International Trade Ministers were answering questions in the
Commons. Subjects covered included...
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Global Free Trade
(South Cambridgeshire)
(Con)
1. What steps her Department is taking to promote global free
trade. [900346]
(Wolverhampton South
West) (Con)
10. What steps her Department is taking to promote global free
trade. [900356]
The Secretary of State for International Trade ()
As we leave the European Union, we have a huge opportunity to be
a liberalising force for trade in the world. We aim to secure
agreements with countries accounting for 80% of UK trade within
three years of leaving the EU, and as we take up our independent
seat at the World Trade Organisation we will be a champion of
global free trade.
The farmers in my constituency of South Cambridgeshire are some
of the most productive in the country and they are very keen to
increase exports. They also want to make sure that they are not
undermined in the marketplace by competing with farmers from
countries that follow lower environmental standards or animal
welfare standards. As my right hon. Friend starts the
negotiations with other countries to increase trade, what is she
doing to make sure that farmers from Britain can compete on a
level playing field?
We remain absolutely committed to upholding our high
environmental, food safety and animal welfare standards post
Brexit. As my hon. Friend points out, there are huge
opportunities for farmers for trade—for example, getting lamb
into the US market. The US is the second biggest importer of lamb
by value in the world. Currently, UK lamb cannot get into the US
market, and that is a huge opportunity for our farmers.
I thank the Secretary of State for that answer. I am keen to know
whether these steps will make a visible difference to the
businesses in Wolverhampton that trade globally.
Lowering barriers will mean lower costs for businesses and more
choice for consumers. In Wolverhampton and the west midlands
overall, we send one in five of all exports to the United States.
Getting a trade deal with the US would mean a removal of tariffs
on products such as cars, textiles and steel, so there are huge
opportunities there for those businesses to grow.
(Dundee
East) (SNP)
I am glad that the Secretary of State expects us to cut lots of
free trade deals, but they do not happen by chance; they happen
by detailed analysis and tough negotiations. How does she believe
we can succeed in those negotiations when the number of expert
trade negotiators she has is a fraction of the 600 the EU has?
More importantly, is she not setting herself up for a fall by
rather foolishly, in my opinion, embarking on parallel trade
negotiations with such limited resources with both the European
Union and the USA?
I am afraid I am not surprised to hear the SNP talking our
country down. The fact is that we have scaled up our trade
negotiation expertise. We now have approximately the same number
as the US Trade Representative, which is one of the leading trade
negotiators in the world. Our trade negotiators have already
secured £110 billion of trade continuity deals, even though
people such as the hon. Gentleman said it could not be done.
Those negotiators have a wide experience in trade law from the
private sector, and we have also recruited people from other
Commonwealth nations with experience from the WTO. We have an
excellent team at the Department for International Trade, and we
have the staff in place ready to conduct the negotiations with
the US, Australia, New Zealand and Japan.
(Stalybridge and
Hyde) (Lab/Co-op)
The statement from the Trump Administration that we will be
subject to retaliatory tariffs if we proceed with the digital
services tax that is set to come in in April seems an early test
of how we will fare in independent trade talks. Could the
Secretary of State tell us if the Government intend to concede to
American pressure?
Let me be clear: UK tax policy is a matter for the UK
Chancellor—it is not a matter for the US; it is not a matter for
the EU; it is not a matter for anybody else—and we will make the
decisions that are right for Britain whether they are on our
regulatory standards, our tax policy or anything else.
(Isle
of Wight) (Con)
Graham Harvey is a constituent of mine who runs an excellent
little composites business on the Isle of Wight. He has just won
a big order to sell to Taiwan. That is exactly the sort of
business that I know the Secretary of State will want to cheer
on, but he is finding it extremely difficult to get export
finance and banking finance. I have written to the Secretary of
State. Does she share my concern that our small and medium-sized
businesses are not being given the support that they need to
export successfully?
I am very proud of the work that UK Export Finance does. It has
just celebrated its 100th birthday of supplying export finance
for British business. I am very keen, and I have laid this out to
the team, that we do more to support small and medium-sized
enterprises. I would be very happy to look at the case for my
hon. Friend’s constituent, and make sure that he is getting the
support that he needs. We do have additional available finance,
and there is also an exporting toolkit for MPs to help them get
in touch with export finance.
Industrial Strategy: Steel Industry
(Barnsley East)
(Lab)
2. What discussions she has had with the Secretary of State for
Business, Energy and Industrial Strategy on the effectiveness of
the Government’s Industrial Strategy in attracting inward
investment to the steel industry. [900347]
The Parliamentary Under-Secretary of State for International
Trade ()
I thank the hon. Lady for her question and for her continued
championing of the UK steel industry. We work closely with
colleagues in the Department for Business, Energy and Industrial
Strategy to promote steel. Since 2013, the Government have
provided more than £600 million of support, including £300
million for energy cost relief, £250 million for innovation and
£66 million for new technologies.
The Government claim to be supportive of British steel makers,
yet only 50% of steel purchased by the Government comes from
Britain. Is it not time that the Government actually backed our
steel industry, bought British and introduced a sector deal for
steel?
With our colleagues at UK Export Finance, we established a steel
export taskforce and we are very keen to promote steel exports.
The hon. Lady is right that we should do everything we can to
ensure that British steel is used in the UK. I am happy to work,
both here and abroad, to make sure we support the steel industry
going forward.
Free Ports
(Scarborough and Whitby) (Con)
3. What recent discussions she has had with Cabinet colleagues on
the potential economic merits of free ports. [900348]
The Parliamentary Under-Secretary of State for International
Trade ()
My right hon. Friend the Secretary of State is championing the
merits of free ports across the Government, in conjunction with
Treasury Ministers, including the Exchequer Secretary, who is the
constituency neighbour of my right hon. Friend the Member for
Scarborough and Whitby (Mr Goodwill).
Mr Goodwill
On 12 December, a blue wave swept up the Yorkshire coast from the
mouth of the Humber to the mouth of the Tees as coastal
communities, some for the first time, put their trust in the
Conservatives to deliver on their priorities. Does the Minister
agree that the former SSI British Steel site on the south bank of
the Tees would be an ideal site not only as a deep water terminal
for the export of polyhalite fertiliser, but as Britain’s first
free port?
My right hon. Friend is right. That blue wave was also a
cleansing wave that is allowing new thinking. My right hon.
Friend the Secretary of State announced our free port policy in
Teesport in August. We recognise that more free ports, not least
in the Teesport area, can create jobs, rejuvenate communities and
boost local economies. We will continue the job creation miracle
that has gone on under this Government and, with my right hon.
Friend’s help, free ports will be an important part of that.
(Huddersfield) (Lab/Co-op)
Could we rise above party politics on this? [Laughter.] Mr
Speaker, they don’t blame me, do they? I understand that free
ports are fashionable at the moment. If the Minister can persuade
me that there will be no disadvantage to businesses in
Huddersfield and Yorkshire—I have a long history of co-chairing
the Yorkshire group of MPs—we could be persuaded that free ports
are a good thing. Will he give us a bit more detail?
A day when the hon. Gentleman rises above party politics is one
when we know a significant shift has occurred in the body
politic, but I will try to take the question in the spirit in
which it was intended. We are consulting and engaging widely,
including with devolved areas of the country, to ensure we come
up with exactly the right package to be able to assure even the
most sceptical, albeit now non-party political people like the
hon. Member, that free ports really can galvanise further job
development and prosperity.
(Preseli Pembrokeshire)
(Con)
It is important that this policy does not lead to market
distortions and displacement of activity around ports. Does my
hon. Friend agree that the key to making this a success is to
build on the unique competencies and excellence of individual
ports, such as the port of Milford Haven in my constituency, with
its unique energy expertise?
My right hon. Friend is absolutely right. It is about tailoring
the policy to the particular, ensuring we have something that
does not lead to distortion but does lead to additional inward
investment. We have gained more foreign direct investment in this
country than any other European nation. That is one of the
fundamental reasons why we have more people in work as a
percentage of the population than the US, Germany or France, and
why we have the lowest youth unemployment in our history. I am
determined that the free port policy will be well-tailored to the
individual circumstances of each area, while ensuring there is no
distortion.
(Bradford
South) (Lab)
As the Minister will know, free ports existed in this country
until 2012, when they were abandoned under the coalition
Government due to a lack of evidence for their economic benefits.
Will the Minister guarantee that if new free ports are
introduced, jobs and investment will not simply be displaced from
elsewhere in the country, labour rights and standards will not be
undermined, and the UK will still be able to meet the level
playing field standards that may arise from any future trade deal
with the EU?
It may come as news to Labour, or at least its Front Benchers,
that we will not be a member of the customs union as we were in
2012. Leaving the EU provides the opportunity to do things
differently. We are taking a new cross-Government approach to
developing ambitious free ports to ensure that towns and cities
across the UK can begin to benefit from the trade opportunities
that Brexit brings. It is about time that Labour Front Benchers
started to recognise the upside to Brexit instead of always
talking this country down.
Most Favoured Nation Tariffs
(Newcastle-under-Lyme)
(Con)
4. What steps she is taking to ensure that most favoured nation
tariffs support UK manufacturing industries after the UK leaves
the EU. [900349]
The Secretary of State for International Trade ()
We are developing our own most favoured nation tariff schedule,
ensuring that it is right for the UK. We want costs kept low for
consumers and to ensure UK manufacturers are not disadvantaged
against their competitors.
I thank the Secretary of State for her answer and for visiting me
and my colleagues in Stoke-on-Trent last Friday. For industries
such as ceramics and businesses such as Ibstock Brick in my
constituency, which has two sites—at Chesterton and
Parkhouse—does she agree that it is essential that we put in a
robust regime of tariffs when we have countries that do not
respect the rules-based order and threaten to flood our market
with dumped or subsidised products?
One of our aims in a US trade deal will be to bring down the
tariffs on ceramics. When I was in Stoke-on-Trent, I heard that
those producers face a tariff of 28% on their fantastic crockery.
We want to bring that down so that we can have more jobs in
Stoke-on-Trent. We will also establish the trade remedies
authority, which will take a tough line on dumping from the
anti-competitive activities of other nations.
(Strangford)
(DUP)
These are changing times for all regions of the United Kingdom of
Great Britain and Northern Ireland as we get towards 31 January.
Will the Secretary of State further outline what discussions have
taken place with the newly restored Northern Ireland Assembly and
Executive with regard to trade and tariffs within Northern
Ireland, and on its behalf?
I am pleased to tell the hon. Gentleman that there will be a
ministerial forum this afternoon to talk about that issue. We
will make sure that Northern Ireland is completely involved in
our agenda, because we want our independent trade policy, our
tariff policy and our trade remedies policy to follow the
priorities across the United Kingdom.
(Stoke-on-Trent South) (Con)
I join my hon. Friend the Member for Newcastle-under-Lyme
() in thanking the Secretary
of State for visiting Stoke-on-Trent last week. Does she agree
that for industries such as ceramics, it is essential that we
have a robust regime of tariffs to make sure that we guard
against countries who want to undermine the rules-based system?
My hon. Friend is right: we cannot allow dumping practices to go
undealt with, and the trade remedies authority will be there to
take a tough line in areas such as ceramics. Because we are
leaving the European Union, we have the opportunity to have a
policy that reflects the needs of the UK and the priorities of UK
consumers and UK manufacturers. I am determined to have that, but
we must also seek to lower the tariffs on exports for our
producers, because we want to see British ceramics, particularly
from Stoke-on-Trent, on tables around the world.
EU Bilateral Trade
(Rutherglen and Hamilton West) (SNP)
5. What assessment her Department has made of the effect of the
end of freedom of movement in the UK on bilateral trade with the
EU in goods and services. [900351]
(Aberdeen South)
(SNP)
12. What assessment her Department has made of the effect of the
end of freedom of movement in the UK on bilateral trade with the
EU in goods and services. [900359]
The Minister of State, Department for International Trade
()
Leaving the European Union frees the United Kingdom to introduce
a fairer immigration system. My right hon. Friend the Prime
Minister said at the UK-Africa investment summit this week that
“our system is becoming fairer and more equal as between all our
global friends and partners. Treating people the same regardless,
wherever they come from and by putting people before passports,
we will be able to attract the best talent from around the world,
wherever they may be.”
We will also be able to reach out and strike new global trade
agreements to the benefit of all our constituents and UK
consumers.
I thank the Minister for that answer. The President of the EU
Commission said:
“Without the free movement of people,”
the UK cannot expect to
“have the free movement of capital, goods and services”.
Is it not true that taking control of our borders comes with not
only an unacceptable human cost, but a very serious economic one?
I am sorry, but not surprised, that the SNP cannot see that there
is talent beyond the shores of the European Union. Freedom of
movement was discussed at length during the referendum. We on the
Government Benches believe in respecting the results of
referendums, including the one in Scotland.
Scottish Financial Enterprise told the Scottish Affairs Committee
that the success of Scotland’s financial industry was based on
its ability to access and service all customers in the European
Union. Does that not once again highlight the vital importance of
freedom of movement to Scotland and show that the UK Government
simply do not care about Scotland’s interests or, indeed,
Scotland’s votes?
It shows the reverse. As the Government reach out to negotiate
new comprehensive free trade agreements around the world, we will
negotiate the best deals possible for every nation and every
region of the United Kingdom. This Government will always have
Scotland’s interests close to their heart.
(Wycombe) (Con)
Is my right hon. Friend as surprised as I am that so many Members
of this House do not seem to have read and understood the
political declaration on the future relationship? In particular,
does he agree that we should expect that the various modes of
supply in connection with services will go on around the world
and that people will travel to deliver services?
My hon. Friend is right. It is sad that so many in this House,
particularly on the Opposition side, including on the SNP
Benches, appear stuck in June 2016. We on the Government
Benches—[Interruption.] I say to the hon. Member for Rutherglen
and Hamilton West () that
we are not remotely touchy. While she is stuck in the past, we
are focused on the future.
Trading Opportunities: North of England
(Bolsover) (Con)
6. What assessment she has made of the extent of international
trading opportunities for counties in the north of England.
[900352]
The Secretary of State for International Trade ()
Northern counties exported over £165 billion-worth of goods and
services last year, and we want to increase this. New free trade
agreements will remove costs for manufacturers and producers and
enable those businesses to grow.
I thank the Secretary of State for that answer. As we exit the
European Union, it is vital that businesses in Bolsover and
elsewhere are encouraged to export to new markets. Does the
Department have any plans to strengthen regional teams across the
midlands and the north to help businesses take advantage of new
trading opportunities?
I am pleased to tell my hon. Friend that we have 130
international trade advisers and 186 export champions—businesses
that already export and that encourage their peers to
export—across the north of England. We have just sent out an
exporting toolkit to MPs on both sides of the House so that they
can get in touch with those local trade advisers and help their
businesses export. We estimate that there are 600 businesses in
every constituency with the potential to export that do not
currently do so. MPs have a really important role in helping
those businesses to get the information and support they need.
North Africa
(Southport)
(Con)
7. What steps her Department is taking to promote trade between
the UK and North Africa. [900353]
The Minister of State, Department for International Trade
()
North Africa is an important region for the United Kingdom. To
advance trade in this area, I have in the last four months alone
visited Morocco twice and Algeria once, and led trade discussions
at the UK-Tunisia bilateral forum, and the Government have laid
transition texts of the Morocco and Tunisian association
agreements in Parliament. Taking advantage of the UK-Africa
summit this week, I signed a memorandum of understanding to
explore opportunities in more detail with Morocco and spoke to
the Algeria British Business Council. My hon. Friend is right to
see enormous opportunities in north Africa, and we will use the
coming months to develop those.
I thank my right hon. Friend for his response. One of the
countries he referred to was Tunisia. Will he join me in
welcoming the new trade agreement between the United Kingdom and
Tunisia, which was signed recently, and which will see 7,723
tonnes of Tunisian olive oil available to the British economy
duty-free? Will he meet me and the respective UK and Tunisian
ambassadors to explore further trading opportunities?
My hon. Friend is right to see the enormous opportunities. It was
my pleasure to lead the trade discussions in the UK-Tunisia
bilateral forum last September, and I would be absolutely
delighted to meet the ambassadors with my hon. Friends to see
what more trade we can do between our two countries.
(Brent
North) (Lab)
In its decision issued in March 2019, the High Court of England
and Wales confirmed that the territory of Western Sahara is
separate from Morocco under international law. It ruled that the
UK Government were acting unlawfully by failing to distinguish
between the territory of Morocco and the occupied territory of
Western Sahara. Yet the trade agreement between the UK and the
Kingdom of Morocco purports to apply to the territory of Western
Sahara, despite the total lack of consent from the Sahrawi
people. Will the Secretary of State explain why that is the case?
Given that the Constitutional Reform and Governance Act 2010
process to ratify the agreement is now under way, is it her
intention to hold a debate to discuss why the Government are
proceeding to ratify a treaty that the High Court has ruled
illegal?
We had discussions about this subject with representatives of the
Moroccan Government, including the Ministry of Foreign Affairs
and International Cooperation, when I visited Morocco two weeks
ago, and indeed it was raised by my hon. Friend the Minister for
Africa when he was with me there last October. The United Kingdom
has taken the consistent position that the matter needs to be
resolved diplomatically and sensitively with ongoing discussions.
Topical Questions
(Walsall
North) (Con)
T1. If she will make a statement on her departmental
responsibilities. [900361]
The Secretary of State for International Trade ()
We are a few days away from leaving the European Union, and, for
the first time in 46 years, establishing the UK’s independent
trade policy. That gives us the opportunity to take up our
independent seat at the World Trade Organisation, to champion
free trade, and to secure free trade deals with partners around
the world. There is a huge opportunity for the UK, and we want to
make the 2020s the decade of trade.
There are many great British manufacturers, including Croft
Architectural Hardware in my constituency. As well as making
products for the Palace of Westminster, it exports them to the
United States and China. What more can we do to support fine
British manufacturing talent like that?
I congratulate Croft Architectural Hardware on its brilliant
work. I understand that we have helped it to attend two trade
fairs in the US through our trade show access programme. I also
note that there is currently a 4% tariff on door knockers; I hope
that in future trade agreements we shall be able to get that
removed.
(Brent
North) (Lab)
Can the Secretary of State point to any examples of intersecting
customs unions anywhere else in the world? Will she confirm that
under the EU customs code to be implemented in Northern Ireland,
goods will have to be declared and products of animal origin will
have to pass through a border inspection involving both
documentary and physical checks, and does she accept that those
will subsist completely irrespective of the tariff regime in any
future free trade agreement with the EU?
As we have made very clear, we want to ensure that there is no
hard border in Northern Ireland. That is a priority for the
Government, and we have reached a new agreement with the EU that
delivers on it. Of course, we need to work through the details of
precisely how that arrangement will work.
The hon. Gentleman needs to recognise that the world is moving
on: we are moving into an area in which trade is being digitised,
and we are finding new ways of facilitating customs. Rather than
being negative and a naysayer, why does he not contribute to the
solution?
(Guildford)
(Con)
T3. Guildford is home to a growing computer gaming industry. What
steps is my hon. Friend taking to encourage inward investment in
that sector? [900363]
The Parliamentary Under-Secretary of State for International
Trade ()
The Department’s high potential opportunities programme, which
aims to identify and promote a range of foreign direct investment
opportunities throughout the UK, is currently working with the
Enterprise M3 local enterprise partnership and others in
Guildford to highlight the commercial opportunities offered by
the video game and 5G clusters in that region, which are
world-leading.
(Twickenham) (LD)
T2. Given President Trump’s description of climate campaigners as
prophets of doom, and given the revelations that he has banned
all reference to a climate crisis in any US trade deal, what
assurances can the Secretary of State give the House that any
UK-US trade deal will support the UK’s own climate objectives,
and, indeed, persuade the US to recommit itself to the Paris
agreement? [900362]
I believe that the UK has a huge opportunity to promote clean
energy and our climate change agenda—our carbon reduction
agenda—across the world. Yesterday I met the New Zealand Trade
Minister to discuss how we can work together in the future to
incorporate those into forward-leaning trade agreements. We will
seek to do that with the US, the EU, and all the other partners
with which we work.
(Newcastle-under-Lyme)
(Con)
T5. In the light of the very welcome UK-Africa investment summit,
what assessment has the Minister made of the commercial
opportunities for British firms across the whole of that great
continent? [900365]
I spent months working with colleagues across Government to
deliver the UK-Africa investment summit, which took place on
Monday. I am delighted with the result and proud of the work of
so many officials in making it happen. We have announced 27
commercial deals worth more than £6.5 billion from across African
markets, but as my hon. Friend has pointed out, there is enormous
potential for more.
(East Lothian) (SNP)
T4. Glenkinchie distillery in my constituency is threatened by
the tariffs imposed on Scotch whisky by President Trump. Given
the decision to leave the EU and seek a trade deal with the USA,
and given threats about changes to the definition of Scotch
whisky, what assurances can the Minister give that we will not be
washing down chlorinated chicken with a glass of American rye?
[900364]
The Minister of State, Department for International Trade
()
I would gently say to the hon. Gentleman that if we are to
de-escalate these tariff disputes, attacks on the US
Administration and the President are unwise and unwelcome. We are
working across Government to persuade the United States that
these tariffs are damaging to the Scots whisky
sector—[Interruption.] If Scottish National party Members would
stop chuntering and get behind us, we might have more chance of
removing these tariffs. We will seek to stand up for the Scots
whisky sector and persuade the United States to remove these
tariffs. My right hon. Friend the Secretary of State has been in
touch with trade representative Lighthizer, and we will work for
the Scots whisky industry. Get behind the Government!
