Oral Answers to Questions

Mike Freer Excerpts

Thursday 20th January 2022 Commons Chamber

[Sarah Green (Chesham and Amersham) (LD)]

1. What support her Department is providing to SMEs that trade with the EU.

[The Parliamentary Under-Secretary of State for International Trade (Mike Freer)]

The refreshed export strategy, launched in November, focuses on the barriers to trade faced by small and medium-sized enterprises, using targeted interventions that help businesses at every stage of their exporting journey. Our newly unified Export Support Service provides a single point of contact for businesses trading with Europe, as one of the central elements of the strategy.

[Sarah Green]

After finally getting to grips with last year’s contradictory guidance on trading with the European Union, one family-run business in Chesham has immediately come up against problems with the new rules introduced this month. They tell me that

“we would love to do it all absolutely correctly”,

but that nobody will tell them what correctly is. Will the Minister support the thousands of UK businesses struggling to trade with Europe by clarifying the Government’s new rules, and will he work with colleagues in the Department for Business, Energy and Industrial Strategy to reopen and expand the SME Brexit support fund?

[Mike Freer]

The ESS is there to help traders who are struggling with elements of trading with Europe and it will continue to do so. It is available online and by telephone, but if the hon. Lady would like me to meet her constituents, I would be more than happy to do so.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Given the growing list of companies setting out the real and obvious difficulties they are facing in accessing markets in Europe, and given the many very practical suggestions that business groups have put forward to the Government in recent weeks, from negotiating a veterinary agreement and making progress on mutual recognition, to even just getting agreement on shared customs advice, when are Ministers going to try a bit harder to help businesses make Brexit work?

[Mike Freer]

As far as I know, we have suggested solutions and are waiting for the EU to respond.

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[Paul Howell (Sedgefield) (Con)]

13. What recent steps her Department has taken to support manufacturing businesses to (a) increase exports, (b) participate in the global market and (c) compete internationally.

[The Parliamentary Under-Secretary of State for International Trade (Mike Freer)]

In 2021, the DIT launched a new exports campaign: “Made in the UK, Sold to the World”. The campaign, in line with our refreshed export strategy, celebrates the quality of the UK manufacturing sector and its potential to export worldwide. We are reaching out to businesses across all UK regions and nations to create opportunities for our manufacturers.

[Paul Howell]

I thank the Minister for his answer. I recently had the pleasure of visiting Gestamp on the industrial estate in Newton Aycliffe in my constituency. It supplies thousands of subframes every day to motor manufacturers worldwide, but it has outlined to me concerns that have been raised with it by European companies about the rules of origin and potential tariffs on goods supplied from the UK. Will the Minister reassure Gestamp that it is absolutely safe for European businesses to trade with British companies and that our trade deal with the EU will not result in future tariffs? I encourage him to find time in his diary to visit that fantastic business.

[Mike Freer]

My hon. Friend fights hard for his constituency. I am pleased to reiterate that the trade and co-operation agreement ensures that businesses in every part of the UK can continue to sell to their customers in the EU. We successfully negotiated a zero tariff, zero quota trade deal, which means that goods traded between our markets can qualify for zero tariff trade as long as they meet the rules of origin requirements set out in the TCA. We have secured modern and appropriate product-specific rules of origin that are tailored to the needs of UK business, including innovative rules for the automotive sector. I am happy to join him in visiting the company.

[Mark Eastwood (Dewsbury) (Con)]

15. What steps her Department has taken to reduce barriers to global trade for British businesses.

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[Shaun Bailey (West Bromwich West) (Con)]

T2. With over £2.6 billion-worth of exports, I am sure my right hon. Friend agrees that the Black Country is, and will remain, the beating industrial heart of the west midlands. As she goes out with ministerial colleagues to bat for the Black Country on the industrial stage, what is she doing to ensure that supply chain issues in particular are at the forefront of our trade negotiations, and that businesses such as KJV Furniture in Oldbury are able to import and export smoothly; and will she ensure that once again other areas of the world can see the fantastic wares that are made in the Black Country?

[The Parliamentary Under-Secretary of State for International Trade (Mike Freer)]

My hon. Friend raises an important point. A key challenge facing the UK and other major exporters is shipping container costs, and there is ongoing engagement across Government, including the Department for Business, Energy and Industrial Strategy, the Competition and Markets Authority and the Department for Transport, to ensure that we understand the background causes of price rises and their impacts, such as by contacting the shipping lines and engaging with international partners where necessary to address the key issue of supply lines that my hon. Friend raised.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Given the Government’s underwhelming performance on trade to date, even the small gains from joining the comprehensive and progressive agreement for trans-Pacific partnership would be welcome, but one issue that the previous Secretary of State always ducked was China’s interest. Given President Xi’s reaffirmation on Monday of China’s desire to join the CPTPP, can the Secretary of State clarify whether Britain would have the right to veto China’s accession?

[Mike Freer]

The hon. Gentleman raises an important point. These issues are very complex, but what I will say is that we are first in the queue to join CPTTP, and after that all things are up for review.

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

T5. The last couple of years have been extremely difficult for the shell fishermen in Cornwall, include those on the River Fal, which has one of the most historic and sustainable fisheries in the world. That said, fishing communities across the UK will benefit from the £75 million boost to the sector; can my right hon. Friend the Secretary of State assure me that the Department will work with the Cornish fishermen benefiting from this investment and help them further capitalise on it by ensuring that they are able to play their part in the Government’s “Race to a Trillion” strategy?

[Mike Freer]

My hon. Friend raises an important point, particularly for her constituency, and I can give the assurance that the Government will continue to work closely with Seafish and the Shellfish Association of Great Britain to encourage their members to look at new markets and drive awareness of UK seafood in international markets. We have a network of trade advisers in the UK and overseas who can support the sector to trade successfully, and I am happy to put any of her businesses in contact with them.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

In December, the Government snuck through a change to the UK’s arms export rules, and charities such as Oxfam have warned that these changes will lessen transparency over arms exports and could see UK arms being used against civilians such as those in Yemen. What steps is the Minister taking to ensure that UK arms exports are not used to commit breaches of international humanitarian law?

[Antony Higginbotham (Burnley) (Con)]

T6. The Government will be aware of the global shortage of semiconductor chips. The impact of that is being felt far more by SMEs than the largest companies, which can make large purchases years in advance. What steps are the Government taking to support those SMEs to import semiconductors so that they can keep operating? If I write to the Department, will they look at a specific constituency case of mine?

[Mike Freer]

My hon. Friend raises what is a vital point in a global economy. The Government are carrying out a review of the UK’s international and domestic approach to semiconductor supply chains. The Department for Digital, Culture, Media and Sport is leading that review, supported by the Department for International Trade. We also support growth in the UK semiconductor sector by driving investment—for example, by promoting the world-leading compound semiconductor cluster in south Wales, as part of our high potential opportunities programme. If my hon. Friend would care to write to the Department, we will of course take up the constituency issue.

[Stephen Kinnock (Aberavon) (Lab)]

T3. The European Union secured a comprehensive exemption from the section 232 steel tariffs way back on 30 October 2021. Here we are, almost three months later, and talks with the UK Government are only just starting. To ensure that the talks proceed smoothly and rapidly, we need to understand the cause of the delay. Does the Secretary of State agree that the probable cause is the Government’s shambolic handling of the Northern Ireland protocol? If she does not think that is the cause, perhaps she will enlighten the House about what she thinks the cause of the delay has been.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

T9. As some of my colleagues have already pointed out, it would be wrong to say that there is not some nervousness in rural Scotland about what the deal with Australia will mean. Some of that is caused by the anti-trade scaremongering on the SNP Benches, but will the Minister expand on the opportunities for Scotland as a result of our deal with Australia?

[Mike Freer]

The UK-Australia free trade agreement could boost Scotland’s economy by about £120 million. The deal will help boost Scottish exports by removing tariffs of up to 5% on Scotch whisky and through additional commitments to release goods from customs quickly. Scotland’s services firms will also benefit from access to billions of pounds’ worth of Australian Government contracts. Staff will be able to travel for work with easier access to temporary entry visas.

[Sarah Green (Chesham and Amersham) (LD)]

T4. Can the Secretary of State confirm whether she is still undertaking discussions with UK trade partners on inserting clauses on investor-state dispute settlement systems into future trade deals? There is evidence that they are opaque and could open the UK to law suits from multinational corporations. Will she confirm whether she is still pursuing them?

[Martin Vickers (Cleethorpes) (Con)]

Last Friday, along with a number of local businesses, I took part in a meeting of the parliamentary export programme for my constituency businesses. What additional initiatives do Ministers have to encourage small and medium-sized enterprises, in particular, to look at and engage in the export market?

[Mike Freer]

I am grateful for my hon. Friend’s support of the parliamentary export scheme. It is about to be refreshed and relaunched so that we can provide additional support to any of our parliamentary colleagues who wish to engage with companies in their constituency about exports. I ask him to hold fire while we relaunch it, and he will be one of the first I contact.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T7. May I bring the Secretary of State’s attention to the analysis published recently by the Scotch whisky industry, showing that even a phased reduction of the 150% tariffs on its products sold into industry could bring back a £1 billion increase in exports and something in the region of 1,300 UK jobs? As she continues with the dialogue with India about a trade deal, will she give us some commitment that the reduction and elimination of that tariff would be one of her biggest priorities in an early harvest agreement? [R]

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[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

This Government, as we know, have blundered many times, and now a lobster or a leg of chicken cannot be sold to any country in the world without five, eight or 10 bits of paperwork. I am trying to prevent another blunder.

The Chartered Institute of Patent Attorneys supports the accession to CPTPP, but cautions that

“we believe that if the UK were to sign up the CPTPP IP chapter as currently drafted, this could have unintended consequences”

for our reputation as an international patent leader, for innovative small and medium-sized enterprises, for UK GDP and for the UK patent profession. It asks that

“the UK…should take a very firm position and insist on carve outs for the UK from these provisions of CPTPP.”

Will the Department take up that ask and insist that it happens?

[Mike Freer]

The hon. Gentleman raises a good point. It is in my diary to meet him in the next few weeks; I suggest that he brings that paper with him and we can have a more fruitful discussion.

[Afzal Khan (Manchester, Gorton) (Lab)]

Can the Minister outline how much cotton and how many products to construct solar panels have been imported into the UK from Xinjiang in the past year?