Oral Answers to Questions

Jim Shannon Excerpts

Thursday 3rd March 2022 Commons Chamber

[Anne-Marie Trevelyan]

In 2018, the US imposed section 232 tariffs on global imports of steel and aluminium—a defensive reaction at the time to overcapacity in the global steel market and for its own national security purposes. I was able to get the negotiations back on track. My counterpart Secretary Raimondo and I started negotiations to resolve this issue in mid-January. The negotiations are proceeding at pace. Our officials are working flat out to clear through some of the issues, and we hope very much to be able to bring good announcements here in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her clear commitment to helping the steel sector. In 2021, the UK’s export levels of steel decreased by around £53 million of GDP compared with the previous year. What steps has the Secretary of State taken to ensure that there are no further decreases in 2022 and that small steel businesses, which I have in my constituency, and larger manufacturers are supported in this very uncertain period?

[Anne-Marie Trevelyan]

The hon. Gentleman is right. As post-covid markets and industrial sites pick up, the demand for steel across the world is growing at pace. We want to make sure that the high-quality steel that we make across the UK finds the right markets. On my travels in my role, I speak regularly to those across the world who are doing complex infrastructure work where our high-quality steel products will be an important part of their procurement programmes. We are making good progress. As I say, I work very closely with the BEIS Secretary to ensure that we give the steel industry all the support that it needs.

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[Anne-Marie Trevelyan]

My hon. Friend is a champion for Rother Valley, and he will be pleased to know that our section 232 tariff negotiations are going well. I will be speaking to my opposite number, Secretary Raimondo, in the next few days, and we hope to reach a conclusion very shortly.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, there are 123,000 SMEs. What steps is the Secretary of State taking to ensure they are awarded the same trade opportunities as those in the rest of the United Kingdom, and has the Northern Ireland protocol hindered trade opportunities for SMEs?

[Mike Freer]

I will raise that with my colleagues in the Northern Ireland Office to make sure that they have full access to all the trade support mechanisms that I outlined previously to ensure that all Northern Ireland businesses are fully aware of all the support packages available to them.

India-UK Trade Negotiations

Jim Shannon Excerpts

Tuesday 22nd February 2022 Westminster Hall

[Bob Blackman]

My hon. Friend is a former Trade Minister who knows such things all too well. Those go hand in hand—it is no good having a free trade agreement if we do nothing with it. Indeed, before we get to the free trade agreement, we have to use the opportunities we have in the diaspora here and all the other opportunities for trade.

There is also a great opportunity in the digital sector. The Government of India aim to have a $1 trillion online economy by 2025. We expect internet penetration in India to hit 50%—or 622 million users—so the free trade agreement represents a huge opportunity for businesses in the UK, such as those in tech, artificial intelligence and cyber-security.

A trade agreement will not only build on our relationship but give young Indians the opportunity to come to this country to study—to get their degrees, master’s degrees and PhDs—and to return to India to use the knowledge that they have gained in friendship with the UK and to expand India’s economy even more. We already have excellent educational co-operation, in particular with our higher education facilities, but I want to see us do better. I want us to get back to the position where the UK is where India chooses to send its young people to for study. We have slipped behind in recent years, and myths have developed about caps on numbers. Those are problems to resolve—we know that—but nevertheless we want to return to the position whereby we are the place of choice.

Indian-owned businesses in the UK employ more than 95,000 people. Some 29,200 are employed in the west midlands alone—at least one west midlands MP, the right hon. Member for Walsall South (Valerie Vaz), is present—with 20,700 in London and 10,700 in Wales. Indian investment alone created 15,000 new jobs in the past three years. That demonstrates our opportunities to expand. Furthermore, India’s import requirements are set to be worth £1.38 trillion in 2035, which gives us an opportunity—if we can reduce the high tariff barriers—to utilise our capability to provide a high level of services and good-quality goods.

The tariffs paid on exports to India total £49 million a year. The tariffs for automotive manufacturers stand at 125%, so a trade agreement would obviously benefit them. In 2019, 9,900 UK businesses exported goods to India, 98% of which were small or medium-sized enterprises. That demonstrates that it is not only big companies but small companies that could gain.

We are a global leader on climate action, and the Government are obviously maintaining our high standards of environmental protection within trade agreements. An agreement with India could represent a huge opportunity for our world-leading renewable energy industry. The Government of India recognise the need to transition towards renewable gas and plan to install 175 GW of renewable energy capacity by the end of this year. Our expertise can help them to achieve that and to remove their dependence on coal and other fossil fuels. Although we already have a productive trading relationship, it would also help us to bounce back from the pandemic and to invigorate trade and investment services.

The reality is that our negotiation stance needs to be clear and above board, and we need to be clear that India was the UK’s 15th largest trading partner in 2020. As I have said, trade was worth £23.3 billion and our exports worth £8.5 billion in 2019. That makes India the 10th largest export destination for the UK. Outside of the EU, that clearly provides us with a huge opportunity. Imports were worth £14.8 billion in 2019, which was 2.1% of our imports, making India the UK’s fifth single largest import supplier. India is now the fifth largest economy in the world and the third biggest investor in the UK. We have slipped down the list on investment in India, and we need to put that right as we go forward. We were the third biggest investor in India, but I think we are now fifth or perhaps even sixth. India is the second most populous country in the world, with 1.38 billion people back in 2020, which amounts to 18% of the world’s population. I am throwing out a lot of stats, because we need to understand the huge benefit that can result from having a free trade agreement with India.

Obviously, under covid, both our economy and India’s economy contracted, but as they expand we will have an opportunity to get involved in further investment in India. At the moment, India is projected to overtake Germany and become the world’s fourth largest economy by 2030, and it could leapfrog Japan to become the third largest by 2050. The opportunity there is huge, and India has obviously been the engine of global growth over recent years, with its economy growing by 7% a year. If we could grow our economy by 7%,- wouldn’t we bite people’s hands off to achieve it? Clearly, that is going to be the position. I have mentioned India’s middle-class market, which is growing fast and which is a huge opportunity for us overall.

With a free trade agreement with India, we can obviously support jobs across the UK. If our exports to India grow, we can grow our businesses, and SMEs will grow as a direct result. In 2019, something like 1,000 Indian-owned local business units were operating in the UK, so clearly the opportunities are there and the demand for imported goods and services will grow as we use the living bridge between the United Kingdom and India.

Obviously, the success of exports to India will depend on how well the world economy goes and how our relationship grows with it. As I understand it, the second round of negotiations is due to take place between 7 March and 18 March, with a shared ambition to conclude negotiations by the end of this year. I wish those negotiations well, and I hope the Minister will be able to update us on the position when he responds to the debate.

Looking at the various parts of our economy, there are huge benefits right across the UK to having a trade agreement with India. One of our hugest exports is Scotch whisky. That has a huge impact. Those of our Scottish friends who are present—the hon. Members for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), for Glasgow East (David Linden) and for West Dunbartonshire (Martin Docherty-Hughes)—know that they will gain as a result of a global Britain free trade agreement. If they were to engage in foolish behaviour and leave the United Kingdom, they would lose that free trade agreement and once again face tariffs of 150%. Indeed, the export of Irish whiskey is a vital part of the Irish economy and will clearly be—

[Jim Shannon (Strangford) (DUP)]

Northern Irish!

[Bob Blackman]

I have had the opportunity of sampling Irish whiskey on many occasions.

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[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Harrow East (Bob Blackman) for introducing the debate in a consistent, helpful way. I am pleased to follow the contributions of the hon. Members for Glasgow East (David Linden) and for West Dunbartonshire (Martin Docherty-Hughes). The hon. Member for West Dunbartonshire knows that I have supported him in the campaign that he has consistently been involved with over the years and in every one of his debates, and I support him here today in urging the Minister to do something. It may not be too late for that plea to the Minister and to the Government to do something to help the hon. Gentleman’s constituent, who has been very wrongly maligned, intimidated, tortured and injured, and his family.

Holding each other accountable to a higher standard is a hallmark of any good relationship. Ours with India should be no different, which is why what the hon. Gentleman said is so important. There has been colonial and historical contact, and that has drawn us together over the years. I see—we all see—India as a friend and the close relationship between the UK and India is well known. A long history of international co-operation and trade has been central to much of that. Our trading relationship is significant and, therefore, I believe we need to have a relationship that draws on our concerns in this country. I will lay out some reasons for that.

The UK is the third biggest investor in India, and in 2020 India became the second largest investor in the UK. Our relationship is growing from both sides and that is important. During the covid-19 pandemic, trade with India secured vital personal protective equipment for our frontline workers, and helped to secure the production and roll-out of the Oxford-AstraZeneca vaccine on such a mammoth scale. The history and our relationship over the last 100 years—especially over the last two—have been significant and important.

It goes without saying that the UK-India relationship is mutually beneficial, and that underscores why a trade deal with India is and should be such a priority. However, in trade negotiations we should not ignore the values central to a good relationship for the sake of a better trade deal. The close relationship between the two countries necessitates that our Government and our Ministers raise the issue of human rights concerns in negotiations with India. Will the Minister confirm that the issues are constantly raised with India? I am quite sure that the answer will be yes, but will the Minister confirm that in Hansard, so that we have it to refer to for the future?

I am sad and sorry to say this, but in recent years India has seen escalating violations of freedom of religion or belief. Churches and Christian schools were targeted during the Christmas season just past. Bibles were set on fire, services were disrupted, a statue of Jesus was torn down and the crowd shouted, “Death to missionaries”. Really? In this modern world? We have this relationship with India, but the Indian Government have not acted on those issues. In 2013, the Open Doors world watch list ranked India as 31st in the global list of the top 50 countries where Christians faced the highest level of persecution worldwide. Last month, in its latest world watch list, Open Doors ranked India in 10th position; it has risen from 31st to 10th. The research sounds the alarm on the escalation of freedom of religion or belief violations in the country—not just against Christians, but against other faiths and beliefs too. I will quickly speak of them.

Lynchings and hate speech targeting Muslims in India have repeatedly made headlines. In December last year, there were open calls for genocide against Muslims at a Hindu Mahasabha party conference. That should never happen at any Government conference or any party conference. The marginalisation of Muslim women was evidenced last month when schools and colleges in the Indian state of Karnataka banned the Muslim headscarf. Indeed, Malala Yousafzai has since responded to colleges forcing Muslim girls

“to choose between studies and the hijab”—

in short, to choose between their right to education and their right to freedom of religion or belief. That must stop. Can the Minister give some indication of how we are encouraging India to do just that?

[David Linden]

I am glad the hon. Gentleman has touched on that. I discussed the issue in a meeting with the Prime Minister. Thankfully, there was an undertaking that he would raise the issue. Does the hon. Gentleman agree and accept that a lot of the behaviour stems directly from Prime Minister Modi and the various thugs in his party who think that such behaviour and intolerance towards people of a different faith is somehow normal? We need to send a very strong message from London to the Indian Government that we will not accept such behaviour and that we will raise it during the negotiations.

[Jim Shannon]

I agree that there is an onus on Prime Minister Modi to speak out. Unfortunately, we have not seen much evidence of that. If he speaks out, there should be a reaction, and those who listen to him might respond in a positive fashion, but that has been lacking so far. However, I hope that we can have such a response.

I believe that there is hope and I want to reflect on that as well. Human rights provisions in international trade deals have become the norm since the early 1990s. More than 75% of the world’s Governments now participate in preferential trade agreements with human rights provisions, and we should participate as well. European Union international trade agreements include human rights clauses and a general obligation to uphold human rights as set out in the UN universal declaration of human rights, so what are we doing to make sure that that is upheld?

Leaving the European Union has enabled us—I say this with great respect to colleagues on my left-hand side, the hon. Members for Glasgow East and for West Dunbartonshire—to pursue an independent trade policy. It is vital, however, that we do not drop human rights provisions in that endeavour and that we appropriately use free trade agreements to pursue our broader international objectives.

The UK has a history of defending human rights across the world and is a leader in protecting the fundamental right of freedom of religion or belief. I recognise the good work that our Government have done on these issues, but there are occasions when we have to speak up in a gentle but firm fashion to say that things are not right. The right to freedom of religion or belief is a gateway right and a strong indicator of the future trajectory of the human rights landscape in a country. That is where the focus must be in India, so we seek that change. Religious or belief minorities are often the first groups to be targeted before other rights are eroded, so the right to freedom of religion or belief is well placed to be an indicator of human rights provision in a trade deal with India. I am confident that the Minister’s response will endorse our concerns and deal with how we can make things better.

I am mindful of the time, so I will conclude by urging the Government to ensure that human rights provisions are included in the text of future trade deals with India, that those provisions include robust monitoring and enforcement mechanisms, that the right to freedom of religion or belief is part of that framework, and that the Prime Minister of India takes the lead on this issue. If we hope to nurture a sincere relationship with India—I hope we do; I want us to—Government silence on the matter cannot be tolerated.

UK-Andean Trade Agreement: Human Rights

Jim Shannon Excerpts

Wednesday 2nd February 2022 Westminster Hall

[Tony Lloyd (Rochdale) (Lab)]

I beg to move,

That this House has considered human rights and the UK-Andean Trade Agreement.

It is a pleasure to serve under your chairmanship, Mr Sharma. This debate concerns human rights and the UK’s trade agreement with the Andean countries of Ecuador, Peru and Colombia. For the benefit of the Ecuadorians present, Ecuador is not one of the countries of concern to me; Peru—though only a little—and Colombia are the objects of my concern.

It is commonly agreed that any trade agreement nowadays should go beyond merely the management of trade flows between different countries. The then Foreign Secretary, who is now the Justice Secretary, said in January 2021 that

“we shouldn’t be engaged in free trade negotiations with countries abusing human rights”.

That is clear and unequivocal. The Minister for the Middle East, North Africa and North America, the right hon. Member for Braintree (James Cleverly), told the Commons last July that

“our commitment to human rights is a foundation stone of our foreign policy… We will ensure that we use our trade relationships not just to export products and services but to export our principles and values.”—[Official Report, 20 July 2021; Vol. 699, c. 800.]

That is a strong, powerful statement.

Even in their report to the House on the trade agreement with the Andean countries, the Government stated:

“The UK has long supported the promotion of our values globally and this will continue as we leave the EU. We want to ensure economic growth, development and labour and environmental protection go hand-in-hand.”

There we have it: human rights, labour standards and environmental protection should all be part of any modern trade agreement.

It gets a little better; there are strong statements in the agreement itself. Article 1 states:

“Respect for democratic principles and fundamental human rights…underpins the internal and international policies of the Parties. Respect for these principles constitutes an essential element of this Agreement.”

Article 269 commits both parties to

“the promotion and effective implementation in its laws and practice…of internationally recognised core labour standards”.

Sadly, there is no mechanism to enforce that. There are no sanctions and no discussion of what we do when things go wrong. There is an acceptance that we should have domestic advisory groups on both sides to represent civil society, trade unions, employers and so on, which could monitor adherence to labour standards and human rights commitments. I shall be asking the Minister where we are with our own domestic advisory group in the UK.

I will start with Peru, which in many ways is an easier case. Peru generates concern around environmental standards. Back in 2017, Peruvian civil society representatives and their European counterparts filed a complaint before the European Commission against the Peruvian Government for failure to comply with environmental and labour obligations under the free trade agreement with the EU, was then the guiding trade agreement. The Peruvian Government continue to fail to establish clear objectives and indicators to monitor progress on tackling these big environmental issues, so there is concern about Peru.

Colombia is a country I know reasonably well. It had a horrendous civil war, which in a way continues. It reached, in part, a negotiated solution. However, that has not stopped the huge erosion of basic human rights, including the right to life and others.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman often brings human rights issues to Westminster Hall about which he and I are on the same page, as we are today. While respect for democratic principles, fundamental human rights and the rule of law should be an essential part of any agreement, does he not agree that we need not simply words but actions? We should not continue to trade with those whose flagrant disregard for and abuse of human rights is prevalent and persevering. I believe that he will now illustrate, in addressing what has happened in Colombia—land grabs and murders of peasant people—that those in authority there have a disregard for life itself.

[Tony Lloyd]

I am grateful for the hon. Member’s support. He is absolutely right. I will continue on exactly that theme.

The United Nations High Commissioner for Human Rights has information about 196 human rights defenders —those who protect the population more generally and go out of their way to act as a human shield—who were killed in 2021. They faced increasing death threats in the aftermath of protests last year. In the first 24 days of this year, 10 human rights defenders were murdered. The International Trade Union Confederation rates Colombia as one of the worst countries in the world for workers’ rights and documents 22 trade unionists who have been murdered in the last year. Colombia is one of the most dangerous places in the world to be active in a trade union.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 20th January 2022 Commons Chamber

[Anne-Marie Trevelyan]

I am disappointed that moving to having new free trade agreements with some of the great economies of the world is considered unseemly haste. We are working at pace and alongside all our UK businesses with a clear and mandated consultation process to ensure that we are pitching for the areas of business in which our businesses want to see growth. The EU market continues to be there under our fantastic markets. Part of the work that the Export Support Service is doing is to ensure that those who already export can do so more easily and indeed that, for those who have not yet considered exporting to the EU, the opportunities and the support services are there to assist them.

[Jim Shannon (Strangford) (DUP)]

In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1 billion. Currently, the trade in meat products between the two countries is very small. Specifically, I want to ask this: what steps has the Minister taken to ensure that there is more focus on the trade of meat produce from the UK to Australia, to the advantage of people and farmers in Northern Ireland?

[Anne-Marie Trevelyan]

One of the new tools in our armoury will be the trade and agriculture commissioners—experts who will be there to help UK businesses that want to take their products into new markets, including Australia. I have no doubt at all that, just as we enjoy Australian wine, we will have the opportunity to see Northern Ireland meat on the plates of the Australians.

UK-Israel Trade Negotiations

Jim Shannon Excerpts

Thursday 20th January 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to serve under your chairmanship, Mr Paisley, and to be in your company—I want to have that on the record. We are close friends and colleagues, having come into this House at the same time.

I congratulate the hon. Member for Harrow East (Bob Blackman) on setting the scene. We missed him this morning at International Trade questions. I figured if he was not there, something must be seriously wrong, but he was there later on—he was alright. His question was still asked—I do not know how he did that. He is always very helpful to me when I go to the Backbench Business Committee to ask for a debate. I am not aware of any occasions—touch wood—when I have been refused a debate by the Backbench Business Committee, and the debates have always been on topical issues, so it is good to have them. Today’s issue is very close to my heart, and the hon. Gentleman outlined it incredibly well.

I see that the hon. Member for Hendon (Dr Offord) has a debate scheduled for Westminster Hall under a slightly different topic heading; we will probably repeat the points that we have addressed today. If God spares me until then, I will be here at 9.30 on Wednesday morning to support the hon. Gentleman in the debate, as will others.

The hon. Member for Harrow East often raises the importance of securing a trade deal with Israel, and I agree. In 2017, Israel was voted the fifth most innovative country in terms of technology and cyber-security. There is absolutely no doubt that we need to increase our co-operation, business and economic growth alongside Israel, so that both countries can benefit. It is imperative that we continue to improve trade relations with our friends and partners.

When I was at the Northern Ireland Assembly—I was there for 12 years—I was a member of the Northern Ireland Friends of Israel group. When I came here, I continued that relationship with the Friends of Israel. I am keen to see relations between the United Kingdom and Israel continuing and, indeed, increasing. The hon. Member for Harrow East said that, too. We should appreciate that that is for everyone’s benefit. Figures from the year 2017 show that UK exports to Israel were £2.3 billion, making it the UK’s 42nd largest export market—accounting for 0.4% of all UK exports. UK imports from Israel were £1.6 billion, making it the UK’s 47th largest import source, accounting for 0.3% of all UK imports. Most recent figures from 2020 also show that the UK had bilateral trade with Israel amounting to £5.1 billion. It is clear that we have a good relationship, but we always want to do better; that is the reason for this debate. It is what the hon. Member for Harrow East is looking for.

There is certainly evidence that there is a need for progressive trade relations with Israel in regards to security—that is an important factor for us all and a key one for me. The Foreign Secretary stated back in November, along with her Israeli Counterpart, that,

“there is a need for a new strategic plan for the next decade, spanning cyber, tech, trade and defence.”

The opportunities are enormous. It was also mentioned that the two countries would work night and day, 24/7, to prevent the Iranian regime from ever becoming a nuclear power. That would be to the benefit of everyone, and to the benefit of world peace, not just the UK and Israel. That is brilliant and we should all try and achieve that. Even the couple of Members here who do not have active participation with Israel should want to make sure the Iran does not achieve nuclear power.

It was former Secretary of State William Hague who labelled science and business ties

“one of the cornerstones of the relationship between Israel and the UK.”

The strategic agreement signed with Israel is the starting post for a series of activities that will deepen our trading relationship. I understand a public consultation on our enhanced bilateral free trade agreement will be opened this month, and there will be further trade strategies in March, as the hon. Member for Harrow East said. It is crucial that we do all we can now to progress this trading relationship. It is important to remember that our trade connections help to strengthen our relationships not only with Israel, but with the rest of the world. It is only right that trade connections benefit every one of us, and Israel is a key friend and trading relationship.

The Minister says that there will be a joint innovation strategy. With that in mind, will there be discussions with Education Ministers? There is the possibility that we can do things in that area, such as combining specialised research through our universities. We have been very good at that with other countries, so maybe the Minister could tell us what could be done in relation to that with Israel.

Israel has proven successful through some of the world’s leading companies, such as Teva Pharmaceuticals, which is worth over £57 million, and computer specialist Intel, which is worth over £27 million. Combined, both of those companies employ over 53,000 people. In addition, UK exports to Israel amounted to £2.6 billion in the four quarters to the end of 2021, which represents a slight decrease—I find that hard to comprehend, but it was probably due to the pandemic and other factors. Could the Minister give us an explanation of why there was a small decrease? Total UK imports from Israel amounted to £9.1 billion at the end of 2020, which was also a decrease of 10.8% from 2021. Again, was the pandemic the reason for that? If it was, then we know that those numbers can only go one way, which is upwards. We must do all we can to ensure that those figures do not decrease any further. I am sure the Minister will respond to that point.

Israel was the UK’s 40th largest trading partner at the end of 2020. I encourage the Foreign, Commonwealth and Development Office to do all it can to ensure that we continue to show interest through trade. I understand that trading figures may have decreased due to the covid-19 pandemic, but it is essential that we do not continue to let this become a problem. Our economy is essential to our success, for jobs and for the benefit of all of us in the UK, Israel and, of course, the world.

I understand that other Members want to speak, so I will conclude my remarks. It is crucial that we prioritise our trading links with other countries. More discussion must take place between the Minister and his counterparts to expand our products’ scope, and how we can build on what we have and perhaps even develop it more. When it comes to trade deals, our Government have been very successful so far, so we look to see where we are with Israel. We all welcome the prospect of an enhanced trade deal with Israel, as well as strong support from UK Export Finance to help finance exports into Israel. With that in mind, I very much support what the hon. Member for Harrow East has said, and look forward to the Minister’s response. It is good to see him in his place: he has been missing for a while, but wherever he has been, it is good to see him back.

[Ian Paisley (in the Chair)]

The Minister will be able to explain those sleepless nights very soon.

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[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

It is a pleasure to serve under your chairmanship for the first time, Mr Paisley, and I welcome the hon. Members for Brentford and Isleworth (Ruth Cadbury) and for Airdrie and Shotts (Ms Qaisar) to their places. I should also like to thank my hon. Friend the Member for Harrow East (Bob Blackman) for securing this important debate and all Members who have been present this Thursday afternoon and made important contributions.

The hon. Member for Strangford (Jim Shannon) raised the question of why I had been away from the House in recent weeks. In his absence, but for the record, I should say that I have been away for a couple of weeks due to the birth of my son. [Hon. Members: “Hear, hear.”] Thank you.

That explains why the hon. Gentleman has not seen me in the Palace, but I am delighted to be back and discussing this important topic, because Britain is strongly committed to her trade and investment relationship with Israel, one of the middle east’s most dynamic and innovative economies. Israel is a key ally and friend to the United Kingdom. We share the same values and are key strategic partners in the middle east. The bilateral trade relationship is very strong, and we want to continue to work with Israel to strengthen our relationship as we emerge as an independent trading nation for the first time in 50 years.

Let me be crystal clear at the outset: we are strongly opposed to boycotts. Open, honest conversations best support peace efforts. The United Kingdom is very clear about this—always has been and always will be. We have also made clear our commitment to supporting the Abraham accords and to working with Israeli and Arab partners to promote our shared prosperity and regional security.

The continuity agreement that we signed on 18 February 2019 was one of Britain’s first. It replicated the scope of the EU-Israel agreement, with key provisions covering tariff liberalisation, customs, regulation and public procurement. This trade and partnership agreement, which entered into force on 1 January last year, secured the future of our bilateral trade relationship. Anglo-Israeli trade was worth £4.6 billion in the four quarters to the end of Q2 2021, making Israel—I am pleased to say that I agree with my counterpart, the hon. Member for Brentford and Isleworth—the United Kingdom’s 40th largest trading partner globally. The United Kingdom is Israel’s second largest trading partner, behind only the United States.

While it is difficult to disaggregate trade figures, it is certainly true—to respond the comments by the hon. Member for Strangford—that covid has depressed trade around the world, but that makes trade with Israel all the more important. Co-operation between us in sectors such as science and technology—and particularly medical science, which we have heard a lot about this afternoon—is already very strong, with Israel’s status as a start-up nation and the United Kingdom’s as a science superpower going hand in hand.

We have heard some great examples from so many colleagues, including my hon. Friend the Member for Harrow East. I was also particularly drawn to the examples given by my hon. Friend the Member for Southport (Damien Moore), which showed the huge scale of imports that we benefit from here in Britain, but we export to Israel too. We should not lose sight of that benefit to both countries. The London Electric Vehicle Company, for example, makes taxis in Warwickshire—I am sorry to say that to my hon. Friend the Member for Harrow East, although I am sure Members from Warwickshire will be pleased with that news. LEVC vehicle exports totalled something like £1.46 million in 2021—a year when trade was depressed because of covid—and the company anticipates purchases of something like £730,000 a month this year. That is just one example but, to the point made by the hon. Member for Brentford and Isleworth (Ruth Cadbury), as far as I am concerned, the sky is the limit.

As my hon. Friend the Member for Hendon (Dr Offord) said, around 500 Israeli firms operate in the United Kingdom. That investment from overseas is creating thousands of jobs in high-value sectors, and over 20 Israeli firms are listed on the London Stock Exchange or AIM—its alternative investment market—demonstrating the benefit and strength of capital markets in the City of London. Of course, we can always do more to assist the relationship, and I know that Ministers across Government will look carefully at the comments made by Members, including their suggestions on changes to the visa regime.

We can always do more to help businesses succeed, and the Department for International Trade is doing that right now. We have a dedicated team of trade advisers in Tel Aviv, and UK Export Finance has a risk appetite for Israel of at least £4 billion, which is helping firms operating from the United Kingdom to win contracts, insure their operations and obtain trade financing. The United Kingdom and Israel share a world-leading culture of entrepreneurial, tech-savvy and innovative businesses, which will be celebrated in an innovation summit later this year—a clear opportunity to highlight our ambitious trade, science and innovation relationship, and a chance to showcase the shared talents and skills of world-leading British and Israeli businesses. My hon. Friend the Member for Harrow East asked about what more we could do to enable binational approaches to research and development, and I am pleased to say that the UK Science and Innovation Network is already making great strides in that direction.

Outwardly, the stock of foreign direct investment from the United Kingdom to Israel was £1.4 billion as of 2019. We trade across a huge range of sectors, as I have said, but both our economies are also highly oriented towards services, which represent over 70% of GDP for each country. After the United States, we are Israel’s second-largest collaborator in pharmaceuticals and medical products, and the pandemic has catapulted the need for digital health solutions, with Israel already being the world’s leader in this area. It has therefore become even more important. Beyond that, we seek opportunities in business services, research and development, and professional and management consulting services—the biggest traded services between our countries, making up 12.5% of the overall trade relationship. Although our trading relationship continues to be predominantly goods-based, at around 65% of our trade, our economies are highly services-oriented, and I believe that huge scope for the future lies in our trade in services.

As two like-minded partners, with expertise in areas such as technology, innovation, data and digital, we are confident that the United Kingdom and Israel can agree an ambitious deal that will complement both our economies. On 29 November, the Prime Minister announced that we would begin talks with Israel this year on an enhanced free trade agreement. Given both the political and economic importance of our trading relationship with Israel, we expect the FTA to form a substantial part of our bilateral trading relationship. I should emphasise that Her Majesty’s Government are committed to scrutiny and openness in our FTA negotiations. We aim to be transparent, consultative and accountable throughout our trade agenda, and we believe we compare favourably with other parliamentary systems around the world.

On 2 December, the Secretary of State for International Trade announced that the United Kingdom would open our formal call for evidence very shortly. This call for input will allow the views of businesses, the British people, civil society and others—not only parliamentarians —to be fully heard during the mandate development process, helping us shape the negotiations for our comprehensive FTA. The specific coverage of the objectives for an FTA, as asked for by the hon. Member for Airdrie and Shotts, will be concluded following this call for input, to ensure that we have fully listened to the views of all British people, businesses and civil society. It simply would not be appropriate to speculate on the contents of such a call for input—and, indeed, on our objectives—before completing that work. However, I am pleased to be able to say that the Secretary of State plans to travel to Israel in early February.

We will publish our strategic approach, an initial scoping assessment and a Government response to the call for input before starting negotiations, giving the House the means to scrutinise our negotiation approach, its projected impact, what we have been told by British people and businesses and our response to their views. We will, of course, update the House in the usual manner after each negotiation round and when requested to appear before the relevant parliamentary Committees.

[Jim Shannon]

I must apologise for not being present when the Minister mentioned me. I have a private Member’s Bill tomorrow and the Minister responsible has been trying to catch me, so I had to speak to her. I just wanted to ask if, when those meetings are held with the Minister’s counterparts in Israel, we could have some indication of the input of Northern Ireland companies in that process? Obviously we want every part of the United Kingdom—all the regions—to benefit.

[Mr Jayawardena]

The hon. Gentleman can be absolutely assured that the views of every part of our United Kingdom will be fully taken into account. In fact, the Board of Trade recently visited Belfast to demonstrate our commitment to ensuring that the Department for International Trade works for every corner of our United Kingdom. The timings of the negotiations will very much depend on the readiness of both sides, which, of course, means agreement with the Israeli Government.

My hon. Friend the Member for Harrow East and the hon. Member for Strangford raised the potential opportunities that a future FTA might provide. While British businesses already benefit from our existing trade and partnership agreement and we would not, of course, want to prejudice the call for input, I believe the potential to take our trading relationship to the next level through an enhanced and improved FTA is very clear. There is the opportunity to remove or significantly lower tariffs for major British exports, such as in the food and drink sector. We see opportunities to give easier access for all British companies—whatever corner of the country they are from, and including small and medium-sized enterprises—to set up, do business and access the Israeli market.

There is significant scope to expand our trade in services, including digital services, which grew a remarkable 73%, albeit from a low base, between 2010—remember 2010?—and 2020. Co-operation in this area is, frankly, very limited in the existing trade and partnership agreement, and we see real opportunities for an enhanced FTA to supercharge the trade in services, which would complement our services-based economies, as we have discussed during the debate, and cement the United Kingdom as the international services hub.

My hon. Friend the Member for Harrow East and the hon. Member for Strangford asked how such an agreement would fit into the United Kingdom’s wider trade agenda. Of course, our potential FTA with Israel is just one component of our ambitious wider international trade strategy. As an independent trading nation, the United Kingdom has the freedom to forge new bonds of trade with partners, friends and like-minded souls worldwide, based on British interests and shaped by British priorities. We will continue to carefully plan and sequence our negotiation programme to ensure that it delivers the maximum benefits for the United Kingdom. No longer restricted by anti-competitive and protectionist one-size-fits-all regulation from the EU, the United Kingdom will pursue prosperity through free and fair trade with sovereign nations, based on our shared interests and underpinned by the agreements we are forging worldwide.

We have signed deals covering 70 countries, plus the EU, that account for more than three quarters of a trillion pounds-worth of trade, and we intend to continue that record of success in 2022. We have a clear and ambitious goal that will put global Britain in pole position to pursue new opportunities to connect British businesses to the most dynamic economies of the decades ahead.

The International Trade Secretary recently kicked off negotiations with India, one of the world’s largest and fastest-growing economies. We are looking to accede to the trans-Pacific partnership, one of the world’s largest free trade areas, and we have launched our consultation on a potential deal with the Gulf Co-operation Council. Of course, Members will already know that we have secured an agreement in principle with New Zealand and have finalised our agreement with Australia. Those deals are aimed at unlocking growth in every corner of our United Kingdom.

The hon. Members for Brentford and Isleworth and for Airdrie and Shotts raised the matter of the Occupied Palestinian Territories and their status in a potential FTA. The United Kingdom has an interim political, trade and partnership agreement with the Palestinian Authority, which entered into force on 1 January 2021, which we are committed to implementing. That will help protect our bilateral trade relationship, which was worth £24 million in the four quarters to the end of Q2 2021. We value our bilateral trade relationship with the Palestinian Authority and will continue to work closely together to build on our trade continuity agreement.

UK-Australia Free Trade Agreement

Jim Shannon Excerpts

Wednesday 5th January 2022 Commons Chamber

[Anne-Marie Trevelyan]

The CPTPP process is in play. We put in our application last year and we are being vetted. I am not sure how best to describe it—it is a bit like passing a set of exam questions, and we have to submit our answers. We are in the final throes of that phase, which is good, and we hope to be able to move to market discussions in the very near future. In relation to my hon. Friend’s question about the new framework for Government-to-Government contracts, we are looking at those in detail at the moment and I will report back in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the right hon. Lady for the comprehensive positives in her statement, but I wish to reflect the concerns and opinions of the National Farmers Union and the Ulster Farmers Union—I declare an interest as a member of the latter. Will she outline how we can encourage our close friends and allies in Australia to produce meat products using the same high animal welfare standards that we in the United Kingdom of Great Britain and Northern Ireland are proud to stand for?

[Anne-Marie Trevelyan]

I thank the hon. Gentleman for his continued support of farmers in his constituency. In the animal welfare chapter, we have agreed a non-regression clause and a number of co-operation matters on which we will work with the Australians. We are clear that our standards are non-negotiable and that food coming into the UK must meet our food standards and safety levels, and that will continue.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 2nd December 2021 Commons Chamber

[Mike Freer]

The Department for International Trade is always looking to protect our own industries and sectors, including the agricultural sector, while ensuring that they are able to exploit new markets. In terms of beef and lamb, our teams are working hard to ensure that the new markets we are opening up will be available to Scottish farmers. Again, if the hon. Lady would like to know more about the support we are able to offer, I am very happy to facilitate that discussion.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his responses, but bearing in mind the fears of our farmers and farmers’ unions following the New Zealand deal, will he outline what steps have been taken with the Department of Agriculture, Environment and Rural Affairs at the Northern Ireland Assembly to promote our British produce exports to global markets affected by the New Zealand deal?

[Mike Freer]

My understanding is that there are regular and frequent conversations between the Department for Environment, Food and Rural Affairs and DAERA. I am more than happy to ensure that the hon. Gentleman gets details of those discussions if he has any specific concerns he wishes to have addressed.

--- Later in debate ---

[Anne-Marie Trevelyan]

UK leadership through COP26 has been world respected and renowned. The Department for International Trade is now able to continue the extraordinary leadership shown by my right hon. Friend the Member for Reading West (Alok Sharma) as COP26 President to ensure that the technologies that the UK is developing, has developed and will continue to develop will be at the forefront of all matters environmental in order to help every part of the world meet its decarbonisation challenge.

[Jim Shannon (Strangford) (DUP)]

What discussions have taken place with the Foreign, Commonwealth and Development Office and the Home Office to place Afghan refugees in work in places such as Mash Direct and Willowbrook Foods in my constituency of Strangford, and across the agrifood sector in Northern Ireland, which is in need of migrant workers to fill the vacancies that presently exist?

[Penny Mordaunt]

I would be happy to get those Departments to give the hon. Gentleman some further details. Every Department across Government, including the Department for Education, is focused on ensuring that people who are coming here to restart their lives in safety are given every opportunity, and that their skills can be utilised. We are also thinking about how we can help those who are still left in country. I undertake that the FCDO will write to the hon. Gentleman.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 21st October 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

May I welcome the Secretary of State to her place and wish her well? I endorse the need for a trade agreement with India, but, as the hon. Member for Lancaster and Fleetwood (Cat Smith) said earlier, I caution, in relation to any trade agreement, about the rights of those of a different religious persuasion, including those of a Christian persuasion. I met the high commissioner for India in Northern Ireland some four weeks ago, and pushed the point with her about how important it is, within a trade agreement, to have freedom of religious belief for all. Unfortunately, that does not happen in India. When the Secretary of State has talks with the Indian Government about a trade agreement will she ensure that it benefits those with different religious beliefs and other persecuted minorities?

[Anne-Marie Trevelyan]

As I said to the hon. Member for Lancaster and Fleetwood (Cat Smith), I am happy to discuss that area. As colleagues will be aware, the FCDO is always at the forefront of such discussions, ensuring that where we have lines of communication we are robust and firm friends on issues that we consider to be values, and that we continue to trade with others and have good relationships. We will continue to work in that area.

Black History Month

Jim Shannon Excerpts

Thursday 21st October 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for bringing forward this debate on a really important issue. I am here to support her for that purpose. History should be rich and we should ensure that British history is taught in schools. Does she agree that the curriculum should have time factored in each year for local history, to help children to learn the history of local communities—she has just referred to that—across the whole of the United Kingdom and the immense contribution of black history, heritage and culture to this nation?

[Abena Oppong-Asare]

I thank the hon. Member for mentioning that point. I completely support that and I will talk about it in detail later in my speech. It is important to know about local history.

I want to celebrate constituents such as Melrose, a nurse at Greenwich and Bexley community hospice, who said:

“Every day we”—

as black nurses—

“go to work. We take our roles seriously. However, we are confronted on a regular basis by people who don’t appreciate us because of who we are: our cultural identity is either mocked or discarded rather than accepted. We strive through hundreds of hurdles, we skip, we jump, we swim and we keep smiling. We learn, we grow and we move forward a few steps down the line and we bounce back. We are resilient.”

Melrose’s testimony reminds me of the great sacrifices many black people have made over the past years in response to the covid pandemic.

Another constituent, Florence Emakpose, part of the World of Hope organisation in Abbey Wood, worked throughout the lockdown to reach out to vulnerable families with their own food bank service.

Free Trade Agreement: New Zealand

Jim Shannon Excerpts

Thursday 21st October 2021 Commons Chamber

[Anne-Marie Trevelyan]

I did not know that Warrington was the centre of gin, but now I have discovered that I will have to go and visit as soon as possible. The trade deal strips away tariffs on all goods with rules of origin, and clearly a producer of Warrington gin, which absolutely is a Warrington gin, will have the opportunity to take their goods to market in New Zealand without tariffs. I look forward to championing Warrington gin, and all other forms of British gin.

[Jim Shannon (Strangford) (DUP)]

I have not tasted gin-soaked lamb recently, so I am not quite sure what it tastes like, but that is by the way. What discussions have taken place with Ministers in the Department for Agriculture, Environment and Rural Affairs at the Northern Ireland Assembly to assess the impact on and benefits for Northern Ireland agriculture from this new deal? What protections are in place for our farming sector, to ensure that it continues to produce the high quality, ethically raised food that our Northern Ireland farmers within the United Kingdom produce on a daily basis?

[Anne-Marie Trevelyan]

My ministerial colleagues and I have regular discussions with our counterparts in all the devolved nations, and I know that such conversations went on with Ministers yesterday to really get a sense of, and to encourage, the exciting opportunities that now exist with the agreement in principle. As we move from this stage to finalisation—this is where it gets complicated, with pages and pages of legal text, and lawyers are required—there will be refinement to ensure that all those nations have their concerns and, indeed, the important issues that they want raised, crystallised into the final deal.