Oral Answers to Questions

Greg Hands Excerpts

Thursday 8th October 2020 Commons Chamber

[Brendan O'Hara (Argyll and Bute) (SNP)]

What discussions she has had with her US counterpart on that country’s imposition of a 25% tariff on single malt Scotch whisky.

[The Minister for Trade Policy (Greg Hands)]

The Government take very seriously the punitive US tariffs on UK goods, including on single malt Scotch whisky. We are fighting for the removal of all such tariffs and are pushing for a negotiated settlement to the underlying World Trade Organisation civil aviation cases. The Secretary of State raised these issues most recently with US trade representative Ambassador Lighthizer in September.

[Brendan O'Hara [V]]

Exactly a year ago, the United States imposed 25% tariffs on Scotch malt whisky, devastating exports and threatening thousands of Scottish jobs. Despite the Minister’s Department making the removal of those damaging tariffs a priority, his Government have failed to move their special friend in the White House an inch on these issues. Could he explain exactly why the Scotch whisky industry, apart from being £360 million poorer, is in exactly the same place today as it was a year ago?

[Greg Hands]

I thank the hon. Member for that question. We oppose these tariffs vigorously. We are stepping up talks with the US and we were pleased that in August the US did not extend the tariffs to blended whisky, and actually removed them from shortbread. The irony is that the Scottish National party are urging us to enter into direct trade talks with the US—something that we are already doing, but something that we would not be able to do if we followed its policy of rejoining the European Union. I just remark on the SNP’s chutzpah in urging us to do something to which it is fundamentally opposed: engage directly with the United States on trade policy.

[Craig Tracey (North Warwickshire) (Con)]

What progress she has made in securing a free trade agreement with the US.

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[The Minister for Trade Policy (Greg Hands)]

Pursuing accession to the comprehensive and progressive agreement for trans-Pacific partnership is a Government priority and a key part of our trade negotiations programme. We have engaged with all 11 member countries at both ministerial and official level to discuss UK accession, including the first ever meeting of senior officials between CPTPP members and a non-member on 9 September, and all members have welcome the UK’s interest.

[Stewart Hosie (Dundee East) (SNP)]

I thank the Minister for the update. However, when the non-partisan Centre for Economic Policy Research assessed the United States accession to the original and similar trans-Pacific partnership trade deal, it concluded that wages might rise for the top 10% of earners but fall for everybody else. What assessment has his Department made of the impact of CPTPP accession on income levels in the UK, and what guarantees can he give that worsening income inequality would not be a consequence here?

[Greg Hands]

I thank the hon. Gentleman for that interesting question. I have not seen that study on the original TPP, but I will say two things. First, when the UK applies, we will be publishing a scoping assessment—an impact assessment—looking at how the deal will affect the UK economy. Secondly, liberal-minded, like-minded democracies such as Canada, Australia and New Zealand have embraced CPTPP with great enthusiasm, which gives me some encouragement in this space.

[Stewart Hosie]

It is just not the UK that is seeking to join CPTPP; Thailand, for example, is actively investigating it. Thailand’s faculty of pharmaceutical sciences has assessed that because of the way CPTPP rules on patents and on market approval for generic drugs that impact on Government procurement and so on work, the costs of drugs would rise. Given the Bangkok Post headline that CPTPP would lead to “soaring” drugs bills, what guarantees can the Minister give that a similar rise in the cost of medicines to the NHS, for the same reasons, would not be the consequence here?

[Greg Hands]

Again, I thank the hon. Gentleman for that question. Nothing in any trade deal prevents us from setting domestic pharmaceutical prices, and that would remain true in respect of CPTPP. Let me have a look at why the Scottish National party is questioning the potential to join CPTPP. I have the feeling that the SNP is just not in favour of any trade agreements; I have had a look at CPTPP members, and the SNP was against doing a deal with Canada, against doing a deal with Japan in Brussels and against doing a deal with Singapore. So I feel that whatever intricate, detailed questions he has on CPTPP, he will not support our joining it.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The Government of Malaysia are delaying ratification of CPTPP because they have become concerned, belatedly, about the impact of the treaty’s provisions on Government procurement and on investor-state dispute settlements. So before our Government go full steam ahead into negotiations to join CPTPP, will the Minister provide an assessment of those provisions for our country?

[Greg Hands]

The UK is a different economy from Malaysia, and the UK has never lost a an investor dispute case through the investor-state dispute settlement. Secondly, Government procurement is a huge opportunity for this country. Just yesterday, we were delighted to see our accession to the World Trade Organisation’s Government procurement agreement, as a sure way to make sure that Government procurement remains open for UK businesses and UK procurers. A bit like the SNP, I have checked the hon. Gentleman’s record on CPTPP and he has opposed doing the deals. He voted against on Singapore, abstained on Japan and even went further than his Labour colleagues in voting against CETA—the comprehensive economic and trade agreement—taking effect. A bit like the SNP, he is trying to find fault in an agreement that he has no intention of supporting, at any point.

[Kate Osborne (Jarrow) (Lab)]

What recent discussions she has had with UK trade partners on the inclusion of human rights clauses in future trade agreements.

[Afzal Khan (Manchester, Gorton) (Lab)]

To ask the Secretary of State for International Trade, what recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

[The Minister for Trade Policy (Greg Hands)]

This Government have a strong history of promoting our values globally. Although our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including human rights. We will not compromise our high standards in trade agreements.

[Kate Osborne]

The Government have listed 20 countries and one trading bloc where negotiations are ongoing about rolling over existing EU trade deals beyond 31 December. Are human rights part of those discussions? Will the Minister guarantee the inclusion of human rights clauses in any eventual deals reached with those countries?

[Greg Hands]

We have been absolutely clear throughout the continuity trade deal programme that there will be no diminution of UK standards, and that also applies to human rights. We will make sure that our strong, proud record on human rights—we are a world leader in ensuring and guaranteeing human rights—continues throughout all the continuity trade programme.

[Janet Daby [V]]

The UN group of experts has concluded that all parties in Yemen, including the Saudi coalition, are violating international law on an ongoing and consistent basis and that countries such as the UK, which are selling arms for use in the conflict, are showing a blatant disregard for the violations. Can the Minister explain why the independent panel of experts is wrong and he is right?

[Greg Hands]

Some of this is subject to ongoing legal proceedings, but I remind the hon. Lady that we discussed this at some length last month in the House in an urgent question, which I answered. May I also remind her that, at all times, we follow the consolidated criteria, which provide a robust framework by which we assess export licence applications?

[Afzal Khan [V]]

China is the largest cotton producer in the world, with 84% of the cotton coming from the Xinjiang region. The entire global clothing industry is tainted with forced Uyghur labour, and the UK is no exception. In the light of that, does the Minister agree that we cannot put trade above human rights, and will he outline what steps his Department is taking to ensure that human rights concerns are considered during bilateral trade negotiations between the UK and China?

[Greg Hands]

We are absolutely clear that more trade does not have to come at the expense of human rights. Indeed, there is a very strong positive correlation between free trade and human rights through the world. On Xinjiang, my right hon. Friend the Foreign Secretary has been absolutely robust in our criticism, our condemnation, of what has been happening to the Uyghurs in the province. I reiterate that today, while reminding the hon. Gentleman that we are not negotiating a trade deal with China.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I am sure that the whole House has been encouraged by the Minister’s warm words on human rights, but let us test them with a specific example. I understand from the high commissioner of Cameroon that virtual negotiations on UK’s roll-over agreement are taking place as we speak, the first such negotiations in more than a year. Perhaps the Minister will update us on those talks and on any side discussions on the attendee development. For the purposes of this question, can he tell us whether his intention going into those negotiations is to assert a full essential elements human rights clause into the roll-over agreement with Cameroon rather than the current obsolete cross-reference to Cotonou? If so, how does he plan to enforce that clause effectively? Is it by penalising the Biya Government for their continued human rights abuses or, preferably, to persuade them to stop those abuses in future?

[Greg Hands]

I thank the right hon. Lady for that question. She is referring, of course, to the Cotonou agreement, which is shortly to expire. There are two things to take away from this. The first is the importance of keeping the continuity of our trading relations with Cameroon. That is very important for the Cameroon economy overall. Secondly, we continue to raise at every level with Cameroon our concern about human rights, both across the country in general and those affecting the anglophone community in the south-west of the country. On the deal itself, there will be no diminution in the human rights clauses of the existing EU deal, which I think is what she is seeking to criticise.

[Jacob Young (Redcar) (Con)]

What progress she has made in securing a free trade agreement with Australia.

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[Sir Mark Hendrick (Preston) (Lab/Co-op)]

What discussions she has had with UK trade partners on ensuring that public procurement is excluded from future trade deals.

[The Minister for Trade Policy (Greg Hands)]

We are delighted that in Geneva yesterday the UK was admitted to the World Trade Organisation’s government procurement agreement, which will secure access to a public procurement market worth £1.3 trillion. I am sure that the hon. Gentleman will join me in welcoming this significant step for the UK as an independent trading nation.

[Sir Mark Hendrick [V]]

The NHS currently strikes huge multi-billion-pound deals with drug providers around Europe that deliver huge benefits to the NHS and minimise drug costs to patients. Will the Government be allowing the US, through a trade deal, to gain access to NHS drugs procurement, and what are the implications for drug prices?

[Greg Hands]

We have been absolutely clear that in terms of the US deal the NHS is not on the table, and that includes drug pricing and other aspects of delivery of healthcare services. Let me remind the hon. Gentleman that the European Union is also a member of the government procurement agreement, and therefore we look forward, on a bilateral basis between the UK and the EU, to UK companies being able to take advantage of these procurement opportunities in European markets and also UK procurers being able to give their contracts to European companies.

[Matt Western (Warwick and Leamington) (Lab)]

What discussions she has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of using carbon tariffs to reduce emissions associated with international trade.

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[Damian Collins (Folkestone and Hythe) (Con)]

What progress has been made in the UK/US trade negotiations on digital trade.

[The Minister for Trade Policy (Greg Hands)]

The UK has published its US negotiation objectives, which outline our intention to include provisions that facilitate the free flow of data while ensuring that the UK’s high standards of personal data protection are maintained. They include provisions to prevent unjustified data localisation requirements.

[Damian Collins [V]]

I thank the Minister for his answer. Will he confirm that under a trade agreement, American businesses processing UK citizens’ data in America would still have to abide by UK data laws, and also that a trade agreement will do nothing to undermine the age-appropriate design code for social media?

[Greg Hands]

On the second point, nothing in any trade agreement would prevent us from legislating against online harms in this country. On the first point, the UK’s trade policy seeks to maintain high levels of data protection by committing parties to legislate for the protection of the personal information of users of electronic commerce. That means that users of electronic commerce will have legal certainty over the protection of their personal information.

[Karl MᶜCartney (Lincoln) (Con)]

What progress she has made in securing a free trade agreement with New Zealand.

[The Minister for Trade Policy (Greg Hands)]

A free trade agreement with New Zealand is a priority for the UK Government. Trade negotiators from the UK and New Zealand held the first round of negotiations between 13 and 24 July 2020, and a second round of negotiations is due to begin on 19 October. New Zealand are a global leader when it comes to trade policy and trade agreements, and it is always a pleasure to deal with them.

[Karl MᶜCartney [V]]

I thank the Minister for his answer. He may be aware that prior to my first election in 2010, I worked closely with our colleague the Prime Minister in his former role as London’s Mayor and various members of the New Zealand Government to secure appropriate recognition for Sir Keith Park, the defender of London. I am pleased therefore to see our strengthened trade links with New Zealand, but does my right hon. Friend agree with me and others that we need to go further to strengthen commercial and political ties between Canada, Australia, New Zealand and the UK and seize the chances that Brexit presents for the UK?

[Greg Hands]

I thank my hon. Friend for his words of praise for the previous Mayor of London, who did a much better job than the current incumbent. I recently met the New Zealand high commissioner. The Secretary of State speaks regularly with the New Zealand Trade Minister. I did a webinar with New Zealand businesses recently. We want to have a cutting-edge deal as soon as possible. In terms of the broader relationship with Canada and Australia, I am very sympathetic to what my hon. Friend says, but I think the answer to that lies within the comprehensive and progressive agreement for trans-Pacific partnership, of which Canada, Australia and New Zealand are members.

[Ian Paisley (North Antrim) (DUP)]

What recent assessment she has made of the effectiveness of the export finance guarantee scheme.

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[Marco Longhi (Dudley North) (Con)]

It is an undisputed fact that capitalism and free markets are the surest route out of poverty. Can my right hon. Friend update the House on how the Department is using trade to boost development in Africa?

[The Minister for Trade Policy (Greg Hands)]

My hon. Friend is absolutely right. Before I returned to the Department, I was the chair of the trade out of poverty all-party parliamentary group in this place. We have achieved duty free, quota free access for 39 African countries, and only yesterday the Prime Minister appointed 11 new Africa trade envoys. However, what would be unhelpful to our trade relationship with Africa is Labour and SNP Members’ proposals to dictate domestic production standards in the developing world, which has the potential to kill off our trade with those countries. I would ask them to look those countries in the eye when the Ghanaians cannot sell us their cocoa, when the Caribbean cannot sell us bananas, when the Kenyans—

[Mr Speaker]

Order. [Interruption.] No, no, no. Minister—and I will say this to both Front Benches—topicals are meant to be short and punchy. They are not meant to be for debating points like other questions. That is why topicals were brought in. Both Front Benches have taken advantage, and none more so than the Minister then. Let us head up to Preston with Sir Mark Hendrick. Come on: calm is needed.

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

  In response to Russia’s illegal annexation of Crimea, the UK has been at the forefront of EU sanction action against Russia, which this Government have reiterated their support for in two written statements to the House this year. Does the Secretary of State accept an obligation to operate the same principles in relation to trade with the illegal Israeli settlements in Palestinian territories?

[Greg Hands]

Sanctions are a matter for the Foreign, Commonwealth and Development Office, and I will pass on the hon. Member’s views to it. However, to answer the first part of her question, the UK has been absolutely robust in its approach to Russia on many fronts, not least the illegal annexation of Ukraine, which we have opposed at all points. We will continue to highlight that injustice at every international forum available.

[Scott Mann (North Cornwall) (Con)]

I would like to congratulate the Secretary of State and her turbo-charged Department on the Government procurement agreement, the Japanese free trade deal and progress in many other areas. It was a pleasure to welcome her to North Cornwall recently to demonstrate our great British food offer. Then it was cheese; today it is shellfish. North Cornwall has a lot of shellfish fishermen who hope to take advantage of our new trading independence. Can the Secretary of State tell me what consideration her Department has made of potential opportunities for crab and seafood exports to Asian countries such as Korea and Taiwan?