Oral Answers to Questions

Kemi Badenoch Excerpts

Thursday 3rd November 2022 Commons Chamber

[Peter Aldous (Waveney) (Con)]

1. What steps her Department is taking to increase trade opportunities for the UK energy sector.

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

The Government’s export strategy sets out how we aim to capture up to £170 billion of export sales estimated for 2030 in low-carbon sectors. At the green trade and investment expo earlier this week, we showcased the best renewable energy technologies and innovations that the UK has to offer. Over the last year, the Department for International Trade has supported £5 billion-worth of exports across energy and infrastructure sectors.

[Peter Aldous]

I welcome my right hon. Friend to her place, and I am grateful for her reply. With 50% of the UK’s offshore wind fleet anchored off the East Anglian coast, local businesses have acquired a unique set of skills, knowledge and expertise that should be promoted abroad, so as to increase trade opportunities. A case in point is the memorandum of understanding between the New Anglia local enterprise partnership and Virginia Beach in the US. I would be most grateful if my right hon. Friend could confirm that a national framework is in place to ensure that we make the most of these great opportunities.

[Kemi Badenoch]

I am grateful to my hon. Friend for raising that issue and highlighting the good work that DIT is doing. He will be pleased to know that in 2020—the latest figures available—the UK exported £821 million-worth of offshore wind products, with the help of DIT overseas and sector teams. We have a plan in place to carry out promotions, and work is ongoing to continue to build the UK’s extensive export offer and maximise economic value. My hon. Friend will also be pleased to know that in and around his constituency of Waveney, DIT is supporting Lowestoft and Great Yarmouth in the build-out of Iberdrola and Vattenfall’s projects, which are developing capability to export low-carbon technology globally.

[Kerry McCarthy (Bristol East) (Lab)]

Earlier this week, I had the pleasure of meeting the Foreign Minister from the Maldives. Like many small island states, it would very much benefit from UK support when it comes to renewable energy; it is just not in a position to do that itself. It would also benefit from the lifting of tariffs on tuna, which I hope the Secretary of State is aware of. What support can we give small island states such as the Maldives?

[Kemi Badenoch]

I thank the hon. Lady for her question. We have a developing countries trading scheme, which we use to assist small countries that are not able to take some of the opportunities that larger, more developed economies can take. I know that Foreign Office Ministers have been having conversations with Ministers from the Maldives, and I am pleased to see that the engagement is extensive. We will do all we can, and I am happy to have conversations on the best way to assist it in reducing tariffs and increasing trade between our countries.

[Sir Jake Berry (Rossendale and Darwen) (Con)]

The green industrial revolution can seed jobs across the north of England. Will my right hon. Friend say, particularly in advance of COP27, what support is available for small manufacturers in places such as Rossendale and Darwen to ensure that they can access our overseas networks, to push international trade beyond the shores of Lancashire?

[Kemi Badenoch]

I thank my right hon. Friend for his question. That is one of the things we are promoting during International Trade Week. We have a 12-point export plan, to do precisely what he described. Just this week, I have met export champions across the UK, who have been showing the ways that we can expand our export networks into other countries. I am happy to provide him with more information on what the manufacturing sector in and around his region can do to take advantage of that.

[Jim Shannon (Strangford) (DUP)]

I welcome the Secretary of State to her place and wish her well in all that she does. I welcome greater trading opportunities for the energy sector. We must also be aware of the need to self-source and provide our own energy, to be self-sufficient. Has she had the opportunity yet to evaluate nuclear energy options for regions such as Northern Ireland and the ability to then increase trade with other nations?

[Kemi Badenoch]

The short answer to that is no, primarily because that would be a competency of the Department for Business, Energy and Industrial Strategy, but I would very much like to hear more about the trade opportunities that the hon. Gentleman has identified, which DIT can support in conversations with BEIS, to facilitate those sorts of plan.

[Mr Speaker]

I call the shadow Minister, Ruth Cadbury.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

On behalf of His Majesty’s Opposition, I welcome the Secretary of State to her position on her first outing. The Government have committed to reaching net zero by 2050, but they continue to approve new licences for oil and gas projects. Projects approved before August 2023 could be protected from being stopped under a revised energy charter treaty. We know that other countries have been sued under the treaty when they tried to close down fossil fuel projects under their net zero commitments. How would the Government prevent that from happening in the UK under a revised energy charter treaty?

[Kemi Badenoch]

I thank the hon. Lady for her question. She should know that the Intergovernmental Panel on Climate Change believes that those projects are consistent with our transition to net zero. She will know that gas is a transition fuel, so it is not possible for us to get to net zero by cutting off gas completely. We need to ensure that the explorations that are taking place are in line with our strategy; I believe that they are. Responsibility for the energy charter treaty lies with BEIS, but we lead on investment provisions and investor-state dispute settlements. We continue to see it as having an important role in these policies and the UK’s trade policy.

[Kate Osamor (Edmonton) (Lab/Co-op)]

2. What discussions she has had with her counterparts at the World Trade Organisation on access to treatments for covid-19.

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

The last World Trade Organisation ministerial conference, attended by my predecessor, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), brokered an agreement on trade-related aspects of intellectual property rights in relation to covid-19 vaccines. My officials are fully engaged in ongoing discussions regarding TRIPS. The UK remains committed to engaging constructively with the WTO on that.

[Kate Osamor]

I congratulate the Secretary of State on her new role. A great success was achieved earlier this year when a deal was agreed at the WTO to waiver some rights on the manufacture of covid vaccines, yet the deal does not apply to treatment, so countries such as Pakistan and South Africa are urging an extension of the waiver. Can the Government commit to being a positive voice in negotiations and pledge to support a waiver on covid-19 treatments?

[Kemi Badenoch]

I cannot make a pledge at the Dispatch Box. I can say that we will do everything we can within the existing framework to support countries that need access to vaccines and treatments. If they are making specific requests about waivers that the DIT can consider, I would be happy for the hon. Lady to write to me so that I can take a look.

[Mr Robin Walker (Worcester) (Con)]

3. What steps her Department is taking to mark International Trade Week.

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

Building on last year’s success, my Department is holding more than 120 events across the country this week to help businesses of all sizes and sectors to seize export opportunities to support jobs and growth nationwide. I was pleased to welcome more than 100 investors and UK exporters to the green trade and investment summit in Gateshead, attend an Export Academy event in Birmingham and speak at the National Farmers Union dairy export summit to promote UK trade.

[Mr Walker]

I welcome my right hon. Friend to her place and my neighbour, the Under-Secretary of State for International Trade, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), to his. Worcester is home to some fantastic exporters, including Southco, the products of which reach markets as far afield as the United Arab Emirates, Egypt, Turkey, South Africa and Greece. It has been supported by the DIT to achieve exports worth more than £6 million and it is now working on major opportunities in India. As we celebrate International Trade Week, will my right hon. Friend ensure that we redouble efforts to support Worcester and west midlands exporters?

[Kemi Badenoch]

I am happy to assure my hon. Friend of that. I am grateful to him for highlighting a lot of the fantastic work that is taking place across the country. He will know, as will hon. Members on both sides of the House, that when it comes to exporting, size does not matter. We want to support as many small and medium-sized enterprises as possible to take advantage of the benefits of international trade. The export support service has boosted our international trade adviser network. He will be pleased to know that five advisers operate in his constituency; more than 180 advisers across the country offer tailored support to SMEs to take advantage of the opportunities for international trade.

[Chris Elmore (Ogmore) (Lab)]

My constituency makes everything from military grade parachutes to television cameras for US television networks. During International Trade Week, it would be good to do more to include the nations of the United Kingdom to ensure that every constituency in Wales, Scotland and England benefits from that much-needed trade, and that businesses in my constituency from Sony to Wepa and Rockwool are celebrated and supported by the Department.

[Kemi Badenoch]

The hon. Gentleman raises a good point. We need to make sure that our policies are visible across the UK. I saw many businesses from Wales and similar regions in the west of England at the green trade and investment expo. They are pleased with the support that they are receiving from the Department. I think we have a visit to Cardiff planned with the Board of Trade soon. I hope that these are the sorts of things that he and his fellow MPs in Wales will be able to take advantage of.

[Mr Speaker]

I call the shadow Secretary of State.

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

After several months in which Ministers have come and gone without even facing questions at the Dispatch Box, it is good to have a chance, in this International Trade Week, to welcome the new team to the Department. I would of course like to welcome the Secretary of State and to wish her well in her new post, and I would also like to start on a note of consensus. The Secretary of State said during the leadership contest in the summer:

“Why should the public trust us? We haven’t exactly covered ourselves in glory”.

I entirely agree with her assessment of her party.

We know where the Prime Minister thinks that Conservative policy on trade has failed, because he called the Australia deal “one-sided”, so can the Secretary of State set out which other aspects of trade policy have failed and how she intends to improve them?

[Kemi Badenoch]

I thank the right hon. Gentleman for his warm welcome. He makes reference to comments that I made in the summer, and I am very grateful for the opportunity to clarify them. I was actually referring to all MPs and to Parliament, rather than just to this side of the House—[Interruption.] Indeed; we all know Members of all parties who have not exactly covered themselves in glory, and nobody should pretend that this is about those on one particular set of Benches.

The right hon. Gentleman is talking about trade policy, and one of the things I am very keen to highlight is that there is more to trade than free trade agreements. What we need to do is get our exports and investments going; that is the bread and butter of what trade is about. I disagree with his assertion about the one-sided nature of any particular agreement. What I want to see is businesses selling their products outside the UK and investment coming in.

[Nick Thomas-Symonds]

Well, trade policy certainly has not been covered in glory, because the 80% of UK trade that was to be covered by free trade deals by the end of year is not going to happen, the comprehensive deal with the US is out of sight and the deal with India by Diwali is a promise broken—but is this really any surprise? The Secretary of State’s predecessor said that her then Minister was not always available to answer the phone, the former exports Minister criticised his Department’s own trade fairs and the right hon. Member for South West Norfolk (Elizabeth Truss) was, it seems, prioritising selfies and wine fridges over standing up for Britain. Is not the reality that this Government’s incompetence is costing growth, jobs and prosperity? Quite simply, when will the Secretary of State get a grip of the Department?

[Kemi Badenoch]

I find every single thing the right hon. Gentleman has said to be laughable. It is very easy to stand at the Dispatch Box and make political points. I am here to actually deliver for the businesses across the UK, and that is what those of us on the Conservative Benches are going to be focused on. This is International Trade Week, so he will know that by 2030 we are forecasting £1.8 trillion-worth of green trade and £170 billion of UK exports. That is not the work of a Department that is failing; that is the work of a Department that is succeeding. I am very pleased with the actions of the officials at the DIT, and I will continue to support them both in the Department and here in Parliament.

[James Wild (North West Norfolk) (Con)]

4. What progress her Department has made on securing UK membership of the comprehensive and progressive agreement for trans-Pacific partnership.

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[Sara Britcliffe (Hyndburn) (Con)]

10. What steps her Department is taking to increase UK exports.

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

I am delighted to say that UK exports were £728 billion in the 12 months to the end of August 2022—an increase of £49 billion adjusted for inflation. Through our free trade agreement programme, we are creating new opportunities for UK exporters through FTAs covering £814 billion-worth of bilateral trade in 2021. We are also supporting UK exporters through our export academy, which since October 2021 has provided tailored assistance to over 11,500 businesses.

[Sara Britcliffe]

Last year, more than 160 of the great businesses that we have in Hyndburn and Haslingden exported goods around Europe and the rest of the world. Increasing exports creates jobs, wealth and better opportunities. Does the Secretary of State agree that liberalising international trade as a function of our new post-Brexit freedoms is key to levelling up our country, as that provides more opportunities for businesses in Hyndburn and Haslingden?

[Kemi Badenoch]

I wholeheartedly agree with my hon. Friend. Opening up new markets for Great British business, whether through the FTA negotiations or our work on trade barriers, will be key to securing the economic growth that the British people want. I am also pleased to hear that the export strategy is having a positive impact in her constituency. We currently have 72 export champions based in the north-west, close to her constituency, who are sharing their export journeys and acting as role models for new and aspiring exporters. As part of International Trade Week, we have hosted more than 120 events, and four of them have been in the north-west.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

A survey of small and medium-sized enterprises for the British Chambers of Commerce found that four in five had not carried out any assessment into what they may need from a trade deal with major international markets. What steps are the Government taking to engage SMEs better with free trade agreements under negotiation?

[Kemi Badenoch]

The hon. Lady raises a good point. We do have SME chapters in FTAs, but quite a lot of engagement takes place with trade bodies such as the CBI and the Federation of Small Businesses. Many of those trade organisations represent their members fully, but if she thinks that a specific issue has been overlooked in any particular negotiations and she would like to highlight that, she should contact DIT in her capacity as a Member of Parliament and we will look into helping those businesses in her constituency and across the country.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

11. What steps she is taking with Cabinet colleagues to help reduce the effects of (a) inflation and (b) exchange rate fluctuations on the supply chains of Scottish exporters.

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[Kate Osamor (Edmonton) (Lab/Co-op)]

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

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

I am delighted that this week the Department is hosting our second International Trade Week. Trading around the world can be transformative for UK businesses, which is why, with more than 10,000 business registrations for about 123 events delivered by the Department and external partners, International Trade Week is the Department’s biggest single showcase for the global trading opportunities that are open to our businesses. It also marks one year since the launch of our Made in the UK, Sold to the World export strategy. Throughout the week, businesses have been able to make the most of key export strategy initiatives, such as advice from the export support service and expert support from the Export Academy.

[Kate Osamor]

We recently heard that negotiations to conclude a trade deal with India have stalled because of the comments made by the Home Secretary about migrants from that country—just another mess to lay at her door. Will the Secretary of State tell us whether she will ensure that the Home Secretary’s hardline opposition to migration will not harm our economic relationships?

[Kemi Badenoch]

It is not true that negotiations with India have stalled, either because of the Home Secretary’s comments or for any other reason. They are ongoing. What has changed is the deadline: as a result of my becoming Secretary of State, we are focusing on the deal and not the day, and that is the most important aspect. The Home Secretary is well within her rights to discuss migration issues, and her comments were not specific to the India trade deal. She has a responsibility for migration, and she is doing her job properly.

[James Daly (Bury North) (Con)]

T2.   What progress is being made on establishing a free trade agreement with Pakistan?

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[Gareth Thomas (Harrow West) (Lab/Co-op)]

In the first half of the year, British food and drink exports to Europe were still 5% below their 2019 level, but imports from Europe were up by 22%. The last Secretary of State would not take any action to reduce the barriers to trading with Europe and, indeed, cut the funding for business groups to back British exporters. After the economic car crash that she and the rest of the Government caused last month, is it not time that this Secretary of State took a different approach?

[Kemi Badenoch]

I disagree with the hon. Gentleman. We are doing everything we can to support businesses. He will know that 2019 was before the pandemic, so of course we recognise that supply chain issues have had an impact on exports. I have been referring to this throughout today’s questions session. We have an export support service, and plenty of support in place to assist businesses trading across Europe and the rest of the world.

[Gareth Thomas]

I am sorry that the Secretary of State continues to take such a complacent attitude to trade with Europe. This is not just about food and drink; recent data shows that exports of cars and car parts are still significantly down as a result of the trade barriers, and many hundreds of small businesses which were exporting to Europe, according to His Majesty’s Revenue and Customs, have simply stopped doing so. The Secretary of State’s own colleague, the Under-Secretary of State for Justice, the hon. Member for Finchley and Golders Green (Mike Freer)—a former exports Minister—has said that businesses which want to export are simply not getting enough support to do so.

Given the desperate need for growth following the kamikaze Budget that the Secretary of State backed last month, can she tell the House whether there will be more or less support for British exports after the Chancellor’s fiscal statement?

[Kemi Badenoch]

It amazes me that, even now, Brexit is still being blamed for everything. It is about time that the Opposition, who call other people complacent, paid attention to what is going on in the world and got off their personal hobby-horses. On car manufacturing, there is an issue with battery supply from the US, as everybody knows. We are doing everything that we can to support companies in getting the parts that they need. The export support service is doing a fantastic job, and I commend the officials who work in it.

[Sir Desmond Swayne (New Forest West) (Con)]

T4.   When couriers demand payment of duty on goods from the European Union, with which we have a free trade agreement, are we being ripped off?

[Kemi Badenoch]

Items moving between countries normally attract customs duty and import VAT, but my right hon. Friend will know that the trade and co-operation agreement means that there will be no customs duty on goods moving between Great Britain and the EU if the goods meet rules of origin. Delivery companies may charge their clients handling fees for moving products internationally, but the Government do not have control over those charges, which are a commercial matter.

[Joanna Cherry (Edinburgh South West) (SNP)]

T3.   The Scottish Parliament would be unlikely to ratify a free trade agreement that did not include a standard human rights clause, such as the one that the European Union insists on. The Government seem to have ditched those human rights clauses. Should not trade policy reflect the policies and requirements of all the constituent parts of the United Kingdom, not just those of the Westminster Government?

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[Rachael Maskell (York Central) (Lab/Co-op)]

T7. The use of targeted trade sanctions against repressive regimes is effective, as we have seen in the case of Russia, and significantly weakens those regimes’ power, so what discussions has the Secretary of State had with international counterparts on how economic sanctions against the violent, brutal and repressive Iranian regime could be deployed effectively?

[Kemi Badenoch]

The hon. Lady raises a very important point about the use of trade sanctions. I agree that there are certain countries on which we need an effective trade sanctions policy. Discussions take place across Government, including with Foreign Office Ministers and at official level, and those will continue. I cannot give her the detail of those discussions, but I assure her that we are looking at the issue very closely.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

T6.   I have met a good many constituents whose businesses are engaged in trade with Israel, and who have told me about the opportunities they see there, particularly in the technology and medical sectors. What progress has there been on a trade deal with Israel?

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

What recent assessment have Ministers made of the trends in services trade with the EU? What steps are the Government taking to increase that trade?

[Kemi Badenoch]

There are ongoing discussions about what we can do for services trade. Last month, I met my Dutch counterpart who brought over a trade delegation. We are working with countries individually on everything we can do to improve trade, not just on our services exports but on their exports, too, because they continue to want to sell to the UK.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Yesterday was Back British Farming Day, and many of us in this place joined the NFU in showing our support for the fantastic British farmers across the country, including in my Aldridge-Brownhills constituency, where we still have a small number of farmers. What more can we do to support our farmers, beyond the fantastic work on lamb in this trade deal?

[Kemi Badenoch]

I was at the NFU’s dairy export summit yesterday as part of my activities for International Trade Week and Back British Farming Day. My right hon. Friend will be pleased to know that this country’s dairy exports are increasing. I spoke to many businesses at the summit and they want information on exporting. There is a huge gap in knowledge on how to export, and that is one of the areas on which we want to provide additional information to support farmers.

[Patrick Grady (Glasgow North) (Ind)]

I regularly hear from constituents in Glasgow North who are concerned that the Tories’ desperation for trade deals will lead to a race to the bottom on food standards. Can Ministers guarantee that there will be no chlorine-washed chicken or hormone-fed beef on supermarket shelves in Glasgow North as a result of Tory trade deals?

[Greg Smith (Buckingham) (Con)]

We heard earlier about our great success in opening up new beef and lamb markets around the world. Earlier this year the Government backed a strategy launched by the NFU to increase agricultural exports by 30% through a 10-point plan. Will the Secretary of State confirm that the Government will continue to work with the NFU to land that 10-point plan to grow British agricultural exports?

[Kemi Badenoch]

Yes, I am very happy to continue working with the NFU. We, of course, have our own 12-point export strategy plan; I am sure that there is a lot of overlap between the two, but we are all trying to get to the same place, and I am happy to reassure my hon. Friend on that.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) listed the litany of issues with the Government’s approach to trade deals. I mentioned Saxo bank’s assessment of the UK as an “emerging market country”, and with a US trade official describing UK trade policy as a disaster, why does the Secretary of State think the standing of the UK has fallen so far in the eyes of the world?

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[Mr Speaker]

Order. Mr Bone, that is the most irrelevant question I have heard in a set of questions. This is not like you; I thought your question would be at least on farming—whatever you want it to be.

[Kemi Badenoch]

Yes. [Laughter.]

[Mr Speaker]

Excellent, that completes questions. Thank you for that contribution—not!