Israel: Trade Co-operation Scott Benton (Blackpool South) (Con) 1.
What progress she has made in discussions with her Israeli
counterpart on an agreement for further trade co-operation beyond
the trade continuity deal. The Secretary of State for International
Trade (Anne-Marie Trevelyan) I welcome the right hon. Member for
Torfaen (Nick Thomas-Symonds) to his place. It is a pleasure to be
working with him, and I look forward to discussing some of the many
exciting things...Request free trial
Israel: Trade Co-operation
(Blackpool South) (Con)
1. What progress she has made in discussions with her Israeli
counterpart on an agreement for further trade co-operation beyond
the trade continuity deal.
The Secretary of State for International Trade ()
I welcome the right hon. Member for Torfaen () to his place. It is a
pleasure to be working with him, and I look forward to discussing
some of the many exciting things that will be going on in the
Department for International Trade in the months ahead.
As my hon. Friend the Member for Blackpool South () is aware, on Monday the
Prime Minister announced plans to enhance our trade and
investment relationship with Israel. Last week, I held productive
talks with the Israeli ambassador on the matter, and I look
forward to strengthening that important trading relationship.
As the Prime Minister rightly said on Monday, our close
co-operation with Israel on security, science and technology
benefits not only our two respective nations, but the entire
world. Does my right hon. Friend agree that the new strategic
agreement signed between the UK and Israel will further enhance
those ties over the next decade, and will she update the House on
when we can expect the consultation period for the new bilateral
free trade deal to begin?
The strategic agreement signed with Israel is the starting post
for a series of activities that will deepen our trading
relationship. We will be opening a public consultation on our
enhanced bilateral free trade agreement in January, and we look
forward to hearing the views of businesses and stakeholders
across the UK on their priorities for that deal. We will also be
hosting a joint innovation summit with our Israeli friends in
March next year, in order to support new technology ideas.
(Huddersfield)
(Lab/Co-op)
Is the Secretary of State aware of the huge dynamic in Israeli
universities? Will she make every effort, including with
resources, to encourage partnerships between UK and Israeli
universities, in terms of research, development and
innovation?
As I said, we will be hosting a joint innovation summit in March
with our Israeli friends in those areas of research and
development, as mentioned by the hon. Gentleman. How we can work
together between our universities is very much on our list of
priorities, and I am also working closely with the Secretary of
State for Education to ensure that we link in the international
relationships that we want to grow with Israel.
Free Trade Agreements
(Kettering) (Con)
2. How many free trade agreements her Department is
negotiating.
The Parliamentary Under-Secretary of State for International
Trade ( )
For the first time in 50 years, we are an independent trading
nation, able to strike deals around the world. We have already
secured trade deals with 70 countries, plus the EU, covering
trade worth £766 billion last year, and we are just getting
started. We have secured an agreement-in-principle with Australia
and New Zealand, and we continue to work on a deal with the US.
We are preparing for negotiations with India, Canada, and Mexico,
and we have also launched a public consultation on a deal with
the Gulf Cooperation Council. As we have heard from the Secretary
of State, we are due to begin work early next year on an enhanced
and improved free trade agreement with Israel.
Mr Hollobone
Warner’s Distillery, based in the village of Harrington in the
Kettering constituency is the largest independent craft-based gin
distillery in the country, and it is seeking to export even more
of its wonderful product. Is it not the case that businesses that
export are more profitable, productive and resilient, and is it
not exciting for businesses such as Warner’s Distillery, and
other businesses in Kettering, that more free trade agreements
are coming down the track?
Mr Jayawardena
I completely agree with my hon. Friend. Across north
Northamptonshire, businesses such as Warner’s Distillery are
exporting some £1.5 billion of goods around the world, as
measured in 2019. I am confident that the trade deals we are
signing globally will benefit more businesses just like Warner’s,
to create opportunities and support jobs in my hon. Friend’s
corner of the country, and beyond.
(Na h-Eileanan an
Iar) (SNP)
The Minister will know that the ratio between damage from Brexit
and the trade deals is substantial. Indeed, in terms of pounds,
there is £490 of Brexit damage for a £1 gain from the New Zealand
deal, £2 gain from Australia, £8 gain from the comprehensive and
progressive agreement for trans-Pacific partnership, and £20 gain
from America, if that comes together. If all that happens, it
comes to about £31. Where will the Minister find the £459 of
Brexit damage that the trade deals cannot make up?
Mr Jayawardena
We are working for every corner of our United Kingdom, backing
British businesses. We are supporting Scottish jobs as much as
those in England, Wales and Northern Ireland, at a time when the
SNP wants to cut itself off from its largest market, the British
internal market. The truth is that the SNP is anti-trade. Not
only does it want to cut itself off from the United Kingdom, but
it does not back any trade deal with anyone.
(Totnes) (Con)
The point and purpose of trade deals—I hope the Minister will
agree—is that they are not static, and the forecasts are just an
indication of what will come; they will be able to grow and
develop. Can the Minister reassure the House that the
comprehensive and progressive agreement for trans-Pacific
partnership offers an opportunity for the UK to expand its
businesses and its exports across the country?
Mr Jayawardena
My hon. Friend is of course right; the TPP offers a great
opportunity to access a fast-growing part of the world as part of
our Indo-Pacific tilt, as detailed in our integrated review. The
opportunity to engage with this part of the world, where there is
a growing middle class and increased demand for our products,
goods and services, is one that we should seize.
(Harrow West) (Lab/Co-op)
Free trade negotiations with the US are vital to lifting Donald
Trump’s tariffs on British steel and aluminium exports, which in
turn are crucial to protecting jobs and businesses in communities
across our country. Given that the US has already agreed to lift
tariffs on many EU steel products, if we are to get a level
playing field for our firms and our workers, might it not be time
for to be given a little help to
stop bungling discussions with the EU so that this vital US-UK
trade deal can be sorted?
Mr Jayawardena
We will always stand up for the British national interest, and
that includes with the European Union. We will make sure that our
United Kingdom remains strong and can trade with the world. The
truth is that America’s unjustified tariffs on UK steel,
aluminium and derivatives are unfair and unnecessary as those
imports do not harm US national security, so we will continue to
make representations to back British businesses.
British Exports
(North West Norfolk) (Con)
3. What steps her Department is taking to increase British
exports.
(Warrington South) (Con)
5. What steps her Department is taking to increase British
exports.
(Colne Valley) (Con)
9. What steps her Department is taking to increase British
exports.
The Parliamentary Under-Secretary of State for International
Trade ()
The Secretary of State announced a refreshed export strategy—Made
in Britain, Sold to the World—on 17 November during International
Trade Week. This business-centred 12-point plan is designed to
transform our support for exporters, encourage them to sell to
the world and accelerate our race to £1 trillion-worth of exports
per year.
I welcome that new strategy. The port of King’s Lynn handles half
a million tonnes of exports of barley and other high-quality
agricultural products as well as imports, and it has just had one
of its busiest years. Does my hon. Friend agree that the
investment that Associated British Ports is making in new
facilities to support the growing demand for timber from the
construction sector and other supply chains is a vote of
confidence in Norfolk and will help our economy to bounce
back?
I welcome ABP’s investment in King’s Lynn and was glad to hear of
the new Vancouver timber terminal, which I understand will open
on Monday, representing £1.4 million of investment. With 95% of
the UK’s trade facilitated by the maritime sector, our ports are
integral to UK trade and to the success of our Made in Britain,
Sold to the World strategy.
I am sure that the Minister, like me, has been incredibly
impressed by the small and medium-sized businesses that are
looking to export to new markets. What support is available for a
business such as N’Genius, which is based in my Warrington South
constituency and has patented a new high-strength stainless steel
that can revolutionise engineering and construction? How can this
Government help it export that UK innovation to the rest of the
world?
Our new export strategy is a 12-point plan focused on tackling
the barriers to trade faced by SMEs. We are opening markets and
supporting companies through the export support service, which
provides a single point of entry to DIT support for SMEs. This
new service will direct businesses to services such as those
provided by UK Export Finance, the UK Export Academy and our
pilot UK trade show programme. I am happy to connect N’Genius to
one of our international trade advisers for further
assistance.
Growing British exports has a key role in our levelling-up
agenda. I am particularly proud of some world-class textile,
engineering, sheet metal fabricators and food and drink
businesses in my Yorkshire constituency. What more can the
Minister and his Department do to support my world-class
Yorkshire businesses to export to the world?
Our export strategy will ensure that those companies in Yorkshire
will be supported through all stages of their exporting journey,
whether through the UK Export Academy, the advice of our global
network of international trade experts, or the financial support
or export credit provided by UK Export Finance. In my recent
visit to Leeds, I met our excellent team of international trade
advisers there. Again, I am more than happy to put them in
contact with my hon. Friend to provide additional support.
(West
Dunbartonshire) (SNP)
Exports from Northern Ireland to Ireland were €2.8 billion in the
first nine months of this year, up 60% on the same period in
2020. Does the Minister agree that while Brexit has been an
export disaster for GB, it has certainly been a boon for exports
from Northern Ireland?
The President of the Board of Trade, the Secretary of State for
International Trade, my right hon. Friend the Member for
Berwick-upon-Tweed () took the Board of
Trade to a meeting in Ireland. I am sure that that issue was
discussed. If the hon. Gentleman would like to know more details
of what we are doing to support mutual trade, I am more than
happy to have a discussion with him.
(Rutherglen and Hamilton
West) (Ind)
When negotiating free trade agreements, the Government must
promote and protect the interests of industries across the UK.
What steps are the Government taking to protect the interests of
Scottish agriculture in future negotiations?
The Department for International Trade is always looking to
protect our own industries and sectors, including the
agricultural sector, while ensuring that they are able to exploit
new markets. In terms of beef and lamb, our teams are working
hard to ensure that the new markets we are opening up will be
available to Scottish farmers. Again, if the hon. Lady would like
to know more about the support we are able to offer, I am very
happy to facilitate that discussion.
(Strangford) (DUP)
I thank the Minister for his responses, but bearing in mind the
fears of our farmers and farmers’ unions following the New
Zealand deal, will he outline what steps have been taken with the
Department of Agriculture, Environment and Rural Affairs at the
Northern Ireland Assembly to promote our British produce exports
to global markets affected by the New Zealand deal?
My understanding is that there are regular and frequent
conversations between the Department for Environment, Food and
Rural Affairs and DAERA. I am more than happy to ensure that the
hon. Gentleman gets details of those discussions if he has any
specific concerns he wishes to have addressed.
Labour Shortages: Exports and Imports
(Paisley and Renfrewshire
North) (SNP)
4. What recent assessment her Department has made of the impact
of labour shortages on UK (a) export and (b) import levels.
The Parliamentary Under-Secretary of State for International
Trade ( )
As the global economy has rebounded from the pandemic, we have
seen pressures placed on supply chains across sectors and across
the world. It is this Government who have taken quick and
decisive action across the United Kingdom to ease those pressures
where immediate interventions have been required. The
Minister is redefining “quick and decisive”. An Aviva study
indicates that more than seven out of 10 businesses are worried
about skills shortages and 25% of businesses said their biggest
risk is the uncertainty caused by Brexit. The temporary visa
scheme for poultry workers has now closed and only nine people
applied to join the Government scheme designed to boost the
number of fuel tanker drivers, out of an intended 300. Given the
failure of those schemes, why will the Government not consider
devolving immigration powers, which could deliver the stronger
labour market they profess to want but in reality are actively
frustrating?
Mr Jayawardena
I am afraid that SNP Members have not woken up to the reality of
the opportunities that we now have to trade around the world as
part of being an independent trading nation. The hon. Gentleman
refers to tanker drivers. Some 5,000 visas have been made
available for HGV drivers for a three-month period to provide
short-term relief. We have gone further. The long-term
sustainable solution is to support and develop our domestic
workforce, and to improve the pay and conditions in the sector.
That is why the Government are working to correct the structural
problems in the haulage industry. We are increasing testing
availability by 50,000 a year. We are streamlining the process
for efficiency and we are committing £17 million in free skills
boot camps for HGV drivers.
(Sefton Central) (Lab)
The problem that the Minister has is that the shortage of HGV
drivers in the UK is happening now. It is already causing huge
disruption and we are all anxious to ensure that the situation
does not get worse in the run-up to Christmas. Will the Minister
tell us how many of the 5,000 temporary worker visas that the
Government made available to overseas lorry drivers in September
have been allocated?
Mr Jayawardena
We are not going to provide a running commentary on numbers, but
what I can tell the hon. Gentleman is that this is not a problem
faced only by the United Kingdom. He is so keen always to talk
about our friends across the channel, so he will know that France
has a shortage of 40,000 drivers, Germany has a shortage of
60,000 drivers, and Poland has a shortage of 120,000 drivers.
I find it extraordinary that the Minister was unable to tell us
how many visas have been allocated to overseas HGV drivers. We
were told in October that it was just 20; I wonder what the
figure is now. The reality is that the Wine and Spirit Trade
Association warns of “delivery chaos”, of
“major delays on wine and spirit delivery times”
up to five times longer than last year and increases in freight
costs—no doubt that will not affect parties in Downing Street.
Does he want to be responsible for cancelling Christmas
celebrations elsewhere, because if not, he needs to give a much
better answer than the one he just gave?
Mr Jayawardena
Perhaps the hon. Gentleman has not realised that this is not
Transport questions, but International Trade questions—I am sure
that his new shadow ministerial colleagues will raise questions
with Transport Ministers in due course. We continue to see
businesses thriving, including in the wine and spirit industry,
as my hon. Friend the Member for Kettering (Mr Hollobone) pointed
out.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
Eight out of 10 businesses in Scotland say that they need to
recruit staff, yet three quarters are reporting skills shortages.
Businesses cannot export what they can neither make nor supply,
yet the Government’s already tired 12-point plan, which has been
mentioned this morning, has nothing to cover workforce shortages
or dealing with them. Will the Minister explain why?
Mr Jayawardena
Again, this is International Trade questions, but I am happy to
provide an answer on behalf of the Government. We are putting
significant resources into training people up to develop our
domestic workforce. My understanding is that many people are very
keen to find a new job potentially in a new industry. This
Government will help them to do that.
Clearly, the Government are keen to duck all these issues
relating to trade. The Federation of Small Businesses reported to
a Committee in this Parliament that a fifth of its members have
ceased trading with the UK’s biggest export market—the EU—either
temporarily or permanently due to bureaucracy or costs, yet the
12-point plan contains nothing to deal with that issue. The
Government’s priorities are clearly elsewhere. Tory cronies are
queuing up for a Christmas come early to get contracts and big
donors are fairly leaping into the Lords. Why are backbone
businesses being short-changed and served only a thin gruel?
Mr Jayawardena
I know that the hon. Gentleman’s Twitter followers will be happy
with that statement. The truth is that we have secured trade
deals with 70 countries around the world, and the EU. The EU deal
is the best deal that it has ever secured with anyone. A
zero-tariff, zero-quota deal has been done with no one bar the
United Kingdom, and we look forward to trading with not only
them, but new markets, as I have outlined.
Trade Deals: Animal Welfare and Environmental Standards
(Twickenham) (LD)
6. What recent discussions she has had with UK trade partners on
inserting clauses on (a) animal welfare and (b) environmental
standards into future trade deals.
Mr Speaker
I call Mr Jayawardena.
The Parliamentary Under-Secretary of State for International
Trade ( )
Oh, that question is for me as well—thank you, Mr Speaker. I am
delighted with the interest from Opposition Members in trade
matters.
Her Majesty’s Government share the British public’s high regard
for animal welfare and environmental standards. We have agreed
ground-breaking animal welfare provisions with Australia and New
Zealand, including stand-alone chapters reflecting the importance
of animal welfare in those agreements. We have secured ambitious
environmental chapters that preserve our right to regulate to
meet net zero, affirm our shared commitment to the Paris
agreement and will help us to co-operate on a range of
environmental issues.
My residents in Twickenham are deeply concerned about both the
ethics and the quality of the food that they eat, and they have
written to me in their hundreds about protecting standards in
future trade deals. They also want to protect British farmers,
yet farmers across the country, from Cumbria to Shropshire to
Cornwall, are being let down by trade deals that threaten to
undercut them. If the Minister truly backs British farming and
high food standards, why will he not give a cast-iron guarantee
to protect them in future trade deals?
Mr Jayawardena
I am sorry that the hon. Lady has clearly not been at previous
Trade questions. Britain has secured agreement in principle on
free trade agreements with Australia and New Zealand, following
deals with the European economic area and Japan that will
maintain Britain’s high levels of environmental protection and
facilitate trade in goods and services for those farmers.
Foreign Investment: South Yorkshire
(Don Valley) (Con)
7. What steps her Department is taking to encourage foreign
investment in South Yorkshire.
The Parliamentary Under-Secretary of State for International
Trade ()
We are dedicated to facilitating international investment into
all regions of the UK, including South Yorkshire, where we work
with stakeholders across the region to identify and promote
opportunities with high potential, including—my hon. Friend will
be pleased to hear—one in Doncaster, focused on the rail
sector.
I have spoken to national and international companies about
investment in Doncaster, mainly at two sites: DN7 at Thorne and
GatewayEast around Doncaster Sheffield airport. I even personally
managed to secure a visit to Doncaster from Apple’s UK
representative; it was fantastic for him to come up. What steps
has the Department taken to encourage international companies to
invest in Doncaster?
We have invested heavily and are building close relationships
with the Mayor and the South Yorkshire Mayoral Combined Authority
to support investment into the region. Details of capital
investment projects such as GatewayEast will soon be added to the
investment atlas that was published as part of the global
investment summit.
(Cleethorpes) (Con)
Investment in South Yorkshire is important, but even more
important is investment in northern Lincolnshire. Could the
Minister give an assurance that he will work closely with me and
with businesses in northern Lincolnshire, particularly to develop
the renewable energy sector, in which we have great
expertise?
Mr Speaker
I think there might be a link there somewhere—maybe a road. Carry
on.
I think my hon. Friend was campaigning for a rail line last time
we spoke about the area.
My hon. Friend will be pleased to know that we will continue to
give his area access to the export support scheme, the export
champions, the Export Academy and our vast network of
international trade advisers.
Trade Deals: Environmental Standards
(Sheffield, Brightside and
Hillsborough) (Lab)
8. What recent discussions she has had with UK trade partners on
inserting clauses on environmental standards into future trade
deals.
(Edmonton) (Lab/Co-op)
12. What recent discussions she has had with UK trade partners on
inserting clauses on environmental standards into future trade
deals.
The Parliamentary Under-Secretary of State for International
Trade ( )
I refer the hon. Members to the reply that I gave a few moments
ago.
The Minister claims that environmental protection is a priority
in trade negotiations, but that simply does not resonate with the
Department’s actions. In the Government’s desperation for a trade
deal with Australia, they agreed to water down limited reference
to climate change. Australia’s current commitments are consistent
with 4° of global warming, far off the international 1.5° target.
How is that at all consistent with the Government’s moral
commitment to fight the climate emergency?
Mr Jayawardena
I am pleased to reassure the hon. Lady that the environment
chapter will break new ground for the United Kingdom. Our
agreement in principle includes real commitments to work together
more closely on a whole host of areas. The truth is that we are
leading the world in the area; we were the first country in the
world to legislate for net zero, and we will continue in our
endeavours to protect our environment for our children and
grandchildren.
We cannot claim to have reached genuine net zero as a country, or
even to have a plan to do so, until we take into account the
impact of our imports on global carbon emissions. Will the
Department for International Trade therefore agree to consider
the evidence gathered by the Environmental Audit Committee in its
inquiry into carbon border taxes? Better still, will the
Department initiate an inquiry of its own?
Mr Jayawardena
Her Majesty’s Government welcome input from all parliamentary
Committees of this House and will always look closely at all
recommendations made, but I would highlight examples of how we
are actually delivering on the agenda. We are working with
countries such as Brazil and others to support how we reduce the
impact of agriculture on the environment, through building new
dialogues with agricultural producers and consumers through COP26
and beyond. We aim to support those collaborative actions and
ultimately to reduce the impact of agriculture on carbon-rich
ecosystems such as rainforests. This is an important area and we
will continue to work very hard on it.
(Dudley South) (Con)
The UK-Australia agreement in principle marked the first time
that Australia had ever agreed to a specific reference to the
Paris agreement in a free trade agreement. Does my hon. Friend
agree that trade is an effective way of encouraging other
countries to bring their environmental protection standards up to
the high levels of our own?
Mr Jayawardena
I commend my hon. Friend for his research. He is absolutely
right: this is an important part of our wider diplomacy. Economic
diplomacy is crucial to making sure that we spread British values
around the world, including protections for the environment. As
economies develop, they will of course want to seek the
technologies that we have in this country to decarbonise and
improve the quality of life for their people, too.
Mr Speaker
I welcome to his new position on
the Front Bench.
(Torfaen) (Lab)
Thank you, Mr Speaker. I am also grateful to the Secretary of
State for her welcome. I look forward to our debates on the
crucial importance of trade to our national economy and, indeed,
to promoting our values around the world.
The objective of the New Zealand-led international agreement on
climate change, trade and sustainability is to break down global
barriers to trade in green goods and services and eliminate the
subsidies that are propping up fossil fuel producers. The
Secretary of State announced last week that the UK would not be
taking part in this crucial initiative. Can the Minister explain
why?
Mr Jayawardena
I, too, welcome the right hon. Gentleman to his place. He is
right—the United Kingdom is not currently considering joining the
negotiations on that agreement—but we will continue to work with
partners to establish how such plurilateral initiatives can help
to support discussions at the World Trade Organisation. We will
also continue to work closely with our partners on wider trade
and environment matters, both through bilateral dialogue and
through multilateral forums. That is how we believe we can secure
the best results for not only the British people but the
world.
The Government have not made an inch of progress on green trade
in any of the bilateral trade agreements signed since 2019, so
why should we put faith in that now? The Board of Trade itself
has said:
“There are two main ways that trade can accelerate the green
transition: liberalising green trade; and reducing market
distortions”.
Does the Minister accept that that is exactly what the New
Zealand agreement does, and if so, does he not think that now is
the time to show global leadership and not to stay on the
sidelines?
Mr Jayawardena
We are absolutely committed to ensuring that the environment
receives the full attention of Her Majesty’s Government, but we
will also seek to end other environmentally wasteful practices
that arise from other state actors, such as the subsidising of
the illegal, unreported and unregulated fishing sectors that
exist in some countries, and we will press for the successful
conclusion of the fisheries subsidies negotiation. That
demonstrates that we are working across a number of areas, not
just the one to which the right hon. Gentleman has referred.
Trade with the EU
(Coatbridge, Chryston and
Bellshill) (SNP)
10. What recent assessment she has made of trends in the level of
UK trade with the EU.
(Glenrothes) (SNP)
13. What recent assessment she has made of trends in the level of
UK trade with the EU.
The Minister for Trade Policy ()
UK trade in goods with the EU has been increasing this year.
According to the latest data available, goods exports in
September were up by 5.7% on those in the previous month.
Between 2019 and 2021, the value of exports from Scotland
decreased by 24%. In England the figure was 12%, in Wales it was
24%, and in the north of Ireland it was 15%. This follows a
period of steady decline since 2018. It is economic vandalism.
There is hardly a sector in the country that does not attribute
at least some of the blame for its difficulties to Brexit. What
agreement that removes all tariff and non-tariff barriers do the
Government plan to make with another country that can account for
48% of all UK trade?
Goods exports between Scotland and the European Union were up 4%
in quarter 2 compared with the same period last year. We are
getting growth back after a period of dealing with the pandemic
and other shocks to the global economy, and I ask the hon.
Gentleman and his colleagues to start focusing on those
opportunities. I have had discussions this week with
representatives of pretty much every other political party—I have
talked to parliamentarians, metro Mayors, local enterprise
partnerships and all sorts of bodies around the country in
preparing for the further negotiations that we will have in the
forthcoming weeks—but I have not heard a peep from his party.
If the members of the Minister’s party had not cold-shouldered
the positive and constructive suggestions made by the Scottish
Government immediately after the referendum—if they had even
bothered to open and read the document—we might not be in the
mess that we are in now.
This month, our figure has improved slightly from an all-time
low, which is nothing to celebrate. Exports of food and drink
from the United Kingdom to Europe have halved. The Food and Drink
Federation has described that as a “disaster” and said that there
have been only tiny gains in other markets. There was never going
to be a Brexit that would be good for British businesses, but why
do the Government not finally come clean and admit that their
botched handling of Brexit has made the position even worse?
I ask the hon. Gentleman: what possible good could come from
plugging every part of the UK economy back into the global
economy, including the trading powerhouses of the future in
emerging parts of the world? What possible good could come from
championing a free trade policy globally that would end trade
distortions and lift millions of people out of poverty? What good
could come of that? I urge his party to get focused on those
opportunities and to work with us and enable us to work with the
businesses in his constituency to seize those opportunities. The
country has decided that that is the future for the United
Kingdom. I do wish that he would get on board.
(Shrewsbury and Atcham)
(Con)
Is it not interesting that my right hon. Friend highlights the
recent increase in exports to the European Union, in stark
contrast to the doom and gloom that we heard from our opponents,
who are saying that there will be a catastrophe and collapse in
trade? Will she focus on the countries in central and eastern
Europe and the Three Seas initiative—some of the fastest-growing
countries on our continent—and build strong bilateral trade
agreements with countries such as Poland and others?
I thank my hon. Friend for highlighting the opportunities that
exist there. Clearly, we had good news recently on exports, but
we also had fantastic news about inward investment and he is
right to be optimistic. I think that our businesses are going to
thrive in this new environment. There are some challenges that we
have to address, but they are being addressed and we can see from
the numbers that this is paying off.
New Zealand Trade Agreement
(Orkney and Shetland)
(LD)
11. What assessment her Department has made of the potential
impact on UK farmers and crofters of the planned UK trade
agreement with New Zealand.
The Minister for Trade Policy ()
This deal brings new opportunities to agricultural producers,
making it easier to trade with New Zealand. It is a gateway to
joining the comprehensive and progressive agreement for
trans-Pacific partnership—the CPTPP—a high-standard free trade
agreement involving 11 Pacific nations. This will create new
export opportunities for British farmers to those markets.
Mr Carmichael
I draw the House’s attention to my entry in the Register of
Members’ Financial Interests. I have to say to the Minister that
her confidence is not shared by hill farmers and crofters, or by
the National Farmers Union and the National Farmers Union of
Scotland. If the Government are confident in their assessment of
the opportunities and threats from this agreement, will they
commission an economic and environmental impact assessment,
independent of Government, to show that they are correct?
As the right hon. Gentleman knows, this will be independently
scrutinised, and there is obviously the Trade and Agriculture
Commission as well. We have ensured that any reports are produced
in good time for all the relevant Select Committees of this House
to scrutinise them. There are tremendous opportunities. I also
work closely with my counterparts in the Department for
Environment, Food and Rural Affairs to ensure that we are dealing
with the genuine concerns of that sector, and we will continue to
do so as the negotiations and deals progress.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
Obviously the concerns of farmers and crofters will have to be
addressed as the final agreement comes into place, but does my
right hon. Friend agree that counter-seasonality offers a huge
opportunity for British farmers to enter into agreements with
farmers in New Zealand, so that markets across the world can be
supplied all year round?
There are certainly opportunities through that to grow the market
further still. I also think that we have to dispel some myths. It
is not the case that the market is going to be flooded with New
Zealand lamb. New Zealand already has tariff-free access through
its WTO quota, of which it uses only half, so it is not the case
that those things are going to come to pass. There are some
massive opportunities and it is those opportunities that we need
to focus on.
Exports: Financial Services
(Poole) (Con)
14. What recent steps her Department has taken to increase the
export of British financial services.
(Kensington) (Con)
15. What recent steps her Department has taken to increase the
export of British financial services.
The Parliamentary Under-Secretary of State for International
Trade ()
With colleagues in the Treasury, we are committed to championing
export opportunities for our world-class financial services
sector. We have done this through targeted export campaigns
supporting specific UK financial services, as well as through
signing ambitious free trade agreements that are reducing market
access barriers and opening new doors for great British
businesses to sell their services worldwide.
Financial services are so important to our economy, providing
high-paid jobs and earning a substantial amount of revenue. We
have done really well on our trade deals and it is vital that
financial services are an important factor when we secure them.
Will the Minister assure me that that is first and foremost in
the Government’s mind?
We share my hon. Friend’s ambition to ensure that the UK remains
a global hub for services and digital trade, which is why we are
striking a series of advanced, high-standard FTAs with leading
nations around the world. We have already made progress: our FTA
with Japan provides greater benefits for financial services than
the EU-Japan FTA, and includes provisions to ban unjustified data
localisation and to support regulatory co-operation. Our recently
signed FTA with Australia also includes an ambitious financial
services chapter that will enable businesses to build on the £800
million-worth of financial services exported to Australia in
2020. So, Mr Speaker, the answer is yes.
Mr Speaker
It might have been easier just to say that!
Financial services account for more than 10% of our total tax
take and are responsible for more than 1 million jobs throughout
the country. Financial services are important not only to my
constituents in Kensington but to Scotland, including Edinburgh,
Aberdeen and Glasgow, and to Newcastle, Leeds, Bristol and
Chelmsford. Does my hon. Friend agree that financial services
need to be priorities in all future trade agreements to secure
best market access?
We are absolutely committed to prioritising British financial
services in FTAs. I am sure that my hon. Friend, as the
Government’s trade envoy to Iceland and Norway—a role that she
fulfils with her usual vigour—will be pleased to see our
commitment in practice in the UK’s recently signed FTA with
Norway, Iceland and Lichtenstein, which benefits financial
services.
(Eltham) (Lab)
Office for National Statistics data shows that services trade
with the European Union is down 28%—the Minister neglected to
mention that in his long response. So could he say where we are
in terms of negotiations with the EU on equivalence for our
financial sector?
I will have to refer the hon. Gentleman to discussions with
colleagues. I will write back to him.
Aluminium Extrusions
(Blaydon) (Lab)
16. What assessment she has made of the potential effect on UK
industry of the Trade Remedies Authority’s investigation into
aluminium extrusions.
The Minister for Trade Policy ()
It is an ongoing independent investigation by the Trade Remedies
Authority. Although the authority indicated last month what it is
minded to do, it would not be appropriate for me to try to
pre-empt the outcome of the investigation.
It has now been more than eight months since the European
Commission imposed anti-dumping duties on aluminium extrusions
from China. Will the Minister tell us why, by comparison, our
Trade Remedies Authority has been so slow to act on this issue?
Will she assure us that the authority will take into account the
risk of Chinese imports being diverted into the UK after the EU
decision?
I am afraid that, as I alluded to, I cannot comment on the
investigation or its potential outcome. The TRA is carrying out
its work methodically and thoroughly. I encourage the hon. Lady
to ensure that the businesses in her constituency that have an
interest in the issue make representations to the TRA. I am sure
she is encouraging them to do so, and that evidence is critical
in ensuring that we get the right outcome. I will undertake to
keep her up to date as things progress.
Topical Questions
(Ashfield) (Con)
T1. If she will make a statement on her departmental
responsibilities.
The Secretary of State for International Trade ()
Last week my Board of Trade published our “Digital Trade” report,
which demonstrates how we can boost exports, turbocharge economic
growth for the whole UK and create high-paying jobs across all
four of our family of nations using digital tools. Because
geography is now history, digital tools ensure that services can
be delivered from anywhere.
We export more than £200 billion of digitally delivered services.
With investment and the right planning, I want to make sure the
UK improves on its already pretty impressive second place in
global digital trade to get to the top of that chart. I have
negotiated a world-first set of digital trade principles with our
G7 partners and will be continuing to deliver these through our
trade deals in the months ahead.
Boneham & Turner in Ashfield has been around for more than
100 years and, post Brexit, it is thriving, like many other
businesses in Ashfield. Its boss, Charlie Boneham, tells me that
the US is a big part of its business. Will my right hon. Friend
please advise me on where we are with a possible trade deal with
the US?
The US is currently reviewing progress on all the free trade
agreement negotiations under the previous Administration. We
welcome the opportunity to feed into that review. We have always
been clear that a good deal is better than a quick deal, and we
are here when the US is ready to continue those discussions.
A deal with the US will benefit not just manufacturers like
Boneham & Turner in my hon. Friend’s constituency but the
other 30,000 small and medium-sized enterprises that also export
goods to the US by removing tariffs, simplifying customs
procedures and therefore making it easier to export. We already
have £200 billion of bilateral trade with the US, and we continue
to encourage those businesses that want to do more to come to the
export support service, which the Under-Secretary of State for
International Trade, my hon. Friend the Member for Finchley and
Golders Green (), discussed earlier, to ensure
they have all the tools they need to maximise their trade with
the USA.
(Harrow West) (Lab/Co-op)
The emergence of the omicron variant surely underlines that, if
we are to protect our citizens from covid, we need to help to
accelerate vaccination programmes in developing countries. With
Norway the latest country to agree that, in these exceptional
circumstances, a temporary waiver on patent rules to help boost
vaccine production is needed, why is the Secretary of State so
intent on blocking any progress on such a deal?
We have been world leading throughout the pandemic in our
negotiations with AstraZeneca on ensuring that vaccines are
produced at cost. When I was Secretary of State for International
Development, I made sure we invested in COVAX so that we led the
way and brought other countries forward to ensure that as much
vaccine as can be made gets to those who need it the most.
Countries are continuing to work with the smallest and most
vulnerable developing countries so they get the vaccines they
need. We continue to have discussions on a waiver to the World
Trade Organisation agreement on trade-related aspects of
intellectual property rights, although those discussions were
postponed this week due to the complexity of omicron and
movement. We will pick up those discussions in the new year.
(Rother Valley)
(Con)
T2. Earlier this year, in partnership with Google, I
arranged a digital course to train and upskill service sector
businesses across Rother Valley. Will my right hon. Friend set
out how our trade deals, including the recently announced New
Zealand trade deal, support the service sector, 70% of which is
based outside London and some of which is based in Rother
Valley?
The Minister for Trade Policy ()
I thank my hon. Friend for what he is doing to improve digital
skills in his constituency. In 2019, 40% of service exports to
New Zealand were delivered digitally. Under the New Zealand deal,
service exporters, particularly those in his constituency and
region, will benefit from more opportunities to deliver services
through digital trade. My right hon. Friend the Secretary of
State, in her topical statement, referred to the Department’s
focus on digital trade, which is vital for the future.
(Edinburgh North and Leith)
(SNP)
T3. National Farmers Union Scotland says the Australian
trade deal is“a slow journey to the Australians getting
unfettered access to UK markets and with no guarantees that the
promises of other safeguards will address the fact that very
different production systems are permitted in Australia”.When was
the last time the Department involved officials from the Scottish
Government and Scottish farming representatives in the
negotiation of future free trade deals?
The Parliamentary Under-Secretary of State for International
Trade ( )
We engage with officials from the Scottish Government, the Welsh
Government and the Northern Ireland Government all the time, and
we look forward to continuing that.
(South Basildon and East
Thurrock) (Con)
T4. I was recently fortunate enough to visit the DP World
London Gateway container port in my constituency to hear about
its exciting plans—its commitment to the construction of a fourth
berth, and its ambition to become the largest container port in
the UK and to use the opportunities that freeport status brings.
Will the Minister update the House on what the Department is
doing to support freeports and promote UK exporters?
Mr Jayawardena
Freeports will be national hubs for trade and investment. They
will regenerate communities, attract new businesses, and create
jobs and opportunities across our country. As they move towards
implementation, my Department is working closely with each
freeport, including London Gateway, to help pull new investment
in and to support exporters to seize the advantages that
freeports will bring them.
(York Central)
(Lab/Co-op)
T5. Last weekend, we saw the release of the Xinjiang
papers, highlighting how human rights atrocities go right to the
heart of the Chinese Government. As a result, I want to ask what
steps is the Minister taking to review our trading relationship
with China, because it cannot be business as usual?
Mr Jayawardena
China remains, of course, an important trading partner for
Britain, but we have no plans to negotiate a trade deal with
China. We will build trade only where it supports British
businesses and jobs. We will seek to reduce barriers to accessing
the Chinese market, but I can assure the hon. Lady that our
approach to China will always be rooted in British values and
British interests. We want a positive and constructive
relationship with China, but I can assure her that we will not
sacrifice our values in doing this.
(Waveney) (Con)
T6. With the exponential growth in offshore wind, including
off the East Anglian coast, where 50% of the UK’s wind farms are
located, world-class knowledge and skills have developed and the
UK is now a global leader. Will my right hon. Friend outline the
steps that are taken in negotiating trade deals to both promote
this expertise abroad and attract inward investment into the UK
offshore wind sector?
I thank my hon. Friend for highlighting that trade in itself is a
force for good in the world, as well as having environmental
chapters in trade deals. One example of that is our free trade
agreement with New Zealand, which will include the most
comprehensive environmental list of goods with liberalised
tariffs in a free trade agreement to date. He is right to point
to the technology being developed in the UK, which can provide
solutions for nations around the world, whether they are
developed or developing nations, to meet net zero.
(Huddersfield)
(Lab/Co-op)
The Secretary of State has a long history of being a supporter of
the creative industries and I know that, like me, she will be
concerned about the possibility of Channel 4 being lost to Leeds
if it is taken over by a global player and taken away—I hope she
is concerned about that. We have the BBC in Salford and Channel 4
in Leeds, so does she agree that levelling up would be deeply
damaged if we were to lose Channel 4 from Leeds?
I thank the hon. Gentleman for raising this important issue. The
points he makes are well understood. We often talk about the BBC
and soft power, influence and all it brings, but Channel 4 has
also done some incredible things, particularly in the disability
space, during the Paralympic games in 2012 and since. His points
have been well made. This is a matter for the Department for
Digital, Culture, Media and Sport, but I am sure those in that
Department will have heard him.
(Bury North) (Con)
Will my right hon. Friend update the House on what steps are
being taken to establish a free trade agreement with our
historical ally Pakistan, and specifically to encourage trade
between our country and the Kashmir region?
Mr Jayawardena
I am grateful to my hon. Friend for his consistent interest in
this area, and I value the conversations we have had on this
matter. In the four quarters to Q2 this year, we have had £2.6
billion-worth of trade with Pakistan, and I am pleased to confirm
to him that we already offer Pakistan the enhanced framework in
the generalised scheme of preferences, which ensures that it has
more generous access to the British market than others do today.
He will also know, and the House will want to be aware, that
between July and September this year we ran a consultation on our
proposed new developing countries trading scheme. This is a
statement of our intent: the British Government want to take a
more ambitious, more generous, more pro-growth approach to
trading with developing nations. Our new scheme will mean more
opportunities and less bureaucracy—
Mr Speaker
Come on. I call .
(Orkney and Shetland)
(LD)
I thank the Secretary of State for the support that she has given
in the past to the development of tidal stream renewable energy
generation. Now that we have the very welcome ring-fenced pot for
tidal stream energy, will she charge her Department with the
development of a strategy to ensure that we can export that
expertise as we move towards commercialisation?
The right hon. Gentleman will be as pleased as I am to see that
the Department for Business, Energy and Industrial Strategy and
the Treasury were able to find a way to make sure that the
contract for difference, now published, will be able to provide
that ring-fenced support for tidal stream. As he knows, I visited
earlier in the year to see the work for myself and to talk to
those who have been developing this technology. As part of the
work that the Department for International Trade will be doing on
green trade across the world, we want to ensure that, as that
potentially becomes commercially viable, such firms are
absolutely at the forefront of the package of tools that other
countries will also be able to use to help them to decarbonise
their energy sectors. We will work very closely with those firms.
The Under-Secretary of State for International Trade, my hon.
Friend the Member for Finchley and Golders Green, who is
overseeing the export service, will make sure that they are
included and supported as they think about where those markets
might be.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
Will the Secretary of State update the House on trade discussions
with India? She will know that any reduction in the punitive
tariffs that apply to Scotch whisky would be an enormous boost
for the industry.
Madam Deputy Speaker ( )
I call Peter Grant—[Interruption.] I call the Minister first.
Mr Jayawardena
I commend my right hon. Friend for his endeavours in making sure
that Scotch whisky can be enjoyed by more people more reasonably
all around the world. Britain wants a deal that slashes barriers
to doing business and trading with India’s £2 trillion economy
and its 1.4 billion-strong population, and Scotch whisky is at
the top of our agenda.
Madam Deputy Speaker
And now we come to .
(Glenrothes) (SNP)
I could never have thought that I was about to be called, Madam
Deputy Speaker.
In a few weeks’ time, the United Kingdom will start to apply
import controls to goods coming from the European Union. Last
year, when the European Union started to apply its controls, a
large number of small and medium-sized exporters, particularly in
the Scottish food and drink industry, felt that they were simply
left to sink or swim. What assurances can the Government give
that small import businesses in Scotland will not be hung out to
dry next year in the way that small exporters in Scotland were
left hung out to dry last year?
I encourage the hon. Gentleman, if he has not already done so, to
put businesses in his constituency in touch with our Department.
The export support service runs alongside the trader support
service—indeed they are joined up organisations—and we are there
to provide bespoke support to businesses, to help them work
through some of the challenges with new paperwork and so forth,
and to give them the information they need to make business
planning decisions. I encourage him to put those businesses in
touch with us directly, and we will support them.
(Blackpool South) (Con)
Alongside Blackpool tower and the pleasure beach, Blackpool rock
is just one of the things that makes my constituency world
famous. Exports of our most famous edible product, produced
locally, are growing year on year. Will the Minister meet me to
discuss how we can boost these exports around the world?
The Parliamentary Under-Secretary of State for International
Trade ()
I am more than happy to ensure that my hon. Friend is put in
contact with our export support scheme, our international trade
advisers, our export champions, and our Export Academy to ensure
that the world-famous rock continues to be sold across the
world.
(West
Dunbartonshire) (SNP)
Let us try again, Madam Deputy Speaker.
Exports from Ireland to GB soared in the first six months of 2021
after Brexit, as imports sent in the opposite direction declined.
I wonder whether the Minister can come to the Dispatch Box and
advise the House on this matter. With a post-Brexit imbalance in
trade, with Irish imports up 20% in the first six months of 2021
and GB exports to Ireland down by more than £2.5 billion, do they
not recognise that, for GB—not Northern Ireland—Brexit is a trade
disaster?
From figures that I mentioned earlier, the hon. Member will know
that the situation is improving for Scottish businesses. He will
also know that the bulk of the disruption and slowdown has been
because of the pandemic. We are now coming out of that, and we
would love to have a constructive dialogue with his party and its
Members of Parliament to ensure that businesses in their
constituencies are getting the right support to seize the
opportunities that are now opening up. If we provide the right
support for businesses, this should be an exciting time when they
will be able to thrive. I encourage the Scottish National party
to come to terms with the fact that we have left the EU, and that
we are determined to make a success of this and to plug the
economy of every part of the UK back into the global economy. The
sooner that SNP Members come to terms with that and start pulling
in the right direction, the better off their constituents will
be.
(Dudley South) (Con)
Big landmark trade agreements such as those with Japan, New
Zealand and Australia make the headlines, but the excellent work
that my right hon. Friend the Secretary of State is doing to
remove trade barriers around the world also creates big new
opportunities for businesses in my constituency of Dudley South.
What progress is being made on the work to remove the trade
barriers that restrict the flow of British goods and
services?
Mr Jayawardena
Every year, we break down barriers across the world, and this
year there has been a 20% increase in the number of barriers that
we have broken down, benefiting businesses across the whole of
our United Kingdom—in England, Scotland, Wales and Northern
Ireland. We look forward to continuing this work to generate more
jobs for people across our country in the years ahead.
(Rutherglen and Hamilton
West) (Ind)
COP26 was an important step towards meeting our international
climate commitments, but that must be carried through into all
aspects of Government policy. What steps are the Government
taking to ensure that the environmental impact of trade, through
both imports and exports, is mitigated as far as possible?
UK leadership through COP26 has been world respected and
renowned. The Department for International Trade is now able to
continue the extraordinary leadership shown by my right hon.
Friend the Member for Reading West () as COP26 President to ensure
that the technologies that the UK is developing, has developed
and will continue to develop will be at the forefront of all
matters environmental in order to help every part of the world
meet its decarbonisation challenge.
(Strangford) (DUP)
What discussions have taken place with the Foreign, Commonwealth
and Development Office and the Home Office to place Afghan
refugees in work in places such as Mash Direct and Willowbrook
Foods in my constituency of Strangford, and across the agrifood
sector in Northern Ireland, which is in need of migrant workers
to fill the vacancies that presently exist?
I would be happy to get those Departments to give the hon.
Gentleman some further details. Every Department across
Government, including the Department for Education, is focused on
ensuring that people who are coming here to restart their lives
in safety are given every opportunity, and that their skills can
be utilised. We are also thinking about how we can help those who
are still left in country. I undertake that the FCDO will write
to the hon. Gentleman.
(Colne Valley) (Con)
As the co-chair of the all-party parliamentary group for
Fairtrade, I have been heartened by how many British people have
been looking to support Fairtrade products, including bananas,
coffee and chocolate, and to support Fairtrade producers and
farmers around the world. Will the Minister continue to put fair
trade at the heart of new trade deals so that we can continue to
support these Fairtrade producers and farmers around the
world?
As the Minister for Trade Policy, my right hon. Friend the Member
for Portsmouth North (), mentioned earlier, now
that we are a sovereign independent nation and can make trade
deals in our own right, we want to ensure that we use trade for
good and that the UK brings that leadership. Next year, we will
be working closely with our African colleagues in particular to
think about how we can boost trading relations and the support
that we can provide to encourage the value chain to sit with
those developing countries, which have the opportunity to grow
their trade balance and ensure that they see the benefits of
trade too.
(Na h-Eileanan an
Iar) (SNP)
I wonder what the Minister makes of the report in the Financial
Times that far less than a trade deal, America will lift its
steel tariffs if the UK violates article 16. Does she welcome
America keeping control?
That story might be true in terms of how some people in the
United States feel, but it is a false narrative. These are two
entirely separate issues. My right hon. Friend the Secretary of
State will be discussing the issue of steel and other matters
next week with her opposite numbers in the United States, but we
not do ourselves any favours if we perpetuate these false
narratives. They are entirely separate issues. I again encourage
the hon. Gentleman and his party to start talking about what the
UK has done to protect peace on the island of Ireland, and our
reasonable request to the EU. He might also like to talk to his
American friends about what the EU has done to disrupt that,
including triggering article 16 on the most sensitive of
goods—vaccines. We have acted in good faith. We will do more to
tell America that we have acted in good faith and are determined
to be pragmatic, and is going to do that. The hon.
Gentleman has to separate false narratives from how some in the
US feel.
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