Oral Answers to Questions

Greg Hands Excerpts

Thursday 22nd February 2018 Commons Chamber

[Catherine West (Hornsey and Wood Green) (Lab)]

2. What estimate his Department has made of the number of new institutions required to replicate the terms of existing trade agreements with the EU after the UK leaves the EU.

[The Minister for Trade Policy (Greg Hands)]

The Government are committed to seeking continuity in our trading arrangements to minimise disruption to businesses, consumers and our trading partners. We will ensure that the institutional provisions of existing agreements are met as the UK begins to operate its independent trade policy.

[Catherine West]

What parliamentary shared goals do the Government have in mind for the new arrangements that will come into place?

[Greg Hands]

To be absolutely clear, if the hon. Lady is referring to the Trade Bill, what we are looking at is the transitioning of existing trading arrangements with the EU. All those agreements have already been through parliamentary scrutiny. If she is referring to future trade agreements, we will bring that subject back to this House in due course.

[Julia Lopez (Hornchurch and Upminster) (Con)]

One of the new institutions we shall need to set up as we leave the EU is a trade remedies authority. I recently travelled to Canada and the US with the International Trade Committee. They are two countries that have robust trade remedies authorities whose impartiality can be critical in reaching economically sound judgments. What assurances can the Minister offer the House that the UK Government are similarly committed to an independent TRA that will be free from undue political interference?

[Greg Hands]

I congratulate my hon. Friend and the other members of the Committee on their recent visit to the United States and Canada. Those are two of the countries whose trade remedy systems we have studied, along with Australia and, in fact, the European Union system itself. As my hon. Friend says, it is common, although not universal, for the investigation process to be independent of the Government, but there is still a political decision at the end of the process by a Minister who is accountable to Parliament. It is worth pointing out, by the way, that all the Opposition parties voted against the creation of the trade remedies authority in the first place.

[Patrick Grady (Glasgow North) (SNP)]

I do not know whether a bridge counts as an institution, but I wonder whether the policy of the Department for International Trade, like that of the Foreign Office, is that a new fixed link between Britain and France is required to continue to improve trade after Brexit.

[Greg Hands]

We have been absolutely clear throughout this process about the importance of maintaining our trading relations with the European Union. That is why we are seeking to ensure that trade is as frictionless as possible, and why we are seeking a comprehensive free trade agreement with the EU.

[Mr Philip Hollobone (Kettering) (Con)]

The EU does not have comprehensive free trade agreements with some of the world’s major economies. Does the Minister believe that the United Kingdom is likely to strike such deals more quickly than the European Union?

[Greg Hands]

We remain supportive of the European Union’s negotiations with some of those trade partners while we are still a member of the EU, because we are strong believers in free trade. We have also set up 14 trade working groups with many of the leading economies, including China, India and the United States, and we look forward to making further progress with those arrangements in due course.

[Judith Cummins (Bradford South) (Lab)]

Our current trading relationships with many partners ranging from Switzerland to Mexico are overseen by joint committees of the EU and those other states. Will the Minister tell us how many of the committees will be replaced by UK equivalents after Brexit, and what progress his Department has made in establishing those institutions? Will he also tell us where the staff and expertise will be sourced from, and at what cost to the taxpayer?

[Greg Hands]

Let me say first that the UK played a leading role in establishing the European Union arrangements with countries such as Mexico and Switzerland in the first place. As for the question of where we go from here, our priority is to maintain continuity in our trading relations, ensuring that all the 40-plus trading agreements we have with 70-plus countries become UK arrangements as we leave the European Union. The precise format of the further discussions that we will have with those partners will be a matter for future arrangements.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

3. Whether he plans to replicate the terms of EU free trade agreements in trade deals with Switzerland, Norway and Turkey after the UK has left the EU; and if he will make a statement.

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[Colin Clark (Gordon) (Con)]

4. What steps he is taking to strengthen UK trading relations with Australia, New Zealand and other Commonwealth countries in the Pacific.

[The Minister for Trade Policy (Greg Hands)]

We have the opportunity to enhance our global trading relationships, including those with the countries with which we share bonds of history and friendship. My right hon. Friend the Secretary of State travelled to Australia and New Zealand in November to promote free trade and deepen those trading relationships. The April Commonwealth summit here in London will provide an opportunity for us to continue that work with all member states.

[Colin Clark]

Has my right hon. Friend considered how UK agriculture will compete with our Commonwealth cousins when we agree a free trade deal after leaving the customs union?

[Greg Hands]

I praise my hon. Friend for his distinguished business career in the sector before coming to this House; it means he brings real expertise to the House. He will know that we have established trade working groups with both Australia and New Zealand to explore possibilities in trade and investment. They will include agriculture, but it is too early to be sure how it will be covered in those and other future trading arrangements. The New Zealanders are very interested in this—the New Zealand High Commission recently wrote to the International Trade Committee saying:

“Given the complementarity of our two economies and our deep bilateral ties,”

they want to do something with us, and we very much agree.

[Chris Elmore (Ogmore) (Lab)]

On negotiations with New Zealand, the Minister will be aware that Wales has a large lamb industry—it is one of the great prides of the United Kingdom—so can he give an absolute assurance that in his negotiations with New Zealand he will not put any Welsh farms and the Welsh lamb industry at risk?

[Greg Hands]

I am keenly aware, as are my right hon. Friend the Secretaries of State for International Trade and for Environment, Food and Rural Affairs, of the importance of British agriculture in all parts of the United Kingdom and of making sure we have the necessary protections in place on animal welfare standards and so on, and also of promoting the opportunity to export our excellent British goods. Food and drink is one of our fastest-growing export sectors, and we want people to take advantage of opportunities across the UK.

[Mr Gregory Campbell (East Londonderry) (DUP)]

What importance does the Minister attach to deepening and broadening our trade relationships with countries such as India, which has a widening middle class among its population of 1.25 billion?

[Greg Hands]

The Prime Minister’s first bilateral trade visit in November 2016 was to India, accompanied by the Secretary of State and myself. We have recently completed a trade audit with India that looks at all the barriers. India is at times a difficult market for British exporters to crack. We have a lot of advantages in doing business there, and the trade audit and the joint economic trade committee talks led by the Secretary of State last month are taking us in the right direction.

[Joanna Cherry (Edinburgh South West) (SNP)]

5. What recent assessment he has made of the effect on UK trade of the UK leaving the EU single market and the customs union.

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[Mr John Hayes (South Holland and The Deepings) (Con)]

8. What recent estimate he has made of the UK’s trade deficit in goods and services.

[The Minister for Trade Policy (Greg Hands)]

In 2016, the UK had a trade deficit with the EU of £70.97 billion, and a trade surplus of £39 billion with non-EU countries, up from £33.6 billion in 2015. The latest trade figures show that in 2017, the UK’s trade deficit in goods and services narrowed by £7 billion to £33.7 billion.

[Mr Hayes]

Balance of trade figures were once regarded as pivotal. They were even thought to win or lose elections. Given that we are now going to escape from the constraining clutches of the European Union, will my right hon. Friend invest again in old friends and rejuvenate our relationships in the realm with allies such as Australia and New Zealand? What steps has he taken to ensure preferential arrangements with such old allies?

[Greg Hands]

My right hon. Friend asks a very good question. First, I should like to put on record my thanks to him for leading various Government trade delegations in recent years, including one to Colombia. I know that he takes a strong interest in this subject. As I said earlier, we have set up trade working groups with Canada, the United States, Australia and New Zealand, and, unlike Opposition Front Benchers, we also voted for the comprehensive economic and trade agreement, the EU’s free trade agreement with Canada. The Secretary of State has been in all four of those markets in the past year, leading efforts to break down trade barriers and to seek new trade agreements.

[Mr Speaker]

I am sure that the right hon. Member for South Holland and The Deepings (Mr Hayes) enjoyed going to Colombia. Quite what Colombia made of the right hon. Gentleman is not recorded.

[Thangam Debbonaire (Bristol West) (Lab)]

The creative sector in Bristol West—particularly the music industry—is important, and trade in that sector is a service industry. What steps are the Government taking to ensure that the creative industries, particularly the music industry, are supported as we leave the EU?

[Greg Hands]

The hon. Lady is quite right to point out the importance of services to our trade. Overall, services represent 80% of our economy and 79% of jobs. My right hon. Friend the Secretary of State and the whole team are working closely with the Department for Digital, Culture, Media and Sport to ensure that we continue to grow exports from our creative sector and that investment from abroad continues to come into the sector. We often visit places such as Tech City UK and techUK, and we are working closely with them to ensure that we have a flourishing future for our creative industries.

[Martin Vickers (Cleethorpes) (Con)]

Last week, as co-chair of the all-party parliamentary group on Kosovo, I visited a British company in Pristina that has a £20 million investment there. What opportunities does the Minister foresee for widening our trade in goods and services with Kosovo and the neighbouring western Balkan countries?

[Greg Hands]

This is a very good opportunity. That is a part of the world that I know well, and I think that the company to which my hon. Friend refers is called Fox Marble—a highly appropriate name for this particular Question Time. It finds top-quality marble in Kosovo for export, and it should be congratulated. In regard to the wider region, we work closely with the Foreign and Commonwealth Office to promote trading opportunities throughout the region.

[Rehman Chishti (Gillingham and Rainham) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Edward Argar (Charnwood) (Con)]

T6. Further to his earlier answer, does my right hon. Friend agree that the prospects for future trade with our close friend and economic partner India remain very bright?

[The Minister for Trade Policy (Greg Hands)]

Yes, my hon. Friend is right. I mentioned the India trade audit that has just been published. The Secretary of State met his Indian counterpart, Minister Prabhu, during our Joint Economic and Trade Committee meetings in January, and they agreed that bilateral work will now explore addressing barriers in four recommended sectors: food and drink, life sciences, information technology and services.

[Mohammad Yasin (Bedford) (Lab)]

The UK remains a major transit hub for illegal wildlife trafficking, and we rely on Border Force to prevent that trade. Will the Minister tell his colleagues in the Home Office to ditch their dangerous plan to replace Border Force staff with volunteers?

[Greg Hands]

Actually, this Government have made enormous efforts to stop wildlife trafficking. My right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs made it a major part of his visit to south-east Asia last week, and he made particular reference to the pangolin, which at the moment is the world’s most trafficked animal. This Government are leading global efforts in combating this horrendous trade.

[Chris Philp (Croydon South) (Con)]

T7. Does my right hon. Friend agree that free trade helps consumers by lowering prices and that free trade has been one of the biggest contributors to combating global poverty over the past 100 years? Will he embrace the opportunities created by Brexit to do free trade deals that will help consumers and British businesses?

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[Eddie Hughes (Walsall North) (Con)]

T8. How can the many excellent manufacturing businesses in the Black country benefit when we leave the customs union?

[Greg Hands]

My hon. Friend is a fine and upstanding voice for the Black country. He will know that manufacturing experienced a 2.8% growth rate over the past year. Leaving the customs union provides an opportunity to enhance that growth, particularly as manufacturing exports outside the EU are growing so fast.

The Minister for Women and Equalities was asked—