Thursday 14th January 2021

(3 years, 2 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Rob Butler Portrait Rob Butler (Aylesbury) (Con)
- Hansard - - - Excerpts

What steps her Department has taken to help ensure that SMEs in Buckinghamshire can benefit from future free trade agreements.

Greg Hands Portrait The Minister for Trade Policy (Greg Hands)
- Hansard - -

The Government have included, and will continue to seek to include, specific SME chapters in all our free trade agreements to ensure that SMEs are provided with the information necessary to make informed commercial decisions and seize the great new opportunities provided by these agreements.

Paul Howell Portrait Paul Howell [V]
- Hansard - - - Excerpts

The support for SMEs in the trade agreement is great to see, but may I ask the Minister to continue that with a free trade agreement for the USA that supports companies like Kromek in Sedgefield? It manufactures high-radiation detector material ingots that are shipped to the USA, attracting US import duty incorporating the price for worldwide sale, with the waste coming back to the UK for re-manufacture, attracting further UK import duty. The removal of those duties would clearly support high-value jobs in Sedgefield and increase the global competitiveness of an export-led UK business.

Greg Hands Portrait Greg Hands
- Hansard - -

I thank my hon. Friend for that excellent question on behalf of his constituency company, and I can tell him that the US and the UK have a shared ambition to improve trade for our SME-focused economies on both sides of the Atlantic, to help companies such as Kromek. There are three specific areas we are looking at. First, we want to reduce or eliminate tariffs. Secondly, we will have a wide-reaching SME chapter. Thirdly, we are also looking at provisions on reimported goods as well. Those provisions will benefit around 32,000 UK SMEs that already export to the US, such as Kromek, but also future SMEs. That will grow that trade, which will suit our bustling and improving SME sector.

Rob Butler Portrait Rob Butler [V]
- Hansard - - - Excerpts

The trade agreement with the European Union is absolutely fantastic for our country as a newly sovereign nation, and it comes on top of deals already covering more than 60 countries. Can my right hon. Friend tell the House how he intends to go further still and secure opportunities in the Asia-Pacific region, which would particularly benefit small businesses in my constituency of Aylesbury, but also those across the UK?

Greg Hands Portrait Greg Hands
- Hansard - -

We are seeking an SME chapter in all our future free trade agreements. SME chapters are an excellent way of assisting companies to navigate a free trade agreement. They distil information and make it easier, particularly for companies without expertise in trade agreements, which is generally the case for SMEs. In Asia-Pacific, we aim to include such chapters. We have already included one in an agreement with Japan, and we aim to include them in agreements with Australia, New Zealand and, of course, the comprehensive and progressive agreement for trans-Pacific partnership. We are aiming to do that to benefit SMEs in constituencies such as my hon. Friend’s in Aylesbury.

Simon Baynes Portrait Simon Baynes (Clwyd South) (Con)
- Hansard - - - Excerpts

What steps her Department has taken to promote food and drink exports from across the UK.

--- Later in debate ---
Richard Thomson Portrait Richard Thomson (Gordon) (SNP)
- Hansard - - - Excerpts

What discussions she plans to have with her EU counterparts on developing the relationship on services.

Greg Hands Portrait The Minister for Trade Policy (Greg Hands)
- Hansard - -

The trade co-operation agreement secures continued market access across key service sectors, including both professional and business services. The agreement also includes a commitment to review the services provisions with a view to making further improvements, along with a specific joint declaration on regulatory co-operation in financial services. Specifics will be taken forward by the Cabinet Office and Taskforce Europe.

Douglas Chapman Portrait Douglas Chapman [V]
- Hansard - - - Excerpts

Within a day of leaving the EU, shares worth billions of euros normally traded in the City of London flooded out of the EU to other European capitals such as Paris and Amsterdam. One trader told the Financial Times that this was a “stunning own goal” and only the beginning of the financial sector’s post-Brexit decline. We know that in Scotland seafood markets are already being decimated, but what is the Minister’s assessment of the damage Brexit will do to the UK’s financial sector and how many own goals can we expect in the future?

Greg Hands Portrait Greg Hands
- Hansard - -

The memorandum of understanding on financial services ensures financial stability and consumer protection, and we look forward to that being negotiated. I was not surprised by this question, but I was a little bit surprised that the hon. Gentleman was the one asking it. It is not that long ago that he said:

“Leaving the European Union without a deal in place is an act of economic self-harm”.

But that is precisely what he voted for on 30 December.

Deidre Brock Portrait Deidre Brock [V]
- Hansard - - - Excerpts

The Prime Minister admitted that the deal is not up to the job on trade and services, and Brussels has made it clear that access will be restricted further if there is divergence from the EU’s standards. Is it the Government’s intention to give up access to that market, or will the UK remain wedded to the EU’s regulatory framework?

Greg Hands Portrait Greg Hands
- Hansard - -

I have long experience in this space, having been a Treasury Minister, and there are of course advantages to the UK being able to set its own regulatory regime for financial services as the biggest financial services marketplace in Europe. I think the hon. Lady is wrong to characterise the treaty—she voted in favour of no deal—as not being good for services. There are good provisions on business travellers, excellent provisions on legal services, and very, very good provisions on digital and data. I am a little bit surprised that she is not more supportive of the deal.

--- Later in debate ---
Kate Osborne Portrait Kate Osborne (Jarrow) (Lab)
- Hansard - - - Excerpts

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

Greg Hands Portrait The Minister for Trade Policy (Greg Hands)
- Hansard - -

The United Kingdom has long promoted its values globally. We are clear that more trade does not have to come at the expense of our values. While our approach to agreements will vary between partners, it will always allow this Government to open discussions on issues, including on rights and responsibilities.

Margaret Greenwood Portrait Margaret Greenwood [V]
- Hansard - - - Excerpts

Following on from the Minister’s response, successive UK Governments have believed in the principle that all new trade treaties should contain clauses allowing those treaties to be suspended if the other party engages in serious abuses of human rights, yet the UK recently signed new treaties with Singapore, Vietnam and Turkey, none of which had those clauses, despite ongoing concerns about the records of those countries. Can the Minister please explain why?

Greg Hands Portrait Greg Hands
- Hansard - -

The hon. Lady might be misunderstanding the nature of the continuity programme for rolling over existing agreements. I point out that, on Turkey, the underlying agreement dates from 1963, and there were no human rights clauses in that agreement, but that does not mean to say that we do not have a robust discussion with Turkey on human rights. The EU-Vietnam framework agreement was separate and was not necessary to achieve trade continuity, but again we have a good dialogue with Vietnam on human rights. The UK and Singapore have agreed a UK-Singapore political joint statement to reflect our close partnership. Once that is signed, it will be published on gov.uk.

Liz Twist Portrait Liz Twist
- Hansard - - - Excerpts

We have spent much time in this Chamber quite rightly talking about the fate of the Uyghurs and China’s treatment of them. Does the Minister agree that that issue needs to be dealt with in any trade deal, to ensure that we are not endorsing such genocidal actions?

Greg Hands Portrait Greg Hands
- Hansard - -

I am extremely sympathetic to the hon. Lady’s question. The Foreign Secretary delivered an extensive statement on this topic on Tuesday. Of course, the UK is not negotiating a free trade agreement with China. However, the Foreign Secretary announced on Tuesday a review of export controls, financial penalties for organisations not complying with the Modern Slavery Act 2015, strengthening the overseas business risk guidance and making sure that the Government have the information we need to exclude suppliers complicit in human rights violations in Xinjiang.

Kate Osborne Portrait Kate Osborne [V]
- Hansard - - - Excerpts

May I ask the Minister very simply why he feels it was appropriate to roll over a trade agreement with Egypt, a country that routinely detains and executes political opponents and religious minorities, persecutes its lesbian, gay, bisexual and transgender community and suppresses democratic freedoms, and why no effort was made to strengthen the human rights provisions in that agreement?

Greg Hands Portrait Greg Hands
- Hansard - -

The continuity programme is all about rolling over the deals that are there. I do not believe that there was any diminution of human rights provisions in the agreement with Egypt, or certainly of the effect of those provisions. We have a regular dialogue with Egypt on these issues. There is an extremely difficult internal security situation in Egypt, which the hon. Lady will know has affected British nationals directly as well. It is careful to get that balance right in all our dialogues with countries such as Egypt.

Alan Mak Portrait Alan Mak (Havant) (Con)
- Hansard - - - Excerpts

If she will make a statement on her departmental responsibilities.

--- Later in debate ---
Stuart C McDonald Portrait Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP) [V]
- Hansard - - - Excerpts

Yesterday, the Prime Minister claimed that his trade deal allowed UK musicians and performers to “go play” in EU countries for 90 out of 180 days, but that is total nonsense unless they are supposed to play for free. What will the Department for International Trade do to fix the tangle of visas and permits that musicians, artists and performers have been landed in?

Greg Hands Portrait The Minister for Trade Policy (Greg Hands)
- Hansard - -

This has attracted some attention. I would remind the hon. Member that he voted for no deal on 30 December. I would also refer him to the article written by the Secretary of State for Digital, Culture, Media and Sport in the New Musical Express this week, in which he said that the EU offer on this unfortunately fell short of the UK’s proposals and would not have enabled touring by musicians. He said:

“The UK pushed for a more ambitious agreement with the EU on the temporary movement of business travellers, which would have covered musicians and others, but our proposals were rejected by the EU”.

Mark Fletcher Portrait Mark Fletcher (Bolsover) (Con)
- Hansard - - - Excerpts

Now that we have delivered on all our Brexit promises, exporters across the Bolsover constituency are keen to take advantage of new opportunities and grow in new markets. So will my hon. Friend tell me what opportunities will come from new and better trade deals with Mexico and Canada for businesses across the midlands?

--- Later in debate ---
Mohammad Yasin Portrait Mohammad Yasin (Bedford) (Lab) [V]
- Hansard - - - Excerpts

Small businesses in my constituency are struggling to cope with the complex bureaucracy regarding all aspects of trade since leaving the EU, from navigating immigration rules to dealing with export paperwork. So does the Secretary of State support the Federation of Small Businesses’ calls for the rapid introduction of vouchers worth £3,000 that small firms can spend on the tech, training and advice needed to get through this huge change to their business practice?

Greg Hands Portrait Greg Hands
- Hansard - -

I thank the hon. Gentleman for his question—he is right to raise issues on behalf of small businesses in his constituency. The Government are in constant dialogue with business representative organisations such as the Federation of Small Businesses, for example at the Brexit business taskforce chaired by the Chancellor of the Duchy of Lancaster. The Government have of course provided an enormous amount of funding to make sure that businesses are ready for the end of the transition period.

Julian Sturdy Portrait Julian Sturdy (York Outer) (Con) [V]
- Hansard - - - Excerpts

Given the imminent return of the amended Trade Bill to the Chamber and the regaining of control over trade negotiations from Brussels after 46 years, does the Minister agree that ratification of new trade agreements should rest with elected representatives in this House, not Government bureaucrats?

Greg Hands Portrait Greg Hands
- Hansard - -

Since we left the EU a year ago, no bureaucrats will ratify our trade agreements. The ratification of future free trade agreements will take place only once this Parliament has had the opportunity to scrutinise the detail of any trade deal and any necessary implementing legislation. We believe that our system of parliamentary scrutiny compares favourably with that of other Westminster-style democracies such as Canada, Australia and New Zealand.

Alex Cunningham Portrait Alex Cunningham (Stockton North) (Lab) [V]
- Hansard - - - Excerpts

We all know the tremendous additional challenges that our businesses face in exporting goods to the EU, nowhere more so than the chemicals industry, which supports thousands of jobs on Teesside. The ideal situation would be for the UK to remain part of the EU REACH—registration, evaluation, authorisation and restriction of chemicals—framework, thus accessing the services of the European Chemicals Agency, but Ministers seem to think differently and that could cost us £1 billion a year. How will the Government protect our chemicals industry going forward?

Greg Hands Portrait Greg Hands
- Hansard - -

Our chemicals industry is extremely important and we are well aware of the issues in the industry with all its trade partners. I remind the hon. Gentleman that the EU deal is the responsibility of the Chancellor of the Duchy of Lancaster, but I am sure that the chemicals industry will make its voice heard at the Brexit business taskforce. The Government stand ready to assist the industry, which, as the hon. Gentleman rightly says, is vital for our future prosperity.

Kevin Hollinrake Portrait Kevin Hollinrake (Thirsk and Malton) (Con) [V]
- Hansard - - - Excerpts

Thirsk and Malton is very lucky to have Karro and Cranswick—pork producers that employ hundreds of people at each of their sites—in the constituency. Their trade has been hit by the 25% tariff applied to exports of pork to the USA. What progress have we made to resolve that?

Ben Everitt Portrait Ben Everitt (Milton Keynes North) (Con)
- Hansard - - - Excerpts

This week, Milton Keynes got yet another Government grant for a 5G piloting scheme. It is great for connectivity in our digital and technical sector. What plans has the Department to grow that sector internationally so that Milton Keynes can lead the world in digital and tech?

Greg Hands Portrait Greg Hands
- Hansard - -

I thank my hon. Friend for his question. We are all well aware of the important role that Milton Keynes plays in technology innovation, electric vehicles and other transport technologies in particular, as well as other areas. That is why the UK is seeking to minimise the barriers to digital trade in particular, going further in the UK-Japan deal. We want to ensure that the UK is at the forefront of global dialogue on policy issues, for example, at the World Trade Organisation.

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

I am suspending the House for three minutes to enable the necessary arrangements for the next business to be made.