Oral Answers to Questions

Liam Fox Excerpts

Thursday 28th June 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

9. What steps his Department is taking to support businesses to invest overseas.

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

If I may, I would like to begin by paying tribute to my right hon. Friend the Member for Chelsea and Fulham (Greg Hands) for all the work that he did as our Minister of State and for helping to set up the Department. He is one of the very best Ministers that I have had the honour to work with in my whole time in this House.

Since April 2017, the Department for International Trade has actively supported UK companies, with over 50 outward direct investment deals in over 20 countries. With our help, companies from all over the UK have invested overseas in many sectors, including advanced manufacturing, infrastructure and energy.

[Maria Caulfield]

Sussex sparkling wine is beating French champagne in Parisian wine-tasting challenges. In my constituency we have English sparkling wine producers such as Rathfinny, Ridgeview and Breaky Bottom. What steps is the Department taking to help this industry to invest and export overseas?

[Dr Fox]

I know that my hon. Friend is a great champion of English wines in her constituency. In fact, Aldwick Court in my own constituency makes a very fine range of wines, Mr Speaker—I will attempt to get you a bottle to prove the point. We work closely with leading industry associations and producers to help to support English wine exports. A recent example of this was the festival of innovation in March in Hong Kong. Our team in-market arranged a bespoke programme of briefings and a high-profile tasting session to introduce a delegation of UK wine and spirit producers to potential buyers from around the world, very successfully.

[Mr Speaker]

It all sounds very exciting, I must say.

[Jim Shannon]

The Secretary of State may not be aware of the input of a Department for Environment, Food and Rural Affairs Minister on this matter, but Lakeland Dairies in my constituency is attempting to secure Chinese business but is having some difficulty due to red tape. What support is available to help businesses across the language and cultural divide, and to gain results that benefit us all and in particular Lakeland Dairies in my constituency?

[Dr Fox]

As the hon. Gentleman knows, there have been a number of questions about the ease of doing business in China and market access has been one of the questions raised. A new trade commissioner has been appointed, Richard Burn, in China, and our team will work continually with the Chinese Government to try to remove some of the barriers. If companies in the hon. Gentleman’s constituency face specific problems, I will be delighted to meet him to try to resolve them.

[Martin Vickers (Cleethorpes) (Con)]

Last month, the Department’s roadshow that encourages small businesses to invest overseas and export visited Immingham in my constituency, and it was greatly valued by local businesses. Does the Department plan to continue and expand that roadshow?

[Dr Fox]

Of course, we will continue to do that; it is a very successful programme. But perhaps more usefully we can help to get small businesses the finance they require to get into the exporting business. Last year, in a change from the previous pattern, 78% of all the UK export finance agreements were done with small and medium-sized enterprises in this country.

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

Has the Secretary of State looked at the impact of tariffs on British investments overseas?

[Dr Fox]

Tariffs in general are one of the areas we want to be able to look at when we leave the European Union. Of course the setting of tariffs is a legal power that we do not yet have. To be able to take full advantage of alternatives—reductions in tariffs, for example—this House will have to pass the customs Bill, which is coming back shortly. I hope that we can count on the hon. Gentleman’s support on that.

[Several hon. Members rose—]

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

Thank you, Mr Speaker.

May I ask the Secretary of State if he is not being a little complacent about the role of China in our manufacturing and other sectors? Does he realise that, when we encourage companies to export, some of the companies, like Syngenta in my constituency, are wholly owned by ChemChina and wholly owned subsidiaries of the communist Government in China? There is a greater number of British companies owned by the Chinese. Does that alter the sort of conversation he has with them?

[Dr Fox]

We believe in an open, liberal, global economy and, if we want to own companies overseas, countries overseas have to be able to own companies in this country. That is part of a liberal trading system, but that system requires a proper system of rules. That is why the World Trade Organisation needs to be strengthened and in some areas needs to be reformed, to ensure we have a global trading system that is fair and fit for all.

[Priti Patel (Witham) (Con)]

4. What discussions he has had with the Secretary of State for Transport on the potential merits for future UK trade of improved integration between road and rail infrastructure.

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

The Government’s transport investment strategy seeks to make Britain a more attractive place to trade and invest by improving the capacity and connectivity of Britain’s transport infrastructure. I know that, in my right hon. Friend’s own county, which has London Gateway, Tilbury and Harwich, she is a staunch campaigner for improved infrastructure and for more international trade and investment.

[Priti Patel]

To thrive as a global beacon for free trade, Britain has to have world-class infrastructure, so will my right hon. Friend the Secretary of State work across Government to bring in road and rail upgrades, but also the introduction of free ports and enterprise zones in order to turbocharge business, trade and investment opportunities post Brexit?

[Dr Fox]

Well-connected transport infrastructure is key to our trading capability. When it comes to free ports, as my right hon. Friend knows, I am personally very well-disposed towards the concept. It is one area where we can take potential advantage when we have the freedom to do so once we have left the European Union.

[Neil Gray (Airdrie and Shotts) (SNP)]

If he has not already done so, will the Secretary of State raise the potential merits of Scottish inclusion in the HS2 project with the Secretary of State for Transport?

[Dr Fox]

Increased transport infrastructure will benefit all parts of the United Kingdom, and I would be happy to take up the hon. Gentleman’s case with the Transport Secretary at any time.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

7. What assessment he has made of the proportionality of the EU’s countermeasures to US tariffs on steel and aluminium.

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

While we sympathise with US concerns regarding transparency and the overproduction of steel, we continue to argue that tariffs applied under section 232 of the Trade Expansion Act are not an appropriate solution for dealing with these issues. We will continue to seek a constructive, permanent resolution with the United States to avoid further escalation, which would only harm businesses, jobs and consumers in the United Kingdom and the United States.

[Mr Sharma]

After we have left the EU and turned our back on our trading partners, what steps will the Secretary of State’s Department take to ensure that the UK can stand up to aggressive trade practices?

[Dr Fox]

Far from turning our back on any trading partners, we are seeking a full, transparent, comprehensive and liberal trading agreement with the European Union, and we will seek others. When it comes to protecting British industries, we can do that only when we have a trade remedies authority in place, and I have to remind the hon. Gentleman that he and his party voted against the Trade Bill, which establishes that authority.

[Bill Esterson (Sefton Central) (Lab)]

The Secretary of State’s reluctance to support EU countermeasures to combat Trump’s trade war, and the Government’s opposition to every amendment that we proposed to the Trade Bill and the Taxation (Cross-border Trade) Bill, speak volumes about his Government’s true intentions. When will he give the trade remedies authority the board members it will need if it is to stand up for UK businesses and consumers? And when will he put an end to the impression that the UK’s Secretary of State would rather back Donald Trump’s policy of America first?

[Dr Fox]

That question was wrong on so many issues that I do not know where to start. Rather than being against countermeasures, the United Kingdom supported the European Union—as I have done several times in this House—in saying that we believed that what the United States did was incompatible with WTO law and that we were therefore against it. And it is the height of cheek to demand that the Government should put members on a board that the Labour party tried to prevent us from establishing in the first place.

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

8. If he will take steps to facilitate parliamentary scrutiny of future trade agreements.

--- Later in debate ---

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

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, for establishing an independent trade policy and for export promotion. I am delighted today to announce the appointment of Natalie Black, Emma-Wade Smith and Simon Penney as our new Trade Commissioners for Asia Pacific, Africa and the middle east respectively. May I also thank my departing senior private secretary, George Thomson? We do not thank our excellent civil servants nearly enough for the job that they do.

[Sir Desmond Swayne]

Will the Secretary of State adopt the trade policy of Her Majesty’s Opposition?

[Dr Fox]

Inasmuch as I am able to discern what it is, which the events of this week make extremely difficult, the answer would have to be no—not least because, in regard to trade, the Opposition Front Bench has become a caricature of a loony left party in seeming to regard Justin Trudeau as a lackey of global corporatism.

[Barry Gardiner (Brent North) (Lab)]

Ministers have made much today about the vote on the Comprehensive Economic and Trade Agreement earlier this week. I am not quite sure what they do not understand about no deal with Canada being better than a bad deal; I thought that in other areas that was actually their party policy.

I want to focus on the damning report on carbon emissions released today by the Committee on Climate Change. The Conservative Committee Chair, Lord Deben, set out a stark demand:

“Act now, climate change will not pause while we consider our options.”

In response, will the Secretary of State explain why, on the latest figures, 99.4% of the support that UK Export Finance gives to the energy sector goes to fossil fuels? Will he tell the House what steps he is now taking to redress that imbalance, to promote and support renewable energy and respect the Equator Principles, which his Department signed up to, about sustainability in global trade last year?

[Dr Fox]

When I saw the hon. Gentleman stand up, my heart sank, given that this is only a 30-minute session.

We use UK Export Finance to promote a whole range of environmental and trading issues—in fact, I was in discussions with Equinor in Oslo last week about how we can use UK Export Finance to further the use and export of renewables.

[Fiona Bruce (Congleton) (Con)]

T2. Following the excellent news this week that China has lifted its 20-year ban on UK beef exports, what action are Ministers taking to ensure that British farmers can make the most of this huge trading opportunity?

[Dr Fox]

Like the whole House, I am sure, I am delighted that the Chinese Government have decided to lift the ban. I would like to praise my own officials in helping to do that, although it would not have been possible if the Prime Minister had not raised the issue at the highest level during her visit to China.

I will be seeing how we can take advantage of the lifting of the ban when I visit China in August for the Joint Economic and Trade Committee. I hope that in future we will be able to take delegations of UK beef producers, so that we can seek to make the most of an incredibly large potential market.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

T4. The Government claim that they are aiming to promote British produce to the global market, post Brexit. On Sunday in Scotland, a strategy was launched to increase the value of fruit and vegetables to Scotland’s economy. The picking of that produce is heavily dependent on migrant labour from Europe; we simply cannot promote or export goods that are left rotting in the fields. What assurances can the Secretary of State offer this important sector that that essential labour force will be guaranteed?

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T3. Grants for trade stands at overseas exhibitions offer vital support for businesses looking to trade internationally. Will the Minister update the House on what grants might be available for the 2019 exhibition season?

[Dr Fox]

The Department will provide an update on the grants available for trade show attendance in 2019-20 later this year in the context of our forthcoming export strategy. My hon. Friend has made an important point, but we must also ensure that the help we give is targeted to produce the best results, not the greatest number.

[Paula Sherriff (Dewsbury) (Lab)]

T5. The Secretary of State has previously suggested that outward direct investment is often seen as a fig leaf for outsourcing jobs and cutting costs at the expense of domestic investment in jobs. Does his Department monitor the number of jobs lost in the UK as a result of decisions to invest overseas? If so, will he tell us what they are?

[Dr Fox]

I do find it strange that people think that foreign direct investment in the United Kingdom is a good thing, but that UK investment in other countries is a bad thing. Such investment is an essential part of an open trading system. It is also an important part of our development agenda. Investing and creating jobs overseas, as we saw with Jaguar Land Rover in South Africa, for example, is often one of the ways in which we can provide help for some of the poorest countries in the world.

[Douglas Ross (Moray) (Con)]

One of our great exports is Scotch whisky, much of which is produced in my Moray constituency. What is the Department doing to ensure the geographical indication protection on Scotch whisky is maintained within the EU when we leave?

[Dr Fox]

My hon. Friend makes an important point. The Government are seeking to ensure the continued GI protection of Scotch whisky in the EU after Brexit. Negotiations on geographical indications are continuing, and we anticipate that all current UK GIs will continue to be protected by the EU’s geographical indications scheme after Brexit.

[Several hon. Members rose—]

[Nic Dakin (Scunthorpe) (Lab)]

What initial assessment have the Government made of the impact of steel tariffs on the UK industry? What support are the Government giving UK steel to mitigate the impact until the tariffs are removed?

[Dr Fox]

The hon. Gentleman raises an important point, and I raised this with the EU Trade Commissioner last week. We are looking to see what impact there may be from any diversion and whether we need to introduce safeguards to protect UK steel producers. The earliest time that is likely to happen will be early to mid-July, and we are already seeing some movements that may justify it. As soon as we have the evidence to be able to justify such a decision, we will take it.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I read a fantastic Ministry of Defence document the other day that showed how the global centre of economic activity has shifted over time: 30 years ago, it was in the middle of the Atlantic; today, it is somewhere over Egypt; but in 2050 it will be somewhere around Vietnam. Is it not right, therefore, that our trade negotiations should accordingly shift south and east?

[Dr Fox]

One of our reasons for introducing Her Majesty’s Trade Commissioners is to ensure that the United Kingdom has the proper organisation to take advantage of those shifts in global trade. As I have previously said in the House, the International Monetary Fund has said that, in the next 10 to 15 years, 90% of growth in the global economy will be outside continental Europe. That is where the opportunities will be, and that is where we need to be, too.

[Patrick Grady (Glasgow North) (SNP)]

Can the Trade Secretary tell us whether he intends to send the Trade Bill for Royal Assent, even if the Scottish Parliament withholds its consent from relevant clauses?

[Dr Fox]

We believe that, because the Trade Bill will give continuity to British businesses, including in Scotland, and because not passing it would be detrimental to the interests of businesses, jobs and workers in Scotland, the Scottish Government will, in the end, see sense and support the Bill.

The Minister for Women and Equalities was asked—