Oral Answers to Questions

Elizabeth Truss Excerpts

Thursday 8th October 2020 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

What steps she is taking to maintain the UK’s (a) food and (b) animal welfare standards in future free trade agreements.

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

The deal with Japan will go further and faster than we had under the EU, including by increasing the number of geographical indications from seven in the EU-Japan deal to up to 70 in our new agreement, from Cornish clotted cream to Scotch beef. Furthermore, Japan has guaranteed market access for UK malt exports under an existing quota, which is more generous and easier to access than the EU quota.

[Dehenna Davison]

My right hon. Friend recently visited Grange Hill farm just outside Bishop Auckland, and John, Jane and Becky—the farmers there—are rightly very proud of the high-quality beef products that they produce. Will my right hon. Friend tell the House how this and others deals she is seeking, such as the deal with the USA, will benefit British beef farmers right across our United Kingdom?

[Elizabeth Truss]

I hugely enjoyed my visit to Grange Hill farm with my hon. Friend. Our deal means that British beef going into Japan will have lower tariffs. We also announced last week that the first beef for 24 years was shipped from Britain to the United States. In the United States trade deal, we will seek to remove the 26% tariff on British beef so that we can get even more of that great product into that market.

[Cat Smith]

I have been contacted by many constituents who are concerned about the animal welfare standards in a US-UK trade deal. They ask me why the state of California can ban imports of products that do not meet its animal welfare standards but the UK Government are not willing to do the same.

[Elizabeth Truss]

We are absolutely clear that we are going to stand up for our high standards in any deal we strike, including with the United States, and make sure that the high standards our farmers operate to will not be undermined.

[Rob Roberts]

May I start by praising my right hon. Friend and her Department for the sterling work that she is doing in making us a global trading nation once again? As well as the wonderful beef exports of the north-east, it will come as no surprise to her that Welsh lamb is a major part of the Delyn economy. It would be remiss of me not to stand up for the agricultural sector in my constituency, so what message can she give me to take back to my local farmers to tell them that they will not only do well in the new arrangements, but thrive, prosper and grow?

[Elizabeth Truss]

Welsh lamb is some of the best in the world, and in the new Japan trade deal, Welsh lamb will be recognised as a GI for the first time. We got our first Welsh and British lamb into Japan for over 20 years last year, opening up a market worth £52 million. My next target is to get the ban on lamb removed in the United States, which would be a huge market. The US is the second largest lamb importer in the world.

[Andrew Gwynne [V]]

I was interested to read that the members of the Trade and Agriculture Commission were calling for parliamentary scrutiny on all future trade deals. The head of the Government’s Food Commission has said the same, so can the Secretary of State show that she is listening to her advisers by guaranteeing this House of Commons a debate and a vote in Government time on any trade deal with the USA?

[Elizabeth Truss]

I can confirm that we will have a world-leading scrutiny process, comparable with Canada, Australia, New Zealand and Japan. That will mean the International Trade Committee scrutinising a signed version of the deal and producing a report to Parliament, a debate taking place and then, through the CRaG—the Constitutional Reform and Governance Act 2010—process, Parliament can block any trade deal if it is not happy with it.

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

We have spent countless hours in this House and in the other place debating the impact of imports on food standards—a debate that has captured the attention of millions of people across the country—but I would like to boil it down to asking the Secretary of State one simple question today. If it is her argument that we do not need Labour’s amendments because bans on the relevant imports are already enshrined in law, can she please tell us which law prevents the importing of pork that has been produced on American farms that continue to use sow stalls?

[Elizabeth Truss]

The right hon. Lady is talking about an animal welfare issue and, as I made very clear earlier, we will not allow the high animal welfare standards of our pig producers to be undermined.

[Emily Thornberry]

I listened very carefully to that response, but I do not really think that it was an answer further than rhetoric. The point is that there is no import ban against pork produced on farms using sow stalls because, as the Secretary of State says, it is an issue of animal welfare, not of food safety. That means that, if the Government drop tariffs on US pork, British pork farmers will be undercut by cheap imports from American agricultural companies using practices that have been banned in our country for the past 21 years. Will she please listen to reason and write into law the protection of all UK farming standards against imports that do not meet them?

[Elizabeth Truss]

As I have said, of course in any trade deal that we strike we will take into account our high standards, to ensure that our farmers are not undermined, but if the right hon. Lady is suggesting a blanket ban on any foodstuffs that do not comply exactly with British farm regulations, she is talking about preventing developing countries from sending their foodstuffs to the United Kingdom. Is she saying—[Interruption.] She will understand that under most favoured nation rules we have to apply the same standards to every country that we deal with, so is she saying that she wants to ban Kenyans from exporting their products to us if they do not follow exactly the same farm standards as here in Britain? I want to ensure that our farmers are able to continue with their high standards, but I do not want to stop developing countries exporting their goods to us.

[Mr Speaker]

Let us calm it down a little with the Chair of the International Trade Committee, Angus Brendan MacNeil. There is no more calming influence than Brendan.

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

Tapadh leibh, Mr Speaker, and a nice calm morning in the Hebrides it is too.

In 2014, the then Prime Minister, David Cameron, promised Scotland that the choice was between independence and all options of devolution, and all indeed were possible—as well, of course, as guaranteed EU membership. Leaving that aside, the United Kingdom Internal Market Bill is expected to do the opposite of that on devolution. Given that the USA has differences across its states, can the Secretary of State guarantee that no attempt will be made to grab powers from the devolved nations to present the entire UK on an easily consumable platter for USA negotiators when it comes to a UK-USA trade deal?

[Elizabeth Truss]

I can absolutely say that we are not grabbing powers; we are using the powers that were previously in the hands of the European Union to create a strong internal market across the United Kingdom. That it is vital, because Scottish farmers need to be able to sell their lamb and beef into England, Wales and Northern Ireland without impediment.

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)]

What progress the Government have made on trade talks with the US.

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

We are making good progress on a deal with the United States. We have just finished round 4 of the negotiations and we are discussing detailed tariffs and texts. We will carry on working right up until 30 October, just before the presidential election.

[Craig Tracey]

I thank the Secretary of State for that answer, and I also congratulate her on the excellent work her Department is doing to help to secure our independent trading status once we have fully left the EU. Does she agree that it is really important that, whatever the outcome of the US presidential election, we continue to work with the parties on both sides of the aisle to ensure we get the best possible deal for the UK?

[Elizabeth Truss]

My hon. Friend is absolutely right—[Interruption.] The Opposition are laughing at our largest single country trading partner, because they frankly do not care about the jobs generated or about the opportunities from expanding our relationship with the US. We are in discussions with senior Republicans and senior Democrats to ensure that there is full support for a US-UK trade deal right across the United States political spectrum.

[Neale Hanvey]

The Speaker of the House of Representatives, Nancy Pelosi, has warned that there will be absolutely no chance of a trade deal should the UK Government override the Brexit withdrawal agreement. Does the Secretary of State agree that US trade talks will be dead in the water if the UK Internal Market Bill passes into law, because such a deal would never pass Congress, even with the support of the probably outgoing President Trump?

[Elizabeth Truss]

We have been absolutely clear with all our trading partners and, indeed, with the EU that we are committed to the Good Friday agreement. We are committed to having no hard border on the island of Ireland, and on that basis we are progressing talks with the United States.

[Bill Esterson (Sefton Central) (Lab) [V]]

Hormone-injected beef should never have been part of the trade talks with the United States. Can the Trade Secretary confirm that she told her US counterparts that the UK would drop the digital services tax if the US dropped its insistence on market access for its hormone-injected beef? If she has not made such an offer, can she tell us why The Mail on Sunday says she has? After all, it would not invent such a story, would it?

[Elizabeth Truss]

I would caution the hon. Gentleman that not absolutely everything published in The Mail on Sunday is the gospel truth. I hope that, over time, he learns that. Let us be clear that the digital services tax is a matter for the Chancellor of the Exchequer in this country, not a matter for the trade talks, and that food safety regulations are a matter for the Food Standards Agency in this country, and not part of the trade talks.

[Peter Gibson (Darlington) (Con)]

As my right hon. Friend may be aware, Willis Asset Management, a large US aircraft manufacturing and maintenance firm, is already based at Teesside international airport. What assessment has she made of the opportunity that a free trade corridor between a free port on the River Tees and our local airport would provide for US-UK trade and regional growth?

[Elizabeth Truss]

I know that my hon. Friend is a staunch advocate of free ports, especially one in Teesside, and I know he will have been delighted by the announcement yesterday from the Chancellor that there will be 10 new free ports across the United Kingdom by the end of 2021, bringing more trade, more opportunities and more growth to areas right across the nation.

[Mr Speaker]

We come now to Richard Graham’s question, but he is not here, so I call the Minister on this group of questions.

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[Jacob Young (Redcar) (Con)]

What progress she has made in securing a free trade agreement with Australia.

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

Australia is a key and proud ally of the United Kingdom, a country with shared beliefs in democracy and free trade. We are working closely at pace with our Australian friends to secure a deal that will benefit both countries, and we will reach a gold standard agreement to lead the world in free trade.

[Jacob Young]

My right hon. Friend knows that Teesside has a long history of exporting to Australia, including a small project known as the Sydney harbour bridge. Can she assure me that, as we leave the EU, Redcar and Cleveland, particularly the steel and chemical industry, will be at the forefront of her mind in future trade talks?

[Elizabeth Truss]

Redcar and Cleveland are a key priority as we negotiate the Australia deal. There are 13,000 small and medium-sized enterprises in the United Kingdom that already export to Australia, and I see lots of opportunities for them to benefit from our close trading relationship, including in the areas of steel and chemicals, food and drink and digital and data.

[Andy Carter (Warrington South) (Con)]

What recent assessment she has made of the value of technology sector exports to the UK.

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[Chris Green (Bolton West) (Con)]

If she will make a statement on her departmental responsibilities.

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

Over the last month, we have made significant progress to establish the United Kingdom as an independent, free-trading nation. We have agreed in principle a deal with Japan that goes further and faster than the EU deal in areas such as digital and data, food and drink and financial services. We have set out our pathway to join the Trans-Pacific Partnership, and yesterday we joined the WTO Government procurement agreement, which gives British businesses access to a £1.3 trillion global market.

[Chris Green]

Just as Israel has signed a peace treaty with Bahrain and the United Arab Emirates, it is innovating to create an instant covid-19 test that is currently being trialled at European airports. What steps is my right hon. Friend taking to work with innovative Israeli companies in that area?

[Elizabeth Truss]

I congratulate Lord Austin on becoming the new trade envoy to Israel. I am delighted to see the reaction on the Labour Benches—they are obviously very pleased with that appointment. We have already signed a continuity FTA with Israel, and we want to go further in a new free trade agreement in areas such as tech, digital and data. We are two tech superpowers, and there is huge opportunity for British businesses and Israeli businesses to work more closely together.

[Paul Blomfield (Sheffield Central) (Lab)]

I was listening to the Secretary of State on the “Today” programme yesterday morning, when she twice repeated the Government’s mantra of wanting a trade deal with the EU just like Canada’s. But the Government will not agree to non-regression clauses on environmental protection or workers’ rights, both of which are in the comprehensive economic and trade agreement—the trade deal between Canada and the EU. The Government also will not commit on state aid beyond WTO rules, while CETA contains stronger agreements on subsidies. Could the Secretary of State share with the House whether the Government are planning to change course and accept those provisions in their deal with the EU, or will she just admit that they do not really want a Canada-style deal at all?

[Elizabeth Truss]

The reality is that what the EU is demanding goes far beyond Canada in terms of an ex-ante regime on state aid, as well as alignment with rules and regulations. We will not accept that. We do want a Canada-style deal. The reality is that the Labour party would not even accept a Canada-style deal with Canada.

[Marco Longhi (Dudley North) (Con)]

It is an undisputed fact that capitalism and free markets are the surest route out of poverty. Can my right hon. Friend update the House on how the Department is using trade to boost development in Africa?

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[Sir Mark Hendrick (Preston) (Lab/Co-op) [V]]

  May I ask the Secretary of State how she can agree the terms of a trade deal with the United States Government when neither they nor we currently know the extent to which the UK’s regulatory framework will be permitted to diverge from the European Union’s?

[Elizabeth Truss]

We are absolutely committed that we are going to have our own independent regulatory regime, and we are no longer going to be permanently aligned with the EU. We have made that very clear: that was the point of Brexit.

[Matt Vickers (Stockton South) (Con)]

Stockton is a town of firsts—be it the first passenger railway or the invention of the friction match. How will our future trade agreements help the latest generation of innovators export across the globe?

[Carol Monaghan (Glasgow North West) (SNP)]

Macallan single malt whisky bottled at Edrington in my constituency is just one of many iconic Scottish products suffering under the 25% US trade tariffs. A year down the line, can the Secretary of State explain why single malt whisky is not at the top of our US negotiating list?

[Elizabeth Truss]

I am absolutely determined to get these tariffs removed. The reality is that the European Union, which the hon. Lady and her colleagues want to rejoin, has failed to sort out this issue with Airbus for 15 years. We now have an opportunity—we have an independent tariff policy starting next year—and I am determined to get those tariffs removed.

[Andy Carter (Warrington South) (Con)]

Businesses in Warrington South tell me they want to do more business around the world. Can my hon. Friend tell me and the House how they can do that with the benefit of our new free trade agreements?

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[Scott Mann (North Cornwall) (Con)]

I would like to congratulate the Secretary of State and her turbo-charged Department on the Government procurement agreement, the Japanese free trade deal and progress in many other areas. It was a pleasure to welcome her to North Cornwall recently to demonstrate our great British food offer. Then it was cheese; today it is shellfish. North Cornwall has a lot of shellfish fishermen who hope to take advantage of our new trading independence. Can the Secretary of State tell me what consideration her Department has made of potential opportunities for crab and seafood exports to Asian countries such as Korea and Taiwan?

[Elizabeth Truss]

There are huge opportunities for great Cornish seafood in Japan, Korea, and all of Asia. Our Japan deal will see tariffs reduced on salmon, and the Cornish sardine properly recognised. We are holding a webinar on 26 October to help seafood exporters, including crab exporters, crack the Japanese market.

[Ms Karen Buck (Westminster North) (Lab)]

I have had more representations on the overlapping issues of food safety and animal welfare in trade agreements than on almost any other issue for a long time. The Conservative party was keen to insert animal welfare provisions into EU trade agreements—indeed, the issue was in its 2015 manifesto. Why was the inclusion of animal welfare provisions in EU trade agreements good enough then, but not good enough to be written into UK legislation now?

[Elizabeth Truss]

In each individual trade agreement we consider key issues such as animal welfare. We are consulting closely with the farming industry, including the pig industry, which sees all the offers we put forward in individual deals. Each deal will be scrutinised by the International Trade Committee, and the implications for animal welfare will be independently verified. Parliament will have an opportunity to debate those issues. We take this matter seriously, and as the hon. Lady said, those issues come to light in each individual trade deal.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

  Despite the best efforts of Scottish National party Members, Scottish businesses want to trade around the world. What efforts are the Government making to ensure that Scottish businesses are able to trade around the world in the way they wish?

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

On Monday, farmers from across the whole United Kingdom will be demonstrating in Parliament Square to make the point that, to them, future food standards and animal welfare provisions are essential. Will the Secretary of State join me in meeting them to hear from them at first hand the importance of this?

[Elizabeth Truss]

I have met farmers from right across the United Kingdom, and indeed the Trade and Agriculture Commission that we have set up to advise us on these issues is conducting a series of regional meetings with MPs and farmers to get their views, to make sure that our policy on every free trade deal works for farmers right across the country.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The Welsh Government have not been allowed to negotiate with the EU, so if Welsh farmers, some of whom voted in favour of leaving the EU, find that they face tariffs and border controls on lamb, will the UK Government give the Welsh Government compensation to give to those Welsh farmers and other sectors that have lost out through a badly negotiated deal?

[Elizabeth Truss]

Both the Farmers’ Union of Wales and the National Farmers Union Wales are represented on the Trade and Agriculture Commission to ensure that there is a full voice for Welsh farmers on future trade agreements. Under the recent Japan deal, Welsh lamb is now going to be recognised geographical indicator, and we are fighting to get lamb into the US market. There are lots of opportunities out there for Welsh lamb farmers, which we are pursuing vigorously.

[Mr Speaker]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.