Oral Answers to Questions
Liam Fox Excerpts(7 years, 1 month ago)
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Bob Blackman (Harrow East) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
As we begin our questions today, it is appropriate that we recommit ourselves to the values that this Parliament represents. Those who carry out such wicked and depraved actions as we saw yesterday can never triumph in our country. We must ensure that it is not violence, hatred or division, but decency, goodness and tolerance that prevail in our country.
The United Kingdom and Israel have a strong and important trading relationship, with nearly £5 billion in bilateral trade last year. We will continue to liaise closely on strengthening our trading links, including in important sectors such as medical research and development. The Life Sciences Organisation within the Department for International Trade currently supports companies wishing to export to Israel from the earliest stages of research and development through to manufactured medicines and medical devices.
Bob Blackman
I join you, Mr Speaker, and my right hon. Friend the Secretary of State in expressing sincere condolences to the victims of the terrible atrocity yesterday, and particularly to the family of PC Keith Palmer, who died so that we can carry out our democratic duties.
I thank my right hon. Friend for his answer. Companies in the Israeli economy are responsible for more than 100 million prescription drugs consumed in this country every year, and one has recently launched the ReWalk device, whereby people are encouraged to develop. Will he set out what further plans he has to ensure that we benefit from Israel’s pharmaceutical industry?
Dr Fox
UK industry will have a strong and important trading relationship with Israel, and the Department for International Trade supports and will continue to support life science companies from Israel that invest in the UK, and those seeking to export from the UK. The companies range from large multinationals to small and medium-sized companies such as the one my hon. Friend mentioned. We support all stages, whether that is by facilitating investment in research and development or setting up commercial operations, such as manufacturing, to export from the UK.
Helen Goodman (Bishop Auckland) (Lab)
I, too, express my condolences to the families of all those who died, and I wish the very best for those who were injured.
One notable thing about Israel’s trade relationship with the EU is that Israel is part of Horizon 2020. Has the Secretary of State considered whether, after Brexit, we should stay in Horizon 2020 and the European Medicines Agency?
Mrs Theresa Villiers (Chipping Barnet) (Con)
In his trade discussions with the Israeli Government, will the Secretary of State convey the House’s sympathy for and solidarity with Israel, which has so often suffered the same kind of terrorist attack as we suffered in this House yesterday?
Tom Brake (Carshalton and Wallington) (LD)
May I echo the opening words of the Secretary of State and indeed the condolences that have been expressed for the police officer and the families of others affected by this tragedy?
The world-leading Institute of Cancer Research in the London borough of Sutton already does a lot of work with Israel. Can the Secretary of State confirm whether the post-grads who work at the institute, a third of whom come from the European Union, will be able to carry on working in those projects for years to come?
Sir Henry Bellingham (North West Norfolk) (Con)
Suella Fernandes (Fareham) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The World Trade Organisation agreement on trade facilitation entered into force on 22 February 2017 once two thirds of WTO members had accepted the new agreement. This is a very significant event. Once fully implemented, the agreement could add more than £70 billion to the global economy, and of that we expect a benefit to the UK of up to £1 billion.
Mr Speaker
I should say for the benefit of the House, because there was a quizzical air in the Chamber, that Question 2 was withdrawn. That is a situation which is not dissented. I can see that the hon. Member for Weaver Vale (Graham Evans) is in his place, but the question was withdrawn.
Sir Henry Bellingham
I am very grateful to the Secretary of State for the work he is doing to try to secure a bespoke trade deal, and to his Ministers for the work they are doing as well. We do not want to fall back on to WTO rules, but, if we did, what would happen to airlines, digital data flows and trade and services?
Dr Fox
There is a difference between some of the agreements mentioned, which are bilateral agreements, and WTO tariffs that largely apply to goods. We hope to get a comprehensive agreement with our European partners across all the sectors that my hon. Friend mentions so that we will see no interruption to the business as we have it today.
Suella Fernandes
The WTO trade facilitation agreement’s coming into force last month brought about great reforms such as reducing fees on imports and exports and quickening clearance procedures. What impact will the reforms have on UK businesses that are importing and exporting?
Dr Fox
UK exporters in particular will benefit from the customs reforms being introduced, and implementing the agreement will reduce delays at the borders of participating members and improve the trading environment for businesses engaging in international trade, making it easier and cheaper for UK businesses to export their goods across the globe.
Jim Shannon (Strangford) (DUP)
May I associate the Democratic Unionist party with the sentiments that have been expressed for the innocents who were murdered yesterday? Our thoughts and prayers are very much with those who were injured.
With the initial period of this agreement now under way, will the Minister determine how we can enhance and further build capacity in this area? Does he believe that lessons learned here can and will affect our approach to Brexit, trade and negotiations?
Dr Fox
As most European Union countries are already higher than the bar set by TFA, that will not have a huge effect on intra-European trade, but it will have a beneficial impact on European exporters, especially if they are exporting to markets such as sub-Saharan Africa, where the greatest benefit of the trade agreement is likely to be felt.
Geraint Davies (Swansea West) (Lab/Co-op)
Will the Secretary of State give some reassurance to Welsh lamb and sheep farmers, who have faced 40% tariffs under WTO, and ensure that if we do have a trade agreement with New Zealand we will not be flooded with New Zealand lamb?
Dr Fox
When we get to the point at which we begin to have those discussions, we will want to take into account a balance between UK producer interests and UK consumer interests, and we will also wish to ensure that we are making a contribution to a global liberal trading environment that benefits everybody.
Sir Desmond Swayne (New Forest West) (Con)
This agreement is potentially of greatest advantage to the least developed countries, in which we have put very considerable investment. Will the Secretary of State continue to drive forward that agenda?
Dr Fox
Yes, and we have actually invested a large amount of money in supporting the agreement itself and in ensuring that it can be introduced in as beneficial a way in as many countries and as quickly as possible, because, as my right hon. Friend correctly says, this agreement will have the greatest benefit to some of the poorest countries in the world, which is why the United Kingdom, under Governments of both parties, has been so supportive of it.
Alan Brown (Kilmarnock and Loudoun) (SNP)
For well over a century the UK has not had security of food supply, but has instead always relied on imports. What will WTO tariffs of up to 40% do for the price of food for hard-working families already squeezed by the Tory Government’s policies?
Dr Fox
The hon. Gentleman perhaps unintentionally raises this important point: where we have genuinely free trade it benefits consumers, and where we can have an open global trading environment, it is likely to make the incomes of those on low incomes in particular go further. We should welcome an open trading environment, which I hope the Scottish National party does.
Sir David Amess (Southend West) (Con)
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Department for International Trade has three tasks: promoting UK exports to support a growing economy that serves the whole country; maximising opportunities for wealth creation, including through overseas direct investment, to support the current account; and negotiating the best international trading framework for the UK outside the EU.
With your permission, Mr Speaker, I would like to acknowledge Sir Martin Donnelly, who leaves our Department after 36 years in the civil service. He is a great and distinguished civil servant who will be very much missed by my Department and more widely.
Gavin Newlands
Last weekend, we learned that the Secretary of State’s Department is secretly working on a 10-year transitional arrangement with the EU, based on the WTO general agreement on tariffs and trade. Will he confirm that the Scottish Government and all other devolved Administrations are being consulted so that the interests of all the nations of the UK are represented, should a trade deal not be reached in time?
Dr Fox
The Department is not working on a secret agreement with anybody, including the European Union. I think that the hon. Gentleman is referring to press reports about the possible use of WTO rules to ensure a smooth transition at the point when the United Kingdom leaves the European Union.
Peter Aldous (Waveney) (Con)
Barry Gardiner (Brent North) (Lab)
Now that the Secretary of State has revealed to The Sun his plans for a trade Bill in the Queen’s Speech, will he do Parliament the courtesy of publishing a trade White Paper that sets out clearly what markets he wishes to liberalise and what measures he will take in future trade agreements to protect and enhance International Labour Organisation principles, sustainable development, human rights, environmental protection, intellectual property rights, food standards, future options on state-owned enterprises and the ability to nationalise particular sectors? If he develops an informed, consultative international trade policy, the Government may be able to restore confidence that they are holding trade dialogues that are backed by a clear and strategic plan.
Dr Fox
The hon. Gentleman raises an important point. Should the Government intend to introduce legislation on this issue in the Queen’s Speech, we would want a consultative process so that stakeholders could make their views known. It is important that we do that in a very collegiate way, because that is, as he said, the way to maintain and maximise confidence.
Nigel Mills (Amber Valley) (Con)
Henry Smith (Crawley) (Con)
Dr Fox
Just over a week ago, we held our first conference with Commonwealth Trade Ministers. That gave us an opportunity to look at how we might maximise intra-Commonwealth trade and at the differences between our trading systems. That will help us to move towards greater consistency in the rules that we apply so that all in the Commonwealth can get even greater benefit from a system that is growing faster than the global economy and should be much more beneficial.
Heidi Alexander (Lewisham East) (Lab)
Tom Pursglove (Corby) (Con)
Graham Evans (Weaver Vale) (Con)
What influence can my right hon. Friend bring to the showcasing of great British beer in embassies around the world?
Kirsten Oswald (East Renfrewshire) (SNP)
Dr Fox
One problem that we have faced in recent times is that although the European Commission has been relatively forward-leaning on digital issues, European Union members have prevented the Commission from taking forward some of the measures of liberalisation that would, in fact, help this country and others. As we leave the European Union, we will want to see what advantages there are for the United Kingdom in liberalising our economy, especially so that the digital economy and e-commerce can flourish.
Oral Answers to Questions
Liam Fox Excerpts(7 years, 3 months ago)
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Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Government will lead the way in ensuring that developing countries have the opportunity to trade their way out of poverty. While the UK is a member of the European Union, we remain committed to development through the EU, including economic partnership agreements, the generalised scheme of preferences and “Everything But Arms”. We are working closely with the Department for International Development to ensure that the global trading system of the future is as fair and as free as possible.
Dr Cameron
Trade with developing countries is crucial to ensuring jobs and livelihoods, and our commitment to the sustainable development goals. Will the Secretary of State commit to fair trade principles in relation to future trade deals with developing countries to ensure that local populations can benefit sustainably and to complement the work of the DFID staff in my constituency and beyond?
Dr Fox
Let me join the hon. Lady in paying tribute to the fair trade campaign. It is very important in ensuring that farmers receive a fair price for their products, that agricultural workers receive better wages and that agricultural practices are made more sustainable. As Britain leaves the European Union, we will actually have greater freedom outside the common external tariff to be able to do some of the things she recommends.
Mr Steve Baker (Wycombe) (Con)
Whether we look at west African cocoa, east African coffee or Tunisian olives, time and again we find that the cause of unfair trade policy is the European Union. Does the Secretary of State agree with me that once we can set our own tariffs outside the common external tariff of the EU, we will be able to help those countries to trade their way out of poverty?
Dr Fox
This Government are committed to an open and liberal trading system. One of the best ways to help poor countries is to have even greater liberalisation than we have today. When we are outside the common external tariff of the European Union, Britain will have the opportunity to act unilaterally, which will give us new opportunities, as my hon. Friend rightly suggests.
Thangam Debbonaire (Bristol West) (Lab)
The 21st century offers us an opportunity to build on our pride and identity as a nation that promotes human rights, workers’ rights and environmental protection—all part of fair trade principles. How will the Government build on this part of our national identity in trade negotiations?
Dr Fox
We are already playing a full part in that. Britain played a major role in the World Trade Organisation’s arrangement that is going to come into effect in just a short time—the trade facilitation agreement. It will be worth about £70 billion to the global economy, and for some of the poorest countries, such as those in sub-Saharan Africa, it will be worth about £10 billion. We made a major contribution to that, and we should be very proud of it.
John Howell (Henley) (Con)
I have a role as the Prime Minister’s trade envoy to Nigeria. In the context of fair trade, will the Secretary of State join me in encouraging the Nigerian Government to share the benefits of trade more widely with their people?
Mr Ranil Jayawardena (North East Hampshire) (Con)
Derek Thomas (St Ives) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The south-west FoodEx directory connects food and drink companies in Cornwall with buyers across the world. Local companies can also benefit from FoodEx workshops. Cornish companies in all sectors can access the full range of Department for International Trade services. We have launched the GREAT.gov.uk website, and our experienced international trade advisers are supporting new Cornish exporters to step into the global marketplace and helping experienced exporters compete in high-growth markets.
Derek Thomas
In west Cornwall and the Isles of Scilly, a flurry of businesses have been producing food, drink and other goods. There is no doubt about the quality of their produce, but the reality is that very few of those products—food and drink—go beyond Cornish borders, let alone overseas. Will the Minister accept an invitation to meet these producers and help them to expand their markets?
Robert Courts (Witney) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
I launched a trade policy dialogue with the New Zealand Trade Minister last October to consider how we can strengthen our economic ties. Last month, my right hon. Friend the Prime Minister met the Prime Minister of New Zealand and agreed that preparatory work should be undertaken on the potential for an ambitious new free trade agreement between the UK and New Zealand, once the UK leaves the European Union.
Mrs Murray
I warmly welcome the early and constructive dialogue with our colleagues and friends in New Zealand. Will my right hon. Friend do all that he can to explore every opportunity for bilateral trade with New Zealand, including the natural synergies between our rural economies?
Dr Fox
I very much agree. The UK exported over £1.2 billion-worth of goods to New Zealand last year, and opportunities for our rural businesses and farmers will be a very important part of our work as we take forward the dialogue with New Zealand, which I intend to visit over the summer months.
Robert Courts
This year the British New Zealand Business Association, which exists to develop trade between our two countries, reaches its centenary. As someone who has worked in New Zealand, I have first-hand experience of the warmth that exists between our two countries. Does my right hon. Friend agree that there is hope for, and that we look forward to, a great increase in trade between our countries in the years ahead?
Dr Fox
I certainly hope that will be possible, given the freedom that we will have outside the European Union to negotiate such a free trade agreement. It is not just our two countries that will benefit; all countries around the globe will benefit from the new global Britain and our attitude towards global free trade, with all the benefits it brings, especially to the world’s poor.
Barry Gardiner (Brent North) (Lab)
The Secretary of State will know that New Zealand is a land of 30 million sheep—there are six or seven sheep for every person—so has he discussed the impact of a trade deal with the leader of the National Farmers Union? It regards the combination of a 43% World Trade Organisation tariff on sheepmeat and increased market access for New Zealand as potentially fatal to our sheep farmers. How will he protect them?
Dr Fox
As I said in answer to an earlier question, that will be an important part of our discussions. We will want to discuss how we do that with the NFU and others, but we also need to take something into account that does not seem to be mentioned very often, which is the interests of UK consumers in any trade deal that we come to.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Department for International Trade has three tasks: promoting UK exports to support a growing economy that serves the whole country; maximising opportunities for wealth creation, including through overseas direct investment to support the current account; and negotiating the best international trading framework for the UK outside the EU. In terms of investment, I can announce to the House this morning that McLaren will be opening a £50 million manufacturing plant in Sheffield that will create 200 new jobs.
Alan Brown
Given how desperate the International Trade Secretary is to negotiate a trade deal with the US, what guarantees will he give that Scottish farmers will not be undercut by chlorinated chicken and substandard beef imports?
Craig Tracey (North Warwickshire) (Con)
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
Dr Fox
It has been the Government’s clear aim to ensure that there is tariff and barrier-free access once we have left the European Union, and that is exactly what we intend to negotiate—and, of course, the Scottish aerospace industry will be all the stronger for being represented by the whole United Kingdom.
Dr Andrew Murrison (South West Wiltshire) (Con)
Does my right hon. Friend agree that company registration with the use of a Companies House-type model is important to promoting the economies of developing countries that seek foreign direct investment, and is also good news for the UK’s financial services sector?
Louise Haigh (Sheffield, Heeley) (Lab)
Dr Fox
The entire departmental strength is now some 3,000. We are adding some 50 extra staff to our trade policy group this week, and the process will continue. We will increase the numbers further in the months ahead as we look to our WTO obligations, the transposition of our EU free trade agreements, and the FTAs that we have. The current number of about 200 staff will be augmented as we proceed.
Tom Pursglove (Corby) (Con)
As the Secretary of State knows, UK steel is the best in the world. What opportunities does he envisage to promote the sale of it around the world?
Oral Answers to Questions
Liam Fox Excerpts(7 years, 5 months ago)
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Callum McCaig (Aberdeen South) (SNP)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
I have had a number of constructive discussions with the director-general of the World Trade Organisation, Roberto Azevêdo. We have made clear to the WTO membership the UK’s intention to replicate as far as possible our current obligations in order to avoid disrupting our trading relationships or those of our trading partners across the world. The UK will need its own schedules in the WTO regardless of the nature of our future trading relationship with the EU.
Callum McCaig
Given that the list of countries offended by the Foreign Secretary grows longer by the day, what contingencies are being put in place should there be some opposition to the renegotiation of the UK schedule?
Dr Fox
The contingency that the hon. Gentleman asks for is in place, because until new schedules are negotiated and agreed, current schedules will apply. It is worth noting that the European Union itself, having failed to negotiate EU28 schedules, is still operating successfully under the EU15 of 1995.
Philip Davies (Shipley) (Con)
Civitas has estimated that if we were to go to World Trade Organisation terms with the EU, EU businesses would have to pay £12 billion to access the UK market, and UK businesses will have to pay £5 billion to access the EU market. Does the Secretary of State accept those figures? If the Government do not accept them, will he tell us what the Government’s figures are?
Dr Fox
Whatever the actual figures are, there is one point that is more important—the introduction of any impediments to trade and investment in intra-European trade would be disadvantageous to producers and consumers alike. Of course, the Government have made it very clear that we will try to get maximum access to European markets in order to avoid a disruption of trade.
Chris Leslie (Nottingham East) (Lab/Co-op)
Are not these WTO schedules of concessions just one of many examples of the mammoth bureaucratic task that has to be conducted, and should we not be thanking our ambassador to the European Union for the reality check he has given about the decade-long period it will take to extricate ourselves from this process? Does the Secretary of State agree we should not be rushing so headlong into this timetable?
Kevin Hollinrake (Thirsk and Malton) (Con)
The UK has high standards in the workplace and for its products and animal welfare. Does the Secretary of State agree that a free trade deal with zero tariffs with countries that have much lower standards could have a significant commercial disadvantage for many of our companies?
Mr Dominic Raab (Esher and Walton) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
With the current slowdown in the growth of global trade, the UK must be a world leader in championing free trade worldwide and banging a drum for British business. Our measures to support UK business trading globally include a network of advisers in 109 markets, online advice at GREAT.gov.uk and support through UK Export Finance. Both myself and ministerial colleagues have continued to meet businesses in the UK and abroad, including 50 ministerial visits to 34 markets overseas.
Mr Raab
I thank the Secretary of State for that answer. Professor Patrick Minford has estimated that UK trade liberalisation would cut consumer prices by 8%. Does the Secretary of State agree that forging our own free trade arrangements outside the EU presents huge opportunities to ease the cost of living for low-income families?
Dr Fox
I am grateful to my hon. Friend for that question, and he is right to highlight the potential of free trade to reduce the cost of living in this country. Free trade ensures that more people can access more goods at better value, making their incomes go further, whereas protectionism tends to hurt the poorest the most.
Kerry McCarthy (Bristol East) (Lab)
It has been two years since the then Environment Secretary announced with great fanfare plans to sell pigs’ trotters to China. As my written question this week revealed, we are still no closer to signing the pigs’ trotters protocol. If it takes this long to reach an agreement to sell pigs’ trotters, what does that say about our ability to make all the other trade deals we need in the wake of Brexit?
Mr Mark Prisk (Hertford and Stortford) (Con)
Many countries are using non-tariff barriers to block global trade. However, as the Secretary of State is well aware, in countries such as Brazil we are now seeing real progress in the removal of local content regulations. What more can be done to encourage other countries to follow this example?
Dr Fox
I thank my hon. Friend for his work as our trade envoy to Brazil. I was extremely impressed in the meetings I had last week in that country that we are now seeing major attempts not only to open up markets, but to deal with endemic corruption. That corruption is one of the biggest single barriers to trade, and, as the World Bank has made clear, improved governance is a major improvement in the potential for trade.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
The Secretary of State recently reaffirmed the Government’s target to double exports by 2020, but at the autumn statement the Office for Budget Responsibility contradicted this, stating that it expects UK trade to reduce as a result of the UK leaving the EU and the single market. So who is right: does he accept the assessment of the experts of the OBR, yes or no?
Mr Steve Baker (Wycombe) (Con)
Will my right hon. Friend seek to unblock the global trading system by adopting a new open anti-distortions agreement that can deliver free trade and self-government, fight crony capitalism at home and defend against predatory practice abroad, like the one proposed by the Legatum Institute special trade commission?
Dr Fox
I do not think I need to explain to my hon. Friend that I and my fellow Ministers have set out the case for free trade on a number of occasions. We are seeing a slowdown in the rate of global trade growth at present, which is a threat to the prosperity of people across the globe. We must have more open trade, fewer tariffs and fewer non-tariff barriers if we are to succeed in that task.
Barry Gardiner
One of the steps that the Government are taking to expand UK trade is through arms sales, particularly to the middle east. In July, the Committees on Arms Export Controls heard evidence that there was an imbalance in arms sales, with promotion coming at the expense of regulation
“such that in UK practice those things are at odds.”
Does the Secretary of State recognise that imbalance? If he does, what does he propose to do about it? If he does not, has he chastised the White House for the remarks this week that “systemic, endemic” problems in Saudi Arabia’s targeting of civilians in Yemen drove the US decision to halt a future weapons sale, which has the Secretary of State and British policy in this area looking callous and threadbare?
Dr Fox
I thank the hon. Gentleman; this is the first time in my life that I have been grateful for being colour blind. [Laughter.] This country has one of the world’s strictest arms control regimes. It is both robust and transparent, and decisions are scrutinised intensely. I simply do not accept the picture that he paints of the UK’s attitude.
Mr Speaker
I am going to play the role of tie referee and say that the tie of the hon. Member for Brent North (Barry Gardiner) is absolutely beautiful. It is tasteful and interesting, not boring like all too many ties. Now, let us hear from the fellow from Gloucester.
Richard Graham (Gloucester) (Con)
The UK has an excellent tradition of hosting major international sports events—most recently the Olympics, the Commonwealth games, and the Rugby World cup—and other countries hosting such events can benefit from our expertise. In 2018, Indonesia will host the Asian games, which is a great opportunity to highlight the improvements it has made in infrastructure development. Should my right hon. Friend have the chance to visit south-east Asia in the new year, will he highlight British expertise and the help that we can give Indonesia to deliver a magnificent Asian games?
Dr Fox
Yet again, I am able to thank an hon. Friend for working as a trade envoy—this time to Indonesia. My hon. Friend’s specific point applies more generally: the United Kingdom can provide great service sector skills to many countries, which not only helps them to mature their economies, but provides them with the ability to grow their markets, offering an export opportunity for the United Kingdom.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Newcastle international airport plays a vital role in the north-east’s economy, by facilitating over £300 million-worth of exports every year. Like other English regional airports, however, it faces unfair competition on tax as air passenger duty is devolved to Scotland. The Government have failed to commit to mitigate that. What discussions will the Department have with the Treasury to ensure that airports such as Newcastle can continue to play a vital role in international trade?
Sir Desmond Swayne (New Forest West) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Department for International Trade has three tasks: promoting UK exports to support a growing economy that serves the whole country; maximising opportunities for wealth creation through overseas direct investment to support the current account; and negotiating the best international trading framework for the UK outside the EU. Like the UK, my Department is open for business.
Sir Desmond Swayne
Will my right hon. Friend shed some light on the difference between our trade deficit with the EU and our trade deficit with the USA?
Dr Fox
I am pleased to say that we do not have a trade deficit with the US; we have a trade surplus with the US. In fact, we send £100 billion of exports to the US a year, which is 20% of our total, with a £40 billion surplus. The US is responsible for 26% of all our inward investment, and we are responsible for 23% of outward investment to the US. It is a very, very interdependent relationship.
Barry Gardiner (Brent North) (Lab)
By insulting my wife’s taste in ties, the Secretary of State must await her reprimand, but she must wait in line because there are others who wish to reprimand him. The European Scrutiny Committee told off the Secretary of State for going to Brussels and agreeing the comprehensive economic trade agreement between the EU and Canada without first bringing it to the UK Parliament for scrutiny. He undertook to the Committee that he would bring CETA for debate in this House by the end of November, a deadline that he missed. The Committee then set a more generous deadline, but that deadline expired two days ago, on 13 December. Will he tell us whether he actually believes in taking back sovereignty from Brussels—does he or does he not? If he does, repeatedly denying the UK Parliament the right to properly scrutinise such an important trade agreement is a very odd way to go about it. Will he now commit to bring a debate and a vote to the Floor of the House before the European Parliament finally votes on CETA on 2 February?
Mr Speaker
May I very gently say to the hon. Member for Brent North (Barry Gardiner), whom I hold in the highest esteem, that I hope, in due course, his PhD thesis will be published?
Dr Fox
I am grateful to the hon. Gentleman for giving way before Christmas. We did not go against procedure. Owing to parliamentary timetable constraints, we could not offer a debate in the House before signalling political agreement on 18 October. We have committed, and continue to commit, to holding a full parliamentary debate on CETA as soon as possible, and we are working with business managers to arrange it. The European Parliament has now changed the date of the expected vote on the agreement to 2 February 2017, and we hope to have a debate well within that timetable.
James Berry (Kingston and Surbiton) (Con)
Louise Haigh (Sheffield, Heeley) (Lab)
Bob Blackman (Harrow East) (Con)
Helen Goodman (Bishop Auckland) (Lab)
I am sure that the Secretary of State is delighted to be back in the Cabinet, but does he agree that the 1 million jobs that will be put at risk if we leave the customs union matter more than his own career?
Dr Fox
I repeat that the Government have made no decision yet in relation to the discussions and negotiations that we will have with the European Union. We have made no decision yet on the customs union. That will be part of the ongoing discussion and the Government will make decisions based on evidence.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Douglas Chapman (Dunfermline and West Fife) (SNP)
A recent parliamentary question revealed that the involvement of Scottish companies in the recent trade visit by the Prime Minister to India was very limited. What extra effort can the Secretary of State make to ensure that Scottish companies are better represented by the UK to support them in exporting into new international markets?
Dr Fox
We have repeatedly said that this Department is open to all businesses in the United Kingdom when it comes to seeking our support for exports, and I hope that the Scottish Government will encourage businesses in Scotland to work with the Department for International Trade, so that we can maximise that. We have made that offer, and we hope that they will take it up.
Henry Smith (Crawley) (Con)
Dr Fox
We have repeatedly set out our worries about the slowdown in the growth of global trade. That has implications across the globe. It is worth making the general point that we need more free trade because it increases global prosperity. Increasing global prosperity leads to greater political stability, and greater political stability leads to greater global security. It is not possible to disaggregate those different elements.
World Trade Organisation
Liam Fox Excerpts(7 years, 5 months ago)
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The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The United Kingdom is a founding member of the World Trade Organisation (WTO). In addition to the general obligations of membership, all WTO members undertake specific commitments in their goods and services schedules: WTO members’ goods schedules set out upper limits for tariffs and detail any tariff rate quotas, and WTO members’ services schedules set out commitments and reservations across all sectors and list specific sectoral commitments and reservations.
The UK’s WTO commitments currently form part of the European Union’s schedules. When we leave the EU we will need UK-specific schedules. In order to minimise disruption to global trade as we leave the EU, over the coming period the Government will prepare the necessary draft schedules which replicate as far as possible our current obligations. The Government will undertake this process in dialogue with the WTO membership. This work is a necessary part of our leaving the EU. It does not prejudge the outcome of the eventual UK-EU trading arrangements.
[HCWS316]
Trade Foreign Affairs Council and Notification of UK Opt-in
Liam Fox Excerpts(7 years, 5 months ago)
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The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
My noble Friend the Minister of State, Lord Price has today made the following statement:
The EU Foreign Affairs Council (Trade) took place in Brussels on 11 November 2016. I represented the UK at the meeting. A summary of the discussions follows.
Modernisation of Trade Defence Instruments (MTDI)
Over breakfast, the presidency’s latest compromise proposal was discussed, which included suggestions for how to limit use of the Lesser Duty Rule (LDR) in particular circumstances. Commissioner Malmström underlined that limitations to the LDR would be the exception and not the rule and committed to provide further evidence in support of the proposal.
Given that there were still outstanding issues to resolve, no vote took place at trade FAC. However, given the support from a significant number of member states, work will continue at working level and Coreper, where the presidency will aim to finalise a comprehensive mandate for trilogues before the December European Council.
WTO, Trade in Services Agreement (TiSA), Environmental Goods Agreement (EGA).
Malmström said the EU needed to work with others to shape the possible outcomes for the 11th WTO ministerial conference in Buenos Aires in December 2017.
Malmström reiterated that concluding TiSA was firmly in the EU’s interests. On the EGA, she said that conclusion at the 3-4 December ministerial was a real possibility. The outstanding EGA issue of bicycles was again discussed.
EU-US (TTIP)
Commissioner Malmström recapped on recent progress on TTIP. Discussions supported the need for a realistic approach and I underlined our continued support and suggested that we wait to see how the political context evolved.
EU-Japan
Recent negotiations had gone well, but further progress was needed on non-tariff measures, services and procurement.
It is difficult to know how the stalling of TPP might affect EU-Japan.
EU-Mercosur
The October round with Mercosur, the first for four years, had gone well, with Mercosur showing more flexibility on goods and engaging on a wider range of issues.
Ukraine Autonomous Trade Measures (ATMs)
Commissioner Malmström sought to reassure member states that safeguards would limit any negative impact on the EU of the proposed further ATMs, which go beyond the provisions of the EU-Ukraine free trade agreement. It was important to bear in mind the broader political context for the proposal.
Ecuador accession to the EU-Andean FTA
At the signing ceremony of the protocol for Ecuador’s accession to the Andean FTA, I signed on behalf of the UK.
The UK also opted in to the Council decisions on signing, provisional application and conclusion of the protocol of accession of Ecuador to the Andean FTA, insofar as they relate to the temporary presence of natural persons for business, otherwise known as Mode IV. The Government are committed to taking all opt-in decisions on a case-by-case basis, putting the national interest at the heart of the decision-making process.
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Department for International Trade (Non-executive Board Members)
Liam Fox Excerpts(7 years, 6 months ago)
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The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
I wish to update the House on the appointment of non-executive board members (NEBMs) at the Department for International Trade.
I am pleased to announce to the House that three independent NEBMs have been appointed to sit on our departmental board. A further NEBM has been appointed as chair of the board for UK Export Finance, who will also sit on our departmental board.
Those NEBMs are:
Mr Simon Walker, outgoing director-general of the Institute of Directors, as lead non-executive board member and also chair of the Nominations Committee.
Ms Julie Currie, chief financial and reporting officer at the Lloyds Bank Foundation, who alongside her duties as a non-executive board member will chair the Audit and Risk Committee.
Dr Pippa Malmgren, founder of DRPM Group, a respected political analyst with trade policy experience who will act as a non-executive board member.
Ms Noel Harwerth, current chair of GE Capital Bank Europe, who will join the UK Export Finance Board as chair, and will also be a NEBM on the DIT departmental board.
This is a significant milestone for our Department and I am proud of the talent and expertise represented on the board. Our NEBMs’ extensive business knowledge and experience of global trade and corporate governance will be of huge value to me and the Government as we shape the Department and forge the UK’s trade agenda and promote the UK as a place to do business with.
The new board members will work closely with me, my ministerial team and the executive team to provide independent scrutiny and advice and to assist the Department in delivering our priorities, which include an effective long-term strategy for the UK’s trade policy; promotion of UK exports; inward and outward investment; take-up of UK export finance; and promotion of the UK through the GREAT campaign. They will also advise on performance and the effective management of the Department.
These appointments come at the end of a highly competitive process. We launched our search for NEBMs in July through advertisements on the Centre for Public Appointments and Women on Boards websites. We received 181 applications, including exceptionally well-qualified individuals from a wide range of backgrounds, demonstrating the high level of interest there is in international trade.
[HCWS263]
Oral Answers to Questions
Liam Fox Excerpts(7 years, 6 months ago)
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Tom Pursglove (Corby) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
While we remain members of the European Union, discussions we have are limited by our considerations of the common commercial policy and our duties of sincere co-operation. We cannot negotiate and conclude trade agreements while we are a member of the European Union, but we can have discussions on our future trading relationships. The UK will continue to be a champion for free trade, and back the EU’s current and ongoing negotiations.
Tom Pursglove
I am very grateful to the Secretary of State for that answer. Does he agree that the decision to leave the European Union presents this country with an enormous opportunity to re-engage with our Commonwealth friends and to forge proper trading links with them once more?
Dr Fox
Yes, we are keen to seize all the opportunities that leaving the EU presents, and so, too, are many of our international partners, who recognise the attractiveness of doing business with the UK. I will be accompanying the Prime Minister on a trip next week to India to take forward some of those opportunities.
Barry Gardiner (Brent North) (Lab)
Does the Secretary of State see any irony or contradiction in his development of these new free trade and investment agreements, which involve the harmonisation of rules and standards with other countries—even obedience to supranational commercial courts—and the referendum instruction from the British people that we should leave membership of the largest free-trade agreement in the world so that we can set our own rules and take back our sovereignty?
Dr Fox
No, because the European Union is not simply a trading organisation. Were it simply a trading, and not a political, organisation, the referendum result may have been different. One of the major problems with the European Union, and one of the reasons why the public voted to leave, was that there is such a strong supranational imposition on the United Kingdom.
Mr Peter Bone (Wellingborough) (Con)
As we are leaving the EU, and everybody knows it, why do we not just get on and start negotiating trade deals? After all, the EU can hardly punish us in the future.
Kirsty Blackman (Aberdeen North) (SNP)
Has the UK managed to get the World Trade Organisation’s 160-plus members to agree that we will be a continuing member, rather than a new member, of the WTO? If the UK is not able to have negotiations just now, how will it get that agreement?
Michael Fabricant (Lichfield) (Con)
As my right hon. Friend has already said, to do a bilateral trade deal we need to be out of the European Union. Does he therefore deplore, as I do, the High Court’s decision this morning to rule against the Government and say that the will of the people in the EU referendum on 23 June is still subject to parliamentary approval?
Dr Fox
The Government are disappointed by the Court’s judgment. The country voted to leave the European Union in a referendum approved by Act of Parliament. The Government are determined to respect the result of the referendum. This judgment raises important and complex matters of law, and it is right that we consider it carefully before deciding how to proceed.
Kevin Brennan (Cardiff West) (Lab)
Will the Government respect the ruling of the Court in this matter, and also respect Parliament? If they want to get on with these trade deals, should they not accept that Parliament should have its say, as the Court has ruled?
Thangam Debbonaire (Bristol West) (Lab)
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The people of Britain voted to leave the European Union and that is what we will do. It is the job of this Department to maximise the UK’s trade opportunities, whatever the relationship with the EU that the Government ultimately adopt. The Prime Minister has made it clear that the UK’s agreement with the EU will get the best deal for Britain at home and abroad.
Jonathan Edwards
Via our membership of the customs union the UK has access to more than 50 international trade deals, which according to a parliamentary answer I received accounts for 15% of UK exports. In the event of Brexit outside the customs union, what estimate has the Secretary of State made of the length of time it will require to renegotiate those deals, bearing in mind that he will not be able to begin his negotiations until after exit in March 2019?
Dr Fox
There are a number of errors in what the hon. Gentleman has said. The EU currently has 36 free trade agreements covering more than 50 countries. It is entirely possible for us to be able to transition those into UK agreements and we are free to discuss them with countries while we are still a member of the European Union. Our aim will be to have minimum disruption of trade and no gap in market access for British companies.
Richard Fuller (Bedford) (Con)
Although I welcome the Canadian-EU trade agreement, does my right hon. Friend share my concerns at the elements of protectionism that have emerged in this agreement? Do they not indicate that there are advantages to the United Kingdom outside the customs union in negotiating its own deals more rapidly, in defence of free trade?
Dr Fox
In recent history, most of the trade deals done in the world have been bilateral, because it is clearly easier to get country-to-country agreement. One of the reasons why the European Union does not have an agreement with the United States, China, Japan, India or the Gulf is that it is rather difficult to negotiate with 28 different partners, especially if they retain a veto.
Ian C. Lucas (Wrexham) (Lab)
The creative industries are some of Britain’s most competitive and successful industries, and they depend on worldwide access and negotiation with many multinational organisations. How, post-Brexit, will the UK maintain relationships with multinational organisations such as the EU and worldwide broadcasting organisations?
Dr Fox
The hon. Gentleman is absolutely right. The creative industries are incredibly important, and one of the jobs of the Department for International Trade is to promote them. When we take trade delegations abroad and when we make representations to other Governments, we will fully take those industries into account. Where we have got areas of excellence in our economy, we need to promote them—sometimes more than we have done in the past.
Richard Graham (Gloucester) (Con)
The Secretary of State knows about the growing opportunities for trade and investment, in both directions, with the countries of south-east Asia. Does he agree that next year’s 50th anniversary of the Association of Southeast Asian Nations offers a great chance for the UK to demonstrate what a superb international platform we can be for all those countries’ exports and investment in both directions? Will he commit to DIT offering some finance to help this great session to go well?
Dr Fox
I will certainly offer a great deal of help and goodwill. Mindful of the forthcoming autumn statement, I am not going to offer any sort of finance in advance of the Chancellor’s permission being granted.
May I say what a great job my hon. Friend the Member for Gloucester (Richard Graham) does as one of our trade envoys? Our trade envoys have contributed hugely to our recent export gains. He makes the important point that trade has to operate in both directions, both in exports and imports and in outward and inward investment. It is very important that we maintain a balance if we are to have a chance of reducing our current account deficit.
Mr Alan Mak (Havant) (Con)
Amanda Milling (Cannock Chase) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Department for International Trade has three tasks: promoting UK exports to support a growing economy that serves the whole country; maximising opportunities for wealth creation, including through overseas direct investment to support the current account; and negotiating the best international trading framework for the UK outside the EU. Like the UK, my Department is open for business. Following my statement at our previous session of departmental questions, we received 111 applicants, in an international competition, for the post of permanent secretary, and we will shortly announce the successful candidate.
Amanda Milling
As a country, we need to export more. There are a lot of barriers to overcome to get businesses to start exporting or even to consider exporting, but we have a real opportunity to get existing exporters to export to more markets. Will my right hon. Friend outline the measures that the Government are taking to encourage and support small and medium-sized businesses to expand the number of markets to which they export?
Mr Speaker
Order. We must not expand the length of questions, I am afraid. I am sure it is a very important point, but let us have the answer.
Dr Fox
I apologise for taking longer than usual to get to the Dispatch Box, Mr Speaker—the last time I take my own advice about going to the gym to get fit. It is important to get more small and medium-sized enterprises exporting. If we look at the UK’s performance we see that only 27% of our GDP is accounted for by exports, whereas for Germany it is 48%. A lot of that difference is accounted for by a lack of SME exports. We will be announcing a range of measures soon, and there will be a pack setting out those measures available for all Members of Parliament so that we can all help the SMEs in our own constituencies.
Barry Gardiner (Brent North) (Lab)
The Government Front-Bench team has tried to suggest that the High Court decision that Parliament should have a vote before triggering article 50 is in some way antidemocratic or thwarts the referendum result. Will the Secretary of State acknowledge that the vast majority of Members in this House are now committed to honouring the decision to leave the EU, but that democracy demands that the terms of our leaving must be subject to the proper advance scrutiny and consent of this democratically elected House, and not negotiated in secret and smuggled through without the support of this sovereign Parliament?
Dr Fox
There will be numerous opportunities for the House to examine and discuss what the Government are negotiating. When we are clear about the position we will adopt, article 50 will be triggered, but given the nature of the judgment this morning we will now have to await the Government’s appeal to the Supreme Court.
Mrs Theresa Villiers (Chipping Barnet) (Con)
Dr Fox
As I said earlier, the EU has some 36 free trade agreements, which cover more than 50 countries. A very large number of those have already made representations to the United Kingdom to say that they would like those agreements to continue. We will explore and discuss that, because, as I have said, our aim is to have no break in access to markets and to achieve the transition as smoothly as possible, with minimal disruption to the international trading environment.
Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)
Dr Fox
I take an intense personal interest in this area, from long experience. I am delighted to see David Frost in his new position—he was so pleased with our policy he joined the company. It is very important that we get reductions in tariffs. One issue I will be raising in India next week is the very high level of tariff against scotch whisky there, to see whether we can make major reductions.
Jeremy Lefroy (Stafford) (Con)
Dr Fox
May I first praise the work of UKEF? As a Government export credit agency it is the world leader and its practices are second to none. However, we are always trying to streamline and improve, and in fact have appointed a new chairman for UKEF, who will be announced shortly. When they are in place they will certainly be shaking up the organisation.
Mr Ben Bradshaw (Exeter) (Lab)
Some 80% of the fish caught around our coastline in the south-west goes straight for export to the rest of the European Union, and there is huge concern in the industry about the impact of tariffs if we leave the single market. Given that concern, and the excellent news from the High Court, would it not be wise of the Government not to invoke article 50 as early as March?
Daniel Zeichner (Cambridge) (Lab)
The Minister repeated the mantra that he wants the best possible deal for the life sciences sector, but does he agree with industry leaders that we need to be part of a European-wide regulatory system? A simple yes or no will suffice.
Andrew Rosindell (Romford) (Con)
Mr Speaker
Not least we will bear in mind the importance of referring to international trade in responding to the right hon. Lady.
Several hon. Members rose—
Oral Answers to Questions
Liam Fox Excerpts(7 years, 8 months ago)
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The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
May I first say what a pleasure it is to see the hon. Lady in her place looking so healthy and radiant? It is especially a pleasure for her neighbouring MPs to see her.
My Department already has a strong and capable trade policy team, which has doubled since 23 June. In the next two years, we will be developing that team to build the world-class negotiating strengths needed to deliver the best outcomes for the UK. In terms of negotiators, we have already had strong expressions of interest from individuals, organisations and Governments.
Thangam Debbonaire
I thank the Secretary of State for that answer, but will he reassure my constituents that the trade negotiators will speak to strategically important sectors such as aerospace, which employs and trains hundreds of people in Bristol, before they begin detailed negotiations, so that we may guard against horse trading between sectors, which could damage our crucial role in aerospace and other such significant sectors?
Dr Fox
The hon. Lady is absolutely correct. It is a question not simply of having a single team, but of having the expertise to deal with specific sectors as well as in-country knowledge. We will certainly ensure that we build a core ability among those negotiators and bring in the sector experts who are so important in getting the sort of deals that she correctly outlines. That is especially important in areas such as the west country.
Mr Steve Baker (Wycombe) (Con)
A team of skilled, experienced, first-class international trade negotiators has been assembled at the Legatum Institute’s special trade commission. Will my right hon. Friend consult the commission and listen to its proposals for a much larger prosperity zone than the European Union?
Dr Fox
As I said, the expressions of interest have been wide: they have been from individuals, organisations and Governments. All those who are willing to put their talents at our disposal are extremely welcome. We will be looking at those individuals and the strengths they have in terms of sectoral and in-country knowledge, and we want to draw from the best that is on offer.
Tom Brake (Carshalton and Wallington) (LD)
Can the Secretary of State confirm whether he is likely to hire any consultants to manage these trade negotiations? According to a headhunter I was speaking to a couple of weeks ago—[Laughter.] Not for my purposes. According to a headhunter I was talking to a couple of weeks ago, the head of a trade negotiating team, if hired as a consultant, would cost around £750,000 a year.
Dr Fox
It is nice to see that the Lib Dems are looking forward to repeating their election success at the next election. I always think it is nice for politicians to cover all their options. We do not intend to create a standing army of bureaucrats that would be expensive to the taxpayer. We are looking to see how most effectively we can create the skills and the cadre of negotiators we will require.
Mr Ranil Jayawardena (North East Hampshire) (Con)
I welcome the President of the Board of Trade and his Ministers to their place. May I follow up on the previous question by saying that those in the private sector surely have a lot of experience and insight to offer in particular markets? Will he assure the House that the private sector will be consulted and its skills harnessed and welcomed by the Government?
Dr Fox
That is correct, but I would say to counterbalance that that we also have a great deal of expertise inside Whitehall Departments, and it seems to me it would not necessarily be a good use of taxpayers’ money to contract out all these functions when we have the ability to get that knowledge into the negotiations from inside the Departments we already have. I think that a judicious mix between the two would be the appropriate way forward.
Barry Gardiner (Brent North) (Lab)
I welcome the Secretary of State and his team to this exciting new Department and look forward to working with them to promote British trade across the world. I also welcome his progress in recruiting international trade negotiators, although it seems that they may have to wait some time before they can do any actual negotiating. Does he accept that under the current EU treaty the UK does not possess competence—the right to negotiate separate trade deals—and will he confirm that the UK will assume competence not when article 50 is triggered, but only when the UK actually leaves the EU?
Dr Fox
May I reciprocate by welcoming the hon. Gentleman to another one of his many roles in the House of Commons? Let me be very clear that while we are not able to negotiate in terms of concluding a deal while we are members of the EU, there is nothing to stop us having discussions and scoping out future agreements, and I can announce to the House that as of last week we have now concluded a deal to set up a trade working group with India to look at how we will remove barriers to trade before negotiating a free trade agreement on our exit from the EU.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Dr Julian Lewis (New Forest East) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
We will continue to be a powerful advocate for free trade by playing to Britain’s strengths as a trading nation and forging our own new trade deals around the world. Fifty-six per cent. of our export value and two thirds of inward investment projects are with non-EU countries. My Department has the experience and expertise in trading outside the EU to grow our significance as a global trading nation even further.
Dr Lewis
In order to maximise the benefits of leaving the EU, the Prime Minister has appointed three excellent Cabinet Ministers to run the Department for International Trade, the Foreign Office and the Department for Exiting the European Union. Can the Secretary of State assure us that the machinery exists to enable them to follow the example of their illustrious predecessors by adopting the mantra “All for one and one for all”?
Dr Fox
That is a difficult one! I am grateful to my right hon. Friend for his question. I am reticent about indulging in personality politics but I am glad to see that he was as able to read the August press as I was. When it comes to our commitment to delivering on Brexit, he can be in no doubt that we will be working together as a tight team to ensure that that happens as soon as we can achieve it on behalf of our country, having made all the necessary preparations.
Mr Speaker
I am sure we all remember Tony Benn’s adage that it is not about personalities but about the issues.
Mr Jim Cunningham (Coventry South) (Lab)
Mr Mark Prisk (Hertford and Stortford) (Con)
On 24 November, I am hosting an exporters summit for businesses in the M11 area. I thank officials in the Department for their fantastic support. Given the importance of winning new trade opportunities, does the Secretary of State agree that all Members have the chance to play their part in ensuring that more British firms export to not only Europe, but the whole world?
Dr Fox
I congratulate my hon. Friend on his personal commitment to trade and the practical way in which he is demonstrating it. He makes a useful point. All of us should encourage businesses in our constituencies to export. In a nation that built itself upon free trade, it is disappointing that only 11% of businesses export. I hope that my Department will help all Members improve that position and create the expertise required to get all parts of the United Kingdom exporting to all parts of the globe.
Mr John Spellar (Warley) (Lab)
Will the Secretary of State explain to our European partners the huge benefit to their industries of car and truck sales to the UK and ensure that there are no obstacles to our own vehicle makers selling to the EU? While he is at it, will he persuade other Departments to behave like their European counterparts and support domestic industry and buy British?
Dr Fox
On the latter point, the GREAT campaign has been moved to the Department for International Trade and I am keen for it to encourage people in this country to buy British where possible. He makes an important point about the wider negotiations in that the European Union has a huge trade surplus with the United Kingdom. It is more in their interest than ours—if that is possible—to maintain an open, free-trading environment.
Adam Afriyie (Windsor) (Con)
Currently, 21 trade envoys deal with about 50 markets around the world, yet with the huge opportunities available post-Brexit, does my right hon. Friend agree that it may be wise to look at boosting both the number of trade envoys and the resources available to our people on the ground overseas?
Dr Fox
The programme of prime ministerial trade envoys set up by the previous Prime Minister has been extremely successful and has delivered notable results given the resources initially allocated to it. The Department and No. 10 are looking at how we can improve on the success of that programme, which will depend upon the distribution of DIT’s staff overseas. I hope to make an announcement about that programme in the near future.
Luke Hall (Thornbury and Yate) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
I travelled to the US in July and had extremely productive meetings with the US trade representatives, senior White House officials, and business leaders. My message was that Britain remains open for business and that we place continued importance on the commercial relationship between the UK and the US, our largest single trading partner.
Dr Fox
The US is the south-west’s third-largest export market with £1.59 billion-worth of goods exported in the year to March 2016, including everything from aerospace, as mentioned by the hon. Member for Bristol West (Thangam Debbonaire), to cider and cheese. We want to expand those opportunities. I have already announced that we will open three new trade offices in the US in Minneapolis, Raleigh-Durham and San Diego. We need to look at where there are markets and not simply operate on a geographical basis.
Barry Gardiner (Brent North) (Lab)
The Secretary of State will acknowledge that the most important ongoing discussions with the USA are on the Transatlantic Trade and Investment Partnership. Does he therefore find it strange that although the UK has voted to leave the European Union in order to reclaim parliamentary sovereignty in this country, the Government, unlike their EU counterparts, have still not made available any provision for Members of Parliament to scrutinise the secret text of the TTIP agreement, despite having promised to establish a reading room securely for this purpose in February?
Dr Fox
While we remain in the EU, we will continue to push all free trade agreements possible, because we believe in global trade liberalisation; that includes the Government’s position of support for TTIP. It remains the United States’ clear priority to get this agreement, but I think the hon. Gentleman will accept that given the comments that have come from both France and Germany in recent weeks, and the fact that we have elections next year in both countries, the future of TTIP, at least in the immediate future, looks less than utterly secure.
Mr David Nuttall (Bury North) (Con)
Dr Fox
There are indeed enormous opportunities with Commonwealth countries, and we will be wanting to explore with a number of those exactly how we might take forward trade working groups along the lines that we have already announced with Australia and with India. However, I point out that although we have political links with Commonwealth countries, they are not, in terms of economics and trading, homogenous. Therefore, there will be a great difference between the biggest markets and some of the smaller markets, although we will want to take a look at those that may be developing markets in the future.
Wendy Morton (Aldridge-Brownhills) (Con)
Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
The Department for International Trade is a Department for the whole UK. I visited Scotland last month, met the Cabinet Secretary for the Economy, Jobs and Fair Work, and offered my support to Scottish businesses. The Export Hub is currently touring Scotland, with trade experts providing advice to 252 first-time exporters, from just two Scottish tours. Its focus is on demonstrating real live business opportunities that businesses in any part of the UK can apply for.
Roger Mullin
I thank the Minister for that response. The attraction of worldwide entrepreneurs to work in Scotland is a particular form of investment that needs encouraging. Will he speak to his colleagues and encourage a complete review of tier 1 entrepreneur visas, as current barriers have led to rejection rates of about 70%, thereby harming investment and growth?
Dr Fox
The visa regime is constantly being reviewed by my colleagues at the Home Office, and I take note of the hon. Gentleman’s comments. In terms of having an open economy, we must welcome the concept of free trade, and ensure that we have a low-tax, low-regulation economy and access to skilled labour. The United Kingdom as a whole has a number of advantages, not least that we speak English and that we are at the centre of the world trading time zones.
Mr Peter Bone (Wellingborough) (Con)
When he was the keynote speaker in Scotland of the Go movement, the Secretary of State will remember how much and how many people there welcomed the fact that we had the opportunity to exit the EU and increase trade opportunities. Will he lay to rest the lie that everyone in Scotland is against leaving the EU?
Dr Fox
Two things are clear: the people of Scotland voted to remain part of the United Kingdom; and the people of the United Kingdom, with an equal vote in every part of this country, voted to leave the European Union. We are taking the decision as a United Kingdom, not as separate parts of it.
Mr Alan Mak (Havant) (Con)
The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)
This is the first time that I have had an opportunity to set out the new Department’s responsibilities. We have three tasks: promoting UK exports of goods and services to support a growing economy that serves the whole of the United Kingdom; maximising opportunities for wealth creation through supporting foreign direct investment with a renewed focus on overseas direct investment to support the current account; and delivering the best international trading framework for the UK outside the European Union, including through building our capacity to negotiate and administer a national trade policy. Like the UK as a whole, the Department for International Trade is open for business, and I am pleased to say today that we will now demonstrate that by launching an open international recruitment for a new permanent secretary, which gives me an opportunity to thank very much Sir Martin Donnelly for his fantastic work in helping build the new Department.
Mr Mak
I congratulate the Secretary of State and his ministerial team on their appointments. Later today, the fourth industrial revolution will be debated in the Chamber for the very first time. Will my right hon. Friend commit to helping small and medium-sized enterprises involved in new and emerging technologies to export and to secure more overseas clients?
Dr Fox
May I first congratulate my hon. Friend on securing a debate later this afternoon? The Department for International Trade supports cutting-edge British technology companies to take advantage of overseas opportunities. Working closely with industry partners such as Tech City UK, techUK and our network of international trade advisers, we assist SMEs to scale up, reach their export potential and win overseas business. Companies have the opportunity to take part in focused trade missions, key tech industry events and meet potential buyers, and we will be setting out new ways in which we intend to maximise that in the coming months.
Barry Gardiner (Brent North) (Lab)
The Secretary of State will be aware that, in the automotive business, the original equipment manufacturer focuses on the stability of its supply chain, which is typically sourced from many different countries. Has he identified those supply chains in the automotive sector in which the involvement of UK companies would violate country of origin rules once the UK has left the EU, and what advice has his Department given to those companies?
Dr Fox
The country of origin complications is of course tied up with the point that was made earlier about the World Trade Organisation and the EU schedules. The WTO is still working on EU 15 schedules having not yet ratified EU 28, so the way in which it operates still has some way to go. The hon. Gentleman is quite right in looking at country of origin; it is one of the issues that the Government will look at as a whole when considering the options for our future relationship with European Union and outside.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
Dr Fox
I am grateful for all job applications—formal and otherwise. Whether we have a post-sanctions relationship with Russia will depend on Russia’s international behaviour, and we can only look forward to that business opportunity when we get the appropriate international behaviour by the Putin regime. When that occasion arises, if it does, I am sure that my hon. Friend has now made his well-known interest in that area a formal job application.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The latest quarterly review published by Scottish Engineering shows a slump in orders, a sharp fall in output volume and a drop in employment levels, with companies blaming the uncertainty caused by the decision to leave the EU. Can the Secretary of State tell us what he expects the effects will be on Scottish business exports if the UK withdraws from the single market?
Dr Fox
Industry dislikes uncertainty, as the hon. Lady says, but I would add two uncertainties into the equation. The first is the uncertainty over Scotland’s fiscal position. We have seen the deterioration in the position, which makes me very grateful that the people of Scotland took the sensible decision to remain in the United Kingdom. The second is the uncertainty posed by the Scottish Government and their constant reference to a second independence referendum. I can think of no greater cause of uncertainty for Scottish business investment.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
Dr Fox
Switzerland is still negotiating its trade agreement with India, but my right hon. Friend is correct that leaving the EU will give the UK greater freedom to strike its own trade agreements, including with some of the largest and fastest-growing economies in the world. As he will well know, these will not necessarily be straightforward, as these countries are tough negotiators, but it would be much simpler to negotiate a bilateral agreement, and they have shown greater willingness to negotiate a bilateral deal outside the complications that sometimes come with an EU free trade agreement, which is often a political agreement rather than a pure FTA.
Mr Speaker
Switzerland also has its own unique selling point, called Roger Federer. Just thought I would mention that.
Mr David Hanson (Delyn) (Lab)
The Japanese Government have thrown a huge cold bucket of water over Brexit, with their announcement that UK investment from Japan might be threatened. Is not access to the single market key to calming Japanese nerves?
Dr Fox
I had a constructive meeting with the Japanese ambassador earlier this week. It might be worth reiterating what he said in his “Today” interview:
“There is no indication so far I have received from Japanese industries that they are contemplating an exit from the UK economy because they like it here and they have benefited from working in the UK.”
That will continue because the economic fundamentals of this country remain extremely strong thanks to this Government and no thanks to the Opposition.
Robert Jenrick (Newark) (Con)
We know that politicians love to don high-vis jackets, walk around factories and stand next to manufacturing goods, but the reality is that 79% of our exports are in services. The UK is the world’s second biggest exporter of services, and all the most successful export nations play to their strengths. Will my right hon. Friend assure me that, in setting the strategy for his Department and choosing personnel and trade missions for the future, he will focus on services as much as on goods?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State will know that there is a very healthy all-party manufacturing group. Will he come and speak to us soon, and also look at our Manufacturing Commission and our campaign, Exported by Britain? We would love to talk to him.
Mims Davies (Eastleigh) (Con)
Chris Bryant (Rhondda) (Lab)
I warmly endorse what the Secretary of State has just said about Russia. I am glad he is adopting that attitude, but may I urge him to extend the same attitude towards North Carolina? I think it bizarre that he has opened a new office in North Carolina, when Deutsche Bank, PayPal and a string of other businesses and many US states are boycotting North Carolina because of its ludicrous homophobic new policy in relation to transgender people.
Dr Fox
I made the point earlier that what we need to do to provide certainty about jobs and profits in the United Kingdom is to be in the markets where we have the greatest maturity and the greatest potential for value. That means, in the United States, not just looking at the established areas where we have personnel, but looking to where we have growing markets that can prove to be of value to the United Kingdom, its people and its businesses.
Richard Benyon (Newbury) (Con)
Given that in two decades’ time, one in four people on this planet will be African, will my right hon. Friend give an assurance that his Department will focus on trade in Africa, because that is a sure way to keep the economies of that continent fully functioning and stable?
Dr Fox
My hon. Friend is right. We will also require to see greater co-operation between Government Departments and a cross-Government approach to Africa. I expect to make an announcement shortly about a joint visit by myself and the Secretary of State for International Development to Africa in the coming months.
Mr Speaker
I am most grateful to the Secretary of State and to colleagues. There is no shortage of demand in this session, and I dare say that that will continue.