SMEs: US Trade Agreement
(St Albans) (LD)
What recent assessment the Government have made of the potential
effect of a US trade agreement on SMEs. [902520]
The Secretary of State for International Trade ()
We are working on a dedicated small and medium-sized enterprise
chapter in the US trade deal to help the UK’s 5.9 million small
businesses. Some 31,600 UK SMEs already export to the US, and we
want to help them by cutting red tape on customs and tariffs.
[V]
SMEs are the backbone of the UK economy, but while the US
Government are engaging with their SMEs, SMEs in the UK say that
there is no equivalent engagement from the UK Government. Will
the Secretary of State commit to having a dedicated chapter in
every trade deal that they are looking to develop, and will she
create a mechanism for SMEs themselves to help shape it?
I thank the hon. Lady for her question. We have been in touch
with a number of organisations representing SMEs—for example, the
Federation of Small Businesses, which has come out in favour of a
US trade deal, saying:
“For small businesses, the US is the number one single market of
choice for importers and exporters for the next three years,
which is why these negotiations are so critical.”
We are committed to working with businesses of all sizes in this
trade process through our expert trade advisory groups, which we
have with all industry sectors, and I am very happy to engage
with the hon. Lady about how even more SMEs can be involved in
this process.
US Free Trade Agreement
(Dewsbury) (Con)
What assessment she has made of the potential merits of a free
trade agreement with the US. [902522]
(Vale of Glamorgan) (Con)
What assessment she has made of the potential merits of a free
trade agreement with the US. [902529]
The Secretary of State for International Trade ()
A free trade agreement with the United States is set to deliver a
£15 billion increase in bilateral trade, benefiting every region
of the UK, including the nation of Wales and the great county of
Yorkshire, and delivering an extra £1.8 billion for workers’
wages.
[V]
In the light of the difficult circumstances we find ourselves in
globally, I would like to congratulate the Secretary of State on
setting up talks with the US. With the UK set to leave the EU at
the end of the year, it is also important that we have free trade
agreements in place with other nations, particularly our
Commonwealth partners and countries in the far east. Therefore,
could my right hon. Friend provide an update on progress with the
potential trade deals with Australia, New Zealand and Japan?
I thank my hon. Friend for his question. We will shortly be
launching negotiations with Japan, Australia and New Zealand, and
pressing for early accession to the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership. This is an important
step in diversifying our trade and making sure we are not just
dependent on a small number of countries for our imports and
exports. It is also important that we work with like-minded free
market democracies to help set global standards in trade.
[V]
Does the Secretary of State agree that all parts of the UK and
all economic sectors stand to gain from a trade deal with the
United States? However, some lobbyists are concerned about their
specific interests, so what reassurance can my right hon. Friend
give that fairness to both the UK and the US, as well as economic
opportunities for all parts of the country, will be central to
her thinking in the negotiations?
A free trade deal with the United States is set to benefit every
nation and region in the UK, including Wales. We will strike a
hard bargain, and seek a deal that is fair for our producers. For
example, we want to make sure that we gain access for British
lamb and Welsh lamb in the United States market. It is the second
biggest importer of lamb in the world, and it represents a
massive opportunity for our farming sector and for the nation of
Wales.
(Islington South and
Finsbury) (Lab)
I thank the Secretary of State for the warm welcome that she has
given me in this new role and for the co-operative discussions
that we have enjoyed so far in relation to both coronavirus and
US trade. On the latter subject, she will be aware that the Trump
Administration and the US Congress see the US-Mexico-Canada
agreement on trade as a template for every other free trade
agreement that they are looking to sign around the world. Can the
Secretary of State make it clear to them today that she will not
agree to any version of article 32.10 of the USMCA that would
constrain the UK’s ability to negotiate our own trade agreement
with China and therefore represent an unacceptable breach of the
sovereignty of this Parliament?
First, I welcome the right hon. Lady to her seat. It is great to
see her in the flesh, even though we have had a number of calls
over the last few weeks. I am committed to working with the
Opposition to ensure that we get the best possible deal for all
parts of the UK in the US trade deal. I can assure her that when
we negotiate with the United States we will negotiate in the UK’s
interest, ensuring that we have full freedom of manoeuvre and
making our own sovereign decisions as a country. Of course, we
are looking at a number of precursor agreements for the text we
use in those trade negotiations, but my No. 1 priority is to
ensure that we have our own sovereign capability to trade with
the rest of the world as we see fit. One important benefit of a
US trade deal and the trade deal we are looking to strike with
Japan is that we need to be setting standards with fellow free
market democracies and ensuring that we have proper transparency
in our operations and proper setting of standards.
Mr Speaker
The Secretary of State really needs to think about the other
Members who need to get in, so if she could shorten her answers,
it would be helpful to all the Members who are waiting.
[Interruption.] It is very good, actually.
(Na h-Eileanan an
Iar) (SNP) [V]
Business and trade are all about the bottom line and numbers, and
we know from the Treasury estimate that Brexit will cost about 6%
of GDP. An American trade deal—and remember that the USA is a
quarter of the global economy—will only give an average lift of
about 0.2% to GDP, or a thirtieth of what Brexit will cost. Is
there any prospect of that number improving? What are the GDP
lifts for the deals with Australia, New Zealand and Japan and the
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership? We need to get to the numbers at the bottom of
Brexit.
I thank the hon. Gentleman for his question. He will be aware
that there is a projected benefit to Scotland from a US trade
deal of over half a billion pounds on gross value added, which is
a significant figure. In fact, Scotland is one of the parts of
the UK likely to benefit most from a US deal. We will shortly
publish the economics behind the Japan, Australia and New Zealand
deals when we launch the respective trade negotiations.
Free Trade Deals
(North West Norfolk) (Con)
What recent progress her Department has made on negotiating free
trade deals. [902526]
The Secretary of State for International Trade ()
I thank my hon. Friend for his question. We will shortly be
launching negotiations with Japan, Australia and New Zealand.
This is an important opportunity for the UK to form closer ties
with a fast-growing group of countries and look forward to
joining the CPTPP, which comprises 11% of the global economy.
[V]
I warmly welcome the ambitious agenda that my right hon. Friend
sets out. Can she confirm that any trade deal with the United
States will not lower our standards on imported food and that
these talks and the other ones she referred to represent a great
opportunity for world-leading companies in west Norfolk such as
Bespak and other pharmaceutical, engineering and manufacturing
firms to benefit from reduced tariffs and the removal of other
barriers to trade?
I can confirm that we will not lower our food import standards as
a result of the US deal. We are going to maintain those
standards; it is an important part of the quality assurance we
have here in the United Kingdom. My hon. Friend will be aware
that there are lots of opportunities for Norfolk farmers and
producers from a US trade deal, and overall the east of England
stands to benefit by £345 million.
(Dundee East) (SNP) [V]
Around a third of the value added of UK trade comes from indirect
trade—indirect links—where goods and services are first exported
to one country and subsequently exported to the UK. Given the
importance of indirect trade and value chains generally, I am
sure the Secretary of State would agree with the Dutch Trade
Minister that we should rethink our trade deals to take a closer
look at the sustainability of those value chains. Will she go
further and agree that we should not just be looking at
sustainability, but that trade deals should be as inclusive as
possible and based on World Trade Organisation rules, and because
of the importance of value chains and indirect trade—
Mr Speaker
Order. I think the Secretary of State will have got the question.
The hon. Gentleman is correct to say it is very important that we
have resilient trade as well as trade that benefits our economy.
That is why our strategy is to strike trade deals with more
partners, to ensure that our companies have more options and that
we are trading with a wider variety of nations than we were
before.
(Sefton Central) (Lab)
[V]
Our priorities for the last four years were supposed to be in
this order: first, securing a free trade agreement with the EU;
secondly, rolling over all our existing deals with third
countries; and thirdly, agreeing free trade deals with the rest
of the world. Can the Secretary of State explain why the
Government have failed on all three?
I would argue strongly that we are succeeding on all three of
those aims. We have opened talks with the United States;
is making significant
progress in his talks with the EU; and we are making significant
progress in increasing the number of countries that we are able
to agree continuity trade deals with. We are on course to succeed
in all those areas.
(Glasgow East) (SNP) [V]
As the WTO makes clear, coronavirus will lead to a substantial
fall in global trade. It suggests a reduction in the range of
between 13% and 32% in 2020. Although it is true that this is
primarily a health issue, trade will be an important ingredient
of the recovery, so does the Secretary of State agree with the
WTO that keeping markets open and predictable will be crucial to
secure the renewed investment that we need?
I completely agree with the hon. Gentleman; he is right that
protectionism would be a disaster for the global economy at the
moment. That is why we have been pressing at the WTO to keep
trade open, and why the UK has unilaterally lowered tariffs on
key medical goods, to keep that trade flowing.
(Bristol East) (Lab) [V]
Will the Secretary of State tell the House what the UK’s approach
will be to chemicals regulation during any future trade
negotiations? Will we retain the precautionary principle, or is
she looking to relax our current laws?
It is a very important principle that the UK Government have
responsibility for their own regulations. That is not something
that we will trade away in a trade deal; that is a matter for UK
sovereign Government regulation.
Protectionism
(Rushcliffe) (Con)
11. What her policy is on protectionism. [902524]
The Secretary of State for International Trade ()
As we emerge from the Covid crisis, it is vital that we keep free
trade flowing. That is why the UK has been making that case with
G20 Trade Ministers and the WTO. We have another G20 meeting this
Thursday, where I want to see further action to cut tariffs on
medical products, and for longer-term WTO reform.
[V]
Stilton producers, such as the excellent dairies of Cropwell
Bishop and Colston Bassett in my constituency, face a 25% tariff
when they export to the US market. Can my right hon. Friend tell
me what progress has been made, in the first week of
negotiations, to reduce those tariffs?
We are determined to get those tariffs reduced and removed on
products like Stilton, and the brilliant producers in my hon.
Friend’s constituency. The Stilton Cheese Makers’ Association has
backed a US deal, saying that a US free trade agreement will help
recognise Stilton cheese further in the US, and bring down some
of the existing barriers that we are currently facing.
Import of Medical Products
(Easington) (Lab)
12. What steps he is taking to expedite the import of essential
medical products during the Covid-19 outbreak. [902518]
(Liverpool, Walton) (Lab)
13. What steps he is taking to expedite the import of essential
medical products during the Covid-19 outbreak. [902543]
The Minister for Trade Policy ()
We continue to work tirelessly to secure vital supplies of
medical equipment from overseas partners to meet UK demand.
Hundreds of millions of units of PPE have been procured and over
2,000 ventilators have arrived in the UK thanks to our trade and
FCO networks.
[V]
Across the world, we are being advised to wash our hands with
soap regularly to keep us safe from the virus, but the average
import tariff on soap among WTO members stands at 17%, with some
countries charging tariffs of up to 65%. What steps has the
Minister taken to seek global agreement to reduce tariffs on the
import of soap and other hygiene products, to combat the spread
of covid-19?
That is a very good question and I thank the hon. Gentleman for
asking it. We are working tirelessly, at different international
fora, to ensure that trade barriers—either long-standing barriers
or ones that have been thrown up as a result of the crisis—are
reduced or removed. For example, just last month, at the UK’s
initiative, the G20 Trade Ministers met and discussed a lot of
these and took significant action. We have also been lobbying
bilaterally, most successfully, with India to ensure that such
barriers are reduced or removed.
[V]
It is shameful that our national stockpile of PPE dwindled during
years of austerity. The Government’s response since has been one
of confusion and panic—missing three chances to join the EU
scheme to bulk buy PPE, and with the recent fiasco of flying in
unusable gowns from Turkey. What discussions are Ministers having
with the Governments of New Zealand, Singapore and other WTO
countries to support global efforts to keep medical supply chains
running during and beyond this crisis?
We are extremely active at the WTO and other forums, including
the G20, to ensure that products flow. We have delivered 1.22
billion items of PPE to the NHS, which is a tremendous
achievement. That includes 40 million safety goggles and 1.3
billion face masks; the numbers are substantial. On the action
that we are taking at the WTO, we continue to lobby at all
levels. May I just correct the hon. Gentleman on one point—about
the delivery of 400,000 Turkish gowns? That number represents a
tiny proportion of the total, and only a tiny proportion of those
gowns were actually found to be defective. We are very thankful
to Turkish suppliers for what they have done.
Mr Speaker
It would be remiss of me not to welcome the right hon. Member for
Islington South and Finsbury () to her new role.
(Islington South and
Finsbury) (Lab)
Thank you, Mr Speaker. May I also thank my colleagues for asking
such vital questions about shortages of PPE and other essential
medical supplies?
One area where we have, thankfully, not seen shortages to date is
the supply of prescription medicines, thanks to the so-called
Brexit buffer of supplies built up in preparation for a no-deal
Brexit. But given that this buffer only provides somewhere
between three to six months of supplies, will the Minister tell
us how the Government are getting on with replenishing these
stocks from imports, so that we do not experience any shortages
once the Brexit buffer starts to run out?
I join the Secretary of the State in welcoming the right hon.
Lady to her position. After four years of the hon. Member for
Brent North (), we always look forward to
seeing somebody new at the Dispatch Box.
Again, we are active in all available forums to ensure that the
UK’s supply of prescription and non-prescription medicines
continues. For example, following the restrictions that India put
in place on 3 March, my right hon. Friend the Secretary of State
has been very active with the Indian Trade Minister to get almost
all those restrictions removed. We will continue to be active
with all our trade partners to ensure that products continue to
flow to our NHS at this time.
Human Rights
(Ealing Central and Acton)
(Lab)
15. What recent discussions she has had with UK trade partners on
including clauses on human rights in future trade deals. [902551]
The Minister for Trade Policy ()
The UK has a strong history of safeguarding human rights and
promoting our values globally. Our strong economic relationships
with trading partners allow the Government to have open
discussions on a range of important issues, including human
rights. We continue to encourage all states to uphold
international human rights obligations.
Dr Huq [V]
Twenty-one countries have been listed where negotiations are
ongoing with regard to rolling over existing trade agreements
beyond 31 December. A number of those countries have shockingly
poor human rights records, including Cameroon, Egypt, Singapore,
Uganda and South Sudan. Will the Minister tell us whether human
rights are part of those discussions? Also, in order to ensure
that there is no saying one thing and doing another while
everyone is diverted by coronavirus, will he guarantee the
inclusion of human rights clauses in any eventual deals?
I think the hon. Lady is referring to the various EU agreements.
She was a passionate campaigner—and, I think, still is—to remain
in the EU. Of course, if we had remained we would still be in
those trade agreements with the self-same countries that she
mentioned, but we are clear that the UK will remain a strong
voice for human rights and that more trade does not have to come
at the expense of human rights, and we will continue to encourage
all states to uphold international human rights obligations.
Covid-19: Business Support
(Lewisham, Deptford)
(Lab)
16. What recent steps she has taken to support businesses trading
internationally that are affected by the covid-19 pandemic.
[902555]
(Sunderland Central)
(Lab)
17. What recent steps she has taken to support businesses trading
internationally that are affected by the covid-19 pandemic.
[902539]
The Minister for Trade Policy ()
In response to covid-19, the Department continues to support UK
businesses to trade. Office for National Statistics data states
that 75.4% of businesses are continuing to trade.
[V]
For British companies that trade overseas, the one thing
guaranteed to make a very bad situation even worse would be the
loss of free frictionless trade with the rest of the EU at the
end of the year, so will the Minister reassure UK firms that the
top priority when it comes to trade is securing the free trade
agreement that we need with Europe?
Of course. The hon. Lady will have seen that the UK is continuing
the negotiations, which the chief negotiator has been doing virtually.
We have completed the first round and we look forward to getting
the trade agreement that I believe is in the interests of both
sides and which will bring relief to British business and others
at this important time.
[V]
In Sunderland and the wider north-east, lots of businesses—large,
small and start-ups—rely on international supply chains as they
trade internationally. What are the Government doing in these
challenging times to ensure that international supply chains are
protected?
The hon. Lady asks a good question. One important thing that we
will learn from this crisis is the importance of the robustness
of supply chains. Currently, most of the focus is obviously on
medical supplies, but that will extend more broadly. We need to
make sure that we have diverse sources of supply, that the supply
chains that ensue are robust, and that we have choice and
diversity in respect of where we procure our goods from.
Covid-19: Trade Barriers
(Edinburgh North and Leith)
(SNP)
18. What assessment she has made of the effect of trade barriers
to UK exports on the UK’s contribution to the global economic
recovery from the covid-19 pandemic. [902533]
The Parliamentary Under-Secretary of State for International
Trade ()
The hon. Lady is right to highlight the negative impact of trade
barriers. OECD analysis shows that cutting tariffs and addressing
unnecessary costs associated with non-tariff measures could
increase trade by more than 20% among G20 economies. We are
working to remove barriers for UK exporters around the world—from
helping British beef and lamb to export in Japan to obtaining
geographic protection for Scotch whisky in Indonesia.
[V]
The most recent WTO review saw G20 economies implement 28 new
trade-restrictive measures, estimated to cover around $460
billion of trade, and import-restrictive measures in force for
the period January-October 2019 are now estimated to cover $1.6
trillion, suggesting that import restrictions have continued to
grow. It is obvious that we need resilience in our economies, but
does the Minister agree that that cannot be an excuse to engage
in economic protectionism or simply close down value chains?
I entirely agree with the sentiments expressed by the hon. Lady;
she is absolutely right. Pre-covid, over the past decade, perhaps
since the financial crash, there has been an increase in the
number of trade barriers that have been erected, which is why, as
an independent nation once again, we are so determined to
champion free trade and to use the WTO and the other
international fora referred to by colleagues to make sure that we
make that case. It will lead to prosperity for all.
Africa: Trade Negotiations
(Tewkesbury) (Con)
19. What recent progress her Department has made on trade
negotiations with African countries. [902527]
The Parliamentary Under-Secretary of State for International
Trade ()
I thank my hon. Friend for his work as chair of the all-party
group on Ethiopia and Djibouti. The UK has signed continuity
trade agreements that secure our long-term trading relationship
with 11 African countries, and a further 35 will benefit from our
unilateral preferences scheme. We continue to work with our
partners on arrangements for the remaining African countries
covered by EU agreements, in a way that reflects the current
economic and public health realities.
Mr Robertson [V]
I thank the Minister for that response. Does he agree that trade
is the best way out of poverty for developing countries? Bringing
that idea together with the fact that the United Kingdom is
looking to forge trade agreements around the world would create a
bigger benefit. Will the Minister do everything he possibly can
to bring about strong trade agreements with African countries?
My hon. Friend is absolutely right: it is a win-win situation for
the UK economy and those developing countries in Africa, and it
is so important that we work together. To those considering
seeking to put up barriers to foreign produce in our
consideration of the Agriculture Bill tomorrow, I should say that
not only would that breach the WTO’s global rules and hurt our
good name in the international community, but it could also have
the effect of restricting imports from developing countries,
including those in Africa. Surely no one should wish for that.
