Exiting the European Union and Global Trade

Catherine West Excerpts

Thursday 6th July 2017 Commons Chamber

[Richard Graham]

I thank my hon. Friend for his comments. I am not going to talk too much today about the differences between, and indeed the closeness of, Hong Kong and China.

Our exports to China doubled between 2010 and 2016, but they are very dependent on the success of a handful of companies, especially Jaguar Land Rover. What holds us back, and where we have to make much greater progress, is market access. With an excellent new director general of trade and investment in Beijing, recruited from industry, I hope that Ministers will drive real progress in this strategic partnership to deliver greater access for British services, in particular.

[Catherine West (Hornsey and Wood Green) (Lab)]

Does the hon. Gentleman accept that we should be focusing on the role of innovation, universities, science and technology in the context of Brexit?

[Richard Graham]

Yes. The hon. Lady is absolutely right in general. I was going to touch on the importance of education as one of our high-growth exports, and that has to be innovation-led. FinTech, but also lots of other techs, is an area where we can do much more. She is right on that.

Meanwhile, in ASEAN—the Association of Southeast Asian Nations—total exports in the last year for which for we have complete figures were up by 4%. Exports to two of my markets—Indonesia and the Philippines—were up strongly, while Malaysian exports dropped slightly, but from a much higher starting point. Goods exports in the past six months rose by 8.3%, demonstrating that this progress was not just a flash in the wok. We have real success, particularly with business services and insurance, but also with FinTech, MedTech, and even EdTech—not to be confused with EdStone. It is worth noting that we now sell more in education than in insurance. Our partnerships on education in Malaysia are a strong example of what can be done. It remains a strong goal for us as a nation, but also a dream of mine, to establish a British university in the Philippines and in Indonesia.

This matters, because one of the joys of being in business in Asia in general is that long relationships and trust drive business as much as the quality of the product and the transaction itself, and those relationships start early, at schools and universities. In the long term, our education presence and links will enable us to catch up with our main European competitors—Germany and France—in exports of goods, while retaining our advantages in services. This is why we should not include students in our immigration figures, as it leaves an impression of not welcoming foreign students. Moreover, our universities’ growth in foreign student numbers has been well below the growth realised by other Anglo-Saxon countries such as the US, Canada and Australia. This is an opportunity that we can seize, and I hope that the Minister will refer to it.

The prosperity fund will play a key role in growing our bilateral business opportunities. I encourage Ministers to ask that trade envoys be involved at an early stage of any proposal. The Minister knows that not long ago we had three trade envoys in ASEAN, but now only myself. I hope he will encourage the Prime Minister to consider appointing additional bilateral trade envoys to ASEAN nations, which, in turn, can help take forward the bilateral trade relationships by including the business of business in the annual high-level Government-to-Government meetings.

In recent years, British businesses have made great strides in ASEAN markets. For example, we partner with Indonesians to win airport refuelling contracts. We have developed a biogas bus service in Bali from recycled cooking oil. We provide teacher training in Borneo. We advise on air traffic management, engineering consultancy services, rail projects, and public-private partnership structures for hospitals. We equip their airlines with engines and supply most of the exciting parts of their Airbus aircraft, and we are setting up a toothpaste factory and emergency power generation, as well as a new velodrome, and much more besides, to help make the 2018 Jakarta-based Asian games a great success. From museums to marine energy, there is much that we are doing in the world’s fifth largest country. It has been described by The Guardian as the “Biggest invisible thing on earth”, but it is not remotely unknown to us.

What we do in Indonesia is one example of realising the great opportunities in Asia and in ASEAN in its 50th anniversary year. It is a region where the GREAT campaign is well recognised and the Union Jack a strong brand, and London is the best showcase for its international growth and aspirations. As I have indicated, we can do much more, but we build on strong foundations. Let us not be shy to tell our story and do more.