Oral Answers to Questions

Liam Fox Excerpts

Thursday 23rd March 2017 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

1. What steps he is taking to strengthen the trade relationship in medical research and development with Israel.

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

As we begin our questions today, it is appropriate that we recommit ourselves to the values that this Parliament represents. Those who carry out such wicked and depraved actions as we saw yesterday can never triumph in our country. We must ensure that it is not violence, hatred or division, but decency, goodness and tolerance that prevail in our country.

The United Kingdom and Israel have a strong and important trading relationship, with nearly £5 billion in bilateral trade last year. We will continue to liaise closely on strengthening our trading links, including in important sectors such as medical research and development. The Life Sciences Organisation within the Department for International Trade currently supports companies wishing to export to Israel from the earliest stages of research and development through to manufactured medicines and medical devices.

[Bob Blackman]

I join you, Mr Speaker, and my right hon. Friend the Secretary of State in expressing sincere condolences to the victims of the terrible atrocity yesterday, and particularly to the family of PC Keith Palmer, who died so that we can carry out our democratic duties.

I thank my right hon. Friend for his answer. Companies in the Israeli economy are responsible for more than 100 million prescription drugs consumed in this country every year, and one has recently launched the ReWalk device, whereby people are encouraged to develop. Will he set out what further plans he has to ensure that we benefit from Israel’s pharmaceutical industry?

[Dr Fox]

UK industry will have a strong and important trading relationship with Israel, and the Department for International Trade supports and will continue to support life science companies from Israel that invest in the UK, and those seeking to export from the UK. The companies range from large multinationals to small and medium-sized companies such as the one my hon. Friend mentioned. We support all stages, whether that is by facilitating investment in research and development or setting up commercial operations, such as manufacturing, to export from the UK.

[Helen Goodman (Bishop Auckland) (Lab)]

I, too, express my condolences to the families of all those who died, and I wish the very best for those who were injured.

One notable thing about Israel’s trade relationship with the EU is that Israel is part of Horizon 2020. Has the Secretary of State considered whether, after Brexit, we should stay in Horizon 2020 and the European Medicines Agency?

[Dr Fox]

The latter decision will be part of our negotiations. We have made it clear that our intention is to roll over in full the trading agreements that the EU currently has with third countries. That will include Israel, on the basis of the current negotiations.

[Mrs Theresa Villiers (Chipping Barnet) (Con)]

In his trade discussions with the Israeli Government, will the Secretary of State convey the House’s sympathy for and solidarity with Israel, which has so often suffered the same kind of terrorist attack as we suffered in this House yesterday?

[Dr Fox]

What we have in common with all terrorist attacks is the fact that such acts of savagery against the innocent can never be justified or excused by creed or by politics.

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

May I echo the opening words of the Secretary of State and indeed the condolences that have been expressed for the police officer and the families of others affected by this tragedy?

The world-leading Institute of Cancer Research in the London borough of Sutton already does a lot of work with Israel. Can the Secretary of State confirm whether the post-grads who work at the institute, a third of whom come from the European Union, will be able to carry on working in those projects for years to come?

[Dr Fox]

The Government have already made it clear that the United Kingdom wishes to see an early resolution on the status of EU citizens. Those who collaborate with our research institutes do so on the basis of the quality of the research, and I am sure that that will continue.

[Sir Henry Bellingham (North West Norfolk) (Con)]

3. What assessment his Department has made of the effectiveness of the WTO trade facilitation agreement.

[Suella Fernandes (Fareham) (Con)]

4. What assessment his Department has made of the effectiveness of the WTO trade facilitation agreement.

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

The World Trade Organisation agreement on trade facilitation entered into force on 22 February 2017 once two thirds of WTO members had accepted the new agreement. This is a very significant event. Once fully implemented, the agreement could add more than £70 billion to the global economy, and of that we expect a benefit to the UK of up to £1 billion.

[Mr Speaker]

I should say for the benefit of the House, because there was a quizzical air in the Chamber, that Question 2 was withdrawn. That is a situation which is not dissented. I can see that the hon. Member for Weaver Vale (Graham Evans) is in his place, but the question was withdrawn.

[Sir Henry Bellingham]

I am very grateful to the Secretary of State for the work he is doing to try to secure a bespoke trade deal, and to his Ministers for the work they are doing as well. We do not want to fall back on to WTO rules, but, if we did, what would happen to airlines, digital data flows and trade and services?

[Dr Fox]

There is a difference between some of the agreements mentioned, which are bilateral agreements, and WTO tariffs that largely apply to goods. We hope to get a comprehensive agreement with our European partners across all the sectors that my hon. Friend mentions so that we will see no interruption to the business as we have it today.

[Suella Fernandes]

The WTO trade facilitation agreement’s coming into force last month brought about great reforms such as reducing fees on imports and exports and quickening clearance procedures. What impact will the reforms have on UK businesses that are importing and exporting?

[Dr Fox]

UK exporters in particular will benefit from the customs reforms being introduced, and implementing the agreement will reduce delays at the borders of participating members and improve the trading environment for businesses engaging in international trade, making it easier and cheaper for UK businesses to export their goods across the globe.

[Jim Shannon (Strangford) (DUP)]

May I associate the Democratic Unionist party with the sentiments that have been expressed for the innocents who were murdered yesterday? Our thoughts and prayers are very much with those who were injured.

With the initial period of this agreement now under way, will the Minister determine how we can enhance and further build capacity in this area? Does he believe that lessons learned here can and will affect our approach to Brexit, trade and negotiations?

[Dr Fox]

As most European Union countries are already higher than the bar set by TFA, that will not have a huge effect on intra-European trade, but it will have a beneficial impact on European exporters, especially if they are exporting to markets such as sub-Saharan Africa, where the greatest benefit of the trade agreement is likely to be felt.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Will the Secretary of State give some reassurance to Welsh lamb and sheep farmers, who have faced 40% tariffs under WTO, and ensure that if we do have a trade agreement with New Zealand we will not be flooded with New Zealand lamb?

[Dr Fox]

When we get to the point at which we begin to have those discussions, we will want to take into account a balance between UK producer interests and UK consumer interests, and we will also wish to ensure that we are making a contribution to a global liberal trading environment that benefits everybody.

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

This agreement is potentially of greatest advantage to the least developed countries, in which we have put very considerable investment. Will the Secretary of State continue to drive forward that agenda?

[Dr Fox]

Yes, and we have actually invested a large amount of money in supporting the agreement itself and in ensuring that it can be introduced in as beneficial a way in as many countries and as quickly as possible, because, as my right hon. Friend correctly says, this agreement will have the greatest benefit to some of the poorest countries in the world, which is why the United Kingdom, under Governments of both parties, has been so supportive of it.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

For well over a century the UK has not had security of food supply, but has instead always relied on imports. What will WTO tariffs of up to 40% do for the price of food for hard-working families already squeezed by the Tory Government’s policies?

[Dr Fox]

The hon. Gentleman perhaps unintentionally raises this important point: where we have genuinely free trade it benefits consumers, and where we can have an open global trading environment, it is likely to make the incomes of those on low incomes in particular go further. We should welcome an open trading environment, which I hope the Scottish National party does.

[Sir David Amess (Southend West) (Con)]

5. What steps his Department is taking to help businesses build trading opportunities abroad.

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

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)]

The Department for International Trade has three tasks: promoting UK exports to support a growing economy that serves the whole country; maximising opportunities for wealth creation, including through overseas direct investment, to support the current account; and negotiating the best international trading framework for the UK outside the EU.

With your permission, Mr Speaker, I would like to acknowledge Sir Martin Donnelly, who leaves our Department after 36 years in the civil service. He is a great and distinguished civil servant who will be very much missed by my Department and more widely.

[Gavin Newlands]

Last weekend, we learned that the Secretary of State’s Department is secretly working on a 10-year transitional arrangement with the EU, based on the WTO general agreement on tariffs and trade. Will he confirm that the Scottish Government and all other devolved Administrations are being consulted so that the interests of all the nations of the UK are represented, should a trade deal not be reached in time?

[Dr Fox]

The Department is not working on a secret agreement with anybody, including the European Union. I think that the hon. Gentleman is referring to press reports about the possible use of WTO rules to ensure a smooth transition at the point when the United Kingdom leaves the European Union.

[Peter Aldous (Waveney) (Con)]

T2. There has been considerable investment in the offshore wind sector off the East Anglian coast in recent years. With article 50 being triggered next Wednesday, will the Minister set out the Government’s plans to strengthen the UK’s position as a world leader in the sector, and to attract global investment in innovation and research, so that local businesses are well placed to win contracts at home and overseas?

[Barry Gardiner (Brent North) (Lab)]

Now that the Secretary of State has revealed to The Sun his plans for a trade Bill in the Queen’s Speech, will he do Parliament the courtesy of publishing a trade White Paper that sets out clearly what markets he wishes to liberalise and what measures he will take in future trade agreements to protect and enhance International Labour Organisation principles, sustainable development, human rights, environmental protection, intellectual property rights, food standards, future options on state-owned enterprises and the ability to nationalise particular sectors? If he develops an informed, consultative international trade policy, the Government may be able to restore confidence that they are holding trade dialogues that are backed by a clear and strategic plan.

[Dr Fox]

The hon. Gentleman raises an important point. Should the Government intend to introduce legislation on this issue in the Queen’s Speech, we would want a consultative process so that stakeholders could make their views known. It is important that we do that in a very collegiate way, because that is, as he said, the way to maintain and maximise confidence.

[Nigel Mills (Amber Valley) (Con)]

T4. The aerospace sector is of great importance in Derbyshire. What steps are the Government taking to promote the UK’s excellence in this sector around the world?

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[Henry Smith (Crawley) (Con)]

T5. What discussions has my right hon. Friend had with Commonwealth countries about trade and investment opportunities?

[Dr Fox]

Just over a week ago, we held our first conference with Commonwealth Trade Ministers. That gave us an opportunity to look at how we might maximise intra-Commonwealth trade and at the differences between our trading systems. That will help us to move towards greater consistency in the rules that we apply so that all in the Commonwealth can get even greater benefit from a system that is growing faster than the global economy and should be much more beneficial.

[Heidi Alexander (Lewisham East) (Lab)]

T7. When will the Government notify other contracting parties to the European economic area agreement of their intention to withdraw from the EEA?

[Dr Fox]

As we withdraw from the European Union, we will be having continued discussions with our partners about how we intend the process to be notified.

[Tom Pursglove (Corby) (Con)]

T6. What early consideration are Ministers giving to product standards?

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[Graham Evans (Weaver Vale) (Con)]

What influence can my right hon. Friend bring to the showcasing of great British beer in embassies around the world?

[Dr Fox]

We give great priority to all great British exports, and let me give my hon. Friend a personal commitment that I will take an unusually strong personal interest in the request that he makes on the regular trips that I intend to take in the coming months.

[Kirsten Oswald (East Renfrewshire) (SNP)]

T8. My constituent Heather Burns works in the digital economy. She has only ever known a borderless, connected world of work. Can the Secretary of State reassure her that he understands the difficulties that Brexit is likely to cause for this very globally focused industry? What action is he going to take to prevent problems from occurring?

[Dr Fox]

One problem that we have faced in recent times is that although the European Commission has been relatively forward-leaning on digital issues, European Union members have prevented the Commission from taking forward some of the measures of liberalisation that would, in fact, help this country and others. As we leave the European Union, we will want to see what advantages there are for the United Kingdom in liberalising our economy, especially so that the digital economy and e-commerce can flourish.

The Minister for Women and Equalities was asked—