UK Trade Performance

Debate between Kemi Badenoch and Martin Vickers

Wednesday 1st May 2024 Commons Chamber

[Kemi Badenoch]

I think the point that the hon. Gentleman is making is that we cannot be complacent about what is happening in either country. Even as we talk about good news, we need to continue working to ensure that those things do not disappear. He is right that we should do as much as we can with the Department for the Economy. Now that a Minister is in place, it will be a lot easier for us to co-ordinate and see how we can work together to increase employment and improve wages and productivity in both regions.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the Secretary of State’s statement. It was particularly encouraging to hear the news about the manufacturing sector. However, as she will be aware, if growth in that sector is to be maintained, continued Government support will be needed. Will it be forthcoming?

[Kemi Badenoch]

We have put in place a £4.5 billion advanced manufacturing plan for the manufacturing sector. Firms will need to ensure that they qualify for that funding. We are also doing what we can to bring in investment—especially foreign investment—which will help to drive productivity. It is good to see that business and investors globally want to invest all across the UK, not just in London, and not just in financial services but in manufacturing, certainly, and in our green industries of offshore and renewables. There is so much that we can do that will create industries and companies fit for the future.

Oral Answers to Questions

Debate between Kemi Badenoch and Martin Vickers

Thursday 7th March 2024 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

7. What assessment she has made of the impact of the UK’s withdrawal from the EU on businesses.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

Since we left the EU, we have used our new freedoms to secure free trade deals with 73 countries, including EU partners, and that accounted for £1.1 trillion of UK trade in 2022. We have simplified import tariffs to lower costs for businesses and households. We plan to remove over 50% of inherited EU regulations by 2026. Our reforms to employment laws could save UK businesses up to £1 billion a year, ensuring that the UK is the best place in the world to start up and grow a business.

[Martin Vickers]

I thank my right hon. Friend for her reply. Measured by tonnage, the port of Immingham in my constituency is the largest port in the country, with almost 50 million tonnes of cargo each year. It is also a vital part of the renewable energy sector. Immingham is surely an example of the fact that not only EU trade but worldwide trade is important to the UK. If my right hon. Friend were able to visit at some time, she would be able to see that for herself.

[Kemi Badenoch]

As ever, my hon. Friend is a great advocate for his Cleethorpes constituency. He is right that Immingham is the No. 1 port in terms of tonnage and is vital to our trade with the EU and the rest of the world. If our diaries allow, I or one of my Ministers will be delighted to visit and see at first hand the vital role Immingham plays in the transition to renewable energy.

Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill [Lords]

Debate between Kemi Badenoch and Martin Vickers

2nd reading
Monday 29th January 2024 Commons Chamber

[Kemi Badenoch]

Well, he should know them, because I believe I referred to them in the Select Committee; I hope he was listening. The point I am making to the Chair of the Select Committee is that trade is dynamic. On some issues that we are negotiating and discussing with our partners, we have differences of opinion; and others are going swimmingly. This is not a reason for us to cast aspersions on our trade relationships with the countries in question.

Joining this partnership will deliver for our manufacturers, but crucially it will also deliver for our globally renowned services sector. The UK is already the world’s second largest exporter of services, behind only the US, and services exports are at record levels. CPTPP, with its modern and ambitious rules on services and digital trade, plays to the UK’s strengths, given that almost 80% of our economy is services-based. It will reduce market access barriers, such as data localisation requirements; British businesses will not have to set up costly servers or data centres in each member country, and that will save them significant time, money and other resources. This agreement will help flagship British businesses such as Standard Chartered and BT to gain smoother access to markets in Singapore, Vietnam and Malaysia, strengthening our trade with those nations for years to come.

We also have a ratchet mechanism for the first time with Malaysia, Chile, Mexico, Peru, Singapore, Brunei and Vietnam, meaning that if those countries relax rules for a particular service, restrictions cannot then be reintroduced in future. That is another clear example of how this agreement will unlock smoother, simpler trade. The director general of the Institute of Export and International Trade, Marco Forgione, has rightly said:

“This is all good news for UK businesses, giving them greater access to one of the fastest growing regions in the world”.

The issue is not just the benefits that joining this partnership will bring over the short term. This is a growing agreement, designed to expand and bring in more markets and more opportunities for UK businesses in the long run. As the first acceding country, we will be ideally placed to take advantage of that future growth.

[Martin Vickers (Cleethorpes) (Con)]

I welcome our accession to CPTPP, which I think will be of great national benefit, but understandably Members across the House will look to businesses in their constituency. The Secretary of State is well aware that many businesses in my constituency in the Humber region are focused on the energy sector, particularly renewable energy. Does she see any great advantages for them?

[Kemi Badenoch]

There are multiple advantages that will accrue to my hon. Friend’s constituency. I do not specifically have figures for the energy sector, but I do have good news relating to Yorkshire and the Humber: 465 businesses are already exporting to Malaysia from Yorkshire and the Humber, and CPTPP will help to boost that region’s economy by around £210 million in the long run. In 2022, Yorkshire and the Humber exported £1.3 billion-worth of goods to CPTPP. Within five years, tariffs of up to 30% will be eliminated on UK exports of machinery to Malaysia, cutting costs for businesses in Yorkshire and the Humber. We will reduce tariffs and non-tariff barriers, which could mean many more companies—such as the jukebox manufacturer Sound Leisure, which already exports to five CPTPP countries—being able to enter more dynamic markets.

The Chair of the Select Committee, the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), raised questions about China, and I promised to address them. On China’s application to accede to the agreement, which I know many hon. Members are interested in, let me first say that there are six economies with applications to join the group—China, Taiwan, Ecuador, Costa Rica, Uruguay and Ukraine—and more may apply. Members have not yet made any decisions on which economies will accede in future.

Every applicant must fulfil three essential criteria, called the Auckland principles, to join the group. First, they must be able to meet the high standards of the agreement. Secondly, they must have a track record of compliance with existing trade commitments. Thirdly, and crucially, they must command a consensus of the whole group. These are strong criteria, and they make it clear that working as a bloc is vital. The purpose of this partnership is to be a growing trade bloc, and we share that ambition. We want this agreement to grow, but our accession has set a clear precedent for those that follow. The robust process that the UK has been through has only reinforced the high standards that the partnership seeks to promote, and it has proved that the bar is not easy to meet.

Oral Answers to Questions

Debate between Kemi Badenoch and Martin Vickers

Thursday 25th January 2024 Commons Chamber

[Kemi Badenoch]

It is really important for us to not misrepresent what is happening on steel. Our steel industry is not disappearing; our steel industry is evolving. We will continue to have significant steelmaking capability in the UK, including producing materials for the industries the hon. Lady talks about. But we should also remember that the changes to Port Talbot are part of the decarbonisation that all Opposition Members have been asking for. This is the biggest single emitter of carbon in the UK and this House voted to reach net zero by 2050. Everything we are doing is to ensure that we do that in a sustainable and sensible way.

[Martin Vickers (Cleethorpes) (Con)]

Following on from the question by my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft), for the sake of clarity, can the Secretary of State confirm that it remains the Government’s position to ensure that the UK has the capacity to produce virgin steel here in the UK?

[Kemi Badenoch]

The Government maintain that we want to ensure that we keep steelmaking capability in the UK. At the moment, we import ore to make steel. When we talk about virgin steel many people assume there are no imports in the supply chain, but there still are, even now, and whatever changes we make will require some imports. However, we are making sure that our steel industry is more resilient than ever before, at a time when it faces oversupply from China and India. That is the real problem faced by the steel industry in all of western Europe. We do a lot with tariff measures, such as steel safeguards—

Oral Answers to Questions

Debate between Kemi Badenoch and Martin Vickers

Thursday 30th November 2023 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

1. What assessment she has made of the potential impact of the comprehensive and progressive agreement for trans-Pacific partnership on small and medium-sized enterprises in the UK.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

The CPTPP is one of the major benefits of Brexit. It has the potential to deliver billions of pounds to our economy and benefits small businesses across the UK. The deal delivers lower tariffs, reduced red tape, and cutting-edge digital provisions that directly support small businesses to trade more. It has an SME chapter committing all countries to make the agreement accessible for SMEs. I know that will be welcome news for my hon. Friend ahead of Small Business Saturday.

[Martin Vickers]

I thank the Secretary of State for her answer. It is great news that we are progressing membership of CPTPP and I welcome what she says about SMEs. Many SMEs will be new to exporting and need expert advice. Will she outline what particular plans there are to help small businesses?

[Kemi Badenoch]

We will ensure that our support offer for SMEs will help firms build their capability to import and export under our free trade agreements. We have started preparing for CPTPP entering into force. We will be producing written guidance on gov.uk to ensure businesses are equipped with the knowledge they need to access those opportunities. Specifically, our export support service, network of international trade advisers, export academy, and in-market support services will also help businesses to access opportunities in CPTPP markets.

Oral Answers to Questions

Debate between Kemi Badenoch and Martin Vickers

Thursday 14th September 2023 Commons Chamber

[Kemi Badenoch]

We have passed the stage where we will be making any changes; we are now trying to ratify the protocol. But the right hon. Gentleman should be reassured: the Government have always been clear that when we negotiate investment protection we do so in a way that does not hinder our right to regulate in the public interest. The UK already has investment agreements containing ISDS provisions with seven of the 11 CPTPP countries and we have never received a successful claim from any investors of CPTPP countries, or in fact investors of any other country with which we have ISDS commitments.

[Martin Vickers (Cleethorpes) (Con)]

I congratulate my right hon. Friend on the progress made with CPTPP. Can she outline what plans the Department has to make UK companies aware of the opportunities that the agreement opens up for them?

[Kemi Badenoch]

My hon. Friend raises an important point, because most of the time, people ask me what CPTPP stands for, let alone what it is and how they can use it—[Interruption.] Well, not my hon. Friend the Member for Lichfield (Michael Fabricant). We would like to make sure that people are aware of it, so they can utilise this free trade agreement as soon as it is on our statute book and ratified across the 11 countries. That is something that our export commission and support service in the Department for Business and Trade will be carrying out, and we will also be supporting MPs in their constituencies during International Trade Week to highlight opportunities that come from all our free trade agreements.

Retained EU Law (Revocation and Reform) Bill

Debate between Kemi Badenoch and Martin Vickers

Thursday 11th May 2023 Commons Chamber

[Kemi Badenoch]

The hon. Lady will know that I was not privy to those conversations. If she writes to me with the specifics, I should be able to provide an answer. What we have talked about changing is the bureaucracy around reporting, and that does not sound like what she raised.

[Martin Vickers (Cleethorpes) (Con)]

As a committed Brexiteer, and having voted in the 1975 referendum to leave the European Economic Community, as it then was, I want to see the benefits of Brexit delivered as soon as possible. But I do recognise the concerns that have been expressed to me by businesses in my constituency, and I think the approach being taken by the Secretary of State is the best one. Could she give an assurance that if I or any Member bring forward recommendations for measures to include in the list, she will make those changes as quickly as can be arranged?

[Kemi Badenoch]

I thank my hon. Friend for his comments. That is exactly what this approach is trying to generate. We need to find the things that we know are holding Britain back, rather than just delete things because no one has found a reason to keep them. I think that if he speaks to businesses in his constituency, he will have many suggestions for measures that may require not complete revocation but reform, and if they are going to be reformed, we need to first keep them and then reform them, rather than first delete them then try to reform them. That is what this approach does.

Oral Answers to Questions

Debate between Kemi Badenoch and Martin Vickers

Tuesday 7th July 2020 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

What fiscal steps he is taking to (a) attract investment and (b) achieve economic growth in northern Lincolnshire.

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

We recognise every region and community is impacted by this crisis. That is why the Government have announced unprecedented support for businesses and workers around the country. That includes 95 million to fund shovel-ready projects across the east midlands to help to provide a boost to the local economy and create jobs, building on over £120 million of local growth funding for Greater Lincolnshire for local projects such as Lincolnshire Lakes housing scheme.

[Martin Vickers]

I thank the Minister for that. The Treasury is giving considerable support to our area, such as through the Greater Grimsby town deal. We are hoping for favourable designation for freeport status, but the most pressing case at the moment is support for the Able marine energy park in northern Lincolnshire. Modest support from the Treasury could help to create 2,000 jobs. Will the Minister, or indeed the Chancellor, agree to meet me and my hon. Friends the Members for Great Grimsby (Lia Nici), for Brigg and Goole (Andrew Percy) and for Scunthorpe (Holly Mumby-Croft) to deal with this?

[Kemi Badenoch]

My hon. Friend rightly champions the strength of his local area as we move to restart the economy and make progress to achieve net zero carbon emissions by 2050. Our renewable energy ambitions will continue to create opportunities at manufacturing centres, such as the Able marine energy park proposal, but I encourage him first to engage with my colleagues from the Department for Business, Energy and Industrial Strategy, as the lead Department on energy and industrial strategy.