Free Trade Agreement: New Zealand

Drew Hendry Excerpts

Thursday 21st October 2021 Commons Chamber

[Anne-Marie Trevelyan]

I thank my hon. Friend for his encouragement of the work that we are doing. In order to support and assist small and medium-sized enterprises, we want to champion their great products and services more widely than in the UK. Only a small proportion of businesses that could export, do so, and we are keen to ramp that up and give them support.

The export support service that was launched on 1 October supports businesses that are thinking about or are already exporting to the EU. We look to grow that as the service embeds. We also have the Open Doors campaign, which is an opportunity to help champion some of the fantastic UK goods and services that exist. We will continue to grow that too.

I charge all Members to come and talk to us about businesses in their constituencies and issues that they want us to champion as we go around the world and have the opportunity. In Commonwealth countries, there is much potential for mutual bilateral trade, so Members should help us to make sure that we are opening those doors for them.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I have looked hard to try to find something to welcome, so let me start with a positive: we welcome the promotion of trade in environmental goods and services, although naturally the detail will need to be reviewed.

The UK Government’s assessment shows that an FTA with New Zealand would bring zero benefit and, indeed, could lead to a contraction in GDP. The Under-Secretary of State for International Trade, the hon. Member for Finchley and Golders Green (Mike Freer) talked earlier about timescales and giving it time, so can the Secretary of State tell us how long it will take for this deal to make up even 0.5% of the 14% drop in Scottish food and drink exports to the EU ?

Ministers have clearly shown that they need help in understanding Scotland’s trade, so will the Secretary of State ensure that the Scottish Government are involved in the detail of the agreement? Bilateral trade has important impacts and implications for services, so given the sector’s importance to Scotland, it is vital that the Scottish Government are also involved in those details.

The deal, as it stands, provides protections for meat imports only by phasing reductions to zero, which is opposed by the National Farmers Union. Will the Secretary of State look to build further protections into the agreement, such as tonnage quota systems and percentage controls? According to the Government’s figures, the deal will cut employment in our farming communities, but for what—possibly about £112 million? That is about half the cost of the Prime Minister’s new yacht. Is that really a good deal?

[Anne-Marie Trevelyan]

Some of our most fantastic brands and products come out of Scottish businesses and all the trade deals that we are putting together and negotiating have some of those at the top of our call list. We want to make sure that that continues by opening up more markets, which will provide opportunities for fantastic Scottish whisky, amazing Scottish beef and many other products, many of which are green products that are helping to solve some of the climate challenges that we all face. We want to make sure that those businesses can export not only to our EU partners but more widely, and we want to see that grow.

Built into the New Zealand agreement in principle are a clear set of quotas that grow over a number of years to ensure, on the hon. Gentleman’s point, that we can see those changes in imports work well with our own commerce. As I make new trade deals, I want to ensure that our farmers are finding new markets for their products. We are seeing, as I mentioned in my statement, a growth in markets across Asia, where the call for high-quality produce is growing by the year, and we want to make sure that our farmers and our businesses are part of that success.