Oral Answers to Questions Debate
Full Debate: Read Full DebateNigel Huddleston
Main Page: Nigel Huddleston (Conservative - Droitwich and Evesham)Department Debates - View all Nigel Huddleston's debates with the Department for Business and Trade
(1 year, 5 months ago)
Commons ChamberThe UK has a clear position on Israeli settlements in the Occupied Palestinian Territories: they are illegal under international law and constitute an obstacle to peace and the two-state solution. As set out in Foreign, Commonwealth and Development Office guidance on overseas business risk, there are clear risks to UK businesses related to economic and financial activities in the settlements and we do not encourage or offer support to such activity.
Ramadan Mubarak to everyone celebrating.
In January, the Foreign Secretary told the House that the UK Government’s position on the illegality of Israeli settlements remains unchanged. If that is the case, will the UK Government finally suspend trade in goods and services between the UK and companies operating in illegal Israeli settlements? Do the Government understand that if not, the UK is essentially legitimising outposts that clearly violate international law?
The UK’s long-established position on the settlements is clear, as I outlined. The UK does not recognise the Occupied Palestinian Territories as part of Israel, including the illegal settlements. For example, goods originating from illegal Israeli settlements in the west bank, including East Jerusalem, are not entitled to tariff or trade preferences under either the agreement that the UK has with Israel or the agreement between the UK and the Palestinian authorities. I think it is important for the House to recognise that, of course, we also have an agreement with the Palestinian authorities.
The Secretary of State has been very clear: it is about the deal, not the date. We will not tie our hands by setting an arbitrary deadline. I am pleased to confirm, however, that round eight of the discussions is currently under way. Both nations have committed to and are working together for a mutually ambitious deal. We are working through substantive issues such as goods, market access, services and investment. I appreciate my hon. Friend’s continuing commitment. It is vital to expand on the deal with India, with £35 billion in bilateral trade sustaining half a million jobs in the two countries.
What discussions have the Government had to secure further memorandums of understanding with individual US states? When visiting Nebraska last year, I spoke to the Governor of that state. There is huge enthusiasm, especially among Republican-led states, to strike further deals, so it would be brilliant if we could get some of them over the line.
I thank my hon. Friend, because while the US may not be interested in a free trade deal at the moment, we are working with individual states to develop memorandums of understanding. We have already concluded them with Indiana, North Carolina and South Carolina, and are in discussions with California, Texas, Utah and Oklahoma. We are open to further discussions, because there is huge opportunity of mutual interest.
Can the Minister explain how the UK can maintain a close and historic friendship with Israel during the current difficulties? Can he let us know what the Prime Minister will do, when he meets the Israeli Prime Minister this weekend, to challenge the sale of goods produced in illegal settlements in the Occupied Palestinian Territories?
I refer the hon. Lady to my answer earlier on part of that question. With our friends and allies, including who we trade with, we raise issues and concerns of interest to our constituents and to the British Government on an ongoing basis, not just in trade and business discussions but through other channels and Government Departments. We are happy to have robust conversations with our friends.
Unlike other alcohol producers, the Scotch Whisky Association and industry are having to put up with a 10% increase in duty, making the cost of whisky 75% tax. Spirits are effectively excluded from the draught support scheme, and distilleries cannot access the energy-intensive industries support that other alcohol producers can. When will we get a level playing field for the Scottish whisky industry?
Further to the negotiations for a free trade agreement with India, can the Minister perhaps update the House on the impact of the closure of the internet in the state of Punjab over the last week, and the reduction in freedom of expression for the majority of the Sikh population of that state?
As I mentioned in answer to a previous question, when it comes to other issues, including human rights and freedom of the press, these are conversations we also have with our friends and colleagues around the world. We cannot deal with all these issues with free trade agreements.