Oral Answers to Questions
Greg Hands Excerpts(2 years ago)
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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 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)
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)
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?
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?
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?
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.
Australia and New Zealand Trade Deals
Greg Hands Excerpts(2 years, 1 month ago)
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The Minister for Trade Policy (Greg Hands)
I beg to move,
That this House has considered the Australia and New Zealand Trade deals.
The Australia and New Zealand free trade agreements are deals that will deliver for people, businesses and our economy. These are our first “from scratch” free trade agreements since we left the European Union, and they are deals of which this country can be proud. They demonstrate our ambition as an independent trading nation. They secure commitments that, in places, go above and beyond international best practice, and put us at the forefront of international trade policy.
I was here in June 2018 when we were finalising the call for input, and I was here again as the Minister in June 2020 when the negotiations were launched. It is great to be back at the Department to see the deal having been done, and I look forward to many similar deals as the Minister responsible for trade policy. I am delighted that the Leader of the House, who was recently in this role, was sitting next to me earlier and discussing the important part played by both herself and the present Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), over the past year. I should also pay tribute to my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), formerly the Prime Minister, and the International Trade Secretary throughout a large part of this process.
We negotiated these ambitious deals with like-minded partners apace but with diligence, going further and faster than, for example, the European Union has been able to. The EU has yet to get a deal with Australia over the line, and only recently concluded talks with New Zealand, after four years. The deals represent a deepening of our relationship with close allies, fellow members of the Five Eyes intelligence partnership and like-minded democracies which share our beliefs in fairness, free enterprise, high standards and the rule of law.
Last year, our bilateral trading relationship with Australia was worth £14.4 billion, and exports to Australia supported more than 100,000 UK jobs in 2016. Exports to New Zealand supported more than 16,000 UK jobs in that year. These deals will strengthen those links, supporting increased volumes of trade, jobs and wages and bringing more choice for the UK consumer.
Hilary Benn (Leeds Central) (Lab)
The Minister will be aware that the Australia deal in particular has created quite a lot of concern among Britain’s farmers. For example, Jilly Greed of the Suckler Beef Producers Association has said:
“This is an absolute betrayal…this is Christmas all over for Australia”.
The former chief economist of the National Farmers Union has said:
“Agriculture will bear a disproportionate cost. So desperate are the Government to do deals, they are preparing to slim down agriculture”.
How would the Minister respond to those allegations?
Greg Hands
I am delighted to respond, because I have had extensive interaction with all the five nations’ NFUs during this process. We have delivered a deal that phases in the changes. The right hon. Gentleman might reference the fact that the trade deal we have with the European Union, which he supported, gives the EU comprehensive access from day one. This deal phases in access for Australia and New Zealand for a period of up to 15, and in some cases 20, years. I think that is worth consideration, as is the extensive interaction we have had with the NFU and with farmers. I have met MPs and their constituency farmers at some length and we will continue to interact with the NFU and the NFUs in all the nations to ensure that we are in full listening mode when it comes to Britain’s essential farming community.
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
Further to the intervention from the right hon. Member for Leeds Central (Hilary Benn), I have here a copy of “Y Tir”, the monthly publication of the Farmers Union of Wales, which states:
“There will always be winners and losers when it comes to negotiating liberalised free trade agreements, and it is clear from the UK Government’s impact assessments that UK agriculture will be one of the losers if these deals are ratified”.
Does the Minister acknowledge the widespread concern among our agricultural communities that the British Government are selling them down the river?
Greg Hands
I disagree with that. I am just checking my records and I have had extensive interactions with representatives of NFU Cymru during the negotiation process. I met them on 19 May 2021—I met the Farmers Union of Wales on 19 May as well—and on 26 May, 16 June and 13 September. It was important for us to get the confidence of the farming community in Wales and I also did various Zoom calls at the time—this was during one of the lockdowns—with MPs and their constituent farmers. The protections we have in the deal are very considerable. For example, the tariff rate quotas carry on for 10 years in some cases, and there are product-specific measures to protect sensitive agriculture produce from years 10 to 15 as well as bilateral safeguard mechanisms. There are a lot of protections there.
Greg Hands
I will give way in just a moment, but perhaps the hon. Gentleman will explain what his position might be and whether his party will ever support a single trade deal that has been proposed either by the European Union or by the UK Government. Will he tell us that?
Ben Lake
It is not often that I get the opportunity to do so, and I am happy to say that when there is a good trade deal for Welsh farmers, I will be very happy to support it. Further to the Minister’s point about NFU Cymru, that union and the Farmers Union of Wales have both expressed concerns about the cumulative impact of the various trade deals. Has that featured in any assessments the Department has made, and if so, can he share with us what he makes of Welsh farmers’ concerns about this cumulative impact?
Greg Hands
I welcome the hon. Gentleman’s support for trade deals and I look forward to him voting for one of them one day. In terms of the impact on Welsh farmers, I must point out some of the market access that we have recently gained—for example, Welsh lamb is now able to enter the US market for the first time in many decades due to the United States removing the small ruminants rule, and I was in Taiwan only last week are trying to negotiate access for Welsh lamb to the Taiwan market. When it comes to accumulation, he ought to think about the fact that there is tariff-free, quota-free access for the European Union for the UK at the moment. That has been the case from day one of the trade and co-operation agreement.
John Spellar (Warley) (Lab)
Surely one of the points we ought to be considering is the fact that about a third of the beef consumed in the UK is already imported. Some of it is imported from Brazil, where there are concerns about deforestation, and a big amount is imported from the EU, primarily from Ireland. We might not see fresh competition from Australian beef, but import substitution might be part of the equation.
Greg Hands
The right hon. Gentleman makes a strong point. We are all in favour of competition, and of consumers being able to make their choice, but I would add that meat exports from Australia and New Zealand are much more likely to go to the far eastern markets. A big percentage of the exports from Australia and New Zealand currently go to those far eastern markets that, frankly, we would like to access by joining the CPTPP trade agreement. We want to have a piece of that action. He is right that it is more likely that exports from Australia and New Zealand will displace those from the EU, giving choice to consumers.
These are more than just deals with like-minded and long-standing partners; they are part of the UK’s new strategic approach.
Sir Paul Beresford (Mole Valley) (Con)
Before we entered the common market, the Australia-New Zealand agricultural juggernaut centred on this country for its trade. As my right hon. Friend said, that trade is now going to 100 or more countries, so it has spread. Our farmers survived and did not complain before the common market, and that will continue.
Greg Hands
My hon. Friend is an expert on the connections between the United Kingdom and the continent of Australasia. He makes a good point about restoring trading connections that existed prior to this country’s membership of the European Union. We should treat these two trade deals as an opportunity not a threat, which is a point he makes well.
These deals are a key part of our Indo-Pacific tilt. The Indo-Pacific region matters to the UK, as it is critical to our economy, our security and our global ambition to support open societies. Rapid economic growth in the Indo-Pacific region is shifting the world’s centre of economic gravity eastwards. In the first two decades of this century, the Indo-Pacific region accounted for 50% of global economic growth in real terms; by 2050 that is expected to be 56%. The Indo-Pacific is home to half the world’s people, and there are significant economic opportunities for the UK in trading with the region. These deals are just the start.
These two agreements are a significant step towards our accession to the CPTPP, membership of which will further open up 11 Pacific markets across four continents worth £9 trillion of GDP in 2021. Joining the CPTPP will put the UK at the heart of a dynamic group of growing nations. We negotiate deals that are tailored to the UK’s strengths, such as our world-class service industries that employ 82% of our workforce and account for 80% of our economy. These deals will unlock new markets, create jobs and drive the growth that the UK, like many other countries, needs right now. They will provide real outcomes for real businesses.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
What does the Minister make of the International Trade Committee’s finding that more export opportunities and greater safeguards for the food industry could have been negotiated? How are the Government implementing the lessons learned for future deals?
Greg Hands
I thank the International Trade Committee for its various reports on both deals, and I look forward to engaging with its Chair, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), and indeed the whole Committee.
It can be said of any negotiated deal that something might have been better, as that is an inevitable consequence of negotiation. There is a bit of give and take. The safeguards for UK agriculture build in a very considerable length of time, of 15 or, in some cases, 20 years, for people to adjust. I contrast that with the European Union deal—the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) voted to have no deal with the European Union—which gave instant access.
Today, I will explain to the House how these important deals will help firms in every part of the country to flourish and grow. First, these agreements will remove 100% of tariffs on all goods, most of which will come into effect as soon as the agreements are in force—that is particularly with reference to UK exports. They will reduce red tape on British goods sold to Australian and New Zealand markets, making our exports even more competitive. Our automotive sector is among the many UK industries that will reap the rewards. For example, McLaren says that these tariff reductions
“will support and facilitate customer and network growth across Australia in the coming years.”
Nissan says that removing the 5% duty on car exports will help further exports to Australian customers of the Leaf, Qashqai and Juke cars it makes at its Sunderland plant. The removal of tariffs of up to 10% on car parts and on some vehicles sold to New Zealand is good news for other vehicle manufacturers across the UK.
A range of other industries will also benefit. For example, Nairn’s, the Edinburgh-based oatcake manufacturer, says savings from removing 5% tariffs under our New Zealand deal will help offset the increased costs that have affected businesses following covid-19 and Russia’s invasion of Ukraine. The Food and Drink Federation believes the removal of a range of tariffs will help to give UK businesses significant growth opportunities and make them more competitive in the New Zealand market.
UK investors will benefit from more access than ever before to opportunities in Australia and New Zealand, with guaranteed rights to invest across the economy. We are maximising opportunities for British companies to invest and grow their businesses in Australia. It will be easier for UK businesses to expand into both Australia and New Zealand, because we have increased the screening thresholds in both deals, meaning that fewer UK investments will be subject to review.
We also secured outcomes that encourage further inward investment into the nations and regions across the UK. In 2020, the UK was the second most popular destination for Australian foreign direct investment, and Australia is a big global investor. In 2019, there were more than 2,000 Australian-owned local business units in the UK, employing more than 71,000 people, and in 2020 we were the fourth largest destination for foreign direct investment from New Zealand.
Our Australia and New Zealand trade deals will also give our service industries a competitive edge on data and digital. Some 80% of our economy is in services. Scotland’s financial services industry and engineering services firms in the west midlands will benefit, and new opportunities will be provided for Welsh fintech firms in Cardiff. Our Australia deal allows professionals in areas such as engineering, accountancy and architecture to get visas to work. The law firm Herbert Smith Freehills says that these measures will make it easier for its staff to work across the UK and Australia. We also have access to the £10 billion Government procurement market in Australia, putting our firms on an equal footing with Australian firms. Just last month, I visited Informed Solutions, which is headquartered in Altrincham, and its management told me how much they were looking forward to the ratification of the upcoming free trade agreements to assist their business as well.
We have world-leading digital chapters, opportunities in cyber-security trade and so on. We also have a small and medium-sized enterprises chapter, which is very important for helping these companies navigate a free trade agreement. My Department is working hard at spelling out our many advantages, to businesses large and small. The national chairman of the Federation of Small Businesses, Mike Cherry, has said that our trade deal with Australia was great news for many of its members, as the small business chapter will ensure that the needs of smaller businesses are fully catered for in the years to come. My right hon. Friend the Secretary of State for International Trade often likens trade agreements to new motorways: they are at their most useful when they are well used by cars. That is why my team is meeting companies around the country to explain how they can make full use of our deals. Of course, businesses that want to trade with Australia and New Zealand and need more personalised help can turn to our network of trade advisers.
I have reflected on the many economic advantages offered by our free trade agreements, but these deals are not just about commerce. They are also about creating deeper international partnerships that will benefit both our citizens and the wider world, as well as our wider strategic objectives.
Stephen Kinnock (Aberavon) (Lab)
We are discussing making sure that these deals are about not just economic benefits, but the social partnership and ensuring that workers’ hard-won rights are not undermined by doing a trade deal that could lead to a race to the bottom. Will the Minister explain therefore why the deals do not contain any commitment to the International Labour Organisation core conventions?
Greg Hands
I thank the hon. Member for his intervention. I know that he takes a strong, keen and constant interest in these issues. Let me say to him that the UK’s commitment to human rights, workers’ rights and various social justices are not always best pursued through trade agreements; we do pursue them bilaterally as well. I do not believe that there are any widespread concerns in relation to Australia and New Zealand, but I am happy for him to write to me if he has concerns about workers’ rights in those two countries. However, it is not obvious to me how a trade deal will necessarily be the best way to pursue those objectives in any case.
Together our nations can use trade to address contemporary challenges such as economic degradation, health pandemics and threats to global security. Both of these deals support that endeavour, including the provisions that uphold high standards and foster co-operation on shared challenges. With world-leading chapters on trade and gender equality, the deals demonstrate our commitment to break down barriers that exist for women in trade, whether as workers, business owners or entrepreneurs.
The UK-Australia agreement contains an innovation chapter, which is the first of its kind in any FTA between two partners in the world. This will ensure that our trading relationship remains at the forefront of emerging technologies. I might just add that the Confederation of British Industry said that our deal with New Zealand puts us at the fore of the green trade revolution and showcases to the world that trade and climate change can go hand in hand.
Tony Lloyd (Rochdale) (Lab)
The Minister talked earlier about allowing the British public the chance to purchase in a competitive environment, but competition requires information. If there is no adequate chapter in the Australia agreement about environmental standards and the use of coal, for example, can he tell the House how it is possible for an educated consumer to buy in the way that he suggests?
Greg Hands
The hon. Member raises a very good point. The UK-Australia deal is the first Australia trade deal that has a dedicated chapter on the environment. I recommend that he looks at the deal to see what it does for the environment, which is something we take very seriously indeed. We did it in the run-up to COP, so it is very topical as well.
Greg Hands
I will not give way, as I am about to finish.
The country’s departure from the European Union opened up new possibilities for us to enhance our relationships with the rest of the world. Our deals with Australia and New Zealand show that we are seizing this opportunity. These deals can increase annual trade between the UK and Australia and the UK and New Zealand by £12.1 billion.
I look forward to hearing the contributions from the official Opposition, who I think abstained on Second Reading of the Trade (Australia and New Zealand) Bill, and also from the Liberal Democrats and the SNP, which I think opposed the Bill on Second Reading.
Greg Hands
Perhaps the former leader of the Liberal Democrats can explain why he was so opposed to the deal.
Tim Farron
I am extremely grateful to the Minister for giving way to me, however he chooses to do so. We are very strongly in favour of free trade, but we also believe that free trade has to be fair. Let me take him back to his earlier comments about the strategic value of this. Does he understand that trade deals must have strategic value when it comes to protecting our ability to feed ourselves as a country? Does he understand why those of us who represent rural communities are deeply concerned about the imbalance that exists between farm standards on this side of the world and those in New Zealand and Australia on the other? We think that might undermine our ability to feed ourselves because it will put British farmers out of business.
Greg Hands
I look forward to the hon. Member actually supporting one of these trade deals. I have already pointed out the safeguards that exist in both deals: the long transition period and the substantial tariff-rate quotas. I am talking about all of the protections and safeguards that are in those deals for British farmers—the non-regression clauses on animal welfare, for example, which will prevent Australia or any other country from seeking to gain a trade advantage if they were to weaken their animal welfare rules. I will be frank, though; I have seen no evidence that Australia will be looking to do that, but the deal does have protection for our farmers and our consumers.
Our free trade agreements reflect the needs of modern business and play to this country’s strengths. They will create deeper friendships between our citizens and they will begin a new era of free trade between our nations. In short, these are free trade agreements for the 21st century and I commend them to the House.
Nick Thomas-Symonds
I entirely share my hon. Friend’s concern about the lack of specific impact assessments. I also share his disappointment that there is not a specific set of structures in place where the devolved Administrations can make their voices heard at a far earlier stage in the process. That would be extremely helpful.
Greg Hands
I am sorry, but that is just not a complete representation of what actually goes on. The ministerial forum for trade, which I set up—I have not yet chaired a meeting of it since returning to the Department, but it will be meeting soon—allows all three devolved nations to meet me to discuss forthcoming trade deals, forthcoming negotiations and trade policy overall. That is exactly what it is in place for.
Nick Thomas-Symonds
First, I am pleased to hear that from the Minister, because certainly the feedback I have had from the devolved Administrations has not been positive with regard to the political interaction they have had prior to trade deals being signed. Also, there is the issue of the extent to which the needs of the devolved Administrations were taken into account. He has said that to me today from the Dispatch Box, so I hope that he is as good as his word with the ongoing trade deal negotiations and that the devolved Administrations will not only have the opportunity to have their say, but will be listened to.
Greg Hands
I am looking forward to a meeting with Vaughan Gething later this week, if I am not mistaken—it might be next week, but it is in the coming days. It is important to recognise that trade policy is a reserved matter, but it does have a significant impact on areas of devolved competence, such as agriculture. That is why it is right that the UK Government carry out the negotiation, but that they involve and inform the devolved Administrations. That is exactly how it works with the ministerial forum for trade and other interactions.
Free Trade Agreements: Parliamentary Scrutiny
Greg Hands Excerpts(2 years, 1 month ago)
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The Minister of State, Department for International Trade (Greg Hands)
I congratulate the Committee Chair on his report, which we will obviously respond to in due course, and I thank him for his warm words about the commitment by our new Secretary of State to engage with his Committee.
The Committee has been consistent under the hon. Gentleman’s chairmanship in calling for more scrutiny. This is not the proper place for me to enter a full defence of CRaG, but I have a question for the hon. Gentleman. CRaG is not the whole extent of the scrutiny, and he did not mention that any changes a trade deal would cause to the UK system would need legislative change. For example, the Trade (Australia and New Zealand) Bill is going through the House at the moment, and it is giving ample time for scrutiny to all Members of the House. Will he say a little about some of the other scrutiny opportunities available?
Angus Brendan MacNeil
I thank the Minister for his congratulations and his kind remarks about consistency. What we find is that by that period it is too late. Things are very one-sided and the Whips are pushing things through. If we are to have a place for consideration we have to take the issue away from the partisanship that we have at that stage in the House. I think the Minister knows it could be done better. When the Prime Minister has said, in one frequency, that a deal is “one-sided”, surely that is a message that things could, and should, have been done better.
Oral Answers to Questions
Greg Hands Excerpts(2 years, 1 month ago)
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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)
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)
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)
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.
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)
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?
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?
UK-India Trade Deal
Greg Hands Excerpts(2 years, 2 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Nick Thomas-Symonds (Torfaen) (Lab)
(Urgent Question): To ask the Secretary of State for International Trade if she will make a statement on progress made on the UK-India free trade deal.
The Minister for Trade Policy (Greg Hands)
First, let me say that it is good to be back at the Department for International Trade.
India is, of course, an economic superpower, projected to be the world’s third largest economy by 2050. Improving access to this dynamic market will provide huge opportunities for UK business, building on a trading relationship worth more than £24 billion in 2021. That is why we are negotiating an ambitious free trade agreement that works for both countries. We have already closed the majority of chapters and look forward to the next round of talks shortly.
A strong free trade agreement can strengthen the economic links between the UK and India, boosting the UK economy by more than £3 billion by 2035, helping families and communities. An FTA can cut red tape, making it cheaper for UK companies to sell into India’s dynamic market, helping drive growth and support jobs across every nation and region of the UK. Greater access could help UK businesses reach more than a billion more consumers, including India’s growing middle class, which is estimated to reach a quarter of a billion by 2050, and give them a competitive edge over other countries that do not have a deal with India. An FTA with India supports the Government’s growth strategy, by taking advantage of the UK’s status as an independent trading nation championing free trade that benefits the whole of the UK. We remain clear that we are working towards the best deal for both sides and will not sign until we have a deal that is fair, reciprocal and, ultimately, in the best interests of the British people and the UK economy.
Nick Thomas-Symonds
I welcome the Minister back to the Department once again, wish him well and thank him for his response. I am also grateful to Mr Speaker for granting this urgent question.
Not only is Diwali this year an important celebration, but it marks another milestone. In January, negotiations on the UK-India trade deal began, with the Government promising to conclude those talks by Diwali—this week. Under this Government, economic growth has been almost non-existent and promised progress on new free trade deals has not materialised. The Government are all talk and no delivery.
Not only would an agreement with India be potentially worth billions of pounds to the UK economy and would provide new markets for exporters, but it would offer the opportunity to advance key areas of shared interests. Labour Members have also been clear that it should also be an opportunity to raise issues such as workers’ rights, and environmental and climate standards.
However, it appears that progress on trade talks has stalled—this is yet another product of Conservative infighting. Members across this House are well aware of the comments on overstaying visas made by the Home Secretary, which have caused such offence. Does the Minister agree that the Home Secretary has completely undermined the UK Government’s negotiating position? Will he confirm whether she will be withdrawing those comments? Has a future target date for completion of the deal been agreed? Or is this destined to be kicked into the long grass, along with the promised United States deal? Does he acknowledge that the delay in this deal, and the US deal, means there is no prospect of the Conservative party meeting its manifesto aim of 80% of trade being covered by FTA agreements by the end of this year? Does he not accept the simple truth: on trade, the Conservatives have quite simply broken their promises?
Greg Hands
I am delighted to have the opportunity to answer this urgent question and some of the points that the right hon. Gentleman raised. [Interruption.] I will answer all of them. First, on his question about the end of the deal, we have been clear that we have concluded, as we said we would, the majority of the chapters of the deal. Sixteen chapters, across 26 policy areas, have been agreed so far. The right hon. Gentleman will know that, after each round of negotiations, a written ministerial statement, which he can study, has been tabled in this place.
The right hon. Gentleman asked about visas. Perhaps he is trying to have a second go about the Home Secretary, about whom we have just heard an urgent question. I am not sure whether members of the shadow Cabinet are properly co-ordinating their urgent questions, but the right hon. Gentleman should know that we are talking about mode 4 arrangements. They are not immigration visas. They relate to business visas, not permanent settlement. The terms of the mode 4 arrangements remain an area of active negotiation.
Finally, the right hon. Gentleman said that the Government were all talk and no delivery on trade. That amazed me the most. He is obscuring the bigger issue for the Opposition. Let us assume that we get a good deal with India for Britain and that we get a good deal elsewhere, as we have done with Japan, Australia and New Zealand. I have been away from the Department for a year, and in that time Labour has not supported a single trade deal that the Government have undertaken. The Opposition did not support the Japan deal, they were against the Singapore deal and they split three ways on Canada. Only last month, they abstained on the Australia and New Zealand deals.
The Government are delivering on trade and the Opposition are in chaos and confusion. They have been unable to support a single trade deal to date and it sounds as though they will not support this one.
Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
I commend my right hon. Friend for taking the urgent question. It is a pleasure to have a moment to pop down and add my voice to the important point that the deal was commenced earlier this year—I had the privilege of launching it—and that we and the Indian Prime Minister set ourselves the task of providing clarity about what a deal between our two nations could look like by Diwali. I am pleased that progress has been made.
It is important to understand the value that the deal brings not only because the Indian diaspora are such an important part of our economy—they have been incredibly important in driving what we are trying to achieve—but because so many British businesses are excited at the prospect of some of the trade barriers coming down. I would be pleased to hear from my right hon. Friend what the key areas, particularly innovation, will bring for British businesses as the deal crystalises in the weeks ahead.
Greg Hands
I thank my right hon. Friend for her incredible service as Secretary of State for International Trade in the past year. She moved things forward in so many areas—crucially the area we are discussing. When I left the Department, an India trade deal was just a concept rather than something material. Five rounds of negotiations later, she is right that we are in a good place.
We expect the deal to do a lot on tariffs. Many of our exporters face considerable tariffs on services—professional, financial and legal. I cannot promise that we will get everything in the deal. On intellectual property, it will be easier for companies to work through innovation and so on. There is a huge number of areas of potential gain for India, including investment and life sciences. I welcome my right hon. Friend’s support. Perhaps the Opposition will take it as a lesson and support a trade deal in future.
Madam Deputy Speaker (Dame Rosie Winterton)
I call SNP spokesperson Drew Hendry.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Welcoming a Minister back to his place is now a standard response, but I welcome the Minister back.
Increased trade, ties and co-operation between India and the UK are welcome, especially in Scotland. However, that should not be at the expense of human and workers’ rights. Will the Minister belatedly guarantee that issues about human rights, the environment and health and safety, along with climate and equality concerns are fully resolved before any deal is signed?
Does the Minister really believe that there is no anger and no problem about the Home Secretary’s comments in India that might cause difficulties for the deal?
Scotch whisky exports to India are already subject to 150% tariffs. New Delhi has threatened even higher tariffs on whisky and gin in retaliation for domestic steel protections. Whisky and gin producers need to know that the UK Government are doing something to reduce those tariffs drastically. What is going on? What will be done to ensure that barriers are not just replaced at Indian state level?
Jagtar Singh Johal remains in an Indian prison without trial. He has been detained since 2017. The UK has had four Prime Ministers and five Foreign Secretaries since his illegal detention. What is the Minister doing during negotiations to right that wrong?
Greg Hands
I thank the hon. Gentleman for that list of questions. As ever, the UK’s commitment to workers’ rights in our trade deals and negotiations and in all our international talks remains undiminished. That is fundamental for this country.
I am glad that the hon. Gentleman mentioned whisky tariffs. He did not support the Australia free trade deal, which means a reduction in whisky tariffs. Tariffs on Scotch whisky going to India are currently 150%. I will therefore watch closely his approach to the deal. Our successful removal of the Airbus-Boeing tariffs has hugely benefited the Scotch whisky industry. I am not sure whether the hon. Gentleman fully supported that.
The hon. Gentleman raised human rights. At all times, the Foreign Office engages vigorously on the case mentioned and on other cases.
Let me end with the SNP. On trade deals, it is even worse than Labour. SNP Members have never supported a trade deal concluded by either the European Union or the UK. They did not even support the trade deal between the EU and the UK. They voted for no deal two years ago. They were against the deals with Canada, Korea and South Africa. They did not even support the trade deal between the EU and Ukraine. They also abstained on the Japan and Singapore deals. The SNP is fundamentally against trade and the interests of Scotland as a trading nation.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
I welcome my right hon. Friend back to his place.
I am a member of the Scotch whisky all-party parliamentary group and have had the opportunity to work closely with Scotch Whisky Association. Notwith-standing the Minister’s previous answer, will he confirm that the deal is a great opportunity for businesses up and down our great country to increase their order book and, more importantly, work with countries with shared values?
Greg Hands
Pretty much the first visit our new Secretary of State for International Trade made was to a distillery just a few weeks ago, showing our commitment to our brilliant UK food and drink exporting sectors. My hon. Friend is right to mention the exceptionally high levels of tariffs on whisky and other alcoholic products exported to India. I cannot guarantee that we will eliminate those tariffs, but if we are not at the table conducting those negotiations—the Opposition parties do not seem to think we should be there—we will not achieve anything.
Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)
The trade deal is being discussed against a background of India not protecting human rights and civil liberties for the Christian community, the Hindu community, the Sikh community, the Muslim community and the Kashmiri community. If we are to go ahead with a trade deal, does the Minister understand that it must be based on the Indian Government’s actions on human rights and civil liberties? Otherwise, we should not proceed with it.
Greg Hands
As I said earlier, the UK Government have an exceptionally proud record of promoting human rights around the world. In my 12 years as a Minister and a Back Bencher, I have always been impressed by the Government’s vigour in supporting global human rights.
The hon. Gentleman mentioned Kashmir. He has plenty of opportunities to raise the issue at Foreign Office questions, but the Government’s position is unchanged. It is for India and Pakistan to find a lasting political resolution to the Kashmir dispute. India and Pakistan are long-standing, important friends of the UK. We encourage both to engage in dialogue and find lasting diplomatic solutions to maintaining regional stability.
Anthony Mangnall (Totnes) (Con)
There is absolutely no pleasing the Opposition. They criticise us when we sign our deals too quickly and they criticise us when we take too long. The point is that we have to get this absolutely right. This Government have signed deals with Australia and with New Zealand, and negotiations are under way on the comprehensive and progressive agreement for trans-Pacific partnership. We are exploring the Gulf Co-operation Council and we are looking at India. We have concluded a digital partnership with Singapore. We have done a trade deal with Japan and we are improving the roll-over deals that we took from the European Union. That is what we are doing and what we are delivering on. Frankly, we have had this conversation before with the Opposition. Does the Minister agree that they do not recognise the very many benefits that these deals bring?
Greg Hands
My hon. Friend is an experienced, dedicated and committed member of the International Trade Committee. He is right in what he says. I was in opposition myself some, gosh, 17 years ago to 12 years ago. If the Opposition are serious about going into Government they need to be clear not just about what they are against—they are against trade talks, against trade deals, and against the India trade talks—but about what they are in favour of. What are the Opposition for, Madam Deputy Speaker? The shadow Cabinet might have had a better session this afternoon deciding that rather than tabling more urgent questions.
Sarah Green (Chesham and Amersham) (LD)
The House of Lords International Agreements Committee published its report on the Government’s negotiating objectives in July. It criticised them as being very general and high-level, and said that they provided no clue as to the Government’s negotiating priorities. Can the Minister confirm whether high animal welfare standards are a negotiating priority?
Greg Hands
What happens with a set of trade negotiations is that, when we set out the negotiating objectives and the scoping assessment, they are by necessity rather general, because the teams have not started negotiating, so they do not know what the other side will want to achieve in those talks. They have not actually started on any of those issues, so those things are by necessity rather general.
The hon. Lady asked about animal rights and she was quite right to raise that, as it is very important part of the Government’s agenda. None the less, the Government’s position remains unchanged: we have very high standards of animal welfare and we will make sure that they are not undermined by any trade agreement. In any case, we as a country set our animal welfare standards; they are not set through any trade deal.
Alex Chalk (Cheltenham) (Con)
Does my right hon. Friend share my surprise at the Opposition’s foot dragging on this given that one of the great prizes with India is on legal services? The right hon. Member for Torfaen (Nick Thomas-Symonds) is himself a lawyer. Does this deal not present a great opportunity, given that English law governs so many contracts, for us to progress this vital industry to secure more jobs for lawyers in this country?
Greg Hands
My hon. and learned Friend is absolutely right. Legal services are a really important part of this agenda. One of the first meetings that I had in the Department was with the chair of the Bar Council, Chantal-Aimée Doerries, who told me in some detail about some of the gains that could be achieved in legal services by getting a good deal with India to make sure that our global, high-quality legal services are appreciated right the way across the world.
Mr Ben Bradshaw (Exeter) (Lab)
It would be easier to do trade and commerce with India if it were easy to travel there. As I am sure the Minister is aware, the British are the only nationality in Europe who are currently barred from India’s e-tourist visa system. We always used to be able to get e-visas for India, but, following the Home Secretary’s remarks, we no longer can. This is doing great damage, as we have heard on the Transport Committee, to our travel industry, to the Indian tourism industry and to the thousands of British families whose plans to travel to India are now in jeopardy. Will he use his good offices across Government to get this issue resolved in advance of any trade deal? This is real damage that is being done now.
Greg Hands
We take an ongoing interest in the ability of our citizens to travel abroad and to access other countries. However, I stress again that a trade negotiation covers what is called mode 4, which relates to the movement of people—in other words, business visas. I am confident that we can get a good deal with India when it comes to mode 4.
Jerome Mayhew (Broadland) (Con)
Does my right hon. Friend agree that this is an exciting opportunity to help unlock the economic potential of the living bridge that Prime Minister Modi has recently described? As for the notional timeline of Diwali, does he also agree that getting the right deal is much more important than getting any deal?
Greg Hands
My hon. Friend is right. We have a brilliant diaspora community in this country. I was delighted to celebrate Diwali—a little bit early—last week with the India Global Forum. That was a really telling example of the strength of the diaspora deal. He is also right that the content, the depth and breadth of the deal are more important than the data that it delivers. That is the case for all trade negotiations. It is a matter not of getting a quick deal, but of getting the best deal for Britain, which is exactly what we have done with Japan, exactly what we have done with Australia and exactly what we have done with New Zealand.
Paul Girvan (South Antrim) (DUP)
My colleague on the International Trade Committee, the hon. Member for Totnes (Anthony Mangnall), mentioned the trade deals that we have already signed and the progress that has been made on others. As a Committee, we have had some concerns about when trade deals are presented to the Committee. They need to be presented in a timely fashion so that the detail can be scrutinised. I do not wish to hold up a deal being made, but we understand that it can be important to get things done in a timely fashion. Can we have an indication as to when a deal will be put together and presented to the Committee?
Greg Hands
I will not set a deadline today for this ongoing negotiation. May I commend the hon. Gentleman for one thing—apart from his work on the Committee? I think it was the Democratic Unionist party that voted with the Government on the Australia and New Zealand trade deals. It is nice to see an Opposition party that is willing to take a constructive approach to what the Government are proposing, if it is in the interests of the UK and Northern Ireland. I commend him for that.
When it comes to interaction with MPs, I did an MPs briefing last week on the India trade deal. I mentioned that we have had written ministerial statements after each round of negotiations. My right hon. Friend the Secretary of State will be appearing before the ITC, I believe, on 30 November at an introductory hearing, and I am sure that this will crop up there as well.
Scott Benton (Blackpool South) (Con)
I welcome the Government’s efforts to secure a free trade deal with India and the growth, jobs and investment that this will help to create. However, the Minister will be aware of our manifesto commitment to reduce net migration and the perception among many of my constituents that we are not succeeding in that aim. Will the Minister reassure the House that throughout these negotiations, in seeking to boost economic growth, he will also balance this against abiding by our manifesto commitments?
Greg Hands
The Prime Minister has been absolutely clear about the importance of our manifesto commitments. I remind my hon. Friend, as I reminded the whole House, that this deal is not about immigration; it is about mode 4 business visas, which will be really important for both countries to continue to do trade, particularly services trade, such as the legal services that my hon. and learned Friend the Member for Cheltenham (Alex Chalk) mentioned. We need to make sure that our professionals can get into the Indian market to deliver their fantastic, world-leading services.
Sarah Owen (Luton North) (Lab)
Will the Minister please confirm that, during negotiations on this and any other trade deal, vital issues such as human rights, workers’ rights, especially women’s rights, and environmental standards have not only been discussed but that guarantees have been secured, and is he able to share what those guarantees are?
Greg Hands
The hon. Lady is right to raise those issues. I repeat what I said earlier: the UK is very proud of our standards and of the work that we do around the world on these really important questions. These are questions and issues that are raised with India and with all of our partners at all times.
Tahir Ali (Birmingham, Hall Green) (Lab)
The Minister will not be oblivious to the human rights record of Indian Prime Minister Modi and his Government given the atrocities being carried out against ethnic communities across India, namely the Christians and the Sikh community, and also their revocation of articles 370 and 35A in Indian-occupied Kashmir. Will the Minister categorically give us the assurance that no trade agreement will go ahead until India meets its obligations under international law and fulfils many of its outstanding UN commitments?
Greg Hands
I have already talked about Kashmir and the Government’s commitment to finding a resolution of that issue, working peacefully and with the two Governments together.
May I just return to the case of Jagtar Singh Johal, raised by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), and add a little bit of detail on that important human rights case? The Foreign, Commonwealth and Development Office and the Government have consistently raised our concerns about Mr Johal’s case directly with the Government of India. I believe that our then Prime Minister raised it with Prime Minister Modi earlier this year as well.
Robert Halfon (Harlow) (Con)
I strongly welcome the Government’s progress on this incredibly important deal. We have a thriving Indian community in Harlow, and I hope my right hon. Friend will wish them a happy Diwali. I ask him, when we sign these deals, to ensure that it is not just the big multinationals in the UK that benefit, but that he goes directly with information to smaller companies, like the many in my constituency, so they can benefit from these wonderful trade deals too?
Greg Hands
I certainly join my right hon. Friend in wishing all his Harlow constituents a happy Diwali; it is a fantastic and particularly appropriate moment for that festival to come to this country and to India. He mentions ensuring that the trade deals work not only for multinationals, but for small and medium-sized enterprises, and he is right. The UK has an SME-led economy and it would be strongly in our interest to ensure that all trade deals work for SMEs. That is why it is typically our practice to negotiate an SME chapter in our trade deals to ensure that SMEs, which do not always have the resources to wade through a 1,000-page-plus free trade agreement document, are given headers and pointers on how that deal will help to benefit them.
Jim Shannon (Strangford) (DUP)
I declare an interest as the chair of the all-party parliamentary group for international freedom of religion or belief. With increasing violations of FORB in India and the systematic disenfranchisement of those of Christian and Muslim faith, does the Minister agree that human rights provisions must be included in the India trade deal, and can he guarantee that no blind eye will be turned to human rights abuses for the sake of economic benefit?
Greg Hands
I think this Government have a fantastic record of promoting religious tolerance and religious diversity abroad. The current Chancellor, when he was Foreign Secretary in this Government, made that one of his key early launch pads. I might add that the British high commission in New Delhi and our deputy high commissions right across India regularly meet with religious representatives and have run projects supporting minority rights. That is a big part of what the UK presence on the ground in India is all about.
Bills Presented
General Election (Date) Bill
Presentation and First Reading (Standing Order No. 57)
Ed Davey presented a Bill to amend the Dissolution and Calling of Parliament Act 2022 to provide for a general election to be held no later than 1 December 2022; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 18 November, and to be printed (Bill 174).
Former Ministers and Prime Ministers (Abolition of Payments) Bill
Presentation and First Reading (Standing Order No. 57)
Rachael Maskell presented a Bill to prevent certain non-statutory payments being made by the Government to former Prime Ministers; to abolish the payment of grants to persons ceasing to hold ministerial offices; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 9 December, and to be printed (Bill 175).
Trade Deals: Parliamentary Scrutiny
Greg Hands Excerpts(2 years, 2 months ago)
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Lloyd Russell-Moyle
None of this is new or not on the record. I think I have been even franker to the right hon. Member for Berwick-upon-Tweed to her face in Committee meetings, including about her officials, but I will alert her to this because it is a speech that has come from my contemplation today.
The Minister for Trade Policy (Greg Hands)
I hope that the hon. Gentleman was not impugning officials at the Department for International Trade in that regard. I am not sure whether he was, but I am sure that he would not want to be questioning the integrity of the officials in the Department. Maybe I misunderstood him and maybe that was not the case.
Lloyd Russell-Moyle
No, I think their advice to her was bad. That is my honest feeling. It was not good advice on how she should conduct her relationship with the Committee. It does not need to be like that, because other Committees that I have sat on—and I have sat on many—have had very good relationships with officials. I do not think that the relationship with the officials and the previous Secretary of State was good. I am afraid it is not just about the Secretary of State on this matter.
When I was on the International Development Committee, the relationship was such that we had private discussions and briefings with the Secretary of State every month. They were private, off the record and totally in camera. We would discuss confidential issues relating to development spending—sometimes where it had been misspent or where there were problems. The Committee would then rally around the Secretary of State, the Department and their officials when things were happening. That is the kind of relationship that we need now, and it is the kind of relationship that I think we can have now.
We need to review CraG, and the Public Administration and Constitutional Affairs Committee, which I also sit on, is doing that now. We need to strengthen CraG and we also need to have the following things, which I will list quickly and then finish. We need to ensure that heads of terms are presented to the Committee and signed off by the House, just like in America, the European Union and most other advanced democracies. We need to have private briefings at every single stage and on every single chapter. That is what the EU and the US get. If it is good enough for them, it needs to be good enough for us. We need to have embedded people in some of the key negotiations. Again, the US Senate has that, and that is what we should be expecting. It is not good enough for Ministers or the Department to tell us that these are confidential discussions. They are in the national interest and they must include the Committee. It is unacceptable for them to think that the Committee is not trustworthy.
We need a proper set of trade commissioners who give impartial advice to the Committee. The Committee needs to be given the resources for a set of sub-committees and staff. The Committee could then look at broad issues and the sub-committees could look at trade-by-trade issues. It is not good enough that the Committee is having to do all the trade-by-trade issues, which means that we are not looking at any of the broad issues in our scrutiny.
The Minister for Trade Policy (Greg Hands)
It is a pleasure to serve under your chairmanship, Ms Elliott. It is great to be back at the Department for International Trade after a one-year gap. It is good to engage on a huge number of the issues that I used to engage on—I have had a quick crash course to bring myself up to speed after the last year.
I congratulate my hon. Friend the Member for Totnes (Anthony Mangnall) on securing the debate. He is a genuine champion for global Britain and brings great energy to the International Trade Committee—something I remember from when I appeared before the Committee a number of times. The Committee is extremely important to the work of the Department for International Trade, as is the Lord’s International Agreements Committee. Many important points have been raised during the debate, and I will strive to cover as many as I can. First, I will lay out a little context, but most of my speech will deal with the points that have been raised.
For the first time in nearly half a century, the UK is free to negotiate its own free trade agreements with the world’s fastest-growing economies. The rewards will be significant: higher wages, more jobs and more growth, with agreements specifically tailored to the needs of the United Kingdom. However, given that our free trade agreements equate to a significant shift in trade policy and in how this country does its trade policy, it is right that Parliament has the opportunity to fully examine them.
My hon. Friend the Member for Totnes rightly says that the CRaG process came in during the last days of the Labour Government, in 2010. CRaG ensures that Parliament has 21 sitting days to consider a deal before it can be ratified. Only once that period has passed without either House resolving against the deal can it proceed towards ratification. The Government believe that CRaG continues to provide a robust framework, but we have added, in addition to CRaG, some important parts to this process. In both respects, the need for parliamentary scrutiny and the Government’s constitutional right to negotiate international agreements under the royal prerogative—
Anthony Mangnall
I am sorry to interrupt, but the Minister is making the point that Parliament has the ability to consider these things under CRaG. Parliament only has that ability if the Government allow time for us debate and vote. We did not have that for the Australia agreement. I think most of us want the Minister to say today that, on the New Zealand agreement and the subsequent trade agreements, we will have that time allocated, as outlined under CRaG.
Greg Hands
I thank my hon. Friend for that intervention. Of course, I have only been back at the Department two days now, but I will carefully consider the representations that he has made on parliamentary scrutiny. As I am laying out, CRaG is a process that, I believe, works well overall. We have added elements to CRaG, on top of the situation we inherited in 2010.
I should stress that no international treaty—we saw this in the House earlier in the Committee stage of the Trade (Australia and New Zealand) Bill—can of itself change the UK’s laws. That can be done only by Parliament. What is more, it is the long-standing practice of successive Governments to ratify treaties only once relevant domestic implementing legislation is in place. As my hon. Friend the Member for Totnes knows, the Australia free trade agreement is not actually ratified yet, because the domestic legislation is not yet in place.
My hon. Friend made an excellent speech. He rightly praised a litany of successes and the importance of our trade policy in making a difference to businesses, exporters, and consumers. Having read through quite a few of these free trade agreements and international trade agreements, I can say that there is no point negotiating just for the sake of producing a doorstep-style document. The point is to have an agreement that works for our exporters, consumers and producers, as rightly pointed out by various hon. Members.
May I give some praise to my officials? I was a little perturbed by the points raised by the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle). Whatever officials may or may not have advised Ministers in the past, it is unfair to attack them if Ministers chose not to follow that advice or did something else. I am sure the hon. Gentleman will want to think about that and perhaps intervene on me to clarify what he meant.
Lloyd Russell-Moyle
What I should have said is that the Secretary of State hid behind her officials, claiming that it was their advice that she was following. I hope that that was not the case and I that officials were giving her good, broad advice—I am sure they always do.
Greg Hands
Let me take that in the spirit in which it is meant. I think we will agree to move on, but the hon. Gentleman has made his point. I am just saying that Ministers are always responsible for the decisions and actions of their Departments. That is a very good rule for how our constitution works.
My hon. Friend the Member for Totnes made various excellent points about better clarity and better comms. In my experience, there can always be better communication in the world of trade. There is always a huge amount of misunderstanding in relation to trade in general and free trade agreements in particular.
My hon. Friend mentioned outreach, which I will come back to. He also mentioned human rights clauses. The UK has an incredibly proud record—not only on our own human rights, but on the engagement we do around the world. Free trade agreements are not always the best way to engage on human rights—there are often better ways to do that—but we do make sure that, wherever appropriate, human rights are included in free trade agreements. We will certainly engage with all our trade partners on the issues that matter to the British people and the Government, be they human rights or trade union rights.
Greg Hands
Let me deal first with the points that my hon. Friend the Member for Totnes raised and the specific case he mentioned. I will talk about CRaG in a bit more detail, but the other part of his speech was about respect for the International Trade Committee. I know from the times I have appeared in front of that Committee how important it is. It is ably chaired by the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil)—I have mutilated the pronunciation of the Western Isles, but I have done my best. I say to my hon. Friend that our system of scrutinising international agreements and trade deals is at least as good as that in other Westminster-style democracies, such as Canada, Australia and New Zealand. Unless something major has changed in the year I have been out of the Department, I think the UK shapes up at least as well as those equivalent systems.
My hon. Friend the Member for York Outer (Julian Sturdy), who is no longer in his place, talked about a lack of expertise in the Department, but I would say quite the opposite. I was there at the foundation of the Department in 2016, and we deliberately made sure that we had the expertise and the right people in place.
I am already overshooting on time, Ms Elliott. I have not done justice to a lot of the contributions that have been made, but I think that I have dealt with human rights. There was mention of China and Russia. Of course, there are no plans to make a free trade agreement with the likes of China or Russia. Trade policy is reserved, but we engage with and consult the Scottish Government and Welsh Government through the ministerial forum for trade, which I used to chair and which I think I will be chairing again.
The hon. Member for Chesham and Amersham (Sarah Green) talked about meaningful debate. The Department for International Trade always has meaningful debate, and we always have outreach to stakeholders. People have specifically mentioned farmers. I cannot tell you the number of outreach sessions that I did with the NFU, NFU Scotland, NFU Cymru, the Farmers’ Union of Wales and the Ulster Farmers’ Union. The number of Zoom and Teams meetings that I did with them all during the pandemic was absolutely extraordinary. We did a huge amount of outreach.
I say to hon. Members that it has been a helpful and interesting debate. It has been useful for me to get back up to speed on parliamentary scrutiny. I appreciate that Members want to see more scrutiny and more debate. I am open-minded on that, and I will have a look specifically at some of the points that my hon. Friend the Member for Totnes raised in relation to current free trade negotiations.
Trade and Agriculture Commission: Role in International Trade Deals
Greg Hands Excerpts(3 years, 5 months ago)
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The Minister for Trade Policy (Greg Hands) [V]
I apologise for having to join you virtually, Ms Bardell. I am self-isolating, as many are. I start by saying what a pleasure it is to serve under your chairmanship in what has been an excellent and generally well-informed debate, secured by my hon. Friend the Member for Tiverton and Honiton (Neil Parish), who is a respected and long-standing committed advocate of British farming interests. He was likened to a Rottweiler three years before he even got to the House of Commons, which is tribute indeed.
As the Government chart a new course for the United Kingdom as an independent trading nation, we will pursue the interests of our farmers and producers with the same energy, tenacity and determination that my hon. Friend has demonstrated. The UK is already tasting great success in agrifood exports, exporting nearly £22 billion-worth of food and drink globally last year. We have a trade surplus in the sector with the United States and with Japan and Australia as well.
The important market access work that my Department is doing with our international partners is also bearing fruit, including gaining access to the United States for UK beef producers for the first time in over 20 years—a success the industry estimates could deliver £66 million-worth of sales by 2025—and securing entry to Japan, China, Taiwan and others for British beef, lamb and so on. In Japan, for example, that could be worth as much as £127 million over five years.
Our plans for accession to the comprehensive and progressive agreement for trans-Pacific partnership, or CPTPP—the world’s hardest acronym to say—would give British exporters improved access to a community of 11 dynamic global markets with a combined GDP of £8.4 trillion. That would be a gamechanger for UK trade with the Asia-Pacific region.
The Government have made an iron-clad commitment to uphold the UK’s high standards for food and farming throughout our FTA negotiations. No compromise on our standards in animal welfare, food safety and the environment is enshrined in the Government’s manifesto, which the Conservative Members in this debate are all signed up to. After all, the UK’s production standards are second to none, which is why our farmers are proud to put the Union Jack quality label on their produce.
We heard from the Labour Opposition spokesman, the hon. Member for Sefton Central (Bill Esterson), that he wants to see more British food in our supermarkets. One hundred per cent. of beef in our major supermarkets is already UK-branded. We cannot go higher than 100%.
We very much want to see British produce here, but also able to be exported. That is why it is important that our agrifood sector can scrutinise the detail of the deals that we are negotiating. Underpinning that is the work of the original Trade and Agriculture Commission, which this Government established not under duress, but willingly, to examine our trade policy and identify new opportunities worldwide for British farmers and agricultural producers.
I am grateful to the commission’s chairman, Tim Smith, and to its members for their ambitious and comprehensive report, which puts forward innovative and far-reaching proposals to ensure that UK agriculture remains internationally competitive and that our animal welfare and environmental standards are protected.
Turning to the debate, the Chair of the EFRA Committee, my hon. Friend the Member for Tiverton and Honiton, asked when the response will be made. It will be made as soon as it is ready. The report is immense and covers strategic policies, standards, export, promotion, staffing, marketing, environment and animal welfare. It warrants a serious and considered response. The role of the new TAC will be as debated and approved during the passage of the Trade Act 2021 and the Agriculture Act 2020.
On standards, which the hon. Member for Bristol East (Kerry McCarthy) also asked about, our key standards rolled over in the withdrawal agreement. Those standards that we took from the European Union rolled over in the withdrawal agreement. I think there is some confusion about market access with standards. Others have raised greater market access for Australia. That has no impact on our standards. What is allowed into this country under our standards today will remain exactly the same after the Australia free trade agreement comes into force.
The question of the agricultural council is very important. They do a great job for us and it is important to understand that it is not just the agricultural counsellors who work to promote UK food and drink and agriculture abroad. The DIT’s international commercial network is in 119 different markets around the world, with 1,500 people working on export and market access.
There was a suggestion that we are dragging our feet. I do not agree with that at all. The new Trade and Agriculture Commission will be up and running in good time to scrutinise the Australia free trade agreement as soon as the legal text is available.
Support for the new TAC was also raised by the Chair of the EFRA Committee. It will have a secretariat. It will not have the capacity for modelling, as it is not within its remit to model the economic impact of a free trade agreement. It is important that the TAC focuses on its statutory mandate as set out in the Trade Act and the Agriculture Act.
My hon. Friend the Member for Penrith and The Border (Dr Hudson) rightly welcomed the animal welfare chapter in the Australia trade deal. He questioned the scrutiny, but I think our system of scrutiny stands up as at least as well as in any Westminster-style democracy when it comes to trade deals. He made a point about using international aid to promote sustainable farming. The UK currently does that very professionally. I have seen it for myself in countries such as Zambia and Colombia.
The hon. Member for Swansea West (Geraint Davies) is wrong, as was pointed out by my hon. Friend the Member for Totnes (Anthony Mangnall)—FTAs do not trump domestic law. There would be no need to put in amendments to domestic law reflecting a free trade agreement, if the FTA simply trumped domestic law. He is not correct on that.
On production costs, we have to look at why Australia currently sells 75% of its beef exports and 70% of its lamb exports into Asia. A large reason for that is the high costs of production, which are much higher. The cost of producing a tonne of beef, for example, in Japan is around £7,300. In Korea, it is £7,200. In the UK, it is £3,700—about half that. There is a good reason why Australia is much more willing and able to sell into those markets.
My hon. Friend the Member for East Devon (Simon Jupp) ably made points on the opportunities for exports. He is absolutely right. To be able to export, though, we have to abide by the rules of the international trading system. We cannot have it one way for imports and a different way for exports. The UK benefits enormously from international trading rules—we are a trading country—and we need to ensure that we abide by them. That point was made by various Members, including my hon. Friend the Member for East Devon. He asked for the Trade and Agriculture Commission to be put on a statutory footing sooner rather than later. It will be sooner; it will be up in good time to scrutinise the Australia trade deal.
The hon. Member for Westmorland and Lonsdale (Tim Farron) spoke of demonstrably lower standards in Australia. I refer him to the letter sent to him by the Australian High Commission. It is not my job to defend Australian agricultural practices, but it can put up a reasonable case. It is rated five out of five by the OIE—the World Organisation for Animal Health—in terms of performance in veterinary inspections. Also, Australia bans certain practices that I know the hon. Member for Westmorland and Lonsdale welcomes that are prevalent in the EU. Sorry—I should rephrase that. I know that he welcomes being in the EU; he does not necessarily welcome the practices. For example, the production of foie gras is allowed in the EU; Australia bans it. Australia bans the castration of meat chickens and so on, so Australia can put up a halfway reasonable case that it has good standards of animal welfare.
My hon. Friend the Member for Brecon and Radnorshire (Fay Jones) raises very strong points—I am delighted to address her farmers—as did my hon. Friend the Member for Totnes, who made a thoughtful, well-informed and balanced speech. The role of the devolved Administrations is very important. Trade policy is reserved, but it has an impact in areas of devolved competence. My hon. Friend the Member for Keighley (Robbie Moore) raised the precedents of the Australia free trade agreement. He is also right that each FTA is treated individually.
I thank all Members for the debate, which has been very helpful. We look forward to making further progress on all these matters in due course.
Oral Answers to Questions
Greg Hands Excerpts(3 years, 5 months ago)
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Marion Fellows (Motherwell and Wishaw) (SNP)
The Minister for Trade Policy (Greg Hands)
The Trade Remedies Authority assesses the UK’s trade remedies and makes recommendations to the Secretary of State. This includes the recent review of the UK steel safeguards. The Government accepted the recommendation of the TRA to extend 10 of 19 steel safeguards. The Government also introduced legislation to allow us to extend the current steel safeguards measure for an initial period of 12 months to a further five categories.
Marion Fellows
The Trade Remedies Authority recommended revoking nine of 19 steel safeguards despite calls from the sector and the all-party parliamentary group on steel, which wanted all tariffs extended, but the UK Government will keep only about 15 of them. The UK steel sector is not on a level playing field with competitors because of higher energy costs and the lack of a corporate industrial strategy from this and successive Tory Governments. Is this not another broken Brexit promise to a domestic industry and its workers?
Greg Hands
I remind the hon. Lady that we have invested £500 million in recent years to help with the cost of energy. I also remind her of the welcome from the sector for the Secretary of State’s decision on 30 June, when Gareth Stace, director general of UK Steel, said:
“Today the UK steel sector applauds the Prime Minister…and Trade Secretary…for standing up for steel”
and
“taking back control”.
Kenny MacAskill (East Lothian) (Alba)
Alyn Smith (Stirling) (SNP)
The Minister for Trade Policy (Greg Hands)
Latest monthly figures for UK goods exports to the EU show that in May 2021 exports were £14 billion, up by 8% on the previous month. This is the highest monthly figure, as mentioned by the Under-Secretary, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), since October 2019, and it is £2 billion higher than the monthly average for 2020 and just £0.2 billion lower than the monthly average for 2019. Latest quarterly figures for UK services exports to the EU show exports for the first quarter up by 2% on the previous quarter of last year, but still 2% below the 2020 quarterly average and still some 20% below the 2019 quarterly average.
Alyn Smith
Well, there are lies, damned lies and statistics, and I do hesitate to criticise and rain on the Jackanory story we are hearing from those on the Government Benches, but let us look at some facts from the Office for National Statistics. Comparing quarter 1 of this year with 2019, UK-EU trade is down by 27%. Some of that is accounted for by covid; much of it is accounted for by Brexit. Make UK reports that 96% of its members are having problems with the new trading regime. These are facts. What is the Minister’s secret? How does he maintain his Panglossian optimism for the future while ignoring such pain and hurt in the here and now?
Greg Hands
I was quite deliberate in the use of those statistics. We do need to take care with monthly statistics. None the less, the first quarter data is already two months out of date. The hon. Gentleman is right that there was a dip in January, but that was due to the closure of the border at that time due to the prevalence of the alpha variant in this country. Since then, there has been a very significant recovery. The latest data from May shows £14 billion of exports, up by 8% on the previous month, and only just lower than the monthly average from before the pandemic. He can quote the ONS, but perhaps he might want to look at the latest data, refresh his briefing, and ask his questions according to the latest available data.
Gareth Thomas (Harrow West) (Lab/Co-op)
Three weeks ago, Lord Frost rejected the EU’s offer of a veterinary agreement, saying:
“We are very ambitious about CPTPP membership… That is the problem.”
Since we cannot ask Lord Frost himself, can the Minister perhaps tell us why the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership is incompatible with reaching an agreement with Europe on food standards? From which of our current food standards do the Government wish to diverge?
Greg Hands
I think the hon. Gentleman is confusing a number of different things, but let me start by saying that the UK proposed an equivalence agreement on sanitary and phytosanitary rules in negotiations—that was proposed by Lord Frost—but the EU refused. The EU does have agreements with, for example, New Zealand and others that still respect regulatory autonomy. We are very happy to discuss with Brussels an agreement on SPS rules so long as it respects UK regulatory autonomy and we do not sign up to dynamic regulatory autonomy. That is the read-across to other trade agreements; it allows us to have an independent trade policy while maintaining the high-quality trade deal that we have with the European Union.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The Minister can defend his Government’s Brexit bourach all he likes, but EU-UK trade fell by 27% in quarter 1, with Scotland punished even further. He cannot blame covid, as the fall was over three times worse than the global comparison. Official statistics show that for every £245 that Brexit cost in lost trade, even if the Government were to agree multiple free trade agreements, it will bring in only around £18 in return. The UK is virtually alone in facing this kamikaze blow to its exports. Scotland voted against this trade catastrophe. When will the UK Government renegotiate this disaster—or do they intend to continue to be anti-trade?
Greg Hands
I take that with a bucket of salt from the SNP about being anti-trade. As we have heard so often in this House, the SNP has failed to support any trade agreement negotiated either by Brussels or by us in Westminster. I do not think there is a single party in this House that is more anti-trade than the Scottish National party. I urge the hon. Gentleman to have a look at the latest data. Trade with the EU is recovering—it may not yet be fully recovered, but it is recovering—and the latest data, in May, shows a very significant 8% improvement on the previous quarter. I refer him to last Friday’s data.
Drew Hendry
Mr Speaker, you can see why we do not support any trade deals from this Government—because they always sell Scotland out. Let us hear what industry is saying. Fishing representative bodies continue to say that the Prime Minister has betrayed them and that they have been sold out. Individual losses of tens of thousands of pounds are commonplace due to export delays. A perfect storm of red tape, driver shortages and other Brexit issues are destroying businesses across the board, but especially in food and drink. According to the Road Haulage Association, almost a third of UK hauliers say they are having to avoid working with the food and drink industry due to increased checks and admin. Costs are up everywhere on materials, admin and transport—20% in distilleries. What compensation is planned for those affected—or, when the Prime Minister said “eff business”, was that an instruction?
Greg Hands
There was a lot in that further supplementary. May I just remind the hon. Gentleman that most of the trade deals that he and his party have not supported are actually the EU’s trade deals? His party’s policy is to re-join the EU. The SNP was against the EU-Japan deal in the European Parliament and abstained here; it was against the Canada deal; it was against the Singapore deal; it abstained on South Africa, and it abstained on Korea.
When it comes to fisheries, I refer the hon. Gentleman back to what the ONS said, not this past Friday but in relation to February’s data—he is so out of date. This is what the ONS said in April:
“The disruptions to food exports in January 2021 appear to have largely been overcome and may have only had short-term impacts on trade.”
That is what it said in April, yet he is still not up to date. On hauliers, we are discussing all the time with the Department for Transport what extra action needs to be taken.
Finally, the hon. Gentleman asks for compensation. Perhaps he can come to this House and account for the £180 million given by this Government to the Scottish Government for dealing with the consequences and the impact of Brexit at the end of the transition period, because we are not at all sure where that money has gone.
Matt Western (Warwick and Leamington) (Lab) [V]
The reality on the ground is quite different from what the Minister may be claiming. I recently met many manufacturers and businesses in Warwick and Leamington, such as Bravissimo, Vitsoe and young British designers, and they are desperate. Their concerns are underlined by surveys by the Federation of Small Businesses, the Institute of Directors and Make UK showing the serious and lasting damage being done to UK firms trying to maintain their trade with Europe in the face of the inadequacies of the Government’s Brexit deal. Can I ask the Minister of State whether he thinks Lord Frost has the bandwidth to fix those problems, on top of the Northern Ireland protocol, or do we need someone else in Government to get a grip?
Greg Hands
The Government have full bandwidth on all these aspects. We are satisfied with the trade and co-operation agreement. It is an agreement that is working well. In terms of adding support to exporters, that is the role of this Department and other Departments. We have helplines in place. We have the Brexit business taskforce. We have the DIT internationalisation fund. The Department for Environment, Food and Rural Affairs has a £23 million seafood disruption fund. We have recently opened trade hubs in Edinburgh and Darlington, and we will open hubs soon in Cardiff and Belfast. We have a refreshed export strategy coming later this year. The Government are fully engaged on assisting exporters to get their goods and services into the European Union.
Karl MᶜCartney (Lincoln) (Con)
Martin Vickers (Cleethorpes) (Con)
The Minister for Trade Policy (Greg Hands)
Her Majesty’s Government formally began negotiations on the UK’s accession to CPTPP on 22 June. Negotiating teams will be working hard over the coming months to ensure a good deal for businesses, producers and consumers across the UK. The UK’s accession would make CPTPP a truly global free trading area and strengthen the UK’s relationship with 11 dynamic economies across four continents.
Paul Bristow [V]
Taiwan is one of the top 20 trading nations in the world, a vibrant democracy, a member of the WTO and an Asia-Pacific Economic Co-operation member economy. Could the Minister confirm that the UK welcomes Taiwan’s intention to join CPTPP alongside our own application and update the House on efforts to deepen our bilateral trade ties with Taiwan?
Greg Hands
Taiwan is a subject close to my heart, and we know that it is an important and growing trading partner for the UK. It is a highly valued member of the WTO as well. Future membership of CPTPP is a matter for the members at that time, but I note that Taiwan is looking to align itself to CPTPP’s high standards and is continuing its long-standing commitment to rules-based trade and the global trading system. We expect CPTPP to grow in size, and future members will be a matter for future consideration. I am looking forward to our next round of Joint Economic and Trade Committee talks with Taiwan, hopefully as soon as travel becomes possible again.
Martin Vickers [V]
I very much support the Government’s efforts to become a member of CPTPP, which, as the Minister mentioned, offers great prospects. Indeed, my constituency is a major centre for renewable energy and has links with, for example, Taiwan. Does he anticipate that the renewable energy sector will gain great advantage from CPTPP membership and boost those industries in my constituency?
Greg Hands
Yes. CPTPP will of course liberalise trade in goods and services in the fast-growing markets in the Pacific, and fast-growing markets have fast-growing needs for clean energy. In recent times, I have been in Vietnam, Korea and Taiwan, pushing UK expertise and exports, for example, in the offshore wind sector. I remind the House that the UK has the world’s largest offshore wind capacity. I am sure there will be opportunities for that and other renewable sectors in Yorkshire and the Humber, including in Cleethorpes.
Bill Esterson (Sefton Central) (Lab)
The Government are relying on increased trade with Malaysia for three quarters of the forecast benefits from joining the CPTPP. That may explain why Ministers have turned a blind eye to the growing use of slave labour in Malaysian factories. If the Minister disputes what I have just said, perhaps he can tell us what proportion of the 760 million medical gloves bought by the Government from Malaysia during the pandemic were manufactured using slave labour?
Greg Hands
We take our obligations and any allegations of the use of slave labour extremely seriously. I am happy to look into it if the hon. Member has specific allegations in relation to Malaysia. I might add that the Malaysian supply of latex gloves last year was extremely important for this country, but I am happy to look into it if he has specific evidence of the use of slave labour. Of course, Malaysia has not yet ratified CPTPP. We hope that it will and I remind him that CPTPP has a comprehensive chapter on labour and workers’ rights.
Bill Esterson
The Minister really was not in a position to answer that question because his Department failed to act on warnings last year from the high commissioner in Kuala Lumpur telling them that their slavery audit function for glove manufacturing was not up to the task. It simply cannot be allowed to continue, so if I write to the Minister with the Government’s current list of glove suppliers—I have a list of 19 companies so far—will he agree to conduct a proper audit of their factories? Bearing in mind what he just said about accession to CPTPP and Malaysia having yet to ratify it, will he also reconsider signing any trade agreement with Malaysia as long as its reliance on slave labour persists?
Greg Hands
I repeat my offer to have a look at the specifics, of course. The UK Government take all such accusations, allegations or reports extremely seriously. When it comes to Malaysia joining CPTPP, they have signed and it is up to them to ratify. The UK is not currently a member of CPTPP so it is not up to us who joins it at the moment, but I remind the hon. Gentleman that CPTPP does include a comprehensive labour chapter that ensures that the parties protect and enforce labour rights, improve working conditions and strengthen co-operation on labour issues, all of which would be very helpful in the sort of cases that he is talking about.
Tom Randall (Gedling) (Con)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Minister for Trade Policy (Greg Hands)
There will be more UK export opportunities for our food and drink industry with the removal of all Australia tariffs. We have considered the impact of additional market access for beef and lamb on UK farmers, which has been balanced by a lengthy 15-year staging period. An independently scrutinised impact assessment will be published prior to implementation.
Mr Carmichael
Patrick Krause, chief executive of the Scottish Crofting Foundation, recently made the point that the real risk for Scottish crofters from the Australia deal comes from the fact that other countries with which we do trade deals will want the same good terms that we have given to Australia. As he said,
“Crofting is good for food, and also has very impressive environmental and climate-change mitigation credentials. And crofting is about the people—crofting has maintained communities in remote rural places.”
How much of that does the Minister think will be said of the products that will be imported to replace crofted lamb?
Greg Hands
I thank the right hon. Gentleman for his engagement and his interest. I have engaged extensively with Scottish farmers, crofters and Martin Kennedy of the National Farmers Union Scotland. I have done various roundtables with constituency MPs as well. On the impact of Australian beef and lamb imports, we think it is very unlikely that there will be a surge in imports into this country. Currently, there are strong incentives for Australia to sell into Asia. For example, the lamb quota is not currently fully used. Beef production prices in Asia are twice what they are in the UK. Australia exports 75% of its beef and 70% of its lamb to Asia, which is why I would expect that pattern to be continued. But this is also why we have built safeguards and a staging period of 15 years into the deal.
Kerry McCarthy (Bristol East) (Lab)
The Minister for Trade Policy (Greg Hands)
We are seeking environmental provisions with all partners with which we are currently negotiating to ensure that future trade is sustainable and upholds the UK’s high environmental standards. The precise deals of any free trade agreement are a matter for formal negotiations.
Rachael Maskell
Despite what the Minister says about calling for more control over trade, he has completely failed to advance the “polluter pays” principle through the carbon border tax, failed to advance the agenda at the G7, failed to put it into any of the trade agreements that he has drawn up and failed to put it into any of the negotiation frameworks that he is currently discussing. Can he tell me whether he will fail at the next stage when it comes to COP26? Is he already engaged in pre-negotiation talks with all the partners, and how will the principle fare on the COP26 agenda when the summits meets in November?
Greg Hands
We take a strong interest in carbon leakage and in how trade deals with carbon. We are studying carefully, for example, EU proposals on the carbon border adjustment mechanism. At the World Trade Organisation in general, we are looking to advance our environmental agenda. The hon. Lady will know of the different measures taken by the UK Government; for example there is the UK global tariff, which reduced and eliminated tariffs on 104 environmental goods. We are also seeking good environmental chapters in all of our future free trade agreements.
Kerry McCarthy
Thank you for sneaking me in, Mr Speaker.
Today, we heard the devastating news that the Amazon is now a carbon source rather than a carbon sink. With deforestation at a 12-year high, it is emitting more CO2 than it absorbs. Is the Minister following the progress of the land-grabbing legislation, which has been dubbed the destruction package, that is going through the Brazilian Parliament at the moment? What discussions has he had with his counterparts, and what impact would that have on trade negotiations with Brazil? May I urge him to rule them out if this package goes through?
Greg Hands
We are not currently negotiating a trade agreement with Brazil. We follow the position in Brazil very closely, and we engage strongly on a bilateral basis on all of these issues with the Brazilian Government. We have very good diplomatic representation not just in Brasilia but across different parts of Brazil, to make sure that the UK position and the importance of deforestation for the UK, particularly in this COP26 year, is upheld.
Andrew Jones (Harrogate and Knaresborough) (Con)
The Minister for Trade Policy (Greg Hands)
My hon. Friend is correct. The Australia deal is a fundamentally liberalising agreement that removes tariffs and supports millions of jobs. It will strengthen the bonds of friendship—I speak as the parliamentary president of the Conservative Friends of Australia—for example by championing youth mobility, which he referred to. The deal also paves the way for joining the comprehensive and progressive agreement for trans-Pacific partnership and the growing middle-class markets of the Pacific rim. We are realising the vision of a global Britain that looks to one of the most dynamic trading areas in the world.
Mr Virendra Sharma (Ealing, Southall) (Lab) [V]
Greg Hands
HSBC is an extremely important company and employer in this country. I do not have a problem with Ministers meeting HSBC, let us put that on the record. The hon. Gentleman will also be aware of the very strong action we have taken in relation to China and the measures announced by the Foreign Secretary in this House in January in relation to supply chains in Xinjiang and actions in Hong Kong, which had broad agreement across the House. We will continue to make vigorous representations in relation to China, and we are monitoring the situation very closely.
Tom Randall (Gedling) (Con)
Greg Hands
My hon. Friend is absolutely right. Services are 80% of the UK economy. We are the world’s second largest exporter of services, and a huge number of those are digitally enabled. The digital economy agreement between the UK and Singapore will be a model for global digital trade rules, and I met Singapore Minister Alvin Tan just yesterday to discuss it. Singapore is a global leader in this area. We are looking forward to signing an excellent agreement with Singapore.
Helen Hayes (Dulwich and West Norwood) (Lab) [V]
Greg Hands
We are following developments on the EU carbon border adjustment mechanism closely. The UK has ambitious carbon pricing through our emissions trading scheme and carbon price support mechanism, and we expect the EU CBAM to take account of that in its implementation. The COP President-designate, my right hon. Friend the Member for Reading West (Alok Sharma), has said that he does not anticipate carbon border adjustment mechanisms becoming an issue within the COP26 negotiations.
Mrs Sheryll Murray (South East Cornwall) (Con)
Kerry McCarthy (Bristol East) (Lab)
Greg Hands
We have been absolutely categorical in our commitment on food standards and food safety standards. There will be no compromise on UK standards in relation to any trade agreement. That has been the case—[Interruption.] Our commitment is absolute. If the hon. Member were to take a look at all the trade agreements we have done with 67 countries—if she looked at the Australia trade deal agreement in principle and the Japan deal—she would see no diminution in our food safety and animal welfare standards so far.
Ian Levy (Blyth Valley) (Con) [V]
Rob Roberts (Delyn) (Ind) [V]
Greg Hands
I can absolutely give that commitment to the people of Delyn. The Government have been very clear that any trade deals must work for UK consumers and businesses, upholding our high regulatory standards. The Government, as I mentioned earlier, have manifesto commitments to no compromise on standards in animal welfare, food safety and the environment.
Christian Wakeford (Bury South) (Con) [V]
Mary Kelly Foy (City of Durham) (Lab) [V]
Greg Hands
We will be responding in due course to the call for input on going further on a trade deal with Canada, and we are looking forward to that negotiation starting in the autumn. I would remind the hon. Member that there are no ISDS provisions in the UK-Australia deal, but I would also remind her that the UK has never lost an ISDS case. We do have ISDS provisions in quite a number of our existing agreements, and the UK has never lost any such case.
Henry Smith (Crawley) (Con) [V]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Greg Hands Excerpts(3 years, 6 months ago)
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Emily Thornberry
My hon. Friend makes a good point that Ministers should remember a little more actively.
The Government are joining the agreement with no ambition to improve its deficiencies, no attempt to deal with its threats and no effort to make it work in Britain’s interests. The trouble is that, when someone goes into a negotiation looking as if they are willing to accept anything in the deal, they come across to the other party as if they will do anything to get it. That brings me to the second quote, by the Secretary of State’s Australian counterpart, Dan Tehan. He said of the recent negotiations:
“We’ve been very clear with the UK that… they’ll need a gold standard FTA with us if they’re going to have a realistic chance of joining the CPTPP”
because
“We have a very large say in what accession looks like”.
There it is: the man the Secretary of State threatened with an uncomfortable chair ended up holding her over a barrel.
Let us look at the consequences. As the price for UK access to the CPTPP and the 0.017% that will be added to GDP, the Secretary of State was willing to accept every single demand from Australia when it came to tariff-free, quota-free access for their cheap and cruelly produced meat.
Emily Thornberry
The Minister says, “Oh! Oh!” Does he know what mulesing is? I suggest that he finds out, then looks us in the eye and tells us whether there are cruel practices in Australia.
No wonder Dan Tehan said that the Austalian National Farmers Federation was “over the moon” when he told them about the deal he had struck, while farmers up and down Britain curse it as a betrayal. Kit Papworth is the director of a farm business in Norfolk—perhaps he is a constituent of the Secretary of State’s. He said:
“The deal is an absolute dereliction of everything that farmers have been promised… It is farmers being sold down the river once again… while agriculture… is being left… to die.”
Drew Hendry
I thank the shadow Secretary of State for that clarification, and she is indeed right. There I was being generous to the Government about the effects; I will certainly try to learn the lesson there.
The Government have ignored industry and the advice of trade experts just to prove their own self-harming political point. They were warned that the precedents of the Australia deal would inevitably lead to other countries demanding the same capitulations, but they said that that would not happen. Now the New Zealand Trade Minister is on record demanding zero-tariff access to UK markets as a result, and of course others are following. In negotiations on the CPTPP, the UK cannot decline to align on too many areas, such as ISDS, agrifoods, consumer standards and more, and still expect to become a member.
In short, if the UK joins, the consequences are very likely to be disastrous. In all of the nations of the UK, the farming unions have stressed the importance of protecting the UK’s current high food and farming standards. After a calamitous few months for the food and drink sector across the UK, almost every organisation representing Scottish agrifood interests has written to the UK Government calling on them finally to take Scottish interests into account over negotiations with the CPTPP’s Australia.
Having failed in their duty over consultation with industry, devolved Administrations and regulators, the Government have of course failed to give this Parliament a meaningful vote, so let us ask the Government: will they bring forward a meaningful vote on the CPTPP? I will give the Minister the opportunity to respond if he would like to do so.
The Minister for Trade Policy (Greg Hands)
We have had a good debate, if a little short. Joining the great global partnership of CPTPP promises to unleash a wave of trade-led growth in our country, generating jobs and delivering prosperity to every part of the UK. The launch of negotiations for our accession is an important moment for Britain as an independent trading nation. It shows that, once again, major economies want to do more business with the UK and that it is possible to strike ambitious trade deals that go further than those negotiated by the EU. The CPTPP is a free trade area comprising 11 nations that account for 13% of global GDP, worth £9 trillion, with a combined population of 500 million across four continents. By welcoming the UK into its fold, the CPTPP will become even stronger, its share of GDP rising to 16% and gaining an even louder collective voice on the world stage in pursuit of its shared priorities. The strategic case for this was well made by my right hon. Friend the Member for North Somerset (Dr Fox), my hon. Friend the Member for Gloucester (Richard Graham) and others as being important for the UK not just in trade but also in terms of wider strategy.
As the Secretary of State said earlier, it shifts the UK’s economic centre of gravity towards faster growing parts of the world such as Asia, where 65% of global middle-class consumers are expected to live by 2030, and the Americas, and there are great opportunities in this for UK agrifood, a point well made by my hon. Friends the Members for Ynys Môn (Virginia Crosbie)—I was delighted to meet her farmers a couple of weeks ago—and for Montgomeryshire (Craig Williams) and the hon. Member for Upper Bann (Carla Lockhart). It is also a great opportunity for Staffordshire gin, a point made by my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell).
Britain would become the first new member of CPTPP since it was established in 2018, and other significant economies such as the Philippines, Thailand, Taiwan and South Korea are looking to follow suit. My hon. Friend the Member for Wycombe (Mr Baker) mentioned Taiwan and he will know that I am a 30-year-long enthusiast for Taiwan; we have Joint Economic and Trade Committee talks later this year, but I am always open to better trading links with Taiwan. This is a high-standards agreement between sovereign nations—a point made by my hon. Friend the Member for Newcastle-under-Lyme—and a business-focused deal that removes tariffs on 99.9% of the goods we export to CPTPP members and reduces other barriers, particularly for our vital services industry.
Turning to the content of the debate, the shadow Secretary of State, the right hon. Member for Islington South and Finsbury (Emily Thornberry), spoke for twice as long as the Secretary of State but it was all the usual doomsaying and talking the country down. As my right hon. Friend the Member for North Somerset said, she is the shadow Secretary of State against international trade. She has had three years to consider whether Labour supports this deal—three years—and she still has not made up her mind. Perhaps, however, we should not be surprised, because Labour could not make up its mind on deals with the component countries—the members. Labour abstained on Japan, is opposed to the Australia deal and against Singapore, and split three ways on the Canada deal. The right hon. Lady talked about the NHS, food safety and animal welfare; nothing in the CPTPP threatens our standards and it is clear that there will be no compromise on our standards from our manifesto.
The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) again went on endlessly about Brexit, as did his party colleague the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), but he and the SNP have never supported any trade deal ever so I do not think that whatever I say to him today is going to make him support it. He said that the UK had not agreed to join the investor-state dispute settlement. First, the UK has never lost an ISDS case and, secondly, I recommend having a look at the details. Labour put out a press release a few weeks ago saying that it decries the ISDS provisions in the Australia deal, but there are no ISDS provisions in the Australia trade deal. We heard a very considered contribution from my hon. Friend the Member for Folkestone and Hythe (Damian Collins); he spoke in favour of the deal, and I agree with him that we would not sign up to the provisions that are included in the United States-Mexico-Canada agreement. Turning to the Lib Dems, Vince Cable was all in favour of these deals when he was in the coalition Government and the Minister for Trade, and he was actually in favour of ISDS proposals as well.
There are specific benefits for the cutting-edge sectors that are shaping the world of tomorrow such as AI, services and technology, and the deal will allow us to work closely with CPTPP members on modern digital trade rules, business travellers, slashing red tape, agrifood and more. When negotiations conclude, the UK’s accession will be subject to the Constitutional Reform and Governance Act 2010 scrutiny process alongside the statutory Trade and Agriculture Commission report and I commend UK accession to CPTPP to the House.
Question put and agreed to.
Resolved,
That this House has considered the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Madam Deputy Speaker (Dame Eleanor Laing)
I will now suspend the House for three minutes in order to make arrangements for the next item of business.
Oral Answers to Questions
Greg Hands Excerpts(3 years, 6 months ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
The Minister for Trade Policy (Greg Hands) [V]
Employing 17 million people and generating £2.3 trillion in turnover, small and medium-sized enterprises are vital to increasing UK trade. That is why we are continuing to seek SME chapters and SME-friendly provisions throughout all our free trade agreements. Outside the SME chapter, the wider benefits of the agreements—for example, reducing customs costs, supporting intellectual property rights, facilitating mutual recognition of professional qualifications and increasing regulatory transparency—will help to level the field between SMEs and large businesses.
Mr Speaker
Mr Hollinrake is not here, so we will go instead to the shadow Secretary of State.
Emily Thornberry (Islington South and Finsbury) (Lab)
Small and medium-sized farms across the country are rightly worried that this weekend’s agreement with Australia and the precedent it will set for future trade deals will not just undermine their business but destroy them. Last November, the Minister of State promised these farmers that the new trade and agriculture commission would mean that
“all the National Farmers Unions…will play an active role in assessing trade agreements going forward”—[Official Report, 17 November 2020; Vol. 684, c. 190.]—
and that as a consequence the farming industry’s interests would be “advanced and protected” by the TAC. Does he stand by those statements today?
Greg Hands [V]
I thank the right hon. Lady for those questions and I absolutely stand by that. We are involving NFUs from all four nations; I have met NFU Scotland’s Martin Kennedy twice in recent weeks. We are confident that the new trade and agriculture commission will be up and running in good time for it to conduct its statutory review of the Australia free trade agreement.
Emily Thornberry
I thank the Minister for that answer but the British farming industry knows the truth: the trade and agriculture commission it was promised to defend the interests of British farmers is not the one advertised by the Government this week, and my question to the Minister of State is simply this: why? What are the Government so scared of? If they are confident that their deal with Australia will benefit British farmers, not undermine them, why do they not have the courage of their convictions and establish the trade and agriculture commission on the basis that farmers were promised last November and let the voice of British farming deliver its verdict on the deal?
Greg Hands
We—myself, the Secretary of State and the whole of the Department for International Trade—listen very carefully, of course, to the voices of British farmers. The Secretary of State opened expressions of interest to become members of the trade and agriculture commission just this week. It is very important to understand that the role of the commission never has been to advise on negotiations; its role will be as debated and approved during the passage of the Trade Act 2021 and the Agriculture Act 2020, and we are looking forward to seeing its scrutiny later this year.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Many happy returns to you today, Mr Speaker.
SMEs make up the backbone of the Scotch whisky industry and the Minister likes to talk about whisky, so let us talk about the reality for the industry resulting from the Government’s trade policy. Speyside Distillery, winner of best whisky at the world whisky awards, tells me that sales are dramatically down since Brexit and that this Government’s awful Brexit deal has led to the cost of its goods going up by a fifth—up 12% on glass and up 7% on cardboard—and increased shipping costs and delays. Extra paperwork alone is costing it 33p per case. It tells me that a deal with Australia will not even scratch the sides of its substantial losses from Brexit, so what additional support and compensation will the Government pay to distilleries such as Speyside for these losses?
Greg Hands
I am delighted to hear the Scottish National party raise the subject of whisky, because it did not do so in the urgent question two weeks ago on the Australia trade deal. I remind SNP Members that Scotch whisky currently faces tariffs going into Australia; it is one of Scotch whisky’s most important markets and is a growing market even during the pandemic. In terms of trade volumes with the European Union, we are continuing to see a recovery in the data. This is of course volatile data, but none the less there was a 46% increase in exports to the EU in February and a further 9% increase in March. Further data will be coming out in due course.
Drew Hendry
As ever, when presented with the realities the Minister just spins into Brexit fantasy. They just do not care about Scottish businesses. There is a good reason why the SNP has never supported Westminster’s trade policy, and that is because Scotland’s needs are always ignored. The UK Government said fishing was expendable during the EU negotiations in the ’70s, their Brexit obsession dragged us out of the world’s largest single market, and now they are betraying our farmers and crofters all while capitulating on standards in animal welfare. They do not listen to Scotland and they do not care about Scotland, but is the Minister aware that they are being found out in Scotland?
Greg Hands
I am not sure that the hon. Gentleman has been listening carefully enough to what I have been saying to him about the SNP and trade deals. It is not just Westminster trade deals that he and his colleagues have rejected; they have even rejected the trade deals negotiated previously by the European Union. He has pledged to rejoin the EU, in which case Scotland would become immediately subject to those trade deals. He also wishes to rejoin the common fisheries policy, which would be completely against the interest of fishers right across Scotland.
The SNP has never supported any trade deal. It has been against the Canada and South Africa deals, and it has not supported the Japan or Singapore deals. It is simply anti-business, anti-trade and against the interests of the Scotch whisky industry and of Scottish fishers.
Mr Philip Hollobone (Kettering) (Con)
The Minister for Trade Policy (Greg Hands) [V]
There will be opportunities for businesses across Buckinghamshire as part of the 2,600 businesses in the south-east that were already exporting goods to Australia last year. They are set to benefit from action on tariffs in areas such as cars, food and drink, and machinery, and there will be benefits in services, including digital, data and innovation provisions that will future-proof the FTA for businesses in Buckinghamshire and across the United Kingdom.
Rob Butler
Many happy returns, Mr Speaker. I thank the Minister for his answer. Buckinghamshire has more microbusinesses than any other county in the country, so now that we are a free sovereign trading nation once again, what help can my right hon. Friend give to those very small businesses that want to export to Australia but might not yet have the expertise and experience to do so?
Greg Hands
I am well aware of the situation in Buckinghamshire; my father set up a microbusiness in Buckinghamshire 40-odd years ago. I can tell my hon. Friend that our refreshed export strategy will raise the exporting culture of the UK, taking advantage of our new independent trade policy by providing SMEs and micro-businesses across Buckinghamshire with new opportunities to build their exporting capability in both goods and services, to enhance support, to strengthen one-to-many digital services and to improve access to finance.
Beth Winter (Cynon Valley) (Lab)
Sir Edward Leigh (Gainsborough) (Con)
The Minister for Trade Policy (Greg Hands) [V]
Following two days of intensive discussions during the visit of Dan Tehan, the Australian Minister for Trade, Tourism and Investment, on 22 and 23 April, both sides reached consensus on most elements of a comprehensive free trade agreement. The UK and Australia are now working to agree the outstanding elements, with the aim of reaching agreement in principle this month.
Sir Edward Leigh [V]
I am speaking from Lincolnshire, the bread basket of England. It is a prosperous county, but in the area of world free trade before the second world war, we could walk on derelict farms from Lincoln to Grimsby. Can the Minister assure me that this free trade deal with Australia, which I welcome, will ensure a bright future for our farmers, and that there will be no relaxation of our high-quality standards and no imports of mass-produced wheat that could undercut our farmers?
Greg Hands
My right hon. Friend is quite right to point to the brilliance of the Lincolnshire farmers and their industry in helping both to feed this country and to export. We have been absolutely clear that, when it comes to trade deals, there will be no compromise on our standards, food safety, animal welfare and the environment. I agree that there is an opportunity here for Lincolnshire to be exporting more. We have secured more access last week in the Norway, Iceland and Liechtenstein deal. We are looking forward to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which has big opportunities for UK agriculture and future free trade agreements going forward.
Richard Thomson (Gordon) (SNP)
Amy Callaghan (East Dunbartonshire) (SNP)
The Minister for Trade Policy (Greg Hands) [V]
This is a deal for the whole Union. Our scoping assessment found that Scotland will benefit in all modelled scenarios. Reducing tariff barriers for our world-class food and drink industry should help bolster exports of iconic Scottish goods to Australia, such as Scotch whisky, apparel and services, such as financial services. Once we accede to CPTPP, Scottish farmers will also gain access to the increasing middle class in Asia.
Richard Thomson
Australia’s red meat industry has the goal of doubling its sales by 2030, which requires access to UK markets. That expansion can only come, despite what the Government say, at the expense of domestic producers and standards. What absolute minimum SPS, bio-security and welfare standards will the Government insist on in any Australian trade deal to safeguard producers and consumers, and to ensure that our farmers are not simply the next industry to be thrown beneath the wheels of the Brexit bus?
Greg Hands
I have met with NFU Scotland a few times in recent weeks. To be honest, it would be nice to hear the hon. Gentleman and his colleagues for once sticking up for agriculture in Scotland and the opportunities that come from trade, rather than being against every single trade agreement. Australia apparently exports a lot to Asia—75% of its beef exports, 70% of its lamb exports—and only 0.15% to the UK. There are strong reasons for that. The production costs, for beef in particular, are much higher in countries such as Japan and Korea than they are in either the UK or in Australia. Staged over time, tariff reductions and making sure that safeguards are in place, we are confident that we will have the ability to protect UK farmers from any unforeseen increases in Australian imports to this country.
Amy Callaghan [V]
I wish you a very happy birthday, Mr Speaker.
Currently, the UK does not have specific legislation to ban meat from animals raised by inhumane methods such as battery cages—methods that are utterly intolerable here but permitted and used extensively in Australia. The Department for International Trade has also never set out if or how it might inspect animal welfare and food standards in countries with which we may sign new post-Brexit trade deals. Does the Minister truly believe that the people of Scotland are prepared to see food on their supermarket shelves reared in appalling conditions, all for the additional 0.1% to 0.2% of GDP over 15 years as per his Department’s own assessment?
Greg Hands
I have never heard the SNP support any trade deal, ever. SNP Members even voted for a no-deal Brexit last December. The hon. Member mentioned standards. We have been absolutely clear that there will be no compromise on our standards. However, Australia, in its standards on animal welfare, is actually ranked five out of five by the World Organisation for Animal Health for its performance in veterinary services across 38 categories. The hon. Member talks about meeting our standards; our import standards remain high, and will be unchanged as a result of this or any other trade agreement. Australian produce—as, indeed, other produce—must continue to meet our high import standards.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Dehenna Davison (Bishop Auckland) (Con)
The Minister for Trade Policy (Greg Hands) [V]
The Government are clear that any deal with Australia must work for UK farmers and producers. We will use a range of tools to defend British farming. As well as improving access to the Australian market, an FTA will act as a gateway to CPTPP, creating unheralded new export opportunities for British farmers and producers.
Dehenna Davison
Last summer, the Secretary of State visited Grange Hill farm in Bishop Auckland, where leading farmers John and Jane are rightly proud of the fabulous beef that they produce. Will my right hon. Friend please tell the House how the gateway to the CPTPP—a deal with Australia—will open up new markets for British beef farmers?
Greg Hands
I know that the Secretary of State greatly enjoyed her visit last year to the farms in my hon. Friend’s constituency. CPTPP is a great opportunity. I referenced in an earlier question growing Asian demand for products such as meat and other British agrifood products. We see there being tremendous opportunities in that fast-growing market—13% of global GDP across four continents. This is a real opportunity to be able to sell British farming produce to those fast-growing Asian and American markets.
Joanna Cherry (Edinburgh South West) (SNP)