Oral Answers to Questions

Douglas Alexander Excerpts

Thursday 5th September 2024 Commons Chamber

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

Forty-seven per cent of the United Kingdom’s total trade is with the European Union, and improving trade is a central part of the Government’s ambition to reset our relationship with Europe. Ministers have already been engaging positively on trade issues with our EU and member state counterparts, including EU Executive Vice-President Dombrovskis, German Vice-Chancellor Habeck and Italian Minister Tajani. The Government are seeking the practical changes needed to ensure smoother trade between the United Kingdom and Europe—for example, on mutual recognition of professional qualifications, which have already been mentioned.

[Helen Hayes]

Goods exports to the European Union are still 11% lower than in 2019, before the Brexit agreement took effect. Can the Minister confirm that, in seeking to grow the UK economy, the Government will take an evidence-based approach to the UK’s trading relationship with our nearest neighbours, and will take all possible measures to remove the barriers to trade that are holding our country back?

[Mr Alexander]

I thank my hon. Friend for her question and her observation on the character of trade in recent years. There has been better performance on services than on goods, but she is absolutely right to recognise the fall in goods trade with the European Union. Overall trade since 2018 has essentially flatlined. That is why the Government are determined to reset our relationship with the European Union more broadly. Within that broader objective, we will look specifically at the border in order to achieve less friction for trade.

[Becky Gittins]

Farmers in Clwyd East continue to raise concerns with me about trading barriers with the EU. They feel that the current arrangements disadvantage them, and that not enough has been done since we left the EU to facilitate trade between British farmers and EU countries. Will the Minister outline what steps his Department is taking to remove those barriers and get a better deal for the farming community of Clwyd East?

[Mr Alexander]

My hon. Friend is already establishing herself as a powerful voice for all constituency interests in Clwyd East. Alas, the concerns that she raises are not limited to that constituency. That is why, as part of the broader resetting of our relationship with the European Union, we are determined to tackle barriers to trade such as those she describes in relation to farmers, including through the negotiation of a UK-EU veterinary agreement that will help to reduce unnecessary border checks.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

I welcome the Minister back to the House and back to the Government Front Bench. On the final sitting day before recess, the Secretary of State slipped out an announcement that he expected trade talks to begin with a number of countries this autumn, and the Minister has just confirmed the intention to open talks with the European Union. When can we expect the Government to publish their negotiating objectives for scrutiny by the House ahead of those talks, as demanded by the Select Committee and committed to by the previous Government?

[Mr Alexander]

I am grateful to the hon. Gentleman for his kind words of welcome both to this House and to the Dispatch Box. I hope that we will be able to exchange in exactly this kind of constructive dialogue in the months and years ahead. Clearly, we inherited a number of open negotiating mandates from the previous Government—not least in relation to the Gulf Co-operation Council and to India—and we are carefully reviewing those mandates, but we have already been clear that, as well as resetting the relationship with the European Union, we are keen to pursue essentially a twin-track strategy, whereby we take forward the work in relation to those free trade agreements.

[Yuan Yang (Earley and Woodley) (Lab)]

7. What steps he is taking to attract inward investment.

--- Later in debate ---

[Helen Morgan (North Shropshire) (LD)]

T7. Rural businesses in the agricultural, horticultural and equine sectors in North Shropshire are struggling to trade with Europe. Will the Secretary of State update us on progress on making a sanitary and phytosanitary agreement and a veterinary agreement with the EU, so that they can trade without all the red tape that is bogging them down?

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

I assure the hon. Lady that the SPS agreement—the veterinary agreement, as it is called—is one of the priorities we are pursuing. That matter is being led by the Cabinet Office, as is the reset with the European Union. I assure her that dialogue is under way between the Department for Business and Trade, the Cabinet Office and the Department for Environment, Food and Rural Affairs. It is a priority. It will take time to reset, but I assure her that we are fully aware of the urgency.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

T5. Are there any plans to crack down on the dodgy vape shops that are damaging the appearance of our high streets? Is consideration being given to improving trading standards to protect our young people and children who are exploited by these premises?

--- Later in debate ---

[Joe Powell (Kensington and Bayswater) (Lab)]

T6. Businesses—especially creative industries—in Kensington and Bayswater tell me that they are fed up with the adversarial relationship we have had with the EU and the pointless red tape and trade barriers that have come with it. Will the Minister outline what steps the Government are taking to address that challenge?

[Mr Douglas Alexander]

The reset, of which we have spoken today, is fundamentally about turning the page and reinvigorating our alliance with our friends, neighbours and partners in the European Union. As well as securing a broad-based security pact and tackling barriers to trade, we aim to build stronger and wider co-operation in a whole range of areas including foreign and defence policy, irregular migration, law enforcement and judicial co-operation, while promoting climate, energy and economic security.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I ask this question on the basis that I am sanctioned by the Chinese Government for having raised the evidence of genocide and slave labour in Xinjiang. We know that the vast majority of polysilicon is now produced in Xinjiang using slave labour. Will the Secretary of State give the undertaking that, as required under section 54(11) of the Modern Slavery Act 2015, there will be no use of any solar arrays that have polysilicon in them made under slave labour in Xinjiang?

UK Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Entry into Force

Douglas Alexander Excerpts

Monday 2nd September 2024 Written Statements

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

The comprehensive and progressive agreement for trans-Pacific partnership is set to enter into force for the UK by 15 December 2024. This follows Peru’s ratification of the UK’s accession protocol to the agreement.

The accession protocol sets out that the agreement will enter into force for the UK 60 days after all parties and the UK have each notified the CPTPP depositary. Notification would follow the completion of relevant domestic procedures. However, after 15 months have passed since signature (which falls in mid-October 2024), the mechanism changes and the protocol can enter into force 60 days after a minimum of six parties and the UK have each notified. If at least six parties and the UK have already notified within 15 months of signature, entry into force would take place 60 days after the October date. Given that Peru is the sixth party to notify its ratification, we currently expect the UK’s accession to CPTPP to enter into force by 15 December 2024.

Before Peru, five other CPTPP parties had already ratified the terms of the UK’s accession, including Japan, Singapore, Chile, New Zealand and Vietnam. This means that the agreement will come into force between the UK and those parties by the end of the year, and with other parties depending on when they ratify. The UK continues to work closely with remaining parties, who are completing their own processes as quickly as possible.

This Department is helping British businesses ready themselves to take full advantage of the opportunities CPTPP presents. As the first country to accede to this agreement, the UK will be perfectly positioned to shape its future development, from influencing the future development of the CPTPP rulebook to championing the group’s expansion to new economies.

[HCWS56]

UK-Ukraine Digital Trade Agreement: Entry into Force

Douglas Alexander Excerpts

Monday 2nd September 2024 Written Statements

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

I am pleased to announce that the UK-Ukraine digital trade agreement entered into force on 1 September, following the completion of the necessary domestic procedures on both sides. This historic trade agreement will help Ukraine rebuild its economy and support livelihoods following Russia’s illegal invasion.

This is the deepest digital trade agreement that the UK has negotiated. Digital trade is rapidly becoming the dominant form of trade. Seizing the opportunities in this area is fundamental to our prosperity. UK and Ukrainian businesses of all shapes and sizes, and across all sectors of the economy (whether trading in goods or services), will benefit from the agreement.

Ukraine’s recovery from Putin’s illegal and barbaric war will be a symbol of the power of freedom and democracy over autocracy. Our DTA with Ukraine creates a digital UK-Ukraine free trade agreement by modernising our bilateral trade in the digital era and deepening our economic ties with Ukraine.

Greater digitalisation of the economy is a key priority for President Zelensky’s Government. This agreement will boost productivity, jobs and growth, and allow us to help Ukraine deliver on their digital ambitions by:

Ensuring open digital markets, including through commitments such as a ban on imposing customs duties on electronic transmissions.

Supporting cross-border data flows, including financial data, and prohibiting the unfair imposed localisation of data as well as committing to high standards of personal data protection.

Championing digital trading systems to cut red tape and make trade cheaper, faster, and more secure for Ukraine and UK businesses.

Upholding consumer benefits and business safeguards in trade, including cyber-security and online consumer protection.

This agreement further cements the UK’s commitment to stand shoulder-to-shoulder with Ukrainian allies in response to the ongoing conflict and play our part in securing Ukraine’s future as a prosperous, stable and democratic partner in Europe. I hope the House will join me in celebrating this important milestone for UK and Ukrainian businesses.

[HCWS59]