Oral Answers to Questions

Anne-Marie Trevelyan Excerpts

Thursday 3rd March 2022 Commons Chamber

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

1. What steps she is taking to improve the application process for export licences.

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

The Export Control Joint Unit has statutory responsibility for the licensing of controlled exports. In 2020, it administered more than 16,000 licences. The ECJU provides guidance and training on the application process. Work is presently under way to modernise the application process and the technology that supports it, to make it more efficient and more transparent.

[Sarah Green]

Trying to export goods is currently a slow and inefficient process. One toy business in Chesham and Amersham told me that it now spends significantly more time on the paperwork than it ever did before. A recent survey of businesses in Buckinghamshire showed that 58% have experienced a rise in cost due to an increase in the same red tape. What proactive, practical steps are the Government taking to help businesses of all sizes to export their goods to the rest of the world?

[Anne-Marie Trevelyan]

In 2020, the ECJU administered nearly 16,000 standard individual export licences. It completed 62% within 20 working days, against a target of 70%, and 85% within 60 working days, against a target of 99%. That is why we have brought in work to modernise and streamline the application process so that it will be more efficient and—further to the hon. Lady’s point—will allow businesses to know that they can use the system as effectively and with as little red tape as possible.

[Andy Carter (Warrington South) (Con)]

2. What steps her Department has taken to reduce barriers to global trade for British businesses.

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[Bill Esterson (Sefton Central) (Lab)]

3. What further steps she is taking to increase exports of steel.

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

My Department recently published our refreshed export strategy, which has an action-led 12-point plan, and we have introduced a whole range of support measures, as the Under-Secretary of State for International Trade, my hon. Friend the Member for Finchley and Golders Green (Mike Freer) has just set out, to help exporters to thrive in the global market, including, of course, our high-quality steel, internationalising key trading sectors and raising the UK exporting culture across the UK for the long term.

[Bill Esterson]

We can learn from the United States, of course, where the Made in America Act 2021 and informal targets in Government contracts support US steelmakers. The UK Government have told me that the World Trade Organisation does not allow them to do that, but the US example shows that that is not true. Will the Secretary of State tell her colleagues across Government that we can help boost steel exports if the UK Government give a big vote of confidence to our steel industry and start to make, buy and sell more in Britain?

[Anne-Marie Trevelyan]

UK steel exports across the world are worth nearly £4 billion. As the hon. Gentleman knows, we are in very detailed talks to ensure that our UK to US steel exports get back on track and to clear out the issues caused by the section 232 tariffs over the past couple of years. We and my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy continue to work with the steel industry to ensure that what is some of the world’s best steel, made across our UK steel yards, will continue to find new markets. We work not only with the US but with all our likeminded allies in the WTO against those market-distorting practices that some nations choose to use, which continue to degrade and devalue the high-quality steel made in the UK. We continue to work very closely with the industry but also with those across the world who want to make sure that the steel market works as it should.

[Andrew Bridgen (North West Leicestershire) (Con)]

Expanding on that question, could my right hon. Friend explain what progress she is making on resolving the section 232 tariff issues regarding exporting steel to the United States?

[Anne-Marie Trevelyan]

In 2018, the US imposed section 232 tariffs on global imports of steel and aluminium—a defensive reaction at the time to overcapacity in the global steel market and for its own national security purposes. I was able to get the negotiations back on track. My counterpart Secretary Raimondo and I started negotiations to resolve this issue in mid-January. The negotiations are proceeding at pace. Our officials are working flat out to clear through some of the issues, and we hope very much to be able to bring good announcements here in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her clear commitment to helping the steel sector. In 2021, the UK’s export levels of steel decreased by around £53 million of GDP compared with the previous year. What steps has the Secretary of State taken to ensure that there are no further decreases in 2022 and that small steel businesses, which I have in my constituency, and larger manufacturers are supported in this very uncertain period?

[Anne-Marie Trevelyan]

The hon. Gentleman is right. As post-covid markets and industrial sites pick up, the demand for steel across the world is growing at pace. We want to make sure that the high-quality steel that we make across the UK finds the right markets. On my travels in my role, I speak regularly to those across the world who are doing complex infrastructure work where our high-quality steel products will be an important part of their procurement programmes. We are making good progress. As I say, I work very closely with the BEIS Secretary to ensure that we give the steel industry all the support that it needs.

[Andrew Rosindell (Romford) (Con)]

4. What steps her Department is taking to increase trade with (a) Australia and (b) New Zealand.

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

The free trade agreements that the Government signed with Australia in December and with New Zealand on Monday this week will end tariffs for British exporters and slash red tape, while making it easier for smaller businesses to break into these important markets. The deals with Australia and New Zealand are expected to increase bilateral trade by 53% and 59% respectively in the medium term. These FTAs are also expected to boost the UK economy by over £3 billion.

[Andrew Rosindell]

I congratulate my right hon. Friend on signing the free trade agreement with New Zealand, which is another positive step in rebuilding the bonds and historic links we have with the Commonwealth nations, but does she agree that we must do all we can to maintain the benefits secured by this deal by ensuring that any changes to alcohol duty will deliver for UK consumers and that they do not see domestic taxes on wine go up as we finally, and rightly, remove the tariffs?

[Anne-Marie Trevelyan]

Our deal with New Zealand is indeed very good news for UK consumers, increasing choice and helping to lower prices on all New Zealand products that are going to come into the UK. The deal removes all tariffs, saving up to 20p a bottle on New Zealand wine. As my hon. Friend seems keen, he will be pleased to know that the products that British consumers love, such as Marlborough sauvignon blanc, will be more affordable. The question on domestic taxation continues to be one that the Treasury looks at and decides on the basis of the health of our citizens, and I shall continue to allow the Chancellor to make those decisions.

[Chris Elmore (Ogmore) (Lab)]

Earlier this week, I had the privilege to meet the president of the Farmers Union of Wales, who has expressed concerns about both trade deals, specifically in relation to tonnage of imported meat and whether it will be on the bone or filleted, as this will make a significant difference to the scale of flooding of the UK market. The president tells me that he has been unable to get an answer from the Department on what he deems to be a pretty simple question. I used to be a butcher, and I know that there is a significant difference between the weight of something boned and something deboned when anyone buys it in the shops. In all seriousness, could the Secretary of State clarify this here at the Dispatch Box, or get in touch with the Farmers Union of Wales to confirm this important point in terms of supporting our farming industry?

[Mr Speaker]

That is a filleted question.

[Anne-Marie Trevelyan]

I have learned something new about the hon. Gentleman. I did not know that that was a former career of his, and I look forward to bringing him into future trade deals to discuss the minutiae of these details. I will ensure that my officials liaise with the Farmers Union of Wales in detail, so that it has absolute clarity on what is in that very large document—a treaty is not just a couple of bits of paper—and we will of course be publishing all the paperwork and the relevant support documents for Parliament and the wider community to have a closer inspection. I will make sure that my officials pick that matter up this week.

[Anthony Mangnall (Totnes) (Con)]

It is welcome to see the progress the Government are making with the digital partnership with Singapore, the Australia trade agreement, the New Zealand trade agreement and the comprehensive and progressive agreement for trans-Pacific partnership. This is not anti-trade but pro-trade—and free trade, for that matter. The Secretary of State has come before the International Trade Committee and told us that she would give us scrutiny. The Trade and Agriculture Commission was given eight days’ advance warning on the New Zealand deal, but the International Trade Committee was not. Can she tell us why the Committee was not given the scrutiny of the New Zealand deal that it should have had?

[Anne-Marie Trevelyan]

The Minister for Trade Policy answered a point of order yesterday setting out the detail of the communications. We always try to ensure that we are able to provide the information in as timely a manner as we can. I am looking forward to my opportunity to discuss the Australian and New Zealand trade deals in more detail with the International Trade Committee—I think it is already in the diary—and I know that it will hold me to account 100 % when I get there.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

A £150 million hit to fishing, forestry, agriculture and food manufacturing from the New Zealand trade deal was described in this Government’s impact assessment as nothing more than a “process of economic adjustment” and just a

“reallocation of resources within the economy”.

This again exposes the Government’s shock-doctrine, libertarian approach to free trade and the economy. Can the Secretary of State tell us whether she is content for those sectors to just go down with the Brexit ship?

[Anne-Marie Trevelyan]

The New Zealand free trade agreement will see bilateral trade increase by almost 60%, which we expect to boost the UK economy by nearly £1 billion in the next few years and to increase wages across the UK. Red tape will be slashed for nearly 6,000 UK small and medium-sized enterprises, with nearly 250,000 people working in those supply chains. UK exporters will no longer pay tariffs on a huge range of foods, and they will now have an advantage over international rivals.

It is exciting that we will be able to offer new opportunities for our smaller businesses to discover and grow into the New Zealand market. Indeed, we will be working very closely with our New Zealand partners as we look to accede to the comprehensive and progressive agreement for trans-Pacific partnership later this year, which will open up enormous new markets for all our exporters across every field of opportunity.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

5. What steps she is taking to support farmers and food producers through trade deals.

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[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

9. What recent discussions she has had with the Secretary of State for Environment, Food and Rural Affairs on the potential impact of the Government’s plans for regulation of foie gras and fur imports on trade negotiations.

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

The Government are committed to upholding the UK’s high environmental protection, animal welfare and food standards, as outlined in our manifesto. I have regular discussions with the Secretary of State for Environment, Food and Rural Affairs, and the Government will update the House in due course on any future legislation.

[Allan Dorans]

I thank the Secretary of State for her answer. My constituents in Ayr, Carrick and Cumnock, and elsewhere, are very angry that the Government are considering dropping the proposed ban on foie gras and fur imports, when there are perfectly acceptable alternatives to both that do not involve cruelty to animals. Foie gras involves the force feeding of ducks and geese to fatten and enlarge their livers, and fur imports into the UK involve animals being kept in cages that are far too small. How can the Government continue to claim that the United Kingdom is a world leader on animal welfare?

[Anne-Marie Trevelyan]

We have agreed groundbreaking animal welfare provisions in our Australia and New Zealand trade deals, including stand-alone chapters reflecting the importance of animal welfare. As we do more trade deals in the months and years ahead, that will continue to be an incredibly important part of our focus. In relation to the specific issues that the hon. Gentleman has raised, DEFRA ran a call for evidence last year, from 31 May to 28 June, seeking public views on the fur market. A summary of responses to that call for evidence will be published soon.

[Alexander Stafford (Rother Valley) (Con)]

10. What steps her Department is taking to increase trade with the Persian Gulf countries.

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[Bob Blackman (Harrow East) (Con)]

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

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

In light of Russia’s outrageous, unprovoked invasion of Ukraine it is more important than ever that we stand together with those who share our values and take swift and firm action against those who seek to overthrow democracy and threaten our allies. Trade between friends and allies promotes growth and prosperity and, in a climate of mutual respect, free and fair trading rules bring a mutual economic and cultural boost between nations.

Last week I was in Singapore to sign our new digital economy agreement, the most innovative trade agreement ever signed. The digital sector alone adds £150 billion to the economy and lifts wages, with workers earning around 50% more than the UK average. The agreement connects the UK to the fastest-growing economies in the Asia- Pacific region and furthers our bid to join Singapore and 10 other nations in the trans-Pacific partnership. Membership will mean access to a free trade area with a GDP of £8.4 trillion and vast opportunities for our UK exporters.

On Monday this week, I signed the UK-New Zealand free trade agreement with my fellow Trade Minister Damien O’Connor. The agreement is the UK’s second trade deal negotiated from scratch since leaving the EU. We are demonstrating that global Britain can achieve as a sovereign trading nation, and we are strengthening ties with a close ally that shares our firm belief in free and fair trade.

[Bob Blackman]

I congratulate my right hon. Friend on the trade deals thus far. Last week we held an excellent debate in Westminster Hall on the UK-India talks, and I congratulate her also on kicking those talks off. Will she update the House on the progress of those talks, and can she ensure that we conclude them by the end of this calendar year?

[Anne-Marie Trevelyan]

On 13 January this year, our UK-India FTA negotiations were launched in Delhi. That first round concluded on 28 January. Discussions were productive and reflected the UK and India’s shared ambition to secure a comprehensive deal that will boost trade for both our nations. The positive discussions laid the groundwork for the UK and India to make positive and efficient progress, and the second round is due to begin on 7 March. I would not wish to give a precise landing zone, but we are working very closely and with optimism and effort on both sides.

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

The whole House stands in solidarity with the Ukrainian people, who are defending the right of sovereign nations to live in freedom with courage, determination and fortitude. Labour supports the toughest possible economic sanctions on Putin’s Russian regime, which is carrying out this barbaric and illegal invasion. I welcome the restrictions on banking and financial measures and the export ban on high-end technical equipment and components in electronics, telecommunications and aerospace, but at the same time we can and must do more. Labour Members have called for a total ban on exports of luxury goods to Russia. Will the Secretary of State heed those calls and commit this Government to that export ban on luxury goods so that Putin and his inner circle cannot live a Mayfair lifestyle in Moscow?

[Anne-Marie Trevelyan]

It is a great reassurance for the Ukrainians to know that in all parts of the House, here in the mother of Parliaments, we all stand together supporting them in every way that we can, and, across the world, bring together those voices that say, without exception, that the unprovoked aggression that Putin is showing Ukraine is unacceptable. We will continue to work across Government to make sure that we are using our UK powers as well as working with allies from across the world to tighten the screw so that Putin and his regime will find it more and more difficult not only to sustain their military campaigns but also find that they will no longer have access to their funds. The Foreign Secretary will continue to work on a number of areas. The impact of the SWIFT sanctions will be dramatic and catastrophic for Putin.

[Nick Thomas-Symonds]

I do of course appreciate that it is vital to work together with friends and allies, but let me push the Secretary of State on this specific point, because cutting off the supply of luxury products would send a further signal to those in Putin’s Kremlin, who have, by the way, often accumulated wealth and possessions at the expense of the Russian people. We can act on this and we can act now. So will the Secretary of State work with her colleagues across Government, and indeed Governments across Europe who have concerns, whether on clothing, jewellery or diamonds, to get a comprehensive ban in place to stop Putin and his inner circle living in luxury while barbaric, evil acts are perpetrated on the people of Ukraine?

[Anne-Marie Trevelyan]

We will continue to work across Government using all the tools I mentioned, but in the meantime I encourage all those who continue to export to Ukraine to use the Export Support Service if they need that support. We will continue to use all the tools at our disposal to make sure that Putin understands fully that the behaviour he is demonstrating is absolutely outrageous. The Foreign Secretary will lead those discussions.

[Selaine Saxby (North Devon) (Con)]

T2. We have many successful global exporters home grown in North Devon, such as Turnstyle Designs, S+H lighting and Saltrock surf wear, but many smaller companies feel that this is not something that they can do. Will my hon. Friend highlight what support is available to companies in remote and rural areas such as North Devon to help them to grow and export?

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[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

Trade rules are so often rigged against women, especially women living in lower income countries. Will the Department commit to carry out mandatory gender impact assessments on all future UK trade deals in order to promote greater gender-just trade?

[Anne-Marie Trevelyan]

As part of the free trade agreements we have negotiated so far, we have specific gender chapters, because we wish to use the authority and the commitments that we make to these issues and work with these friends and allies with whom we are drawing trade agreements together. We want to ensure that we push for those values and for ground-level opportunities for SMEs led by women across the world, so that they can achieve.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T4. Some pork producers, including Cranswick, which has premises in Thirsk and Malton, did the right thing and self-suspended export licences to China due to a covid outbreak. Seventeen months later, those licences have not been reinstated. Can we do whatever we can to get these licences back in place? It would help Cranswick, those other producers and the pig industry generally, which is suffering quite badly.

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

It cannot be business as usual. As many countries are needing to divest and diversify their energy supply away from Russia, what trade mechanisms can the Secretary of State put in place to ensure that the UK can be part of that effort to assist those countries achieving that objective?

[Anne-Marie Trevelyan]

As we continue to look at how we can use our sanctions powers and work with allies across the world, things like the new sanctions brought in by the Secretary of State for Transport over the past week will start to bite on energy flows coming out of Russia.

[Harriett Baldwin (West Worcestershire) (Con)]

T5. I warmly welcome the new trade deals that are being announced. Not all of them include financial services, which is our biggest export sector. Working closely with the Treasury, can the Secretary of State update the House on where the strategic focus is in increasing access for financial services firms and financial services exports?

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[Mr Speaker]

Do you want to leave? Seriously, it is not fair to other Members. I have to look after all Back Benchers.

[Anne-Marie Trevelyan]

We will continue to work across Government and with our allies to ensure that Putin’s regime feels the absolute force of all the sanctions that we can bring to bear.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Short question: I have every respect for the Secretary of State. Will she promise to burn the midnight oil and do something very dramatic to take on Russia and those countries that have failed to criticise it?

[Anne-Marie Trevelyan]

The hon. Gentleman will be pleased to hear that not only I but every member of the Cabinet and all our Ministers are indeed burning the midnight oil to ensure that, as we work with our allies across the world, the message is absolutely clear and that pain—economic and other—is felt firmly by Putin.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

This year’s research by Social Enterprise UK has found that social enterprises are overtaking the rest of the private sector in the proportion of firms that are exporting overseas. Does my hon. Friend agree that that shows the value of greater diversity in business?

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[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that although the big landmark trade deals, such as those with Australia and New Zealand, grab all the headlines, of equal importance is the less-publicised work that she is doing to tear down the trade barriers that prevent the export of British goods and services around the world?

[Anne-Marie Trevelyan]

My hon. Friend is exactly right. Not only do the free trade agreements open the door for new opportunities to take away market access barriers but we continue to work week in, week out to pick off those market access barriers that can release more trade with friends and allies around the world. Some 200 of those have been cleared in the last month and we will continue to work closely on others. I encourage businesses that have particular issues to bring them to the Department’s attention.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

In standing four-square with the people of Ukraine, it is important that we really make sanctions work and the Government have led the world in doing that. Crypto- currencies have been widely used to evade sanctions. Will my right hon. Friend look into that matter?

[Anne-Marie Trevelyan]

I will ensure that my Treasury colleagues take note of my hon. Friend’s question.

[Alexander Stafford (Rother Valley) (Con)]

Steel is hugely important for Rotherham and Rother Valley, which is why it is essential to see the tariffs set by the United States on British steel dropped as soon as possible. Can my right hon. Friend outline what steps she is taking to get a resolution on this to get more jobs for Rother Valley and Rotherham?

[Anne-Marie Trevelyan]

My hon. Friend is a champion for Rother Valley, and he will be pleased to know that our section 232 tariff negotiations are going well. I will be speaking to my opposite number, Secretary Raimondo, in the next few days, and we hope to reach a conclusion very shortly.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, there are 123,000 SMEs. What steps is the Secretary of State taking to ensure they are awarded the same trade opportunities as those in the rest of the United Kingdom, and has the Northern Ireland protocol hindered trade opportunities for SMEs?