Oral Answers to Questions

Liam Fox Excerpts

Thursday 15th November 2018 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

10. What recent progress the Government have made on their export strategy.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

This is the first time that I have spoken in the House since the death of Sir Jeremy Heywood. He was a dedicated public servant to whom I, among many, owe a great debt. I am very fortunate to have been able to call him a friend as well as a colleague. I am sure that Members on both sides of the House would join in a tribute to Sir Jeremy.

The export strategy launched in the summer consists of the four ways in which Governments can make a difference: encourage, inform, connect and finance. It is only by making it easier for businesses that we will increase our exporting performance. Governments do not create wealth, businesses do.

[James Morris]

Last week, I visited Crosby Premier Stampings in Cradley Heath. The company has been forging for nearly 100 years in the Black country, and currently uses traditional and high-tech methods. It is increasing its global sales, including to China. Will the Secretary of State explain how the export strategy will help other such small and medium-sized enterprises to develop their export business worldwide?

[Dr Fox]

My hon. Friend is a great champion of business in the Black country, but all businesses are different, and we want to help both new and seasoned exporters of all sizes with the sort of support that is appropriate to the barriers and opportunities that they will face. SMEs in particular will benefit from increased peer-to-peer learning, improved access to specialist advice, and the thousands of export opportunities on the great.gov.uk website.

[Sir Edward Leigh]

When I was a Minister at the Department of Trade and Industry, the Trade Minister had no control over trade policy—they just went on jollies around the world promoting trade. As we will now be stuck in the EU customs union for years to come, with no ability to make our own trade deals, will the Secretary of State change the name of his Department to the “Department for International Trade Promotion and Engagement with the Customs Union”?

[Dr Fox]

The Government’s intention is that we will leave the European Union in March, we will exit the implementation period in December 2020, and we will have a fully independent trade policy. We have already begun—and finished—the first four consultations on independent trade agreements with other countries.

[Stewart Hosie (Dundee East) (SNP)]

It is welcome that, under the draft EU withdrawal agreement, businesses that export to the EU can continue to discount tariffs, volumes, customs, fees and so on, but the documentation —this relates directly to future export strategy—says:

“the development of the United Kingdom’s independent trade policy will be the subject of the future relationship negotiations.”

Given what we have seen so far, that effectively means that the UK will not be able to strike differentiated deals with third countries with which the EU currently has a deal. Given that that contradicts precisely everything that the Secretary of State has been saying, why has he not resigned?

[Dr Fox]

We have made it very clear that, in the areas where the EU already has an agreement, our first aim is continuity. We have also made it very clear that we have further ambition for bespoke agreements with those countries.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

One key part of the Government’s strategy is to build an extensive business-to-business network of exporters. What progress has been made on that? In particular, what role are business organisations playing so that we can foster such a network?

[Dr Fox]

One of the demands of the business community during the consultation was to give them better online communities so that they can speak to one another. We discovered that businesses did not necessarily want to talk to Government advisers, but wanted much more to speak to those who had faced similar business challenges and to ask how they had overcome them. That is under way, and we have recruited more staff to make that happen.

[Alex Chalk (Cheltenham) (Con)]

2. What recent assessment he has made of trends in the level of foreign direct investment.

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[Jim Shannon (Strangford) (DUP)]

7. What recent discussions he has had on trade and investment with the Chinese Government.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

I have made five visits to China this year. The most recent was when I led the UK delegation to China’s International Import Expo in Shanghai this month, supporting British firms to sign deals worth over £2 billion.

[Sir Desmond Swayne]

How are we doing in terms of goods and services, and how does that compare internationally?

[Dr Fox]

Our ratio of goods and services exports to the world outside the European Union is roughly 50:50. Eighty per cent. of our exports to China are goods, which suggests that the Chinese service market is not as open as it should be. Therefore, much of our effort is based on trying to encourage the Government of China to open up its services, which of course would be of benefit to the United Kingdom, the world’s second biggest services exporter.

[Jim Shannon]

Let me put on record my thanks for the work that the Minister and others have done to secure the £250 million deal for Lakeland Dairies’ milk products over a five-year period, which secures jobs as well.

In the past 10 years alone, China’s GDP has tripled. What assessment has the Department made of the potential trade and investment opportunities for the UK, with special reference to the agri-food industry?

[Dr Fox]

We are conducting a joint trade and investment review with China as part of looking ahead to deepen that relationship. Under the UK-China Joint Economic and Trade Commission, we lobby for increased market access sector by sector. I am grateful to the hon. Gentleman for his comments; it is not the highest publicity aspect of the Department for International Trade, but opening up a sector worth quarter of a billion pounds to Northern Ireland is a big achievement.

[Victoria Prentis (Banbury) (Con)]

Last year, British exports to China grew by 28%. What assessment has the Secretary of State made of how that trajectory will rise over the next few years?

[Dr Fox]

We know from a number of consumer surveys that about 60% of Chinese consumers say that they would pay a higher price for produce just because it is made in the United Kingdom. We are associated with the quality end of the global market, which is the rising market in China, and I expect our exports there to continue to grow apace.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

4. What steps he is taking to protect the creative industries in any future trade agreements after the UK leaves the EU.

[Sandy Martin (Ipswich) (Lab)]

6. What steps he is taking to protect the creative industries in any future trade agreements after the UK leaves the EU.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

The UK is home to a world-leading creative industries sector, which we will continue to support as part of our modern and ambitious trade policy. UK creative industries exported £40.2 billion of goods and services in 2016, and we recently completed a public consultation that will inform our future approach in trade agreements.

[Bambos Charalambous]

Can the Secretary of State reassure the creative industries that professional equipment such as musical instruments will not be subject to additional documentation requirements and tariffs at the border?

[Dr Fox]

That is exactly what we are seeking to achieve in the agreement the Prime Minister reaches—I take it that the hon. Gentleman is referring to the European market. Not only do we want to secure continued tariff-free EU access, but we want further liberalisation so that we increase potential global trade, too.

[Sandy Martin]

Can the Secretary of State confirm that trade in the creative industries of the EU will benefit from reciprocity of regulation on licensing and collective rights management?

[Dr Fox]

On services, we want an open and liberal arrangement with the European Union that goes well beyond the current World Trade Organisation commitments that both sides have, so we will want not just continuity of liberalisation, but an increase.

[Chris Elmore (Ogmore) (Lab)]

May I make a particular plea for the gaming sector so that BAFTA-winning companies such as Wales Interactive, which is in my constituency, can continue to thrive, whether we do or do not leave the European Union?

[Dr Fox]

We will be leaving the European Union. It is important to note that sometimes the creative industries sector is generally underappreciated for the contribution it makes to the earnings of this country, not only through exports—I mentioned the £40.2 billion of goods and services exports—but through the income it generates for the United Kingdom. It is an important sector, which is why we put it at the heart of not only our industrial policy, but our trade policy.

[Judith Cummins (Bradford South) (Lab)]

The Society of Authors has called on the Government to ensure that copyright is not used as a bargaining chip in trade negotiations. Any future deals must ensure that international copyright treaties are applied by the book; anything else would risk damaging this important and iconic sector. Will the Secretary of State still be here to reassure British authors, the reading public and other creative industries that our gold standard copyright regime will be protected post Brexit?

[Dr Fox]

I should probably declare an interest as someone who has published a book and receives royalties, and who takes an interest in copyright. I and all Secretaries of State will be here to ensure that copyrights are protected.

[Daniel Zeichner (Cambridge) (Lab)]

5. Whether food and agricultural imports will have to meet the same (a) food safety and (b) sanitary and phytosanitary standards as domestic products under new free trade agreements after the UK leaves the EU.

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[Liz McInnes (Heywood and Middleton) (Lab)]

11. If he will ensure that a gender-responsive analysis is conducted at each stage in the development of new trade agreements after the UK leaves the EU.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

I am committed to ensuring that UK trade policy supports gender equality. I will be publishing scoping assessments on each new free trade agreement and these will consider the effects of concluding trade deals on different groups, including gender groups.

[Liz McInnes]

I thank the Secretary of State for that answer, but what policy measures will he put in place to ensure that the sustainable development goals are met, particularly goal 5 to ensure equality for women and girls?

[Dr Fox]

The hon. Lady raises a very important point. It was one of the points we considered at the World Trade Organisation meeting of Trade Ministers in Buenos Aires. We looked at a study showing that of companies that trade only offline, four out of five are owned or run by men. Of those that run only online, four out of five are run or owned by women. This indicates that e-commerce is one of the prime development tools that we can use. The liberalisation of e-commerce and creating a global network of regulation is therefore one of the best ways we can combine trade and development policy, specifically to help women experience the benefits of the global economy.

[Kerry McCarthy (Bristol East) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

My Department is responsible for foreign and outward direct investment, establishing an independent trade policy and export promotion. Later today, the Board of Trade will meet in Wales for the first time in history, jointly hosted by my right hon. Friend the Secretary of State for Wales. As the President of the Board of Trade, I can today announce a £240 million investment drive in Wales, which will create thousands of jobs. The Board of Trade will also today announce the launch of the UK’s first energy investment portfolio, worth an estimated £5 billion.

[Kerry McCarthy]

Exporting companies in my constituency have told me that the Trade Secretary actually asked to meet them, but on condition that they did not discuss Brexit. Even more ludicrously, the Brexit Secretary—not the one who has just resigned, but the one who resigned before that—also said he wanted to meet them, but on the same condition. It is only £1 to go over Clifton suspension bridge from the right hon. Gentleman’s constituency into Bristol. If I offer to pay that quid for him, will he come to Bristol and tell our exporting companies what the hell is going on?

[Dr Fox]

The companies in Bristol seem to know already what is going on, without requiring any contribution from the hon. Lady—financial or otherwise. They are not only creating huge numbers of jobs, but are among the best export hubs in the whole of the United Kingdom, showing excellence in whole areas from the creative industries to aerospace. She need not worry too much.

[Chris Davies (Brecon and Radnorshire) (Con)]

T3. Will my right hon. Friend inform the House what plans his Department has to support Small Business Saturday?

[Dr Fox]

There are a number of events up and down the country. I will be hosting events in my own constituency, using the export hub. A number of Members will already have used the hub in their own constituencies. This is a great initiative, and it is a chance for MPs of all parties to show just how much support they give to small businesses. I know that a number of MPs hosted events up and down the country last year. I will be doing so, and I urge my hon. Friend to do so, although I am sure he requires no urging whatsoever. I hope that Members on both sides of the House will use this opportunity to celebrate the success of small business.

[Tom Brake (Carshalton and Wallington) (LD)]

T2. A few days ago I met the ambassador of a very large country in the far east. The UK is his country’s trade gateway to the European Union, but clearly it will no longer be that after we have left. How will the Secretary of State safeguard existing business and trade with that country?

[Dr Fox]

We have set out our export and investment strategy, and we are one of the few countries in the world that are seeing a rise in investment at a time when foreign direct investment is dropping by 41%. We currently have one of the biggest increases in exports, and our trade policy and new system of trade commissioners will ensure increased levels of contact with Governments in all countries, including the one that the right hon. Gentleman failed to tell us the name of.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

T5. Will the Minister update the House on what further steps are being taken to enable future trade deals?

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[Dr Fox]

The United Kingdom is committed to the joint comprehensive plan of action, and we want Iran to derive the economic benefits of that agreement. As the hon. Gentleman knows, there are two particular difficulties for British companies. One is access to finance for doing business in Iran, and the second is that it is often difficult for companies to know who the end point they are dealing with is, and whether they may in fact be part of the regime that would require sanctions to be applied. We work with British businesses to try to help them, but we understand that it is a real minefield.

[Mr Speaker]

Trudy Harrison—not here.

[Neil Parish (Tiverton and Honiton) (Con)]

T7. Small and medium-sized businesses often find it difficult to export because of the rules and regulations in many of the countries they export to. What more help can my right hon. Friend’s Department give to those companies to get access to those markets? Growing our exports is great for our economy.

[Dr Fox]

My hon. Friend makes a useful point, and we have identified 400,000 businesses that could be exporting but do not because of their fear, or lack of understanding, of the markets to which they would export, and their cultural and regulatory frameworks. That is why we have established the framework of our trade commissioners around the world, and why we have put members of UK Export Finance in those markets, so that they can gain expertise in the financial areas that companies will enter, and will be there to advise companies in those markets.

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

The north-east is the only region in the country that still exports more than it imports. That involves large companies such as Nissan, as well as many great small start-ups and businesses that cannot afford expensive lawyers or management consultants. What specific guidance is available to those companies on how to continue and increase trading post-Brexit?