Oral Answers to Questions

Anne-Marie Trevelyan Excerpts

Thursday 20th January 2022 Commons Chamber

[Mr Speaker]

We have a slight problem. Will the Secretary of State answer the question? I will then go to the Opposition spokesperson.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

I visited India last week to launch negotiations with my counterpart, Minister Goyal, for an ambitious free trade deal. India is one of the world’s biggest and fastest-growing economies and is home to more than a billion consumers, with a growing middle class eager to buy the goods and services that our country excels in. Securing a world-class FTA with India will deliver benefits for people across all four nations of the UK.

[Nia Griffith (Llanelli) (Lab)]

We know that India does not cede access to its markets easily and that one of its top demands in any trade deal will be generous visa concessions for Indian citizens to come to the UK. Recent press reports indicate that although the Secretary of State would consider such terms, the Home Secretary would oppose them. Will the Secretary of State clarify the Government’s negotiating position and what their red lines will be?

[Anne-Marie Trevelyan]

From services and digital to investment and intellectual property, we are aiming for a broad and ambitious deal with India that delivers for both businesses and consumers alike. The first round of negotiations started this week and we hope the second round of talks will be in March, at which point we will have the opportunity to shape and see the scope of the FTA that both countries want to work towards. We will confirm that at an appropriate time as the negotiations progress. We very much hope to reach a mutually beneficial agreement by the end of this year.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Scotch whisky exports to India, the world’s largest whisky market, have declined dramatically since 2019. A year on from Brexit, the Government can no longer deflect to the EU for their failure to deal with the eye-watering 150% tariffs that apply to Scotch whisky sales to India. Will the Secretary of State confirm today that her Government will finally make the removal of those tariffs a priority?

[Anne-Marie Trevelyan]

As the hon. Gentleman says, British products such as Scotch whisky and cars currently face substantial barriers to trade in the form of tariffs of well over 100% on their import into India. The reduction of tariff barriers would be a golden opportunity for UK exporters and, indeed, slash tens of millions of pounds off costs. We will put forward our position in a number of areas, including in respect of Scotch whisky, in the first round of negotiations in the next two weeks. We will make clear the issues that are important to us so that we can achieve a successful, mutually beneficial FTA for all sides.

[Drew Hendry]

The whisky industry is used to dealing with weights and measures, but it has been waiting for too long for measures from this Government. Will the Secretary of State confirm what target has been set for tariff reduction for Scotch whisky? Is it half, more than half or—what the industry needs—the complete removal of that 150% tariff? What is her measure of success?

[Anne-Marie Trevelyan]

The hon. Gentleman would be surprised if I were to disclose the details of my negotiations mandate at this point, but I think I have already been clear—I will say it again—that it is important that the trade deal is mutually beneficial, and the reduction of barriers to trade such as tariffs will be an important point of the UK’s negotiating mandate.

[Mr Philip Hollobone (Kettering) (Con)]

A free trade agreement with India would be a wonderful thing, but these agreements take a lot of negotiation and a lot of negotiators. When we were in the EU, we lost all our trade negotiators and we have had to build up the Department from scratch. How many free trade negotiators does my right hon. Friend have in her Department? Are there enough or do we need more?

[Anne-Marie Trevelyan]

We have a fantastic team of now extremely experienced negotiators. The team who are now focused on the India FTA not only bring with them a wealth of experience from Whitehall, but are experts drawn from a number of fields. We will be cracking on with these discussions, which will be virtual for the first two weeks, because of the restrictions in India, after which we hope to be able negotiate face to face. The teams—for instance those who worked on the Australia free trade deal—work 24/7, or whatever is required through virtual discussions. We will continue to do that, and we have a fantastic team leading the way.

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[David Duguid (Banff and Buchan) (Con)]

7. What steps her Department is taking to increase trade with Australia.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

The UK signed its first “from scratch” free trade agreement with Australia on 16 December 2021. The deal is expected to increase trade with Australia by 53%. Both countries have committed to removing tariffs on a vast array of popular products, which can now be more easily traded, including eliminating tariffs on 100% of UK exports. This deal is tailored to British strengths, providing benefits for our world-class services industry, unprecedented new opportunities for UK professionals abroad, and for trading digitally.

[Virginia Crosbie]

The Australian high commissioner is hosting a gala dinner on Ynys Môn on 18 February to help raise much-needed funds for the Anglesey Agricultural Society. How is the Minister working to help my island farmers and businesses increase trade with Australia?

[Anne-Marie Trevelyan]

First, I would like to wish the Anglesey Agricultural Society good luck with the Anglesey show, which I understand is in August. I look forward to an invitation and an excuse to pay a visit.

The UK-Australia trade deal could boost Wales’s economy by around £60 million. Welsh farmers will benefit from the opportunities to sell their produce in Australia, and Welsh manufacturers could benefit from new procurement opportunities and enhanced business mobility provisions. Many small businesses will also enjoy greater access to Australia.

[David Duguid]

Will my right hon. Friend provide a specific description of the protections and safeguards that are in place for farmers, particularly in Scotland, and what recent engagement her Department has had with National Farmers Union Scotland and other Scottish food production trade bodies?

[Anne-Marie Trevelyan]

The UK has secured a range of measures to safeguard our farmers, including tariff-rate quotas for a number of sensitive agricultural products, product-specific safeguards for beef and sheep meat, and a general bilateral safeguard mechanism providing a temporary safety net if an industry faces serious injury from increased imports as a direct consequence of the agreement. The NFU, Salmon Scotland and the Scotch Whisky Association are trade advisory group members which were consulted throughout negotiations and regular meetings, and we will continue to engage with the NFU and other Scottish agricultural bodies to understand the impact on the industry.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Following on from that, the Government’s own impact assessment shows a £94 million hit to farming, forestry and fishing sectors, and a £225 million hit to the semi-processed food industry. The Government have also negotiated first-year tariff-free allowances of a 6,000% increase on Australian-imported beef to the UK. Can the Secretary of State outline what conversations that she has had with the NFU, specifically about the impact of that deal on British agriculture?

[Anne-Marie Trevelyan]

We have continual and regular discussions with the NFU and other agriculture bodies. As I have just said, they have been integrally involved in the discussions all the way through, and I know that the ministerial team will continue to meet them. I believe that my Minister responsible for exports will be having a meeting with them next week.

[Dave Doogan (Angus) (SNP)]

Unseemly haste in securing as many free trade deals as quickly as possible and at massive expense in pursuit of a press release and a picture with some TimTams is not the optimal trade policy that people deserve. Scotland’s farming and fishing sectors are paying the price for this public relations jamboree masquerading as trade policy. The UK Government’s own figures show domestic agriculture, forestry and fishing will suffer a £94 million hit just from the Australia deal. Scottish producers saw established routes to EU markets needlessly frustrated by this UK Government’s Brexit dogma. Will the Minister therefore apologise to Scotland’s economy?

[Anne-Marie Trevelyan]

I am disappointed that moving to having new free trade agreements with some of the great economies of the world is considered unseemly haste. We are working at pace and alongside all our UK businesses with a clear and mandated consultation process to ensure that we are pitching for the areas of business in which our businesses want to see growth. The EU market continues to be there under our fantastic markets. Part of the work that the Export Support Service is doing is to ensure that those who already export can do so more easily and indeed that, for those who have not yet considered exporting to the EU, the opportunities and the support services are there to assist them.

[Jim Shannon (Strangford) (DUP)]

In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1 billion. Currently, the trade in meat products between the two countries is very small. Specifically, I want to ask this: what steps has the Minister taken to ensure that there is more focus on the trade of meat produce from the UK to Australia, to the advantage of people and farmers in Northern Ireland?

[Anne-Marie Trevelyan]

One of the new tools in our armoury will be the trade and agriculture commissioners—experts who will be there to help UK businesses that want to take their products into new markets, including Australia. I have no doubt at all that, just as we enjoy Australian wine, we will have the opportunity to see Northern Ireland meat on the plates of the Australians.

[Dr Neil Hudson (Penrith and The Border) (Con)]

Free trade agreements should be fair to both partners. The Australian FTA—dare I say it, like the Ashes cricket series—is a bit one-sided in favour of Australia. Will my right hon. Friend reassure the farmers in Cumbria and across the UK that the safeguard mechanisms in the agreement will have teeth? For instance, if the Australian meat market were to pivot away from Asia towards Europe, would the tariff rate quota mechanism be effective in turning down the supply of meat so that our fantastic British farmers are not undermined?

[Anne-Marie Trevelyan]

Yes, I am confident that the safeguards we have brought in, which I am happy to set out again, will support the most sensitive parts of the UK farming community. They include a general bilateral safeguard mechanism that provides a safety net for all those products, staged liberalisation, tariff rate quotas and specific safeguards for beef and sheep meat, which will be there to support fantastic British produce. Again, I encourage everyone to sing loudly about how fantastic our British produce is. It is eaten from plates across the UK and around the world. We will continue to see that finest produce enjoyed by all.

[Mr Speaker]

I thank the Secretary of State for not mentioning the cricket.

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

6. What recent discussions she has had with her US counterpart on the tariffs on UK steel exports to the US.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

I was pleased to meet virtually with the US Secretary of Commerce, Gina Raimondo, yesterday to discuss the application of US section 232 tariffs. As set out in our joint statement, which was published last night, the US has agreed to commence negotiations with the UK. I welcome that positive development, and I will push for a deal that is right for the UK. I will continue to work closely with industry throughout the negotiations. The UK accounts for less than 1% of US steel and aluminium imports in volume terms, so UK imports do not affect the viability or the national security of the US steel or aluminium industries.

[Sir Mark Hendrick]

The International Trade Secretary will recall the Hallowe’en agreement from last year, when the US gave tariff-free access to the EU for steel and aluminium exports from the beginning of this year. That means that the EU will now have a 25% price advantage over UK steel and aluminium exports to the US. In fact, any UK steel, even if worked on in the EU, will still attract tariffs in the US. Is that what the Prime Minister meant when said he said Brexit was about taking back control?

[Anne-Marie Trevelyan]

As I said, it is a Government priority to secure a good deal and ensure that we find the right way forward to get out of the section 232 tariffs, which we are doing at pace. The US Secretary of State for Commerce and I will work to ensure that that imbalance is removed as quickly as possible.

[Nick Thomas-Symonds (Torfaen) (Lab)]

At the start of last month, I wrote to the Secretary of State about those steel tariffs, which have been in place since 2018 and have already done great damage. In 2017, exports of steel and aluminium to the United States were more than 350,000 tonnes. In 2020, that had fallen to 200,000 tonnes. The situation is urgent, because as my hon. Friend the Member for Preston (Sir Mark Hendrick) set out, the EU gained a competitive advantage on new year’s day, with the US having lifted tariffs for EU member states but not the UK. I welcome the opening of those negotiations, but will the Secretary of State confirm that in advance of those talks the Prime Minister raised the issue personally with President Biden?

[Anne-Marie Trevelyan]

I assure the House that I have been extremely robust in moving the issue along since coming into post. I am pleased that we were able to launch these negotiations yesterday. It is important that we sort out and remove those unnecessary and burdensome tariffs on the UK. The UK steel and aluminium industries are not a threat to the US ones. We were working closely at every level to ensure that we find a solution as quickly as possible.

[Nick Thomas-Symonds]

The lifting of the tariffs is vital for jobs and livelihoods across the country, yet the Secretary of State could not confirm that the Prime Minister has raised the issue with President Biden. The truth is that the Prime Minister has been more interested in saving his own job than in saving jobs in the steel sector. The longer the tariffs remain in place, the more damage the Government allow to happen to our steel sector, a foundational industry that is vital for our economy. If the Secretary of State cannot even confirm that the Prime Minister has picked up the phone to the US President about that, are people not right to conclude that the Prime Minister is focused on saving himself and does not care about steelworkers’ jobs?

[Anne-Marie Trevelyan]

I hope that the right hon. Member will assist us in the negotiations by speaking to their counterparts and indeed all those across the US who want the tariffs removed. I reiterate that at every level of the UK Government we have raised the issue with the US, and we are therefore at the point where we are now starting negotiations, which will move at pace. I look forward to his assisting us to ensure a successful outcome.

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

8. What progress her Department has made on maximising opportunities for international trade in 2022.

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[Stephen Farry (North Down) (Alliance)]

10. What assessment she has made of the implications of the Australia and New Zealand free trade agreements for concluding a veterinary agreement with the EU.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

Nothing in the UK-Australia or UK-New Zealand agreements prevents the UK from reaching a veterinary agreement with the EU. Our agreements allow the UK to co-operate with both Australia and New Zealand and with the EU to avoid unnecessary sanitary and phytosanitary barriers to trade in agrifood, without constraining the UK’s right to regulate in those areas. We are open to discussions with the EU on additional steps to further reduce trade frictions.

[Stephen Farry]

The European Union will remain the UK’s largest export market for the foreseeable future, so the priority must be to remove all remaining non-tariff barriers, especially to help our UK agrifood exporters, and also to address some of the tensions around the Northern Ireland protocol. Does the Minister recognise that other free trade agreements risk restricting the nature of any EU veterinary agreement to one that is more limited and based around equivalence, rather than a more comprehensive one based on alignment? That will restrict our ability to trade with the EU to the maximum potential in the future.

[Anne-Marie Trevelyan]

We are clear that we want goods to be able to travel from Great Britain to Northern Ireland without unnecessary barriers, and the Government continue to be in intense discussions with the EU with the aim of delivering those significant changes to the protocol, so that there should be a green channel for goods in and out of Northern Ireland and no further checks or documentation for goods moving between GB and Northern Ireland. This is an important part of that wider process, and our trade agreements with the rest of the world will continue to champion Northern Ireland as part of the United Kingdom.

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[Marion Fellows (Motherwell and Wishaw) (SNP)]

16. What recent assessment she has made of trends in the level of UK trade with the (a) EU and (b) rest of the world.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

Official statistics up to end of November last year show that UK trade in goods with the EU has seen three consecutive monthly increases, with November showing an increase of nearly 3%. Goods trade with the EU is now above average levels for 2020, although still below 2019 levels. UK trade in goods with non-EU countries is at record monthly levels, with recent increases due to the high fuel prices we are seeing across the globe. UK trade in services with EU and non-EU countries continues to show small increases as covid restrictions on the movement of people ease, but trade remains below pre-covid levels.

[Marion Fellows]

Ireland has seen goods imports from Great Britain drop by more than a fifth since Brexit. Ireland has also, in that time, increased its goods exports to GB by more than 20%, and imports from Northern Ireland to the Republic jumped by more than 64%. Is it not the case that, by becoming independent, Scots will open the gate to 27 other markets and that Scotland can access that bridge to economic prosperity, as trade levels in the Republic and Northern Ireland are proving to us now?

[Anne-Marie Trevelyan]

On this side of the House, we continue to know that the Union is the strongest way that Scottish businesses can continue to export. Some 75% of exports are to the rest of the United Kingdom, and we want to make sure that, as well as trading with all of us, they have the opportunities our free trade agreements will make and find that selling their fantastic goods and services across the world becomes easier. However, we continue to say that the best way for Scottish businesses to do that is to stay within the UK.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Last week at Expo in Dubai, I was struck by the number of trade reps and investors from across the Gulf who told us just how much easier they have found doing business visits to London in recent months compared with other cities internationally. Does my right hon. Friend agree with me that such remarks underline just how important it was for us as a Government, from a trade and investment perspective, to get right those big decisions about the vaccine roll-out and relaxing the covid restrictions to give us a head start as the international trading community recovers from covid?

[Anne-Marie Trevelyan]

My right hon. Friend is absolutely right. The Prime Minister has taken some incredibly tough decisions, and in doing so has made sure that our economy has stayed open and our population has remained safe. We have been world leading not only in vaccine production, but in distribution, so ensuring that the trade and enterprise so vital to our constituents and across the world supports healthy economies and, indeed, makes sure that everybody is in as good health as possible. It is lovely to hear those messages. What I hear as I travel around the world is that the UK is open for business, and we are seeing the benefits of that across the piece.

[Peter Grant (Glenrothes) (SNP)]

Purchasing managers index information shows that in December 2020 the United Kingdom was the only economy in the entire western world to see a fall in exports. Who is responsible for that?

[Anne-Marie Trevelyan]

To go back to my earlier point, as we see markets open up and opportunities for amazing UK businesses to discover not only the markets some are in already but new markets, the export support service and the team at the DIT stand ready to support all those who want to expand and share the UK’s amazing goods and services with the rest of the world. “Made in the UK, Sold to the World” is our campaign motto, and that is what we want to support everybody to share and get out there.

Topical Questions

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

The Department’s five-star year 2022 has begun at pace with the launch of our India free trade agreement negotiations, the signing of the sovereign investment partnership with Oman, discussions with Brazil towards an economic trade partnership, the launch of our new and improved trade show programme, and the virtual African investment summit taking place today. As I mentioned earlier, yesterday I met with US Secretary of Commerce Gina Raimondo to start negotiations with the US on the section 232 tariffs. These have cost the steel industry over £60 million per year; I am firmly pressing for their express removal and am confident we can now make fast progress towards this to ensure that trade works in the interests of all UK businesses and workers.

[Sir Mark Hendrick]

Further to my earlier question with regard to US steel tariffs and section 232, what are the chances of our getting those tariffs lifted, given that the Prime Minister is playing fast and loose with security policy on Northern Ireland, particularly through doing his best to trash the Northern Ireland protocol?

[Anne-Marie Trevelyan]

We will be pushing for a deal that is right for the UK steel industry and I am confident that the long-standing alliance between the UK and the US, built on a rich history of shared values and free and fair trade, will ensure that the negotiating outcomes are what we need for UK industry. The UK and the US work together across the piece in so many difficult areas at the moment and I hope that those in all parts of the House will continue to give support as we take on some of those challenging security issues.

[Shaun Bailey (West Bromwich West) (Con)]

T2. With over £2.6 billion-worth of exports, I am sure my right hon. Friend agrees that the Black Country is, and will remain, the beating industrial heart of the west midlands. As she goes out with ministerial colleagues to bat for the Black Country on the industrial stage, what is she doing to ensure that supply chain issues in particular are at the forefront of our trade negotiations, and that businesses such as KJV Furniture in Oldbury are able to import and export smoothly; and will she ensure that once again other areas of the world can see the fantastic wares that are made in the Black Country?

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[Stephen Kinnock (Aberavon) (Lab)]

T3. The European Union secured a comprehensive exemption from the section 232 steel tariffs way back on 30 October 2021. Here we are, almost three months later, and talks with the UK Government are only just starting. To ensure that the talks proceed smoothly and rapidly, we need to understand the cause of the delay. Does the Secretary of State agree that the probable cause is the Government’s shambolic handling of the Northern Ireland protocol? If she does not think that is the cause, perhaps she will enlighten the House about what she thinks the cause of the delay has been.

[Anne-Marie Trevelyan]

As 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.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

T9. As some of my colleagues have already pointed out, it would be wrong to say that there is not some nervousness in rural Scotland about what the deal with Australia will mean. Some of that is caused by the anti-trade scaremongering on the SNP Benches, but will the Minister expand on the opportunities for Scotland as a result of our deal with Australia?

[Sarah Green (Chesham and Amersham) (LD)]

T4. Can the Secretary of State confirm whether she is still undertaking discussions with UK trade partners on inserting clauses on investor-state dispute settlement systems into future trade deals? There is evidence that they are opaque and could open the UK to law suits from multinational corporations. Will she confirm whether she is still pursuing them?

[Anne-Marie Trevelyan]

Every free trade agreement is negotiated in relation to the other country and we will continue to work with those as we build these, to look at how we best bring together free trade agreements that will be beneficial to UK businesses and consumers.

[Martin Vickers (Cleethorpes) (Con)]

Last Friday, along with a number of local businesses, I took part in a meeting of the parliamentary export programme for my constituency businesses. What additional initiatives do Ministers have to encourage small and medium-sized enterprises, in particular, to look at and engage in the export market?

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T7. May I bring the Secretary of State’s attention to the analysis published recently by the Scotch whisky industry, showing that even a phased reduction of the 150% tariffs on its products sold into industry could bring back a £1 billion increase in exports and something in the region of 1,300 UK jobs? As she continues with the dialogue with India about a trade deal, will she give us some commitment that the reduction and elimination of that tariff would be one of her biggest priorities in an early harvest agreement? [R]

[Anne-Marie Trevelyan]

As I said, the negotiations with our Indian counterparts have just begun. We will not discuss the details of the negotiations while they are going on, but I have been very clear with the Indians and through our consultation process that we will want to see movement on issues such as high tariffs on some of our iconic UK products.

[Bob Blackman (Harrow East) (Con)]

My apologies for not being here earlier, Mr Speaker. Clearly, the start of the talks with our friends in India is extremely welcome news, particularly for Scotch whisky exporters, who could gain tremendously. Will my right hon. Friend update the House on the projected timetable, and will she publish some objectives in relation to what we are attempting to achieve with our friends in India?

[Anne-Marie Trevelyan]

Following our discussions last week, Minister Goyal and I were very clear that we want our negotiating teams to crack on and get a clear picture of the areas that we want to bring together in our free trade agreement with India. We have set our negotiators an initial target to see whether we can bring this to a conclusion at the end of this year or in early 2023.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

British wine traders have expressed concern that the Chancellor’s reforms to alcohol duty might lead to higher prices and less choice in wine. What discussions has the Secretary of State had with her Cabinet colleagues about the impact of these reforms on industry’s ability to trade effectively?

[Anne-Marie Trevelyan]

The Chancellor brought in duty reforms that are focused on health: the higher the amount of alcohol, the higher the tariff. Interestingly, as I have been travelling the world, I have mentioned the policy to other countries, and they see it as a really intelligent way to ensure that they balance the opportunities from the healthy management of alcohol drinking and the opportunities that fantastic producers—such as all of ours in the UK—have to reach a wider audience while ensuring that people always drink carefully and wisely.

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[Marion Fellows (Motherwell and Wishaw) (SNP)]

Talks on steel and aluminium tariffs have started, but Washington has still to confirm the apparent virtual plan. The British economy, instead of becoming global post Brexit, is not. My constituents at the Dalzell works in Motherwell want to see progress on the punitive tariffs so that they can sell to the Americans. The relationship between President Biden and the current Prime Minister is not particularly rosy, but can the Secretary of State confirm that whoever is Prime Minister in the upcoming time, she will ask them to intervene and get this sorted?

[Anne-Marie Trevelyan]

I am thrilled that we were able to launch the negotiations formally yesterday. I will make sure that I keep in touch with all across the UK steel industry as we move forward. The US Secretary of Commerce and I have been clear, through our teams, that we want to resolve the matter at pace, and that is what we will be doing.