Independent Tariff Policy: Consultation
Elizabeth Truss Excerpts(4 years, 3 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
This morning the Department for International Trade launched a public consultation to inform the development of the UK’s new independent tariff policy.
Now that Britain has left the EU, it will use its new powers to make its mark internationally as a champion of free trade and a bulwark against the forces of protectionism that exist in the world. The Government’s message is that free trade is good for all nations, is right for the UK and will deliver benefits for British businesses, households and consumers.
As part of our new approach, the Government are developing a new UK most favoured nation (MFN) tariff schedule which will enter into force on 1 January 2021. This will be a bespoke regime known as the UK global tariff (UKGT). It will be designed specifically for the UK economy and will replace the EU’s common external tariff, which is currently applied on imports into the UK. It will ensure UK businesses compete on fair terms with the rest of the world while benefiting households through greater choice and lower prices.
This is the first time in almost 50 years that the UK will be able to set its tariff rates on imported goods. This consultation represents an opportunity for every business, every person and every civil society group, in every part of the UK, to have their say. We are calling on businesses, consumers and other groups to help us shape this new instrument of trade policy for the UK.
To inform the development of this bespoke regime, the Government are seeking views on a series of potential amendments as the UK moves away from the EU’s common external tariff. These are:
simplifying and tailoring the tariff;
removing tariffs on key inputs to production;
removing tariffs where the UK has zero or limited domestic production.
The Government will also seek views through a series of events across UK regions and devolved Administrations to engage with businesses, business representatives, consumers, civil society groups, associations and other interested individuals and organisations.
The Government previously developed the temporary tariff regime (TTR) in 2019. The temporary tariff regime was developed for a possible scenario in which the UK left the EU without a deal. Now that the withdrawal agreement has been approved by both the EU and the UK, this scenario is no longer relevant.
The consultation will close on 5 March 2020 and once the Government have carefully considered available evidence, including the consultation responses, an announcement on the UK’s new global tariff schedule will follow in due course.
[HCWS95]
Free Trade Agreements
Elizabeth Truss Excerpts(4 years, 3 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
On Monday the Prime Minister set out our approach to negotiations with the European Union. This statement sets out the Government’s proposed approach to negotiations with other priority partners. Further details will be made available to Parliament as the negotiating process develops.
Having left the European Union the UK now faces an opportunity to re-emerge after decades of hibernation as a campaigner for global free trade. According to the IMF, 90% of global GDP growth is forecast to come from outside the EU over the next 5 years. The UK needs to be ready to capitalise upon this. As set out in our manifesto, this Government have ambitious goals for British trade. We aim to secure free trade agreements with countries covering 80% of UK trade within the next 3 years. We will drive a hard bargain and, as with all negotiations, we will be prepared to walk away if that is in the national interest. Independence will allow the UK to become a truly global Britain, championing free trade and showing the UK is a force for good.
A key priority is to deepen trade and investment relationships with like-minded partners, starting with the USA, Japan, Australia and New Zealand. These bilateral negotiations will also be a potential stepping-stone to joining the comprehensive and progressive agreement for transpacific partnership. Regarding the UK-USA FTA the Government will be setting out their negotiating objectives in due course, alongside a response to the public consultation as well as an initial economic assessment. This will be the first in a series of statements setting out our plans for FTAs with global partners.
By striking free trade agreements with partners across the globe, the UK has the opportunity to increase prosperity in all parts of our country. In the negotiations the Government will strike a tough bargain and seek an agreement in the national interest that removes tariffs and cuts red tape to support British businesses and benefit British consumers, as well as setting out cutting edge rules that will help underpin our world-class digital economy. Any agreement must respect the autonomy and sovereignty of both parties. In its negotiations, the Government will be acting on behalf of the whole UK family and our overall principle is to ensure all parts of the UK benefit from any deal. In addition, nothing in any agreement will undermine the Government’s commitment to tackling climate change.
The Government have been clear that when we are negotiating trade deals, the NHS will not be on the table. The price the NHS pays for drugs will not be on the table. The services the NHS provides will not be on the table. We will not agree measures which undermine the Government’s ability to deliver on our manifesto commitments to the NHS.
As we committed to in our manifesto, in all of our trade negotiations we will not compromise on our high environmental protection, animal welfare and food standards.
Over the last 3 years, the UK has developed a world-class trade negotiation function, bringing the best talent from international organisations, leading law firms, business, civil society and Government. The Government have the capacity to conduct all of its priority negotiations.
Further information on some of the priority areas of the UK-US FTA, is set out below.
Goods market access
The FTA will secure comprehensive, far-reaching and mutually beneficial tariff reductions—taking into account sensitive UK products—which will increase access to the US market for UK businesses, and lower prices and increase choice for UK consumers. This market access will be further supported through the FTA by efficient, predictable, and transparent customs procedures, with a reduction in technical barriers to trade. The FTA will aim to remove measures that currently restrict UK trade and to prevent their imposition in future, while upholding the safety and quality of products on the UK market
Trade remedies
An FTA with the US will enable the UK to protect its interests when threatened by unexpected surges in imports of goods or unfair trading practices, while making the appropriate commitments to transparency, due process and proportionate use of trade remedies. It will also remove trade distorting tariffs.
Sanitary and phytosanitary standards (SPS)
The UK will maintain its own autonomous sanitary and phytosanitary (SPS) regime to protect public, animal and plant life and health and the environment, reflecting its existing high standards. We will not compromise on our high animal welfare and food standards.
Sustainability
The Government will maintain and seek to advance the UK’s world-leading environmental, labour and anti-corruption standards, including to support domestic climate ambition and UK low carbon industries, technology and innovation.
Trade in services
The FTA with the US will provide a boost for our world-leading services sectors including in key UK export sectors such as financial services, telecommunications, professional and business services, and transport services. The Government will make it easier for professionals from across the UK to do business in the US, including by easing business travel, securing ambitious commitments to ensure fair competition and consolidating and improving market access for UK services exporters.
Mutual recognition of professional qualifications
An FTA with the US will encourage the mutual recognition of UK and US professional qualifications, by strengthening regulatory co-operation, so that qualification requirements do not become an unnecessary barrier to trade.
Investment
The US and UK are each other’s biggest investors, creating high-skilled jobs and growing our economies. At the end of 2018, British companies had investments worth £295.1 billion in the US.
The Government will address market access barriers and ensure UK investors operating in the US have the same level of protection and standards of treatment they receive in the UK.
SMEs
Over 31,600 small British businesses are already exporting goods to the US. The Government will seek to include a specific SME chapter in the US FTA to support and further stimulate this trade.
Digital trade
The Government will set global best practice by future-proofing the agreement to take account of changing technology and developing areas of the economy. For example, the Government will secure cutting-edge provisions which maximise opportunities for digital trade across all sectors of the economy.
Intellectual property
Recognising our two world-leading Intellectual Property regimes, the US FTA will secure provisions that support UK creative and innovative industries, whilst maintaining consumer access via an effective and balanced global framework.
Government procurement
To maximise access for UK companies to Government procurement opportunities at US federal and state level the UK will seek additional market access outcomes that go beyond the level set in the World Trade Organization agreement on Government procurement.
[HCWS96]
Export Licences: Saudi Arabia
Elizabeth Truss Excerpts(4 years, 3 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I gave a statement to Parliament on 26 September 2019 on matters related to the breaches of the undertaking given to the Court of Appeal on 20 June 2019 by the then Secretary of State that we would not grant new licences for export to Saudi Arabia of arms and military equipment for possible use in the conflict in Yemen, and the broader commitment to Parliament, also on 20 June 2019, that we would not grant new licences for exports to Saudi Arabia or its coalition partners which might be used in the conflict in Yemen.
The UK Government are deeply concerned by the ongoing conflict and humanitarian crisis in Yemen. The Government fully support the peace process led by the UN special envoy, Martin Griffiths, and urges the parties to engage constructively with this process. A political settlement is the only way to bring long-term stability to Yemen and to address the worsening humanitarian crisis.
In relation to the breaches, I announced that the permanent secretary had commissioned, on my behalf, a full independent investigation to establish the precise circumstances in which these licences were granted, establish whether any other licences have been granted in breach of the undertaking to the Court or contrary to the parliamentary statement, and confirm that procedures are in place so that no further breaches of the undertaking can occur.
This investigation, led by an independent senior official (the director general of policy group in the Department for Work and Pensions), has now concluded. The report identifies the circumstances in which these licences were granted and assesses the interim procedures which were put in place to ensure no further breaches can occur. It is noted that no further breaches of the undertaking or the parliamentary statement have been identified since I updated the House.
The report notes the steps that have been taken to ensure that there have been no further breaches. In particular, the report states that the
“new processes established address the shortcomings that led to the breaches...The process has a greater iterative and real-time involvement, with the weekly meeting process providing more opportunities for information to be updated and changes in circumstances to be reflected in decision-making. There is greater senior involvement and oversight which should strengthen assurance.”
The interim process has led to improved, timely information sharing across Government and there is now a clear process in place to ensure that any changes in circumstances in the conflict in Yemen are addressed. Further steps have already been taken forward, including increased governance and risk management within the export control joint unit (ECJU), to meet the issues identified in the report.
I will be considering whether any further action is necessary to ensure the continuance of robust and rigorous operations and assurance processes more widely within ECJU.
I will be placing copies of the report in the Libraries of both Houses.
[HCWS101]
Global Britain
Elizabeth Truss Excerpts(4 years, 3 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I beg to move,
That this House has considered global Britain.
As the clock strikes 11 tomorrow night, we will start building the UK’s future as a sovereign trading nation. I should make clear that there are many aspects of global Britain that have nothing to do with trade. The Prime Minister will be leading an integrated defence, security and foreign policy review that will examine all aspects of our place in the world. The Foreign Secretary is spending today with his counterpart from our most important ally, the United States. The Government are committed to exceeding the 2% NATO defence spending target, and to spending 0.7% of GNP on development. Today, however, I will restrict my remarks to one aspect of the story, and that is trade.
Global Britain will be a beacon for free enterprise, free trade and free people across the world, and we will light that beacon championing the values for which the UK has long been known. From our abolition of the corn laws in 1846 to helping to found the General Agreement on Tariffs and Trade in 1948, the UK has long been a global leader in shaping the rules-based system, but from 1973 onwards that role has been increasingly curtailed. Tomorrow we will begin to reclaim that global leadership.
It is more than two centuries since our great political economist David Ricardo outlined the idea of comparative advantage, demonstrating how free and open trade benefits everyone, but it is an idea that still illuminates our country, and we have an opportunity to take that message out and across the world. Why is that important? First, it is the right thing to do. Believing in freedom is about more than economic theory. It is about believing in our freedom to set up a business, choose what we buy, and chart our own future. In its essence, free trade is about expanding that freedom across borders. It is the catalyst for sharing ideas, products, services and the innovations that improve all our lives. If we believe that people have the choice to access the best goods and services, we must also believe in free trade.
Secondly, that opportunity is important because Britain’s global leadership is sorely needed. Protectionist measures are on the rise across the world, increasing by three times the rate at the onset of the financial crisis. Brexit is the opportunity for this country to turn the tide, and to be a global champion of free, rules-based trade with the World Trade Organisation at its heart. That is not only morally right, but in the interests of our country. It is forecast that 90% of global growth will come from outside the EU. The world is bursting with opportunity—opportunity that Britain will seize with both hands.
Sir John Hayes (South Holland and The Deepings) (Con)
Leaving aside our contrasting views on Ricardo and the corn laws, I believe that my right hon. Friend and I share a distaste for the vapid, elitist supra- nationalism that the EU represents. Will she consider the possibility of a preferential trading arrangement with our Commonwealth allies, as suggested by the former President of Nigeria? That would build on the bond which already exists in Her Majesty’s realm and beyond.
Elizabeth Truss
My right hon. Friend has made a very good point. The Commonwealth makes up a third of the members of the WTO, and I am determined that we will work with Commonwealth partners not only to reduce tariffs, but to promote the rules-based international system that will benefit all those nations.
As I heard during a recent visit to Stoke-on-Trent, ceramics producers currently face a 28% tariff to export their fantastic crockery to the United States. We export nearly £8 billion worth of cars to the US every year, but, again, we face tariffs. British beef and lamb have been banned from entering the US for more than 20 years. More free trade with our partners, reducing those tariffs and barriers, will play an integral part in our agenda to level up the country.
Bob Seely (Isle of Wight) (Con)
May I follow up the point that my right hon. Friend has just made, very eloquently? CANZUK—consisting of Canada, Australia, New Zealand and ourselves—has the potential to play a considerable role. What are the Government’s plans to strengthen our CANZUK relationship in respect of trade and free movement, as well as other issues of mutual interest?
Elizabeth Truss
My hon. Friend is absolutely right. When we entered the EU, those close relationships with allies such as Canada, New Zealand and Australia fundamentally became less close. We have a huge opportunity, as we leave the EU, to build better relationships. We have already named Australia and New Zealand as two of our priority trading partners, and we want to work with Canada, particularly on accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, so that we can build up those strong relationships.
Stephen Farry (North Down) (Alliance)
Does the Secretary of State recognise that the UK does not, in fact, face a stark choice between maximising trade with either the European Union or the rest of the world? It is perfectly possible for the UK to maximise trade with the rest of the world through the European Union and through UK leadership in ensuring that the EU is open to the rest of the world. This false choice between the two could lead to the UK losing out on a range of opportunities.
Elizabeth Truss
I agree with the hon. Gentleman. We want to have a great trading relationship with the EU, and we want to have a great trading relationship with the rest of the world. Our ambition is to ensure that 80% of UK trade is covered by free trade deals within three years, and that will mean lower tariffs for British producers sending their goods into the EU and also right around the world.
This is hugely important for levelling up our country, from the potters of Staffordshire and the sheep farmers of Wales to the robotics manufacturers in the north-east. By lowering tariffs and striking advanced digital agreements, we will give a boost to local economies, which will increase the number of jobs, increase wages and promote growth in those areas. That is the way we are going to level up our country: through enterprise and trade bringing more opportunities.
We are ambitious about securing a pioneering free trade agreement with Japan, which is already our main source of investment in Asia, employing more than 150,000 people across the UK. There are also fantastic opportunities to expand our trade with Australia in areas as diverse as defence, education, digital and infrastructure. These opportunities with the US, Japan, Australia and New Zealand are significant and will bring real value, but there is also an opportunity for us to become part of world-leading trade arrangements such as the CPTPP, partnering with 11 of the fastest-growing Pacific economies with consumer markets worth over $6 trillion.
We have the opportunity to make great free trade agreements across the world, and global Britain can once again become the ideas factory of the world, building the networks, the trust and the confidence that will underpin the success of British businesses in markets of the future. That is why we recently held the Africa investment summit, breaking down barriers to trade, building business links and forging new relationships in a continent that includes more than half of the world’s 15 fastest-growing economies.
John Penrose (Weston-super-Mare) (Con)
It is good to hear such a doughty defence and exposition of some classical and enduring truths about the importance of free trade, not just to this country and everybody in it but to the rest of the world. Does my right hon. Friend agree that one small but symbolically significant thing we could do is to ensure that free trade is extended to our overseas territories? They are 14 fairly small territories scattered around the world, but each is potentially a trading post for Great Britain, and this could be of benefit to the residents of those territories as well.
Elizabeth Truss
My hon. Friend makes an extremely good point, and of course we want to extend those trading relationships with our overseas territories as far as we can.
I am pleased to say that, as we leave the European Union, we will be launching a new GREAT ready-to-trade campaign, featuring the Union flag and showcasing a modern, confident and successful Britain. We will have billboards and press and digital ads in 18 cities across 30 countries outside the EU, and we will be encouraging investors and buyers worldwide by showing that the UK is ready, willing and able to trade. These efforts are key to our agenda to unite to level up our country, delivering opportunity and unleashing the potential of every part of the United Kingdom.
However, trade is about more than just exports and investment. It is also about shaping the sort of world we want to live in. Let us be honest, there is a battle raging at the moment across the world: a battle between protectionism and free trade, between unfair trading practices and the defence of intellectual property, and between those who wish to restrict human freedom and those who seek to advance it. Let nobody be in any doubt which side the United Kingdom is on.
Mr Peter Bone (Wellingborough) (Con)
Does the Secretary of State agree that one of the opportunities we will have from tomorrow is to allow developing countries to have tariffs removed so that we will get cheaper products and their economies will expand? It is trade, not aid, that is going to solve the problem, and the EU has held us back on that.
Elizabeth Truss
My hon. Friend is right. Of course we are rolling over all the existing trade preference schemes with those nations, but as we leave the EU, we have opportunities to be more flexible. We have an opportunity to add new goods and to ensure that there is not a cliff edge for those developing nations, so that they do not see those trade preferences eroded when they get to a certain level of development. I completely agree with my hon. Friend that it is enterprise in this country that will help us to level up Britain, and it is enterprise across the world that will help us to level up world economies, taking more people out of poverty.
Working together with our friends and allies such as the EU, the United States and Japan, we will defend the frontiers of freedom, opportunity and prosperity for people right across the globe. We will engage at the G7 and the G20 and in the Commonwealth to move forward with WTO reform, update the rulebook and strengthen transparency. We are ambitious not just to defend freedom’s frontiers but to expand them. Just as we led the way in opening trade in goods during the past two centuries, as global Britain we will seek to do the same for services. The UK is the world’s second largest services exporter. The Office for National Statistics has estimated that two thirds of UK service exports are traded remotely, so we will be looking for advanced digital and data chapters to help businesses right across our country to succeed. Investment in the UK tech sector grew faster than any other country in the world last year, according to research by Tech Nation. We want to build on that potential, with future FTAs setting a global benchmark to take advantage of innovations in data, digital collaboration and the digitisation of trade.
We are determined to level up, to deliver opportunity and to unleash the potential of every part of the United Kingdom. We will promote the future of free trade in a world of rising protectionism. Tomorrow, we will demonstrate that Britain is back and we are ready to trade.
Oral Answers to Questions
Elizabeth Truss Excerpts(4 years, 3 months ago)
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Stuart Anderson (Wolverhampton South West) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
As we leave the European Union, we have a huge opportunity to be a liberalising force for trade in the world. We aim to secure agreements with countries accounting for 80% of UK trade within three years of leaving the EU, and as we take up our independent seat at the World Trade Organisation we will be a champion of global free trade.
Anthony Browne
The farmers in my constituency of South Cambridgeshire are some of the most productive in the country and they are very keen to increase exports. They also want to make sure that they are not undermined in the marketplace by competing with farmers from countries that follow lower environmental standards or animal welfare standards. As my right hon. Friend starts the negotiations with other countries to increase trade, what is she doing to make sure that farmers from Britain can compete on a level playing field?
Elizabeth Truss
We remain absolutely committed to upholding our high environmental, food safety and animal welfare standards post Brexit. As my hon. Friend points out, there are huge opportunities for farmers for trade—for example, getting lamb into the US market. The US is the second biggest importer of lamb by value in the world. Currently, UK lamb cannot get into the US market, and that is a huge opportunity for our farmers.
Stuart Anderson
I thank the Secretary of State for that answer. I am keen to know whether these steps will make a visible difference to the businesses in Wolverhampton that trade globally.
Elizabeth Truss
Lowering barriers will mean lower costs for businesses and more choice for consumers. In Wolverhampton and the west midlands overall, we send one in five of all exports to the United States. Getting a trade deal with the US would mean a removal of tariffs on products such as cars, textiles and steel, so there are huge opportunities there for those businesses to grow.
Stewart Hosie (Dundee East) (SNP)
I am glad that the Secretary of State expects us to cut lots of free trade deals, but they do not happen by chance; they happen by detailed analysis and tough negotiations. How does she believe we can succeed in those negotiations when the number of expert trade negotiators she has is a fraction of the 600 the EU has? More importantly, is she not setting herself up for a fall by rather foolishly, in my opinion, embarking on parallel trade negotiations with such limited resources with both the European Union and the USA?
Elizabeth Truss
I am afraid I am not surprised to hear the SNP talking our country down. The fact is that we have scaled up our trade negotiation expertise. We now have approximately the same number as the US Trade Representative, which is one of the leading trade negotiators in the world. Our trade negotiators have already secured £110 billion of trade continuity deals, even though people such as the hon. Gentleman said it could not be done. Those negotiators have a wide experience in trade law from the private sector, and we have also recruited people from other Commonwealth nations with experience from the WTO. We have an excellent team at the Department for International Trade, and we have the staff in place ready to conduct the negotiations with the US, Australia, New Zealand and Japan.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
The statement from the Trump Administration that we will be subject to retaliatory tariffs if we proceed with the digital services tax that is set to come in in April seems an early test of how we will fare in independent trade talks. Could the Secretary of State tell us if the Government intend to concede to American pressure?
Elizabeth Truss
Let me be clear: UK tax policy is a matter for the UK Chancellor—it is not a matter for the US; it is not a matter for the EU; it is not a matter for anybody else—and we will make the decisions that are right for Britain whether they are on our regulatory standards, our tax policy or anything else.
Bob Seely (Isle of Wight) (Con)
Graham Harvey is a constituent of mine who runs an excellent little composites business on the Isle of Wight. He has just won a big order to sell to Taiwan. That is exactly the sort of business that I know the Secretary of State will want to cheer on, but he is finding it extremely difficult to get export finance and banking finance. I have written to the Secretary of State. Does she share my concern that our small and medium-sized businesses are not being given the support that they need to export successfully?
Elizabeth Truss
I am very proud of the work that UK Export Finance does. It has just celebrated its 100th birthday of supplying export finance for British business. I am very keen, and I have laid this out to the team, that we do more to support small and medium-sized enterprises. I would be very happy to look at the case for my hon. Friend’s constituent, and make sure that he is getting the support that he needs. We do have additional available finance, and there is also an exporting toolkit for MPs to help them get in touch with export finance.
Stephanie Peacock (Barnsley East) (Lab)
Aaron Bell (Newcastle-under-Lyme) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We are developing our own most favoured nation tariff schedule, ensuring that it is right for the UK. We want costs kept low for consumers and to ensure UK manufacturers are not disadvantaged against their competitors.
Aaron Bell
I thank the Secretary of State for her answer and for visiting me and my colleagues in Stoke-on-Trent last Friday. For industries such as ceramics and businesses such as Ibstock Brick in my constituency, which has two sites—at Chesterton and Parkhouse—does she agree that it is essential that we put in a robust regime of tariffs when we have countries that do not respect the rules-based order and threaten to flood our market with dumped or subsidised products?
Elizabeth Truss
One of our aims in a US trade deal will be to bring down the tariffs on ceramics. When I was in Stoke-on-Trent, I heard that those producers face a tariff of 28% on their fantastic crockery. We want to bring that down so that we can have more jobs in Stoke-on-Trent. We will also establish the trade remedies authority, which will take a tough line on dumping from the anti-competitive activities of other nations.
Jim Shannon (Strangford) (DUP)
These are changing times for all regions of the United Kingdom of Great Britain and Northern Ireland as we get towards 31 January. Will the Secretary of State further outline what discussions have taken place with the newly restored Northern Ireland Assembly and Executive with regard to trade and tariffs within Northern Ireland, and on its behalf?
Elizabeth Truss
I am pleased to tell the hon. Gentleman that there will be a ministerial forum this afternoon to talk about that issue. We will make sure that Northern Ireland is completely involved in our agenda, because we want our independent trade policy, our tariff policy and our trade remedies policy to follow the priorities across the United Kingdom.
Jack Brereton (Stoke-on-Trent South) (Con)
I join my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) in thanking the Secretary of State for visiting Stoke-on-Trent last week. Does she agree that for industries such as ceramics, it is essential that we have a robust regime of tariffs to make sure that we guard against countries who want to undermine the rules-based system?
Elizabeth Truss
My hon. Friend is right: we cannot allow dumping practices to go undealt with, and the trade remedies authority will be there to take a tough line in areas such as ceramics. Because we are leaving the European Union, we have the opportunity to have a policy that reflects the needs of the UK and the priorities of UK consumers and UK manufacturers. I am determined to have that, but we must also seek to lower the tariffs on exports for our producers, because we want to see British ceramics, particularly from Stoke-on-Trent, on tables around the world.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
Mark Fletcher (Bolsover) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Northern counties exported over £165 billion-worth of goods and services last year, and we want to increase this. New free trade agreements will remove costs for manufacturers and producers and enable those businesses to grow.
Mark Fletcher
I thank the Secretary of State for that answer. As we exit the European Union, it is vital that businesses in Bolsover and elsewhere are encouraged to export to new markets. Does the Department have any plans to strengthen regional teams across the midlands and the north to help businesses take advantage of new trading opportunities?
Elizabeth Truss
I am pleased to tell my hon. Friend that we have 130 international trade advisers and 186 export champions—businesses that already export and that encourage their peers to export—across the north of England. We have just sent out an exporting toolkit to MPs on both sides of the House so that they can get in touch with those local trade advisers and help their businesses export. We estimate that there are 600 businesses in every constituency with the potential to export that do not currently do so. MPs have a really important role in helping those businesses to get the information and support they need.
Damien Moore (Southport) (Con)
Eddie Hughes (Walsall North) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We are a few days away from leaving the European Union, and, for the first time in 46 years, establishing the UK’s independent trade policy. That gives us the opportunity to take up our independent seat at the World Trade Organisation, to champion free trade, and to secure free trade deals with partners around the world. There is a huge opportunity for the UK, and we want to make the 2020s the decade of trade.
Eddie Hughes
There are many great British manufacturers, including Croft Architectural Hardware in my constituency. As well as making products for the Palace of Westminster, it exports them to the United States and China. What more can we do to support fine British manufacturing talent like that?
Elizabeth Truss
I congratulate Croft Architectural Hardware on its brilliant work. I understand that we have helped it to attend two trade fairs in the US through our trade show access programme. I also note that there is currently a 4% tariff on door knockers; I hope that in future trade agreements we shall be able to get that removed.
Barry Gardiner (Brent North) (Lab)
Can the Secretary of State point to any examples of intersecting customs unions anywhere else in the world? Will she confirm that under the EU customs code to be implemented in Northern Ireland, goods will have to be declared and products of animal origin will have to pass through a border inspection involving both documentary and physical checks, and does she accept that those will subsist completely irrespective of the tariff regime in any future free trade agreement with the EU?
Elizabeth Truss
As we have made very clear, we want to ensure that there is no hard border in Northern Ireland. That is a priority for the Government, and we have reached a new agreement with the EU that delivers on it. Of course, we need to work through the details of precisely how that arrangement will work.
The hon. Gentleman needs to recognise that the world is moving on: we are moving into an area in which trade is being digitised, and we are finding new ways of facilitating customs. Rather than being negative and a naysayer, why does he not contribute to the solution?
Angela Richardson (Guildford) (Con)
Munira Wilson (Twickenham) (LD)
Elizabeth Truss
I believe that the UK has a huge opportunity to promote clean energy and our climate change agenda—our carbon reduction agenda—across the world. Yesterday I met the New Zealand Trade Minister to discuss how we can work together in the future to incorporate those into forward-leaning trade agreements. We will seek to do that with the US, the EU, and all the other partners with which we work.
Aaron Bell (Newcastle-under-Lyme) (Con)
Nadia Whittome (Nottingham East) (Lab)
The Minister for Women and Equalities (Elizabeth Truss)
Britain has long been a world leader in ensuring that everybody has equal opportunities, from race relations legislation to the Equal Pay Act 1970. As we leave the European Union, we will continue to forge ahead in these areas.
Vicky Ford (Chelmsford) (Con)
James Grundy (Leigh) (Con)
The Minister for Women and Equalities (Elizabeth Truss)
The number of self-employed women is at a record high of 1.7 million. We are cutting unnecessary red tape and reducing business rates, making it easier for more women to start their own businesses.
James Grundy
I am grateful for the Minister’s response. What grants are available for young women to start their own businesses, particularly in northern constituencies such as mine?
Elizabeth Truss
Starting a business is a fantastic opportunity. It provides people with power and control over their life, and it helps contribute to the economy and their family. We are expanding the start-up loan scheme, which has a particularly high take-up rate among female entrepreneurs. I strongly encourage my hon. Friend to talk to his constituents about this excellent scheme and make them aware of it.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
Young women with disabilities face double the barriers to becoming entrepreneurs. Will the Department work with my all-party-group on disability to look closely at this issue? We will be holding a series of sessions on it to ensure that we have a truly inclusive economy.
Elizabeth Truss
I know that the employment Minister, my hon. Friend the Member for Mid Sussex (Mims Davies), has already agreed to meet the hon. Lady to talk about this issue. She is absolutely right that opportunities to start one’s own business are particularly good for people who need additional freedom and flexibility. I commend the scheme that the hon. Lady is running.
Dr Luke Evans (Bosworth) (Con)
Kenny MacAskill (East Lothian) (SNP)
The Minister for Women and Equalities (Elizabeth Truss)
As we leave the European Union, this great country has a huge opportunity to make the case for freedom and equal rights across the globe. We will be a driving force in the rights for women, including every girl having at least 12 years of education, and we will also push forward LGBT rights, including hosting a major international conference in May.
In Britain, we will continue to ensure that, regardless of gender, race, religion, sexual orientation or where you people in the country, they are able to live the lives they want.
Kenny MacAskill
Torness power station in my constituency is protected by the Civil Nuclear Constabulary. Female officers are now expected to work until 67. Does the Minister accept that, as well as the injustice of women losing their state pension entitlements, there is an injustice to women officers in the Civil Nuclear Constabulary who are expected, at an inappropriate age, to do a job that is physically arduous and demanding? Should the maxim not be dignity in retirement, rather than work until you drop?
Elizabeth Truss
On the subject of women working, one of the great things that this Government did early in the 2010 Session was to make sure that we do not have compulsory retirement and that we do take advantage of the skills of older people into their 60s and 70s. I am very happy to take up the specific issue with the relevant Department, but in general it is right that we have more flexibility and more opportunity for older people.
Craig Tracey (North Warwickshire) (Con)
Elizabeth Truss
My hon. Friend is absolutely right: there is a huge opportunity to get more people, particularly more women, starting their own businesses. I would be delighted to meet him and work with the all-party group to make it happen.
Dawn Butler (Brent Central) (Lab)
The Home Secretary’s response to a question on race relations was actually quite damaging. I am really pleased that the Minister is listening to Labour MPs, but can she clarify what is happening with the Government’s race and disparity unit, and outline steps that she is taking to address the fact that there are no women of colour in top civil service jobs?
Elizabeth Truss
The Home Secretary was absolutely reflecting the fact that Britain is a great country in which to live and that we have very low levels of discrimination compared with the rest of the world. Of course, there is always more that we can do, but that is what this Department is about: removing the barriers that are based on race, gender or disability and making sure that people can thrive. I am proud of the fact that our Home Secretary is from an ethnic minority and that our Chancellor is from an ethnic minority. We have also had two female Prime Ministers. How is that going for the Labour party?
Dr Ben Spencer (Runnymede and Weybridge) (Con)
Work of the Department
Elizabeth Truss Excerpts(4 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I would like to update the House on the work of the Department for International Trade. It has:
Supported UK exports worth over £2 trillion since June 2016. Since the Department was established, UK exports have grown from £537 billion to £654 billion—an increase of 22%.
Sustained the UK’s place as Europe’s top destination for foreign direct investment since 2003. DIT has supported 3,118 individual investments in the UK, helping to create 120,000 new jobs between April 2017 to March 2019 and attracting more projects, new jobs and investment capital than any other European country.
Helped to realise the UK’s potential as the top destination for tech innovation and talent by attracting international investment. This has resulted in the announcement of billions of pounds of investment in the UK from leading technology companies, including £1 billion from software company VMware, £1.9 billion from software company Salesforce, and £150 million from IT service management company Markley Group.
Dismantled barriers and opened up markets to British businesses across the world. This included:
Securing an agreement with China to lift its long-standing ban on exports of beef from the UK, a landmark move for British producers that was estimated by industry experts at the time of the deal to be worth £250 million in the first five years alone;
Lifting a ban on British beef and lamb exports to Japan, allowing exports which at the time were estimated by industry experts to be worth £130 million over five years;
Lifting the ban on British pork exports to Taiwan in August 2018. This has contributed to £2.1 million of UK pork being exported to Taiwan in the first half of 2019 alone.
Securing changes to public procurement rules on early childhood vaccinations in Bulgaria, supporting the UK to win a procurement worth £35 million.
Kicked off detailed technical preparations to ensure that the UK is ready to have our own independent trade policy for the first time in 46 years. This means that now:
We are ready to take our independent seat at the WTO.
We have a trade remedies investigations directorate to ensure UK businesses are safeguarded from unfair trade practices.
We have established working groups and high-level trade dialogues with key trade partners including the United States, Australia, China, the Gulf Co-operation Council, India, Japan and New Zealand. We also continue to use other instruments such as joint trade reviews with countries including China, India and Brazil.
Delivered a series of consultations on new trade agreements with the United States, Australia and New Zealand, as well as potential accession to the comprehensive and progressive agreement for Trans-Pacific Partnership. These attracted over 600,000 responses from businesses and civil society groups across the UK.
Launched a new export strategy further to raise exports to 35% as a proportion of UK GDP. This will build on the increase of exports from 27% of GDP to 30% of GDP since the Department was created. Created the Export Champion network, made up of over 1,000 export champions and advocates, to provide peer-to-peer support to businesses across the UK.
Shielded UK trade from 85% of the additional duties that would have been imposed, by securing 18 continuity trade agreements with countries that accounted for £109 billion of trade in 2018, together with our temporary tariff regime. This will ensure continuity for UK businesses however we leave the EU.1
Attracted more than 94,000 bids for international export opportunities from UK businesses via the GREAT.gov.uk platform. We launched a new export opportunities platform to match UK businesses with international opportunities. Over 285,000 export opportunities have already been published by international businesses and Governments, and GREAT.gov.uk is used by more than 36,000 registered businesses as well as around 140,000 unique visitors each month.
Provided over £7.9 billion-worth of backing for exports through UK Export Finance, supporting over 63,000 jobs since April 2017. In June 2019, UK Export Finance also announced an extensive new finance package to support the UK’s 5.7 million small and medium-sized enterprises to export into emerging markets.
1 See gov.uk for more details: https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries-in-a-no-deal-brexit
[HCWS51]
Oral Answers to Questions
Elizabeth Truss Excerpts(4 years, 6 months ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
I am a big supporter of the WTO, but it does need reform. When the UK takes up its independent seat at the WTO for the first time in many years, we will strongly be backing the rules-based multilateral trading system and making the case for reform.
Martyn Day
10 December—the date on which the WTO appellate body crisis will come to a head—is looming ever closer. Can the Secretary of State confirm that she will follow the European Union in working to restore an operational appellate body, and will she tell us what conversations she has had with her United States counterpart regarding that urgent need?
Elizabeth Truss
When I was at the WTO in Geneva last week, I met David Walker, who is currently leading work to resolve the appellate body crisis. I have given him my full support in that work. It will require movement on behalf of the EU and the US to find a solution to this crisis, but it is vital that we fix this in order to keep the WTO going.
Margot James (Stourbridge) (Ind)
As well as undermining the dispute settlement system, the US is threatening the principles that support developing economies and imposing tariffs for political ends. How does my right hon. Friend propose that the UK stands up for the rules-based order while trying to negotiate a trade deal with the US?
Elizabeth Truss
My hon. Friend is right that the rules- based order is very important. Last week we got the support of all the Trade Ministers of the Commonwealth, who represent a third of the world’s population, to make the case for an immediate resolution to the WTO appellate body crisis and for a rules-based order. As she says, it is particularly important for the smaller countries that do not have the muscle to make their way in trade negotiations to be able to rely on the WTO to resolve disputes.
Mr Jim Cunningham (Coventry South) (Lab)
How exactly do the Government intend to reform the WTO? Are they looking at tariffs, for example? What exactly are they trying to achieve?
Elizabeth Truss
The WTO needs to reform to reflect trade in the 21st century. It needs to become more transparent. We also need to deal with issues such as state-owned enterprises, forced technology transfer and intellectual property, ensuring that these matters are resolved within the WTO. But we also need an appellate body system that works for all WTO members, which is why I am supporting David Walker from New Zealand, who is conducting the review. I urge the US, the EU and all other parties to work together to resolve this situation.
Mr Mark Prisk (Hertford and Stortford) (Con)
May I urge the Secretary of State to use our voice at the WTO to champion both free trade and, as she has described them, “orderly” markets? Now is not the time for world trade to revert to old-fashioned protectionism.
Elizabeth Truss
My hon. Friend is absolutely right. Since the repeal of the corn laws, the UK has stood up for free trade. We were one of the founding members of the general agreement on tariffs and trade in 1947. There is a huge opportunity for us as we leave the EU to retake our independent seat, to make the case for free trade and to be prepared to stand up for the values that we believe in as a country.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will the Secretary of State wake up? She sounds almost as if she is in a trance this morning. Instead of talking to significant people in the WTO, will she come to my constituency of Huddersfield to meet exporting companies and top managers there, who believe that she is sticking a dagger into the heart of this country’s exporting companies? We want to know what the future is for exporting businesses in Yorkshire when we leave the EU, if we have to leave the EU.
Elizabeth Truss
Well, I can tell the hon. Gentleman that I am going to be in Yorkshire next Friday, visiting and talking to exporting businesses such as Bettys of Harrogate and Burberry in Leeds. If he wants to extend an invitation to me to visit an exporting business in Huddersfield, he should get on with it.
Sir Desmond Swayne (New Forest West) (Con)
Will my right hon. Friend be a champion for opening markets to the world’s least developed countries?
Elizabeth Truss
Absolutely. One of the great benefits of trade is the prosperity it can bring to some of the poorest countries in the world. Part of our no-deal tariff schedule is about ensuring that those countries are supported, but we will have a huge opportunity to open up more trade once we leave the EU. At the Commonwealth Trade Ministers meeting, we talked about just that.
Stewart Hosie (Dundee East) (SNP)
We all wish to see reform of the WTO and a functioning dispute resolution system, but given that the UK is responsible for 3.4% of global trade compared with the EU being responsible for 35%—a full third—of global trade, is it not the case that the UK’s influence inside the WTO is now massively diminished?
Elizabeth Truss
One of the groups we are working very closely with is our Commonwealth partners. We are developing a Commonwealth caucus at the WTO that represents a third of the world’s population and has a very strong stake in making sure that the WTO works for small states, in particular. Of course we will work with the EU and of course we will work with the US when it is in our mutual interests, but the fact is that the EU has pursued protectionist policies, and that has not necessarily helped some of the least-developed nations. I believe that the UK will have a unique voice, particularly in favour of free trade.
Barry Gardiner (Brent North) (Lab)
We know that the new Secretary of State can do the impossible, because recently she announced that for the past 45 years the UK had been a member of the WTO—which was only founded in 1995. So will she now inform the House of how she has resolved the challenge that 20 or so members of the WTO have lodged against the UK’s proposed new bound tariff and quota schedules, and of what provisional sum she has agreed with the Chancellor to pay any successful claims?
Elizabeth Truss
The UK was a founder member of GATT, which then became the WTO. As the hon. Gentleman knows, by his definition we would only have been in the EU since 1993, because previously we were in the European Community, as I am sure he has said.
Of course we will work through the issues on the goods schedules at the WTO, and we are doing precisely that at Geneva. Those schedules are all ready to go in the event of no deal. Of course, what we want is a deal, and the Prime Minister is currently in Brussels working very hard to get that. If that is what the hon. Gentleman wants, I suggest that he votes for it.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Brendan O'Hara (Argyll and Bute) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
We are extremely disappointed that the US has decided to levy tariffs, including on the Scotch whisky industry. I have urged my US counterpart to rethink this, and the Prime Minister has also raised the issue with President Trump.
Brendan O'Hara
In the days following this announcement, the Government were asleep at the wheel. We now have only 12 hours before this tariff is implemented. What action will the Secretary of State take in the next 12 hours to delay this? If she cannot delay it, what will she do to mitigate the impact, particularly on small and medium-sized distillers, which rely so heavily on the US market?
Elizabeth Truss
I have been raising this issue with my US counterpart since July, when I first met Bob Lighthizer. I have also raised it with Commerce Secretary Wilbur Ross. I have made it clear to the Americans that it is not helpful in terms of our relationship with them to see these tariffs placed on such an iconic industry, among other industries in the UK.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I welcome my right hon. Friend’s efforts. In my recent urgent question I asked the Prime Minister to speak to the President, and he did, but I also asked that consideration be given to an announcement that the UK would not levy tariffs on bourbon when we left the EU. Can she tell us something about her consideration of that?
Elizabeth Truss
When we leave the EU, the UK will be responsible for its own tariff policy. At this point we are part of the EU and those overall discussions on tariffs, so we cannot make that type of statement. The point I have been making to the US is that this will not help our relationship. We are also being threatened with £1.2 billion of car tariffs, which could hit the UK on 14 November, and I have raised that with my US counterpart. If the US wants the British public to have a positive view of our trading relationship with it, it needs to reverse these decisions.
Jim Shannon (Strangford) (DUP)
Scotch whisky producers will have difficulties with the tariffs that will fall on their whiskies, but the Republic of Ireland will have no tariffs whatsoever. Echlinville distillery in my constituency is an Irish whiskey producer. What is being done to help Bushmills and Echlinville distilleries, which are very important to jobs in my constituency and across Northern Ireland?
Elizabeth Truss
My understanding is that the Republic of Ireland has been hit with tariffs on other products. These retaliatory tariffs following the Airbus dispute have been levied on a number of European countries. The point I have been making to the Americans is that the UK has complied with the WTO ruling. We are not in breach of that ruling any more, and we have met all the compliance stats.
Douglas Ross (Moray) (Con)
The Secretary of State is aware that my constituency is severely affected by a number of the tariffs applied by the US. What will she be doing in the next 12 hours to at least delay these tariffs being implemented? If they are, unfortunately, implemented, what can be done to get them removed as quickly as possible?
Elizabeth Truss
I am aware of the fantastic whisky distilleries—in fact, I visited Macallan with my hon. Friend very recently—and they are an incredibly important part of the Scottish economy, but also an iconic brand for the UK. I am hosting a roundtable with affected industries this afternoon, and the Chancellor is currently over in the US speaking to his counterpart as well. We are putting as much pressure as we can on the United States on this issue. We will also be looking at measures to help the industry here in the UK.
Jane Dodds (Brecon and Radnorshire) (LD)
The Secretary of State for International Trade (Elizabeth Truss)
The best way to avoid potential tariff barriers is to support good free trade agreements with both the EU and the US. I hope the hon. Lady will support any deal the Government bring forward to make sure we can leave the EU with a deal.
Jane Dodds
I have spoken before about the impact of export tariffs on Welsh lamb and beef exports, which would be seriously damaging for the Welsh farmers I represent in Brecon and Radnorshire. We have heard the Government recently talk up Japan as a tariff-free export destination, but only £4,000 of lamb goes to that particular country. Can the Secretary of State provide a guarantee—yes or no—that the livelihood of Welsh farmers, such as those in Brecon and Radnorshire, will not suffer as a result of the imposition of these export tariffs?
Elizabeth Truss
I know that very high-quality lamb is produced in the hon. Lady’s constituency. In fact, I have visited the Rhayader sheep market and seen it for myself. I can assure her that the Department for Environment, Food and Rural Affairs is working with the Treasury to make sure there is support for lamb farmers in the eventuality of potential issues. However, we also need to open up more markets for British lamb. I have particularly got my eye on the US market—it is the second largest importer of lamb by value in the world—and we need to make sure that Welsh lamb farmers have more places to which they can export.
Martyn Day (Linlithgow and East Falkirk) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
I am delighted to have been appointed as Trade Secretary at this vital time in our nation’s history. For the first time in 46 years, we will have an independent trade policy and be able to set our rules and regulations, which means that we will be able to strike deals with likeminded countries such as the United States, Japan, Australia and New Zealand. We will also be able to take up our independent seat at the World Trade Organisation, leading the fight for free trade and participating in the battle against protectionism.
Martyn Day
Ninety per cent. of the world’s illegal deforestation takes place in the Amazon rainforest—something that the Paris agreement explicitly sets out to tackle and reduce. Does the Secretary of State agree that if we are serious about tackling climate change, the ratification and implementation of the Paris agreement must be a precondition for any country that wishes to make a trade deal with the United Kingdom?
Elizabeth Truss
I am a great believer that free trade and free enterprise help us to achieve our environmental goals through better technology, more innovation and more ingenuity. The Minister of State, my right hon. Friend the Member for Bournemouth West (Conor Burns), recently visited Brazil and discussed those precise issues with its Trade Minister.
Kevin Hollinrake (Thirsk and Malton) (Con)
Sylatech is a precision engineering business in Kirkbymoorside in my constituency, but it is suffering a significant business impact due to control delays on its export licence applications. Will my hon. Friend update the House with a timescale to resolve that problem?
Barry Gardiner (Brent North) (Lab)
The House recently passed a statutory instrument to extend EU protection against extraterritorial lawsuits under the US Helms-Burton Act. The Secretary of State will know that investors are already speaking with law firms to launch dispute proceedings against the UK under long dormant bilateral treaties. What estimates has she made of the quantum of such suits, and what protections will she introduce to safeguard the public purse and public policy?
Elizabeth Truss
I thank the hon. Gentleman for his question and I will look into that issue.
Sir David Amess (Southend West) (Con)
Stephen Morgan (Portsmouth South) (Lab)
Elizabeth Truss
I can assure the hon. Gentleman that an incredible amount of work has been going on across Government to make sure that we are fully prepared for all scenarios. The Chancellor of the Duchy of Lancaster has been holding daily meetings—there have been 60 so far—and we are performing well, particularly on making sure that actions at the borders are in place.
Harriett Baldwin (West Worcestershire) (Con)
Our biggest export sector is services, which are invisible, and particularly financial services. Our biggest export market is the US. What discussions has the Secretary of State had about opening up financial services exports to the US and removing some non-tariff barriers?
Elizabeth Truss
My hon. Friend is absolutely right—this is a fantastic opportunity for the UK. When I was out in the US, I met Bob Lighthizer, and I also met the Treasury Secretary to discuss those potential opportunities with him. The UK is not just going to roll over in a trade deal with the US. We will make sure that our industries are promoted. We want barriers removed in the US to our successful service industries.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Elizabeth Truss
I hope that the hon. Lady will be supporting the Prime Minister in his negotiations in Brussels, where he has already secured significant advances to where we were, in particular by ensuring that Britain is able to have its own independent trade policy once we leave the EU, and to control our own rules and regulations.
Stephen Crabb (Preseli Pembrokeshire) (Con)
To avoid freeports just displacing activity, does the Minister agree that freeport activity should be based on the existing unique and distinctive capabilities of a port, such as Milford Haven, the UK’s leading energy port, which has an unrivalled skills base and infrastructure?
Jo Stevens (Cardiff Central) (Lab)
Elizabeth Truss
To be frank, a free trade deal with Colombia is not one of our urgent priorities.
Richard Graham (Gloucester) (Con)
As a result of devastating African swine fever, 130 million pigs have recently been slaughtered in China, which is home to half the world’s pigs. Is this not a great opportunity for my right hon. Friend, who did so much to open this market to British pig farmers, to promote the merits of British products from our pigs, including, of course, the unrivalled Gloucester Old Spot?
Elizabeth Truss
My hon. Friend is right. I was very proud to open the market for pigs trotters into China when I was Secretary of State for Environment, Food and Rural Affairs. Market access is very important. We have seen a massive increase in pork exports to China over the past five years. He is right that our high welfare standards and quality produce are valued across the world. There are lots of new opportunities, including for the Gloucester Old Spot.
Rachael Maskell (York Central) (Lab/Co-op)
Leaked documents from Operation Kingfisher showed that York would be the worst-hit place in the country in the event of no deal. What discussions is the Secretary of State having with my city to ensure that we will be able to trade after 31 October?
Elizabeth Truss
No doubt the hon. Lady will be supporting a deal to ensure that the good people of York have the trading opportunities that they deserve.
Martin Vickers (Cleethorpes) (Con)
Returning to the issue of freeports, the Secretary of State visited Immingham in my constituency last year and saw for herself the great opportunities that exist to improve the local economy. Will she continue working with me to ensure that the Humber ports do indeed receive freeport status?
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Does the Secretary of State accept the Food and Drink Federation’s analysis that, with a complex and confusing no-deal tariff schedule, investment made right across the supply chain in preparing for a no-deal Brexit means that food prices will likely increase?
Elizabeth Truss
The best way of avoiding no deal is for the—[Interruption.] The hon. Gentleman shakes his head, but this is common sense: the best way to avoid no deal is to vote for a deal.
Greg Hands (Chelsea and Fulham) (Con)
Will the Secretary of State give us an update on where we are on joining the comprehensive and progressive agreement for trans-Pacific partnership?
Elizabeth Truss
I discussed that with Trade Ministers when I visited New Zealand, Japan and Australia. They are all very interested in the UK’s joining, and I want to progress that alongside the bilateral discussions that we are having with the countries. It will give us access to 11 fast-growing markets in Asia, so it is a massively exciting opportunity.
Christian Matheson (City of Chester) (Lab)
Will Ministers assure us that, in their desperation to sign any trade deal to justify their Brexit policy, they will not give a green light, or a nod and a wink, to President Bolsonaro to continue the destruction of the Amazon rain forest?
Christine Jardine (Edinburgh West) (LD)
The Minister for Women and Equalities (Elizabeth Truss)
The issue of the response to the consultation on the Act is very important. It needs time for consideration, and I will want to study it closely.
Christine Jardine
Last night, at the PinkNews awards, Baroness Williams of Trafford, the House of Lords Minister for Equalities, said, “bear with us” on gender recognition reforms. Quite frankly, Minister, that is not good enough for people who are already going through one of the most difficult experiences they will ever face—more difficult than we can possibly imagine. They face abuse, discrimination and even, sadly, violence, just because of who they are. So I ask the Minister again: when will we see the results of the consultation, and can she assure me, and the people who are waiting on those results, that the most right-wing Government in decades will follow through on the GRA?
Elizabeth Truss
I completely condemn bullying or violence towards trans people, but I do not think that that could be confused with the complex piece of work that is the reform to the Gender Recognition Act. In particular, I will not be rushed into it. I am very keen that we protect single-sex spaces and vulnerable women, and that we do not rush into reform before we have had full, proper discussion.
Dawn Butler (Brent Central) (Lab)
I welcome the Minister to her new position and look forward to working with her on all these issues. I am losing count, but I think she is the fifth Minister whom I have shadowed since I have occupied this position. However, we do not start from the beginning every time we change Ministers.
Reform of the Gender Recognition Act was promised in 2016. The Minister does not need to look at it carefully; the Minister just needs to expose what came out of the consultation and amend the Act as promised. The Minister needs to stop kicking the can down the road. There has been a 37% increase in hate crime against transgender people, and the Minister is exacerbating the pain and the hurt in the LGBT+ community. Please, Minister, just reform the Gender Recognition Act already.
Elizabeth Truss
As I have said, I completely condemn violence against trans people, and we and the Home Office are doing a lot of work to combat it, but I think it is completely wrong to conflate that with a complex piece of legislation that we need to get right. There are serious concerns about single-sex spaces and ensuring that vulnerable women are protected, and we should get the legislation right rather than rushing into things.
I am afraid that the hon. Lady is trying to make this into a political football. What I am interested in is making the right decisions for the people of Britain so that we have proper protection for transgender people and also ensure that we protect our single-sex spaces.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Carol Monaghan (Glasgow North West) (SNP)
The Minister for Women and Equalities (Elizabeth Truss)
Women represent half of the population, and I believe that we are missing out on a huge amount of talent because we do not have enough women in senior positions. I commend the work of Helena Morrissey who has achieved fantastic results with the 30% Club.
Carol Monaghan
I do a lot of work with science and technology companies and there is still a struggle in many of them to get women into senior positions or get women in at all. We have been using the carrot for decades now to try to get more women into the boardroom; when are we going to start using the stick?
Elizabeth Truss
The hon. Lady talks about science and technology, and one of the big issues is the gap that we have in school education, with fewer girls going on to study maths and science later in their school careers and girls losing confidence earlier on in their school careers. The way for us to tackle that it is to improve our education system, which is why we introduced things such as the English baccalaureate and tougher maths GCSEs, and why we are working more on maths education. I am passionate about this, and I am very keen to drive it forward as Minister for Women and Equalities.
Eddie Hughes (Walsall North) (Con)
The construction industry is notoriously male-dominated, so will the Minister join me in congratulating Caroline Gumble, who has just become chief exec of the Chartered Institute of Building, of which I am a very proud member?
Elizabeth Truss
I completely agree: as well as Bob the builder, we need Brenda the builder. I congratulate my hon. Friend’s constituent on her fantastic achievement. In every walk of life, it should not matter whether someone is a woman or a man; it should matter how good they are and how much effort they put into the job. That is what we champion on this side of the House. We believe that it is about someone’s qualities as an individual, not what group they belong to.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Elizabeth Truss
I have to say that my focus in this job is not on bank holidays; it is on getting more women into work and getting them up the career ladder once they are in jobs. However, if the hon. Gentleman is offering to take on some work while women have a day off, I am sure that we would be very interested in that.
Alison Thewliss (Glasgow Central) (SNP)
The Bank of England Monetary Policy Committee has nine members, eight of whom are women. Will the Minister encourage the Bank to employ more women in senior roles, and the Chancellor to appoint more women when he gets the chance?
Elizabeth Truss
The hon. Lady is right. I describe finance as the final frontier for feminism. We have never had a female Chancellor, and we have never had a female Governor of the Bank of England. The Governor’s job is coming up very shortly, so I am sure that the Chancellor will hear what the hon. Lady has to say.
Mrs Maria Miller (Basingstoke) (Con)
Mohammad Yasin (Bedford) (Lab)
The Minister for Women and Equalities (Elizabeth Truss)
My vision as Minister for Women and Equalities is to ensure that everyone has the freedom to be whoever they want to be and to shape their own future, regardless of their gender, sexuality, ethnicity or disability. I was proud to open the Asia chapter of the Global Equality Caucus during my recent visit to Japan, and I look forward to building on the excellent work of this Government: from ensuring 12 years of quality education for every girl internationally to removing the barriers that stop women getting on at work and bringing LGBT leaders from across the world together in May next year. Together we can make Britain the best place in the world to be a woman and to be LGBT.
Mohammad Yasin
The Child Maintenance Service is failing receiving claimants, most of whom are women. Will the Minister introduce tighter monitoring of direct pay compliance, stop collect and pay charges for receiving parents, and finally introduce a service that ensures effective enforcement of late payments?
Ann Clwyd (Cynon Valley) (Lab)
Elizabeth Truss
I do not believe that we need the EU in order to have strong rights for women in Britain; I believe that we British women are strong enough to stand up for ourselves.
Harriett Baldwin (West Worcestershire) (Con)
We have a gender gap not just in the workplace, but among entrepreneurs; one in 10 men in work are entrepreneurs, whereas only one in 20 women are. What does the Minister think would be the best way to address that?
Elizabeth Truss
My hon. Friend is right about this, particularly in respect of funding. Female-led businesses are getting less funding from venture capital than male-led businesses. We want to address these barriers and open up entrepreneurship to women across the country. We are lagging behind places such as Canada and Australia, and we need to do better.
Christine Jardine (Edinburgh West) (LD)
Patricia Gibson (North Ayrshire and Arran) (SNP)
Elizabeth Truss
It is perfectly proper that we make sure that the right people are voting and that they bring ID with them to the polling to station. We have had issues with electoral fraud in this country.
Kate Hollern (Blackburn) (Lab)
No-deal Brexit: Temporary Tariff Regime
Elizabeth Truss Excerpts(4 years, 7 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Today I am informing the House about updates to the temporary tariff regime announced in March. This regime would come into effect if the UK leaves the EU without a deal on 31 October 2019.
The temporary tariff would apply equally to all countries where the UK does not have a trade agreement or other preferential agreement in place, this would include the EU.
The policy announced in March, and updated today, is designed with consumers and producers in mind. The majority of imports will be tariff free, with tariffs only applying on a small percentage of UK imports. The Government have listened to the concerns and needs of businesses and consumers since the temporary tariff regime was first announced and has made three specific amendments to the tariff rates published in March.
Lower tariffs on HGVs entering the UK market, striking a better balance between the needs of British producers and the SMEs that make up the UK haulage industry, ensuring that crucial fleet replacement programmes that help to lower carbon emissions can continue.
Adjusted tariffs on bioethanol to retain support for UK producers, as the supply of this fuel is important to critical national infrastructure.
Applied tariffs to additional clothing products to ensure the preferential access to the UK market currently available to developing countries, compared to other countries, is maintained.
These three specific amendments will enable UK supply chains to continue to operate smoothly, keep prices down for consumers and ensure that we are fully prepared to leave the EU on 31 October whatever the circumstances.
In considering adjustments to the temporary tariff, the Government have continued to give regard to the five principles set out in the Taxation (Cross-border Trade) Act 2018:
the interests of consumers in the UK;
the interests of producers in the UK;
the desire to maintain and promote external trade of the UK;
the desire to maintain and promote productivity in the UK;
the extent to which goods are subject to competition.
Throughout the temporary period, the Government will also consider exceptional changes where clear evidence is provided by stakeholders against the criteria set out in the Taxation (Crossborder Trade) Act 2018 and would provide a mechanism to hear business and consumer feedback.
The Government aim, where possible, to minimise any new costs to business and mitigate any price impacts on consumers. For that reason, tariffs will only apply to 12% of total UK imports but there will need to be tariffs on some imports to make sure certain industries get the support they need.
This remains a temporary policy that would apply for a period of up to 12 months in the event that the UK leaves the EU without a deal on 31 October.
Information on specific tariff rates that would apply under the temporary tariff have been made available through the Government website.
[HCWS1850]
Arms Export Licences (Saudi Arabia)
Elizabeth Truss Excerpts(4 years, 7 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Chris Law (Dundee West) (SNP)
(Urgent Question): To ask the Secretary of State for International Trade if she will make an urgent statement on the recent unlawful award of arms export licences to Saudi Arabia, in contravention of a Court of Appeal ruling that determined that the UK must cease arms exports to the country.
The Secretary of State for International Trade (Elizabeth Truss)
Today, I will be tabling a written ministerial statement updating Parliament on the latest situation in relation to the undertaking given to the Court of Appeal on 20 June about export licences for Saudi Arabia and its coalition partners. As the Government informed the Court on 16 September and followed up with an affidavit today, my Department identified errors in the export licensing procedure in relation to the Saudi coalition’s activities in the conflict in Yemen.
As I stated publicly on 16 September, I unreservedly apologise for the export licences that my Department issued in error. I have also given my unreserved apology to the Court. A procedure to ensure that export licences for Saudi Arabia and its coalition partners are not granted for goods for possible use in the conflict in Yemen was put in place on 20 June 2019. That followed the Court order and the then Secretary of State’s statement to Parliament.
The Export Control Joint Unit subsequently issued export licences for Saudi Arabia and its coalition partners and, in line with the agreed procedure, these were signed off at official, rather than ministerial, level. It subsequently came to light that two licences were in breach of the Court undertaking, and one licence was granted contrary to the statement in Parliament, as these licences were for goods that could possibly be used in the conflict in Yemen.
Without seeking to prejudice the independent investigation, it appears that information pertaining to the conflict had not been fully shared across government. I took immediate action as soon as the issue was brought to my attention on 12 September: taking immediate steps to inform the Court and Parliament; putting in place immediate interim procedures to make sure the errors could not happen again; and instigating a complete and full internal review of all licences granted for Saudi Arabia and its coalition partners since 20 June. The Department’s permanent secretary, on my behalf, commissioned a full internal investigation.
The Court and Parliament were informed on 16 September with the appropriate detail, and the interim procedures mean that senior officials in the Department for International Trade, the Foreign and Commonwealth Office and the Ministry of Defence guarantee that the latest information available to the Government is used in their advice. All recommendations to grant licences for the export of items for Saudi Arabia and its coalition partners will now be referred to Ministers, rather than being signed off at official level. The full review of licences for Saudi Arabia and its coalition partners is currently being undertaken, and this internal review is still ongoing.
As a result of the internal review so far, we have identified one further licence that has been granted in breach of the undertaking given to the Court of Appeal. This licence has not been used and has now been revoked.
My officials are also carrying out an urgent review of the composition of the coalition. This has identified a further licence that is in breach of the parliamentary statement. We reassessed the licence in the light of the latest information and subsequently revoked it in so far as it applies to Jordan.
My officials continue to review all the information relating to licences granted for Saudi Arabia and its coalition partners since 20 June 2019, and we will be open and transparent with the Court and Parliament as to any new issues that emerge. In addition, the DIT permanent secretary, on my behalf, has commissioned a full independent investigation, which will establish the precise circumstances in which the licences were granted and whether any other licences have been granted in breach of the undertaking to the Court or contrary to the parliamentary statement, and it will confirm that procedures are in place so that no further breaches of the undertaking can occur.
This investigation will be led by an independent senior official: the director general of policy group for the Department of Work and Pensions. It is possible that more cases will come to light. As I have done so far, I will keep the Court and Parliament informed of any new information that emerges.
Chris Law
I thank the Secretary of State for her response. She made the shocking revelation that two further licences break the law and that more may yet be discovered, but I welcome her unreserved apologies for the errors, as they have been called, made so far.
The situation in Yemen is currently the biggest humanitarian crisis in the world, with half the country’s population at risk of famine and 22 million Yemenis in need of aid and protection. Although the UK has given £770 million in aid to Yemen over the past few years, the UK has earned eight times as much from arms sales to Saudi Arabia and its coalition partners. That is the result not of a so-called inadvertent error but of a shamefully incoherent foreign policy that has put profit ahead of upholding international humanitarian law.
The UK has licensed £4.6 billion-worth of arms to the Saudi military, which the United Nations has found to be directly accountable for an estimated 10,852 civilian casualties as of November last year. And now, despite the Court of Appeal ruling that the UK’s arms sales to Saudi Arabia were unlawful, the Secretary of State has approved arms export licences to the Royal Saudi Land Forces.
The Secretary of State has said:
“Given the fact that RSLF troops were deployed in Yemen at the time the licence was issued, this licence should not have been granted.”
How could there ever have been any doubt that the RSLF was in Yemen, given that it makes up more than half the Saudi armed forces, which have invaded Yemen by land? The situation is crystal clear.
The process that led to the licences being granted demonstrates the same carelessness and utter lack of regard for human life that has defined the UK’s arms sales to Saudi over the years. Rather than wasting time and money appealing the Court decision or lobbying other foreign Governments to resume weapons sales to Saudi Arabia, will the Secretary of State rescind these unlawfully granted arms export licences? Furthermore, does she take full responsibility for her Department’s unlawful award of arms export licences, in contravention of the Court of Appeal? If so, will she do the right thing and resign?
Elizabeth Truss
Clearly, the conflict in Yemen is a cause of great concern and we fully support the UN-led process to reach peaceful resolution. As the hon. Gentleman said, we have contributed £770 million of UK aid. What we are talking about today, however, are specific procedural issues relating to export licences.
We have a procedure that follows the consolidated criteria and is very clear about humanitarian law. In its judgment on 20 June, the Court of Appeal was very clear that we have in place a rigorous and robust process. The issue is how that process has been followed. That is why, when I was first informed of this issue, on 12 September, as Secretary of State I took immediate action to have an internal investigation into what had happened. I asked the permanent secretary to get a leader from another Department to fully investigate the process and to make sure that no such licences could be issued in error by putting in place a robust process. At the same time, I took immediate steps to inform the Court and Parliament. I have been completely open and transparent about what has happened.
This is a procedural issue. I do not want to prejudge the investigation, but the issue appears to be the sharing of information across government. That is why senior officials will now be asked to sign off on the advice that is put forward, and Ministers will be asked to sign off these export licences.
Several hon. Members rose—
Mr Philip Dunne (Ludlow) (Con)
I think everyone across the House shares my right hon. Friend’s views on the significance and the horror of the humanitarian situation in Yemen. I believe that what she has expressed to the House today is quite proper remorse and steps to ensure that the Government follow the well-established procedures for arms exports, but will she reflect on the fact that only yesterday the House was debating the impact on the kingdom of Saudi Arabia of the attack on oil facilities in that country by its neighbours across the Gulf, the Iranians? This is a very sensitive area. One of our key allies in the Gulf is under considerable pressure from the Iranian authorities, and we as a Government need to act responsibly to ensure that we stand by our allies when they come under attack.
Elizabeth Truss
My right hon. Friend makes an important point, but the topic of today’s question is the following of procedures in the consolidated criteria. The consolidated criteria are right; they are a good way to make sure that we issue export licences to the right parties. The problem here is specifically whether that process was followed correctly within government and whether information was shared between Departments. That is the issue we have identified. I have taken immediate steps to ensure that information is properly shared when those decisions are taken and to investigate what went wrong, but of course I take full responsibility as Secretary of State, and I have made an unreserved apology both to the Court and to Parliament.
Several hon. Members rose—
Barry Gardiner (Brent North) (Lab)
Indeed, Mr Speaker.
The Government did know; they just did not tell the Department for International Trade. Which Department knew? Which Minister had the responsibility to tell the Secretary of State, and why are they not sitting alongside the right hon. Lady, making an apology to Parliament?
The evidence presented during the court proceedings earlier this year and the recent revelation prove that the Government have failed to abide by their own undertaking. On two occasions since the Court of Appeal’s verdict, licences have been awarded in contravention of the determination precisely because a careful assessment was not carried out. Will the Secretary of State explain why the reports in 2015—the widespread reports that Saudi troops had been deployed on the ground and were leading the co-ordinated efforts of coalition forces in Yemeni territory—were not properly investigated and assessed by her Department? I note her letter to the Committees on Arms Export Controls; the inference is that no such investigation had ever been carried out.
The previous Secretary of State, the right hon. Member for North Somerset (Dr Fox), advised that potential breaches were monitored in a number of ways, one of which was through on-the-ground military and diplomatic staff and our positive close relations with Saudi Arabian officials. The Saudi Arabian officials must have known that their country’s troops were on the ground, so why was that not communicated in the close positive relations that our staff had with them?
I welcome the fact that the Secretary of State has launched a full inquiry, but it will not have escaped her notice that the arms export fair took place in London just a short while ago. Some £6.3 billion of arms have been exported to the coalition by this Government— £5.3 billion-worth to Saudi Arabia. What further deals were done there? The Secretary of State has said that it is possible that more illegal deals may have taken place, but does she actually think that instead of it being possible, it is highly probable?
Elizabeth Truss
The hon. Gentleman asked me first about the process that took place within government. The answer is that the joint unit is staffed by officials from the Ministry of Defence, the Foreign Office and the Department for International Trade, and clearly there was a failing when it came to sharing information across government. A director general of the Department for Work and Pensions is conducting an investigation to look precisely at the question of which Department issued, or did not issue, the information and how it was shared. The results of that investigation will be put forward in due course. This is a complex area. The Export Control Joint Unit approves approximately 16,000 licences a year, so it is important that we get this right and do not rush to an answer before we are ready.
Regarding the consolidated criteria on licensing, it is also important that we adhere to the terms of our undertaking to the Court and our statement to Parliament, and I was talking earlier specifically about breaches of our undertaking to the Court and our statement to Parliament.
Sir George Hollingbery (Meon Valley) (Con)
This is clearly a matter of serious moment. I welcome the tone that the Secretary of State has taken today and, indeed, her admission that things have not gone right. Can she assure me of two things: first, that there is a full and complete investigation going on, which I think she has already mentioned; and secondly, that the aim of the investigation will not just be to find out how this situation happened, but to ensure that it cannot happen again?
Elizabeth Truss
I can assure my hon. Friend that I have put in place an interim procedure to ensure that there is sign-off from senior officials in all three relevant Departments and ministerial sign-off on any proposed export licences to the relevant parties. I also assure him that we are conducting an investigation, which will be led by a director general from the Department for Work and Pensions, into exactly what went wrong in this case to ensure that it cannot happen again.
Stewart Hosie (Dundee East) (SNP)
I recognise and welcome the Secretary of State’s apology and acceptance of responsibility. It is true that the breaches in export licensing that are the subject of this urgent question may well be described, as she said, as “procedural”, but this case highlights some profound problems with her Department. We are talking about spare parts for armoured vehicles and for military radio used by Saudi land forces, which form half the Saudi military and were operating on the ground in Yemen when the licences were issued, forming part of the invasion by land into Yemen by a country—Saudi Arabia—found to be in breach of international humanitarian law, which is precisely what is supposed to be checked before licences are granted.
Can the Secretary of State tell us whether the provision of incomplete information shared across the Government was simple incompetence? Were her Department and others not aware of their responsibilities in this regard? She will have to be convincing, because I am not convinced that the actions being taken so far remove the perception that this Government and this Department are prepared to ignore the law—in this case, from the Court of Appeal—when it suits them to do so.
Elizabeth Truss
The Court of Appeal was very clear in its judgment that there is a rigorous and robust process in place across the Government. The question is about the specific sharing of information between Departments. I have absolute confidence that the unit, when it receives information, implements that in doing its work. The issue is the sharing of information. That is why we have conducted an internal review of the licences already issued as well as asking another Department to look across the board at where information was shared. This is not an issue about the process, which was deemed by the Court of Appeal to be rigorous and robust; it is about how that process has been followed. A lot of people are saying, “Why can’t we do this quicker?” It is very important that we get this right. In the interim period, I have put in place a procedure that makes sure that there is senior sign-off from all three Departments—the Foreign Office, the Ministry of Defence and the DIT—as well as ministerial sign-off. There was not ministerial sign-off on these licences. This was done under the previous procedure. There will now be ministerial sign-off on all the relevant licences.
Several hon. Members rose—
Luke Graham (Ochil and South Perthshire) (Con)
I welcome my right hon. Friend’s statement. It is important when we get things wrong that we own up to it and take responsibility. Can she please assure this House that no further licences will be granted to Saudi Arabia or its coalition partners for weapons that could be used in Yemen, especially when many are Scottish-made?
Elizabeth Truss
I agree that it is important that we are clear when errors have been made, and I am clear that that is the case. I am confident that we now have a robust interim procedure while this investigation is conducted and make sure that we have a proper procedure in the long term to ensure that the process is followed.
Several hon. Members rose—
Ann Clwyd (Cynon Valley) (Lab)
Thank you, Mr Speaker.
Does the new Minister realise that it took almost a year, at the start of this Parliament, to set up the Committees on Arms Export Controls because the Government dragged their feet—and, I would say, dragged their feet deliberately? I am sick of hearing about “rigorous and robust”—this is neither rigorous nor robust. Representatives of the various parties in the Saudi-led coalition were recently at the arms fair. Can she give us an assurance that no new undertakings or contracts were agreed to service or export new goods to the countries involved in the coalition in Yemen?
Elizabeth Truss
The role of the joint unit is to scrutinise licences. I can assure the right hon. Lady that we have put in place an interim process to make sure that all available Government information is reflected in advice to Ministers on the issuance of these licences to Saudi Arabia and its coalition partners and that that will specifically have ministerial sign-off.
Neil Parish (Tiverton and Honiton) (Con)
I very much welcome the Secretary of State’s statement. Britain has played a leading role in both diplomatic and humanitarian aid in Yemen. What more political pressure can we bring to bring about a political solution in Yemen?
Elizabeth Truss
My hon. Friend is right that we play a significant role in terms of aid to Yemen—we have provided £770 million-worth—and it is important that we work through the UN, to which the Foreign Secretary is committed, to seek as quickly as possible an end to conflict in Yemen.
Chuka Umunna (Streatham) (LD)
When Court orders are contravened a couple of times, it can perhaps be dismissed as a failure to follow procedures, but when it happens on multiple occasions, it suggests that there is a systemic problem; the system is not working. Will the Secretary of State look at implementing a policy of the presumption of denial in respect of all export licences to countries listed as human rights priorities on the annual Foreign Office human rights report, so that those exports to those countries would be banned in the first instance?
Elizabeth Truss
To be clear for the hon. Gentleman, it was on 12 September that the errors were identified within the Department and notified to me. We then notified the Court and immediately conducted an internal review of all the licences already issued. All these issues relate to decisions that were made before 12 September, and that is why we have put in place the new interim procedure.
Stephen Kerr (Stirling) (Con)
It is of vital reputational importance that we maintain the most rigorous and robust export licensing regime in the world. To that end, what is the basis upon which these licences are granted, as in this instance?
Elizabeth Truss
The basis on which these licences are granted is in line with the consolidated criteria. Specifically for Saudi Arabia and the coalition partners, we are very much cognisant of the Court of Appeal’s ruling and the undertaking of the former Secretary of State to Parliament.
Ellie Reeves (Lewisham West and Penge) (Lab)
Despite repeated assurances from the Government over the years that they had acted within the law concerning export licences for arms to Saudi Arabia, we found out last week that the Government had acted unlawfully and today that there might be further breaches. When will this Government recognise the plight facing the Yemeni people and immediately suspend all existing and future arms exports to Saudi Arabia?
Elizabeth Truss
I acknowledged in my statement that there have been errors in the way that this procedure has been followed, which is why we have put in place interim measures to deal with this and are conducting an internal review, as well as an investigation by another Department.
Keith Vaz (Leicester East) (Lab)
The Secretary of State’s apology is welcome, but the narrative is shameful. In August this year, 236 Yemenis were killed, and the bombing raids reached 20,000. Last week, a bomb fell on a mosque, and a bomb fell on a family eating their dinner. What do they put on the death certificate? Do they put “death caused by administrative error”?
Elizabeth Truss
As I said earlier, I unreservedly apologise for the errors that were made. That is why, when this was brought to my attention as Secretary of State on 12 September, I took immediate action to stop this happening.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
The Court of Appeal identified a failure by the Government to meet their legal obligation to make a systematic assessment of past possible violations of international law. The Secretary of State today has acknowledged a failure to share information across government. Surely these failures demonstrate that we no longer have a robust system of arms control in this country.
Elizabeth Truss
I do not agree with the hon. Gentleman. We have found specific errors, for which I have apologised and taken immediate action to address, but overall, as the Court of Appeal itself points out, we have a robust and rigorous process.
Graham P. Jones (Hyndburn) (Lab)
May I make a declaration? I have just returned from a two-day visit to Abqaiq in Saudi Arabia, facilitated by the kingdom, and in the coming days I will include that in the Register of Members’ Financial Interests.
As Chair of the Committees on Arms Export Controls, I would like to thank the Secretary of State for writing to me immediately on this issue and making it very transparent what the problems were. The Kingdom of Saudi Arabia is fighting vile terrorists in Yemen who are using human shields. Does she agree that we are approaching the point where our current arms export regulations are not sufficient to deal with the issue of the rebels—the terrorists—using human shields and that the number of civilian casualties is a result of that?
Elizabeth Truss
I thank the hon. Gentleman for his comments. In this particular case, we have already identified a problem in sharing internal information within government which led to these exports licences being issued. Of course we are doing further investigation into that, but that is the specific issue around the breach of the Court of Appeal judgment. That is where I am putting my focus as Secretary of State.
John Woodcock (Barrow and Furness) (Ind)
I refer Members to my declaration in the Register of Members’ Financial Interests. These mistakes are highly regrettable and point to the need for the Government to put their house in order in terms of the overall suspension as quickly as possible. Is it not lamentable for any Member of this House to imply that the suffering in Yemen is principally caused by any arms relationship or our coalition partners rather than the disgrace of the Houthi Islamist regime?
Elizabeth Truss
The hon. Gentleman makes an effective point, but the specific issue I deal with as Secretary of State for International Trade is making sure that our export licensing regime is in line with the process that we have laid out as well as the judgment of the Court of Appeal.
Several hon. Members rose—
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Last year, the Department issued 30 million rounds of Warsaw Pact weapons to Saudi Arabia incorrectly. Then the Court of Appeal judgment and now this. Is it not time for the joint unit to be turned into an independent unit like any other regulator and for the Committees on Arms Export Controls to be turned into a proper Committee of the House?
Elizabeth Truss
As I have said, errors were made and that is why we have asked the director general at the Department for Work and Pensions to conduct a full review of how this process is being operated.
Louise Haigh (Sheffield, Heeley) (Lab)
Are any sanctions available for the companies involved in these mistakes, some of which presumably know full well that they should not be applying for the licences in the first place?
Elizabeth Truss
The issue is the issuance of licences. That is the issue I look at as Secretary of State and make sure that it is in place properly.
Sir Vince Cable (Twickenham) (LD)
Can the Secretary of State describe the action of British officials in Saudi Arabia in overseeing the use of British weapons by the Saudi forces in a process agreed with her Department and the Ministry of Defence?
Elizabeth Truss
This specific issue is how our process was administered within government. The specific cause of these errors, as we have identified so far, has been the lack of information sharing, but of course I will take up the right hon. Gentleman’s point, too.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
When is the inquiry due to report back?
Elizabeth Truss
I hope to have the results of the internal review within the next few weeks.
Hywel Williams (Arfon) (PC)
Was there a change to UK policy on arms sales to Saudi Arabia in 2016 to discontinue consideration of past Saudi humanitarian law breaches?
Elizabeth Truss
As I said, the issue here is not the policy so much as how the procedure was or was not followed.
Andy Slaughter (Hammersmith) (Lab)
In the light of continuing breaches of international humanitarian law by the Saudis, and another disregard for the law by this Government, will the Minister withdraw her appeal?
Elizabeth Truss
The issue in question is specifically about whether or not the process was followed, and today we have submitted an affidavit to the court with full details.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
With regard to the kindness of the House, may I be the first to thank my hon. Friend the Member for Dundee West (Chris Law) for securing this urgent question to expose the utter incompetence around this issue. Thousands of UK citizens, military and civilian, are working on projects that are designed to be beyond the reach of this Parliament. What steps are the Government taking to ensure that they are not involved in projects in Yemen?
Elizabeth Truss
The question refers specifically to the process of issuing export licences, and that is what I have been focusing on.
Brendan O'Hara (Argyll and Bute) (SNP)
Is it not the case that this Government will always seek to break their own rules and turn a blind eye to breaches of humanitarian law when there is money to be made and deals to be had?
Elizabeth Truss
As soon as this issue was brought to my attention on 12 September, I took action to ensure that such things cannot happen.
Alan Brown (Kilmarnock and Loudoun) (SNP)
In reality, these so-called errors were discovered only after third parties took the UK Government to court, and the Government have fought this issue all the way through the courts. Rather than having an interim procedure, is it not time to end arms sales to Saudi Arabia altogether?
Elizabeth Truss
The breach in the Court findings is specifically about how the procedure was followed, and that is what we must focus on.
Arms and Military Equipment Exports to Saudi Arabia: Yemen Conflict
Elizabeth Truss Excerpts(4 years, 7 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Statement on breaches of the undertaking given to the Court of Appeal not to grant new licences for export to Saudi Arabia of arms and military equipment for possible use in the conflict in Yemen.
I want to update Parliament on matters relating to the two breaches of the undertaking given to the Court of Appeal on 20 June by the then Secretary of State that we would not grant new licences for export to Saudi Arabia of arms and military equipment for possible use in the conflict in Yemen, and the further breach of the commitment given to Parliament, also on 20 June, that we would not grant new licences for exports to Saudi Arabia or its coalition partners which might be used in the conflict in Yemen.
As the Government informed the Court on 16 September and followed up with an affidavit today, my Department identified errors that had taken place in the export licensing procedure in relation to the Saudi coalition’s activities in the conflict in Yemen.
As I stated publicly on 16 September, I unreservedly apologise for the export licences that my Department issued in error. I have also given my unreserved apologies to the Court.
A procedure to ensure that export licences were not granted for goods for Saudi Arabia and its coalition partners for possible use in the conflict in Yemen was put in place on 20 June 2019. This followed the Court order and the then Secretary of State’s statement to Parliament.
The export control joint unit subsequently issued export licences to Saudi Arabia and its coalition partners and, in line with the agreed procedure, these were signed off at official rather than ministerial level.
It subsequently came to light that two licences were in breach of the Court undertaking, and one licence was granted contrary to the statement in Parliament as these licences were for goods that could possibly be used in the conflict in Yemen. The first licence identified as raising this issue (Licence No. GBSIE2019/06449) was for the export of a single Wirewound Air Cooler, valued at £200, for incorporation by a French company, Arquus Defense SAS, in a Renault Sherpa Light Scout. Officials in ECJU have informed me that the licence application stated that the vehicle would be used by the Royal Saudi Land Forces in Saudi Arabia and they have provided me with the following information about this licence. This is in line with the formal role of the FCO and the MOD in providing advice on the Consolidated EU and National Arms Export Licensing Criteria (the “Consolidated Criteria”) to the DIT.
Thereafter the sequence of events was as follows:
On 3 June 2019, the FCO recommended approval on the basis that the RSLF were not operating in Yemen.
On 4 June 2019, the MOD provided its advice recommending approval on the basis that the goods would not be used against the security or capability of the United Kingdom and that the equipment would not be diverted to an undesirable end-user.
On 4 June 2019, the case was recirculated to the FCO who again, on 6 June 2019, provided its formal advice, recommending issue.
On 18 June 2019, the FCO received information from the British Embassy in Riyadh that some RSLF troops were deployed in Yemen. Consequently, there was a risk that equipment destined for the RSLF might be used in the conflict in Yemen. The FCO was unaware that the licence had not already been issued and did not pass this information on to the DIT. We are investigating exactly how and when information was shared between FCO and DIT. In any event, it is plain that the DIT was not aware of the deployment of RSLF when the licence was formally countersigned and issued on 26 June 2019.
The item was shipped and this licence is therefore now spent.
Licence No. GBSIE2019/07556.
This licence was for the export of 260 items of various radio spares for the RSLF Signal Corps, valued at £435,450.
Thereafter the sequence of events was:
The application was circulated to the FCO and MOD on 31 May 2019.
The FCO provided its advice recommending approval on 6 June 2019.
The MOD advised approval on 26 July 2019.
The licence was formally countersigned and issued on 29 July 2019.
Given the fact that RSLF troops were being deployed in Yemen at the time the licence was issued, this licence should not have been granted.
DIT officials have checked with the exporter: 180 items have been shipped, with a value of £261,450, leaving 80 items licensed but unshipped with a value of £174,000. DIT officials revoked this licence on 16 September 2019.
Licence No. GBSIE2019/08983.
This is a licence for the temporary export for demonstration purposes of dual-use counter-improvised explosive device equipment. These goods remain under the exporter’s control at all times and so there is consequently no possibility that the equipment could be used in the conflict in Yemen. Consequently the licence is not within the scope of the undertaking.
Although not a breach of the undertaking, one further licence was identified (Licence No. GBSIE2019/06671) that was granted for the export of equipment for which the end user was the UAE Navy, contrary to the statement to Parliament. Export control joint unit officials cannot be sure that the relevant class of ship will be used solely for maritime security operations rather than in the conflict in Yemen. DIT officials revoked this licence on 16 September 2019 on the grounds that it was granted contrary to the parliamentary statement. Other licences have been issued to the UAE Navy that do not fall within the scope of the parliamentary statement.
Without seeking to prejudge the independent investigation, it appears that information pertaining to the conflict had not been fully shared across Government.
As soon as the issue was brought to my attention on 12 September, I took immediate action:
Taking immediate steps to inform the Court and Parliament;
Putting in place immediate, interim procedures to make sure the errors could not happen again;
Instigating a complete and full internal review of all licences granted for Saudi Arabia and its coalition partners since 20 June;
The Permanent Secretary commissioned, on my behalf, a full independent investigation.
The additional compliance processes comprise the following steps (in addition to the existing licensing processes):
A checklist has been drawn up for licence applications for arms and military equipment to Saudi Arabia and its coalition partners. This will be used by FCO and DIT officials when an export licence application is received for Saudi Arabia and/or any of the coalition partners. It is intended to ensure that staff remain vigilant in considering the available information and in assessing whether the application potentially falls within the scope of the undertaking and the parliamentary statement. A copy of this checklist is attached;
Licence applications for arms and military equipment to Saudi Arabia and its coalition partners will be referred to a new weekly meeting of senior officials from DIT, FCO and MOD. Some applications will have been refused by this point, for example where they fail to meet one or more of the Consolidated Criteria. This meeting will reach a recommendation for Ministers as to whether applications are within the scope of the undertaking and the parliamentary statement, applying a further checklist of questions which are designed to ensure that: (i) current and full information is available to enable an assessment of whether the items in question are for possible use in the conflict in Yemen; and (ii) if there has been any change in circumstances in the conflict in Yemen, this is properly included in the assessment. A copy of this secondary checklist is attached;
All recommendations to grant licences for the export of items to Saudi Arabia and its coalition partners will be referred to Ministers.
These additional compliance measures will be reviewed by the independent investigation, as well as kept under review by DIT to ensure that they are robust and appropriate.
The full review of licences for Saudi Arabia and its coalition partners is currently being undertaken. This internal review is still ongoing.
As a result of this internal review, we have identified one further licence that has been granted in breach of the undertaking given to the Court of Appeal. Licence No GBOIE2019/00197 allowed the exporter to return and repair electronic countermeasure improvised explosive device equipment licensed previously under three licences issued in 2014 (Licence Nos. GBSIE2014/010932; GBSIE2014/013148 and GBSIE2014/000512) to Saudi Eraad Defence Systems in Saudi Arabia (an agent of the RSLF). There are no new items being shipped under this licence. The equipment is deployed as an electronic countermeasure to prevent the triggering of a remotely controlled improvised explosive device.
The process of approval for this licence was as follows:
The application was received by DIT on 14 February 2019 and was circulated to the FCO, the National Cyber Security Centre at GCHQ (“GCHQ-NCSC”) and the MOD on 12 March 2019. It was circulated to GCHQ-NCSC for an assessment of whether the use of cryptography gave rise to any concerns.
On 19 March 2019, GCHQ-NCSC advised that the application raised no concerns in relation to the use of cryptography.
The FCO and MOD similarly recommended issue on 2 April and 16 July 2019 respectively.
DIT countersigned the licence on 12 August and issued the licence on 13 August 2019. Given the fact that RSLF troops were being deployed in Yemen at the time the licence was issued, this licence should not have been granted.
DIT officials contacted the exporter who confirmed that this licence has not been used. DIT officials revoked this licence on 20 September 2019.
The licence has not been used and has now been revoked.
My officials are also carrying out an urgent review of the composition of the coalition. This has identified a further licence which is in breach of the parliamentary statement. Licence No. GBOIE2016/00197b permits the export of fuel gauges for F-16 military aircraft to a number of countries which operate the F-16. The licence was originally granted on 5 August 2016 with an expiry date of 5 August 2019. On 28 August 2019 we extended the expiry date to 5 February 2020.
We have re-assessed this licence in light of the latest information and subsequently revoked it in so far as it applies to Jordan. At the time the licence was extended, the relevant officials in ECJU believed Jordan was not involved in military operations in the conflict in Yemen.
We have been able to confirm that none of the other recipient countries covered by this licence are coalition partners.
My officials are continuing to review all information relating to licences granted to Saudi Arabia and its coalition partners since 20 June 2019 and we will be open and transparent with the Court and Parliament as to any new issues that emerge.
In addition, the Permanent Secretary has commissioned, on my behalf, a full independent investigation. This will establish the precise circumstances in which these licences were granted, establish whether any other licences have been granted in breach of the undertaking to the Court or contrary to the parliamentary statement, and confirm that procedures are in place so that no further breaches of the undertaking can occur. This investigation will be led by an independent senior official, the Director General of Policy Group in the Department for Work and Pensions.
It is possible that more cases will come to light. As I have done so far, I will keep the Court and Parliament informed as to any new information that emerges.
Checklist for case assessment involving arms or military equipment
This is to be used by DIT and FCO licensing officers when an export licence application is received for Saudi Arabia and/or any of the coalition partners (CP). This checklist is in addition to the normal assessment against the Consolidated EU and National Arms Export Licensing Criteria (“the Consolidated Criteria”). If the assessment against the Consolidated Criteria identifies an application that should be refused, then it will follow the usual refusal procedure.
DIT licensing officers must check to ensure that all the required information is available to enable a decision to be made as to whether Saudi Arabia and/or a CP destination is involved in the export. This will include asking the exporter for further information where they suspect that the final destination could be Saudi Arabia or a CP. This will then be recorded as a case note on SPIRE.
FCO advisers must check to ensure that they are aware of the latest position on the conflict in Yemen, including the countries involved and the military forces involved. The FCO adviser, once in possession of the latest information, will carry out an analysis against this checklist. The analysis must be recorded on SPIRE.
Which countries are currently in the coalition involved in the conflict in Yemen?
Which military or government branches from Saudi Arabia or each CP are currently operating in the conflict in Yemen, so far as HMG is reasonably aware?
If a direct export (to any of Saudi Arabia or its coalition partners):
Is the consignee or end user a private/commercial enterprise with an industrial/civil/personal or private end use?
If yes - please record analysis on SPIRE, including that it is not in scope of the undertaking to the Court or parliamentary commitment.
Is the end user the civil police forces or emergency services of Saudi Arabia and/or a CP?
If yes - please record analysis on SPIRE, including that it is not in scope of the undertaking to the Court or parliamentary commitment.
Is the consignee or end user the armed forces of Saudi Arabia and/or a CP?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
Is that branch of the armed forces involved in the conflict in Yemen?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
If an indirect export (to any destination):
Are the goods to be incorporated Into equipment to be subsequently sold or delivered to the armed forces of a country whose forces are involved in the conflict in Yemen?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
This licence application must be referred to the weekly DIT-FCO-MOD senior officials meeting.
Checklist For DIT-FCO-Mod Senior Officials Meeting
Establishing the operating context:
Have all the licence applications for consideration in this meeting had full consideration against the Consolidated EU and National Arms Export Licensing Criteria (“the Consolidated Criteria”)?
Which countries are currently part of the coalition involved in the conflict in Yemen?
Has any new country joined the coalition?
Has any country left the coalition?
Has the armed forces/branch of Saudi Arabia and coalition partners involved in the conflict in Yemen changed so far as HMG is reasonably aware?
Has FCO confirmed that its advice, against the relevant criteria, is still up to date? (e.g. there is no information from posts (or other reasonably available sources) that post-dates the advice entered onto SPIRE that may call into question the recommendation)
Has MOD confirmed that its advice, against the relevant criteria, is still up to date? Assessing against the undertaking to the Court and the commitment to Parliament:
Has each application been assessed against the terms of the undertaking to the Court and the commitment to Parliament?
Is it clear that none of the applications involve arms or military equipment for possible use in the conflict in Yemen?
The discussion in each meeting should be recorded on a template which is uploaded onto each relevant case on SPIRE. This will form part of the advice provided to Ministers after the meeting.
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