Oral Answers to Questions

Elizabeth Truss Excerpts

Thursday 10th June 2021 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

What progress she has made on negotiating free trade agreements with (a) the US, (b) Canada and (c) New Zealand.

[The Secretary of State for International Trade (Elizabeth Truss)]

We are making significant progress with our free trade agreement negotiations. We have just launched a consultation on the new, improved trade agreement with Canada, we are in the final stages of our FTA with New Zealand, and we are in the midst of resolving the Airbus-Boeing dispute with the US.

[Mr Hollobone]

Does my right hon. Friend think it is right that the EU should have greater access to the UK market than our friends in New Zealand?

[Elizabeth Truss]

Next week we have the New Zealand Trade Minister, Damien O’Connor, coming to the UK, and we are working on a gold-standard agreement that will give us more access to Pacific markets at the same time as further deepening our economic relationship with a long-standing and trusted partner.

[Mr Speaker]

Let us go to the Chair of the International Development Committee.

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

Happy birthday from Na h-Eileanan an Iar, Mr Speaker.

The point of trade deals is economic growth, but as the Secretary of State well knows, the trade deals with the US, Canada and New Zealand will make up only about 4% of the Brexit damage. However, signing a Swiss-style sanitary and phytosanitary agreement could achieve greater economic growth, would not threaten farming as the Australian trade deal does, would sort out the Northern Ireland protocol sausage situation and would prevent the Prime Minister from getting spoken to like a naughty schoolboy by the President of the United States. Given those four advantages, has she considered lifting her pen and signing a Swiss-style SPS agreement to make things a whole lot better on a number of fronts?

[Elizabeth Truss]

My colleague Lord Frost is clear that we need to see pragmatism from the EU to resolve this issue. The hon. Gentleman does not seem to acknowledge that the parts of the world where we are striking deals, whether Asia-Pacific with the comprehensive and progressive agreement for trans-Pacific partnership or countries such as India and those in the Gulf, are the fast-growing parts of the world. He is living in a static past; we are living in a dynamic future.

[Caroline Ansell (Eastbourne) (Con)]

What discussions she has had with Cabinet colleagues on supporting the recovery of the UK’s English language teaching sector.

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[Tonia Antoniazzi (Gower) (Lab)]

What recent progress she has made on negotiating new free trade agreements.

[The Secretary of State for International Trade (Elizabeth Truss)]

We have signed trade deals covering 67 countries and the European Union, we are making good progress with like-minded friends and allies such as New Zealand and Australia, and we will shortly launch negotiations to join the trans-Pacific partnership, worth £9 trillion of GDP.

[Tonia Antoniazzi [V]]

Penblwydd hapus, Mr Speaker. On 6 November, the Secretary of State told the National Farmers Union of Wales:

“We have no intention of ever striking a deal that doesn’t benefit farmers, but we have provided checks and balances in the form of the Trade and Agriculture Commission”.

May I ask her if the commission will have the power to tell Parliament whether her Australia deal benefits Welsh farmers, or is she breaking the promise that she made only seven months ago?

[Elizabeth Truss]

I assure the hon. Lady that the Trade and Agriculture Commission will be up and running to fully scrutinise the Australia trade deal. As set out in the Agriculture Act 2020, the TAC will look at whether FTAs

“are consistent with the maintenance of UK levels of statutory protection”

for

“animal or plant life or health…animal welfare, and…the environment.”

That is what Parliament supported in the Agriculture Act and the Trade Act 2021.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

On 6 October, the Secretary of State said:

“A lot of farmers would consider it unfair if practices that are banned in the UK because of animal welfare reasons are allowed elsewhere and those products are allowed to come in and undercut the standards that our farmers are asked to follow. I agree with that. I think that’s an important principle.”

That is what she said, so may I simply ask the Secretary of State whether she still stands by that principle in the context of her proposed deal with Australia?

[Elizabeth Truss]

I have always been clear that we will not allow our farmers, with their high animal welfare standards, to be undermined by unfair competition from elsewhere. The right hon. Lady will be well aware that Australian beef and lamb is already able to come into the United Kingdom under our current import rules.

[Emily Thornberry]

I thank the Secretary of State for that answer, but if I may, I will give her a specific example. The practice of mulesing is illegal in Britain but is in common use in Australia, not just in the wool industry, but in meat. Lambs at six weeks old are held down without pain relief and have the skin from their buttocks gouged out to prevent the scar tissue that grows back bearing wool. My simple question to her is this: under her proposed trade deal with Australia, will tariffs be reduced on meat produced on sheep farms that use the practice of mulesing?

[Elizabeth Truss]

We are still in negotiations about the final stage of the deal, but I can assure the right hon. Lady that British farmers, with their high animal welfare standards, will not be undermined. I am sure she is aware of World Trade Organisation rules that prevent discrimination on the basis of production methods, and what she seems to be advocating is leaving the World Trade Organisation. By the way, she might be interested to know that foie gras is already banned in Australia.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

What steps she is taking to tackle the use of (a) trade-distorting subsidies and (b) other unfair trading practices.

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[Stephen Morgan (Portsmouth South) (Lab)]

What her Department’s trade priorities are for the upcoming G7 summit.

[The Secretary of State for International Trade (Elizabeth Truss)]

Happy birthday, Mr Speaker; I am sorry that I did not mention it earlier.

[Mr Speaker]

You’ve made up for it now.

[Elizabeth Truss]

The UK has inaugurated the first ever G7 trade track to take forward the issue of free and fair trade. We need to make sure that the WTO is reformed to stop unfair trading practices and modernise the global trading system.

[Anna McMorrin]

Penblwydd hapus, Mr Speaker.

Ahead of the G7, the Prime Minister has said that climate is his top priority, yet the Department for International Trade is still funnelling billions—including £3.5 billion from UK Export Finance—into overseas fossil-fuel projects and dirty projects are still being considered, despite the promise to end them. The Prime Minister himself flies into Cornwall on a private jet to talk climate. How can this Government expect to be taken seriously as a climate leader on the biggest threat facing us when they clearly do not take the issue seriously themselves?

[Elizabeth Truss]

I refute what the hon. Lady just said. We have changed the rules that govern UK Export Finance to make sure that it is focused solely on financing clean-energy projects, and that is alongside other measures that support our zero-carbon objectives. We are also working hard at the World Trade Organisation and through the G7 to make trade greener and to make sure that zero carbon is part of how the global trading system works.

[Stephen Morgan]

Labour has backed an intellectual property waiver on vaccines to help with the pandemic in the poorest countries. The US agrees, as do the majority of world leaders, but the UK remains steadfastly against the plan. With the G7 giving us the opportunity for breakthrough this weekend, will the Secretary of State tell us why she will not support this life-saving initiative?

[Elizabeth Truss]

I am very proud that the UK Government funded research into the Oxford-AstraZeneca vaccine, which is now producing 98% of the 49 million covid vaccines delivered right around the world. We have played a leading role in that. I am interested in practical measures that have real effect, such as voluntary licensing agreements. If there is any evidence that intellectual property waivers could help, I am all ears and interested to hear it, but we cannot have a regime that destroys intellectual property rights and ends up stopping future innovation.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

With all due respect to the Secretary of State, boosting the overall global supply of vaccines is key to get global trade going, secure British jobs and help our allies in the Commonwealth and the developing world. In these exceptional times, why did Britain, as my hon. Friend the Member for Portsmouth South (Stephen Morgan) said, refuse to support at the World Trade Organisation yesterday—presumably on the Secretary of State’s instruction—allies of ours such as America, India and South Africa, and many other countries, and to back a temporary waiver of patents on covid vaccines?

[Elizabeth Truss]

As I have said, the UK is always willing to listen to pragmatic suggestions about how we make the regime work better. For example, we have supported the abolition of export restrictions—many other countries have not—so that we can see goods flow around the world. The fact is that the real changes are being made by voluntary licensing, as we have enabled at the Serum Institute in India. We are part of the third-way work to roll out practical answers. There is no IP waiver proposal on the table that would actually deliver more vaccines to the poorest people in the world, which is what we want to achieve.

[Mr Speaker]

Right, let us try the next challenge.

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[Layla Moran (Oxford West and Abingdon) (LD)]

If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Trade (Elizabeth Truss)]

Last week the UK agreed in principle a new trade deal with Norway, Iceland and Liechtenstein worth £22 billion that brings opportunities for British exporters and services, from farmers to lawyers to musicians. It is the first trade deal ever to include provisions on mobile roaming, and it brings benefits to UK fish processing, supporting 18,000 jobs in Scotland, East Yorkshire and north Lincolnshire.

[Layla Moran [V]]

Last month, Members in all parts of the House were horrified by the appalling outbreak of violence between Israel and Gaza. Can the Secretary of State set out whether British arms exports were used in any way against innocent civilians in that conflict? If she is unable to do so, does she not agree that the inability to know where our arms are being used, and what for, is hugely concerning given the potential breaches of international law?

[Elizabeth Truss]

We welcomed the announcement of a ceasefire in Israel and Gaza last month. We are committed to a durable ceasefire. As the Under-Secretary of State for International Trade, my hon. Friend the Member for Beverley and Holderness (Graham Stuart) mentioned, we have one of the most robust export control regimes in the world and we take these issues very seriously.

[Rob Butler (Aylesbury) (Con)]

I know that my right hon. Friend the Secretary of State is currently working on a possible trade deal with the Gulf, which would be of great benefit to all concerned. For trade to be successful, we need to ensure easy mobility for business people, but currently Emiratis wanting to visit the UK on the visa waiver scheme are permitted only a single entry in a period of six months. Will the Minister work with colleagues in the Home Office to allow multiple entries so that the UK is never at a disadvantage compared with other European countries?

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[Anum Qaisar-Javed (Airdrie and Shotts) (SNP)]

Rouzan, a medic, and Yasin, aged nine—those are only two names of the many children and frontline medics who have been killed during systematic oppression of the Palestinian people by the Israeli Government. Export licences to sell arms to Israel worth £80 million—£80 million—have been granted by Ministers in the Department over the past three years. Lives have been lost, businesses have been attacked, homes are in rubble and families have been torn apart, yet the UK Government are still selling British-made weapons to Israel. Will the Minister please clarify whether it is UK Government policy to sell arms to those complicit in violations of international law?

[Elizabeth Truss]

The UK has one of the most robust arms export control regimes in the world. We rigorously examine every application on a case-by-case basis, and the criteria are clearly laid out in legislation to ensure complete compliance with international law.

[Matt Vickers (Stockton South) (Con) [V]]

  Happy birthday, Mr Speaker. I congratulate my right hon. Friend on the work she is doing to secure a free trade agreement with Australia. Does she agree that an agreement with our friends in Australia will deliver for the whole of the Union, bringing huge benefits to businesses and jobs not only in my patch of Stockton South, but in every corner of our United Kingdom?

[Elizabeth Truss]

I welcome my hon. Friend’s enthusiasm for a deal with Australia. There is also the fact that it will lead to entry to the CPTPP—a vast Pacific market of huge benefit to the manufacturing industry in the north-east of England and beyond. I thank him very much for his support.

[Paula Barker (Liverpool, Wavertree) (Lab) [V]]

The Secretary of State will be aware that, post Brexit, there have been substantial changes to checks being undertaken on products of animal origin. However, an abundance of red tape, including the need for certified veterinarians to sign off dairy products, rather than a dairy inspector, as required by most non-EU countries, is creating an additional burden and causing extensive delays to the processing of crucial consumer products. Will Ministers impress on their Cabinet colleagues the need to resolve these delays and press for a speedy resolution to facilitate efficient trade across borders?

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[Jeremy Wright (Kenilworth and Southam) (Con)]

I feel somewhat inadequate that I can only say this in English, but many happy returns, Mr Speaker.

Will my right hon. Friend confirm that, as and when a trade deal with the United States is agreed, the Government will not compromise on the principle that underpins the online safety Bill—that digital platforms, including American ones, must comply with the duty of care to keep their users as safe as they reasonably can—and that that will hold true whether or not the Bill has completed its legislative passage and is enforced by that point?

[Elizabeth Truss]

The UK is committed to making our regime the safest place in the world to be online. In trade negotiations, we will protect our online safety regime, while also promoting our thriving digital industry. I am pleased that in free trade agreements with Japan and the European economic area, we have agreed free flow of data alongside protecting Britain’s high standards, and that is exactly what we would do in an agreement with the United States.

[Wendy Chamberlain (North East Fife) (LD)]

Scotch whisky is vital in North East Fife, not just because we enjoy a wee dram, particularly on birthdays—many happy returns, Mr Speaker—but because it forms a key part of the local economy. With four independent distilleries in my constituency, the success of these businesses matters both for those in directly linked jobs and for those working in tourism and hospitality. Can the Secretary of State confirm that the Prime Minister will use his bilateral meeting with President Biden this week to agree and publish a clear road map for the permanent settlement of the Boeing-Airbus dispute, which would remove the risk of tariffs being reimposed on Scotch whisky and other sectors?

[Elizabeth Truss]

It was very positive news when the tariffs were lifted earlier this year. We are now working very closely with Katherine Tai, the US TR, with whom I have regular conversations, on a permanent settlement to this arrangement, and we are making good progress.

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[Jim Shannon]

The difference is that you and I don’t count the years, Mr Speaker. Instead, we make the years count, and that is important.

It is really important that we have these trade deals and I support them, but I wish to express concern about the Australian trade deal. I declare an interest as a member of the Ulster Farmers’ Union. The Ulster Farmers’ Union and my neighbours, who are members of it, have expressed concern about the quality of Australian beef and the fact that it might impact adversely on the Northern Ireland beef sector and industry. We export most of our beef. Can the Secretary of State assure me that the deal will not impact on the Northern Ireland beef sector?

[Elizabeth Truss]

I thank the hon. Gentleman for his question. I have met the Foyle Food Group, for example, who were the first beef exporters to export to the United States when we got the ban removed. I know that there are huge opportunities around the world for high-quality Northern Ireland beef. Part of what we are doing with the Australian trade deal is opening up wider access to the Asia-Pacific markets, which have higher prices than here in the UK and in Europe and will bring more opportunity. I am very happy to have further conversations with the hon. Gentleman.

[Mr Speaker]

I now suspend the House for three minutes to enable the necessary arrangements to be made for the next business.