Trade Negotiations: Canada and Switzerland
Greg Hands Excerpts(11 months, 2 weeks ago)
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The Minister for Trade Policy (Greg Hands)
The Department for Business and Trade continues to make good progress on its ambitious trade negotiations programme. This statement provides Parliament with an update on the UK’s respective trade negotiations with Canada and Switzerland.
Canada negotiations
The eighth round of UK-Canada free trade agreement (FTA) negotiations began on 27 November and concluded on 1 December. This round was held virtually, across all sessions.
Technical discussions were held across 24 policy areas over 60 separate sessions. They included detailed discussions on treaty text.
Both parties built on the momentum from agreeing in principle UK accession to CPTPP in March 2023. The negotiations continue to reflect our shared ambition to secure a progressive deal which strengthens our existing trading relationship, already worth over £24.8 billion in the year to Q3 2022.
Switzerland Negotiations
The third round of negotiations on a UK-Switzerland enhanced free trade agreement (FTA) took place from 27 November to 14 December.
During the round, which was held virtually, UK officials held technical, text-based discussions with their Swiss counterparts in a number of areas, such as procurement, investment, small-medium enterprises, sanitary and phytosanitary (SPS) measures and animal welfare.
UK negotiators were able to make significant progress and agree draft treaty text across a number of areas. There were good discussions on services and investment, where the UK is working with the Swiss to provide long-term certainty and greater market access for UK-Swiss service suppliers, boosting bilateral trade in this area worth £23.7 billion.
In other chapters, negotiators used this round to greater explore differences to approaches and consider ways to address them, while delivering against negotiation objectives.
Overall, these discussions reflect the UK and Switzerland’s shared ambition to agree a modern, comprehensive agreement, building on the current UK-Swiss trade relationship.
Conversations are set to continue into round 4, scheduled for spring 2024, where the UK side expects to continue productive discussions.
Summary
The Government remain clear that any deal we sign, including with Canada and Switzerland will be in the best interests of the British people and the UK economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the NHS, and the services it provides are not on the table. His Majesty’s Government will continue to work closely with Canada and Switzerland to ensure negotiations proceed at pace and take place on terms that are right for the UK.
The Government will continue to keep Parliament updated as these negotiations progress.
[HCWS129]
Arms Export Licences: Israel
Greg Hands Excerpts(11 months, 2 weeks ago)
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The Minister for Trade Policy (Greg Hands)
It is a pleasure to serve under you this afternoon, Sir Christopher. I thank the hon. Member for Coventry South (Zarah Sultana) for bringing the debate to this Chamber. I also thank other Members for their contributions. I will respond to as many of their points as I can in the time available.
It may be helpful first to outline the Government’s approach to this issue. I think we have all been deeply moved by the scenes we have seen from Israel and Gaza over the past nine weeks or so. At the same time, we must not forget how this conflict started. To do so would be a great injustice to the 1,200 victims of the Hamas terrorist attack on 7 October. It was a massacre that rightly appalled the world. Barbarism, brutality and inhumanity are not words that we should use lightly but, as more detail and witness accounts of the events of that day emerge, it is increasingly clear that they are apt descriptors of Hamas’s wicked acts.
Terrorism of this magnitude must be defeated. Israel has a clear right to defend itself, while of course complying with international law. None the less, it is only right that we continue to engage with Israel to ensure that its campaign is targeted against Hamas combatants and military infrastructure. The Prime Minister and the Foreign Secretary stand alongside the international community in calling on Israel to ensure that its actions in defence are necessary and proportionate.
Richard Burgon (Leeds East) (Lab)
The Minister will have heard hon. Members detail the horrors rained down upon Gaza in the past few weeks, but can he answer this: how many of the people who have been killed in Gaza were killed by arms supplied by Britain and how many of the tens of thousands of bombs that have rained down on Gaza were supplied by Britain or dropped from planes with parts provided by Britain? If the Minister says that he cannot answer those questions, that itself surely reveals why we need to suspend arms sales to Israel.
Greg Hands
It is not for me as a Minister in the Department for Business and Trade to give a commentary on deaths or destruction, up-to-date figures on Gaza or those kind of things. That is rightly a matter for the Foreign Office. I think that Foreign Office questions was today, which is when the hon. Member could have availed himself of the opportunity to ask exactly those questions.
We urge all parties to ensure that aid continues to enter Gaza, to end settler violence and to work with international bodies such as the UN and the International Committee of the Red Cross.
Richard Foord
The hon. Member for Leeds East (Richard Burgon) has asked about the number of deaths that can be linked to UK arms sales. Does the fact that there is not a Minister who can talk to this subject, which concerns four Departments, point to the fact that the Committees on Arms Export Controls are not functioning as they should?
Greg Hands
I thank the hon. Member for that; I heard his point earlier about the Committees. Of course, the Government strongly supports good parliamentary scrutiny of our defence export systems. However, my understanding is that, since the machinery of government change back in February, it has not been possible for the Committees to meet since, I think, March. That, and the organisation of the scrutiny of the Government, is most principally a matter for Parliament. The Government stand strongly in support of the scrutiny of defence exports. We have always been supportive of there being such a regime.
Greg Hands
I am going to make a little progress.
We heard points about the situation on the ground from the hon. Members for Coventry South, for Birmingham, Hall Green (Tahir Ali), for Nottingham East (Nadia Whittome) and for East Lothian (Kenny MacAskill), and many others. The Foreign Secretary has been clear that Israel’s actions must comply with international humanitarian law and that it must take every step possible to minimise harm towards civilians.
Zarah Sultana
The Minister referenced the Government repeatedly saying that Israel must conform to international law. What assessment have the Government made of Israel’s compliance and conformity with international law? Has any assessment been made? In light of Israel’s actions, which consist of crimes against humanity, and which are not consistent with our arms export criteria, what will the Government do? These things are not matching up.
Greg Hands
Obviously we are monitoring the situation in Israel and the Occupied Palestinian Territories very closely and we will take any action that the Government consider appropriate as the situation develops. The hon. Lady mentioned the Export Control Joint Unit. The ECJU has in place an established process for responding, at pace, to changing conditions in a country where the UK has previously granted export licences and where those licences remain extant. That situation is under constant review. The fact remains, however, that Hamas could end this conflict today, stopping the suffering of everybody, including the Palestinian people whom it continues to endanger.
I will now explore some of the points raised in this debate in greater depth. First, it is correct that the UK’s defence businesses have a trading relationship with Israel. I welcome the official Opposition’s support for that, for our defence contractors and for our defence exports industry—the hon. Member for Caerphilly (Wayne David) rightly pointed that out, and I think that was a helpful development from the current generation of Labour Front Benchers. We should, however, put that trading relationship in perspective. In fact, our military exports to Israel are relatively small, representing just 0.02% of Israel’s military imports overall. The £42 million figure, quoted by the hon. Member for Coventry South and the right hon. Member for Islington North (Jeremy Corbyn), was released by the Secretary of State for Defence. We stand by that figure; it is from 114 standard individual licences, and the total, accumulated from those licences, is indeed £42 million.
As Members may be aware, a company wanting to export military or dual-use goods must apply for a licence from the Government. The applications for those licences are assessed on a case-by-case basis against the strategic export licensing criteria—a system that is among the most rigorous and transparent in the world, and which provides a thorough risk assessment—
Several hon. Members rose—
Greg Hands
I am going to make a bit more progress. I have a lot of points to respond to.
The right hon. Member for East Ham (Sir Stephen Timms) is no longer in his seat, but you can see that work in practice. It is a searchable database, with data being released every quarter. The UK is actually at the forefront of providing transparency in our defence export and dual-use licences. These reflect—
Several hon. Members rose—
Greg Hands
I am going to make some more progress.
Those reflect, among other things, the UK’s obligations under international law and the potential for the goods to be used to commit violations of international humanitarian law. The final decision on a licence lies with the Secretary of State for Business and Trade, who takes advice from officials in the ECJU. The ECJU is a combined unit—it has already been referred to. It is made up of subject matter experts and officials from the Department for Business and Trade, the Foreign, Commonwealth and Development Office and the Ministry of Defence. It examines every application in great detail. The process requires the examination of a range of factors, including the political and security conditions in the destination country and the nature of the equipment to be exported. The ECJU comes to its conclusion by consulting both its UK experts and those in overseas posts.
Several hon. Members rose—
Greg Hands
I am going to make a bit more progress to respond to some of the points that have been made.
The ECJU also takes into account reports from non-governmental organisations, the media and others.
I must point out that the Government take the principles of responsible export control, which are set out in the strategic export licensing criteria, incredibly seriously. We can, and do, respond quickly and flexibly to change our fluid international circumstances, with all licences kept under careful and continual review as a standard.
Apsana Begum
I thank the Minister for giving way. The Government set their own precedent for pausing export licences in response to reports that the criteria might have been breached. In 2019, the Foreign Secretary did that; they suspended arms exports to NATO-allied Turkey following its invasion of Syria. Why can this Government not do the same now?
Greg Hands
The hon. Lady raises the exact point I am coming on to, which is that the system is designed so that a change in circumstances, with a proper assessment, can lead to a change in policy. She mentioned Turkey, but it has also happened in relation to Russia, Burma, Afghanistan and other countries. That is exactly why the policy is in place. We must be able to respond quickly and flexibly to changing circumstances.
Mr Jonathan Lord (Woking) (Con)
My right hon. Friend makes a good point that Hamas could solve this by removing themselves from their disastrous control of Gaza. However, does he agree that if there are war crimes on any scale, arms sales should cease immediately and there should be a full and immediate ceasefire?
Greg Hands
I thank my hon. Friend for his intervention. Of course, we have set out in the criteria for the licences what the UK Government policy and approach would be. If he has information in that regard, I am sure he will share that with the Foreign Secretary, the Secretary of State for Defence and us at DBT, and we would be happy to have a look at it. We take our obligations in this space exceptionally seriously. As I have shown before, we have acted to change policy in relation to changing circumstances on the ground.
I will move forward to deal with some of the points raised in the debate. I should add that the Foreign, Commonwealth and Development Office advises DBT on the situation in-country and the risks posed with respect to the UK’s export control responsibility.
Greg Hands
No; I will respond to the points already raised.
DBT then decides whether to amend, suspend or revoke any relevant licence, or to refuse new applications for licences. The private Member’s Bill proposed by the hon. Member for Coventry South, if I have understood it correctly, seeks to do exactly that, but it can already happen. I would also say in response to the point raised by the hon. Lady that the Foreign Secretary announced the doubling of aid from £30 million to £60 million, which is a tripling overall. My hon. Friend the Member for Bassetlaw (Brendan Clarke-Smith) made a strong defence of Israel’s right to self-defence and our wider co-operation with Israel. He and the hon. Member for Strangford (Jim Shannon) asked me to restate our commitment to Israel, which I do.
The right hon. Member for Hayes and Harlington (John McDonnell) had some praise for Lord Cameron. We have all performed some gymnastics over the years, but it was good to hear that praise from him. I have not personally seen the letter that he referred to, but our officials in the ECJU and the relevant Ministers engage with those groups all the time. In answer to the suggestion made by him and the hon. Member for Bedford (Mohammad Yasin), we continue to monitor the situation in Israel and the Occupied Palestinian Territories very closely, and will take any action that we consider appropriate.
John McDonnell
This is a simple request. There are specific questions in that letter from War on Want and the other agencies. Could the Minister write to us on the detail of the Government’s responses?
Greg Hands
I am happy to find that letter and see whether there has been a response. As a matter of course, we at DBT respond to letters from non-governmental organisations. I will find out whether a response has already been sent. [Interruption.] If it is appropriate; I am not sure whether it was private correspondence. I might have to find the original letter, but I will make sure that it is responded to.
The hon. Member for Poplar and Limehouse (Apsana Begum) rightly highlighted the suffering of the civilian populations in Gaza, which is of course under Hamas control. The hon. Member for Tiverton and Honiton (Richard Foord) raised a point about re-establishing the Committees; I think I have already answered that. He claimed that there were some tough Liberal Democrat policies in this space, but when the Liberal Democrats ran this Department for five years in the coalition, I do not recall those tough policies actually being implemented.
Greg Hands
No; I am going to finish. I have already taken an intervention from the hon. Gentleman.
The hon. Member for East Lothian asked a question about medical supplies. As I understand it, those are defibrillators and boxes for blood supplies—pure medical supplies—to Israel, but he is welcome to ask further questions if he needs more detail on that. To respond to the hon. Member for Birmingham, Hall Green, our position is to be supportive of Israel, not due to defence exports—which, as I have pointed out, are a small quantity from this country—but due to our support for Israel’s right to self-defend.
Finally, in the position of the hon. Member for Caerphilly, I did not detect any real difference from mine, so I welcome the official Opposition’s support for the UK defence industry. He said it is world leading, and I agree; he asked that we apply export criteria vigorously and robustly, and that is exactly what we do.
Finally, let me end by saying that our hearts go out to everybody affected by the conflict in Israel and Gaza.
Motion lapsed (Standing Order No. 10(6)).
Oral Answers to Questions
Greg Hands Excerpts(12 months ago)
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Mohammad Yasin (Bedford) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s export support for SMEs includes the export support service; the export academy; more than 400 export champions; our network of nearly 200 trade advisers; and support provided around the world through the international market service. Just last week, my noble Friend the Minister with responsibility for exports announced that UK Export Finance is introducing more flexible fast-track financing for SMEs, making it easier than ever for UK firms to sell into international markets.
Ashley Dalton
Last week, I welcomed the Duke of Gloucester to my constituency to award local SME GaraDry the King’s award for enterprise for its innovation in international trade. How can such businesses have confidence in the Government’s support for SMEs when Britain’s export growth is among the worst of the G7 economies and is forecast to be falling?
Greg Hands
I certainly welcome the royal visit that the hon. Lady had in her constituency; it is always fantastic to see that support, particularly for exporters. However, I think she is a bit off on the data. When we look at export data, we see that we had £877 billion-worth of exports in the 12 months to the end of September 2023. We are heading towards the £1 trillion export target, and that figure is up by almost £200 billion—or 29%—on the figure from five years ago, which was before Brexit.
Mohammad Yasin
In 2021, the Government launched a rebranded trade show programme pilot to great fanfare, but between November 2021 and March 2022 only two businesses in the UK were funded under the programme. We now hear that the scheme has been shelved. Will the Minister explain what has happened to that initiative, which has launched a number of household British fashion brands abroad and which served as a vital gateway under the last Labour Government for SMEs to access new markets?
Greg Hands
The last Labour Government were, of course, in office rather a long time ago. It is not always incumbent on successive Governments more than a decade later to keep previous Labour Government schemes going. The scheme to which the hon. Gentleman refers was a pilot, which did not yield the successes that we might have hoped. However, I will take no criticism from him and the Labour party for the support we are giving to exporters. We are spending £200 million over this spending review period to support SMEs to grow and succeed internationally, and we have a record to be commended.
Theo Clarke (Stafford) (Con)
As the Prime Minister’s trade envoy to Kenya, may I welcome the fact that this week the Government held the successful global investment summit and are taking steps to help British businesses to export? I recently returned from Nairobi, where I visited some of the UK’s flagship investments, including in infrastructure and clean energy. Will the Minister provide an update on the Africa investment summit next year? I also ask that the UK continues to bang the drum for British businesses to export to Kenya, the gateway to east Africa.
Greg Hands
First, let me commend my hon. Friend for winning “Speech of the Year” at last night’s The Spectator parliamentary awards. She has continued her fine form today. She does an amazing job for the country as the Prime Minister’s trade envoy to Kenya, and her recent visit in September was a big success, particularly on the infrastructure side of things. She has already referred to railways and other infrastructure. She mentioned the UK-Africa investment summit, which will take place in London next year and will further our engagement with Kenya and other African countries, fostering modern partnerships in trade and investment in areas such as resilient infrastructure, clean technologies and renewable energy.
Alun Cairns (Vale of Glamorgan) (Con)
I welcome my right hon. Friend back to his post. I pay tribute to him and to the Secretary of State for the international trade deals that they have struck during their period in office. The UK has strategic relationships with a number of Gulf nations. What progress is being made on a free trade agreement with the Gulf Cooperation Council? If it is more challenging to strike a deal across all nations, what bilateral trade agreements can we explore in order to exploit the opportunity for those nations to invest significantly in the UK?
Greg Hands
I am excited by the prospect of the deal with the Gulf Cooperation Council, with which the Secretary of State is very much engaged, and I am looking forward to being re-engaged with it. It is a huge opportunity for us, as the latest figures show that total trade between the UK and the Gulf is worth more than £60 billion. We are looking forward to moving the negotiation forward and getting a very good deal for the UK.
Gareth Thomas (Harrow West) (Lab/Co-op)
I welcome the Minister back to the Department for Business and Trade, and I look forward to helping him hopefully to do better this time around. According to the International Monetary Fund, over the past decade British food and drink exports, including from SMEs, rose by just 3%, which was the lowest growth of any G7 country. The US, Canada, Italy and Japan all saw their exports grow by between 30% and 95%. Government Ministers will not negotiate a veterinary agreement with the EU, which would help, they have cut funding for trade missions, and now the Secretary of State has cut funding to go to trade shows too. Why will Ministers not share our ambitions for Britain to have the fastest export growth rate of any G7 country?
Greg Hands
Of course, the hon. Gentleman and I have been around in these jobs for a while. He was possibly the last Trade Minister under the last Labour Government, so I will not be taking any lectures from him on how to improve UK exports. We have been financing dozens of global trade missions and we are spending £200 million over the spending review period on exports in general. On the export figures, he neglected to mention services exports, which totalled £463 billion in the 12 months to September 2023. That is a huge increase of 42% on our performance in 2018, before Brexit.
Daniel Zeichner (Cambridge) (Lab)
John McDonnell (Hayes and Harlington) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
We are working at pace to ratify the CPTPP, which we hope to bring into force next year. We are the first European country to join the CPTPP, and I know how powerful it will be for British businesses and consumers, which is why this Government are progressing legislation as quickly as possible, with Second Reading of the Bill having taken place in the other place on 21 November. We are already playing our part as the second largest economy in the agreement. The Secretary of State met other CPTPP Ministers two weeks ago in San Francisco to discuss the blossoming future of the agreement.
John McDonnell
Across the House, over a period of time, Members working with organisations such as the Trade Justice Movement have expressed concern about the inclusion of investor-state dispute settlement procedures within treaties, because they restrict our own country’s ability to regulate. I raised that issue in September and suggested that, as the Government have done with Australia and New Zealand, we agree in a separate letter that the settlement procedure will not be included in this treaty. I was then told—rather curtly—that it was too late. Actually, it is not too late. There is the potential to do a side letter, as we have with other countries, to exclude an investor-state dispute settlement procedure. In the light of the Government’s negotiating remit for the free trade agreement with Canada, the Government are specifically seeking to exclude that procedure. I wonder whether the Government might think again.
Greg Hands
It is good to be sparring with the right hon. Gentleman again from the Dispatch Box—we have both had a few ups and downs since we last went head to head. CPTPP does not compromise the UK’s right to regulate at all; it expressly preserves the rights of states to regulate proportionately, fairly and in the public interest. It is worth reminding the House that the UK has never lost an ISDS case. Such procedures actually help to protect UK investments abroad. British investments in Canada totalled £40.6 billion in 2020-21, which will be covered for the first time by these protections. As I say, if we cannot trust Canada in international affairs, who can we trust? I assure the right hon. Gentleman that the deal cannot be ratified until the legislation has been approved by Parliament and the deal has completed the Constitutional Reform and Governance Act process.
Andrew Selous (South West Bedfordshire) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s published export strategy focuses on addressing the challenges that UK businesses face when exporting. The Government continue to promote exporting, and to support companies through our network of international trade advisers, sector specialists, and the export support service. All our services can be accessed on great.gov.uk.
Andrew Selous
In my constituency I have companies such as EyeOL, Lindal Valve, Peli Biothermal, Friction Marketing, Signature Flatbreads and 198 smaller businesses, all of which export globally. The smaller businesses export through Amazon. That is fantastic, as there is evidence that businesses that export can pay their staff more, but what is the best way to get businesses that have not yet realised that the world is their marketplace exporting not just to Europe but around the whole world?
Greg Hands
I commend my hon. Friend for being a long-standing champion of his constituency exporters. As the Prime Minister’s trade envoy to South Africa and Mauritius, he knows only too well the importance of exports. The Government’s export strategy is clear. We have a clear programme to assist small and medium-sized enterprises, particularly first-time exporters. All of our services can be accessed via great.gov.uk, and we have a network of international trade advisers locally for Bedfordshire who are able to help as well.
Priti Patel (Witham) (Con)
Mr David Davis (Haltemprice and Howden) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
I am pleased to confirm that advanced talks with India are ongoing. We are in round 13, with discussions currently focused on goods, market access, services and investment. We remain clear that we will not sign until we have a free trade agreement that fully benefits the UK people and economy. We are focused on the deal, not the date.
Mr Davis
Total trade in goods and services between the UK and India was £36.3 billion in the year to March 2023. An FTA with the fifth-largest economy in the world, and one of the fastest-growing, would be a massive boost to the UK economy and put UK businesses at the front of the queue to supply India’s growing middle class, which is expected to be a quarter of a billion consumers by 2050. This is an important exploitation of Brexit, so will the Minister do all he can to bring this deal over the line as soon as possible for Britain?
Greg Hands
My right hon. Friend of course has a lot of experience in complex negotiations and I can say that we, like him, will not be satisfied until we have the right deal. He is right that a deal with India would be a big step forward in the UK’s post-Brexit strategy to refocus UK trade on the Indo-Pacific region, which represents one third of global GDP. My negotiators and I continue to work at pace and we will negotiate until we have secured the right deal. I warmly welcome his interest in doing more trade with India.
Tonia Antoniazzi (Gower) (Lab)
Richard Thomson (Gordon) (SNP)
Import tariffs on egg products allow us to recognise the higher cost of UK egg production because of safety, welfare and environmental considerations. Can the Secretary of State give an assurance that eggs and egg products will be afforded sensitive product status by the UK in future free trade agreement negotiations, and that import tariffs will remain in place on those products?
The Minister of State, Department for Business and Trade (Greg Hands)
It is difficult to comment on tariffs in live negotiations, but I would say two things to the hon. Gentleman: first, this country imports very few eggs from abroad, and secondly, anything that happens with imported eggs would not change our standards on food imports, food safety and animal welfare in this country.
John Penrose (Weston-super-Mare) (Con)
Marco Longhi (Dudley North) (Con)
As the Prime Minister’s trade envoy to Brazil, I know that the best way of supporting exports from my Dudley businesses is to remove barriers to trade. That is why I was absolutely delighted when both our countries signed a double taxation agreement, in good faith and to the highest possible standards. There appear to be complications in Brazil at the moment with ratifying that agreement through Congress, as we have ratified it through our Parliament. What more can Ministers—the Chancellor of the Exchequer, perhaps—do to try to persuade Brazil that it is indeed a very good deal for itself as well?
Greg Hands
First, I praise my hon. Friend for the amazing job he does as the Prime Minister’s trade envoy to Brazil. Partly due to his efforts, UK-Brazil trade has increased by 33% in the past year alone, so we are doing a very good job there. The UK-Brazil double taxation agreement was passed into UK law in June, and is estimated to be worth hundreds of millions of pounds to the UK. I hope that Brazil ratifies the agreement soon: it is very much in its own interests as well. As my hon. Friend knows, the Chancellor has made very strong representations to that effect, and we look forward to strengthening our trade relationship at the next UK-Brazil joint economic and trade committee next year.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
Mr Laurence Robertson (Tewkesbury) (Con)
May I ask the Trade Minister, whom I welcome back to his position, what efforts the Government are making to raise awareness of the developing countries trading scheme, particularly among African countries? What encouragement is he giving those countries to take advantage of that scheme, which would benefit them and us?
Greg Hands
Again, we have almost a full turnout of the Prime Minister’s trade envoys in the House this morning, and I commend my hon. Friend for the work he does as the Prime Minister’s trade envoy not just to one country, but to three—Angola, Zambia and Ethiopia. He rightly takes a strong interest in the UK’s forward-leaning and exemplary developing countries trading scheme. The scheme was launched on 19 June by my predecessor, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), who is now the Financial Secretary to the Treasury, and provides duty-free or nearly duty-free access to goods to 37 African countries. The scheme was launched to significant media attention in Ethiopia, and there was a series of events in more than 10 countries.
I agree with my hon. Friend the Member for Tewkesbury (Mr Robertson): the onus is on all of us in this House to continue to extol the virtues and the benefits of the UK’s developing countries trade scheme. We have taken the EU scheme and gone significantly further, making it more generous for developing countries. We should all be united in extolling the virtues of the UK’s scheme, and of the brilliant job the UK is doing to promote goods access to developing countries.
Joanna Cherry (Edinburgh South West) (SNP)
Republic of Korea Trade Negotiations: Launch
Greg Hands Excerpts(1 year ago)
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The Minister of State, Department for Business and Trade (Greg Hands)
Today the Department for Business and Trade will launch negotiations for an upgraded free trade agreement (FTA) with the Republic of Korea (RoK), with the first round of negotiations to be held in Seoul in January.
In line with the Government’s commitments to transparency and scrutiny, more information on these negotiations will be published and placed in the Libraries of both Houses. This will include:
The strategic case for an upgraded UK-RoK trade agreement.
Our objectives for the negotiations.
A scoping assessment, providing a preliminary economic assessment of the potential impact of the agreement.
A summary of the responses to the call for input on trade with the RoK, held between December 2022 and February 2023. This took views from consumers, businesses, and other interested stakeholders across the UK on their priorities for upgrading our existing trading relationship with the RoK.
The RoK is an important trading partner in the Indo- Pacific region. Our trade relationship with the RoK has grown substantially since 2011, from £7.4 billion to £18.3 billion in 2022. The RoK is now the 13th largest economy in the world and the UK’s 21st largest trading partner. The RoK’s import market is expected to grow by 45% by 2035, to and have around 45 million middle-class consumers. This projected growth has the potential to drive further demand for world-class UK goods and services. This, therefore, is an opportune moment to ensure our trade agreement with the RoK is best tailored to the needs of the UK and delivering for our economy.
Our existing agreement came into effect in 2021 and enabled trade continuity between the UK and the RoK following the UK’s withdrawal from the EU. It replicates the provisions outlined in the 2011 EU-RoK FTA. Our current agreement is one of the deepest FTAs that the RoK has signed to date and provides a strong platform for UK companies to access the RoK market. As part of securing and future proofing our trading relationship with the RoK, there are opportunities to maximise the number of UK businesses benefiting from this platform.
These negotiations provide an opportunity to secure simpler rules of origin which reflect UK industry requirements. Rules that consider existing and future supply chains, and are supported by predictable administrative arrangements, will help support the number of UK businesses accessing preferential tariffs.
In 2021, around 6,700 UK businesses exported goods to the RoK, of which 85% were small and medium enterprises (SMEs). An updated FTA could also further support SME trade with the RoK by streamlining existing complex arrangements, simplifying and digitalising customs procedures, and ensuring SMEs can access the wider benefits of a new FTA.
Since the current UK-RoK FTA was negotiated, trade policy has advanced in several areas. Perhaps most importantly, the existing agreement lacks comprehensive digital provisions. Both the UK and the RoK have previously negotiated world-class digital trade commitments with other trading partners, and this is an area of great potential for negotiations. Digital trade is rapidly becoming dominant, with 79% of our services trade with the RoK now delivered digitally. As a global services superpower, seizing opportunities in this area is a key part of further enhancing the UK’s prosperity.
Enhancing the UK-RoK FTA can also support the broader UK-RoK relationship and ensure it continues to thrive in the future, building on the 140 years of diplomatic relations we have enjoyed. Through these negotiations, we can take further steps to bolster our ongoing co-operation in areas such as energy and supply chains to anticipate and mitigate against future economic shocks.
In all of our trade negotiations, we will not compromise on our high environmental protection, animal welfare and food safety standards. Protecting the NHS is a fundamental principle of our trade policy; the NHS, the price it pays for medicines and its services are not on the table.
The Government will continue to keep Parliament updated as negotiations progress, including close engagement with the relevant parliamentary Committees.
[HCWS56]
UK-Gulf Co-operation Council Free Trade Agreement
Greg Hands Excerpts(1 year ago)
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The Minister of State, Department for Business and Trade (Greg Hands)
The fifth round of negotiations for a free trade agreement between the UK and the Gulf Co-operation Council took place between 5 and 16 November.
The round was hosted by the GCC in Riyadh and held in a hybrid fashion. A number of UK negotiators travelled to Riyadh for in-person discussions, with others attending virtually.
Draft treaty text was advanced across the majority of chapters. Technical discussions were held across 21 policy areas over 40 sessions. Good progress was made and both sides remain committed to securing an ambitious, comprehensive and modern agreement fit for the 21st century.
An FTA will be a substantial economic opportunity and a significant moment in the UK-GCC relationship. Total trade was worth £61.5 billion according to latest figures.
The sixth round of negotiations is expected to be held in the first quarter of 2024.
His Majesty’s Government remain clear that any deal signed will be in the best interests of the British people and the United Kingdom economy.
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