Oral Answers to Questions

Liam Fox Excerpts

Thursday 20th December 2018 Commons Chamber

[Mr Jim Cunningham (Coventry South) (Lab)]

6. Which countries that the EU has a trade agreement with have notified his Department of restrictions on their ability to offer the same terms in a future trade agreement with the UK.

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

We will replicate existing EU free trade agreements and their preferential effects with partner countries as far as possible, while making the technical changes needed to ensure that agreements can operate in a bilateral context. We will inform Parliament and the public when agreements have been signed.

[Tom Brake]

First, I wish you, Mr Speaker, other Members and staff a very merry Christmas.

I would like to do something that I do not often do: thank the Secretary of State, his Ministers and his staff for organising a very helpful series of all-party briefings to Members. They are very welcome and informative.

The Secretary of State will know that as a result of our EU membership, we have 35 free trade agreements in place, 48 partly in place, 22 pending, and 100 sectoral arrangements with the US that go beyond World Trade Organisation rules. I would like to hear the Secretary of State say precisely when he expects all those to be rolled over.

[Dr Fox]

I am grateful to the right hon. Gentleman for his comments. It has been extremely useful to have been able to raise, across the House, the understanding of complex trade issues that have not always been within the UK Government’s remit in recent years.

As the right hon. Gentleman rightly says, there are a number of agreements. My Department is responsible for some of them, some are the responsibility of the Department for International Development, and some are the responsibility of the Foreign and Commonwealth Office—they cut right across the whole Government. We are making very good progress across a whole range of them. Of course, we have now initialled the first of those major trade agreements, with Switzerland, which is responsible for almost a fifth of the total trade within those agreements. Others will follow. The discussions are very often commercially quite sensitive, so we will inform the House when we have signed agreements, and not before.

[Mr Jim Cunningham]

Mr Speaker, like the right hon. Member for Carshalton and Wallington (Tom Brake), I wish you, the staff, Ministers and everybody else a merry Christmas and a happy new year. Have any countries indicated a preference for the UK delaying Brexit without a deal?

[Dr Fox]

Not directly in the discussions that I have had with other countries, but there is clearly a desire to have an agreement, so that there is time during the transition of these agreements before they become a more bespoke relationship. The two-year implementation period set out in the Government’s proposals would enable that, so that is clearly preferable for both sides.

[Mr Philip Hollobone (Kettering) (Con)]

Can the Secretary of State confirm that if we leave with no deal, the sun will still rise on 30 March, Britain will remain a premier global trading nation and the current booms in exports and inward investment are set to continue?

[Dr Fox]

I am grateful to my hon. Friend for his usual patriotic and optimistic tone. He is right that the country is in the middle of an export boom; our exports are at an all-time high. In the first six months of the year, according to the United Nations Conference on Trade and Development, the United Kingdom was second only to China in inward investment. It is truly a very positive picture, and we will be able to build on that, whatever our relationship with the European Union.

[Barry Gardiner (Brent North) (Lab)]

On behalf of our Front Benchers, may I extend Christmas greetings, particularly to the Secretary of State and his team? Mr Speaker, in Prayers this morning, your chaplain referred to the perseverance of the wise men; I think we all need that.

What assessment has the Secretary of State made of potential trade partners being unwilling to conclude new roll-over agreements with the UK because of most favoured nation clauses in agreements that they have concluded with other countries, to which they are unwilling to give the same trade preferences as they do to the EU? I am thinking of countries such as Singapore, which might be unwilling to give other Trans-Pacific Partnership countries the same access to their telecoms market that the EU has enjoyed.

[Dr Fox]

We discuss matters with other countries on a case-by-case basis. None of them has said to us that they do not want to continue to have an agreement with the United Kingdom; that is entirely understandable, as we are the world’s fifth biggest economy. Where we are able to translate elements into a bilateral context, we are doing so. We are working through those agreements. We are making good progress, and I will report to the House as and when each of them is signed.

[Kerry McCarthy (Bristol East) (Lab)]

2. What recent discussions he has had with members of the WTO on global (a) food security and (b) agricultural trade.

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[Kevin Foster (Torbay) (Con)]

3. What steps he is taking to consult on potential new free trade agreements.

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

This year the Department for International Trade ran four public consultations on potential UK free trade agreement negotiations with the US, Australia and New Zealand, and on potential accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—otherwise known, snappily, as the CPTPP. The insights gained from our consultations will inform our overall approach and our stakeholder engagement plans during these potential free trade agreement negotiations.

[Kevin Foster]

I thank my right hon. Friend for his answer. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership represents one of the most exciting opportunities for the UK post Brexit. Can he confirm that he has consulted with the necessary stakeholders and partners to ensure that we can begin talks on our country’s accession the moment we leave the European Union?

[Dr Fox]

Ministers have been engaging with all 11 CPTPP members. I have recently spoken to a number of Ministers, including from Singapore, Mexico, Canada, Australia, New Zealand and Japan, and the positive response to our engagement has been demonstrated by the supportive comments from some of the leaders of those countries—including Prime Minister Abe of Japan and Prime Minister Morrison of Australia—all of whom are very keen, as Prime Minister Abe said, to welcome Britain with open arms as soon as possible.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

But isn’t the problem for the Secretary of State that these potential new free trade agreements will not be concludable until we know what the UK’s trade relationship with the EU is? Does he not now have to admit that it is not possible, realistically, to sign or conclude free trade agreements with all those other countries, because it will be several years—maybe two, three or more—before we conclude our trade arrangement with the EU?

[Dr Fox]

Of course, the best thing that any of us could do is ensure that we have an agreement as soon as possible with the European Union, which Members of this House will be able to contribute to. Of course, if the House decides that we are not to come to an agreement with the European Union, there will be adverse consequences.

[Julia Lopez (Hornchurch and Upminster) (Con)]

It has been very difficult for the International Trade Committee to scrutinise progress in the roll-over of current trade agreements because of the sensitivity of the negotiations. Will my right hon. Friend look urgently into establishing a confidential Commons Committee that has access to restricted negotiating documents, to ensure proper scrutiny of any talks over new free trade agreements?

[Dr Fox]

My hon. Friend raises an important issue, which she has also raised in the Committee. The Government are looking at ways in which we can improve scrutiny without undermining the confidential nature of the discussions that we have. I will want to discuss the issues with the Opposition as well to see whether we can have a robust system that is also secure. That would be to the benefit of the whole House.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

A merry Christmas from Feltham and Heston to you, Mr Speaker and to everybody else.

This week, I attended an interesting seminar by Global Policy Insights on trade with the Commonwealth pre and post Brexit. The Commonwealth accounted for 8.9% of UK exports a couple of years ago—roughly the same as UK exports to Germany. Could the Secretary of State update the House on what discussions his Department is having with Commonwealth nations on the potential of free trade agreements and on what success he is having?

[Dr Fox]

The hon. Lady raises an important point. Of course, we have a number of agreements already with a number of Commonwealth countries and groups of Commonwealth countries, and we are close to signing one, which we will announce to the House shortly. However, we are also concerned about the level of intra-Commonwealth trade and how we can use that very large population, often with common legal rules, to enhance it. At the Commonwealth Heads of Government meeting in London, we set out our plans for a trade audit tool to help improve it, and we have had very positive engagement on that. There is tremendous opportunity inside the Commonwealth to allow countries to trade their way out of poverty, and we intend to ensure that that is made possible.

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

It is vital to forbear from agreeing a price before negotiations begin and to maintain the ability to walk away, isn’t it?

[Dr Fox]

Self-evidently.

[Stewart Hosie (Dundee East) (SNP)]

Last year, the National Institute of Economic and Social Research told us that leaving the single market would result in a loss of trade of between 22% and 30%, depending on the nature of the Brexit. It also told us that concluding deals with the BRIC countries and the main English-speaking economies would result in an increase in trade of 2% and less than 3% respectively. So although I wish the Secretary of State well in his future negotiations, is it not time to concede that there is no number of new free trade agreements or trade deals he can strike that can possibly compensate for the loss of trade with the European Union?

[Dr Fox]

First, it depends on our level of access to the European market. That is why the Government have put forward proposals to maximise our access to a European trade area. However, it also depends on growth in other markets and, as the International Monetary Fund has said, in the next five years 90% of global growth will be outside continental Europe. That is where the opportunities will be, and that is where Britain needs to be, too.

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

4. What proportion of his Department’s staff are supporting businesses that export to the EU in preparation for the UK leaving the EU.

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[Dr Rupa Huq (Ealing Central and Acton) (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. I am pleased to announce that this morning UK Export Finance has provided a loan of £27.9 million, under its direct lending facility, to support UK water and waste specialists Bluewater Bio to upgrade water treatment in Bahrain. This announcement shows the continuing demand for British expertise across the globe.

[Dr Huq]

Constituents have written to me to say that we should sit over Christmas to get a meaningful deal. That is not going to happen, so let me wish you a very good one, Mr Speaker.

Given the pictures of the Prime Minister with the Crown Prince of Saudi after Khashoggi was chopped into pieces, and our Government lavishing praise on Bangladesh, a country whose status has recently been downgraded from democracy to autocracy by several human rights non-governmental organisations—not to mention Trump stating that we drop what he calls “unjustified” food and agricultural standards before signing a UK-US trade deal—has not our desperation for bilateral post-Brexit trade blinded us to all ethical and moral considerations before the ink has dried on a single deal?

[Dr Fox]

Absolutely not. This country takes very seriously its international human rights and ethical responsibilities. In fact, I would go so far as to say that, rather than being an apologist, the United Kingdom is a great supporter and champion of those very values globally.

[Bob Blackman (Harrow East) (Con)]

T2. Mr Speaker, I am sure you will join me in condemning the mindless thug who threw a bottle at man of the match Dele Alli last night. I will indicate the 2:0 score so that you do not have to read my lips.With UK exports to Israel up 30%, what steps will my right hon. Friend take to ensure that we increase trade with Israel as we move forward outside the European Union?

[Dr Fox]

Israel is a very important trade partner for the United Kingdom, and our bilateral co-operation has increased. When I met Prime Minister Netanyahu a few weeks ago, we agreed to have a bilateral trade and investment conference in 2019, to increase those relations as far as possible.

[Bill Esterson (Sefton Central) (Lab)]

Merry Christmas to you, Mr Speaker, and to all staff and all Members.

Chambers of commerce across the country contribute to export success through the brilliant advice they deliver all year round. Their direct local knowledge and expertise is much better than the signposting on any website that the Secretary of State might care to mention. In the spirit of the festive season, will he take this opportunity to guarantee the renewal of the contract with the British Chambers of Commerce for the delivery of export advice?

[Dr Fox]

We constantly review the mechanisms by which we can give that advice. One of the things that came across clearly from our consultation on the export strategy was that businesses were looking for peer information rather than information from higher sources. That is why the Government have taken on extra staff for our online community for businesses, so that they can get real-time information from similar businesses.

[Rebecca Pow (Taunton Deane) (Con)]

T4. People in Japan, Singapore and China are getting a taste of Somerset, because Sheppy’s cider from my constituency of Taunton Deane is increasingly being exported to those countries, which is really exciting. Can the Secretary of State give us some news about the work we are doing with China on potential trade and investment?

[Dr Fox]

As part of the UK-China joint trade and investment review announced in January 2018, officials of both countries took part in the third series of technical discussions in Beijing in November. I am happy for my team to be promoting the benefits of Sheppy’s, but I want them to ensure that people also enjoy the wonderful taste of Thatchers, made in North Somerset.

[Mary Glindon (North Tyneside) (Lab)]

T3. According to the north-east chamber of commerce, businesses in the north-east are concerned about the future of international trade deals, and especially about rules of origin, after March next year. What can the Minister say to reassure our north-east businesses?

[Dr Fox]

That the House of Commons should vote for the Government’s proposal, which will deal with those very issues, to ensure that we get continuity of trade.

[Tom Pursglove (Corby) (Con)]

T5. I wish you, Mr Speaker, the staff of the House and all colleagues a very happy Christmas. What early assessment has my right hon. Friend made of UK exports in this festive period?

[Dr Fox]

British business continues to export strongly. For example, we are working with companies such as Hawkins & Brimble to maximise global retail opportunities. I am pleased to say that, thanks to help from the Department, the business will be lining the shelves of 300 stores in Canada and the United States with its range of male grooming products—a subject that I know is close to my hon. Friend’s heart—after securing £500,000 of contracts

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

How many freedom of information requests has the Secretary of State’s Department withheld on grounds of cost?

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[Nigel Huddleston (Mid Worcestershire) (Con)]

The UK Israel Tech Hub estimates that the tech partnerships that it has created have an economic impact on the UK of around £800 million. What can we do to continue to grow this mutually beneficial relationship?

[Dr Fox]

The Tech Hub has been a huge success and a great example of the sort of model that we should be looking at, but we hope to be able to expand that relationship through the trade and investment conference that we will hold in 2019, which will be a celebration not only of our record of trade with Israel, but of the future of our trade with Israel.

[David Hanson (Delyn) (Lab)]

Sheep farmers in my constituency export 92% of their produce to Europe and beyond, but have absolutely no idea what is going to happen to their product after 29 March next year. What comfort can the Secretary of State give those sheep farmers to allow them to enjoy a happy Christmas?

[Dr Fox]

Were there to be no deal, that would be a problem for the export of sheepmeat to Europe, so there is one clear answer available to the right hon. Gentleman, which is to support the Government’s proposal, which will enable his constituents to get the market assuredness that they want.

May I finish by wishing you, Mr Speaker, the Members of the House and particularly the staff of the House of Commons a very happy Christmas? Earlier the shadow Secretary of State mentioned the words about the wise men that we heard in Prayers this morning. We would do well to remember that if the wise men had not been carrying cross-border commodities of gold, frankincense and myrrh, we might not be getting the same messages we get today.

[Mr Speaker]

I thank the Secretary of State for his characteristic courtesy.