(3 years, 9 months ago)
Commons ChamberI can assure the hon. Member that the Prime Minister is exercised about this issue, as am I, and we are working flat out to get an agreement to make sure that these tariffs are removed.
While VAT in the UK is a matter for the Treasury, and in the EU it is the responsibility of member states, my Department is aware of SMEs feeling pressured to supply on a delivered duty paid basis. That is a matter for commercial decision between contracting parties, but none the less, we provide support for SMEs through our international trade adviser network, and just last week we held a webinar as part of the UK Export Academy dealing with Incoterms in general, of which DDP forms part.
Many SMEs have EU clients that are themselves SMEs, which understandably do not wish to be importers and thus take on extra regulatory burdens. Due to the insistence on DDP terms, UK exporters have to try to reclaim EU VAT. I hear what the Minister says about different responsibilities and so on, but in his co-ordinating and supportive role, will he agree to meet me and representatives of the British Promotional Merchandise Association, to hear at first hand the difficulties that its members are having and to explore solutions, even if they are cross-departmental?
In a belated attempt to score some points with Mr Speaker, I will simply say that I would be delighted to do so.
(4 years, 7 months ago)
Commons ChamberMay I just pay tribute to the men and women of the armed forces who have risen to the challenge of helping to deal with covid? We will find them up and down this country, and indeed in Whitehall, embedded right across the system helping to deliver the response. May I also welcome to his place the shadow Secretary of State, the right hon. Member for Wentworth and Dearne (John Healey)? I look forward to working with him to tackle the issues around defence.
The Royal Navy, along with other NATO allies, will continue to uphold the right of navigation across the globe. This is an inviolable right, and, where it is threatened, the UK will always be at the forefront of defending it.
The Royal Navy is at its best when it works closely with our allies. Will the Minister update the House on recent co-operation with the Royal Australian Navy?
The Royal Navy and the Royal Australian Navy collaborate across the globe on a near daily basis. Only this morning, I had an hour-long conversation with my counterpart in Australia. The Type 26 Hunter-class frigate partnership has flourished through the Global Combat Ship user group. Operationally, we have worked closely on the management and challenges of covid-19 in the maritime sector, as well as in the Strait of Hormuz, providing security to global shipping.
(5 years, 5 months ago)
Commons ChamberThis weekend, it will be three years since my Department was formed, and in that time the UK has worked with partners to ensure that the World Trade Organisation is equipped with the tools needed to tackle present challenges and address 21st-century trade issues at a time of significant global headwinds. I emphasised the urgent need for WTO reform in discussions with my counterparts at the G20 trade and digital economy ministerial meeting in Japan a few weeks ago.
Can the Secretary of State please explain why some nations, such as Canada, are refusing to roll over their existing EU free trade agreements, while many others, such as Switzerland, have happily done so?
Continuity of existing trade terms is in everybody’s interests. I have to say that when the House of Commons gives mixed signals about the possibility of a no-deal exit, quite understandably some of our trading partners wonder whether it is worth investing in getting those continuity agreements. What I would say to those trading partners is that a no-deal exit is not entirely within the control of the United Kingdom; we might end up with a no-deal exit from the European Union. It is in everybody’s interests to have those safety nets in place.
I could just ask the hon. Gentleman to look up the answer that I gave a few moments ago. We have signed roughly two thirds of the deals already and we expect there to be more. As for the number, it is well over 50%, and a large number of the countries in there are agglomerated into blocs, but we are confident in terms of trade that we will have two thirds or thereabouts.
My hon. Friend makes an important point, but an article 24 agreement would cover tariffs and quantitative restrictions; it would not cover services, standards and regulations. An agreement covering those latter elements would have to be negotiated separately and would probably take longer to strike. In the meantime, the UK would be subject to the full array of existing third-country checks and controls carried out as standard by the EU. In other words, even if we both did agree an article 24 continuation, it would not cover access to the single market—it would not be trading as usual.