(4 years, 8 months ago)
Commons ChamberA free trade agreement with the European Union is our ambition, and we hope that it shares that ambition. Our ambition is also to engage in free trade negotiations, which the Secretary of State is leading on, with the United States, Australia, New Zealand and Japan in the first instance. I can tell the hon. Gentleman and sceptics on the Opposition Benches that the interest in the opportunities for the United Kingdom to engage bilaterally around the world, now that we control our own independent trade policy for the first time in almost 50 years, is almost unquenchable—I think of the conversations we have had in the last six months with the Gulf Co-operation Council, Vietnam, Brazil, Chile, Morocco, Algeria and Commonwealth Trade Ministers. I just hope that the hon. Gentleman’s constituents will welcome the opportunities that we are giving them to trade with the world and enjoy ever increasing prosperity.
Is the collective mind of Government concentrated on ensuring that these deals are shared across the entirety of the United Kingdom?
I am grateful to the hon. Gentleman for that question. The answer is unequivocally yes. We are determined that the entire United Kingdom—all nations and every region of it—will benefit, and I had the pleasure of returning home to Northern Ireland only a couple of weeks ago to talk about those ambitions with the Executive and businesses in Northern Ireland.
(5 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the hon. Member for Hornchurch and Upminster (Julia Lopez) for introducing this debate with so much detail, commitment and interest. Even as all eyes are on the race to become leader of the Conservative party and Prime Minister, our focus must remain where it should be: on formulating and implementing a trade and investment strategy. Whatever one’s take on Brexit, people agree that it creates numerous exciting trading opportunities. I am excited by the idea of Brexit—as I know you and other hon. Members are, Mr Davies—and by the opportunities it will bring. We will gain access to a pool of countries, with which we will decide our own trade deals.
The food and agriculture sector plays a major role in my constituency. I have been consistent and vocal about the worldwide opportunities on offer, but work, effort, commitment and interest must be put in to secure them. Our farmers will be free from the chains of the EU, and able to decide their own future. The fear-mongering associated with the future of farming, post Brexit, has been another attempt by the political élite to avoid implementing the result of the 2016 referendum. The time for that has passed. It is now time to work together and prove that we can, and will, move forward. I am excited for my constituency and its opportunities. It was a great day in our country’s history when our citizens decided that they wanted to remove the EU’s shackles, and displayed their faith in their own abilities, their country’s abilities and free-market economics.
As the hon. Lady said, a free trade agreement with the USA, China or India—all major importers—is an exciting prospect. We are not currently allowed to negotiate such trade deals while we are, unfortunately, still in the EU, but we can look to the future with optimism as we open so many new doors.
Does my hon. Friend agree that it would be to the advantage of the United Kingdom and the EU to reach a mutually advantageous and agreeable free-trade process? The new Prime Minister and his Cabinet must have that as the centrepiece of their strategy for a trade and investment approach once our membership of the EU has ended.
I absolutely believe that. It is time to support the new Prime Minister and that strategy, to look to the future with optimism, commitment and focus, and to ensure that we deliver what is important.
My constituency contains agri-food industries, such as Lakeland Dairies, which has a factory in Newtownards—indeed, it has two factories in Northern Ireland and two in the Republic of Ireland, and it is knocking on eastern doors. The International Trade Secretary was instrumental in securing a substantial contract worth £250 million over five years for milk products. I was also involved with that deal, but the Secretary of State pulled it over the line. We must knock on all doors with our reasonably priced and superior-quality produce. The chief executive officer of Lakeland Dairies, Michael Hanley, is clear that although he, I and others want a deal with the European Union, whatever happens—deal or no deal—Lakeland Dairies will still trade in Northern Ireland, the Republic of Ireland and across the world. In reality, things go on. Life does not stop; the sun does not stop shining. The roof will not fall in, and many things will continue as always.
Strangford is a large rural community with towns in the middle, and together with many dairy farmers I look to the future with both optimism and, in some cases, scepticism. Although I am ecstatic and very happy that farmers will have access to a greater market, we must solve the Republic of Ireland problem, stop the grandstanding of Varadkar and others, and get down to the business of a mutually beneficial deal. As my hon. Friend the Member for East Londonderry (Mr Campbell) said, it is in all our interests to work towards that goal, and the quicker a bit of reality creeps in, the better.
The backstop must be removed. I am happy and pleased that both potential leaders of the Conservative party—the future Prime Minister—are committed to the removal of the backstop, which the Democrat Unionist party welcomes. The Good Friday agreement is never in danger—people throw that cherry into the mix all the time, but the agreement is never under pressure. There is no need for a hard border. Interestingly, Varadkar has said there is no need for a hard border, as has the EU and the United Kingdom of Great Britain and Northern Ireland. We are all agreed that there is no need for a hard border, so why bother having one? There are technological ways to solve the problems if there is the willingness to do so. It is now time to get behind the new Prime Minister and leader of the Conservative party, and support the process to get that deal. Perhaps the cold reality that comes with new leadership, new commitment and new fervour will take us over the line.
With a US-UK trade deal in the mix for when we eventually leave the EU, farmers in Northern Ireland and the United Kingdom should look ahead with optimism because such a deal may include dairy imports. Agri-food businesses in my area already export to the USA, and that can be expanded if the right links are created, as the Minister is doing. A trade deal with China—the largest food importer in the world—will place our farmers in a position of optimism and opportunity. China has a population of 1.4 billion and its food imports have increased from approximately $6 million in 2005 to $300 million in 2015. Such levels of food imports are likely to continue as the country’s economy grows, and that is a potential market for us to build on. Such links offer our farmers an exciting opportunity to export their high-quality products to China if a trade agreement is reached. Again, we need optimism and to look forward in the correct way.
It is important that Northern Ireland’s interests are protected in any future free trade negotiations, and we must reach a compromise on the future of trade on the island of Ireland between Northern Ireland and the Republic of Ireland, and between the United Kingdom and the Republic of Ireland. We must ensure that the Union is not weakened—that must never be allowed to happen—and that our economy has access to the pool of opportunities that Brexit creates, rather than being cut off from the rest of the UK and trapped in the customs union. The Irish backstop must go, for the sake of both Northern Ireland and the Republic of Ireland, as that will suit both countries.
Trade must continue as normal between Northern Ireland and the Republic of Ireland—I believe anything other than that is suicide for the Republic of Ireland, which relies on the UK through Northern Ireland as a solid trading partner. None of that should be new to anyone in the Chamber, as such issues have been debated clearly for the past two and a half years. I seek to renew focus and remind people of where we should be headed, rather than become distracted by all that swirls around us.
In conclusion, if we are as focused and hardworking as businesses throughout the United Kingdom of Great Britain and Northern Ireland can be, we cannot help but succeed. If we continue to be distracted, the blame will lie not at the feet of those who voted leave—the majority of people in the United Kingdom of Great Britain and Northern Ireland—but with those in this place who refused to honour that referendum result and work towards the best leave deal possible. I thank again the hon. Member for Hornchurch and Upminster for securing this debate, and I look forward to hearing contributions from other hon. Members and the Minister’s response.
(6 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend is absolutely right. I was going to mention education and universities, but he has done it, so I can relax on that. We can do something strong. Queen’s University in Belfast and Ulster University can be part of that partnership. Maybe the Government should be looking at how they do that with other universities across the United Kingdom of Great Britain and Northern Ireland.
Israelis see the UK as an ideal country to trade with. They are attracted by our culture, language and institutions, and by our honesty, integrity and business acumen. Those are all qualities that business people like to see, and we have them in abundance in the United Kingdom. I welcome the Duke of Cambridge’s historic visit to Israel last week and share the view that it was fitting for him to meet Israeli high-tech companies ReWalk and AlgoBrix, which have developed innovative medical solutions. They epitomise the start-up nation and we want to be part of that, as other hon. Members have said. I am also glad that he took the opportunity to visit the Palestinian territories, because it is good to reach out to both sides and try to bridge that gap. He did that in such a good way.
In the light of the Duke’s visit to Israel last week, during which he saw a showcase of Israeli technology at the British embassy in Tel Aviv, what steps are the Government taking to increase the sharing of innovation between our two countries? There are many things that we can do, and I believe that this is one of them. I welcome the growing collaboration between our two countries and recent agreements signed to increase co-operation in the field of science. How is the Minister working to strengthen that relationship?
Israel has become renowned for its high-tech capability and innovative technological solutions. The UK and Israel share a close relationship in research and development, yet there is still more that can be done. What are the Government doing to unlock that potential? The UK and Israel have a strong and growing partnership in R&D with British companies such as Barclays and HSBC—the latter launched a cyber-hub in Tel Aviv last September—but we still lie behind Canada, China and the US in utilising Israeli expertise. Does the Minister share my concern, and that of many other Members, that further co-operation on R&D should be a priority? Whether it is pre-Brexit or post-Brexit, let us get ourselves into a position in which we can take advantage of the opportunities to create jobs.
Does my hon. Friend agree that the converse of what he has just eloquently described is the regrettable and reprehensible actions by a small number of people who advocate disincentives and actions against Israeli businesses, which disadvantages not only Israelis but Palestinians?
My hon. Friend succinctly reminds us of the negatives of not supporting Israel-UK trade links, which can achieve much. There are opportunities, jobs, expertise and a chance to move forward.
In conclusion, Israel spends 4.27% of GDP on R&D, which is more than any other developed country. There remains large untapped potential in the form of British investment in R&D in Israel. Does the Minister agree that there is more to do in this area, and how will his Department ensure that happens?
(6 years, 4 months ago)
Commons ChamberI am very sorry to say, Mr Speaker, that I am not entirely sure that I understand the question, but I would like to correct one element of something I just said. Of course, the Opposition did not vote against both trade deals—they abstained on the Japan trade deal. I am afraid that I simply do not understand the question. All I know is that the trade deals that were voted on and passed by the House this week had elements that contained many of the protections that the Opposition have said that they want. There are chapters on labour rights and environmental standards, and there is protection for our public services, particularly the national health service, which, as I told the House on Tuesday, is protected from challenge by those agreements.
What advice does the Minister have for small and medium-sized enterprises that want to do business both inside the EU and outside it, post 29 March next year, in terms of their geographic location? Does he think it would be a good idea for businesses to be based in Northern Ireland, where they can have the best of both worlds?
A characteristic of any trade deal that we wish to do with the EU will obviously be to look at the interests of small businesses, which are the lifeblood of our economy. The EU-Japan trade deal that we voted for in the House on Tuesday specifically opened up the markets of Japan to smaller and medium-sized producers in the car manufacturing sector. I hope that those sorts of measures will be reflected in any deal that we do with the EU.
(6 years, 9 months ago)
Commons ChamberI 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.
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?
(7 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I will illustrate that point in some of my comments about Northern Ireland and how our economy, productivity and employment grow. In Northern Ireland, we have a skilled, dedicated workforce. Regardless of our place inside and outside of Europe, the fact remains that people are interested in investing in Northern Ireland and across the United Kingdom. The fact that we are world-renowned for our research, our cyber-technology and our skilled workforce means that we can attract the investment that we so need. We are already playing above our level in Northern Ireland. We lead the world with some of the technology we have developed, and some of that skill can be found in the constituency of my hon. Friend the Member for East Londonderry (Mr Campbell).
According to the figures, foreign direct investment projects into Northern Ireland were down 62% to just 15 in 2015, but at the time, the economic development agency Invest Northern Ireland claimed that the figures did not reflect the full picture. Invest NI said that the full picture is that there were 35 direct investment projects in that tax year, but because those projects had not started, they were not part of the figures. The original figures were wrong and gave the wrong indication. The new figures show that the investment, new jobs and new projects are significant.
No matter the predictions that come our way from economists one way or the other, our duty is to promote our abilities and industries and attract that inward investment. I seek to do that, and my colleagues and Members from all parties travel worldwide seeking to do that. Many from Northern Ireland do the same.
Does my hon. Friend agree that as we reach the era of the post-Brexit vote, where there will hopefully be less uncertainty, some of the regions of the UK—particularly Northern Ireland—will need to be able to avail themselves of the advantages that access into the EU as well as access beyond the EU provide? That is particularly so with the land border with the Irish Republic.
My hon. Friend concisely puts the issue into perspective. We need to have cognisance of our special relationship with the Republic of Ireland, but we also have to look at the advantages we will have elsewhere across the world. We are most effective when we are attracting investment in partnership with the Department for Business, Energy and Industrial Strategy and other Departments. It is always good to see the Minister in his place, and we look forward to his response to the points we are making. Will he touch upon some of the facts with Northern Ireland as well?
It is useless to brush over the changes that Brexit will bring. There will be changes, but the changes need not be bad. Opportunities exist in the new markets emerging in Asia—opportunities that my constituents, such as Lakeland Dairies and Glastry Farm ice cream, are already making use of. Lakeland Dairies had a meeting with the Minister about those opportunities at the end of July. It is trying to secure another contract for milk products and milk powder in China. We and the Minister are working hard, and we are moving forward. Such companies are successfully casting their net to the middle east, and our local economy is reaping the dividends.
The question we must ask ourselves is whether we are doing all we can to aid companies and support them in their quest to secure jobs and enhance their businesses. On Thursday last week, Glastry Farm ice cream, which is based in my constituency—it is a small firm that started as a farming enterprise, but is now up and running —secured a new contract with Heathrow and another contract in Dubai. It is moving into the middle east, which is real progress for a wee firm from outside Ballyhalbert on the Ards peninsula, and it has been helped by Government policy in this place and by the Minister responsible back in the Northern Ireland Assembly.
We cannot go into panic mode due to the uncertainty of Brexit and the way the Europeans will treat us as they continue—I say this respectfully—in unhelpful mode. We must focus on what can be achieved. We can secure and capitalise on other forms of foreign direct investment. The parliamentary briefing outlines that for UK investment abroad, the EU accounted for 43% of the total UK FDI stock in 2015, compared to 23% for the USA and 34% for all other countries, yet net investment flows from foreign investors into the UK were £21.6 billion in 2015, up from £15 billion in 2014. That shows the trend, success and positivity, and goes back to my comment about the glass being half full. The facts back that up, and that is what we want to say. Inward FDI flows from the United States were £20.1 billion, the highest recorded value since 2011. That is another positive fact. Inward FDI flows from Europe fell, with a disinvestment of £12.1 billion in 2015, compared with a disinvestment of £8 million the year before. Again, that is positivity. Net direct investment earnings generated in the UK by overseas investors were £47.9 billion in 2015, down slightly from £48 billion in 2014. The EU accounted for £18.8 billion of that, and the USA accounted for £17.5 billion.
I am aware that while the figures illustrate the issues, they are not the whole picture. There are a lot of figures out there, and they show me that as per usual we give more to Europe than we get out of it. We need to focus on our relationship with the USA and other trade partners. We need to look towards Asia, Australia, New Zealand, Africa, the middle east and South America, which have potential and possibilities. I have said it before, and I will say it again: the sky will not fall down because we leave Europe. It will not all be darkness and gloom, but it is our job in this Chamber to ensure that we play our part in securing investment from those who wish to invest and can do so. We have the skills, expertise and workforce, and that speaks a great deal more globally than saying we are a member of the EU.
(7 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Yes, I agree that they are a good way of bringing stability. Sometimes Commonwealth countries have been frustrated that rather than talking to them about trade, the Government have simply talked about development, democracy and human rights while entering into trade deals, agreements and contracts with China. One of the best ways to instil stability, democracy and human rights is to have a good trading nation that makes its population richer.
Next month we must also ensure that we do not leave behind Africa, the Caribbean, the Pacific states and the Crown dependencies. We should offer tariff-free and quota-free deals with access to the UK market, and we should pursue deals with South Africa, CARICOM—the Caribbean Community—and the east and west African groupings. Achieving those deals will be complicated and time-consuming—we have seen and heard that trade deals take several years to agree—but the time to start the negotiations is at the Commonwealth Trade Ministers meeting next month, not in 2019 as the Minister’s Department has indicated.
Other practical steps that we need to take include looking at departmental reform to eliminate silos. Trade Ministers should be able to move freely between the Department for International Development, the Foreign and Commonwealth Office, the Department for International Trade and the Home Office. To strike trade deals, we will need to tackle issues such as visa reform, aid and the FCO’s use of soft power; we will also need to use our influence to promote the Commonwealth and all its benefits and trade deals.
I commend the hon. Gentleman for securing the debate. On the subject of the Commonwealth Trade Ministers meeting next month, does he agree that although the EU has been quite insistent on its restrictions on when it will begin discussions and negotiations, no such inhibitions apply to Commonwealth nation states? We should quickly get down to trying to negotiate with our willing partners the type of deals that he has outlined.
I agree wholeheartedly, and I hope the Minister will confirm that approach. The Government said in response to a parliamentary question that we would have to wait until 2019, but I hope that that is not the case. If we are leaving the EU, we should be negotiating with the Commonwealth and should not be as worried about what the EU has to say about it.
The issue of visas is a tricky one. I am sure the Minister is aware that 40 Conservative MPs signed a letter that was published in last week’s Sunday Telegraph asking for simple changes at our border to extend the hand of friendship to the Commonwealth nations. We are not calling for changes in visa restrictions; we are simply asking that border officials acknowledge the importance of the Commonwealth when people arrive here.
Finally, I call on the Minister to consider whether he could publish a White Paper on trade, and specifically on Commonwealth free trade, following the meeting in March. The Government published the last White Paper on trade in 2011. Clearly that was before Brexit, and it was produced under the coalition Government. A new White Paper on Commonwealth trade could set out a road map for Britain’s new relationship with our Commonwealth partners and, crucially, could focus bilateral meetings at CHOGM next year on trade and co-operation.
I hope that such a White Paper can cover, among other issues, what steps the Minister will take to increase the number of trade envoys deployed to Commonwealth countries; which Commonwealth countries the Department has prioritised for trade agreements; which Commonwealth nations have come forward seeking trade agreements post-Brexit; how many Departments’ new trade audits have been set up with Commonwealth countries; and what steps he is taking to improve exports to Commonwealth destinations.
As we have heard, the task is legion, but next month’s meeting is an important rallying call to the Minister and his Department. If Britain is truly back, it is time to demonstrate that the Government accept that the Commonwealth is a key trading partner for this country and that the distance between our nations is no barrier but a natural highway, over which we will see international trade flourish.