Oral Answers to Questions Debate
Full Debate: Read Full DebateGraham Stuart
Main Page: Graham Stuart (Conservative - Beverley and Holderness)Department Debates - View all Graham Stuart's debates with the Department for International Trade
(4 years, 5 months ago)
Commons ChamberOur food and drink sector is vital to our economy. In 2019, exports increased by nearly 5% to £23.7 billion. We want to see that success continue and will shortly be launching a bounce back strategy for the industry as the world recovers from covid-19.
I am grateful for that answer. I draw your attention, Mr Speaker, to my entry in the Register of Members’ Financial Interests. There are significant opportunities to increase agricultural exports, but for the UK to make the most of them, there is a need to dramatically increase food and drink processing capacity. What discussions has my hon. Friend’s Department had with the Treasury, the Department for Environment, Food and Rural Affairs and the Department for Business, Energy and Industrial Strategy, so as to ensure that the right fiscal and grant arrangements are in place?
My hon. Friend is right to raise that important issue. My Department is working closely with DEFRA, BEIS and Her Majesty’s Treasury to understand the market and investment trends in the agriculture and food processing sector in a post-covid environment. The Department for International Trade’s high potential opportunity—HPO—programme, which is part of our levelling-up agenda, is already attracting investment in food and drink programmes throughout the UK. For instance, there is agricultural engineering in Telford and aquaculture in Dorset. However, we want to do more, which is why, in partnership across Government and as part of our forthcoming export strategy, we will work to identify new investment opportunities in the sector and its supply chain, so that UK agriculture’s full potential can be realised internationally.
I know that my hon. Friend is, like me, proud that the UK tech sector is the dominant and most successful in Europe. With 79 unicorns and counting, last year the sector attracted a third of all European tech investment—more than France and Germany combined. That success has continued this year, and just last week the Secretary of State launched a new tech strategy to support the internationalisation of our firms, including a digital trade network across the Asia Pacific.
British entrepreneurs are at the cutting edge of developing technology medicines—from apps to medical devices—in the fight against coronavirus. What support is my hon. Friend giving to our health tech start-ups to access overseas markets where British innovation can help to save lives?
My hon. Friend is right: companies such as Cambridge-based C2-Ai, which last week won the CogX award for covid-19 health innovation, are leading the way in the UK’s cutting-edge health tech sector. C2-Ai saves lives by predicting avoidable harm and mortality to free up capacity in intensive care units for covid-19 patients. My Department is supporting dozens of firms just like C2-Ai that are looking to provide covid-19-related treatments. We have also produced a directory of those British digital health companies that provide covid-19 solutions and shared that with our international network, in response to inquiries from Governments around the world.
In 2018, Northumberland and Tyne and Wear exported goods worth £496 million to the US, £130 million to Japan, £24 million to New Zealand and £216 million to Australia. Against a backdrop of rising trade barriers, our FTAs will secure and protect existing trade, and, according to our analysis, FTAs with the US, Japan, Australia and New Zealand will go further and bring additional export opportunities to every part of the country, including Blyth Valley.
In Blyth Valley we have many successful companies that trade globally. As we move closer to the deadline of 31 December 2020, will my hon. Friend please advise the House as to what steps the Department has taken to help companies such as Dräger Safety and Tharsus in Blyth, and Miller engineering and Renolit in Cramlington—to name just a few—so that they can take advantage of free trade agreements?
My team is developing a new export strategy, which will align DIT support for exporting businesses, such as the ones my hon. Friend mentions, with our FTA and market access work. In February, my right hon. Friend the Secretary of State visited Tharsus and Port of Blyth, and they emphasised to her how important data and digital chapters were for them. Blyth Valley companies will be supported by ambitious FTAs, an enhanced network of international trade advisers in the northern powerhouse, and teams in 108 countries around the world.
When the UK left the EU, we had successfully signed trade continuity agreements with 48 countries, accounting for £110 billion of UK trade in 2018. Now we are seeking new trade agreements so that UK trade is diversified and better aligned with global growth. Analysis shows that the US deal, for instance, will benefit all parts of the United Kingdom, although Scotland and the midlands will gain most. That US deal could reduce tariffs and non-tariff barriers for everything from Scottish cashmere to automotive manufacturing in the midlands, machinery manufacturing in the north-west and our world-class services sector in the south-east, the midlands, Northern Ireland and elsewhere.
The Humber ports contribute so much to the UK economy, providing a critical trade route into Europe and beyond. Like my hon. Friend, I am proud that the Humber is one of the busiest and fastest growing trading areas in Europe, is responsible for a quarter of the UK’s seaborne trade and hosts 30,000 international shipping movements each year, yet it can do so much more; and, with the help and support of my hon. Friend, it will do so. I cannot comment on any individual free port bids, but I encourage anybody who wants their views taken into account to respond to the Government’s consultation before it closes on 13 July.
Does my hon. Friend agree that trade options such as free port status will add a major boost to our local economies, and that free port bids, such as the one involving Carlisle Lake District airport in my constituency of Penrith and The Border, warrant serious further consideration?
As I have said, I cannot comment on individual free port bids, but as I am someone who was born and brought up in Carlisle, my hon. Friend can certainly expect support and sympathy in this part of the Government.
I know that the hon. Gentleman will welcome the unprecedented support for businesses and workers, including small businesses and the self-employed, that this Conservative Government have put in place. SMEs are the backbone of our economy and will be at the heart of the Department’s new export strategy as our response to covid-19.
Do the Government recognise that, aside from covid-19, one of the biggest threats to small businesses in the UK is reaching the end of the transition period with no trade deal? What assessment have they made of the number of SMEs in the UK that would go bust if faced with the toxic combination of covid-19 and a no-deal Brexit in December?
The hon. Gentleman is absolutely right about the importance of SMEs. They need Government support to enter international markets, and that is why the DIT exists. We are not responsible for negotiation with the EU, but we are confident that we will reach a good deal with it. The Department is putting SME chapters in our trade deals with other countries. It is a pity that the Labour party opposes every trade agreement and continually shows its indifference to small business and enterprise, but I am looking to the hon. Gentleman, as he may be able to do what no others have done and lead the shadow Secretary of State away from being an enemy of business and towards supporting it, as he does.
The automotive industry will see more change in the next 10 years than it is seen in the past 100. That is why we are investing so heavily in research and development to ensure that the UK industry can be a global leader in clean transport. Lowering trade barriers is an essential step in attracting further investment and allowing the industry to thrive at a time of unprecedented change.
The Society of Motor Manufacturers and Traders and the Japanese Automobile Manufacturers Association say that a UK-Japan agreement would greatly benefit economic prosperity in the UK and Japan. What opportunities for the sector does the Minister see in future FTAs that would help businesses such as Ford UK, based in Basildon?
My hon. Friend and the SMMT are both right. Turkey—as well as Japan—is important, not least to Ford. We prize our trading relationship with Turkey and recognise how important Turkish supply chains are to our automotive manufacturers, including Ford of Britain. I am pleased to say that UK and Turkish officials are working hard to ensure that trading arrangements transition into a bilateral agreement at the end of the implementation period, and I thank my hon. Friend for highlighting, unlike the right hon. Member for Islington South and Finsbury (Emily Thornberry), issues that will help prosperity, jobs and businesses in this country instead of posturing and posing for the benefit of the hard left.