Oral Answers to Questions
(2 years ago)
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David Duguid (Banff and Buchan) (Con)
Wendy Morton (Aldridge-Brownhills) (Con)
Selaine Saxby (North Devon) (Con)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
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.
David Duguid
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?
Andrew Bowie
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.
Wendy Morton
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?
Andrew Bowie
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.
Selaine Saxby
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?
Andrew Bowie
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.
Angus Brendan MacNeil (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?
Andrew Bowie
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%.
Dan Jarvis (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?
Andrew Bowie
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.
Jamie Stone (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?
Andrew Bowie
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.
Gareth Thomas (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?
Andrew Bowie
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.
Richard Thomson (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?
Andrew Bowie
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.
Richard Thomson
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?
Andrew Bowie
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.
Sir Desmond Swayne (New Forest West) (Con)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
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.
Sir Desmond Swayne
Has the Minister a programme of support for fintech and start-ups in that sector?
Nigel Huddleston
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.
Clive Efford (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?
Nigel Huddleston
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.
Charlotte Nichols (Warrington North) (Lab)
The Minister for Trade Policy (Greg Hands)
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.
Charlotte Nichols
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?
Greg Hands
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.
Tom Randall (Gedling) (Con)
The Secretary of State for International Trade (Kemi Badenoch)
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.
Tom Randall
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?
Kemi Badenoch
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.
Mark Garnier (Wyre Forest) (Con)
Scott Benton (Blackpool South) (Con)
Sir Robert Syms (Poole) (Con)
Mark Pawsey (Rugby) (Con)
The Minister for Trade Policy (Greg Hands)
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.
Mark Garnier
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?
Greg Hands
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.
Scott Benton
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?
Greg Hands
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.
Sir Robert Syms
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?
Greg Hands
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.
Mark Pawsey
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?
Greg Hands
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.
Chris Bryant (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?
Greg Hands
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 (Nick Thomas-Symonds) 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.
Drew Hendry (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?
Greg Hands
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.
Greg Hands
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.
Jim Shannon (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?
Greg Hands
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.
Ruth Cadbury (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?
Greg Hands
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.
Mohammad Yasin (Bedford) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
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.
Mohammad Yasin
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?
Andrew Bowie
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.
Philip Dunne (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?
Andrew Bowie
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 Nia Griffith (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?
Andrew Bowie
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.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Minister for Trade Policy (Greg Hands)
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.
Gavin Newlands
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?
Greg Hands
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%.
Jo Gideon (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?
Greg Hands
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.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
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.
Gerald Jones
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 (George Eustice), 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?
Nigel Huddleston
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.
Gareth Thomas (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?
Nigel Huddleston
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.
Liz Twist (Blaydon) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
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.
Liz Twist
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?
Nigel Huddleston
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.
Gareth Bacon (Orpington) (Con)
The Secretary of State for International Trade (Kemi Badenoch)
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.
Gareth Bacon
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?
Kemi Badenoch
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.
Nick Thomas-Symonds (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 (Ruth Cadbury) 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 (George Eustice). Quite simply, why should anyone have confidence in the Conservatives’ trade policy when they do not have confidence in it themselves?
Kemi Badenoch
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.
Nick Thomas-Symonds
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?
Kemi Badenoch
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.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
Kemi Badenoch
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 (Andrew Bowie)—will be happy to meet him to further discuss what we can do.
Chi Onwurah (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 (Greg Hands)
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.
Chris Green (Bolton West) (Con)
Greg Hands
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.
Wayne David (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 (Nigel Huddleston)
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.
Martin Vickers (Cleethorpes) (Con)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
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.
Gavin Newlands (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?
Andrew Bowie
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.
Giles Watling (Clacton) (Con)
Greg Hands
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.
Jim Shannon (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?
Kemi Badenoch
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.
Peter Aldous (Waveney) (Con)
Andrew Bowie
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.
Greg Smith (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?
Kemi Badenoch
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 James Duddridge (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?
Kemi Badenoch
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.
Robert Courts (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?
Greg Hands
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.
Richard Graham (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?
Kemi Badenoch
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.
Stephen Crabb (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?
Greg Hands
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 (Andrew Bowie)—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.