Oral Answers to Questions

Elizabeth Truss Excerpts

Thursday 5th March 2020 Commons Chamber

[Aaron Bell (Newcastle-under-Lyme) (Con)]

1. What recent assessment she has made of the potential economic benefits to manufacturing industries of a free trade agreement with the US.

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

A free trade agreement with the US could deliver a £15 billion increase in bilateral trade, increase manufacturing output and benefit all parts of the UK economy, particularly the midlands, Scotland and the north-east.

[Aaron Bell]

I thank the Secretary of State for that answer, and for the scale of the Government’s ambitions for the trade deal. In Newcastle-under-Lyme we have a number of firms that have US subsidiaries or sister companies, or that themselves have US parent companies. Can she confirm that a comprehensive UK-US trade deal would benefit such firms by cutting red tape and increasing the trading ties between our two countries?

[Elizabeth Truss]

My hon. Friend is absolutely right; every morning more than 1 million people in Britain get up and go to work for American firms, and more than 1 million people in the US go to work for British firms. We want a closer economic relationship so that we can share ideas, products and goods, to the benefit of both nations.

[Bill Esterson (Sefton Central) (Lab)]

The Secretary of State told us on Monday that ceramics factories in the UK could benefit from a US trade deal, but that is not the view of the British Ceramic Confederation, which has warned of the dangers that low-quality ceramics would have on UK industry. Does she not accept that the manufacturing industry is right to be concerned about the threat posed by the agreement she is proposing?

[Elizabeth Truss]

Laura Cohen, of the British Ceramic Confederation, has said:

“A USA trade agreement could help our sector. For example, there are high tariffs on ceramic catering-ware imports…and without this barrier our exports to the USA could grow.”

Of course we will take action through the Trade Remedies Authority to deal with the illegal dumping of ceramic products on the UK market, but it is simply wrong to say that the ceramics industry would not benefit from a US trade deal.

[Bill Esterson]

But Laura Cohen is not talking about the type of trade deal that the Government are proposing, is she? The BCC has warned of the dangers of the Government’s proposed mutual recognition clauses, which is where the flood of low-quality imports would come from. The Secretary of State’s own scoping assessment says nothing about the impact of cheap US imports on UK manufacturing either, so why will she not listen to the industry? Should the Government not rethink their approach to the US agreement and look after our own excellent manufacturing sector, rather than pursuing a policy of “America First”?

[Elizabeth Truss]

I find this pretty ludicrous. The hon. Gentleman will have seen in the scoping assessment that virtually every sector of the UK economy, including manufacturing and agriculture, will benefit from a US trade deal. Steelite International, a fantastic company that I visited recently in Stoke-on-Trent, has also welcomed the potential removal of tariffs on its products—up to 28% on dinnerware—which it says will help it expand its operations.

[Robert Courts (Witney) (Con)]

Will the Secretary of State please comment on some of the parts of her proposals that are likely to benefit manufacturing and high-tech companies in west Oxfordshire and enable them to export their goods to the United States?

[Elizabeth Truss]

One of the points that we laid out in our negotiation objectives is that we want to achieve an advanced digital and data chapter. Currently, 79% of all our services are provided remotely. A digital and data chapter will give us the ability to underwrite those transactions and do more electronically, which will provide huge benefits to those high-tech industries in my hon. Friend’s constituency.

[Joanna Cherry (Edinburgh South West) (SNP)]

All this debate between the Secretary of State and Labour’s Front-Bench spokesperson shows how important it will be to scrutinise the small print of the deal, so will she allow this Parliament a vote on the deal, such as the kind that the US Congress will get, or does she think that America deserves more democratic scrutiny of the deal than the United Kingdom?

[Elizabeth Truss]

We have a parliamentary system in this country, so for these types of decisions the treaties are laid before Parliament through the CRAG—Constitutional Reform and Governance Act 2010—process. I point out to the hon. and learned Lady that we also have an extensive programme of engagement with business. We have 17 expert trade advisory groups, through which we will ask business for their specific feedback to ensure that we are not lowering standards, and to ensure that we have the right standards for our industry. That is the consultation process that we are undertaking.

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[Mr Richard Holden (North West Durham) (Con)]

10. What recent steps she has taken to help improve bilateral trade relations with Japan.

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

Japan is the third largest economy in the world and a key partner of the UK. I visited Japan in September to promote UK trade and we are shortly likely to commence our free trade negotiations with it.

[Tom Randall]

London 2012 offered an opportunity not only for Britain to showcase itself to the world, but for the competing nations to showcase themselves to the host nation. May I ask what steps the Department is taking to promote Great Britain at the forthcoming Olympic and Paralympic games in Tokyo?

[Elizabeth Truss]

I understand that Japan will be using a lot of British-made products in the Olympics, for example, the white water obstacles made by UK company RapidBlocs. During Tokyo 2020, we will be hosting a series of promotional events, and I look forward to Team GB celebrating its success with Scotch whisky and English sparkling wine.

[Mr Holden]

Nissan is very important to the north-east and employs hundreds directly in my constituency and hundreds more via the supply chain. What further benefits will a new free trade agreement with Japan, which is currently being pursued by the Government, bring to manufacturers and suppliers in my constituency?

[Elizabeth Truss]

My hon. Friend is absolutely right. Nissan’s Sunderland plant is the most productive in Europe, and I can see every reason why the Japanese are likely to put even more investment there and make more cars there. There are opportunities through the Japan FTA and the US FTA where Nissan already exports from its UK factory.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Should not the Secretary of State be looking at the way in which we source things in this country—whether from Japan or China. We know that many of the drugs that we need to fight this virus are actually made in India, and it is not allowing us to have a full complement of imports. We also know that firms all over our country are closing down because China is the workshop of the world and it is exporting nothing. What is she going to do in the future to secure those supply chains?

[Elizabeth Truss]

First, we are participating in the efforts to tackle coronavirus through the cross-Government working group. The Prime Minister chaired a Cobra meeting on Monday to make sure that we are dealing with those supply chain issues. Furthermore, I expect the Trade Remedies Authority to play a strong role in making sure that we do not see the dumping of products on the UK market.

[Katherine Fletcher (South Ribble) (Con)]

8. What recent assessment she has made of the potential economic benefits to small and medium-sized enterprises of a trade agreement with the US.

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

Some 30,000 small and medium-sized enterprises already trade with the United States. In the new free trade agreement, we will be asking for a dedicated SME chapter that removes customs red tape, does more stuff online and makes it much easier for our fantastic small businesses to trade with the United States.

[Katherine Fletcher]

Many businesses in South Ribble stand to benefit hugely from a free trade agreement with the USA—not least Leyland Exports, a commercial vehicle and silicone hose specialist. Does the Secretary of State agree that we must push hard to secure a free trade deal that benefits businesses of all sizes in all regions, and supports supply chains?

[Elizabeth Truss]

My hon. Friend is right. I understand that Leyland Exports can face up to 25% tariffs on the export of goods vehicles to the United States, and 5% tariffs on its exports to Australia. In the free trade agreements we are looking for from the United States and Australia, one of our key asks will be to get rid of those tariffs, and to make it much easier for the car industry—by reducing testing and red tape—to ensure that we can get our fantastic exports into those markets.

[Mary Glindon (North Tyneside) (Lab)]

9. What recent discussions she has had with Cabinet colleagues on the preparedness of UK ports of entry to facilitate international trade after the transition period.

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[Gagan Mohindra (South West Hertfordshire) (Con)]

13. What recent steps she has taken to support UK tech start-ups to export globally.

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

We are a world leader in tech. Following our departure from the European Union, we have launched a new GREAT campaign that promotes everything from our agri-tech to our gaming capabilities. The Under-Secretary of State, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), recently led a delegation to Las Vegas where he promoted UK tech at the Consumer Electronics Show.

[Saqib Bhatti]

To meet the challenges of our time, we must ensure that we create an environment where we encourage tech start-ups to set up, thrive and innovate. What are the Secretary of State and Ministers doing to ensure that tech start-ups in the west midlands are able to fulfil their potential?

[Elizabeth Truss]

Birmingham has the largest tech sector outside London. It has firms specialising in FinTech, games, health-tech and cyber-security. We will keep the UK at the top of the investment tree. Last year we saw investment in UK tech growing faster than in any other nation in the world. We need to keep at the forefront, and there are huge opportunities for our tech industry.

[Gagan Mohindra]

Will my right hon. Friend the Secretary of State join me in celebrating the fact that last year investment into the UK’s tech start-ups grew more than anywhere else in the world? Will she outline the steps she is taking to build on this fantastic achievement?

[Elizabeth Truss]

After we have left the European Union, we have a huge opportunity to strike new data and digital agreements with the rest of the world. We are looking for a data and digital chapter in the US FTA. We are looking for an advanced data and digital chapter with Japan. We have the opportunity to create a global powerhouse here in the UK.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

As the Secretary of State said, the UK is a world leader in future technology, yet it is also assessed to be one of the sectors most at risk from Brexit. Therefore, new opportunities for tech sector start-ups are absolutely important. The Department was recently criticised by tech sector magazines for cutting funding for the tradeshow access programme, which is used by entrepreneurs in the tech sector to get to potential clients overseas. So will she set out what funding will be available, and with what long-term guarantees for those SMEs and start-ups, so that they can make the best of opportunities through the TAP?

[Elizabeth Truss]

I disagree with the premise of the hon. Lady’s question. Now that we have left the EU, we have the opportunity to set our own rules and regulations in tech, and really lead the world in areas like artificial intelligence and blockchain. That is exactly what we are seeking to do with these new free trade agreements. We are also seeking, at the World Trade Organisation, to lead in areas like the joint statement on e-commerce, and looking for new SME-friendly chapters in our trade deals to help exactly these types of tech start-ups to sell their goods around the world.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

14. What recent progress she has made with her non-EU counterparts on negotiations for future trade agreements with those countries.

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[Steve Double (St Austell and Newquay) (Con)]

T1. If she will make a statement on her departmental responsibilities.

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

Following our departure from the EU, the UK has established itself as an independent trading nation. On Tuesday, I was the first UK Trade Secretary in almost 50 years to make a speech at the World Trade Organisation representing the UK as an independent trading nation. We will use our position at the WTO to champion free trade, champion reform and make the case for liberalisation in digital and services. Mr Speaker, I can tell you that Britain is back.

[Steve Double]

The British Egg Industry Council recently commissioned a report on the impact that changes to import tariffs would have on UK egg producers. The report particularly highlighted concerns about cutting import tariffs on egg products when they come from countries with much lower welfare standards. How does my right hon. Friend plan to protect the good eggs, such as St Ewe Free Range Eggs in my constituency, which produces the finest free range eggs money can buy, against the bad eggs from countries with lower welfare standards?

[Elizabeth Truss]

The consultation on the UK global tariff, which will set the most favoured nation tariff rate for eggs, among other products, closes tonight, so I suggest that my hon. Friend gets the eggs-cellent company in his constituency to put in a submission to the consultation and make its views known.

[Mr Speaker]

You’ve cracked that one before!

[Barry Gardiner (Brent North) (Lab)]

The Secretary of State will be familiar with the Brexit voucher scheme that has been launched by the Irish Government to support small and medium-sized enterprises trading across borders and affected by Brexit. The Dutch have introduced a similar scheme paying grants of over €2,000 and loans of up to €1.5 million. What assessment has she made of those measures and whether they are compliant with state aid rules, and if they are, why has she not introduced any similar measures to support our own SMEs, which face unknown tariffs, increased checks and inspections, and substantial delays to their trade?

[Elizabeth Truss]

We are working very closely with the Cabinet Office to make sure that businesses have all the information they need to prepare for transition at the end of this year. This is also an opportunity, of course, to get more businesses trading with the rest of the world, and we will be saying more about this soon in our new export strategy.

[Anthony Browne (South Cambridgeshire) (Con)]

T2. My constituency of South Cambridgeshire is not just the life sciences capital of the UK or of Europe, but it claims to be the life sciences capital of the world. It has the global headquarters of AstraZeneca, the Wellcome Sanger Institute, which is leading the world in genome sequencing, and Abcam, a start-up company now worth £3 billion, which is leading the UK in antibody products, and many of these are exporters. What assessment has the Secretary of State made of the commercial opportunities for these firms of a potential UK-US free trade agreement?

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[Virginia Crosbie (Ynys Môn) (Con)]

T4. Can the Secretary of State confirm that the free trade agreement will benefit the whole of the UK, including my constituency of Ynys Môn in north Wales, which will be disproportionately affected by the collapse of Flybe overnight? And does she agree that the port of Holyhead is a prime candidate to be one of the new free ports?

[Elizabeth Truss]

My hon. Friend has been lobbying extremely hard for Holyhead to be considered as a free port, and we are very grateful for all her input to the free port consultation. She is right, of course, that a US free trade deal will benefit every single part of the United Kingdom, including Wales. There are particular opportunities for the export of Welsh lamb into the United States, where it is currently not allowed. I also agree that we need to ensure—I know the Transport Secretary is working hard on this—that we continue to keep routes open and that new companies can operate those flight routes, which are so vital for our connectivity.

[Zarah Sultana (Coventry South) (Lab)]

T3. Last summer, the Government were found to have unlawfully committed arms exports to Saudi Arabia for use in Yemen. In September it emerged that this ban had been repeatedly violated. In response, last month the Secretary of State said processes had been updated. If she genuinely wants to give confidence that this Government will not put the interests of arms dealers ahead of human rights yet again, will she commit to an immediate embargo on all arms exports to Saudi Arabia?

[Elizabeth Truss]

I was very clear in the statement I made to the House that there had been problems with our process. I subsequently issued a written ministerial statement, followed by an internal review conducted by another Government Department.

We have now fixed that problem. The information is now being provided in real time, and that fulfils the requirements of the court order.

[Craig Tracey (North Warwickshire) (Con)]

T5. [R] Israeli exports to the UK grew by 286% over the last decade, and bilateral trade levels are also at a record high, so it was no surprise that one of the first post-Brexit trade agreements we signed was with Israel. What steps will the Secretary of State be taking to further strengthen and enhance our trade relationship with Israel and go beyond the terms of the continuity agreement that is already in place?

[Ruth Jones (Newport West) (Lab)]

T7. Bearing in mind the latest comments coming from the US, what steps will the Minister take to provide legal safeguards and reassure the British public that our food and animal welfare standards will not be at risk in a US-UK trade deal?

[Elizabeth Truss]

The hon. Lady can see that laid out in black and white in our objectives: we simply will not do a deal that undermines our food safety standards, and we will also retain our very high animal welfare standards. That is very clear and, ultimately, if the US is not prepared to agree to that, we will walk away.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

T6. The Secretary of State knows that I am very excited about the prospects for Scotland to grow its exports. Scottish Development International does a good job, but it does not have, as it would concede, the global reach of her Department. So to ensure that Scottish businesses get the maximum support going forward to grow exports, will the Minister commit today to increase the Department’s presence on the ground in Scotland?

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[Hywel Williams (Arfon) (PC)]

T8.   Is the Secretary of State confident that the Government stance in the EU trade negotiations meets the needs of successful horticultural businesses such as Seiont Nurseries in my constituency, whose time-sensitive exports just will not thrive with delays at the ports, regulatory divergence and punitive tariffs?

[Elizabeth Truss]

We are leaving the EU so that we can make our own regulatory decisions, including about how we manage our agriculture and horticulture. Of course we want to get the best possible free trade deal with the EU, but that does not mean continuously harmonising with its regulations.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The top source market of foreign direct investment projects coming into the UK continues to be the United States, by a considerable margin. Does that not underline the importance of Heathrow and of the transatlantic aviation route as an enabler of those deals? Will the Minister confirm that the Government are still committed to growth in that important market?

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[Siobhan Baillie (Stroud) (Con)]

Last weekend, worrying comments were reported in the Mail on Sunday questioning the need for UK farming and agriculture for our economy. This is at a time when farmers’ fields are saturated and they are lambing in really difficult conditions—they did not need that over their cornflakes on Sunday. Will my right hon. Friend give Stroud farmers and farmers across the UK confidence that the Government will stand up for them in all trade negotiations, and will she reconfirm their importance to our economy?

[Elizabeth Truss]

My hon. Friend is right: British farming is vital, for its food production, for its custodianship of the environment and for the enjoyment it provides in all our lives through its fantastic products. She will notice from the US negotiating objectives and scoping statement that agriculture will benefit, because there will be more opportunities to export our fantastic lamb and beef and we can cut tariffs on dairy products. There are lots of opportunities, and I want British farmers to take them up.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Unlike that Government aide, in the north-east we know that we do need farmers—not least because they protect our glorious Northumberland and County Durham countryside. Can the Secretary of State give a commitment to protecting the small-scale farmers and their high-welfare and farming standards in any trade deal?

[Elizabeth Truss]

As the hon. Lady will be aware, we are developing new farming support policies to supersede the common agricultural policy. Those will be much more suited to British farmers, making sure that we are supporting farmers to protect the environment and produce great products. In our trade agreements I have been very clear that there will be no diminution in our standards.

[Robert Courts (Witney) (Con)]

Some of our closest friends and most productive trading relationships have always been in the Commonwealth, and it is time that this was reinvigorated. What are Ministers doing to explore Commonwealth free trade?

[Elizabeth Truss]

I hosted a meeting in London last year with the Commonwealth Trade Ministers. There is a huge amount of enthusiasm to work more closely together. One of our first priority trade deals will be with Australia and New Zealand. We are also creating a Commonwealth caucus at the World Trade Organisation. Commonwealth countries represent 33% of delegates to the WTO. We can be a real force in making the case for free trade and for small countries not to be overwhelmed by big trading blocs.

[Alison Thewliss (Glasgow Central) (SNP)]

What action is the Secretary of State taking to ensure that food standards are upheld in future trade agreements, specifically to protect infant and child health?

[Elizabeth Truss]

We are very clear that in future trade agreements, we will maintain our food standards. We were clear about that in the US objectives and we will be clear about it in subsequent objectives.