Developing Countries Trading Scheme
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
On 19 June 2023 the developing countries trading scheme entered into force. A written ministerial statement announcing the developing countries trading scheme and detailing proposed changes was issued on 6 September 2022 following the launch of the scheme by the former Trade Secretary on 16 August.
The developing countries trading scheme provides generous access to UK markets for 65 developing countries. The scheme is an important component of the Government efforts to maximise the benefits of trade for developing countries. The scheme delivers greater market access by cutting more tariffs, simplifying rules so more goods qualify for duty free tariffs and enabling more countries to have access to more generous tariffs.
Developing countries trading scheme tariff rates offer tariff savings of over £770 million per year, helping to reduce prices and increase choice for UK consumers, particularly for household items such as clothes and food.
The UK’s approach to trade for development as set out in the international development strategy is to combine generous market access with aid for trade and advocacy at the WTO to increase trade with developing countries. By championing free, fair and inclusive trade, the UK maximises the benefits of trade for developing countries whilst building resilient supply chains and markets for the future for the benefit of the UK.
The developing countries trading scheme represents a marked increase in UK market access for developing countries, in particular for 37 least developed countries. When combined with our network of eight economic partnership agreements, the new scheme means that the UK now offers duty free or nearly duty free trade in goods to over 90 developing countries.
In addition to this, the UK has spent over £830 million on aid for trade since 2015, delivering major impact in beneficiary countries by addressing burdensome regulations and delays at customs, increasing the role of women in trade and supporting developing countries to negotiate and implement trade agreements.
Changes to the UK’s trade preferences are possible because as an independent trading nation we can go further and offer developing countries one of the most generous sets of trade preferences in the world, surpassing those of the EU and USA. Since its launch the developing countries trading scheme has received widespread praise in developing countries and at the WTO.
Further information on the developing countries trading scheme can be found here: https://www.gov.uk/government/collections/trading-with-developing-nations. A series of detailed guides has been developed alongside an interactive tool which provides product or country specific information on tariffs and rules of origin. Digital guides make it easier for businesses to understand and use the scheme.
Developing countries trading scheme regulations can be found at these links:
The Trade Preferences Scheme (Developing Countries Trading Scheme) Regulations 2023: http://www.legislation.gov.uk/id/uksi/2023/561
Rules of Origin: The Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023 (legislation.gov.uk)
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Tackling Rogue Builders
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
I congratulate my constituency neighbour, my hon. Friend the Member for Wyre Forest (Mark Garnier), on securing the debate. He is a great champion for his constituents and for many causes that impact right across the country, this being one of them. I am well aware that he has proposed a private Member’s Bill to improve consumer protection from rogue builders. I am also grateful to him for giving other hon. Members the opportunity to discuss this important subject today. I thank the hon. Member for Strangford (Jim Shannon) and my hon. Friends the Members for Clacton (Giles Watling) and for Central Suffolk and North Ipswich (Dr Poulter) for their contributions, because I suspect that every Member has had correspondence and interaction with constituents on this issue. It impacts right across the country.
I assure my hon. Friend the Member for Wyre Forest that the Government are committed to ensuring that there are high standards in the construction industry and that consumers can have confidence that the work they commission will be undertaken competently and will comply with building regulations to ensure safety. We are also committed to ensuring that there are high standards of consumer protection and redress for those who pay for work that falls short of acceptable standards of quality and safety.
The construction industry makes a great contribution to the UK economy. In 2021, it had a turnover of £439 billion, accounting for nearly 9% of the economy, and employed 2.2 million people in about 430,000 firms, with an additional 700,000 self-employed workers. That speaks to some of the challenges that my hon. Friend mentioned in terms of the fragmented nature of the industry. He is also right to point out that the vast majority of those engaged in this sector are hard-working, honourable and decent people, but there are rogues—there is no doubt about it.
The domestic repair, maintenance and improvement sector is a vital part of the industry, employing about 60% of all those who work in it. The small firms and tradespeople who make up this sector deliver essential work to people right across the country. They play an important role now, which will become only more important as we seek to improve the environmental and carbon performance of homes. They are critical to our approach to reducing the 40% of carbon emissions generated by the built environment, and to achieving our net zero targets. However, it is also a part of the industry where genuine concerns about consumer protection exist.
As I have said, while the majority of tradespeople are honest and competent and provide excellent service, there are some incompetent or dishonest firms and individuals who exploit consumers, undertake defective work or overcharge for the services that they deliver. That must be stopped. The Government are committed to working with the industry and local authority trading standards to improve standards of competence and consumer protection, and to take action against rogue builders. While we are not convinced that the introduction of a licensing scheme in such a large and varied sector would be practical or cost-effective, I hope that I will be able to reassure my hon. Friend and other hon. Members that the Government take the issue of consumer protection from rogue builders seriously, and that we are taking meaningful action.
The Government have taken action to strengthen consumer rights. The Consumer Rights Act 2015 sets out the standards that consumers can expect when a trader supplies goods and services, including building work, and remedies if those rights are breached. Under the Act, traders are required to carry out a service with reasonable care and skill, and, where the timeframe is not specified in the contract, within a reasonable timeframe. Where a trader fails to meet the standards required by the CRA for the supply of a service, or if the service does not conform to the contract, there is likely to be breach of contract and the consumer is entitled to ask for a repeat performance of the service or for a price reduction. If a trader and a consumer cannot agree to a remedy, the consumer can pursue a claim against the trader in the courts. The small claims procedure provides the means to pursue a claim for up to £10,000, at a modest cost and without the need for a solicitor. Consumers have up to six years to bring a claim against a trader for breach of contract.
The Government have also signalled their intention to go further in order to protect consumers with provisions in the Digital Markets, Competition and Consumers Bill, which will give enforcement bodies the power to levy tougher fines. However, we know that many individuals and businesses are reluctant to have recourse to the courts to resolve a dispute, with the costs and time that that entails.
Dr Poulter
My hon. Friend will be aware that the cost of even relatively modest building works is likely to exceed £10,000, but that is the small claims court limit, so that form of redress is not open to many of the victims of rogue builders.
Nigel Huddleston
Yes, we are aware of the challenges with the small claims court. Of course, many building works go above £10,000. The Ministry of Justice is also looking at other forms of redress and procedures, and I understand that those are live considerations within Government. I am happy to forward my hon. Friend’s comments to the relevant Ministers, but we do understand the challenges with the small claims court. It works in many circumstances but it is not right for everybody.
We know that consumers would prefer swift, cost-effective and less time-consuming measures to settle their differences with business. That is why, following the recommendations of the independent “Each Home Counts” review in 2016, the Government have worked with the industry to establish the TrustMark scheme. This created the first Government-endorsed quality scheme for homeowners across a range of trades and types of work. TrustMark provides consumers with a single brand to identify schemes run within the industry that require participating firms and tradespeople to demonstrate competence, and which provide for consumer redress.
We are also working with the industry to ensure that high standards of consumer protection are embedded in relation to domestic households.
Mark Garnier
The TrustMark scheme is great and is a very good start, but it is not compulsory, which means that a lot of consumers do not necessarily know about it. If they do not know about it, they do not know whether they should be asking for it in the first place. The key point is that we can run on TrustMark, but if that becomes the standard it needs to be made compulsory.
Nigel Huddleston
I completely understand the arguments that my hon. Friend makes. He is right: it is not compulsory, but it is an important signal, and a good signal to the industry. It is Government-endorsed, which is also important. We certainly encourage people, when they are seeking such works, to look for that TrustMark, because it is an important indicator.
In this area, and on all the things that my hon. Friend has raised today, the important principle is getting the right balance, as he acknowledged in his speech. That means not overburdening industry and small traders, most of whom operate very effectively and professionally, but we have to make sure that we have systems and processes in place so that when things go wrong, there is appropriate redress.
My hon. Friend mentioned that the temptation, certainly for most of us, is not to overburden businesses with regulation. There will always be an ongoing debate. I appreciate that he has had consistent engagement with the Department and multiple Ministers and that he has brought many other representations from industry to the attention of the Department. We appreciate that, because these are live debates.
Giles Watling
I am very grateful to the Minister for giving way. Is it not the case that historically we have relied on the cry of caveat emptor so much that we have not regulated, but that the time has come to regulate now?
Nigel Huddleston
I am sure the appropriate Minister has heard my hon. Friend’s appeals, and I promise to pass on those comments. The key thing is to get the right balance. If things work, we have got the balance right, but if they do not work properly, we need to reassess the balance. I assure him that on an ongoing basis, officials and Ministers pay close attention to what is going on in the sector. Many of the things that my hon. Friend and colleagues have appealed for today have been asked for by many people, but there is also some quite strong opposition, for good reason, so it is a matter of balance.
I will bring my comments to a close shortly, Sir Mark. On decarbonisation, the Government are working with the industry to ensure that high standards of consumer protection are embedded in our domestic household decarbonisation retrofit programmes. Government-funded schemes require installers to hold appropriate certifications. The Government are also seeking to increase the number of qualified and competent tradespeople and to ensure that they have the skills to deliver the quality of work required. We have already provided nearly £7 million to fund 8,000 training opportunities for the energy efficiency and low-carbon heating supply chains. We are considering options to work with the industry to support further training in key skills shortage areas and new routes of entry to increase capacity. My Department is also working closely with the Department for Levelling Up, Housing and Communities to strengthen the consumer protections available through competent person schemes.
In conclusion, I would like to thank my neighbour, my hon. Friend the Member for Wyre Forest, for securing a debate on this important issue. I hope that I have been able to reassure hon. Members that the Government are not only committed to, but taking action to ensure that high standards of consumer protection exist and to tackle the problem of rogue builders and tradespeople.
Question put and agreed to.
Trade Negotiations with Israel, Mexico and Switzerland
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
The Department for Business and Trade has made progress on three key trade negotiations in the month of May. This statement provides Parliament with an update on the UK’s trade negotiations with Israel, Mexico, and Switzerland. The Government will continue to keep Parliament updated as these negotiations progress.
UK-Israel trade negotiations
The second round of United Kingdom-Israel free trade agreement negotiations commenced on 9 May, concluding on 17 May. This round of negotiations was hosted by the UK and conducted in a hybrid manner; a group of Israeli officials travelled to London for in-person discussions, with further officials attending virtually.
Prior to the round, the Secretary of State visited Israel to meet her counterpart, Minister Nir Barkat, to discuss the negotiations and the wider UK-Israel trade and business relationship.
During this round policy officials held text-based discussions, having exchanged draft chapter texts in advance of the round. Technical discussions were held across 30 policy areas and 60 sessions in London. Negotiations covered the breadth of the upgraded agreement.
The ongoing negotiations for a new modern free trade agreement putting services and innovation at its heart will upgrade our trade relationship, worth £7.2 billion in the four quarters to the end of 2022, supporting new opportunities for our businesses.
UK-Mexico trade negotiations
The third round of United Kingdom-Mexico free trade agreement negotiations commenced on 15 May, concluding on 19 May. This round of negotiations took place in Mexico City in a hybrid format, with a UK delegation of officials travelling for in-person discussions.
Officials held discussions across 66 sessions with 39 being held in person in Mexico City. A key objective for the round, at this relatively early stage, was to develop a more in-depth understanding of Mexico’s trade policy positions and priorities and use the opportunity to move our positions closer together through detailed discussions on treaty text.
These negotiations continue to reflect our shared ambition to secure a comprehensive and updated deal and to strengthen our existing trading relationship, worth over £4.8 billion in the four quarters to the end of 2022. Both countries agree that this is an opportunity to complement and add value to the UK’s accession to the comprehensive and progressive agreement for transpacific partnership (CPTPP).
UK-Switzerland trade negotiations
The first round of UK-Switzerland free trade agreement negotiations commenced on 22 May, concluding 2 June. This round of negotiations was hosted by the UK and took place in a hybrid manner; a group of Swiss officials travelled to London for in-person discussions, with some additional officials attending virtually.
Prior to the round the Secretary of State visited Switzerland to formally launch negotiations with her counterpart, Federal Councillor Guy Parmelin, where they discussed the significant opportunities an enhanced trade deal presented for both the UK and Switzerland.
During the round, officials held discussions across 30 policy areas and 53 sessions both in person in London and virtually. Chapter negotiators focused their discussions on establishing a more detailed understanding of the outcomes the UK and Switzerland are seeking and began to share early text proposals to work from.
These negotiations demonstrate our shared ambitions to upgrade and future-proof our current trade agreement to reflect the focus of both of our economies by delivering modern provisions for services, which represent over 70% of GDP for both our economies, while also identifying opportunities to further remove tariff barriers and create commercially meaningful opportunities.
Summary
The Government remain clear that any deal we sign, including with Israel, Switzerland and Mexico, will be in the best interests of the British people and the United Kingdom economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the NHS, and the services it provides is not on the table.
His Majesty’s Government will continue to work closely with Israel, Mexico, and Switzerland to ensure negotiations proceed at pace and takes place on terms that are right for the UK.
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UK-Maldives Free Trade Agreement
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
Today the Department for Business and Trade has announced the launch of a public call for input into a prospective free trade agreement with the Government of Republic of Maldives (Maldives). The call for input can be accessed via the following link: https://www.gov.uk/government/consultations/trade-with-maldives-call-for-input.
Maldives is one of the only remaining Commonwealth countries without preferential access to UK markets or with which the UK is not already pursuing a free trade agreement (FTA). The UK is therefore looking to negotiate a bespoke, goods-only trade deal with Maldives that seeks to build on the existing goods trade between the countries. The UK Government are clear that any deal that we sign will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest.
The call for input will run for eight weeks and invite businesses, public sector bodies, individuals, and other interested stakeholders to set out their priorities for a closer trading relationship with Maldives.
The information that the Government receive through this exercise will be beneficial in shaping our approach to negotiations and our priorities and objectives, ensuring that our final approach is informed by stakeholder needs.
Next Steps
The UK and Maldivian Governments share a desire to develop closer ties. Prior to launching official talks with Maldives, the UK Government will publish their approach to negotiations; this will include a response to the call for input and our strategic objectives. We will continue to keep Parliament, the devolved Administrations, UK citizens and businesses updated, as we make progress.
[HCWS832]
Entry into Force of UK-Australia and UK-New Zealand Free Trade Agreements
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
I am pleased to report to the House that on 30 May 2023 the Government, alongside the Governments of Australia and New Zealand, ratified the UK-Australia and UK-New Zealand free trade agreements and they entered into force on 31 May.
Businesses in the United Kingdom, Australia and New Zealand are now able to access the benefits of the agreements. Our ongoing priority is to ensure businesses of all sizes across the United Kingdom feel confident in using the agreements. Guidance can be found on www.gov.uk.
The agreements remove tariffs on 100% of UK goods exports, slash red tape, guarantee access for UK services and digital trade and will make it easier for UK professionals to live and work in Australia and New Zealand. They are uncompromising in their maintenance of the UK’s high environmental, animal welfare and food safety standards.
There are robust protections for British farmers in both deals, including staging tariff liberalisation for sensitive goods over time. Protecting the NHS is also a fundamental principle of our trade policy, and these deals deliver on the Government’s commitment to that principle. The NHS, the price it pays for medicines, and its services have remained off the table throughout negotiations.
These agreements are the first the UK has negotiated “from scratch” since EU exit and demonstrate what the UK can do as an independent trading nation. Alongside the conclusion of negotiations to accede to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP), these agreements are part of our tilt towards the growing Indo-Pacific region.
I would once again like to thank the House for its support and engagement in the ratification of these free trade agreements.
[HCWS815]
Trade Measures to Support the Moldovan Economy
Nigel Huddleston Excerpts(1 year, 6 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
The Republic of Moldova has been heavily impacted by the crisis unleashed by Russia’s illegal invasion of Ukraine. The UK stands resolutely with Moldova and its people as they pursue their own democratic choices and offer courageous support to their neighbours in Ukraine, in the face of Russian aggression.
The UK continues to do all that it can to support our friends and allies at this time. With this in mind, and in response to a request from Moldova, the Government have come to an agreement in principle with the Government of Moldova that the UK will liberalise all remaining tariffs on imports from Moldova under the UK-Moldova strategic partnership, trade and co-operation agreement.
The liberalisation package we are delivering will assist the Republic of Moldova during this crisis and provide opportunities to export greater volumes of goods to the UK. The UK Government offered this policy on a non-reciprocal basis as part of the UK’s commitment to its economic stability, with no expectation or ask of the Moldova Government in return. The liberalisation of all tariffs for imports from Moldova will be applied to the whole of the United Kingdom and the Crown dependencies.
Key details include:
Liberalising all tariffs under the free trade agreement on goods originating from Moldova. This will see tariff rate quotas on tomatoes, garlic, grapes, apples, plums, grape juice and cherries removed.
Putting in place a temporary safeguard measure to protect domestic industry in the event a surge of Moldovan imports cause serious injury or threat thereof, and will continue to protect domestic consumers by retaining all existing sanitary and phytosanitary checks and standards, mitigating any potential food safety risks.
These changes will be for an initial period of 12 months and will be kept under review.
The Government will shortly lay a statutory instrument to amend our domestic legislation accordingly.
As the Government have made clear on many occasions, the United Kingdom will continue to support the region for as long as required following Putin’s unprovoked invasion of Ukraine and ensure the security and prosperity of those countries impacted.
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Oral Answers to Questions
Nigel Huddleston Excerpts(1 year, 7 months ago)
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Tim Loughton (East Worthing and Shoreham) (Con)
The Minister of State, Department for Business and Trade (Nigel Huddleston)
Our bilateral trade with China was worth £111 billion last year. The Department provides expert guidance to help UK companies succeed in China, ranging from specialised support through the export support service to practical assistance from our extensive overseas network. We will continue to support engagement, while ensuring our national security and values are protected.
Tim Loughton
This House has voted to recognise the genocide by China. This House has passed legislation to limit companies doing business in Xinjiang and to restrict Chinese companies getting involved in sensitive UK infrastructure projects, including Hikvision, which has over a million security cameras in this country and just reported an increase in sales in this country of more 50%. What message does it send when a UK trade Minister, from the Minister’s team, goes to Beijing, feting Chinese Ministers for Chinese investment in the UK, as if the golden age of UK-China relations was still a thing?
Nigel Huddleston
My hon. Friend raises many important points, but the key thing is that the relationship with China has been laid out recently in the integrated review, the integrated review refresh and in the Foreign Secretary’s speech, and we have made it very clear that we need to balance our trading interests with our national security interests, for the very reasons that my hon. Friend outlines.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
What are the Government doing to ensure that the genomics data of British businesses held by British genomics companies that then trade or do deals with Chinese companies, such as BGI Genomics, is protected? Is it not somewhat naive, given the terms of the national security law, to think that GDPR alone is sufficient protection?
Nigel Huddleston
Through a variety of mechanisms and across multiple Departments, the Government give advice to companies investing overseas. In terms of dynamics the other way around, the Investment Security Unit carefully analyses investment in the UK, particularly relating to acquisitions in 17 sensitive areas. We are very careful at analysing and we will continue to keep a close eye on those two-way relationships.
Dave Doogan (Angus) (SNP)
Patricia Gibson (North Ayrshire and Arran) (SNP)
The Minister of State, Department for Business and Trade (Nigel Huddleston)
Our free trade programme helps to remove market access barriers for importers and exporters, making the UK more competitive and contributing to a greater choice of goods. The UK’s trade policy works to increase access to good-quality, good-value food from around the world, while the liberalisation of tariffs can help to lower food prices.
Tommy Sheppard
UK food price inflation is already significantly higher than that in France, Germany and Italy. This week William Bain, the head of trade at the British Chambers of Commerce, said there was a strong prospect that new Brexit regulations coming into force later this year would drive prices even higher. Is it not time that this Government apologised for their ideological obsession with Brexit, which is forcing ordinary-working class families into poverty?
Nigel Huddleston
The hon. Gentleman is being somewhat selective. The figures from the Office for National Statistics showed that food price inflation in the UK was 19.2%—and the EU average is 19.2%. As for apologising, I will not apologise for the fact that when we left the EU, we got rid of hundreds of useless tariffs that were doing nothing other than pushing up prices for British consumers. We liberalised tariffs on environmental goods, and we liberalised tariffs on goods that we generally do not produce in the UK, thus massively reducing the total number of tariffs faced by British consumers. That is a good thing, throughout the UK.
Patricia Gibson
Recent figures from the Trussell Trust show that food bank use across the UK by people in need of a three-day emergency food supply soared to a record 3 million in 2022-23. Does the Minister accept that food bank use, which has more than doubled in a decade, has a direct correlation with the disastrous Brexit —according to the London School of Economics—causing food prices to soar, and does he agree that more must be done to tackle a disgraceful situation in which too many of my constituents struggle to put food on the table?
Nigel Huddleston
All of us, on both sides of the House, are concerned about the struggles faced by our constituents, which is precisely why the Government have supported families through the challenges of the cost of living to the tune of £94 billion—£3,300 per household. As for the specific connection with trade, I refer the hon. Lady to the answer that I gave a moment ago: since we left the European Union, 47% of tariff lines in our tariff schedule have fallen to zero. The figure is 27% in the EU. British consumers are better off because of our tariff policy.
Richard Thomson (Gordon) (SNP)
If we take the Minister at his word that tariffs are coming down, that does not seem to be making much difference to the prices that people are paying at the supermarkets. Governments across Europe are taking action to tackle soaring food prices caused by what is termed greedflation. For example, in Ireland, supermarkets have been given a six-week ultimatum to bring down food prices; in France, the Government have agreed with retailers to keep the price of essential foodstuffs to the bare minimum; and Italy has set up a commission to monitor unusual movements in prices. Do Ministers accept that action to protect consumers from corporate greed is necessary and urgent?
Nigel Huddleston
As I said in answer to a previous question, food inflation is very similar in the UK and Europe, because we are all facing very similar challenges, including, of course, inflation through energy prices. That is precisely why we provided support to consumers to the tune of about half their energy costs this winter. Of course, we also provided support to businesses, which otherwise would have passed on higher costs to consumers; about a third of business energy prices have been covered by Government support. We are doing a lot, and the Prime Minister highlighted the challenges with a summit on food this very week.
Richard Thomson
I accept that we might be facing similar problems to mainland Europe, but we are certainly not getting the same degree of action from the Government to tackle prices in supermarkets. Does the Minister accept that by voting against my party’s motion on Tuesday calling on them to put pressure on supermarkets to pass on falling food prices to consumers, the UK Government sent an extremely clear signal to families in Scotland that they are not on their side?
Nigel Huddleston
Again, I and my colleagues continually engage with industry about how it can help support consumers, because both the Government and businesses have a responsibility to help consumers in these challenging times. That is precisely why we had the summit this week, which I am sure the hon. Member is well aware of.
Wera Hobhouse (Bath) (LD)
The Minister of State, Department for Business and Trade (Nigel Huddleston)
We are committed to upholding the UK’s high environmental standards in our trade deals. In our Australia and New Zealand trade deals, for example, we included commitments to preserve our right to regulate, protect the environment, and affirm international environment and climate commitments. We work across Government on environmental matters and utilise international fora to promote our environmental aims.
Wera Hobhouse
Trade deals can protect or destroy our natural environment. What the Minister has just said seems to contradict this, but our assessment is that the Government consistently fail to guarantee existing environmental standards in trade deals. For example, they have removed European palm oil tariffs to join the comprehensive and progressive agreement for trans-Pacific partnership. The Royal Society for the Protection of Birds said that that could devastate forests, destroy orangutan habitats and fuel climate change. Can he explain why the Government are happy to ignore the environment, and will the Government establish core environmental standards for any new trade deals?
Nigel Huddleston
I am disappointed to hear that from the hon. Lady, because we generally agree on a lot of things. We have no intention of weakening environmental standards through trade agreements; in fact, they are often an opportunity to enhance standards through co-operation. CPTPP prohibits parties from waiving, derogating from or failing to enforce environmental laws in order to encourage trade or investment. I am afraid the reality is the exact opposite of what she says.
Richard Graham (Gloucester) (Con)
One opportunity from our joining the trans-Pacific partnership is that it gives the UK a say in different chapters of the partnership, including that on the environment, and the ability to work with Malaysia to ensure the sustainability of its palm oil exports, in exactly the same way that we helped Indonesia shape its regulations and processes for exporting timber. Does the Minister agree that the key to all this is engagement? In that context, does he share my strong enthusiasm for a separate free trade agreement with Indonesia, so that we can work together for the huge benefit of both countries?
Nigel Huddleston
I thank my hon. Friend for the amount of work that he does as a trade envoy. We both met our Indonesian friends this week, and the Minister of State, Department for Business and Trade, my hon. Friend the Member for Wealden (Ms Ghani) will be visiting Indonesia shortly, so we are certainly building those relationships. We are always keen to look at future opportunities for trade agreements and, outside trade agreements, at enhancing the relationship through a variety of fora, for the very reasons that my hon. Friend the Member for Gloucester (Richard Graham) explains. We look forward to continued engagement with Indonesia.
Rachael Maskell (York Central) (Lab/Co-op)
Eddie Hughes (Walsall North) (Con)
Some 70% of our economy is services, so what is the Department doing to reduce barriers in that area and supercharge our global trade in services?
The Minister of State, Department for Business and Trade (Nigel Huddleston)
My hon. Friend raises an important point: more than 70% of our economy is services. Therefore, it is absolutely right that the Department for Business and Trade has a laser focus on services as well as goods, particularly in relation to international deals. Historically, some of those trade agreements have not covered services particularly well. The Secretary of State mentioned the Swiss agreement, which was silent on services. So my hon. Friend is absolutely right about this, and we have a hitlist of barriers we are working on. They relate to both goods and services, which are hugely important right across the country, including in his constituency.
Jessica Morden (Newport East) (Lab)
May I draw the Minister’s attention to a Which? investigation into the lack of consistency in unit pricing by supermarkets? That makes it difficult for consumers to work out the real price of goods and, crucially, to choose between them. The Competition and Markets Authority is looking at this issue, but will the Government talk to the supermarkets too?
UK-Australia and UK-New Zealand Free Trade Agreements
Nigel Huddleston Excerpts(1 year, 7 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
I am pleased to report to the House that the Government expect the UK-Australia and UK-New Zealand free trade agreements to enter into force on 31 May 2023. This was agreed by the Prime Minister, with the Prime Minister of Australia Anthony Albanese and the Prime Minister of New Zealand Chris Hipkins during their respective visits to the United Kingdom.
Our groundbreaking deals are tailored to the UK’s strengths. They can grow the UK economy, benefiting all parts of the United Kingdom. From the date of entry into force, business will be able to access the benefits of the deals, with guidance available on gov.uk.
The agreements remove tariffs on 100% of UK goods exports, slash red tape, guarantee access for UK services and digital trade and will make it easier for UK professionals to live and work in Australia and New Zealand. They are uncompromising in their maintenance of the UK’s high environmental, animal welfare and food safety standards.
There are robust protections for British farmers in both deals, including staging tariff liberalisation for sensitive goods over time. Protecting the NHS is also a fundamental principle of our trade policy, and these deals deliver on the Government’s commitment to that principle. The NHS, the price it pays for medicines, and its services have remained off the table throughout negotiations.
With our strong commitment to a free and open Indo-Pacific region, also demonstrated through our conclusion of negotiations to accede to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP), these deals are instrumental in focusing our efforts and putting our engagement on a long term, strategic footing. They represent a deepening of our relationship with close allies, who share our beliefs in fairness, free enterprise, high standards and the rule of law.
The final statutory instruments to implement the agreements have now been laid.
I would like to thank the House for its support and engagement in the ratification of these free trade agreements.
[HCWS762]
Oral Answers to Questions
Nigel Huddleston Excerpts(1 year, 8 months ago)
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Ms Anum Qaisar (Airdrie and Shotts) (SNP)
The Minister of State, Department for Business and Trade (Nigel Huddleston)
The 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.
Ms Qaisar
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?
Nigel Huddleston
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.
Bob Seely (Isle of Wight) (Con)
Bob Blackman (Harrow East) (Con)
The Minister of State, Department for Business and Trade (Nigel Huddleston)
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.
Chris Stephens (Glasgow South West) (SNP)
Scott Benton (Blackpool South) (Con)
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.
Nigel Huddleston
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.
Kim Johnson (Liverpool, Riverside) (Lab)
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?
Nigel Huddleston
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.
Alan Brown (Kilmarnock and Loudoun) (SNP)
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?
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
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?
Nigel Huddleston
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.
UK-Gulf Co-operation Council Free Trade Agreement
Nigel Huddleston Excerpts(1 year, 9 months ago)
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The Minister of State, Department for Business and Trade (Nigel Huddleston)
The third round of negotiations for a free trade agreement (FTA) between the UK and the Gulf Co-operation Council (GCC) took place between 12 and 16 March.
The round was hosted by GCC in Riyadh and held in a hybrid fashion. A number of UK negotiators from across the Government travelled to Riyadh for in-person discussions and others attended virtually.
Draft treaty text was advanced across the majority of chapters. Technical discussions were held across 13 policy areas over 30 sessions. Good progress was made and both sides remain committed to securing an ambitious, comprehensive and modern agreement fit for the 21st century.
An FTA will be a substantial economic opportunity and a significant moment in the UK-GCC relationship. Government analysis shows that, in the long run, a deal with the GCC is expected to increase trade by at least 16%, add at least £1.6 billion a year to the UK economy and contribute an additional £600 million or more to UK.
The fourth round of negotiations is expected to be hosted by the UK later this year.
His Majesty’s Government remain clear that any deal we sign will be in the best interests of the British people and the United Kingdom economy. We will not compromise on our high environmental, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the national health service and the services it provides are not on the table.
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