Steel Import Tariffs
(Motherwell and Wishaw) (SNP)
What recent assessment her Department has made of the effect of
steel import tariffs on the UK steel industry.
The Parliamentary Under-Secretary of State for International
Trade (
)
First, may I associate myself with the tributes on Monday led by
you, Mr Speaker, and the Prime Minister on the death of His Royal
Highness The Prince Philip, and the Humble Address of the House
of Commons to Her Majesty?
We are committed to defending British industry and jobs and will
not hesitate to take firm action where necessary, which is why we
have safeguard measures in place. We know there are concerns that
Chinese steel is receiving state subsidies that distort trade,
so, working with our allies, we will challenge China and other
countries to play by the rules.
[V]
Motherwell in my constituency was once the heart of steel
production in Scotland and the rest of the UK, but consecutive UK
Governments have overseen the decline of steel jobs in Scotland
from thousands to just over 100. Will the UK Government provide
certainty for steelworkers today, support domestic production,
protect those remaining jobs and retain the tariffs on steel
imports?
Mr Jayawardena
When the Trade Remedies Authority is set up, it will conclude its
investigation, which it would be wrong to pre-empt. We are of
course working for every corner of our United Kingdom, backing
British businesses and supporting Scottish jobs as much as we are
supporting those in England, Wales and Northern Ireland—at a time
when the Scottish National party wants to cut itself off from its
largest market: the British internal market.
(Sefton Central) (Lab) [V]
I am afraid the 5,000 workers at Liberty Steel will not have been
reassured by the Minister’s answer. The collapse of Greensill
Capital has created serious problems at Liberty Steel and is one
of many reasons why the entire British steel industry now
urgently needs leadership, stability and support from the
Government. Can we get some clarity? Retaining the import tariffs
is a political decision. Will the Minister play his part today by
guaranteeing that the Government will retain the vital safeguard
tariffs that Britain currently has in place against cheap steel
imports for the full financial year ahead—no ifs, no buts and no
maybes?
Mr Jayawardena
I do love the authenticity with which the hon. Gentleman asked
his question; of course, if it were a political decision, he
would be calling for it to be independent. It is an independent
decision. The Trade Remedies Authority has teeth and will act
accordingly. Just like this Government, our Trade Remedies
Authority is going to defend the British national industry, back
British jobs and support people throughout our United Kingdom.
UK Exports to the US: Tariffs
(Orkney
and Shetland) (LD)
What recent discussions she has had with her US counterpart on
not re-imposing tariffs on UK exports to the US.
The Secretary of State for International Trade ()
I am delighted that the United States responded to our
de-escalation of retaliatory tariffs in January and has removed
the 25% tariff on Scotch whisky and other products. This is
fantastic news for the 50,000 people whose jobs rely on the
industry. I am working with Ambassador Tai to get a long-term
resolution to the Airbus-Boeing dispute.
Mr Carmichael
The Scotch whisky industry is of economic importance to a large
number of the most economically fragile communities in the
highlands and islands, so I genuinely wish the Secretary of State
very well in her endeavours to get the removal of tariffs made
permanent. Is the situation that the Prime Minister has created
in Northern Ireland helping or hindering the engagement with the
Biden Administration?
We are extremely committed to the Good Friday agreement and have
had frequent discussions with the Biden Administration. I am
having very positive discussions with my counterpart Katherine
Tai about resolving the Airbus-Boeing dispute—which has been
going on for 16 years—to the benefit of the Scotch whisky
industry, other industries throughout the UK and industries such
as aerospace, in which we need Airbus to be able to compete.
(Na h-Eileanan an Iar) (SNP) [V]
Madainn mhath, Mr Speaker.
The digital-service-tax threats from the USA show that the Biden
Administration value their special relationship with big tech
more than the one with the UK. The threat to the tax sovereignty
of the UK and a number of other countries indicates that there is
not really a relationship of equals. Is not the prospect of a
trade deal with the USA pretty dead? In any case, the 0.2% of GDP
that such a deal was going to recover was only a fraction of the
damage done by Brexit. Has the Secretary of State accepted that
fact yet?
We are urging the United States to desist from any more
tit-for-tat tariffs disputes, including in respect of a digital
services tax. We think that the best way to resolve the issue is
through the process that the Chancellor is leading at the OECD.
We are in further discussions with the United States not just to
end the Airbus tariff dispute but to work with the United States
at the G7 to challenge unfair practices in the global trading
system by countries such as China.
UK Steel Producers: Level Trading Field
(Aberavon) (Lab)
What steps she is taking with Cabinet colleagues to help ensure a
level trading field for UK steel producers while the EU and US
maintain import controls on steel goods.
(Rutherglen
and Hamilton West) (Ind)
What steps her Department is taking to help ensure a level
trading field for UK steel producers while the EU and US maintain
import controls on steel goods.
The Parliamentary Under-Secretary of State for International
Trade (
)
The Government back the British steel industry, as we have heard
already this morning, and the unjustified US tariffs on steel,
aluminium and derivatives imports from Britain are completely
unfair and wholly unnecessary. Our rebalancing measures in
response to the US section 232 on additional tariffs show that we
will defend the British national interest and the rules-based
system.
[V]
Our steelworkers make the best steel that money can buy but,
thanks to the indifference of successive Conservative Governments
since 2010, they are constantly being made to compete with one
hand tied behind their back. They are already dealing with the
highest industrial energy prices in Europe and a Government
procurement policy that fails the patriotism test, and now they
face the possibility that, in June, steel safeguards that guard
against import surges will be removed. Does the Minister agree
that, if the Government were to remove those safeguards, it would
add insult to injury and again undermine the ability of our steel
industry to compete on a level playing field?
Mr Jayawardena
As the hon. Member knows, the British steel industry has
benefited from investment of more than £500 million in recent
years to help with the costs of energy, and we have announced a
£250 million fund to support the decarbonisation of the industry.
So this Government are dedicated to supporting the future of the
steel industry and we will continue that work.
[V]
Removing these measures would lead to the UK being one of the
only steel markets without any protective measures for its steel
industries. Does the Minister not agree that, while global
overcapacity stands at over 500 million tonnes, it would be
unwise to become a rare exposed market for steel when larger
markets are still protected?
Mr Jayawardena
Mr Speaker, there are only so many times that I can say the same
thing in a different way, but we have transitioned 19 of the EU’s
measures and we have adopted systems in Britain for trade
remedies based on international best practice to ensure that
there is independence in this area. I say to the hon. Lady, as I
have said already to her Scottish nationalist colleague, that the
biggest market for Scotland is of course the British internal
market, from which she is determined to tear Scotland.
Unfair Trading Practices
(North Norfolk) (Con)
What steps she is taking to tackle the use of (a)
trade-distorting subsidies and (b) other unfair trading
practices.
The Secretary of State for International Trade ()
It is completely wrong that other countries are applying unfair
practices to undermine fantastic British products. I am working
with the new director of the World Trade Organisation, Dr Ngozi,
to ensure that other countries play by the global rules of free
trade.
[V]
The wool trade started in Norfolk in medieval times, many, many
years ago, and we have always been an outward-looking area to the
world, but for trade to be free, it must also be fair. Can my
right hon. Friend tell me what steps she is taking to protect
vital industries to ensure that they are not undercut by those
unscrupulous countries that engage in unfair trading practices?
We are establishing the new Trade Remedies Authority—which, of
course, the Opposition voted against—in the Trade Bill, which
will ensure that all countries follow the WTO rules. It will look
at the evidence and be unafraid to recommend countervailing
duties on exports when other countries do not play by the rules,
so Chinese products, such as steel and ceramics, that receive
unfair state subsidies that will distort trade and damage British
business will be tackled.
Jobs in Yorkshire
(Colne Valley) (Con)
What recent estimate she has made of the number of jobs in
Yorkshire that are delivered by international trade.
The Parliamentary Under-Secretary of State for International
Trade ()
New research published alongside the Board of Trade paper “Global
Britain, local jobs” estimates that 418,000 jobs were supported
by exports in 2016 in Yorkshire and Humber. [Interruption.] Of
course, the shadow Secretary of State laughs at the mention of
jobs. It is notable how, in session after session, one issue that
the she does not focus on is jobs and the livelihoods on which
people depend. Of those jobs—I thank her for stopping her
chuntering from a sedentary position. Of those
jobs—[Interruption.] Oh, she has not stopped. Of those jobs,
234,000 were supported directly by exporting businesses, while a
further 184,000 form part of the UK supply chain of exporting
businesses.
[V]
I recently hosted an online Department for International Trade
roundtable with local businesses, giving advice and support on
exporting. Will the Minister please thank his team for helping to
host that session? Will he make sure that the Department
continues to invest in regional exporting advisers to support
businesses across Colne Valley and Yorkshire so that we can
continue to take full advantage of the new, exciting
opportunities that international trade is bringing?
I thank my hon. Friend: is it not fantastic and uplifting to have
someone who is genuinely dedicated to supporting and promoting
the jobs upon which so many families depend? I am delighted that
he has joined DIT’s parliamentary export programme, as have
colleagues from right across this House, supporting and
encouraging businesses to grow internationally, including through
unlocking the benefits of the free trade agreements. As he
rightly highlights, DIT has 28 international trade advisers
dedicated to the Yorkshire region who help small and medium-sized
enterprises to fulfil their exporting potential and connect them
to international business opportunities.
Trade and Investment in Wales
(Aberconwy) (Con)
What recent assessment she has made of the economic effect of
international trade on Wales.
The Secretary of State for International Trade ()
Last month, I announced our new trade and investment hub in
Wales, which will support almost 200,000 exporters and channel
investment into Wales. It will play a crucial role in the
export-led, jobs-led recovery for Wales.
[V]
The UK Government’s plan for a trade and investment hub in Wales
is welcome support for business here in Wales. It will support
exporters and help to restore inward investment in Wales to the
levels we enjoyed in the past. What benefits has the Secretary of
State identified that the hub will bring to exporters here in
Aberconwy and across north Wales?
The trade and investment hub will provide support to business
across Wales. There are already 2,000 people in Aberconwy working
in export-intensive industries. The trade hub will provide
support, including for Welsh lamb exports, which have resumed
after more than 20 years to countries such as Japan.
(Harrow West) (Lab/Co-op)
The Government’s “Global Britain, local jobs” analysis does not
take into account Brexit or covid, it ignores Welsh farming and
Welsh steel production, and it appears to think that there are
still 1,500 people employed in car production in Bridgend, which
sadly there are not. Does the Secretary of State therefore think
that this outdated, incomplete analysis is a reliable foundation
on which to base her trade policy for Wales?
The analysis that we produced as part of “Global Britain, local
jobs” is the first time that we have produced data at a
constituency level for export industries, and it always takes
time for statistics to be processed. The new Trade Bill has
enabled us to get access to more up-to-date data that we will of
course continue to update our strategy with. I was hoping that
the hon. Gentleman would welcome the new trade hub that we are
establishing in Cardiff, which will bring more investment to
Wales—so let us hear from him.
I think what the Secretary of State meant to say was that there
is room for improvement, and that is certainly true. The stark
reality is that Wales is getting a raw deal from the Trade
Department. According to her own figures, the Department
delivered 638 new inward investment projects for London but just
62 for Wales—a lower number of new investment projects than in
any region in England, and for three years in a row. How can she
justify those figures?
We are establishing a trade and investment hub in Cardiff this
year that will employ up to 100 people precisely to bring more
investment into Wales, more jobs into Wales, and more export
opportunities into Wales.
Arms Exports: International Humanitarian Law
(Liverpool, Riverside) (Lab)
What steps she is taking with Cabinet colleagues to ensure that
arms exported from the UK are not deployed in contravention of
international humanitarian law.
The Parliamentary Under-Secretary of State for International
Trade (
)
All arms exports require an export licence. I can assure the
House that we take our export control responsibilities very
seriously. We rigorously assess every application on a
case-by-case basis against the consolidated EU and national arms
export licensing criteria, taking advice from the Foreign,
Commonwealth and Development Office and the Ministry of Defence.
We will not issue an export licence where to do so would be
inconsistent with the consolidated criteria, including where
there is a clear risk that the items might be used for a serious
violation of international humanitarian law.
[V]
The Yemeni community in Liverpool would like to know how the
Minister can possibly justify the decision of his Department to
increase its sales of bombs and missiles for use in Yemen to new
record highs, while his friends at the Foreign Office are
simultaneously cutting the amount of humanitarian aid going to
starving Yemeni children. Does he accept that this is not just
wrong, but downright immoral?
Mr Jayawardena
Not only are Her Majesty’s Government one of the biggest donors
of aid around the world, including to Yemen, but as was set out
in the Secretary of State’s written statement, we have devised a
clear and revised methodology to make sure we will only license
such products if they are consistent with the consolidated
criteria.
Trade Policies: Farmers
(Montgomeryshire) (Con)
What recent assessment she has made of the potential effect of
her Department’s trade policies on UK farmers.
The Secretary of State for International Trade ()
We want to sell more British food around the world and help
farmers make the most of our trade deals with 66 nations, plus
the EU. We launched the Open Doors campaign, which will help our
farmers to export to the world’s fastest growing markets.
It is well documented that the food produced by our farmers is
world class and demand around the world is increasing. Can my
right hon. Friend build on the success of her FTAs, especially
with Japan, in opening up markets for Welsh lamb and beef,
including the United States? There was success with the United
States on beef, and hopefully there will be on lamb. Can she
update us in particular on the United States and Japan?
Welsh farmers export £144 million of lamb and beef around the
world, and the recent opening of the US market to beef and the
Japanese market to lamb will boost the figures further. Last
month, I visited Kepak, which is already shipping beef to the US
from farms across Wales, including in my hon. Friend’s
constituency.
(Islington South and Finsbury) (Lab)
I am sure that the Secretary of State will want to join me in
thanking and all the
members of the Trade and Agriculture Commission for their final
report published last month. Can I start by asking her when the
Government intend to publish the core set of standards that the
commission has called for, setting out the UK’s minimum
requirements for tariff reductions when it comes to food safety,
the environment and animal welfare?
I completely agree with the right hon. Lady that and the team
produced a fantastic report laying out the future for British
agricultural trade, and I am also delighted that she welcomes the
recommendations to promote the liberalisation of trade to
influence innovation and productivity, and price and choice for
consumers. We will be responding to the report in due course.
I thank the Secretary of State for the answer, but it is vital
that when this House comes to examine the upcoming trade
agreements with Australia and New Zealand, we are able to judge
them against that core set of standards. Can I ask her to make it
clear today that there will be no proposed reduction in tariffs
as a result of those two agreements for any agricultural products
that do not meet Britain’s core standards?
Part of the Trade Bill was the establishment of the statutory
Trade and Agriculture Commission. For every free trade agreement,
it will produce a report on precisely the issues that the right
hon. Lady outlines. I am very pleased that our partners in
Australia and New Zealand are two countries with very high
standards in animal welfare.
Trade Sanctions on Exports from Xinjiang
(Bolton South East) (Lab)
What recent discussions she has had with her US counterpart on
trade sanctions on exports from Xinjiang.
The Parliamentary Under-Secretary of State for International
Trade (
)
The Secretary of State spoke with the US trade representative,
Katherine Tai, on 22 March. They discussed a number of issues,
including how the United Kingdom and the United States will
collaborate to address shared concerns on serious matters such as
forced labour. The Secretary of State also discussed the issue of
forced labour with Ambassador Tai and her G7 counterparts during
the G7 Trade Ministers meeting that she chaired on 31 March.
[V]
The Magnitsky-style sanctions against China are only the first
step. While we welcome them, trade relations cannot be left out.
What steps are the Government taking to ensure that UK consumers
are not buying goods made with forced labour, and will the UK
follow the US in banning imports of cotton from China’s Xinjiang
region?
Mr Jayawardena
We are adopting a targeted approach to this issue, to make sure
that we address the violations of rights and responsibilities. We
have designated individuals and entities that have been involved
in such violations. This is a smart tool, carefully targeted to
achieve its goals, while minimising potentially negative wider
impacts. It is not designed with a view to imposing sanctions on
sectors within countries, for example.
UK and Sweden: Trade and Business Relationships
(West Aberdeenshire and Kincardine) (Con)
What steps her Department is taking to improve trade and business
relationships between the UK and Sweden.
The Minister for Trade Policy ()
Sweden is a close ally of the UK on trade policy and a close
partner in our day-to-day trading relationship. I was the first
UK Minister to visit Sweden after the EU referendum, and through
our excellent DIT team in Stockholm, we work hard to promote
trade and investment between the UK and Sweden.
I thank my right hon. Friend for his answer. According to a
recent report by the Swedish chamber of commerce for the UK,
almost 40% of Swedish businesses are optimistic about business
growth in the UK and 70% continue to see the UK as an important
step in international expansion. Does he agree that developing
links with this greatest Scandinavian country, which shares our
values and our growing economy, would be good for the UK, good
for jobs and good for developing relations with our partners in
the European Union?
I commend my hon. Friend for his work as the chairman of the
British-Swedish all-party parliamentary group and his mention of
the excellent Swedish chamber of commerce for the UK, which was
on one of my recent webinars. In my recent call with Swedish
Trade Minister Anna Hallberg, we agreed to co-host a bilateral
trade and business forum later this year. We have excellent trade
co-operation with Sweden in sectors such as technology, financial
services, defence and clean energy, so I very much share my hon.
Friend’s optimism.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(Eltham) (Lab)
What recent assessment she has made of the implications for her
policies of the UK joining the comprehensive and progressive
agreement for trans-Pacific partnership.
The Secretary of State for International Trade ()
Joining the CPTPP is a massive opportunity for UK businesses, in
particular those in areas such as financial services and digital,
where the rules are world-leading. It will also cut tariffs for
businesses in vital industries such as cars and whisky and help
to drive our exports-led, jobs-led recovery from covid.
[V]
The very first of the 238 questions put to the Secretary of State
in a letter from my right hon. Friend the Member for Islington
South and Finsbury () on accession to the CPTPP asked her whether the
UK will have the right to negotiate exemptions from those
provisions of the agreement to which we do not wish to accede and
amendments to those provisions to which we wish to make
improvements, or whether it is her intention to join the CPTPP
accepting all its current provisions in full. What is the
Secretary of State’s answer?
The CPTPP is a very high-standards agreement, and the rules will
have huge benefits for the UK. The reality is that UK products
such as beef and lamb have been locked out of overseas markets
for unfair reasons, so it is in our interests to sign up to a
high-standards, good-rules agreement.
(Islington South and Finsbury) (Lab)
As my hon. Friend the Member for Eltham () said, there are at least 238 questions that the
Secretary of State has to address on the subject of this
agreement, and I look forward to receiving her answers soon, but
today I want to ask her one simple one: can she guarantee that
this Parliament will have as much time to scrutinise the proposed
terms of accession to CPTPP before a vote on whether or not to
approve them as the Australia, Canada and New Zealand Parliaments
had before their respective votes?
I thank the right hon. Lady for her question—she clearly comes
from a profession where she was paid by the number of questions
she asked. I will be delighted to answer all those questions and
more when we publish the public bundle, which will include the
scoping assessment and our negotiation objectives. We will
publish that at the time of launching our negotiations, and we
will also have full parliamentary scrutiny, including by the
statutory Trade and Agriculture Commission, in line with
parliamentary systems across the world.
UK Exports: Germany, Italy and Ireland
(Stirling)
(SNP)
What recent estimate her Department has made of the value of UK
exports to (a) Germany, (b) Italy and (c) Ireland in 2021.
The Minister for Trade Policy ()
The UK greatly values its trade with each of Germany, Italy and
Ireland. All trade data is currently volatile, especially due to
the pandemic, but data released earlier this week showed a
monthly upwards bounce in UK goods exports to the EU to £11.6
billion in February from £7.9 billion in January, including
increases to all three countries referred to in the question.
[V]
I appreciate that those on the Government Benches prefer
breathless rhetoric to harsh reality, but the statistics to which
the Minister refers are really quite clear for rural Scotland.
Its meat exports remain down 52%, fish and shellfish are down
54%, dairy and eggs down 39%, beverages down 34%, cereals down
40%, and fruit and veg down 54%. Would the Minister like to
apologise to the tens of thousands of people across rural
Scotland who are in daily dread and fear of what their economic
future holds?
I thank the hon. Member for that follow-up question, and I wonder
if, to coin a phrase, he has perhaps taken his eye off the ball,
because actually there was a bounce back in trade in February. I
will give him an independent view from the Office for National
Statistics, which on the trade data says:
“Exports of food and live animals to the EU increased…in February
2021, after being significantly impacted in January… Exports of
fish and shellfish to the EU also saw an uptick in February 2021
as exporters adjust to new regulations following the end of the
transition period. The disruptions to food exports in January
2021 appear to have largely been overcome and may have only had
short-term impacts on trade.”
That is from the Office for National Statistics, which he may
seek to consult.
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
I am delighted the Minister has quoted the ONS, because figures
out this week show economic output remaining nearly 8% below the
pre-pandemic peak and exports to Germany, Italy and Ireland down
by as much as 50% to 75%. These are not teething problems; they
are the bite of long Brexit. Does the Minister agree with Matt
Griffith from the British Chambers of Commerce that his members
are experiencing a
“permanent deterioration in their competitive position due to
higher admin, paperwork and shipping costs”?
It is good to have an argument about statistics, but actually the
UK exports to the EU in February of £11.6 billion were only just
below the monthly average for the whole of 2020, which was
obviously very impacted by the pandemic, of £12 billion. I would
caution against using statistics in this way—we need to see the
bigger picture—but I refer the hon. Member back to what the ONS
said. On the help we are providing for exporters, we have various
Government helplines, the Brexit business taskforce, Brexit SME
support and various measures in place specifically to support the
agricultural sector and the Scottish seafood sector.
Let us come away from statistics and back to what is happening.
JP Morgan boss Jamie Dimon wrote to staff this month warning them
that it will move all its EU-faced business out of London and
into Europe. He says:
“Brexit was accomplished, but many issues still need to be
negotiated. And in those negotiations, Europe has had, and will
continue to have, the upper hand.”
The financial services sector is a huge employer in Scotland, and
it is also facing this Westminster-inflicted disaster. Can the
Minister now see why people in Scotland want to have their choice
and their say over their own future?
The hon. Member will know that there is of course a financial
services memorandum of understanding between the UK and the EU,
and we are acutely aware of the importance of the financial
services sector, not least to my constituency as well. Many, I
have to say, were surprised when the SNP voted for no deal on 30
December, especially after called it “unthinkable”. However, I have to say that
I was not as surprised, because over the years I have seen the
SNP vote against every single UK or EU trade deal, so the idea
that it was going to vote in favour of a trade deal between the
two of them was, frankly, highly unlikely. The SNP is
anti-business, anti-jobs and against Scotland’s best interests.
Trading Relationship with Tunisia
(Southport)
(Con)
What recent assessment she has made of the potential merits of
strengthening the UK’s trading relationship with Tunisia. [R]
The Parliamentary Under-Secretary of State for International
Trade (
)
I am grateful to my hon. Friend for his work as the Prime
Minister’s trade envoy to Tunisia and Libya. There is great merit
in strengthening the trading relationship with Tunisia. Our trade
deal entered into force at the beginning of this year and it
provides a platform to deepen trade and investment. As he knows,
we are already supporting businesses such as Unilever,
AstraZeneca and Vodafone, who already operate in Tunisia, and we
look forward to backing British businesses to do even more.
[V]
Tunisia is a leading exporter of olive oil and wants to export
more to the UK, but minimum quota requirements based on the last
two years are making this difficult. Will my hon. Friend look
into this so that trade is made easy with Tunisia, which is eager
to build an even stronger trading partnership with the UK?
Mr Jayawardena
I am aware of this matter and am keen to make sure that
businesses can make the most of our transition to trade
agreements, so I will look into it. I look forward to working
with my hon. Friend and my Tunisian counterpart to open up and
promote opportunities for British and Tunisian businesses; more
trade means more jobs.
Jobs in Teesside
(Redcar) (Con)
What recent estimate she has made of the number of jobs in
Teesside that are delivered by international trade.
The Secretary of State for International Trade ()
My hon. Friend will be delighted that Teesside will benefit from
one of eight new freeports, unlocking billions of pounds of
private sector investment, and it will also help British
businesses not just in his constituency but across the whole of
the UK, including the 300,000 export-linked jobs in the
north-east.
I thank the Secretary of State for her answer and for her support
for Teesside exporters. From raw chemicals to plastics and steel,
Teesside manufacturers rely on global trade, so I am grateful to
her Department for the work it has done, alongside Tees Valley
Mayor , to bring more jobs, including in her Department, to
the Tees valley. Can she outline when we might start to see these
DIT jobs coming to Teesside, and what is her message to the
people of the Tees valley ahead of the important elections next
month?
My message is that is doing a fantastic job, as is my hon. Friend. I am
delighted that we are establishing a new trade hub in Darlington,
which is only half an hour’s drive from my hon. Friend’s
constituency. There are over 4,000 jobs in export-related
industries in Redcar, including in the chemicals industry, and we
will be doing even more to support them with the new Darlington
trade hub.
Free Trade Agreements: Professional Business Services
(Bracknell) (Con)
What steps she is taking to promote professional business
services in free trade agreements.
(Kensington)
(Con)
What steps she is taking to promote professional business
services in free trade agreements.
The Minister for Trade Policy ()
The UK is a world leader in professional business services and
the second biggest exporter of PBS globally, with a trade surplus
of £33 billion in 2018. To support this important and diverse
sector, we are seeking ambitious FTA commitments in cross-cutting
areas like mobility and digital, as well as tackling specific
behind-the-border regulatory barriers such as recognition and
professional qualifications.
The Minister will forgive me for being a bit concerned about
ongoing red tape in post-Brexit trade with the European Union.
This is affecting businesses in Bracknell and beyond. Will he
please outline what his Department is doing to support the
Cabinet Office in resolving this?
DIT has very active participation in the current helplines for
businesses facing issues in exporting to the EU. We participate,
of course, in the Brexit business taskforce, we provide a DIT
internationalisation fund for those looking to export, and we
have 300 international trade advisers across the country and at
posts right across the European Union. This is a
whole-of-Government effort, and, as I said earlier, the data are
starting to show encouraging signs of a recovery in our trade.
Many of my Kensington constituents work in professional services,
whether financial services, law, consulting or accountancy. These
industries account for a huge amount of gross value added to our
economy. Can my right hon. Friend assure me that the professional
services sector will be at the forefront of our minds in
negotiating future trade deals?
My hon. Friend and neighbour puts it extremely well. Professional
business services are vital for her constituency, for mine and
for the whole country. Around 79% of gross value added and 80% of
employment in this country is in services. As she knows, we
secured special provisions for legal services in the EU
agreement. I meet regularly with bodies such as TheCityUK, the
City of London Corporation, UK Finance, the Royal Institute of
British Architects, the Institute of Chartered Accountants in
England and Wales, the Law Society, the Bar Council and others to
ensure that professional business services are right at the heart
of the UK’s trade agenda.
Trade Relationship with the Middle East
(Harlow) (Con)
What steps she is taking to strengthen the UK’s trade
relationship with the middle east.
The Parliamentary Under-Secretary of State for International
Trade (
)
Britain has strong bilateral trading relationships with our
friends in the middle east and a clear ambition to deepen them.
As my right hon. Friend knows, we are undertaking a joint trade
and investment review with the Gulf Co-operation Council, with
which total trade stood at over £33 billion in the year to
September 2020. The Government have also signed trade agreements
with Jordan and Lebanon, and just last month we entered into an
agreement with the sovereign wealth fund of Abu Dhabi to provide
£1 billion of investment into British life sciences.
[V]
Today is Yom Ha’atzmaut—Israeli independence day—so I hope that
my hon. Friend will wish Israel happy independence day. The
normalisation of ties between Israel and the United Arab Emirates
and Bahrain last year was a hugely positive step not only for
regional peace but for commerce, tourism and cultural exchanges.
Does my hon. Friend agree that the United Kingdom is well placed
to support our ally Israel in developing ties in the region, and
will he explore the opportunities that these new trade
relationships could bring to our country?
Mr Jayawardena
Indeed I do join my right hon. Friend in wishing all Israelis a
happy independence day. He is right to recognise the strong
relationships that we have with the state of Israel. We welcome
the normalisation of relations, which creates many opportunities
for increased trade, tourism and cultural links as well. Britain
is well placed to support Israel in this endeavour. Total trade
between us was £4.9 billion in the year to September 2020, up
from the previous year. We are building a framework for a new
bilateral science partnership. In addition, the tech hub based in
the British embassy in Tel Aviv continues to partner Israeli
expertise with British companies, delivering significant benefits
to the British economy.
Jobs in the North-west
(Bolton North
East) (Con)
What recent estimate she has made of the number of jobs in the
north-west that are delivered by international trade.
The Parliamentary Under-Secretary of State for International
Trade ()
Around 630,000 jobs in the north-west were supported by exports
in 2016, and export—[Interruption.]
Mr Speaker
Order.
Export activity helped support a further 472,000 jobs in the
region through the consumption spending of export workers in the
wider economy. In total, more than 1.1 million jobs—not a
laughing matter, Mr Speaker—in the region are linked to exports
in some way.
[V]
Napoleon said that Britain was a nation of shopkeepers; I want to
say that Bolton is a town of exporters. I recently hosted the
parliamentary export programme in Bolton North East, seeking to
help Bolton businesses such as Ajax Equipment and Velden
Engineering to take advantage of new trading relations. Across
Greater Manchester, foreign direct investment and foreign capital
investment are worth £37 billion to the local economy. What
actions is the Minister taking to put Bolton North East at the
forefront of the global stage when it comes to research and
development?
It is as much my hon. Friend as me who is putting Bolton North
East at the forefront. He has joined colleagues as a member of
the parliamentary export programme, and I congratulate him on
hosting a recent event. He will have seen that we are working
hard to help Bolton North East companies take advantage of new
global opportunities and promoting a strong north-west R&D
offer to international investors through the high potential
opportunities programme in frontier sectors such as molecular
diagnostics, lightweighting and sustainable packaging.
Future Trade Deals: Human Rights Clauses
(North
Ayrshire and Arran) (SNP)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights into future trade deals.
(Ealing, Southall) (Lab)
What recent discussions she has had with UK trade partners on
inserting clauses on human rights into future trade deals.
The Minister for Trade Policy ()
The UK has long supported the promotion of our values globally.
We are clear that more trade does not have to come at the expense
of human rights. Although our approach to agreements will vary
between partners, our strong economic relationships allow us to
have open discussions on a range of issues, including human
rights and responsibilities.
In a leaked recording last month, the Foreign Secretary said he
wants to do trade deals with countries that violate international
standards on human rights, as not doing so would mean missing out
on profit. Will the record now be set straight? Does the Minister
recognise the remarks made by the Foreign Secretary as Government
policy and is this the view shared by the Department for
International Trade?
I think the hon. Lady has misquoted the Foreign Secretary in her
account of what he said, but let me be absolutely clear that we
will continue to encourage all states to uphold international
human rights obligations. The UK has long supported the promotion
of our values globally and remains absolutely committed to its
international obligations. We are currently negotiating with
Australia, New Zealand and the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership. They will all be
important partners and they are all places that the UK will be
engaging with when it comes to questions of maintenance and
international support for global human rights.
Mr Sharma [V]
I will make the Minister’s life a bit easier when answering the
question. Last month, the Foreign Secretary explained that there
were some countries whose behaviour on human rights put them
“beyond the pale” when it comes to trade agreements, but that
otherwise we should be open to deals with anyone. Can the
Minister of State save us some time by listing those countries
whose behaviour the Government regard as beyond the pale and
those that they regard as acceptable?
Again, I will have to go back and see exactly what the Foreign
Secretary said, but I think the hon. Gentleman’s interpretation
of what he said is not quite right. Let us be absolutely clear. I
ask him to have a look at the roll-over trade agreements we have
already done with 66 countries and see if he can identify any
diminution of human rights in the agreements we have already
done.
Topical Questions
(Colne Valley) (Con)
If she will make a statement on her departmental
responsibilities.
The Secretary of State for International Trade ()
On 4 March, we struck a historic deal with the US Administration,
heralding the end of the 16-year Airbus-Boeing dispute. The deal
removes the 25% tariffs on some UK exports, such as Scotch
whisky, cashmere and machinery. It paves the way for an even
deeper trading relationship with one of our closest friends and
allies. I continue to work with the US trade representative on
the deal and on our broader trading relationship.
[V]
As co-chair of the all-party group for Fairtrade, may I please
ask the Secretary of State what steps her Department is taking to
make sure that our trade policies help and support Fairtrade
farmers and growers across the world?
I congratulate my hon. Friend on his work on the all-party group.
The UK is a long-standing supporter and champion of Fairtrade. We
are opening up markets with developing countries such as Kenya
and Ghana. We will shortly be launching our new general scheme of
preferences, which will give more access to developing countries,
helping them to grow through trade.
(Slough) (Lab)
The New Zealand Government announced last month their policy
towards countries such as the UK seeking to join the
Trans-Pacific Partnership. They said: “New members…will need to
comply with the existing…agreement. The text of the Agreement
will not change. Current rules and obligations…will not change.”
Is the Secretary of State concerned that that sounds very much
like we will be rule-takers in the CPTPP, rather than
rule-makers?
The UK is a country that follows the rules. We have very high
standards in areas like the environment, animal welfare, food
standards and intellectual property. It is in our interests to be
in an agreement with high standards, so that we can ask the same
of other countries and get access to their markets. That is the
point of signing trade agreements.
(Burnley) (Con)
As we follow the covid-19 road map and move from response to
recovery, it is vital that we offer our small and medium-sized
businesses the tools and support that they need to find new
markets, grow their exports and spur on our economic growth. Will
the Minister set out what steps the Department is taking to make
sure that our SMEs are supported on the world stage?
The Parliamentary Under-Secretary of State for International
Trade ()
My hon. Friend is quite right to highlight the importance of
supporting SMEs precisely to get into that international business
space. That is why we are developing a new export strategy. We
have the developing Export Academy, with a range of toolkits and
information to support small businesses. We have the
internationalisation fund: £38 million of grants to help
businesses to overcome any barriers to international trade. Last
but not least, we have UK Export Finance, our award-winning
credit agency, which has increasing numbers of staff not only
across this United Kingdom, but across the world to make sure
that SMEs, wherever they go, can be financed and supported to
realise those opportunities, which are many.
(Swansea West) (Lab/Co-op) [V]
Sixty per cent. of Wales’s exports have been to the EU and steel
is of great importance. Given that the Government’s own Office
for Budget Responsibility forecasts showed that the Brexit deal
would lead to a 4% reduction in our GDP, and given that they are
removing the safeguards on steel in June, does the Secretary of
State accept that the overall amount and value of exports from
Wales in the next five years will be less than it was in the
previous five years due to the Government’s policies?
First, we are not removing the safeguards in June. When we were
part of the EU, decisions about safeguards were made on an
independent basis. Nobody on the Opposition side of the House
complained about that then, but they seem to object to
independent decisions being made when we are a sovereign nation,
which I find utterly bizarre. And I do not agree with the hon.
Gentleman’s pessimistic prognosis of the future of Welsh exports.
We have massive opportunities for more beef exports, more lamb
exports, more car exports and more aerospace exports, and that is
what we are going to do through our new trade and investment hub
in Cardiff. It is going to be driving those opportunities and I
urge him to get behind it.
(Ipswich) (Con) [V]
In Ipswich, we are fortunate to have an incredibly engaged local
Indian community, many of whom run businesses sourcing goods
coming from India. Also down the road, let us not forget, is
Felixstowe, which takes in most of the goods that come in from
India and then go around the rest of the country. Do the
Government have any plans to closely engage with local
communities, such as the Indian community in Ipswich, and
possibly introduce cultural exchanges to bridge any cultural
barriers there may be and therefore increase and boost trade
between our country and our close friends, India?
I would be delighted to engage with the local Indian community in
Ipswich and across the country, because I think we have huge
opportunities to expand our trade with India. It is currently £24
billion, but it could be so much more. We are currently working
on an enhanced trade partnership with the Indian Government and I
look forward to engaging with my hon. Friend and the people of
Ipswich to make it happen.
(Cambridge) (Lab)
May I ask the Secretary of State if she understands the
frustration of the Cheshire Cheese Company, whose co-founder, I
understand, spoke to officials in her Department before Easter
about the problems that they are facing exporting to the EU?
Extraordinarily, instead of being given advice on how to fix the
problem, they were advised to look for other emerging markets.
Given the Secretary of State’s infamous passion for cheese, will
she tell us whether her departmental officials could not have
done better?
I am very happy to help the cheese company export not just to the
EU, but around the world.
(Cleethorpes) (Con) [V]
Since the announcement that Immingham and the Humber ports have
been designated as a freeport and that their application scored
high in every category, businesses from around my constituency
have been contacting me to welcome the announcement. They see it
as part of the Government’s global Britain policies. What plans
does the Department have to ensure that they can benefit from the
freeport and explore new markets?
Like my hon. Friend, I am celebrating the freeport, which will
make a positive difference and from which businesses will be able
to export all around the world. Our export academy, the new
export strategy and other elements are all there to help them to
make the most of it, as well as, of course, probably the most
ambitious trade policy ever conducted by a major economy in
history, which we are successfully prosecuting. If I may, Mr
Speaker, I would also like to thank my hon. Friend for briefing
me ahead of my visit to Serbia last week, prosecuting the case
for British businesses, in his role as the Prime Minister’s trade
envoy to the western Balkans.
(Edmonton) (Lab/Co-op) [V]
It is now almost six weeks since the Government signed a trade
agreement between the UK and Cameroon, which many of us want to
read, to see how it will address the shocking human rights abuses
taking place in that country. Will the Secretary of State explain
why the agreement has not yet been laid before Parliament, and
will she guarantee a debate when it is?
The Parliamentary Under-Secretary of State for International
Trade (
)
The text, and a parliamentary report and explanatory memorandum,
will of course come before Parliament in due course. We wish to
utilise the agreement to strengthen the trade ties between our
two countries. I look forward to the Labour party supporting our
agenda to create more jobs in every part of this country and in
Cameroon.
(Wakefield) (Con)
I have been delighted to work with the excellent team at the
Department of International Trade in setting up the parliamentary
export programme in Wakefield, which several Wakefield businesses
have joined. The programme has allowed them to learn the benefits
of exporting under the free trade agreements that my right hon.
Friend the Secretary of State and her excellent, dynamic team
have signed thus far. With more free trade agreements to be
ratified, including with blocs such as the CPTPP, can my right
hon. Friend outline to the House what benefits these new
agreements will bring to businesses in Wakefield and across West
Yorkshire?
The Minister for Trade Policy ()
I thank my hon. Friend for promoting the trade agenda so
effectively in Wakefield. He is quite right that free trade
agreements have a crucial role to play in enabling the UK to
seize international opportunities to support that economic
vision. Joining CPTPP now will benefit businesses in a number of
ways, including through ambitious rules supporting digital trade
and reduced tariffs on UK exports, enabling us to build back
better and building more opportunities for businesses, supporting
jobs in constituencies such as Wakefield.
(Dundee West) (SNP) [V]
In its annual report on human rights around the world, Amnesty
International says that the UK Government’s increasingly hostile
attitude towards upholding and preserving human rights
legislation raises “serious concerns”. Indeed, the report
specifically cited the resumption of the sale of new licences for
military exports to Saudi Arabia. Does the Minister agree with
Amnesty International’s conclusion that this shameful move has
contributed to the UK’s“headlong rush into abandoning...human
rights”?
Mr Jayawardena
Not at all. We have always been clear that more trade need not
come at the expense of our values, as my right hon. Friend the
Secretary of State made clear earlier today. We have one of the
most robust systems of arms export controls in the world and have
always been clear that we will only permit exports on a
case-by-case basis where the consolidated criteria are upheld.
(Harlow) (Con) [V]
Will my right hon. Friend set out what progress her Department is
making on meeting the 2.3% public sector apprenticeship target
and when it will meet it, and also say what she is doing to
encourage all the businesses that she speaks to about
international trade to employ apprentices?
I commend my right hon. Friend for his work to promote
apprenticeships, first in the Government and then as Chair of the
Education Committee. It is too early to have final figures for
2021, but we are confident of achieving the legislative target
set, building on our previous performance. According to Cabinet
Office statistics, DIT achieved 3.5% of its total workforce in
England as apprenticeship starts in 2019-20, up from 1.1% the
year before, easily clearing the target of 2.3%.
