Oral Answers to Questions

George Hollingbery Excerpts

Thursday 11th July 2019 Commons Chamber

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

8. What recent progress the Government have made on implementing its export strategy.

[The Minister for Trade Policy (George Hollingbery)]

This summer marks three years since the DIT was established and one year since the publication of the Department’s export strategy, which sets out how the Government will encourage, inform, connect and finance UK businesses to take advantage of the international demand for British goods and services. Last month, we announced a new package of financial support from UK Export Finance to help businesses, and small and medium-sized enterprises in particular, to do just that.

[Peter Aldous]

Does the Department’s export strategy make provision for promoting the expertise of British business in the emerging markets of offshore wind and the late-life decarbonising management and decommissioning of oil and gas fields?

[George Hollingbery]

Yes, the offshore wind sector deal announced earlier this year will support UK companies to seize the export opportunities generated by the rapidly expanding market. The DIT is working with markets such as Taiwan, with which I recently hosted an offshore wind roundtable last month, to support their engagement with the UK supply chain. On oil and gas production, the DIT is engaging with the industry and stakeholders on export opportunities across the full industrial lifecycle.

[Sir Geoffrey Clifton-Brown]

We have already heard that our trade agreements with the EU amount to about 11% of our trade, which is significant. Will my hon. Friend update the House on where he expects to have got with rolling over all the existing trade agreements by the time we are able to make our own independent trade policy?

[George Hollingbery]

Since the Department’s formation three years ago, the DIT has grown its trade negotiating capability from a standing start to a fully trained core of specialists. That has allowed us to negotiate the transition of EU free trade agreements, representing almost two thirds of trade covered by these agreements, and we continue to work intensively on the balance.

[Mr Jim Cunningham (Coventry South) (Lab)]

What is the Secretary of State doing in relation to manufacturing in the west midlands, which has the Jaguar Land Rover and black cab companies, to increase their exports given the market has had a slight downturn as a result of Trump’s sanctions on China?

[George Hollingbery]

Of course, Jaguar Land Rover remains an extraordinarily important company to the UK. It has faced some challenges recently, but the announcement of the new electrification programme in the west midlands is extremely welcome. As the hon. Gentleman might expect, the DIT has been very heavily involved in that process.

[Kevin Brennan (Cardiff West) (Lab)]

But what has the DIT been doing through its export strategy about the automotive sector in Wales and in particular in Bridgend, with the announcement that Ford will close the engine plant? What can the Department do to try to persuade Ford to change its mind about this and to ensure that we have a thriving export sector?

[George Hollingbery]

The hon. Gentleman will know that the Department for Business, Energy and Industrial Strategy has been very heavily involved with Ford at Bridgend; in the end this is a matter for the company itself, but I have no doubt that BEIS has had productive conversations with it. The DIT is, along with BEIS, investing very large amounts of money across Government in electrification and the automotive market of the future. That involves huge amounts put into research and development at universities, and we believe that will put the UK car industry in a very good position for the future.

[Michael Fabricant (Lichfield) (Con)]

7. What recent discussions he has had with his counterpart in the US Administration on trade and investment between the UK and the US; and if he will make a statement.

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

T2. Can market access agreements be even more important than free trade agreements?

[The Minister for Trade Policy (George Hollingbery)]

My right hon. Friend is absolutely right. There are some huge opportunities in market access. Indeed, we have identified one potential change in China that, if negotiated, might be worth £10 billion of turnover over a considerable period through one regulation alone. Resources at the Department at the moment are necessarily skewed towards FTAs, because of the trade agreement continuity process, but they will in due course shift towards market access, which is terribly important.

[David Linden (Glasgow East) (SNP)]

T3. Can the Secretary of State explain what his Department is doing to encourage the EU and US to resolve the Airbus and Boeing subsidies dispute without resorting to tariff retaliation in unrelated sectors, including UK agri-food products?

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

T4. As South Korea is the third largest export market for ceramics, does the Secretary of State agree that the recently signed outline free trade agreement with South Korea is a huge boost for the ceramics industry?

[George Hollingbery]

The transition agreement will replicate the effects of the preferential market access in the existing EU-South Korea FTA, providing certainty for businesses and allowing them to continue trading on preferential terms. It will provide a firm basis for the further strengthening of our ambitious trade and investment relationship as we work together in future.

[Ian Murray (Edinburgh South) (Lab)]

T6. The Secretary of State promised this House that all bilateral trade deals between the EU and other countries would be rolled over by 29 March, including a bilateral trade deal with the EU itself. How many will be done by 31 October?

[George Hollingbery]

I could just ask the hon. Gentleman to look up the answer that I gave a few moments ago. We have signed roughly two thirds of the deals already and we expect there to be more. As for the number, it is well over 50%, and a large number of the countries in there are agglomerated into blocs, but we are confident in terms of trade that we will have two thirds or thereabouts.

[Andrew Lewer (Northampton South) (Con)]

T5. The Secretary of State rightly said that we will need an agreement with the EU to allow a GATT 24 basic deal to apply, but does he not accept that GATT 24 and a temporary FTA would save the EU £13 billion in tariffs and the UK just £5 billion, so the EU has every incentive to back it?