Oral Answers to Questions

George Hollingbery Excerpts

Thursday 25th April 2019 Commons Chamber

[The Minister for Trade Policy (George Hollingbery)]

The Government support UK services businesses to access foreign markets in a number of ways, including through trade promotion and facilitation. For example, in March 2019, the DIT took a delegation of eight leading UK FinTech companies to exhibit at Money 20/20 in Singapore. The DIT also works with partners overseas to remove access barriers, opening up new opportunities for UK businesses.

[Michael Fabricant]

My hon. Friend will know that in this rather complex world environment, there is a confusion at times under WTO rules between goods and services. Once we leave the EU, get a clean break and regain our place at the WTO table, will he make it a priority to make clearer definitions of what are goods and what are services?

[George Hollingbery]

I thank my hon. Friend for his question. He is right; there are a great many complexities at the WTO. In fact, the world is sliding inexorably towards a future of increased protectionism without changes being agreed at the WTO to address all problems and to cope with new forms of trade that simply did not exist even 10 years ago and that create the confusion he identifies. As a newly independent voice, the UK will be a champion for change, openness and co-operation, because believe me, Mr Speaker, a failure to deal with the problems the WTO faces is not an outcome that anybody should want to contemplate.

[Several hon. Members rose—]

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

Can all those on the Government Front Bench tell me what I should say to my service and manufacturing industries that export overseas? For years, they have been frustrated that the Chinese are stealing their patents and intellectual property, but now this Government are going to open not only the back door but the front door to the Chinese to take their secrets and undercut them.

[George Hollingbery]

In the past week, the Chinese have agreed a joint communiqué with the EU about the forced transfer of intellectual property, which gives us some comfort. We work extensively with the Chinese Government through joint trade reviews to examine various areas of the economy, particularly in services, where we can address this. I believe that progress is being made on this front, but I go back to the point I made to my hon. Friend the Member for Lichfield (Michael Fabricant): this is a complex area. WTO rules make this very difficult to address, and we need to change it.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

Three quarters of our economy is in services, yet over 90% of service firms export nothing. What more can be done to change this underlying culture and systemic issue, so that the majority of service firms export?

[George Hollingbery]

As I mentioned in answer to the previous question, we are conducting a number of joint trade reviews with India, China and Brazil—some of the largest economies in the world—to ensure that we address some of these access barriers; to ensure that, for example, Chinese-language contracts are translated into an official English version; to ensure that service providers understand what the rules and regulations are; and to ensure that qualifications are matched across the piece. There is a great deal we can do and more that we will do.

[Stephen Gethins (North East Fife) (SNP)]

I welcome what the Minister said about trying to open up overseas access to UK service companies. However, is it not hugely disappointing that the continuity agreements with Norway and Switzerland exclude trade in services? Is it not the case that if, post Brexit, we revert to WTO rules trade with the EU, we would see a massive 26% fall in global service trade, with just as bad a fall in the UK’s service trade even if we get that free trade agreement?

[George Hollingbery]

As we approach the negotiations with the EU on the future economic partnership, services will play a large part in that. We have signed mutual recognition agreements with Australia and New Zealand, and as for the Norway and Switzerland deals, we should never forget that 35% of pretty much all the goods contracts entered into by the UK is contained within services value. This is not just a matter of pure services, but of goods as well.

[Bill Esterson (Sefton Central) (Lab)]

Service exporters depend on an international workforce, but arbitrary immigration targets limit their ability to recruit the staff they need. Growing our market share in services is essential to the future success of our economy, so if this Government truly have a global strategy, why are businesses that want to export being denied access to a global pool of talent?

[George Hollingbery]

On the whole, the services businesses that are exporting are doing so by establishing overseas, and therefore recruitment in the UK does not particularly concern them, as they are employing people in foreign countries. That said, we know there is an issue with provision of skilled labour in the UK. The immigration Bill, when it comes forward, will provide reassurance on the ability to recruit people with certain skill levels, and I look forward to seeing that.

[Rachel Maclean (Redditch) (Con)]

3. What steps he is taking to ensure that the (a) regions and (b) devolved Administrations of the UK contribute to the formulation of new free trade agreements.

[The Minister for Trade Policy (George Hollingbery)]

We are committed to ensuring a meaningful role for the regions and devolved Administrations in the development of our trade policy. The DIT has been consulting widely on its approach to potential FTAs with regional representatives from local government and local enterprise partnerships. I can further confirm that we are putting in place a new ministerial forum with the devolved Administrations to cover international trade, as well as continuing to discuss wider future working arrangements on trade policy.

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[Rachel Maclean]

Indeed.

[George Hollingbery]

As my hon. Friend will know, my hon. Friend the Member for Lichfield (Michael Fabricant) is very keen on our keeping up contact with the Mayor of the West Midlands combined authority. We of course do so, and create contacts with businesses that way. The strategic trade advisory group, which will be helping us with FTAs, includes representation from regional business. We will always be there to consult with local business, and I urge my hon. Friend the Member for Redditch (Rachel Maclean) to contact the local DIT business office in Birmingham in relation to any businesses in Redditch that need its help.

[Jessica Morden (Newport East) (Lab)]

Does the Minister accept that the devolved Administrations must be fully involved in developing both the negotiation mandate and the negotiations themselves when the international trade negotiations have an impact on devolved competencies?

[George Hollingbery]

I have visited the devolved Administrations several times and I talk with the Ministers on a regular basis. I absolutely agree with the hon. Lady that the devolved Administrations have a key part to play as we go forward and negotiate our free trade agreements. We are currently in negotiation with the DAs on putting together what is known as a concordat on how they will be implemented. The progress on that, to be quite frank with the House, has been disappointingly slow. From our end, we have not reached an agreed policy position, but we will do so shortly, and I am keen that the devolved Administrations are properly involved.

[Patrick Grady (Glasgow North) (SNP)]

If all these trade agreements are going to be so glorious, irresistible and beneficial to the economy, why not simply give the devolved Administrations the power to express their consent through legislation for each of them?

[George Hollingbery]

The matter of trade policy is a reserved power.

[Mr Philip Hollobone (Kettering) (Con)]

4. What assessment he has made of the implications for the responsibilities of his Department of including UK membership of the EU customs union in the EU-UK political declaration.

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

5. What steps the Government are taking to protect intellectual property rights in international trade agreements.

[The Minister for Trade Policy (George Hollingbery)]

The UK’s intellectual property regime is consistently rated as one of the best in the world. The Government are reviewing their future trade policy as we leave the EU and ensuring that existing trade arrangements with global partners—including provisions on intellectual property—continue uninterrupted on the day the UK leaves the EU.

[Mr Carmichael]

The Minister will no doubt be aware that tomorrow is World Intellectual Property Day, and this year the theme is sport and intellectual property. A number of United Kingdom-based companies have had their intellectual property stolen by beoutQ, a Saudi Arabian-based pirate broadcaster, including—I know this will interest you, Mr Speaker—last Monday’s Watford against Arsenal match. What steps are we taking to protect the intellectual property rights of UK businesses and sports interests, and will we use our trade policy to hold to account countries such as Saudi Arabia that are allowing the theft of our country’s intellectual property in that way?

[George Hollingbery]

I am not familiar with the case raised by the right hon. Gentleman, but if would like to drop me a line, I would be happy to look into it more carefully. We will continue to make representations to Saudi Arabia on that point. The UK intellectual property regime is respected around the world, and our local, European and international commitments produce one of the tightest and most respected regulatory regimes for IP worldwide. We believe that is the right system, and we will insist that it is honoured by others, particularly if we are to do trade deals with them.

[Matt Western (Warwick and Leamington) (Lab)]

The Minister is right to encourage small and medium-sized businesses to do more trade internationally, but those businesses are the most vulnerable to the risk of intellectual property theft. What assurances and support can the Minister give companies such as those in the digital games sector in my constituency, to encourage them to do more abroad?

[George Hollingbery]

I refer the hon. Gentleman to the answer I gave a moment ago. We have one of the most robust and respected regimes for IP protection internationally. A specialist group sits in the Department for International Trade and advises on IP matters, and that is very important to this country. We recognise the extent of exports that are driven by games, TV, sports and so on, and that is hugely important to us. SMEs should get in contact with local DIT offices. We can always help and would be delighted to do so.

[Vicky Ford (Chelmsford) (Con)]

6. What his priorities are for the GREAT campaign in 2019-20.

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[Ben Lake (Ceredigion) (PC)]

The Canadian model offers a useful example of how the devolved Administrations should be involved in trade policy formulation. Does the Secretary of State agree that a substantive role in the strategic trade advisory group is essential for the meaningful involvement of the Welsh Government in UK trade policy?

[The Minister for Trade Policy (George Hollingbery)]

The strategic trade advisory group is there to provide a broad societal view of what should be achieved in free trade agreements. We are of course talking in depth with the Welsh Government about their views on what we ought and ought not to be doing on trade policy, the industries we should be championing and how. I do not think that the strategic trade advisory group is the right place for that engagement, but there is of course a Welsh business represented on the group.

[Jeremy Lefroy (Stafford) (Con)]

It is vital for us to encourage low-income countries to participate fairly in world trade, and for that they need inward investment. Will the Minister kindly advise us on what the UK is doing to promote investment into low-income countries so that they can participate fairly and reasonably in world trade, with world-class goods and services?