Oral Answers to Questions
Bob Blackman Excerpts(2 years, 5 months ago)
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Bob Blackman (Harrow East) (Con)
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.
Andrew Griffith
It is not at all the intention of the Government to put barriers in place; this Government are about knocking down barriers to export and unleashing the potential of small businesses across the United Kingdom to make the most of the opportunities not just in the European Union but in the rest of the world, as we have heard from Government Members.
Bob Blackman (Harrow East) (Con)
Recently, my right hon. Friend the Secretary of State announced enhanced free trade deal negotiations with our close allies and friends in the state of Israel. Will she set out for the benefit of the House the aims of those negotiations and what the benefits to the UK will be?
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
I thank my hon. Friend for his diligence in championing the opportunities from free trade with Israel and many other countries around the world, including India. As two like-minded partners with expertise in areas such as tech and innovation, we are very confident that we can agree an ambitious deal that will complement both economies and showcase our leading businesses, growing our trade even further than we already have today.
Oral Answers to Questions
Bob Blackman Excerpts(2 years, 9 months ago)
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Bob Blackman (Harrow East) (Con)
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.
India-UK Trade Negotiations
Bob Blackman Excerpts(2 years, 10 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Philip Davies (in the Chair)
Before we begin, I remind Members of the House of Commons Commission’s guidance to observe social distancing and wear masks when not speaking.
Bob Blackman (Harrow East) (Con)
I beg to move,
That this House has considered India and UK trade negotiations.
It is a pleasure to serve under your chairmanship, Mr Davies, I think for the first time. I thank the Backbench Business Committee, on which I sit, and Madam Deputy Speaker for allowing us to have this very important debate. I declare my interest as co-chairman of the Indo-British all-party parliamentary group—the other co-chairman, the hon. Member for Ealing, Southall (Mr Sharma), is also present. This is an important time: trade talks between the UK and India have already begun. There is a tremendous opportunity, which I will go into in some detail.
Of course, we have the opportunity to negotiate a trade deal with India—our friends—because we have left the European Union; we now trade and negotiate as a free trading nation. We must embrace the opportunities that that gives us. Colleagues from across the House will, no doubt, also go into the detail of those opportunities, including in services, particularly for the City of London, legal services—India, after all, has the same basic legal system as we have—manufacturing, and Scotch whiskies and Irish whiskeys, which face huge tariff barriers in India at the moment. Those must form part of our successful negotiations.
We have this opportunity because we have a long-term friendship with India. The European Union has been trying to do a deal with India since 1997, but without success. The United States of America has been trying to do a deal with India, but without success. We should therefore not underestimate the difficulties that we may face. Over the weekend we had the good news that our potential membership of the comprehensive and progressive agreement for trans-Pacific partnership, which is worth trillions of pounds, is moving forward. The trade opportunities with India are enormous, and clearly a free trade agreement will support the Government’s strategy of developing the status of the United Kingdom—global Britain—as an independent trading nation.
We are seeking trade and investment opportunities. We champion free trade—I am sure that my hon. Friend the Minister will allude to that particular issue in his speech. We have already negotiated a long-term arrangement with India—co-operation has been taking place over the last year—but now, free trade is the key to our success.
India is a dynamic, fast-growing economy at the heart of the Indo-Pacific region. Our bilateral trading relationship is already quite significant, and we should not underestimate that—£23.3 billion in 2019. A free trade agreement could strengthen that, and could potentially increase exports by £16.7 billion by 2035. That is a goal that we must secure. We can also enhance the already existing trading relationships, which are considerable, and give the UK access to a market with long and short-term benefits. A free trade agreement has to work not only for the United Kingdom but, obviously, for India.
Theresa Villiers (Chipping Barnet) (Con)
Does my hon. Friend agree that one of the significant benefits of a free trade agreement between India and the United Kingdom is access to a market that is increasingly prosperous? Over recent years, millions of people in India have been lifted out of poverty because of economic growth and prosperity. That is fantastic news for India, and it also creates a great opportunity for businesses based in the UK to increase their trading with India.
Bob Blackman
I thank my right hon. Friend for her intervention. India has a young population, full of entrepreneurs and people who want to succeed, and with a growing and establishing middle class and, indeed, upper class. The potential for a wide range of exports gives us many opportunities to draw on for the overall benefit of this country.
UK consumers, producers and businesses will all gain from a free trade agreement. We must maintain our high environmental standards on labour, food safety and animal welfare in any free trade agreement, not just with India but across all our different agreements. It is also important to protect the NHS when we negotiate, as we do not want it to be compromised in any shape or form. We want to secure the best possible agreement, and the potential interim agreement could deliver early benefits. I look forward to the Minister alluding to that agreement, as well as to the strategic opportunities I have mentioned.
We share a common set of values. India is the world’s largest democracy and has long maintained its support for international co-operation and democratic Government. As my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) said, there have been huge advances over the past few years in the economy of India, the rights of Indians to work, and for villages across India to gain benefits from its trading position.
We work together in various multilateral fora, including the United Nations, the World Trade Organisation and the Commonwealth. In May 2021 we committed to an enhanced trade partnership, which could double trade by 2030, strengthening our relationship and invigorating our respective economies. That is part of a 2030 road map that covers the full spectrum of our relationship with India.
We have strong cultural links. Some 1.5 million British nationals are of Indian origin. I see one or two here in the Chamber, which demonstrates the role that the British Indian population plays. We support over half a million jobs in each other’s economies, so an agreement would further develop that deep-seated relationship. It would also help put global Britain at the heart of the Indo-Pacific region—one of our key strategies—which now represents 40% of global GDP and has most of the world’s fastest growing economies. As they expand, it is key that we have access to their markets.
An agreement with India would complement our other commitments, such as those to Australia and New Zealand, and the ongoing negotiations with the other 11 members of the CPTPP. Tilting towards the Indo-Pacific would diversify UK trade, make our supply chains more resilient and make us less vulnerable—particularly on a day like today—to political and economic shocks around the globe. It would also cement our position as a world leader in free trade and strengthen democracies around the world, which can only be a gain for India and for us.
I will not go through the many benefits of free trade agreements, as I know a number of hon. Members want to contribute to the debate. But let us be clear: reducing barriers will make trade easier and cheaper for UK exporters, as well as improve choice for UK consumers.
In 2019, India imported £5.35 billion-worth of goods from the UK, of which £5.24 billion was in lines subject to tariffs. That gives a feel for how much opportunity exists. Removing those tariffs would enable us to double our exports to India. India’s middle class, which I mentioned earlier, is expected to double from 30 million people in 2019 to 60 million by 2030, reaching nearly 250 million in 2050. If that is not an opportunity, I do not know what is.
We will have huge opportunities to sell high-quality iconic brands and products. Removing tariffs and giving greater clarity on legal certainty would support our UK businesses, such as those in the automotive, agrifood, machinery and pharmaceutical industries, to name but a few. That would also mean our manufacturers saving costs by getting cheaper parts for products, while our consumers in the UK would benefit from the variety and affordability of different products.
The opportunities for UK services and investment are huge. At the moment, they amount to £3.2 billion. The fact that the expanding services sector in India is expected to reach 54% of its economy demonstrates the opportunity for us as a trusted partnership.
Mark Garnier (Wyre Forest) (Con)
My hon. Friend is making a strong point about how reducing barriers to entry will increase trading opportunities with India. Does he agree, however, that it is the job of the Department for International Trade to do not only trade policy but trade promotion? The Tradeshow Access Programme and other good innovations are required to support British businesses that are seeking to take advantage of opportunities. I look forward to the Minister’s explanation of what goes on in his closing speech.
Bob Blackman
My hon. Friend is a former Trade Minister who knows such things all too well. Those go hand in hand—it is no good having a free trade agreement if we do nothing with it. Indeed, before we get to the free trade agreement, we have to use the opportunities we have in the diaspora here and all the other opportunities for trade.
There is also a great opportunity in the digital sector. The Government of India aim to have a $1 trillion online economy by 2025. We expect internet penetration in India to hit 50%—or 622 million users—so the free trade agreement represents a huge opportunity for businesses in the UK, such as those in tech, artificial intelligence and cyber-security.
A trade agreement will not only build on our relationship but give young Indians the opportunity to come to this country to study—to get their degrees, master’s degrees and PhDs—and to return to India to use the knowledge that they have gained in friendship with the UK and to expand India’s economy even more. We already have excellent educational co-operation, in particular with our higher education facilities, but I want to see us do better. I want us to get back to the position where the UK is where India chooses to send its young people to for study. We have slipped behind in recent years, and myths have developed about caps on numbers. Those are problems to resolve—we know that—but nevertheless we want to return to the position whereby we are the place of choice.
Indian-owned businesses in the UK employ more than 95,000 people. Some 29,200 are employed in the west midlands alone—at least one west midlands MP, the right hon. Member for Walsall South (Valerie Vaz), is present—with 20,700 in London and 10,700 in Wales. Indian investment alone created 15,000 new jobs in the past three years. That demonstrates our opportunities to expand. Furthermore, India’s import requirements are set to be worth £1.38 trillion in 2035, which gives us an opportunity—if we can reduce the high tariff barriers—to utilise our capability to provide a high level of services and good-quality goods.
The tariffs paid on exports to India total £49 million a year. The tariffs for automotive manufacturers stand at 125%, so a trade agreement would obviously benefit them. In 2019, 9,900 UK businesses exported goods to India, 98% of which were small or medium-sized enterprises. That demonstrates that it is not only big companies but small companies that could gain.
We are a global leader on climate action, and the Government are obviously maintaining our high standards of environmental protection within trade agreements. An agreement with India could represent a huge opportunity for our world-leading renewable energy industry. The Government of India recognise the need to transition towards renewable gas and plan to install 175 GW of renewable energy capacity by the end of this year. Our expertise can help them to achieve that and to remove their dependence on coal and other fossil fuels. Although we already have a productive trading relationship, it would also help us to bounce back from the pandemic and to invigorate trade and investment services.
The reality is that our negotiation stance needs to be clear and above board, and we need to be clear that India was the UK’s 15th largest trading partner in 2020. As I have said, trade was worth £23.3 billion and our exports worth £8.5 billion in 2019. That makes India the 10th largest export destination for the UK. Outside of the EU, that clearly provides us with a huge opportunity. Imports were worth £14.8 billion in 2019, which was 2.1% of our imports, making India the UK’s fifth single largest import supplier. India is now the fifth largest economy in the world and the third biggest investor in the UK. We have slipped down the list on investment in India, and we need to put that right as we go forward. We were the third biggest investor in India, but I think we are now fifth or perhaps even sixth. India is the second most populous country in the world, with 1.38 billion people back in 2020, which amounts to 18% of the world’s population. I am throwing out a lot of stats, because we need to understand the huge benefit that can result from having a free trade agreement with India.
Obviously, under covid, both our economy and India’s economy contracted, but as they expand we will have an opportunity to get involved in further investment in India. At the moment, India is projected to overtake Germany and become the world’s fourth largest economy by 2030, and it could leapfrog Japan to become the third largest by 2050. The opportunity there is huge, and India has obviously been the engine of global growth over recent years, with its economy growing by 7% a year. If we could grow our economy by 7%,- wouldn’t we bite people’s hands off to achieve it? Clearly, that is going to be the position. I have mentioned India’s middle-class market, which is growing fast and which is a huge opportunity for us overall.
With a free trade agreement with India, we can obviously support jobs across the UK. If our exports to India grow, we can grow our businesses, and SMEs will grow as a direct result. In 2019, something like 1,000 Indian-owned local business units were operating in the UK, so clearly the opportunities are there and the demand for imported goods and services will grow as we use the living bridge between the United Kingdom and India.
Obviously, the success of exports to India will depend on how well the world economy goes and how our relationship grows with it. As I understand it, the second round of negotiations is due to take place between 7 March and 18 March, with a shared ambition to conclude negotiations by the end of this year. I wish those negotiations well, and I hope the Minister will be able to update us on the position when he responds to the debate.
Looking at the various parts of our economy, there are huge benefits right across the UK to having a trade agreement with India. One of our hugest exports is Scotch whisky. That has a huge impact. Those of our Scottish friends who are present—the hon. Members for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), for Glasgow East (David Linden) and for West Dunbartonshire (Martin Docherty-Hughes)—know that they will gain as a result of a global Britain free trade agreement. If they were to engage in foolish behaviour and leave the United Kingdom, they would lose that free trade agreement and once again face tariffs of 150%. Indeed, the export of Irish whiskey is a vital part of the Irish economy and will clearly be—
David Linden
I am grateful to the hon. Gentleman for giving way. I think he has given me this opportunity before gets himself into a bit of a hole. First, he had a pop at independence, only to then turn it into saying how successful Ireland is. I am grateful to him for that, but I thought I would give him the opportunity at least to try a glass of water, if not some whisky.
Valerie Vaz (Walsall South) (Lab)
I take issue with one or two of the points that the hon. Gentleman has made. He spoke cleverly about what the UK can do for India, when the reality is clearly the reverse: we have imported fantastic, highly educated doctors, nurses and IT people.
He talked about whisky; I hope he does not intend for India to become a land of alcoholics. I would like to share an example from my youth of India’s innovation: instead of importing Coca-Cola, it made its own version, Thums Up. It is a very innovative country. I would like to correct the record slightly: our parents and grandparents would not forgive us if we did not say that they were also highly educated and innovative.
Bob Blackman
I thank the right hon. Lady for that intervention. Clearly, the living bridge, as I have described it, of citizens of Indian origin in the UK is not only highly educated, but has the opportunity to build that relationship still further. Equally, there is a potential opportunity for people of UK origin to study at universities and other educational institutions in India. I look forward to those important exchanges taking place.
There is clearly a huge opportunity for us to go forward. The opportunities that arise from a potential free trade agreement are legion. To come back to whisky and the huge 150% tariff, with respect to the right hon. Lady, India manufactures its own whisky, which is a good product but clearly no substitute for that from global Britain. Negotiating that tariff down will be a prize and a huge advantage for our exports to India. It is a premium product that is well respected by the middle classes across the piece, and very welcome.
I will not trouble colleagues further because I know others want to contribute. The opportunities are huge, and it is up to us to grasp that nettle. I look forward to the Minister’s reply to the debate, including the opportunities, our negotiating position, how negotiations are going and how much progress we have made. If we bring off this free trade agreement, it will be a feather in the Government’s cap. More importantly, it will be a huge opportunity for the United Kingdom and India to cement our long-term relationship.
Several hon. Members rose—
Oral Answers to Questions
Bob Blackman Excerpts(2 years, 11 months ago)
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Penny Mordaunt
As I have alluded to, as well as the economic benefits that we hope trade agreements will bring, they are about highlighting the fantastic food safety, quality and welfare standards of our local produce and are an opportunity to champion that. For example, on my recent visit to the United States I met the agriculture commissioners of every state and talked about the practices and values that sit behind what we do here in the UK. The United States is interested in that and wants to reform some of its practices. I know that the hon. Lady is passionate about this agenda and hope she will support us in ours.
Bob Blackman (Harrow East) (Con)
Mr Speaker
We have a slight problem. Will the Secretary of State answer the question? I will then go to the Opposition spokesperson.
Anne-Marie Trevelyan
As I said, the negotiations with our Indian counterparts have just begun. We will not discuss the details of the negotiations while they are going on, but I have been very clear with the Indians and through our consultation process that we will want to see movement on issues such as high tariffs on some of our iconic UK products.
Bob Blackman (Harrow East) (Con)
My apologies for not being here earlier, Mr Speaker. Clearly, the start of the talks with our friends in India is extremely welcome news, particularly for Scotch whisky exporters, who could gain tremendously. Will my right hon. Friend update the House on the projected timetable, and will she publish some objectives in relation to what we are attempting to achieve with our friends in India?
Anne-Marie Trevelyan
Following our discussions last week, Minister Goyal and I were very clear that we want our negotiating teams to crack on and get a clear picture of the areas that we want to bring together in our free trade agreement with India. We have set our negotiators an initial target to see whether we can bring this to a conclusion at the end of this year or in early 2023.
UK-Israel Trade Negotiations
Bob Blackman Excerpts(2 years, 11 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Ian Paisley (in the Chair)
Before we begin, I remind Members that they are expected to wear a face covering when they are not speaking in the debate. This is in line with the current guidance that the House of Commons Commissioners would like to be enforced.
I also remind Members that they are asked by the House to take a covid lateral flow test before coming on to the estate. Please also give each other and members of staff space when seated, and when entering and leaving the room, where possible.
Bob Blackman (Harrow East) (Con)
I beg to move,
That this House has considered UK and Israel trade negotiations.
It is a pleasure to serve under your chairmanship, Mr Paisley, which I think is for the first time.
I declare my interest up front: I am the chairman of the all-party parliamentary group on Israel. In the last year, we released an excellent report, which I commend to my hon. Friend the Minister, on the health tech part of our industries. It is a very good read, which demonstrates the importance of Israel-UK negotiations and having them set up. Moreover, we are just about to release a report on research and innovation, which I also commend to him.
Israel and the UK’s partnership on the technology front extends to the fact, of course, that we have the Israel tech hub in the embassy in Tel Aviv. This morning, I was talking to the all-party parliamentary group on Romania, which wants to mirror that tech hub, demonstrating that the relationship between the UK and Israel is not only good for the UK and Israel but means that we can set up similar arrangements for like-minded countries across Europe and across the world. So I welcome the Government’s commitment to further strengthening the ties with Israel, which of course is a close friend and ally of the United Kingdom.
It is of course timely that we are having this debate, because I know that very shortly we will embark on new trade talks to enhance the UK’s trade relationship with Israel still further, which is extremely welcome.
I also thank the Backbench Business Committee, on which I sit, for granting this debate. I am not sure whether my sitting on the Committee had anything to do with it; I suspect that possibly it did. And I note that the hon. Member for Strangford (Jim Shannon) is here in Westminster Hall today; he has a season ticket to the Backbench Business Committee, as well. [Laughter.]
Israel is not just the sole democracy in the middle east; it is also a true global high-tech start-up powerhouse, with huge prowess in the fields of high-tech energy, medical science, fintech and cyber-security, to name but a few areas. The UK is Israel’s largest trade partner in Europe and its third largest trade partner in the world. That gives us something to aim at; we want to be Israel’s largest trade partner in the world.
Given the strength of our relationship, it is perhaps little surprise that Israel was among the first countries with which the UK agreed a free trade agreement in principle, in January 2019, on our departure from the EU. After successive record-breaking years, UK-Israel trade has remained healthy, even during the pandemic, with an estimated value of £5 billion. Whether it involves pharmaceuticals, plastics, fintech or agri-tech, the UK-Israel trade relationship covers all our major industries and has a natural focus on the technology and services of the future. That is a key reason why there are boundless opportunities for improvements in the UK-Israel trade relationship. The signing of a strategic agreement with Israel last November was an important point in the process. In our ever-strengthening bilateral relationship, that is the next step towards negotiating the full post-Brexit trade deal with our friends in Israel that we want to see.
So we are natural trade partners. As progressive liberal democracies, our nations share the same values and the same commitment to the open and free market. Israel’s business community regards the UK as the gateway to Europe. The UK is an appealing market. We have a shared language, as an estimated 85% of Israelis speak English as their first language. We are also obviously in close proximity to Israel and have an enterprising business culture.
Israeli businesses hold the UK market in the highest regard. We have seen many of them achieve great success here. I will mention one or two of them shortly. Israel’s tech ecosystem does not just provide economic benefits to our two great nations. Every day, Israeli businesses will be enriching and improving the lives of British citizens and making them healthier. A cab driver or parent on the school run uses Israeli sat-nav app Waze to efficiently complete their journey. A water engineer will be alerted to a leak in the network by Takadu, a start-up based in Tel Aviv. The cherry tomatoes that a shopper buys in the local supermarket are an invention from Israel. I could go on. Many constituents of mine are issued generic prescription drugs from their local GP surgery. These drugs are manufactured by Israeli pharmaceutical giant Teva, which produces an extraordinary one in six prescription drugs used in the NHS. That fails to scratch even the surface of Israeli companies operating in the UK.
There are 500 Israeli companies operating in the UK, employing thousands of our constituents. A number of UK companies have major operations in Israel, including Barclays, Rolls-Royce, GlaxoSmithKline and Unilever. Rolls-Royce was responsible for the UK’s largest ever export deal to Israel back in 2016 when it signed a £1 billion agreement with Israeli airline El Al to provide Trent 1000 engines for El Al’s new fleet of Dreamliner aircraft. A British visitor to Israel could not fail to notice the ever-growing number of UK-manufactured cars in the Jewish state.
In terms of high tech, the rapid expansion of UK-Israel trade over the last decade has closely followed Israel’s emergence as one of the world’s leaders in high tech. Israel is now home to the highest density of start-ups anywhere in the world. That impressed me, because I thought India was. Clearly, Israel is more dense in that respect. It deservedly earns its title as the start-up nation. It is also home to the world’s major technology powerhouses, including Google, Microsoft, Intel and Motorola. I have had the privilege of visiting Israel on a number of occasions with the Conservative Friends of Israel, and the dynamism and forward-thinking nature of its high-tech sector and young entrepreneurs is palpable. I particularly remember visiting an early electrical vehicle pioneer back in 2011. Remember 2011? That was 11 years ago. As is often the case, the Israeli company was many years ahead of the market. The only thing holding it back was battery technology at the time.
Israel has achieved this success with intellectual power in the face of geographic and geo-political disadvantages, conflict and a lack of natural resources. Another reason behind Israel’s success story is that the country is an investor in research and development, spending as much as 4.9% of its GDP on R&D in 2018. That is more than double that of the UK—something else we should think about. It offers us very serious food for thought.
Increasing trade with Israel has been a long-standing UK objective. The UK-Israel tech hub, which was established at the British embassy in 2011, was the first of its kind to promote partnerships in technology and innovation between the UK and Israel. It has successfully generated hundreds of tech partnerships between the UK and Israel and is so far worth more than £85 million. It has led to the additional tech hubs in India, Indonesia, Kenya, South Africa, Nigeria, Brazil and soon Romania.
Brexit has presented us with an exciting opportunity to negotiate a bespoke UK-Israel free trade agreement. Our two nations are closer than ever and share the same values and outlook on international trade. There are endless possibilities for the UK and Israel to work together to become the world’s leading tech centres. I encourage my hon. Friend the Minister to be ambitious in the forthcoming negotiations. The trade continuity agreement, which was signed in February 2019, ensured the continuation of the trade terms covered by the EU-Israel association agreement. That should be the bare minimum we seek to negotiate in the new UK-Israel trade deal.
The International Trade Secretary said last month that her Department would be opening a public consultation on this important free trade agreement this January. We do not have long to go, so I am looking to the Minister, and I do not want to hear “soon” as an answer. Given the importance of the UK-Israel bilateral deal, I wonder whether the Minister can shed some light on the commencement date. I very much hope that the starting gun will be fired in the forthcoming days.
I know many colleagues in this place are looking forward to the UK hosting a joint innovation summit with Israel in March this year, but I wonder whether the Secretary of State has any plans to visit Israel in the near future to see for herself the many trade opportunities emerging from this tech powerhouse. I trust that she will visit and that that can kick off the negotiations properly.
My hon. Friend the Minister has spoken of the UK’s desire to expand opportunities in financial services, infrastructure and technology. Can he provide an update on the progress of these sector-specific ambitions?
The UK and Israel can boast the world’s two most successful covid-19 vaccination programmes, which is a source of great personal pride to both countries. Our beloved NHS has delivered a vaccination programme at a speed and scale that is truly the envy of the world. Israel’s digitalised healthcare system played an instrumental role in that success. The Department for International Trade has previously expressed the desire to seek a trade deal with a chapter focused on advanced digital data and technology, including med-tech. Can my hon. Friend the Minister assure me that that remains the plan? What discussions has he had with his counterpart in Israel on the subject?
Israel’s success in R&D is commendable. Will the Minister consider using free trade negotiations to explore a binational research and development programme to the mutual benefit of both countries? Israel has such a programme in place with the United States, known as BIRD—Israel-US Binational Industrial Research and Development—and cumulative sales of products co-developed by Israeli and American companies through BIRD have exceeded $10 billion. Given the immediate strategic challenge posed by disruptive actors on the international stage, it is more important than ever that we work with trusted allies to produce the technologies of the future.
As we move to deliver on our net zero commitments, I call on my hon. Friend the Minister to work closely with Israel. The country has been known as the superpower of sustainability. While we will not be able to recreate here the solar tower that harnesses Negev sunshine to generate electricity, we can certainly learn much from Israel’s world-leading water reuse programme to avoid future droughts. The UK and Israel boast sector-leading green-tech and agri-tech start-ups, and there are many opportunities to expand on that.
With this ambition in mind, I call on the Minister to seize the opportunity of the historic Abraham accords, which have ushered in a ground-breaking new chapter for peace in the middle east, between Israel and her neighbours in Bahrain and the United Arab Emirates. While the accords have been in effect for less than two years, they have already had a seismic effect on the region in terms of trade and investment, which has rapidly expanded.
The breakthrough water-for-energy deal between Jordan and Israel, brokered by the UAE, demonstrates that the peace is far-reaching and gives us, tentatively, an opportunity for proper peace in the middle east. I hope the UK will actively consider the ways in which we can support these new links, and use our own strong relationships in the region to further build on the Abraham accords.
There are challenges. The Government have prioritised the relationship with Israel and have put in place frameworks to stimulate collaboration, but there is much more we can do to ensure that Israeli companies make the UK their natural first stop internationally to trial and scale their products.
I had the pleasure of releasing “A shot in the arm: Israel and UK healthtech innovation”, a report from the all-party Britain-Israel parliamentary group and UK Israel Business. The report identified several impediments that face Israeli health-tech companies seeking to enter the UK market. Many of the proposals would also work across different sectors. For example, the report recommends creating new UK-based landing pads to assist Israeli companies touching down in the United Kingdom, which should include advice on how best to position their value proposition and achieve adoption at pace and scale in the UK.
Another challenge facing Israeli start-ups is the constraints imposed by short-term visas. We contend that as part of the Israel-UK landing pad, start-ups selected and incubated through the scheme should be automatically awarded a start-up visa as part of the scheme. A visa awarded to landing pad companies would be time-bound by the landing pad programme horizon—a scheme that already takes into account other critical factors such as capital requirements, pilot testing and scale horizons. Will the Minister take the time to read the report, consider its recommendations and, I hope, act upon them?
While there is much to celebrate in our burgeoning trade relationship with Israel, it would be remiss of me not to quickly touch on the so-called Boycott, Divestment and Sanctions movement—or BDS, as it is more commonly known. Simply put, BDS is a harmful, politically-motivated campaign that seeks to delegitimise Israel. BDS does nothing to advance the Palestinian cause; in actuality, it is anti-peace. I applaud the Government for their rejection of BDS and their clear commitment to ever-greater trade with Israel.
The fact that many of those targeting Israel with economic boycotts also actively seek to extend their harmful boycotts to those in the cultural and educational spheres says everything we need to know. It is unthinkable to me that anyone could seek to minimise collaboration between UK and Israeli scientists tackling some of the greatest health challenges facing our societies, such as Alzheimer’s, covid-19 and Parkinson’s disease.
It is deeply regrettable that Ben & Jerry’s—the ice cream makers owned by British company Unilever—has engaged in its own recent boycott of Israel; the controversial move rightly provoked strong condemnation. I call on Unilever to challenge such harmful measures.
The Government’s forthcoming legislation to stop public bodies across the UK discriminating on grounds of country and territory of origin must feature provisions to prevent procurement policy being used as a tool of foreign policy or an attempt to regulate international trade. Legislating on this important manifesto commitment will be warmly welcomed by many of my constituents, and I call on the Minister to work closely with colleagues in the Department for Levelling Up, Housing and Communities to counter discriminatory policies that are harmful not only to community cohesion here in the UK but to the UK’s trade interests and foreign policy goals. I commend the UK Government’s response to BDS, which has been to seek ever-closer economic relations with Israel. Now is the time to go one step further and ensure that the principles of fairness and non-discrimination are enshrined at the heart of the UK’s public procurement regime.
Having experienced a decade of record-breaking growth in trade, the United Kingdom and Israel are natural partners across a wide range of innovative fields—from financial to agricultural technology, spanning government, the private sector and higher education. We therefore have before us an invaluable opportunity to reshape our trading relationship for the future. The UK-Israel trade deal is much anticipated for its many important economic benefits, but it also presents an opportunity for the UK to expand its ever-tightening relationship with a close ally. Given Israel’s status as a world-leading tech power, it is important for the UK to make the most of the many advantages of the trade deal by taking an ambitious approach to trade negotiations.
Done right, this deal could serve as a model for UK partnerships with other advanced, innovation-intensive states, including South Korea, Singapore and Taiwan. My colleagues and I stand ready to support work on an enhanced trade agreement. I hope that the Minister can assure me and my hon. Friends that the call for input is about to begin, and that we can look forward to an excellent free trade deal with our friends in Israel.
Bob Blackman
I will try not to abuse your offer, Mr Paisley. I thank colleagues across the Chamber for their contributions on this important debate. I thank the Minister for his replies to some of the questions. The one that he did not answer was when these trade negotiations would actually begin. We look forward to those beginning and bearing fruit as we come forward.
To update the hon. Member for Strangford (Jim Shannon), I was stuck in a tremendous traffic jam on the way to the House. That is why I was not there for the beginning of International Trade questions, but I got there in the end. I put that on the record.
I thank my colleagues and friends who have made contributions. We have highlighted, in many aspects, the opportunities for trade. I say to the hon. Member for Airdrie and Shotts (Ms Qaisar) that one of the issues here is that we are not seeking to replace trade anywhere else, but to enhance trade. By expanding trade, everyone gains. The fact is that Israeli businesses and Palestinian businesses gain from trade agreements that we have with both Israel and the Palestinian Authority. Those individuals in Palestine who work for different companies—some work for Israeli companies—actually benefit directly as a result of free trade being created and enhanced.
I thank the hon. Member for Brentford and Isleworth (Ruth Cadbury) for her contribution. I noted, of course, that she referred to the historical ties between the British Labour party and the Israeli Labour party. Of course, the Israeli Labour party is now currently in the coalition Government, and has agreed to further settlements in the west bank, so I am not sure quite where that fits with the hon. Lady’s particular speech as we went along.
I thank everyone here for this debate, my colleagues on the Backbench Business Committee for allowing it to take place, and my hon. Friend the Member for Hendon (Dr Offord) for enabling everyone to have a morning off next Wednesday—in preparation, presumably for Prime Minister’s Question Time, so we can hone our skills. I look forward to the Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) visiting Israel and hopefully announcing on her visit the start of those trade talks, so that we can look forward to that free trade agreement being in place by the end of this calendar year.
Question put and agreed to.
Resolved,
That this House has considered UK and Israel trade negotiations.
Oral Answers to Questions
Bob Blackman Excerpts(3 years, 2 months ago)
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Mr Jayawardena
I appreciate the strength of the hon. Member’s conviction in this area, but I come back to the core answer, which is that Her Majesty’s Government will work in every possible way we can to resolve such issues. Ministers have raised this issue with Chinese counterparts, and this Department continues to press the Chinese authorities for a swift resolution. We are working very closely with affected British pork processing plants. I would just make the point to him that we are very clear-eyed on our trade relationship with China. We have no plans to negotiate a trade deal, but we believe that more trade with our trading partners around the world, including China, is important, so we are working very closely on this.
Bob Blackman (Harrow East) (Con)
The Secretary of State for International Trade (Anne-Marie Trevelyan)
I met my Indian counterpart, Minister Goyal, at the G20 in Italy last week to discuss final preparations for the launch of negotiations before the end of this year. My officials have concluded a series of bilateral working groups with Indian colleagues, and we will publish our negotiating aims, the response to the public consultation and an economic assessment of the FTA in the coming weeks.
Bob Blackman
I congratulate my right hon. Friend on her new job. The EU has been trying, unsuccessfully, to do a trade deal with India for 24 years, but we have an advantage. India is the third biggest investor in the UK, and we used to be the third biggest investor in India, but we have slipped down the league table. Does my right hon. Friend agree with me that, now that we are free from the shackles of Brussels, we have the ideal opportunity to negotiate a free trade deal, which would be good for our two great countries?
Anne-Marie Trevelyan
I thank my hon. Friend for his passionate presentation. I know about his relationship with India, and I hope very much that we will be able to harness all his knowledge and passion as we pull this together. We are in the final phase of preparations for the launch of negotiations very shortly, and I look forward to updating the House on our negotiating aims very soon.
Mr Jayawardena
We will always look very closely at any abuses of rights and responsibilities around the world. The agreement the hon. Lady refers to is based on an EU agreement, which provided us and businesses across the country with continuity. It is important that we ensure we balance the objectives across our trade agreements to deliver benefits for British businesses. I know that British businesses across the north-east value greatly that agreement.
Bob Blackman (Harrow East) (Con)
What progress has my right hon. Friend the Secretary of State and the team made on increasing trade with Israel, our good friend and partner, particularly in the pharmaceutical and high-tech industries?
Mr Jayawardena
Trade with Israel is going from strength to strength. My hon. Friend is right to raise the opportunities in tech in particular for the future. We are probing and scoping for better and deeper trade relations, including a future revised trade agreement that will allow us to do much more in the years ahead.
Sale of Arms: War in Yemen
Bob Blackman Excerpts(4 years, 5 months ago)
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Bob Blackman (Harrow East) (Con) [V]
The humanitarian situation in Yemen is, of course, a proxy war between the Saudi Arabian-led coalition and the Iranians and their proxies, with the innocent civilians in the middle of it. What efforts is my right hon. Friend making to use his Department’s capability on trade to encourage these parties to come to the table and negotiate a political settlement under which Yemen can become a peaceful place for innocent civilians to live in once again?
Greg Hands
I thank my hon. Friend for his question. He has great expertise on the region and in these matters. The UK is involved right the way across Government —it is a whole-of-Government effort—to make sure that we seek a diplomatic solution in the region. If the Department for International Trade can play a role in that, we certainly will—and we certainly are. On our relationship with Iran, it is very important that Iran also complies, particularly in relation to trade matters, with the sanctions regime and the World Trade Organisation.
Oral Answers to Questions
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The Parliamentary Under-Secretary of State for Health and Social Care (Ms Nadine Dorries)
On the particular issue of endometriosis, I will have to write back to the hon. Lady, but being wrongly diagnosed as having a mental health condition is incredibly serious, and we are looking into rolling out training to GPs to help them better to diagnose mental health conditions. I will use this opportunity to say again that we are investing £2.3 billion a year in mental health services in the community, and hopefully that will go into GP practices and GPs will know not to make those kinds of diagnoses in future. I will get back to the hon. Lady on that particular condition.
Bob Blackman (Harrow East) (Con)
When she was Minister for Women and Equalities, my right hon. Friend the Member for Portsmouth North (Penny Mordaunt) committed to the House to introduce legislation to remove caste as a protected characteristic from the Equality Act 2010. When will the current Minister for Women and Equalities and her team bring forward legislation so that we can end this bizarre and divisive situation?
Victoria Atkins
It is a pleasure, as always, to respond to my hon. Friend on this important piece of work. I am in the process of discussing this with the Secretary of State, and we hope to have an answer for him shortly.
Oral Answers to Questions
Bob Blackman Excerpts(5 years, 7 months ago)
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Dr Fox
Let me associate myself immediately with the hon. Gentleman’s sentiments about the loss of lives as a result of the tragic crashes of the 737 Max aircraft. Safety issues are, of course, the responsibility of the Department for Transport but, in the context of international competition, as he is well aware, there have been two recent cases at the World Trade Organisation relating to Washington’s state subsidies for Boeing and European subsidies for Airbus. As far as I am concerned, the issues relating to Airbus have been solved. I think that we would all benefit from a clear set of international rules on aircraft subsidy so that we could be assured that there is a genuine international level playing field, not least because of the rise of the Chinese aircraft industry and its entry into the market.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
According to an EY report, foreign direct investment has tended to move out of London into other parts of the United Kingdom, and there has been an increase in manufacturing activity. We are seeking to expand exports from all parts of the country, not least to India, and I am delighted to say that exports to India were up by nearly 20% in 2018. Only last night I attended the Grant Thornton tracker event with Mr Banerjee, the director general of the Confederation of Indian Industry, who is a great friend to this country and to our businesses up and down the land.
Stephen Hammond
The conclusion I draw is to look at Public Health England’s recent review, which made it clear that it is not possible to attribute the slowdown in the improvement of life expectancy to any single cause. That is why we are not complacent, as I said in answer to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah). The Budget saw us fully fund the situation with a big cash boost, and there will be a prevention Green Paper and we have a prevention vision. All that will contribute towards ensuring that life expectancy, which has not been as good as one would have liked, improves.
Bob Blackman (Harrow East) (Con)
Smoking rates among pregnant women, particularly in poorer regions, remain stubbornly high, so what action is my hon. Friend taking to reduce smoking rates in order to make pregnancy and childbirth easier for young people?
Stephen Hammond
As I said in response to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), the Government have already put in place prevention programmes to ensure a reduction in smoking rates. The prevention vision and the prevention Green Paper will set out the means by which smoking can be reduced further to support people, pregnant or otherwise.
Oral Answers to Questions
Bob Blackman Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)
The Conservative party took immediate action to suspend 14 members who put issues in, so we are not going to take any lectures from a party that refuses to suspend people or throw them out of the party for antisemitism.
Bob Blackman (Harrow East) (Con)
Penny Mordaunt
We are proceeding with this as soon as a suitable legislative vehicle is available. However, I can update my hon. Friend and tell him that the guidance that we promised to publish alongside it has now been produced. It is there to help employers, service providers and individuals to understand the context of the Equality Act, and it is going out for consultation with stakeholders this week.