UK-EU Trade: Small and Medium-sized Enterprises

Baroness Quin Excerpts

Wednesday 31st January 2024 Lords Chamber

Asked by

[Baroness Quin]

To ask His Majesty’s Government what plans they have, if any, to meet representatives of small and medium-sized enterprises to discuss non-tariff barriers to trade between the United Kingdom and European Union.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

I thank the noble Baroness for her Question. We engage extensively with representatives of small and medium-sized enterprises and trade associations across the UK. This includes engagement that I and my fellow Ministers undertake. As Minister for Small Business, Minister Hollinrake routinely meets these representatives and business leaders. As Minister for Exports, I spend a lot of effort meeting SME exporters. We are leading a whole-government effort to break down barriers, including non-tariff barriers with our partners in the EU and across the world.

[Baroness Quin (Lab)]

When the former Prime Minister, Boris Johnson, announced his trade deal with the EU in 2020, he said there would be no non-tariff barriers to trade between us and the EU. That claim has turned out to be spectacularly false, given the extra bureaucracy and costs that many businesses, particularly small businesses, are facing as a result of that deal. As we know, these burdens are due to get worse, not better, in the coming months. Given that in a supplementary question I cannot list all the businesses that I know have been badly impacted, I ask the Minister whether, if I send the details of those firms, his department will look at these things urgently and see in what ways the burdens can be reduced or removed.

[Lord Offord of Garvel (Con)]

I thank the noble Baroness. There is no question that there has been friction in our trade, especially with the EU 27. We have tariff-free trade; a lot of the friction is not of our doing, but we must deal with it.

UK-Canada Trade Deal: Suspension of Negotiations

Baroness Quin Excerpts

Tuesday 30th January 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. That is one of the reasons why we split up BEIS and put it into different, independent departments. However, my department, the Department for Business and Trade, is now well equipped to lead these negotiations. As I say, we have done the 65 country rollovers; we are now up to 73 countries and we have another 12 in the pipeline. We have a chief negotiator, Crawford Faulkner, who came in from New Zealand— I declare an interest in that he was born in Greenock, around the corner from me—who is doing an excellent job. The issue here is that our economy is now 80% services and 20% goods, but our exports are 50:50, which is because our goods are good. They go around the world and everyone wants to buy them. However, the direction of travel will be two-thirds services, one- third goods, which is why we need new trade agreements that cover services—not just goods—digital and innovation. That is exactly what we have with Australia, and that is what we are trying to achieve with Canada. I am hopeful that we will be able to get the show back on the road with Canada.

[Baroness Quin (Lab)]

My Lords, following the comments made by the noble Lord, Lord Purvis, will the Minister at least assure us that trade with our nearest and biggest market is still important to us? Will he perhaps also reflect on some of the problems of trading with countries very far away, both in terms of environmental impact and of course recently in terms of the very worrying security situation in the Red Sea?

[Lord Offord of Garvel (Con)]

I thank the noble Baroness for that. Indeed, the EU 27 still account for 40% or 41% of our exports. If you expand that to the euro 34, it is 49% of our exports. So 50% of our trade is still with Europe, 20% is with America and 30% is with the rest of the world. But the direction of travel is that the growth will come from the rest of the world, not just in Europe. Europe will remain important. In terms of our goods, the sticky part of our pie chart has been our manufactured goods to Europe, which is 24%. That has been difficult—but the other 76% is going gangbusters.