Trade with African Countries Mr Laurence Robertson (Tewkesbury)
(Con) 1. What steps she is taking to help increase UK trade with
African countries. (906449) The Minister for Trade Policy (Penny
Mordaunt) Overall UK-Africa trade stood at £32 billion last year.
We will increase that and achieve our investment goals. By 2030,
Africa will have 1.7 billion consumers, and our post-Brexit trade
policy will enable those nations to grow their economies and
create...Request free trial
Trade with African Countries
(Tewkesbury) (Con)
1. What steps she is taking to help increase UK trade with
African countries. (906449)
The Minister for Trade Policy ()
Overall UK-Africa trade stood at £32 billion last year. We will
increase that and achieve our investment goals. By 2030, Africa
will have 1.7 billion consumers, and our post-Brexit trade policy
will enable those nations to grow their economies and create
opportunities for UK businesses.
Mr Robertson
I thank the Minister for that response. In all my visits to
Africa on trade missions, it has been clear that people there
really do want to do business with British companies, perhaps in
preference to doing business with the Chinese. Will we do
everything we can to make British companies realise the
opportunities that exist in Africa?
First, let me place on record our thanks for everything my hon.
Friend has done to improve trade with the continent and with
Ethiopia in particular. He is right to say that there are massive
opportunities there, but our great businesses face tough
competition, including from China’s growing influence and impact
on the region, particularly through soft infrastructure at the
moment. In recent months, we have strengthened our situational
awareness of what China is doing and are actively supporting UK
businesses to reach those opportunities early. We are doing that
through providing competitive finance and support across the
continent.
(Westmorland and Lonsdale) (LD)
As many African countries depend in normal times on Ukraine,
Belarus and Russia for almost 100% of their grain, we find
ourselves in a situation where we are trading in the same
commodities markets as African countries, pushing up the prices
for some of the poorest people in the world. Will the Minister
acknowledge that, look again at the Government’s cut in aid and
put that back to where it was? Will she also perhaps consider
that the best way we can deal with that situation is by backing
British farming, so that we can feed ourselves and not be robbing
the food that should be feeding the poorest in the world?
Let me put the aid budget in context. If we trebled the aid
budget, it still would not be enough to deal with some of the
situations that that continent is facing at the moment. A group
in Whitehall is looking at all these issues, including food
security, both in Africa and in Ukraine. Within that, there will
be opportunities for other nations to start being able to supply,
to step in and fill that gap. Obviously, we will want to ensure
that Ukraine’s food security is looked after as well. A huge
amount is going on in Whitehall, and if the hon. Gentleman would
like some more information, I am sure we could supply him with
the detail.
British International English Language Schools
(Eastbourne) (Con)
2. What steps she is taking to help support British international
English language schools recover from the covid-19 pandemic.
(906450)
The Parliamentary Under-Secretary of State for International
Trade ()
I thank my hon. Friend for, and congratulate her on her tireless
work to support the sector. The Department will continue to
support the English language training sector with both
international student recruitment and the delivery of training
overseas. We are supporting English UK’s “English with
Confidence” campaign, which recognises the value of the sector to
the UK economy—it supports more than 35,000 jobs and generates
over a billion pounds each year.
I thank my hon. Friend for his response and for all the excellent
work being done. Free of restrictions, English language schools
in Eastbourne are beginning to power back after the pandemic, and
it was a joy to see students return to Eastbourne over the Easter
holidays. However, there are some concerns in the sector,
specifically on group travel and visa requirements, which have
led to fears that we could lose out to rival destinations such as
Malta and the Republic of Ireland. What discussions has he had
with his Home Office counterparts to tackle any of those
potential barriers, to make sure that this remains one of our
strongest exports?
I know the strength of the Eastbourne English language sector,
and I believe my hon. Friend met alumni out in the United Arab
Emirates; the spread of Eastbourne goes far and wide. The
Department continues to work with the Home Office to work closely
and constructively with the sector to support its recovery. That
has included the introduction of a six-month allowance to study
English at an accredited centre under the standard visitor route,
meaning that EU students, together with nationals from more than
50 locations, can study for six months or less as visitors. We
continue to work with the sector to ensure that we continue to
remove barriers to it.
UK’s Green Industries: Foreign Direct Investment
(Kensington) (Con)
3. What steps her Department has taken to increase foreign direct
investment in the UK’s green industries.(906451)
The Parliamentary Under-Secretary of State for International
Trade ( )
First, I thank my hon. Friend for her efforts in boosting our
nation’s trade with Norway and Iceland as the Prime Minister’s
trade envoy.
Last year, on behalf of the Prime Minister, we delivered the
global investment summit, which saw almost £10 billion of foreign
investment into our offshore wind, hydrogen and electric vehicle
sectors. Meanwhile, the Office for Investment landed almost £18
billion of further green deals, and just last month the Prime
Minister met Australian investors, who committed more than £20
billion to clean energy projects across the kingdom.
I am proud that the UK is a leader in the G7 in the transition to
net zero. I am the trade envoy to Norway and Iceland, where there
are huge opportunities to do more to further that transition to
net zero. Will my hon. Friend update the House on the discussions
we have had specifically with companies in Norway and
Iceland?
Mr Speaker
Can I just say to the Minister that he has his fan club up there
in the Public Gallery? It is a pleasure to see his family
watching him.
Mr Jayawardena
Thank you, Mr Speaker. They were delighted when you waved at them
last time.
The United Kingdom is committed to deepening her partnership with
Norway and Iceland, which was reinforced by the trade deal that I
signed in July last year. It is one of our greenest deals ever
and preserves our right to regulate to reach our net zero
targets. Twin-tracking alongside that free trade agreement, we
continue to collaborate on the development of green technologies
such as the North sea link interconnector, which links the
electricity systems of the United Kingdom and Norway and will
increase the capacity of our renewable markets.
Mr Speaker
We now come to the SNP spokesperson, .
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
The recent ScotWind announcement from the Scottish Government
cements Scotland’s place as the world leader for floating
offshore wind energy. It represents an incredible opportunity for
unparalleled levels of inward investment while also taking
meaningful action on climate change. Will the Minister join me in
congratulating the SNP Scottish Government on making Scotland a
global leader in offshore wind energy? Will he pledge to do all
in his power to support this fantastic international trade and
transition opportunity?
Mr Jayawardena
I am not sure about wind power, but there is already a lot of hot
air in the House. I am delighted that the SNP now supports the
British energy security strategy, which champions the power of
offshore wind energy. I am also delighted that foreign investors
are already responding to the United Kingdom Government’s
proposals, including in the form of a sovereign investment
partnership with the United Arab Emirates, which is investing £10
billion, including funds for energy transition.
I will forgive the Minister for showing off to his family, but
this is an important issue. A net exporter of energy, Scotland
has 25% of Europe’s offshore wind potential and is perfectly
placed to step in to help Europe to pivot away from dependency on
Russian oil and gas and towards renewable energy. Indeed, it is
estimated that up to 30 GW could be available to export through
ScotWind and INTOG—the innovation and targeted oil and gas
process—and on top of that a manufacturing superhub at Nigg and
Cromarty firth could export components throughout Europe, thereby
reversing the historical position across the UK of importing
technology, and so boosting trade. Specifically, will the
Minister commit his Government to working with the Scottish
Government to maximise this massive transition and international
trade opportunity?
Mr Jayawardena
I am delighted to say that next week the Secretary of State will
be in Aberdeen, demonstrating this Government’s commitment to the
whole of the United Kingdom. We work with devolved
Administrations across the kingdom to make sure that every corner
of the country benefits from international trade. The truth is
that while we are batting for every corner of the country,
backing British businesses and supporting Scottish jobs, the SNP
wants to cut Scotland off from its largest market, which is the
British internal market.
(Cleethorpes) (Con)
Foreign investment in our green industries is extremely
beneficial and welcome, as my Cleethorpes constituency can bear
out. Equally, British-based companies have great opportunities to
export our expertise in the green sector. What initiatives is the
Department taking to develop those opportunities?
Mr Jayawardena
I always welcome my hon. Friend’s support for our agenda. The
Department has already launched interventions to support
international investment into all corners of the country. Those
interventions include the high potential opportunities programme
and the trade and investment hubs. The hub in Darlington assists
more than 1,000 foreign direct investment projects throughout the
country which will drive the technology forward.
Departure from the EU: Effect on UK Global Exports
(Huddersfield)
(Lab/Co-op)
5. What recent assessment the Government has made of the effect
of the UK's departure from the EU on UK global exports.
(906454)
The Secretary of State for International Trade ()
For the first time in decades, the UK has an independent trade
policy. We have secured FTAs with 70 countries plus the EU,
covering nearly £800 billion-worth of bilateral trade in 2020,
creating new opportunities for our UK exporters. To take these
and more—building on an over £56 billion increase in nominal
exports between 2016 and 2021—our export strategy is focusing on
the needs of exporters, including a new export support service
for exporters to Europe.
Mr Sheerman
I can never be nasty to this Secretary of State as we are old
friends. The fact is though that, as I trained at the London
School of Economics as an economist and I like looking at the
data, I can see that we have lost £20 billion in exports since we
left the European Union. The Office for Budget Responsibility and
everyone else says what great damage has been done to small and
medium-sized manufacturing enterprises, which Mr Speaker has in
his constituency and I have in Huddersfield, the heart of SME
manufacturing. Those businesses are hurting. The Secretary of
State’s website says for them to get in touch with her if they
need help. What help can she now give to small businesses in this
country to enable them to cope?
Although there was indeed a drop in exports during covid, we have
seen a 10% increase in the last quarter, which is very welcome. I
am always happy to meet the hon. Gentleman, as he knows, to
discuss any particular businesses, but the export support
service, which has now been running for a number of months, is
there to support SMEs in particular if they have issues with a
country in Europe with which they want to trade. The team has
also been focusing on supporting businesses with Russian and
Belarusian activities in the past month, especially on supporting
them to find alternative supply chains. The export strategy,
which we published in October last year, is bringing together a
whole series of tools to help those SMEs to discover new markets,
and, indeed, to use the ones that now have more prospects thanks
to the FTAs that we have.
(Redcar) (Con)
I congratulate the Secretary of State and her Department on their
success in lifting the US 232 tariffs on UK steel and aluminium.
Does she not agree that this flexibility to boost global trade
afforded to us by our departure from the European Union is
exactly why my constituents voted for Brexit?
I congratulate my hon. Friend on his recent marriage, which is
very exciting. Let me just note that those of us on the Front
Bench begin to feel very old when our youngest Members start
taking this great step of confidence, which exactly reflects how
my hon. Friend has campaigned for his constituents on the matter
of steel. It has been a real pleasure to be able to bring the
section 232 tariffs to a conclusion so incredibly quickly,
working with my US counterparts and understanding that our UK-US
relationship is critical not only to trade, but across so many of
those inter-related activities. We are working closely together
on trade and security matters as we deal with the terrible
challenges in Ukraine.
Mr Speaker
I call the Chair of the International Development Committee.
(Na h-Eileanan an
Iar) (SNP)
It is good to see the Secretary of State in good health.
With what the Secretary of State calls the UK’s independent trade
strategy, the UK cannot even export a chicken leg to any country
in the world without the commensurate weight of paper and
bureaucracy going with that chicken leg. When she sees the lorry
queues in Kent and what used to be an easy market for the UK, I
wonder whether her Department has catalogued the hurdles of paper
that exporters now have to cope with to trade with the European
Union, especially as the Financial Times reports that, in
“cut-off” UK—to quote the Minister—exports have fallen 14%
compared with a rise in the rest of the world of 8.2%. This
independent trade strategy is looking pretty woeful.
As I have already set out, the export support service, which we
launched at the end of last year, is there to support those SMEs
that have experienced technical issues when trading with the EU.
Many of those issues have now been resolved, and we are helping
businesses to deal with them. We are also helping those SMEs in
all our constituencies that are considering exporting for the
first time to look at how they can discover markets within the
EU, across the wider European nations and in the rest of the
world.
Mr Speaker
We now come to the Front Bench, with shadow Minister .
(Harrow West) (Lab/Co-op)
I take this opportunity to wish Her Majesty the Queen a very
happy birthday, and all the great people of England a very happy
St George’s day at the weekend.
With the Chancellor’s having accepted a report from the Office
for Budget Responsibility confirming an ongoing 15% hit to
British exports to Europe, and given, as my hon. Friend the
Member for Huddersfield (Mr Sheerman) alluded to, the continuing
extra red tape, customs checks and costs that businesses here
face thanks to the Prime Minister’s poor trade deal with Europe,
when will the Secretary of State publish a plan to put right some
of that damage, to help British business and to make Brexit work
better?
I will set out just some of the areas the export strategy is
bringing forward, to help the hon. Gentleman to see exactly the
strategic work we are doing. There is the export support service,
which I have mentioned, and financial support for exporters,
working through the shared prosperity fund to include export
support through local investment plans. UK Export Finance is
there to help and will look at supporting SMEs, where
historically it has only supported large contracts. Having run a
successful regional pilot of the UK Export Academy, we are
rolling that out across the UK, providing digital tools. That is
proving very popular, as businesses can educate themselves before
launching into new markets.
The Department’s own research shows that export-related jobs pay
higher than average, so the hit to our European exports, which
the Secretary of State seems so complacent about, will prolong
the cost of living crisis. It also underlines that since 2010
British exports have significantly underperformed compared with
the rest of the G7, notably the United States and Germany.
Businesses tell us that other countries have more ambitious
export support programmes, while the Prime Minister blames our
exporters for a lack of “energy and ambition”. Where does the
Secretary of State think the blame lies?
I have set out the export strategy, which is bringing forward
these tools, which goes exactly to the hon. Gentleman’s point. We
are the opposite of complacent; we are here to support, through a
dozen different routes, businesses to grow the export markets
they already have or to discover exporting for the first time.
One in seven businesses that could export does not yet, and we
are keen to help those businesses find those markets across the
globe, not only across the EU. Free trade deals such as the
comprehensive and progressive agreement for trans-Pacific
partnership, which we are negotiating this year, will give us the
opportunity to open up nearly $8 trillion-worth of new markets.
We want to ensure that businesses can access those through all
the tools we are providing for them.
Reducing Barriers to Global Trade
(Milton Keynes North)
(Con)
6. What steps her Department has taken to reduce barriers to
global trade for British businesses. (906455)
The Parliamentary Under-Secretary of State for International
Trade ( )
Bulldozing trade barriers enables countless British businesses to
export goods and services around the world with greater ease and
at lower cost. We resolved more than 200 barriers in the year
ending April 2021—a 20% increase on the previous year. From
securing British access to Japan’s poultry market, estimated by
industry to be worth up to £13 million per year, and lifting the
decades-long ban on British lamb exports to the US, estimated to
be worth £37 million over five years, to cutting costs in
services trade, an export of £304 billion in 2021, by up to 7%
annually, we are getting on with the job.
Getting on with the job indeed. Breaking down barriers to trade
and providing businesses with the right tools and support to
reach global markets is exactly what we should be doing. I
welcome the Department’s regional trade advisers and the role
they play in supporting companies such as Carlton Packaging in
Milton Keynes. To build on that support, will my hon. Friend work
with me to bring together business in Milton Keynes, the
Department and those regional trade advisers to support those
business opportunities now that we have left the European
Union?
Mr Jayawardena
I am very pleased to know that businesses in my hon. Friend’s
constituency, including Carlton Packaging, are receiving support
from this Department. Milton Keynes has not only exports worth
over £3.4 billion, but a great champion of our trade deals in
him. I shall be delighted to work with him to help businesses to
use those deals to create jobs and boost wages while lowering
prices for consumers.
Outstanding EU Trade Issues
(Streatham) (Lab)
7. What recent discussions she has had with Cabinet colleagues on
resolving outstanding EU trade issues. (906456)
The Secretary of State for International Trade ()
This Government have delivered the first free trade agreement the
EU has ever reached based on zero tariffs and zero quotas. Our
collective focus is now on implementing that agreement, ensuring
that it delivers for our citizens and businesses. We have
established the export support service as the first point of
contact for UK businesses looking to export to the EU. Since its
launch in October, it has received over 8,000 unique
enquiries.
The export support service is clearly not working. In 2016, the
Vote Leave campaign promised us tariff-free trade with the EU
with minimum bureaucracy, not another support scheme. We find
ourselves in a bureaucratic nightmare with freight delays and red
tape blocking what was once hassle-free trade. SMEs in my
constituency simply cannot afford the legal advice that is needed
to navigate all that red tape. That is no surprise because HMRC
data has shown that British trade with the EU has fallen
significantly. Can the Secretary of State tell us when the
Government will finally deliver on hassle-free, tariff-free trade
like we were promised, or will she finally admit that this was
never going to happen and that this trade fiasco is going to be
the norm for us from now on?
As I said, the agreement reached has zero tariffs, which is
exactly what the hon. Lady asks for. If there are specific
businesses in Streatham that have issues and have not been able
to get support from the export support service, she should
contact me and my team, because 96% of all those who have used it
have said to us that they would recommend it to others, which I
take as a sign that the system is working. It is there not only
to support those who have trouble but to help with discovering
how to access new markets. Exporting is often considered
difficult, but if we talk to those who do it, they say that they
want to champion others. Our export champions, which are
businesses that volunteer to speak to others and encourage them
to export, are there to help those who are considering it. I
would be happy to put some of her local businesses in touch with
them as well.
Karl MᶜCartney (Lincoln) (Con)
Supply chain resilience is very important to EU trade. Will my
right hon. Friend advise us on how often she has conversations
with our colleagues in the Department for Transport and how
helpful they have been?
My hon. Friend will be pleased to hear that I have discussions
with many colleagues across Whitehall on a regular basis. The
supply chain resilience question has obviously exercised all of
us, and our businesses, ever since the problems when covid hit
and we had to have so many new ways of thinking about our supply
chains. We are now having to support our businesses, including
those that have had supply chain issues through Russia and
Belarus and are struggling to find new supply chains. There is a
very strong and continuing thread throughout Whitehall to make
sure that we support all our businesses. If anybody knows of any
businesses that are struggling, they should contact us directly
or through the export support service.
Mr Speaker
I call shadow Minister .
(Llanelli) (Lab)
I very much hope that the Secretary of State will agree that her
Department’s business is not just about making deals but about
making sure that those deals work for UK businesses.
This month, again, the British Chambers of Commerce has cited
Brexit red tape as a cause of export stagnation, while IT systems
failure has contributed to massive gridlock in Kent, the Road
Haulage Association has warned of perishable goods going bad, and
the Cold Chain Federation has said that Britain is being seen as
too much hassle to deal with. So what exactly are the Secretary
of State and her Cabinet colleagues doing to clear up this mess
and to provide the efficient, smooth-flowing export routes to the
EU—our biggest trading partner—that our businesses and hauliers
deserve?
A number of factors have contributed to short-term delays at
different points, including ship refitting, roadworks, bad
weather, and the loss of a DFDS ferry due to damage, as well as
checks for operators and issues on the other side of the channel.
The volume of traffic through Dover means that some queuing is
commonplace. I and those across Government continue to monitor
that situation. The Department for Transport, in particular, is
engaging very closely with the port of Dover, the ferry
operators, industry groups and local stakeholders to ensure that
the smooth running of trade can continue.
SMEs: Support for Export to Global Markets
(Gillingham and Rainham)
(Con)
8. What steps her Department is taking to support small and
medium-sized enterprises to export to global markets.
(906457)
The Parliamentary Under-Secretary of State for International
Trade ()
Our export strategy’s action-led 12-point plan will support SMEs
to thrive in the global market and raise the UK’s exporting
culture in the long term. It includes our Export Academy, which
has already received over 7,000 business registrations, and our
export support service, which has dealt with over 8,000
enquiries, 1,000 of which are from businesses around my hon.
Friend’s constituency in the south-east. We have the trade access
programme, the international trade advisers, the export
champions, and a whole range of support that we can provide,
including UK Export Finance, to help SMEs to get on and
export.
I thank the Minister and the Department for all they are doing in
championing British exports. Jubilee Clips in Gillingham in my
constituency is a fantastic local family-run business that
employs over 100 people and exports hose clips to over 90
countries around the world. A real issue that it is facing is the
uncertainty at the channel border crossing, which is leading to
delays in delivering on its contracts. These delays are having a
significant impact on local businesses and their ability to
export. Will the Minister clarify what steps are being taken to
address this specific challenge facing businesses in Kent and
Medway?
The export support service notes all complaints about delays and
raises them with HMRC, because the DIT is not responsible for the
border. Where we find that there are different interpretations of
the rules on either side, we work with our bilateral partners to
eradicate those issues. On Jubilee Clips, if my hon. Friend
wishes to write to me or bring the company in, I would be more
than happy to discuss the matter in more detail.
(Rutherglen and Hamilton
West) (Ind)
Will the Minister detail what impact the Department’s 12-point
strategy, entitled “Made in the UK, Sold to the World”, has had
on SME exports from Scotland and how any progress can be further
built on?
I do not have the details for Scotland, so I will write to the
hon. Lady. We have opened an office in Scotland to ensure that we
work closely with our partners to boost exports, but I will have
to write to her on the details.
Trade with Israel
(High Peak) (Con)
9. What recent steps her Department has taken to increase trade
with Israel. [R] (906458)
The Parliamentary Under-Secretary of State for International
Trade ( )
I am thrilled that our two Prime Ministers have agreed to
negotiate an ambitious free trade agreement, with exciting new
provisions in digital, data, technology, services and innovation.
We have completed our consultation and are analysing the
responses now, with a view to launching formal negotiations,
along with others, later this year.
I refer Members to my entry in the Register of Members’ Financial
Interests.
I welcome the Government’s commitment to negotiating a trade deal
with our great friend and ally Israel, which will be of huge
benefit to lots of businesses in High Peak and across the
country. May I urge the Minister to go further and ensure that
any deal does not just include products but looks at services,
which make up around 70% of both the UK and Israel’s economies?
It is an area in which we are both world leaders, and there would
be much mutual benefit.
Mr Jayawardena
Absolutely. My hon. Friend correctly points out that our two
economies have strong service sectors but our current deal
predominantly caters for trade in goods. That is why we intend to
negotiate a more ambitious, comprehensive and innovation-friendly
trade deal, which will open up opportunities for British
businesses in areas such as tech, data and digital. My hon.
Friend will be aware that next month we are hosting the first
ever joint innovation and investment summit between our two
countries. That will be a key moment as we deepen our
relationship, creating opportunities to increase trade and
investment between our nations, create new jobs and boost
wages.
Exports of Renewable Energy Services
(Waveney) (Con)
10. What steps her Department is taking to increase exports of
renewable energy services. (906459)
The Secretary of State for International Trade ()
The DIT champions the UK’s green exporters all around the world.
At the beginning of this month I was in Norway, where I promoted
the UK’s green energy offer, and Lord Grimstone spoke at
WindEurope in Spain on 6 April. Renewable sector teams within the
Department are also working to establish export capability
guides, to highlight the UK’s strengths. In our Australia and New
Zealand trade deals, we have agreed the removal of tariffs on UK
exports of products such as electric vehicles and wind turbine
parts, and we have also secured the most substantive climate
provisions that Australia and New Zealand have ever committed to
in an FTA. UK exports in energy saving and sustainable energy
systems increased by over 20% between 2016 and 2019.
I am most grateful to my right hon. Friend for that answer. The
offshore wind industry in East Anglia is a great success story,
and there are more and more examples of local businesses working
all around the world. There is a worry that this may only be
short-term and transitory as other countries set up their own
local industries. I would be grateful if my right hon. Friend
outlined the strategy that is being pursued to ensure that the
sale of UK equipment and services is a permanent feature of
offshore wind’s global supply chains.
In 2020, the Prime Minister announced that £160 million would be
made available to upgrade offshore wind ports and manufacturing,
and the money has now been invested. We announced £1.6 billion of
investment in our offshore wind sector just last year, including
seven new major manufacturing investments and two new offshore
wind ports, creating 4,100 jobs by the end of the decade.
Alongside that, we have agreed the removal of tariffs on UK
exports of products such as wind turbine parts, knowing that we
will continue to grow and invest in our manufacturing as well as
the service and support aspects of the offshore wind sector, in
which the UK continues to be world-leading.
UK Steel Exports
(Swansea West)
(Lab/Co-op)
11. What steps she is taking to help increase exports of UK
steel. (906460)
The Secretary of State for International Trade ()
Since 2018, the US Government have imposed tariffs of up to 25%
for steel coming into the US. Last month I was pleased to reach a
resolution with the US Government, and the tariff-free volumes
that we have secured on steel and aluminium will mean that UK
steel and aluminium exports to the US can return to levels not
seen since before section 232 tariffs were imposed. The deal will
deliver for our steel and aluminium industries across the
country, and for the 80,000 UK jobs supported by the sector.
I am glad that it took only four years. May I, as the trade
rapporteur for the Council of Europe, turn the Secretary of
State’s attention to EU carbon border taxes? Does she agree that
they will help boost UK exports to countries that export steel
manufactured products to the EU? Will she also pursue a UK carbon
border tax so that Chinese dirty steel, which has twice the
carbon footprint of British steel, does not undercut our steel,
and work in harmony with the EU so that we can help protect our
jobs and exports and, indeed, the planet?
The Treasury is looking closely at all those questions. Indeed,
they are also the subject of discussions that I have had in some
detail with my counterparts in the US and other nations. Thanks
to the leadership that the UK offered at COP26, the question of
how we manage these global questions is now right at the centre
of all discussions. The EU is putting forward proposals, and I
will continue to work with the Treasury as we think about how the
UK wants to fit with that. If the hon. Gentleman wants more
detail and information, I refer him to the Treasury.
UK Sanctions on Russia
(Gedling) (Con)
12. What assessment she had made with Cabinet colleagues of the
effectiveness of UK sanctions on Russia in reducing international
trade with that country. (906461)
(Strangford) (DUP)
21. What assessment her Department has made of the effectiveness
of UK sanctions on Russia in reducing international trade with
that country. (906471)
The Secretary of State for International Trade ()
I am very busy today, Mr Speaker. In co-ordination with our
allies, we are introducing the largest and most severe economic
sanctions that Russia has ever faced, to help cripple Putin’s war
machine. We are denying Russia most-favoured-nation treatment
relating to hundreds of key products, ramping up the pressure on
Russia’s economy by making it more difficult for it to trade by
imposing punitive tariffs of 35%. We are prohibiting the export
of certain goods, including critical technologies and luxury
goods, and finally we are also phasing out the import of Russian
oil and coal to deny it access to lucrative energy revenues.
Details can be found in the impact assessment on gov.uk.
I am grateful to my right hon. Friend for that answer. Last week
I visited Poland with Conservative colleagues as part of Project
Maja, the Conservative social action project. It included a visit
to the Russian border, and what is usually a very busy border
crossing with lots of commerce on both sides was, obviously,
eerily quiet. The economic impact of this war is going to be long
lasting for the neighbours in that region for some time, so does
my right hon. Friend agree that it is important that we do all we
can to boost trade with them?
I thank my hon. Friend for his commitment to our eastern European
neighbours and allies. This is an incredibly difficult time for
all of them, not only in security terms but in terms of economics
and trade as well. I will meet the Ukrainian ambassador this
afternoon to discuss further ways in which we can support them
and help Ukrainian businesses to continue to trade as easily as
possible, and we are working very closely with CBIs in the region
to help them find solutions. This is a very difficult situation,
and the UK, working in concert with the US and the EU, will do
all we can both to stop the trade and opportunities for Putin to
raise cash to fund his war machine, and to ensure that those
countries that are standing by Ukraine, providing it with
defensive support and incredible humanitarian support to keep its
citizens safe, will be able to trade as easily as possible
through this difficult crisis.
Mr Speaker
Let us move on to .
You almost caught me out there, Mr Speaker. May I, on behalf of
the Democratic Unionist party, wish Her Majesty the Queen a very
happy birthday on this special day?
I thank the Secretary of State very much for her response to the
question. This United Kingdom of Great Britain and Northern
Ireland is united in its campaign to put sanctions on Russia. The
effects include some companies across the United Kingdom, but
companies in Northern Ireland in particular are having to find
alternative places to sell their products and alternative sources
to purchase products that they usually buy from Russia. What has
been done to help those UK companies, including those in Northern
Ireland?
Indeed, as I mentioned earlier, this is difficult for some
businesses. Our export support service has been focused on
supporting those businesses with difficulties created by their
Russian or Belarusian supply chains. It is a pleasure to be able
to say that it has been extraordinary to witness so many
businesses taking such decisions, even though it is economically
difficult for them, because it is the right thing to do morally
to step away from anything to do with Russia. Huge credit and
thanks to all the businesses taking those very difficult economic
decisions.
Looking at Northern Ireland, while some businesses are suffering,
businesses such as Thales in Northern Ireland have been
extraordinary in helping to provide support by providing the
NLAWs—next-generation light anti-tank weapons—and defensive
equipment that can help the Ukrainians fight the Putin war
machine. Enormous thanks to all those businesses that are helping
to support us and are working with the Ministry of Defence in
particular to make sure that we can support the Ukrainians with
the defensive equipment they need.
UK Trade Agreements: Workers’ Rights
(Ogmore) (Lab)
13. What steps she is taking to ensure that workers’ rights are
maintained in all UK trade agreements.(906462)
(Blaydon) (Lab)
23. What steps she is taking to help ensure that workers’ rights
are maintained in all UK trade agreements.(906473)
The Minister for Trade Policy ()
Both agreements with Australia and New Zealand commit parties to
maintain international labour standards.
The Minister will be aware that the TUC was first promised a seat
on a trade advisory board in November 2020, and 18 months on it
has still not been offered that seat. It was quite right that
life sciences, transport, financial services and various other
bodies have seats on these trade boards. Why do the Government
have a problem with the TUC or any of our trade unions, which do
an enormous amount of work in protecting workers’ rights in this
country?
The issue is that the unions have not taken up the seat they were
offered, but my right hon. Friend the Secretary of State has
included dialogue with unions in our trade negotiations at every
opportunity—most recently, with the work she has been doing to
secure a US FTA—and we will continue to do that. They are
important stakeholders, and they will always be offered a seat at
the table.
Can the Minister tell the House whether the issue of labour
standards in supply chains has been raised with India during the
trade negotiations?
The hon. Member will know from the trade negotiations that we
have concluded already, that this always forms a part of those
negotiations through our discussions and consultations. I can get
her chapter and verse on that and some details. It is not one of
the FTAs I look after, but I can assure her that that is a core
part of our negotiations.
Mr Speaker
I call the shadow Minister, .
(Brentford and Isleworth)
(Lab)
In 2019, the UK signed a trade deal with Colombia. Two years
after that deal, Colombia remains the deadliest country for
workers and trade union members, with 22 assassinations in the
last two years alone. However, the UK’s trade deal has no clear
enforcement mechanisms to protect the rights of workers or trade
unionists. Will Ministers learn anything from this failure,
especially when they negotiate future trade agreements with Gulf
states?
I refer the hon. Member to some remarks on this issue that I made
last year in Westminster Hall, where I took the time to list some
of the activists—trade union activists, environmental
activists—who have been brutally murdered. I listed those people
on the Floor in Westminster Hall because it is important that we
shine a spotlight on those issues. She will know that we have
also taken great efforts to raise this issue at the UN, and I
think we are upholding our obligations to those people in doing
that.
Support for UK Manufacturing Exports
(Bolton West) (Con)
14. What steps her Department is taking to support UK
manufacturing exports.(906463)
(Orpington) (Con)
16. What steps her Department is taking to support UK
manufacturing exports.(906466)
(Stourbridge) (Con)
19. What steps her Department is taking to support UK
manufacturing exports.(906469)
The Parliamentary Under-Secretary of State for International
Trade ()
In 2021, the DIT launched a new export campaign for manufacturing
businesses—"Made in the UK, Sold to the World”. The campaign, in
line with our refreshed export strategy, celebrates the quality
of the UK manufacturing sector and its global demand. We are
supporting businesses across all the UK regions and nations to
amplify and boost export opportunities throughout the
manufacturing sector.
I thank my hon. Friend for his answer. Would he join me in
celebrating the success of the port of Liverpool, which had its
busiest month in March, when it handled 52,000 containers? Would
he also continue to do all he can to ensure that we make more use
of these amazing facilities, especially to export British
manufactured goods?
I congratulate the port of Liverpool on its busiest ever month
and look forward to the record being beaten regularly as exports
from the north-west continue to grow. The Department continues to
help exporters across the Liverpool city region and the wider
north-west. Indeed, last month I joined a joint mission to
Ireland with the Mayors of the Liverpool city region and Greater
Manchester—the first of its kind. The mission allowed us to
showcase 15 exporters from the north-west, who were able to talk
about the strength of the region, to boost the future trading
relationship between our two countries.
Will my hon. Friend update the House on how manufacturing exports
are considered when negotiating free trade agreements?
We are proud to advance UK manufacturing exports through our free
trade agreements programme. For example, with Australia and New
Zealand, we eliminated tariffs for 100% of UK manufacturing
exports. In almost all cases, tariffs will be eliminated the day
that the agreement comes into force. That will save, for example,
£34 million of duties for UK car exports to Australia from day
one, supporting our levelling-up agenda.
My constituency has a long history of manufacturing excellence,
whether in iron and steel or in producing the best glass in the
world. I have fantastic companies, such as Quality Metal
Products. How is the Department ensuring that UK manufacturers
remain competitive in attracting inward investment to help
companies in my constituency to support growth?
The UK has a proud reputation as one of the most attractive
economies in the world. In 2020, the UK secured the most
greenfield foreign direct investment in Europe, according to the
United Nations Conference on Trade and Development. Last year,
the £1.4 billion global Britain investment fund announced aims to
increase our attractiveness, especially to manufacturers. I am
more than happy to link up with my hon. Friend’s manufacturers to
see what we can do to boost manufacturing in her
constituency.
(Sefton Central) (Lab)
The figures reported for UK goods exports show that they fell by
14% in the three months to January compared with the same period
in 2020. That is in contrast with an 8.2% global average rise
over the same period. When the Minister and the Secretary of
State announce a range of initiatives to help exporters, will
they admit that the capacity is simply not there to deliver the
additional support for exports that especially our small and
medium-sized enterprises need?
I wholeheartedly disagree with the hon. Gentleman: the capacity
is there. We provide the export support service, the
international aviation fund, international trade advisers, the
export academy, export champions, the tradeshow access programme,
the international market support programme, UK Export Finance—all
of which were showcased at the parliamentary export showcase,
which I am not sure the hon. Gentleman attended. He could have
found out more details if he had come to it.
Topical Questions
(East Devon) (Con)
T1. If she will make a statement on her departmental
responsibilities.(906474)
The Secretary of State for International Trade ()
As part of the UK’s leadership on sanctions against the Putin
regime, we have raised tariffs by 35% on hundreds of Russian
goods worth £900 million in trade. By the end of 2022, the UK
will end all dependency on Russian coal and oil, and end imports
of gas as soon as possible. We have banned the export of key oil
refining equipment and catalysts, and we are banning the import
of steel and iron products and the export of luxury goods.
On a more positive note, during my recent visit to the US, I was
able to secure the removal of the section 232 tariffs, meaning
that we now have tariff-free access to the US market for the
first time since 2018. I also chaired our first UK-US joint
dialogue on the future of Atlantic trade, whereby the UK and the
US can build and deepen our co-operation on trade. I will be
welcoming my US counterparts to Aberdeen next week to continue
those discussions.
I have also launched the FTA negotiations with Canada. Both
countries want a new and modern trade deal, befitting our close
and historic relationship. I will provide further updates to
Parliament as those negotiations progress.
The south-west is known for not only its food, but its wonderful
drink. Thousands of acres of orchards across the west country
produce some of the world’s best cider, supporting around 12,000
jobs. What steps are the Government taking to help our drinks
industry get their products on shelves across the globe?
We are striving for tariff-free drinks exports through our FTAs,
and the Prime Minister promoted that when he hosted a food and
drink showcase in Downing Street last November. We are opening
new markets and extending our network of 100 overseas food and
drink advisers by recruiting eight new specialist agriculture
attachés. So I hope that the multi-award-winning Ventons Devon
Cyder, Courtneys of Whimple cider and the Smedley family’s Four
Elms ciders will take full advantage of those opportunities.
Mr Speaker
I call the shadow Secretary of State, .
(Torfaen) (Lab)
In recent weeks, the Government announced the suspension of all
tariffs and quotas on trade between the United Kingdom and
Ukraine. Labour supports that, but may I press the Government to
go even further? The political, free trade and strategic
partnership agreement between the UK and Ukraine was signed back
in 2020. Will the Government commit to updating that agreement to
make the scrapping of tariffs and quotas not just a temporary
measure but a permanent one to support the Ukraine’s recovery
from this appalling illegal invasion in the years ahead?
I am grateful that the Opposition support the Government’s work
to help Ukrainian businesses to continue to trade in an
incredibly difficult time for them. We will continue to look at
how we can both support Ukraine and its population to defend its
territory—that will involve ensuring that its economy can
thrive—and tighten the sanctions and trade pressures on Russia
and those such as Belarus who work alongside it. In the short
term, we will bring that forward through the existing FTA. We
will also continue to work with the Ukrainians. As I said, I am
meeting the Ukrainian ambassador later today to discuss how we
can further support that country.
I have met the Ukrainian Business and Trade Association, as I am
sure has the Secretary of State, and I know that there were
already issues with how the quota system worked before the
invasion occurred. Having any trade restrictions back in place
will only cause further problems for Ukraine’s economic recovery.
Any permanent, updated trading arrangement with Ukraine will be
supported by Labour, so will the Secretary of State set an urgent
date to bring a permanent arrangement into effect to give
desperately needed certainty to Ukrainian businesses?
As I said, we are continuing to work very closely with our
Ukrainian counterparts, and after questions the Minister for
Trade Policy, my right hon. Friend the Member for Portsmouth
North (), will meet the business
group to continue those discussions and ensure that we are both
targeting in the short term and thinking about long-term ways in
which we can support Ukraine and help it recover from this
illegal invasion.
(Tewkesbury) (Con)
T2. In spite of the ongoing conflict in Tigray, a number of
businesses have contacted me to say that they want to increase
the amount of business that they do in Ethiopia. Will the
Minister keep the dialogue going with the Ethiopian Government?
That will help our businesses and may help to bring the conflict
to an end.(906475)
The Minister for Trade Policy ()
I completely agree with my hon. Friend. UK exports to that
country were up 7.2% on the previous year. He will know that
recently we have had a UK-led consortium committing $8 billion of
investment into telecoms, which will significantly increase
growth and jobs and help the digital economy in that country. I
thank him again for the role that he played in securing that
investment.
(Edinburgh West) (LD)
T5. This morning, much has been made of our links with Ukraine,
and that comes at a time when the Prime Minister is in India for
trade talks. We also hear reports of a $2 billion increase in
India’s trade with Russia. What implications does that have for
our relationship with India and for our sanctions on Russia? Will
that be taken into account in the Prime Minister’s dealings? Will
he be putting pressure on India to sanction Russia?(906479)
I am really pleased that the Prime Minister is able to be in
India today and tomorrow to discuss broad matters of trade and to
support the Department’s work to bring together a really
comprehensive trade deal with India in the months ahead. He is
also there to discuss the international situation. He has a good
relationship with Prime Minister Modi, and I know that he will
discuss all these issues. The UK, the US and the EU have been
working in close concert to bring together a series of sanctions,
limitations and export bans, and the Prime Minister will discuss
with Prime Minister Modi what we have been doing in the UK, with
the US. They will continue to take the direction that they need
for their economy.
(South East Cornwall)
(Con)
T3. Following on from my hon. Friend the Member for East Devon
(), across the Tamar, Cornwall is
famous for its exceptional produce. What additional help has the
Department given to firms from Cornwall so that they can make the
best possible use of international trade deals?(906477)
The Parliamentary Under-Secretary of State for International
Trade ()
Locally based trade advisers, as well as support through the UK
export academy, can help businesses such as Cornwall’s Ideal
Foods take advantage of all free trade agreements. Cornwall’s
very own tea grower and producer, Tregothnan, will benefit from
tariffs being removed on all UK food and drink exports to
Australia.
(East Kilbride, Strathaven
and Lesmahagow) (SNP)
T7. Figures indicate that Chile is the UK’s 60th largest export
market. Will the Secretary of State update the House on the work
being undertaken to create an updated and bespoke trade deal with
Chile? As chair of the all-party parliamentary group for Chile, I
hope that the group can meet the Department to support that
work.(906481)
The Parliamentary Under-Secretary of State for International
Trade ( )
It is always a pleasure to meet the hon. Lady. I am happy to
confirm that we are committed to bulldozing trade barriers. I am
pleased that Chile has been able to approve British pork
producers exporting into a market that is worth over £200 million
as part of our total trade in goods and services of £26.5
billion. There is more to do; I am happy to meet her.
(Warrington South) (Con)
T4. The Gulf states are an important trading zone for businesses
based in Warrington South, particularly given the excellent links
through Manchester Airport to the Gulf. What progress is my hon.
Friend making in developing trade and investment links between
the UK and the Gulf Co-operation Council?(906478)
Mr Jayawardena
The six GCC nations form together one of our largest trading
partners, with total trade standing at over £31 billion in the
four quarters to September last year. In January, we completed a
public consultation in support of a trade deal with the GCC that
gets the best deal for British businesses and consumers. We aim
to start those negotiations with others later this year. In the
meantime, we are driving forward investment, including £1 billion
from the Kingdom of Saudi Arabia supporting sustainable aviation
in Teesside, and, as I referred to earlier, £10 billion from the
United Arab Emirates in a sovereign investment partnership.
(Easington) (Lab)
T8. Vivarail showcased its world-beating, self-charging battery
trains to delegates at COP26 in Glasgow. What steps is the
Minister taking to promote UK manufacturing, especially green
manufacturing, and win export orders for excellent businesses
such as Vivarail, which is located in my
constituency?(906482)
We are always looking for companies we can showcase. We can sell
companies such as Vivarail around the world. Whenever we talk to
our partners abroad on bilateral agreements looking for
investment in green and renewable energy, including on
transportation, we will always do our best to push forward expert
companies such as the one the hon. Gentleman mentioned.
(Folkestone and Hythe)
(Con)
T6. States in the USA such as Texas and California have a larger
GDP than many European nations. Aside from the UK-US trade
negotiations, will the Minister say what progress is being made
on trade deals between the UK and individual states in the
USA?(906480)
We are making considerable progress on that. We are in
discussions with around 20 US states. I have just returned from
Texas, which if it were a country in its own right would be the
seventh largest economy in the world. We are going to do a
state-level agreement with Texas, we hope, by October this year.
We will start signing those agreements with US states next month.
The first eight we have in the pipeline will be equivalent to 20%
of the United States economy.
(Newcastle upon Tyne Central) (Lab)
During the recent British-American Parliamentary Group trade and
security delegation to the US, we received the unequivocal
message that any US-UK trade deal would have to be
worker-centric. We also heard that the Secretary of State had
said during the Baltimore dialogues that levelling up was the
British equivalent of worker-centric and that therefore any
levelled-up trade deal would have workers at its heart. Can she
confirm whether that is the case and, if so, how she will ensure
a worker voice at every trade meeting and discussion?
The Baltimore dialogues—the first of our trade dialogues, held
just a few weeks ago—was exactly that: a gathering together of
voices from across businesses, industry councils and trade union
groups from both sides of the Atlantic. It was an incredibly
constructive discussion. We were pleased, obviously, that our
voices were there, as they always are at all our tables. It was
interesting that the US was really pleased to be bringing its
trade union voices to the table with industry for the first time.
It was a very positive discussion, which embedded clearly how
everybody will be at the table as we move forward together.
(Rushcliffe) (Con)
T9. The global surge in energy prices has highlighted the
importance of securing both inward investment in green energy
generation in the UK and related trading partnerships. Will my
hon. Friend set out what the Government are doing to accelerate
both those things?(906483)
Mr Jayawardena
We are driving unprecedented investment in green industries, with
the British energy security strategy announcing further cuts to
the red tape that hampers growth in some of these sectors. My
noble Friend Lord Grimstone is leading our new Office for
Investment, and I am delighted that our friends across the Gulf
are as keen as we are to back innovation in this area. For
instance, £100 million has flowed in from Qatar to support small
modular reactors and net zero technology.
(Edinburgh North and Leith)
(SNP)
The Secretary of State for Environment, Food and Rural Affairs in
2019—now the Secretary of State for Levelling Up, Housing and
Communities—insisted to the public that food and welfare
standards would be maintained under UK trade deals struck after
Brexit. Indeed, the Prime Minister has said so frequently, but
the Minister for Brexit Opportunities and Government Efficiency
is reported as saying yesterday that he wants to see food
regulations slashed. Who is right?
Mr Jayawardena
We have always been crystal clear that our food safety, animal
welfare and environmental standards are not for sale.
(Poole) (Con)
Can we have an update on our joining the trans-Pacific
partnership? That is important not only because of the growing
markets, but because of the international challenges, stability
and defence in the region.
My hon. Friend is absolutely right; we have reached a major
milestone on that accession process by moving to market access
negotiations with that trade bloc. In addition to opening up a
new market, this will also help us on such matters as maritime
security and meeting the goals of the integrated review. CPTPP
has strong rules against the unfair trade practice whereby some
countries—China has been mentioned—give unreasonable advantages
to state-owned enterprises or discriminate against foreign
investors. Our vision for that part of the world has trade at its
heart.
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