Trade with the European Union

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Monday 21st March 2022 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, perhaps it goes without saying that we are deeply concerned about the news from P&O Ferries. Ministers are speaking to the company to try to understand the impact on workers and passengers, and to do all we can to ameliorate it. Speaking personally, having formerly been a chairman of some of Britain’s largest companies, I would never have behaved in the way that P&O has.

[Viscount Waverley (CB)]

My Lords, I declare that I am co-chair of the all-party parliamentary group on trade and investment. Judging from the Minister’s previous response, do figures indicate that the UK has aligned its trade interests away from the EU, with businesses calling for a reset along the more advantageous terms that Norway enjoys, such as, for example, the British Chambers of Commerce underlining the impediment of requiring a fiscal representative based in the EU for VAT-related issues? Alongside trade sits investment. Could the Government outline their strategies to strengthen investment flows to and from the European Union specifically?

[Lord Grimstone of Boscobel (Con)]

My Lords, the noble Viscount includes a number of points in his question. As Minister for Investment, one of my top priorities is securing increased investment flows with Europe. On trade, I am pleased to say that he is right: over the past two years, there have been noticeable changes in UK trade. Of course, factors associated with the Covid pandemic, global recession and EU exit do not always make it easy to disentangle that, but I am confident that both trade and investment will increase in due course.

EU: Imports

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Tuesday 1st February 2022 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My noble friend raises an important point. We are absolutely committed to ensuring that businesses get the support they need. It is very interesting that, in 2021, trade with non-EU nations fared relatively better than trade with the EU. Goods imports from other countries exceeded the value of goods imports from the EU for the 10th month in a row. This is global Britain in action.

[Viscount Waverley (CB)]

My Lords, if the Minister is so sure about the situation in Dover, would he be minded to set up a visit for Members of this House so that we can be assured of the situation on the ground?

[Lord Grimstone of Boscobel (Con)]

My Lords, I am sure that the harbour authorities at Dover would be delighted to receive visits from Members of your Lordships’ House, whenever they wished to go there.

Maldives: Tariffs

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Tuesday 14th December 2021 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I congratulate the noble Lord on extending the range of this Question to talk about the important matter of the Royal Navy. Of course, I fully sympathise with him on that. Who would not want it to be one of our glorious services?

[Viscount Waverley (CB)]

Remembering that principle not size should govern the Government’s thinking if possible—and remembering, with deep appreciation, Sir David Amess taking a great interest in this subject and inviting me to join him for a meeting with a UK Minister—surely the ability to offer zero tariffs is one of the really meaningful ways to best assist the emerging markets. Could I encourage the Minister to take that on board?

[Lord Grimstone of Boscobel (Con)]

My Lords, when setting MFN tariffs and the UK global tariff, we of course have to balance various interests: UK interests, meeting strategic trade objectives and the maintenance of the Government’s commitment to developing countries. The GSP’s whole purpose is to give preference to developing countries. I repeat: it is the classification of the Maldives as no longer a developing country, which this House should congratulate it on, that means that it is not treated in the same way as developing countries in this instance.

Exports to Africa

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Thursday 28th October 2021 Grand Committee

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

My Lords, I thank the noble Lord, Lord Popat, for raising this important question today and giving me the opportunity to share the Government’s vital work with countries across Africa to increase trade and prosperity. I will speak later, if I may, about the excellent work that my noble friend does in this area. I also thank all noble Lords who have contributed today for the expertise that, as always, has been on display.

We already have strong trade and investment relationships with countries across the continent, but the Government are committed to going further. I very much support the pressure that noble Lords put on us in this area. I particularly share the aspiration that my noble friends Lord Popat and Lord Hannan of Kingsclere have in this area. I also absolutely recognise the point made by the noble Viscount, Lord Waverley, about the opportunities available to us in the francophone area, and I will ensure that those are followed up. The long-term opportunities that exist in Africa are truly staggering. By 2050, one in four global consumers will live in Africa and we are committed to increasing trade between the UK and Africa and between Africa and the global economy.

In January 2020, at the UK-Africa Investment Summit held in London, the Prime Minister set the ambition for the UK to become Africa’s investment partner of choice. As the UK’s Minister for Investment, I endorse that aim. The summit laid the foundation for new partnerships between UK and African nations based on trade, investment and our shared values. We have announced £6.5 billion of investment deals, with a further £8.9 billion of commitments at the time of the summit. I am pleased to say that despite the pandemic—and we do not always see this—not one of these deals has been lost since then. In January this year, as a follow-up, we held the Africa Investment Conference to mark the anniversary of that summit. The conference brought together 3,000 delegates, including over 1,000 business delegates from more than 40 African nations, and north of 1,000 business representatives from across every region and nation of the UK. I do not think there can be any better evidence of the opportunities than the fact that businesses small and large came together at that time. The noble Lord, Lord Grantchester, is of course absolutely right that these conferences mean nothing without follow-up afterwards, and part of my role is to ensure that that is done.

I hope I can reassure the noble Viscount, Lord Waverley, that the DIT’s Africa network plays a vital role in helping UK businesses seize opportunities in African markets. It supports commercial projects through its expert advice to companies and works with local officials to encourage UK investment. I believe that our newly independent trade policy is enabling us to reduce barriers to entering African markets and offers increased access to the UK. As we have heard, we have already negotiated nine trade agreements covering 16 countries across Africa that represented almost £22 billion of bilateral trade in 2019. My noble friend Lord Hannan of Kingsclere gives way to no one in his enthusiasm for using free trade agreements to bolster Commonwealth ties, and I really share his aspirations in this area. I see free trade agreements with our Commonwealth friends as a way of rejuvenating and expanding the role of the Commonwealth going forward.

Our generalised scheme of preferences is reducing tariffs on imports from developing countries, further enabling trade. A public consultation on our proposed new developing countries trading scheme—DCTS—has just closed. Policy options are being developed with the aim that the new DCTS is simpler, more generous and less bureaucratic than our current system. I share the belief of the noble Lord, Lord Purvis, in the importance of this; he has raised it with me in the past. My noble friend Lord Hannan is completely right that while removing trade barriers is of course a Government-to-Government activity, the heavy lifting in this area has to be done by the private sector and it is our job to facilitate this. The noble Lord, Lord Mancroft, is also right to stress the importance of door opening in this area.

I will quickly turn back to my noble friend Lord Popat, who is of course one of our 11 trade envoys in Africa, appointed by the Prime Minister. They enhance our trade with the continent by building on the UK’s existing relationships in these markets and joining trade missions to identify export opportunities. Nobody is more hard-working or conscientious in this area than my noble friend Lord Popat in his role as the trade envoy to Uganda and Rwanda over the past five years. Today, we heard some of the practical outcomes of his work, and I thank him for that on behalf of the Government.

Supporting economic growth in Africa is a key priority for the Government. Our vision is to do this through a trading partnership geared towards a safer, greener and healthier continent, one that is ever more resilient to shocks and stresses. We are determined to support countries across the continent to build back better from the pandemic. As I said earlier, the private sector will have a key role to play here, but the Government will be on hand to support exports. I listened very carefully to the noble Lord, Lord Chidgey, who of course spoke from real practical expertise in this area. I think I probably detected a fellow Land Rover enthusiast.

We are launching a refreshed export strategy designed with the needs of our business at its heart. We want to give businesses the flexibility, resilience and capabilities that they need to thrive in this fast-changing global environment. Picking up the point made by the noble Lord, Lord Grantchester, I will ensure that opportunities in Africa are fully taken account of in that strategy.

Demand for UK Export Finance in Africa is booming. It supported more than £2 billion-worth of projects in Africa in 2020-21, which is of course helping us to deliver on our strategy to make the UK Africa’s trading partner of choice. Of course, it is absolutely right and proper that many of these projects have a sustainable impact on the continent. For example, a UKEF loan to the Ghanaian Government will help UK-based Aqua Africa to provide clean drinking water for 225,000 people across the country. However, I will pass on my noble friend Lord Mancroft’s points about the importance of speed and the reduction of bureaucracy as far as possible in this area.

In investment, as many have retracted from Africa, I was very pleased to see that, last week, the CDC Group, our development-oriented private equity business, together with DP World, announced a £1.7 billion partnership to accelerate Africa’s trade potential and improve the economic prospects of millions of people, starting in the ports of Berbera, Dakar and Sokhna. The CDC, working together in partnership with others to bring sustainable investment opportunities to Africa, will become increasingly important. I know that my right honourable friend the Foreign Secretary shares my aspirations in this.

African Governments need to create conditions that attract the private sector and provide a stable environment for investors. We all know that a better-educated, healthier workforce will create the entrepreneurs, start-ups and consumers of tomorrow. Improving access to education and health will help us to deliver the transformational change that the African continent needs to secure growth in the future.

We have heard today many references to the African continental free trade agreement. I agree completely with the noble Lord, Lord Purvis, about the opportunities that this presents. We are pleased to be supporting the secretariat with some practical help. When it is fully implemented, this agreement stands to boost intra-Africa trade by up to one-third, establishing a common African market with a combined GDP of £2.5 trillion and a population of 1.3 billion people. I am very pleased that, in September this year, Ministers signed a memorandum of understanding with the secretariat of the ACFTA, to continue to provide support. It is a testament to our commitment to the continent that the UK is the only non-African country to have entered into such an agreement.

Throughout the G7 presidency we are working with other development finance institutions to increase ambition on investment into Africa in the post-Covid world. I have already had various approaches from sovereign wealth funds elsewhere in the world, to see whether they can join us in this important initiative.

Finally, I emphasise that all the previous steps—we often say this in our House—need to be underpinned by our concern for the environment. Investment and development finance will increasingly flow, and should flow, to those who have clear, sustainable growth plans. COP 26 will provide an opportunity to champion a green economic recovery from Covid-19 across the continent and the rest of the world.

I truly believe that this Government and British business have a significant role to play in Africa’s brighter future. I believe that it is only through trade and investment that countries across Africa can continue to grow and prosper. I am happy to meet the noble Lord, Lord Purvis, to discuss further how we can push prosperity in Africa.

I have tried to deal with as many questions as possible that were raised today. I am conscious that, as always, I have not answered all those that the noble Lord, Lord Grantchester, raised. If I may, I will write to him on some of his specific questions.

I reassure noble Lords that the UK will be on hand to support African countries every step of the way. I must thank again my noble friend Lord Popat for being such a champion for African trade and industry and for allowing us to debate this important topic today.

[Viscount Waverley (CB)]

My Lords, I apologise for intervening but I would like to draw attention to Emeka Anyaoku, who was Secretary-General of the Commonwealth. He emphasised the importance of a consultative process at the invitation of countries in Africa to consider, sector by sector, what can be done between those sectors in African countries and their opposite number in this country to see how we can work together. I want to put that on record.

[Lord Grimstone of Boscobel (Con)]

I thank the noble Viscount for that intervention. I will certainly make sure that it is recorded.

Agricultural Exports from Australia: Tariffs

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Tuesday 8th June 2021 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for his kind words, which I will certainly pass on to my colleague the Secretary of State. The noble Lord is completely right: the Trans-Pacific Partnership, which this is a gateway to, will be of huge benefit to UK businesses big and small. This is something we should all welcome.

[Viscount Waverley (CB)]

My Lords, following on somewhat from the question of the noble Lord, Lord Purvis, how will the Government include Northern Ireland in the Australian agreement if it is unlikely that the EU will accept Australian meat and phytosanitary standards?

[Lord Grimstone of Boscobel (Con)]

As noble Lords know, the Northern Ireland protocol is still subject to discussion and refinement between the parties. Clearly, Northern Ireland stands to gain in many ways from a trade agreement with Australia; for example, machinery and manufactured goods account for around 90% of all goods exported from Northern Ireland to Australia and are used extensively in Australia’s mining, quarrying and recycling sectors. These exports will certainly benefit from reduced tariffs in this deal.

Regional Comprehensive Economic Partnership

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Tuesday 15th December 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My noble friend is right: we intend to move forward as quickly as we can with the Trans-Pacific Partnership, and we hope to be able to make an application for accession early in the new year.

[Viscount Waverley (CB) [V]]

I fully take the point about the Trans-Pacific Partnership Agreement—regional integration and multilateralism, serving other nations’ prosperity, is in the UK’s interest, so fully endorsing the importance of our linking to major trade blocs is a priority. However, as the noble Viscount, Lord Trenchard, has just drawn attention to, the China relationship is fraught, as it is for others, for multiple reasons. Does China’s inclusion hamper our ability to deepen trade relations with the RCEP community, or is RCEP viewed as a practical bridge-building mechanism?

[Lord Grimstone of Boscobel (Con)]

We are watching RCEP closely, but at least six ASEAN and three non- ASEAN signatories need to ratify the agreement before it enters into force, and there is then a gap of 18 months before any other country can enter—so it would be many years before it would even be possible for us to consider entry into RCEP.

Trade: Trans-Pacific Partnership

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Wednesday 23rd September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, because we have not entered into negotiations on this agreement yet, it is hard to predict exactly how they will progress, but we are clear that more trade will not compromise our high environmental protection, animal welfare and food standards.

[Viscount Waverley (CB) [V]]

My Lords, picking up on the theme of the noble Lord, Lord Purvis, in wishing otherwise, I would not invest in the Pacific Alliance countries, having listened to a briefing of somewhat negative messaging about that region from our resident ambassadors. Knowing the opportunities that exist, will the Minister sit with his colleagues in government and agree to a sea change in approach that focuses on opportunities for a global Britain, which will need alliances with emerging and frontier markets—of which there are plenty in the Pacific Alliance, which additionally forms a useful springboard for such organisations as Mercosur, for example?

[Lord Grimstone of Boscobel (Con)]

My Lords, the CPTPP is one of the largest free trade areas in the world. It represented 13% of global GDP in 2018, which would increase to more than 16% if the UK were to join. It is one of the world’s premier growth interests and we consider that it is very much in the interests of the United Kingdom to be part of it.

Japan Free Trade Agreement

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Thursday 17th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

The noble Lord is yet another example of the vast expertise that we have in this House on these matters and, because of his special insights into Japan, I welcome his commendation of this agreement. He is right to say that Japan and the UK have very similar attitudes to these matters: both of us look to a rules-based economy in world trade. I can confirm that the matters to which he referred have been rolled over from the EU agreement. The EU agreement had very strong provisions in relation to sustainability, climate and other matters, and he will see once the agreement is made available to the House that we have preserved the impact of those measures. I join the noble Lord’s congratulations of the new Japanese Prime Minister: I wish him a long and successful period in post.

[Viscount Waverley (CB) [V]]

My Lords, while naturally congratulating the Government on the progress with the Japan FTA, is it recognised that it is not in the interests of business to spend years negotiating free trade agreements for them to fail because one stakeholder group or another does not agree with them? Specifically, is a free trade agreement model for beyond the EU now being adopted by the UK in trade negotiations—with people speaking well of the Singaporean approach, for example? Can the Government demonstrate that they are being receptive to the principle of a UK-wide trade alliance that affords better scrutiny and transparency, building back better, and a trade model that ensures trade works for everyone, given some concern of limited evidence of inclusion?

[Lord Grimstone of Boscobel (Con)]

I thank the noble Viscount for his question. Before I answer it, I first apologise to him for misunderstanding an Oral Question that he asked me the other day. I have written to him correcting my misunderstanding.

The noble Viscount is completely right that one has to build a constituency for these agreements if they are to have the impact that we all desire. For that reason, we conducted a very extensive call for input between September and November last year on it, and published it along with our response in negotiation objectives. We held round tables across the country, and we have also set up various trade advisory groups with expertise drawn from a wide cross-section of the UK to advise us on the negotiations as they persist. The noble Viscount will understand that the lessons and advancements that you gain in one free trade agreement—subject, of course, to the trammels of negotiation—often get rolled forward into future free trade agreements. We believe that we are on the cutting edge of free trade agreements, and we are looking forward to those cutting edges appearing in the new free trade agreements that we intend to negotiate and ratify going forward.

Motor Sector: Export Markets

Debate between Viscount Waverley and Lord Grimstone of Boscobel

Monday 14th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, my noble friend makes an excellent point. Of course, these supply chains cannot be turned off and on overnight, but I have no doubt that our FTA programme in general is already helping auto manufacturers in this area, and our new Japan EPA has already demonstrated this utility. Our automotive sector deal supports the industry’s ambition to increase the level of UK content by value in domestically built vehicles to 50% by 2022, so we do not have to see these supply chains only located overseas. It is of course a huge benefit to the United Kingdom if they can be located in our country as well.

[Viscount Waverley (CB) [V]]

My Lords, some time back, the Government announced the formation of regional trade commissioners with great fanfare and a road map that would include the preparation of action recommendations. Despite multiple requests through Questions for Written Answer that progress be made available, to date nothing of substance has been forthcoming. What is the status of each of them? What consultations have there been with individual sector providers, and, importantly, when can Parliament finally assess progress as the result of a more transparent process to be established by the Government?

[Lord Grimstone of Boscobel (Con)]

My Lords, the noble Viscount refers to regional trade commissioners. These are senior officials who are in place throughout the world overseeing our investment and export activities overseas. He may be referring to the trade envoys system, which allocates parliamentarians to individual countries to support trade activities in those countries. These trade envoys do very good work and I am pleased to say that we expect to announce a list of new trade envoys very shortly.