The Secretary of State was asked— UK’s Green Industries: Export
Opportunities Martin Vickers (Cleethorpes) (Con) 1. What steps her
Department has taken to increase export opportunities for the UK’s
green industries. (900486) The Parliamentary Under-Secretary of
State for International Trade (Mike Freer) Our clean growth
programme launched during COP26 has boosted support for green
exporters, including a new clean growth faculty in our Export
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The Secretary of State was asked—
UK’s Green Industries: Export Opportunities
(Cleethorpes) (Con)
1. What steps her Department has taken to increase export
opportunities for the UK’s green industries. (900486)
The Parliamentary Under-Secretary of State for International
Trade ()
Our clean growth programme launched during COP26 has boosted
support for green exporters, including a new clean growth faculty
in our Export Academy, while UK Export Finance has provided over
£7 billion of support for sustainable deals since 2019. Our free
trade agreements are liberalising green trade, supporting green
jobs across the country, including on the Humber. This autumn we
will host a UK green trade and investment expo in the north-east
connecting UK industry with global investors and buyers to
promote green opportunities.
It is quite clear that the Government are doing a great deal to
promote the green sector and make it easier for our British-based
companies to exploit the export market, but given the commitments
that have been made by countries across the globe at the COP26
conference, there is clearly always more that can be done. Are
the Government planning any additional new initiatives other than
those that the Minister has outlined?
The Government will continue to use the free trade agreements to
liberalise and encourage green investment. We lead outward-bound
trade visits. We are constantly seeking opportunities and talking
to our partner countries to assist them in expanding on green
exports, particularly in things like solar power, wind power,
renewables and smart cities. These are all technological sectors
where the UK leads the world.
(Rutherglen and Hamilton
West) (Ind)
What discussions has the Minister had with the Scottish
Government about the potential for Scotland’s green energy
industries such as offshore wind and hydrogen and the part that
they have to play in a UK trade strategy?
I am planning a trip to Scotland in the very near future to have
the very conversations that the hon. Lady mentions. The
Department works closely with the Scottish Government. Only this
week, we took a trade delegation of Azerbaijanis up to Aberdeen
to look at how people can transition from carbon to renewable
energy.
Mr Speaker
I call shadow Minister .
(Brentford and Isleworth)
(Lab)
Thank you, Mr Speaker. May I start by endorsing your comments
about our colleague, my friend, ? She is still very much missed and always will be.
It is vital that we support green industries in the UK,
especially those that are exporting products around the world,
yet the investor state dispute settlements threaten green
industries and renewable energy projects. Many of these
provisions are in the energy charter treaty, which lets fossil
fuel companies sue Governments who are trying to decarbonise,
such as the Netherlands. Will the Government therefore support
efforts to remove in full these protections for fossil fuel
companies in the energy charter treaty?
I understand that we have never been defeated in any disputes on
that particular subject. If the hon. Lady has any specific issues
about barriers that she wants to have addressed, I am more than
happy to ensure that that conversation is taken forward. As the
Minister responsible for exports, I can say that those particular
barriers have never been raised with me when talking to partner
countries.
Mr Speaker
I call SNP spokesperson .
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
Thank you, Mr Speaker. May I echo your comments regarding our
colleague ?
Germany is a key export target, along with other nations, for
Scottish clean hydrogen. Scotland is already a net energy
exporter—an energy-rich country ready for independence. Given
that clean hydrogen from Scotland can generate an extra £25
billion gross value added and create tens of jobs by 2045, what
discussions has the Minister had with his Government colleagues
about reversing the £1 billion betrayal of the carbon capture and
storage scheme at Peterhead, dumped in 2017 and shamefully
ignored ever since, in order both to capitalise on and
turbocharge this export potential?
If there is such great export potential, I am surprised that the
member of the Scottish Government who, let us not say has
responsibility for exports, because we have been there before,
but who does specific work on exports, has not raised it with me.
I look forward to that conversation when I go up to Scotland, but
if this is such a barrier, I urge the Scottish Government to
discuss it with the Minister for Energy, Clean Growth and Climate
Change.
India: Foreign Direct Investment and Trade
(Kensington) (Con)
2. What recent discussions she has had with her Indian
counterpart on increasing (a) trade with and (b) foreign direct
investment from India.(900490)
(North West Leicestershire)
(Con)
15. What recent discussions she has had with her Indian
counterpart on increasing (a) trade with and (b) foreign direct
investment from India.(900507)
The Parliamentary Under-Secretary of State for International
Trade ( )
Mr Speaker, I should also like to associate myself with your
comments about our colleague .
Our trading relationship with India was worth over £24 billion
last year, and we are already India’s top investment destination
in Europe. We have had many discussions and remain determined to
create more good jobs and boost wages across Britain. Together,
we are bulldozing trade barriers and—from Scotch whisky to Welsh
lamb and medical devices—I think we all know that a trade deal
will take our relationship even further.
My constituency of Kensington has strong links with India. We
have the oldest gurdwara in the whole of Europe, the Khalsa
Jatha, and we also have the residency of the Indian high
commission. Indeed, on Sunday I will be with the Indian high
commissioner in Holland Park launching International Yoga Day.
Everyone is welcome to attend. [Laughter.] Can my hon. Friend
explain to the House how a trade agreement with India can benefit
the whole of the UK?
Mr Jayawardena
I may not be sufficiently flexible to attend and to join the high
commissioner on International Yoga Day, but it is wonderful to
hear of my hon. Friend’s collaboration.
Following the Prime Minister’s visit to India in April, British
and Indian businesses have confirmed more than £1 billion of new
investment and export deals in areas from software engineering to
health, and this has created almost 11,000 jobs across the
country, including in Edinburgh, Leeds, Northumberland and York.
This illustrates how investment and a trade deal will continue to
bolster our levelling-up agenda to the benefit of the whole of
the United Kingdom.
Does the Minister agree that British business should look more
towards India than China for future trade relationships given its
democratic structure and our historical ties, and what steps are
the Government taking to encourage and facilitate that?
Mr Jayawardena
The world’s oldest democracy and the world’s biggest are
certainly natural partners, and this, alongside our historical
ties and thoroughly modern relationship with one of the fastest
growing economies in the world, makes India a clear priority
trading partner for the United Kingdom. Through the integrated
review, we are pursuing deeper engagement with India and other
partners across the Indo-Pacific, and I am very keen to continue
our work to support those who do so much to champion Anglo-Indian
relations.
(Strangford) (DUP)
Mr Speaker, may I associate myself with your comments about
? It is hard to believe that it is six years, but while
she was cruelly taken from us and from her family, she very
clearly lives on with her legacy, and we remember that.
I thank the Minister for his response. We understand that there
are clear contacts between ourselves and India culturally,
economically and historically. At the same time, can the Minister
outline what steps are being taken to ensure compliance with
human rights, which is an essential component of any trade deal,
as a priority? Human rights must be central to any deal.
Mr Jayawardena
I know that the hon. Gentleman is a great champion of religious
freedom in particular, and the Government’s international
obligations and commitments, including on freedoms, are always of
paramount importance when it comes to making our decisions. We
encourage all states to uphold their obligations, and we condemn
any incidences of discrimination because of religion or belief,
regardless of the country or faith involved. We do engage with
India on a range of issues, as global Britain does carry the
torch of freedom forward.
Mr Speaker
I call the shadow Minister.
Dame (Llanelli) (Lab)
We very much welcome the prospect of increased trading
opportunities with India, a country with which we have many
historical ties. At the COP26 summit in Glasgow last year, Prime
Minister Modi announced demanding commitments to reduce
emissions. After the Government’s shocking sell-out on the
Australia deal, what preparation is the Minister making to use a
possible trade deal to support Modi’s ambitions and to act on
recommendations from the CBI about how our trade policy can
support our climate goals, such as by including incentives to
meet or surpass emissions reduction targets in a trade
agreement?
Mr Jayawardena
I am not going to comment on live negotiations. Indeed, we were
delighted to welcome the Indian negotiators to London this week
for a further round of discussions. We have been very clear that
we want trade to be a force for good in the world, including
green trade, which we believe can create thousands if not
millions of jobs across Britain and indeed the world, and I am
sure that the Indian Government would agree.
Trade with Commonwealth Countries
(South East Cornwall)
(Con)
3. What steps her Department is taking to increase trade with
Commonwealth countries. (900491)
The Minister for Trade Policy ()
Mr Speaker, may I also associate myself with your remarks about
and her legacy? My thoughts are with her family
today.
Pre-pandemic, the combined GDP of the Commonwealth was $9
trillion, and nearly 80% of that was due to four nations: us,
India, Canada, with which we are now negotiating a free trade
agreement, and Australia, with which we have already secured a
from-scratch FTA. With 27 economic partnerships, we intend to
boost our intra-Commonwealth trade to $2 trillion by 2030.
Mrs Murray
In this year of the platinum jubilee, what better time could
there be to cement our bond with Commonwealth countries? Does my
right hon. Friend agree that this would be an excellent year to
redouble our efforts to increase trade with those nations, which
have such a strong history with our own?
I thank my hon. Friend for raising that. Yes, we have the
jubilee, and we also have the Commonwealth games, and the
Commonwealth Heads of Government meeting is approaching. It is
right that we celebrate and enhance the power of our Commonwealth
family. We are united in our commitment to democracy, peace and
prosperity, and we will continue to work with our partners to
capture the potential of the Commonwealth advantage, which on
average allows for 21% lower bilateral trade costs between
Commonwealth countries, compared with most non-Commonwealth
countries. We should put all our weight behind maximising
that.
Surveillance Technology: Trade with China
(York Central)
(Lab/Co-op)
4. What discussions she has had with Cabinet colleagues on the
impact of trade with China on surveillance technology.
(900493)
The Parliamentary Under-Secretary of State for International
Trade ( )
China remains a significant trading partner for the United
Kingdom, and there is scope for mutually beneficial trade and
investment. In 2021, China was Britain’s third largest trading
partner, but our approach to China is, and will remain, rooted in
our values. As set out in the integrated review, we want a
positive trade and investment relationship with China, but we
will make sure that Britain’s national security, and the values
of the British people, are protected.
The EU Parliament, Australian Government, and the US recognise
the dangers of Chinese state owned surveillance cameras, and are
introducing sanctions against Hikvision, and others, due to the
national security considerations, and the facilitation of human
rights atrocities in Xinjiang. The UK Government have not ceased
trade in those products, and are placing them in UK schools,
hospitals, on our streets, and even in Government Departments.
Does the Minister agree that the UK should immediately cease
trading in security equipment with China, and funding those
companies implicated in genocide?
Mr Jayawardena
We remain seriously concerned about allegations levied against
Chinese surveillance firms with regard to Xinjiang, and we take
the security of our citizens, systems and establishments very
seriously. We have a range of measures in place to scrutinise the
integrity of our arrangements. In addition, the Procurement Bill
will further strengthen the ability of public sector bodies to
disqualify suppliers from bidding for contracts where there is a
history of misconduct. We have already set out a number of
measures to help ensure that no British organisations are
profiting from or contributing to the violations of rights.
UK-India Free Trade Agreement
(West
Dunbartonshire) (SNP)
5. What recent assessment her Department has made of the progress
of the UK-India Free Trade Agreement. (900494)
The Parliamentary Under-Secretary of State for International
Trade ( )
As I said a moment ago, talks with India continue to be positive,
and on Monday we welcomed Indian officials to London for the
fourth round of negotiations. An FTA offers the opportunity to
deepen our already strong relationship, which was worth over £24
billion last year. We are determined to grow that, creating jobs
in every corner of the country, including in whisky distilleries
across Scotland, on which 150% of tariffs and taxes must
currently be paid in India.
The Republic of India has a respected independent legal system,
and that will form part of the basis of the FTA between the UK
and India. The Secretary of State will be aware of my
constituent, Jagtar Singh Johal. What importance do the Minister
and the Government place on a well-functioning legal system that
respects human rights and the dignity of the individual when
progressing free trade negotiations with states such as the
Republic of India?
Mr Jayawardena
I thank the hon. Gentleman for what he says, and he has raised
this issue with me in the past. Her Majesty’s Government are
committed to working with the Government of India to resolve
longstanding and complex consular cases such as this. The Foreign
Secretary met the hon. Gentleman and the family of his
constituent on 9 June, and she committed to continuing to raise
those concerns with the Indian authorities. Our strong ties with
India benefit British prosperity and security, and vice versa,
but we are clear that increased trade need not come at the
expense of our values.
UK Exports to Ukraine
(West Worcestershire)
(Con)
6. What steps her Department is taking to help UK exports reach
Ukraine. (900495)
(Bolsover) (Con)
9. What steps her Department is taking to help UK exports reach
Ukraine. (900499)
(Gedling) (Con)
14. What steps her Department is taking to help UK exports reach
Ukraine. (900506)
The Parliamentary Under-Secretary of State for International
Trade ( )
Since 22 February, the Export Support Service has supported over
400 businesses and individuals wishing to export to Ukraine. To
support British businesses, the Department for International
Trade has expanded its Export Support Service to act as a single
point of enquiry for businesses and traders with questions
relating to the situation in Ukraine and Russia. The Department
will continue to support business and traders during this period.
Having a dedicated export support team ready to help at the end
of the phone will help businesses to access the information they
need at any time. Indeed, the Department runs Britain’s system of
export controls and licensing. The export control joint unit is
expediting urgent export licence applications for Ukraine.
The British Group of the Inter-Parliamentary Union is honoured to
be hosting a delegation of Ukrainian MPs to Parliament today; I
will share that information with them. For Ukraine, the big issue
in exports is getting grain out of the blockaded port of Odesa.
What conversations is the Minister having with the World Trade
Organisation to stop the illegal blockade?
Mr Jayawardena
My hon. Friend raises an important point. Indeed, until Russia’s
invasion in February, Ukraine was one of the largest exporters of
grains and vegetable oils. Britain has developed a six-point plan
for tackling food insecurity. We continue to work with
international partners, including at the WTO, to find ways to
resume grain exports from Ukraine to the countries who
desperately need them, particularly in the developing world. The
outcome that we want is to keep trade flowing and to keep prices
down.
Will the Minister update the House on how liberalising tariffs on
Ukraine has supported the flow of trade and, in turn, on how
effective our sanctions have been against Russia?
Mr Jayawardena
On 10 May, Britain laid legislation to liberalise all tariffs on
imports of Ukrainian origin. Those measures have reduced barriers
faced by Ukrainian businesses and consumers in their time of
need, making it easier to obtain essential goods and aid from
Britain. In lockstep with our allies, we are introducing the
largest and most severe economic sanctions that Russia has ever
faced, with, for example, up to 60% of Russian foreign currency
reserves currently frozen. Analysis shows that, as a result,
Russia is heading for its deepest recession since the collapse of
the Soviet Union.
We have all seen on television the widespread devastation in
Ukraine caused by Russia, so we know that its path to
reconstruction will be a long one. What steps are the Government
taking in planning and support of future rebuilding efforts in
Ukraine?
Mr Jayawardena
The United Kingdom is exploring how she can support the Ukrainian
Government’s reconstruction efforts. There may be opportunities
for British businesses to contribute with their skills,
technology and ingenuity. To that end, I am delighted that,
tomorrow, the Under-Secretary of State for International Trade,
my hon. Friend the Member for Finchley and Golders Green (), will host the Ukraine
investment summit to bring together British companies who have
expertise in reconstruction with Ukrainian decision makers to
begin identifying opportunities for collaboration.
Trade Remedies Authority
(Blaydon) (Lab)
7. What assessment she has made of the effectiveness of the Trade
Remedies Authority. (900496)
The Minister for Trade Policy ()
The Trade Remedies Authority seeks to defend UK industries from
unfair trade practices. It was established last year and has
already begun a series of investigations and making
recommendations to support businesses in sectors vital to the UK
national interest.
Hydro, which produces aluminium extrusions at its Birtley factory
in my constituency, is concerned that the final measures proposed
by the Trade Remedies Authority will not protect it from imports
from China and that they are nowhere near as strong as EU
tariffs. Will the Minister or the Secretary of State meet me and
Hydro to discuss the situation and how the proposed TRA decision
will affect the company?
I thank the hon. Lady for her question. The provisional rates are
based on the evidence that the TRA had gathered at that point in
its investigation. Companies will have to pay provisional duties
only if there is a decision to apply a definitive anti-dumping
duty. The TRA was in Parliament last week, I think, willing to
talk to Members of Parliament. It is always open to doing that,
as well as to speaking directly with businesses, but I shall pass
on her comments to the Secretary of State. She is not here today
because of MC12—the World Trade Organisation’s 12th ministerial
conference—but I will ensure that the hon. Lady’s concerns are
passed on to her.
UK Food Exports: Promotion
(Chipping Barnet)
(Con)
8. What steps she is taking to promote UK food exports around the
world. (900497)
The Parliamentary Under-Secretary of State for International
Trade ()
The Department works with the Agriculture and Horticulture
Development Board to promote cheese exports in the middle east
and China. We have dedicated cheese stands at trade shows in the
middle east, such as Gulfood. We promote cheese through China’s
social media. We operate “meet the buyer” events. For example, I
was out in Kuwait and United Arab Emirates, and saw for myself
how our Department’s people on the ground try to ensure that
major supermarket chains have access to British cheese. We have
over 100 specialists in food, beverage and agriculture, and newly
appointed agri-commissioners in key markets to continue to boost
this important sector.
Mr Speaker, I hope you and the whole House will agree with me
when I say that the cheese produced by the farmers of the four
nations of this great country is the best in the world. [Hon.
Members: “Hear, hear.”] So, I want to hear that cheese is at the
heart of our trade and export policy. Let us hear about the
action being taken to ensure that more people in the middle east,
China, India and across the world are eating our Great British
cheese.
Let me reassure my right hon. Friend that the grand fromage in
No. 10 Downing Street—[Hon. Members: “Groan!”] It was certainly a
cheesy line. The Prime Minister has made it abundantly clear that
he expects us to continue to push the export of food and
beverage. It is working, because the UK’s cheese exports to the
world were £565 million in 2021. Exports to China were £3.9
million in 2021, which is an increase of 3.9%. Exports to Saudi
Arabia are up 53% and exports to the Gulf in general are up
16.2%. This is a British success story, which we will sell to the
world.
(Cleethorpes) (Con)
rose—
Mr Speaker
Mr Vickers, you had Question 1. You cannot have two bites of the
cherry, as much as I am tempted! I know you want to talk about
great Lancashire cheeses, but unfortunately you cannot. Let us
move on to .
USA: Tariffs on Imports from UK
(North Warwickshire)
(Con)
10. What steps her Department is taking to encourage the US
Administration to lift tariffs on imports from the UK.
(900500)
The Minister for Trade Policy ()
On 1 June, section 232 tariffs on imports of UK steel and
aluminium products were lifted. We have also secured the lifting
of the long-standing US ban on the import of British beef and
lamb.
The Minister is doing excellent work to help pave the way for UK
businesses to do more trade in the US, and lifting tariffs is
just one of the ways we can do that. Will she set out what more
the Government can do to support our leading service sectors, as
well as help our small and medium-sized enterprises to get their
foot in the door?
I thank my hon. Friend for raising that point. In addition to a
free trade agreement, which will assist us on tariffs and those
kinds of barriers, we are pursuing a twin-track approach with US
states. That will help our service sector in particular. We are
also looking at the mutual recognition of qualifications in
accounting, auditing, legal services and so on. Next week, we are
holding a UK-US SME dialogue in Boston to help us open up
procurement possibilities for companies that would find it
difficult to seek out those opportunities.
Covid-19 Vaccines: Global Access
(Kingston upon Hull North)
(Lab)
11. What steps her Department plans to take to help secure an
agreement at the World Trade Organisation on ensuring global
access to covid-19 vaccines. (900501)
The Minister for Trade Policy ()
Negotiations on the response to the covid-19 pandemic are taking
place at the World Trade Organisation’s 12th ministerial
conference this week. Although I cannot comment on live
negotiations—and they are very live today—the UK is seeking a
comprehensive multilateral declaration addressing the trade
policy issues that will make a real difference to global access
to vaccines.
Mr Speaker
. [Interruption.] Oh,
sorry. I call .
I would like to have my say! Thank you, Mr Speaker.
I think there is broad agreement across the House that the world
will not fully defeat covid until its vaccination levels are the
same as those we have been very fortunate to get through the NHS.
Will the Minister go further and give more detail on what we are
asking for in those negotiations? She was quite brief in what she
said.
The right hon. Lady’s question is very timely. The negotiations
are going on as we speak, so I do not want to comment on those
live negotiations. She will know that we firmly believe that
having strong intellectual property rights is key to ensuring
that investment is going into the science base and that these
products and vaccines will continue to be developed. We need that
to happen, as well as to ensure that there is equity and that the
world can make use of these amazing products.
(Harrow West) (Lab/Co-op)
Perhaps the reason that the Minister of State does not want to
give any more detail is that in Geneva this week the Secretary of
State has actually been leading efforts to water down or block
any deal on access to covid medicines. I gently ask the Minister
of State this: with so few people in developing countries having
had their first covid vaccine, why are Ministers so determined to
prevent some of the richest companies across the globe from
giving the poorest people in the world the tools they need to
stop transmission and save lives?
That is a ridiculous mischaracterisation of this country’s
stance. We are one of the largest donors to the covid advance
market commitment, which is ensuring that the vaccine is being
rolled out in 92 developing countries. We are at the forefront of
that effort. What the Secretary of State is trying to do is
ensure that investment in the science base that created these
vaccines remains strong. We need to do both of those things if we
are going to vaccinate the world.
Trade: UK and California
(Christchurch) (Con)
12. What steps she is taking to promote trade between the UK and
California. (900502)
The Minister for Trade Policy ()
Across the US, we are unlocking barriers for business at state
level, while also engaging at the federal level. There is huge
potential for growing trade in California, and I have visited
California three times as part of the Department for
International Trade stateside tour.
I thank my right hon. Friend for that answer, but as California
is the fifth largest economy in the world, will she redouble her
efforts and, in particular, give us a timescale for securing a
memorandum of understanding with the state of California similar
to that which she successfully negotiated with Indiana?
We are currently talking to about 25 states with regard to
memorandums of understanding, including California. Larger
economy states will take longer than smaller economies to arrive
at the final MOU. We think that within the first eight we will
have some super-economy states, including Texas. California will
be a little way off, but I hope to conclude a large number of
these MOUs by the end of this year, and we expect to sign further
in the coming weeks.
(Edinburgh North and Leith)
(SNP)
The UK Government, as we have heard, are in talks with 25
individual US states, in the hope of establishing tailored free
trade agreements. I believe that the Cabinet has set California
and Texas in its immediate sights. If the UK Government have no
qualms in entering into trade agreements with sub-state actors
such as those US states and do not think that that violates US
sovereignty, why do they oppose the Scottish Government entering
into their own free trade negotiations?
This argument, I am afraid, is a false one, and it has also been
perpetrated with regard to the Australia deal. The structures and
kinds of regulations and laws that we are talking about are not
equivalent. In Australia’s case, we are not talking about law or
EU retained law; we are talking about guidelines that sit at
state level. Obviously, the MOUs that we are agreeing with US
states are not free trade agreements in terms of tariffs; they
talk about our regulation, mutual recognition of qualifications
and all of those things. Within those MOUs, we are actually doing
partnerships between particular locations of the UK, which could
include the devolved nations. Northern Ireland has such an MOU
with other parts of the US, and I encourage the Scottish
Government to get on board, because there would be massive
advantages to people in Scotland if they did so.
(North East Bedfordshire)
(Con)
I commend my right hon. Friend’s progress in her discussions with
California, but she will know that many leading companies have
left California for Texas because of that state’s low-tax,
light-touch, pro-growth regulation. Will she update the House on
the progress that she is making in her discussions with Texas?
What lessons has she learned and passed on about the scope for
regulatory reform in this country?
There is massive scope for such reform, which is one reason why
we are pursuing this agenda. My hon. Friend is absolutely right
that business is seeking out business-friendly states in the
United States. There is now some competition to secure MOUs with
us, and we are going after states that are really open for
business and open to bringing people, ideas and money together to
solve the world’s problems. Texas will be a trailblazer state; we
have signed with Indiana; and Oklahoma, the Carolinas and others
are really pushing the agenda forward. There are massive
potential benefits for us, and for the United States too.
Export Opportunities: International Markets
(Kirkcaldy and Cowdenbeath)
(Alba)
13. What recent discussions she has had with Cabinet colleagues
on measures to support companies to exploit export opportunities
in international markets. (900505)
The Parliamentary Under-Secretary of State for International
Trade ()
Our export strategy and export support service have
cross-Whitehall support. The “Made in the UK, Sold to the World”
campaign will help to reach more than 67 million consumers,
buyers and business leaders in 24 key markets. Our nine trade
commissioner regions, our 40 Prime Minister’s trade envoys and
our international market advisers are all helping businesses to
exploit major market openings through our free trade
agreements.
In the light of recent price hikes on fuel and ambitious net zero
targets, seaport connectivity and infrastructure which allow
goods, especially perishable items, to travel quickly are vital
to businesses that export or wish to do so. With hundreds of
thousands of jobs reliant on accessing the European market, does
the Minister agree that the Scottish Government should make
serious strategic efforts to re-establish a direct ferry link for
freight between Scotland and mainland Europe? That would also
provide resilience for international trade, given the ongoing
pressure on ports in the south-east of England.
The hon. Gentleman is passionate about seeing ferry services
restored from Scottish ports to mainland Europe, and he is
absolutely right. Although it is very much a devolved issue, I am
more than happy to encourage the Scottish Government to pursue
it. It is a genuine issue, because the ability to build
additional routes into the UK for freight builds resilience into
the market and helps us to alleviate pressure points,
particularly in moments of disruption across the straits.
Importantly, as the hon. Gentleman says, it helps to reduce the
carbon miles for haulage firms as they take goods from the
straits to Scotland.
Exports to European Markets
(Ogmore) (Lab)
16. What steps she is taking to help businesses export to
European markets. (900509)
The Parliamentary Under-Secretary of State for International
Trade ()
Our export support service provides businesses with tailored
support for exporting to Europe and beyond. Businesses are
connected to our excellent array of support services such as the
UK Export Academy and our trade show programme. We are operating
bilateral partnerships to open up markets and overcome market
access barriers. There is currently an eight-week consultation on
an enhanced FTA between the UK and Switzerland. Those are just
some of the measures that we can take to help businesses to
export to European markets.
Research published yesterday shows that UK exports to the EU fell
by £12.4 billion, or 15.6%, in the first six months of last year.
I have seen that at first hand in my Ogmore constituency:
businesses are being left with no option but to set up legal
entities and warehouses within the EU in order to export. That is
understandable, given the barriers that they face, but it results
in jobs being moved away from the UK. Will the Minister commit to
getting back around the table to reduce the costs and red tape
that businesses the length and breadth of the United Kingdom are
facing when exporting to the EU?
I have to say that I do not recognise that data. The Office for
National Statistics data published yesterday showed that exports
have continued to grow, month on month. For the past 12 months,
exports to the UK were £650 billion. That is £53 billion up.
Those are not my statistics, but those of the ONS.
[Interruption.] The hon. Gentleman shakes his head, but if he
disagrees with the statistics, he should take that up with the
ONS. These are the highest levels of exports to the EU since
records began.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
Given that the Prime Minister’s poor trade deal with the EU has
already damaged exports and cost jobs, as my hon. Friend the
Member for Ogmore () says, the warnings from
business groups this week that the Northern Ireland Protocol Bill
risks further damage to trade and investment ought to have rung
very loud alarm bells across Whitehall. Will Ministers commit to
publishing, before the Bill’s Second Reading, an analysis of its
implications for British exporters and all those whose jobs
depend on exports to European markets?
I will take away the hon. Gentleman’s request and discuss it with
colleagues.
(Glasgow Central)
(SNP)
The Royal Scottish National Orchestra is one of Scotland’s great
cultural exports. It has its own specialist vehicle for touring,
but Brexit red tape and cabotage rules mean that it is very
difficult and expensive now for it to export its cultural wares
in Europe. Can the Minister tell us what he is doing to remove
the Brexit red tape that is tied around our musical
industries?
I can tell the hon. Lady what I am doing about it. We appreciate
that creative industries are massive exporters for the UK and
they are highly valued. What the Department does across all
sectors, not just creative industries, where we identify specific
barriers resulting from our new trading arrangements, is have
regular contact with our partners in-country. Sometimes it is
about interpretation of the rules and sometimes it is the rules.
What we do is sit down with our colleagues to work out whether we
can find a practical solution for the benefit of both the UK and
our European partners.
Topical Questions
(Chipping Barnet)
(Con)
T1. If she will make a statement on her departmental
responsibilities.(900511)
The Minister for Trade Policy ()
The UK signed a trade and economic development memorandum with
the state of Indiana on 27 May. The first such arrangement
between the UK and an individual US state, it forms part of our
twin-track approach to trading with the United States, seeking
out ways to unlock barriers for business at state level in
addition to our engagement at federal level. We are to sign
further memorandums of understanding in the coming weeks.
May we have a cross-Government effort on post-Brexit reform to
ensure that our regulation does more to facilitate competition
and new market entrants? That is crucial not only to grow our
domestic economy but to secure trade agreements and boost
international trade.
I thank my right hon. Friend for her question. She is one of the
authors of the appropriately named TIGRR report—the report of the
taskforce on innovation, growth and regulatory reform—which
pointed to some great ideas and focused on how we can ensure that
our regulation is enabling, not a barrier to deepening trade ties
and opening up opportunities for our citizens. In addition to our
work on our domestic regime, we are, as I said earlier, working
with other nations and getting our regulators to talk together,
so that we can improve our international trade opportunities.
(Torfaen) (Lab)
Mr Speaker, I echo your words about , whose ongoing legacy is testament to her remarkable
dedication and compassion. Members across the House will be
thinking of her family today.
Steel is a foundational industry for our economy, yet Members
across the House will be aware of the difficulties that
steelworkers have been through in recent years, from the US
tariffs to the current cost of living crisis. The clock is
ticking for the UK steel sector, with just 14 days left for the
Secretary of State to make a decision on whether current trade
safeguards remain in place. Will the Minister of State help to
remove the uncertainty by urging the Secretary of State to make
that decision today?
The Secretary of State needs no urging, but it is important that
she is able to make the right decision on this. The steel
safeguards reconsideration is ongoing. I know the deadline is
looming. My right hon. Friend is carefully considering all the
information that has been presented to her. Obviously, we expect
a decision very shortly. We understand its importance to the
steel sector, both producers and end users.
To say that a decision is expected shortly simply is not good
enough. To ensure that this vital industry can survive, Ministers
must stop dragging their feet and act urgently to safeguard the
steel sector. Jobs and livelihoods in our communities are at
risk. Labour backs UK steel. Does the Minister of State not
accept that the reality is that, with time passing, Ministers are
too busy propping up the Prime Minister to act decisively for the
people?
With regard to the right hon. Member’s last comment, it is always
a good indication that we do not have to look at the ONS
statistics to know that the trade numbers are going the right way
when the Opposition spokesman wants to ask questions that are not
related to trade. This Secretary of State has done a huge amount
to support the steel and aluminium industries of the UK, not
least in managing to renegotiate the decision on section 232
tariffs. She will continue to do that and she will make an
announcement on the safeguarding issue very shortly.
(Waveney) (Con)
T2. As the UK decarbonises our economy to deliver net zero, it is
vital that a carbon border adjustment mechanism is implemented to
prevent carbon leakage to other parts of the world, to ensure
that our own domestic producers are not undercut and to create
jobs. Will my right hon. Friend provide an update on the
Government’s work to deliver the mechanism, particularly with
regard to international co-operation with the EU and the
US?(900512)
I thank my hon. Friend for raising this important issue. We
recognise that the risk of carbon leakage is a very real one, and
on 16 May we announced our intention to consult on a range of
possible mitigation options, including product standards and a
carbon border adjustment mechanism. We are working with our
international partners and we are clear that any policies we
consider will have to fit in with other UK priorities, which
include the cost of living, economic growth, and our commitment
to the World Trade Organisation, free and fair trade and the
needs of developing nations.
Mr Speaker
I call the Scottish National party spokesperson, Anum Qaisar.
Ms Anum Qaisar (Airdrie and Shotts) (SNP)
According to Action Aid, the UK’s position on trade and women’s
rights has yet to be set out through a clear, comprehensive UK
trade strategy. Further to this, Action Aid has also accused the
UK Government of taking a quick delivery approach to securing
free trade agreements. In the SNP, however, we have committed to
adopting a feminist foreign policy in an independent Scotland,
and this work is being undertaken. In their current and future
trade deal negotiations, will the UK Government commit to
conducting gender-specific impact assessments of its free trade
deals, not just economic impact assessments? Will the Department
commission an independent statutory body to conduct these
gender-just impact assessments?
The Parliamentary Under-Secretary of State for International
Trade ( )
I am delighted to be able to confirm that Britain is committed to
creating a global trade policy that ensures that women have the
same opportunities from trade as men, and that women worldwide
can benefit from trade as a route to prosperity. That reflects a
core element of this Government’s modernising trade agenda. We
recognise that women face varied and disproportionate barriers to
trade in some areas, and that they are underrepresented among
entrepreneurs and businesses that export, and we will continue to
do more to ensure that everyone benefits from global trade.
(Hastings and Rye)
(Con)
T5. My constituents in beautiful Hastings and Rye are concerned
about the environment and climate change, but they are also aware
that our local businesses need to expand their trade exports
across the globe to benefit from post-Brexit freedoms. What steps
is my hon. Friend taking to tackle climate change through trade
policy?(900516)
The Parliamentary Under-Secretary of State for International
Trade ()
Last month the Secretary of State set out priorities for green
trade, both in the global green transition and in maximising
opportunities for the UK by driving global action on trade and
the environment multilaterally through our engagement in the G7
and the World Trade Organisation while strengthening bilateral
co-operation through our free trade agreement agenda. By 2030,
low-carbon industries could generate up to £170 billion-worth of
UK exports. For example, UK Export Finance’s climate change
strategy commits it to achieving net zero across its portfolio
and operations by 2050. In 2021, UKEF provided £3.6 billion-worth
of support for sustainable projects, an increase of 50% on the
previous year.
(Dulwich and West Norwood)
(Lab)
T3. This morning we have heard some frankly staggering attempts
to present a dreadful UK-EU trade context as some kind of
triumph, but that simply will not wash with my constituents who
are struggling with increased red tape when exporting to EU
member states. Rather than building stronger trade links with our
closest neighbours, Ministers are now ripping up the agreement
they negotiated and risking a trade war with the EU. What is the
Secretary of State doing to improve trading links with Europe and
to end disruption for businesses?(900514)
I remind the hon. Lady of the trader support service and the
export support service, which are there to provide bespoke
support to businesses. I encourage her to put them in touch with
her constituents.
I am afraid the figures do not bear out what the hon. Lady is
saying. The increase in goods exports to the EU, to which the
Under-Secretary of State for International Trade, my hon. Friend
the Member for Finchley and Golders Green () alluded, has in part been
driven by an 8.1% increase in exports from the UK to the EU in
April compared with March. We are bouncing back from the pandemic
and the difficulties as we changed our border and left the EU.
The country is improving on that front. Where issues remain,
whether for the hon. Lady’s local businesses or for the Northern
Ireland protocol, we are determined to resolve them.
(Bridgend) (Con)
T6. Many of my constituents work in the nearby Port Talbot
steelworks, located just outside my Bridgend constituency. Will
my right hon. Friend give an assessment of the impact on the UK
steel sector of removing US tariffs on UK steel?(900517)
I thank my hon. Friend for all his work to champion the steel
industry. The 500,000-tonne annual quota secured for steel
exporters is almost double the annual volume of UK steel exports
to the US between 2018 and 2019, and it provides a significant
opportunity for the UK industry to increase its supply to US
customers.
(North Ayrshire and Arran)
(SNP)
T4. According to the latest figures from the Food and Drink
Federation, despite the Minister’s earlier remarks, UK food and
drink exports to the EU in the first quarter of 2022 were still
£600 million lower than in the first quarter of 2019. Given the
continual shortfall in post-Brexit trade with our largest trading
partner, does she think embarking on a wholly unnecessary trade
war is wise? If not, what will she do to avert it?(900515)
The statistics I quoted are from the Office for National
Statistics. Across all goods there is a marked improvement, but
we want to do more in the food and drink sector. That is why we
are putting in place bespoke food, drink and agriculture attachés
around the world to ensure our farmers and producers have more
opportunities in global trade.
(Blackpool South) (Con)
A trade deal with Israel would slash red tape and increase
investment opportunities for both the UK and Israel. What
progress have the Government made in securing a bilateral free
trade deal with our close ally?
Mr Jayawardena
I am delighted that my hon. Friend raises this issue because, of
course, our trade and partnership agreement was originally signed
as one of the first continuity agreements back in 2019, but the
Prime Minister announced last year that we would begin talks with
Israel on an enhanced and improved UK-Israel free trade
agreement. We have had a consultation, and I look forward to
taking that work forward to boost our trade and investment
relationship and to make sure the further ambitions of both
nations are secured.
(Bath) (LD)
T7. Since Brexit, many UK companies have stopped exporting to the
EU altogether, whatever the Minister is trying to sell us. The
situation has become even worse for many of my small businesses
in Bath since the closure of the SME Brexit support fund. Will
the Government consider introducing a new version of that
fund?(900518)
I would direct the hon. Lady’s businesses to contact the export
support service, which provides practical assistance in
overcoming particular issues. On top of that, we also have the
internationalisation fund, the shared prosperity fund and the
trade access programme. Picking on one pot that is no longer
available misses the point. A whole range of financial support
pots are available to businesses. If she would like directions to
those pots, I am more than happy to write to her.
(South East Cornwall)
(Con)
Will my right hon. Friend update the House on post-Brexit trade
opportunities?
Obviously, we have agreed an enormous number of trade agreements,
including several from scratch. We have a new export strategy and
more support for British business; we have a new export finance
mission; we are an Association of Southeast Asian Nations
dialogue partner; we have a voice back at the World Trade
Organisation; we have created the Trade Remedies Authority, to
help support our own economic interests; we have set our own
global tariff regime; we have streamlined nearly 6,000 tariff
lines, lowering costs for business, and scrapped thousands of
unnecessary tariff variations; we are creating a single trade
window; we will have the most effective border in the world by
2025; and Mr Speaker will be very pleased to hear that we are
bringing forward measures to ensure that cat fur products are not
allowed to be traded. All this is in addition to blue passports
and the prospect of the crown stamp on a pint of English
beer.
(Glasgow North West)
(SNP)
T8. A recent London School of Economics report has found that
between the end of 2019 and September 2021 UK-EU trade barriers
led to a 6% increase in food prices in the UK. Will Ministers
start being truthful and admit that the soaring prices are being
caused not by the war in Ukraine but the Government’s post-Brexit
trade agreement, which is causing so much hardship for my
constituents in Glasgow?(900520)
The hon. Lady will know that work in government is looking at our
global tariff and our tariff regime, with specific reference to
ensuring that we are helping on the cost of living issues, which
are really affecting our constituents. Leaving the EU has enabled
us not only to make those decisions, but to treat developing
nations with better preferences on tariffs, helping their
economies as well as our own.
(Cleethorpes) (Con)
We heard a lot in the reply to an earlier question about exports
of cheese. What initiatives are the Government planning to extend
the export market for seafood? My constituency and neighbouring
Grimsby are major centres for excellent seafood.
The Food and Drink Federation reported last month that food and
drink exports are showing strong recovery as they get back up to
pre-covid levels. Some of the specific actions we are taking
include the creation of a new food and drink export council; this
is between the Department and the sector, so that we continue the
collaboration. We have also announced a new £1 million export
fund to support our world-class seafood exporters, and held food
and drink spring export showcases in the UK and overseas. I also
urge my hon. Friend to contact me and I will arrange a briefing
with our trade commissioner for China, where seafood exports are
absolutely booming.
(Newcastle upon Tyne Central) (Lab)
The Commonwealth Heads of Government meeting in Rwanda is an
excellent opportunity to promote trade with the Commonwealth. As
chair of the all-party group on Africa, I am well aware of the
important role that diaspora communities can play in growing
trade, where familial and friendship links are so important.
Newcastle, like many cities and towns in this country, has a
number of Commonwealth diaspora communities. What specific help
can people in Newcastle expect from this Department to trade with
the countries they, their parents or their grandparents may have
come from?
I thank the hon. Lady for that important question. She will know
that both import and export figures with regard to Commonwealth
nations are increasing quite substantially. There are many
schemes that both our Department and the Department for Business,
Energy and Industrial Strategy have in place. Obviously the local
enterprise partnership networks are also assisting with this.
(Christchurch) (Con)
When a group of us from the British-American Parliamentary Group
visited California last month, we were much impressed by the work
of our trade teams in Los Angeles and San Francisco. However,
those teams would be able to be even more effective if they had
more flexibility to employ local staff, in line with prevailing
labour market rates, as filling vacancies is a problem. What will
the Government do to enable them to do that?
We are doing several pieces of work on that, but one thing we are
looking at in respect of our memorandums of understanding and our
economic dialogues with individual states is the mutual
recognition of qualifications. We are focusing on technical
trades in particular, with legal, accountancy and audit,
engineering and architecture being the trailblazers. This will
not only help UK firms to win more business but help with the
labour-market issues that are affecting businesses on both sides
of the Atlantic.
(Rutherglen and Hamilton
West) (Ind)
How are Ministers planning to promote the Trade Remedies
Authority to businesses in Scotland, to increase the awareness
and take-up of its services where necessary?
They should follow the hon. Lady’s example: I know that she
attended the session with the Trade Remedies Authority. It is
incredibly important that we get the message out to businesses
that the TRA is an independent body with which they can take up
issues. I thank the hon. Lady for attending and for enabling me
to say that at the Dispatch Box today.
(North East Bedfordshire)
(Con)
There are significant opportunities for British exporters to the
Gulf states that are members of the Gulf Co-operation Council,
not least because we already export a lot and because the
barriers for our exporters are greater than those for GCC exports
to the UK. Will my hon. Friend update me on what progress is
being made on achieving such a deal?
Mr Jayawardena
I am delighted that my hon. Friend has raised the great
opportunity there is with the Gulf Co-operation Council. The bloc
is made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the
United Arab Emirates and is a major trading partner of Britain,
with something like £23 billion-worth of trade. We closed our
public consultation some time ago and are raring to go on
negotiations on an FTA with the GCC very soon.
(Strangford) (DUP)
Will the Minister outline what steps have been taken to solidify
our technological partnership with Israel, in the light of the
tremendous advances that come from that nation, and the potential
that home tech companies have to expand if we can build
relationships more effectively?
Mr Jayawardena
Israel is one of the middle east’s most dynamic and innovative
economies and there is a great opportunity in tech in particular.
It is not only a bilateral opportunity but a multilateral or
plurilateral opportunity: I was recently in Brazil, which is
interested in a three-way partnership between Brazil, the United
Kingdom and Israel.
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