Oral Answers to Questions
Graham Stuart Excerpts(4 years, 1 month ago)
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Marco Longhi (Dudley North) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Technology is an important and growing sector. In fact, sales of our digital tech exports totalled £23 billion last year, and Oxford Economics thinks they will be worth up to £31 billion by 2025. Our ambitious approach to digital trade in free trade agreements will boost exports, and support economic growth, job creation and prosperity. We have negotiated strong measures, not least in Japan, and will seek similar outcomes in our talks with the United States, Australia, New Zealand and the comprehensive and progressive agreement for trans-Pacific partnership.
Andy Carter
Will the Minister tell us a little bit more about the UK-Japan free trade agreement, and particularly how it will help businesses in Warrington South and the north-west to do more business with Japan?
Graham Stuart
There are specific issues including not having to worry about the added cost of setting up data servers in Japan because of the elements that look at data transfer; a guarantee that the trade secrets underpinning innovations of entrepreneurs in my hon. Friend’s constituency are protected and do not have to be shared across borders; and a clear commitment that entrepreneurs on both sides of the agreement will be able to operate in an open, secure and trustworthy online environment.
Marco Longhi
The deal with Japan includes some very ambitious chapters on digital and data, and a deal with the United States is set to benefit tech firms. Will my hon. Friend advise how Black Country firms can make the best of these future opportunities?
Graham Stuart
Tech firms in my hon. Friend’s constituency and across the UK will benefit from the opening of markets and the minimisation of barriers to trade, which will allow them to expand internationally, not least in the Asia-Pacific region. The joint DIT and Department for Digital, Culture, Media and Sport digital trade network, which was launched by my right hon. Friend the Secretary of State in June, will significantly improve our support for businesses from my hon. Friend’s constituency in that fast-growing part of the world.
Nick Fletcher (Don Valley) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
My Department recorded 331 foreign direct investment projects in the northern powerhouse in 2019-20, creating or safeguarding more than 11,000 jobs. DIT is dedicated to supporting international investment into the UK, and it can be argued—in fact it is quite hard to argue against—that we are the most successful major economy in the world in attracting foreign direct investment to our shores. Our dedicated staff across the north work closely with partners in Yorkshire and Humber to attract new and existing investors, match them to opportunities and maintain our position of having more foreign direct investment than any other nation in Europe.
Nick Fletcher
Does the Minister agree that with all the new markets his Department is opening up for the UK, the Government must do all they can to support the many young entrepreneurs of Don Valley?
Graham Stuart
My hon. Friend is absolutely right. How refreshing it is to have a representative in the Don Valley who cares about business and recognises that trade needs to look at the wide scope of issues but at its heart is about the economic benefit that it brings to local people. Again and again, in session after session of these questions, the Labour party focuses on everything other than the economic benefit—the jobs and prosperity—that trade brings. That is why this Government will continue to support entrepreneurs; the Opposition come up with complex and sophisticated arguments, but again and again they oppose the very measures that will help to ensure employment and prosperity for the people of this country.
Alexander Stafford (Rother Valley) (Con)
Mark Fletcher (Bolsover) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Since the start of covid-19, my Department has been committed to doing everything it can to help exporters. Helping them to bounce back with extensive economic recovery measures continues to be a major priority. After significant monthly decreases in UK trade during the early stages of the pandemic, the UK is now seeing record month-on-month increases in exports, rising by 16.5% in June and a further 5.6% in July.
Mark Fletcher
I recently visited Blachford UK in Holmewood in my constituency. This brilliant manufacturer enjoys fantastic relations with many countries around the world, particularly Canada. Does the Minister agree that it is a shining example to exporters around the country and we need more companies like it, particularly in Bolsover?
Graham Stuart
Absolutely—we need more companies like Blachford. That is why we are transforming our digital offer to exporters and negotiating a continuity agreement with Canada. It would be great to see Opposition MPs joining us in encouraging their local exporters in the manner of my hon. Friend. I understand that he planted a maple tree at Blachford on a recent visit. I suggest that we should all be planting trees and celebrating our local exporters.
Sir Mark Hendrick (Preston) (Lab/Co-op)
Ian Paisley (North Antrim) (DUP)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Export finance guarantees are provided through UK Export Finance, the UK’s world-leading export credit agency. UKEF’s mission is to ensure that no viable UK export fails for lack of insurance or finance, while operating at no net cost to the taxpayer. It recently introduced a new export development guarantee, which has seen £500 million provided to Jaguar Land Rover and Ford of Britain, with more in the pipeline.
Ian Paisley
I thank the Minister for that helpful answer. Does he agree that the take-up of the scheme among companies in Northern Ireland is not as high as it should be, and there needs to be more marketing and development of the scheme? Will he agree to a meeting between officials from his Department and me, and discuss with companies that have tried to access it, the problems they have encountered so that we can ensure the scheme benefits companies in Ulster?
Graham Stuart
The hon. Gentleman is absolutely right about the need to market more effectively. We have a brilliant suite of products. UKEF is world leading—again and again it is voted the best export credit agency in the world—and it is doing great work. We would love to open it up to more businesses, which is why UKEF is part of various bounce back plans, including my launch in Northern Ireland of our tech bounce back plan. I would be delighted to organise a meeting with him to ensure that Northern Irish businesses are aware of all the products that are on offer.
Chris Green (Bolton West) (Con)
Matt Vickers (Stockton South) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I thank my hon. Friend for his question. Innovation has always given our businesses an edge. Virtual reality and 3D specialist Amazing Interactives in my hon. Friend’s constituency is an example of how innovation can continue to take business and exports forward. Today’s innovators, like Amazing Interactives, will benefit from our new FTAs.
Carol Monaghan (Glasgow North West) (SNP)
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Graham Stuart
My hon. Friend is right, and last week I announced a new trade hub in Edinburgh, which will help businesses in Scotland to grow internationally and recover from the impact of coronavirus. The hub will promote opportunities for Scottish companies, and FTAs will provide access to our global network, which is provided in 115-plus markets. There is the support of UK Export Finance—[Interruption.] It is hard to hear oneself think with the chuntering from the Opposition Front Bench. Would it not be great if we saw the same interest in trade, and promoting trade, not least in Scotland, rather than chuntering and sideline messages?
Rachael Maskell (York Central) (Lab/Co-op)
Mark Fletcher (Bolsover) (Con)
Graham Stuart
First, let me praise my hon. Friend. If the allocation of free ports was based purely on the championing of their case by Members of Parliament, it would be a certainty that he would have one in his area. Yesterday, Her Majesty’s Treasury published the response to the consultation on free ports, which outlined how free ports will help to level up the UK economy, bring in new investment, create high-skilled jobs, and provide new opportunities in ports and the areas around them. Although it will be an open, fair, and transparent process, I have no doubt that the advocacy of my hon. Friend will set a precedent for others and, I hope, lead to a successful outcome for him.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Draft Prevention of Trade Diversion (Key Medicines) (EU Exit) Regulations 2020
Graham Stuart Excerpts(4 years, 1 month ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I beg to move,
That the Committee has considered the draft Prevention of Trade Diversion (Key Medicines) (EU Exit) Regulations 2020.
Mr Hollobone, it is a great pleasure to serve under your chairmanship. I hope the Committee will prove unanimous in its support for the draft regulations and their objective. The regulations perform a laudable function: they will ensure that pharmaceutical companies in Great Britain can continue to produce and sell certain medicines to developing countries at a low cost to help fight key diseases such as HIV and malaria, without the potential drawback of these medicines being reimported into Great Britain for sale at a price lower than the domestic market price.
Many of the poorest developing countries are in urgent need of access to affordable essential medicines for the treatment of communicable diseases and are heavily dependent on imports of medicines, as local manufacturing is limited. Price segmentation between developing and developed countries is necessary to ensure that the poorest developing countries have access to essential pharmaceutical products at heavily reduced prices, while ensuring that fair market prices in wealthier markets incentivise drug development and investment.
Gareth Thomas (Harrow West) (Lab/Co-op)
Will the Minister set out for us whether the list of drugs covered by the regulations will be exactly the same as under the current EU regulation?
Graham Stuart
I can so confirm. This is a technical statutory instrument and has no policy content as such.
Pharmaceutical manufacturers will produce large volumes of pharmaceutical products at reduced prices for the developing world only if they are assured that these products will not find a way into developed countries’ markets afterwards. The regulations will correct deficiencies in legislation to establish a procedure that identifies the products, countries and diseases covered and prevents the reimport of such products through seizing and disposing, in accordance with national legislation.
Gareth Thomas
One small but potentially significant difference between this SI and the EU regulation it supersedes is that, under the EU regulation, drugs sold only in developing countries have to be marked differently to those sold here. That is not in the current draft of the regulations. Why the change?
Graham Stuart
I am grateful to the hon. Gentleman for his question. I look forward to responding in due course, when suitably refreshed on that important technical point.
The regulations were laid before the House on 2 September and are made under powers in the European Union (Withdrawal) Act 2018. The Committee knows that, given the context, those powers are limited; all that they allow is the correction of technical deficiencies in existing EU law that, by the operation of the Act, were retained in UK law following withdrawal. The draft regulations correct such deficiencies by, for example, replacing references to the European Union, its institutions and legislation with the appropriate UK references. This statutory instrument follows the affirmative procedure because it transfers to the Secretary of State a power that currently sits with the European Commission.
Gareth Thomas
I am grateful to the Minister for his answer to the previous question. The reason it is important is that the markings on the drugs for sale to developing countries potentially make it easier for customs authorities to seize those drugs, recognising that they should not be being sold back into a developed country. However, the draft instrument also does not include the requirement for Ministers—as the previous EU regulation did for the European Commission—to publish a report on the export numbers of drugs. Again, why the change?
Graham Stuart
Obviously, the references to the EU Commission are no longer relevant, and there is therefore no requirement to notify the Commission as under the previous set-up.
Gareth Thomas
My apologies—perhaps I did not make the question clear. It is perfectly reasonable that there is no need to reference the EU Commission, but there is surely a need to report on the number of drugs affected in this way. There is no requirement in the draft instrument, as there is in the EU regulation that it supersedes, for such a report. I simply ask why there is no need, in the Minister’s view, for a report on the number of drugs exported under the draft regulations.
Graham Stuart
I thank the hon. Gentleman again. It is worth noting that no drugs have been added to the list under the regulation since 2004. The numbers we are talking about are relatively limited and, as I said, the Commission element is redundant. I am happy to follow up on any need to make sure that the numbers are there and that we remain as transparent in the future as we are today.
The statutory instrument follows the affirmative procedure because it transfers to the Secretary of State a power that currently sits with the European Commission—the power to amend the list of pharmaceutical products covered under the regulations and the criteria for products to remain on that list. The statutory instrument also replaces the requirement that pharmaceutical products, packaging and connected documents should be affixed with an EU logo, with a power for the Secretary of State to make regulations providing for marking, labelling or other identification requirements. I commend the regulations to the Committee.
Graham Stuart
I congratulate the hon. Member for Harrow West on his speech, which did two things. First, it thoroughly examined the SI and, secondly, having built that base and confidence with you, Mr Hollobone, it included issues that would adorn any general debate in the House of Commons on health, perhaps straying somewhat beyond the highly technical and specific elements of the regulations. I will respond only to the bits that have some relevance to the SI that we are discussing, notwithstanding the fact that it was an excellent speech and touched on important matters that should, as the hon. Gentleman rightly said, be debated elsewhere.
The hon. Gentleman raised the lack of specialists. We recognise that; he is entirely right. That is why we will work closely with the Medicines and Healthcare Products Regulatory Agency to assess any medicinal information provided by manufacturers or exporters, to ensure that all considerations are given appropriate weight. He will be aware that the Government not only are the first ever—if we are stretching beyond the immediate remit—to meet the 0.7% target for aid spending, but are generously and fully funding the WHO. We will consult as appropriate across the piece.
The hon. Gentleman mentioned roll-over agreements in Africa. I am not aware that there are any practical implications, but if there are any, on further consideration following this debate, I will write to not only the hon. Gentleman but all Committee members so that they are aware of them.
As the hon. Gentleman will be aware, the Secretary of State can make regulations under the SI. On the issue of labelling, the only thing that we are removing is the EU logo. Manufacturers will be able, as now, to work with the appropriate authorities to ensure that their product is suitably differentiated. They have every interest in doing so. Whatever mark they may find best to do so will continue to be supported. As I say, we will have the power to make regulations if further action were to be appropriate, but at the moment we do not think it will be.
Matt Western (Warwick and Leamington) (Lab)
How frequently will labelling be reviewed by the Secretary of State, and on what products?
Graham Stuart
I think I can suggest that it will never be reviewed, unless or until someone raises it as an issue, which is most likely to be the companies whose interests we are seeking to protect. We will keep an open mind. We have the power to do these things, and if any problem arises, we will swiftly seek to make changes to ensure that the regime continues to work as successfully as the hon. Member for Harrow West made clear it has to date.
I think “Fire in the Blood”, the Government’s broader role in procurement, tiered pricing and covid go way beyond this SI, which I hope, as has been made clear, everyone in the Committee is happy to support. I am grateful to all hon. Members for attending today and to the hon. Gentleman for, as I knew he would, giving the regulations a characteristically thorough examination.
Question put and agreed to.
Oral Answers to Questions
Graham Stuart Excerpts(4 years, 2 months ago)
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David Simmonds (Ruislip, Northwood and Pinner) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
My hon. Friend is right to highlight the importance of exporters to the country’s economic recovery from covid. My Department is working closely with business to develop a new export strategy, deliver bounce-back plans for key sectors, sign free trade agreements with countries covering 80% of our trade, strengthen our regional teams to level up exporting success and challenge market access barriers whenever and wherever in the world they are found.
David Simmonds
The many exporters in Ruislip, Northwood and Pinner are grateful for the support from Government. Will my hon. Friend outline the measures that UK Export Finance is taking in particular to support export businesses with their recovery?
Graham Stuart
I am grateful to my hon. Friend for highlighting UK Export Finance. It had its 100th anniversary last year and it is repeatedly voted the best export finance agency in the world. It has a range of products and trade experts across the four UK nations and in key locations globally—we have increased that number—making it ideally positioned to support UK exporters and their overseas customers during the pandemic. UKEF, as well as having an established and successful roster of products, is addressing the emerging needs of UK exporters and has come forward with new products, most notably recently the export development guarantee, which provides general working capital and capex to support the operations of eligible exporters, following a successful pilot. I am delighted to say that UKEF has so far provided EDG support to both Jaguar Land Rover and Ford Britain worth £500 million each, and more is in the pipeline, not least for small and medium-sized enterprises.
Paul Blomfield (Sheffield Central) (Lab)
The Minister will know that businesses are concerned about the double disruption of covid and the end of the Brexit transition. The Government said that they would secure the rollover deals we need to replace those we enjoyed with more than 40 countries and trade blocs as members of the EU. Failure will leave business with increased costs, barriers and red tape, but in the last four years the Department has concluded just half the agreements it wants and not a single one since the start of this year. Will the Minister tell the House not how many are in discussion but how many will be secured in the remaining four months?
Graham Stuart
I thank the hon. Gentleman for his question. As he knows, the vast majority of the trade covered by those deals has already been secured in existing deals. Work continues and I am delighted to say that we continue to talk to those countries, as well as, as the original question suggested, supporting exporters, not least Edwin Jagger Limited, for instance, in his own constituency. That company is of particular note and could be of use to him, because it specialises in wet shaving and grooming. If it is good enough for the Chinese and the Americans, I suggest he that gets around to his local supplier.
Shaun Bailey (West Bromwich West) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
It is noticeable that, unlike the Opposition, my hon. Friend champions business, champions the UK’s independent trade policy and thus champions the livelihoods of midlands workers. Ninety per cent of global growth is expected to be outside Europe over the next years and we are doing everything we can to support firms, not least in West Bromwich, to start or grow exports whether through signing trade deals, developing a new export strategy or boosting our on the ground network of international trade advisers.
Shaun Bailey (West Bromwich West) (Con)
It is clear that, with £3.8 billion-worth of exports, the Black Country is, as I have always said, the workshop of the United Kingdom. What work is my hon. Friend doing with local stakeholders, including our west midlands Mayor, Andy Street, to ensure that around the world people will once again see the words “Made in the Black Country”?
Graham Stuart
My hon. Friend is absolutely right. Working with partners in an increasingly devolved United Kingdom is so important to delivering the export success that all of us, at least on Government side of the House, crave. I am pleased to say that my right hon. Friend the Secretary of State met Andy Street extremely recently to discuss our programme of FTAs and the benefits they can bring to the region, and we will continue to support businesses across the midlands—not least Westfield Sports Cars in Kingswinford, near my hon. Friend’s constituency, which is exploring new opportunities in places like the US, the United Arab Emirates and Saudi Arabia.
Sir Mark Hendrick (Preston) (Lab/Co-op)
Jerome Mayhew (Broadland) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
The agriculture, food and drink sector is the UK’s largest manufacturing industry and supports about 4 million jobs. With exports worth £23.8 billion last year, we are determined to see this success continue. So on 22 June, alongside the Department for Environment, Food and Rural Affairs and business, I was delighted to launch an agriculture, food and drink bounce-back plan to drive exports and recovery from covid.
Kevin Hollinrake
My father was a hill farmer, so it was a pleasure to meet a group of hill farmers in Bilsdale in my constituency, together with British Wool, which tells me that farm-gate prices for fleeces are down by 90% this year—so farmers are better off burning them than transporting them. Will British wool feature in a future free trade agreement?
Graham Stuart
I thank my hon. Friend, who stands up for Yorkshire farmers whether of sheep or other products. This Government will stand firm in trade negotiations, and we will always do right by our farmers and aim to secure new opportunities for the industry. We are also engaging with stakeholders such as the National Sheep Association through the agri-food trade advisory group. During our negotiations, DIT is also supporting interiors and apparel textiles manufacturers who use British wool at leading international trade fairs such as Heimtextil.
Steve Double
Cornwall is proud to produce some of the finest and most sought-after food and drink, but the sector has been hit hard as a result of the pandemic. Will the Minister lay out how food producers in Cornwall, and indeed around the country, will benefit from the agri-food bounce-back package that he mentioned?
Graham Stuart
The bounce-back package, as I say, was launched in June. It facilitates additional access for small businesses’ products to UK Export Finance. It launched a suite of export masterclasses and webinars to overcome some of the lack of understanding of opportunities in foreign markets and of the challenges that are faced in entering them. It will further boost our trade efforts ahead of new opportunities that will also be presented by our FTAs.
Already, a series of over 20 agri-food export masterclasses targeted at small and medium-sized enterprises has been delivered, and that programme will continue throughout this year. My Department is working, through our international trade adviser network, to support my hon. Friend’s local Cornish food and drink companies to access virtual meet-the-buyer events and UKAP—United Kingdom agricultural policy—webinars, which will be launched in the autumn and come out of the plan that we worked with industry to create.
Jerome Mayhew
We all recognise that a free trade agreement with the United States of America has enormous potential to benefit UK farming, not least by opening up a market of 328 million potential customers, but it does come with some risks, not least the potential import of clinically safe but lower food standard meat products. Will my hon. Friend update the House on what success he is having in maximising the benefits and minimising those risks?
Graham Stuart
As the Secretary of State has made clear—sufficiently slowly, I hope, for the Scottish National party spokesman—all existing food standards are enshrined in UK law and no trade deal will be able to change that legal position. I can assure my hon. Friend that those standards will be maintained, and I hope that his constituents are not alarmed by the consistent scare- mongering from Opposition parties.
I am delighted to say that we will see beef shipping to the United States imminently. It is worth noting that at the moment there are no lamb sales into the US, which is the second largest importer of lamb in the world. These are the prizes that we are after; these are the prizes that we are delivering.
Stephen Flynn (Aberdeen South) (SNP)
Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Direct talks on the UK-Japan FTA between Japanese Foreign Minister Motegi and my right hon. Friend the Secretary of State took place on 6 and 7 August, and I am pleased to say that they reached consensus on the major elements. We are in the final stage of negotiations and are optimistic about reaching an agreement in the coming weeks. Both sides are committed to a deal coming into force by the end of this year.
Stephen Flynn
The UK’s own forecasts indicate that a trade deal with Japan will be worth a whopping 0.07% of GDP growth in the long term. In the meantime, leaving the EU single market and customs union will impact GDP growth by 5%. We know that the EU has a trade deal with Japan, so can the Minister explain to viewers in Scotland, who voted overwhelmingly to remain in the European Union, why those figures are such a positive thing?
Graham Stuart
The benefit of trade deals is that they reduce the barriers to trade. As the hon. Gentleman will know, the EU-Japan trade deal has only recently come into force. I am delighted to say that the model deal that we are looking to secure with Japan is more ambitious; it goes further, not least on digital and data aspects, which will be tremendously important to the growing and strengthening tech scene in Scotland and beyond.
Neale Hanvey
As my hon. Friend the Member for Aberdeen South (Stephen Flynn) just mentioned, Japan accounts for around 2% of the UK’s total exports. The EU is worth more than 20 times that and already has a trade deal with Japan. With many talks stalling, the UK is on track for a slew of bad deals, or simply no deal at all. Is it not now time for the Government, given their summer of U-turns on the covid crisis, to admit that their Brexit bluff has been called and urgently review this, in the light of the impact that disruption to trade, jobs and livelihoods, and the UK’s covid recovery, will have?
Graham Stuart
I do not know who wrote the hon. Gentleman’s question, but it is clear that they are hanging on desperately to the idea that there should be a failure. Overwhelmingly, the continuity agreements have been rolled over. We have opportunities, not least with Japan, to go further and have a more ambitious programme, as well as to set new standards through deals with Australia, New Zealand and the United States.
It is noticeable that in all the years that the EU has been in charge of our trade policy, it has never signed an FTA with the world’s largest economy, let alone the next largest economies in the world. The truth is that it is dawning on the hon. Gentleman and his separatist, schismatic colleagues that they are going to see not a failure of our trade policy but a success.
Ian Paisley (North Antrim) (DUP)
Chris Loder (West Dorset) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
We will use our new FTAs precisely to support the priority asks of UK small and microbusinesses that export goods and services around the world, including increased transparency on rules and regulations; international co-operation to support SMEs; and the securing of FTAs that benefit the whole UK economy, not just the largest players.
Christian Matheson (City of Chester) (Lab)
Covid-19: International Language Schools
Graham Stuart Excerpts(4 years, 4 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
On behalf, I am sure, of everyone in the House this evening, I congratulate my hon. Friend the Member for Eastbourne (Caroline Ansell) on delivering such a powerful and passionate speech on behalf of the sector and on championing it so effectively. I am also grateful to colleagues across the House for engaging with this issue.
As you know, Mr Deputy Speaker, I have form in this area, having previously been Chairman of the Education Committee. I am now the joint chair, with my hon. Friend the Minister for Universities, of the Government’s education sector advisory group. I have witnessed the truly world-class excellence of UK English language teaching. It is a superb British success story, which enriches the economic and cultural life of the country. As has been said, it helps to bring young people from across the globe to our shores. It enables them to gain a better grasp of our language and a more intimate understanding of, and often affection for, our country. It strengthens our ties with nations worldwide, as international students share their experiences of the UK with their friends and families, building our profile in some of the world’s fastest growing global markets. It fosters business, opportunity and prosperity in all regions and nations of the UK and helps to level up our country.
Alison Thewliss
The Minister is extolling the virtues of international education, and on that I agree with him. The Glasgow International College, which lies just over the boundary of my constituency in Glasgow North, had me in to visit, and young people I spoke to there were enjoying the experience very much, but would like the opportunity to stay on post their studies to live and work in Scotland. Would he consider that a good option?
Graham Stuart
As a trade Minister, I am hesitant to veer off into a Home Office area of responsibility. It is always important to remember, as a member of the Government, that you are like a member of the Borg: you have but a single thought, and you should ensure that you entirely comply, regardless of what your face may say on any particular issue. The words are terribly important.
English language teaching is central to broader educational success. We have more than 500 accredited centres based right across the country, creating tens of thousands of jobs and generating education exports. We think the figure may even be more like £1.6 billion, but I suppose people have different numbers. It is a very significant number and is part of that wider education piece, with well over £20 billion of educational exports from this country last year.
Our world-class ELT providers are having a profound impact on the young people they teach, in many cases helping develop a lifetime of affinity to and affection for the UK. Some 80% of students told English UK—the organisation that represents the more than 400 ELT providers—that they planned to return to this country after their courses ended for travel or further study. That is a huge vote of confidence in our ELT sector and our country as a whole as we compete in an increasingly competitive global educational marketplace.
Anthony Mangnall
I am sorry to add a further point, but does my hon. Friend also recognise the significance of the facts that 35,000 jobs are dependent on ELT schools and that host families play a significant role in hosting those international students?
Graham Stuart
My hon. Friend makes suitable points, although in an Adjournment debate I think two bites of the cherry is a little greedy. His points are none the less well made.
English language teaching is a crucial industry for many of our coastal towns and cities, whose economies and cultural life are enriched by the presence of international students. That includes the five accredited ELT centres in the constituency of my hon. Friend the Member for Eastbourne.
We have focused tonight so far predominantly on the direct benefits that the sector delivers, but English language teaching plays a key role in underpinning the UK’s wider education system by helping unlock the door for thousands of overseas students to courses at British universities and further education establishments. ELT is not only valuable in itself, but is a pipeline to the broader, wider educational offer.
Angela Richardson (Guildford) (Con)
Does the Minister agree that it is not only vital for these students to be able to apply to courses at universities, but that the centres run tests that help them actually have the level of English they need to get into the universities? If they want to apply for citizenship, the centres also provide that opportunity. They are vital not only for those coming over for courses, but for those who want to stay and make their life in this country.
Graham Stuart
My hon. Friend is absolutely right. The sector provides a major direct benefit and a huge enabling benefit in various ways. As my hon. Friend the Member for Eastbourne said, ELT providers have been particularly hard hit by the impact of covid-19, because they rely almost entirely on exports for their income. As has been said, the two biggest markets, Italy and China, were among the first to be closed. This summer season, which would, as my hon. Friend said, normally be a peak period for our ELT sector, looks likely to be badly affected as the short courses that make up such a large proportion of their income are curtailed.
The Government, as my hon. Friend also touched on, have responded to an unprecedented challenge in an unprecedented manner. DIT is playing a pivotal role in cross-Government work to help our education exporters as we co-ordinate our efforts with the Home Office, the Treasury, BEIS, DFE, the Department for Digital, Culture, Media and Sport, MHCLG and the Department for Transport to give the ELT sector the support it needs.
As the Exports Minister and co-chairman of the education sector advisory group, I very much see DIT playing that role. We cannot take on the visa element, which is naturally that of the Home Office; we cannot deal with reliefs for business rates or whatever, because that naturally would be for MHCLG; but I will, as best I can, seek to champion the sector. I can assure my hon. Friend and other Members across the House that we are working closely with other Departments to champion and spread understanding of the importance of the sector.
ELT providers are taking advantage of the wide range of other key measures that we have put in place to help UK firms weather the crisis. I will not rehearse them now, because my hon. Friend has already done so—whether it is CBILS or the job retention scheme. There are other support measures: small business grant funding; the bounce-back loan scheme for small and micro enterprises; and, indeed, the possibility of applying for VAT deferral for up to 12 months.
Meanwhile, the Home Office has made a number of temporary changes to support the education sector, including ELT providers and international students, during this crisis. Those include extending the leave of students in the UK whose visa as a short-term student expires before 31 July but who cannot travel due to covid-19; permitting students to start their new course of study while their application is awaiting a decision, or indeed to undertake an additional course as a short-term student whose leave has been extended; and lifting the prohibition on distance learning for international students to ensure that they can continue to study while institutions are physically closed.
DIT’s support for our ELT providers during this crisis has been informed and developed through our close partnership with representatives of the sector. The joint DIT-DFE education sector advisory group, which, as I say, I co-chair, and of which English UK is a member, is key to this work. The body helps to co-ordinate our work to boost UK education exports and sets the strategic direction for our dedicated DIT education team.
Crucially, the advisory group also monitors the progress of the Government’s international education strategy, which I very much enjoyed helping form, which aims to increase the value of education exports to £35 billion annually and grow the total number of international students hosted by UK universities to 600,000 by 2030. This country is determined to be open to people from all over the world to come and be educated here. The strategy will provide the foundation stone for growth as we grasp what I believe, post-covid, will be golden opportunities ahead for UK education exports as the global economy recovers.
Helping to inform this endeavour is the DIT-led English language training working group, which includes representatives from across the sector. This partnership ensures that the English language teaching sector’s voice is heard loud and clear as we work together to build for the future. DIT has been working hard to put the interests of the UK’s ELT providers front and centre of our work to grow the UK’s education exports worldwide.
I think I have addressed my hon. Friend’s point about having a Department to champion the sector. When I became chairman of the education sector advisory group, I suggested that we should reach out to the DFE, and it is now co-chaired with my hon. Friend the Universities Minister, because working across Government is really important. I pay credit to the Home Office, which has been an integral part of that too. We have developed a much more flexible and supportive system over the last few years for the education sector.
What plans do we have to champion the industry? I would very much say that it is part and parcel of that international education strategy, and the English language teaching element is absolutely vital. As I have also said, there is a pipeline to that, which needs to be recognised for its importance, not only in itself, but for what it does to others. We believe that English language teaching is a truly world-class UK export, which helps to put this country on the map for hundreds of thousands of young people worldwide. Covid has had a terrible impact on our ELT providers, as it has on many other areas of our economy, but we are working to ensure that this dynamic sector has the support it needs to thrive once this crisis has abated.
As we move back to growth, we will use the ambitious free trade agreements that we are negotiating with key global partners to open up further opportunities for education in the years ahead. My message to our ELT sector is that this Government are placing education at the very heart of our efforts to build a truly global Britain, which champions free trade and commerce on the world stage. We are building a Britain that is ever more welcoming for students from across the world and our brilliant English language teaching providers will give them the key to unlock their full potential for the benefit of us all.
Question put and agreed to.
Oral Answers to Questions
Graham Stuart Excerpts(4 years, 5 months ago)
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Peter Aldous (Waveney) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Our 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.
Peter Aldous
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?
Graham Stuart
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.
Alan Mak (Havant) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
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.
Alan Mak
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?
Graham Stuart
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.
Ian Levy (Blyth Valley) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
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.
Ian Levy
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?
Graham Stuart
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.
Dr Luke Evans (Bosworth) (Con)
Dr Neil Hudson (Penrith and The Border) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
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.
Graham Stuart
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.
Dr Hudson [V]
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?
Graham Stuart
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.
Tom Randall (Gedling) (Con)
Mr Virendra Sharma (Ealing, Southall) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
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.
Mr Sharma [V]
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?
Graham Stuart
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.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
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.
Stephen Metcalfe [V]
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?
Graham Stuart
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.
Mrs Emma Lewell-Buck (South Shields) (Lab)
Oral Answers to Questions
Graham Stuart Excerpts(4 years, 6 months ago)
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Deidre Brock (Edinburgh North and Leith) (SNP)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
The hon. Lady is right to highlight the negative impact of trade barriers. OECD analysis shows that cutting tariffs and addressing unnecessary costs associated with non-tariff measures could increase trade by more than 20% among G20 economies. We are working to remove barriers for UK exporters around the world—from helping British beef and lamb to export in Japan to obtaining geographic protection for Scotch whisky in Indonesia.
Deidre Brock [V]
The most recent WTO review saw G20 economies implement 28 new trade-restrictive measures, estimated to cover around $460 billion of trade, and import-restrictive measures in force for the period January-October 2019 are now estimated to cover $1.6 trillion, suggesting that import restrictions have continued to grow. It is obvious that we need resilience in our economies, but does the Minister agree that that cannot be an excuse to engage in economic protectionism or simply close down value chains?
Graham Stuart
I entirely agree with the sentiments expressed by the hon. Lady; she is absolutely right. Pre-covid, over the past decade, perhaps since the financial crash, there has been an increase in the number of trade barriers that have been erected, which is why, as an independent nation once again, we are so determined to champion free trade and to use the WTO and the other international fora referred to by colleagues to make sure that we make that case. It will lead to prosperity for all.
Mr Laurence Robertson (Tewkesbury) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I thank my hon. Friend for his work as chair of the all-party group on Ethiopia and Djibouti. The UK has signed continuity trade agreements that secure our long-term trading relationship with 11 African countries, and a further 35 will benefit from our unilateral preferences scheme. We continue to work with our partners on arrangements for the remaining African countries covered by EU agreements, in a way that reflects the current economic and public health realities.
Mr Robertson [V]
I thank the Minister for that response. Does he agree that trade is the best way out of poverty for developing countries? Bringing that idea together with the fact that the United Kingdom is looking to forge trade agreements around the world would create a bigger benefit. Will the Minister do everything he possibly can to bring about strong trade agreements with African countries?
Graham Stuart
My hon. Friend is absolutely right: it is a win-win situation for the UK economy and those developing countries in Africa, and it is so important that we work together. To those considering seeking to put up barriers to foreign produce in our consideration of the Agriculture Bill tomorrow, I should say that not only would that breach the WTO’s global rules and hurt our good name in the international community, but it could also have the effect of restricting imports from developing countries, including those in Africa. Surely no one should wish for that.
Women in the Commonwealth: Trade and Investment
Graham Stuart Excerpts(4 years, 8 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
It is a great pleasure to serve under your chairmanship, Mr Hosie, and to have heard powerful speeches from Members across the House. While only one in five exporting businesses are led by women, I am pleased to say that that ratio has been reversed in this debate. I am the first male to speak while the four women, who spoke so powerfully, went ahead of me.
I pay tribute to my hon. Friend the Member for Stafford (Theo Clarke), who has great expertise in this area, having previously worked for the Bill Gates Foundation. As she showed in her speech, she cares deeply and knows a great deal about this topic. She founded the Coalition for Global Prosperity and is the vice-chairman of the all-party parliamentary group on trade out of poverty, both of which do so much to increase our understanding of these subjects.
Having recently celebrated Commonwealth Day, and International Women’s Day last Sunday, this is a great chance to reflect on the huge benefits for women and society in this country and throughout the Commonwealth from having the freedom and opportunities to trade and invest. The Government put this issue right at the heart of our international agenda.
As the Minister for Women and Equalities said in the Commons last week, the theme of this year’s International Women’s Day “each for equal” has echoes of the Government’s central domestic mission to level up, deliver opportunity to and unleash the potential of everyone in the United Kingdom. As was suggested in various speeches, we would like that to happen for everyone everywhere, not least for the women who are so often left behind. Women’s economic empowerment is a goal that we in the Department for International Trade and people across Government are pulling out all the stops to drive forward, not just here in Britain but across the Commonwealth and beyond.
The Commonwealth is rapidly becoming one of the economic powerhouses of global growth, with joint GDP expected to reach $13 trillion this year. While progress has been made in unleashing the full economic potential of women across the Commonwealth, their access to the benefits of trade remains startlingly unbalanced, as we have heard from a succession of speakers today. This issue is important for developed and developing countries alike. From barriers to technology and start-up capital to land ownership restrictions, all too often women are unable to fully exploit their business talents and realise their trading ambitions.
Women do not lack ability or ambition, yet we know that only one in three UK entrepreneurs is female, which is a gender gap equivalent to approximately 1.1 million missing businesses. Globally it is estimated that female-led SMEs face a credit gap of around $300 billion, with businesses run by women collecting less than 3% of global venture capital in 2017. The World Bank estimates that of 173 countries worldwide, 90% had at least one law impeding women’s economic opportunities, hence our determination to help women in the UK to export to or invest in our Commonwealth partners and other global markets, and to enable women in Commonwealth nations to trade with us. After all, supporting women-owned businesses to trade internationally is a proven way to boost broader economic transformation.
In recognition of that, at the London Commonwealth summit in 2018 all member states agreed to address systemic barriers to women’s full and equal participation in the economy and increase opportunities for women in trade internationally. The UK is playing a key role in championing those goals. Our 2018 UK export strategy commits us to harnessing trade’s potential for boosting economic growth, creating jobs and supporting greater participation by women in the economy. In the UK-US negotiation objectives announced earlier this month, we made clear that we are seeking an agreement with the US that advances women’s economic empowerment.
As an independent member of the World Trade Organisation, the UK is now working with other members to use the joint declaration on trade and women’s economic empowerment, which, as my hon. Friend the Member for Stafford and others mentioned, was adopted at the 11th ministerial conference of the WTO in 2017 as a road map for progress on this vital agenda. We will seek to build on that momentum and drive forward our existing commitments at the 12th ministerial conference in June. As we also look ahead to the next Commonwealth Heads of Government meeting in Kigali, Rwanda this summer, I am encouraged that strategies for women in business and trade are expected to form part of the discussions.
I was pleased to spend several months working with colleagues in the FCO and DFID to deliver the Africa investment summit on 20 January this year. During the summit, we announced an additional £6.1 million of funding for the extension of the work and opportunities for women programme, known as the WOW programme. That will support a further 100,000 women in Africa to access safer and better paid employment. A memorable part of the event was when I attended a reception in the margins of the summit hosted by the Royal Academy of Engineering, where I met female entrepreneurs from African countries who received the Royal Academy of Engineering’s Africa prize. It is dynamic young entrepreneurs like them who will supercharge economic growth across the developing world in the decades ahead.
My hon. Friend the Member for Stafford asked whether we should establish Commonwealth MBA scholarships. Since 2018, the Commonwealth Scholarship Commission has focused its new awards under six key development themes. It supports high-calibre female postgraduates from 23 Commonwealth countries in master’s subjects relating to the theme of business and industry. In 2018, some 48% of new awards were for women. As for the investment strategy of the CDC, that body is working hard to help promote women’s economic empowerment through their own investments. The CDC sponsored the first global gender-smart investing summit in London in 2018 and is a founder member of the 2XChallenge, which seeks to mobilise $3 billion-worth of investments into developing countries by the end of this year in support of women’s businesses.
My hon. Friend asked if we could appoint a special envoy on women’s economic empowerment for the Commonwealth. The UK’s special envoy for gender equality already represents the breadth of work that the UK Government do on this issue, and a key part of their role is to promote best practice in gender equality overseas.
I agree with my hon. Friend about the importance of women entrepreneurs forging bonds across the Commonwealth. The Commonwealth Business Women’s Network is currently a route to do that and a vocal participant in Commonwealth events. Indeed, it is co-hosting a conference this month on collaboration, trade and education across the Commonwealth. It will also be active in the Commonwealth Business Forum, which is taking place immediately before the Commonwealth Heads of Government meeting in Kigali, where we expect encouraging women entrepreneurs to be on the agenda set by the incoming chair-in-office, Rwanda.
My hon. Friend asked me about the SheTrades Commonwealth initiative, which we launched at the last Commonwealth Heads of Government meeting, in London. As she observed, that innovative project has been doing great work in supporting women entrepreneurs in four Commonwealth countries—Bangladesh, Kenya, Ghana and Nigeria—by helping to enhance their business competitiveness and connecting them with international markets. Building on the success of SheTrades, the Secretary of State for International Development announced a further £3.5 million, as my hon. Friend mentioned, towards a programme extension at the UK-Africa investment summit in January.
In today’s debate, we heard speeches from across the House. The hon. Member for North East Fife (Wendy Chamberlain) championed the issue of period poverty and the way it blocks women from accessing the economy, and thus trade. She spoke powerfully about that. The hon. Member for Glasgow North East (Anne McLaughlin), with her memorable reference to the marriage terminator, and others, also spoke with great knowledge, based not least on the interregnum before her return to the House, when she worked abroad to understand the issues at a deep level.
The hon. Member for Bristol West (Thangam Debbonaire) also spoke powerfully, although it is worth mentioning that, notwithstanding the barriers that women face, which across the House we are all committed to doing everything we can to address, it is trade liberalisation that has led to the greatest and fastest improvement in human welfare in history in past decades. It is a shame that the Opposition party has been taken hold of by a fundamentally Marxist view, which has led them to oppose trade agreements with the most benign of allies, leads to an attitude that regards liberalisation as fundamentally against the best interest, and talks as if we can impose our standards on every country—least appropriately of all on a developing country.
Graham Stuart
To impose such standards on them would effectively mean that the women—business people and others—in those countries would be barred from access to our markets by what comes together as a coherent view that opposes liberalisation and that puts up artificial barriers to those who cannot match the standards we take for granted. Thus, it does the exact opposite of what the hon. Lady would wish to do, which is to empower and strengthen the economic role of women in the developing world. I have to say that I fundamentally and totally reject that attitude, which unfortunately has infected the whole of the Labour party since the current leadership has been in place. I happily give way to the hon. Lady.
Thangam Debbonaire
I am not going to make a point of order, Mr Hosie. I am going to ask the Minister if he would reconsider that uncharacteristically ungenerous characterisation of what I said. I absolutely said that we welcome trade agreements. I said that I welcome trade agreements. I also quoted from NGOs in the developing world—not my view but the views of those from the developing world themselves, from Commonwealth organisations, whom I have met in my work—who have themselves talked about some of the problems that emerge from some trade agreements. I was very careful in my choice of words and I was most definitely not opposing all trade agreements—very far from it. I do hope he will reconsider.
Graham Stuart
Hansard will show the record of expressing opposition to trade liberalisation. People will be able to see that for themselves. As I say, the failure to support trade agreements that should have been uncontroversial suggests a certain extremism in the economic outlook of Her Majesty’s Opposition as it stands. However, the Labour party is having a leadership election, and I hope and expect that some form of sanity will return to its economic strategy.
As Minister for exports, it gives me great pleasure to see the crucial role our trade policy can play in breaking down barriers to global commerce for women across the globe. Free trade and trade liberalisation bring the benefits of global commerce to all nations and regions of the UK, just as they are helping to level up economic opportunities for people of all genders and backgrounds across the world. As a truly global Britain, we will use our new role as an independent, outward-looking, free-trading nation to champion the cause of empowering women across the Commonwealth and beyond.
Oral Answers to Questions
Graham Stuart Excerpts(4 years, 8 months ago)
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Mr Philip Hollobone (Kettering) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
UK goods exports were up 6.4% last year to a record £372 billion. Interestingly, the three fastest growing UK goods exports in 2019 were: one, unspecified goods; two, works of art; and three, jewellery.
Mr Hollobone
Are UK goods exports growing quicker to EU countries or to non-EU countries?
Graham Stuart
In 2019, goods exports to the EU were down by 0.9% to £170.6 billion, while goods exports to the non-EU were up by 13.6% to £201.5 billion.
Sarah Olney (Richmond Park) (LD)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Winning further foreign direct investment is crucial to the delivery of rising living standards and the levelling up of left-behind communities up and down the land. Companies such as Ferrero, in the constituency of my hon. Friend the Member for Amber Valley (Nigel Mills), which exports wonderful, quality chocolate all over the world, will potentially benefit, as will other UK chocolate producers, as a result of our UK-US free trade agreement.
Nigel Mills
I thank the Minister for that answer, and I join him in valuing the investment that Ferrero has brought to the old Thorntons factory. Most of the large employers in my constituency have had FDI at some point or other in their history, so what more can the Government do to ensure that that investment is spread out evenly across the country, and is not just focused in London and the south-east?
Graham Stuart
I thank my hon. Friend for that question, because FDI is so important to the UK. Foreign-owned firms represent only 1% of businesses, yet they contribute 22% of economic output and deliver 15% of employment. My Department uses our regional teams right around the country, and in 110 countries around the world, to make sure that we get that message out. Only yesterday, I hosted a meeting with regional leaders from right across the UK at No. 10 to show the importance we attach, as my hon. Friend does, to sharing these FDI benefits right across the country.
Elliot Colburn
Does the Minister agree with me and with residents of Carshalton and Wallington that instead of talking down London, as the current Mayor does, we should be supporting Shaun Bailey’s idea to put in a deputy Mayor for trade to make sure that London remains a destination with one of the highest levels of FDI in the world, to attract businesses and entrepreneurs?
Graham Stuart
I am grateful to my hon. Friend for that. I think the people of London want a Mayor who makes things happen, who is a champion of business and who recognises that, for all the wealth in London, there are too many people left behind. We need a Mayor who gets on with the job—one who does not act like a commentator but who actually acts like a leader.
Jack Lopresti
Does my hon. Friend agree that free ports will help to attract significant foreign investment, and regenerate and create jobs in some of our communities and deprived areas?
Graham Stuart
I thank my hon. Friend for his question, on which he is right. He is constantly championing the interests of his area, not least because of the need for regeneration. Free ports offer that opportunity. We are in constant talks with The Bristol Port Company, and I know that he is working closely with the West of England Mayor to make sure that that regeneration and the benefits of FDI are brought to his part of the country, with all the prosperity and employment benefits that that will bring.
Judith Cummins (Bradford South) (Lab)
The Minister will be aware of the concerns of businesses and, in particular, of producers supporting our regional economies about the impact of the proposed most favoured nation tariffs on their capacity to attract investment in new technology that is essential for our transition to net zero. What assessment has he made of the impact of the proposed measures on the UK’s attractiveness as a destination for investment, particularly in new green technology?
Graham Stuart
I thank the hon. Lady for her question. The consultation closes tonight and we are determined to get the right balance. We are clear that we are going to have a tariff regime that benefits UK consumers and business, and allows us to align ourselves most effectively to where 90% of global growth is expected by the International Monetary Fund to be in the next five years or so, which is outside Europe.
Judith Cummins
I thank the Minister for that answer, but he is not addressing the specific concern that the tariff schedule could hurt domestic producers by stifling FDI in precisely the places in the country that need it most. Are the Government really going to ignore industry concerns, potentially costing jobs?
Graham Stuart
I would have hoped that, after sufficient time in the House, the hon. Lady might have understood how a consultation worked. The consultation closes today, and I cannot comment on a consultation that has not yet closed. What I can tell her is that, as she will be delighted to hear, under this Government the UK has attracted more FDI than any other country in Europe. Indeed, we have attracted more FDI in aggregate than Germany and France combined. If she and her colleagues on the Labour Front Bench were to support business and enterprise in the way we do, instead of opposing them, we might see more jobs and prosperity.
Jim Shannon (Strangford) (DUP)
With Northern Ireland being recognised as the cyber-security capital of the United Kingdom of Great Britain and Northern Ireland, will the Minister outline what steps are being taken to highlight this massive international market?
Graham Stuart
As I said in an earlier answer, I was pleased to meet Northern Ireland representatives in No. 10 Downing Street yesterday. When I visited Belfast last year, I learnt more about the phenomenal tech, and in particular cyber, capability there is in Belfast. The Department is determined to make sure that the message of how investable and how strong Northern Ireland is, and what great capability it has, is understood through all our posts in countries around the world.
Felicity Buchan (Kensington) (Con)
There has been a huge amount of foreign direct investment in the financial services sector, not only in London but throughout the regions and in Scotland. Can my hon. Friend assure me that, in all free trade negotiations, the interests of the financial services sector will be protected?
Graham Stuart
I thank my hon. Friend, who characteristically puts her finger on an important point. Services have too often not had sufficient focus in trade agreements. We are very much looking to put financial services, data and other elements at the heart of our trade policy, which will be great for the City of London. However, it is important to note that there are more people working in financial services in the northern powerhouse than there are in the whole of Frankfurt.
Mr Stephen Morgan (Portsmouth South) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
We are working with the Department for Business, Energy and Industrial Strategy to maximise the overall economic impact of our world-leading renewable energy sector, including that of exports. The Department undertakes a range of promotion activities, including running trade missions and dedicated workshops.
Graham Stuart
All investments by the prosperity fund are examined against the raft of UK Government policies, objectives and aims, and we do that in all cases in each continent of the world.
Martin Vickers (Cleethorpes) (Con)
As the Minister is aware, the Grimsby and Cleethorpes constituencies are major centres for the renewables sector. Many of the smaller businesses are vital parts of the supply chain, and they would like to get more involved in exports. Will the Minister agree to meet me and a delegation from the local industry to explore the possibilities?
Graham Stuart
I am grateful to my hon. Friend. He will be aware that the offshore wind sector deal, published in March 2019, sets an ambition of increasing exports fivefold to £2.6 billion by 2030. He and I, in our respective constituencies, have seen the transformation of the economics of offshore wind. We are now seeing UK Export Finance, for instance, financing major investments in Taiwan and other parts of the world, with UK exports and UK expertise, not least from my hon. Friend’s constituency, at the heart of that. I would be delighted to meet him.
Kerry McCarthy (Bristol East) (Lab)
Graham Stuart
The Government are investing £2.5 billion in clean growth innovation by 2021, as set out in the industrial strategy. The offshore wind sector deal commits the sector to investing up to £250 million, building a stronger UK supply chain. It is a transition—a transition away from fossil fuels to cleaner technologies—and we intend to drive that ever faster.
Mark Logan (Bolton North East) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Foreign investment in film and TV is booming. Just last month, I met representatives of the US’s Blackhall Studios, and they unveiled plans for a major investment in conjunction with Reading University, which should bring £500 million a year in inward investment to the UK. That studio alone is expected to employ 3,000 people and further strengthen the UK industry as a creative and economic triumph.
Mark Logan
As everyone knows, Bolton is the new Hollywood. Having appeared in the Netflix show “The Stranger” and in “Top Gear”, which is filming in town today, Bolton has generated more than £200,000 in the past 12 months from being used as a film location. Will the Minister give an indication as to how a US-UK trade deal will benefit Bolton’s creative industries and cement our place as the newest leading media centre in the UK?
Graham Stuart
Smoothing access to the US through an FTA will help Bolton, and having such an excellent and film-ready advocate for Bolton as my hon. Friend, I look forward to him appearing, perhaps even with a speaking role, in future productions. It is notable that, in the past two years alone, we have seen the BBC, Netflix and Sky all using Bolton as locations for major productions, including “Peaky Blinders”, which I can certainly see him in; the “Last Tango in Halifax”, where he may be a younger love interest; “The Stranger”, although I know he never tries to be; and “Cobra”, which perhaps suggests his action credentials.
Mr Speaker
The famous film “Spring and Port Wine” was also filmed in Bolton.
Alison Thewliss (Glasgow Central) (SNP)
Mr Speaker, you should also know that the filming of the new Batman movie has been happening in my constituency in Glasgow.
Is it still the intention of the UK Government not to implement the EU copyright directive because of Brexit? If so, what analysis have they done on what impact that will have on foreign direct investment in film and the creative industries?
Graham Stuart
Now that we have departed the EU, we are determined to ensure that we remain the leading production hub globally, as we increasingly have been in film, not least thanks to the skill, expertise and beauty of the people and the places, including in the hon. Lady’s constituency.
Tom Randall (Gedling) (Con)
Sam Tarry (Ilford South) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
UK exports are at a record high, with the latest figures showing exports of £689 billion—up 5% on 2018. We are committed to doing even more, building on the measures in our export strategy. Just last month, we launched a new business support campaign, helping businesses of all sizes to fulfil their exporting potential.
Sam Tarry
Over the last few weeks, the good residents of Ilford South have been writing to me in greater and greater numbers because they are concerned about the sectarian violence we are seeing in some of our Commonwealth partners in certain regions of the world. Can the Minister reassure me and the residents of Ilford South by telling us what steps he will take to ensure that the Government’s trade strategy always promotes human rights abroad and does not embolden or reward regimes or Governments who oppress communities that are a minority in number?
Graham Stuart
The hon. Gentleman is quite right to highlight the issue of trade’s role in parts of the world where human rights are being breached. Right across the Department, we seek to ensure that all such considerations are taken into account, while recognising the need to engage with regimes that may have less than perfect Governments, for the benefit of the people there. It is a balance that we take very seriously, and I look forward to further discussion with him to get it right.
Sir Desmond Swayne (New Forest West) (Con)
There are lessons for our strategy arising from Japan’s rather unsatisfactory negotiations with the EU, are there not?
Graham Stuart
We could look at Japan, or we could look at Mercosur, which took 20 years of negotiation. Some say that the UK shorn of the heft of the EU will be less able to do deals. There are ways in which that would be true, but fundamentally, with agility, as many countries have shown, we can do more deals more quickly and, most importantly, bring greater prosperity, employment and opportunity to my right hon. Friend’s constituents and mine as a result of the UK having its own independent trade policy for the first time in 40-odd years.
Steve Double (St Austell and Newquay) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I am grateful to my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), who sets an example—not least to the party over there, the SNP—in championing the interests of Scottish workers and Scottish business, regardless of politics. [Laughter.] The hon. and learned Member for Edinburgh South West (Joanna Cherry) laughs, but all too often she sits there and says—as she did just now, chuntering from a sedentary position—“We don’t want it”: she does not want more resource from the UK Government to support Scottish business. If ever we had an example of how the separatist SNP put that single agenda ahead of the interests of the Scottish people, that was it. Thank the Lord that we have Members like my right hon. Friend to stand up for us.
Hywel Williams (Arfon) (PC)
Stephen Crabb (Preseli Pembrokeshire) (Con)
The top source market of foreign direct investment projects coming into the UK continues to be the United States, by a considerable margin. Does that not underline the importance of Heathrow and of the transatlantic aviation route as an enabler of those deals? Will the Minister confirm that the Government are still committed to growth in that important market?
Graham Stuart
My right hon. Friend is correct to highlight the importance of Heathrow and transatlantic links with the US and beyond—not only for exports, but for foreign direct investment. I am sure that he and the rest of the House will be kept informed as Government policy develops.
Mr Clive Betts (Sheffield South East) (Lab)
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Stephanie Peacock (Barnsley East) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I thank the hon. Lady for her question and for her continued championing of the UK steel industry. We work closely with colleagues in the Department for Business, Energy and Industrial Strategy to promote steel. Since 2013, the Government have provided more than £600 million of support, including £300 million for energy cost relief, £250 million for innovation and £66 million for new technologies.
Stephanie Peacock
The Government claim to be supportive of British steel makers, yet only 50% of steel purchased by the Government comes from Britain. Is it not time that the Government actually backed our steel industry, bought British and introduced a sector deal for steel?
Graham Stuart
With our colleagues at UK Export Finance, we established a steel export taskforce and we are very keen to promote steel exports. The hon. Lady is right that we should do everything we can to ensure that British steel is used in the UK. I am happy to work, both here and abroad, to make sure we support the steel industry going forward.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
My right hon. Friend the Secretary of State is championing the merits of free ports across the Government, in conjunction with Treasury Ministers, including the Exchequer Secretary, who is the constituency neighbour of my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill).
Mr Goodwill
On 12 December, a blue wave swept up the Yorkshire coast from the mouth of the Humber to the mouth of the Tees as coastal communities, some for the first time, put their trust in the Conservatives to deliver on their priorities. Does the Minister agree that the former SSI British Steel site on the south bank of the Tees would be an ideal site not only as a deep water terminal for the export of polyhalite fertiliser, but as Britain’s first free port?
Graham Stuart
My right hon. Friend is right. That blue wave was also a cleansing wave that is allowing new thinking. My right hon. Friend the Secretary of State announced our free port policy in Teesport in August. We recognise that more free ports, not least in the Teesport area, can create jobs, rejuvenate communities and boost local economies. We will continue the job creation miracle that has gone on under this Government and, with my right hon. Friend’s help, free ports will be an important part of that.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Could we rise above party politics on this? [Laughter.] Mr Speaker, they don’t blame me, do they? I understand that free ports are fashionable at the moment. If the Minister can persuade me that there will be no disadvantage to businesses in Huddersfield and Yorkshire—I have a long history of co-chairing the Yorkshire group of MPs—we could be persuaded that free ports are a good thing. Will he give us a bit more detail?
Graham Stuart
A day when the hon. Gentleman rises above party politics is one when we know a significant shift has occurred in the body politic, but I will try to take the question in the spirit in which it was intended. We are consulting and engaging widely, including with devolved areas of the country, to ensure we come up with exactly the right package to be able to assure even the most sceptical, albeit now non-party political people like the hon. Member, that free ports really can galvanise further job development and prosperity.
Stephen Crabb (Preseli Pembrokeshire) (Con)
It is important that this policy does not lead to market distortions and displacement of activity around ports. Does my hon. Friend agree that the key to making this a success is to build on the unique competencies and excellence of individual ports, such as the port of Milford Haven in my constituency, with its unique energy expertise?
Graham Stuart
My right hon. Friend is absolutely right. It is about tailoring the policy to the particular, ensuring we have something that does not lead to distortion but does lead to additional inward investment. We have gained more foreign direct investment in this country than any other European nation. That is one of the fundamental reasons why we have more people in work as a percentage of the population than the US, Germany or France, and why we have the lowest youth unemployment in our history. I am determined that the free port policy will be well-tailored to the individual circumstances of each area, while ensuring there is no distortion.
Judith Cummins (Bradford South) (Lab)
As the Minister will know, free ports existed in this country until 2012, when they were abandoned under the coalition Government due to a lack of evidence for their economic benefits. Will the Minister guarantee that if new free ports are introduced, jobs and investment will not simply be displaced from elsewhere in the country, labour rights and standards will not be undermined, and the UK will still be able to meet the level playing field standards that may arise from any future trade deal with the EU?
Graham Stuart
It may come as news to Labour, or at least its Front Benchers, that we will not be a member of the customs union as we were in 2012. Leaving the EU provides the opportunity to do things differently. We are taking a new cross-Government approach to developing ambitious free ports to ensure that towns and cities across the UK can begin to benefit from the trade opportunities that Brexit brings. It is about time that Labour Front Benchers started to recognise the upside to Brexit instead of always talking this country down.
Aaron Bell (Newcastle-under-Lyme) (Con)
Angela Richardson (Guildford) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
The Department’s high potential opportunities programme, which aims to identify and promote a range of foreign direct investment opportunities throughout the UK, is currently working with the Enterprise M3 local enterprise partnership and others in Guildford to highlight the commercial opportunities offered by the video game and 5G clusters in that region, which are world-leading.
Munira Wilson (Twickenham) (LD)
Aaron Bell (Newcastle-under-Lyme) (Con)
Graham Stuart
I spent months working with colleagues across Government to deliver the UK-Africa investment summit, which took place on Monday. I am delighted with the result and proud of the work of so many officials in making it happen. We have announced 27 commercial deals worth more than £6.5 billion from across African markets, but as my hon. Friend has pointed out, there is enormous potential for more.
Kenny MacAskill (East Lothian) (SNP)
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Jack Lopresti (Filton and Bradley Stoke) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I am working closely, as are my colleagues across Government, to make sure that the freeport policy will be successful, and will help bring regeneration, jobs, opportunity and prosperity to every part of this United Kingdom.
Ross Thomson
Given Aberdeen’s new harbour expansion, which is supported in part by UK Government investment, and a growing cluster of subsea businesses near Aberdeen International airport, does my hon. Friend agree that freeport status for Aberdeen could help to turbocharge the engine room of the Scottish economy?
Graham Stuart
My hon. Friend is correct in his assertion that freeports have the potential to drive growth in towns and cities across the UK, enabling them to make the most of Brexit opportunities. We are working hard to design a model that delivers optimal benefit for the UK and specific locations. Where appropriate, we will work with the devolved Administrations on this matter, but it would be helpful if the SNP showed more enthusiasm for something that could make a big difference.
Jack Lopresti
Does my hon. Friend agree that freeports could hugely benefit and provide great opportunities for the south-west regional economy? What plans will he put in place to ensure that local communities around freeports benefit economically?
Graham Stuart
I am grateful to my hon. Friend—no one in the House works harder to promote their area than him. Freeports offer an opportunity to unleash enterprise. We want to set forth all the principles and wealth creation that the Labour party stands against, and to allow my hon. Friend’s constituents, and the communities he represents, to prosper and grow through free enterprise, and we will carry on doing that.
Kerry McCarthy (Bristol East) (Lab)
The Prime Minister has suggested that there would be about six freeports. What assessment has the Minister made of the impact that that would have on ports that are not chosen to be freeports?
Graham Stuart
The hon. Lady makes a serious and important point. We are working hard and closely with our Treasury colleagues and others to ensure that we design the policy in the right way so that we minimise displacement and bring in additional activity and prosperity. We do not expect, and we will not design, a system that will damage those ports that do not become freeports.
Martyn Day (Linlithgow and East Falkirk) (SNP)
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?
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I congratulate my hon. Friend on working so hard to promote businesses in his area. I am delighted that our performance in dealing with licence applications is good, and I pay tribute to those who work in the Export Control Joint Unit. Some 80% of applications are concluded within 20 days, and 96% within 60 days. In some cases, complex issues have to be assessed, but we will do everything that we can to facilitate and accelerate the decision on the case raised by my hon. Friend.
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?
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?
Graham Stuart
My right hon. Friend is quite right. The design of the policy is vital. Optimising existing strength is an important part of ensuring that the policy is a success.
Jo Stevens (Cardiff Central) (Lab)
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?
Graham Stuart
As I represent a constituency in the Humber area, I will continue, without giving any special status, to ensure that we liaise with my hon. Friend, but he is so right. Conservative Members are focused on trying to find policies that open up investment and bring in further jobs, but the Labour party’s manifesto sets out policies that would destroy inward investment and cost tens of thousands of jobs.
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?
Chuka Umunna (Streatham) (LD)
The National Audit Office said yesterday that if the UK leaves the EU without a deal, cross-border shipments could be reduced by more than 50% and would take 12 months to return to normal. Can we stop this charade? Is it not the case that no responsible Government would do that to our businesses, and that if there is no agreement with the EU by Saturday, the Prime Minister will send the letter requesting an extension, not least because if he fails to do so he will be in contempt of court, given the proceedings in the Court of Session?
Graham Stuart
As well as birthday congratulations to the hon. Gentleman, I have other good news: we are taking steps to support businesses in all scenarios and to ensure that, with or without a deal, we minimise any negative disruption. But as my right hon. Friend the Secretary of State just said—this is an appeal to Members right across this House—we will have the opportunity to vote for a Saturday sitting, and we will have the opportunity, I hope, to see a deal put through that will mean that we can move forward. I hope that the hon. Gentleman, finally, will support and respect the decision of the British people in 2016.