Oral Answers to Questions

Graham Stuart Excerpts

Thursday 25th February 2021 Commons Chamber

[Miriam Cates (Penistone and Stocksbridge) (Con)]

What steps she is taking to improve access for UK exporters to high growth global markets.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

Driving access for UK exporters to high growth markets worldwide is at the heart of this Department’s work, securing new free trade agreements, removing trade barriers and informing, encouraging, connecting and financing exporters. Ninety per cent of global growth—90%—over the coming years is expected to be outside Europe, so that is why we are hitching UK business to the fastest growing markets and have recently applied to join the CPTPP.

[Daniel Kawczynski]

I thank my hon. Friend for that answer. What action is the UK taking to increase our export footprint in future growth areas such as renewable energy, particularly in countries such as Mongolia?

[Graham Stuart]

The Department—not only in renewables, but in minerals as well—is running a mining export campaign for Mongolia, supporting UK-based investors and our mining supply chain, using the unique convening power of government to engage with the Mongolian Government and mining businesses. We are supporting UK investment in solar and waste energy plants, and are in discussions with the Mongolian Government on UK participation in infrastructure projects, including renewables, which my hon. Friend mentions, and hydropower. Atop all that is the cherry, in the form of my hon. Friend, who is the Prime Minister’s dynamic and effective trade envoy for the country.

[Dr Davies [V]]

I thank my hon. Friend for all the work he does to strengthen trading relationships between Britain and our international partners. Can he assure me that the Department for International Trade regularly engages with businesses of all sizes across the UK, including in north Wales, to ensure that the objectives of the Department are closely aligned with the needs of industry?

[Graham Stuart]

My hon. Friend is quite right to highlight this issue. DIT has a relationship with more than 200,000 UK businesses, ranging from large multinationals to small start-ups. Our UK-based sector teams, our highly experienced trade advisers across the regions and devolved Administrations, and our teams in our overseas embassies all work closely with UK businesses to support their export ambitions, while our export academy programme builds small and medium-sized enterprise know-how, enabling businesses to sell to customers around the world with confidence.

[Miriam Cates [V]]

Steel manufacturers such as Liberty Speciality Steels in Stocksbridge produce high-quality components that are used across the world. Steel produced in Europe has half the carbon footprint of equivalent Chinese imports, and, as countries follow the UK’s lead in reducing emissions demands, demand for green steel will increase. How will my hon. Friend ensure that UK manufacturers such as Liberty Speciality Steels in Stocksbridge can capitalise on this growing market and make global Britain the world leader in green steel?

[Graham Stuart]

I thank my hon. Friend for that excellent question. There is a real opportunity here, is there not? That is why the Government have a range of schemes in place to help the steel sector to expand its green exports into those growing global markets. That includes establishing a £250 million clean steel fund and providing £66 million through the industrial strategy challenge fund to help steel manufacturers to develop radical new technologies and establish innovation centres of excellence. These funds will be accessible to all UK steel manufacturers, including those in my hon. Friend’s constituency, which I am sure value her long-standing commitment to the sector, and her permanent and regular efforts to raise them in the House.

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

Dream Climbing Walls is a Scottish business that was exporting to the high-growth market that is the European Union, which accounted for around 60% of its sales. After Brexit, its costs due to customs charges and delivery add-ons have skyrocketed. Goods that would normally take three to four days to arrive are currently a month in transit. Because of this Government, that business is now climbing the wall in a very different sense. What steps is the Minister taking to sort out this Government’s calamitous mess, and will he now urgently look at measures to compensate the thousands of companies just like Dream Climbing Walls that have lost out as a result of this Government’s actions?

[Graham Stuart]

May I congratulate the hon. Gentleman on his personal commitment to rigorous scrutiny and ensuring that the Government are held to account? I am sure that he would agree that others could do likewise in being similarly robust. As my right hon. Friend the Secretary of State has already made clear, it is our noble friend Lord Frost and the Cabinet Office who lead on that particular work. There are teething problems and there will be on ongoing frictions every day, but I am pleased to say that we are reducing those and are now seeing a return to pre-covid levels at our border. We will continue to work with and support our exporters in order to learn how best to do this. I hope that the hon. Gentleman will ensure that his Administration support his colleagues in the SNP and beyond to help support exporters.

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

I appreciate that the Minister wants to promote exports to some countries more than to others, but many of our constituents trade with Europe and need to safeguard their existing relationships before going looking for new ones. That is just good business practice. His Department telling exporters to open an office in the EU is not good practice when it is its answer to delays at the border that it was warned about. When are Ministers going to sort out the problems at the border that mean businesses are drowning in red tape?

[Graham Stuart]

I would have hoped that the shadow Minister would be aware of where Government responsibilities lie in terms of the negotiations with the EU, but I can assure him that the work is ongoing to do that. I am sure that the hon. Gentleman, who is, unusually for a Labour Member, a former businessman himself—[Interruption.] I am being endlessly heckled by the shadow Secretary of State, who probably knows where I am going with this, because she appears more interested in exports to Venezuela and Russia and only last month was chiding the Secretary of State for talking to the US—

[Mr Speaker]

Order. We don’t want to fall out again, do we? We have got Anne McLaughlin in Glasgow waiting.

[Mr Speaker]

With the Minister’s family background, we might get a good answer.

[Graham Stuart]

I must congratulate the hon. Lady on the speed of her uptake, because yes indeed, as I have said in my previous answers, this is for a different Department of Government. I think she suggested that the EU was a growing share of the global market, but it is not. Twenty years ago it was the majority of our exports; now it is a minority. Its share of global GDP has been falling. We are, at the direction of the Secretary of State, pitching our business to the fastest-growing parts of the world, not the more sclerotic.

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

Mounting costs are killing one of our biggest exports—culture—with additional duties on physical product and performers. My constituent Andy Smart has regularly performed at two comedy/ski festivals, but now one of them no longer accepts Brits, preferring the Irish, and the other has been cancelled as unviable because of Brexit obstacles. Can we work cross-departmentally to abolish these levies, because, as one of those festivals is called, it is literally taking the piste?

[Graham Stuart]

There is no one better in this House than the hon. Lady at marrying sociological insight with popular culture, and of course as an experienced DJ she knows more about music than most of the rest of us. I entirely agree with her, though, that we have to work flat out, in a cross-governmental way, to ensure that we minimise any frictions at the border for those vital and important cultural exports of which music is an important part.

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[Simon Baynes (Clwyd South) (Con)]

What recent assessment she has made of the potential effect of her Department’s trade policies on growth for British businesses.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

The Department’s trade policies aim to support growth, productivity and jobs for British businesses. The OECD estimates that 6.6 million UK workers were supported by exports in 2015. In addition, the Department’s recently published impact assessment shows that the UK-Japan free trade agreement could increase UK GDP by £1.5 billion in the long run compared with trading under WTO terms.

[Simon Baynes [V]]

Given that the St David’s day debate is being held this afternoon, will the Minister comment on his Department’s activities in promoting exports by Welsh companies, such as Ifor Williams Trailers, AE Sewing Machines in Ruabon, and the Rhug Estate’s famous Welsh beef and lamb in my constituency of Clwyd South?

[Graham Stuart]

It is never too early to celebrate St David’s day and the doughty exporters of Clwyd South, as well as the rest of the Principality. We are lowering barriers to Welsh exporters through trade deals, supporting them through staff in 119 countries, organising trade missions, providing online resources and championing them at international events. We have a long-standing relationship with the Rhug Estate, and we continue to support Welsh produce in particular, as part of both the Food is GREAT campaign and the Open Doors campaign, announced with fanfare only this week by the Secretary of State.

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

As the Government continue to hide the overall effect of their trade policies, the first official estimate from the European Commission shows that this Government’s Brexit deal will cost the UK at least 2.25% of GDP by the end of next year. In addition, two out of three supply chain managers report experiencing import delays of two to three days. Is that why the Minister is going so far to remove questions and avoid scrutiny of this disastrous Brexit deal in the Chamber? If he denies that, will he now publish the impact assessments prepared for his Government, which have so far been hidden away from those who deserve to know the real costs to business and families?

[Graham Stuart]

I can assure the hon. Gentleman that we are certainly not avoiding scrutiny; we are just directing it to where it rightly should go. He knows all about those who are seeking genuinely to avoid scrutiny. As I have been double-Drewed today, I pay tribute to the efforts he makes. All I will say as a final point—before I am cut short yet again by Mr Speaker, quite rightly, and even as I lose my attention because I am barracked so often by the right hon. Member for Islington South and Finsbury (Emily Thornberry)—is that he voted no deal, so it is odd for him to be complaining so much.

[Mr Speaker]

Of course, we would not expect the Minister to try to abuse his position.

[Claire Hanna (Belfast South) (SDLP) [V]]

Northern Ireland opposed Brexit, but it has happened. The protocol is its outworking, and it has to be made to work. The SDLP is determined to maximise the opportunities available to this region from being the crossroads between the UK and EU markets. We have written to the Minister seeking support in promoting Northern Ireland and this unique access. Will he commit his Department to promoting Northern Ireland to investors who are seeking access to both the EU and UK markets?

[Graham Stuart]

I commend the hon. Lady’s positive attitude. She is absolutely right: whatever our views on Brexit, we have to get on, make the most of it and support our businesses, as she is doing, and I can give her that commitment. We will absolutely work with her and Invest Northern Ireland, which does a fantastic job in conjunction with DIT to promote both investment into Northern Ireland and exports from it.

[Mr Speaker]

Let us head to Yorkshire with shadow Minister Paul Blomfield.

[Paul Blomfield (Sheffield Central) (Lab) [V]]

I am no longer shadow Minister, but happy to be contributing to this debate, Mr Speaker.

Moon Climbing, a specialist rock climbing supplier in my constituency, tells me how, since January, new barriers have damaged its trade with Europe. In line with the advice of DIT officials, it set up a base in the Netherlands to avoid the barriers and it anticipates that that will

“be our main base from which we service both the EU and the rest of the world”.

I heard the Minister and the Secretary of State say earlier that it is nothing to do with them, but, frankly, companies expect the Department for International Trade to take some responsibility for trade, so what are they doing to prevent more UK businesses moving abroad as a result of the damaging Brexit deal—losing UK jobs, GDP and tax revenue?

[Graham Stuart]

The British people decided to leave the European Union. We are supporting businesses, in Europe and beyond, but it is not overly complicated to accept that it is the Cabinet Office and the unit led by Lord David Frost that are taking responsibility for those negotiations. However, we work actively, and we run webinars with thousands attending, and I and other Ministers participate in those to give people the tools to overcome the frictions that inevitably result from our departure. I am pleased to say they are declining over time, and I am confident that we will return to where we were in 2019, when we were the only top 10 exporting nation in the world to see our exports rise and, the hon. Member will be delighted to hear, we overtook France to become the fifth largest exporter in the world.

[Neil Parish (Tiverton and Honiton) (Con)]

What progress she is making on securing a free trade agreement with Australia.

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[Andrew Lewer (Northampton South) (Con)]

What steps her Department is taking to assist British small and medium-sized enterprise exporters with EU VAT regulations under delivered duty paid terms.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

While VAT in the UK is a matter for the Treasury, and in the EU it is the responsibility of member states, my Department is aware of SMEs feeling pressured to supply on a delivered duty paid basis. That is a matter for commercial decision between contracting parties, but none the less, we provide support for SMEs through our international trade adviser network, and just last week we held a webinar as part of the UK Export Academy dealing with Incoterms in general, of which DDP forms part.

[Andrew Lewer [V]]

Many SMEs have EU clients that are themselves SMEs, which understandably do not wish to be importers and thus take on extra regulatory burdens. Due to the insistence on DDP terms, UK exporters have to try to reclaim EU VAT. I hear what the Minister says about different responsibilities and so on, but in his co-ordinating and supportive role, will he agree to meet me and representatives of the British Promotional Merchandise Association, to hear at first hand the difficulties that its members are having and to explore solutions, even if they are cross-departmental?

[Graham Stuart]

In a belated attempt to score some points with Mr Speaker, I will simply say that I would be delighted to do so.

[Mr Speaker]

You might slip on something; be careful!

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[James Sunderland (Bracknell) (Con)]

  As we embark on our recovery from covid-19 in the post-EU era, will my hon. Friend provide the assurance that businesses in Bracknell need, and will he please outline what measures have been considered to improve the attractiveness of British exports?

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

Bracknell businesses should be assured that we have a plethora of new initiatives to whet their exporting appetites. We are committed to helping businesses realise their economic potential through exports, and we provide a comprehensive global system of support to help them do so. There are a range of initiatives that enhance UK exporting, including our international export hubs, the £38 million internationalisation fund providing grants, and UK Export Finance’s general export facility, another new initiative, all of which combine to help upskill firms, build their capability and finance everyday costs.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab) [V]]

One of my Saddleworth constituents who runs a small import-export business in woollen goods has told me of the difficulties that his business is facing, including that there is no customs clearance agent in the UK who will take on new clients. This is in spite of the fact that he was told, prior to Christmas, that this would not be an issue. As I speak, he has bulk export products delayed in Madrid and Milan airports, Dublin port, at the Greece and Turkey border and in Tokyo. He says that the cash flow implications for his businesses will be very damaging. This, of course, is all within six weeks of Brexit, a situation that he feels will eventually cripple his 19-year-old business. He asked me, and I ask the Trade Secretary in turn: why is this such a mess, and where are the grassy uplands that the Government promised?

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[Steve Brine (Winchester) (Con)]

It was good to see the Government’s new Open Doors food and drink export campaign launched this week at the National Farmers Union conference, but I was rather surprised to see that only one in five food manufacturers sell overseas at the moment. Will the Minister tell me how producers in Hampshire can take advantage of our new international opportunities and trade deals through Open Doors and what support is available?

[Graham Stuart]

The simple answer is for them to go to gov.uk/growbyexports. There are educational masterclasses, meet the buyer events and the opportunity to send samples of their products to overseas buyers in specially selected hampers. Those are just some of the activities open to Hampshire businesses.

[Patricia Gibson (North Ayrshire and Arran) (SNP) [V]]

With the Biden Administration announcing plans to end arms exports to Saudi Arabia, the UK is isolated on the world stage as it continues to sell arms to this barbaric regime. Will the Minister explain how this Government can claim to have the most effective export regime in the world when it has the moral stain of being virtually isolated in the world in its obstinate support for Saudi Arabia, which is a serial human rights violator?

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[Robbie Moore (Keighley) (Con)]

It was brilliant to welcome the Secretary of State to Keighley when she met Tony Day from Marrose Abrasives; they are export champions, with products going worldwide. We have many brilliant manufacturing businesses in Keighley that are hungry for growth opportunities around the world. I would welcome suggestions on how they can get involved and influence future trade arrangements so that we can make exporting easier.

[Graham Stuart]

Is not it fantastic to hear that genuine enthusiasm for business, jobs and the prosperity that results? What a shame we do not hear it from the Opposition. I know that my right hon. Friend the Secretary of State enjoyed her visit to Marrose Abrasives, and there are many opportunities before our negotiations with New Zealand, Australia and the United States. We have conducted public consultations. We have trade advisory groups, so through representative organisations and others, we are open every day to hear from businesses such as Marrose and make sure that their voice is heard and drives our trade policy objectives.

[Beth Winter (Cynon Valley) (Lab) [V]]

This month’s figures show that the UK authorised arms sales worth almost £1.4 billion to Saudi Arabia. In the same month, the UN warned that the conflict in Yemen had taken a sharp escalatory turn. As several other Members have asked, will the Minister please explain why he has not followed the lead of his counterparts in the US and Italy and halted arms sales to Saudi Arabia? Does he agree that this behaviour has actively undermined efforts on peace talks?

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

As our economy looks to recover from covid-19, there are businesses in my constituency that can expand globally. Will my hon. Friend outline what steps the Department is taking to help not just large companies but SMEs to access global markets? Will he join me in encouraging businesses in the Vale of Clwyd to attend the first local parliamentary export programme event on 4 March?

[Graham Stuart]

SMEs are vital to increasing UK trade, which is why we are seeking SME chapters in all our free trade agreements, and we provide a vast range of support for them. I congratulate my hon. Friend on being a trailblazer for the parliamentary export programme, and I encourage businesspeople in the Vale of Clwyd to attend the virtual meetings that he is organising, chairing and using to ensure that his local companies get all the international sales support that Government can offer.

[Yasmin Qureshi (Bolton South East) (Lab) [V]]

Does the Minister agree that we cannot remain silent or indifferent to the worst crimes and atrocities, whether against the Rohingyas in Myanmar, the Uyghurs in China or people anywhere else in the world? Will she guarantee that the Government, although not supporting the genocide amendment that is coming to the House soon, will at least stop playing political games and allow a straight vote on the matter?