Oral Answers to Questions

Andrew Bowie Excerpts

Thursday 3rd November 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

Europe remains a vital export destination for British businesses, which exported £344.6 billion-worth of goods and services in the 12 months to the end of June 2022. DIT Europe has around 300 trade experts, including a dedicated trade commissioner for the continent. We will facilitate some 500 activities and events to support UK exporters by the end of this financial year alone, including the So British event at the ambassador’s residence in Paris, Poland’s New Mobility Congress, and a significant presence at Berlin’s InnoTrans trade fair.

[Rachael Maskell]

I welcome the Minister to his place. In light of the devastating state of the economy, with the EU trade deficit showing at 26.7% last month, there must be pragmatism in working with the trade and co-operation agreement, to boost economic yield by removing export barriers such as tariffs and border friction, rather than instigating harsh cuts to our public services, wage restraint, and a subsequent recession in the forthcoming Budget. What discussions has the Minister had with the Chancellor, to ensure that better trade terms are negotiated between the UK and the EU, or will ideology trump the needs of our constituents and sacrifice our public services?

[Andrew Bowie]

I thank the hon. Lady for her question, but I am afraid this Government will take no lessons from the Labour party on trade deficits, given that it inherited a trade surplus of £4.6 billion in 1997, and left office in 2010 with a trade deficit of £35.1 billion. We have regular discussions with the European Union on how we can increase trade, and the Government are determined to drive up trade not just with the European continent, but with new partners around the world.

[Dan Carden (Liverpool, Walton) (Lab)]

7. What progress she has made on securing a free trade agreement with Mexico.

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[Dave Doogan (Angus) (SNP)]

13. What steps she is taking with Cabinet colleagues to help reduce the effects of (a) inflation and (b) exchange rate fluctuations on the supply chains of Scottish exporters.

[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

The hon. Members will be aware that His Majesty’s Treasury leads on this policy area. However, I am happy to provide them with an update on the support that my Department is providing to Scottish exporters during the cost of living crisis. The DIT Scotland team based in Edinburgh—I am sure that they are pleased to see His Majesty’s Government increasing their presence in Edinburgh—was established in 2021 with trade and investment expertise dedicated to supporting Scotland’s businesses to grow through exporting overseas. Scottish businesses can access many UK Government services, including the export support service, the UK Export Academy, UK Export Finance and DIT’s overseas specialists in over 100 markets across the world.

[Gavin Newlands]

I welcome the Minister to his place. However, let us compare export growth in the first quarter of 2019—pre-Brexit and pre-covid—with the first quarter of 2022. In Belgium, it was plus 49%, in Switzerland, plus 42%, in Poland, plus 35%, in Australia, plus 46%, in the Netherlands, plus 23%, in Italy, plus 23%, in Spain, plus 19%, and so on—I could go on and on. The UK’s figure was zero. Does he agree with Saxo Bank’s assessment published in Le Monde that political instability, trade disruption, an energy crisis and skyrocketing inflation are rendering the UK an emerging market country? Why on earth would Scotland want to remain shackled to it?

[Andrew Bowie]

It is a bit rich for the SNP to talk about political instability and uncertainty given that its own policy is to rip Scotland out of the United Kingdom, doing more damage to Scottish businesses and the economic foundations of our United Kingdom. The global economic situation in which we find ourselves is putting huge pressure on British businesses, but the Government, and especially the Department, are doing everything that we can to support British businesses to export to new markets and the European Union at this time.

[Dave Doogan]

I welcome my constituency neighbour to his Front Bench role. We are all relieved he has finally landed the job.

Fuel, feed and fertiliser costs are sky-high in Brexit Britain, compounded by the Tories’ cost of business crisis. How does the Minister suggest that my Angus farmers and his West Aberdeenshire and Kincardine farmers compete internationally? Supply-side pressures are manifest in other markets, but they are most acute in the United Kingdom. Our farmers must also now compete with the scandalous Australia trade deal, which will see Australian farmers laughing all the way to the bank while Angus farmers and other Scottish farmers face bankruptcy,

[Andrew Bowie]

The hon. Gentleman is a champion for Angus farmers and Angus berries, which we would like to see exported to more markets around the world. Indeed, that is why we are in the middle of negotiating access to the comprehensive and progressive agreement for trans-Pacific partnership. That will reduce 99.9% of trade barriers to that part of the world, an exciting, new and growing market for produce from Angus, West Aberdeenshire and Kincardine, Scotland and the entire United Kingdom.

[Mr Peter Bone (Wellingborough) (Con)]

Before I came to this place, I ran a manufacturing company and did a lot of exporting, in particular to the United States of America. In relation to the second part of this question, when dealing with a big contract one buys the currency forward. However, is it not a fact that the fall in the value of the pound against the dollar has made Scottish exports much more attractive, because they are cheaper in America, and made imports more expensive? Is that not a good thing?

[Andrew Bowie]

The Government are committed to stabilising the economy, driving down inflation and increasing British exports around the world. My hon. Friend is a great champion for his constituency and I know he will join us in those efforts moving forward.

[Virginia Crosbie (Ynys Môn) (Con)]

12. What steps she is taking to ensure that the House of Commons has adequate opportunity to scrutinise proposed free trade agreements.

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[Andrew Selous (South West Bedfordshire) (Con)]

T5. Yesterday, I met Andrew Dennison, the founder of The Brilliant SOUK and Huxters in Dunstable. They are looking to grow their exports to the United States of America and elsewhere through Amazon. What more can the Government do to help businesses large and small to export more, using e-commerce channels?

[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

I thank my hon. Friend for his question, and for everything that he does to support business in South West Bedfordshire. Businesses can access advice and support through the Department’s digital exporting programme, which helps UK businesses to use digital, including e-commerce, as a key route to market. To date, the programme has partnered with more than 50 global marketplaces, including Amazon, in more than 20 countries.

[Rachael Maskell (York Central) (Lab/Co-op)]

T7. The use of targeted trade sanctions against repressive regimes is effective, as we have seen in the case of Russia, and significantly weakens those regimes’ power, so what discussions has the Secretary of State had with international counterparts on how economic sanctions against the violent, brutal and repressive Iranian regime could be deployed effectively?

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[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) listed the litany of issues with the Government’s approach to trade deals. I mentioned Saxo bank’s assessment of the UK as an “emerging market country”, and with a US trade official describing UK trade policy as a disaster, why does the Secretary of State think the standing of the UK has fallen so far in the eyes of the world?

[Andrew Bowie]

It is simply untrue that the standing of the UK has fallen anywhere close to where the hon. Gentleman says it has. We are committed to doing trade deals; in fact, this Government have done a record amount of them and are continuing to negotiate, not least on the CPTPP and with others to increase British trade around the world. It would be great if he would come on board and start talking Britain up, instead of talking it down.

[Mr Peter Bone (Wellingborough) (Con)]

During this hour of International Trade questions, we have had participation from SNP Members, independent Members, Democratic Unionist party Members and Liberal Democrats, but the official Opposition, for most of the period, have had two Back Benchers here. Does the Secretary of State agree that that must mean that the official Opposition approve of what we are doing so much—