Oral Answers to Questions

Liam Fox Excerpts

Thursday 22nd February 2018 Commons Chamber

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

1. What recent assessment he has made of the effectiveness of the trade envoy programme.

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

The Prime Minister’s trade envoys do a great job engaging with countries where trade and investment opportunities have been identified. Last year, trade envoys helped contribute to export wins of more than £15.5 billion in their markets. Based on an outlay of just under £250,000 for the programme over the same period, each trade envoy, on average, supported £700 million in exports.

[Chris Davies]

Does my right hon. Friend plan to appoint any further trade envoys beyond those already appointed?

[Dr Fox]

That is the least disguised job application that I have heard in some time. There are 30 trade envoys covering 60 markets around the world. The programme is reviewed regularly in consultation with our overseas team and any new suggestions are put to the Prime Minister. I will let my hon. Friend know as soon as possible if any vacancies occur.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Before these trade envoys do anything else, will the Secretary of State bring them all together and allow them to have the same briefing from the CBI that many Members from all parties had this week? That CBI briefing on the impact of leaving the EU says that it will be a disaster for working men and women, industry and manufacturing up and down the country.

[Dr Fox]

As I often point out to the hon. Gentleman, the working men and women of his constituency had a very different view about the reasons for leaving the European Union. I make sure that our trade envoys get a much wider range of briefings than simply one—a highly suspect one in that case.

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[Mr Speaker]

There is more than one Field in the House, but there is only one Prisk.

[Dr Fox]

First, I pay tribute to the work that my hon. Friend has done. We have a growing and increasingly improving trade relationship with Brazil, but he is absolutely right that we require business to put exporting at its heart. The positive signs in recent times are that that is happening and we will export more than 30% of our GDP this year for the first time in a considerable while.

[Dr David Drew (Stroud) (Lab/Co-op)]

What parliamentary scrutiny is there of this programme?

[Dr Fox]

There is cross-party ability to look at the programme. We have an International Trade Committee and questions in this House, and I have just reported to the House the value that we think the programme has.

[Jeremy Lefroy (Stafford) (Con)]

As trade envoy to Ethiopia, last week I had a meeting at the African Union about the continental free trade area agreement, which is incredibly important for the future of all countries in Africa and for the United Kingdom. Does my right hon. Friend see roles for the trade envoy programme in engaging with these free trade areas, which cover more than one country?

[Dr Fox]

I would hope that our trade envoys, along with our posts in those various African countries, would understand the value that increased intra-African trade can bring both to those countries and in increased opportunities for UK exporters.

[Catherine West (Hornsey and Wood Green) (Lab)]

2. What estimate his Department has made of the number of new institutions required to replicate the terms of existing trade agreements with the EU after the UK leaves the EU.

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

3. Whether he plans to replicate the terms of EU free trade agreements in trade deals with Switzerland, Norway and Turkey after the UK has left the EU; and if he will make a statement.

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

As we leave the EU, the Government intend as far as possible to maintain the effects of existing EU free trade agreements and other EU preferential arrangements. That includes agreements with Switzerland, Norway and Turkey.

[Ruth Cadbury]

I am going to pursue the questions asked by my hon. Friends the Members for Hornsey and Wood Green (Catherine West) and for Bradford South (Judith Cummins), which the Minister for Trade Policy did not answer. In 2016, the Secretary of State told the International Trade Committee that he would prioritise securing an agreement with Switzerland. The current relationship between the EU and Switzerland is overseen by some 20 joint committees. Very specifically, how many of those committees will be replaced by UK-Swiss committees, and how far along in the process of setting up those institutions is his Department?

[Dr Fox]

I met Swiss Ministers in Geneva recently, and we discussed what the future arrangement would be. Clearly, how we oversee the arrangement depends on what the arrangement itself is, and that is currently under negotiation.

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

We do not need trade agreements to trade, do we?

[Dr Fox]

No.

[Bill Esterson (Sefton Central) (Lab)]

The Secretary of State has told us that he plans to replicate all the provisions of the trade agreements that the UK has, as a member of the EU, with Norway, Switzerland and Turkey. Those provisions include free movement of people in the cases of Norway and Switzerland, and a customs union with Turkey. Will the Secretary of State confirm that it is the Government’s policy to replicate all of them?

[Dr Fox]

In our transitional arrangements, we have made very clear that the key element is continuity. Until we create bespoke arrangements with those countries, we will maintain the provisions that exist today.

[Colin Clark (Gordon) (Con)]

4. What steps he is taking to strengthen UK trading relations with Australia, New Zealand and other Commonwealth countries in the Pacific.

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

5. What recent assessment he has made of the effect on UK trade of the UK leaving the EU single market and the customs union.

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

By leaving the customs union and establishing a new ambitious arrangement with the EU, we will be seeking to maintain as frictionless as possible trade in goods between the UK and the EU, and the freedom to forge trade relations with partners around the world.

[Joanna Cherry]

The Norwegians have a saying: “Nothing is in as much of a hurry as a dead fish on the back of a lorry.” Like Norway, Scotland exports most of the fish it catches to the EU, which is why Norway has chosen to be a member of the single market, in particular to avoid non-tariff barriers so the fish can cross borders quickly. What assessment has the Secretary of State made of the impact of leaving the single market on the Scottish fishing industry?

[Dr Fox]

Of course, the majority of Scotland’s exports go to the rest of the UK, not the EU. The hon. and learned Lady talks about the value of the single market; it is just worth pointing out that, despite our membership of the single market, we have had a growing trade deficit with the EU at a time when we have had a growing trade surplus with the rest of the world. We want to establish the conditions for all our exports from all parts of the UK to be able to access the growing markets of the world, and, as the International Monetary Fund has pointed out, 90% of global growth in the next 10 to 15 years will be outside Europe.

[Nick Smith (Blaenau Gwent) (Lab)]

What is the Secretary of State’s preferred method of ensuring frictionless trade between the Republic and the north of Ireland?

[Dr Fox]

Our preferred option is to do that through a widespread and liberal agreement in trade with the European Union, as set out in the Government’s memorandum in December.

[Alan Mak (Havant) (Con)]

6. What progress he has made on arrangements for the GREAT Festival of Innovation in Hong Kong planned for March 2018.

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

The GREAT festival will be held in Hong Kong from 21 to 24 March 2018. With more than 70 confirmed speakers, the festival will showcase the best of British innovation, the potential of the UK economy and the strength of our world-class service sector.

[Alan Mak]

Britain is becoming a world leader in artificial intelligence, big data and the fourth industrial revolution technologies that will power future export growth. Will my right hon. Friend ensure that those technologies will be widely promoted at next month’s festival?

[Dr Fox]

They will indeed be widely represented. For example, UtterBerry, an AI-based infrastructure monitoring technology that has been used in this country in projects such as the Thames tideway and Crossrail, will be showcased. The festival will be an opportunity for us to show off the best of British innovation in general.

[Gillian Keegan (Chichester) (Con)]

7. What progress he has made on his Department’s overseas direct investment strategy.

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

My Department has responsibility for export promotion, foreign and outward direct investment, and trade policy. I am delighted to inform the House that my Department has appointed the first three of our network of Her Majesty’s trade commissioners, and Richard Burn, Antony Phillipson and Crispin Simon will serve as trade commissioners for China, North America and south Asia respectively. They will develop and deliver strategies to ensure that we can take full advantage of leaving the European Union, the single market and the customs union.

[Rehman Chishti]

I thank the Secretary of State for that answer. What evidence is he seeing for growth in UK manufacturing exports to the wider world? I have just returned from a visit to Pakistan with leading British companies in my role as trade envoy to enhance trading between our two great countries; will the Secretary of State join me in paying tribute to Elin Burns and Matt Lister, our trade experts in Pakistan?

[Dr Fox]

I pay tribute to all those people. We are seeing a big rise in our manufacturing order books, not least on the back of our strong export performance. In recent times, we have seen the biggest growth in consistent monthly manufacturing numbers for some 30 years. The figures produced by the Office for National Statistics suggest that our exports now represent 30.3% of our exported GDP—the second highest figure on record.

[Barry Gardiner (Brent North) (Lab)]

Given the Government Front-Bench team’s uncharacteristic failure to welcome my hon. Friend the Member for Bradford South (Judith Cummins) to the Opposition Front Bench, I know that you would want me to do so, Mr Speaker.

Is the Secretary of State aware that the Food Standards Agency recently detained large quantities of out-of-date meat in a company called Norish Cold Storage? The meat is believed to have come from Ireland and South America. Given that Norish is the parent company of Town View Foods, one of the directors of which, Plunkett Matthews, was also a director of Freeza Meats, a company implicated in the Irish horsemeat scandal in 2013 and found guilty of meat-labelling fraud, will the Secretary of State urgently liaise with Ministers in the Republic of Ireland, the FSA here and the Food Safety Authority of Ireland to ensure the supply chain for this illegal meat is identified, that our sanitary and phytosanitary regulations are properly enforced and that those behind the illegal trade—

[Mr Speaker]

Order. I say to the hon. Gentleman that if the meat was previously hot, it would certainly be freezing cold by now.

[Dr Fox]

I was not aware of that particular allegation. This cross-Government issue is clearly not one entirely for my Department, but I will ensure that other Ministers are made aware of it.

[Philip Davies (Shipley) (Con)]

T3. There is immense potential for growth in bilateral trade and investment between the UK and Israel after we leave the EU. Does the Minister share my hope for yet greater levels of trade with the start-up nation, and will he update the House on the progress being made by the UK-Israel trade working group?

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[Hannah Bardell (Livingston) (SNP)]

Although my party does not want to leave the single market or the customs union, a properly planned and managed transition period is always top of the agenda for businesses across Scotland, particularly in our thriving food and drink sector. Does the Secretary of State agree with his own Government that a sensible transition period is required, or is he sticking to his cliff-edge position, which will have a devastating impact for businesses across Scotland and the UK?

[Dr Fox]

We believe across Government that the simplest way to get to the position that we will be able to enjoy, of leaving the single market and the customs union, is via a transition period that is carefully planned and that gives predictability to business.

[Several hon. Members rose—]

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[Dr Fox]

We have four working groups with the United States at the present time, and at the last one we announced a UK-US small and medium-sized enterprise dialogue. My hon. Friend will be pleased to know that the first dialogue on SMEs will take place next month and will involve more than 100 businesses as part of a very constructive process.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Remoteness of location in the UK is no constraint on the success of some of our malt whisky distilleries in Scotland. Can I tempt the Secretary of State or his Ministers to come and visit Old Pulteney in Wick or Glenmorangie in Tain? Will they do everything to secure the future prosperity of the distilleries in my constituency?

[Dr Fox]

I already have several invitations to visit distilleries, and I intend to take a very close personal interest in this particular sector.

[Edward Argar (Charnwood) (Con)]

T6. Further to his earlier answer, does my right hon. Friend agree that the prospects for future trade with our close friend and economic partner India remain very bright?

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[Chris Philp (Croydon South) (Con)]

T7. Does my right hon. Friend agree that free trade helps consumers by lowering prices and that free trade has been one of the biggest contributors to combating global poverty over the past 100 years? Will he embrace the opportunities created by Brexit to do free trade deals that will help consumers and British businesses?

[Dr Fox]

At the WTO this week, I again made the case for free trade, and the UK is a global champion of free trade. We tend to discuss our trade in terms of producers, but we must always remember that free trade is an enormous benefit to consumers in lowering prices, improving choice and increasing quality. Free trade has also been the route by which we have taken more than 1 billion people on this planet out of abject poverty in the past generation, which we should celebrate.