Oral Answers to Questions

Anne-Marie Trevelyan Excerpts

Thursday 21st April 2022 Commons Chamber

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

5. What recent assessment the Government has made of the effect of the UK's departure from the EU on UK global exports.

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

For the first time in decades, the UK has an independent trade policy. We have secured FTAs with 70 countries plus the EU, covering nearly £800 billion-worth of bilateral trade in 2020, creating new opportunities for our UK exporters. To take these and more—building on an over £56 billion increase in nominal exports between 2016 and 2021—our export strategy is focusing on the needs of exporters, including a new export support service for exporters to Europe.

[Mr Sheerman]

I can never be nasty to this Secretary of State as we are old friends. The fact is though that, as I trained at the London School of Economics as an economist and I like looking at the data, I can see that we have lost £20 billion in exports since we left the European Union. The Office for Budget Responsibility and everyone else says what great damage has been done to small and medium-sized manufacturing enterprises, which Mr Speaker has in his constituency and I have in Huddersfield, the heart of SME manufacturing. Those businesses are hurting. The Secretary of State’s website says for them to get in touch with her if they need help. What help can she now give to small businesses in this country to enable them to cope?

[Anne-Marie Trevelyan]

Although there was indeed a drop in exports during covid, we have seen a 10% increase in the last quarter, which is very welcome. I am always happy to meet the hon. Gentleman, as he knows, to discuss any particular businesses, but the export support service, which has now been running for a number of months, is there to support SMEs in particular if they have issues with a country in Europe with which they want to trade. The team has also been focusing on supporting businesses with Russian and Belarusian activities in the past month, especially on supporting them to find alternative supply chains. The export strategy, which we published in October last year, is bringing together a whole series of tools to help those SMEs to discover new markets, and, indeed, to use the ones that now have more prospects thanks to the FTAs that we have.

[Jacob Young (Redcar) (Con)]

I congratulate the Secretary of State and her Department on their success in lifting the US 232 tariffs on UK steel and aluminium. Does she not agree that this flexibility to boost global trade afforded to us by our departure from the European Union is exactly why my constituents voted for Brexit?

[Anne-Marie Trevelyan]

I congratulate my hon. Friend on his recent marriage, which is very exciting. Let me just note that those of us on the Front Bench begin to feel very old when our youngest Members start taking this great step of confidence, which exactly reflects how my hon. Friend has campaigned for his constituents on the matter of steel. It has been a real pleasure to be able to bring the section 232 tariffs to a conclusion so incredibly quickly, working with my US counterparts and understanding that our UK-US relationship is critical not only to trade, but across so many of those inter-related activities. We are working closely together on trade and security matters as we deal with the terrible challenges in Ukraine.

[Mr Speaker]

I call the Chair of the International Development Committee.

[Anne-Marie Trevelyan]

As I have already set out, the export support service, which we launched at the end of last year, is there to support those SMEs that have experienced technical issues when trading with the EU. Many of those issues have now been resolved, and we are helping businesses to deal with them. We are also helping those SMEs in all our constituencies that are considering exporting for the first time to look at how they can discover markets within the EU, across the wider European nations and in the rest of the world.

[Mr Speaker]

We now come to the Front Bench, with shadow Minister Gareth Thomas.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I take this opportunity to wish Her Majesty the Queen a very happy birthday, and all the great people of England a very happy St George’s day at the weekend.

With the Chancellor’s having accepted a report from the Office for Budget Responsibility confirming an ongoing 15% hit to British exports to Europe, and given, as my hon. Friend the Member for Huddersfield (Mr Sheerman) alluded to, the continuing extra red tape, customs checks and costs that businesses here face thanks to the Prime Minister’s poor trade deal with Europe, when will the Secretary of State publish a plan to put right some of that damage, to help British business and to make Brexit work better?

[Anne-Marie Trevelyan]

I will set out just some of the areas the export strategy is bringing forward, to help the hon. Gentleman to see exactly the strategic work we are doing. There is the export support service, which I have mentioned, and financial support for exporters, working through the shared prosperity fund to include export support through local investment plans. UK Export Finance is there to help and will look at supporting SMEs, where historically it has only supported large contracts. Having run a successful regional pilot of the UK Export Academy, we are rolling that out across the UK, providing digital tools. That is proving very popular, as businesses can educate themselves before launching into new markets.

[Gareth Thomas]

The Department’s own research shows that export-related jobs pay higher than average, so the hit to our European exports, which the Secretary of State seems so complacent about, will prolong the cost of living crisis. It also underlines that since 2010 British exports have significantly underperformed compared with the rest of the G7, notably the United States and Germany. Businesses tell us that other countries have more ambitious export support programmes, while the Prime Minister blames our exporters for a lack of “energy and ambition”. Where does the Secretary of State think the blame lies?

[Anne-Marie Trevelyan]

I have set out the export strategy, which is bringing forward these tools, which goes exactly to the hon. Gentleman’s point. We are the opposite of complacent; we are here to support, through a dozen different routes, businesses to grow the export markets they already have or to discover exporting for the first time. One in seven businesses that could export does not yet, and we are keen to help those businesses find those markets across the globe, not only across the EU. Free trade deals such as the comprehensive and progressive agreement for trans-Pacific partnership, which we are negotiating this year, will give us the opportunity to open up nearly $8 trillion-worth of new markets. We want to ensure that businesses can access those through all the tools we are providing for them.

[Ben Everitt (Milton Keynes North) (Con)]

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

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[Bell Ribeiro-Addy (Streatham) (Lab)]

7. What recent discussions she has had with Cabinet colleagues on resolving outstanding EU trade issues.

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

This Government have delivered the first free trade agreement the EU has ever reached based on zero tariffs and zero quotas. Our collective focus is now on implementing that agreement, ensuring that it delivers for our citizens and businesses. We have established the export support service as the first point of contact for UK businesses looking to export to the EU. Since its launch in October, it has received over 8,000 unique enquiries.

[Bell Ribeiro-Addy]

The export support service is clearly not working. In 2016, the Vote Leave campaign promised us tariff-free trade with the EU with minimum bureaucracy, not another support scheme. We find ourselves in a bureaucratic nightmare with freight delays and red tape blocking what was once hassle-free trade. SMEs in my constituency simply cannot afford the legal advice that is needed to navigate all that red tape. That is no surprise because HMRC data has shown that British trade with the EU has fallen significantly. Can the Secretary of State tell us when the Government will finally deliver on hassle-free, tariff-free trade like we were promised, or will she finally admit that this was never going to happen and that this trade fiasco is going to be the norm for us from now on?

[Anne-Marie Trevelyan]

As I said, the agreement reached has zero tariffs, which is exactly what the hon. Lady asks for. If there are specific businesses in Streatham that have issues and have not been able to get support from the export support service, she should contact me and my team, because 96% of all those who have used it have said to us that they would recommend it to others, which I take as a sign that the system is working. It is there not only to support those who have trouble but to help with discovering how to access new markets. Exporting is often considered difficult, but if we talk to those who do it, they say that they want to champion others. Our export champions, which are businesses that volunteer to speak to others and encourage them to export, are there to help those who are considering it. I would be happy to put some of her local businesses in touch with them as well.

[Karl MᶜCartney (Lincoln) (Con)]

Supply chain resilience is very important to EU trade. Will my right hon. Friend advise us on how often she has conversations with our colleagues in the Department for Transport and how helpful they have been?

[Anne-Marie Trevelyan]

My hon. Friend will be pleased to hear that I have discussions with many colleagues across Whitehall on a regular basis. The supply chain resilience question has obviously exercised all of us, and our businesses, ever since the problems when covid hit and we had to have so many new ways of thinking about our supply chains. We are now having to support our businesses, including those that have had supply chain issues through Russia and Belarus and are struggling to find new supply chains. There is a very strong and continuing thread throughout Whitehall to make sure that we support all our businesses. If anybody knows of any businesses that are struggling, they should contact us directly or through the export support service.

[Mr Speaker]

I call shadow Minister Nia Griffith.

[Anne-Marie Trevelyan]

A number of factors have contributed to short-term delays at different points, including ship refitting, roadworks, bad weather, and the loss of a DFDS ferry due to damage, as well as checks for operators and issues on the other side of the channel. The volume of traffic through Dover means that some queuing is commonplace. I and those across Government continue to monitor that situation. The Department for Transport, in particular, is engaging very closely with the port of Dover, the ferry operators, industry groups and local stakeholders to ensure that the smooth running of trade can continue.

[Rehman Chishti (Gillingham and Rainham) (Con)]

8. What steps her Department is taking to support small and medium-sized enterprises to export to global markets.

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[Peter Aldous (Waveney) (Con)]

10. What steps her Department is taking to increase exports of renewable energy services.

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

The DIT champions the UK’s green exporters all around the world. At the beginning of this month I was in Norway, where I promoted the UK’s green energy offer, and Lord Grimstone spoke at WindEurope in Spain on 6 April. Renewable sector teams within the Department are also working to establish export capability guides, to highlight the UK’s strengths. In our Australia and New Zealand trade deals, we have agreed the removal of tariffs on UK exports of products such as electric vehicles and wind turbine parts, and we have also secured the most substantive climate provisions that Australia and New Zealand have ever committed to in an FTA. UK exports in energy saving and sustainable energy systems increased by over 20% between 2016 and 2019.

[Peter Aldous]

I am most grateful to my right hon. Friend for that answer. The offshore wind industry in East Anglia is a great success story, and there are more and more examples of local businesses working all around the world. There is a worry that this may only be short-term and transitory as other countries set up their own local industries. I would be grateful if my right hon. Friend outlined the strategy that is being pursued to ensure that the sale of UK equipment and services is a permanent feature of offshore wind’s global supply chains.

[Anne-Marie Trevelyan]

In 2020, the Prime Minister announced that £160 million would be made available to upgrade offshore wind ports and manufacturing, and the money has now been invested. We announced £1.6 billion of investment in our offshore wind sector just last year, including seven new major manufacturing investments and two new offshore wind ports, creating 4,100 jobs by the end of the decade. Alongside that, we have agreed the removal of tariffs on UK exports of products such as wind turbine parts, knowing that we will continue to grow and invest in our manufacturing as well as the service and support aspects of the offshore wind sector, in which the UK continues to be world-leading.

[Geraint Davies (Swansea West) (Lab/Co-op)]

11. What steps she is taking to help increase exports of UK steel.

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

Since 2018, the US Government have imposed tariffs of up to 25% for steel coming into the US. Last month I was pleased to reach a resolution with the US Government, and the tariff-free volumes that we have secured on steel and aluminium will mean that UK steel and aluminium exports to the US can return to levels not seen since before section 232 tariffs were imposed. The deal will deliver for our steel and aluminium industries across the country, and for the 80,000 UK jobs supported by the sector.

[Geraint Davies]

I am glad that it took only four years. May I, as the trade rapporteur for the Council of Europe, turn the Secretary of State’s attention to EU carbon border taxes? Does she agree that they will help boost UK exports to countries that export steel manufactured products to the EU? Will she also pursue a UK carbon border tax so that Chinese dirty steel, which has twice the carbon footprint of British steel, does not undercut our steel, and work in harmony with the EU so that we can help protect our jobs and exports and, indeed, the planet?

[Anne-Marie Trevelyan]

The Treasury is looking closely at all those questions. Indeed, they are also the subject of discussions that I have had in some detail with my counterparts in the US and other nations. Thanks to the leadership that the UK offered at COP26, the question of how we manage these global questions is now right at the centre of all discussions. The EU is putting forward proposals, and I will continue to work with the Treasury as we think about how the UK wants to fit with that. If the hon. Gentleman wants more detail and information, I refer him to the Treasury.

[Tom Randall (Gedling) (Con)]

12. What assessment she had made with Cabinet colleagues of the effectiveness of UK sanctions on Russia in reducing international trade with that country.

[Jim Shannon (Strangford) (DUP)]

21. What assessment her Department has made of the effectiveness of UK sanctions on Russia in reducing international trade with that country.

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

I am very busy today, Mr Speaker. In co-ordination with our allies, we are introducing the largest and most severe economic sanctions that Russia has ever faced, to help cripple Putin’s war machine. We are denying Russia most-favoured-nation treatment relating to hundreds of key products, ramping up the pressure on Russia’s economy by making it more difficult for it to trade by imposing punitive tariffs of 35%. We are prohibiting the export of certain goods, including critical technologies and luxury goods, and finally we are also phasing out the import of Russian oil and coal to deny it access to lucrative energy revenues. Details can be found in the impact assessment on gov.uk.

[Tom Randall]

I am grateful to my right hon. Friend for that answer. Last week I visited Poland with Conservative colleagues as part of Project Maja, the Conservative social action project. It included a visit to the Russian border, and what is usually a very busy border crossing with lots of commerce on both sides was, obviously, eerily quiet. The economic impact of this war is going to be long lasting for the neighbours in that region for some time, so does my right hon. Friend agree that it is important that we do all we can to boost trade with them?

[Anne-Marie Trevelyan]

I thank my hon. Friend for his commitment to our eastern European neighbours and allies. This is an incredibly difficult time for all of them, not only in security terms but in terms of economics and trade as well. I will meet the Ukrainian ambassador this afternoon to discuss further ways in which we can support them and help Ukrainian businesses to continue to trade as easily as possible, and we are working very closely with CBIs in the region to help them find solutions. This is a very difficult situation, and the UK, working in concert with the US and the EU, will do all we can both to stop the trade and opportunities for Putin to raise cash to fund his war machine, and to ensure that those countries that are standing by Ukraine, providing it with defensive support and incredible humanitarian support to keep its citizens safe, will be able to trade as easily as possible through this difficult crisis.

[Mr Speaker]

Let us move on to Jim Shannon.

[Anne-Marie Trevelyan]

Indeed, as I mentioned earlier, this is difficult for some businesses. Our export support service has been focused on supporting those businesses with difficulties created by their Russian or Belarusian supply chains. It is a pleasure to be able to say that it has been extraordinary to witness so many businesses taking such decisions, even though it is economically difficult for them, because it is the right thing to do morally to step away from anything to do with Russia. Huge credit and thanks to all the businesses taking those very difficult economic decisions.

Looking at Northern Ireland, while some businesses are suffering, businesses such as Thales in Northern Ireland have been extraordinary in helping to provide support by providing the NLAWs—next-generation light anti-tank weapons—and defensive equipment that can help the Ukrainians fight the Putin war machine. Enormous thanks to all those businesses that are helping to support us and are working with the Ministry of Defence in particular to make sure that we can support the Ukrainians with the defensive equipment they need.

[Chris Elmore (Ogmore) (Lab)]

13. What steps she is taking to ensure that workers’ rights are maintained in all UK trade agreements.

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[Simon Jupp (East Devon) (Con)]

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

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

As part of the UK’s leadership on sanctions against the Putin regime, we have raised tariffs by 35% on hundreds of Russian goods worth £900 million in trade. By the end of 2022, the UK will end all dependency on Russian coal and oil, and end imports of gas as soon as possible. We have banned the export of key oil refining equipment and catalysts, and we are banning the import of steel and iron products and the export of luxury goods.

On a more positive note, during my recent visit to the US, I was able to secure the removal of the section 232 tariffs, meaning that we now have tariff-free access to the US market for the first time since 2018. I also chaired our first UK-US joint dialogue on the future of Atlantic trade, whereby the UK and the US can build and deepen our co-operation on trade. I will be welcoming my US counterparts to Aberdeen next week to continue those discussions.

I have also launched the FTA negotiations with Canada. Both countries want a new and modern trade deal, befitting our close and historic relationship. I will provide further updates to Parliament as those negotiations progress.

[Simon Jupp]

The south-west is known for not only its food, but its wonderful drink. Thousands of acres of orchards across the west country produce some of the world’s best cider, supporting around 12,000 jobs. What steps are the Government taking to help our drinks industry get their products on shelves across the globe?

[Anne-Marie Trevelyan]

We are striving for tariff-free drinks exports through our FTAs, and the Prime Minister promoted that when he hosted a food and drink showcase in Downing Street last November. We are opening new markets and extending our network of 100 overseas food and drink advisers by recruiting eight new specialist agriculture attachés. So I hope that the multi-award-winning Ventons Devon Cyder, Courtneys of Whimple cider and the Smedley family’s Four Elms ciders will take full advantage of those opportunities.

[Mr Speaker]

I call the shadow Secretary of State, Nick Thomas-Symonds.

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

In recent weeks, the Government announced the suspension of all tariffs and quotas on trade between the United Kingdom and Ukraine. Labour supports that, but may I press the Government to go even further? The political, free trade and strategic partnership agreement between the UK and Ukraine was signed back in 2020. Will the Government commit to updating that agreement to make the scrapping of tariffs and quotas not just a temporary measure but a permanent one to support the Ukraine’s recovery from this appalling illegal invasion in the years ahead?

[Anne-Marie Trevelyan]

I am grateful that the Opposition support the Government’s work to help Ukrainian businesses to continue to trade in an incredibly difficult time for them. We will continue to look at how we can both support Ukraine and its population to defend its territory—that will involve ensuring that its economy can thrive—and tighten the sanctions and trade pressures on Russia and those such as Belarus who work alongside it. In the short term, we will bring that forward through the existing FTA. We will also continue to work with the Ukrainians. As I said, I am meeting the Ukrainian ambassador later today to discuss how we can further support that country.

[Nick Thomas-Symonds]

I have met the Ukrainian Business and Trade Association, as I am sure has the Secretary of State, and I know that there were already issues with how the quota system worked before the invasion occurred. Having any trade restrictions back in place will only cause further problems for Ukraine’s economic recovery. Any permanent, updated trading arrangement with Ukraine will be supported by Labour, so will the Secretary of State set an urgent date to bring a permanent arrangement into effect to give desperately needed certainty to Ukrainian businesses?

[Anne-Marie Trevelyan]

As I said, we are continuing to work very closely with our Ukrainian counterparts, and after questions the Minister for Trade Policy, my right hon. Friend the Member for Portsmouth North (Penny Mordaunt), will meet the business group to continue those discussions and ensure that we are both targeting in the short term and thinking about long-term ways in which we can support Ukraine and help it recover from this illegal invasion.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T2. In spite of the ongoing conflict in Tigray, a number of businesses have contacted me to say that they want to increase the amount of business that they do in Ethiopia. Will the Minister keep the dialogue going with the Ethiopian Government? That will help our businesses and may help to bring the conflict to an end.

[Christine Jardine (Edinburgh West) (LD)]

T5. This morning, much has been made of our links with Ukraine, and that comes at a time when the Prime Minister is in India for trade talks. We also hear reports of a $2 billion increase in India’s trade with Russia. What implications does that have for our relationship with India and for our sanctions on Russia? Will that be taken into account in the Prime Minister’s dealings? Will he be putting pressure on India to sanction Russia?

[Anne-Marie Trevelyan]

I am really pleased that the Prime Minister is able to be in India today and tomorrow to discuss broad matters of trade and to support the Department’s work to bring together a really comprehensive trade deal with India in the months ahead. He is also there to discuss the international situation. He has a good relationship with Prime Minister Modi, and I know that he will discuss all these issues. The UK, the US and the EU have been working in close concert to bring together a series of sanctions, limitations and export bans, and the Prime Minister will discuss with Prime Minister Modi what we have been doing in the UK, with the US. They will continue to take the direction that they need for their economy.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T3. Following on from my hon. Friend the Member for East Devon (Simon Jupp), across the Tamar, Cornwall is famous for its exceptional produce. What additional help has the Department given to firms from Cornwall so that they can make the best possible use of international trade deals?

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

During the recent British-American Parliamentary Group trade and security delegation to the US, we received the unequivocal message that any US-UK trade deal would have to be worker-centric. We also heard that the Secretary of State had said during the Baltimore dialogues that levelling up was the British equivalent of worker-centric and that therefore any levelled-up trade deal would have workers at its heart. Can she confirm whether that is the case and, if so, how she will ensure a worker voice at every trade meeting and discussion?

[Anne-Marie Trevelyan]

The Baltimore dialogues—the first of our trade dialogues, held just a few weeks ago—was exactly that: a gathering together of voices from across businesses, industry councils and trade union groups from both sides of the Atlantic. It was an incredibly constructive discussion. We were pleased, obviously, that our voices were there, as they always are at all our tables. It was interesting that the US was really pleased to be bringing its trade union voices to the table with industry for the first time. It was a very positive discussion, which embedded clearly how everybody will be at the table as we move forward together.

[Ruth Edwards (Rushcliffe) (Con)]

T9. The global surge in energy prices has highlighted the importance of securing both inward investment in green energy generation in the UK and related trading partnerships. Will my hon. Friend set out what the Government are doing to accelerate both those things?