(1 year, 7 months ago)
Written StatementsToday I am providing an update on the establishment of the Food and Drink Export Council (FDEC).
I am pleased to announce that the inaugural meeting of the FDEC took place on Wednesday 25 January 2023.
The UK Government previously announced their intention to establish the new FDEC in response to recommendation 13 of the Trade and Agriculture Commission. The Department for International Trade (DIT) and the Department for Environment, Food and Rural Affairs (DEFRA) have worked in partnership with the devolved Administrations and industry to develop the remit and membership of the FDEC.
The FDEC is a collaborative expert committee which I co-chair alongside Ian Wright CBE, a leading figure in the industry.
British food and drink are among the best in the world and renowned for their quality and provenance. Exporting supports higher pay and more productive jobs. We are helping our farmers and food producers to seize the opportunity of the enormous global demand for British food and drink. The council has an 18-month term with a focus on harnessing the expertise and resource from Government and industry across the UK in a collective endeavour to increase agriculture, food, and drink exports. It brings together dynamic agriculture, food, and drink sector experts from across the UK with an onus on sharing knowledge, raising ambition, building capability, and effective collaboration. The full membership is listed below:
1. Ian Wright CBE (co-chair)
2. Andy Richardson, Volac
3. Anthony Mulley, Quorn
4. Dominic Goudie, Food and Drink Federation
5. Donna Fordyce, Seafood Scotland
6. Ewen Cameron, Scottish Development International
7. Grainne Moody, Invest NI
8. Helen Dallimore, Coombe Castle
9. lain Baxter, Scotland Food and Drink
10. Keith Smyton, Welsh Government
11. Lee Hemmings, Belvoir Farm
12. Margaret Boanas, International Meat Trade Association
13. Michael Bell OBE, Northern Ireland Food and Drink Association
14. Nick von Westenholz, National Farmers Union
15. Patricia Dillon, Speyside Distillers
16. Phil Hadley, Agriculture and Horticulture Development Board
17. Rachel Gwyon, DIT
18. Sandra Sullivan MBE, Food and Drink Exporters Association
19. Tee Sandhu, SamosaCo
20. Tim Brooks, DEFRA
The launch of the FDEC reflects the UK Government’s strategy to promote exports from all parts of the UK and level up the country. It is a genuine partnership which recognises and respects the unique and different approaches to supporting exports that have evolved across the whole of the UK. The FDEC has no remit to discuss strategic trade policy, negotiations of free trade agreements, or areas of devolved or reserved competence.
You can find out more about the FDEC here:
https://www.gov.uk/government/groups/food-and-drink-export-council.
[HCWS521]
(1 year, 7 months ago)
Ministerial CorrectionsAccording to a recent report by the Social Market Foundation, while world goods exports were 7.9% higher by mid-2022 than they were at the end of 2019, the UK’s goods exports were 21% lower. “Could do better” would be a kind end-of-term report. Will the Minister now commit to a recommendation from the Institute of Directors to monitor and publish the impact of Government assistance from the Department’s teams—both overseas and UK-based —to assess their effectiveness and inform improvements so that all businesses get the best possible support for their exporting needs?
This Department and, in fact, this entire Government are committed to growing our exports. We are going to export our way to growth and, in the 12 months to December 2022, trade was worth £748 billion.
[Official Report, 15 December 2022, Vol. 724, c. 1216.]
Letter of correction from the Under-Secretary of State for International Trade, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie).
An error has been identified in my response to the hon. Member for Llanelli (Dame Nia Griffith).
The correct response should have been:
This Department and, in fact, this entire Government are committed to growing our exports. We are going to export our way to growth and, in the 12 months to October 2022, exports were worth £758 billion.
(1 year, 8 months ago)
Commons ChamberThank you, Mr Speaker, for allowing the House to take a moment this morning to show our resolve, and the country’s resolve, never to forget the horrors and barbarism committed on our continent within living memory. We will always remember the holocaust, and man’s inhumanity to man, and we resolve to work to ensure that the suffering of so many is never forgotten and never repeated.
In the past two years we have resolved nearly 400 trade barriers, from opening markets for UK pork in Mexico and Chile to UK poultry in Japan. The recent deals with Australia and New Zealand also provide various mechanisms to identify and address trade barriers. This year the UK achieved the first export of British lamb to the USA in more than 20 years, a market estimated by industry to be worth £37 million over the first five years.
May I take this opportunity to welcome my hon. Friend to his post, and to associate myself with his remarks regarding today’s commemoration of the holocaust?
My hon. Friend, as a fellow Aberdeenshire Member of Parliament, will be aware, as should everyone, of the high quality of food and drink that Scotland has to offer the world. He will also be aware of the concerns raised by seed potato growers in Aberdeenshire and elsewhere across Scotland about the European Union’s intransigence in not allowing the absolute same standard of seed potatoes that had been available to meet the vast demand for them across the European continent. What is the Department for International Trade doing either to resolve that issue or, indeed, to find new markets for that wonderful product?
I thank my hon. Friend, and constituency neighbour but one, for all that he does to champion farmers in Aberdeenshire, and indeed across Scotland, as he did when he was a Scotland Office Minister. It might interest him to know that UK exports of seed potatoes to non-EU markets increased by 25% between 2018 and 2021, and last year nearly 90% of all UK seed potato exports were to non-EU countries, supported by recent trade agreements with Egypt and Morocco. The DIT Scotland team, based in Edinburgh, as he knows well, works closely with the Scottish Government and their agencies to ensure that Scottish companies are supported to pursue opportunities for their products in new markets.
The number of food and farming businesses in my constituency is not high, but none the less they are really important. They include businesses such as Backyard Brewhouse, a craft brewery. British farming is renowned for its high-quality produce, so what is my hon. Friend’s Department doing to take advantage of this and do all it can to promote our exceptional British produce?
If my right hon. Friend were to invite me, I would be delighted to visit the Backyard Brewhouse in Brownhills. British food and drink are among the best in the world, renowned for their quality and provenance. DIT is delivering an incredibly successful programme of activity for our exports, matching our producers with international buyers. We are placing eight new dedicated agrifood attachés in growth markets around the world.
What more is my hon. Friend hoping to deliver to ensure that our great British produce carries “Brand Britain,” through national and regional UK geographical indicators to an international stage in existing and future free trade arrangements?
I thank my hon. Friend for what she does for the food producers of North Devon. We have fantastic British produce, with protected geographical indications, such as Welsh lamb, Scotch whisky and Stilton, which are promoted and recognised around the globe through the GREAT Britain & Northern Ireland campaign, and at home through our “Made in the UK, Sold to the World” marketing strategy. This supports small and medium-sized enterprises to understand and access the benefits of FTAs and wider export opportunities and future success stories from all parts of the UK. I would be delighted to meet her to discuss what more we can do to support exports from North Devon and, indeed, the rest of the UK.
Tapadh leibh, Mr Speaker. As we have heard, trade barriers are a problem for seed potato growers, and yesterday the International Trade Committee heard that the biggest change that a Government could introduce to get rid of these and help the UK economy would be to rejoin the customs union and single market. How much do the Government care about the UK economy?
I thank my hon. Friend—the hon. Member for that question. This Government care passionately about the UK economy. It might interest the hon. Member to know that the EU remains a vital trading partner for the UK. Contrary to the claim that trade with the EU has collapsed, Office for National Statistics figures show that total trade in goods and services between the UK and the EU was worth £652.6 billion in the year to June. That is up by 18%.
British farmers could lose out on up to £148 million-worth of growth owing to the New Zealand trade deal, according to a report by the International Trade Committee. A report by the Department for Environment, Food and Rural Affairs Committee said that British farmers could lose out on up to £278 million-worth of growth owing to the Australia trade deal. What is the Minister going to do to address those huge potential losses?
As the hon. Member is aware, in our negotiations with New Zealand and Australia we have ensured that there are huge protections for British food and farming, including a long period of transition to allow the market to adapt. We are committed to promoting and driving up exports of British produce overseas, as well as to ensuring that the great British produce we deliver at home is protected.
If you want to enter into the Christmas spirit, Mr Speaker, I would recommend a dram of Dalmore, Glenmorangie, Balblair, Clynelish or Old Pulteney. It is a widely recognised fact that the highland single malts are the best whiskies in the world. Notwithstanding the fact that the Minister is an Aberdeenshire man, will he make sure that sales of those whiskies are pushed very strongly?
I would be very pleased to visit the hon. Gentleman’s constituency and try all those fine whiskies. I had a meeting with the Scotch Whisky Association just last week. It is very excited about the current trajectory of Scotch whisky sales overseas, and very, very excited about what we are doing in India to reduce tariffs on Scotch whisky so that we can further promote that fantastic Scottish export around the world.
According to the Centre for Business Prosperity, more than 40% of products such as shellfish and seed potatoes are no longer exported to European markets, for want of a veterinary agreement with the EU—yet the Government do nothing. I know that exports in ex-Prime Ministers’ speeches have increased recently, thanks to the efforts of Ministers, but why will they not act now to negotiate a veterinary agreement, which would be transformational for British farmers, thousands of British businesses and the British food industry in particular?
This negativity about our export position with the European Union is precisely why so many people are turned off from the Labour party and have been for such a long time. Contrary to what the hon. Gentleman said, trade with the EU is actually up by 18%. The veterinary agreement would involve dynamic alignment with the EU, which I believe the Labour party is opposed to; the hon. Gentleman might want to correct the record. In terms of overall relations with the EU, my right hon. Friend the Minister for Trade Policy is engaging every single day with our European partners to see what we can do to drive down trade barriers further, so that we can promote British exports on the continent. Notwithstanding that, we are looking for new export opportunities in emerging markets around the world.
The New Zealand trade deal will mean an expected £150 million hit to agriculture and food-related industries each year. An impact analysis shows that the Australia trade deal will mean an expected £94 million hit to farming and a £225 million hit to food processing each year. On top of that, UK food and drink exports to the EU have already fallen, despite what the Minister says, by more than £1.3 billion, because of the Brexit deal that this Government signed. Given that mounting charge sheet, how can farmers and food producers in this country ever again trust a word that the Tories say?
We will take no lectures from the SNP on supporting Scottish farmers and food producers. It is not the UK Government who are accused of operating in an information void due to the lack of information and slow progress of Scotland’s post-Brexit agricultural Bill. It is not the UK Government who were criticised by the National Farmers Union of Scotland for not voting for the Genetic Technology (Precision Breeding) Bill a couple of weeks ago. This Government are committed to supporting Scottish, and indeed British, food producers and exporters, not creating division and stoking negativity, which is all the SNP ever brings to the table.
I think Aberdeenshire farmers will take that with a large pinch of salt. The Secretary of State says that she is a huge believer in British farming and the role it plays in our national life. She wrote an article a few years ago on fears about the impact of opening up our markets on domestic producers such as farmers. In the light of all that, how long does the Minister seriously think it will be before he and his colleagues trigger the mechanisms to bring an end to these disastrous trade deals with Australia and New Zealand?
The trade deals with New Zealand and Australia are great deals for British exporters and this country. As I said, unlike the Scottish National party, we are committed to championing Scottish and British exports and food and drink around the world, not creating negativity. It is time that the hon. Gentleman championed great British exporters—great Aberdeenshire exporters—instead of coming here with all that scare- mongering and negativity, as he does weekly.
Boosting exports is at the forefront of this Government’s agenda. I am pleased to say that UK exports were worth nearly £760 billion in the 12 months to the end of October 2022—that was an increase of £57 billion, once adjusted for inflation. Our Export Support Service has received more than 11,800 inquiries since its launch in October 2021, providing call-backs to customers and referring companies to other Department for International Trade services more effectively, to support them on their exporting journey.
The UK trade performance is the worst on record. Lost output is estimated at £100 billion a year. With such an appalling record, it is hardly surprising that the Government are making false claims to have secured £800 billion in new free trade deals when most post-Brexit trade deals are just roll-overs. Businesses in Bedford, big and small, are overburdened with red tape. Will the Minister explain how businesses in my constituency can improve growth and trade with the biggest trading bloc in the world?
I thank the hon. Gentleman for that question, but I am afraid that what he says is simply not true: the Japan deal was not a roll-over, and neither were those with Australia and New Zealand; the comprehensive and progressive agreement for trans-Pacific partnership discussions we are in right now will not lead to a roll- over; and a deal with India, where my right hon. Friend the Secretary of State has just returned from, will not be a roll-over. The hon. Gentleman talks about the EU, so I am afraid I am going to have to repeat what I said earlier: trade with the EU in the year up to June was up by about 18% and worth £652.6 billion. We are committed to growing our exports around the world and supporting British exporters to get out there and sell fantastic British goods and services into new markets, but we are also committed to continuing to sell into the EU and we continue to do so very effectively indeed.
Farmers in my constituency —I remind the House that I am one—have expressed concerns about ensuring that agricultural interests are adequately taken into account in the upcoming free trade agreement with Canada and the trans-pacific trade agreement that the Minister refers to. I welcome him to his place; will he please invite the Secretary of State to meet me and other colleagues representing agricultural constituencies to discuss those concerns?
I thank my right hon. Friend for his question and for bringing to my attention that it will also be a new agreement between Canada and ourselves, which I forgot to mention in my earlier answer. We are pursuing an ambitious and comprehensive free trade agreement with Canada that builds on our existing trading relationship, already worth £23 billion. We have been clear that the new agreement must work for British exporters, including those in our agriculture and food and drink industries. That includes maintaining our high animal welfare and food safety standards for farmers in Ludlow and across the UK.
According to a recent report by the Social Market Foundation, while world goods exports were 7.9% higher by mid-2022 than they were at the end of 2019, the UK’s goods exports were 21% lower. “Could do better” would be a kind end-of-term report. Will the Minister now commit to a recommendation from the Institute of Directors to monitor and publish the impact of Government assistance from the Department’s teams—both overseas and UK- based—to assess their effectiveness and inform improvements so that all businesses get the best possible support for their exporting needs?
This Department and, in fact, this entire Government are committed to growing our exports. We are going to export our way to growth and, in the 12 months to December 2022, trade was worth £748 billion. We are rolling out our export support service, making export champions more visible and more available across all nations and regions of this United Kingdom. We are committed to working with small and medium-sized enterprises to get them into exporting and we are supporting those companies that export already. We are driving up exports from this country and our new independent trade policy—something that, if the Labour party had its way, we would not have in the first place—allows us to do just that.
I can indeed. At the green trade and investment expo in Gateshead last month, I saw many companies from around the UK that are engaged in exporting renewable energies technology around the world. Indeed, the UK is home to world-leading companies in the design and development of renewable energy, and the Department for International Trade has already supported over £5 billion of exports across the energy and infrastructure sectors in the past.
The Centre for Business Prosperity at Aston University has estimated that 42% of British exports have disappeared from European shelves since Brexit. Is the Secretary of State proud of her party’s 12-year record in charge of export policy?
The hon. Member obviously was not listening to what I said earlier. Trade with the EU is actually up 18%. Instead of coming here and talking down Scottish and British businesses that are exporting to the continent and around the world, he should join us—he should be here championing Scotch whisky exports, which are up; he should be here championing Scotch beef exports, which are up; and he should be here championing the great Scottish financial services exports, which are up around the world and transforming lives for the better.
I congratulate my hon. Friend on his work not only as the MP for Waveney but as the chairman of the all-party parliamentary group on the British offshore oil and gas industry. He is well apprised of what we are doing in the energy sector. DIT and the Office for Investment work directly with project leads, investors and financial institutions, and we are seeing excellent progress. For example, ScottishPower is investing £2.5 billion in its East Anglia ONE project, the first of four in the region, including a £25 million state-of-the-art operations and maintenance facility in Lowestoft. Events such as the recent green trade and investment expo in Gateshead, which I mentioned, are showcasing UK opportunities to the world in many technologies, such as carbon capture and hydrogen.
Exports such as squid from the Falklands are an enormously important part of the economies of our overseas territories and Crown dependencies. Can my right hon. Friend assure me that everything possible is being done to support the trading relationships of this important part of the British family?
(1 year, 9 months ago)
Commons ChamberIt is a pleasure to have had the opportunity to listen to this debate, to contribute to it and, indeed, to close it on behalf of the Government, especially as I am doing so as the first Scottish Conservative Minister outside the Scotland Office for some 25 years, since the noble Lord Lang of Monkton, who served as Secretary of State for Trade in John Major’s Government.
May I start by thanking all Members for their contributions? It is clear from today’s on the whole positive debate that, on the whole, Members agree that the UK’s trading relationships with Australia and New Zealand are good for this country and for the world. In particular, the right hon. Member for Warley (John Spellar) was right: trade has enabled the development of civilisation and human progress, and we need to make the case for it much more strongly. As the hon. Member for Chesham and Amersham (Sarah Green) said, the trade deals that we are debating will bring positive benefits to our respective countries and economies. We also heard from my hon. Friend the Member for Mole Valley (Sir Paul Beresford), who is a walking example of the positive benefits that antipodean trade can bring to this country.
The agreements will remove tariffs, make it easier for British businesses to invest in Australia and New Zealand and deliver growth to every part of our country. They will also address trade barriers faced by small and medium-sized enterprises, such as lengthy costs and procedures, and allow our citizens to work more freely in both countries, thanks to new environmental commitments for businesses and travel. In short, the deals provide real benefits to real businesses and our respective countries at large.
Before I address the points about scrutiny and environmental protections on which most of the contributions have been focused, let me turn to the contribution by my friend on the Scottish National party Benches, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). Time and again, SNP Members turn up to debates on trade deals and ask questions in the Chamber and elsewhere, professing to be friends of Scotland’s farmers and to be standing up for Scottish agriculture as champions of rural Scotland. There is just one problem: the record shows that, sadly, contrary to the rhetoric, the SNP are no friends of rural Scotland and Scotland’s farmers.
Is the Minister able to name one single amendment that the Government have accepted from the SNP on any trade deal?
I would like, instead, to run through how the SNP are failing Scotland’s farmers, given how strongly the hon. Gentleman professes to be championing them. If they were friends of Scotland’s farmers, they would have voted with us, as the National Farmers Union of Scotland wanted them to do, on the Genetic Technology (Precision Breeding) Bill. If they were true friends of Scottish farmers, they would have listened to the National Farmers Union of Scotland, which has accused the SNP Government of operating in an “information void” due to the lack of information and slow progress of Scotland’s post-Brexit agriculture Bill. They say that they are friends of Scottish farmers, but when did the Scottish Government’s own agriculture and rural development board last meet? It was 10 months ago. That is absolutely shameful.
In only the last two months, the SNP has been criticised by Scotland’s rural bodies for having no plan for rural economic growth and no plan to support Scotland’s pig farmers. Its policies threaten thousands of hectares of good agricultural land. Let us remember, too, that it would take Scotland’s farmers back into the common agricultural policy. I suppose that without Westminster to blame, they would need to join the EU in order to have somebody to point the finger at.
I will not.
The SNP are not champions for Scotland’s farmers. They are political opportunists who think that they can still get away with professing one thing in this place and practising another in Scotland, tied as they are to their Luddite partners in Government, the Green party. The SNP is not pro-farming; it is anti-business, anti-growth and, as we know too well, anti-trade.
Could the Minister explain, in this middle of his diatribe, exactly what he will say to his constituents in his rural constituency about the contribution of the former Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Camborne and Redruth (George Eustice), which contained startling revelations that will not please them?
In my 1,900 square mile rural constituency I have regular interactions with farmers—probably far more than the hon. Lady has in her Edinburgh North and Leith constituency. I will turn to the comments by the former EFRA Secretary in due course, but we will hear no more from the SNP on what is in the best interests of Scotland’s farmers.
Our trade deals balance open and free trade with protections for our farmers. As I have said, I have immense respect for my right hon. Friend the former Secretary of State for EFRA. I listened intently to his concerns about the trade deals, but I have to take issue with him and defend officials in the Department for International Trade, all of whom, without exception, are dedicated to bettering the trading relationships for this country. They all, without exception, have this country’s best interests at heart and are working day and night for this country.
I also point out that Australian and New Zealand beef and lamb suppliers are already working hard to satisfy demand from the booming Asia-Pacific markets on their doorstep. New Zealand already has a significant volume of tariff-free access for lamb to the UK market, but used less than half that quota in 2020. None the less, our deals include a range of protections that collectively allow us to apply higher tariffs to protect UK farmers for up to 20 years.
The Minister is absolutely right that, at the moment, New Zealand uses only about half the tariff rate quota available to it. That being the case, why would it have been such a big deal to require an enduring TRQ of Australia and New Zealand that was generous but within a fixed envelope?
My right hon. Friend has an incredible amount of experience in this field. I would be happy to take up the issue with him outside the Chamber following the debate.
Our deals include a range of protections that allow us to apply higher tariffs to protect UK farmers, including tariff rate quotas for a number of sensitive agricultural products; specific additional protective measures for beef and lamb products, which will provide further tariff protections to our farmers; and a general bilateral safeguard mechanism that will allow the UK to increase tariffs or suspend their liberalisation for up to four years in the unlikely situation that the farming industry faces serious loss from increased agricultural imports. On top of all that, there is still the option of global safeguards under the WTO.
I will now turn to the points raised about environmental, animal welfare and food standards. I stress that we will never compromise on these critical protections—
No, we have not. That is why our trade deals include specific measures to uphold them.
Before I go on, I must quickly correct the record. Earlier, the Minister for Trade Policy, who unfortunately has a prior engagement in his constituency, said in response to an intervention from the hon. Member for Rochdale (Tony Lloyd) that the climate change agreement in the deal was Australia’s first. It is not; it is actually Australia’s second. It also has an environmental chapter in its agreement to the CPTPP. In addition, the Trade and Agriculture Commission has separately confirmed that our free trade agreements do not require the UK to change our existing levels of statutory protection in relation to any areas.
I now briefly turn to scrutiny, which is incredibly important. Contrary to the description of the right hon. Member for Warley of the scrutiny process, and always remembering that CRaG was introduced by Labour, the Government have made extensive commitments to support robust scrutiny of all new free trade agreements. These commitments greatly exceed our statutory requirements and we have met every single one.
I hear and understand the concerns of the hon. Member for Rochdale and I accept the challenge to go further and do better, but the Australian FTA was examined by Parliament for more than seven months and the scrutiny period featured reports from three Select Committees. I praise the contribution of my hon. Friend the Member for Totnes (Anthony Mangnall) and it is sad that the Chair of the International Trade Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), is not in attendance today.
It is important to make it clear that there have been substantial travel disruption and difficulties from Scotland today, so it is unfair to single out an hon. Member who has been hit by that.
I thank the hon. Gentleman; I was about to reference the travel requirements. I was not blaming the hon. Member for Na h-Eileanan an Iar for not coming, but it is sad. I am genuinely disappointed that he is not here to intervene on me at the Dispatch Box today.
By the end of the New Zealand CRaG period, hon. Members will have had the opportunity to examine the detail of the New Zealand deal for eight months. Of course, His Majesty’s Government also welcome the fact that we have a debate on both trade deals today.
It has been a privilege to speak in today’s debate. Our free trade agreements with Australia and New Zealand are game-changing deals. They demonstrate that the UK is a confident, outward-looking, free-trading country that is ready to grab the challenges and opportunities of the 21st century, and that we are a nation that is using the power of free trade to the benefit of great British businesses and the wider world—and as the right hon. Member for Warley said, to the benefit of all our people.
Question put and agreed to.
Resolved,
That this House has considered the Australia and New Zealand Trade deals.
On a point of order, Madam Deputy Speaker. In September, I raised the case of my constituent Simon Hagos in the House. The then Minister, the hon. Member for Torbay (Kevin Foster), assured me that the visas of Simon’s wife and child would be expedited, following the Home Office incorrectly applying its own rules. That has not happened. Separately, later that month, I wrote to the Home Secretary about my constituent Said, who remains stuck in Pakistan against his will in perilous circumstances. The Home Office has ignored my repeated efforts to get help for my constituent and I am yet to receive a substantial response.
Madam Deputy Speaker, can you advise me on how I can resolve this serious problem where Ministers make commitments in the House and fail to deliver on them? What tools can I use to get a response from a Minister about an urgent and potentially life-threatening case?
(1 year, 9 months ago)
Commons ChamberEurope 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.
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?
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.
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.
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?
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.
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,
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.
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?
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.
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.
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?
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.
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—
(1 year, 10 months ago)
Public Bill CommitteesWell, I can go and look at my notes and see if they said that procurement was a particular problem. Their concern was that they were presented with a faits accomplis time and time again. They were presented with, “This is the way that you can have it; accept it or leave it.” That was in a wide range of areas, but trade was one of their many concerns.
The amendments are not to say that the Government are not meeting with the devolved Administrations or are not in communication with them, but to say that the Government must consult and work with the devolved Administrations and the English regions before the regulations are laid, in a co-operative, rather than dictatorial, way. It is therefore important that they are agreed to, because they would provide the reassurance that is needed to rebuild the way that regulations are laid that affect the whole UK. We have seen how, when legislative consent motions have not been provided, they are still run roughshod over.
The Minister has just informed the Committee that the chief negotiator met the DAs 25 times in the run-up to this trade Bill being put down. Will the hon. Member for Brighton, Kemptown inform the House, if he knows the answer to this, how many times the chief negotiators from the EU consulted the devolved authorities in the UK and, indeed, the UK Government and Members of this House when trade deals were being negotiated, given that he seems such a fan of the way the EU conducts itself in trade negotiations?
Order. I am sure the hon. Member for Brighton, Kemptown would give a very full and articulate answer to that, but we are slightly straying out of scope. The points about devolution have been well made and can continue, but only in relation to the United Kingdom. Thank you.
(2 years, 7 months ago)
Commons ChamberAs I have outlined today, I am pleased that yesterday we were able to formally launch our negotiations with the US to find a solution to the section 232 tariffs, which have been unreasonably imposed on the UK for a number of years. The EU quantum of steel was of importance to the US, which wanted to start those negotiations because the impacts on both sides were great. We are very pleased that the UK is now able to progress on what will be a very important impact, and release some of the pressures on our excellent steel industry.
The UK-Australia free trade agreement could boost Scotland’s economy by about £120 million. The deal will help boost Scottish exports by removing tariffs of up to 5% on Scotch whisky and through additional commitments to release goods from customs quickly. Scotland’s services firms will also benefit from access to billions of pounds’ worth of Australian Government contracts. Staff will be able to travel for work with easier access to temporary entry visas.
(3 years, 4 months ago)
Commons ChamberWe are adopting a targeted approach to this issue, to make sure that we address the violations of rights and responsibilities. We have designated individuals and entities that have been involved in such violations. This is a smart tool, carefully targeted to achieve its goals, while minimising potentially negative wider impacts. It is not designed with a view to imposing sanctions on sectors within countries, for example.
Sweden is a close ally of the UK on trade policy and a close partner in our day-to-day trading relationship. I was the first UK Minister to visit Sweden after the EU referendum, and through our excellent DIT team in Stockholm, we work hard to promote trade and investment between the UK and Sweden.
I thank my right hon. Friend for his answer. According to a recent report by the Swedish chamber of commerce for the UK, almost 40% of Swedish businesses are optimistic about business growth in the UK and 70% continue to see the UK as an important step in international expansion. Does he agree that developing links with this greatest Scandinavian country, which shares our values and our growing economy, would be good for the UK, good for jobs and good for developing relations with our partners in the European Union?
I commend my hon. Friend for his work as the chairman of the British-Swedish all-party parliamentary group and his mention of the excellent Swedish chamber of commerce for the UK, which was on one of my recent webinars. In my recent call with Swedish Trade Minister Anna Hallberg, we agreed to co-host a bilateral trade and business forum later this year. We have excellent trade co-operation with Sweden in sectors such as technology, financial services, defence and clean energy, so I very much share my hon. Friend’s optimism.
(3 years, 7 months ago)
Commons ChamberWe are experiencing a number of challenges with the outworkings of Brexit, not least here in Northern Ireland, and that is, in part, due to the failure to progress and confront some of the realities of the situation. That is followed through by the fact that the trade deal is in place without this Bill, and there is also an environmental governance gap, due to the failure to pass the Environment Bill before the end of what passed for the transition period. Many see that as a reflection of the Government’s priorities regarding environmental and other protections.
I had the opportunity to speak on Second Reading of the Trade Bill in May and, at that point, set out the SDLP’s concerns about the loss of rights, standards and protections that were enjoyed by everybody in the UK as members of the EU, as well as our disappointment about the lack of scrutiny and oversight provided for by the Bill. I do not want to rehash all those as well, but I raised specifically the potentially regressive impact that the Bill might have on food standards and on the NHS, which is an issue of great concern to my constituents in south Belfast. Several of the amendments before us today would assist greatly in protecting and maintaining those standards. I say again that warm words and assurances, and protesting too much, as I think we heard in a number of previous speeches, do not give reassurance to the public if opportunities are not taken to place protections in law. If the Government are serious about protecting the environment, workers and the NHS, they will have no issue in legislating to put those protections into law.
On scrutiny, we heard a lot from Vote Leave about taking back control and about the sovereignty of the UK Parliament, but we see in practice in this Bill much control being put into the hands of a small number of Cabinet Ministers, and very little in the way of parliamentary oversight. The UK Government’s scrutiny processes and, therefore, democratic legitimacy for trade deals fall far behind those of, for example, the US and the EU. If Brexit was an issue of accountability for many people, I believe that this approach is further storing up dissatisfaction with the political process.
Amendments 8 and 9 provide a good opportunity for the UK to ensure that trade policy is in line with other international obligations on not entering into trade deals with those committing human rights abuses and genocide, and we very much welcome this. On the issue of Northern Ireland, trade deals and non-discrimination —that is, amendment 26—the SDLP has been very clear before and since 2016 that we do not wish, and have never wished, to see any barriers to trade from Northern Ireland north-south or east-west. That is what we enjoyed pre-Brexit, as well as trading arrangements with the vast majority of the planet, but we are now restricted by the need to manage the problems that have been foisted upon us by an ill-thought-out Brexit. The Ireland-Northern Ireland protocol exists precisely to protect the people of Northern Ireland from the risks and consequences of a hard border. We therefore have to take a very cautious approach to anything that might inadvertently or deliberately undermine that. It remains the case—I will finish with this point—that the higher the UK’s commitments to the standards that we maintain here in Northern Ireland, the softer the barriers to trade in the Irish sea will be.
It is a pleasure to speak in such an important debate this afternoon and to hear such eloquent arguments on the merits of the amendments that we are considering today, and I have listened intently to the arguments on both sides.
Last week, in the debate on global Britain, we debated in this House how we wanted this country and its values to be a beacon of hope in this dark world—a country that champions free trade, the rule of law, human rights and democracy. It is these values, which everyone in the House shares, that are driving right hon. and hon. Friends in supporting Lord Alton’s amendment or amendment (a), backed by colleagues this afternoon. Nobody in this House or beyond would ever support this country doing a trade deal with a country engaging in acts of genocide. The United Kingdom continues to encourage all states to uphold international human rights obligations, including under the convention on the prevention and punishment of the crime of genocide, and our position on that will never change.
We all look at what is happening in Xinjiang and the plight of the Uyghur Muslims with increasing alarm. In response, the UK has announced an ambitious package of measures to help make sure that no British organisation, whether Government or private sector, is inadvertently contributing to human rights violations against the Uyghur Muslims or other minorities in the region. On 6 October, the UK and 38 other countries made a statement at the UN Third Committee expressing deep concern about the situation. This House and this country therefore cannot be accused of not being aware of or not taking seriously the issues in China at the present time.
However, the amendments pose a serious threat to the separation of powers that this country has observed for hundreds of years. It is this place, and it is the Executive who are held to account in this place, that are responsible for developing trade agreements and the operation of our foreign policy. It is really important that we separate the issues here. Is there increasing alarm over whether genocide is occurring in Xinjiang alongside horrific acts of slave labour and forced sterilisation? Yes; that is not in question. Should we allow the Court power over British trade and foreign policy? No. Although my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) stresses that the Court would only be able to make a preliminary decision, it would be impossible—rightly, might I say—to ignore that decision. Therefore, we would be de facto giving powers to the High Court.
I would be ashamed if it took a decision from the High Court to determine that a country we were looking at doing a trade deal with was engaging in acts of genocide for us to revisit whether it would be the right thing to do. I have faith—faith borne out by the recent examples of what we have done and how we have acted towards states that do not share our values—that the British Government today and in the future will do the right thing, and that if the day comes that they do not, this House will hold them to account and rightly stop them. That is how parliamentary democracy works. We do not offload or subcontract our moral compass to judges in the High Court. We are elected to take tough decisions.
I am against these amendments, but I am for tougher action against China and other Governments around the world who are committing human rights abuses. I have spoken about my support for the Bill before, so I will not take up the House’s time by going over the same ground again. The Bill has been improved since it first came before Parliament, not least with the creation and putting on a statutory footing of the Trade and Agriculture Commission, which puts the voice of farmers, who were concerned about the effect on standards of future trade deals, at the heart of the Government’s trade policy. I hope we can now allow this very good Bill—a Bill on which the Government have listened and acted and which they have improved—to proceed.
(3 years, 7 months ago)
Commons ChamberWe debate this this evening at a time when the values we stand for as a country, when the values of all liberal democracies of the world, seem more under threat than at any time in living memory. The western world, once confident and convinced of the powers of capitalism, democracy and free trade, has been shaken by two decades of terrorism, ill-managed overseas conflicts, a devastating financial crisis, the European migrant crisis and a lurch towards nationalism and populism. Now, economies are ravaged by covid-19, and last week we saw the bastion of American democracy—the Capitol, the literal shining city on the hill—overrun by a mob demanding that the results of a free and fair election be overturned because their leader refused to accept the result; actions we would normally associate with a tinpot dictator, not the leader of the free world. And so in front of us is the greatest challenge since we rebuilt our world after the second world war. We must take on the democracy deniers; we must re-establish and defend the rules-based order; and we must champion free trade. The challenge we have is great. We see Russia and China. We see threats to democracy and trade all around the globe.
Britain is already a global power: a world leader on foreign aid spending; the second highest defence spender in NATO, with that set to increase; a permanent member of the UN Security Council; a leading member of the Commonwealth; and a country that has shown by its action that it respects and enacts the results of democratic referendums and elections. We are a believer in free trade between free nations because it enriches our people and spurs economic growth and prosperity around the globe. That is why we have signed 64 trade deals since leaving the EU, worth over £885 billion. We are among the leading nations on earth in fighting climate change. Over the past decade, the UK has cut carbon emissions by more than any similar developed country, and it was the first major economy to legislate for net zero emissions by 2050.
This year, we have a great opportunity at this crucial juncture for our world—at this epoch-defining moment when we, the liberal democracies, can choose either to simply watch as those who care not for liberty, freedom of speech, freedom of assembly or democracy overturn the rules-based international order, or to stand up for the values of the enlightenment, for democracy, for globalisation. The United Kingdom has been handed the opportunity to lead—to guide the world forward into the next decade of the 21st century. With our presidency of COP26, hosted here in Scotland this year, and with our presidency of the G7 coming at this most critical and crucial of years, we have the opportunity to be bold and to signal to the world that, though bruised, the values we hold dear are enduring and that, working together, with confidence in who we are and what we stand for, we can take action to combat the greatest threats to our planet and our people. A global Britain, with Scotland at its heart, will lead the fight in the struggles of this century, and I think, with conviction, that we will win.