Oral Answers to Questions

Mark Garnier Excerpts

Thursday 15th December 2016 Commons Chamber

[Craig Williams (Cardiff North) (Con)]

1. What steps his Department is taking to support foreign direct investment into the UK.

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

My Department is working globally to attract foreign firms to set up or expand their businesses in the UK and to generate new jobs and contribute to national wealth creation. We are promoting the UK as a prime destination for inward investment from across our global network, with dedicated support for investors in 50 overseas markets. With the support of sector specialists, we are ensuring that the UK has the best opportunities to attract higher-quality foreign direct investment.

[Craig Williams]

Latest gross value added figures show that Wales is the fastest growing area outside London, and Cardiff is unabashedly the engine room of the Welsh economy. What positive steps is the Department taking to ensure that Welsh businesses and Cardiff businesses get the help they expect to get?

[Mark Garnier]

Let me say that my hon. Friend, given that his constituency is Cardiff North, is the engine-room of the Cardiff economy. The Department for International Trade works for the whole of the UK, but I stress that my right hon. Friend the Secretary of State has already visited Wales, and I am working with the Wales Office to see what more we can do. We also support the Welsh Government by offering them support in posts overseas. We see the opportunities presented by Wales as very exciting.

[Bill Esterson (Sefton Central) (Lab)]

Today we are told that it could take up to 10 years to reach a trade agreement with the EU after we leave, while research from the National Institute of Economic and Social Research suggests a drop in trade of up to 60% if we are outside the customs union. Foreign investors are vital for the British economy, so will the Minister give those investors some of the certainty they so desperately need—and that we need, as well? Will he tell them whether he wants Britain to be inside the customs union and whether he wants tariff-free access to the single market or not?

[Mark Garnier]

It has been made very clear that the Government are not going to give a running commentary on what we are proposing to do. I also stress that the comments of Ivan Rogers are opinions and words taken from interlocutors and do not necessarily define how long it will take to create a trade deal. It is worth bearing in mind, if we look at various trade deals around the world, that while the Trans-Pacific Partnership has taken potentially eight years, the US-Jordan trade deal took just four months. It is very difficult to establish exactly how long any trade deal will take.

[Mr Alan Mak (Havant) (Con)]

As the UK becomes a world leader in the fourth industrial revolution—new technology—will the Minister update the House on what steps his Department is taking to secure foreign direct investment in this vital new sector?

[Mark Garnier]

I congratulate my hon. Friend on launching the all-party parliamentary group on the fourth industrial revolution. This type of innovative approach by businesses moving forward is incredibly important to the success of this country’s economy. We are working extraordinarily hard to make sure that this innovative approach is being transmitted around the world through our posts overseas, and that we can secure foreign direct investment to support it.

[Nick Smith (Blaenau Gwent) (Lab)]

What is the Minister’s best estimate on when an EU trade deal will be completed?

[Mark Garnier]

I refer the hon. Gentleman to my earlier answer.

[Callum McCaig (Aberdeen South) (SNP)]

2. What discussions he has had with the World Trade Organisation on the approval of new schedules for the UK after the UK has left the EU.

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[Sir Edward Leigh (Gainsborough) (Con)]

8. What steps his Department is taking to support businesses in establishing future trading opportunities abroad.

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

The Department is working across the UK, as well as in both current and future export markets overseas, to help British businesses. We are helping them to export their goods and services, identify new export opportunities and win those export sales. We are doing this digitally, through the GREAT.gov.uk website, and in person, through our network of international trade advisers across the UK and through our overseas staff in 109 countries.

[Wendy Morton]

Businesses in my constituency do not always have the resources to explore export markets but are keen to maximise opportunities. What is the Department going to do to help those businesses, so that they can find more opportunities abroad?

[Mark Garnier]

May I refer my hon. Friend, who is a champion of businesses in her constituency, to the GREAT.gov.uk website? Although it has been going for only one month, 174,000 users have visited it, more than 6,000 users have already made use of our selling online overseas services and nearly 1,000 businesses have created a profile on our “Find a buyer” service. This was highlighted to all hon. Members when the Department sent out our MPs’ toolkit, so that all MPs can help their constituents to find new markets and raise their eyes to the horizon.

[Sir Edward Leigh]

With only 5% of businesses trading directly with the EU, surely leaving the internal market will allow us to relieve the other 95% from the shackles of over-regulation? Will the Minister say a bit about the balance his Department is going to strike between inward and outward investment?

[Mark Garnier]

I thank a member of the Select Committee for his very wise question. It is a new approach by this Department to look equally at overseas direct investment for businesses looking to move overseas. This is incredibly important because it provides opportunities for many businesses to create new opportunities and new markets overseas. It is worth bearing in mind that, as British businesses invest overseas, they take with them skills and expertise, which can only help those developing economies to grow, thus creating even more opportunities for British businesses in further developed markets.

[Christina Rees (Neath) (Lab/Co-op)]

9. The Secretary of State for Exiting the EU said yesterday that he is considering four options for the customs union: completely inside; completely outside; the Turkish model, which is partially inside but outside the single market; and the Swiss model, which is outside but with customs arrangements. Are there enough staff in the International Trade Department and the Brexit Department to assess by February the concerns of UK businesses that leaving the customs union would devastate their complex cross-border EU supply chain by exposing new paperwork hurdles and tariffs?

[Mark Garnier]

The Department for International Trade is currently recruiting some of the finest people known in this country to help us to develop that. I stress to the hon. Lady that this whole exercise is not just defined by one Department or by the Department for Exiting the European Union; every Department is working to help to maximise the assistance that we can give both to British businesses and to the entire economy.

[Jim Shannon (Strangford) (DUP)]

Expanding UK global trade will mean that we need better connectivity within the UK. With that in mind, does the Minister agree that expanding Heathrow and adding more flights from Northern Ireland will enable more of our exporters in Northern Ireland to reach clients, particularly in new and emerging markets outside the EU?

[Mark Garnier]

I certainly agree that greater connectivity through airports is incredibly important for the whole country. However, I must stress that the details for such arrangements are for Ministers in the Department for Transport, so perhaps I can refer the hon. Gentleman to them.

[Several hon. Members rose—]

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[Bob Blackman (Harrow East) (Con)]

T4. On Monday, I was delighted to hear my right hon. Friend the Prime Minister announce that she wanted to take the trade relationship with Israel to the next level—our key ally in the middle east and strong trading partner. Can my right hon. Friend set out the steps that he is taking to ensure that we put in place a new trade deal with Israel, so that we can cement that commitment by the Prime Minister?

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

My hon. Friend is right. We have an extraordinarily good relationship with Israel, and we are the second biggest export market for Israel. Currently, we are governed by the association agreement that the EU has with Israel, and we are certainly keen to engage with Israel to make sure that in a post-Brexit world there is no disruption to the trade that we have.

[Helen Goodman (Bishop Auckland) (Lab)]

I am sure that the Secretary of State is delighted to be back in the Cabinet, but does he agree that the 1 million jobs that will be put at risk if we leave the customs union matter more than his own career?

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[Mr Philip Hollobone (Kettering) (Con)]

T6. In prioritising a post-Brexit free trade deal with Israel, will the Minister ensure that as far as possible the Palestinian Authority is included, because enhanced trade between the UK, Israel and the Palestinian Authority will be an essential part of building a sustainable and lasting peace?

[Mark Garnier]

I wholeheartedly agree with my hon. Friend. The British Government absolutely support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestine state. We should continue to engage with those countries. I was in Israel not so long ago, but I also visited Ministers in Palestine. We are very keen to engage with both Israel and Palestine.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

A recent parliamentary question revealed that the involvement of Scottish companies in the recent trade visit by the Prime Minister to India was very limited. What extra effort can the Secretary of State make to ensure that Scottish companies are better represented by the UK to support them in exporting into new international markets?