Developing Countries Trading Scheme: Consultation
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
This morning, the Department for International Trade will be launching a public consultation on its new Developing Countries Trading Scheme (DCTS). Post-Brexit Britain can now take a more ambitious, generous, and pro-growth approach to trading with developing nations. The proposed scheme aims to grow trade with lower-income nations, supporting jobs and growth across the globe and at home.
This consultation will make sure that the public, business, civil society, associations and other interested stakeholders can have their say on the Government’s approach to preferential market access for developing countries.
We intend this new scheme to be best in class, and have studied programs in Canada, the US, Japan and the EU, before designing a uniquely British offer which backs growth, enterprise and ambition.
This is a major opportunity to grow free and fair trade with developing nations, allowing them to diversify their exports and grow their economies, while British households and businesses benefit from lower prices and more choice. The new UK scheme will mean more opportunity and less bureaucracy for developing countries, for example by simplifying rules of origin requirements for the least developed nations.
The UK currently operates a similar scheme rolled over from the EU, but as an independent trading nation can now take a simpler, more generous, pro-growth approach to trading with developing countries. It would apply to 70 qualifying countries currently and include improvements such as lower tariffs and simpler rules of origin requirements for countries exporting to the UK.
For example, this could mean lowering tariffs on products including rice from Pakistan and trainers from Nigeria. Bangladesh and Vietnam demonstrated that increasing trade through schemes like this one have helped them grow their economy, improve living standards, and drive down poverty.
For instance, Vietnam’s exports to the UK more than tripled between 2009 and 2019 while poverty rates plummeted from more than 20% in 2010 to an estimated 5.9% in 2020. Today, it is a fully-fledged FTA partner. We want more developing countries to follow in their footsteps.
The online consultation opens today on www.gov.uk and will be live for eight weeks. It will be accompanied by an information note that sets out details of the existing UK preference arrangements. The new Developing Countries Trading Scheme will take effect in 2022.
https://www.gov.uk/government/consultations/designing-the-uk-trade-preferences-scheme-for-developing-nations.
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Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 5 months ago)
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Henry Smith (Crawley) (Con)
The Secretary of State for International Trade (Elizabeth Truss) [V]
At the May Trade Ministers’ meeting, we committed to a global trading system with open markets that are not undermined by unfair trade. We agreed to work together to reform the global trading system to be free and fair for all.
Tom Randall
I thank my right hon. Friend for the work that she is doing to improve global trading. Does she agree that the international community needs to get tough on China and improve the reputation of global trading?
Elizabeth Truss
My hon. Friend is right that we need to tackle unfair market practices, such as subsidies by state-owned enterprises in industries such as steel and aerospace. On Tuesday, I met my US counterpart, Katherine Tai, and we agreed to work together on this issue.
Ms Ghani
In the G7 Trade Ministers communiqué, issues around free and fair trade were balanced on transparency and supply chains being free of slave labour. Can the Secretary of State provide us with an update on the conversations that she has had with G7 leaders and, in particular, can she possibly let me know whether she will be congratulating the US Senate on passing a law last night that will ban all imports from Xinjiang because, of course, they are full of Uyghur slave labour?
Elizabeth Truss
I agree with my hon. Friend that forced labour is an abhorrent practice. We have already taken action in the UK to ensure that there is no forced labour in our supply chains and G7 Trade Ministers are committed to tackling this issue. We are working on best practice to prevent, identify and eliminate forced labour in global supply chains ahead of the G7 October trade ministerial.
Henry Smith [V]
I welcome the work that my right hon. Friend is doing with her G7 counterparts to reform global trading and encourage a rules-based multilateral trading system. Does she agree that a free and fair trading system will help countries, including the UK, to build back better from the covid-19 pandemic as part of a strong economic recovery?
Elizabeth Truss
My hon. Friend is absolutely right. There has been a worrying rise in protectionism in recent years and I am proud that the UK is leading the way in liberalising trade, striking new free trade deals to bring more jobs and growth as we seek to build back better after covid. At the same time, we are defending UK industry against unfair practices.
Emily Thornberry (Islington South and Finsbury) (Lab)
I hope that the Secretary of State has had a productive visit to the United States. She will have seen the example set by the Biden Administration when it comes to taking concrete action against the use of slave labour and the abuse of workers’ rights in countries ranging from Malaysia to Mexico. By contrast, may I ask her to name a country—one will do—with which the UK has a trade deal where she has taken any action of any kind to enforce the rights of workers?
Elizabeth Truss
We are extremely committed to making sure not only that we stand up for high standards across the globe, that our workers here in the United Kingdom are protected and that we do not diminish our workers’ rights, but that we work together with other countries to do that. I point to the comprehensive and progressive agreement for trans-Pacific partnership, which has a very strong labour chapter, for example insisting on minimum wages and the recognition of trade union rights. I look forward to the right hon. Lady’s support for our accession to that agreement.
Emily Thornberry
The shocking reality is that more than a third of our non-EU deals have been with countries where workers’ rights are systematically denied or violated, and in not a single case has the Secretary of State done anything about it. That is not good enough when slave labour is on the rise around the world and it is women, children, migrants and minorities who are too often the victims. Will she take a lesson from the Biden Administration, stop turning a blind eye to the abuse of workers’ rights by our own trade partners and start taking action against them instead?
Elizabeth Truss
I am very proud of the role that the United Kingdom has played in setting very high labour standards and looking for them in the trade agreements that we are working on. That is part of our discussions with the CPTPP countries. I have also been talking to leading figures in the US about how we can ensure strong labour rights in future US agreements.
Geraint Davies (Swansea West) (Lab/Co-op) [V]
China now produces 28% of carbon emissions—more than the US and the EU combined—with more than half the world’s coal-fired power stations and a third more planned. To stop carbon-intensive Chinese products such as steel displacing greener alternatives, will the Secretary of State ensure that with the G7, at COP26 and with Katherine Tai we pursue the carbon border tax being developed in the EU so that trade can help to save the planet, not destroy it?
Elizabeth Truss
The hon. Gentleman makes an important point about carbon leakage. We need to make sure that when we work to achieve our net zero target, we are not simply exporting carbon production elsewhere. That is why I am working with G7 partners on the issue of carbon leakage, but I think it is important that the solution is multilateral and embedded in the world trading system rather than unilateral from each individual country, so I am working with like-minded partners across the globe to make sure that we take account of carbon emissions.
Kate Osborne (Jarrow) (Lab)
Scott Benton (Blackpool South) (Con)
The Secretary of State for International Trade (Elizabeth Truss) [V]
We have a strong bilateral trade relationship with Israel worth £5 billion a year. On my recent visit to Israel, I discussed our ambitions for a new free trade agreement to create further opportunities for British business.
Michael Fabricant [V]
My right hon. Friend will know from her visit to Israel that it has the highest number of high-tech start-ups in the world. Moreover, the latest Intel chips in all our computers were designed in Israel by Intel. Does my right hon. Friend have any plans to enhance the trading relationship in high-tech products with the state of Israel?
Elizabeth Truss
My hon. Friend is completely right. The UK and Israel are both leaders in technology, from agri-tech to gaming to med-tech, and there are huge opportunities for us to work together. What we will be seeking in the new trade deal with Israel is an advanced digital data and technology chapter that looks to the industries of the future to give both countries more opportunities.
Scott Benton
I welcome the Secretary of State’s commitment to sign an advanced free trade agreement with our close ally Israel, and I hope she enjoyed her first ever visit to the country this month. Israel is a growing export market for UK companies, so what steps is she taking to champion UK-made products being sold in Israel, and what more can be done to boost UK exports of things such as cars, machinery and clothing?
Elizabeth Truss
The current UK-Israel partnership is already worth £5 billion a year, but we want to turbo-charge that. We are providing practical assistance for UK firms through our trade adviser network, as well as strong support from UK Export Finance to help to finance those exports into Israel.
Emily Thornberry (Islington South and Finsbury) (Lab)
We all welcome the prospect of an enhanced trade deal with Israel, and I congratulate the Secretary of State on her efforts to secure it. Among the many improvements that we hope the new deal delivers, will she guarantee to remove the clause mistakenly included in the 2019 UK-Israel agreement that prohibits manufacturers in UK freeports from sharing in the benefits of that deal? Can she tell us when we can expect revised deals with the 20 other countries, including Switzerland and Singapore, where the same freeport blunder still applies?
Elizabeth Truss
The clauses that the right hon. Lady is referring to are absolutely standard in free trade agreements. Every agreement is the result of a negotiation with the relevant country, and of course we secure the best possible outcome in terms of tariff reductions and rules of origin, but I will be absolutely clear that firms locating in our freeports are free to take advantage of whichever is better for their company: a given free trade agreement or the additional reductions from being in that freeport.
Andy Carter (Warrington South) (Con)
Brendan O'Hara (Argyll and Bute) (SNP)
The Secretary of State for International Trade (Elizabeth Truss) [V]
The United States is our largest single country trading partner and an important ally. We have already made progress in the Airbus-Boeing dispute, getting tariffs removed on great British products such as machinery and whisky. I am now working closely with my US counterparts to tackle global issues on steel, aerospace and technology to make sure that trade is fair as well as free.
Brendan O'Hara
We are six months into Brexit and the sea of opportunity that the seafood producers of my Argyll and Bute constituency were promised has turned out to be swamp of bureaucracy. Alongside a mountain of paperwork and red tape, they all report falling prices, loss of markets, labour shortages and major transport and logistical problems. Six months into Brexit, they are facing an existential crisis. How has the Secretary of State’s Department allowed that to happen?
Elizabeth Truss
We have seen trade with the EU bounce back after some initial issues. In particular, the Department for Environment, Food and Rural Affairs has offered support to seafood producers to ensure that they have what they need to be able to deal with those issues.
Andrew Jones (Harrogate and Knaresborough) (Con)
UK Steel Industry
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The Government are announcing today that it will make new regulations to help defend the UK steel industry.
The move follows a review by the Trade Remedies Authority (TRA) last year on defensive tariff rate quotas (TRQs) on 19 categories of steel imports retained from when the UK was a member of the European Union.
This review concluded that TRQs should be extended in 10 of the categories and revoked in nine others.
Current legislation means that the Government only have two choices: either to accept the TRA recommendation in full or reject it entirely—leaving all 19 categories of UK steel products at risk from tariff-free imports.
The Government have accepted the TRA’s recommendation to maintain the safeguard on 10 steel product categories for a further three years. The Government are at the same time making new regulations to further defend the UK steel industry by extending the safeguard by public notice. The public notice will set out the details of the temporary extension on a further five of the 19 steel products for one year. Imports outside the quotas will face a tariff of 25%.
The UK Government will always do everything in their power to defend UK industry and jobs and to allow our world-leading manufacturers to compete on a level playing field. Current disruption to industry caused by the covid-19 pandemic, threats of dumping and unfair subsidies, and continued trade restrictions in third countries all put UK steel products at an unacceptable disadvantage.
The steel sector supports the jobs of over 80,000 people across the UK, including some 35,000 well-paid jobs in steel production, and a further 44,000 jobs supported in wider supply chains.
That is why the Government are taking decisive action today by making new regulations to defend jobs in the UK steel industry. This will give an opportunity for the industry to appeal the recommendation made by the TRA so any new evidence can be reviewed in the context of the unique global market conditions which currently prevail.
This includes assessing the risk of injury arising from the EU safeguard which was published after the TRA made their decision.
It is important to note that the ability of industry to gather the data and the TRA to consider the evidence was extremely challenging given the unprecedented disruption to trade caused by the covid-19 pandemic.
The UK Government will also review the trade remedies framework as an urgent priority. The trade remedies framework was first introduced in 2018 under the previous Government. The current Government will review it to ensure it is up to date, champions WTO rules and is fit for purpose in the post-covid world.
It is crucial we have the tools in the future to ensure industries are defended against unfair competition and unforeseen surges in imports.
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Negotiations on Future Trading Relationship with New Zealand
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The fifth round of free trade agreement negotiations with New Zealand took place between 8 and 16 June 2021. New Zealand’s Trade and Export Growth Minister Damien O’Connor also visited the UK from 16 to 18 June for face-to-face talks. Both countries have agreed to accelerate negotiations to finalise the details of the deal with the aim of reaching agreement in principle.
Both countries are committed to agreeing a high-quality, comprehensive free trade agreement that supports jobs, broadens consumer choice, and provides more opportunities in key industries such as services, digital trade, and the green economy.
Strong progress was made in agreeing key issues across the deal including provisionally closing a further four chapters:
Government procurement chapter, which improves small medium-sized enterprises’ (SMEs’) access to procurement and the integrity of supply chains.
Disputes chapter, which establishes mechanisms to promote and enforce compliance with the agreement and ensures that state-to-state disputes are dealt with consistently, fairly and in a cost-effective, transparent, and timely manner. It gives businesses and stakeholders certainty that the obligations under this agreement will be upheld.
Transparency chapter, which underscores the rule of law as the major cornerstone of good governance, outlining agreed expectations for the UK and New Zealand to be transparent, open, and accessible to UK businesses, with respect to this trade agreement and their respective regulatory environments.
Trade and gender equality chapter, which recognises that women are underrepresented in international trade, and aims to support women exporters, business owners, and entrepreneurs to participate in global trade.
Excellent progress was also made during round 5 on the following chapters, which the UK and New Zealand agree now have a clear path to closure:
Rules of origin
Goods
Cross-border trade in services
Customs
Digital
Telecoms
State-owned enterprises
Consumer protection
Good regulatory practice
Labour
Development
Anti-corruption
Initial and final provisions
General exceptions
Institutional provisions
In previous rounds, chapters on SMEs, competition and remedies were provisionally closed.
The Government have been clear that any future deal with New Zealand must work for UK consumers, producers, and companies. Throughout the process the UK will continue to engage stakeholders to ensure their views inform our approach to negotiations.
Any deal the UK agrees will be fair and balanced and in the best interests of the whole of the country. We remain committed to upholding our high environmental, labour, food safety and animal welfare standards in the deal, as well as protecting the national health service (NHS).
The UK and New Zealand both remain eager to make further progress, with the UK clear that momentum needs to be maintained across the whole agreement. Ahead of the next round, negotiating teams will share further proposals and discuss a range of issues.
The next round of negotiations, round 6, is scheduled to take place in July, with a series of intersessional discussions across the FTA planned for the next month.
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UK-Singapore Digital Economy Agreement
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Today, the Government will launch negotiations with Singapore towards a bilateral digital trade agreement, the UK-Singapore digital economy agreement (DEA).
Singapore and the UK are both global leaders in the digital economy, and our bilateral trade was worth £17 billion in 2019, with 70% of services exports digitally delivered.
This new, ambitious agreement will aim to remove barriers to digital trade and enable UK exporters to expand into high-tech markets. It is part of the Government’s strategy to place the UK at the centre of a network of modern free trade agreements with dynamic countries, and to enhance our status as a global hub for services and digital trade.
The UK is the first European country to start negotiations on a digital trade agreement. This is an opportunity for the UK to take the lead in shaping these agreements, and grow our influence on global rules in areas of UK strength such as digital and services. It reflects how the UK is becoming more flexible, more nimble and less defensive in our approach to trade.
The UK is already one of the world’s biggest exporters of services, with remotely delivered services exports worth £207 billion in 2019 alone. International digital trade is now a key driver of productivity and business growth in the UK. It allows British businesses to reach a wider consumer base by selling online, to trade more efficiently and cost-effectively by streamlining shipping, logistics and other trading processes, and to connect and grow their workforce across different regions of the world—sharing the benefits of prosperity.
The DEA can expand the UK’s access to Singapore’s digital economy—worth an estimated £9.4 billion in 2019. Negotiations will focus on:
Securing open digital markets for exporters, allowing them to expand into new markets and sell traditional products in new ways.
Ensuring free and trusted cross-border data flows, while upholding high standards of personal data protection.
Cutting red tape for UK businesses by promoting digital trading systems such as digital customs and border procedures that will save time and money when exporting.
Upholding online consumer rights and protecting businesses’ valuable intellectual property, like source code and cryptography.
Deepening our co-operation on future growth sectors such as FinTech and LawTech, while working with Singapore to strengthen our collective cybersecurity capabilities and keep our countries safe.
Strengthening our trading relationship with Singapore is also part of the Government’s wider trade strategy, which aims to deepen links with one of the fastest growing regions of the world, partnering with countries who believe in free and fair trade.
The DEA can create new opportunities as a gateway to the Asia-Pacific region for tech, high-end services, and digital trade, ultimately supporting and creating high-value jobs across the United Kingdom and helping the country build back better from covid.
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I beg to move,
That this House has considered the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
I am delighted to open this debate on our future membership of the trans-Pacific partnership. Five years after the British people voted to leave the European Union, we are delivering on the promise of Brexit. After taking back control of our trade policy, we have been opening up the world’s largest and fastest growing markets to the best of British exports by negotiating an unprecedented number of trade deals. We have struck deals covering 68 countries plus the EU, worth £744 billion. We have gone further and faster to champion our interests in deals with Japan and the European economic area.
This month, we are writing the biggest chapter yet of our trading story. We brought world leaders together at the G7 to promote free and fair trade. We reached agreement in principle with Australia—our first ever trade deal negotiated from scratch—and we are working to agreement in principle with New Zealand by August. We have drawn a line under the long-running 17-year Airbus-Boeing dispute. Now, the United Kingdom is making history as the first country to negotiate its accession to the comprehensive and progressive agreement for trans-Pacific partnership. This group of nations covers half a billion people across 11 economies, worth £9 trillion in global GDP. On Tuesday, I presented our plans to Parliament, including our scoping analysis. We know that the richest opportunities lie in the Asia-Pacific region, where about two thirds of the middle class will be expected to be in 2030, driving an appetite for high- quality goods and services that we produce here in the UK. We can see that in the fact that our exports to the CPTPP are expected to grow by 65%, or £37 billion, over this decade. That is in addition to the static comparative benefits of the deal, which are estimated at £1.8 billion of GDP.
Jim Shannon (Strangford) (DUP)
First, may I congratulate the Secretary of State on all she does to bring about these trade deals? She will be aware of the fact that CPTPP countries such as Australia, Canada, Japan and Singapore are the largest UK partners for some 80% of UK trade. It is important to get new deals, but it is also important to build on the deals with the countries we have. Can the Secretary of State assure us that that will be part of the Government’s strategy for the future?
Elizabeth Truss
The hon. Gentleman is absolutely right. The CPTPP enables us to have much deeper trading relationships, particularly in areas of UK strength such as digital, data and services, where there are very strong chapters on those issues.
The fact is that the likely benefits of joining the CPTPP are much greater as the economic centre of gravity shifts towards Asia and as more countries join the agreement. Joining this partnership will position us at the heart of the action in global trade. The CPTPP is exactly the kind of free trade area the UK wants to be part of: it is liberalising on tariffs and other trade barriers; it has high standards on labour and the environment; it is ambitious in digital and services; and it is tailor-made to help us to cement the UK’s status as a global hub for services, digital and advanced manufacturing. Our exporters will no longer have to pay tariffs on 99.9% of their goods, from Scotch whisky and Stoke-on-Trent ceramics to cars made in the north of England and the midlands. Our farmers will benefit from a strong appetite for beef and lamb in Asia, with CPTPP markets expected to account for a quarter of global meat demand by 2030. Our manufacturers will enjoy common standards and rules of origin, securing flexibility, reliability and lower prices on inputs.
Marco Longhi (Dudley North) (Con)
Does the Secretary of State agree that if British business is to invest it needs confidence, and that that confidence will come by restating our commitment to free trade by diversifying our trade offer, generating new jobs and bringing more stability to the jobs we already have?
Elizabeth Truss
My hon. Friend is absolutely right. A key benefit of the CPTPP is increased resilience. It means that our exporters will not have all their eggs in one basket. They will have options about where they send their goods. It will also mean our importers are able to rely on strong relationships in countries which follow the rules and have good standards in areas such as the environment and worker protection.
Rachael Maskell (York Central) (Lab/Co-op)
I am grateful to the Secretary of State for giving way. I have been crunching the numbers. If we look at our trade deficit, we see that this agreement will bring in just £300,000 a day in exports compared with the £11 million a day we are losing in our deal with the EU. Should her efforts not be put towards ensuring that the deal is comprehensive so that we can trade across the channel, in view of the carbon impact of trading across the world?
Elizabeth Truss
The logical position, if the hon. Lady does not believe in trading across the world, is that she only believes in having protectionism for the UK. The reality is that trade with the EU has bounced back. This is about positioning Britain for the future, and where the growing markets of the future are. We are expecting trade with CPTPP countries to increase by 65% by 2030. The hon. Lady is harking back to the past; we are looking at where the future opportunities are for Britain.
As the world’s second largest services exporter, we will be perfectly placed to benefit from strong provisions securing the free flow of data and easier business travel to CPTPP countries. True to the British people’s priorities, there are no strings attached to this deal that would force us to cede control over our laws, our borders or our money. Instead, the UK will join 11 fellow sovereign nations in one of the world’s largest free trading areas. This House can be proud that the UK is at the front of the queue and set to be the CPTPP’s first new member since it was established in 2018. This is a testament to the ties that we have forged with our Pacific partners and to the UK’s fierce commitment to high standards. It also shows that our independent trade policy is not just about the here and now, but about the long term. As part of the CPTPP, we can strengthen it as a bulwark against unfair trading practices. Together, we can bring home the benefits of free trade for all our people.
Our accession will have full parliamentary scrutiny. We committed to publishing our negotiating objectives, consultation response and scoping assessments at the outset of our negotiations, and we did that earlier this week. All of this will be fully scrutinised, including by the new Trade and Agriculture Commission. That puts us in a very strong position compared with comparable parliamentary democracies. Five years on from the referendum, we are demonstrating what global Britain is capable of. We are back as a major force for global trade, striking more trade deals than any other nation has been able to manage.
We have the world knocking on our door, eager to do business with Britain. That is why I am working with allies worldwide, from the United States to India and from the Gulf states to Japan, to break down barriers to trade, and we are now seizing the shimmering opportunity offered by this jewel of the Pacific, the CPTPP. Joining will do more than ever to realise our vision of global Britain as we embrace new markets while levelling up every region and nation of the UK. That is the bright future awaiting us as part of the CPTPP, and I commend these negotiations to the House.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Launch of Accession Negotiati
Elizabeth Truss Excerpts(3 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The UK will today launch negotiations with 11 countries belonging to a free trade area, in a landmark moment for the UK as an independent trading nation. Joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) hitches the UK to some of the world’s biggest current and future economies populated by half a billion people and with a joint GDP of £9 trillion.
It would secure our businesses and British exports superior access to these dynamic markets, with 65% of the world’s 5.4 billion middle class consumers expected to be in Asia by 2030. UK exports to CPTPP nations would increase by 65% —£37 billion—until 2030 and, in addition to this growth, comparative static analysis shows an additional increase in trade by £3.3 billion as a result of UK accession.
Membership of CPTPP would build on the FTAs we have now signed with 67 countries plus the EU, and opens new markets for our services sectors, lowers tariffs on goods like cars and whisky, and creates new opportunities for UK farmers. The historic trade deal agreed in principle with Australia on 15 June will mean iconic British products will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million across the country. This agreement, and others with CPTPP members including Japan, Singapore and Mexico, are a gateway into the fast-growing Indo-Pacific region and will boost our bid to join CPTPP.
CPTPP members represent 13% of global GDP, growing to 16% if the UK joins. Joining CPTPP would put the UK at the heart of this dynamic group of countries, deepening our ties with some of the world’s biggest and fastest-growing countries, as the world economy increasingly centres on the Pacific region.
Joining CPTPP is expected to boost this growth even further, and that means supporting even more UK jobs. It is an advanced and ambitious agreement which goes deep in areas of UK interest such as services and digital trade.
The Indo-Pacific is the world’s growth engine: home to half the world’s people; 40% of global GDP; and some of the fastest-growing economies that are at the forefront of new global trade arrangements. By entering into a free trade agreement with these countries, the UK can benefit from this growth. Acceding to the CPTPP would help the UK engage more deeply with the region, and help us secure increased trade and investment opportunities, diversify our trading links and supply chains, and embed open trade.
As part of CPTPP, our analysis shows that every nation and region of the UK is expected to benefit. Each region of the UK already exported over £1 billion worth of goods to CPTPP members in 2019, including £3.1 billion from the East Midlands, £2.4 billion from Scotland, and £2 billion from the North West. Membership could deliver a £1.8 billion boost to UK GDP in the long run and to increase take-home pay for British workers by £800 million.
Accession could see 99.9% of UK exports being eligible for tariff-free trade with CPTPP members. Joining would secure lower tariffs for exports such as whisky and cars, which are in high demand in the Pacific region; 65% of the world’s 5.4 billion middle class consumers are expected to be in Asia by 2030.
CPTPP also greatly benefits the UK as the world’s second-largest services exporter. It makes travel easier for businesspeople moving between CPTPP countries, and goes further in areas of key UK interest, with advanced provisions that facilitate digital trade and modern rules on data that would help the UK’s cutting-edge tech sector go global, and enable more financial and professional services markets to be opened up.
CPTPP also sets modern rules for digital trade across all sectors of the economy, supporting UK businesses seeking new opportunities in member markets. Digitally delivered services from the UK to CPTPP, such as making online international bank transfers, selling an e-book from an online marketplace or giving legal advice over Zoom, were worth £18.7 billion in 2019.
The more CPTPP expands, the greater the benefits to the UK. Economies including the Philippines, Thailand, Taiwan, and Republic of Korea have all expressed interest in joining. By having a seat at the table as the first new member, the UK can help shape CPTPP’s future development as it grows.
Today, the Department for International Trade has published four documents, copies of which have been placed in the House Library:
Our outline approach to negotiations, setting out our objectives for the negotiations.
A response to the public consultation on membership of CPTPP, setting out how it has informed our policy.
Our geostrategic vision for trade with the region.
A scoping assessment, providing a preliminary economic assessment of the impact of membership.
On Wednesday 2 June, CPTPP nations agreed to the UK’s bid to begin the accession process to join CPTPP. The UK will continue to work closely with Japan, as this year’s chair of the CPTPP commission, alongside the other CPTPP nations to progress negotiations as quickly as possible. As in all negotiations, we are committed to upholding our high environmental, labour, product and food safety and animal welfare standards in our negotiations with CPTPP member states, as well as protecting the national health service (NHS).
CPTPP has high standards in areas including the environment and labour. Its rules commit members, for example, to protecting the minimum wage, freedom of association, the elimination of forced and child labour and, crucially, enforcing their own laws in these areas. CPTPP also affirms the UK’s right to regulate in our national self-interest, rather than forcing harmonisation on its members, complementing the UK’s system of strong rule of law coupled with the freedom to set our own regulations.
This Government are committed to transparency and will ensure that parliamentarians, UK citizens and businesses have access to information on our trade negotiations. The written ministerial statement of 7 December 2020 set out our transparency and scrutiny commitments, including regular updates to Parliament and engagement with Select Committees, which will apply to the UK’s process of accession to CPTPP.
[HCWS108]
Progress on Large Civil Aircraft Disputes
Elizabeth Truss Excerpts(3 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
On Thursday 17 June I struck a historic deal with the US on the Airbus-Boeing disputes in a major win for both the aerospace sector and for industries such as Scotch whisky.
After talks with US Trade Representative Katherine Tai, both sides have agreed to suspend retaliatory tariffs for five years and co-operate more closely on tackling unfair trade practices by non-market economies.
These 17-year disputes, the longest-running in the history of the World Trade Organisation, have seen damaging retaliatory tariffs levied on products on both sides of the Atlantic due to disagreements over support for large civil aircraft.
The disagreement has hit industries such as cashmere, machinery and single malt Scotch whisky that employ tens of thousands of people across the UK. The Scotch Whisky Association estimates the tariffs have cost the sector hundreds of millions of pounds in lost revenue.
The UK, which was involved as a member of the EU, took the decision to deescalate these disputes by unilaterally suspending retaliatory tariffs on the US at the start of this year, which encouraged the US to agree to a four-month suspension of tariffs while both sides negotiated a longer-term arrangement.
The UK and US will now work together to put the agreement into practice and strengthen co-operation in the large civil aircraft sector.
This deal marks our joint intention for the UK and US to:
Not impose countermeasures for five years.
Establish a working group on large civil aircraft that is led by the respective Minister responsible for trade.
Provide financing to a large civil aircraft producer for the production or development of large civil aircraft on market terms.
Provide research and development funding for large civil aircraft: through an open and transparent process; making the results widely available; and not providing research and development funding, or other support, to producers of large civil aircraft in a way that would cause negative effects to the other side.
Collaborate on tackling non-market practices of third countries that may impact on their large civil aircraft industries.
[HCWS104]
Free Trade Agreement Negotiations: Australia
Elizabeth Truss Excerpts(3 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for International Trade (Elizabeth Truss)
I wish to make a statement on the new UK-Australia free trade agreement secured by our Prime Ministers this Tuesday. We have agreed a truly historic deal, which is the first negotiated from scratch by the United Kingdom since leaving the European Union. This gold-standard agreement shows what the UK is capable of as a sovereign trading nation: securing huge benefits such as zero-tariff access to Australia for all British goods and world-leading provisions for digital and services, while making it easier for Brits to live and work in Australia.
The agreement also paves the way for the UK’s accession to the vast market covered by the comprehensive and progressive agreement for trans-Pacific partnership, coupling us with some of the world’s largest and fastest growing economies worth £9 trillion in global gross domestic product. Our Australia deal shows that global Britain is a force for free and fair trade around the world. We believe in 21st-century trade. We do not see it as a zero-sum game like our critics, who doubt we can compete and win in the global marketplace. We want to be nimble, positive and open to new ideas, talent and products, without sacrificing our sovereignty.
We have laid out the core benefits of this deal in the agreement in principle document. It means that £4.3 billion-worth of goods exports will no longer have to pay tariffs to enter the Australian market, from Scotch whisky and Stoke-on-Trent ceramics to the 10,000 cars we currently export from the north of England. Meanwhile, we will enjoy greater choice and top value in Aussie favourites such as wine, swimwear and biscuits. Young Brits under the age of 35 will be able to live and work in Australia for up to three years with no strings attached. Our work and mobility agreement goes beyond what Australia agreed with Japan or the US, making it much easier for Brits to live and work in Australia.
We have agreed strong services and digital chapters that secure the free flow of data and the right for British lawyers and other professionals to work in Australia without needing to requalify. We have secured access to billions of pounds in Government procurement, which would benefit businesses such as Leeds-based Turner and Townsend, which is contracted to expand the Sydney Metro.
This deal promotes high standards, with the first animal welfare chapter in an Australian trade deal, as well as strong provisions on climate change, gender equality and development. On agriculture, it is important that we have a proper transition period. That is why we have agreed 15 years of capped tariff-free imports from Australia, which means that Australian farmers will only have the same access to the UK market as EU farmers in 2036. We should use this time to expand our beef and lamb exports to the CPTPP markets, which are expected to account for a quarter of global meat demand by 2030. I do not buy this defeatist narrative that British agriculture cannot compete. We have a high-quality, high-value product that people want to buy, particularly in the growing middle classes of Asia.
This Australia deal is another key step to joining the trans-Pacific partnership, a market of 500 million people that has high-standards trade, 95% tariff-free access and very strong provisions in digital and services, which are of huge benefit to Britain, the second largest services exporter in the world. It covers the fastest growing parts of the world, where Britain needs to be positioned in the coming decades. While some look to the past and cling to static analysis based on what the world is like today, we are focused on the future and what the world will be like in 2030, 2040 and 2050.
Of course, Parliament will have its full opportunity to scrutinise this agreement. Our processes are in line with those of other parliamentary democracies, such as Canada and New Zealand; the Trade and Agriculture Commission will play a full role, providing expert and independent advice; and the House can rest assured that this deal upholds our world-class standards, from food safety and animal welfare to the environment.
Following the agreement in principle, we will finalise the text of the full FTA agreement, which will then undergo a legal scrub before being presented to Parliament, alongside an economic impact assessment. I look forward to further scrutiny from the Select Committee on International Trade and the Chair of the Select Committee on Environment, Food and Rural Affairs.
This deal means we have now struck agreements with 68 countries plus the EU, securing trade relations worth £744 billion as of last year. The deal with our great friend and ally Australia is just the start of our new post-Brexit trade agreements. It is fundamentally about what kind of country we want Britain to be. Do we want to be a country that embraces opportunity, looks to the future, and believes its industries can compete and that its produce is just what the world wants? Or do we accept the narrative some peddle that we need to stay hiding behind the same protectionist walls that we had in the EU, because we cannot possibly compete and succeed? To my mind, the answer lies in free trade. Our country has always been at its best when it has been a free-trading nation. This deal is a glimpse into Britain’s future—a future where we are a global hub for digital and services, where our high-quality food and drink and manufactured goods are enjoyed across the world, and where we are open to the best that our friends and allies have to offer. That is what this deal represents, and I commend this statement to the House.
Emily Thornberry (Islington South and Finsbury) (Lab)
I thank the Secretary of State for advance sight of her statement and for publishing the outline agreement at quarter to 1 last night—nothing screams confidence in the deal you have negotiated like slipping it on to your website after midnight. I will not address every element of the deal she has highlighted today. On some, we will have to reserve judgment until we have seen the full treaty text and the economic impact assessment. After all, this was the Secretary of State who agreed a brand new Japan deal that turned out, according to her own figures, to deliver lower benefits for Britain than the one we already had.
However, the one area of this deal on which we can reach a verdict now is the terms agreed on agriculture. In doing so, I am not going to hold the Secretary of State to some impossible ideal; I am simply going to hold her to the past commitments she has made to protect our standards and our farming industry. Let us start with standards. She said last October that she would not sign a trade deal that would allow British farmers to be undercut by cheap imports produced using practices that are allowed in other countries but banned in the UK. She called that an important principle, so let me give her just 10 examples of such practices in Australia: allowing slurry to pollute rivers; using growth-promoting antibiotics; housing hens in barren cages; trimming their beaks with hot blades; mulesing young lambs; keeping pregnant pigs in sow stalls; branding cattle with hot irons; dehorning and spaying them without pain relief; and routinely transporting livestock for 48 hours; and doing that without their having rest, food or water. All those practices are in common use in Australia, but banned in Britain. Yet, under the deal she has signed, the meat from farms that use those practices will come into our country tariff-free, undermining British standards, undercutting British farmers and breaking the promises made to the British people.
So much for protecting our standards, what about protecting our farming industry? The Secretary of State said last November:
“We have no intention of ever striking a deal that doesn’t benefit farmers”.
Yet the deal she has just signed will allow Australia’s farm corporations to export more than 60 times the amount of beef next year as they exported to Britain last year before they face a single penny in tariffs. It is the equivalent of immediate, unlimited tariff-free trade, which is why when the Secretary of State says that Australian farmers will be in the same position as EU farmers after 15 years, she is talking nonsense. They will be in exactly the same position from year one, but without the requirement to meet EU standards. No wonder Australia’s former negotiator at the World Trade Organisation said:
“I don’t think we’ve ever done as well as this. Getting rid of all tariffs and quotas forever is virtually an unprecedented result.”
Of course, he is right. When Japan and Korea negotiated their deals with Australia, they set tariff-free allowances in year one that allowed for a modest increase in the amount of beef Australia had exported to them in the previous year—7% for Korea and 10% for Japan. By comparison, the deal the Secretary of State has just signed allows Australia to increase its exports of beef by 6,000% without paying any tariffs. In the Government’s own scoping paper last July we have it in black and white. That increase in Australian exports will mean:
“A fall in output and employment”
in the UK’s agricultural sector. [Interruption.] The right hon. Lady says it is wrong, but I am just quoting her Department. So British farmers are to be left worse off as a result of her deal. This is another broken promise, with more to come when New Zealand, Canada, Brazil and America demand the same deal for their exports. Let me be absolutely clear. We want good trade deals with other countries. We want trade deals that will create jobs, support our industries, and strengthen our economy and our recovery. But, to be blunt about it, we want the kind of results from our trade deals that Australia has just achieved from us.
The Secretary of State told the newspapers in April that she would sit her inexperienced Australian counterpart in an uncomfortable chair and show him how to play at this level. I am afraid that this deal has exposed the Secretary of State as the one who is not up to the job. Britain needs and deserves better.
We need someone who will keep the promises they make to the public and to Parliament; someone who will promote British standards around the world, not allow them to be undermined; someone who will protect our farming and steel industries, not throw them to the wolves; someone who will get the results for their country that the Australian Trade Minister has delivered for his. The Secretary of State has shown that she is not that person, so there is only one question that matters today: will she guarantee to give Parliament not just a debate but a binding vote on the deal that she has agreed with Australia so that we can reject the terms she has agreed on farming and send someone else back to the table to get a better deal for our country?
Elizabeth Truss
Well, it is not a surprise that the right hon. Lady is relentlessly negative about the opportunities of the Australia deal and the trans-Pacific partnership. I am surprised that she is known as the shadow Secretary of State for International Trade; she should be known as the shadow Secretary of State against international trade, because there is not a single trade deal that she supports.
The right hon. Lady had nothing to say about the tariff-free access for all British goods—from cars to whisky—that we are going to secure under this agreement. She had nothing to say about the benefits for the under-35s of being able to live and work in Australia for three years with no strings attached. She had nothing to say about digital and services, even though the UK is the second largest services exporter in the world. Instead, she talked about agriculture, which is a new interest for her; we have not really heard her say much about it in the past.
Let me be clear: in year one, the cap on Australian beef exports to the UK will be 35,000 tonnes. We currently import 230,000 tonnes from the EU, so the cap is 15% of what we currently import from the EU. That is not the same access that the EU has; it is only 15% of the access. In fact, Australian farmers will only have the same access as the EU in 2036.
The right hon. Lady talks about animal welfare standards. Australia has been rated five out of five in international ratings on animal welfare standards. In many cases, those animal welfare standards are higher than they are in the EU, but not once did the right hon. Lady complain about the zero-tariff, zero-quota deal from the EU. Not once has she talked about animal welfare standards in the EU, apart from claiming that she likes Danish pork. The reality is that the right hon. Lady simply wants to stay in the EU. She does not want to look at future opportunities, she is not interested in where Britain can go in the future, and she is not interested in expanding Britain’s trade and delivering more jobs in this country.
Sir Roger Gale (North Thanet) (Con) [V]
I certainly do not intend to criticise my right hon. Friend—who has clearly put a lot of work into this—without even beginning to know the details of the deal that has been struck. It is clearly the case that we need to strike agreements not only with Australia but with the trans-Pacific partnership, Canada, the United States and South America.
My right hon. Friend the Prime Minister spent part of the G7 weekend firefighting the fall-out from a badly negotiated deal over the Northern Ireland protocol, which demonstrates why parliamentary scrutiny is necessary. I am pleased to hear that my right hon. Friend the International Trade Secretary has said that this deal will be the subject of a parliamentary debate. I assume—perhaps she can confirm this—that that means that there will also be a vote. When will the Trade and Agriculture Commission be fully functioning and up and running, and when will the impact assessments in relation to this deal be published?
Elizabeth Truss
I can tell my right hon. Friend that we have already put out expressions of interest for serving on the Trade and Agriculture Commission. That will be in place before we need to scrutinise the agreement. The scrutiny of the agreement will take place when we have reached the final signed agreement. That will be presented to Parliament. In advance of that presentation, it will be given to the International Trade Committee and to the Chairman of the Environment, Food and Rural Affairs Committee for scrutiny. It will then go to Parliament and go through the Constitutional Reform and Governance Act process, during which MPs are able to block the deal if they do not support it. I believe the deal I have negotiated is positive for the United Kingdom and will command parliamentary support, but there is always that option open to Members of Parliament.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP) [V]
I thank the Secretary of State for advance sight of her statement.
For all the bluster, the Secretary of State knows that any deal with Australia cannot even make a dent in the shortfall created by the trading disaster of leaving the EU. The simple fact is that we are doing much less trade now than we were before 1 January. This deal will take 15 years to deliver one 200th of the benefits lost from EU membership—and that loss has already cost Scotland’s economy around £4 billion and is projected to cost every person £1,600 in red tape and barriers to trade.
The Secretary of State talks of whisky exports to Australia, while ignoring the fact that the Brexit costs of goods for distilleries have shot up by around 20%, and that is in addition to lost trade. This deal cannot come close to mitigating those costs or loss of sales. Fourteen of Scotland’s food and drink organisations have written to the Secretary of State to say that they have been ignored by this Government. They are Scotland’s farmers, crofters, producers and manufacturers. They know that they are being dragged underwater by yet another Westminster Government who simply do not care. And for what—swimwear?
In the 1970s, the Tories officially called Scottish fishing expendable, and they repeated that attitude on the way out of the EU. Even the Tories in Scottish constituencies now show the same contempt for Scottish agriculture. They have failed to back any amendments to legislation that would protect UK standards in trade negotiations or even public services.
Can the Secretary of State guarantee that the deal does not include investor-state dispute settlement mechanisms that could give corporations the right to sue Governments over actions that affect their profits, thereby potentially leading to the privatisation of public services such as the NHS or changes to workers’ rights? How will she guarantee that no cut of hormone-injected beef from Australia or food products treated with pesticides and antibiotics will appear on our supermarket shelves? She cannot, can she? Will she simply duck these questions and prove, once again, that the only way to protect Scotland’s business and consumers is through independence?
Elizabeth Truss
I was hoping that the SNP spokesman would welcome today’s announcement about the Airbus-Boeing dispute and the fact that we have continued to suspend the tariffs on Scotch whisky in a deal with the US.
I have much more faith than the hon. Gentleman does in Scotland’s beef and lamb industry. It is some of the best beef and lamb in the world. I am excited about the opportunities in the trans-Pacific partnership, which will be eating 25% of the world’s meat by 2030. The hon. Gentleman should be looking forward to those opportunities rather than harking back to the time when we were members of the EU. He needs to look at where the fast-growing markets of the future are; that is where Scotland’s opportunities lie.
I can absolutely confirm that ISDS is not part of our trade agreement with Australia, and I assure the hon. Gentleman that no hormone-injected beef will be allowed into the UK.
Jacob Young (Redcar) (Con)
G’day, Mr Speaker.
I thank the Secretary of State for this gold-standard trade deal with our long-standing friends and allies. She will know that Teesside has a long history of exporting to Australia—including the Sydney Harbour bridge, which was moved from Dorman Long’s Teesside steel plant. Will my right hon. Friend confirm that this trade deal will mean simpler trade for chemicals, cars and steel; cheaper prices for my constituents; and easier travel to and from Australia?
Elizabeth Truss
My hon. Friend is absolutely right: Teesside is absolutely set to benefit from this deal. There will be a removal of tariffs on products such as steel and chemicals—no British product will face tariffs into Australia. The north-east is already incredibly successful in exporting 10,000 cars to Australia every year. The tariff on cars will be removed, allowing even more of our fantastic exports down under.
Mr Speaker
Let us go to the Chair of the Select Committee, Angus Brendan MacNeil.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]
Tapadh leat, Mr Speaker. Some are saying that Australia has never before had such good luck in a trade negotiation and are wondering how this would have been different had the UK not been at the table. They suspect that Canberra is running out of champagne.
The reality is that in year one of the deal, UK farmers face the arrival from Australia of more quantities of beef, sugar, lamb, cheese and other dairy products than ever arrived in any year from the EU. To make up for the Brexit damage, we would need 245 such deals, which are very risky to farming. There is a feeling of unseemly haste with this deal. Incidentally, the EU would not create such risks for its farmers. With all that in mind, and given the need for scrutiny, will the International Trade Secretary appear before our Select Committee in the next week to 10 days so that we can have a good to and fro and investigate the issues before she signs the deal and Australia has her in handcuffs?
Elizabeth Truss
It is interesting that the Chairman of the Select Committee accuses me of haste. It is true that the EU is in the fourth year of its negotiations with Australia, just as it takes a very long time to negotiate any deal with any party. Fundamentally, the EU’s instincts are not to open up its markets. That has cost British business over the years, because we have not had access to Australian and Pacific markets on the same terms as others.
I assure the hon. Gentleman that I will appear in front of his Committee to answer questions prior to the signing. I am very happy to give him any kind of briefing. As he knows, he will get a copy of the signed trade agreement before anyone else—[Interruption.] I am afraid I cannot understand the hon. Gentleman’s gesticulations, because there is no sound. I think he is very happy that I will appear before the Committee—that is the message I am receiving.
As I have already said to the right hon. Member for Islington South and Finsbury (Emily Thornberry), in none of the 15 years of the transition period for beef and lamb access is the amount higher than that we currently import from the EU. It is extraordinary that the Labour party is happy with a zero tariff, zero quota deal with a landmass that is much closer to the UK, but afraid of a country that is 9,000 miles away. It seems to be one rule for its friends in the EU, and another rule for everybody else.
Mr Speaker
It might help if the hon. Gentleman went on a British Sign Language course.
Mr David Jones (Clwyd West) (Con)
May I congratulate my right hon. Friend on securing this agreement? As she will know, certain farming organisations have expressed concern about this deal. Will she repeat once again that there will be no reduction in the standards of food that will be allowed to be offered for sale on the British market? Further, will she invite those organisations to, rather than express concern, work with and her Department to secure the best possible outcome of the agreement she has achieved?
Elizabeth Truss
I thank my right hon. Friend. There are huge opportunities for British products overseas. There is a growing global market for these products. The vast majority of Australian beef and lamb goes to the Asian markets, where prices are higher. The opportunity for Welsh lamb and beef lies in getting better access to those markets so that we too can benefit from those higher prices. I welcome the opportunity to work with the farming industry. I have already talked to the National Farmers Union about how we can work closely together to promote British exports and get more agriculture counsellors into those markets so that we can realise the opportunities of this deal.
Sarah Olney (Richmond Park) (LD) [V]
The Secretary of State just referred to the fact that Australia is 9,000 miles away compared with the EU markets and the trade we were doing with it. I would be grateful if she could confirm how this deal will help the UK reduce its carbon emissions in international trade. What will this deal do to help the Government achieve their net zero goals by 2030?
Elizabeth Truss
I am pleased to say that this deal is the first that Australia has signed that has specific references to our achieving our climate change objectives. We are working very closely with the Australian Government and other allies to reach net zero.
Duncan Baker (North Norfolk) (Con) [V]
I warmly congratulate my right hon. Friend on this deal. She has now signed nearly 68 trade deals. Given the shadow Secretary of State’s comments, I would love to know how she thinks that that is not up to the job. While the doubters are still stuck in the past, can my right hon. Friend reconfirm not only that this free trade agreement paves the way to CPTPP membership for the UK, but that membership of the CPTPP would provide untold opportunities for our businesses by opening up access to 11 Pacific markets worth £9 trillion. As a believer in free markets, that is something that we cannot overlook.
Elizabeth Truss
We are expecting trade with those 11 countries to grow by 65% by 2030. The deal is a huge opportunity for the United Kingdom. The country has very high standards in areas such as digital and services where we are the second largest exporter in the world. What we have agreed with Australia also covers the market access negotiations for CPTPP, so this is very important stepping stone for those broader opportunities that are in the trans-Pacific partnership .
Mick Whitley (Birkenhead) (Lab) [V]
Investor-state dispute settlement clauses allow multinational corporations to take sovereign Governments to court simply for acting in the best interests of their citizens. They have been used to sue Governments for taking parts of their health services back into public control, and by fossil fuel companies to undermine vital environmental regulations. They make a mockery of the idea that we are taking back control. Will the Minister reassure the House that investor-state dispute settlement clauses will be excluded from the UK-Australia negotiations, and will she guarantee the House that there will be a full debate and meaningful vote for MPs on this and all future agreements?
Elizabeth Truss
I disagree with the hon. Gentleman’s characterisation of ISDS. The fact is that those clauses are in trade agreements, and we already have more than 60 ISDS clauses in various investment agreements to protect British businesses from unfair actions by overseas countries, such as the appropriation of property. Furthermore, the UK has never ever lost an ISDS case, because we are a country that follows the rules and implements our laws and regulations in a fair way. In any case, there is not an ISDS clause in the Australia trade deal.
Dr James Davies (Vale of Clwyd) (Con) [V]
The Snowdonia Cheese Company, which is based in Rhyl but also has footprints in Deeside and Wrexham, is expanding 20% to 30% per annum and is a north Walian success story, combining milk from local farmers with brand Britain to rapidly expand its sales overseas. Australia is a key market for Snowdonia cheese, and, with tariffs lifted, the company stands to do even better. Will my right hon. Friend visit Rhyl to celebrate with the company its enthusiasm for a UK-Australia trade deal?
Elizabeth Truss
This deal is great for UK cheese companies. There is currently an 11% tariff on products such as Snowdonia cheese, which will be removed as part of this deal. I would be delighted to visit the company and celebrate its success. This is what we want to see. Currently, only one in five of our food and drink companies exports. There are huge opportunities overseas and we need to see more and follow the lead of the Snowdonia Cheese Company.
Kate Osamor (Edmonton) (Lab/Co-op) [V]
There is grave concern across the farming industry not just about this deal, but about the potential precedent that it sets for our future deals with New Zealand, the United States, Brazil and Canada. Will the Secretary of State agree as a matter of urgency to publish an assessment of the amassed impact on our farming communities if deals with all those other countries are agreed on the same basis as that with Australia?
Elizabeth Truss
I am very clear that this deal does not set a precedent for other agreements. The reason that we have agreed to this liberalisation is that Australia is liberalising all of its trade with us, including on goods, services, digital and mobility. This is an agreement between two very like-minded partners that share the same high standards and that believe in free trade. Of course, we will be striking different sorts of agreements depending on how much other partners are prepared to open up their markets.
Dehenna Davison (Bishop Auckland) (Con)
While some in this place hark back to a delightfully rose-tinted past, I am pleased that Government Members are really looking to the future. This is the first major trade deal we have signed since we left the European Union. On that, does my right hon. Friend agree with me that this is a fantastic example of how we can use the opportunities available to us as a sovereign trading nation to deliver for Bishop Auckland residents and for people right across our nation?
Elizabeth Truss
This is our first from-scratch negotiated trade deal, and I think we have shown here what we want to do as the United Kingdom. We have gone further than the US or Japan did with Australia in getting the ability for British workers to go to work and live in Australia. We have achieved huge amounts on youth mobility, with under-35s being able to go to Australia for three years with no strings attached, and complete tariff-free access for British goods, with gold standards in areas such as digital services and technologies of the future, including artificial intelligence. I think that benefits my hon. Friend’s constituency, but also the entire United Kingdom.
Dr Philippa Whitford (Central Ayrshire) (SNP) [V]
Antimicrobial resistance is a major global health threat, which led the EU and the UK to ban regular antibiotic use to promote growth in farm animals in 2006. Australia continues to allow antibiotics to be used as growth promoters, without any requirement for farmers even to report multi-resistant bacterial infections. How will the Trade Secretary prevent the import of such antibiotic-fed meat to protect Scotland’s high food standards, our farmers and our future health?
Elizabeth Truss
Let me be absolutely clear that we are not lowering our food import standards as a result of this deal. We are absolutely maintaining that, so no hormone-injected beef will be allowed into the United Kingdom. Let me just be clear: all of the questions coming from the Opposition side of the House seem to imply that we need regulatory harmonisation with everybody we trade with. That is the EU model; we have left the EU. We believe that other countries should be in charge of their own rules and regulations, and we should have the sovereignty to set our own rules and regulations. What Opposition Members seem to be arguing for is global regulatory harmonisation.
Danny Kruger (Devizes) (Con) [V]
My constituency of Devizes is home to some of the best farmers in the world, including the current Farmers Weekly beef farmer of the year, James Waight of Enford farm, so I am very positive about the opportunities for more exports of Wiltshire produce, and I congratulate the Secretary of State on concluding this deal. However, I am even more positive about the opportunity for our farmers to have a bigger share of the UK market. We already import three quarters of the food we eat in this country, and to my mind that is too much, so can she reassure me that this deal will not under-cut farmers in Wiltshire with cheap, low-quality imports?
Elizabeth Truss
I know my hon. Friend believes in both beef and liberty, and I can assure him that that is exactly what this deal delivers. There are huge opportunities overseas for our beef farmers, and that is what we are seeking to open up, of course. We opened up the US market last year, and we now have beef going from England, Wales and Northern Ireland into the United States. I agree with him: I think there are huge opportunities for our farmers, freed from the common agricultural policy, which has held them back, and with a new pro-animal welfare, pro-environment policy here in the United Kingdom.
John Spellar (Warley) (Lab)
Australia, like Canada, is one of our oldest and closest allies, and many of us have family and friends there, so does the Secretary of State share my concern that the anti-trade lobby does not want us to do a trade deal with either of them, nor indeed with the United States and Singapore for that matter? Has she had any indication from the anti-trade lobby about which countries it thinks we can and should do trade deals with?
Elizabeth Truss
What a welcome voice from the Opposition Benches! If only the right hon. Gentleman could be promoted to a position on the Front Bench—[Hon. Members: “Make him leader!”] Or even leader; that is a good idea. If that happened, we might see a more sensible, pro-growth, pro-trade policy on the Opposition Benches. It seems to me that the only group the Opposition want us to do a deal with is the EU. In fact, they want us to rejoin the EU. That is the strong message I am getting from the Opposition.
Aaron Bell (Newcastle-under-Lyme) (Con)
I thank the Secretary of State for her statement and congratulate her and her team on this achievement. The point about free trade, as she said in her statement, is that it is not a zero-sum game; it can be a win-win for us and for Australia, and for exporters such as the ceramics firms in neighbouring Stoke-on-Trent and for consumers such as my constituents in Newcastle-under-Lyme. Can she confirm that, through this deal, Aussie favourites such as wine—including Jacob’s Creek and Hardy’s—swimwear and confectionery will be a much cheaper and that there will be more choice for British consumers, saving more than £34 million in year one?
Elizabeth Truss
My hon. Friend is right. The idea that a free trade deal is simply about who wins and who loses is completely wrong. The whole point is that Australia is an old friend of the United Kingdom and we want to trade more with each other. We want to give opportunities for our young people in both countries. We want to give opportunities for our exporters and thus, all of us can become more successful, have more jobs and more growth in every local area, from ceramics to all the other industries, as well as being able to get their hands on those fantastic Australian goods such as swimwear and Tim Tams and, of course, Australian wine, which I have been drinking quite a lot of this week.
Kenny MacAskill (East Lothian) (Alba)
The Secretary of State has mentioned climate change in earlier answers, but she has not said what assessment has been made of increased greenhouse gas emissions because of shipping the volumes of Australian beef and lamb that their acting Prime Minister is salivating over. Has that assessment been done, or is it anticipated that the price will be paid and offsetting will come from a reduction in ferry and freight traffic in rural parts, particularly in Scotland, which will pay the price as a consequence of this?
Elizabeth Truss
I absolutely refute the hon. Gentleman’s suggestion that Scottish farmers are not going to benefit from this deal. This is a key stepping stone to CPTPP. By 2030, CPTPP countries will be eating 25% of the world’s meat, and I want to make sure they are eating Scottish beef and Scottish lamb. Of course we are absolutely committed to our net zero target. The Australians are committed to a net zero target, and we will make sure those targets are achieved.
Craig Williams (Montgomeryshire) (Con)
I thank my right hon. Friend for engaging with the International Trade Committee, and I look forward to scrutinising the legal text. Welsh beef, Welsh lamb, Welsh dairy, Welsh cheese and Welsh agriproducts are wanted around the world, and my farmers and I are confident that this trade deal and access to CPTPP will benefit them. There are scaremongers bleating on the other side, in an echo of the former Brexit debates, so will my right hon. Friend reassure me and my farmers that they are at the heart of our trade policy, not an afterthought?
Elizabeth Truss
Farming is absolutely at the heart of our trade policy. That is why we have worked to get the US market open to British beef. Yesterday we announced that British poultry will now be going into Japan for the first time. There are huge opportunities in these markets, which generally have higher prices than here in the United Kingdom, and that is where the future of global Britain lies. This is about supporting our farmers with their fantastic products, getting them out into world markets and learning from others with ideas and innovation, not closing ourselves off to the future, which is what the Opposition seem to be advocating.
Ben Lake (Ceredigion) (PC) [V]
The Secretary of State makes much of the so-called transition period secured for farmers, but information on the Australian Government website suggests that the tariff-rate quota for Australian beef will increase nearly tenfold immediately, and that the deal will see the quota for Australian lamb nearly doubled in the first year. If she is serious about wanting farmers to compete and succeed, why, at the very first attempt, has she conceded to such a drastic and immediate increase in tariff-rate quotas that imperils the future of Welsh agriculture before domestic post-EU agricultural policies are even in place?
Elizabeth Truss
The fact is that there is very little Australian beef imported at the moment. What makes much more sense is to compare the amount in year one, 35,000 tonnes, with the amount that we currently import from the EU, which is 230,000 tonnes of beef. I do not remember the hon. Gentleman complaining when we agreed a tariff-free, quota-free deal with the EU, which is exporting far more beef and lamb than under our agreement with Australia. In fact, the likelihood is that, over time, some of those Australian exports will simply replace exports from the EU.
Dr Neil Hudson (Penrith and The Border) (Con) [V]
I welcome the prospect of a productive trade agreement with our closest friends in Australia, but it must be right for both partners. As a vet who has worked on farms in the UK and Australia, I very much welcomed confirmation from the Prime Minister yesterday in the House that this deal will be the first ever to incorporate high animal welfare standards. Will my right hon. Friend reassure the farmers and food producers in Cumbria and across the UK that tariff rate quotas and animal welfare clauses will be used in the agreement to safeguard it, and that the Trade and Agriculture Commission will be constituted in time to allow for meaningful parliamentary scrutiny of this deal, so that we get it right for farmers, producers and not least animals in both our countries?
Elizabeth Truss
I can confirm to my hon. Friend that there will be an animal welfare chapter in the agreement. We have published the outcomes of that in the AIP document that we have put online today. I can also confirm that there will be a transition period of 15 years, which will give our farmers significant time to work on this and to expand exports into the important CPTPP markets. I recognise my hon. Friend’s expertise in this area and would very much welcome his engagement as we approach the signing process.
John Cryer (Leyton and Wanstead) (Lab)
It always amazes me how a legion of Ministers come to the Dispatch Box and pretend they are great independent-minded Eurosceptics and always have been. The reality is that most of them toed the line, voted for remain and then did a bit of quick backpedalling afterwards, like the Minister at the Dispatch Box today. While we are on the subject, she said that the deal would be subject to full parliamentary scrutiny. Does that means it will be subject to primary legislation or not?
Elizabeth Truss
The deal will be subject to full parliamentary scrutiny—exactly the same parliamentary scrutiny that the EU deal was.
Mr Peter Bone (Wellingborough) (Con)
I thank this outstanding Secretary of State for coming to the House to update us on the free trade agreement. Does she agree that all free trade agreements result in lower consumer prices and great opportunities for exporters, make industry more efficient and allow developing countries to develop? In a way, I agree with the previous questioner: let us have a debate on the Australian free trade agreement, and let those of us on the Government Benches vote in favour of it, and let Opposition Members decide whether they believe in Britain or not.
Elizabeth Truss
I fear we already know the answer to whether they believe in Britain or not. This deal will go through the proper parliamentary scrutiny process, through the Constitutional Reform and Governance Act 2010 process, as all international treaties do. I concur with my hon. Friend that the idea that Britain’s future should be in closing ourselves off to the rest of the world—in putting up high-tariff barriers, not innovating, not learning and not sharing ideas—is the recipe for penury, not the recipe for success.
Brendan O'Hara (Argyll and Bute) (SNP)
My constituency overwhelmingly rejected Brexit, because we knew what it would do to our farming and fishing industry. Is the Secretary of State concerned that the Australian farmers are hailing this as a huge victory, while Scottish farmers see it as a complete betrayal? Will she therefore explain to the hill farming communities in my constituency how flooding the UK market with cheap, factory-farmed, inferior produced meat is the golden opportunity that the Prime Minister promised that this deal would be?
Elizabeth Truss
I think the hon. Gentleman’s farmers deserve better than the ludicrous scaremongering that he has been putting forward.
Mr Steve Baker (Wycombe) (Con)
I congratulate my right hon. Friend and all her officials on this excellent deal. Is not the quality of this deal and the speed with which it has been agreed a testament to what can be achieved by high-standards nations when they come together properly as partners and negotiate in good faith? Does she agree that this augurs very well for our accession to CPTPP?
Elizabeth Truss
I agree with my hon. Friend. The fact is that the UK is now open to doing liberalising trade deals around the world. We believe that our farmers, our manufacturers and our services companies are able to compete successfully. We also believe that we are better when we are able to share ideas and trade with our friends right across the globe. I can assure him that this is only the start of our free trade agreement programme. We are working on CPTPP accession. We are working on deals with other countries around the world. We are going to make global Britain a success and make the UK a hub for trade in all areas, from food and drink to manufacturing, services and digital.
Mohammad Yasin (Bedford) (Lab) [V]
Can the Secretary of State confirm that her proposed deal will reduce tariffs on meat produced using growth-promoting antibiotics, which UK farmers are banned from using? If so, how is that consistent with the repeated promises that she and other Ministers have made that our farmers will not be undermined by food produced to lower standards than they are required to meet?
Elizabeth Truss
I reject the argument that standards in Australia are low. The hon. Gentleman seems to be arguing that we should trade only with countries that have exactly the same regulations and rules as the United Kingdom. That is frankly a ludicrous proposition that would lead to us trading with virtually no one. Let me be clear: we are not reducing our import standards and we are not allowing hormone-injected beef into the United Kingdom.
Alexander Stafford (Rother Valley) (Con)
I join other Members in congratulating my right hon. Friend on this great deal. I also thank her for making the first scratch-built deal with a Commonwealth country, Australia being a key member of the Commonwealth. The Commonwealth has historically been neglected by this country over the past few decades. Does she agree that now we can do our own free trade deals outside the European Union, we should focus our efforts on the Commonwealth and keep maintaining our great ties with the Commonwealth nations? We have a great deal of history and cultural issues together, and trade will bring us all together even better.
Elizabeth Truss
My hon. Friend is absolutely right. These are like-minded countries that we have long historical links with. They are our friends and family. I am pleased to say that immediately after this statement I will be meeting the New Zealand Trade Minister to hopefully make further progress on that deal.
Stephen Farry (North Down) (Alliance) [V]
Post Brexit, the EU remains our biggest export market by far. I believe that the overarching trade priority must be to address the remaining non-tariff barriers with the EU beyond the trade and co-operation agreement, including around sanitary and phytosanitary rules. Can the Secretary of State assure me that the SPS chapter of this Australia deal, based around equivalence rather than alignment, will not compromise the UK’s options regarding any future EU veterinary agreements? I believe that it will.
Elizabeth Truss
The New Zealanders have a veterinary agreement with the EU, but they also have their own independent SPS policy. Let me be clear: we are not dynamically aligning with the EU’s SPS policies. In fact, our agreement in principle makes it very clear that both Australia and the United Kingdom have their own independent SPS regimes.
Richard Fuller (North East Bedfordshire) (Con)
There cannot be British citizens in the Australian Parliament but there are Australians in this Parliament.
I, for one, commend my right hon. Friend for securing this deal. She will understand that one of its strategic benefits is to set the basis for a global arrangement on standards in services. What progress did she make towards that strategic objective?
Elizabeth Truss
My hon. Friend is right. In this deal, we have agreement on the free flow of data, advanced provisions on the mobility of professionals, recognition of qualifications and a whole host of positive arrangements in areas such as investment and procurement. By Australia and the United Kingdom working together to set standards alongside other allies, we can help challenge unfair trade practices across the world and make sure that we stand up for good, rules-based trade in areas where the UK leads.
Jim Shannon (Strangford) (DUP)
While I welcome the deal as a signal of things to come when we are unfettered from Europe as an entire nation, not just three out of four regions, I still have grave concerns for our quality lamb and beef sectors, particularly those in Northern Ireland, which are so renowned for quality and high standards and which depend on exports across the world. Last week the Secretary of State, in reply to another question, referred to the contract secured by Foyle Food Group. While it is good news that one person has done that, there has to be more. Will the Secretary of State give assurances over standards, such as the use of antibiotics, which may be notably higher in meat from other countries? Our standards in Northern Ireland are some of the best in the world. We need to retain them.
Elizabeth Truss
Northern Ireland is a very successful exporter of agricultural products, and we want to make sure that there are more opportunities not only in the US market, which is now exported to by Foyle Food Group, but right across the world, including through the CPTPP.
Kevin Hollinrake (Thirsk and Malton) (Con) [V]
I congratulate the Secretary of State on this significant achievement. She has also set an important precedent: as this deal was done from scratch, it potentially sets the basis for all our future trade agreements. Does my right hon. Friend agree that we must include in this agreement something missing from other international free trade agreements around the world—we must establish and maintain a fair and level playing field for UK businesses employing UK people, particularly in the food and farming sector?
Elizabeth Truss
I am pleased that our agreement with Australia will contain a strong labour chapter, and also a small and medium-sized enterprise chapter that will cut red tape on our fantastic SMEs that want to export around the world, cutting their paperwork so that they can get more of their fantastic goods, including, of course, food and drink companies.
Mr Speaker
I will now suspend the House for three minutes to enable the necessary arrangements to be made for the next item of business.
Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Mr Philip Hollobone (Kettering) (Con)
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)
Tonia Antoniazzi (Gower) (Lab)
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)
Stephen Morgan (Portsmouth South) (Lab)
The Secretary of State for International Trade (Elizabeth Truss)
Happy birthday, Mr Speaker; I am sorry that I did not mention it earlier.
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.
Layla Moran (Oxford West and Abingdon) (LD)
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)
Anum Qaisar-Javed (Airdrie and Shotts) (SNP)
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]
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]
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.
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.