Oral Answers to Questions

Mark Garnier Excerpts

Thursday 23rd March 2017 Commons Chamber

[David Rutley (Macclesfield) (Con)]

9. What steps his Department is taking to help businesses build trading opportunities abroad.

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

The Department for International Trade provides market access, support and advice to UK businesses both in the UK and in 109 markets overseas. Through the GREAT campaign we build the global appetite for British goods and services, and give UK companies access to millions of pounds’ worth of potential business through the digital services offered on the great.gov.uk website.

[Sir David Amess]

My hon. Friend the Minister leads the buy British goods campaign. Does he agree that taking companies that make British goods on trade delegations is an excellent way of ensuring that companies make the most of our opportunities as we leave the European Union?

[Mark Garnier]

My hon. Friend is absolutely right. Trade delegations give an opportunity for small businesses to be put in front of buyers, and the Department for International Trade runs about 1,000 of them every year; I have been on a number, as have my colleagues, and they are extraordinarily successful in developing opportunities.

[David Rutley]

What steps is my hon. Friend the Minister taking to help first-time entrepreneurs become first-time successful exporters?

[Mark Garnier]

The great.gov.uk website is a tremendous opportunity, whereby entrepreneurs, many of whom are very tech savvy, can take advantage of the opportunities that we provide through our subsidised access to global e-marketplaces. They can also access the advice we provide through the website for exactly that type of business—they are supported as well.

[Derek Twigg (Halton) (Lab)]

May I ask the Minister specifically what advice there is, and what the Government are doing, to help small businesses in that respect?

[Mark Garnier]

The Department for International Trade has available a network of international trade advisers throughout the English regions who can be contacted through local chambers of commerce and are specifically there to hand-hold individual companies that need help.

[Caroline Flint (Don Valley) (Lab)]

Is the Minister looking at the trade differences between the English regions? One of the reasons that lots of people in the English regions outside London voted to leave was that they did not feel they were getting the benefits of the European Union. What is he going to do to help those areas improve their trading links?

[Mark Garnier]

We certainly look at foreign direct investment into the regions through trading links. That is why we see inward investment in areas such as Sunderland, which has benefited from Nissan. The right hon. Lady’s point about trade is absolutely right. The UK needs to trade more with the rest of the world—just 11% of businesses that could conduct such trade are actually doing so. One of the prime concerns and objectives of the Department for International Trade is promoting trade to the whole of the UK to ensure that we up our offer to the rest of the world.

[Henry Smith (Crawley) (Con)]

What steps is the Department taking to enhance trade between India and the UK?

[Mark Garnier]

My right hon. Friend the Secretary of State has certainly held meetings in India, and we are having ongoing talks to try to facilitate opportunities there. I will visit India in the next couple of weeks with my right hon. Friend the Chancellor of the Exchequer to explore more opportunities with financial services.

[Bill Esterson (Sefton Central) (Lab)]

May I associate myself and my colleagues with the Secretary of State’s remarks about yesterday’s terror attacks?

The Federation of Small Businesses reports its members’ concerns that there should not be a cliff edge when we leave the European Union. Smaller businesses want to continue with tariff-free access and to minimise non-tariff barriers. What is the Minister’s Department doing to support small businesses and allay their concerns?

[Mark Garnier]

The Department for International Trade absolutely shares those desires for a disruption-free exit from the European Union. We are certainly representing those interests to the Department for Exiting the European Union, which is tasked specifically with the objectives described by the hon. Gentleman.

[Tom Pursglove (Corby) (Con)]

11. The United States is the UK’s single biggest export market. What early discussions has the Minister had with his new US counterparts about trying to secure a timely new trade deal?

[Mark Garnier]

My hon. Friend is absolutely right to identify the United States as our single biggest trading partner, with 23% of the UK’s exports going to the United States. We are waiting for confirmation of when we can start having conversations.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

May I associate myself and my party with the Secretary of State’s opening remarks? We will have an opportunity to pay our respects later, but we are grateful that we are here because of the bravery of others.

The rise in Scottish exports has been one of the major success stories in the Scottish economy over the past decade. What lessons does the Minister believe the rest of the UK can learn from this, given that we have seen exports double in the past 10 years?

[Mark Garnier]

Like everybody else, I am delighted that exports from Scotland have done particularly well, but I stress that trying to promote exports is part of an ongoing process through the whole UK, not just one region. I celebrate the fact that Scotland has a number of tremendous exports, particularly Scottish whisky. Nearly £4 billion-worth of whisky is exported from Scotland, and the rest of the world sees a great deal of value in the brand.

[Jeff Smith (Manchester, Withington) (Lab)]

6. What discussions he has had with businesses, trade bodies and industry representatives on the potential effects of World Trade Organisation rules in the event that the Government do not secure free trade agreements with other countries after the UK leaves the EU.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

14. What discussions he has had with businesses, trade bodies and industry representatives on the potential effects of WTO rules in the event that the Government do not secure free trade agreements with other countries after the UK leaves the EU.

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

International Trade Ministers and officials regularly meet British businesses to discuss trade policy matters. These discussions have included our position in the WTO, work under way to avoid the loss of trade preferences that UK firms currently access via EU trade arrangements, and future trade negotiation priorities. The Department for Exiting the EU is also engaged fully with British businesses.

[Jeff Smith]

As an EU member state, we are party to free trade agreements with countries such as Mexico, South Korea and South Africa. Is it the responsibility of his Department or the Department for Exiting the European Union to negotiate the grandfathering or replacement of those agreements?

[Mark Garnier]

I can absolutely confirm that DIT leads in every sense on the trade negotiations with the rest of the world. The Department for Exiting the European Union is restricted to the European Union.

[Paula Sherriff]

How does the Department intend to help businesses trading with non-EU countries overcome trade barriers such as tariffs and rules of origin requirements if the Government are unable to secure continuation of preferential trading terms?

[Mark Garnier]

When we leave the European Union, it is the intention of the Department for International Trade to carry over the existing trade deals that we enjoy through our membership of the European Union. Countries such as Mexico, for example, have trade deals with the EU, and it is our intention to carry over such trade deals in the first instance in order to avoid any cliff edge.

[Justin Madders]

The Minister will be aware of statements made by the head of the PSA Group, following the takeover of Vauxhall-General Motors group, that when new models are awarded plants across Europe will be judged on their competitiveness. A 10% tariff on cars would have a huge impact on the competitiveness of the UK car industry, so what contingency plans do the Government have to ensure that the UK car industry remains competitive?

[Mark Garnier]

The hon. Gentleman is right to raise this point; he speaks on behalf of his constituents in an area that manufactures these vehicles. It is the intention that the UK can achieve tariff-free, customs-free access to the single market. That benefits not only the UK car manufacturers that produce 1.9 million cars, but the European manufacturers that export to the UK.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

Many countries breach WTO rules by using a whole series of non-tariff barriers such as local content requirements. What discussions have the Government had to get the WTO to enforce those rules, and what can we do to ensure that those countries are persuaded against this practice?

[Mark Garnier]

My hon. Friend is right. Non-tariff barriers are incredibly disruptive to free trade, and we take that very seriously. We will be looking at our own system of trade remedies, but at the moment everything has been done through the European Union. We need to start engaging in that. To a certain extent, we have had conversations with other countries through the joint economic and trade committees, where we can deal with that.

[Mr Steve Baker (Wycombe) (Con)]

The Government will know that WTO rules are not something that we fall back on, but the ultimate foundation of all international trade. Will the Minister bear in mind the advice of Economists for Free Trade, which has said that a UK free trade policy could add 4% to GDP in the long term and reduce consumer prices by 8%?

[Mark Garnier]

Free trade is absolutely the key to giving prosperity to the world, including the UK—it is a huge benefit to developing nations, as well as developed nations. For consumers, there is the opportunity to have market choice, and therefore price choice, which can be incredibly helpful to the economy.

[Mr Edward Vaizey (Wantage) (Con)]

Tech City UK published its excellent “Tech Nation” report yesterday, showing that investment in digital companies in the UK is 50% higher than in any other European country. I know that my hon. Friend and his fellow Ministers are supporting the tech industry strongly, but has he made an analysis of how WTO rules will affect it?

[Mark Garnier]

The Department for International Trade is carrying out an analysis of how WTO rules will affect every sector of our economy. This is an ongoing process, but my right hon. Friend is absolutely right to highlight the technology sector as one in which this country is leading, and that is a fantastic opportunity.

[Barry Gardiner (Brent North) (Lab)]

Mr Speaker, you and I have been in this House for 20 years, and after yesterday’s attack, I have never felt more proud or more grateful to be speaking in this Chamber.

What assessment has the Secretary of State made of the need to deploy WTO trade remedies? We know that the Government opposed anti-dumping measures in Europe that would have protected British industries. Earlier, he spoke of a balance of interests between UK producers and UK consumers. If there is to be a balance, how many specialist staff has he recruited to deploy successful anti-dumping measures and protect vital UK jobs in the steel and ceramics industries from dumping by China?

[Mark Garnier]

We will bring forward our proposals on this to the House in due course, but at the moment we are looking to adopt a rules-based process to deal with it.

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[Peter Aldous (Waveney) (Con)]

T2. There has been considerable investment in the offshore wind sector off the East Anglian coast in recent years. With article 50 being triggered next Wednesday, will the Minister set out the Government’s plans to strengthen the UK’s position as a world leader in the sector, and to attract global investment in innovation and research, so that local businesses are well placed to win contracts at home and overseas?

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

The Department for International Trade works with, and will continue to work with, key UK suppliers, potential and existing inward investors, foreign Governments and offshore wind developers. The UK is building a competitive and innovative supply chain that creates and sustains jobs, exports and economic benefits for the UK as we leave the European Union.

[Barry Gardiner (Brent North) (Lab)]

Now that the Secretary of State has revealed to The Sun his plans for a trade Bill in the Queen’s Speech, will he do Parliament the courtesy of publishing a trade White Paper that sets out clearly what markets he wishes to liberalise and what measures he will take in future trade agreements to protect and enhance International Labour Organisation principles, sustainable development, human rights, environmental protection, intellectual property rights, food standards, future options on state-owned enterprises and the ability to nationalise particular sectors? If he develops an informed, consultative international trade policy, the Government may be able to restore confidence that they are holding trade dialogues that are backed by a clear and strategic plan.

[Nigel Mills (Amber Valley) (Con)]

T4. The aerospace sector is of great importance in Derbyshire. What steps are the Government taking to promote the UK’s excellence in this sector around the world?

[Mark Garnier]

Our aim is absolutely to keep the UK as a leading aerospace—and, indeed, space—nation. We will continue to work with the industry through the aerospace growth partnership and to promote foreign investment, boost exports and grow high-value jobs here in the UK.

[Daniel Zeichner (Cambridge) (Lab)]

T3. The UK video game sector is one of our great success stories. I was with Ninja Theory in Cambridge on Friday. The trade body UKIE has consulted its members, who have told it that maintaining data flows in Europe is essential. Can the Minister tell us what progress has been made on securing a data adequacy agreement with the European Union?

[Mark Garnier]

The hon. Gentleman is absolutely right to celebrate the activities of this creative industry sector. However, since we have not started the article 50 process, we have not entered into any specific talks.

[Henry Smith (Crawley) (Con)]

T5. What discussions has my right hon. Friend had with Commonwealth countries about trade and investment opportunities?

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[Mark Garnier]

The subject of product standards is incredibly important. My hon. Friend will be aware that the great repeal Bill will bring across a great deal of what relates to the European Union, and that Bill will contain detail about product standards.

[Graham Evans (Weaver Vale) (Con)]

What influence can my right hon. Friend bring to the showcasing of great British beer in embassies around the world?