Oral Answers to Questions

Elizabeth Truss Excerpts

Thursday 25th February 2021 Commons Chamber

[Mark Garnier (Wyre Forest) (Con)]

What progress she has made on securing trade deals with ASEAN countries.

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

Last year, we secured trade deals with Vietnam and Singapore. This month, I submitted our application to CPTPP—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—a huge free trade area covering £9 trillion of GDP, which contains four ASEAN countries.

[Mark Garnier [V]]

First, I congratulate my right hon. Friend on everything she and her Department have achieved in terms of signing trade deals across the world. It is certainly important that the UK continues to engage in deepening its trading relationships with its close allies and trading partners, such as Australia, New Zealand and the United States, but there are also many other significant trading partners and friends across the globe, such as the Kingdom of Thailand, where I serve as the Prime Minister’s trade envoy. Could my right hon. Friend see her way to prioritising Thailand in the next round of countries to engage in formal free trade agreement negotiations, so that we can formalise our trading relationship with this long-standing and valued trading partner?

[Elizabeth Truss]

My hon. Friend is right to highlight the importance of Thailand. We have a bilateral relationship worth £5 billion a year and he is doing a fantastic job as our trade envoy to that great country. We are currently conducting a joint trade review to identify priorities in agriculture, pharmaceuticals and food and drink, and this is strong groundwork for a future FTA negotiation.

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

I am delighted to see that the Secretary of State is answering questions about the 2.9% of our global trade that we have with ASEAN countries, having refused to answer questions about the 47% of our trade with Europe. However, as that is clearly her priority, can she tell us this: why has she decided not to suspend Cambodia’s trade preferences, given the escalating human rights abuses in that country? How bad would these abuses need to get before the so-called “last resort” was reached?

[Elizabeth Truss]

I would point out to the right hon. Lady that the trade that I am responsible for covers 80% of GDP, and the reason why we have not hitherto had as much trade with that part of the world is because of the high trade barriers that we are seeking to remove through these trade agreements. I do, however, share her concerns about human rights violations in Cambodia, and this Government continue to raise the issue with the Cambodian Government at every opportunity.

[Emily Thornberry]

I listened carefully to the Secretary of State’s answer, which I find very interesting indeed. Is she not aware of the guidance that has been given by her Department to UK companies doing business in Cambodia? It was published by her Department last week and contains this reassuring advice:

“while political disputes could trigger protests, these would be broken up rapidly by the security forces.”

That sounds to me like her Department does not care. How does the Secretary of State think it sounds in Cambodia?

[Elizabeth Truss]

As I have said, we are concerned about the situation in Cambodia, but it is important to recognise that trade sanctions can often have impacts on the poorest people in a country. The best way that we can achieve our objectives is through the work of the Foreign Office and my colleague the Foreign Secretary, in raising this issue at a political level.

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

Mòran taing fawr, Mr Speaker. The UK Government have removed direct access to the EU market, damaging GDP for the UK by about 4.9%, and that is the area that 47% of UK exports go to. The Minister has not replaced that with any new markets at all; all the new deals have been merely rollovers of EU deals. So, forgetting all the flowery adjectives about trade deals, and she did talk about GDP, what do the numbers say about the gains to GDP from ASEAN trade deals? Also, does she have any numbers for CPTPP yet?

[Elizabeth Truss]

The Chairman of the Select Committee understands that a lot of the economies we are talking about are fast-growing. We want to be in a position, in 2030 to 2040, to make sure that the UK has deep relationships with some of the fastest-growing parts of the world, like CPTPP, the United States and places where our exports are currently growing faster than they are for the EU. I would also point out to him that it is Lord Frost and the Cabinet Office who are responsible for negotiating and working with the EU.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

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[Darren Henry (Broxtowe) (Con)]

What recent discussions she has had with Cabinet colleagues on trade priorities for the UK’s G7 presidency.

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

The United Kingdom has a huge opportunity, with the presidency of the G7 this year and the election of Dr Ngozi as World Trade Organisation director general, to drive forward free and fair trade. This is more important than ever as we seek to recover from covid and address the issues with the WTO. We hope to make good progress ahead of the ministerial conference in December.

[Mr Mohindra [V]]

May I once again commend my right hon. Friend for the excellent work she and her team have done to date? Can she advise the House what she will be looking to achieve under the trade track?

[Elizabeth Truss]

Under the trade track, there will be an opportunity for G7 democracies to work together to help to reform free and fair global trade and shape a bold vision for recovery. In particular, we want to make progress on key issues such as challenging unfair industrial subsidies, dealing with carbon leakage and promoting digital trade.

[Alexander Stafford [V]]

A key plank of the UK’s future trade strategy must be dedicated to securing our supply of critical minerals, which are vitally important components in the next generation of green renewables and communications equipment. Does the Secretary of State agree with me that in the run-up to the G7 summit, we must take urgent action, first, to work with allies to form a stable, reliable and independent coalition for the mining and processing of critical minerals and, secondly, to bolster the British critical minerals industry for domestic use and for exports?

[Elizabeth Truss]

My hon. Friend makes a very good point. We need to work with allies to make sure we have resilient supply chains of critical minerals and are not reliant on high-risk vendors. That is a priority for this Government, and that is why we are leading Project Defend. I was delighted to see Cornish Lithium for myself on a visit to Cornwall last autumn. Not only will that help us make sure that we have this critical supply of minerals, but it will boost jobs and growth in a very important part of our country.

[Darren Henry [V]]

I welcome the exceptional work done by my right hon. Friend’s Department to ensure that the UK stands as an ambitious internationalist country, and in that regard I would like to know what steps she is taking to improve access for UK exporters to high-growth global markets.

[Elizabeth Truss]

We have signed deals covering 64 countries, including the Caribbean nations, where my hon. Friend is our trade envoy. Total exports to CARICOM—the Caribbean Community—were worth £1.5 billion in the 12 months to September 2020, and I am sure he is actively looking for new opportunities to use those trade deals to benefit people in the Caribbean and here in the United Kingdom.

[Duncan Baker (North Norfolk) (Con)]

What assessment she has made of the potential merits for UK businesses of the UK joining the comprehensive and progressive agreement for trans-Pacific partnership.

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

Joining the CPTPP is a massive opportunity for UK businesses. It will cut tariffs for vital industries such as cars and whisky, and it will help drive an exports-led, jobs-led recovery from covid.

[Duncan Baker [V]]

As opposed to the flat EU markets, we know that CPTPP markets are emerging and growing, giving huge tariff-free opportunities for those that join, so for my barley barons of North Norfolk, may I ask the Secretary of State what wonderful opportunities for growth access to these markets gives us?

[Elizabeth Truss]

I know my hon. Friend was delighted with our Japan deal, which gave more access for malt in the Japanese market, where we are the second largest exporter of malt. We will be looking for more such opportunities under the CPTPP for malt and whisky, to make sure that the barley barons continue to do well.

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

Will the Secretary of State explain the recent comments from her top adviser on trade and agriculture, Mr Shanker Singham? He said:

“I think it would be fantastic to get the EU into the CPTPP”,

which is interesting, but not as interesting as what he said next. He said that the EU

“would not be able to join at the moment…With their approach on agriculture and standards, it is impossible for them to accede.”

Can the Secretary of State explain what he means?

[Elizabeth Truss]

I do not know what Mr Singham means. He is an adviser to the Government; he is not the Government. The important point is that now we have left the European Union, we have an opportunity to develop more innovative policies in areas such as agriculture. For example, my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has recently launched a consultation on gene editing. We will be able to use new technologies to benefit farmers in Britain and across the world—technologies that historically the EU was averse to.

[Emily Thornberry]

I do not really think that gene editing was the answer to the question. The question was: what does Mr Singham mean? Perhaps I can help. I think he means that joining the CPTPP not only means eliminating tariffs on meat exports from other member states; it also means abandoning the precautionary principle when we decide which meat imports to allow. If the Secretary of State disagrees on that, perhaps she will answer this: under the terms that she is proposing to join the trans-Pacific partnership, will Britain have the right to ban the import of meat produced using growth-promoting antibiotics?

[Elizabeth Truss]

I am sure that the right hon. Lady, being an avid student of the CPTPP, will have read the fact that the same standards on SPS—sanitary and phytosanitary—are in the CPTPP as are in the World Trade Organisation, which the UK has already signed up to. I have been very clear that in every trade deal we sign, we will not lower our excellent standards in the United Kingdom, and we will not expose our farmers to unfair competition.

[Simon Baynes (Clwyd South) (Con)]

What recent assessment she has made of the potential effect of her Department’s trade policies on growth for British businesses.

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[David Linden (Glasgow East) (SNP)]

What steps she is taking to seek a reduction on the US tariffs applied on the export of Scotch whisky from the UK to the US.

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

We have been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. This is the way forward, not escalating the tariff battle.

[John Lamont]

US barriers to trade have been broken down in the past to the benefit of Scottish jobs, and this includes the great work of the UK Government to get Scotch beef back in American supermarkets for the first time in two decades. Does the Secretary of State envisage similar success in removing US tariffs to help cashmere mills in the Scottish borders and Scotch whisky distillers to export to American customers?

[Elizabeth Truss]

My hon. Friend has been a huge champion for Scottish goods such as cashmere and whisky. These tariffs are damaging on both sides of the Atlantic. Today, we are seeing the confirmation hearing of the new US trade representative, and as soon as that is finished I will be on the phone to her seeking an early resolution of these issues.

[David Linden]

Despite the pandemic, we have seen a rise in consumption of spirits in North America; this is taking account of the fact that there is a 25% tariff in place for Scotch whisky. There is a danger that some of the alternatives—for example, Canadian whisky or Irish whiskey—could move into that space, and that is damaging for all of us who support the Scotch whisky industry, so has the Prime Minister raised this with President Biden?

[Elizabeth Truss]

I can assure the hon. Member that the Prime Minister is exercised about this issue, as am I, and we are working flat out to get an agreement to make sure that these tariffs are removed.

[Andrew Lewer (Northampton South) (Con)]

What steps her Department is taking to assist British small and medium-sized enterprise exporters with EU VAT regulations under delivered duty paid terms.

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[Jonathan Gullis (Stoke-on-Trent North) (Con)]

If she will make a statement on her departmental responsibilities.

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

Earlier this month, I submitted the UK’s formal application to the comprehensive and progressive agreement for trans-Pacific partnership. Joining CPTPP will put us at the heart of some of the world’s fastest-growing economies and slash tariffs for key industries such as cars and whisky. Membership of this high-standards agreement comes with no strings attached, with no requirement to cede control over our laws, our borders or our money. Joining will help propel a jobs-led, export-led, investment-led recovery from covid across our United Kingdom.

[Jonathan Gullis [V]]

I thank my right hon. Friend for all her hard work flying the Union flag with pride around the world. There has never been a more important time to champion the exporting potential of British business, so will she enable the Department for International Trade to partner with me so that I can ensure that the Potteries’ world-leading ceramic tableware manufacturers, such as Churchill China and Steelite, based in Stoke-on-Trent North, Kidsgrove and Talke, can benefit from support for exciting exporting opportunities?

[Elizabeth Truss]

We recently launched the parliamentary export programme, through which MPs can partner with DIT, and we will shortly be recruiting a second cohort of MPs; I know that the Exports Minister, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), already has my hon. Friend’s name on the list. I also invite my hon. Friend to join our virtual Japan mega-mission, which is being led by the Exports Minister in the next couple of weeks and will bring Stoke-on-Trent firms in contact with Japanese companies so that they can sell their fantastic goods.

[Mary Kelly Foy (City of Durham) (Lab) [V]]

Can the Secretary of State say when the review of procedures for the resolution of investment disputes between investors and states in the UK-Canada agreement on trade continuity will take place, and how the views of Parliament and the public will be taken into account in the review?

[Elizabeth Truss]

I thank the hon. Lady for her question. I am working very closely with my Canadian colleague, Mary Ng, to make sure that that happens as soon as possible.

[James Sunderland (Bracknell) (Con)]

  As we embark on our recovery from covid-19 in the post-EU era, will my hon. Friend provide the assurance that businesses in Bracknell need, and will he please outline what measures have been considered to improve the attractiveness of British exports?

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[Yasmin Qureshi (Bolton South East) (Lab) [V]]

Does the Minister agree that we cannot remain silent or indifferent to the worst crimes and atrocities, whether against the Rohingyas in Myanmar, the Uyghurs in China or people anywhere else in the world? Will she guarantee that the Government, although not supporting the genocide amendment that is coming to the House soon, will at least stop playing political games and allow a straight vote on the matter?

[Elizabeth Truss]

I agree with the hon. Lady that the atrocities committed by China in Xinjiang are abhorrent. The Government have taken firm action on supply chains and businesses doing business in that part of China, but expanding the role of the UK courts raises serious constitutional issues, and instead the issue needs to be addressed politically.

[Sir Desmond Swayne (New Forest West) (Con)]

Are we using our position at the World Trade Organisation to counter reprehensible trading practices by China and others?