(2 years ago)
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Peter Aldous (Waveney) (Con)
The Secretary of State for International Trade (Kemi Badenoch)
The Government’s export strategy sets out how we aim to capture up to £170 billion of export sales estimated for 2030 in low-carbon sectors. At the green trade and investment expo earlier this week, we showcased the best renewable energy technologies and innovations that the UK has to offer. Over the last year, the Department for International Trade has supported £5 billion-worth of exports across energy and infrastructure sectors.
Peter Aldous
I welcome my right hon. Friend to her place, and I am grateful for her reply. With 50% of the UK’s offshore wind fleet anchored off the East Anglian coast, local businesses have acquired a unique set of skills, knowledge and expertise that should be promoted abroad, so as to increase trade opportunities. A case in point is the memorandum of understanding between the New Anglia local enterprise partnership and Virginia Beach in the US. I would be most grateful if my right hon. Friend could confirm that a national framework is in place to ensure that we make the most of these great opportunities.
Kemi Badenoch
I am grateful to my hon. Friend for raising that issue and highlighting the good work that DIT is doing. He will be pleased to know that in 2020—the latest figures available—the UK exported £821 million-worth of offshore wind products, with the help of DIT overseas and sector teams. We have a plan in place to carry out promotions, and work is ongoing to continue to build the UK’s extensive export offer and maximise economic value. My hon. Friend will also be pleased to know that in and around his constituency of Waveney, DIT is supporting Lowestoft and Great Yarmouth in the build-out of Iberdrola and Vattenfall’s projects, which are developing capability to export low-carbon technology globally.
Kerry McCarthy (Bristol East) (Lab)
Earlier this week, I had the pleasure of meeting the Foreign Minister from the Maldives. Like many small island states, it would very much benefit from UK support when it comes to renewable energy; it is just not in a position to do that itself. It would also benefit from the lifting of tariffs on tuna, which I hope the Secretary of State is aware of. What support can we give small island states such as the Maldives?
Kemi Badenoch
I thank the hon. Lady for her question. We have a developing countries trading scheme, which we use to assist small countries that are not able to take some of the opportunities that larger, more developed economies can take. I know that Foreign Office Ministers have been having conversations with Ministers from the Maldives, and I am pleased to see that the engagement is extensive. We will do all we can, and I am happy to have conversations on the best way to assist it in reducing tariffs and increasing trade between our countries.
Sir Jake Berry (Rossendale and Darwen) (Con)
The green industrial revolution can seed jobs across the north of England. Will my right hon. Friend say, particularly in advance of COP27, what support is available for small manufacturers in places such as Rossendale and Darwen to ensure that they can access our overseas networks, to push international trade beyond the shores of Lancashire?
Kemi Badenoch
I thank my right hon. Friend for his question. That is one of the things we are promoting during International Trade Week. We have a 12-point export plan, to do precisely what he described. Just this week, I have met export champions across the UK, who have been showing the ways that we can expand our export networks into other countries. I am happy to provide him with more information on what the manufacturing sector in and around his region can do to take advantage of that.
Jim Shannon (Strangford) (DUP)
I welcome the Secretary of State to her place and wish her well in all that she does. I welcome greater trading opportunities for the energy sector. We must also be aware of the need to self-source and provide our own energy, to be self-sufficient. Has she had the opportunity yet to evaluate nuclear energy options for regions such as Northern Ireland and the ability to then increase trade with other nations?
Kemi Badenoch
The short answer to that is no, primarily because that would be a competency of the Department for Business, Energy and Industrial Strategy, but I would very much like to hear more about the trade opportunities that the hon. Gentleman has identified, which DIT can support in conversations with BEIS, to facilitate those sorts of plan.
Ruth Cadbury (Brentford and Isleworth) (Lab)
On behalf of His Majesty’s Opposition, I welcome the Secretary of State to her position on her first outing. The Government have committed to reaching net zero by 2050, but they continue to approve new licences for oil and gas projects. Projects approved before August 2023 could be protected from being stopped under a revised energy charter treaty. We know that other countries have been sued under the treaty when they tried to close down fossil fuel projects under their net zero commitments. How would the Government prevent that from happening in the UK under a revised energy charter treaty?
Kemi Badenoch
I thank the hon. Lady for her question. She should know that the Intergovernmental Panel on Climate Change believes that those projects are consistent with our transition to net zero. She will know that gas is a transition fuel, so it is not possible for us to get to net zero by cutting off gas completely. We need to ensure that the explorations that are taking place are in line with our strategy; I believe that they are. Responsibility for the energy charter treaty lies with BEIS, but we lead on investment provisions and investor-state dispute settlements. We continue to see it as having an important role in these policies and the UK’s trade policy.
Kate Osamor (Edmonton) (Lab/Co-op)
The Secretary of State for International Trade (Kemi Badenoch)
The last World Trade Organisation ministerial conference, attended by my predecessor, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), brokered an agreement on trade-related aspects of intellectual property rights in relation to covid-19 vaccines. My officials are fully engaged in ongoing discussions regarding TRIPS. The UK remains committed to engaging constructively with the WTO on that.
Kate Osamor
I congratulate the Secretary of State on her new role. A great success was achieved earlier this year when a deal was agreed at the WTO to waiver some rights on the manufacture of covid vaccines, yet the deal does not apply to treatment, so countries such as Pakistan and South Africa are urging an extension of the waiver. Can the Government commit to being a positive voice in negotiations and pledge to support a waiver on covid-19 treatments?
Kemi Badenoch
I cannot make a pledge at the Dispatch Box. I can say that we will do everything we can within the existing framework to support countries that need access to vaccines and treatments. If they are making specific requests about waivers that the DIT can consider, I would be happy for the hon. Lady to write to me so that I can take a look.
Mr Robin Walker (Worcester) (Con)
The Secretary of State for International Trade (Kemi Badenoch)
Building on last year’s success, my Department is holding more than 120 events across the country this week to help businesses of all sizes and sectors to seize export opportunities to support jobs and growth nationwide. I was pleased to welcome more than 100 investors and UK exporters to the green trade and investment summit in Gateshead, attend an Export Academy event in Birmingham and speak at the National Farmers Union dairy export summit to promote UK trade.
Mr Walker
I welcome my right hon. Friend to her place and my neighbour, the Under-Secretary of State for International Trade, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), to his. Worcester is home to some fantastic exporters, including Southco, the products of which reach markets as far afield as the United Arab Emirates, Egypt, Turkey, South Africa and Greece. It has been supported by the DIT to achieve exports worth more than £6 million and it is now working on major opportunities in India. As we celebrate International Trade Week, will my right hon. Friend ensure that we redouble efforts to support Worcester and west midlands exporters?
Kemi Badenoch
I am happy to assure my hon. Friend of that. I am grateful to him for highlighting a lot of the fantastic work that is taking place across the country. He will know, as will hon. Members on both sides of the House, that when it comes to exporting, size does not matter. We want to support as many small and medium-sized enterprises as possible to take advantage of the benefits of international trade. The export support service has boosted our international trade adviser network. He will be pleased to know that five advisers operate in his constituency; more than 180 advisers across the country offer tailored support to SMEs to take advantage of the opportunities for international trade.
Chris Elmore (Ogmore) (Lab)
My constituency makes everything from military grade parachutes to television cameras for US television networks. During International Trade Week, it would be good to do more to include the nations of the United Kingdom to ensure that every constituency in Wales, Scotland and England benefits from that much-needed trade, and that businesses in my constituency from Sony to Wepa and Rockwool are celebrated and supported by the Department.
Kemi Badenoch
The hon. Gentleman raises a good point. We need to make sure that our policies are visible across the UK. I saw many businesses from Wales and similar regions in the west of England at the green trade and investment expo. They are pleased with the support that they are receiving from the Department. I think we have a visit to Cardiff planned with the Board of Trade soon. I hope that these are the sorts of things that he and his fellow MPs in Wales will be able to take advantage of.
Nick Thomas-Symonds (Torfaen) (Lab)
After several months in which Ministers have come and gone without even facing questions at the Dispatch Box, it is good to have a chance, in this International Trade Week, to welcome the new team to the Department. I would of course like to welcome the Secretary of State and to wish her well in her new post, and I would also like to start on a note of consensus. The Secretary of State said during the leadership contest in the summer:
“Why should the public trust us? We haven’t exactly covered ourselves in glory”.
I entirely agree with her assessment of her party.
We know where the Prime Minister thinks that Conservative policy on trade has failed, because he called the Australia deal “one-sided”, so can the Secretary of State set out which other aspects of trade policy have failed and how she intends to improve them?
Kemi Badenoch
I thank the right hon. Gentleman for his warm welcome. He makes reference to comments that I made in the summer, and I am very grateful for the opportunity to clarify them. I was actually referring to all MPs and to Parliament, rather than just to this side of the House—[Interruption.] Indeed; we all know Members of all parties who have not exactly covered themselves in glory, and nobody should pretend that this is about those on one particular set of Benches.
The right hon. Gentleman is talking about trade policy, and one of the things I am very keen to highlight is that there is more to trade than free trade agreements. What we need to do is get our exports and investments going; that is the bread and butter of what trade is about. I disagree with his assertion about the one-sided nature of any particular agreement. What I want to see is businesses selling their products outside the UK and investment coming in.
Nick Thomas-Symonds
Well, trade policy certainly has not been covered in glory, because the 80% of UK trade that was to be covered by free trade deals by the end of year is not going to happen, the comprehensive deal with the US is out of sight and the deal with India by Diwali is a promise broken—but is this really any surprise? The Secretary of State’s predecessor said that her then Minister was not always available to answer the phone, the former exports Minister criticised his Department’s own trade fairs and the right hon. Member for South West Norfolk (Elizabeth Truss) was, it seems, prioritising selfies and wine fridges over standing up for Britain. Is not the reality that this Government’s incompetence is costing growth, jobs and prosperity? Quite simply, when will the Secretary of State get a grip of the Department?
Kemi Badenoch
I find every single thing the right hon. Gentleman has said to be laughable. It is very easy to stand at the Dispatch Box and make political points. I am here to actually deliver for the businesses across the UK, and that is what those of us on the Conservative Benches are going to be focused on. This is International Trade Week, so he will know that by 2030 we are forecasting £1.8 trillion-worth of green trade and £170 billion of UK exports. That is not the work of a Department that is failing; that is the work of a Department that is succeeding. I am very pleased with the actions of the officials at the DIT, and I will continue to support them both in the Department and here in Parliament.
James Wild (North West Norfolk) (Con)
The Minister of State, Department for International Trade (Greg Hands)
Joining the CPTPP free trade area is a flagship policy of global Britain and our independent trade policy. The CPTPP covers 11 countries across four continents, and the UK joining will increase its GDP from 12% of global GDP to 15%. Some 99.9% of UK goods would enter tariff-free, and the CPTPP has groundbreaking chapters on business mobility and digital trade.
James Wild
Given the potential prize of access to markets worth £9 trillion, will my right hon. Friend prioritise not only concluding the negotiations, but working with export champions—such as Captain Fawcett in King’s Lynn, which successfully sells its gentlemen’s grooming products around the world—to encourage more firms to export and to boost productivity and growth?
Greg Hands
My hon. Friend raises two very interesting points. The first is the importance of the CPTPP, which is absolutely one of the Department’s highest priorities. The second is the importance of international trade advisers working on the ground. He mentioned his grooming products company in King’s Lynn, and I can also mention KLT Filtration, based in King’s Lynn, to which we have provided support for its Coldstream filters water-purification consumer brand business. There is a lot of DIT activity happening in his constituency in and around King’s Lynn.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
It is good to be straight and frank about CPTPP—I am sure the Minister will agree—but if we are to be straight and frank, to have gains for jobs, the economy and living standards, would the Government not need 62 CPTPP deals to compensate for the Brexit economic damage? It also means being straight with small and medium-sized enterprises that they will be exporting to faraway CPTPP countries, with lots of bureaucracy and paperwork instead of tariffs. It will not be as easy as it was before Brexit. I am sure the Minister is all over the numbers, so will he confirm that CPTPP will be worth only one sixtieth of the Brexit damage?
Greg Hands
It is always good to engage with the Chair of the Select Committee, and in my year of absence at the Department for Business, Energy and Industrial Strategy I have genuinely missed him and his questioning of me at the Dispatch Box.
Greg Hands
I am certainly going to answer the question, which is about the opportunities from CPTPP: a free trade area of 510 million people and 11 countries across four continents, with amazingly good chapters on date and digital, mode 4, an SME chapter, liberal rules of origin—all those things are great opportunities. Frankly, it is time that SNP Members started, for the first time, to support a trade deal. They opposed the trade deal with the EU; they opposed the trade deals with Japan, Australia, and New Zealand. I am hoping for the day when the SNP will, for the first time ever, support a trade deal.
Rachael Maskell (York Central) (Lab/Co-op)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
Europe remains a vital export destination for British businesses, which exported £344.6 billion-worth of goods and services in the 12 months to the end of June 2022. DIT Europe has around 300 trade experts, including a dedicated trade commissioner for the continent. We will facilitate some 500 activities and events to support UK exporters by the end of this financial year alone, including the So British event at the ambassador’s residence in Paris, Poland’s New Mobility Congress, and a significant presence at Berlin’s InnoTrans trade fair.
Rachael Maskell
I welcome the Minister to his place. In light of the devastating state of the economy, with the EU trade deficit showing at 26.7% last month, there must be pragmatism in working with the trade and co-operation agreement, to boost economic yield by removing export barriers such as tariffs and border friction, rather than instigating harsh cuts to our public services, wage restraint, and a subsequent recession in the forthcoming Budget. What discussions has the Minister had with the Chancellor, to ensure that better trade terms are negotiated between the UK and the EU, or will ideology trump the needs of our constituents and sacrifice our public services?
Andrew Bowie
I thank the hon. Lady for her question, but I am afraid this Government will take no lessons from the Labour party on trade deficits, given that it inherited a trade surplus of £4.6 billion in 1997, and left office in 2010 with a trade deficit of £35.1 billion. We have regular discussions with the European Union on how we can increase trade, and the Government are determined to drive up trade not just with the European continent, but with new partners around the world.
Dan Carden (Liverpool, Walton) (Lab)
The Minister of State, Department for International Trade (Greg Hands)
Negotiations between the UK and Mexico are taking place right now, and the second round of talks with Mexico started on Monday virtually, with discussions continuing to be positive and productive. The UK team is focused on ensuring that the new deal works for consumers and businesses across the UK.
Dan Carden
I am grateful to the Minister for his update. I have the privilege of chairing the all-party group on Mexico, which is one of the world’s biggest democracies and the second largest economy in Latin America. Trade deals provide an opportunity not only for economic growth, but on the connected issues of climate, environmental protection, human rights, workers’ rights, sustainable development and gender equality. How is progress going on those issues? I understand that the Government are considering appointing a trade envoy to Mexico. Will the Minister update the House on that progress?
Greg Hands
That may have been a job application from the hon. Gentleman, who I think is taking his APPG to Mexico next week. I wish him every success in his engagement with such an important trade partner, looking forward for the UK. We are engaged in trade negotiations with Mexico at the moment, and all those topics are subject to continuous engagement with the Mexican Government, including on the environment, climate, human rights and labour rights. Whether those things are included in a trade agreement is a slightly different matter, but none the less we take up and engage with such issues regularly with the Government. I am looking forward to the hon. Gentleman seeing at first hand next week the excellent work done by our embassy in Mexico City.
Sara Britcliffe (Hyndburn) (Con)
The Secretary of State for International Trade (Kemi Badenoch)
I am delighted to say that UK exports were £728 billion in the 12 months to the end of August 2022—an increase of £49 billion adjusted for inflation. Through our free trade agreement programme, we are creating new opportunities for UK exporters through FTAs covering £814 billion-worth of bilateral trade in 2021. We are also supporting UK exporters through our export academy, which since October 2021 has provided tailored assistance to over 11,500 businesses.
Sara Britcliffe
Last year, more than 160 of the great businesses that we have in Hyndburn and Haslingden exported goods around Europe and the rest of the world. Increasing exports creates jobs, wealth and better opportunities. Does the Secretary of State agree that liberalising international trade as a function of our new post-Brexit freedoms is key to levelling up our country, as that provides more opportunities for businesses in Hyndburn and Haslingden?
Kemi Badenoch
I wholeheartedly agree with my hon. Friend. Opening up new markets for Great British business, whether through the FTA negotiations or our work on trade barriers, will be key to securing the economic growth that the British people want. I am also pleased to hear that the export strategy is having a positive impact in her constituency. We currently have 72 export champions based in the north-west, close to her constituency, who are sharing their export journeys and acting as role models for new and aspiring exporters. As part of International Trade Week, we have hosted more than 120 events, and four of them have been in the north-west.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
A survey of small and medium-sized enterprises for the British Chambers of Commerce found that four in five had not carried out any assessment into what they may need from a trade deal with major international markets. What steps are the Government taking to engage SMEs better with free trade agreements under negotiation?
Kemi Badenoch
The hon. Lady raises a good point. We do have SME chapters in FTAs, but quite a lot of engagement takes place with trade bodies such as the CBI and the Federation of Small Businesses. Many of those trade organisations represent their members fully, but if she thinks that a specific issue has been overlooked in any particular negotiations and she would like to highlight that, she should contact DIT in her capacity as a Member of Parliament and we will look into helping those businesses in her constituency and across the country.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Dave Doogan (Angus) (SNP)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
The hon. Members will be aware that His Majesty’s Treasury leads on this policy area. However, I am happy to provide them with an update on the support that my Department is providing to Scottish exporters during the cost of living crisis. The DIT Scotland team based in Edinburgh—I am sure that they are pleased to see His Majesty’s Government increasing their presence in Edinburgh—was established in 2021 with trade and investment expertise dedicated to supporting Scotland’s businesses to grow through exporting overseas. Scottish businesses can access many UK Government services, including the export support service, the UK Export Academy, UK Export Finance and DIT’s overseas specialists in over 100 markets across the world.
Gavin Newlands
I welcome the Minister to his place. However, let us compare export growth in the first quarter of 2019—pre-Brexit and pre-covid—with the first quarter of 2022. In Belgium, it was plus 49%, in Switzerland, plus 42%, in Poland, plus 35%, in Australia, plus 46%, in the Netherlands, plus 23%, in Italy, plus 23%, in Spain, plus 19%, and so on—I could go on and on. The UK’s figure was zero. Does he agree with Saxo Bank’s assessment published in Le Monde that political instability, trade disruption, an energy crisis and skyrocketing inflation are rendering the UK an emerging market country? Why on earth would Scotland want to remain shackled to it?
Andrew Bowie
It is a bit rich for the SNP to talk about political instability and uncertainty given that its own policy is to rip Scotland out of the United Kingdom, doing more damage to Scottish businesses and the economic foundations of our United Kingdom. The global economic situation in which we find ourselves is putting huge pressure on British businesses, but the Government, and especially the Department, are doing everything that we can to support British businesses to export to new markets and the European Union at this time.
Dave Doogan
I welcome my constituency neighbour to his Front Bench role. We are all relieved he has finally landed the job.
Fuel, feed and fertiliser costs are sky-high in Brexit Britain, compounded by the Tories’ cost of business crisis. How does the Minister suggest that my Angus farmers and his West Aberdeenshire and Kincardine farmers compete internationally? Supply-side pressures are manifest in other markets, but they are most acute in the United Kingdom. Our farmers must also now compete with the scandalous Australia trade deal, which will see Australian farmers laughing all the way to the bank while Angus farmers and other Scottish farmers face bankruptcy,
Andrew Bowie
The hon. Gentleman is a champion for Angus farmers and Angus berries, which we would like to see exported to more markets around the world. Indeed, that is why we are in the middle of negotiating access to the comprehensive and progressive agreement for trans-Pacific partnership. That will reduce 99.9% of trade barriers to that part of the world, an exciting, new and growing market for produce from Angus, West Aberdeenshire and Kincardine, Scotland and the entire United Kingdom.
Mr Peter Bone (Wellingborough) (Con)
Before I came to this place, I ran a manufacturing company and did a lot of exporting, in particular to the United States of America. In relation to the second part of this question, when dealing with a big contract one buys the currency forward. However, is it not a fact that the fall in the value of the pound against the dollar has made Scottish exports much more attractive, because they are cheaper in America, and made imports more expensive? Is that not a good thing?
Andrew Bowie
The Government are committed to stabilising the economy, driving down inflation and increasing British exports around the world. My hon. Friend is a great champion for his constituency and I know he will join us in those efforts moving forward.
Virginia Crosbie (Ynys Môn) (Con)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
The Government have put in place enhanced scrutiny arrangements for free trade agreements. We publish extensive information prior to negotiations, including our strategic objectives and an economic scoping assessment. During negotiations, we engage closely with Parliament, publishing updates and holding briefings for colleagues. I particularly look forward to working closely with the International Trade Committee, whose members bring considerable knowledge and insight. Signed deals, together with an impact assessment, are laid before Parliament at the earliest opportunity, allowing for extensive scrutiny over several months. The House will debate the Australia-New Zealand trade agreement soon.
Virginia Crosbie
I thank the Minister for his answer and I welcome him to his place. This week, I celebrated Back British Farming Day with Aled Jones, president of National Farmers Union Cymru. One of the best ways we can back our hard-working farmers, such as those in Ynys Môn, is by ensuring that once a trade deal is in force, there are people on the ground who know the market and can help get the most out of the agreements. Will the Minister update the House on the progress the UK Government have made in appointing agricultural counsellors and attachés?
Nigel Huddleston
I thank my hon. Friend, who is always a fantastic champion for her constituents and constituency, as evidenced by Anglesey Day, which was a fantastic event earlier this week here in Parliament. Also this week, my officials gathered over 20 small businesses from across north Wales and Ynys Môn to discuss how they can internationalise their businesses and take advantage of our free trade agenda. She is right: we do not just need to do the deals; we need to get the most out of them. We will get help there, too, because our eight new agri-food attachés will help unlock opportunities in growth markets. All have been recruited and will start work soon.
Dame Nia Griffith (Llanelli) (Lab)
Business organisations, trade unions, consumer groups and the trade Committees in both Houses have all called for greater and more timely parliamentary scrutiny of trade deals. In contrast to Parliaments elsewhere, such as the US Congress, which has scrutiny opportunities right from the initial negotiating mandate through to voting on ratification, this Government have done deals with no chance for this Parliament, and therefore the people we represent, to have a real say. With a new team in place, will the Minister now commit to meaningful parliamentary scrutiny of trade negotiations—not an afterthought—and bring back control to this Parliament?
Nigel Huddleston
I am afraid that I have to disagree with what the Opposition Front Bencher has laid out. The Constitutional Reform and Governance Act 2010—that date is significant, because it was introduced that April under the previous Labour Government—outlines the process, which is rigorous and stacks up well with other parliamentary democracies around the world, such as Australia, New Zealand and Canada, which have similar systems. For example, with the Australia and New Zealand agreements combined, we delivered an oral ministerial statement at the launch of each negotiation; 10 negotiating round updates; extensive information on the deals when we reached agreement in principle; 12 sessions with Select Committees, including private briefings; eight MP briefings on the FTA programme; the Trade and Agriculture Commission reports and section 42 reports well ahead of the CRaG deadline; six months of scrutiny time; and many other things. [Interruption.] I just wanted to make that point, Mr Speaker—
Mr Speaker
I am going to make an even bigger point: we are not reading out phone books as answers.
I call the Scottish National party spokesperson, Drew Hendry.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
I welcome the Minister to his places—I think that is the right thing to say.
It is vital that, for a change, we get a chance to actually scrutinise proposed deals before they become real. India has no detailed plan, for example, to cut emissions, and 70% of its economy is powered by coal. Cabinet Office emails have shown that the former Trade Secretary and Prime Minister decided to
“drop both of the climate asks”
from the UK-Australia agreement to get it “over the line”, even though Australia has a history of coal pollution. Given that the current Prime Minister had to be shamed into attending COP27, does that mean that no legally binding demands will be made in the UK-India discussions?
Nigel Huddleston
Again, I disagree with that characterisation —respectfully, because I am looking forward to a constructive relationship with the Scottish National party, Opposition Members and the devolved Administrations on trade deals. Let us be very clear: we will not sign any deals that are not in the UK’s interests.
Drew Hendry
The Minister did not answer the question. The UK has rolled over 35 EU agreements and signed trade deals with Australia and New Zealand, yet they have included no realistically enforceable measure to plug the climate change gaps that we have pointed out in all of them from the start. The New Zealand text cannot be enforced and climate has been dropped altogether from the Australia deal. There are gleeful reports from India that there will be no more than warm words on climate change. Why is real action on the climate emergency ignored in every deal that this place brings forward?
Nigel Huddleston
The hon. Member mentions “every deal that this place brings forward”, and again, it would be nice if we actually got support from Opposition Members at some point. He will know that our friends, colleagues and trading partners in Australia, in particular, given the situation they face, are as concerned about climate challenges as we are.
Wendy Chamberlain (North East Fife) (LD)
The Minister of State, Department for International Trade (Greg Hands)
We are committed to ensuring that any deal we sign includes opportunities and, where necessary, protections for UK agriculture. British farming is vital to our trade policy and any deal we sign will work for UK farmers, consumers and companies, increasing opportunities and choice while not compromising our high standards. For example, the UK has secured a range of measures to safeguard our farmers in our recent Australia and New Zealand FTAs.
Wendy Chamberlain
As many said, yesterday was Back British Farming Day and, as part of that, I met Quality Meat Scotland. Although we may not have a final say on trade deals in this Parliament, there are real concerns in the agricultural sector that, particularly around environmental and welfare standards, we are at a significant disadvantage from some of the trade deals. Will the Minister underline what the process is for engagement between agriculture and DIT to ensure that this does not happen?
Greg Hands
Over many years, I have done very extensive engagement with the agricultural sector. I have met the brilliant NFU Scotland president, Martin Kennedy, a number of times, for example, to discuss these various issues. There are very important safeguards in the Australia and New Zealand agreements that effectively phase in product-specific safeguards for UK agriculture. Nothing in any trade agreement forces the UK to dilute or weaken our standards. The independent Trade and Agriculture Commission, which is really important in scrutinising trade deals, concluded that
“the UK is able to prohibit imports of products because it has an agreed interest in certain practices in Australia, either because they are agreed to be a common interest, or because they are agreed to result in an unfair trade advantage.”
So, actually, the independent TAC has given us an endorsement as well.
Mr Speaker
Order. Minister, do not take advantage, please! You have had a little bit too long today, and Mr Cairns has been waiting for a hell of a long time. Come on in, Mr Cairns.
Alun Cairns (Vale of Glamorgan) (Con)
Vale of Glamorgan farmers rear some of the best lamb in the world, and Welsh lamb is recognised globally as some of the best sheepmeat. With a new market open in the United States for the first time in decades, what practical support can my right hon. Friend and his Department provide to farmers in the Vale of Glamorgan to best exploit this opportunity so we can ensure that the best Welsh lamb is on the most expensive plates in the United States?
Greg Hands
My right hon. Friend has been a tireless advocate for his farmers and for all Welsh farmers for the past 12 years. During his time as Secretary of State for Wales, he and I had many discussions about the issue. He will be as delighted as I am that Welsh lamb is going to the US for the first time in more than 20 years, now that the US has removed the small ruminant rule. Achieving that has been a key part of our trade policy objectives for some time. The market is estimated to be worth £37 million in the first five years. We continue to engage with the US Administration—we have very good people in Washington and across the US who are making sure that our access to markets continues to be good.
Paul Howell (Sedgefield) (Con)
The Minister of State, Department for International Trade (Greg Hands)
Over the 2021-22 financial year, we removed 192 barriers to UK agricultural produce across 79 countries. That has included opening the markets for UK poultry meat to Japan and for UK pork to Mexico and Chile. Just last month, the first export of British lamb was sent to the USA for the first time in more than 20 years; as I said, the industry estimates that market to be worth £37 million in the first five years. Millions of American consumers will now be able to enjoy top-quality British lamb.
Paul Howell
I welcome the new team to the Front Bench.
Earlier this year, the then exports Minister, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), visited Billy Maughan and other farmers at the fantastic Darlington Farmers Auction Mart in my constituency. He saw that farmers in our area and throughout the country are proud to produce food to some of the highest standards in the world.
There is real potential to build on existing markets and develop new ones throughout the world. Farmers are keen to see markets developing, and we have discussed how the Government can help to deliver that vision. A key ask from farmers is getting people on the ground in key markets such as the middle east and parts of Asia to promote what we have to offer in terms of quality, sustainability and traceability. What progress can I tell Billy is being made?
Greg Hands
My hon. Friend has been tireless in his advocacy for his Sedgefield farmers, including Billy Maughan and others. We are helping our farmers and food producers to capitalise on the enormous global demand for top-quality British food and drink. We have staff in more than 100 markets around the world, including in the middle east, Asia and the United States, to ensure maximum access for our brilliant produce. That includes two specialist agricultural attachés in the Gulf region and China and three more attachés to cover the Asia-Pacific and India. Next week, I will be visiting Taiwan, which welcomed UK pork exports for the first time in 2018, following my trade talks with Taiwan in 2016.
Ian Levy (Blyth Valley) (Con)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
The Department is working tirelessly to remove the trade barriers that British businesses face across the world. In the last financial year alone, we have removed 192 barriers across 79 countries. The removal of just 45 of those barriers is estimated to be worth £5 billion to businesses over five years, but we want to do more. Targeting the 100 trade barriers on our most wanted list has the potential to deliver export opportunities worth £20 billion for businesses across the UK.
Ian Levy
I welcome the team to the Front Bench.
On Monday, my right hon. Friend the Secretary of State visited the port of Blyth to see for herself the offshore blade testing facility at the Catapult. As the only deep-water port in Northumberland, the port of Blyth is at the heart of international trade, but if we are to continue to trade competitively on a global scale, we must look at the bureaucracy surrounding export licences. Will the Minister meet me to look at how we can smooth the way to a more efficient trading platform and drive exports around the world?
Nigel Huddleston
My hon. Friend and I have talked about this before. I know that the Secretary of State very much enjoyed her visit earlier this week. My hon. Friend is absolutely right to highlight the great expertise in renewable energy and green technology sectors in the UK. We need to do more to export those fantastic skills. The Government take our export control responsibilities incredibly seriously, because there are some sensitive areas, but I am extremely mindful of the commercial pressures that businesses face and of the need to process export licences as swiftly and reasonably as possible. I would be happy to meet my hon. Friend to understand in more detail the specific issues that he is facing.
Patrick Grady (Glasgow North) (Ind)
Is it not the case that the Tories’ hard Brexit has actually increased trade barriers at a range of levels? Is the Minister aware of the challenges faced by touring musicians based in my constituency who are trying to take their merchandise to Europe? Although it is a massive area in which they can profit from their business, either it is not viable for them to sell, or they have to source the merchandise in the country in which they are touring, which means there is a loss to producers of such merchandise in the UK.
Nigel Huddleston
We do, of course, have an arrangement with the European Union now. I am familiar with the issues that the hon. Gentleman has raised as a result of my time at the Department for Digital, Culture, Media and Sport, but I know that Ministers at that Department and, indeed, the Department for Transport are engaging with individual countries and progress is being made on those issues, most recently with Spain and Greece. As well as benefiting from the overall agreements, we are trying to unlock barriers individually, sector by sector and country by country.
Kate Osamor (Edmonton) (Lab/Co-op)
The Secretary of State for International Trade (Kemi Badenoch)
I am delighted that this week the Department is hosting our second International Trade Week. Trading around the world can be transformative for UK businesses, which is why, with more than 10,000 business registrations for about 123 events delivered by the Department and external partners, International Trade Week is the Department’s biggest single showcase for the global trading opportunities that are open to our businesses. It also marks one year since the launch of our Made in the UK, Sold to the World export strategy. Throughout the week, businesses have been able to make the most of key export strategy initiatives, such as advice from the export support service and expert support from the Export Academy.
Kate Osamor
We recently heard that negotiations to conclude a trade deal with India have stalled because of the comments made by the Home Secretary about migrants from that country—just another mess to lay at her door. Will the Secretary of State tell us whether she will ensure that the Home Secretary’s hardline opposition to migration will not harm our economic relationships?
Kemi Badenoch
It is not true that negotiations with India have stalled, either because of the Home Secretary’s comments or for any other reason. They are ongoing. What has changed is the deadline: as a result of my becoming Secretary of State, we are focusing on the deal and not the day, and that is the most important aspect. The Home Secretary is well within her rights to discuss migration issues, and her comments were not specific to the India trade deal. She has a responsibility for migration, and she is doing her job properly.
James Daly (Bury North) (Con)
The Minister of State, Department for International Trade (Greg Hands)
I welcome my hon. Friend’s interest in trade with Pakistan. When I visited the country—I was the last Trade Minister to do so—I observed the excellent co-operation that was taking place between businesses in the UK and Pakistan. Big investments by UK firms such as GSK in Karachi are key to the delivery of £3 billion-worth of trade. I am pleased to say that we will be formalising this relationship through a new ministerial-led UK-Pakistan trade dialogue, in which we will co-operate further on reducing and removing barriers to trade.
Gareth Thomas (Harrow West) (Lab/Co-op)
In the first half of the year, British food and drink exports to Europe were still 5% below their 2019 level, but imports from Europe were up by 22%. The last Secretary of State would not take any action to reduce the barriers to trading with Europe and, indeed, cut the funding for business groups to back British exporters. After the economic car crash that she and the rest of the Government caused last month, is it not time that this Secretary of State took a different approach?
Kemi Badenoch
I disagree with the hon. Gentleman. We are doing everything we can to support businesses. He will know that 2019 was before the pandemic, so of course we recognise that supply chain issues have had an impact on exports. I have been referring to this throughout today’s questions session. We have an export support service, and plenty of support in place to assist businesses trading across Europe and the rest of the world.
Gareth Thomas
I am sorry that the Secretary of State continues to take such a complacent attitude to trade with Europe. This is not just about food and drink; recent data shows that exports of cars and car parts are still significantly down as a result of the trade barriers, and many hundreds of small businesses which were exporting to Europe, according to His Majesty’s Revenue and Customs, have simply stopped doing so. The Secretary of State’s own colleague, the Under-Secretary of State for Justice, the hon. Member for Finchley and Golders Green (Mike Freer)—a former exports Minister—has said that businesses which want to export are simply not getting enough support to do so.
Given the desperate need for growth following the kamikaze Budget that the Secretary of State backed last month, can she tell the House whether there will be more or less support for British exports after the Chancellor’s fiscal statement?
Kemi Badenoch
It amazes me that, even now, Brexit is still being blamed for everything. It is about time that the Opposition, who call other people complacent, paid attention to what is going on in the world and got off their personal hobby-horses. On car manufacturing, there is an issue with battery supply from the US, as everybody knows. We are doing everything that we can to support companies in getting the parts that they need. The export support service is doing a fantastic job, and I commend the officials who work in it.
Sir Desmond Swayne (New Forest West) (Con)
Kemi Badenoch
Items moving between countries normally attract customs duty and import VAT, but my right hon. Friend will know that the trade and co-operation agreement means that there will be no customs duty on goods moving between Great Britain and the EU if the goods meet rules of origin. Delivery companies may charge their clients handling fees for moving products internationally, but the Government do not have control over those charges, which are a commercial matter.
Joanna Cherry (Edinburgh South West) (SNP)
Greg Hands
The hon. and learned Lady raises the important issue of human rights, but the UK Government engage around the world in defence of human rights, as she will be well aware from all her interactions in this place. The Scottish National party has always opposed EU trade deals, and the deals that she mentions that include human rights clauses were opposed by the Scottish National party in Brussels. It is a bit rich to say that EU trade deals are great but UK ones are not when she has opposed every single EU trade deal.
Andrew Selous (South West Bedfordshire) (Con)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
I thank my hon. Friend for his question, and for everything that he does to support business in South West Bedfordshire. Businesses can access advice and support through the Department’s digital exporting programme, which helps UK businesses to use digital, including e-commerce, as a key route to market. To date, the programme has partnered with more than 50 global marketplaces, including Amazon, in more than 20 countries.
Rachael Maskell (York Central) (Lab/Co-op)
Kemi Badenoch
The hon. Lady raises a very important point about the use of trade sanctions. I agree that there are certain countries on which we need an effective trade sanctions policy. Discussions take place across Government, including with Foreign Office Ministers and at official level, and those will continue. I cannot give her the detail of those discussions, but I assure her that we are looking at the issue very closely.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
This is a very important deal. Earlier this year, we launched negotiations between the United Kingdom and Israel on an upgraded, innovation-focused free trade agreement with services at its heart. The first round of negotiations with Israel were completed in September. An upgraded FTA with Israel will cement our relationship with that rapidly growing economy, and take our trading relationship to the next level.
Jim Shannon (Strangford) (DUP)
As the Minister of State knows, the Northern Ireland protocol poses a massive trade barrier for Northern Irish farming and businesses. The farming industry in Northern Ireland is worth £1.3 billion, so what discussions have been undertaken with the Secretary of State for Northern Ireland on smooth and frictionless trade for Northern Ireland’s farmers?
Greg Hands
We know the importance of the agriculture sector to Northern Ireland. We have frequent engagements with, for example, the Ulster Farmers Union, and I was delighted to attend the Irish Whiskey Association reception here in the House of Commons just last week. Obviously, we do not lead on the Northern Ireland protocol, but we make sure the interests of Northern Irish exporters are represented in all our discussions with the Foreign, Commonwealth and Development Office.
Kit Malthouse (North West Hampshire) (Con)
I join my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) in celebrating the opening up of the American market to UK lamb, not least as much of the lamb slaughtered in his constituency is brought to my constituency to be prepared for export by Randall Parker Foods.
The Minister of State will know that the UK is now the world’s third largest exporter of lamb and mutton meat but, when he talked about CPTPP earlier, he did not mention the lamb industry. He talked a lot about data and services. Will he reassure the House that, when he undertakes that particularly important negotiation, the interests of British food and farming, and most particularly of the British lamb industry, will be at the forefront of his thoughts?
Greg Hands
I welcome my right hon. Friend’s interest, and he rightly represents the key agricultural interests in his Hampshire constituency. CPTPP removes tariffs from 99.9% of British goods. We frequently say in this House that Australia and New Zealand are principally motivated by fast-growing markets in Asia when selling their agricultural produce. This country wants a piece of that action. Our ability to sell British lamb into the far east will be key for us, and DIT is engaging on that through CPTPP.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
What recent assessment have Ministers made of the trends in services trade with the EU? What steps are the Government taking to increase that trade?
Kemi Badenoch
There are ongoing discussions about what we can do for services trade. Last month, I met my Dutch counterpart who brought over a trade delegation. We are working with countries individually on everything we can do to improve trade, not just on our services exports but on their exports, too, because they continue to want to sell to the UK.
Wendy Morton (Aldridge-Brownhills) (Con)
Yesterday was Back British Farming Day, and many of us in this place joined the NFU in showing our support for the fantastic British farmers across the country, including in my Aldridge-Brownhills constituency, where we still have a small number of farmers. What more can we do to support our farmers, beyond the fantastic work on lamb in this trade deal?
Kemi Badenoch
I was at the NFU’s dairy export summit yesterday as part of my activities for International Trade Week and Back British Farming Day. My right hon. Friend will be pleased to know that this country’s dairy exports are increasing. I spoke to many businesses at the summit and they want information on exporting. There is a huge gap in knowledge on how to export, and that is one of the areas on which we want to provide additional information to support farmers.
Patrick Grady (Glasgow North) (Ind)
I regularly hear from constituents in Glasgow North who are concerned that the Tories’ desperation for trade deals will lead to a race to the bottom on food standards. Can Ministers guarantee that there will be no chlorine-washed chicken or hormone-fed beef on supermarket shelves in Glasgow North as a result of Tory trade deals?
Greg Hands
I first joined DIT six and a half years ago, and I cannot remember how many times I have had to say from this Dispatch Box that nothing in any free trade agreement alters or reduces UK food and animal welfare standards—that is absolute. The hon. Gentleman talks about our desperation for trade deals, but I would like to see the Scottish National party break the habit of a lifetime and support a trade deal, negotiated by either Brussels or the UK. It is about time he broke his duck and supported one of them.
Greg Smith (Buckingham) (Con)
We heard earlier about our great success in opening up new beef and lamb markets around the world. Earlier this year the Government backed a strategy launched by the NFU to increase agricultural exports by 30% through a 10-point plan. Will the Secretary of State confirm that the Government will continue to work with the NFU to land that 10-point plan to grow British agricultural exports?
Kemi Badenoch
Yes, I am very happy to continue working with the NFU. We, of course, have our own 12-point export strategy plan; I am sure that there is a lot of overlap between the two, but we are all trying to get to the same place, and I am happy to reassure my hon. Friend on that.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) listed the litany of issues with the Government’s approach to trade deals. I mentioned Saxo bank’s assessment of the UK as an “emerging market country”, and with a US trade official describing UK trade policy as a disaster, why does the Secretary of State think the standing of the UK has fallen so far in the eyes of the world?
Andrew Bowie
It is simply untrue that the standing of the UK has fallen anywhere close to where the hon. Gentleman says it has. We are committed to doing trade deals; in fact, this Government have done a record amount of them and are continuing to negotiate, not least on the CPTPP and with others to increase British trade around the world. It would be great if he would come on board and start talking Britain up, instead of talking it down.
Mr Peter Bone (Wellingborough) (Con)
During this hour of International Trade questions, we have had participation from SNP Members, independent Members, Democratic Unionist party Members and Liberal Democrats, but the official Opposition, for most of the period, have had two Back Benchers here. Does the Secretary of State agree that that must mean that the official Opposition approve of what we are doing so much—
Mr Speaker
Order. Mr Bone, that is the most irrelevant question I have heard in a set of questions. This is not like you; I thought your question would be at least on farming—whatever you want it to be.
Mr Speaker
Excellent, that completes questions. Thank you for that contribution—not!