Oral Answers to Questions

Kemi Badenoch Excerpts

Thursday 15th December 2022 Commons Chamber

[Tom Randall (Gedling) (Con)]

4. What assessment her Department has made of the contribution of inward investment to the Government’s growth agenda.

[The Secretary of State for International Trade (Kemi Badenoch)]

In the last financial year, DIT supported foreign direct investments generating over £7 billion-worth of economic impact to the UK economy and creating nearly 73,000 new jobs, of which 34,000 were outside London and the south-east, contributing to our levelling-up agenda. In 2021-22, we supported 91 inward investment projects aligned with the 10-point plan into the UK, which delivered £13 billion of green investment. In October, as part of the Green Trade & Investment Expo, I visited the Offshore Renewable Energy Catapult in Blyth—an excellent example of our British low-carbon sectors.

[Tom Randall]

I am grateful to my right hon. Friend for that answer. I am sure she will agree that the benefits of investment need to be seen throughout the United Kingdom. In that context, will she tell me what her Department is doing to support the levelling-up agenda and, in particular, to locate staff in the regions and nations?

[Kemi Badenoch]

I thank my hon. Friend for that question. DIT intends to grow over 550 roles outside London by 2025. Our second major location will be the Darlington economic campus, alongside three new trade and investment offices in Edinburgh, Cardiff and Belfast. I would also like my hon. Friend, as an east midlands MP, to know that I visited businesses in the east midlands just last month, and I am supported by DIT staff based all around the region, who are doing a fantastic job on trade advisory.

[Mark Garnier (Wyre Forest) (Con)]

5. What steps her Department is taking to reduce barriers to global trade for British businesses.

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[Gareth Bacon (Orpington) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Trade (Kemi Badenoch)]

Yesterday, I returned from Delhi after holding trade talks with my counterpart, Minister Piyush Goyal, during the sixth round of the UK-India free trade agreement negotiations. We agreed that an ambitious, balanced deal that works for both our countries can be reached and should be reached at the earliest opportunity. Meeting key UK and Indian businesses at the UK India Business Council and Confederation of Indian Industry trade conference made clearer still the opportunities that the FTA would create for businesses and future generations in both our countries. I look forward to updating the House at the end of our round.

[Gareth Bacon]

In 2019, our trade with CPTPP countries reached £110.7 billion, so does my right hon. Friend share my optimism that joining the bloc will increase our national prosperity? Does she agree that free trade and helping businesses such as those in Orpington to export are how we will create genuine, long-term, sustainable wealth?

[Kemi Badenoch]

I share my hon. Friend’s enthusiasm for CPTPP. Joining CPTPP will offer new opportunities for businesses in Orpington and across the UK. The potential increase to UK GDP is projected to be £1.8 billion. More than 99% of British goods exported will be eligible for tariff-free trade, including in new markets such as Malaysia. Customs procedures will become clearer and more efficient. Firms working in services will have increased market access, greater transparency and predictability.

[Mr Speaker]

I call the shadow Secretary of State.

[Nick Thomas-Symonds (Torfaen) (Lab)]

May I wish all hon. Members a very happy Christmas? In the spirit of Christmas cheer, I will offer the Minister for Trade Policy some help after his struggles in the Christmas quiz from my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) earlier: it was, of course, the Prime Minister who said that the Australia deal was “one-sided”.

There is more:

“The first step is to recognise that the Australia trade deal is not actually a very good deal for the UK”.—[Official Report, 14 November 2022; Vol. 722, c. 424.]

Those are not my words, but the words of the former Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Camborne and Redruth (George Eustice). Quite simply, why should anyone have confidence in the Conservatives’ trade policy when they do not have confidence in it themselves?

[Kemi Badenoch]

I am afraid the right hon. Gentleman is talking nonsense. The Australia free trade agreement is a great deal. It will boost the household wages going into our pockets by an estimated £900 million. It will grow the UK economy to be an estimated £2.3 billion bigger in 2035. It will see the removal of all tariffs on UK exports, which will make it easier to sell all UK goods, from cars to chocolate and Scotch whisky. There will be lower prices at home. I had a meeting with the Australian Trade Minister, and we had a very good conversation. I think it is a shame that the shadow Secretary of State did the same and is now coming here to say negative things about the deal.

[Nick Thomas-Symonds]

If the Secretary of State thinks that those views are nonsense, I suggest she takes them up with the Prime Minister and the former Secretary of State. It was their judgment that I put to her, not my words.

On trade, the reality is that the Conservatives are delivering either bad deals or no deals at all. That is what happens when we have a Government who are high on rhetoric and devoid of strategy, with workers and businesses paying the price. Let me ask a simple question. If the Government will not hit their target of 80% of our trade being under FTAs by the end of the year—and they won’t—when will they hit it?

[Kemi Badenoch]

As Secretary of State, I have been very clear that what is important is the substance of trade deals, not the timing. It is about the deals, not the day. I am negotiating quality trade deals for the UK that will last for generations to come. We are thinking about the future, not trying to re-fight the Brexit debate.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

T2. Medtrade in my constituency has not only been supplying battlefield bleed control packs to Ukraine, but recently received approval for a new treatment for postpartum haemorrhage, which affects 14 million women globally and causes 80,000 deaths a year. Will the Secretary of State join me in meeting Medtrade in Crewe to understand how we can better help such innovative life sciences companies in our constituencies?

[Kemi Badenoch]

I thank my hon. Friend and Medtrade for their support in sending supplies to Ukraine. My Department is committed to supporting innovative life sciences companies; he will have seen the Board of Trade’s recent report on life sciences. DIT North West has worked with Medtrade for several years to grow its exports and will continue to support its export journey. I am sure that the exports Minister—the Under-Secretary of State, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie)—will be happy to meet him to further discuss what we can do.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The Secretary of State recently announced signing a memorandum of understanding with the US state of South Carolina focusing on life sciences and automotive—areas that are very important to the north-east. Could she set out exactly how businesses in Newcastle can benefit from that memorandum of understanding and whether it is supposed to compensate for the lack of any trade agreement with the United States?

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[Jim Shannon (Strangford) (DUP)]

Northern Ireland’s food and drink exports are worth some £5.4 billion, and we export 65% of the sector’s manufacturing to the UK, the EU and the rest of the world. What discussions has the Minister had with the Ulster Farmers’ Union, in which I declare an interest, to commit to protecting Northern Ireland’s agriculture industry in any future trade deal?

[Kemi Badenoch]

I have not personally had any meetings with the Ulster Farmers’ Union, but one of my Ministers has. I want to emphasise that our export strategy is focused on such issues. If the hon. Gentleman writes to me with more specifics, I would be very happy to take them up on his behalf.

[Peter Aldous (Waveney) (Con)]

T7. The road to net zero provides many local job-creation opportunities on the north East Anglian coast in technologies such as offshore wind, hydrogen and carbon capture. The Government are backing these industries, but significant private sector investment is required. I would be grateful if my right hon. Friend outlined what her Department is doing to attract inward investment to these exciting emerging sectors.

[Greg Smith (Buckingham) (Con)]

Exports such as squid from the Falklands are an enormously important part of the economies of our overseas territories and Crown dependencies. Can my right hon. Friend assure me that everything possible is being done to support the trading relationships of this important part of the British family?

[Kemi Badenoch]

We work closely with the Crown dependencies and overseas territories to ensure their interests are actively represented in our FTA programme and trade negotiations. DIT officials have fortnightly contact with them, and the Minister for Trade Policy has recently engaged with them and will continue to do so.

[Sir James Duddridge (Rochford and Southend East) (Con)]

I was interested to hear the Secretary of State’s update on India. Can she go into more detail on how many chapters have closed and on the big opportunities in this trading relationship?

[Kemi Badenoch]

Sixteen chapters have closed. I returned from India just yesterday, and I am still a bit jetlagged. We had two days of invigorating trade talks. Minister Goyal and I had face-to-face discussions on the priority areas within the FTA, including goods, services and investment. I had meetings with multiple businesses that the embassy and all our fantastic officials are supporting.

[Robert Courts (Witney) (Con)]

The Minister for Trade Policy mentioned the North Carolina trade agreement he has just signed. Can he explain how this will help businesses in places such as West Oxfordshire to export to every corner of the United States, our largest trading partner?

[Richard Graham (Gloucester) (Con)]

We have recently signed several agreements with Indonesia, which is good news, and the follow-up is now critical. Will my right hon. Friend confirm, first, that the next round of Joint Economic and Trade Committee talks will happen here in London in the first quarter of next year? Secondly, will the new Government-to-Government framework have Indonesia as a priority? Thirdly, and perhaps most intriguingly, can we move to negotiations on an FTA as soon as possible?

[Kemi Badenoch]

I congratulate my hon. Friend on being a doughty champion of Indonesia and on being such a good trade envoy. He is right that we want to have a JETCO early next year. The Department is liaising closely with its counterparts in Indonesia, and I would be delighted to invite him to assist us in all our engagements to make sure we see all the good things that he wants to happen.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I start by thanking you, Mr Speaker, for leading us in the one-minute silence commemorating 80 years since this House recognised that the holocaust was taking place in Nazi-occupied Europe. It was a powerful moment for the House, and thank you, too, for the welcome you gave to the incredible holocaust survivors who are with us this morning.

Following the Minister’s meeting with the French Trade Minister Olivier Becht yesterday, does he agree that there is a new mood of optimism around the Franco-British bilateral relationship, and that the planned summit in the new year provides a really good moment to think about deepening our ties of co-operation, especially on trade and energy security, and increasing people-to-people contact?