UK-India Trade Deal

Anne-Marie Trevelyan Excerpts

Wednesday 26th October 2022 Commons Chamber

[Greg Hands]

I am delighted to have the opportunity to answer this urgent question and some of the points that the right hon. Gentleman raised. [Interruption.] I will answer all of them. First, on his question about the end of the deal, we have been clear that we have concluded, as we said we would, the majority of the chapters of the deal. Sixteen chapters, across 26 policy areas, have been agreed so far. The right hon. Gentleman will know that, after each round of negotiations, a written ministerial statement, which he can study, has been tabled in this place.

The right hon. Gentleman asked about visas. Perhaps he is trying to have a second go about the Home Secretary, about whom we have just heard an urgent question. I am not sure whether members of the shadow Cabinet are properly co-ordinating their urgent questions, but the right hon. Gentleman should know that we are talking about mode 4 arrangements. They are not immigration visas. They relate to business visas, not permanent settlement. The terms of the mode 4 arrangements remain an area of active negotiation.

Finally, the right hon. Gentleman said that the Government were all talk and no delivery on trade. That amazed me the most. He is obscuring the bigger issue for the Opposition. Let us assume that we get a good deal with India for Britain and that we get a good deal elsewhere, as we have done with Japan, Australia and New Zealand. I have been away from the Department for a year, and in that time Labour has not supported a single trade deal that the Government have undertaken. The Opposition did not support the Japan deal, they were against the Singapore deal and they split three ways on Canada. Only last month, they abstained on the Australia and New Zealand deals.

The Government are delivering on trade and the Opposition are in chaos and confusion. They have been unable to support a single trade deal to date and it sounds as though they will not support this one.

[Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

I commend my right hon. Friend for taking the urgent question. It is a pleasure to have a moment to pop down and add my voice to the important point that the deal was commenced earlier this year—I had the privilege of launching it—and that we and the Indian Prime Minister set ourselves the task of providing clarity about what a deal between our two nations could look like by Diwali. I am pleased that progress has been made.

It is important to understand the value that the deal brings not only because the Indian diaspora are such an important part of our economy—they have been incredibly important in driving what we are trying to achieve—but because so many British businesses are excited at the prospect of some of the trade barriers coming down. I would be pleased to hear from my right hon. Friend what the key areas, particularly innovation, will bring for British businesses as the deal crystalises in the weeks ahead.

[Greg Hands]

I thank my right hon. Friend for her incredible service as Secretary of State for International Trade in the past year. She moved things forward in so many areas—crucially the area we are discussing. When I left the Department, an India trade deal was just a concept rather than something material. Five rounds of negotiations later, she is right that we are in a good place.

We expect the deal to do a lot on tariffs. Many of our exporters face considerable tariffs on services—professional, financial and legal. I cannot promise that we will get everything in the deal. On intellectual property, it will be easier for companies to work through innovation and so on. There is a huge number of areas of potential gain for India, including investment and life sciences. I welcome my right hon. Friend’s support. Perhaps the Opposition will take it as a lesson and support a trade deal in future.

Trade (Australia and New Zealand) Bill

Anne-Marie Trevelyan Excerpts

2nd reading
Tuesday 6th September 2022 Commons Chamber

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

I beg to move, That the Bill be now read a Second time.

Just over two and a half years ago, the UK set out as an independent trading nation and began a new future outside the European Union. That future would be shaped by rekindling old partnerships, striking up new ones and harnessing the power of free trade to create prosperity for every corner of the UK. The free trade agreements that we have signed with Australia and New Zealand represent the first significant successes on this journey, and they are the first from-scratch trade deals that the UK has signed in 50 years.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I am grateful to the Secretary of State for giving way so promptly. I appreciate that it is a bit unusual to intervene so soon, but I wonder if she accepts that the process by which we are having this debate utterly undermines this House. It is deeply undemocratic that there has not been any way for us to have a full vote on the objectives of each future trade deal or access the negotiating texts, for example; there are no guarantees for the House on any of those things. Will she take away the anger that is felt certainly on the Opposition side of the House about that, and look to change the process in future?

[Anne-Marie Trevelyan]

I thank the hon. Lady for her comments. I hope that as we progress the discussions today, we will be able to look at them.

[Mr Steve Baker (Wycombe) (Con)]

Is it not the case that negotiations directly between Parliaments—that is the effect of what the hon. Member for Brighton, Pavilion (Caroline Lucas) says—on any international agreement would be an absolute nonsense and would never get us anywhere? The right way is to use plenipotentiary powers in the name of the Crown to negotiate the deal and then have a serious engagement with Parliament, as this is.

[Anne-Marie Trevelyan]

I thank my hon. Friend. Both hon. Members highlight what is important about what we are doing today, which is bringing to the House, as part of our new free trade agreement powers, the opportunity for the UK to negotiate and complete really great deals with our important trading partners that will help us to grow our economy. That is the power and the freedom that our departure from the European Union brought us in trade, and I have been proud to drive that forward in the last year. The Australia and New Zealand trade deals are two of many that are now in train that will help our businesses to export more widely to the rest of the world.

These free trade agreements will eliminate tariffs on 100% of all UK exports to Australia and New Zealand. As I say, that will open up new trade opportunities for businesses of all shapes and sizes, and that is an important aspect of the opportunities that our free trade powers bring us for our businesses to take advantage of.

[Mike Freer (Finchley and Golders Green) (Con)]

While Opposition Members focus on process, does my right hon. Friend agree that professional services’ ability to trade without requalification is a massive export opportunity for the sector in the whole of the UK?

[Anne-Marie Trevelyan]

I thank my hon. Friend for his intervention and, indeed, for his incredible work in the Department over the last year to help us to grow our export opportunities for businesses. He is absolutely right: one of the key opportunities for our service sectors is negotiating that mutual recognition of qualifications, which removes a market access barrier to enable businesses to share their expertise more widely. Not only in the Australia and New Zealand trade deals, but as we work in places such as Canada and the USA, those are key areas where we can genuinely rocket-boost what our businesses will be able to do in taking their expertise across the world.

[John Spellar (Warley) (Lab)]

The right hon. Lady is talking about businesses, but is this not also about individuals in these jurisdictions who have the qualifications and skills? There will be a greater mutual benefit, not just a benefit to the UK. This will grow the economies of the free world and enable our citizens, and those of Australia and New Zealand, to develop their careers and opportunities.

[Anne-Marie Trevelyan]

The right hon. Gentleman is absolutely right. A key element of the Australia and New Zealand trade deals is the improved mobility arrangements, which will not only give those under 35 much more flexibility, but will mean that those with professional skills can move much more easily between our countries, for exactly that reason: to help their skills as individuals, as he says, and as part of businesses to grow those economies mutually. Our trade deals are all about mutual benefit and picking countries with which we have strong ties and want to grow our economies together.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

In evidence to the Senedd’s Economy, Trade, and Rural Affairs Committee, the Welsh Government, the farming unions and the Welsh Local Government Association expressed concern that there was no published data about the impact on specific Welsh economic sectors and subsectors. Will the British Government publish that data—they must have it to have come up with the cumulative data that they have published—or are they guilty of hiding the impact of these trade deals on sectors such as Welsh hill farming?

[Anne-Marie Trevelyan]

We have done a great deal of economic assessment across any number of layers. I am very happy to share with the hon. Gentleman some of the detail in due course, and the team will pick that up with him.

It is important to remember that one key area, as we look beyond sectors and to the other side beyond business, is that the consumer will be able to enjoy many more Australian and New Zealand brands coming to the UK, in the same way as the UK will be able to share our brands with other countries. I was in Australia and New Zealand last week, and it was very charming to see which British products people were excited to have more of. I was also able to say that I would help personally to ensure that Australian wine is drunk more often at my own table as a result of this trade deal.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Further to the point made by my Welsh nationalist friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards), I understand from the Department that it has not granularly broken this down, but has made assumptions in the modelling across the regions of England and the nations that make up this current Union. I would be surprised if the Secretary of State has the data, which I think would give figures that were quite alarming to people in Wales, Northern Ireland and certain areas of Scotland, particularly those involved in livestock production.

[Anne-Marie Trevelyan]

rose—

[Jim Shannon (Strangford) (DUP)]

Will the Secretary of State give way?

[Anne-Marie Trevelyan]

I will give way.

[Jim Shannon]

The Secretary of State will be aware that the Northern Ireland beef and lamb sector is worth some £1.3 billion, employs 5,000 staff in processing and has some 29,000 farmers, and 70% of that produce goes to the UK. Her own Department has reported:

“If large local economic effects occurred, this could…result in a net GVA loss for Northern Ireland.”

May I ask the Secretary of State—it is the same question as others have asked, but about Northern Ireland—what steps can be taken to ensure that, if this is the case, Northern Ireland is not left behind in trading with Australia and New Zealand? I know it is an interest for the Secretary of State, and it is a big interest for me in my constituency.

[Anne-Marie Trevelyan]

The concerns that the farming community has raised are ones we have addressed many times, but I am happy to address them again. As part of the trade deals, and acutely aware of the sensitivities of our changing farming communities as we have left the European Union, we have built in—after quite a lot of negotiating effort with our Australian and New Zealand partners—a three-layered set of safeguards to ensure that there cannot be any unexpected surge of agricultural products coming in that would disrupt our markets, tapered over a 15-year period. That will give all the markets the chance to adjust to the opportunity to share goods, moving in both directions. The Under-Secretary of State for International Trade, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) will set out in more detail, if necessary, what those safeguards are, but they are there to show that we have been absolutely cognisant of this and determined to ensure that our farmers will not have the risk of a surge of produce.

[Fay Jones (Brecon and Radnorshire) (Con)]

The Secretary of State will know that I represent a large beef and sheep farming constituency, and there is nervousness in the farming community about what will happen over the next 15 years, but also a broad welcome for the deal, and I congratulate her on her efforts so far. Can she say a little more about what she and her Department can do across Government, working with the Department for Environment, Food and Rural Affairs, to make sure that there is real confidence in this sector over the next 15 years?

[Anne-Marie Trevelyan]

I thank my hon. Friend for her comments. To give her reassurance, all our trade negotiating teams have Department for Environment, Food and Rural Affairs teams within them. They are the experts from the UK Government, and they are absolutely at the heart of our negotiating teams not only for these deals, but for those we are working on now.

Part of the challenge—I understand the anxiety that has appeared, about which I hope the safeguards for these two deals have provided reassurance—is that these are of course the first two of a large number of trade deals. We are looking to accede to the comprehensive and progressive agreement for trans-Pacific partnership, under which we will have enormous opportunities for our agriculture producers to export to something like a £9 trillion marketplace. The Australian and New Zealand trade deals are the first two of many that will afford great opportunities for some of the finest products in the world. I think we are all concerned in standing up for our constituents and ensuring the opportunity to find new export markets for those goods.

[Victoria Atkins (Louth and Horncastle) (Con)]

My concern is not for the enormous farming conglomerates that we see across swathes of the countryside, but for the small tenant farmers in my constituency. They are a critical part not just of my constituency—which, incidentally, helps feed the country—but of our farming heritage. I think it is those smaller farmers that colleagues across the House are so concerned to understand, support and, if necessary, protect.

[Anne-Marie Trevelyan]

My hon. Friend is absolutely right, and that is why we have built into these first two of our trade deals these very clear and robust safeguards, so that there cannot in the early years be the sort of surges that could risk the success of our important tenant farmers. That is also why the work that the National Farmers Union and the National Farmers Union of Scotland do is so important in helping our farming communities.

I too have many small tenanted farms in my constituency, and this is the opportunity for them to work together and to work in the new markets that will be appearing thanks to the continuing new trade deals we will strike. This is about how we can get the maximum benefit not only as they produce for our own domestic markets, but, if they choose to do so, as they export some of the finest meat in the world to new and growing markets across the world.

These two trade deals are very much the first two anchor points, as it were, of a broad and wide set of trade deals that will afford such opportunities to all our farmers, from the large farmers that are very good at fighting their own corner through to—exactly as my hon. Friend points out—our small but incredibly important farmers across our rural communities. Their importance is not only in the food they produce, but in land management and, indeed, in the wider community, so that is at the heart of the plan.

As I say, the negotiating teams that the Department for International Trade take to these negotiations have at their heart teams of experts from the Department for Environment, Food and Rural Affairs, as well as from other Departments as required for each of the chapters in the trade deals.

[Caroline Lucas]

The Secretary of State is very generous in giving way. On that point, does she not recognise that the bottom line is that if we are rightly asking farmers to lead the way on more sustainable farming methods, yet at the same time allowing imports to come in that will undercut them—because they are not having to meet the same standards and are therefore cheaper—we are essentially handing farmers a knife to cut their own throats? It is simply not sustainable. Notwithstanding all her nice words about safeguards, do we not need to make sure that there are much stronger environmental regulations in these trade agreements so that we do not actually cut off the livelihoods of our own small farmers?

[Anne-Marie Trevelyan]

We have not only built in safeguards for that, but of course all the safety regulations in our own domestic requirements remain clear barriers to entry, so we are very clear that there will no dilution of or risk to any safety requirements on food.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Is my right hon. Friend not surprised by the point made by the hon. Member for Brighton, Pavilion (Caroline Lucas), since New Zealand is led by a Labour-Green coalition that puts enormous weight on environmental sustainability? Therefore, the suggestion that this trade agreement would undermine those standards seems very odd.

[Anne-Marie Trevelyan]

My right hon. Friend raises an important point, which is that we have done trade deals with two partner countries that are very much of the same view as us on food safety standards, and we will continue to work with them. One of the beauties of these new trade deals is that they are very broad-ranging and much more ambitious, but are also cross-cutting in many areas. They are not static but have built into them the opportunity for dialogues in any number of areas. Where any business sector here or in those countries either has anxieties or wants to work together to grow those markets, we have factored such dialogues into the trade deals so that they will be able to do that.

To get on, if I may, over the long run our UK-Australia agreement is expected to increase annual trade by over £10 billion. This means a £2.3 billion boost to our economy and a £900 million increase in household wages. Beyond this, the agreement supports the economy of the future thanks to the first ever innovation chapter of any trade deal in the world. In addition, professional workers and those under 35 will enjoy new opportunities to live and work in Australia.

Turning now to our agreement with New Zealand, it will increase overall bilateral trade by 60%, providing an £800 million uplift to the UK economy on top of the £2.5 billion a year in bilateral trade we already do with our Kiwi friends. UK services and tech firms will gain deeper access to New Zealand’s markets, sustaining jobs in this country while also growing the high-value businesses of the future. Our analysis shows that this deal will provide real economic rewards to the 6,000 UK small and medium-sized businesses that already export goods to New Zealand, while opening new opportunities for those that have not yet begun that journey. Northern Ireland, Wales and Scotland will enjoy an annual economic boost worth over £50 million.

This Bill relates to a key element of our Australia and New Zealand deals: their measures to widen access to procurement opportunities for firms in both our countries. To give the House a sense of the possibilities on offer for UK businesses, the Australia deal will mean our companies can bid for Australian Government contracts worth around £10 billion a year, including major infrastructure projects such as road upgrades and railway constructions. The Railway Industry Association trade body recently praised the deal’s procurement aspects, saying that they will make it easier for our rail businesses to invest and operate in Australia. This Bill will ensure that our businesses can seize these opportunities as well as the free trade agreements’ broader benefits by putting us on the path to ratification.

Turning to the detail, this Bill is narrowly focused on enabling the Government to implement their obligations under the agreements’ procurement chapters. It will give the Government the specific powers they need to extend duties and remedies in domestic law to Australian and New Zealand suppliers for procurement covered by the free trade agreements and to amend our domestic procurement regulations so that they are in line with commitments in the Australia free trade agreement. The Bill will also give effect to potential changes over the free trade agreements’ lifetimes. They include implementing agreed modifications and rectifications to coverage and updating the names of Government entities

I assure the House that my Department has engaged constructively with the devolved Administrations throughout the Australia and New Zealand trade deal agreement negotiations, and I thank them for working so collaboratively with the Department. I am pleased that the devolved Administrations have indicated that they are satisfied with the outcome of the negotiations on the procurement chapters in both agreements. As procurement is a partially devolved matter, this Bill seeks a concurrent power. I remind the House that such powers are included in the Trade Act 2021, to allow the UK Government to make secondary legislation on behalf of Northern Ireland, Wales and Scotland when it is practical to do so.

[Jonathan Edwards]

I am glad there has been some progress. My understanding is that the Welsh Government were calling for concurrent-plus powers; have those been conceded by the UK Government?

[Anne-Marie Trevelyan]

I can update the hon. Gentleman: those discussions are continuing and our officials are continuing to work out the best way forward, and I will make sure they give him an update in due course. I also stress that we are committed to not normally using the concurrent power in this Bill without the devolved Administrations’ consent, and never without consulting the Administrations first.

While technical and narrow in nature, the Bill’s measures will help our businesses and citizens enjoy the enormous benefits offered by our Australia and New Zealand trade deals. Without this Bill we cannot bring these two landmark agreements into force. We want to unlock new trade for our businesses, support thousands of jobs throughout the country and provide a boost to our economy worth billions of pounds as soon as possible, so that we can strengthen both the bonds of commerce between our businesses and Governments and the bonds of friendship our countries share.

The Australia and New Zealand free trade agreements demonstrate in the most practical way what global Britain means to this Government and what we know the UK can achieve as an independent trading nation. This Bill is an essential step towards turning these FTAs’ extraordinary promise into firm reality. I commend it to the House.

Trade Policy Update

Anne-Marie Trevelyan Excerpts

Tuesday 6th September 2022 Written Statements

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

Since the House adjourned for the summer recess, the Department for International Trade has made good progress on a number of areas. This statement provides Parliament with an update on progress with Ukraine reconstruction, the UK’s trade negotiations with India, negotiations towards accession to the comprehensive and progressive agreement for trans-Pacific partnership, and the developing countries trading scheme.

Ukraine reconstruction

At the end of July, following a competitive procurement process, we appointed Mott MacDonald and Crown Agents on a 12-week programme to act as Ukraine reconstruction industry advisors to the joint UK-Ukraine Infrastructure Taskforce. They will provide technical and logistical assessments, work with our counterparts in country to identify and prioritise current and future reconstruction projects, and provide technical support to the joint taskforce. At this stage the joint taskforce will focus on the Ukrainian Government’s immediate priorities—rapid replacement of essential housing and bridging infrastructure damaged by the conflict. Successful delivery of these projects is likely to support the Ukrainian economy and unlock new, larger mutually beneficial opportunities for UK businesses and Ukraine in later stages as we continue to support its post-conflict recovery and reconstruction. To ensure we can deliver the most effective reconstruction solutions through the infrastructure taskforce, we will work in close partnership with our brilliant UK businesses to unleash their full potential. UK Export Finance remains open for business in Ukraine with £3.5 billion of financial capacity available for UK exporters and Ukrainian buyers, subject to Treasury approvals.

Comprehensive and progressive agreement for trans-Pacific partnership

The first in-person accession working group following the United Kingdom’s application to join the comprehensive and progressive trans-Pacific partnership took place in Tokyo, 24 to 28 July 2022.

The UK team negotiated market access with CPTPP parties in the following areas: goods, services and investment, Government procurement, financial services and temporary entry.

Negotiations will continue over the course of the autumn with planning currently underway for the next round of talks. The Government will ensure that membership of CPTPP is achieved on terms that work for UK businesses and consumers.

Joining CPTPP offers numerous benefits to the UK. It will provide greater market access for British goods and services to one of the world’s largest free trading areas, with a combined GDP of £9 trillion in 2021. Reductions in tariffs and investment barriers will give UK firms increased opportunities to a growing market.

Beyond the immediate economic opportunities there is a significant geostrategic case for joining CPTPP. Membership will demonstrate that the UK is a global leader in free and rules-based trade. It will further establish the UK’s commitment to deeper engagement within the Indo-Pacific region in support of increased security and prosperity.

CPTPP will help the whole of the UK capture the benefits of global trade opportunities, by supporting jobs, wage growth and the levelling-up agenda. The Department’s preliminary analysis from the CPTPP scoping assessment suggests that every nation and region of the UK could be set to benefit from CPTPP membership.

The Government will keep Parliament updated as these negotiations progress.

UK-India trade negotiations

The fifth round of UK-India free trade agreement negotiations took place between 18 and 29 July 2022. The negotiations, at official level, were conducted in a hybrid fashion, with some negotiators in a dedicated Indian negotiations facility, and others attending virtually.

Technical discussions were held across 15 policy areas over 85 separate sessions, with detailed draft treaty text discussions.

In addition, intense negotiations have continued throughout the summer, again in a hybrid fashion, with India hosting UK negotiators and the UK also hosting Indian officials.

We are continuing to work towards the target, as set out by both Governments on 22 April 2022, to conclude the majority of talks by the end of October.

The Government will keep Parliament updated as these negotiations progress.

Developing countries trading scheme

On 16 August 2022 we launched the developing countries trading scheme. The scheme is a major milestone in growing free and fair trade with 65 developing nations that are home to more than 3.3 billion people. It is one of the most generous trade preferences schemes in the world and has been designed to boost trade with developing countries, helping them to grow and prosper. It delivers on commitments in the integrated review and international development strategy to harness the power of trade to support long-lasting development and it benefits the UK through reduced import costs, greater choice and improved economic security.

The developing countries trading scheme demonstrates that, as an independent trading nation, the UK can go beyond what we were able to do as a member of the EU. It introduces more generous, less bureaucratic trading rules that reduce tariffs, simplify rules of origin and simplify the requirements to access better tariff rates. It has been designed to boost jobs, drive growth and make supply chains more resilient.

Developing countries in the scheme collectively export over £20 billion of goods to the UK each year, such as t-shirts from Bangladesh, flowers from Ethiopia and bicycles from Cambodia. The developing countries trading scheme reduces import tariffs on these products and thousands more, saving businesses and consumers in the UK over £750 million per year and helping to tackle the cost of living.

The developing countries trading scheme proposals have been shaped by a public consultation held between July and September 2021. Responses were received from a broad range of stakeholders, including businesses and non-governmental organisations and overall supported a simpler, more generous developing countries trading scheme. A summary of consultation responses has also been published:

https://www.gov.uk/government/consultations/designing-the-uk-trade-preferences-scheme-for-developing-nations.

Key aspects of the developing countries trading scheme include:

Least developed countries continue to get tariff-free trade on everything but arms and ammunition and now benefit from more generous and simplified rules of origin, making it easier for them to participate in regional and global supply chains serving the UK.

Low income and lower-middle income countries benefit from more tariff reductions and removals. Nuisance tariffs and some seasonal tariffs have been removed.

Goods from India and Indonesia that are competitive in the UK domestic market are excluded from the scheme.

Eight countries immediately benefit from more generous tariffs as access to these tariffs is now based purely on economic vulnerability and not on the ratification of international conventions.

Powers to suspend countries from the scheme have been expanded. For the first time, climate change and environment related obligations are included in the grounds for suspension as well as those relating to human rights and labour rights.

For more detail on the new scheme and how it differs from the UK generalised scheme of preferences which it replaces, please see the comprehensive Government policy response:

https://www.gov.uk/government/publications/developing-countries-trading-scheme-dcts-new-policy-report.

The developing countries trading scheme will come into force in early 2023, giving businesses time to prepare for greater UK market access.

[HCWS293]

The UK-Ukraine Digital Trade Agreement

Anne-Marie Trevelyan Excerpts

Monday 5th September 2022 Written Statements

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

On 24 August, the Government launched negotiations with Ukraine towards a bilateral digital trade agreement, the proposed UK-Ukraine digital trade agreement.

The UK is standing shoulder to shoulder with Ukraine in the face of unjustified aggression from Putin, and I remain committed to ensuring that trade policy plays its part in supporting Ukraine now and throughout its economic reconstruction. In addition to the immediate actions we have already taken to liberalise tariffs and starve Putin’s war machine of funds, we need to put in place longer-term measures to support Ukraine and play our part in securing its future as a prosperous, stable and democratic partner in Europe.

The UK is increasingly recognised as a global leader in digital trade, with a network of international agreements that drive productivity, jobs and growth. In 2021, under its G7 presidency, the UK brokered agreement on the ground-breaking G7 digital trade principles, while earlier this year the UK-Singapore digital economy agreement—the world’s most innovative trade agreement—entered into force.

As a result, in my discussions with our Ukrainian partners, we have agreed that we should seek to negotiate a digital trade agreement to play an important role in supporting Ukraine’s reconstruction objectives. Ukraine has strong digital ambitions, and it has identified greater digitalisation of the economy as one of its areas of focus.

Ukraine sees digital trade as part of its vision for the future, and the UK is ideally placed to help Ukraine benefit from the opportunities this presents.

In addition to furthering our vital support for Ukraine, this agreement will also be good for British businesses. The current UK-Ukraine free trade agreement contains limited digital and e-commerce provisions. Expanding these commitments will remove barriers to digital trade and enable UK exporters to service Ukrainian markets more easily.

As digital trade is now the foundation of modern global trade, securing this agreement will send a strong signal of the United Kingdom’s support for our Ukrainian allies in response to the ongoing conflict, and further cement our position as a forward-thinking trading partner in the modern global economy.

I will continue to keep the House updated as negotiations develop.

[HCWS289]

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Anne-Marie Trevelyan Excerpts

Thursday 21st July 2022 Written Statements

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

The United Kingdom continues to make good progress toward joining the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP) this year. Below is an update to Parliament on developments in negotiations over the course of recent months.

This bloc of 11 countries represents around £9 trillion in GDP and includes some of the world’s largest current and future economies. Joining CPTPP puts Britain at the heart of a dynamic group of countries, as the world economy increasingly centres on the Pacific region. And as these economies grow, it is even more important that the UK is in a free trade agreement with them, so that we benefit from this growth.

CPTPP membership offers a wide range of benefits for the UK. Accession could see 99.9% of UK exports being eligible for tariff-free trade with CPTPP members. Joining could also, for example, greatly benefit our world-class services sector through advanced provisions that facilitate digital trade, and modern rules on data to enable more financial and professional services markets to be opened up.

This will support the economy across the UK: the Department for International Trade’s published scoping assessment shows that joining the agreement could benefit all parts of the country, with the greatest relative gains expected in Scotland, Northern Ireland and Wales.

The UK announced its intention to join CPTPP in February last year and began formal negotiations on our accession in June 2021. In February this year, CPTPP parties confirmed that we were ready to move to the final phase of the accession process, having largely demonstrated our compliance with the existing CPTPP rules.

This final phase of the accession process involves applicants making high-standard market access offers to CPTPP parties. The UK submitted initial offers in March 2022, including on goods, services, investment, Government procurement and financial services. Since then, we have continued to engage in talks on both a bilateral and collective basis with CPTPP members in order to come to an agreement on these market access issues.

We will continue to negotiate with CPTPP members over the coming months. We will ensure the UK joins the agreement on the right terms, and that British businesses can begin taking advantage of this trade deal as soon as possible.

The Department will continue to engage with Parliament over the course of negotiations. Once the agreement is signed, it will be subject to pre-ratification scrutiny under the Constitutional Reform and Governance Act 2010 (CRaG), and any legislation required to implement the agreement will need to be passed. Prior to commencing scrutiny under CRaG the Government will commission and publish the advice of the independent Trade and Agriculture Commission, as well as laying its own report under section 42 of the Agriculture Act 2020.

[HCWS265]

Oral Answers to Questions

Anne-Marie Trevelyan Excerpts

Thursday 21st July 2022 Commons Chamber

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

India is a dynamic, fast-growing trade partner, and a free trade agreement offers the opportunity to deepen our already strong relationship, which was worth £24.3 billion in 2021. Round 5 of trade agreement negotiations began on Monday 18 July and will continue until the end of next week. We have already closed 12 chapters and continue to work hard to reach a balanced and comprehensive agreement. We are in detailed negotiations and discussions on texts now and are confident in our progress with India, as we work towards a comprehensive FTA.

[Bob Blackman]

I thank my right hon. Friend for that answer. Clearly, doing a trade deal with India is complex and difficult. The European Union, for example, has been trying to do one for 25 years without success, so I wish her and her team well on negotiations. Clearly, it will be challenging to achieve it by Diwali, but I know that she is committed to doing so. Will she set out, for the benefit of the House, the benefits to the UK and to India of the free trade deal she is undertaking?

[Anne-Marie Trevelyan]

Our priority in talks has always been to address the significant barriers that businesses face in exporting to India. In the past decade, UK services exports to India have increased by 60% in current prices, totalling £3.6 billion in 2021. However, the reality is that India’s barriers to services trade are still relatively high compared with those of other trading partners, so this FTA will provide a great opportunity to address those barriers and support the UK’s service sector, in particular, to do business in India’s growing markets.

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

The Secretary of State must know that Huddersfield and West Yorkshire are the beating heart of the manufacturing sector; so many firms are good at exporting, and have expertise and a history of trade with India, but they are still finding huge barriers to any exporting effort they make. Can her Department not really step up the action to help, especially for the small and medium-sized enterprises?

[Anne-Marie Trevelyan]

As always, the hon. Member is a champion of businesses in his constituency. He is exactly right: those barriers to trade are still difficult, and the free trade agreement brings us the opportunity to work with India to strip away those market access barriers. We are listening, obviously, through the consultation process. On the FTA process, at the beginning of the year we asked businesses to talk to us and share their own experiences and the particular areas where they wanted us to negotiate reductions in barriers. I hope that we are doing that. I would be very happy to hear directly from the hon. Member’s businesses whether they have particular areas in mind. We are looking to reach a broad and comprehensive agreement that will strip away many of those market access barriers, be they tariff areas around goods or, indeed, those very many areas of service sector activity, which will benefit both sides. We have some highly mutually compatible business opportunities to work on together.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

2. What steps she plans to take to help increase trade with the EU.

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

17. What assessment her Department has made of the adequacy of scrutiny mechanisms for future UK free trade agreements.

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

The Government are committed to effective scrutiny of trade agreements. We have put in place enhanced transparency and scrutiny arrangements for every stage of FTA negotiations. That includes publishing our objectives prior to talks, providing additional time for scrutiny at the end of the process and putting in place the independent Trade and Agriculture Commission to report on new agreements. We are delivering on those agreements. The Australia FTA has been available for scrutiny for seven months, enabling three Select Committees to take evidence and to report on the agreement prior to ratification.

[Mr Carmichael]

We all know what Government undertakings in relation to trade agreements are worth, and it is not an awful lot. If the Secretary of State does not believe me, she can ask the farmers and crofters in my constituency. Is the breach of the undertaking on the trade agreement with Australia to be a one-off, or is it the start of a course of conduct?

[Anne-Marie Trevelyan]

As I set out, we have followed a broad and open process. There is no breach of any situation such as the right hon. Member suggests. The arrangements in place are robust. We want to make sure that as we go through the process—there will be enabling legislation for the Australia and New Zealand trade deals in the autumn—there will be an opportunity for colleagues who wish to raise issues. We know that this process is effective. I talk to fellow Trade Ministers around the world who work with us and it is interesting that they consider our process to be very robust and very inclusive, both at a parliamentary level and with the business community.

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

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

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

Our exports strategy, coupled with our trade, investment and foreign policy, are a potent combination. For our brilliant UK exporters to reach the people and places where they can be most effective, we need to be able to build closer relationships around the globe, so my Department has launched our Government-to-Government capability. We can now bring industry experience and UK support to provide tailor-made solutions around the world. G2G is a powerful new tool for the UK. It better connects our prosperity, trade and diplomacy agendas and opens exciting new possibilities for our businesses. We are working closely with our Ukrainian counterparts to get UK businesses delivering crucial repairs to bridges, modular homes and railways before the winter sets in. New tools such as our G2G capability will allow us to achieve more in Ukraine and globally, ensuring that UK trade acts as a force for good in the world.

[David Duguid]

We have heard today about the value of agricultural shows across our United Kingdom, not least in my constituency where we had the New Deer show last weekend and we have the Turriff show, the largest two-day agricultural show in Scotland, at the end of the month. They provide a huge opportunity to showcase the wonderful Scottish food and drink that we have to offer. Will my right hon. Friend confirm what DIT support is available directly to the fabulous Scottish food and drink producers, and what conversations she has had with the Scottish Government to make sure that that support is made directly available to those producers?

[Anne-Marie Trevelyan]

We are indeed hearing of the wonderful shows that go on across the UK through our summer months and I commend all Members to visit some if they can. Speaking as a north-east MP who occasionally pops across the border to enjoy some Scottish hospitality, the Scottish shows are as good as any others.

The DIT Scotland team are now based in Edinburgh; we established the new office last year. We have trade and investment expertise there dedicated to supporting Scotland’s businesses to grow through their exporting efforts. We also work closely with the Scottish Government to ensure that all businesses in Scotland have access to DIT support and the full reach of the UK’s global network, including what has been set out by the new Minister responsible for exports—the Under-Secretary of State for International Trade, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith).

[Mr Speaker]

Never forget the Royal Lancashire agricultural show. I call the shadow Secretary of State.

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

We Opposition Members have long argued that the Government are not doing enough to support exporters. It is now clear that the former Minister, the hon. Member for Finchley and Golders Green (Mike Freer), absolutely agrees. He argued that the trade access programme is underfunded and said of it, “We support too few shows, we don’t send enough business, our pavilions are often decent but overshadowed by bigger and better ones from our competitors.” He is absolutely right, is he not?

[Anne-Marie Trevelyan]

It was a pleasure to have the former Minister, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), in the team; he has been a champion for growing our new tools. Brexit gave us opportunities to own our trade policy and to start to really champion and talk to our businesses about where they can find opportunities across the globe, whether for goods or services. We have a fantastic suite of tools in the export strategy, which we launched in November last year, and we can now really push on with that. As with everything, perhaps Labour Members can tell me where I can rapidly find a great deal more cash to make these measures much more effective. In the meantime, we have put together a fantastic fund that we will continue to use to encourage our businesses to trade.

[Mr Speaker]

Order. These are topical questions, not “War and Peace” questions. Nick Thomas-Symonds.

[Mr Speaker]

Order. These are topicals. Topicals are meant to let those people who did not get in earlier ask a question. They are about Back Benchers, not about Front Benchers indulging themselves at the expense of others. Secretary of State—briefly.

[Anne-Marie Trevelyan]

I have a fantastic team of Ministers, which is exactly why we are able to do all that we can to make sure that our UK businesses have access to UK Government support to get their fantastic goods and services out across the world. We are rolling out the FTA programme at incredible pace by the rest of the world’s standards, which we are fêted for, and we will continue to do that with the comprehensive and progressive agreement for trans-Pacific partnership, India, the Gulf states, Switzerland and Israel—all ongoing at the moment.

[Rob Butler (Aylesbury) (Con)]

T5. My constituency of Aylesbury has many brilliant businesses exporting their goods and services around the world. One example is Sterling Thermal Technology, which I visited recently and which manufactures bespoke heat exchangers. Many more would like to follow suit, so how can the Department help them to reap the benefits of Brexit and our new trade deals?

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[Jessica Morden (Newport East) (Lab)]

T2. The Trade Remedies Authority has bizarrely recommended the dropping of anti-dumping duties on Chinese reinforcing steel bar, a move that will undermine UK manufacturers of the product and the whole industry. Will the Secretary of State call that in for investigation?

[Anne-Marie Trevelyan]

The opportunity for the TRA, as our independent adviser, to look at these issues is one that we have great respect for. As Members across the House will understand, we await its decision and we will look at that in due course.

[Martin Vickers (Cleethorpes) (Con)]

The seafood processing sector based in my constituency and neighbouring Grimsby is anxious to increase its exports. Will the appropriate Minister meet me and representatives of the industry so we can push forward with a new initiative?

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

T4. There was cross-party agreement during the urgent question earlier this week that Parliament has not been given the opportunity to properly scrutinise, debate or vote on the Australia trade deal, despite assurances from the Government that time would be made for debate. I heard the Secretary of State’s response to my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael). What assurances can she give that future trade agreements will make it to the Floor of the House for debate and a vote before they are ratified?

[Anne-Marie Trevelyan]

As I set out earlier, we have a robust process of transparency and we will continue to follow it as we bring more ratified free trade agreements to the House in due course.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Topically, the Government have announced yet another deal with the American states, in no small part due to the allegedly “work-shy” efforts of the Minister for Trade Policy, my right hon. Friend the Member for Portsmouth North (Penny Mordaunt). Think what she could achieve if her focus was actually on the job!

The economies of many of these American states are larger than those of European countries. Texas is the 12th largest economy in the world. Can my right hon. Friend give us a cumulative total of the sort of economies that we are dealing with in these trade deals and that are likely to be signing up over the next few months? I think that total is considerable, thanks to her efforts.

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

I was interested to learn from the Minister about the close relationship that Department for International Trade officials apparently enjoy with the Scottish Government—something that I suspect will be news to Scottish Ministers.

The Lords report on the Australia-UK trade deal criticised the fact that, despite the heavy impact of the deal on the food and drink sectors in the devolved nations, those nations have been shut out of negotiating the terms of that deal and no doubt future ones. Will the devolved nations be consulted from the outset and throughout negotiations during future trade deals, and will Ministers make Parliament aware of their views?

[Anne-Marie Trevelyan]

We have regular and ongoing discussions and a good relationship with all the devolved Administrations, but of course the trade policy programme is reserved to the UK.

[Dean Russell (Watford) (Con)]

The volume of the trade deals that we are hearing about is incredibly encouraging and shows the role that the UK has around the world. Will the Minister please update me on the trade deals with the Gulf?

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[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Speaker. You almost caught me off guard there, but I do have a question and it refers to Northern Ireland. I know that the Secretary of State is particularly keen to ensure that all the advantages that come out of any trade deals always follow down the line so that my local businesses, especially those in the farming sector, can take advantage of them. Will the Secretary of State confirm that we will always get that advantage?

[Anne-Marie Trevelyan]

Thank you, Mr Speaker, for making sure that the important voice of Northern Ireland was heard in DIT questions today. Northern Ireland remains at the heart of the UK and we will make sure that, in respect of all our trade deals and, indeed, in the work we do to reduce market-access barriers, our teams speak to businesses in Northern Ireland and throughout the rest of the UK. We are working to support them to make great British exports around the world.

Mexico Trade Negotiations

Anne-Marie Trevelyan Excerpts

Thursday 21st July 2022 Written Statements

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

The first round of United Kingdom-Mexico free trade agreement negotiations took place during the week commencing 11 July. A small delegation of officials undertook technical discussions in person in Mexico City with most talks taking place virtually.

During the first round, talks focused on gathering insights on key interests and priorities across policy areas as well as building a shared understanding of each other’s initial positions in the areas expected to be covered in the free trade agreement. Technical discussions were held across 31 policy areas over 28 sessions.

The United Kingdom and Mexico share a joint ambition to take our trade and economic relationship to the next level, deepening trade and increasing investment flows for the benefit of both countries.

The existing United Kingdom-Mexico trade continuity agreement is outdated. These negotiations are an important opportunity to negotiate a significantly more ambitious agreement which is better suited for the 21st century. This includes strengthening United Kingdom-Mexico trade in goods and services, already worth £4.2 billion, and delivering on new and progressive issues such as digital trade, trade and gender equality and innovation.

The second round of official level negotiations is due to take place in autumn 2022.

HM Government remain clear that any deal will be in the best interests of the British people and the economy.

HM Government will keep Parliament updated as these negotiations progress.

[HCWS270]

UK-New Zealand Free Trade Agreement

Anne-Marie Trevelyan Excerpts

Thursday 21st July 2022 Written Statements

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

The Government have, today, laid before Parliament a report on the UK-New Zealand free trade agreement. The report is required under section 42 of the Agriculture Act 2020, prior to the agreement being laid before Parliament for formal scrutiny under the Constitutional Reform and Governance Act 2010 (CRaG).

The Government have always been clear that we will not compromise on the UK’s high environmental protection, animal welfare and food safety standards in our trade negotiations. This report, which draws on independent advice from the Trade and Agriculture Commission¹, Food Standards Agency and Food Standards Scotland, confirms the Government’s view that the UK-New Zealand FTA is consistent with the maintenance of UK statutory protections in these areas.

This report is intended to inform and support scrutiny of the UK-New Zealand agreement prior to its ratification and entry into force. The text of the agreement was published on 28 February 2022 and will be formally laid before Parliament for scrutiny under the provisions of CRaG in due course.

¹ TAC advice published on 30 June 2022 at: https://www.gov.uk/government/publications/uk-new-zealand-fta-secretary-of-state-for-international-trades-request-for-trade-and-agriculture-commission-advice

[HCWS269]

Israel Trade Negotiation

Anne-Marie Trevelyan Excerpts

Wednesday 20th July 2022 Written Statements

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

On Wednesday 20 July 2022, the Department for International Trade launched negotiations for a new, upgraded free trade agreement with Israel.

In line with our commitments to scrutiny and transparency, the Department for International Trade has published, and placed in the Libraries of both Houses, more information on these negotiations. This includes:

The United Kingdom’s strategic case for a UK-Israel free trade agreement (FTA)

Our objectives for the negotiations

A summary of the United Kingdom’s public consultation on trade with Israel

A scoping assessment, providing a preliminary economic assessment of the impact of the agreement.

The United Kingdom’s negotiating objectives for the upgraded agreement, published today, were informed by our call for input, which requested views from consumers, businesses, and other interested stakeholders across the United Kingdom on their priorities for enhancing our existing trading relationship with Israel.

These negotiations follow our signing of the UK-Israel trade and partnership agreement on 18 February 2019.

A new and enhanced trade agreement with Israel is a key part of the United Kingdom’s strategy to secure advanced modern agreements with new international partners, and upgrade existing continuity agreements in order to better suit the UK economy.

Israel is an important trading partner for the United Kingdom, with trade worth £5 billion in 2021 despite the disruptions of the coronavirus pandemic to global trade. As two of the most innovative and dynamic economies in the world—both in the top 15 of the global innovation index—we know that the opportunities of the future will come from sectors in which we both excel, such as technology, research and development, digital and data.

Our existing agreement, which forms the basis of our current trading relationship, is outdated and not designed for a digital age. Originally signed in 1995 between Israel and the EU, it was developed before smartphones, artificial intelligence and the internet transformed our economies. While it allows tariff-free trade on 99% of UK goods exports by value, it currently contains scant provision for the United Kingdom’s thriving services sector. We intend to change this by putting services at the heart of a modern new agreement, which better benefits the UK economy. Upgrading our trade deal with Israel will help unlock a stronger, more advanced partnership. A new agreement could make it cheaper and easier for innovative UK services and tech companies to trade with Israel, benefiting sectors including finance, accountancy and legal. The new deal will play to our strengths, reflecting the realities of trading in the 21st century and allowing us to take advantage of future innovations.

Around 6,600 businesses from all four corners of the United Kingdom exported their goods to Israel in 2020. Of these firms, 5,600 were small and medium-sized enterprises (SMEs). The United Kingdom’s SMEs could be amongst the biggest winners from a new agreement with Israel, as we seek to make it easier to do business and focus on trade barriers that may have deterred them from previously entering this exciting marketplace.

The Government are determined that any agreement must work for consumers, producers, investors, and businesses alike. We remain committed to upholding our high environmental, labour, public health, food safety and animal welfare standards, alongside protecting the national health service.

The Government will continue to update and engage with key stakeholders, including Parliament and the devolved Administrations, throughout our negotiations with Israel.

[HCWS247]

Canada Trade Negotiations: Update

Anne-Marie Trevelyan Excerpts

Tuesday 19th July 2022 Written Statements

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

The second round of UK-Canada Free Trade Agreement negotiations began on 20 June and concluded on 24 June. Owing to concurrent negotiations with India and CPTPP, a limited number of sessions will be held outside of this week, including goods market access, scheduled for mid-July.

The negotiations were hosted by Canada and conducted in a hybrid fashion; 40 UK officials travelled to Ottawa for in-person discussions and a further 145 attended virtually from the United Kingdom. Technical discussions were held across 34 policy areas over 52 separate sessions.

During this round, the UK set out its policy positions, having tabled text for the majority of chapters. Discussions were constructive, reflecting a determination from both sides to make progress, although we are only in the early stages of negotiations.

The negotiations continue to reflect our shared ambition to secure a progressive deal which looks to build on the UK-Canada Trade Continuity Agreement, and strengthens our existing trading relationship, already worth over £21 billion in 2021.

The third round of negotiations is due to take place in September 2022.

We remain clear that any deal the Government strike must be in the best interests of the British people and the economy.

The Government will keep Parliament updated as these negotiations progress.

[HCWS220]