Oral Answers to Questions

Kieran Mullan Excerpts

Thursday 10th June 2021 Commons Chamber

[Elizabeth Truss]

We are still in negotiations about the final stage of the deal, but I can assure the right hon. Lady that British farmers, with their high animal welfare standards, will not be undermined. I am sure she is aware of World Trade Organisation rules that prevent discrimination on the basis of production methods, and what she seems to be advocating is leaving the World Trade Organisation. By the way, she might be interested to know that foie gras is already banned in Australia.

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

What steps she is taking to tackle the use of (a) trade-distorting subsidies and (b) other unfair trading practices.

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

Happy birthday, Mr Speaker. The United Kingdom now has a fully operational trade remedies system that can take action if foreign subsidies harm British businesses. In addition, last month, my right hon. Friend the International Trade Secretary chaired a meeting of G7 Trade Ministers that called for the start of negotiations to develop stronger international rules on market-distorting subsidies and trade-distorting actions by state-owned enterprises, such as the forced transfer of technology.

[Dr Mullan]

Happy birthday, Mr Speaker. With nine out of 10 of the largest Chinese firms being state-owned enterprises, it is clear that the international rulebook is not keeping up with the latest players’ tactics. I do not want to see—I do not think anyone here wants to see—British businesses undercut. Will the Minister elaborate on what more we can do, working with like-minded allies in the WTO and the G7, to tackle these unfair practices?

[Mr Jayawardena]

My hon. Friend is right that global trading rules have not adapted to take account of China’s growth or its different economic model, so Britain cannot, and will not, allow her businesses to be damaged or undercut by those who do not play by the rules, such as through the non-transparent granting of different forms of industrial subsidies. We will work with like-minded partners at the G7, the G20, the WTO and elsewhere to address the harmful impacts of these unfair practices.