Oral Answers to Questions

Mike Freer Excerpts

Thursday 3rd March 2022 Commons Chamber

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

We are negotiating and implementing free trade agreements and removing barriers that British businesses face across the globe. Last financial year, we resolved more than 200 barriers across 74 countries, an increase of 20% on the previous year. We have so far secured FTAs with 70 countries plus the EU, covering nearly £800 billion-worth of bilateral trade in 2020, delivering benefits for communities across the country.

[Andy Carter]

British produce and food and drink are some of the best in the world, especially when they are made in the north-west of England. What steps are the Government taking to reduce market access barriers for businesses in Warrington South and the north-west? What have they done in the past year to help British exporters?

[Mike Freer]

The Department is working hard to reduce barriers to trade, including for my hon. Friend’s constituents in Warrington South. For example, I can tell him that we have successfully secured access for British wheat to Mexico, poultry to Japan and lamb to the USA, just to name a few of the barriers that have been removed, boosting food and agriculture among many other products across the globe.

[Mr Speaker]

I call the shadow Minister.

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

Survey after survey of business owners report unnecessary hassle and difficulty in exporting to European markets, with extra red tape, checks and delays too often the norm. As no one in the Government is getting a grip on this, why does the Secretary of State not get herself down to Dover to understand directly what needs doing to ease the very real difficulties that British businesses face?

[Mike Freer]

If we could export broken records, I think the hon. Gentleman would be a winner, but I have to say that his description is far from the truth. What are the Government and the Department doing? We have the export support service, the Export Academy, export champions, international trade advisers in the UK and overseas, agri-commissioners, hundreds of staff focusing on specific sectors, the tradeshow programme, UK Export Finance and trade envoys. The key issue is that in-country, where we find specific issues, we liaise country to country to resolve them. It is simply not true that the Government are doing nothing. In fact, we are seeing exports starting to recover and appetite for British goods and services going up ever more.

[Mr Speaker]

I call the SNP spokesperson.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Minister is reeling off figures, but he might want to consider this one: 4,300 fewer businesses in the UK are exporting goods and services than in 2018, according to the Government’s own annual stocktake. Why are this Government so anti-trade?

[Mike Freer]

The information is that exports to the EU are now up. Also, the export support service is now proactively contacting those customers who have stopped exporting, because there can be a variety of reasons why people drop off the radar for exporting. Just seeing the glass half empty is not boosting trade in the United Kingdom. We are proactively contacting those companies to get them back on the pitch and back exporting, and talking up the United Kingdom.

[Drew Hendry]

They are great at talking the talk but not at walking the walk. The European Union will remain Scotland and the UK’s largest export market for some time to come, yet this Government have done nothing to remove or even ease non-tariff barriers, bureaucracy or Brexit red tape, and they have not done anything about the labour shortages that are hampering exporters. They have spent the past year decimating the fishing industry and its livelihoods. This year, why are they going after farmers, with the Australia and New Zealand trade deals, already roundly condemned by the farming industry, set to result in floods of cheap, lower-quality meat and dairy products being exported into the UK from around the globe?

[Mike Freer]

All I can say to the hon. Gentleman is that it is a good job that I am leading on exports, not him, because all he ever sees is problems. We are doing stuff. We are doing exports. It is simply not true that the Government are doing nothing. I have been out in the markets. I am not sure whether the Scottish lead on exports has done many overseas visits. I am happy to work with the Scottish National party if it would actually come out and do something. We are removing trade barriers. We have already sent poultry to Japan and lamb to the USA. We are working with the Gulf states, increasing halal sales and sales of Welsh lamb. It is simply not true that this country will be flooded with cheap imports. That is pure scaremongering.

[Bill Esterson (Sefton Central) (Lab)]

3. What further steps she is taking to increase exports of steel.

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

To support businesses exporting to the EU, the Department launched the Export Support Service in October 2021. The ESS provides businesses with access to answers about exporting their products or services to Europe, routes to other Government services and access to other forms of export support, such as the export academy. Monthly goods exports to the EU for December 2021 are nearly 21% higher than the 2020 monthly average, higher than the 2019 monthly average and higher than the 2018 average.

[Sarah Olney]

My constituent George Chattey runs a company called LuvJus drinks. He imports his drinks, which are manufactured in Austria. He recently had a consignment stuck in a warehouse for more than two and a half months because he could not get the right advice, either when he placed the order and arranged for the export, or when the drinks were in the warehouse and needing release. Can the Minister tell me what he is doing, or what the Department is doing, to improve the quality and availability of advice to importers, both at the point where they are arranging their imports and when such problems occur? We cannot have perishable goods sat in warehouses for that length of time, and my constituent had an enormous amount of trouble getting the right advice from Her Majesty’s Revenue and Customs and other bodies.

[Mike Freer]

Actually, no, I cannot tell the hon. Lady, because I am the Minister for exports, not the Minister for imports. What I can do is ensure that the relevant Minister comes back to the hon. Lady with a substantive answer if she wishes to write to me with the details.

[Wera Hobhouse]

In my constituency, businesses keep contacting me to share details of the detrimental effects that Brexit has had on their business, such as countless zero-sales days, which they had not experienced before. I am not making that up. Will the Government listen to small businesses, stop their Brexit ideological blind spot about this and, for example, reopen the SME Brexit support fund, with a simplified application process and an expanded remit?

[Mike Freer]

I am not sure I am the one with the Brexit blind spot, but I have to say that the Government are working very hard with our trade industry groups and our representative bodies. I frequently meet those groups, ranging from the Federation of Small Businesses all the way up to the CBI. Officials, both here in London and in post, will work with specific Governments to eradicate any issues inter-country, where there is perhaps an overzealous interpretation of the rules. More deep-seated problems will be dealt with on a Government-to-Government level. If the hon. Lady has details of specific businesses and specific issues that she would care to share, I would be more than happy to ensure that the Export Support Service gets back to her or to her constituents who wish to export.

[Sir Desmond Swayne (New Forest West) (Con)]

UK aid promoted trade in Africa by making borders seamless through digitising all the administrative processes. Is that on our agenda for trade with the EU at all? It is monstrous that we are filling in forms.

[Mike Freer]

I understand from my right hon. Friend the Minister for Trade Policy that we aim to have the best border in place by 2025.

[John Howell (Henley) (Con)]

Does the Minister accept that the EU is not the whole of Europe, and that a wider Europe is out there open for SMEs? Will he say what he is doing to encourage trade with that wider Europe?

[Mike Freer]

My hon. Friend is right to say that there is a global market, not just the EU, and the wider European market. The export strategy “Made in the UK, Sold to the World” is there to assist. Specifically on support, we have the ESS, the export academy, the export champions, a network of trade advisers both here and overseas, agrifood and drink attachés, the tradeshow programme and UK Export Finance. If any hon. Member wishes to find out more about the specific support we provide, they are welcome to attend the parliamentary export showcase on 9 March in Portcullis House.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I am sure you would agree, Mr Speaker, that it is hard to concentrate on trade this morning, given the unfolding tragedy we see in Ukraine. But getting down to the earth of trade, may I say that Huddersfield is the beating heart of manufacturing and we also have lots of farmers in our beautiful countryside in my constituency? How have this Government got it so wrong that my farmers are unhappy and my SMEs are unhappy, because exporting, which they are so good at, is so darn difficult now and they do not seem to be getting any direction or support from this Government?

[Mike Freer]

All I can suggest is that the hon. Gentleman gets his exporters to talk to me and not to him, because we will provide them with an optimistic and enthusiastic support service. He should come along on 9 March to the export showcase and find out the specifics of the practical support that we will give to his constituents.

[Nia Griffith (Llanelli) (Lab)]

Recent research from the British Chambers of Commerce shows that over two thirds of SMEs that export say that the EU trade deal is not enabling them to grow or increase sales. Rather than just saying that he is waiting for answers from the EU, as he did at the last International Trade questions, will the Minister tell us precisely what proposals he has made to the EU, and when, to reduce the additional cost of paperwork associated with export health certificates and to eliminate the problem of companies being asked to register for VAT in multiple EU states?

[Mike Freer]

I will take that question away to my colleagues in both the Treasury and the Foreign Office, and get her a detailed answer.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

8. What further steps she is taking to promote trade and exports for UK businesses.

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

Perhaps I should just stand at the Dispatch Box full time. My Department has a strong package of support for British exporters, as I have reiterated several times already this morning, so that they can take advantage of the markets that we are opening through our free trade agreements. From encouraging businesses to export through the “Made in the UK, Sold to the World” campaign to our world-leading UK export finance offer and our on-the-ground support in the UK and overseas, UK businesses are being supported at every stage in their export journey. I repeat that there is an offer to attend the export showcase on 9 March.

[Neale Hanvey]

UK connectivity is concentrated in England, and particularly in the south-east of England. That presents a growing challenge to Scottish businesses, given the impact of carbon and haulage costs, and queuing at the port of Dover, particularly with perishable export goods. Does the Minister agree that reviewing the port infrastructure, and particularly the reintroduction of ferry links from Scotland to Europe, is of growing urgency, and will he meet me to discuss possible mechanisms to improve that situation?

[Mike Freer]

I am more than happy to meet the hon. Gentleman to look at the specifics, and where necessary to liaise with the Scottish Government on any specific Scottish matters.

[Martin Vickers (Cleethorpes) (Con)]

The renewable energy sector has been one of the success stories in the UK in recent years, particularly in my constituency where there are many well-paid jobs. What are the Minister and his Department doing to ensure that we can export more from the renewable energy sector?

[Mike Freer]

First, may I thank my hon. Friend for the work that he does as one of the Prime Minister’s trade envoys? The work that we are doing on green energy and renewables is at the heart of the export strategy. On any specific issues that my hon. Friend would like to take up to ensure that we can boost that world-beating sector, we would be more than happy to link up his constituents, or any companies that he wishes to put in contact with us, so that they can exploit the opportunities globally, where we are a world leader.

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

Promoting trade has to be done in the context of protecting British interests. The 2019 Conservative manifesto made a commitment to cover 80% of UK trade with free trade agreements. The unanswered concern of the Farmers Union of Wales about meat on or off the bone raised by my hon. Friend the Member for Ogmore (Chris Elmore), who is no longer in his place, shows just the level of scrutiny required to protect the interests of our farmers, as does the protection of our jobs, consumer standards and environmental and welfare commitments. Does the Secretary of State not worry that not only will she be responsible for a broken manifesto promise but, by taking on an “any deal will do” approach, she is undermining UK interests?

[Mike Freer]

No, the whole ministerial team are absolutely confident that we will continue to deliver world-beating FTAs, and we liaise with all who have interests. The hon. Lady mentioned things such as agriculture and food, and we liaise with representative bodies such as the NFU to ensure that their concerns are fully represented in the FTAs. I am sure that she will join us in celebrating all the FTAs that are opening up new markets so that we can export the best of British products.

[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

9. What recent discussions she has had with the Secretary of State for Environment, Food and Rural Affairs on the potential impact of the Government’s plans for regulation of foie gras and fur imports on trade negotiations.

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[Alexander Stafford (Rother Valley) (Con)]

10. What steps her Department is taking to increase trade with the Persian Gulf countries.

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

The Gulf is an important trading region for the United Kingdom, with an overall trade relationship worth £32.4 billion in 2020. The countries of the Gulf Co-operation Council are among our largest trade partners globally. Having just completed a public consultation, we aim to start negotiations on a free trade agreement with the GCC later in 2022. Work continues bilaterally with countries in the region. In fact, having just returned from a visit to the United Arab Emirates, I can tell my hon. Friend that I have seen at first hand that the opportunities for UK trade in the Gulf are enormous.

[Alexander Stafford]

Can my hon. Friend the Minister set out some of the potential benefits for the UK, and especially for Rother Valley, of a trade deal with the Gulf Co-operation Council, particularly around jobs and investment?

[Mike Freer]

I can reassure my hon. Friend that the Gulf represents a massive opportunity for many goods, from education and defence to vehicles, food and agriculture. It is an open market where people want to buy British, where we are a trusted partner and where we are regarded as a seller of high-quality goods. I can reassure him that in food and drink alone, the demand for top-quality British produce is already more than £600 million a year.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

11. What further steps she is taking to help businesses export to European markets.

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

As I told the hon. Members for Richmond Park (Sarah Olney) and for Bath (Wera Hobhouse) earlier, my Department launched the Export Support Service in October 2021, as a free service to support exporters to Europe. That unified service is just one part of the package of measures—I have listed them a couple of times—that the Department provides to UK exporters.

[Gerald Jones]

Small businesses in Merthyr Tydfil and Rhymney continue to tell me the difficulties that they are having with exporting to the EU and the added bureaucracy, and I am really keen to hear from the Minister about further support. I heard what he said earlier, but I do not think the message is getting through. There is a lesson to be learned about communication and how to get that message to businesses, because they are clearly not aware of the level of support that is out there. Perhaps he could give some more detail about the support and grants that are available, and what more the Government will do.

[Mike Freer]

I will not reiterate the full list of support that is available, but the hon. Gentleman is welcome to come to the export showcase next week to see all that in detail. If he would be interested in becoming a parliamentary export champion for his constituency, to make that line of communication much stronger and direct to him, I would be very happy to facilitate that appointment.

[David Duguid (Banff and Buchan) (Con)]

12. What progress her Department has made on securing UK membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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[Hywel Williams (Arfon) (PC)]

15. What steps she is taking to support agricultural exports to the EU.

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

We support our farmers and food producers through all stages of their export journey to Europe and across the world. That includes support to exhibit at global food and drink trade events such as Sial in Paris and through the UK trade show programme. We also provide support through our network of agriculture, food and drink trade advisers based across Europe and we are working with the National Farmers Union and the Agriculture and Horticulture Development Board to establish a mentoring programme for agricultural exporters.

[Hywel Williams]

The British Veterinary Association reports that over the past two years the number of EU vets registering for work in the UK has fallen by two thirds, while demand for food-related export certificates has increased 12-fold, by 1,255%. Wales was denied a seat at the trade negotiations, of course, and now Welsh farmers face increased competition from New Zealand and Australia. Is the hon. Gentleman really satisfied that his Government here in London are supporting Welsh food exports?

[Mike Freer]

Yes.

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[Selaine Saxby (North Devon) (Con)]

T2. We have many successful global exporters home grown in North Devon, such as Turnstyle Designs, S+H lighting and Saltrock surf wear, but many smaller companies feel that this is not something that they can do. Will my hon. Friend highlight what support is available to companies in remote and rural areas such as North Devon to help them to grow and export?

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

My hon. Friend makes a very good point. We have already undertaken over 80 virtual Export Academy events in the south-west of England. If she would like to attend the export showcase on 9 March, we can show her the full range of support that we can provide to her companies.

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[Tom Hunt (Ipswich) (Con)]

T3. Both myself and my hon. Friend the Member for Peterborough (Paul Bristow) had the great privilege of visiting Bangladesh last month with the Al-Tazid Foundation, where we had the opportunity to meet not only His Excellency the High Commissioner, who is doing such a fantastic job, but the Bangladeshi Foreign Minister. We also took part in the business side. Bangladesh’s economy is growing at great pace; it is an increasingly dynamic economy. I appreciate that we are going to do a trade deal, but can the Secretary of State outline what steps are being taken by the Government to intensify trade, co-operation and investment between our country and Bangladesh?

[Mike Freer]

Bangladesh is one of the fastest growing global economies and is strategically important to the UK as part of the Indo-Pacific tilt. DIT is preparing to hold a second trade investment dialogue with Bangladesh this year and there will be a visit by the Prime Minister’s trade envoy later this month. I am more than happy to speak to my hon. Friend, and I will ensure that any specific issues are fed into that dialogue.

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

Trade rules are so often rigged against women, especially women living in lower income countries. Will the Department commit to carry out mandatory gender impact assessments on all future UK trade deals in order to promote greater gender-just trade?

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[Harriett Baldwin (West Worcestershire) (Con)]

T5. I warmly welcome the new trade deals that are being announced. Not all of them include financial services, which is our biggest export sector. Working closely with the Treasury, can the Secretary of State update the House on where the strategic focus is in increasing access for financial services firms and financial services exports?

[Mike Freer]

The Government remain committed to championing export opportunities for our world-class financial services businesses. Through targeted export campaigns and an expansion of existing support services, we are promoting trade opportunities across the financial services spectrum and in specific areas such as asset management, green finance, fintech and insurance. The Government are also signing ambitious free trade agreements that will open new markets and reduce market access barriers for UK financial services, and I am in regular dialogue with the City Minister, my hon. Friend the Member for Salisbury (John Glen) on these issues.

[Bill Esterson (Sefton Central) (Lab)]

When the Secretary of State responded to the question about luxury goods by not answering it, it begs the question, why not, and raises the question of whether there are conflicts of interest behind it. The contrast with Syria, where export controls were put in place, is stark. If it was appropriate for Syria, why is it not appropriate for Russia? I remind her of her words. She talked about working with allies and tightening the screw, so will she now, with her colleagues across Government, put in place that ban on luxury goods?

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[Jo Gideon (Stoke-on-Trent Central) (Con)]

This year’s research by Social Enterprise UK has found that social enterprises are overtaking the rest of the private sector in the proportion of firms that are exporting overseas. Does my hon. Friend agree that that shows the value of greater diversity in business?

[Mike Freer]

My hon. Friend is absolutely right. With my other hat on as Minister for Equalities, I can say that with the full support of the Secretary of State, we are working to ensure that the exporters and their supply chains are fully representative of all sections of society.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

What conversations has the Secretary of State had with her counterparts in the Scottish Government about how to increase Scottish exports to South American countries?

[Mike Freer]

I am planning to visit our new trade and investment office in Edinburgh and I look forward to a dialogue with my counterpart at the first opportunity.

[Scott Benton (Blackpool South) (Con)]

Can the Secretary of State update the House on the plans for a UK-Israel innovation summit and free trade agreement, following her recent visit?

[Mike Freer]

Israel is one of our strongest allies and largest partners in global trade. We are working closely with our Israeli counterparts to deliver a successful summit in the next few weeks.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that although the big landmark trade deals, such as those with Australia and New Zealand, grab all the headlines, of equal importance is the less-publicised work that she is doing to tear down the trade barriers that prevent the export of British goods and services around the world?

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[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, there are 123,000 SMEs. What steps is the Secretary of State taking to ensure they are awarded the same trade opportunities as those in the rest of the United Kingdom, and has the Northern Ireland protocol hindered trade opportunities for SMEs?

[Mike Freer]

I will raise that with my colleagues in the Northern Ireland Office to make sure that they have full access to all the trade support mechanisms that I outlined previously to ensure that all Northern Ireland businesses are fully aware of all the support packages available to them.