The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
I thank the hon. Member for Bristol North West (Darren Jones) for securing this important debate. I too was on the Select Committee with my hon. Friend the Member for North East Bedfordshire (Richard Fuller) and the right hon. Member for Hayes and Harlington, so this feels like a Tuesday morning love-in all over again.
To continue that love-in, I must say that many points that the Select Committee chair made were valid, although unfortunately others were somewhat completely off the mark. As always, I will defer to my hon. Friend the Member for North East Bedfordshire; we played a good tag team on the Select Committee, so it is fantastic to have him here in the Chamber. I thank all colleagues from across the House for their valuable contributions and I will do my very best to reference all of the very important questions that they raised.
Andy McDonald
I am grateful for the praise; I just want to point out that I am the Member of Parliament for Middlesbrough—my right hon. Friend the Member for Hayes and Harlington (John McDonnell) is a different guy altogether.
Ms Ghani
Goodness—I am no longer on the Christmas card list, so things are already going downhill. You have made it clear, Madam Deputy Speaker, that I do not have as much time to speak as I thought I had, so I will do my best to refer to all the contributions.
First, to the Chair of the Select Committee, you were such an optimist when I was on the Select Committee, but there has been nothing but negativity today. You touched on UK investment—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I think you meant “the hon. Gentleman”.
Ms Ghani
Forgive me, Madam Deputy Speaker.
We are one of the leading countries for start-up capital outside the United States. Most recently, we attracted £20 billion into technology, twice as much as France and Germany. The hon. Member for Bristol North West talked about our economy; the recent PwC report said that the UK is the fastest-growing G7 economy up to 2050, which means that our economic growth will outpace that of Germany, France and Italy combined. He talked about the OBR, which has revised its figures and is no longer forecasting our falling into a recession in 2023. I just wanted to ensure that he did not spend his weekend being utterly depressed, but instead looked at some of the stats out there that will perk him up.
I am grateful for the opportunity to respond to the debate, because it is important to understand the link between trade and geopolitics. As the hon. Gentleman mentioned, it is a fast-changing world out there and geopolitics is a challenge awaiting everyone, not just us here in the UK. It is only right that we ask ourselves what kind of country we want the UK to become. What part should we play in helping to shape the world of tomorrow? Should we be an outward-looking, truly global, free-trading nation that flies the flag for progress and stands up against the rise of authoritarianism and protectionism worldwide, or a country that battens down the hatches and shields itself from change?
I know what kind of nation the Prime Minister and I and the rest of this Government want the UK to be. We want to strengthen our country’s role as a global champion of freedom, democracy and the rule of law, driven by free trade and free enterprise. Considering the contributions we have heard, I think we all agree that trade is the most powerful force for progress we have at our disposal.
Only trade can create jobs, drive growth and deliver the long-term prosperity that communities across the UK and around the world need to flourish. Only trade has the power to lift millions more people out of poverty in developing nations, helping to build a more secure and prosperous future for us all. Only trade can drive forward co-operation in the battle against climate change, by building networks of green innovation worldwide.
Only trade can strengthen our critical supply chains, as discussed earlier, as we adapt to the energy security challenges unleashed by Putin’s barbaric illegal invasion of Ukraine. We have shown that by joining forces with our partners to cut the Kremlin’s oil revenues, removing tariffs on Ukrainian goods, signing a digital trade agreement with Kyiv and mobilising British businesses to play a leading role in rebuilding the Ukrainian economy—a task that we will drive forward with our partners when we host the second Ukrainian recovery conference in June.
The global challenges were covered in many speeches in this debate. That is why trade is forged at the heart of our economic security and defence policy as we adapt to the challenges of a competitive and multipolar world, just as we outlined in our refreshed integrated review, and why we are using our post-Brexit freedoms to position the United Kingdom at the centre of a network of free trade agreements that span the globe.
We are making it easier and cheaper for British firms in our constituencies, including smaller businesses, to trade and invest overseas by tackling tariffs and opening markets. We are helping them to unlock the fantastic potential of those deals through the work of our network of trained specialists, based here in the UK and worldwide, who provide the advice and guidance that firms need to do business overseas, from offering specialist market and sector intelligence to connecting British firms to export our investment opportunities on the ground, while flying the flag for the best of British business through the promotional work and other trade activities our teams are doing globally.
We have signed trade deals worth more than £850 billion with more than 70 nations so far, including some of the world’s most diverse and dynamic economies such as Japan and Australia. We are working at both state and federal level to strengthen our economic ties with the United States, our biggest bilateral trade partner, bringing down barriers to business through the memorandums of understanding we have agreed with North Carolina, South Carolina, Indiana and Oklahoma—the International Trade Minister, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), has just got off a flight from Oklahoma—with discussions ongoing with other states
We are also making progress in negotiating an FTA with India, although it is always about getting the right deal, not about rushing ahead. That FTA would boost our trade with the world’s biggest democracy by as much as £36 billion.
Let me shift to the Indo-Pacific, which was touched on by many Members, including my hon. Friend the Member for North East Bedfordshire. A key plank of our policy is to strengthen Britain’s trade ties with markets across the Indo-Pacific as the global economic centre of gravity shifts eastward. China’s increasing assertiveness in the region is set to become one of the most significant geopolitical and geo-economic shifts over the next decade, so our response will define our relationship with the world that is emerging.
The hon. Member for Bath (Wera Hobhouse) in particular mentioned China and Taiwan. In trade talks back in 2021, we agreed to deepen and broaden our trading relationship. In the last talks—held in Taiwan in November 2022, with the previous Trade Minister—the UK progressed market access ambitions in a range of sectors, including energy and offshore wind power, financial services, pharmaceuticals, agriculture, and, of course, food and drink. It gives me great pleasure to reassure the hon. Lady, the House and the good people of Taiwan that there is no change in the UK’s position, as stated at the G7 Foreign Ministers meeting a few days ago. I also note that President Macron has emphasised that position since making his initial comments. The UK remains resolutely against any unilateral change to the status quo, and we agree with our partners that Taiwan’s meaningful participation to international bodies should be possible. Of course, we are obviously aware of attempts to redefine the status quo, but we are fundamentally focused on ensuring that we de-escalate any tensions in the region.
There has been a lot of discussion about CPTPP, which is pivotal to the growth of our economy and will provide access to international markets for all the fantastic businesses in our constituencies. There has been so much doom and gloom in the debate, but it is worth remembering that we have access to markets in Europe and the CPTPP—the only country in the world to have that access. Our membership of the CPTPP was successfully secured by the Secretary of State just last month, and the deal is a game-changer for our country, placing the UK at the centre of a free trade zone of 500 million people, spanning Asia and the Americas, with a combined GDP of £9 trillion. We are the first European country to join the CPTPP, showing what we can achieve as an independent global trading nation. It also shows how we are valued internationally. There is a lot of doom and gloom about how the UK is branded and whether it is respected overseas, but I think this shows our value and what we have to offer.
CPTPP enables us to be a part of a major geopolitical scene. Of course, tilting towards the Indo-Pacific supports jobs and creates new export opportunities for businesses in every part of the United Kingdom. We have signed an additional agreement with Singapore, and a digital innovation partnership with 10 members of the Association of Southeast Asian Nations, strengthening our growing network of prosperity across the region. Those deals are underpinned by our expanding commitment to security in the Pacific, led by the AUKUS defence and security pact that we signed with the US and Australia last year. Without secure trade routes and supply chains, commerce cannot flourish and nations cannot prosper.
There has been a lot of conversation about supply chains. The war in Ukraine has starkly exposed the vulnerability of global supply chains over the past year —particularly energy security—so we are pulling out the stops to identify alternative sources for the critical goods that our economy needs to flourish while boosting our energy independence at home. The integrated review included the critical minerals refresh, which I was pleased to put together. Just this morning, the critical minerals taskforce—a collaboration with industry—met for the first time. I take this opportunity to recognise the work of Katherine Bennett, the taskforce chair. This shows how we are working not only with industry, but internationally, to ensure that UK manufacturers have access to the critical minerals and goods that they need in their supply chains.
As we move towards cleaner, more affordable sources for power, Britain is once again leading the charge and we have a head-start on our global competitors. More than 40% of our energy came from renewable sources last year, and we are ramping up our investment in the sector, directing record sums into new projects, research and innovation. We know that the US Inflation Reduction Act is a significant intervention in the global race for green energy, and we are not attempting to enter any kind of distortive subsidy race with our greatest ally—as my hon. Friend the Member for North East Bedfordshire said, we need to make sure that we always get good value for taxpayers’ money—but although that drive to net zero in the United States should be welcomed, it is, of course, incredibly disruptive. One cannot throw a stone into the water and not expect any ripples, and IRA is a massive stone that has caused ripples worldwide, particularly in Europe. It is incredibly important that we stick to our net zero ambitions and ensure that we have resilience in our supply chains.
We are trying to do everything that we can to ensure that businesses in the UK have a competitive advantage while leveraging billions more in private capital to drive growth—and not just in green energy. We want to grow our nuclear energy capacity, too, through the development of small modular reactors, while investing in our key growth industries—from advanced manufacturing to life sciences and artificial intelligence—forging a British economy that is fit to face the challenges of a fast-changing world. [Interruption.] I am being rushed along, so I will briefly respond to some of the points raised by hon. Members.
My hon. Friend the Member for North East Bedfordshire talked about the Office for Investment. We now have a joint Department—BEIS and DIT have become the Department for Business and Trade—with far more focus. An event in October will focus on global investment into the UK. We are focusing our resources and ensuring that we are reaching out.
The hon. Member for Bath spoke about CPTPP and Taiwan. It is not for us to talk about the accession of other countries, but is it not fantastic that we are at the table to ensure that our voices are heard?
There was also conversation about Liverpool and Mexico—[Interruption.] I am going as fast as I can, Madam Deputy Speaker. I am grateful to the hon. Member for Liverpool, Walton (Dan Carden) for his speech, which was positive about the work that we are doing in Mexico. He talked about the education strategy and the desire to promote exports, especially in education. I can confirm that we are most definitely doing that. If that work continues to be as positive as it is, I am sure that we would work with him to ensure that it is progressed.
The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) spoke about Kashmir. Those issues are fundamentally for the Foreign Office. These conversations often take place behind closed doors, but I do not doubt that her comments are on the record and will be reflected in other Departments, as necessary.
With a new chapter in global history being opened, we must have the courage to stand up for our convictions that only free trade and open markets hold the key to prosperity. It is clear that we are living in dangerous times. Autocracies are emboldened and behaving in a way that many of us have not seen in our lifetimes. The UK stands at the crossroads of the geopolitical stand-off between the international rules-based system as we know it and the system that autocratic leaders would like it to become. Trade and investment are at the very heart of that crossroads. Securing UK prosperity while protecting our way of life must be at the core of our trading strategy. We must work with our partners and allies to forge a freer, fairer future for the global economy, standing up to protectionism and economic coercion wherever we find it, delivering for people across the UK by growing British exports until we achieve our ambition of trading £1 trillion-worth of goods and services by 2030—we have a few years to go before we hit that target —and making our economy the undisputed top investment destination in Europe, so that millions of people across the UK and around the world can be set free to realise their economic potential and enjoy the benefits that only free, fair and sustainable trade and investment can bring.
I do not want to cause you any more upset, Madam Deputy Speaker, so I will finish by saying that I was at the Dispatch Box 30 days ago on the first day of Ramadan. Tonight we may see a full moon and tomorrow may be Eid, so I wish you and the House—especially the staff in the Tea Room—Eid Mubarak. I wish in particular for a full moon tonight so that I and my two brothers, Nasim and Rasalat, who are watching, can celebrate Eid tomorrow.