Oral Answers to Questions

Greg Hands Excerpts

Thursday 17th May 2018 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

2. What steps he is taking to ensure that UK trade with developing countries promotes women’s rights after the UK leaves the EU.

[The Minister for Trade Policy (Greg Hands)]

The UK is committed to promoting equality and women’s rights in trade in the UK and around the world.  We have taken decisive steps to recognise the role of trade in promoting gender equality by signing the WTO’s joint declaration on women’s economic empowerment.  We also launched at the Commonwealth Heads of Government meeting last month the SheTrades Commonwealth programme, which will boost participation of women-owned businesses in trade.

[Stuart C. McDonald]

I very much welcome that answer because a well-designed trade policy can positively transform women’s social and economic rights in developing countries. If that is not the case, that can destroy livelihoods, undercut wages and damage vital public services. Will the Minister commit to publishing an assessment of the impact on women of every trade deal that he signs with developing countries?

[Greg Hands]

I agree with the thrust of the hon. Gentleman’s question. I commend the work of some key non-governmental organisations in this space, particularly ActionAid UK. The matter of impact assessments is one for future trade policy and future trade agreements. However, we are not waiting on that to make a difference on ensuring that women can participate fully in trade. I point him to a recent study by McKinsey that showed that, if women participated in the economy on an equal basis to men, there would be an increase of 26% in world GDP—the equivalent of an economy the size of the US and China put together.

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

We drove this agenda in the EU. Is not the danger rather that, bereft of our influence, the EU will backslide?

[Greg Hands]

My right hon. Friend is quite right: the UK has been a key driver of that agenda. He is also right that the EU27 may well take a different approach. However, the UK approach remains strongly and resolutely in favour of promoting gender equality in trade and making sure that trade works particularly for women entrepreneurs, who make up a disproportionate part of the online entrepreneurial community.

[Hannah Bardell (Livingston) (SNP)]

This will be my last outing as the Scottish National party trade spokesman; I will be moving to pastures new in Digital, Culture, Media and Sport. I want to put on the record my thanks to the Secretary of State and his team. While we do not always agree—in fact, rarely—our discussions and exchanges are always respectful and lively.

The 2013 Rana Plaza disaster is a prime example of how growth in export industries can have devastating results, particularly for women and girls. Jobs were created that were unsafe and had exploitative conditions for the largely female factory workers. Can the Minister assure the House and indeed everyone across the UK that any trade deals he does will not result in the exploitation of anyone, in particular women and girls?

[Mr Speaker]

May I say to the hon. Lady that I hope in her new role the sky will be just as blue?

[Greg Hands]

May I first commend the hon. Lady for the constructive role she has taken? She and I have worked together particularly to try to benefit certain businesses in Livingston, her constituency, and in terms of her wider brief.

Yes, of course, we are absolutely committed that future trade agreements will pay heed to the importance of gender rights and a whole series of other rights in those agreements. What we can do, however, in the meantime is make sure that the trade agenda fully recognises gender equality, particularly, as I have mentioned, in relation to the Commonwealth and the WTO. We were one of the 120 WTO members at Buenos Aires in December that adopted the joint declaration on trade and women’s economic empowerment.

[Judith Cummins (Bradford South) (Lab)]

The Minister often remarks that trade has pulled millions of women out of poverty, but in the Trade Bill Committee the Government voted against ensuring that future trade deals fully comply with the convention on the elimination of all forms of discrimination against women. Has he changed his mind on this and, if so, will he ensure that future trade deals contain effective mechanisms that protect women in the global supply chain from exploitation, poverty wages and the suppression of trade union rights?

[Greg Hands]

I gently remind the hon. Lady that she of course voted against the Trade Bill in its entirety on Second Reading, which I think is always worth remembering. Secondly, I would say that we will take no lessons from Labour in this space because the UK has been a leader, over the last eight years, in making sure that this agenda is taken up at the WTO, at the European Union and at CHOGM. When it comes to future trade agreements and future trade policies around those trade agreements, that will be a matter for future proposals, as she well knows.

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[Stephen Hammond (Wimbledon) (Con)]

6. What assessment he has made of the potential benefits to the UK arising from third-country trade deals after the UK leaves the EU.

[The Minister for Trade Policy (Greg Hands)]

Leaving the EU means, for the first time in over 40 years, we will from next March be able to sign and ratify new trade deals. We are currently party to about 40 international trade agreements and are committed to securing continuity of those agreements. We have also established 14 trade working groups in major markets to explore the best ways of developing new trade and investment relationships post Brexit.

[Stephen Hammond]

I thank my right hon. Friend for that answer. He will know, as I do, that international regulatory standards are what fuel international trade. For the continuation of those deals and opportunities, does he agree that regulatory alignment will be necessary to secure the best British deals post Brexit?

[Greg Hands]

As my hon. Friend will know, we have some good news for him about the implementation period. The UK will be party to those deals up to the end of December 2020. He is also right that there is a very important read-across between what is agreed with the EU on standards, rules of origin and so on. Our commitment remains absolute to have high standards and to encourage the use of broad international global standards of the highest quality.

[Kate Green (Stretford and Urmston) (Lab)]

10. Ministers have said that trade with Commonwealth countries will be important after Brexit and the Minister will be aware that currently our trading arrangements with many African and Caribbean Commonwealth countries are by virtue of the Cotonou agreement, which is due to be renegotiated during the transition period. Will the Minister say what trade arrangements he expects we will have with those countries once the new agreement with the EU takes effect?

[Greg Hands]

As I say, up to the end of 2020, the UK will remain party to those agreements as they stand. We are also putting in significant efforts to make sure that the substance of those agreements rolls over beyond that. That is why we have signed memorandums of understanding with, for example, the South African Development Community—the South African customs area—CARIFORUM and the eastern and southern African economic partnership agreement group. That is work that is making good progress.

[Alex Cunningham (Stockton North) (Lab)]

7. What steps he is taking to ensure that the UK maintains preferential market access to those countries with which it currently has such access as a member of the EU after leaving the EU.

[The Minister for Trade Policy (Greg Hands)]

The Government are committed to securing continuity of existing EU trade agreements and other preferential arrangements as we leave the EU. The draft withdrawal agreement confirms EU international agreements continue to apply to the UK during the implementation period. We are working to ensure continuity of those arrangements after that.

[Alex Cunningham]

The REACH—registration, evaluation, authorisation and restriction of chemicals—regulations that govern production and other standards are critical to countless chemical companies in my Stockton North constituency and beyond for trade across the world. Will the Minister update the House on the progress to retain them when we leave the EU?

[Greg Hands]

I met the chemicals industry earlier this week—in line with other industries—in a very useful roundtable at the Department for Business, Energy and Industrial Strategy. That work to make sure that the UK benefits from the best possible rules as we go forward is ongoing.

[Steve Double (St Austell and Newquay) (Con)]

Does the Minister agree that one of the big opportunities from leaving the EU is that we can negotiate trade deals that best suit the UK, rather than being tied into the other 27 member states?

[Greg Hands]

My hon. Friend makes a very important point. That is why we have these 14 trade working groups with major markets around the world. We are in active discussions with those counterparts and we have the benefit, from March next year, of the ability to negotiate, sign and ratify trade agreements with them.

[Barry Gardiner (Brent North) (Lab)]

First, the Government said that they were simply rolling over these agreements on precisely the same terms. Then they admitted that they would have to amend the agreements with Norway, Turkey and Switzerland to avoid rolling over such things as the customs union or the four freedoms that they would rather avoid, but the Minister has still not explained what process this sovereign Parliament will undertake to ensure that these important new agreements are subjected to proper democratic scrutiny. When will he?

[Greg Hands]

We had significant exchanges on this during the Trade Bill Committee and the scrutiny arrangements are enshrined in that Bill, which I note again that the hon. Gentleman voted against. He will also know that these agreements have already been scrutinised in this House under existing EU scrutiny procedures, and there are precise arrangements set out in the Bill for how we go forward from here.

[Mr Bob Seely (Isle of Wight) (Con)]

8. What progress he made on potential trade agreements with Commonwealth countries at the Commonwealth Heads of Government Meeting in April 2018.

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[The Minister for Trade Policy (Greg Hands)]

Since the draft withdrawal agreement confirms that international agreements continue to apply to the UK during the implementation period, common rules of origin will remain until the end of 2020.  We are keen, of course, to avoid disruption to supply chains, so we are working to secure continuity after this.

[Kerry McCarthy]

I am sure the Minister has met motor manufacturers who have warned that they will simply not be able to meet the 60% local content requirement under rules of origin if EU components cannot be included. At present, the UK content is between about 40% and 44%. How will the Minister address that?

[Greg Hands]

I think the hon. Lady is referring to the EU’s current set of more than 40 agreements with more than 70 counterparts. That is a matter for active discussions. We are obviously trying to secure the best possible deal for UK motor manufacturers, not only those involved with the finished product but those who provide the components, as part of our talks with third parties.

[Alex Cunningham (Stockton North) (Lab)]

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

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[Mr Virendra Sharma (Ealing, Southall) (Lab)]

T5. What is the Secretary of State doing to secure more trade with India?

[The Minister for Trade Policy (Greg Hands)]

It was my pleasure to address the hon. Gentleman’s all-party group on India only last week, and we have a huge success story. My right hon. Friend the Secretary of State has talked about the trade audit—the trade review—that we have done with India. I can also report that bilateral trade has increased by 15% over the last year, and we remain the largest G20 investor in India, with British companies currently employing around 788,000 people in India.

[Ross Thomson (Aberdeen South) (Con)]

It was a pleasure to welcome the Secretary of State to my constituency last week where he could see that, from food and drink to oil and gas, Aberdeen is best placed to take on the opportunities of Brexit. I thank my right hon. Friend’s Department for promoting Aberdeen’s £150 million Queen’s Square project this afternoon. Will my right hon. Friend update the House on the benefits to Scotland of extending the high potential opportunity scheme, and does it not show that Scotland is better off in the United Kingdom?