Debt in Africa

Martin Vickers Excerpts

Tuesday 21st November 2023 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered the matter of debt in Africa.

I am extremely grateful to the House authorities for allowing me to secure this crucial debate on debt in Africa. I intend to cover the essential points that demand our urgent action. Today, I stand before this Chamber to confront a crisis of global magnitude—the escalating debt crisis in African countries. This is not merely an economic issue; it is a humanitarian challenge that demands our immediate and decisive response. The way in which we address this crisis does not just reflect on our policies but on the core values of Great Britain on the world stage. This moment is more than a test of financial acumen. It is a testament to our commitment to human dignity and global justice.

The decisions that we make in Parliament have far-reaching implications, shaping the futures of millions. In our interconnected world, the fortunes of African nations are intrinsically linked to our own. The Labour party has a proud history of leading international efforts on debt cancellation and relief for the world’s poorest. We remain committed to international development. I feel our response to this crisis will define our legacy in international solidarity and moral leadership.

The situation in Africa is increasingly alarming. Currently, more than half of the continent’s low-income developing countries are either in debt distress or on the brink of it. Debt distress refers to a situation in which a country is struggling to meet its debt obligations. That figure has worryingly doubled since 2015, and looking ahead to 2024 and 2025, those countries will face debt repayments six times higher than their total debt servicing in 2021. This drastic increase is a result of several factors, including the covid-19 pandemic and global tensions—such as Russia’s invasion of Ukraine.

Having liaised with the shadow Foreign Office Minister —my hon. Friend the Member for West Ham (Ms Brown) —I am cognisant of the fact that the Labour party has long advocated for debt relief as a cornerstone of its foreign policy. It steadfastly believes that the resources of low-income nations must be directed towards enhancing the lives of their citizens rather than being drained by unsustainable debt repayments. Our perspective must be rooted in the principle that investment in infrastructure and public services is crucial—not just for Britain’s societal stability, but equally for countries across Africa.

We need to see a model where an increase in GDP in those nations translates into significant investment in their own societies and infrastructure. That approach counters a current trend where a substantial portion of their national income is funnelled into servicing external debts, often with stringent conditions attached. We should envisage a world where economic growth in African countries is harnessed for their own development, fostering stronger, more resilient economies and societies. It is a vision where international co-operation and fair debt practices replace the cycle of debt and dependency, allowing those countries to realise their full potential on the global stage.

If I now come on to the middle east and north Africa region, the contrast between the accumulating wealth of the few and the deepening debt of the many is stark. The richest 0.05% in the region, with wealth above $5 million, saw their wealth surge by 75% from $1.6 trillion in 2019 to $3 trillion by the end of 2022. That boom in ultra wealth comes on the back of every country in the middle east and north Africa region sinking deeper into debt. For instance, in Tunisia, public debt increased from 43% of GDP in 2010 to 80% in 2021. In Egypt, it increased from 70% to 90%.

In the light of the escalating crisis, I ask the Minister: what steps are the Government taking to work with international partners to address the debt crisis that some African countries are facing, including debt held bilaterally, multilaterally and by private creditors? A World Bank report has highlighted a 35% increase in debt interest bills for the world’s poorest countries, further strained by the pandemic and increased food import prices. I ask the Minister to elucidate the UK Government’s response to that alarming development.

The G20 common framework for debt treatments was designed to deliver a sustainable solution to lower-income countries’ debt vulnerabilities, but it has failed. Only four countries have so far applied for debt treatment. Of those, only Chad has reached an agreement with both its private and bilateral creditors. That agreement appears inadequate, and has been criticised for its failure to reduce Chad’s debt burden and make it sustainable. Another example is Zambia. It defaulted in 2020, but has not yet reached a comprehensive restructuring agreement. The failure of the framework to deliver necessary relief is largely due to private creditors’ reluctance to participate in debt restructuring.

As a significant funder of debt relief initiatives and a supporter of international financial institutions, the UK has a role in ensuring that private creditors participate in restructurings. Some organisations, such as Debt Justice, argue that without firm action, English courts may end up enforcing repayment on behalf of private creditors who are exploiting official debt relief initiatives. Those organisations argue that the reluctance of private creditors to agree to restructuring creates a domino effect where other large creditors also refuse to accept a loss. It leads to a slow, uncertain process that consistently fails to deliver effective debt relief.

Given those challenges, I ask the Minister: what proactive steps are the UK Government taking to engage with, and ensure the participation of, private creditors in the debt relief process? How are the Government planning to address the issues raised by organisations such as Debt Justice to prevent debt relief initiatives from being used to pay off other debts rather than investing in the country? The United Kingdom, as a key player in global finance, has a crucial role in shaping frameworks that govern sovereign debt contracts. My challenge to the Government is: what initiatives are being pursued to reform the frameworks and facilitate effective debt restructuring?

I will turn to the impact on women and girls, who are being disproportionately affected by the debt crisis in Africa. I am aware that many hon. Members will elaborate further on this topic. The crisis leads to a reduced governmental investment in vital public services such as healthcare, education and social services. It also has an impact on supply-side factors, affecting those who work in health and social care. Globally, women account for 67% of the health and social care workforce. As we strive for a society where women are empowered globally, it is important that we look at the consequences of the debt crisis and its impact on egalitarianism and progressive values. Clearly, if Governments do not have the funds to support the basic needs of their populations, women and girls in particular will suffer. I call on our Government to outline how our international aid policies are addressing the unique impact of this crisis on women and girls in Africa.

Beyond that, there would be no good or relevant debate without mention of our effort to combat climate change. The debt burden significantly impedes African countries’ abilities to adapt to a changing climate and mitigate the impacts of the climate crisis. As we know, reaching net zero is of critical importance for us all, here and around the world, and I know that the Labour party is doing all it can to acknowledge the impact that the climate crisis is having on African nations.

Sustainable development and climate resilience are urgent needs, yet the debt crisis presents a formidable barrier. I implore the Government to detail collaborative efforts, aligning debt relief with climate change mitigation and adaptation strategies in the countries that I am discussing.

I will now address the long-term consequences of the African debt crisis and the serious threat that they pose to development, poverty alleviation and progress towards achieving the sustainable development goals. The SDGs are fundamental pillars of the international organisations that the UK works so diligently to support.

Low-income countries trapped in a debt doom loop cannot access the transformational finance that would allow them to escape from extreme poverty, fight climate change and meet their global goals. So, I urge the Government to share comprehensive strategies for confronting those profound challenges.

This critical moment demands international solidarity and decisive action. The UK, along with other leading economies, must spearhead the search for fair and sustainable solutions. Therefore, I ask the Minister the question: how are the Government working with international partners to develop strategies for long-term economic stability and social wellbeing in African countries?

I understand from my hon. Friend the shadow Minister that a Labour Government will restore Britain as a trusted and long-term partner to tackle the great challenges of our time, to promote the rules-based order and to deliver transformational change with communities around the globe. In seeking to address the challenge of debt burdens and to foster sustainable and resilient economies in Africa, I say to hon. Members here in Westminster Hall and indeed the whole House that now is the time not to cling to existing strategies but to leave no stone unturned.

In conclusion, the gravity of the African debt crisis necessitates collective action. We must look beyond temporary fixes and address the systemic issues that are at play. I am sure that a future Labour Government will embrace a new approach towards development that is based on respect and a genuine partnership with the global south, which involves supporting its plans to eliminate poverty, tackle climate change and reach the global goals. However, we cannot wait for that future Labour Government; we must act now. So, I implore the current UK Government to act now to address the debt crisis facing African nations.

[Martin Vickers (in the Chair)]

I intend to call the Front-Bench spokesmen from 3.25 pm onwards. I have four other Members indicating that they wish to speak, so I would be grateful if they could bear that instruction in mind.

--- Later in debate ---

[Tony Lloyd]

rose—

[Martin Vickers (in the Chair)]

Sorry, I call Claudia Webbe.

[Claudia Webbe (Leicester East) (Ind)]

It is a pleasure to serve under your chairship, Mr Vickers. I congratulate the hon. Member for Slough (Mr Dhesi) on securing this important debate. It could not have come at a more timely moment.

The debt that Africa owes is equivalent to something like 24% of its gross domestic product. As of 2022, Africa’s debt burden was around $1.8 trillion. As an absolute number, that does not appear as high as some—Germany’s debt is larger—but compared with the living standards and available wealth of the people and their Governments, it is crippling. That debt has been placed on the backs of African nations as a legacy of centuries of colonialism and exploitation—exploitation that continues today, as western corporations make billions every year from the natural resources of the continent, particularly in the form of mineral extraction.

To demonstrate the extent to which western mineral exploitation damages Africa, out of all African nations, only Botswana’s Government retain ownership and control of their own country’s considerable mineral wealth. As a result, it has by far the lowest national debt as a percentage of its gross domestic product—barely a quarter of neighbouring South Africa’s, and even its closest rivals have double its debt. Botswana has stated that its aim in retaining control of its mineral resources is to maximise the economic benefit for its people—and it works.

For centuries, Africa was pillaged of its wealth: timber, oil, diamonds, and, above all, its people. Western nations grew rich on the backs of the slaves that they took and the exploitation of those who remained in Africa, and then from their colonisation of those same nations. Rich countries and their corporations continue to steal by deceit, by intimidation, and by fomenting unrest and division, particularly to obtain the rare earth minerals that drive our technological society and bloat the bank accounts of the companies that make and use that technology.

Africa is not poor; the west has stolen its wealth and is still doing so today. Aid and loans to Africa, along with personal remittances from Africans working abroad, are worth far less than what is taken out of Africa. That difference is at least $40 billion annually, making aid and loans little more than camouflage for neo-colonial exploitation. That piles debt on to the people of Africa, which drains away their ability to build themselves better economies and a better standard of living. And, as usual, the money going out of Africa is going into corporate profits, while the cost of loans and aid is borne by taxpayers.

The reparations that the UK and other nations owe to the people of Africa—and the other countries exploited for so long—is a huge debt, both moral and financial. Cancelling Africa’s debt would be one small step towards repaying what was stolen and making restitutions for centuries of damage done. Yet Governments will not acknowledge the debt that they owe to Africa, let alone put measures in place to do something about it or to claw back some of the obscene corporate and personal fortunes dug out of Africa and its people. It is high time that that situation changed.

[Martin Vickers (in the Chair)]

I call Sir Tony Lloyd.

[Tony Lloyd (Rochdale) (Lab)]

Thank you, Mr Vickers. I was so excited at the prospect of speaking in front of you that—

[Martin Vickers (in the Chair)]

We were excited to listen to you, Tony.

[Tony Lloyd]

Thank you. I congratulate my hon. Friend the Member for Slough (Mr Dhesi) on introducing this debate. It is timely. I think we all know that the crisis in Africa is real. We—as a world, not simply as a country—need now to address that. I would like to start quite a long time ago, rather like my hon. Friend the Member for Putney (Fleur Anderson). When we look back over the history of the debate around indebtedness—to “break the chains” and all those phrases that used to trip off our tongues about the need for change—I believed that the world would be very different.

I want to relate something from around 30 years ago. I went to the funeral of a very young child in Mozambique. The baby died because the mother simply could not feed that baby. It was shocking at the time to see a baby denied the nutrition that I would expect for my own grandchildren, for my constituents and for our world. At the time, I would have said, “It will change.” I would have said that we would move down the path of debt relief. Had we had this debate 30 years ago—we probably did have it—we would have been told, “Don’t worry: with a combination of looking carefully and kindly at debt management, at the transmission of technical aid and assistance and at the growth of trade, the world will be very different.”

Well, the world is very different: it is worse for those in Africa. In practical terms, the little baby from all those years back, whom I talked about, is now replicated by many others. Debt is an enslavement of the generation to come, and that is, of itself, something that we ought to rail against. How can a child be born into the enslavement that debt causes? My hon Friends have given different accounts of debt, and we can probably argue about the figures. The hon. Member for Leicester East (Claudia Webbe) used a particular figure, but the figure I have about the GDP-to-debt ratio is that debt will now be something of the order of 60% of GDP across sub-Saharan Africa. Whether that is exactly right or wrong almost does not matter. It matters in general terms—we can talk trillions or billions of dollars or pounds—but debt impinges on the quality, the reality and the possibility of life of millions of people across the African continent. It is at the human level that debt matters.

If we look at the battle against poverty, the battle against poor health, the battle for education, the battle to create the health services and the battle around climate change, we are losing those battles. We are losing them in this generation—at the moment—and we have to change. We have to change in a particular way, because, at some point, we have to make our minds up and say whether we are prepared to create a very different relationship: the indebted no longer as clients of those who hold the debt but, instead, as partners. My hon. Friend the Member for Slough made some very profound points about this.

If we are not a partner to African nations and the people of Africa, we lose battles such as climate change, which is our common battle together. It would be remarkable for Africans to know that we are losing it together, because they make so little contribution to the problems that we have all caused around climate change. African nations as a whole are insignificant at the moment, although an Africa of the future, if not helped through transition to those climate change-consistent policies, will potentially be a major producer of greenhouse gases. We should therefore be partners, but if we are going to be partners, we have to be meaningful about what debt really means.

Those who were in the Chamber earlier heard the international development Minister, the right hon. Member for Sutton Coldfield (Mr Mitchell) make a very good series of statements on the White Paper. I welcome that White Paper, but there is a challenge that the Minister of State, Foreign, Commonwealth and Development Office, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) has to take back to the Prime Minister and others. It is not enough to print the words in the White Paper; we need the political will to translate that into national action in the UK and international action. On national action in the UK, when I looked into our history of debt relief, the only figures I could come up with showed that the UK’s spending on debt over the last 10 years or so has been £44 million. That is absolutely insignificant against the scale of the problem. We have to do more by way of debt forgiveness, but not simply on our own. We have to be a part of that global coalition that challenges debt and looks at debt restructuring in a real and rational way.

We have to look, for example, at Zambia and the number of people who have evidenced the situation there. Zambia could not come to an agreement, partly because it was the private debtholders who caused the crisis there. Zambia then offered to pay them some 73 cents on the dollar, compared with 55 cents on the dollar for intergovernmental loans. That was a massively bigger rate of return for the private investors, even though they charged massively higher interest rates on their debt. Bear in the mind that the reason for charging higher interest rates is relevant to risk. They put the risk premium in, but having put the risk premium in, they then wanted to be paid a superabundant return on their investment. The reason that failed is that it was inconsistent with the G20 common framework, which said that there had to be a rough equivalence between Government and private debtholders. That is right; there should be that kind of equivalence. We have to be in this together.

A challenge for the Minister is this: are this Government prepared? As a lot of that debt is operated through UK law, it is in our capacity to ensure that that debt, which is factored through the City of London and so on, is managed in a way that says to private debtholders that they have to pay their fair share of debt forgiveness and debt relief, if we are genuinely going to restructure on these issues.

We can make a change. I may not have been able to give hope to the mother of the child I talked about before, as I do not think I would have been so bold as even to say to her that something could be better at that stage of her life. Perhaps I would have said to other people that the world can change, and it can change for the better. Let us ensure that we can do it in this generation. Let us ensure that now is the time.

This has to be a political priority, and I believe my party will take this on board. I hope that in a year’s time or thereabouts we will be sat around having this debate again, and we will be sat on different sides of this little horseshoe. It will be about political will. As I have said to the Minister, the challenge is whether the political will is there from the Prime Minister. Is there the political will to say that the decision to cut the development assistance in the way this nation did took us in the wrong direction? Is the political will there to raise those very powerful points, as my hon. Friend the Member for Leicester East did, about the history of post-colonial Africa?

Even now, we subsidise, for example, Rwanda and Uganda in terms of their education and health service. That is the right thing to do. In turn, however, the armies of those two countries have been part of the exploitation of the mineral wealth of the Democratic Republic of the Congo, which of course is then shipped over to the west, where it is paid not at a value-added rate, but at the market rate. Who controls the market? It is not the producers of those rare earth minerals that we take from African soil.

We need to think not simply about debt relief, but about the bigger picture and how we alter the terms and conditions of trade and exploitation, which our system is part of. I do not say that in any sense of whipping myself; I say it rationally, because if we are going to make that change, we have to think about that.

I say to the hon. Member for Strangford (Jim Shannon) that I have always been puzzled by the parable of the stewards. I always felt it was little unkind on the perhaps slightly less competent steward with his one talent. I never quite understood why he should be treated so badly, because clearly there was a steward who thought he was doing the best—he buried the talent in the ground, and that talent did not lose any value in that process.

Kosovo

Martin Vickers Excerpts

Monday 5th June 2023 Commons Chamber

[Mr Mitchell]

I thank the hon. Gentleman for his perceptive and accurate comments. I reassure him that we will do everything we possibly can to advance the aims that he set out, and I underline the point that he made about Britain making a unique contribution. I will ensure that his comments are relayed to the Foreign Secretary and to the Under-Secretary of State for Foreign, Commonwealth and Development Affairs, my hon. Friend the Member for Aldershot. The hon. Gentleman may rest assured that the essence of what he says is precisely in line with the policy of His Majesty’s Government.

[Martin Vickers (Cleethorpes) (Con)]

As the Prime Minister’s trade envoy to the western Balkans, I have a brief that includes both Serbia and Kosovo. I recognise the importance of stability in encouraging UK businesses to take advantage of the great opportunities that exist in the area, so I fully support my right hon. Friend’s comments about de-escalation. Only if we reduce the tension can British businesses benefit the economies of Serbia, Kosovo and the wider region. May I urge my right hon. Friend to do all he can to, as he said, de-escalate the situation?

[Mr Mitchell]

I thank my hon. Friend, on behalf of the House, for all the work he does in his role as an envoy, and I underline the important point he made about steps towards de-escalation. Both Kosovo and Serbia have a role to play in de-escalation. Kosovo must now enable mayors to work from locations outside municipal offices and withdraw special police units from the vicinity. Serbia needs to reverse its decision to raise the level of readiness of its armed forces at the border with Kosovo and use its influence to encourage an end to the violent protests. All parties must exercise maximum restraint, avoiding inflammatory rhetoric and actions. That is the essence of what my hon. Friend is calling for, with his experience of that part of the world and those specific issues, and I strongly agree with what he said.

West Balkans: Council of Europe

Martin Vickers Excerpts

Wednesday 16th November 2022 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

It is a pleasure to serve under your chairmanship, Ms Nokes. I congratulate my hon. Friend the Member for Henley (John Howell) on securing this debate. It has been an extremely well-informed debate, and it appears that virtually everyone around the Chamber has been to the western Balkans over the course of the last few months.

I serve as the Prime Minister’s trade envoy to the western Balkans. I want to focus less on the political perspective and more on the main element of my brief, which is trade. It is a means not just of growing economies, but of ensuring peace and harmony within those sometimes troubled states. It is clear that we have both a strategic and a financial interest in being close partners with this part of the world. As the trade envoy, I am tasked with encouraging and supporting the growth of business links between the UK and the region. To do so, I work with a wide range of organisations in both the public and the private sector.

As a region with relatively young democracies and market economies, it is to some extent characterised by a legacy of nationalism, ethnic tensions, protectionism and territorial rivalries. Some businesses may consider the region full of significant business challenges, such as bureaucracy, corruption and political instability. However, each country in the region is committed to tackling those issues head on, and improving the business environment. Progress is varied from country to country, and there are setbacks. However, the general direction is positive and strides are being made with Governments across the region, and they ought to be congratulated for their efforts.

Of course, as states hopeful of EU membership, each Government in the region are astutely aware of the need to continue making the necessary reforms to eventually achieve that aim. There is much that the Council of Europe can do to step up its assistance to those nations in improving their application of the rule of law, tackling corruption, ensuring media freedom and putting reforms in place across the Executive, the legislature and the judiciary. That would also help them in joining other international organisations, including the Council of Europe.

As my hon. Friend the Member for Henley remarked, reconciliation is a key theme in the region and is essential to realising the goal of being admitted to the various international organisations. Numerous divisions exist both between and within states in the region; naturally, they are highly emotive and difficult to move on from. That is an area where the Council of Europe can play a significant role. Conflict resolution is difficult but essential. That means that those who have done wrong must be held accountable for crimes and prosecuted.

In some countries—Kosovo, in particular—the UK has not sufficiently focused on the trading relationship, instead preferring to support the country in state building and security issues. Other European countries, as well as the USA, have been quicker to capitalise on the opportunities. In other countries, such as Albania, our focus has dwelt on combatting organised crime. Given the direct impact that has on the UK, it is crucial that we address those matters and work together to resolve them. In doing so, we must remember that it is just one small aspect of what should be a wide-ranging and mutually beneficial relationship.

I want to address that particular issue in more depth. We will all be aware of the headlines in recent weeks. As my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) has highlighted, we have had protests in Parliament square relating to the channel boat crossings. I will say directly to the Albanian people, particularly those who live, work and contribute here, that the UK values their contribution. Most Albanians are here legally and contribute significantly to our society. The vast majority are law abiding and integrate well, maintaining strong relationships within their diaspora. Sadly, there are criminal gangs who exploit them; we are familiar with that. We enjoy a long history with Albania, and we ought to be able to overcome the present difficulties by working together to tackle the minority who are involved in drug trafficking and other crimes.

Those difficulties can be overcome through measures such as the mutual readmission agreement, which has already seen over 1,000 Albanian foreign national offenders returned. However, both of our countries need to do more. Fortunately, that is possible due to the strong and wide-ranging relationship we share with Albania as a close NATO ally, a partner in the UN and a vital partner in ensuring Europe’s collective security.

I suggest to the Minister that now would be a good time for her Department, in co-operation with the Department for International Trade, to launch a major initiative to encourage UK businesses to look more seriously at the opportunities that exist in Albania in particular, but also in the wider region. As has been said, those countries are losing their young people at an enormous rate. If we could do more to establish businesses there, the long-term effect would be to encourage those young people to stay in their home country. That would also, of course, be beneficial to our country as well.

I can see, Ms Nokes, that you are urging me to conclude. Yesterday, my hon. Friend the Member for Henley urged me to increase my contribution!

[Caroline Nokes (in the Chair)]

I would like to get Mrs Latham in, please.

[Martin Vickers]

I will wind up by saying that a great deal can be done to extend our trading relationship. I urge the Minister to work with her colleagues in other Departments to enhance our relationship, and as trade envoy I will certainly do my part to assist.

FCDO Staffing

Martin Vickers Excerpts

Thursday 16th December 2021 Commons Chamber

[James Cleverly]

Once again the hon. Gentleman throws around the figure of 20% staff cuts. I can tell him that it is nonsense. The UK remains a top-tier global diplomatic powerhouse. I pay particular tribute to the FCDO staff based in Abercrombie House, whose invaluable work adds to the huge diplomatic output of the FCDO. Were his party to fulfil its dream of isolationism, I cannot believe that those jobs at Abercrombie House would be maintained. We support the fantastic work that Scots do within the UK’s global posture. We intend to make sure that they are supported and retained and their work enhanced.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the assurances that the Minister has given, but speaking as one of the Prime Minister’s trade envoys, may I emphasise the important work that the FCDO contributes to the work of envoys not just through the briefings that it gives here in London, but in our embassies? I urge the Minister to give a reassurance that that aspect of the work of FCDO staff will be taken into account in any structural changes.

[James Cleverly]

I thank my hon. Friend for his comments. When I visit our posts around the world—around my region—I am incredibly pleased to see the seamless integration of various Departments that are represented on those platforms. Trade is an incredibly important part of our global posture. He is absolutely right that maintaining the FCDO’s ability to support the foreign-facing work of other Departments will remain a top priority for us.

Bosnia and Herzegovina: Stability and Peace

Martin Vickers Excerpts

Thursday 2nd December 2021 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

I thank my hon. Friend the Member for Rutland and Melton (Alicia Kearns) for the work she did to bring about this debate. Many excellent points have already been made on the importance of retaining the territorial integrity of Bosnia and Herzegovina, and I add my voice to those expressing concern about recent events. The western Balkans have contributed to the history of modern Europe; they have been a meeting point between east and west for centuries. They have struck a fine balance between competing demands, and have typically performed admirably against coercive and malign forces. Any change to that position is extremely worrying.

I first visited Bosnia and Herzegovina on a visit organised by my right hon. and gallant Friend the Member for Beckenham (Bob Stewart), who made an excellent and powerful speech earlier. Like the hon. Member for Caerphilly (Wayne David), I found that the two most notable features were the beautiful countryside and, sadly, the scars of conflict. As the Prime Minister’s trade envoy to the western Balkans, I approach this debate from a slightly different perspective and will focus on the main element of my brief. Trade is, after all, not simply a means of growing economies but a means of ensuring peace and harmony between and within nation states. As the trade envoy, I visited Bosnia and Herzegovina and Serbia in October, when I held a string of meetings and visits to see for myself the fantastic partnerships that exist, as well as the numerous opportunities that we should be seizing upon.

[Alicia Kearns]

Those fantastic partnerships would not happen without fantastic, active individuals. Joining us today in the Public Gallery is the Bosnian ambassador to the UK, Vanja Filipović, and I want to tell the House how important he personally has been in ensuring that the things we want to talk about—trade, opportunity, partnership and friendship—are coming about. None of us wants to be having this securitised discussion about Bosnia, so I say thank you to him.

[Martin Vickers]

I thank my hon. Friend for that intervention. She has made a point that I was going to make in two or three pages’ time, so I hope the House will forgive me if I repeat it.

On my recent visit, I visited a range of businesses. For example, the leading retailer in the country, Bingo, is seeking to cement existing partnerships and encourage new ones with UK suppliers. I also attended a reception hosted by the newly formed British Bosnian and Herzegovinian chamber of commerce, where I met around 50 local businessmen and women eager to do bilateral business. I met the Elnos Group and its UK partner Emico, which recently won a contract to deliver 13 prefabricated substations for HS2 and is planning to bid for more. I also met the Alfa Energy Group, one of the pioneers in energy sustainability; Riva, which is looking to introduce British fashion brands into Bosnia and Herzegovina; and Adriatic Metals, which is creating high-value jobs through a silver mine and also working to boost social cohesion through its charitable foundation.

That list is not exhaustive and I apologise to any organisation or business that I have left out, but I would be here all day if I went into more detail. In fact, there was so much to discuss that no sooner had I landed back in London than our embassy, led by our excellent ambassador Matt Field and his extremely capable team, requested that I return a couple of weeks later for further meetings—a request that I was happy to accept. The point I am trying to make is that there are endless opportunities for our two countries to co-operate further and deepen our partnerships.

The possibilities are endless, but only if we have a stable Bosnia and Herzegovina that is committed to the rule of law and the international agreements to which it has signed up. Yet decision making in the country is deadlocked and preventing it from functioning. The political blockade is damaging not only the internal dynamics of Bosnia and Herzegovina but the external ones as well. One key impact is on the trade continuity agreement that the Governments of the UK and Bosnia and Herzegovina are aiming to secure. After a slow start, we were finally making progress, but the blockade has stalled the process once again and this is unlikely to be resolved until the blockade ends, meaning that Bosnia and Herzegovina is one of just three countries we have not yet signed a TCA with. As a result, customs duties have come into force, hurting businesses and trade.

That is all the more disappointing given the fact that our trading relationship has been improving in recent years. Total trade is modest, but it is increasing despite the impact of covid-19. In the four quarters to the end of the first quarter of 2021, total trade in goods and services was worth £117 million—an increase of 77% or £51 million on the previous year. This is an opportunity that the excellent chamber of commerce I mentioned is well placed to seize upon. I was pleased to play a role in the formation of the chamber earlier this year, but businesses will be aware that instability in the country will not be to their advantage. It is hoped that Bosnia and Herzegovina will gain membership of the World Trade Organisation in the near future, but this will be very much in doubt if the country is divided.

Those who seek to undermine the integrity of the country need to recognise that the High Representative’s use of his executive powers to amend the criminal code was not an attack on any ethnicity, and the country as a whole needs to acknowledge the past so that it can move forward. A political blockade prevents this. The Dayton peace agreement, and the constitution of Bosnia and Herzegovina that resulted from it, ended the 1992-95 conflict. It may not be perfect, but it has been for some time the strongest guarantee against conflict in the region. Without it, EU accession talks would not be possible. Calls for the dissolution of Bosnia and Herzegovina are contrary to the Dayton agreement. The UK stands ready to support Bosnia and Herzegovina in protecting its territorial integrity and will support political and democratic reforms that safeguard social cohesion, the rule of law and the safety of its people.

We are committed to tearing down barriers to co-operation, not putting them up, and so long as Bosnia and Herzegovina maintains the same commitment, it will have the full support of the UK as a steadfast ally. I know from my visits and from discussions with politicians and diplomats across the region that there are moderate voices to be heard. We need to work closely with them and develop not only our political links but our trading and economic ties, which can lead to peace and prosperity. We must do all we can to urge those moderate voices to engage with us and to deliver the peace and prosperity that is within their grasp.

[Several hon. Members rose—]

Bosnia and Herzegovina

Martin Vickers Excerpts

Tuesday 9th November 2021 Commons Chamber

[James Cleverly]

The hon. Gentleman is right to highlight the work of the late Lord Ashdown. Indeed, I should have paid tribute to him in my opening statement, because his work was incredibly influential and the whole House should recognise that. I will not be drawn on the size of the armed forces, but I will make the point that the Indo-Pacific tilt, as set out in the integrated review, should be read not as an exclusive focus on that part of the world, but as an additional focus. We absolutely recognise that the security of this region and our peace and security are interwoven—he is right to highlight that—and that is why I can assure him that we will work diplomatically with our international friends and colleagues and through the conversations that we have at the NATO Foreign Ministers meeting shortly in Riga to look collectively at what our response might need to be. Ultimately, the win would be to put pressure on Republika Srpska not to go down this separatist path.

[Martin Vickers (Cleethorpes) (Con)]

As the Prime Minister’s trade envoy to the western Balkans, I have made two recent visits to Bosnia-Herzegovina. Indeed, I was in Sarajevo on Thursday and Friday last week and there is no doubt that there has been a significant increase in tensions. I pay tribute to our ambassador and his excellent team over there, who are working not only to reduce those tensions, but to develop our economic ties and the economy of the country to the benefit of all the people there, particularly the young people who are leaving the country in enormous numbers. I urge the Minister to continue his work with colleagues in the Department for International Trade so that we can develop our economic ties with not just Bosnia-Herzegovina, but the whole western Balkan region. Will he urge politicians of all descriptions over there to work together and seize the moment now for peace and prosperity?

[James Cleverly]

My hon. Friend is absolutely right that international trade is a force for good and a force for peace. “When goods cross borders, soldiers do not”—I paraphrase, but I am sure that every Member of the House is familiar with that. Ultimately, we all have an interest in the economic stability and prosperity of the region. The belief that there is a failure in the economic opportunities for people in the region is a big driving force for the actions of Republika Srpska. To directly answer his question, I will continue to push for increased trade with the western Balkans and Bosnia and Herzegovina, because it is to the benefit of both us and them that it continues.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 2nd April 2019 Commons Chamber

[Mr Speaker]

Before we move to Question 2 and I call the hon. Member for Cleethorpes (Martin Vickers), I hope that the whole House will want to join me in extending a warm welcome to Gareth Evans, QC, who served with great distinction as a Cabinet Minister in Australia from 1983 until 1996 under—if memory serves me—the Hawke and Keating Governments. As we have just been talking about human rights, let us not forget that he was a key architect of the United Nations’ responsibility to protect. We celebrate that achievement, and many people around the world, sir, will be thankful to you for your leadership on that front.

[Martin Vickers (Cleethorpes) (Con)]

2. What steps his Department is taking to help tackle the persecution of Christians overseas.

[Victoria Prentis (Banbury) (Con)]

4. What steps his Department is taking to help tackle the persecution of Christians overseas.

--- Later in debate ---

[Martin Vickers]

The Secretary of State will no doubt be aware of an Open Doors report which predicts a 14% increase in the persecution of Christians this year. It also says that North Korea is the most dangerous place in which to practise Christianity, where it is seen as a threat to the Communist regime. What work are the Government doing with such non-democratic countries to try to ease the persecution of the Christian community?

[Mr Hunt]

I thank my hon. Friend for mentioning the Open Doors report, which contains some stark statistics. It states, for example, that 80% of the people who suffer persecution for their religious belief are Christians. The most striking statement is that the vast majority are in the very poorest countries: this is not, on the whole, a problem affecting people who live in affluent countries.

My hon. Friend is right to mention that countries such as North Korea have been singled out. The purpose of the review is to ensure that we use all the UK’s diplomatic leverage to highlight these issues and put pressure on those regimes to change.

UK Relations with Kosovo

Martin Vickers Excerpts

Tuesday 5th March 2019 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

Thank you, Mr Davies. It is a pleasure to serve under your chairmanship. I congratulate my APPG co-chair, the hon. Member for Keighley (John Grogan), on obtaining this important debate. I concur with everything he said.

Like the hon. Gentleman, I was delighted to be in Pristina a couple of weeks ago to mark independence day on 17 February. That was the third occasion I have had the privilege of being there, and it is always a joyful occasion, on which the local people can show how proud they are of their nation. I too wish to thank our ambassador, Ruairí O’Connell, and the staff of Parliament and the Kosovan embassy here in London, who helped put together our visit and have always been extremely helpful.

We had a number of important meetings, including with the Prime Minister and other senior Ministers, but we also met important young people who are developing the economy, particularly in the IT sector. The innovation centre in Pristina was very impressive, and there are certainly opportunities, perhaps including those created by the football tournament, to develop our business connections further. As the hon. Gentleman mentioned, Fox Marble is a major British investor in Kosovo. It has testified to the fact that it is possible to do business between Kosovo and the UK, although, as has been said, there is an acknowledgement that more must be done to tackle corruption.

Having taken two or three minutes of the hon. Gentleman’s time, I will hand over to the Minister. I hope that he is able to develop the themes we have touched on.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 26th February 2019 Commons Chamber

[Sir Alan Duncan]

We are working closely with the Colombian Government in defending the continuation of the peace process. They have borne a massive burden of people who have left Venezuela, and we are at the forefront of European efforts to make sure that we can find a solution in Venezuela, in response to the absolutely unacceptable conduct of Mr Maduro.

[Martin Vickers (Cleethorpes) (Con)]

T5. Along with the hon. Member for Keighley (John Grogan), I was in Kosovo last week representing the all-party group. Ministers will be aware of the concerns about land swap talks between Kosovo and Serbia. What assessment have the Government made of this and other potential changes to borders in the western Balkans?

[Sir Alan Duncan]

As I set out to the Foreign Affairs Committee last September, the Government’s assessment is that border changes in the western Balkans would risk instability and contagion in the region and beyond. We support efforts to reach a normalisation agreement between Kosovo and Serbia, one that is deliverable and sustainable, and enjoys wide domestic support in both countries. We would support such an agreement.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 4th December 2018 Commons Chamber

[The Minister for Europe and the Americas (Sir Alan Duncan)]

As with all countries, I urge anyone thinking of travelling to look at the travel advice, which we offer in a very disciplined way on the Foreign Office website. Should the hon. Gentleman wish to discuss an individual case, then of course I would be very happy to see him as he asks.

[Martin Vickers (Cleethorpes) (Con)]

T7. As a vice-chairman of the all-party group on Albania, I and colleagues met the Albanian ambassador and Albanian politicians last week. They are very keen on developing business links with the UK. In view of the Foreign Secretary’s initiative to have more business leaders involved to work alongside our diplomats, can I urge him and the Government to engage with Albania and other western Balkan countries to develop our links?