Oral Answers to Questions

Nigel Huddleston Excerpts

Thursday 29th June 2023 Commons Chamber

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

3. What recent assessment she has made of the potential impact of her Department’s trade policies on food prices.

[The Minister for International Trade (Nigel Huddleston)]

We recognise the important role that trade can play in improving food security. That is why our trade policy aims to help people to access good-quality and good-value food. Our free trade agreements help to remove market access barriers, supporting our importers and exporters. The new developing countries trading scheme, for example, reduces tariffs on nearly £1.4 billion-worth of agriculture goods, and we work with international partners, including at the World Trade Organisation, to remove trade barriers and strengthen the UK’s global food supply.

[Martyn Day]

I am grateful to the Minister for his answer, but Melissa Leach, the director of the Institute of Development Studies, has spoken about the need to increase access to affordable, nutritious food. She said:

“Over the last decade, charities have stepped in to plug the gaps left by the state but this is not an acceptable or sustainable way to address the growing prevalence of hunger”.

Does the Minister accept that his Government’s commitment to Brexit has led to increasing prices of food that is imported and has contributed to food poverty in the UK?

[Nigel Huddleston]

The hon. Gentleman will be well aware that food price inflation is not unique to the UK; it is a global phenomenon that we all face. Actually, food price inflation peaked at 19.2% in the EU and at 19.2% in the UK, so we are facing the same problems. However, we have provided more than £94 billion-worth of support precisely to help the most vulnerable in society.

[Greg Smith (Buckingham) (Con)]

There are many factors impacting food inflation, not least increasing global input costs, but surely the most important thing that my hon. Friend’s Department can do to shore up British agriculture and have a positive impact on food prices is to carry on, full speed ahead, getting the new trade deals that will see British first-class produce sold as a premium product worldwide.

[Nigel Huddleston]

My hon. Friend is absolutely correct. It is really important that we have support across the House for these important trade deals. They are good for the British economy, particularly good for British farmers, and good for prices in the UK. I hope, at some point, to see the Opposition parties supporting one of these important deals, which are transparently in the interests of British consumers in every nation and region of the United Kingdom.

[Mr Speaker]

I call the shadow Minister.

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

Since 2019, food prices in the UK have rocketed by 26%, a figure that is among the highest in the G7, yet the Prime Minister’s plans for new border checks on highly perishable food from Europe could push prices up again. A veterinary agreement would cut the cost of bringing food into Britain from Europe. Given that many families are already struggling to put enough food on the table and that every significant business organisation supports a veterinary agreement with the EU, why will the Secretary of State not take the sensible and pragmatic step of starting negotiations for such an agreement?

[Nigel Huddleston]

The hon. Gentleman will be aware that discussions are happening on an ongoing basis with the Foreign, Commonwealth and Development Office about the trade and co-operation agreement and other matters. We have very constructive dialogue with our EU partners. In fact, the Secretary of State and I had a meeting with the EU ambassadors just yesterday.

As for our achievements since leaving the EU, it is important to stress one thing: we have been laser-focused on making sure that the benefits are for the British consumers. We have got rid of thousands and thousands of tariffs. We have liberalised tariffs, reduced them or eliminated them altogether. For example, to compare us with the EU, 27% of the EU’s current external tariffs are zero-rated, whereas the proportion for the UK is 47%. We are significantly reducing tariffs, which is in the best interests of the British consumer, as a result of leaving the European Union.

[Mr Laurence Robertson (Tewkesbury) (Con)]

4. What steps she is taking to increase trade with African countries.

[The Minister for International Trade (Nigel Huddleston)]

To increase and grow trade with Africa, we are using our nine trade agreements, covering 18 African nations. In April 2024, the Prime Minister will host the second UK-Africa investment summit to showcase investment opportunities and advance two-way trade. Just this month, we launched the developing countries trading scheme, which covers 65 countries, including 37 African countries.

[Mr Robertson]

That is all good news, particularly the developing countries trading scheme. I was recently in Ethiopia for a trade visit. Can the Minister tell me how the developing countries trading scheme, in particular, will help Ethiopia?

[Nigel Huddleston]

I thank my hon. Friend and constituency neighbour for the work he does as the Prime Minister’s trade envoy to Ethiopia and many other countries. I was also in Ethiopia recently, and many people were praising my hon. Friend and his work. He is right that the developing countries trading scheme will reduce tariffs, which is a win-win both for developing countries, making it easier and cheaper for them to export to the UK, and for UK consumers because it will reduce prices. It is not just a matter of having the deal; we are laser-focused on making sure the benefits of the deal are realised, with more than 100 Department for Business and Trade officials working in Africa to make sure we get the full benefit of these deals.

[Tim Farron (Westmorland and Lonsdale) (LD)]

As the Government rightly consider new trade deals with other countries, what lessons will they learn from the hideous mistakes made in the New Zealand and Australia trade deals? The right hon. Member for Camborne and Redruth (George Eustice), a former Secretary of State for Environment, Food and Rural Affairs, rightly said that they are bad deals for Britain. Given that British farmers are so angry with this Government, having been thrown under the bus on animal welfare and on environmental and cost issues, will he learn lessons from those mistakes and make sure British farmers are protected, and that environmental and animal welfare standards are protected, too?

[Nigel Huddleston]

I am, quite frankly, astounded by the hon. Gentleman’s comments. He is well aware, as I have said repeatedly and is widely acknowledged, that the trade deals we have developed, including with Australia and New Zealand, are economically beneficial right across the UK, including in his constituency. If he does not wish to support policies that are in the best economic interests of his constituency, that is something his constituents probably need to recognise come the next election.

[Nicola Richards (West Bromwich East) (Con)]

5. What progress she has made on negotiating a bilateral free trade agreement with Israel.

[The Minister for International Trade (Nigel Huddleston)]

We are continuing to make progress towards an upgraded UK-Israel free trade agreement, focused on services, procurement and innovation, and we concluded the second round of negotiations on 17 May. As two service-driven economies, this negotiation is an excellent opportunity to build on our existing goods-focused agreement, particularly to boost trade in services with an innovative, high-tech nation such as Israel.

[Nicola Richards]

The UK’s trade with Israel increased by 42% in 2022 compared with 2021, and it is valued at £7.2 billion. Israel is a key trade and security partner in the region, and it is a world leader in many areas. Can the Minister update the House on the Department’s progress on the trade aims outlined in the 2030 road map for UK-Israel bilateral relations, namely the establishment of a UK-Israel free trade agreement, the Britain-Israel Investment Group and a UK-Israel innovation and investment summit?

[Nigel Huddleston]

My hon. Friend is all over the numbers, which saves me from repeating them. The benefits of the trade agreement are obvious, and we continue to strengthen our trade relationship with Israel, which is a valued friend and ally. As outlined in the 2030 road map for UK-Israel relations, a service-based free trade agreement between our two nations will act as a cornerstone of this relationship in years to come. As such, we are pleased to have successfully concluded the second round of negotiations in London just last month, and we look forward to holding further talks in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for that very positive response. We in Northern Ireland are keen to ensure that the bilateral trade agreements benefit our companies as well. Some people and councils across this great United Kingdom of Great Britain and Northern Ireland wish to downgrade Israel’s goods. I know that the Minister and our Government want to do the very opposite. Will the Minister tell the House what he is prepared to do to ensure that Israeli goods are promoted right across this great United Kingdom of Great Britain and Northern Ireland?

[Nigel Huddleston]

Absolutely. Israel is already a really important trading partner, right across the UK, and it will continue to be so. As we negotiate this deal, it is important that we focus on the areas of greatest opportunity. Once the deal is done—of course, this is an upgrade—we will be actively working to make sure that the communications about the benefits of the deal are understood by everybody. We will be working with various bodies and groups, including the devolved Administrations and bodies, to make sure that we take full benefit from these deals. Signing the deal is one thing, but taking and making the best of the opportunities is another—we will be working on that as well.

[Richard Graham (Gloucester) (Con)]

6. What steps her Department is taking to ensure that the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership increases economic opportunities for businesses and consumers.

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[Nadia Whittome (Nottingham East) (Lab)]

14. What steps her Department has taken to ensure that the free trade agreement with Israel complies with the UK’s obligations in section 5 of United Nations Security Council resolution 2334.

[The Minister for International Trade (Nigel Huddleston)]

The UK’s position on settlements is clear: they are illegal under international law, present an obstacle to peace and threaten the physical viability of a two-state solution, as set out in the UN Security Council resolution 2334 and restated recently by the UNSC presidential statement in February 2023. We repeatedly call on Israel to abide by its obligations under international law and have a regular dialogue with Israel on legal issues relating to the occupation.

[Alan Brown]

The Minister is clearly aware then that resolution 2334 states that countries must

“distinguish, in their relevant dealings, between the territory of the State of Israel and the territories occupied since 1967.”

I welcome his comments confirming that the Government’s belief is that the settlements are illegal under international law. How will the Government ensure that goods and services from these illegal settlements—in effect, stolen land—are excluded from the benefits of a free trade agreement?

[Nigel Huddleston]

Under our existing agreement, Israeli goods from the state of Israel receive tariff preferences under the UK-Israel partnership agreement. Palestinian goods, from the Occupied Palestinian Territories, benefit from trade preferences in the interim UK-Palestinian Authority bilateral agreement. To be clear, only goods originating from the state of Israel are covered by our current FTA, and that will not change in the upgraded FTA.

[Andy McDonald]

Last week, it was reported by The Jerusalem Post that Israel’s National Security Minister Ben-Gvir, who just 15 years ago was convicted of inciting racism and supporting a terrorist organisation, had told settlers in the illegal west bank outpost of Evyatar:

“The Land of Israel must be settled and at the same time as the settlement of the Land a military operation must be launched.”

He then spoke of demolitions and the killing of “thousands” of Palestinians, in order to “fulfil our great mission.” Will the Minister condemn those genocidal remarks about Palestinians, and ensure that any trade deal with Israel explicitly bans UK trade with those illegal settlements and makes binding regulations for companies to uphold human rights standards?

[Nigel Huddleston]

The hon. Gentleman will be aware that the UK is a leading advocate of human rights around the world. We have very frank conversations with our allies and we have frank and honest discussions across Government. In answer to the trade element of his question, as I said previously, only goods originating in the state of Israel are covered by our current FTA, and that will not change under the upgraded FTA.

[Nadia Whittome]

I welcome the Minister’s restatement of Government policy in his previous answer, but if the UK signs a trade deal without a territorial clause defining the border between Israel and Palestine, it will be seen in legal terms as equivalent to letting Israel decide by default to include its settlements in the Occupied Palestinian Territories as part of Israel. Is the Minister aware that that risks a situation where, in effect, the UK recognises illegal settlements in the west bank as part of Israel, which is counter to the Government’s stated policy?

[Nigel Huddleston]

I refer the hon. Lady to the answer I gave a moment ago, but I wish to reiterate that it is long-standing UK foreign policy that Israeli settlements beyond the 1967 boundaries are illegal.

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

8. What recent assessment her Department has made of the potential effect of the UK’s withdrawal from the European single market on business and trade.

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[The Minister for International Trade (Nigel Huddleston)]

The UK is absolutely committed to enhancing trade with Morocco. In 2022 we did about £3.1 billion-worth of bilateral trade—up nearly 50% on 2021—and we are using our association agreement with Morocco to boost that even further. In February I visited Morocco and met my counterpart to discuss how we can maximise trade, including by tackling barriers in priority areas such as education, renewable energy and infrastructure. We are also supporting British businesses to take advantage of the significant opportunities in Morocco, including through £4.5 billion of available finance through the excellent UK Export Finance.

[Mr Speaker]

I call the shadow Secretary of State.

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[Greg Smith (Buckingham) (Con)]

T4.   The Abraham accords have ushered in unparalleled opportunities by lowering trade barriers in the middle east, so how can my hon. Friend maximise the trade potential of the 2030 road map for UK-Israel bilateral relations by engaging with the wider region?

[Nigel Huddleston]

Through our road map, the UK and Israel reaffirmed the historical significance of the Abraham accords—which have the potential to bring about advancements to security, co-existence, peace and prosperity for the region—and our commitment to work together to deepen and expand those developments, building on the progress of the Negev summit in March 2022. Through the Britain-Israeli investment group, we will also combine UK and Israeli expertise to help solve regional technology and sustainability issues right across the world.

[Mr Speaker]

I call the SNP spokesperson.

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[Marion Fellows (Motherwell and Wishaw) (SNP)]

T2. The Fresh Produce Consortium, which represents 70% of the UK’s fresh produce supply chain, recently warned that post-Brexit import charges will hit small and medium-sized enterprises the hardest. Does the Minister accept that the post-Brexit trade deals are driving up already soaring food prices, as well as hitting small food producers at a time when they are facing real difficulties as a result of increased operating costs?

[Nigel Huddleston]

It should be transparently clear that the UK is conducting trade deals that are in the UK’s economic interests. That is the criterion: we would not do them if they were not in the UK’s interests. We are therefore working really hard, with a particular focus on opportunities for SMEs to trade not only with the EU but right around the world, where there are immense opportunities for further trade. We will continue to pursue opportunities in south Asia, Africa and South America—all over the world—where we have not taken full advantage of those opportunities. This will benefit many SMEs, including food and beverage producers, in the long term.

[Richard Graham (Gloucester) (Con)]

Over a third of the value of every Airbus sold in the world comes from the United Kingdom’s aerospace manufacturing—whether it is wings, engines, landing gear or other avionics—but all of the Airbus sales are recorded in international statistics as exports from France because the final take-off is from Toulouse. What can the Department do to try to make sure that the value of these exports, especially to the fast-growing Asia-Pacific region, is recognised as being partly from the UK?

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[Jim Shannon (Strangford) (DUP)]

When it comes to increasing trade with African countries, what steps are being taken to ensure that increased trade is carried out with companies that take human rights seriously and are ethically aware in the treatment of their workers?

[Nigel Huddleston]

We are an advocate around the world for human rights. That is something that the Government take seriously and discuss across Government, including with trading partners with whom, as I said, we can have frank conversations. Through other bodies and institutions, including the work done by the Commonwealth, we continue to have those frank conversations.