Trade Negotiations with Australia and New Zealand

Elizabeth Truss Excerpts

Wednesday 17th June 2020 Written Statements

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

Today, the Government publish their approach to trade negotiations with Australia and New Zealand, as well as providing an update on their approach to accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).



New Zealand and Australia rank among our closest friends. We share a language, head of state and a system of common law, and we have a proud shared history. We also have a common set of values. Like the UK, both nations have always stood up for what is right and maintained a fierce belief in the merits of trade openness, the rule of law, international co-operation, and democratic Government.



But what we have never had with either is a free trade agreement. That can change now the UK has left the EU. Our future success as a country depends partly on using our new-found status as an independent trading nation to strengthen ties with old allies beyond Europe. Ambitious, wide-ranging free trade agreements with old friends like Australia and New Zealand are a powerful way for us to do that and make good on the promise of Brexit.



From a purely economic perspective, deals with both countries can help deliver the things that our people care about—better jobs, higher wages, greater choice, and lower prices.



UK businesses traded £21 billion worth of goods and services with Australia and New Zealand combined in 2019. Trade agreements with Australia and New Zealand could increase UK exports to Australia and New Zealand by around £1 billion—with beverages firms, the automotive industry and professional services among those expected to benefit. Opportunities for these agreements include additional access for UK services and investment, removing tariffs and other barriers to trade in goods and the chance to shape the future of digital trade.



An ambitious UK-Australia trade agreement could increase UK GDP by up to £500 million and UK workers’ wages by up to £400 million. It can enable small and medium-sized enterprises (SMEs) to export more goods and services to Australia, building on the 13,400 UK SMEs that already exported goods there in 2018.



A cutting-edge agreement with New Zealand could increase UK workers’ wages by up to £200 million. New Zealand and the UK also share a particular ambition to work together to promote clean growth through trade—a key contribution to a low-carbon economic recovery.



But perhaps more importantly than the pure economics, both these countries are vital to the UK’s future place in the world and our future sovereign capability.



The pandemic has given oxygen to the politics of protectionism across the globe, and to those who advocate closed, statist economies. Trade agreements with Australia and New Zealand are important in helping our country and the world move beyond coronavirus.



Strengthening ties between nations who believe in free trade is a powerful way to defend the principles of open markets and international co-operation, and in doing show that free trade is still the best way forward for the world after coronavirus.



Strategically, our aim is to place the UK at the centre of a network of modern free trade agreements, turning our country into a global hub for businesses and investors who want to trade in dynamic areas of the world—especially in the Asia-Pacific.



Pivoting towards the Asia-Pacific will help diversify our trade, make our supply chains more resilient and make the UK less vulnerable to political and economic shocks in certain parts of the world. This economic security is important at a time of increased turbulence and uncertainty in the world.



It will also help us forge a leadership position among a network of countries committed to free trade—and strengthen the club of like-minded democracies who share our commitment to advance trade liberalisation, fight protectionism and defend international rules.



Australia and New Zealand are both big players in the Asia-Pacific and share our commitment to free trade. They are also prominent members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—a club of eleven countries representing 13% of global GDP.



The UK had more than £110 billion-worth of trade in 2019 with the 11 countries in the group and we are determined to increase our trade through membership. CPTPP will help us diversify our trade and join a strong, modern trade agreement between countries committed to free and fair trade in the Asia-Pacific region and beyond. Both Australia and New Zealand support our membership, and free trade agreements with both countries would be an important step towards our eventual accession.



Today, the Department for International Trade is publishing three documents:



UK-Australia Free Trade Agreement: the UK’s strategic approach

UK-New Zealand Free Trade Agreement: the UK’s strategic approach

An update on the UK’s position on accession to the Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTPP).

We will be placing copies in the Libraries of both Houses. For Australia and New Zealand, these documents include:



The Government’s negotiating objectives for each trade agreement.

A scoping assessment providing a preliminary assessment of the potential long-term economic impacts for each agreement.

The Government’s response to the public consultations on each agreement, setting out how these have informed our policy development.

As with our whole trade agreement programme, these agreements need to work for the UK. We have been clear that future agreements with Australia and New Zealand must work for UK consumers, producers and companies. We remain committed to upholding our high environmental, labour, food safety and animal welfare standards in our trade agreements with these countries. The Government have been clear that when we are negotiating trade agreements, we will protect the national health service. Our objectives reinforce this.



We are engaging with the devolved Administrations, Crown dependencies and overseas territories to ensure that we develop agreements that works for the whole of the UK. The Government are committed to transparency and we will continue to ensure that parliamentarians, businesses, and the range of civil society stakeholders have access to information on our trade negotiations.



Negotiations with Australia and New Zealand will be carried out by video conference, ensuring that talks can progress during the coronavirus pandemic. We will continue to conduct talks remotely until it is safe to conduct talks in person.

[HCWS297]

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (Accession)

Elizabeth Truss Excerpts

Wednesday 17th June 2020 Commons Chamber

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

Today’s launch of trade negotiations with Australia and New Zealand is an historic moment for this country. When we left the EU, we did so on the promise of trading more with friends and allies across the world. Deals with Australia and New Zealand are a powerful expression of our new-found independence and our intent to build a global Britain. I say to our old friends: Britain is back. These agreements will strengthen ties with like-minded countries who share our values and our commitment to free trade. They will create more opportunities for British businesses and more choice for British consumers, and provide us with greater economic security. Strategically, they will also help us to forge closer economic ties with the wider Pacific region.

The foundations for both deals are strong. We already have close ties in areas such as cars, steel, services, and food and drink, and 31,000[Official Report, 24 June 2020, Vol. 677, c. 4MC.] small businesses export to Australia. One in every five bottles of wine drunk in Britain comes from Australia. Free trade deals can build on those successes, boosting UK exports to both countries by around £1 billion. They will also show the rest of the world that Britain is prepared to defend and advance the ideals of free trade and freedom.

Deals with Australia and New Zealand are a key step towards membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, one of the largest free trade agreements in the world. Along with Japan, with whom we launched trade negotiations last week, both Australia and New Zealand support our membership, and today we have formally announced our intention to pursue accession to the agreement. We do so for three reasons. First, we do so to secure more trade and investment, to help our economy to overcome the challenges posed by coronavirus. Hitching ourselves to the fastest-growing part of the world will help to deliver on the growth and prosperity we urgently need. Secondly, it will help to diversify our trade and supply chains, to make our economy more resilient and open up new export opportunities in industries such as tech and digital, food and drink, and automotive. Thirdly, it is an important part of our strategy to turn the UK into a global trading hub. We want to put the UK at the centre of a network of modern free trade agreements.

CPTPP is a high-standards agreement, spanning four continents. Its members are 11 like-minded nations, all of whom believe in the principles of free trade, international co-operation and the rules-based system. Our trade with individual CPTPP countries is already worth more than £110 billion. By joining the agreement, we can open up even more opportunities for our go-getting businesses and turbo-charge trade and investment. Membership will help us to sell more British buses to Mexico, more life-saving antibiotics to Vietnam and more medical technology to Peru, and, of course, it will help us to export more of our world-class food and drink, including more Welsh lamb to Japan and Scotch whisky to Canada.

We firmly believe membership will support all UK businesses, not least the small businesses who have suffered most during coronavirus. Access to the agreements dedicated SME chapter will ease barriers to trade for small businesses by cutting tariffs and reducing red tape. It will give thousands of businesses access to this most dynamic group of markets and couple Britain to one of the most vibrant economic regions in the world. We have already explored membership with all 11 countries, in line with CPTPP’s accession process, and we are now moving to the formal stage.

At a time of unprecedented global upheaval, now is the time to look out to the world, not turn our backs on it. It is a time to be ambitious and seek trade deals with nations who share our values and our commitment to free trade. Agreements with New Zealand and Australia and are an important step towards our vision of a truly global Britain—a Britain that is once again a fierce campaigner for free trade; a Britain that leads by example. Membership of CPTPP is the next logical step. Joining the agreement would show the rest of the world that we are back as a proud, independent nation, prepared to look far beyond our own shores. 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 always keeping the House up to date on the progress of her trade negotiations. On my count, in those six weeks, the Secretary of State has formally launched new trade negotiations with four different countries—the US, Japan, Australia and New Zealand—on top of the 16 negotiations that she is already leading to roll over our EU third country agreements, all of which, according to her own timetable, she wants signed and sealed within the next six months. In addition, we now have today’s statement committing the Government to begin negotiations on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP—I am going to pronounce it “C-tip” for short.

As the Secretary of State said, CPTPP currently comprises 11 members, accounting for 13% of global GDP, making it the third-largest free trade area in the world. So in theory, the UK becoming a member sounds like it deserves the fanfare that the Secretary of State has given it today. However, let us now look at those 11 countries. With seven of them, we already have free trade agreements, courtesy of our membership of the EU—that is Japan, Canada, Singapore, Mexico, Chile, Peru and Vietnam. With two of those—Chile and Peru—roll-over deals are in place to continue free trade beyond December. With the other five, bilateral negotiations are still ongoing to get roll-over deals agreed. That is seven out of the 11 taken care of.

Then, just this morning, the Secretary of State formally launched free trade negotiations with another two CPTPP members, Australia and New Zealand. Just to be clear, according to the Secretary of State’s plans, by the time we join CPTPP, we should already have bilateral free trade deals in place with nine of its 11 Members, accounting for 95% of the UK’s current trade with the CPTPP area. In fact, the only new free trade agreements that we stand to gain from membership of CPTPP are with the kingdoms of Malaysia and Brunei, which, between them, accounted for just 0.37% of the UK’s total world trade last year.

I ask the Secretary of State: what are the benefits of joining CPTPP for UK trade, growth and jobs, over and above the benefits that she has already forecast from trade deals with Japan, Australia and the seven other CPTPP countries with whom bilateral negotiations are already complete or still in train? Could she then tell us how these potential benefits stack up against some of the potential risks of CPTPP membership? First, will the UK be subject to the provisions in CPTPP for investor state dispute settlement, with all the risks that that poses to our ability to protect public services, consumers and the environment from corporate profiteers? Secondly, will membership of CPTPP demand the sharing of our citizens’ data, including health records? If so, how will that data be protected? If other CPTPP members are not compliant with the General Data Protection Regulation, how will that affect the ability of UK service companies to access EU citizens’ data?

Thirdly, will CPTPP membership oblige us to accept a “list it or lose it” approach to private competition in the public sector? If so, can the Government guarantee a blanket exception for our NHS and other essential public services? Fourthly, will we be obliged to accept the regulatory standards on animal welfare and food production established under CPTPP and, if so, are they compatible with other existing standards?

Finally, will the Government negotiate the terms of our CPTPP membership to benefit key British trade sectors, or will we have to accept the existing terms of an agreement shaped in the interests of others? I raise those questions not from confirmed opposition to CPTPP but simply because we need to know whether the risks are worth taking if the only distinct benefit is the prospect of free trade with Malaysia and Brunei. That debate has not yet been won, and I urge the Secretary of State to reopen it for consultation with industry, unions and other stakeholders who did not have the time to study the proposals properly during the busy Brexit negotiations in autumn 2018.

In closing, we cannot divorce this debate from that around the still busy Brexit negotiations. The businesses I speak to around the country simply cannot understand why the Government are spending so much time and effort trying to negotiate international trade deals of relatively low value when they have yet to secure our continued trade with Europe. I am all for expanding the 0.3% of global trade that we share with Malaysia and Brunei, which is all the statement ultimately amounts to, but as the 47% of our trade that depends on Europe is hanging in the balance that is where the Government’s priorities should lie.

[Elizabeth Truss]

I am not surprised that the right hon. Lady is trying to do down our efforts to secure trade agreements with the vast majority of the world and join some of the most exciting free-trade areas in existence, because the Opposition refused even to support trade deals with Canada and Japan when we were members of the EU. She talked about a continuity agreement, but she did not even support signing it in the first place. Only the Labour party could call low value a trade area where the UK has £100 billion-worth of trade. I do not know what mathematics or economics that relates to, but it is certainly none with which I am familiar.

Let me be clear with the right hon. Lady. The deal of which we would be part with CPTPP goes much further than the existing roll-over agreements that countries such as Canada have with the EU. For example, CPTPP has an advanced digital and data chapter. The UK is a data and digital superpower. We are third in the world for the number of billion-dollar tech companies, after the US and China. CPTPP has an advanced digital and data chapter to which the EU would not sign up. That chapter gives us access to that in Canada, Mexico, Peru and Chile across the agreement.

This agreement removes 95% of tariffs—again, going further than many of the roll-over agreements. We are talking about joining one of the most advanced trade agreement areas in the world. The measure goes far beyond what the EU was willing or able to agree, which is a huge opportunity for the UK. It is completely wrong to suggest that this is about Malaysia and Brunei, although I do not deprecate Malaysia, which is a fast-growing market and a good trade opportunity for the UK.

To say that CPTPP is simply equivalent to the deals that the EU is negotiating with those nations betrays a lack of understanding of the text of these trade agreements. I am very happy to share with the right hon. Lady the additional chapters in question.

The right hon. Lady suggested that I will close all these trade deals in the next six months, and I am very flattered by her belief in my superhuman power to do so. I have not said that we are going to close all the trade deals we are negotiating in the next six months. For example, we have set no timetable on a United States trade deal, so it is simply not true to say that we have a target of closing all of them in the next six months.

We will do deals that are good for Britain, and we will be prepared to walk away if we do not get what the UK wants. For example, the national health service is not on the table and the price we pay for drugs is not on the table. [Interruption.] The right hon. Lady has asked me a series of questions, and she might listen to the answers, rather than chatting to her colleague on the Front Bench, the hon. Member for Sefton Central (Bill Esterson).

I am very clear that we will not lower our food import standards. We have an excellent independent agency, the Food Standards Agency. As part of the withdrawal agreement, all of our import standards, including those on chlorinated chicken and hormone-injected beef, will be on the UK statute book, and it would take a vote in Parliament to overturn them. We are not negotiating that as part of any of these trade agreements. It is simply scaremongering from the right hon. Lady.

We have a huge opportunity here to forge a new future for global Britain, and we are not going to listen to the scaremongering and negativity from the Labour party. We are going to take those opportunities, and we are going to move forward.

[Dr Liam Fox (North Somerset) (Con)]

I very much welcome my right hon. Friend’s statement. If Britain joins CPTPP, it will create a trade grouping of roughly the same size as the European Union, now that Britain has left, but without the political restrictions on the UK and with some new strategic advantages, not least vis-à-vis China. Of course, trade is not just about trade agreements, so can my right hon. Friend tell us what help will be given to British exporters to help them get into the markets of CPTPP, both here and overseas? Without trade, trade agreements are no more than a piece of paper.

[Elizabeth Truss]

First, I thank my right hon. Friend for all the work he did as International Trade Secretary in pursuing this ambitious agenda. It is great that I have the Under-Secretary of State for International Trade, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), the Minister responsible for exports, on the Front Bench with me, and we are working on a new export strategy precisely to take advantage of the new trade agreements we are negotiating. One thing we are negotiating in all those agreements is a dedicated SME chapter to make it easier for our small and medium-sized enterprises to get through procedures, to get rid of a lot of the red tape and to get into those overseas markets. We will be spending this year helping those companies to do that.

[Stewart Hosie (Dundee East) (SNP)]

I thank the Secretary of State for her statement and for early sight of it. I agree with her that forging trade links with the wider Pacific region is a good thing to do. I would also say that membership of CPTPP, if we can join on the right terms, may help to claw back some of the enormous losses that will result from Brexit.

At its heart, however, the Secretary of State’s statement was little more than hopeful rhetoric about the UK’s future trade prospects, and those prospects are by no means certain, as is evidenced by the rather modest rise in Canadian exports to partner countries. Her statement did not tell us in any detail what is actually proposed to be discussed, and it does rather beggar belief that she did not see fit to report to the House the challenges, difficulties and sticking points that she foresees in future negotiations; nor, I suspect, has she given any comfort to those who raised many significant concerns over accession in the last consultation.

What limits will the Secretary of State set in her negotiations on lowering barriers to allow for greater market access for foreign services suppliers? What limits will she place on the removal or weakening of behind-the-border non-tariff barriers, and what about important things such as workers’ rights, product safety regulations and food quality standards? What action does she propose to ensure that the monitoring of partner countries adheres to core International Labour Organisation standards, and that freedom of association is allowed in partner countries? What action will she take to avoid product dumping via partner countries becoming a very real problem? How will she allay concerns over investor-state dispute settlement provisions reducing the Government’s ability to legislate? Unless and until those and many other concerns are fully and transparently addressed, huge anxiety will remain in the public about whether CPTPP is even right for the UK.

[Elizabeth Truss]

What we are announcing today is our intention to accede, and we are talking to all 11 partners of CPTPP to have those preparatory discussions. Our formal application to CPTPP will require 11 different market access agreements to be sought with all the separate nations with which we are negotiating. We have absolutely no intention of lowering our food safety, environmental or labour standards, or any other standards. We are a high quality, high standards nation, and we want to work with the CPTPP countries on that basis. We believe in free trade and the rules-based system, and that is very much what CPTPP stands for.

The hon. Gentleman asked about investor-state dispute settlement systems. We have signed up to a number of those already, in a series of investor agreements that the UK has already made. Indeed, there are investor provisions in the Comprehensive Economic and Trade Agreement, which we are seeking to roll over with Canada. We will always ensure that the UK Government have the right to regulate, that we have control of our public services, and that the NHS is not on the table. If we do not get those things in any of the agreements we try to negotiate, we will simply walk away.

[Alicia Kearns (Rutland and Melton) (Con) [V]]

There can be no doubt that my right hon. Friend is doing all she can to seize every possible opportunity as we grasp our new freedoms, not least for Melton’s stilton and pork pie producers. Does she agree that our joining CPTPP is important if we are to strengthen trading relationships with allies who respect international norms and values, better to isolate rogue trading practices by states that use trade as a weapon?

[Elizabeth Truss]

My hon. Friend make an extremely important point. One benefit of CPTPP is that it is a free-trade, high-standards arrangement with countries that follow the rules. We want to create alliances with like-minded allies across the world, and ensure that that is the way the world trade system operates. It is also important to diversify our trade, so that we are not dependent on single countries or regions for imports, or for where we export to. We must have options as a country, and be able to work with those who share our values.

[Sarah Olney (Richmond Park) (LD)]

Many people in my party have long had their suspicions about the extent of the Government’s plans after Brexit, but I do not think that any of us, even in our wildest dreams, imagined that leaving Europe meant relocating to the Pacific. Given that the Government have such limited time and bandwidth while dealing with the pandemic, is this the right time to be entering into negotiations to join a partnership that currently represents just 8% of our exports? We are still a long way from agreeing a trade partnership with the EU, which represents 45% of our exports. What are the Government’s priorities?

[Elizabeth Truss]

As we seek to recover from coronavirus, it is incredibly important that we protect and expand our exports, which represent 31% of the UK economy and include vital industries such as the steel industry, the car industry and the food and drink industry. We must find new markets for those exports and link to fast-growing parts of the world. We must also protect against protectionism. One of the benefits of signing free trade agreements is avoiding tariffs on our goods and services, and CPTPP represents 13% of the global economy—16% if we add the UK—and includes fast-growing parts of the world. At a time when we are seeking to revive the economy, this is exactly the type of agreement we should be joining. In parallel, of course, we are negotiating with the EU to secure a good agreement with it. It is not an either/or; we need to be trading with all the world.

[Craig Williams (Montgomeryshire) (Con)]

Montgomeryshire has many Japanese-owned manufacturing businesses and the UK’s largest livestock market ready to ship Welsh lamb across the world at the drop of a hat. I welcome my right hon. Friend’s statement. Given that Japan accounts for nearly half of the GDP of this partnership, what outreach have we done with our close economic friends and allies, what are the Japanese Government saying about our accession, and what support can we rely on from our allies to help us accede to this great partnership?

[Elizabeth Truss]

Japan is a very important partner of the UK, and we are separately negotiating our bilateral trade agreement, but when I spoke to Minister Motegi, who is responsible for negotiating on Japan’s behalf, he was very clear that he supported the UK’s accession to CPTPP. We are also pursuing accession with Australia and New Zealand. These bilateral partnerships are a way of accessing that wider arrangement in Asia- Pacific. My hon. Friend is right—there are huge export opportunities for Britain into Japan and huge investment opportunities for British firms into Japan and for Japanese firms into the UK.

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

I too welcome the negotiations the Secretary of State has announced with Australia and New Zealand. New Zealand is an interesting case, because CPTPP includes provisions for an investor-state dispute settlement, allowing major corporations to challenge the ability of Governments to regulate in areas such as environmental protection. Will she follow the example of New Zealand and seek to exclude the UK from this mechanism?

[Elizabeth Truss]

In the negotiations, we are very clear that we will not allow any agreement to interfere with our right to regulate in areas such as the environment, food standards and public services such as the national health service. That is a clear red line for us.

[Dean Russell (Watford) (Con)]

In my constituency, we do not have any shipping ports, but we have plenty of computer ports that connect us to entire world. Can my right hon. Friend assure me that the CPTPP negotiations and discussions, and all the work being done, will enable all the digital businesses in my constituency to trade gladly around the world?

[Elizabeth Truss]

My hon. Friend is right that the advanced digital and data chapter in CPTPP will provide huge confidence for those seeking to buy products in that region from British businesses. It is extraordinary that the Labour party does not think that is of any value. It does not think that the EU, which is prepared to sign these digital and data chapters, has agreements any different from the type of agreement we are seeking to accede to, missing out a huge part of the UK economy.

[Jeff Smith (Manchester, Withington) (Lab)]

As my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) said earlier, the original consultation on membership of this partnership took place over a three-month period in autumn 2018, when most of industry and this country was preoccupied with the Brexit negotiations. Would it not be sensible now to have a second consultation so that stakeholders can have a proper chance to assess and comment on the implications for them?

[Elizabeth Truss]

We have conducted a consultation already. We gave businesses a chance to respond. But rest assured we will engage with businesses throughout this process through our system of expert trade advisory groups, which consult specific industries on the aspect of agreements they relate to. We are negotiating these deals precisely to benefit British businesses—to get the tariffs removed on cars, whisky and so on. We will consult businesses throughout this process to make sure every sector and area of the UK benefits.

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

Does my right hon. Friend agree that Scotland has a great trading history, and that its historical links with Japan, Australia, New Zealand and Canada place it well to take advantage of the negotiation that she is announcing today? Do quality products such as Scotch whisky not give us an advantage? This is about quality; it is not about reducing standards.

[Elizabeth Truss]

Scotch whisky is a hugely successful export right around the world, including to Japan, Australia and New Zealand. One of my aims in these negotiations is to get the tariffs removed on this excellent product so that people can drink even more of it around the world. My right hon. Friend is right about Scotland’s proud trading history. I hope that the businesses and people of Scotland listen to him rather than the negative voices we heard from the SNP.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We now go to Stirling, to Alyn Smith.

[Alyn Smith (Stirling) (SNP) [V]]

An apposite time to make my contribution, Madam Deputy Speaker—thank you.

I have to stress that Scotland’s farmers are united in their concern about what they are losing from leaving the European Union rather than otherwise, however much breathless vacuity can be presented about the ambitions of these trade deals. They are deeply concerned, to the extent that the Secretary of State is having to misrepresent the views of, particularly, the National Sheep Association. I refer to her article in The Scottish Farmer newspaper last week. Phil Stocker, the chief executive of the National Sheep Association, took her to task on this, saying that her misrepresentation of its position as in favour of her plans was

“a result of either laziness, or manipulative intentions.”

Can she tell us which it was, and can she assure the House that she will not do it again?

[Elizabeth Truss]

I can assure the House that for every sector of agriculture there are benefits to be found from the trade deals we are negotiating around the world. Currently, UK lamb is not allowed into the US market due to a ban. I want to get that ban removed. The US is the second largest importer of lamb in the world. That is a huge opportunity. Likewise, we will make sure that we maintain our standards, that we do not lower our import standards, and that we protect British farming against any unfair competition.

[Jason McCartney (Colne Valley) (Con)]

The Secretary of State is well aware of my passion for maintaining our strict animal welfare and food standards. She also knows what a challenging time it has been for my dairy farmers and my sheep farmers during this covid crisis. What trading opportunities with New Zealand and Australia does she see for them as we go through the CPTPP?

--- Later in debate ---

[Elizabeth Truss]

My hon. Friend is a huge champion for his farmers. What we have seen in British agriculture is increasing success in exports. We are now a net exporter of dairy products for the first time in recent years. We are getting increasingly large exports of all kinds of meat products, dairy products, and finished food and drink products. He can be assured that when we are negotiating the specific market access schedules in CPTPP, we will always be looking out for British farmers, making sure that they are getting the benefit of the deal.

[Hywel Williams (Arfon) (PC) [V]]

Nearly half of the UK’s carbon footprint probably comes from our trade overseas to satisfy UK demand. What impact assessment has the Secretary of State made of the environmental costs of expanding UK trade into the Pacific region?

[Elizabeth Truss]

We are very committed as a country to our zero carbon target by 2050, and we are working hard on the new COP—conference of the parties—summit to make sure that we achieve that. In all the trade negotiations we are conducting, we want to have strong environmental protections protecting our environmental legislation in the UK but also reduced tariffs on low and zero carbon goods.

[Mark Pritchard (The Wrekin) (Con)]

I congratulate the Secretary of State on the good progress she is making with the bilateral trade agreement with Japan, which will be very welcome to many people employed by Japanese companies in Shropshire. I welcome her announcement and, indeed, the announcement by the Prime Minister on Australia and New Zealand today. Specifically on the partnership agreement that she has announced, could she give the House an idea of an indicative timetable—when she thinks it might be signed and whether she thinks that will be quicker than many of the trade deals that the European Union has signed?

[Elizabeth Truss]

I thank my hon. Friend for his overall comments. In terms of the timetable for CPTPP, it is an agreement with 11 members, so inevitably that means that we have to be in discussions with all those 11 members and seek agreement with all 11 members. The convenient aspect of course is that there is already an agreement fleshed out, and we will be working within that framework. We are already in discussions with all 11 members. We are negotiating bilateral deals with some of them. When we are in a position, we will put forward our formal application, and I hope we can make rapid progress. There certainly is enthusiasm about having the UK as part of CPTPP, because people see us as a high-standards country that believes in free trade and the rules-based global system. I will reach an agreement as quickly as I can, but I will make sure that at all points we get a good deal for British industry and that we do not cross any of our red lines.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. If everyone who has expressed an interest in speaking is to have the chance to do so, we will have to go rather faster. I make no criticism of the Secretary of State, who has had to answer complicated questions and give lengthy answers. If the questions are shorter, then the answers can also be shorter, and then everyone will get a chance to come in.

--- Later in debate ---

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Given the Secretary of State’s ambition to have tariffs removed, will she tell us why nine of 11 products—including cheese, honey and butter—that the EU can export tariff-free to South Korea are subject to tariffs for this country under the UK-South Korea continuity agreement, which the Government have negotiated?

[Elizabeth Truss]

It is my aim in all our agreements to secure the maximum tariff-free access for our products, but in any given agreement there are always trade-offs. My key priority is making sure that we do not cross any UK red lines.

[Gareth Davies (Grantham and Stamford) (Con)]

Does my right hon. Friend agree that, looking across the world, free trade agreements have been shown to reduce inequalities, create jobs and boost incomes? As such, the opportunity is great from these trade deals with fast-emerging countries, both for the people of Grantham and Stamford and for Britain as a proud global independent nation.

[Elizabeth Truss]

My hon. Friend is right. Free trade has lifted a billion people out of poverty in the past few decades, and that is a record that no other policy prescription can match.

[Carla Lockhart (Upper Bann) (DUP)]

As an integral part of the United Kingdom, businesses and people in Northern Ireland, including my constituents in Upper Bann, want to benefit from the deal in the same way that any other constituted part of the UK can. Will the Secretary of State assure me that the Northern Ireland protocol will not affect Northern Ireland exporters’ ability to benefit from any trade deal and Northern Ireland businesses and consumers being able to import goods covered by such a deal?

[Elizabeth Truss]

I can assure the hon. Lady that we are working very closely with the Northern Ireland Executive to make sure that Northern Ireland is fully part of any trade deal we agree, and we are specifically consulting Northern Ireland businesses to make sure that they benefit.

[Robert Courts (Witney) (Con)]

I warmly welcome the statement today. The Pacific region has a growth rate that is double that of the EU. Does the Secretary of State agree that, while the modern dynamic free trade agreement that is sought stands to boost trade enormously, it is not all about numbers? We should also be welcoming the chance for close strategic ties with friends who share our interests.

[Elizabeth Truss]

My hon. Friend is absolutely right. We want to pursue a trade policy that is economically beneficial to the UK and levels up our country, but helps achieve more resilience for our country, protects us against protectionist urges that we are seeing around the world and diversifies our trade away from dependence on single nations or regions that we might come to regret.

[Chris Bryant (Rhondda) (Lab)]

It is a bit difficult not to come to the conclusion that, basically, the Government want to form new trade deals with countries that are less financially significant to us in terms of trade but speak English. If we add up all the trade that the UK does with the countries in the Commonwealth, it does not add up to the trade that we presently do with France and Germany, does it?

[Elizabeth Truss]

I could read to the hon. Gentleman the list of 11 countries—I assure him that many of them do not speak English as their main language, but that is not really the point. The point is that we want to be the centre of a global trading network. That network, of course, includes our friends and partners in the European Union. It includes the United States and the Americas. It includes the Asia-Pacific region as well. We can have all those things by creating this network of free trade agreements, and we are making rapid progress on that.

[Claire Coutinho (East Surrey) (Con)]

The Indo-Pacific region represents 50% of international trade and is the fastest growing region in the world. Does my right hon. Friend agree that being able to accede to the CPTPP, with all its opportunities for our strong services economy, highlights the Brexit benefit of having an independent trade policy that we can pursue on our own terms?

[Elizabeth Truss]

I completely agree with my hon. Friend. She is right that we are able to pursue this policy because we are not a member of the EU, and we are able to sign up to things, such as an advanced digital and data chapter, that the EU does not want to be part of. We have recently launched our new network of digital trade emissaries around Asia precisely to push the case of British business.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

While part of the EU, quotas are imposed on imports of New Zealand lamb. With the free market deal that the UK Government are chasing, and their willingness for a no-deal crash out of Europe in December, do Scottish farmers not face a double whammy of greater imports of New Zealand lamb and tariffs being applied to lamb exported to the EU?

[Elizabeth Truss]

I point out to the hon. Gentleman that New Zealand is not actually using all its current quota of lamb, because there is massive demand for New Zealand lamb around the world, particularly in the Asia-Pacific region, which is closer to production. I can assure him that, when we are negotiating these deals, we will make absolutely sure that British farmers do not have their standards undermined.

[Richard Graham (Gloucester) (Con)]

Our application to accede to the Trans-Pacific Partnership, alongside our application this week to become a dialogue partner in our own right to the Association of Southeast Asian Nations, highlights our commitment to Asia, as the Secretary of State has said. It is worth noting that the Kingdom of Brunei Darussalam is both party to the TPP and in the chair of ASEAN next year. Does she agree that it would also be a huge game changer if the United States of America decided to become part of the Trans-Pacific partnership, as it has already mooted?

[Elizabeth Truss]

I congratulate my hon. Friend on all his excellent work as trade envoy to countries such as Malaysia. I know that he is a big fan of Brunei and visiting it and working with it. In terms of the Americans’ trade strategy, I would not presume to advise them on which networks they should seek to be part of. It is certainly the case that the TPP is a very high-quality agreement, and we want to make it one that more members who believe in free trade and the rules-based global system want to join.

[Madam Deputy Speaker (Dame Eleanor Laing)]

If we go a bit faster, we will be able to get everybody in.

[Chris Stephens (Glasgow South West) (SNP)]

We all want the highest standards. Can the Secretary of State explain a bit more the road map to ensure the highest food standards? Will the Government look again at setting up a food standards commission when it comes to trade deals?

[Elizabeth Truss]

We already have the Food Standards Agency, which is specifically established as a non-ministerial department to ensure independence over high-quality food standards. Any change to British food standards would need to be voted on by the UK Parliament. That is very strong protection.

[Henry Smith (Crawley) (Con)]

This is great news for global Britain. The Trans-Pacific partnership contains countries stretching from the Arctic to the Southern ocean, from South America to Asia. I very much welcome today’s start of talks with Australia and New Zealand on a trade agreement, but is this not also a good opportunity to engage with emerging markets, particularly in south-east Asia?

[Elizabeth Truss]

It is correct to say that there are major opportunities with Australia and New Zealand. As well as being champions of free trade in that region, they are extremely well-connected to the Pacific market, so it is an opportunity to reunite with our old friends and allies, as well as to reach out to new trading partners across that very important region of the world.

[Marco Longhi (Dudley North) (Con)]

I very much welcome the statement by the Secretary of State to the House today. Does she agree that what this country and British business need is confidence at this time of uncertainty? They need messages that bring about greater opportunity for diverse trade and increasing volumes of trade and that do not compromise on our stance of free trade wherever possible. They do not need the opposite messages that we are hearing today, which destroy confidence in British business.

[Elizabeth Truss]

My hon. Friend is right. There are people in this Chamber who seek to do our country down and say, “We can’t achieve this. We can’t sign up to these deals. It is all too difficult. Let us have another consultation and delay it for another few years.” Then there are those people who are go-getters, who want to help businesses in their constituencies to succeed, and who want to help us recover from coronavirus. I know which side I am on.

[Stephen Flynn (Aberdeen South) (SNP)]

Let us be clear: irrespective of what the Secretary of State delivers, she will be unable to replicate the economic success of our membership of the European Union, but, if she is intent on going down this path, can she give a cast-iron guarantee to UK manufacturers and producers that they will not have to compete with cheap goods being dumped in the United Kingdom?

[Elizabeth Truss]

That is a bit of a cheek coming from a party that wants to separate from our extremely successful Union here in the UK. We want a good trade deal with the EU, just as we want a good trade deal with CPTPP.

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

Unlike SNP Members, I very much welcome the opportunities of international trade not just for Scotland, but for the entirety of the United Kingdom. I know that the Government recognise the importance of Japan to Scotland and to UK farmers, particularly to those farmers who export malting barley and grain. Does the Secretary of State agree that a new trade agreement with Japan not only helps Scotland’s farmers to exploit those opportunities, but potentially gives us access to that part of the world?

[Elizabeth Truss]

We are the second largest malting barley exporter to Japan after Canada and we have fine products both in Scotland and in my own region of East Anglia. Getting access to that wider CPTPP agreement, as well as reducing the tariffs in Japan, will give more opportunities to those fantastic producers.

[Kenny MacAskill (East Lothian) (SNP) [V]]

With the grave threat posed to our own public services, let alone to those of developing nations, by the investor-state dispute settlement, will the Secretary of State commit to seeking an exemption in future trade deals, as has been achieved by New Zealand through bilateral negotiations with CPTPP?

[Elizabeth Truss]

I have already said that I will not sign up to something that threatens our right to regulate here in the UK.

[Dr James Davies (Vale of Clwyd) (Con)]

The CPTPP comprises a dynamic mix of nation states, from like-minded Commonwealth countries to rapidly developing economies. Does my right hon. Friend believe that the UK’s accession will encourage further expansion of the trade bloc to the benefit British exporters?

[Elizabeth Truss]

My hon. Friend is right that it is an agreement of which many people want to be a part. In fact, other countries are looking to accede alongside the UK. One reason that our friends and allies across the world want us to join is that they see the UK as a key asset to CPTPP.

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

Will the Secretary of State ensure that product, environmental, health and workers’ standards do not fall below EU standards in order not to jeopardise an EU trade deal that is 47% of our trade? Equally, will she seek an exemption, as New Zealand has, from the investor-state dispute settlement, so that, in the event that we want to raise our standards of health and environment above EU standards, we will not be sued by big corporations? She has given a verbal undertaking, but will she put that into action and seek an exemption now?

--- Later in debate ---

[Elizabeth Truss]

I have been clear about my position on ISDS, but in the EU negotiations that are being conducted by our lead negotiator, David Frost, we are very clear we are not having a level playing field with the EU. One of the reasons for Brexit is so we can decide our own regulatory policy independently.

[Simon Fell (Barrow and Furness) (Con)]

I warmly welcome my right hon. Friend’s statement. The agreement goes much further than the EU-Japan economic partnership agreement of 2018 and there is much to like about it, not least for businesses in Cumbria that want to trade out and into the world. What assurances can she give me that we will not go back on our high food and environmental standards in joining this agreement?

[Elizabeth Truss]

We are absolutely committed to our high standards. That is one of the reasons why countries and people around the world want to buy British products. They trust British products, they trust the Union Jack flag, and they appreciate what we offer. Let me be clear: any change to domestic legislation resulting from any trade agreement would need to be voted on by this House, so there is a clear parliamentary process to make sure that any change has full support, but we will not be lowering those standards.

[Tom Hunt (Ipswich) (Con)]

On the topic of East Anglia, I am sure my right hon. Friend will recognise the importance of a port at Felixstowe and how it needs to have the infrastructure necessary to step up to help Britain achieve its global potential. Will she commit to working with Highways England to make sure that its ridiculous plan to close a bridge when it is windy is stopped, so that we never have to go through another windy period in winter when our town grinds to a halt because road freight from the port of Felixstowe has to go through a town centre and not across a bridge?

[Elizabeth Truss]

There is no greater supporter of East Anglian infrastructure than me.

[Fleur Anderson (Putney) (Lab)]

My constituents in Putney are very worried about the implications of the partnership and all the Brexit agreements for the NHS. Can the Secretary of State guarantee that the NHS and other key public services will not be opened up to competition under the negative list system in the trans-Pacific partnership?

[Elizabeth Truss]

The NHS is not on the table. The price the NHS pays for drugs is not on the table.

[Andrew Percy (Brigg and Goole) (Con)]

I welcome the accession to the CPTPP, which could be good news for UK dairy farmers. Canada, which is a member, has a lot of unused quota and there are not many other dairy producers in the partnership, so there is a huge opportunity for UK dairy there. More important, though, is transitioning the EU-Canada comprehensive economic and trade agreement, because this will be a medium to long-term ambition. Where are we on the transition arrangement for CETA?

[Elizabeth Truss]

I had a good conversation with my Canadian counterpart, Mary Ng, last week to talk about, first, our mutual commitment to free trade, but also how we are going to improve our trading relationship with Canada.

[David Linden (Glasgow East) (SNP)]

One of the reasons why the UK Government and in particular Tory Brexiteers were salivating over the idea of Brexit was about reducing red tape and cutting lots of regulation, so clearly when embarking on trade agreements the Government are going to compromise on things like food standards and workers’ rights. Will the Secretary of State tell us up front which of them she will throw on the Brexit bonfire, like the Brexiteers wanted?

[Elizabeth Truss]

It is a shame that the SNP appears to be intent on scaremongering rather than looking at the opportunities for Scottish farmers and businesses from this excellent deal.

[Ben Everitt (Milton Keynes North) (Con)]

Conservative Members are optimistic and positive about the opportunities ahead. We have heard about the opportunities for our dairy farmers, but is my right hon. Friend aware of the opportunities for our arable sector in striking a deal with the Japanese, whose desire for British malt is insatiable, at a time when so much malting barley is sat in the sheds and warehouses of our brewers and farmers? We should be excited about opening up these new markets.

[Elizabeth Truss]

My hon. Friend is right. This country produces high-quality malting barley, and my ambition is to overtake Canada in exports to Japan and to become No. 1 on the Japan malting barley list.

[Martyn Day (Linlithgow and East Falkirk) (SNP) [V]]

The Secretary of State referred to CPTPP as “11 like- minded nations” and said that

“now is the time to look out to the world”.

Will she not therefore see that it is time to follow Canada’s example and give a formal role to the devolved Administrations in establishing trade policy? Or will Scotland get that opportunity only with independence?

[Elizabeth Truss]

We have in this country a clear procedure for determining our trade agreements and a clear treaty-ratification process, which I think works well. We are committed to working closely with Scottish Members of Parliament and Scottish businesses to make sure that every part of the UK benefits from our trade-negotiation strategy.

[Dehenna Davison (Bishop Auckland) (Con)]

When I think about trade deals, I think about the benefits that deals like CPTPP will bring to exporters in my patch, such as Equus Leather in Winston, which my right hon. Friend visited with me a few months ago. As she is a champion of global Britain and of free trade, does she agree that UK businesses want the UK to sign up to CPTPP and cement our relationships with top economies such as Japan, Australia and New Zealand?

[Elizabeth Truss]

Equus Leather is a fantastic business, but the fact is that it currently has to fill in lots of forms when it wants to export not only to America but to other parts of the world. I want to get dedicated SME chapters to get rid of that red tape, so that companies can focus their efforts on producing fantastic products that people around the world want to buy.

Trade Bill

Elizabeth Truss Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Wednesday 20th May 2020 Commons Chamber

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

I beg to move, That the Bill be now read a Second time.

Coronavirus is the biggest threat this country has faced in decades. All over the world we see its devastating impact. We will do whatever it takes to support United Kingdom businesses to continue trading, with our network of 350 advisers across the country and trade commissioners across the world.

This crisis highlights just how important it is to keep trade flowing and supply chains open, so that we can all have the essential supplies we need. It is free and open trade that has ensured that we have food on our table and access to vital personal protective equipment and medication. At meetings with my fellow G20 Trade Ministers, I have continually called for a united global response, tariff cuts on key supplies and reform of the World Trade Organisation. Although it is unfortunate that some countries have resorted to protectionism, many have sought to liberalise in the face of this crisis. In particular, I have been working with colleagues such as Australia, New Zealand and Singapore to highlight the importance of keeping trade flowing.

Free trade and resilient supply chains will be crucial to the global economic recovery as the crisis passes. Time after time, history has shown us that free trade makes us more prosperous, while protectionism results only in poverty, especially for the worst off. Britain has a proud history as a global leader and advocate of free trade. The bold and principled decision of Sir Robert Peel to take on the power of the wealthy producers and repeal the corn laws in 1846 ushered in an unprecedented era of free trade that saw ordinary people in Britain benefit from more varied and cheaper food, helping to grow our cities and power forward the world’s first industrial revolution.

I see a real opportunity again for industrial areas across Britain as we become an independent trading nation. By cutting tariffs and reducing export red tape, our great British businesses will be able to sell more goods around the world. British steel, ceramics and textiles are some of the world’s best, but all too often they are subject to high tariffs and barriers. Those industries are already looking forward to the opportunities that future trade deals will bring.

The US imposes tariffs of 25% on steel; removing them would boost our domestic industries. As my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) knows, that will particularly benefit areas such as Yorkshire and the Humber, which account for more than a third of our iron and steel exports to the United States. Indeed, just this week UK Steel said:

“A new UK/US Free Trade Agreement would provide a significant boost to our trade to this high-value market, create a global-competitive advantage for UK steel producers, and open up valuable new market opportunities.”

Our farmers and food producers stand to gain from a trade deal with the US. The US is the world’s second largest importer of lamb, but current restrictions mean that British producers are kept out. We can also grow, for example, our malting barley exports from Scotland and the east of England.

The tech trade will benefit from a US free trade agreement through cutting-edge provisions on digital and data. Telecoms and tech have more than doubled in the past decade, and an ambitious FTA could see those exports grow further.

While free trade provides opportunities, protectionism would harm farmers, tech entrepreneurs and steel manufacturers. We have already seen this before: in 1930, the Smoot-Hawley Act raised US tariffs on more than 20,000 imported goods, resulting in retaliation from other nations and the deepening and prolonging of the depression. As President Reagan said in 1985:

“Protectionism almost always ends up making the protected industry weaker and less able to compete against foreign imports…Instead of protectionism, we should call it destructionism. It destroys jobs, weakens our industries, harms exports, costs billions of dollars to consumers, and damages our overall economy.”

We have a golden opportunity to make sure that our recovery is export led and high value—a recovery that will see our industrial heartlands create more high-quality and high-paying jobs across all sectors. Free trade does not just benefit us here in Britain; it benefits the world. Since the end of the cold war, free trade has lifted a billion people out of extreme poverty. For want of a better word, free trade is good. It is those benefits that underpin our Government’s approach: free and fair trade fit for the modern world.

Let me turn to the contents of the Bill. We can have fair trade only if it is free trade. The Bill will embed market access for British companies by enabling the UK to join the WTO’s Government procurement agreement as an independent member. This will provide businesses with continued access to the extraordinary opportunities of the global procurement market, worth some £1.3 trillion a year. The GPA is an agreement between 20 parties that mutually opens up Government procurement. We have already seen in the UK the way that competition drives up quality while keeping prices low. The GPA keeps suppliers competitive and provides them with opportunities overseas. It is a driver of growth, not a threat to our economy. The idea that we can, or even should, do everything domestically is not desirable or practical in this increasingly interconnected world. Instead, we should be making sure that we have resilient supply chains through a more diverse range of partners. We will be an international champion for free and fair competition in the coming months and years through our discussions at the WTO, the G20 and bilaterally. We will urge other countries not to heed that false, but enticing, call for protectionism.

Let me be clear to the House: the GPA sets out rules for how public procurement covered by the agreement is carried out. As an independent member, we are free to decide what procurement is covered under the agreement. The UK’s GPA coverage does not and will not apply to the procurement of UK health services. Our NHS is not on the table.

We are also committed to continuing our trade with existing partners that have agreements through the EU, such as South Korea and Chile. To date, we have signed 20 such trade agreements representing 48 countries, and others are still under negotiation. This accounts for £110 billion of UK trade in 2018, which represents 74% of continuity trade. People said that we would not be able to roll over these agreements—well, they were wrong, and we will be signing more in the coming months. This work is part of securing the Government’s aim to have 80% of UK trade covered by free trade agreements in the next three years.

We are also looking to new partners. Negotiations with the US and Japan are kicking off. We are prioritising signing FTAs with Australia and New Zealand and accession to the comprehensive and progressive agreement for trans-Pacific partnership, otherwise known as the CPTPP. With the UK global tariff now published, there will be an increased incentive for other countries to come to the table to maintain or improve upon their preferential terms and conditions. Fundamentally, free trade is humanitarian and we will maintain preferential margins for developing countries, helping businesses lift millions out of poverty. As a Government, we have committed to going further than the EU has in terms of trade for development, and we are looking at reducing or removing tariffs where the UK does not produce goods and getting rid of cliff edges in current tariff schedules.

That brings me to the second part of our approach: fair trade. The Bill will help establish the independent trade remedies authority, which will help protect British businesses against injury caused by unfair trading practices such as dumping or subsidy, or unforeseen import surges. I tell the House that while free trade has no stauncher friend than this Government, unfair trading practices that hold back British businesses will have no worse enemy. We will fight against state-owned enterprises that use public money to subsidise their goods and Governments who support the lobbying of these under-priced products into the UK market.

Excellent UK industries such as ceramics and steel—represented ably by my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon), for Stoke-on-Trent North (Jonathan Gullis), for Stoke-on-Trent South (Jack Brereton), for Redcar (Jacob Young) and for Scunthorpe—should not face unfair trade. The TRA will be responsible for investigating claims of unfair trading practices based on the evidence available. It will then make impartial representations to Ministers.

The TRA’s impartiality is vital. Decisions on trade remedies cases can have a material impact on business and financial markets. This Bill will allow us to create an independent body to carry out objective investigations in which businesses can have full confidence. In developing our own trade policy for the first time in almost 50 years, we will use technology to ensure that our trade agreements are fit for the modern world. Therefore, this Bill will give the Government powers to collect and share the trade data that will help our independent trade policy. This will make it easier for our trade policy to reflect the interests of businesses across the UK.

Let me assure the House that this Bill is a continuity Bill. It cannot be used to implement any trade agreement between the UK and the EU itself, nor can it be used to implement an agreement with a country that did not have a trade agreement with the EU before exit day, such as the United States of America. The Bill can be used only to transition the 40 free trade agreements that the EU had signed with third countries by exit day, and these powers are subject to a five-year sunset clause to ensure that we can maintain the operability of transitioned agreements beyond the end of the transition period. Any extension of this five-year period will require explicit consent of both this House and the other place.

We face a period of unprecedented economic challenge. It is vital that we do not just maintain the current global trading system, but make it better. That means diversifying our trade and supporting those businesses that export. Exports, be they software or steel, cars or ceramics, barley or beef, will underpin our recovery. This Bill will ensure continued access to existing markets by letting us implement trade agreements with partner countries that previously applied under the EU. It will secure continued access for UK businesses to the £1.3 trillion global public procurement market. It establishes the independent body in the Trade Remedies Authority to give our great British businesses the protection they need from unfair trade practices. Trade will be fair as well as free. By adopting a cutting-edge digital first approach, we will be able to give businesses the best possible support.

As we recover from the economic shock of the coronavirus crisis, providing certainty and predictability in our trading arrangements will be vital to securing the interests of businesses and consumers. We will unleash the potential and level up every region and nation of our United Kingdom. Now is the time for this House to speak out against protectionism. It is time for us to embrace the opportunities that free trade and an export-led recovery will bring. I commend this Bill to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I now call the shadow Secretary of State, Emily Thornberry, to move her reasoned amendment, and she has 10 minutes in which to speak.

UK Global Tariff

Elizabeth Truss Excerpts

Tuesday 19th May 2020 Written Statements

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

As we recover from the unprecedented economic challenges posed by coronavirus, the UK will champion free trade, fight protectionism and remove trade barriers.



The Government have this morning, 19 May 2020 announced their new tariff regime—the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the transition period.



Our new tariff is tailored to the needs of the UK economy. It will support the country, by making it easier and cheaper for businesses to import goods from overseas.



It is a simpler, easier-to-use and lower tariff regime than the EU’s Common External Tariff (EU’s CET) and will be in pounds, not euros. It will scrap red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice for consumers. It will also back UK industries to compete on the global stage.



The UKGT almost doubles the number of products that are tariff free relative to what is currently applied—with just under 50% of products now zero, compared to 27% in the EU’s CET.



The UKGT will make it easier for businesses to trade



Our tariff will be in pounds—not euros. Paid in pounds, calculated in pounds, this is a stable tariff for UK traders.

Our tariff cuts administrative costs for businesses. We are getting rid of needless tariffs which create administrative burdens. All tariffs below 2% are gone (e.g. fire extinguishers, school pencils and gardening tools, from 1.7% to 0%).

Our tariff is simpler to use. We will round tariffs down, making them simpler for traders to use (e.g. reading glasses from 2.9% to 2% and alarm clocks from 4.7% to 4%). We will also scrap the complex calculation—which results in over 13,000 tariff variations on products like biscuits, confectionery, and spreads—applied under the EU’s CET.

The UKGT will reduce cost pressures and increase choice for UK households. Tariffs have been removed on products that we do not produce, or do not produce much of in the UK. Removing these tariffs will reduce cost pressures for UK households and businesses (e.g. pistachios from 1.6% to 0% and cotton yarn from 4% to 0%).

Our tariff will protect developing countries. Tariffs have been retained on goods such as vanilla (6%), plantains (16%) and bed linen (12%) to support the preferential access of developing countries to the UK market.

We are cutting tariffs on over 100 products to back renewable energy, energy efficiency, carbon capture, and the circular economy through recycling and reducing single use plastics (e.g. thermostats from 2.1% to 0%, vacuum flasks from 6.7% to 0% and LED lamps from 3.7% to 0%).

The UKGT also retains tariffs on products across UK industries and sectors to help them compete on the global stage. Tariffs on products such as lamb, beef and poultry and finished cars will all see their tariff retained.



The Government have developed and tailored the UKGT to the needs of the whole UK economy. It was designed following a public consultation, which gave individuals and businesses across the UK an opportunity to provide their views and feedback. The Department for International Trade organised events with businesses and experts across the UK, including in the English regions and devolved nations, during the consultation process. The consultation received more than 1,300 responses.



The Government carefully considered all available evidence, including the consultation responses, in the development of the UKGT.



The summary of consultation responses and the Government’s response can be found at: https://www. gov.uk/government/consultations/the-uk-global-tariff. Copies will be placed in the Libraries of both Houses.



For the first time in almost 50 years, the UK has set its own tariff schedule, aimed at boosting prosperity, supporting British industry, making it easier to bring goods into the UK and reducing cost pressures for consumers.



The full schedule can be found at: https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021.

[HCWS241]

Future Trading Relationship with the US

Elizabeth Truss Excerpts

Monday 18th May 2020 Written Statements

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

Around 200 negotiators from the UK and the US held the first round of negotiations for a UK-US free trade agreement (FTA) between 5 and 15 May 2020.

More trade is essential if the UK is to overcome the unprecedented challenges posed by covid-19. New FTAs will be an important factor in facing that economic challenge, providing new opportunities for businesses and entrepreneurs who have faced significant challenges in this difficult period. An FTA with the US can help create opportunities for UK businesses, provide better jobs and boost the economy in every part of the country.

Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace. Ambassador Lighthizer and I agreed that a second virtual round will take place in the weeks of 15 and 22 June, and that in advance of that negotiating teams will continue their work and meet virtually on a rolling basis, with meetings continuing throughout this week and beyond.

Negotiations over the past two weeks were conducted virtually but proceeded efficiently, with UK and US negotiators participating in extensive discussions in nearly 30 different negotiating groups covering all aspects of a comprehensive trade agreement. The discussions covered the following workstreams:

Small and medium enterprises (SMEs)

Legal group—disputes

Trade remedies

Rules of origin

Investment

Legal group—core text

Technical barriers to trade

Competition

Digital

Telecoms

Economics

Customs

Sectoral annexes

Cross cutting services

Market access for goods, overarching and industrial goods

Good regulatory practice (GRP)

Financial services

Sustainability, environment and labour

General co-ordination

Market access for goods, agriculture

State owned enterprises

Services sectors

Intellectual property

Procurement

Sustainability, anti-corruption

Market access for goods, textiles

Sanitary and phytosanitary (SPS)

Subsidies

The meetings were positive and constructive, reflecting the mutual commitment to secure an ambitious agreement that significantly boosts trade and investment between our economies, the first and fifth largest in the world.

Both sides recognised the unprecedented circumstances in which these negotiations took place, with significant emphasis placed on supporting the post-covid economic recovery.

During the meetings, the teams discussed their respective objectives and agreed on ambitious next steps for coming talks. Our preparatory work makes it possible for the UK and United States to quickly advance negotiations in a number of substantive areas that will shape our future bilateral trade relationship.

A number of areas showed particular progress, including where both teams identified positive alignment between respective negotiating positions. They identified a mutually high ambition for services, investment and digital trade, among other areas.

Both sides also set out a mutual commitment to creating new opportunities for businesses on both sides of the Atlantic and to delivering benefits for workers, consumers and farmers. This includes the confirmation that both sides will quickly pursue a standalone small and medium enterprises (SME) chapter and will continue the UK-US SME dialogue.

In the same manner as this negotiating round, discussions in the second round will cover all areas to be included in a free trade agreement.

The Government are committed to negotiating a comprehensive agreement with the US and we look forward to making further progress at the next round of negotiations. The Government will make a further statement on progress following the second round of talks.

[HCWS238]

Negotiations with Japan

Elizabeth Truss Excerpts

Wednesday 13th May 2020 Written Statements

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

Coronavirus is the biggest threat this country has faced in decades. The Government are doing all they can to protect business from the worst effects of coronavirus in the immediate term. We must take steps to support our economy, reduce impacts and provide opportunities for the future economic recovery.

More trade is essential if the UK is to overcome the unprecedented economic challenge posed by coronavirus. It can give us security at home and opportunities abroad—opening new markets for business, bringing investment, better jobs, higher wages and lower prices just as we need them most. At a time when protectionist barriers are on the rise, all countries need to work together to ensure long-term prosperity and international trade is central to this co-operation.

That is why we will use our voice as a new independent trading nation to champion free trade, fight protectionism and remove barriers at every opportunity. The Government’s ambition is to secure free trade agreements (FTAs) with countries covering 80% of UK trade within the next three years, to become a truly global Britain.

An enhanced FTA with Japan, the third largest economy in the world in 2018, represents significant opportunities throughout the economy, from agriculture to digital. It will also help us increase the resilience of our supply chains and the security of our whole economy as we diversify our trade.

A deal with Japan will be a driving force to maximise the UK’s advantage in the opportunities Asia Pacific affords. These bilateral negotiations are a logical first step to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), given that Japan is CPTPP’s largest economy.

Japan is a developed economy with high standards and we are major investors in each other’s economies. Trade with Japan is integral to UK jobs and businesses. In 2018, around 9,500 VAT registered businesses exported £6 billion worth of goods to Japan, employing 2.4 million people. Around 6,700 VAT registered business, employing 2.5 million people, imported £10 billion worth of goods from Japan.

An enhanced FTA with Japan is therefore expected to deliver a significant and sustained long-term boost to every region in the UK. Our analysis shows that in the long run, the UK economy could benefit from a £1.5 billion boost, as the trade deal could increase trade flows between both countries by £15.2 billion. UK workers’ wages could increase by £800 million in the long run as a result of the deal.

Total annual tariff reductions on goods imports from Japan could be worth up to around £275 million per year in the long run. Some 59% of all Japanese goods imported into the UK and 44% of all UK goods exported into Japan are used in supply chains (average 2016-18). So as well as reducing the price of consumer goods, lower tariffs could also cut the costs of domestic production in both countries.

Removing trade barriers with Japan could deliver huge gains, both for the 8,000 UK small and medium-sized enterprises (SMEs) across the UK already exporting goods with Japan as well as those making plans to enter the Japanese market. For example, total annual tariff reductions on goods exports to Japan could be worth around £33 million per year in the long run.

The deal will also provide cutting edge provisions on digital trade that maximise opportunities for trade across all sectors of the economy, providing trust and stability for UK businesses, entrepreneurs and exporters. Such provisions will reduce trade barriers and make it easier for the SMEs already exporting goods to Japan. UK businesses will have the opportunity to lead on innovation, supporting the development of important emerging technologies, such as quantum computing. E-commerce and the creative industries will also benefit from the free flow of data and strong copyright provisions.

That is why today, the Department for International Trade is publishing a comprehensive document setting out the UK’s strategic approach to an enhanced FTA between the UK and Japan. We will be placing copies in the Libraries of both Houses. The document is set out in three parts:

The Government’s negotiating objectives for an enhanced FTA with Japan, using the existing EU-Japan economic partnership agreement as a basis.

The Government response to the call for input on trade negotiations with Japan, providing an overview of the responses received and setting out how these have fed into our policy development.

A scoping assessment providing a preliminary assessment of the potential long-term economic impacts of an enhanced FTA between the UK and Japan.

The objectives published today are informed by our call for input, which ran for six weeks between 20 September and 4 November 2019 and gave businesses, interest groups and members of the public the opportunity to highlight their priorities for a potential future agreement with Japan.

A deal with Japan will help us to deliver opportunity and unleash the potential of every part of our United Kingdom. Analysis in the scoping assessment shows a UK-Japan enhanced FTA could have a positive impact on every UK nation and region in the long run, with Scotland, the East Midlands and London expected to benefit the most.

We are engaging with the devolved Administrations, Crown dependencies and overseas territories to ensure that we develop an enhanced FTA that works for the whole of the UK.

Our negotiating objectives clearly set out our priorities for an ambitious and comprehensive agreement, which will build on our existing EPA to strengthen the economic relationship with one of our largest bilateral trading partners.

The Government are committed to transparency and we will continue to ensure that parliamentarians, UK citizens and businesses have access to the information they need on our trade negotiations.

[HCWS231]

Oral Answers to Questions

Elizabeth Truss Excerpts

Tuesday 12th May 2020 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

What recent assessment the Government have made of the potential effect of a US trade agreement on SMEs.

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

We are working on a dedicated small and medium-sized enterprise chapter in the US trade deal to help the UK’s 5.9 million small businesses. Some 31,600 UK SMEs already export to the US, and we want to help them by cutting red tape on customs and tariffs.

[Daisy Cooper [V]]

SMEs are the backbone of the UK economy, but while the US Government are engaging with their SMEs, SMEs in the UK say that there is no equivalent engagement from the UK Government. Will the Secretary of State commit to having a dedicated chapter in every trade deal that they are looking to develop, and will she create a mechanism for SMEs themselves to help shape it?

[Elizabeth Truss]

I thank the hon. Lady for her question. We have been in touch with a number of organisations representing SMEs—for example, the Federation of Small Businesses, which has come out in favour of a US trade deal, saying:

“For small businesses, the US is the number one single market of choice for importers and exporters for the next three years, which is why these negotiations are so critical.”

We are committed to working with businesses of all sizes in this trade process through our expert trade advisory groups, which we have with all industry sectors, and I am very happy to engage with the hon. Lady about how even more SMEs can be involved in this process.

[Alun Cairns (Vale of Glamorgan) (Con)]

What assessment she has made of the potential merits of a free trade agreement with the US.

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

A free trade agreement with the United States is set to deliver a £15 billion increase in bilateral trade, benefiting every region of the UK, including the nation of Wales and the great county of Yorkshire, and delivering an extra £1.8 billion for workers’ wages.

[Mark Eastwood [V]]

In the light of the difficult circumstances we find ourselves in globally, I would like to congratulate the Secretary of State on setting up talks with the US. With the UK set to leave the EU at the end of the year, it is also important that we have free trade agreements in place with other nations, particularly our Commonwealth partners and countries in the far east. Therefore, could my right hon. Friend provide an update on progress with the potential trade deals with Australia, New Zealand and Japan?

[Elizabeth Truss]

I thank my hon. Friend for his question. We will shortly be launching negotiations with Japan, Australia and New Zealand, and pressing for early accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This is an important step in diversifying our trade and making sure we are not just dependent on a small number of countries for our imports and exports. It is also important that we work with like-minded free market democracies to help set global standards in trade.

[Alun Cairns [V]]

Does the Secretary of State agree that all parts of the UK and all economic sectors stand to gain from a trade deal with the United States? However, some lobbyists are concerned about their specific interests, so what reassurance can my right hon. Friend give that fairness to both the UK and the US, as well as economic opportunities for all parts of the country, will be central to her thinking in the negotiations?

[Elizabeth Truss]

A free trade deal with the United States is set to benefit every nation and region in the UK, including Wales. We will strike a hard bargain, and seek a deal that is fair for our producers. For example, we want to make sure that we gain access for British lamb and Welsh lamb in the United States market. It is the second biggest importer of lamb in the world, and it represents a massive opportunity for our farming sector and for the nation of Wales.

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

I thank the Secretary of State for the warm welcome that she has given me in this new role and for the co-operative discussions that we have enjoyed so far in relation to both coronavirus and US trade. On the latter subject, she will be aware that the Trump Administration and the US Congress see the US-Mexico-Canada agreement on trade as a template for every other free trade agreement that they are looking to sign around the world. Can the Secretary of State make it clear to them today that she will not agree to any version of article 32.10 of the USMCA that would constrain the UK’s ability to negotiate our own trade agreement with China and therefore represent an unacceptable breach of the sovereignty of this Parliament?

[Elizabeth Truss]

First, I welcome the right hon. Lady to her seat. It is great to see her in the flesh, even though we have had a number of calls over the last few weeks. I am committed to working with the Opposition to ensure that we get the best possible deal for all parts of the UK in the US trade deal. I can assure her that when we negotiate with the United States we will negotiate in the UK’s interest, ensuring that we have full freedom of manoeuvre and making our own sovereign decisions as a country. Of course, we are looking at a number of precursor agreements for the text we use in those trade negotiations, but my No. 1 priority is to ensure that we have our own sovereign capability to trade with the rest of the world as we see fit. One important benefit of a US trade deal and the trade deal we are looking to strike with Japan is that we need to be setting standards with fellow free market democracies and ensuring that we have proper transparency in our operations and proper setting of standards.

[Mr Speaker]

The Secretary of State really needs to think about the other Members who need to get in, so if she could shorten her answers, it would be helpful to all the Members who are waiting. [Interruption.] It is very good, actually.

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

Business and trade are all about the bottom line and numbers, and we know from the Treasury estimate that Brexit will cost about 6% of GDP. An American trade deal—and remember that the USA is a quarter of the global economy—will only give an average lift of about 0.2% to GDP, or a thirtieth of what Brexit will cost. Is there any prospect of that number improving? What are the GDP lifts for the deals with Australia, New Zealand and Japan and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership? We need to get to the numbers at the bottom of Brexit.

[Elizabeth Truss]

I thank the hon. Gentleman for his question. He will be aware that there is a projected benefit to Scotland from a US trade deal of over half a billion pounds on gross value added, which is a significant figure. In fact, Scotland is one of the parts of the UK likely to benefit most from a US deal. We will shortly publish the economics behind the Japan, Australia and New Zealand deals when we launch the respective trade negotiations.

[James Wild (North West Norfolk) (Con)]

What recent progress her Department has made on negotiating free trade deals.

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

I thank my hon. Friend for his question. We will shortly be launching negotiations with Japan, Australia and New Zealand. This is an important opportunity for the UK to form closer ties with a fast-growing group of countries and look forward to joining the CPTPP, which comprises 11% of the global economy.

[James Wild [V]]

I warmly welcome the ambitious agenda that my right hon. Friend sets out. Can she confirm that any trade deal with the United States will not lower our standards on imported food and that these talks and the other ones she referred to represent a great opportunity for world-leading companies in west Norfolk such as Bespak and other pharmaceutical, engineering and manufacturing firms to benefit from reduced tariffs and the removal of other barriers to trade?

[Elizabeth Truss]

I can confirm that we will not lower our food import standards as a result of the US deal. We are going to maintain those standards; it is an important part of the quality assurance we have here in the United Kingdom. My hon. Friend will be aware that there are lots of opportunities for Norfolk farmers and producers from a US trade deal, and overall the east of England stands to benefit by £345 million.

[Stewart Hosie (Dundee East) (SNP) [V]]

Around a third of the value added of UK trade comes from indirect trade—indirect links—where goods and services are first exported to one country and subsequently exported to the UK. Given the importance of indirect trade and value chains generally, I am sure the Secretary of State would agree with the Dutch Trade Minister that we should rethink our trade deals to take a closer look at the sustainability of those value chains. Will she go further and agree that we should not just be looking at sustainability, but that trade deals should be as inclusive as possible and based on World Trade Organisation rules, and because of the importance of value chains and indirect trade—

[Mr Speaker]

Order. I think the Secretary of State will have got the question.

[Elizabeth Truss]

The hon. Gentleman is correct to say it is very important that we have resilient trade as well as trade that benefits our economy. That is why our strategy is to strike trade deals with more partners, to ensure that our companies have more options and that we are trading with a wider variety of nations than we were before.

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

Our priorities for the last four years were supposed to be in this order: first, securing a free trade agreement with the EU; secondly, rolling over all our existing deals with third countries; and thirdly, agreeing free trade deals with the rest of the world. Can the Secretary of State explain why the Government have failed on all three?

[Elizabeth Truss]

I would argue strongly that we are succeeding on all three of those aims. We have opened talks with the United States; David Frost is making significant progress in his talks with the EU; and we are making significant progress in increasing the number of countries that we are able to agree continuity trade deals with. We are on course to succeed in all those areas.

[David Linden (Glasgow East) (SNP) [V]]

As the WTO makes clear, coronavirus will lead to a substantial fall in global trade. It suggests a reduction in the range of between 13% and 32% in 2020. Although it is true that this is primarily a health issue, trade will be an important ingredient of the recovery, so does the Secretary of State agree with the WTO that keeping markets open and predictable will be crucial to secure the renewed investment that we need?

[Elizabeth Truss]

I completely agree with the hon. Gentleman; he is right that protectionism would be a disaster for the global economy at the moment. That is why we have been pressing at the WTO to keep trade open, and why the UK has unilaterally lowered tariffs on key medical goods, to keep that trade flowing.

[Kerry McCarthy (Bristol East) (Lab) [V]]

Will the Secretary of State tell the House what the UK’s approach will be to chemicals regulation during any future trade negotiations? Will we retain the precautionary principle, or is she looking to relax our current laws?

[Elizabeth Truss]

It is a very important principle that the UK Government have responsibility for their own regulations. That is not something that we will trade away in a trade deal; that is a matter for UK sovereign Government regulation.

[Ruth Edwards (Rushcliffe) (Con)]

11. What her policy is on protectionism.

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

As we emerge from the Covid crisis, it is vital that we keep free trade flowing. That is why the UK has been making that case with G20 Trade Ministers and the WTO. We have another G20 meeting this Thursday, where I want to see further action to cut tariffs on medical products, and for longer-term WTO reform.

[Ruth Edwards [V]]

Stilton producers, such as the excellent dairies of Cropwell Bishop and Colston Bassett in my constituency, face a 25% tariff when they export to the US market. Can my right hon. Friend tell me what progress has been made, in the first week of negotiations, to reduce those tariffs?

[Elizabeth Truss]

We are determined to get those tariffs reduced and removed on products like Stilton, and the brilliant producers in my hon. Friend’s constituency. The Stilton Cheese Makers’ Association has backed a US deal, saying that a US free trade agreement will help recognise Stilton cheese further in the US, and bring down some of the existing barriers that we are currently facing.

[Grahame Morris (Easington) (Lab)]

12. What steps he is taking to expedite the import of essential medical products during the Covid-19 outbreak.

International Women’s Day

Elizabeth Truss Excerpts

Thursday 5th March 2020 Commons Chamber

[The Minister for Women and Equalities (Elizabeth Truss)]

I beg to move,

That this House has considered International Women’s Day.

This year’s theme is “each for equal”, which speaks to the vision that I have as Minister for Women and Equalities. I believe in the dignity and autonomy of the individual, and in giving everyone an equal opportunity to live the life that they choose. People should not be defined by their gender, or, come to that, by their race, their age, or where they come from. So on International Women’s Day this Sunday, we can enjoy and celebrate being women, but we should not be defined or limited by it.

It strikes me that this year’s “each for equal” theme is very much like the Government’s central mission: to level up, to deliver opportunity, and to unleash the potential of everyone across our United Kingdom. “Each for equal” and levelling up mean pushing back against the cult of female exceptionalism—the idea that women are more trustworthy or empathetic, or make better bosses—and pushing back against the lazy stereotypes of male exceptionalism—the idea that men are more decisive, stronger, or better leaders.

The Government’s role is to remove the barriers for women, so that it is their talent, ideas and character that matter and not anything else, and so that, in the words of the brilliant Taylor Swift in her new song, “women aren’t left running as fast as they can, wondering if they’d get there quicker if they were a man”. The rights and safety of women are of the utmost importance to the Government.

Like many others throughout the House, I am anticipating the moment when the hon. Member for Birmingham, Yardley (Jess Phillips) will read out the names of all the women killed by male partners since the last International Women’s Day. I commend the hon. Lady—as well as others outside the House, such as Karen Ingala Smith of the Counting Dead Women project—for the heartbreaking reminder that there remain so many women to commemorate in this way. With that in mind, I am particularly pleased that the Government introduced the Domestic Abuse Bill this week, to tackle an injustice that still blights the lives of far too many people, and that this year we have committed £100 million of funding to combat violence against women, including £20 million directed specifically at domestic abuse.

Free enterprise gives people power over their own money, their own ideas and their own lives, and I believe that it has been a particularly liberating force for women. Between 1990 and 2015, the number of people living in extreme poverty globally fell by more than 1 billion, and most of those were women. That is the magnificent achievement of free markets and free trade, and it is through that opportunity and empowerment that women have pioneered the wonderful technological innovations and ideas that improve our lives.

One example is Ada Lovelace, whose picture hangs in the Pillared Room at No. 10 Downing Street. Empowered by a good education and independent finances, Lovelace, a mathematician, conceived of the first computers, sparking an ideas chain reaction via Bletchley Park which led to innovations that shape our modern world, everywhere from Silicon Valley to the mobile phone in your pocket. Another example is Katharine McCormick, a committed feminist who singlehandedly financed the contraceptive pill when the US Government refused to invest in its research.

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

I wholly support the Secretary of State’s celebration of the work of Ada Lovelace, but does she recognise that the work of women such as Ada Lovelace and Katherine Johnson, who worked on the US space programme, was not known and celebrated? Does the Secretary of State recognise that it is important that we celebrate the work of women, particularly in the fields of science, technology, engineering and maths, where they have made a great contribution and yet have not been celebrated?

[Elizabeth Truss]

The hon. Lady is absolutely right, and I am sure that she enjoyed the recent film “Hidden Figures”, which celebrated some of those workers—the fantastic female mathematicians who contributed at NASA. I know that she, like me, enjoys Lego, and will celebrate the new women scientist Lego sets. She is absolutely right, and we need to give girls and women the message about the great achievements and inventions of women that unfortunately have not been celebrated as much as they should have.

[Mrs Maria Miller (Basingstoke) (Con)]

On celebrating women’s achievements, does my right hon. Friend share my concern that around the country, we have too few sculptures and statues of women? I am proud that Basingstoke has recognised Jane Austen by having the first ever sculpture made of her and put in the centre of our town. Should not more constituencies and Members of Parliament do something similar?

[Elizabeth Truss]

My right hon. Friend is completely correct. In fact, I also recently saw the film “Emma.”, which is based on my favourite Jane Austen novel. She is right that we need more statues of women. Of course, we recently unveiled the Nancy Astor statue in Plymouth. We should have more statues of women in our public places, and we should celebrate the great women who have helped to make our country what it is.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I completely agree with the right hon. Member for Basingstoke (Mrs Miller). Is the Secretary of State aware of the scheme to erect a statue for Betty Campbell, the first black female headteacher in south Wales—a remarkable figure from Butetown in my constituency? She made an incredibly impact not only on young people locally, but on the wider community. I join with all those fighting for more women to be recognised in this way around the country.

[Elizabeth Truss]

I very much commend the work the hon. Member is doing on that; it is fantastic.

[Jim Shannon (Strangford) (DUP)]

As it is International Women’s Day, I was running through in my mind who my most inspirational woman was. It has to be my mother, of course; probably everyone in this House would say it was theirs. She is coming up to 89 years of age, and is still a person who is very much to the fore. Does the Minister not agree that perhaps the most inspirational women are those who have lived a life of duty and service, and of honour and devotion to their community, and that we should shine a light on our Queen, perhaps the most extraordinary woman of our generation, as an example of what we should aspire to?

[Elizabeth Truss]

The hon. Gentleman makes a very good point. Women have contributed to our national life in all kinds of ways. Their achievements are not yet fully recognised, and we should do more on that.

Before we had tributes to these great women, I was talking about the contraceptive pill, an incredibly important innovation by a woman, in the face of opposition, which has transformed the ability of women to prevent unwanted pregnancy, enter the workplace, and escape traditional gender roles. As Trade Secretary, I have the privilege of seeing how women continue to seize the opportunities of freedom, kicking open doors that previously only men have walked through. In this job, I have met women at the top of their game—brilliant entrepreneurs setting up their own businesses, leaders of our country’s largest and most successful FTSE 300 companies, and of course our country’s world-class female diplomats across the globe. We now have women heading our missions in the United States and China, and we are making huge progress.

[Laura Farris (Newbury) (Con)]

I first got involved with International Women’s Day in 2015, when I was asked to speak at an event; I had not heard of it before. That has prompted me to think about where we were then with women in public life, and where we are now. In 2015, there were 148 women in this House and 104 women in the two Houses of Congress, and a woman was poised to secure the Democrat nomination in the race for the White House—well, that one did not work out; but fast forward to today, and there are 220 women in Parliament, which is a 49% increase in five years.

[Laura Farris]

I thought I might get that. There are 127 women in the two Houses of Congress, which is a 23% increase, and we have had a second woman Prime Minister. Sometimes the pace towards gender equality is glacial, but in the last five years, it has been considerable, and that is something to celebrate this International Women’s Day.

[Elizabeth Truss]

My hon. Friend makes a good point. We have seen a huge culture change through things like the #MeToo movement. We have also seen a real recognition of the issues and challenges that women face, and they are being dealt with. This Government are very committed to dealing with those challenges.

[Nickie Aiken (Cities of London and Westminster) (Con)]

I should like to back up what my right hon. Friend, and my hon. Friend the Member for Newbury (Laura Farris), have said. I was the leader of Westminster Council, and my predecessor and my successor are both women, which is amazing. As the mother of two teenagers, a daughter and a son, I am obviously empowering my daughter to be the person that she is, but does my right hon. Friend agree that it is equally important that we empower our boys to be feminists and to agree that we are all equal? My daughter plays football and cricket, and my son plays football and cricket. He has always been taught that girls are equally as good, if not better, at those sports.

[Elizabeth Truss]

My hon. Friend is absolutely right. Rigid stereotypes about what girls should do and what boys should do also hold boys back. They do not give them the opportunities they might want in traditionally female professions, for example, and they do not allow them to express themselves in ways that can be helpful and empowering and make their lives better. This is the point that I was making at the start of my remarks. Of course I am proud to be a woman; I love being a woman. I have two daughters, and I encourage them to celebrate being female, with all the great benefits and life experiences that that brings. At the same time, however, they should not in any way feel that that defines them or places on them any expectations about the way in which they live their lives. Equality for everyone—everyone being free from those preconceptions—is good for our society. It unleashes ideas and opportunities that will benefit us all.

I want to talk about my recent experience at the African investment summit that we held here in London. I met a group of fantastic entrepreneurs called the Lionesses. They were from sub-Saharan Africa, where they are leading the way with the highest rate of women entrepreneurs on the planet. They were a fantastic group of women. I do not think it is a coincidence that women are achieving so much in business. Free enterprise and free trade do not care about someone’s gender or sexuality, or the colour of their skin. The first female Prime Minister, Margaret Thatcher, once said that

“a widget remains a widget—and it will be bought anywhere if the price and quality are right. The market is a more powerful and more reliable liberating force than government can ever be.”

That is why we are so keen as a Government to champion female entrepreneurs, to champion opportunities for women in business and to champion women in the workplace. We need to ensure that everyone can enter, get back into, and get on in the workplace. I am proud that under this Government the employment rate for women has reached a record high of 72.4%. Almost 2 million more women are in work since 2010. When I talk to women across our country, they are not interested in identity politics. They are interested in how they, their families and their communities can get on in life. That is why we as a Government are focused on tackling the barriers that hold people back and on levelling up our country.

We are investing in our railways, roads and broadband to bring opportunities to every home and business. We have doubled the free childcare available in England to eligible working parents of three and four-year-olds to 30 hours per week. We are supporting families across the UK through tax-free childcare, and we have established a new £1 billion fund to create more high quality, affordable childcare. We will extend entitlement to leave for unpaid carers, the majority of whom are women, to one week. This is the real substance of our national programme, which is inclusive to everybody. Its aim is to unite, to level up and to bring together every region and nation of our country.

As well as tackling these policy challenges, we recognise that ingrained assumptions pose barriers that make it harder for people to fulfil their potential. I vividly remember, as a 12-year-old girl, getting on a flight with KLM. My brothers were presented with junior pilot badges, but I was presented with a junior air hostess badge. That was a revelatory moment for me. I did not like being told what job I was able to do because I was a girl. I do not believe that any girl or boy should be encouraged to pursue a career or study a course because of their gender, yet between the ages of seven and 11, boys are almost twice as likely as girls to want to be scientists and four times more likely than girls to want to be engineers. This is linked to a significant lack of academic attainment for women in science, technology, engineering and mathematics, and to their severe underrepresentation in related fields. That is why this Government have championed maths and science, benefiting girls and boys alike. There has been a 31% increase in girls’ entries to STEM A-levels in England since 2010, and the number of women in the UK accepted on to full-time STEM undergraduate courses increased by 34% between 2010 and 2019.

We recognise that championing women’s rights cannot stop at our borders, and the Government are also taking steps to empower women internationally. I find it appalling that child marriages, female genital mutilation and the denial of access to a quality education still blight our world, keeping women down and damaging the countries they live in. This is depriving us all of the ideas that they could pioneer, the vital jobs that they could be doing and the dreams that they could be pursuing.

The Government recognise that women can contribute positively to the modern world just as much as men. That is why we continue to support targeted development programmes to ensure that all girls, right around the world, receive 12 years of quality education. I strongly agree with the Prime Minister, who speaks so passionately on this subject, that all girls must be allowed to achieve their potential, whether they were born in London, Lagos, Lima or Lahore. The world must stop wilfully neglecting the enormous benefits that accrue for everyone when girls are given an education and job.

We are driving progress towards ending all forms of violence against women and girls internationally, including sexual violence in conflict, and we are promoting women’s sexual and reproductive health and rights and supporting their economic and political empowerment. We are also hosting a conference—chaired by a former Member of this House, Nick Herbert—that will ensure that LGBT people across the world are safe and free to live the lives they wish, including lesbians and bisexual women and the specific challenges that they face.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

Before the Minister moves back to the domestic sphere, I want to ask her what her Government are doing on the international front to protect women human rights activists around the world. They are standing up for the human rights of the people they represent, but they also face discrimination because of their gender.

[Elizabeth Truss]

The hon. Lady makes a good point about female human rights activists, and I will certainly take it away to ensure that we are doing all we can, in conjunction with the Foreign Office.

We are celebrating the achievements of women today. This does not mean being defined by being a woman, favouring women over men or being pigeonholed by outdated stereotypes. It is about defending the rights of adults to make choices, to be free to live the lives they choose and to flourish on their own terms. The Government are proud of the steps we are taking to advance the potential of women, both in levelling up opportunities here in the UK in areas such as housing, transport and childcare, and in our efforts to extend those opportunities across the world in areas such as education.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

Does my right hon. Friend agree that if girls are to have 12 years of education throughout the world, including in this country, we should not allow them to marry under the age of 18, because that limits what they can do? That applies in this country, not just abroad. We should be stopping it in this country too.

[Elizabeth Truss]

My hon. Friend makes a good point about the damage of early marriage—it is particularly early in some countries, which I think is appalling. Of course, we will need to have that discussion as a Parliament and as a Government, but I know that she is a strong advocate for that.

We are surrounded by proof that everyone, no matter their sex, is capable of great things, and that advancing equality benefits us all. I encourage everyone here to celebrate the incredible things that women have done, and to truly recognise the intrinsic equality of men and women. Together, let us fight for that brighter future of opportunity and aspiration, where the personal fulfilment, freedom, dignity and liberty of each individual, women and men alike, are respected and defended.

Oral Answers to Questions

Elizabeth Truss Excerpts

Thursday 5th March 2020 Commons Chamber

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

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

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

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

[Aaron Bell]

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

[Elizabeth Truss]

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

[Bill Esterson (Sefton Central) (Lab)]

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

[Elizabeth Truss]

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

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

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

[Bill Esterson]

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

[Elizabeth Truss]

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

[Robert Courts (Witney) (Con)]

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

[Elizabeth Truss]

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

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

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

[Elizabeth Truss]

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

--- Later in debate ---

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

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

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

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

[Tom Randall]

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

[Elizabeth Truss]

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

[Mr Holden]

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

[Elizabeth Truss]

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

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

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

[Elizabeth Truss]

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

[Katherine Fletcher (South Ribble) (Con)]

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

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

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

[Katherine Fletcher]

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

[Elizabeth Truss]

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

[Mary Glindon (North Tyneside) (Lab)]

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

--- Later in debate ---

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

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

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

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

[Saqib Bhatti]

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

[Elizabeth Truss]

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

[Gagan Mohindra]

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

[Elizabeth Truss]

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

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

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

[Elizabeth Truss]

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

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

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

--- Later in debate ---

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

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

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

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

[Steve Double]

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

[Elizabeth Truss]

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

[Mr Speaker]

You’ve cracked that one before!

[Barry Gardiner (Brent North) (Lab)]

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

[Elizabeth Truss]

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

[Anthony Browne (South Cambridgeshire) (Con)]

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

--- Later in debate ---

[Virginia Crosbie (Ynys Môn) (Con)]

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

[Elizabeth Truss]

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

[Zarah Sultana (Coventry South) (Lab)]

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

[Elizabeth Truss]

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

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

[Craig Tracey (North Warwickshire) (Con)]

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

[Ruth Jones (Newport West) (Lab)]

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

[Elizabeth Truss]

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

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

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

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

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

[Elizabeth Truss]

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

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

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

--- Later in debate ---

[Siobhan Baillie (Stroud) (Con)]

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

[Elizabeth Truss]

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

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

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

[Elizabeth Truss]

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

[Robert Courts (Witney) (Con)]

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

[Elizabeth Truss]

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

[Alison Thewliss (Glasgow Central) (SNP)]

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

[Elizabeth Truss]

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

UK-US Trade Deal

Elizabeth Truss Excerpts

Monday 2nd March 2020 Commons Chamber

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

Today, we are publishing a suite of documents that mark a crucial step in beginning the formal negotiations for a free-trade agreement with our largest bilateral trading partner, the United States. These documents comprise the Government’s negotiating objectives, our response to the public consultation and an economic scoping assessment. They are available online and in the House of Commons Library.

The UK stands at an historic moment, building its independent trade policy for the first time in almost half a century. This Government will seize the opportunity to be an independent free trading nation with a simple message: that free trade is good for all nations and will deliver benefits for businesses, households and consumers across the UK. We aim to have 80% of UK trade covered by free trade agreements within three years, starting with the EU, the US, Japan, Australia and New Zealand. Seeking these agreements is key to our efforts to level up, deliver opportunity and unleash the potential of every part of the United Kingdom.

The US is one of our largest friends, the world’s largest economy, our closest security and defence partner and one of our oldest allies. We are the biggest investors in each other’s economies. An FTA represents a fantastic opportunity to strengthen and deepen our strong trade, investment and economic relationship, bringing us closer to the world’s economic powerhouse. In 2017, 1.7 million people worked for US companies in the UK, and 1.3 million people worked for UK companies in the US. UK-US total trade was valued at £221 billion last year, representing 19.8 % of all our exports. An ambitious free-trade agreement with the US could deliver a £15.3 billion increase in bilateral trade and a £3.4 billion lift to the economy.

The negotiating objectives we are publishing today are underpinned by one of the largest consultations ever undertaken. We received the views of more than 150,000 respondents, all of which have informed our approach and negotiating objectives. We have scaled up our trade negotiator expertise, with a similar size of team to the US Trade Representative, including a wealth of experience from the private sector, trade law, Commonwealth nations and World Trade Organisation experts ready to deliver for the UK.

My Department’s analysis shows that every single part of the UK could benefit from the US deal, delivering improved access for businesses, more investment, better jobs and higher wages. For Scotland, it could lock in the salmon and whisky trade and support new market access for beef and lamb. Wales stands to gain access for its lamb, and reduced tariffs in red tape for steel and ceramics. Northern Ireland can benefit from improved access to agriculture and furniture tariffs. Every region in England stands to benefit, particularly the midlands and the north-east with their strong manufacturing base in cars and machinery. We also expect significant gains in the tech sector across the country, with a bespoke digital and data agreement.

North, east, south and west, from agriculture to the creative industries, we find that a US trade deal can deliver for all parts of the UK economy. It means more choice for consumers at lower prices, new opportunities for businesses and more high-skilled jobs. It has the potential to slash trade barriers and tariffs of some £451 million, and it could boost British workers’ wages by £1.8 billion.

Small and medium-sized businesses are increasingly international traders in their own right. In 2018, 97% of goods exporters were SMEs, and 30,000 SMEs across the UK already trade with the US. We are going to make it a priority in these trade negotiations to support UK SMEs. We will do that with a dedicated chapter for SMEs. We will ensure that SMEs have easy access to information, and we will make sure that there are SME-friendly provisions, cutting red tape on customs and tariffs in services and goods.

We are also looking to rewrite the game on digital trade, to create a world-leading ecosystem that supports businesses of all sizes across the UK. This could include provisions that facilitate the free flow of data and prevent unjustified data localisation requirements, while maintaining our ability to protect users against online harm. We can ensure that customs duties are not imposed on electronic transmissions, and create great opportunities in areas such as blockchain, driverless cars and quantum technology.

In these trade talks, as in all future trade talks, this Government will drive a hard bargain on behalf of the British people. The NHS, the price it pays for drugs and its services are not for sale. There will be no compromise on high environmental protection, animal welfare and food standards. Throughout these negotiations, this Government will continue to engage collaboratively with Parliament, the devolved Administrations and the public. I can also assure the House that now that the UK is free to negotiate outside the EU, we will be aiming to begin negotiations with the US as quickly as possible. The appetite is clear on both sides. We welcomed the US Government’s negotiating objectives, particularly on developing “state-of-the-art” provisions in financial services and digital trade. We also welcome the enthusiasm, both in the US Congress and in the US Administration, as was made clear during my discussions with the US Trade Representative, Robert Lighthizer, last week. We see this as not just an opportunity to deepen our bilateral trade and investment relationship; it is also about setting an example to the world, about how two leading, open, free-market democracies can trade with each other.

As an independent trading nation, the UK will champion free trade and lower trade barriers at every opportunity. Striking free trade agreements will give our businesses the opportunities, certainty and security they need to prosper. The greatest opportunity to do that is with our closest ally and largest single trading partner, the United States. We have a mandate and we have the team. With these documents we are publishing today, we have the tools. And with hard work, I believe we can get it done. I commend this statement to the House.

[Bill Esterson (Sefton Central) (Lab)]

May I thank the Secretary of State for early sight of her statement? We on this side of the House support ambitious trade agreements that unlock economic growth, create new jobs, and elevate rights and standards, so I congratulate her and her officials on the publication of today’s negotiating mandate for the Government’s flagship post-Brexit trade agreement. A year after the US equivalent, it has been greatly anticipated.

Some 20% of our current trade is with the US. It is our second biggest market, and we have enjoyed decades of two-way trade without an underlying trade agreement. The Government predict GDP growth of 0.07% to 0.16%, or £1.6 billion to £3.4 billion, as a result of this agreement. To put that in context, the Government’s own figures suggest a fall in GDP of about £150 billion as a result of the type of trade deal being proposed with the EU. Would it not be sensible to prioritise minimising losses of £150 billion, rather than chasing much smaller gains of £2 billion to £3 billion? How much will be added to GDP by the trade agreements with Japan, Australia and New Zealand, to which the Secretary of State referred? Will she confirm that countries on the other side of the Atlantic or further afield simply cannot come close to replacing what will be lost in the type of trade deal being proposed with the EU?

The negotiating objectives contain references to a level playing field with the US and a commitment to prevent either side from enjoying an artificial advantage—a commitment not being offered to the EU. Does the Secretary of State believe that the EU has not noticed? Or does she think the EU does not have access to translators? Dispute mechanisms are used by the US in international trade agreements to enforce its standards as a matter of course. It is noticeable that the EU negotiating objectives specifically exclude environmental protections and workers’ rights from the proposed dispute mechanism, but no such exclusions have been set out in the objectives published today, so will the UK end up having to back down, or are the rights and protections really the red lines that the Secretary of State would have us believe? Will she insist that the US signs up to International Labour Organisation conventions? How will the agreement reinforce the UK’s commitment to net zero by 2050?

The Chancellor’s adviser said yesterday that we do not need a farming industry or a fishing industry; who should we believe—the Chancellor’s adviser or the Secretary of State? The Government say that they will not allow chlorine or acid-washed chicken—processes used only because of insanitary conditions in the United States—but they also say that such produce is safe; which of those is the Government’s position? Will they make the necessary commitments in law to protect our consumers by adding them to the Agriculture Bill?

The US trade representative says that the US will demand greater market access for US pharmaceutical businesses, which could drive up the cost of medicines. Meanwhile, the provisions of trade agreements can apply inadvertently to public services and lock in privatisation measures, against public concerns and the public interest. Will the Secretary of State confirm that she will ensure that explicit wording rules out liberalisation measures from applying to our NHS and to all public services?

The mandate published today appears mainly to be about tariffs; mucking about with tariffs does not constitute an international trade agreement. The current round of trade tariffs has damaged leading British exports, including Scotch whisky, and caused great concerns in our ceramics and steel sectors. The Government have already spelled out their plans to drop tariffs to zero; where is the incentive for the United States to do the same? What is to stop them walking away from a deal because we have given them everything that they want without the need for an agreement?

The Secretary of State mentioned Congress, so on the subject of scrutiny she must recognise that her statement does not constitute adequate parliamentary engagement on this process. Will she tell NHS patients, farmers, manufacturers, consumers and workers just how she intends to enable scrutiny of this and all other international trade agreements?

[Elizabeth Truss]

I am pleased that the Opposition have acknowledged that there is value in trade deals and, indeed, in a trade deal with the US, because previously many of them have voted against trade deals with Canada and Japan. It is hard to understand who they actually want to do any business with.

The hon. Gentleman asked specifically about the trade arrangements with the EU; the simple answer is that we want a good trade deal with the EU and a good trade deal with the US. That is absolutely possible. Canada has an excellent trade deal with the EU and we want similar terms to it, and it also has a very good trade deal with the US, with an advanced digital chapter. It should be perfectly possible for us to seek such an arrangement that enables us to unlock the economic benefits of a deal with the US.

It takes a party with the economic literacy of the current Labour party to think that £15.3 billion of additional trade is not worth having. Why does the hon. Gentleman not tell that to the people of Stoke-on-Trent and the ceramics factories that could benefit? Why does he not say that to the midlands car manufacturers who want easier testing procedures? Why does he not say that to the people of Scotland, which is one of the regions that would benefit most from a free trade deal with the United States? The hon. Gentleman asked me about the other deals that we are seeking—[Interruption.] Does he want to hear the answer to the next bit? He asked me about the other deals that we are working on at the moment. I will, in due course, be laying out our proposals for a deal with Japan, Australia and New Zealand. I can assure him that we will be publishing the full economic scoping studies, as we have for the United States, and we will be publishing objectives for those arrangements as well, in line with the commitments that we have made to Parliament. I am fully committed to working with Parliament on these arrangements. Of course, a treaty is an Executive prerogative, but, at the same time I will be working with the International Trade Committee and making sure that we have proper scrutiny. We have been working with the devolved Administrations. My right hon. Friend the Minister for trade policy has had regular meetings with his colleagues in Northern Ireland, Scotland and Wales.

The hon. Gentleman does not seem to have heard what I said about food standards and animal welfare. We will not be diminishing or lowering our standards as part of a US trade deal, and we will not be paying more for drugs prices in the NHS. That is clearly laid out in our objectives for everyone to read. Were the US to demand that—I do not believe that that will be the case—we will simply walk away. As he pointed out, we are already trading well with the US. If we do not get what we want from this agreement, we will walk away.

Finally, I want to make a point about British agriculture. As a former Secretary of State for Environment, Food and Rural Affairs, I am a great believer in the fantastic products that we produce in this country. I believe that they should be available in more countries around the world. I want UK beef and lamb to be on US shelves. I want the tariffs on dairy products, which can be as high as 18%—[Interruption.] Indeed, on cheese products as well. I want those tariffs to be lowered so that we can get more of our fantastic products into the US market. I suggest that the hon. Gentleman reads today’s scoping assessment, which shows that UK agriculture will benefit economically from a trade deal with the US.

[Dr Liam Fox (North Somerset) (Con)]

I congratulate my right hon. Friend on her statement. Will she confirm not only that UK exports to the United States currently attract half a billion pounds-worth of tariffs, the removal of which will be an immediate boost to the UK economy, but that the opportunities are even greater? We are currently involved in retaliatory tariffs as a result of the EU-US steel dispute and we are subject to tariffs that the US never wanted to apply to the UK. As we separate ourselves from the European Union, we can remove ourselves from the ensnarement of that, which will enable us to remove many other tariffs, which would be beneficial to both consumers and businesses on both sides of the Atlantic.

[Elizabeth Truss]

My right hon. Friend is absolutely right. May I thank him for the work that he put in as Trade Secretary, which has got us to this point where we are able to launch these negotiating objectives, and for doing all the fantastic work that he did with our colleagues in the United States? I know the Labour party does not seem to think that tariffs are important, but that is not so for a pottery manufacturer in Stoke-on-Trent who is facing 28% tariffs on their dinnerware going into the US. If we get those tariffs removed, that will mean that that factory is able to employ more people, grow its business and invest. Yet again, that is the Labour party refusing to understand how enterprise works and where wealth comes from in this country.

My right hon. Friend is right about the steel industry. It is currently facing £300 million-worth of tariffs a year. If we can get those tariffs removed, that provides a brilliant opportunity for our steel industry to sell more products in the United States.

[Stewart Hosie (Dundee East) (SNP)]

I thank the Minister for her statement and early sight of it. It is true that the analysis published today, which forms part of these documents, does provide some very useful information. It tells us that the maximum tariff reduction will be less than half a billion pounds, that the maximum increase in UK GDP would be 0.16%, that the maximum increase in gross value added for Scotland would be less than half a per cent—0.4%—and that, in the long-run, financial services GVA might actually go down. Yet in order to achieve these decidedly underwhelming targets, the UK will have to leave the European Union, surrender around 5% of GDP growth, and risk around 20% of UK global trade.

More worryingly, a pattern is emerging in the UK’s approach to trade negotiations. In the document on the future relationship with the EU, the UK seeks to exclude subsidies, competition policy, and environmental, tax and labour provisions from any dispute resolution mechanism. In today’s UK-US public negotiating objectives —only four pages of the total published today—there is limited reference to competition, labour and environment provision, nothing on subsidy or tax, and a single vague bullet point on dispute resolution that would enforce the level playing field and avoid the race to the bottom.

Apart from the environment, the Secretary of State mentioned none of those things in her statement. Let me ask her this: why are the UK Government giving the impression of abandoning level playing field provisions across so many aspects of modern trade deals? Why are they giving the impression that they are in favour of a wild west free-for-all in trade rather than a comprehensive rules-based system with a comprehensive dispute resolution mechanism? Why are they prepared to sacrifice so much in terms of global UK trade and GDP growth to secure what, by their own admission, are very, very modest gains indeed?

[Elizabeth Truss]

I have news for the hon. Gentleman: we have already left the European Union, although the news might not have reached him.

Scotland is one of the largest potential beneficiaries of a US-UK free trade agreement. The hon. Gentleman sniffs at the half a billion pound extra value added to the Scottish economy that is analysed, but a number of Scottish businesses are supportive, including the Scottish chamber of commerce. I suggest that he listens, as we have been doing, to businesses in Scotland about how they can see their businesses grow.

The hon. Gentleman specifically mentioned standards. In free trade agreements, including in the comprehensive and economic trade agreement, or CETA, there are often clauses saying that the parties will not deliberately lower standards for competitive advantage. That is what we are referring to in our US negotiating objectives and it is a perfectly proper and regular part of free trade agreements that we are happy to sign up to.

[Several hon. Members rose—]

[Theresa Villiers (Chipping Barnet) (Con)]

Is the Secretary of State able to promise that the Government will not remove current restrictions or tariffs on food imports unless those imports are produced to standards of animal welfare as tough as the ones that we expect our own farmers to meet?

[Elizabeth Truss]

I thank my right hon. Friend for her question. As we make very clear in the negotiating objectives, we will not lower our standards. We will maintain our food safety and animal welfare standards and will not lower them as part of this free trade agreement. We decide which standards we abide by here in the UK. We have exceptionally high standards of animal welfare, and my right hon. Friend herself is a champion of that. We are not going to be told by the US what our standards should be; for that matter, we are not going to be told what our standards should be by the EU either.

[John Spellar (Warley) (Lab)]

Along with a majority of Labour MPs, I voted for the Canadian trade deal. The debate on that treaty was beset by disinformation campaigns by many non-governmental organisations, as was the Transatlantic Trade and Investment Partnership deal. Frankly, the Government did precious little to rebut them.

Currently, one of the concerns is whether drug prices will rise in the UK; the Secretary of State touched on that. Is there not a great desire across the United States, in fact, to achieve the same excellent deal as the NHS has secured? I doubt whether, in election year, even Donald Trump will die in a ditch for big pharma. Will the Secretary of State see this as a political campaign and not just a narrow, dry trade negotiation?

[Elizabeth Truss]

The right hon. Gentleman is a great champion of free trade on the Labour Benches, and I hope that his views prevail and become more mainstream in Labour party opinion. He makes a good point. Of course, there are strong economics behind this trade deal as we have outlined today. But there are those who seek to undermine the proposals and the benefits for British businesses with various smears and scare stories about the NHS, animal welfare standards or other issues. Those people damage the potential for British businesses and our economy. We are determined to rebut the false stories that they are putting out and to make sure that we put across the positive case for the whole UK.

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

I do not share the Scottish National party’s miserable analysis of the trade deal; I see great opportunities for Scotland from a deal. But there is a cloud on the horizon: the 25% duty currently applied to malt whisky. What confidence can the Secretary of State give us that at the end of this process there will be no duties on Scotch whisky of any kind in the United States and no duty on bourbon in the United Kingdom?

[Elizabeth Truss]

My right hon. Friend is right that this is a major issue for our excellent Scotch whisky producers and other companies such as Walkers shortbread and cashmere producers. I raised the issue again with Ambassador Lighthizer when I saw him last week. I want there to be an urgent settlement of the Airbus-Boeing dispute so that retaliatory tariffs on things such as bourbon, Harley-Davidsons and Florida orange juice as well as on our excellent products here in the UK can be removed. I am urging, as an early part of these trade negotiations, the removal of existing tariffs to show good will towards the negotiations.

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

Any increase in trade is clearly to be welcomed, but in private the Secretary of State will be honest, I am sure, about recognising that the benefits of the deal to the UK economy will be relatively small: just a 0.16% increase in GDP, and then only after 15 years. Why does she not do two other things? She could try to persuade her Cabinet colleagues to seek a deal with the European Union more ambitious than the Canada-light deal currently being advocated and, for goodness’ sake, to get behind a third runway at Heathrow.

[Elizabeth Truss]

I welcome the hon. Gentleman’s agreement with me that removing barriers to trade is good for everybody—it is good internationally and good here in the UK. One thing he fails to point out, though, is that there are huge benefits in regulatory freedom and flexibility. As the UK is able to decide its own rules and regulations, we can be more nimble and agile in the modern world—a key benefit of our leaving the European Union and having a Canada-style deal with the EU.

[Mark Garnier (Wyre Forest) (Con)]

I agree with my right hon. Friend’s comment that the US is very excited about this trade deal—not just Washington politics, but across the whole United States.

I want to press the food standards point. The US is the biggest exporter of agricultural products in the world. Does my right hon. Friend agree that it achieves that through selling products that the world wants and not through forcing unwanted products on unwilling consumers?

[Elizabeth Truss]

My hon. Friend is absolutely right that good export champions are companies that suit the markets that they serve. We will maintain our standards about what we believe to be right for UK consumers in line with the values of the farmers and people of the UK. It will be up to those that supply us—the US, the EU or anybody else—to fit with those standards. That is the nature of trade agreements.

[Alison Thewliss (Glasgow Central) (SNP)]

In 2018, at the World Health Assembly, the US tried to modify a resolution on breastfeeding, allegedly threatening Ecuador, which was sponsoring the measure, with punitive trade and aid measures. What assurance can the Secretary of State give the House that the UK will protect, promote and support breastfeeding ahead of the commercial interests of global formula companies—particularly those in the US, which produce formula to lower standards of composition and nutrition than we have here in the UK and in the EU?

[Elizabeth Truss]

The hon. Member is right to highlight this issue. However, a free trade agreement is specifically about the rules around trade. There are other organisations that set global standards in other issues. The World Health Organisation will, of course, be taking a lead on the environment in terms of COP26. There is always a bit of a danger in trying to pile too many issues into free trade agreements. This free trade agreement is all about ensuring that British consumers and businesses benefit from increased trade with the UK.

[Fay Jones (Brecon and Radnorshire) (Con)]

I very much welcome this statement, particularly the opportunity for all four corners of the UK to benefit. May I ask my right hon. Friend to outline how a free trade deal with the United States will benefit mid Wales, and my constituents in Brecon and Radnorshire in particular?

[Elizabeth Truss]

I am still to take up my hon. Friend’s invitation to visit one of the sheep markets in her constituency, but I am looking forward to it because I believe that Welsh lamb is a prime product, and we want to get it into the US market. We also want to remove tariffs on Welsh dairy products going into the US. Our projection shows that agriculture overall—and specifically in Wales—will benefit from a US trade deal.

[Stephen Kinnock (Aberavon) (Lab)]

The section 232 tariffs imposed by President Trump have had a deeply damaging impact on our steel industry, leading to a 30% drop in UK steel exports to the US. Does the Secretary of State agree that all trade talks with the US should be suspended until such time as our steel industry has been exempted from these completely unacceptable and protectionist tariffs?

[Elizabeth Truss]

I want to get the trade talks started so that I can get those tariffs removed.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

In welcoming this statement, I note that the very substantial and comprehensive Transatlantic Trade and Investment Partnership negotiations seemed to be distorted, by the media and many lobbying interests, into little more than one or two contentious policy areas. Are we going to learn the TTIP lessons, and in particular ensure that when deal information is released for review by the US Congress, Parliament consents to that at the same time—to minimise room for unhelpful or one-sided comment or speculation?

[Elizabeth Truss]

I agree that we need to make a clear case, and to ensure that Parliament is engaged.

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

I am interested to hear the Minister say that she wants to ensure that Parliament is engaged because, unlike our counterparts in the US Congress and the EU Parliament, Members of this House do not get a vote on trade deals. Is she prepared to consider reversing that policy? If not, can she tell us in what way having no debate on the trade deal constitutes taking back control?

[Elizabeth Truss]

The hon. and learned Member will be aware that the UK has a parliamentary system that is similar to those in Australia and New Zealand, and we are following a similar process to those Parliaments. It is a different structure from the separation of powers in the United States.

[Stephen Farry (North Down) (Alliance)]

It is worth noting that the UK would have concluded a better trade deal with the US if it had been a member of the EU—part of that stronger negotiating power. Can I ask the Secretary of State how this is going to work with regards to Northern Ireland? As a by-product of the protocol, Northern Ireland will be carved out of certain aspects of UK trade deals, while at the same time EU trade deals will not be rolled over for Northern Ireland. How are we going to benefit? Are we actually in danger of being marginalised in both respects?

[Elizabeth Truss]

We are very clear that we are negotiating on behalf of the entire UK, including Northern Ireland. The Minister of State, Department for International Trade, my right hon. Friend the Member for Bournemouth West (Conor Burns), has been working closely with the Northern Ireland Executive.

[Derek Thomas (St Ives) (Con)]

The Agriculture Bill and the Environment Bill are going through Parliament at the moment, and require our food producers to meet the very highest environmental and food standards. I welcome the Secretary of State’s commitment that no compromise will be made regarding environmental protections, and animal welfare and food standards, but what reassurance can she give to food producers in my constituency who do not believe that they will be faced with a level playing field once the trade deal is done?

[Elizabeth Truss]

I can assure my hon. Friend that it is written very clearly in our document that we will not be compromising on our food standards. I highlight to him the opportunities for agriculture in the west country of lowering barriers into the US and being able to export more of its fantastic products.

[Sarah Olney (Richmond Park) (LD)]

There is a lot of disquiet being expressed about digital services and tech companies, and their use of personal data. I note from the larger document that was published today that a lot of the public consultation also expressed concerns about personal data being used by US firms. What guarantees can the Secretary of State give to the House that the personal data of UK consumers will not be subject to any fewer protections than they currently enjoy under the general data protection regulation?

[Elizabeth Truss]

We are committed to protecting personal data. There are huge opportunities in striking an advanced digital and data chapter on the flows of data between the UK and the US—ensuring that those flows are properly underwritten and giving software companies opportunities. There are huge advantages, but we will always ensure that we are protecting people online and personal data.

[Robert Courts (Witney) (Con)]

Free trade is the greatest driver of global prosperity that the world has ever seen. Would the Secretary of State agree that in addition to the prospect of lowering prices for UK consumers, the high-tech businesses of west Oxfordshire can look forward to this massive global market being open to them—a market that also happens to be one of our closest friends?

[Elizabeth Truss]

My hon. Friend is right. Some 79% of all the services we provide are supplied remotely—many of them into the United States. Having this underwriting on digital and data will really help companies in areas such as robotics, artificial intelligence and computer gaming, and will provide a massive strategic advantage for the UK against our competitors.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As we have heard, according to the Government’s figures, the very best deal that they can do with the US will result in GDP growth of 0.16%—leaving aside the concerns over reduced standards, especially in food. With the Secretary of State’s Government once again raising the spectre of no deal with the EU, which Government figures show would see growth of around minus 8%, put simply, wouldn’t no deal with the EU and this deal with the US be at best like losing £8 and finding a 20p piece?

[Elizabeth Truss]

It is very interesting that half a billion pounds in extra economic value does not mean anything to the hon. Member.

[Mr Marcus Fysh (Yeovil) (Con)]

I welcome my right hon. Friend’s statement and the prospects for more engagement with the dynamic US economy. The Conservatives are the party of free trade. Whenever protectionism has been touted, such as in the elections of 1906 and 1923, it has not ended well for us. Does my right hon. Friend agree that there is big scope for more marketing support for our high-quality produce, such as Somerset cheddar and brie, and that fear of imports does not take account of the ability to deal in zero-tariff quota opening, rather than complete tariff reduction up to any amount?

[Elizabeth Truss]

My hon. Friend has outlined a number of options; I will be interested to hear more as we go through the negotiations. He is right that we have great products that are currently facing tariffs of up to 18%, and that we could eliminate those and see more exports into the US market. We will be looking at our export strategy—the exports Minister, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), is with me on the Front Bench—and ensuring that we turbocharge our exports as we go into this important year of being an independent trading nation.

[Thangam Debbonaire (Bristol West) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. The Secretary of State talks about removing barriers to trade and mentions the creative industries, which I welcome. Musicians and others currently tour the EU without any barriers whatever, or a need for visas or forms for their equipment and instruments; their experience with the US is completely the opposite. What reassurance can she give us that she will prioritise visa-free travel in the US for creatives, with form-free transportation of musical instruments and equipment?

[Elizabeth Truss]

The hon. Member will notice that we are very clear in our negotiating objectives about the protection of intellectual property for the creative industries, and about the opportunities for better visas and travel. We will be working on that throughout the process.

[Mr David Jones (Clwyd West) (Con)]

US public procurement potentially offers exciting opportunities for British companies to access an enormous market. However, as my right hon. Friend will know, much public procurement in the United States is conducted at state and municipality level. How does she propose to reflect that state of affairs in any future free trade agreement?

[Elizabeth Truss]

My right hon. Friend is right. There are issues that are dealt with at a federal level and a state level. We will be seeking an agreement that secures access to US Government procurement at a federal level. We will also be looking, in the first instance, at the major states as well to gain more access for British companies.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

The Secretary of State said that if an agreement could not be reached to exclude the NHS from any trade deal, then we would walk away, but will she be clear on whether, if any trade deal was done, she would expect there to be explicit wording in it to exempt public services from any liberalisation measures?

[Elizabeth Truss]

I can assure the hon. Lady that we will put in the wording necessary to deliver the commitments that I have laid out in the objectives—that is, no increases to drugs prices, no services put at risk, and also the NHS itself not being on the table. That will be clear.

[Saqib Bhatti (Meriden) (Con)]

The fact of the matter is that our exports to the US are growing at a faster rate than they are to the EU. The west midlands has consistently had a trade surplus with the USA. Does the Secretary of State agree that a US trade deal would open up new markets for small and medium-sized businesses and herald many new opportunities for business and industry in the west midlands?

[Elizabeth Truss]

There are huge opportunities in the midlands for further trade with the US. The midlands is already a very strong exporter to the US. I believe that one in five goods from there goes to the US market, but we can do more to remove tariffs and also to get rid of some of the testing procedures and non-tariff barriers that are stopping our car industry exporters so much.

[Damian Collins (Folkestone and Hythe) (Con)]

I was pleased to hear the Secretary of State state her commitment to protecting UK citizens from online harms. She will know that the US-Mexico-Canada trade agreement required the insertion of the section 230 provisions of the United States’ Communications Decency Act, which give immunity from liability to the big social media companies. If an approach like that were incorporated in a UK-US deal, would be impossible for us to bring forward the online harms regime and take action against social media companies for failing to act against harmful content. Will she confirm that the British Government would not accept a move in this country equivalent to section 230 in the US-Mexico-Canada agreement?

[Elizabeth Truss]

I can confirm that we stand by our online harms commitment, and nothing in the US trade deal will affect that.

[Jack Brereton (Stoke-on-Trent South) (Con)]

I particularly thank the Secretary of State for mentioning the ceramics industry in Stoke-on-Trent. Does she agree that this has huge potential to give access to markets in the US for a number of ceramics firms, but also for a number of other industries right across Stoke-on-Trent, and to help to level up the opportunities for the people I represent in Stoke-on-Trent South?

[Elizabeth Truss]

I thank my hon. Friend. I enjoyed visiting his constituency and meeting some of the fantastic companies there, including Walker’s Nonsuch Toffee, for which I also want to secure a tariff reduction.

[Ben Everitt (Milton Keynes North) (Con)]

I am sure that the Secretary of State is just as chuffed as I am to learn that Milton Keynes has been voted the best place outside London to do business, not least because of our thriving digital and data sector. What more will this US trade deal do for our digital and data sector?

[Elizabeth Truss]

We want to achieve a world-leading data and digital agreement, underwriting data flows but also dealing with issues like blockchain and artificial intelligence, thereby making sure that we and the US are leading the world and able to share these economic opportunities.

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

I very much welcome this statement, but I know that the Secretary of State is aware of the very negative impact that US tariffs are having, particularly in my constituency, on textiles and cashmere. I am pleased to hear what she is doing to address that, but can she reassure me that there will be some sort of restriction in the trade deal on the US imposing these arbitrary tariffs in future on whisky and other sectors within the Scottish economy?

[Elizabeth Truss]

As has been pointed out, Scotch whisky has been hit by retaliatory tariffs between the US and the EU. Of course we want to see that settled. We also want to see resolution on the Airbus-Boeing dispute. In future, I would be seeking to avoid such tit-for-tat tariffs, making sure that we have agreement on both sides.

[Richard Graham (Gloucester) (Con)]

The truth is that these negotiations and those with the EU are vital for business, growth and jobs across the UK. Does my right hon. Friend believe that the timing of the US presidential elections may give a fair wind to the urgency of resolution of her negotiations?

[Elizabeth Truss]

We are pushing our full complement of resources into these negotiations, and so is the United States. I am not going to set a deadline on the negotiations but I certainly hope that the prevailing political wind will help us to conclude as early as we can.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

I really welcome the visits by my right hon. Friend and by the Minister of State, my hon. Friend the Member for Bournemouth West (Conor Burns) to Stoke-on-Trent. I think that my right hon. Friend is very well aware of the particular issues facing the ceramics industry. Within this ambitious trade deal, we certainly want punitive tariffs removed from the ceramics industry, and I hope that that will be part of any negotiations.

[Elizabeth Truss]

That certainly will be part of our trade negotiations. There are many industries across the UK that face high tariffs and high barriers. We want those removed so that we can see every part of the UK thrive.

[Mr Owen Paterson (North Shropshire) (Con)]

May I heartily congratulate my right hon. Friend on bringing this statement forward on the same day that the talks begin with the EU? She followed me at the Department for Environment, Food and Rural Affairs, and she knows perfectly well the tremendous opportunities in the States for UK food, agricultural and drink products, particularly Scotch whisky. Does she agree also, going the other way, that this gives a massive advantage to every family and every business in this country, who will now have access to goods produced to world standards at world prices, forcing European producers hitherto protected by the tariff wall to sell here at world prices?

[Elizabeth Truss]

My right hon. Friend makes a typically Ricardian case for lower tariffs and lower barriers. He is right. It will help our British citizens to lower their cost of living, which is good for us all.

[Imran Ahmad Khan (Wakefield) (Con)]

Ever since King George III accepted John Adams’s credentials as ambassador to the United States, both states respectively have regarded each other as sovereign equals and worked ceaselessly towards fostering ever closer diplomatic, military, cultural and commercial ties. Does the Secretary of State agree that a future free trade agreement should be seen as part of this story? I am a proud Yorkshireman, and like many of those who come from God’s own country, we love the USA. Any agreement that makes it easier for my American friends to more easily and affordably buy Harrogate’s world-famous Yorkshire Tea is to be welcomed.

[Elizabeth Truss]

I do agree. I know the Americans have an affinity both for Yorkshire tea and Yorkshire beer.

[Andrew Griffith (Arundel and South Downs) (Con)]

Does the Secretary of State agree that the removal of the tariff of 19.8 cents on every litre of English sparkling wine represents a great opportunity?

[Elizabeth Truss]

My friend is absolutely right. We have seen the growth of sparkling wine exports, which now, I think, total more than £100 million a year. I see huge opportunities in removing those tariffs and getting more of our excellent sparkling wine into the United States.

[Martin Vickers (Cleethorpes) (Con)]

North-east Lincolnshire is a major centre for the renewable energy sector, and a number of US delegations have already visited to look at opportunities. Would the Secretary of State give an assurance that her Department will support the small and medium-sized companies that want to get into the supply chain in this sector?

[Elizabeth Truss]

One of our key asks from the US trade deal is a dedicated chapter to make it easier for small and medium-sized enterprises by removing some of the customs red tape, being able to do more things online, and being able to get better information. I will certainly look at my hon. Friend’s specific businesses in Cleethorpes in that regard.