour Members will get the money to fund
that programme of work. I have not even got to the end of reading
this paper but they will probably U-turn by the time I do, so I
am not sure how sensible it is going to be. We have provided more
than £1 billion for decarbonisation, unprecedented support to
help with energy costs, and just recently, there was fantastic
news from Celsa, when it was able to repay a Government loan of
£30 million that we provided to them, sensibly spending
taxpayers’ money. There is and always has been support available.
When it comes to procurement, it is absolutely right that we do
everything we can to make sure that we have UK firms procuring UK
steel.
Food Prices
(Linlithgow and East Falkirk)
(SNP)
3. What recent assessment she has made of the potential impact of
her Department’s trade policies on food prices.(905683)
The Minister for International Trade ()
We recognise the important role that trade can play in improving
food security. That is why our trade policy aims to help people
to access good-quality and good-value food. Our free trade
agreements help to remove market access barriers, supporting our
importers and exporters. The new developing countries trading
scheme, for example, reduces tariffs on nearly £1.4 billion-worth
of agriculture goods, and we work with international partners,
including at the World Trade Organisation, to remove trade
barriers and strengthen the UK’s global food supply.
I am grateful to the Minister for his answer, but Melissa Leach,
the director of the Institute of Development Studies, has spoken
about the need to increase access to affordable, nutritious food.
She said:
“Over the last decade, charities have stepped in to plug the gaps
left by the state but this is not an acceptable or sustainable
way to address the growing prevalence of hunger”.
Does the Minister accept that his Government’s commitment to
Brexit has led to increasing prices of food that is imported and
has contributed to food poverty in the UK?
The hon. Gentleman will be well aware that food price inflation
is not unique to the UK; it is a global phenomenon that we all
face. Actually, food price inflation peaked at 19.2% in the EU
and at 19.2% in the UK, so we are facing the same problems.
However, we have provided more than £94 billion-worth of support
precisely to help the most vulnerable in society.
(Buckingham) (Con)
There are many factors impacting food inflation, not least
increasing global input costs, but surely the most important
thing that my hon. Friend’s Department can do to shore up British
agriculture and have a positive impact on food prices is to carry
on, full speed ahead, getting the new trade deals that will see
British first-class produce sold as a premium product
worldwide.
My hon. Friend is absolutely correct. It is really important that
we have support across the House for these important trade deals.
They are good for the British economy, particularly good for
British farmers, and good for prices in the UK. I hope, at some
point, to see the Opposition parties supporting one of these
important deals, which are transparently in the interests of
British consumers in every nation and region of the United
Kingdom.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
Since 2019, food prices in the UK have rocketed by 26%, a figure
that is among the highest in the G7, yet the Prime Minister’s
plans for new border checks on highly perishable food from Europe
could push prices up again. A veterinary agreement would cut the
cost of bringing food into Britain from Europe. Given that many
families are already struggling to put enough food on the table
and that every significant business organisation supports a
veterinary agreement with the EU, why will the Secretary of State
not take the sensible and pragmatic step of starting negotiations
for such an agreement?
The hon. Gentleman will be aware that discussions are happening
on an ongoing basis with the Foreign, Commonwealth and
Development Office about the trade and co-operation agreement and
other matters. We have very constructive dialogue with our EU
partners. In fact, the Secretary of State and I had a meeting
with the EU ambassadors just yesterday.
As for our achievements since leaving the EU, it is important to
stress one thing: we have been laser-focused on making sure that
the benefits are for the British consumers. We have got rid of
thousands and thousands of tariffs. We have liberalised tariffs,
reduced them or eliminated them altogether. For example, to
compare us with the EU, 27% of the EU’s current external tariffs
are zero-rated, whereas the proportion for the UK is 47%. We are
significantly reducing tariffs, which is in the best interests of
the British consumer, as a result of leaving the European
Union.
Trade with Africa
(Tewkesbury) (Con)
4. What steps she is taking to increase trade with African
countries.(905684)
The Minister for International Trade ()
To increase and grow trade with Africa, we are using our nine
trade agreements, covering 18 African nations. In April 2024, the
Prime Minister will host the second UK-Africa investment summit
to showcase investment opportunities and advance two-way trade.
Just this month, we launched the developing countries trading
scheme, which covers 65 countries, including 37 African
countries.
Mr Robertson
That is all good news, particularly the developing countries
trading scheme. I was recently in Ethiopia for a trade visit. Can
the Minister tell me how the developing countries trading scheme,
in particular, will help Ethiopia?
I thank my hon. Friend and constituency neighbour for the work he
does as the Prime Minister’s trade envoy to Ethiopia and many
other countries. I was also in Ethiopia recently, and many people
were praising my hon. Friend and his work. He is right that the
developing countries trading scheme will reduce tariffs, which is
a win-win both for developing countries, making it easier and
cheaper for them to export to the UK, and for UK consumers
because it will reduce prices. It is not just a matter of having
the deal; we are laser-focused on making sure the benefits of the
deal are realised, with more than 100 Department for Business and
Trade officials working in Africa to make sure we get the full
benefit of these deals.
(Westmorland and Lonsdale) (LD)
As the Government rightly consider new trade deals with other
countries, what lessons will they learn from the hideous mistakes
made in the New Zealand and Australia trade deals? The right hon.
Member for Camborne and Redruth (), a former Secretary of
State for Environment, Food and Rural Affairs, rightly said that
they are bad deals for Britain. Given that British farmers are so
angry with this Government, having been thrown under the bus on
animal welfare and on environmental and cost issues, will he
learn lessons from those mistakes and make sure British farmers
are protected, and that environmental and animal welfare
standards are protected, too?
I am, quite frankly, astounded by the hon. Gentleman’s comments.
He is well aware, as I have said repeatedly and is widely
acknowledged, that the trade deals we have developed, including
with Australia and New Zealand, are economically beneficial right
across the UK, including in his constituency. If he does not wish
to support policies that are in the best economic interests of
his constituency, that is something his constituents probably
need to recognise come the next election.
Israel: Free Trade Agreement
(West Bromwich East)
(Con)
5. What progress she has made on negotiating a bilateral free
trade agreement with Israel.(905685)
The Minister for International Trade ()
We are continuing to make progress towards an upgraded UK-Israel
free trade agreement, focused on services, procurement and
innovation, and we concluded the second round of negotiations on
17 May. As two service-driven economies, this negotiation is an
excellent opportunity to build on our existing goods-focused
agreement, particularly to boost trade in services with an
innovative, high-tech nation such as Israel.
The UK’s trade with Israel increased by 42% in 2022 compared with
2021, and it is valued at £7.2 billion. Israel is a key trade and
security partner in the region, and it is a world leader in many
areas. Can the Minister update the House on the Department’s
progress on the trade aims outlined in the 2030 road map for
UK-Israel bilateral relations, namely the establishment of a
UK-Israel free trade agreement, the Britain-Israel Investment
Group and a UK-Israel innovation and investment summit?
My hon. Friend is all over the numbers, which saves me from
repeating them. The benefits of the trade agreement are obvious,
and we continue to strengthen our trade relationship with Israel,
which is a valued friend and ally. As outlined in the 2030 road
map for UK-Israel relations, a service-based free trade agreement
between our two nations will act as a cornerstone of this
relationship in years to come. As such, we are pleased to have
successfully concluded the second round of negotiations in London
just last month, and we look forward to holding further talks in
due course.
(Strangford) (DUP)
I thank the Minister for that very positive response. We in
Northern Ireland are keen to ensure that the bilateral trade
agreements benefit our companies as well. Some people and
councils across this great United Kingdom of Great Britain and
Northern Ireland wish to downgrade Israel’s goods. I know that
the Minister and our Government want to do the very opposite.
Will the Minister tell the House what he is prepared to do to
ensure that Israeli goods are promoted right across this great
United Kingdom of Great Britain and Northern Ireland?
Absolutely. Israel is already a really important trading partner,
right across the UK, and it will continue to be so. As we
negotiate this deal, it is important that we focus on the areas
of greatest opportunity. Once the deal is done—of course, this is
an upgrade—we will be actively working to make sure that the
communications about the benefits of the deal are understood by
everybody. We will be working with various bodies and groups,
including the devolved Administrations and bodies, to make sure
that we take full benefit from these deals. Signing the deal is
one thing, but taking and making the best of the opportunities is
another—we will be working on that as well.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(Gloucester) (Con)
6. What steps her Department is taking to ensure that the UK’s
accession to the comprehensive and progressive agreement for
trans-Pacific partnership increases economic opportunities for
businesses and consumers.(905686)
The Secretary of State for Business and Trade ()
The CPTPP will be benefiting every nation and region of our
country. In particular, UK firms will enjoy enhanced access to
Malaysia for the first time, including a reduction on tariffs on
whisky sales to Malaysia of 80% within 10 years, improving
prospects for trade and opening up opportunities in an economy
worth £330 billion.
We should all congratulate the Secretary of State and her team on
concluding the CPTPP negotiations, and it should be ratified any
time now in New Zealand. Of course the most important new element
of the trans-Pacific partnership is this first ever free trade
agreement with our long-term friend and ally, Malaysia. Whether
in cars, cyber, chocolates, vaccines or legal and other services,
the opportunities for British exporters are considerable and, of
course, the dividends from our investment there, such as the new
Smith & Nephew plant, will also help our balance of payments.
Does my right hon. Friend therefore agree that there is a great
opportunity for us and Malaysia to work together on spreading the
word, through our regional offices, the UK-ASEAN Business Council
and every other means possible, to make sure that businesses in
both countries are absolutely aware of the opportunities that the
deal offers?
I thank my hon. Friend for his question. He will be pleased to
know that Ministers in the Department met their counterpart, the
Malaysian export Minister, this very week. A lot is going on
between our two countries. The Department works closely with the
UK-ASEAN Business Council, and our first bilateral joint economic
trade committee with Malaysia is expected later this year. It
will help promote the bilateral trade and investment and economic
co-operation that he rightly champions as the trade envoy to that
country. He will know that I will be signing the CPTPP agreement
next month in New Zealand.
Mr Speaker
I call the shadow Minister.
(Brentford and Isleworth)
(Lab)
Clearly, it is vital that British businesses that want to export
can access the benefits of trade deals. However, the Government
admitted to me in a written answer that they have not modelled
the benefits of the CPTPP for our hard-pressed manufacturing
businesses, so will the Minister tell me how many UK
manufacturers will benefit from the rules of origin requirements
under the CPTPP?
The hon. Lady will know that we do not count the number of
companies specifically in our modelling. The modelling happens at
a very high level—it is macro-level modelling. What she should
know is that rules of origin will benefit people who export to
that region, particularly auto manufacturers, who are very
pleased about the deal.
Israel: Free Trade Agreement
(Kilmarnock and Loudoun)
(SNP)
7. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with the UK’s obligations in
section 5 of United Nations Security Council resolution
2334.(905689)
(Middlesbrough) (Lab)
12. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with international
law.(905697)
(Nottingham East) (Lab)
14. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with the UK’s obligations in
section 5 of United Nations Security Council resolution
2334.(905699)
The Minister for International Trade ()
The UK’s position on settlements is clear: they are illegal under
international law, present an obstacle to peace and threaten the
physical viability of a two-state solution, as set out in the UN
Security Council resolution 2334 and restated recently by the
UNSC presidential statement in February 2023. We repeatedly call
on Israel to abide by its obligations under international law and
have a regular dialogue with Israel on legal issues relating to
the occupation.
The Minister is clearly aware then that resolution 2334 states
that countries must
“distinguish, in their relevant dealings, between the territory
of the State of Israel and the territories occupied since
1967.”
I welcome his comments confirming that the Government’s belief is
that the settlements are illegal under international law. How
will the Government ensure that goods and services from these
illegal settlements—in effect, stolen land—are excluded from the
benefits of a free trade agreement?
Under our existing agreement, Israeli goods from the state of
Israel receive tariff preferences under the UK-Israel partnership
agreement. Palestinian goods, from the Occupied Palestinian
Territories, benefit from trade preferences in the interim
UK-Palestinian Authority bilateral agreement. To be clear, only
goods originating from the state of Israel are covered by our
current FTA, and that will not change in the upgraded FTA.
Last week, it was reported by The Jerusalem Post that Israel’s
National Security Minister Ben-Gvir, who just 15 years ago was
convicted of inciting racism and supporting a terrorist
organisation, had told settlers in the illegal west bank outpost
of Evyatar:
“The Land of Israel must be settled and at the same time as the
settlement of the Land a military operation must be
launched.”
He then spoke of demolitions and the killing of “thousands” of
Palestinians, in order to “fulfil our great mission.” Will the
Minister condemn those genocidal remarks about Palestinians, and
ensure that any trade deal with Israel explicitly bans UK trade
with those illegal settlements and makes binding regulations for
companies to uphold human rights standards?
The hon. Gentleman will be aware that the UK is a leading
advocate of human rights around the world. We have very frank
conversations with our allies and we have frank and honest
discussions across Government. In answer to the trade element of
his question, as I said previously, only goods originating in the
state of Israel are covered by our current FTA, and that will not
change under the upgraded FTA.
I welcome the Minister’s restatement of Government policy in his
previous answer, but if the UK signs a trade deal without a
territorial clause defining the border between Israel and
Palestine, it will be seen in legal terms as equivalent to
letting Israel decide by default to include its settlements in
the Occupied Palestinian Territories as part of Israel. Is the
Minister aware that that risks a situation where, in effect, the
UK recognises illegal settlements in the west bank as part of
Israel, which is counter to the Government’s stated policy?
I refer the hon. Lady to the answer I gave a moment ago, but I
wish to reiterate that it is long-standing UK foreign policy that
Israeli settlements beyond the 1967 boundaries are illegal.
European Single Market: UK Withdrawal
(Kirkcaldy and Cowdenbeath)
(Alba)
8. What recent assessment her Department has made of the
potential effect of the UK’s withdrawal from the European single
market on business and trade.(905690)
The Minister for Industry and Economic Security ( )
Having regained our regulatory sovereignty now that we have left
the European Union, we are now able to ensure that our regulation
is tailored to the UK economy, supports our businesses and
protects our consumers. Having left the single market, we can
focus on UK trade with the world, where total trade is up 24%, so
the answer to his question is that the effect is that total trade
is up.
Resilient and effective routes to market are essential for trade.
The congestion that is currently being experienced at Dover is a
significant barrier to effective trade. We can add to that the
HGV miles from Scotland to the south-east and the impact on the
quantities carried, on perishables and on costs, never mind the
environmental impact. Will the Minister meet me to discuss how we
reintroduce direct links from Scotland to mainland Europe and
ensure trade is friction-free from Scotland?
Ms Ghani
I do not think the hon. Member heard my answer: trade is up. The
reality is that this scaremongering just has to stop. The
scaremongering is basically a cover for petty nationalism, and I
would ask him to be passionate about the market that matters,
which is between Scotland and England.
rose—
Ms Ghani
If the hon. Member was passionate about Scottish businesses and
Scottish jobs, he would be passionate about the single market
that matters.
Neonatal Care
(Thornbury and Yate) (Con)
9. What steps she is taking to implement the Neonatal Care (Leave
and Pay) Act 2023.(905694)
The Parliamentary Under-Secretary of State for Business and Trade
()
I thank my hon. Friend for being the foremost parliamentary
champion for this important cause. The Neonatal Care (Leave and
Pay) Act 2023 will give eligible employed parents up to 12 weeks
of extra paid leave if their new baby is admitted to neonatal
care, providing extra support at a very worrying time. We are
keen to introduce the new entitlements as quickly as
possible.
I thank the Minister for that answer and his Department for its
work on delivering the Neonatal Care (Leave and Pay) Act. It is
fantastic news for so many parents across the country. We all
want to see this entitlement delivered as quickly as possible. It
really should be possible for the Department to deliver it for
April next year, as there is time to deliver the required
statutory instruments and guidance. There are examples of where
His Majesty’s Revenue and Customs has been able to move forward
quickly to deliver such changes. Will the Minister update the
House on his work to drive through this important change, so that
parents do not have to wait a second longer than necessary for
this entitlement, which will support them during the most
difficult and dark times in their life?
My hon. Friend is absolutely right to press us on this. We need
to do this as quickly as possible and we are keen, as I have
said, to do that. Similar work does require updating HMRC IT
systems and parliamentary consideration is, of course, required
for secondary legislation. There are seven pieces of secondary
legislation, and support is needed for employers and payroll
providers to implement the changes. We cannot introduce this
mid-year; it has to be at the start of the year. I therefore
think it very unlikely that we will be able to do that before
April 2025.
Battery Sector
(Blyth Valley) (Con)
10. What steps her Department is taking to support the battery
sector.(905695)
The Secretary of State for Business and Trade ()
I recently visited Williams Advanced Engineering, an excellent
example of British engineers working at the cutting edge of
battery technology, including on projects benefiting from the
Faraday battery challenge. The Government’s £541 million Faraday
battery challenge has supported more than 140 organisations
working across the UK, attracting over £400 million in
co-investment, and enabled 500 researchers across more than 25
universities to improve and develop battery technologies.
We know that the United Kingdom needs more battery production
facilities in order to achieve net zero and build an automotive
industry that is fit for the future. On the Blyth estuary, we
have the best site in the UK for high-volume battery
manufacturing, with green power supplies, a deep-water port, and
a talented and willing workforce. Does the Minister agree that it
is vital that this Government grasp the opportunity and do all
that they can to bring much-needed new green jobs to south-east
Northumberland?
Yes, of course, I do agree with my hon. Friend. I know that Blyth
has an excellent location for a gigafactory. I just want him to
know, as he represents that constituency, that we continue to
work closely with the local authority to secure the best outcome
for that site.
(Huddersfield)
(Lab/Co-op)
Will the Secretary of State be slightly cautious about a
battery-driven future? I recently visited JCB, which has
developed a hydrogen combustion engine that is working well with
heavy vehicles. Hydrogen is moving very fast indeed. Will she
encourage the production of hydrogen and visit JCB just to see
the really innovative work that it is doing? Will she stop the
Transport Minister in the House of Lords dissing hydrogen as
ineffective?
Far be it from me to stop our noble Friends in the other place
from doing what they think is right. None the less, I do agree
with the hon. Gentleman. My view is, let a thousand flowers
bloom. Hydrogen is one of the viable ways of helping us to get to
net zero, and the Government are looking at all possible options
to make sure that we support the cutting-edge technology that
will get us to our green transition.
Exports to the EU
(Kettering) (Con)
11. What the value of exports to the EU was in (a) 2016, (b) 2019
and (c) the last year for which data is available.(905696)
The Parliamentary Under-Secretary of State for Business and Trade
()
The value of UK exports, measured in current prices, to the
EU—including goods and services—was £247 billion in 2016, £298
billion in 2019, and £340 billion in 2022. The EU remains the
UK’s largest export market, receiving 42% of UK exports in
2022.
Mr Hollobone
That is all very interesting, because, during the Brexit
referendum, “Project Fear” told us that if we left the EU,
millions of people would lose their jobs, our exports would
collapse, and the economy would go into freefall. Here in 2023,
with us outside the European Union, employment is at record highs
and unemployment at record lows, the eurozone is in recession and
we are not, and our exports to the EU are at record levels. Is it
not now demonstrably true that we are always going to be better
off out?
As Churchill once said, the pessimist sees a crisis in every
opportunity, but the optimist, which my hon. Friend is, sees an
opportunity in every crisis. The UK’s total exports have
recovered to pre-pandemic levels measured against 2018. In 2022
UK exports were £815 billion, up 21% in current prices and up
0.5% once adjusted for inflation. There is no doubt that UK
exports are excelling and will continue to do so.
Mr Speaker
I call the shadow Minister.
(Feltham and Heston)
(Lab/Co-op)
The truth is that in the year stated, exports to the EU fell as a
proportion of total trade. Last month it was not inflation that
halved, but exports of fruit to the EU. The British Chambers of
Commerce has reported that more small and medium-sized
enterprises are seeing exports falling than rising, and Britain
has the lowest export rates in the G7. When a business tells me
that it used to take three days for its products to reach shelves
in Germany and now it takes 30, is it not fair to conclude that
the Government have failed on the economy, have no plan to make
Brexit work and are making businesses pay the price?
That backs up my comment on pessimism; the hon. Lady is
cherry-picking the worst possible figures she can find. In my
conversations this week at the OECD conference on SMEs, nations
around the world were crying out to do business with the UK, and
indeed are doing so. Of course we are trying to tackle market
barriers where they exist. We are leading a whole-of-Government
effort to remove a hit list of 100 market access barriers,
including those arising in Europe, to open up opportunity to UK
exporters worth more than £20 billion. The most recent
statistics, for the year ending March 2023, show that 45 barriers
were resolved in Europe in that year, compared with 41 in the
previous year.
Exports: EU Withdrawal
(East Dunbartonshire)
(SNP)
13. What recent assessment her Department has made of trends in
the level of goods exports since the UK’s withdrawal from the
EU.(905698)
The Parliamentary Under-Secretary of State for Business and Trade
()
On a similar theme to my previous answer, the UK’s total exports
have recovered to pre-pandemic levels measured against 2018. In
2022, UK exports were £815 billion, up 21% in current prices and
by 0.5% once adjusted for inflation.
I thank the Minister for that answer. However, since the UK left
the European Union its trade surplus with the rest of the world
has declined from £46 billion to £5 billion. Was it this
Government’s goal to wipe out the UK’s trade surplus when they
committed to leaving the European Union?
I say again that UK trade with the EU has recovered to
pre-pandemic levels when measured in current prices, worth £772
billion in 2022, 14% higher in current prices than in 2018. We
are making significant progress, not just with the European Union
but with the rest of the world. We see our place in the world as
being able to trade with the entire world, not just focusing
entirely on the EU.
Steel Industry
(Newport East) (Lab)
15. What steps she is taking to help support the steel
industry.(905701)
The Minister for Industry and Economic Security ( )
The Government are actively engaging with the steel industry for
a sustainable future, and my right hon. Friend the Business
Secretary recently visited Tata and British Steel to see work
that is under way. Since 2020 the Government have provided some
£35 million in direct funding to support steel producers, on top
of the hundreds of millions of pounds in energy price relief for
the sector since 2013.
I echo the earlier comments of my hon. Friend the Member for
Aberavon () on the greater need for
support to help our steel sector decarbonise. Steelworkers from
my constituency rallied in Parliament Square yesterday, calling
for the Government to support our steel sector, yet they will
have heard the Prime Minister’s poor response to my hon. Friend
the Member for Ogmore () at Prime Minister’s
questions, when he merely referred to pre-existing packages of
support and funding that was not exclusive to steel in the first
place. When will the Government accept the scale of the challenge
and commit to helping?
Ms Ghani
We accept the scale of the challenge; it is a global challenge to
decarbonise the sector and many countries are feeling it.
However, a potential £1 billion in support is not a small
measure—it is a large measure. Dealing with the procurement
process to ensure that we have UK contractors securing UK steel
in their programmes of work is not a small task, nor is dealing
with energy prices. We have provided more than £730 million. When
the sector needs support and we know it is a valid use of
taxpayers’ money, we have stepped in, such as with the more than
£30 million in Government loans to Celsa Steel in 2020. That
secured 1,800 jobs, and the money has been returned to the
taxpayer. We are more than happy to work with the hon. Lady and
all Members who have steel firms in their constituencies, but we
are going to provide steady support for the long term.
Cornish Businesses
(South East Cornwall)
(Con)
16. What steps her Department is taking to help reduce potential
barriers to trade for Cornish businesses.(905702)
The Minister for Industry and Economic Security ( )
We are targeting a global hit list of barriers whose removal will
deliver massive new opportunities for UK businesses throughout
the country, including in Cornwall. It is estimated that that
will be worth more than £20 billion over five years. The
Government are working to open up new markets, including for
Cornish farmers. British lamb is now being exported to America
for the first time in over 20 years, and British beef is being
sent to the Philippines.
Mrs Murray
Many of the businesses in my constituency pay an additional tax
by way of a toll to cross the Tamar, which can run into many
thousands of pounds for them. What representations has the
Department made to the Department for Transport to have that
additional tax, which can make it harder to compete with firms in
the rest of the UK, removed?
Ms Ghani
I thank my hon. Friend for bringing that to my attention. She is
such a powerful voice for Cornwall. I am surprised that the
Department for Transport has not yet buckled, because I know what
a champion she is for her constituency and the region. I will ask
my team to engage on this matter with their counterparts at the
DFT and the Department for Levelling Up, Housing and Communities.
I know that she will not stop until she gets what she deserves
for her constituents, so I am more than happy to give the
strength to her elbow.
Trade Deals
(Bosworth) (Con)
17. How many trade deals have been agreed since 2019.(905703)
The Secretary of State for Business and Trade ()
We have secured trade deals with 70 countries, including the EU,
since 2019—partners that accounted for £1.1 trillion of UK
bilateral trade in 2022. As I mentioned earlier, in March we
concluded negotiations with the comprehensive and progressive
agreement for trans-Pacific partnership, the UK’s biggest trade
deal since Brexit. In addition, we have signed five new
comprehensive trade deals tailored to the UK—those with Japan,
Australia and New Zealand; a groundbreaking digital economy
agreement with Singapore, and a digital trade agreement with
Ukraine—as well as the programme of 63 non-EU continuity
agreements.
Dr Evans
The post-Brexit developing countries trading scheme, which was
alluded to in earlier questions, covers 65 developing countries
and 3.3 billion people. Will my right hon. Friend spell out
exactly what the benefits are for businesses and consumers in
Hinckley and Bosworth, and the UK, and can she confirm that that
is a more generous scheme than the EU scheme that we left?
I can confirm that our offer is now more generous than what the
EU offers in terms of market access—for example, we allow the
least developed countries to source raw materials from other
markets and still import goods tariff-free. Overall, my hon.
Friend’s constituents will be pleased to know that the trade
preferences in the developing countries trading scheme reduce
import costs by more than £770 million a year. That is key
because it helps to reduce prices and increase choice for UK
businesses and consumers, and to tackle inflation, particularly
for the highest-sold items such as clothes and food.
Trade with European Countries
(Manchester, Withington)
(Lab)
18. What steps she is taking to increase trade with European
countries.(905704)
The Parliamentary Under-Secretary of State for Business and Trade
()
Europe remains a vital export destination for British businesses,
with exports of £401 billion in 2022, an increase of 26% on the
previous year in current prices. Only this week, I attended the
OECD small and medium-sized enterprise conference, which dealt
largely with international barriers to trade. We are determined
to remove market barriers to make it easier, particularly for
SMEs, to trade across borders.
On the subject of barriers to trade, not only is our
world-leading cultural sector valuable in itself for our soft
power, but it is an important part of our export trade. But our
musicians face unnecessary red tape when trying to tour Europe.
We need an EU-wide visa waiver for touring artists. The Secretary
of State said earlier that her Department “works closely with
musicians”, so what is it actually doing to resolve this
problem?
I know that my colleagues at the Department for Culture, Media
and Sport are working hard with our European counterparts to try
to ease the difficulties in that area—we recognise it as a
problem. Many positive things are happening in current trade with
the EU. Indeed, in 2022, the north-west—the hon. Gentleman’s
region—exported £33 billion-worth of goods and £24.5
billion-worth of services, which is the area he is referring to.
The north-west is the third largest area in the country for
services exported to the EU.
Market Access to US
(Slough) (Lab)
19. What progress she has made on improving market access to the
US.(905705)
The Secretary of State for Business and Trade ()
As part of the Atlantic declaration, we launched negotiations on
a critical minerals agreement with the US, which will secure
market access for a strategically important sector of the UK
economy. My Department has secured tariff-free imports of UK
steel and aluminium into the US, supporting 80,000 jobs in UK
supply chains. We have removed the 25-year US ban on UK lamb,
opening the market to 300 million US customers, and have signed
five trade and economic development memorandums of understanding
with individual US states, which imported £4.6 billion-worth of
goods from the UK in 2022, most recently last week with Utah.
Mr Dhesi
In their 2019 election manifesto, the Conservatives declared to
the British people:
“Our goals for British trade are… ambitious. We aim to have 80
per cent of UK trade covered by free trade agreements within the
next three years, starting with the USA”.
However, there has been abject failure, with a free trade
agreement nowhere in sight, and instead of coming clean on their
incompetence, laughingly, Tories are now lining up to blame the
Biden Administration for the lack of progress. Will the Secretary
of State concede that the Government’s failure to negotiate an
FTA with the USA has potentially locked out British businesses
from vital new markets created by the US Inflation Reduction
Act?
I am afraid that is not the case at all. If the hon. Gentleman
looks at the detail of the Atlantic declaration, he will see that
we are co-operating very closely with the US. On his point about
our 2019 manifesto, we did say that that was what we were going
to do, because the Administration at the time were willing. This
Administration are not. It has nothing to do with the UK. They
are not negotiating any FTAs with any countries. That is what the
US trade representative has said to me in many meetings, and they
have said that to EU counterparts.
If what the hon. Gentleman suggests is true, he is basically
saying that every Government should be bound by their
predecessor, in which case, should anything happen, he is saying
that he agrees with everything this Government are doing and
nothing should change. What we have negotiated with the Atlantic
declaration is a success, and he should be praising this
Government for achieving something so monumental.
Sir (Bournemouth West) (Con)
I draw the House’s attention to my interest as the Prime
Minister’s trade envoy to the United States for regional trade
and investment. Our programme of MOUs with states in the United
States is a major driver of improving market access and trade
between the UK and the US. As I embark on a visit to Florida to
advance our objectives there, will my right hon. Friend use this
opportunity to reaffirm not just that we want to enter into
multiple MOUs with states in the United States, but that we want
British businesses to step up to the opportunities they create
and we want to create the mechanisms to allow
business-to-business delivery?
Absolutely, I can affirm that. My right hon. Friend makes a very
good point about the MOUs. The Opposition would like to present a
false story about us not getting along with our US counterparts.
The fact that so many states, knowing that their Federal
Government are not negotiating an FTA, have decided to step up
and negotiate MOUs with us shows that this country is still
attracting a large amount of investment and co-operation from our
international partners. We want British businesses to be able to
take part in that, and we are doing everything we can to help
them use the MOUs.
Topical Questions
(Nottingham East) (Lab)
T1. If she will make a statement on her departmental
responsibilities.(905708)
The Secretary of State for Business and Trade ()
Last week, I was pleased to lead discussions with international
partners and businesses at the Ukraine recovery conference and
welcomed the Prime Minister of Ukraine and First Deputy Prime
Minister to Mansion House, alongside over 150 companies,
showcasing how UK companies in our private sector can use their
ingenuity and expertise to support the reconstruction of
Ukraine.
I was very proud to announce that the UK Government have backed a
£26.3 million equivalent loan, which is an unprecedented
transaction; the Business Bridge Ukraine platform, matching
Ukrainian businesses with complementary partners; the UK-Ukraine
tech bridge, to bring together UK and Ukrainian tech businesses
to harness opportunities for innovation and collaboration; and
the London conference framework on war risk insurance.
Recent research by a former chief competition economist to the
European Commission—shared with me by Unite the union—estimates
that average UK mobile phone bills could rise by up to £300 a
year in the case of a merger between Three and Vodafone. Is the
Secretary of State aware of that risk, and will her Department be
taking any action to prevent such a merger, which would be
disastrous for competition in the mobile network operator
sector?
The hon. Lady will know that we have an independent regulator,
the Competition and Markets Authority, which would look at cases
such as the one she raises and make a call on whether it would be
harmful or beneficial to the UK economy. I trust the CMA—it has
been doing a good job so far—and I look forward to seeing its
read-outs on forthcoming mergers and proposals by large
businesses in our country.
(Tewkesbury) (Con)
T3. Morocco is very much looking to do more trade and business
with the United Kingdom. What are the Government doing to enable
that country to do so?(905710)
The Minister for International Trade ()
The UK is absolutely committed to enhancing trade with Morocco.
In 2022 we did about £3.1 billion-worth of bilateral trade—up
nearly 50% on 2021—and we are using our association agreement
with Morocco to boost that even further. In February I visited
Morocco and met my counterpart to discuss how we can maximise
trade, including by tackling barriers in priority areas such as
education, renewable energy and infrastructure. We are also
supporting British businesses to take advantage of the
significant opportunities in Morocco, including through £4.5
billion of available finance through the excellent UK Export
Finance.
Mr Speaker
I call the shadow Secretary of State.
(Stalybridge and Hyde)
(Lab/Co-op)
It is now over 12 months since the audit reform Bill was promised
in what was then the Queen’s Speech, and it is over two years
since the Business Department’s final consultation on these
matters closed. There is widespread agreement on the need for
reform, which began following the devastating collapse of
Carillion five years ago, yet the draft Bill has not even been
published, despite Parliament regularly rising early due to the
Government’s light agenda. Does the Secretary of State support
reform, and does she accept the recommendations of the Kingman
review, the Brydon review and the CMA market study? If she does,
when will we finally see some action?
Mr Speaker
Can I say to the Front Benchers that a lot of Members are
standing? These are topical questions, which are meant to be
short. If you want a long question, come in early, please. Help
me to help our Back Benchers.
The Parliamentary Under-Secretary of State for Business and Trade
()
We do support reform and are keen to take forward primary
legislation when parliamentary time allows. In the meantime,
there are measures that we can take through secondary
legislation, which we are taking forward. We are also looking to
take forward insolvency reform, which is something else that we
committed to do.
Greg Smith (Buckingham) (Con)
T4. The Abraham accords have ushered in unparalleled
opportunities by lowering trade barriers in the middle east, so
how can my hon. Friend maximise the trade potential of the 2030
road map for UK-Israel bilateral relations by engaging with the
wider region?(905711)
Through our road map, the UK and Israel reaffirmed the historical
significance of the Abraham accords—which have the potential to
bring about advancements to security, co-existence, peace and
prosperity for the region—and our commitment to work together to
deepen and expand those developments, building on the progress of
the Negev summit in March 2022. Through the Britain-Israeli
investment group, we will also combine UK and Israeli expertise
to help solve regional technology and sustainability issues right
across the world.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
This week, the European Council adopted the EU’s free trade
agreement with New Zealand, which includes dedicated sustainable
food systems chapters, a dedicated trade and gender equality
article, and a provision on trade and fossil fuel subsidies
reforms. Can the Secretary of State explain why our trade deal
with New Zealand, if it is so good, fell so far short on those
issues?
I think the hon. Gentleman will find that, actually, the trade
deal we negotiated with New Zealand makes things cheaper for our
consumers, not more expensive, it is less protectionist and it is
helping to improve relations between us and New Zealand. I
disagree with his assessment of the EU-New Zealand free trade
agreement: we looked at it and were actually quite pleased with
what we got.
(Stroud) (Con)
I am concerned that the UK is being left behind on hydrogen
internal combustion engines. The EU and the USA are now
recognising hydrogen combustion engines as zero emission, but the
UK is refusing, which means that the automotive transformation
fund for industrialising the technology is not available. I am
working with brilliant companies such as BorgWarner in Stonehouse
and the Renewable Hydrogen Alliance to raise this issue. I have
spoken to the Secretary of State for Transport and I am raising
it with the Prime Minister; I hope that my right hon. Friend the
Secretary of State for Business and Trade will use her brilliant
brains on this matter too.
The Minister for Industry and Economic Security ( )
I hope that my hon. Friend will allow me to use my brain to help
unlock this with the Department for Transport. We have the
automotive transformation fund and the Advanced Propulsion
Centre, so we are doing a huge amount of work in this space to
ensure that we are not only on the cutting edge of electric
zero-emission vehicles, but looking at what the opportunities are
for hydrogen. We do not want to be left behind anywhere in this
space, but we do need to align ourselves with the rest of our
Departments, and I will do so.
(Motherwell and Wishaw)
(SNP)
T2. The Fresh Produce Consortium, which represents 70% of the
UK’s fresh produce supply chain, recently warned that post-Brexit
import charges will hit small and medium-sized enterprises the
hardest. Does the Minister accept that the post-Brexit trade
deals are driving up already soaring food prices, as well as
hitting small food producers at a time when they are facing real
difficulties as a result of increased operating
costs?(905709)
It should be transparently clear that the UK is conducting trade
deals that are in the UK’s economic interests. That is the
criterion: we would not do them if they were not in the UK’s
interests. We are therefore working really hard, with a
particular focus on opportunities for SMEs to trade not only with
the EU but right around the world, where there are immense
opportunities for further trade. We will continue to pursue
opportunities in south Asia, Africa and South America—all over
the world—where we have not taken full advantage of those
opportunities. This will benefit many SMEs, including food and
beverage producers, in the long term.
(Gloucester) (Con)
Over a third of the value of every Airbus sold in the world comes
from the United Kingdom’s aerospace manufacturing—whether it is
wings, engines, landing gear or other avionics—but all of the
Airbus sales are recorded in international statistics as exports
from France because the final take-off is from Toulouse. What can
the Department do to try to make sure that the value of these
exports, especially to the fast-growing Asia-Pacific region, is
recognised as being partly from the UK?
Ms Ghani
This is a great opportunity to talk about Airbus’s 500-plane deal
with Indian airline IndiGo. It is the largest aviation deal in
history, and it has been done on our watch. We are providing the
certainty that businesses need in order to go out and confidently
secure such contracts. A lot of the jobs will be in the UK, but I
will take away what my hon. Friend said, because we want to be
able to show precisely the level of investment in the UK and the
number of jobs that are created by this deal.
Mr Speaker
Order. I remind Ministers that they should be speaking to me, not
to the Back Benches.
(Glasgow South West)
(SNP)
T5. I welcome the Scottish Government’s recent announcement that
workers’ rights will be a key element of a written constitution
when Scotland becomes an independent nation. That is in stark
contrast to this place, where this Government have legislated for
only seven of the 53 recommendations of the Taylor review. When
will they legislate for the other 46?(905712)
We are taking forward a number of reforms, as the hon. Member is
aware. There is a private Member’s Bill, the Employment Relations
(Flexible Working) Bill, which includes a day-one right to
request flexible working, as well as the right to request
predictable terms and conditions, which is one of the
recommendations of the Taylor review. I think he should welcome
those kinds of measures.
(Kettering) (Con)
Kettering is the beating heart of the east midlands economy,
especially in bespoke gentlemen’s footwear, with superb firms
such as Loake, Cheaney, and Gaziano & Girling. Will the
Government confirm that their free trade agreements and their
efforts to reduce international trade barriers will help the
local shoe industry in Kettering get on the front foot and take
great strides forward?
I was delighted to attend my hon. Friend’s business conference in
north Northamptonshire. As part of that, we passed the Loake shop
in Kettering, which is a world leader in shoes—in fact, I am
wearing a pair today—and he offered to try to get me a pair at a
discounted price, which I very much look forward to. There are
great export opportunities through that.
Mr Speaker
I call the Chair of the Business and Trade Committee.
(Bristol North West) (Lab)
Last year it was the energy companies; this year it is the water
companies. The sectors have changed but the taxpayers are still
on the hook. So will the Secretary of State commit to undertaking
a review of the financial resilience of all companies in each
regulated sector and to present her findings to the House?
The hon. Gentleman raises a very good point. He is right that we
need to make sure there is resilience across the sector, and I
think our regulators are best placed to do that. They are
carrying out a number of reviews at the moment, and I and
colleagues across Government are working closely with them.
(Glasgow North) (SNP)
The Secretary of State earlier told my hon. Friend the Member for
Gordon () that she did not accept
that Brexit was having a negative impact on the Scottish seafood
industry. It is a bit like saying she does not accept that the
earth is round—although, admittedly, sometimes people on her Back
Benches need to be persuaded of that. If she does not think that
Brexit is having a negative impact on the Scottish seafood
industry, does she think it has been positive, or does she think
there has not been any change at all?
The hon. Gentleman is entitled to his opinion, as I am entitled
to mine. He has done absolutely nothing except try to re-litigate
Brexit over and over again. The fact is that we are not going
back into the EU. We are using our independent trade policy,
negotiating with countries around the world and delivering more
for the UK as well as for Scotland. Scottish businesses are happy
with what we are doing, and in particular they are happy that the
grown-ups in Westminster have stopped them making the
catastrophic decisions that are destroying the internal
market.
(Huddersfield)
(Lab/Co-op)
Is the Secretary of State aware of just how much influence the
Chinese Government and Chinese companies have on our economy? Is
she aware that many times I have asked for an audit of how big
that influence is? Does she share the concern of many businesses
in our country that the Chinese Government are using subterfuge
and espionage to further their interests?
Mr Speaker
That’s three questions—pick whichever one.
I do not think we need an audit. China is our fourth largest
export market, and we are aware of the economic challenge that it
poses across the world. We work with countries across the world,
but we have a pragmatic relationship with China. We need to use
our influence to help them get to a better place, but I take the
hon. Gentleman’s point.
(Westmorland and Lonsdale) (LD)
How does it help UK Steel to decarbonise, or help the UK to
reclaim its position of global leadership in reducing climate
emissions, to support the opening of a sure-to-be-doomed new
coalmine in west Cumbria?
Ms Ghani
I do not think the hon. Gentleman has ever had a positive story
to tell about his region, let alone his constituency. We have a
positive story on steel, and we have the same challenges as most
countries in trying to deal with decarbonisation. We have issues
around energy costs that we have been providing all our advanced
manufacturing sectors with, and we want to ensure that we
diversify our access to different forms of energy.
(Kilmarnock and Loudoun)
(SNP)
Going back to Brexit, can the Secretary of State name one
Scottish sheep farmer who is happy with the Brexit deal, or any
seafood producers and exporters that she spoke to who are happy
with Brexit? Can she name any Scottish farming sectors that are
happy with Brexit?
It is not my job to memorise names of Scottish businesses, and
just as I said in response to a previous question, SNP Members
are not serious. Perhaps if they stood up and actually
represented their businesses in trying to make use of all the
opportunities we have, they would be in a better place.
(Strangford) (DUP)
When it comes to increasing trade with African countries, what
steps are being taken to ensure that increased trade is carried
out with companies that take human rights seriously and are
ethically aware in the treatment of their workers?
We are an advocate around the world for human rights. That is
something that the Government take seriously and discuss across
Government, including with trading partners with whom, as I said,
we can have frank conversations. Through other bodies and
institutions, including the work done by the Commonwealth, we
continue to have those frank conversations.
