International Trade
The Secretary of State was asked—
Trade Barriers: Food and Farming
(Banff and Buchan) (Con)
1. What progress her Department has made on tackling trade
barriers for British food and farming businesses.(902792)
(Aldridge-Brownhills)
(Con)
8. What progress her Department has made on tackling trade
barriers for British food and farming businesses.(902804)
(North Devon) (Con)
15. What progress her Department has made on tackling trade
barriers for British food and farming businesses.(902815)
The Parliamentary Under-Secretary of State for International
Trade ()
Thank you, Mr Speaker, for allowing the House to take a moment
this morning to show our resolve, and the country’s resolve,
never to forget the horrors and barbarism committed on our
continent within living memory. We will always remember the
holocaust, and man’s inhumanity to man, and we resolve to work to
ensure that the suffering of so many is never forgotten and never
repeated.
In the past two years we have resolved nearly 400 trade barriers,
from opening markets for UK pork in Mexico and Chile to UK
poultry in Japan. The recent deals with Australia and New Zealand
also provide various mechanisms to identify and address trade
barriers. This year the UK achieved the first export of British
lamb to the USA in more than 20 years, a market estimated by
industry to be worth £37 million over the first five years.
May I take this opportunity to welcome my hon. Friend to his
post, and to associate myself with his remarks regarding today’s
commemoration of the holocaust?
My hon. Friend, as a fellow Aberdeenshire Member of Parliament,
will be aware, as should everyone, of the high quality of food
and drink that Scotland has to offer the world. He will also be
aware of the concerns raised by seed potato growers in
Aberdeenshire and elsewhere across Scotland about the European
Union’s intransigence in not allowing the absolute same standard
of seed potatoes that had been available to meet the vast demand
for them across the European continent. What is the Department
for International Trade doing either to resolve that issue or,
indeed, to find new markets for that wonderful product?
I thank my hon. Friend, and constituency neighbour but one, for
all that he does to champion farmers in Aberdeenshire, and indeed
across Scotland, as he did when he was a Scotland Office
Minister. It might interest him to know that UK exports of seed
potatoes to non-EU markets increased by 25% between 2018 and
2021, and last year nearly 90% of all UK seed potato exports were
to non-EU countries, supported by recent trade agreements with
Egypt and Morocco. The DIT Scotland team, based in Edinburgh, as
he knows well, works closely with the Scottish Government and
their agencies to ensure that Scottish companies are supported to
pursue opportunities for their products in new markets.
The number of food and farming businesses in my constituency is
not high, but none the less they are really important. They
include businesses such as Backyard Brewhouse, a craft brewery.
British farming is renowned for its high-quality produce, so what
is my hon. Friend’s Department doing to take advantage of this
and do all it can to promote our exceptional British produce?
If my right hon. Friend were to invite me, I would be delighted
to visit the Backyard Brewhouse in Brownhills. British food and
drink are among the best in the world, renowned for their quality
and provenance. DIT is delivering an incredibly successful
programme of activity for our exports, matching our producers
with international buyers. We are placing eight new dedicated
agrifood attachés in growth markets around the world.
What more is my hon. Friend hoping to deliver to ensure that our
great British produce carries “Brand Britain,” through national
and regional UK geographical indicators to an international stage
in existing and future free trade arrangements?
I thank my hon. Friend for what she does for the food producers
of North Devon. We have fantastic British produce, with protected
geographical indications, such as Welsh lamb, Scotch whisky and
Stilton, which are promoted and recognised around the globe
through the GREAT Britain & Northern Ireland campaign, and at
home through our “Made in the UK, Sold to the World” marketing
strategy. This supports small and medium-sized enterprises to
understand and access the benefits of FTAs and wider export
opportunities and future success stories from all parts of the
UK. I would be delighted to meet her to discuss what more we can
do to support exports from North Devon and, indeed, the rest of
the UK.
Mr Speaker
I call the Chair of the International Trade Committee.
(Na h-Eileanan an
Iar) (SNP)
Tapadh leibh, Mr Speaker. As we have heard, trade barriers are a
problem for seed potato growers, and yesterday the International
Trade Committee heard that the biggest change that a Government
could introduce to get rid of these and help the UK economy would
be to rejoin the customs union and single market. How much do the
Government care about the UK economy?
I thank my hon. Friend—the hon. Member for that question. This
Government care passionately about the UK economy. It might
interest the hon. Member to know that the EU remains a vital
trading partner for the UK. Contrary to the claim that trade with
the EU has collapsed, Office for National Statistics figures show
that total trade in goods and services between the UK and the EU
was worth £652.6 billion in the year to June. That is up by
18%.
(Barnsley Central) (Lab)
British farmers could lose out on up to £148 million-worth of
growth owing to the New Zealand trade deal, according to a report
by the International Trade Committee. A report by the Department
for Environment, Food and Rural Affairs Committee said that
British farmers could lose out on up to £278 million-worth of
growth owing to the Australia trade deal. What is the Minister
going to do to address those huge potential losses?
As the hon. Member is aware, in our negotiations with New Zealand
and Australia we have ensured that there are huge protections for
British food and farming, including a long period of transition
to allow the market to adapt. We are committed to promoting and
driving up exports of British produce overseas, as well as to
ensuring that the great British produce we deliver at home is
protected.
(Caithness, Sutherland and
Easter Ross) (LD)
If you want to enter into the Christmas spirit, Mr Speaker, I
would recommend a dram of Dalmore, Glenmorangie, Balblair,
Clynelish or Old Pulteney. It is a widely recognised fact that
the highland single malts are the best whiskies in the world.
Notwithstanding the fact that the Minister is an Aberdeenshire
man, will he make sure that sales of those whiskies are pushed
very strongly?
I would be very pleased to visit the hon. Gentleman’s
constituency and try all those fine whiskies. I had a meeting
with the Scotch Whisky Association just last week. It is very
excited about the current trajectory of Scotch whisky sales
overseas, and very, very excited about what we are doing in India
to reduce tariffs on Scotch whisky so that we can further promote
that fantastic Scottish export around the world.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
According to the Centre for Business Prosperity, more than 40% of
products such as shellfish and seed potatoes are no longer
exported to European markets, for want of a veterinary agreement
with the EU—yet the Government do nothing. I know that exports in
ex-Prime Ministers’ speeches have increased recently, thanks to
the efforts of Ministers, but why will they not act now to
negotiate a veterinary agreement, which would be transformational
for British farmers, thousands of British businesses and the
British food industry in particular?
This negativity about our export position with the European Union
is precisely why so many people are turned off from the Labour
party and have been for such a long time. Contrary to what the
hon. Gentleman said, trade with the EU is actually up by 18%. The
veterinary agreement would involve dynamic alignment with the EU,
which I believe the Labour party is opposed to; the hon.
Gentleman might want to correct the record. In terms of overall
relations with the EU, my right hon. Friend the Minister for
Trade Policy is engaging every single day with our European
partners to see what we can do to drive down trade barriers
further, so that we can promote British exports on the continent.
Notwithstanding that, we are looking for new export opportunities
in emerging markets around the world.
Mr Speaker
We come to the SNP spokesperson.
(Gordon) (SNP)
The New Zealand trade deal will mean an expected £150 million hit
to agriculture and food-related industries each year. An impact
analysis shows that the Australia trade deal will mean an
expected £94 million hit to farming and a £225 million hit to
food processing each year. On top of that, UK food and drink
exports to the EU have already fallen, despite what the Minister
says, by more than £1.3 billion, because of the Brexit deal that
this Government signed. Given that mounting charge sheet, how can
farmers and food producers in this country ever again trust a
word that the Tories say?
We will take no lectures from the SNP on supporting Scottish
farmers and food producers. It is not the UK Government who are
accused of operating in an information void due to the lack of
information and slow progress of Scotland’s post-Brexit
agricultural Bill. It is not the UK Government who were
criticised by the National Farmers Union of Scotland for not
voting for the Genetic Technology (Precision Breeding) Bill a
couple of weeks ago. This Government are committed to supporting
Scottish, and indeed British, food producers and exporters, not
creating division and stoking negativity, which is all the SNP
ever brings to the table.
I think Aberdeenshire farmers will take that with a large pinch
of salt. The Secretary of State says that she is a huge believer
in British farming and the role it plays in our national life.
She wrote an article a few years ago on fears about the impact of
opening up our markets on domestic producers such as farmers. In
the light of all that, how long does the Minister seriously think
it will be before he and his colleagues trigger the mechanisms to
bring an end to these disastrous trade deals with Australia and
New Zealand?
The trade deals with New Zealand and Australia are great deals
for British exporters and this country. As I said, unlike the
Scottish National party, we are committed to championing Scottish
and British exports and food and drink around the world, not
creating negativity. It is time that the hon. Gentleman
championed great British exporters—great Aberdeenshire
exporters—instead of coming here with all that scare- mongering
and negativity, as he does weekly.
Financial Services
(New Forest West) (Con)
2. What steps her Department is taking to increase trade
opportunities for the financial services sector. (902795)
The Parliamentary Under-Secretary of State for International
Trade ()
The Department for International Trade is absolutely committed to
increasing trade opportunities for the UK financial services
sector. Through our network of in-market sector specialists
located in Europe, India, Singapore and beyond, the Department is
identifying and removing market access barriers and supporting
companies to export their services to the world. Working with
organisations such as the City of London, the Investment
Association and others, we are promoting the UK’s world-class
financial services overseas. We are also championing financial
services through our free trade agreements.
Has the Minister a programme of support for fintech and start-ups
in that sector?
I thank my right hon. Friend for raising that sector, which is
hugely important to the UK economy and a major export generator.
Our export strategy, which we published last year, outlines the
Government support available for British exporters, including the
financial services sector. The strategy updates the Department’s
support for services firms and helps to give businesses and
financial tech innovators the flexibility and resilience to
thrive and trade globally. As well as providing large amounts of
online support and information, including webinars, the
Department provides tailored support services—for example,
through trade advisers—from which firms of all sizes can
benefit.
(Eltham) (Lab)
If we are to increase trade opportunities for the financial
services sector, does the Minister agree that we must deal with
the prevalence of money laundering for Russian kleptocrats, which
has earned London the nickname “Londongrad”? Does he believe that
we need to ensure that we can tackle such illegal activity in the
City?
The hon. Gentleman makes an important point and, of course, that
is exactly what we are doing. The Government are very aware of
the issues and, with the support of the whole House, have taken
robust action on sanctions against Russia, and will continue to
do so.
Japan
(Warrington North)
(Lab)
3. What steps she is taking to increase trade with Japan.
(902796)
The Minister for Trade Policy ()
In 2021, the Conservative Government concluded the UK-Japan
comprehensive economic partnership agreement—the first major
trade deal that the UK struck as an independent trading nation.
That agreement provides significant opportunities for British
business in Japan and goes further than the previous EU deal. It
also strengthens our case for accession to the comprehensive and
progressive agreement for trans-Pacific partnership. The UK
Government are also working hard to reduce barriers to trade in
Japan—for example, last year, we secured market access for UK
poultry, which is worth £65 million over five years.
Last month, I visited Japan with the British Council where I saw
its fantastic work to promote UK arts and culture and to
strengthen our trading relationship with a key ally in the
Indo-Pacific region. Does the Minister agree that the British
Council is a soft power powerhouse, and can he tell me what work
the Department does with it to boost trade around the world?
I thank the hon. Lady for that question. We work closely with all
aspects of UK hard and soft power abroad and we frequently work
with the British Council, particularly on our education exports,
which are a huge sector and a huge opportunity for this country.
We engage regularly with the British Council to ensure that the
DIT is at the forefront of our educational offer in particular
and that the ties of friendship promoted by the British Council
feed through into our commercial relationship. There is no better
example of that than our excellent recent deal with Japan.
Inward Investment
(Gedling) (Con)
4. What assessment her Department has made of the contribution of
inward investment to the Government’s growth agenda. (902798)
The Secretary of State for International Trade ()
In the last financial year, DIT supported foreign direct
investments generating over £7 billion-worth of economic impact
to the UK economy and creating nearly 73,000 new jobs, of which
34,000 were outside London and the south-east, contributing to
our levelling-up agenda. In 2021-22, we supported 91 inward
investment projects aligned with the 10-point plan into the UK,
which delivered £13 billion of green investment. In October, as
part of the Green Trade & Investment Expo, I visited the
Offshore Renewable Energy Catapult in Blyth—an excellent example
of our British low-carbon sectors.
I am grateful to my right hon. Friend for that answer. I am sure
she will agree that the benefits of investment need to be seen
throughout the United Kingdom. In that context, will she tell me
what her Department is doing to support the levelling-up agenda
and, in particular, to locate staff in the regions and
nations?
I thank my hon. Friend for that question. DIT intends to grow
over 550 roles outside London by 2025. Our second major location
will be the Darlington economic campus, alongside three new trade
and investment offices in Edinburgh, Cardiff and Belfast. I would
also like my hon. Friend, as an east midlands MP, to know that I
visited businesses in the east midlands just last month, and I am
supported by DIT staff based all around the region, who are doing
a fantastic job on trade advisory.
Trade Barriers
(Wyre Forest) (Con)
5. What steps her Department is taking to reduce barriers to
global trade for British businesses. (902799)
(Blackpool South) (Con)
10. What steps her Department is taking to reduce barriers to
global trade for British businesses. (902808)
(Poole) (Con)
12. What steps her Department is taking to reduce barriers to
global trade for British businesses. (902811)
(Rugby) (Con)
16. What steps her Department is taking to reduce barriers to
global trade for British businesses. (902816)
The Minister for Trade Policy ()
In the past financial year, we have resolved 192 individual trade
barriers in over 70 countries. Forty-five of these alone are
estimated to be worth around £5 billion to British businesses
over the next five years. The Department is working tirelessly to
remove the most prominent bilateral trade barriers—work that has
the potential to deliver £20 billion-worth of opportunities for
businesses across the entire UK.
My right hon. Friend’s Department has done sterling work in
achieving free trade deals with 60 or so countries around the
world. However, many other countries are incredibly enthusiastic
to do free trade agreements, and none more so than the Kingdom of
Thailand. As the Prime Minister’s trade envoy to Thailand, may I
urge my right hon. Friend to do all he can to move talks beyond
where they are now to secure a free trade agreement with the
Kingdom of Thailand, which is keen to continue building on our
great trading relationship?
First, I commend my hon. Friend for his work as a former Minister
at the Department. He will be delighted to know that we have
increased the number of countries with which we have a free trade
agreement to 71, in addition to the European Union itself. I also
commend him for his work as trade envoy to Thailand and Brunei.
He will know that we had our first ministerial joint economic and
trade committee with Thailand in June, and we have agreed to
deepen our trade relationship by developing an enhanced trade
partnership. There are no current plans in place for an FTA, but
this enhanced trade partnership could be the first step in laying
the foundations for a potential FTA in the future.
Does my right hon. Friend agree that the Gulf region offers huge
opportunities for British businesses and their export potential?
Is he able to update the House on his Department’s work in
supporting trade to the region?
My hon. Friend is always looking for opportunities for Blackpool
businesses and his constituency. He is right: the UK is
negotiating an ambitious trade deal with the Gulf Co-operation
Council, and an FTA is expected to boost trade between our
economies by at least 16%. We also engage bilaterally with GCC
countries. For example, a key recent success was being able to
get Holland & Barrett vitamin and food supplements into
Qatar, which was worth an estimated £250,000.
I commend the Minister of State on all the hard work he is
doing—I am an avid follower of his Twitter feed, and it is
interesting to find out which country he is in on any individual
day. We do a lot of good exports of cars and so on, but one area
we need to grow is invisibles—financial and other services. When
we do trade agreements, are we putting enough effort into
ensuring that our service sector can take full advantage of
them?
My hon. Friend has hit the nail on the head—quite apart from the
fact that he follows me so closely on Twitter. I would perhaps
commend that more widely, and I hope my constituents get a look
in from time to time. I thank my hon. Friend for that.
My hon. Friend hits the nail on the head when he talks about the
importance of the services sector. Services are 80% of our
economy. We are the world’s second largest services exporter. I
used to sit at the EU Foreign Affairs Council on trade, and it
was often difficult to get the EU to focus as well as it might
have done on services possibilities. We now have an independent
trade policy, which allows us to give services the focus that UK
service companies and service providers deserve, and financial
services are very much at the heart of that. We always make sure
that our services offer is right at the forefront of our FTA
talks and other bilateral trade talks.
GE Power Conversion, which is based in my Rugby constituency, has
strong relationships with shipowners and designers who are
increasingly choosing to have ships built in China. They see
opportunities for offering their expertise in electrification of
large vessels, as the maritime sector decarbonises. Will the
Minister provide some clarity on the Government’s approach to
trade with businesses in China and give some indication of the
steps that UK exporters need to take to compete with
international competitors in that market and to gain full
advantage of the opportunities that are available there?
In successive Government positions, I have always noticed how
diverse the businesses are in my hon. Friend’s Rugby
constituency, right at the very industrial heartland of this
country. He is right to raise the matter of trade with China. The
UK engages with China. We remain open to Chinese trade and
investment, while ensuring that robust protections are in place
to safeguard the UK’s prosperity, values and security. He raises
the issue of GE. We are engaging DIT officials based both in the
UK and in China and already engaging with GE.
(Rhondda) (Lab)
I am not sure that I follow the Minister’s Twitter feed so avidly
as other Members—[Interruption.] Easy! I suspect that he might
have retweeted something that was published by the Conservative
party earlier this year, which said:
“We’ve secured new free trade deals with over 70 countries since
2016. That’s over £800bn worth of new free trade.”
But that is not true, is it? Actually, the UK Statistics
Authority has told the Conservative party to stop publishing such
fibs. Did the Minister retweet that, and, if he did so, will he
apologise?
I am delighted that the hon. Gentleman has raised that. He has
pointed out the fact that we have done trade deals with 71
countries plus the EU, and that there is about £80 billion of
exports for those countries. He may have done this inadvertently,
but he draws attention to the fact that the Labour party has
failed pretty much to support any of the deals that he is
quoting. It abstained on the Japan deal. It abstained on the
Australia and New Zealand deals. I bet the right hon. Member for
Torfaen () did not mention that
to the Australian Trade Minister when he saw him last week.
According to his Twitter feed, the party split three ways on
Canada. It has failed to support any of these trade deals over
the years. It is a bit rich of the party to raise it now.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
Of course the Minister will bluster and try to divert as much as
he possibly can from the substance, as he normally does. Sir
Christopher Chote from the UK Statistics Authority wrote to me,
saying:
“It is misleading to describe the £800 billion figure as a
measure of ‘new global trade’ resulting from the recent
deals.”
That is black and white. Will the Minister now apologise on
behalf of his party and Ministers for sharing that tweet and
misinformation and set the record straight? Yes, or no?
May I start by correcting the hon. Gentleman: it is actually Sir
Robert Chote who is the chairman of the UK Statistics Authority?
I do not resile from the fact that we have concluded free trade
agreements with 71 countries plus the EU. I notice, of course,
that he voted against the EU deal, preferring no deal. I checked
before coming here exactly what the SNP’s record was on these
deals. I will read it out. On Japan, it was against
—[Interruption.]
Mr Speaker
Order. Mr Bowie, you got carried away yesterday. I know that it
is Christmas; do not let me give you that present.
I checked the record. On Japan, the SNP was against. On
Singapore, it was against. On Canada, it was against. On South
Africa, it was against. On Korea, it was against. On Ukraine, it
was even absent. So I will not take any lessons from the hon.
Gentleman about the 71 deals. Perhaps he might start supporting a
trade deal for once, and then he can get behind British
exporters.
(Strangford) (DUP)
As an active Member of Parliament for my constituency, I know
that my Northern Ireland businesses are subject to trade barriers
and red tape day in, day out, as we are subject to different
trading guidelines from the rest of the UK. The Minister is
always helpful, so will he tell us what steps will be taken to
address the delay in the passage of the Northern Ireland Protocol
Bill, to ensure that Northern Ireland can truly be a full
economic partner of this great United Kingdom of Great Britain
and Northern Ireland?
I strongly believe in the actual and potential capabilities of
Northern Ireland as a great exporting part of the UK. Northern
Ireland absolutely plays a full part in our free trade
agreements. One standout feature of the Australia deal was about
the ability of Northern Irish machinery exporters—a big amount of
machinery goes from Northern Ireland to Australia and to New
Zealand. The hon. Gentleman will know that the Northern Ireland
protocol is an active area of negotiation between my colleagues
at the Foreign Office and the Commission. I am sure that he and I
will look forward to seeing a resolution for those barriers; we
recognise that the Northern Ireland protocol is not working for
the people of Northern Ireland and we look forward to seeing a
resolution in due course.
Mr Speaker
I call the shadow Minister.
(Brentford and Isleworth)
(Lab)
Surely it is vital that the Government support British
businesses, but even senior Conservatives have admitted that the
Government have failed on that front. As it is nearly Christmas,
I thought we would indulge in a game of “guess who?”. Does the
Minister know if the Secretary of State knows which one of her
colleagues called the UK’s trade deals “one-sided”? Was it: the
former Environment Secretary; the former exports Minister; or her
boss, the Prime Minister?
I thank the hon. Lady for her festive cheers and Christmas quiz.
I am immensely proud, as I know the Secretary of State is, of our
teams, right across the Department for International Trade, who
are out negotiating. We are negotiating with more partners at the
moment than any other country in the world on free trade
agreements. Those negotiation rounds have been going on recently,
into December, with people working incredibly hard to land the
best deals for Britain. I am just looking forward to the day when
perhaps the Labour party and the other Opposition parties might
start supporting these deals, getting behind British business and
British exporters into our excellent free trade future.
Exports
(Bedford) (Lab)
6. What steps she is taking to increase exports. (902800)
The Parliamentary Under-Secretary of State for International
Trade ()
Boosting exports is at the forefront of this Government’s agenda.
I am pleased to say that UK exports were worth nearly £760
billion in the 12 months to the end of October 2022—that was an
increase of £57 billion, once adjusted for inflation. Our Export
Support Service has received more than 11,800 inquiries since its
launch in October 2021, providing call-backs to customers and
referring companies to other Department for International Trade
services more effectively, to support them on their exporting
journey.
The UK trade performance is the worst on record. Lost output is
estimated at £100 billion a year. With such an appalling record,
it is hardly surprising that the Government are making false
claims to have secured £800 billion in new free trade deals when
most post-Brexit trade deals are just roll-overs. Businesses in
Bedford, big and small, are overburdened with red tape. Will the
Minister explain how businesses in my constituency can improve
growth and trade with the biggest trading bloc in the world?
I thank the hon. Gentleman for that question, but I am afraid
that what he says is simply not true: the Japan deal was not a
roll-over, and neither were those with Australia and New Zealand;
the comprehensive and progressive agreement for trans-Pacific
partnership discussions we are in right now will not lead to a
roll- over; and a deal with India, where my right hon. Friend the
Secretary of State has just returned from, will not be a
roll-over. The hon. Gentleman talks about the EU, so I am afraid
I am going to have to repeat what I said earlier: trade with the
EU in the year up to June was up by about 18% and worth £652.6
billion. We are committed to growing our exports around the world
and supporting British exporters to get out there and sell
fantastic British goods and services into new markets, but we are
also committed to continuing to sell into the EU and we continue
to do so very effectively indeed.
(Ludlow) (Con)
Farmers in my constituency —I remind the House that I am one—have
expressed concerns about ensuring that agricultural interests are
adequately taken into account in the upcoming free trade
agreement with Canada and the trans-pacific trade agreement that
the Minister refers to. I welcome him to his place; will he
please invite the Secretary of State to meet me and other
colleagues representing agricultural constituencies to discuss
those concerns?
I thank my right hon. Friend for his question and for bringing to
my attention that it will also be a new agreement between Canada
and ourselves, which I forgot to mention in my earlier answer. We
are pursuing an ambitious and comprehensive free trade agreement
with Canada that builds on our existing trading relationship,
already worth £23 billion. We have been clear that the new
agreement must work for British exporters, including those in our
agriculture and food and drink industries. That includes
maintaining our high animal welfare and food safety standards for
farmers in Ludlow and across the UK.
Dame (Llanelli) (Lab)
According to a recent report by the Social Market Foundation,
while world goods exports were 7.9% higher by mid-2022 than they
were at the end of 2019, the UK’s goods exports were 21% lower.
“Could do better” would be a kind end-of-term report. Will the
Minister now commit to a recommendation from the Institute of
Directors to monitor and publish the impact of Government
assistance from the Department’s teams—both overseas and UK-
based—to assess their effectiveness and inform improvements so
that all businesses get the best possible support for their
exporting needs?
This Department and, in fact, this entire Government are
committed to growing our exports. We are going to export our way
to growth and, in the 12 months to December 2022, trade was worth
£748 billion. We are rolling out our export support service,
making export champions more visible and more available across
all nations and regions of this United Kingdom. We are committed
to working with small and medium-sized enterprises to get them
into exporting and we are supporting those companies that export
already. We are driving up exports from this country and our new
independent trade policy—something that, if the Labour party had
its way, we would not have in the first place—allows us to do
just that.
Trade Policy: Food Prices
(Paisley and Renfrewshire
North) (SNP)
7. What assessment she has made of the impact of her Department's
trade policies on UK food prices. (902803)
The Minister for Trade Policy ()
The UK’s trade policy works to increase access to good quality,
good value food from around the world. For example, our recent
free trade agreements with Australia and New Zealand reduce or
remove tariffs on the vast majority of goods, which could help to
lower prices. However, there are many factors which contribute to
UK food prices and the precise impact of each is uncertain.
Beyond immediate price changes, security of global food supply is
essential to guarantee the availability and affordability of UK
food in the long term.
That is all well and good, but a new report from the UK in a
Changing Europe think tank has said that new trade barriers as a
result of Brexit have caused a 6% increase in food prices in the
UK. Asked why food prices are rising, the former chief executive
officer of Sainsburys, Justin King, answered “Brexit”, and this
month a Bank of England policy maker went on the record to say
that,
“Brexit has fuelled a surge in UK food prices”.
Does the Minister agree that staying in the EU kept food prices
low and that independence and the European Union would keep
prices down?
I am always interested when the hon. Gentleman cites various
reports, many of which I have of course read and studied closely,
but I like to return to the facts. I checked beforehand, because
I thought he might raise this. He is right that food price
inflation is a real concern, and yesterday’s inflation data
showed that food prices are still rising even though overall
inflation is falling, which will cause difficulties for many
countries across this country. However, the premise of his
question is not quite right: in the UK, the most recent data
available shows that food and non-alcoholic beverage prices rose
by 16.4%, whereas in the EU27, for the same period, they rose by
more—17.3%.
(Stoke-on-Trent Central) (Con)
In this House I have been a champion for promoting the
availability of affordable, healthy and nutritious food to those
from all regions of the UK and all backgrounds. Families are
feeling the cost of living pressures, as evidenced by research
from the British Retail Consortium, which recorded a record high
12.5% inflation in UK food prices in November. What assurances
can my right hon. Friend give me that he is doing everything in
his power through his trade negotiations to mitigate the effect
of food price inflation on ordinary working families?
I thank my hon. Friend for her question. She is right to raise,
as I did just a moment ago, the importance of this issue to
families up and down the country, including in Stoke-on-Trent.
The Government have comprehensive measures in place to support
families through this winter, including council tax discounts,
and energy and further help. On food and trade policy, ensuring
that we remain committed to free trade, and that we have diverse
sources of supply, is essential. We must ensure that Britain
remains open for food exporters to come to the UK and help to
keep prices down, as well as recognising the vital job done by
our own domestic agriculture and food production sectors.
UK-Australia Free Trade Agreement
(Merthyr Tydfil and Rhymney)
(Lab)
9. What progress she has made on the commencement of the
UK-Australia free trade agreement. (902805)
The Parliamentary Under-Secretary of State for International
Trade ()
The UK-Australia free trade agreement is expected to unlock more
than £10 billion pounds of additional bilateral trade. We are
working at pace to implement it, so that businesses can benefit
from it as soon as possible. The Trade (Australia and New
Zealand) Bill is making its passage through Parliament. It passed
Report and Third Reading on Monday, and was introduced into the
House of Lords on 13 December. The Government and the devolved
Administrations are working together to progress the required
statutory instruments to implement the agreement. We expect the
free trade agreement to come into force in spring 2023.
The UK-Australia trade deal has been beset by difficulties and
major delays to its passage through this House, and even the
previous Secretary of State, the right hon. Member for Camborne
and Redruth (), no longer has to put a
“positive gloss” on what was agreed. I, too, have serious
concerns about the impact of the deal on Welsh and UK farmers.
Will the Minister explain the delay behind the scenes? What
discussions have been had with business managers about the delays
to the Bill’s passage through the House, and will he give us some
clarity?
I would like to correct the hon. Gentleman. We are progressing at
pace, and we are having conversations with the devolved
Administrations—indeed, I had conversations with Ministers from
Wales and Scotland recently. Overall, enthusiasm for the deals is
considerable right across the UK. Let us not forget that they
will boost the economy, to the tune of £2.3 billion for the
Australia deal and more than £800 million for the New Zealand
deal. That will bring huge benefits right across the country, and
all nations of the UK will benefit from a 53% and 59% boost to
bilateral trade through the Australia and New Zealand deals
respectively. We all want to move at pace, and we are having
constructive conversations with the devolved Administrations.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
The UK- Australia free trade agreement is, so the House has been
told, a stepping stone to accession to the comprehensive and
progressive agreement for trans-Pacific partnership. As we saw on
Monday, it is not clear that Ministers have learned the lessons
from the rushed negotiations on the Australia deal, and there is
real concern that the existing rules of the CPTPP will be largely
forced on Britain. I am sure the Minister will not want Britain
to be a rule taker, so can he assure us that we will not be
subject to any new secret courts through the investor-state
dispute settlement?
The hon. Gentleman will be aware that discussions with the CPTPP
are ongoing, and we are confident that we will strike a mutually
beneficial and extremely good deal. I advise him to watch this
space.
Trade Remedies Authority: Aluminium
(Blaydon) (Lab)
11. What assessment she has made of the effectiveness of measures
taken by the Trade Remedies Authority to help protect the
aluminium extrusion industry. (902810)
The Parliamentary Under-Secretary of State for International
Trade ()
The UK trade remedies framework has been established to ensure
that the Trade Remedies Authority has full independence when
investigating unfair trading practices. As is the case with
aluminium extrusions, the TRA provides thorough, objective and
expert advice to Ministers based on evidence collected during the
course of an investigation. The reasons for the TRA’s
recommendation will be published alongside the ministerial
decision to accept or reject the recommendation in its
entirety.
Over the past year I have been asking about the impact of the
Trade Remedies Authority’s determination on this issue, and I now
hear that the final determination is due to be published in days.
There are real concerns that the proposed tariffs will do nothing
to support our domestic aluminium extrusion producers, such as
Hydro in my constituency, and producers in the constituencies of
other MPs. What support will the Minister give to our domestic
aluminium extrusion producers, should their fears about the
dumping of aluminium extrusion prove correct? Will he meet me to
discuss the situation?
The hon. Lady is correct. She will be aware that the
recommendations are due to be published soon; she will understand
that I cannot pre-empt today the conclusions of the
investigation. As I have said, the TRA is independent and it
reviews evidence very carefully indeed. On the hon. Lady’s other
question, I would be delighted to meet her to discuss the matter
further.
Topical Questions
(Orpington) (Con)
T1. If she will make a statement on her departmental
responsibilities.(902817)
The Secretary of State for International Trade ()
Yesterday, I returned from Delhi after holding trade talks with
my counterpart, Minister Piyush Goyal, during the sixth round of
the UK-India free trade agreement negotiations. We agreed that an
ambitious, balanced deal that works for both our countries can be
reached and should be reached at the earliest opportunity.
Meeting key UK and Indian businesses at the UK India Business
Council and Confederation of Indian Industry trade conference
made clearer still the opportunities that the FTA would create
for businesses and future generations in both our countries. I
look forward to updating the House at the end of our round.
In 2019, our trade with CPTPP countries reached £110.7 billion,
so does my right hon. Friend share my optimism that joining the
bloc will increase our national prosperity? Does she agree that
free trade and helping businesses such as those in Orpington to
export are how we will create genuine, long-term, sustainable
wealth?
I share my hon. Friend’s enthusiasm for CPTPP. Joining CPTPP will
offer new opportunities for businesses in Orpington and across
the UK. The potential increase to UK GDP is projected to be £1.8
billion. More than 99% of British goods exported will be eligible
for tariff-free trade, including in new markets such as Malaysia.
Customs procedures will become clearer and more efficient. Firms
working in services will have increased market access, greater
transparency and predictability.
Mr Speaker
I call the shadow Secretary of State.
(Torfaen) (Lab)
May I wish all hon. Members a very happy Christmas? In the spirit
of Christmas cheer, I will offer the Minister for Trade Policy
some help after his struggles in the Christmas quiz from my hon.
Friend the Member for Brentford and Isleworth () earlier: it was, of course,
the Prime Minister who said that the Australia deal was
“one-sided”.
There is more:
“The first step is to recognise that the Australia trade deal is
not actually a very good deal for the UK”.—[Official Report, 14
November 2022; Vol. 722, c. 424.]
Those are not my words, but the words of the former Secretary of
State for Environment, Food and Rural Affairs, the right hon.
Member for Camborne and Redruth (). Quite simply, why should
anyone have confidence in the Conservatives’ trade policy when
they do not have confidence in it themselves?
I am afraid the right hon. Gentleman is talking nonsense. The
Australia free trade agreement is a great deal. It will boost the
household wages going into our pockets by an estimated £900
million. It will grow the UK economy to be an estimated £2.3
billion bigger in 2035. It will see the removal of all tariffs on
UK exports, which will make it easier to sell all UK goods, from
cars to chocolate and Scotch whisky. There will be lower prices
at home. I had a meeting with the Australian Trade Minister, and
we had a very good conversation. I think it is a shame that the
shadow Secretary of State did the same and is now coming here to
say negative things about the deal.
If the Secretary of State thinks that those views are nonsense, I
suggest she takes them up with the Prime Minister and the former
Secretary of State. It was their judgment that I put to her, not
my words.
On trade, the reality is that the Conservatives are delivering
either bad deals or no deals at all. That is what happens when we
have a Government who are high on rhetoric and devoid of
strategy, with workers and businesses paying the price. Let me
ask a simple question. If the Government will not hit their
target of 80% of our trade being under FTAs by the end of the
year—and they won’t—when will they hit it?
As Secretary of State, I have been very clear that what is
important is the substance of trade deals, not the timing. It is
about the deals, not the day. I am negotiating quality trade
deals for the UK that will last for generations to come. We are
thinking about the future, not trying to re-fight the Brexit
debate.
(Crewe and Nantwich)
(Con)
T2. Medtrade in my constituency has not only been supplying
battlefield bleed control packs to Ukraine, but recently received
approval for a new treatment for postpartum haemorrhage, which
affects 14 million women globally and causes 80,000 deaths a
year. Will the Secretary of State join me in meeting Medtrade in
Crewe to understand how we can better help such innovative life
sciences companies in our constituencies?(902819)
I thank my hon. Friend and Medtrade for their support in sending
supplies to Ukraine. My Department is committed to supporting
innovative life sciences companies; he will have seen the Board
of Trade’s recent report on life sciences. DIT North West has
worked with Medtrade for several years to grow its exports and
will continue to support its export journey. I am sure that the
exports Minister—the Under-Secretary of State, my hon. Friend the
Member for West Aberdeenshire and Kincardine ()—will be happy to meet him to
further discuss what we can do.
(Newcastle upon Tyne Central) (Lab)
The Secretary of State recently announced signing a memorandum of
understanding with the US state of South Carolina focusing on
life sciences and automotive—areas that are very important to the
north-east. Could she set out exactly how businesses in Newcastle
can benefit from that memorandum of understanding and whether it
is supposed to compensate for the lack of any trade agreement
with the United States?
The Minister for Trade Policy ()
It was me who signed the deal with South Carolina last Wednesday,
and the hon. Lady can see the deal for herself on gov.uk. We have
done deals with Indiana and North Carolina. Offshore wind is
important for her area of the country, and North Carolina brought
in an offshore wind delegation to see its governor just a couple
of months after the signing of the deal, so these deals are
leading to tangible opportunities.
(Bolton West) (Con)
T4. As was rightly pointed out earlier, food price inflation is a
huge problem for British consumers. Does my right hon. Friend
agree that we should look at negotiating trade in tomatoes from
Morocco, which has the potential of saving about £180 million a
year? That would be a big improvement for the British consumer,
as every little helps each individual.(902822)
I am delighted that my hon. Friend raised Morocco, because
although they were defeated in the end, their performance was
marvellous in the World cup last night. We have a new agreement
with Morocco. We are keen to diversify our sources of food
supply. We had the inaugural UK-Morocco trade and investment
sub-committee meeting in July, and I look forward to doing more
with Morocco, as I am sure my hon. Friend does.
(Caerphilly) (Lab)
Will the Government accept that if the anti-dumping duties placed
on Chinese imported aluminium extrusions are too low, the result
could be the loss of thousands upon thousands of British
jobs?
The Parliamentary Under-Secretary of State for International
Trade ()
As I said a few moments ago, a report will be coming out very
soon, and we will be able to comment further at that point. We
have had many representations, and the Trade Remedies Authority
has worked very carefully on these issues.
(Cleethorpes) (Con)
T5. The UK has a highly developed renewable energy sector, which
includes many businesses based in my constituency. Across the
world there are many countries eager to remove fossil fuel
generation. Can the Minister give an assurance that the
Department will do more to encourage our renewable energy sector
to get more into the export market?(902823)
The Parliamentary Under-Secretary of State for International
Trade ()
I can indeed. At the green trade and investment expo in Gateshead
last month, I saw many companies from around the UK that are
engaged in exporting renewable energies technology around the
world. Indeed, the UK is home to world-leading companies in the
design and development of renewable energy, and the Department
for International Trade has already supported over £5 billion of
exports across the energy and infrastructure sectors in the
past.
(Paisley and Renfrewshire
North) (SNP)
The Centre for Business Prosperity at Aston University has
estimated that 42% of British exports have disappeared from
European shelves since Brexit. Is the Secretary of State proud of
her party’s 12-year record in charge of export policy?
The hon. Member obviously was not listening to what I said
earlier. Trade with the EU is actually up 18%. Instead of coming
here and talking down Scottish and British businesses that are
exporting to the continent and around the world, he should join
us—he should be here championing Scotch whisky exports, which are
up; he should be here championing Scotch beef exports, which are
up; and he should be here championing the great Scottish
financial services exports, which are up around the world and
transforming lives for the better.
(Clacton) (Con)
T6. Can my right hon. Friend update the House on trade envoy
positions? Following my recent Foreign, Commonwealth and
Development Office report on the Commonwealth, which I am sure he
has read, will there be a specific trade envoy position for the
Commonwealth family of nations?(902825)
My hon. Friend is a tireless advocate of ties with the
Commonwealth. We already have a trade envoy appointed to 15
Commonwealth nations. We have no plans to add a dedicated
Commonwealth trade envoy to the programme. We have trade
agreements with 33 Commonwealth members, with a further 16
benefiting from reduced tariffs, and six of the 11 trans-Pacific
partnership countries are Commonwealth members.
(Strangford) (DUP)
Northern Ireland’s food and drink exports are worth some £5.4
billion, and we export 65% of the sector’s manufacturing to the
UK, the EU and the rest of the world. What discussions has the
Minister had with the Ulster Farmers’ Union, in which I declare
an interest, to commit to protecting Northern Ireland’s
agriculture industry in any future trade deal?
I have not personally had any meetings with the Ulster Farmers’
Union, but one of my Ministers has. I want to emphasise that our
export strategy is focused on such issues. If the hon. Gentleman
writes to me with more specifics, I would be very happy to take
them up on his behalf.
(Waveney) (Con)
T7. The road to net zero provides many local job-creation
opportunities on the north East Anglian coast in technologies
such as offshore wind, hydrogen and carbon capture. The
Government are backing these industries, but significant private
sector investment is required. I would be grateful if my right
hon. Friend outlined what her Department is doing to attract
inward investment to these exciting emerging sectors.(902826)
I congratulate my hon. Friend on his work not only as the MP for
Waveney but as the chairman of the all-party parliamentary group
on the British offshore oil and gas industry. He is well apprised
of what we are doing in the energy sector. DIT and the Office for
Investment work directly with project leads, investors and
financial institutions, and we are seeing excellent progress. For
example, ScottishPower is investing £2.5 billion in its East
Anglia ONE project, the first of four in the region, including a
£25 million state-of-the-art operations and maintenance facility
in Lowestoft. Events such as the recent green trade and
investment expo in Gateshead, which I mentioned, are showcasing
UK opportunities to the world in many technologies, such as
carbon capture and hydrogen.
(Buckingham) (Con)
Exports such as squid from the Falklands are an enormously
important part of the economies of our overseas territories and
Crown dependencies. Can my right hon. Friend assure me that
everything possible is being done to support the trading
relationships of this important part of the British family?
We work closely with the Crown dependencies and overseas
territories to ensure their interests are actively represented in
our FTA programme and trade negotiations. DIT officials have
fortnightly contact with them, and the Minister for Trade Policy
has recently engaged with them and will continue to do so.
Sir (Rochford and Southend
East) (Con)
I was interested to hear the Secretary of State’s update on
India. Can she go into more detail on how many chapters have
closed and on the big opportunities in this trading
relationship?
Sixteen chapters have closed. I returned from India just
yesterday, and I am still a bit jetlagged. We had two days of
invigorating trade talks. Minister Goyal and I had face-to-face
discussions on the priority areas within the FTA, including
goods, services and investment. I had meetings with multiple
businesses that the embassy and all our fantastic officials are
supporting.
(Witney) (Con)
The Minister for Trade Policy mentioned the North Carolina trade
agreement he has just signed. Can he explain how this will help
businesses in places such as West Oxfordshire to export to every
corner of the United States, our largest trading partner?
We have now signed three of these deals. Last week, we brought
Utah a bit closer and we have agreed to start negotiations with
California. As a practical example, an offshore wind delegation
went to see Governor Cooper of North Carolina just a few months
after the deal. We had the first meeting of the working group on
Indiana last Monday, at which we talked about increasing the
opportunities for UK firms to bid into state procurement markets
in the United States. As we know, the US is a very federal system
and some state procurement markets offer great potential for
companies across the UK, including in my hon. Friend’s
Oxfordshire constituency.
(Gloucester) (Con)
We have recently signed several agreements with Indonesia, which
is good news, and the follow-up is now critical. Will my right
hon. Friend confirm, first, that the next round of Joint Economic
and Trade Committee talks will happen here in London in the first
quarter of next year? Secondly, will the new
Government-to-Government framework have Indonesia as a priority?
Thirdly, and perhaps most intriguingly, can we move to
negotiations on an FTA as soon as possible?
I congratulate my hon. Friend on being a doughty champion of
Indonesia and on being such a good trade envoy. He is right that
we want to have a JETCO early next year. The Department is
liaising closely with its counterparts in Indonesia, and I would
be delighted to invite him to assist us in all our engagements to
make sure we see all the good things that he wants to happen.
(Preseli Pembrokeshire)
(Con)
I start by thanking you, Mr Speaker, for leading us in the
one-minute silence commemorating 80 years since this House
recognised that the holocaust was taking place in Nazi-occupied
Europe. It was a powerful moment for the House, and thank you,
too, for the welcome you gave to the incredible holocaust
survivors who are with us this morning.
Following the Minister’s meeting with the French Trade Minister
Olivier Becht yesterday, does he agree that there is a new mood
of optimism around the Franco-British bilateral relationship, and
that the planned summit in the new year provides a really good
moment to think about deepening our ties of co-operation,
especially on trade and energy security, and increasing
people-to-people contact?
I join my right hon. Friend in commending you, Mr Speaker, for
the commemoration earlier today. My right hon. Friend is quite
right that I had a very good meeting with Olivier Becht
yesterday. It lasted a full hour, online, and we covered an
enormous range of issues, including preparations for the
UK-France summit coming up early next year. That will be a great
opportunity for us to build on that relationship.
As the Minister responsible for exports—my hon. Friend the Member
for West Aberdeenshire and Kincardine ()—said, trade with the EU is
going back up. That is great news and we need to make sure that
the trading relationship with France—we are the third largest
investor in France and that is a really important relationship
—continues to flourish. I know that my right hon. Friend, as
chair of the all-party group for France, will take a keen and
continuing interest in that.
