Oral Answers to Questions

Mark Garnier Excerpts

Thursday 3rd November 2016 Commons Chamber

[Paul Scully (Sutton and Cheam) (Con)]

1. What plans he has to strengthen the UK’s trade relationship with Israel as a result of the decision to leave the EU.

[The Parliamentary Under-Secretary of State for International Trade (Mark Garnier)]

The UK and Israel have a strong and important trading relationship, with nearly £6 billion in bilateral trade last year. The UK is the No. 1 destination for Israeli foreign direct investment in Europe, and there are now more than 300 Israeli companies established in the UK. I recently visited Israel to discuss investment and trade, and we will continue discussions on strengthening our important trade relationship.

[Paul Scully]

I thank my hon. Friend for that answer. UK-Israel trade is at a record high, with strong ties in science and technology, cyber-security and medical science, but the terms are currently determined by the EU-Israel association agreement. Does he agree that our vote to leave the EU presents a great opportunity to strengthen co-operation between our countries, and will he update the House on progress on planning and securing a new post-Brexit deal with Israel?

[Mark Garnier]

We are taking advantage of all the opportunities presented to us to ensure that Britain becomes a truly global leader in free trade once we leave the EU, and that of course includes Israel, building on our strong relationship in areas such as research and development and cyber-security. For example, we have established the UK-Israel tech hub, which creates partnerships between British companies and world-class Israeli innovators.

[Joan Ryan (Enfield North) (Lab)]

A survey this year found that 89% of Israeli tech companies and 86% of Israeli investors are interested in business and tech co-operation with the UK. What steps will the Minister be taking to take advantage of that good will and ensure that Britain continues to be a leading destination for Israeli tech companies?

[Mark Garnier]

The right hon. Lady is quite right to mention our growing relationship. In cyber-security, in particular, we saw a 24% growth in exports last year. I was recently in Tel Aviv and had the opportunity to visit a tech accelerator hub that is sponsored by Barclays. It is very encouraging to see that private sector relationship, which is something we will continue to encourage.

[John Howell (Henley) (Con)]

11. One area in which the UK can strengthen its relationship with Israel is cyber, where Israel has 20% of the global market. Will the Minister welcome the UK-Israel cyber-physical initiative and say what is coming next?

[Mark Garnier]

My hon. Friend is quite right to raise the interest in cyber. In February we led a successful cyber-security collaboration mission of businesses and academics, and we will continue to promote further such delegations.

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

As part of these trade discussions, did the Minister raise the thorny issue of illegal settlements in Palestine and the demolitions that are ongoing? Demolitions of some buildings have actually been part-funded by the UK.

[Mark Garnier]

The hon. Gentleman will know that the Government do frown on the illegal settlements in the Palestine territories. These are not helping with the peace process—they are standing as an obstacle—and the Government continue to promote the two-state solution to ensure that Palestine becomes a viable and sovereign nation.

--- Later in debate ---

[Mr Ben Bradshaw (Exeter) (Lab)]

Some 80% of the fish caught around our coastline in the south-west goes straight for export to the rest of the European Union, and there is huge concern in the industry about the impact of tariffs if we leave the single market. Given that concern, and the excellent news from the High Court, would it not be wise of the Government not to invoke article 50 as early as March?

[The Parliamentary Under-Secretary of State for International Trade (Mark Garnier)]

Export tariffs on food products, and on animal products in particular, are determined outside the provision of trade agreements. They are determined in terms of licensing based on the quality of the food products, on a separate basis.

[Mark Menzies (Fylde) (Con)]

T5. Yesterday I welcomed to Parliament a group of business leaders from Mendoza in Argentina. They want to increase our exports exponentially, which currently stand at 0.1%. Will the Minister assure me that everything will be done when we leave the EU to improve our trade relations with Latin America?

--- Later in debate ---

[Andrew Rosindell (Romford) (Con)]

T6. Will the Secretary of State give us a progress report on new arrangements to be put in place with Gibraltar to ensure not only that there is a common market between the UK and Gibraltar post-Brexit, but that it has uninterrupted access to financial services for its financial market?

[Mark Garnier]

My hon. Friend is right to raise that. We have strong economic links with Gibraltar and 20% of the UK car insurance market is underwritten within Gibraltar. I stress that we have an interest not just in Gibraltar but in all the overseas territories. I met many of the leaders yesterday. They will very much be involved in the process of the negotiations of our deal with the EU as we progress through article 50.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Leaving the single market would mean that our agricultural exports would be subject to World Trade Organisation tariffs, which will have a hugely detrimental effect on a vital industry for Scotland. Does the Secretary of State plan to get farmers a special deal to ensure that they are not affected by sudden rises in tariffs to protect that vital industry?

[Mark Garnier]

The hon. Lady is right to raise that. It is incredibly important that we secure good tariff deals with other countries, and agricultural products suffer some of the highest tariff levies, but it is a two-way operation. On the one hand, exporters from Scotland to other markets may face big tariffs, but on the other hand, if we end up with a very low tariff barrier, we will have to impose it, which could mean that her farmers in Scotland are flooded by imports. It is a difficult and nuanced area to try to get right.