Oral Answers to Questions

Liam Fox Excerpts

Thursday 29th March 2018 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

1. What assessment he has made of the effect of the UK leaving the EU on food and drink exports.

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

In 2017 the UK exported more than £22 billion-worth of food and drink products to the world, an increase of almost 10% on the previous year. When we leave the European Union, as we will exactly one year today, we will free UK farmers from the constraints of the common agricultural policy and provide huge opportunities for Scottish businesses in emerging markets, where demand for quality produce is high.

[Peter Grant]

Despite the brave words of the Secretary of State, he knows as well as we all do that the Scottish fresh food industry is in crisis because there is nobody to pick the fruit—his Government’s policies are deterring people from coming to Scotland to work. Can he give us just one example of a country anywhere in the world that has given a guarantee that, after we leave the European Union, Scottish food exports will be treated in exactly the same way as they are in the European Union’s market of half a billion people? Just one example, please.

[Dr Fox]

For produce such as salmon, our exports are almost exactly 50% European Union and 50% non-European Union. Salmon exports to Japan, Taiwan and Vietnam are up 63% in the past year.

[Mr Philip Hollobone (Kettering) (Con)]

Weetabix, the great British breakfast cereal made in Burton Latimer near Kettering, gets all its wheat from farmers within a 50-mile radius. It was a famous British brand even before we joined the EU, and it will remain a famous British brand after we leave the EU. Will not the prospects for exporting more Weetabix be enhanced once we leave?

[Dr Fox]

Our exports are largely determined by the growth of markets, and the International Monetary Fund says that 90% of global growth in the next 10 to 15 years will be outside the European continent. That is where the big possibilities for UK exporters are, including in food and drink.

[Kerry McCarthy (Bristol East) (Lab)]

The Minister’s colleagues are fond of talking about pork markets in China, but I urge him to pay attention to the potential pulses market there. The British Edible Pulses Association is keen to export faba beans to China, but the Department for International Trade is not talking to the BEPA at the moment. The Chinese want these beans, but there are some technical obstacles. I urge the Minister to respond to the correspondence and let us get this pulses market moving.

[Dr Fox]

I am keen to ensure that that market is fully exploited. If the hon. Lady wants the representatives to speak directly to one of our Ministers, we would be happy to speak to them to see whether there are any technical impediments that can be swept away.

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

What has been the impact of the Food is GREAT campaign?

[Dr Fox]

To get more people around the world to understand that high-quality British produce is a world beater.

[Thangam Debbonaire (Bristol West) (Lab)]

2. If he will hold discussions with the Secretary of State for Digital, Culture, Media and Sport and representatives of the creative industries on trade in that sector with EU countries after the UK leaves the EU. [R]

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[David Hanson (Delyn) (Lab)]

7. What assurances he has received from his counterparts in the US Administration that the section 232 tariffs imposed by that country on steel and aluminium imports will not apply to UK exports.

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

Although we welcome the United States granting an EU-wide exemption from the tariffs applied under section 232 for a limited time period, we continue to argue that this is not an appropriate mechanism to deal with justifiable concerns in relation to the overcapacity of steel worldwide.

[David Hanson]

Some 15% of UK steel goes to America, and, quite frankly, a pause on the imposition of tariffs is simply not good enough. What steps is the Secretary of State taking to make sure that that pause becomes permanent?

[Dr Fox]

We are working with the European Union to ensure a permanent exemption, and I spoke to Commissioner Malmström yesterday. On the specific case of the United Kingdom, the UK is responsible for only 1% of American steel imports. Much of that is high quality steel, which the United States does not manufacture itself. Some of our steel goes to American defence projects, which means that it would be quite absurd to exclude the United Kingdom, or to apply tariffs to the United Kingdom, on the basis of national security.

[Chris Elmore (Ogmore) (Lab)]

13. I welcome the assurance that section 232 tariffs will not apply to UK exports, but, ultimately, any tariffs will have a significant impact on prices here and could have a knock-on effect on those working in the steel industry, including in Tata Steel at Port Talbot, which neighbours my constituency. If those tariffs are implemented, what additional support will the Government provide for the industry to help deal with the damaging tariffs imposed on workers?

[Dr Fox]

The hon. Gentleman is right: there will be a knock-on price effect and there is also likely to be a displacement effect in the global steel market, for which we may have to look at imposing safeguard measures; along with the European Union, we would do so. He is also right that there would be a knock-on price effect in the United States, too. It does not make any sense to protect 140,000 steel jobs in the United States and see prices rise for the 6.5 million US workers who are dependent on steel.

[Nic Dakin (Scunthorpe) (Lab)]

I thank the Secretary of State for meeting steel MPs this week. Will he say a bit more about the safeguards that he will try to ensure are in place against diversionary dumping as a result of this action by the United States?

[Dr Fox]

I am grateful to the hon. Gentleman for his comments. As he knows, our aim, along with our European Union partners, is for the tariffs not to be applied in the first place. We argue that section 232 is not an appropriate means of doing so. If we want to deal with the over- production of steel—particularly Chinese overproduction —the best way to do so is through the G7 steel forum, where there are 28 outstanding recommendations to which we are still awaiting a Chinese response.

[Bill Esterson (Sefton Central) (Lab)]

UK steel faces a very real threat from dumping as a result of these US tariffs, but the Conservatives in the European Parliament led the group of MEPs that consistently blocked EU action against dumping. As the Manufacturing Trade Remedies Alliance says, in the Trade Bill—which has mysteriously disappeared—the Secretary of State is proposing the weakest trade remedies system in the world. It is simply not good enough. When is he going to stand up for the UK steel industry and for UK steel jobs?

[Dr Fox]

It is hard to know where to start when there are so many wrong facts in a single question. Let us leave aside the European Parliament. It was the Labour party in this Parliament that voted against the customs Bill and the Trade Bill, stopping us creating a trade remedies authority in the first place. The Trade Bill itself only sets up the trade remedies authority; it does not set up the regime.

[Several hon. Members rose—]

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

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 on export promotion. Yesterday I chaired the 10th UK-Brazil Joint Economic and Trade Committee, where we signed memorandums of understanding on infrastructure, innovation and trade facilitation.

[Mr Sheerman]

The Chinese Government recently turned the tap on exports of waste plastic to China. That has made a fantastic and very disturbing difference in the chemical market in Britain. If the Chinese Government did the same in higher education, what would be the impact? Has the Secretary of State done any analysis of that?

[Dr Fox]

I had discussions in China only last week about exporting UK educational expertise. There is a huge appetite for that around the world, because there is an increasing acceptance that it is the gold standard. In fact, UK exports of education last year outstripped the City of London’s insurance business and continue to grow with Government support.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

T2. Will the Secretary of State reassure my constituent, Simon Bainbridge, who is one of the finest producers of Northumbrian lamb, that lamb sales will not be forgotten in the new free trade agreements?

[Dr Fox]

Far from being forgotten, advocating further exports of high-quality UK produce is at the top of the Government’s agenda. I can tell my hon. Friend the good news that the latest international market to open up to British lamb is Saudi Arabia, with enormous potential.

[Bill Esterson (Sefton Central) (Lab)]

GKN has total sales of £10.4 billion, £9 billion of which are outside the UK. Profits from its operations in 30 countries around the world are repatriated to the UK. It will not be much of a global Britain if the Secretary of State’s approach is to stand idly by while a business like GKN that is so vital to our international trade is allowed to be subject to a hostile takeover that can lead only to its break-up and sale. Why has he stayed so silent on such a crucial issue for our trading prospects?

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[Chris Elmore (Ogmore) (Lab)]

T3. The dumping of steel from states including China has had a detrimental impact on the steel industry in the UK. Ahead of the further dumping that is anticipated when the US tariffs come into force, Canada has announced that it will be offering extra powers for border security checks to crack down on cheap steel. What assessment has the Secretary of State made of this policy?

[Dr Fox]

I rather feel that I answered this question earlier. The EU will look to see whether we need to introduce safeguarding measures as a consequence of any diversion. We are working closely with our European partners to assess what the potential may be and what the joint EU response would need to be consequently.

[Alberto Costa (South Leicestershire) (Con)]

T6. The Secretary of State has recently returned from Hong Kong and mainland China. Now that we are leaving the EU customs union and single market, what more trade can we do with these countries to ensure that our businesses are not left worse off?

[Dr Fox]

I am happy to tell my hon. Friend that at the festival of innovation last week we had 284 UK businesses and seven universities with us, all of which were able to discuss future partnerships and sponsorships. There was a very warm welcome, and we actually began the initial discussions with the Government of Hong Kong about entering into a future trade agreement on services.

[Matt Western (Warwick and Leamington) (Lab)]

T5. Given the less than successful outcome of the recent negotiations on behalf of UK fishermen, what hope and reassurances can the Secretary of State provide for farmers such as those in my constituency that future negotiations will make them better off outside the EU?

[Dr Fox]

The best hope for British farmers is to be set free from the constraints of the common agricultural policy and to start to produce for export markets. There is a huge demand out there for UK food produce. The high standards that we have in this country, which we will maintain, are in themselves a kitemark for British produce.

[Luke Graham (Ochil and South Perthshire) (Con)]

At a recent Public Accounts Committee hearing, the permanent secretary at the Department for International Trade confirmed that although there are eight regional offices for the Department in England, there are none in Scotland. Will my right hon. Friend meet me to discuss adequate resourcing for the DIT in Scotland?

[Dr Fox]

I met our DIT staff in Glasgow relatively recently. The point is that the Department for International Trade is a UK Department. It is there to help the trading interests, export interests and inward investment interests of the whole of the United Kingdom. Trade is a reserved matter.

[Mary Glindon (North Tyneside) (Lab)]

T7. The north-east is a net gainer from the EU, and 60% of our exports are to EU countries, but the region is set to be worst off after Brexit. How will the Department make sure we do not lose out as part of the Government’s global north vision?

[Mr Peter Bone (Wellingborough) (Con)]

Can the Secretary of State tell the House what he will be doing in 365 days’ time?

[Dr Fox]

Watching the clock.

[David Linden (Glasgow East) (SNP)]

The liquid gold that is Scotch whisky is a major export good for our economy, but so far in the EU negotiations we are still not getting clarity on geographical indications, which many other drinks benefit from as well. When will we get clarity on GI for Scotch whisky and other drinks that we enjoy?

[Dr Fox]

It always comes round to whisky at some point in these discussions on a Thursday morning. As the hon. Gentleman will know, the Government accepted that we would roll over the EU treaties that exist at the present time, including those on GIs. It is a pity that he voted against that in the House of Commons.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The ceramics industry stands ready to play its part in helping to boost global exports from the UK, but the reciprocal arrangement we need for that is protection from Chinese dumping of tiles and tableware. Will the Secretary of State ask his Cabinet colleagues to look favourably on the amendments that I have tabled to the customs Bill, which would ensure that the protections we currently have in Europe were written into British law?

[Dr Fox]

The hon. Gentleman is right about his amendments, but his party voted against setting up the trade remedies authority that would implement them. He cannot have it both ways.

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

The African continental free trade area agreement was recently signed. Will the Secretary of State assure me that economic development and fair trade will be at the heart of the free trade agreements he looks for?

[Dr Fox]

I am grateful to the hon. Lady for her question. It is very important that we tie together better than we have in the past our trade policy and our development policy. The Secretary of State for International Development and I will be making some announcements on exactly how we can do that, and we will be discussing at the Commonwealth Heads of Government meeting with some of the relevant trade partners exactly how we can make that happen.

[Mr Speaker]

Finally, in one short sentence without semi-colons or subordinate clauses, Wera Hobhouse.

[Wera Hobhouse (Bath) (LD)]

The EU has around 60 trade agreements with third countries. How many trade agreements with those countries does the Secretary of State estimate will have been agreed by December 2020?

[Dr Fox]

We hope all of them, but that means we have to transition them into UK law, which of course the hon. Lady voted against.

The Minister for Women and Equalities was asked—