Oral Answers to Questions

Penny Mordaunt Excerpts

Thursday 21st October 2021 Commons Chamber

[The Minister for Trade Policy (Penny Mordaunt)]

We now have trade deals with 68 countries around the world, plus the EU, covering trade worth £744 billion last year.

[Alexander Stafford]

Does my right hon. Friend agree that the trade deals we have secured, especially those with Commonwealth partners—such as the excellent deals with Australia and, more recently, New Zealand—are a shining example of global Britain in action, and that they are opening up fantastic opportunities for British businesses and consumers, be they in Rother Valley or across our great country?

[Penny Mordaunt]

Global Britain means using our expertise, resources, talents and values as a force for good in the world, and furthering not just our interests, but the interests of the whole of humanity. My hon. Friend’s part of the world is helping us to do that; last year, Yorkshire and the Humber exported more than £240 million-worth of goods to Australia alone. I want those businesses in his constituency to benefit from the removal of tariffs.

[Mark Pawsey]

I very much welcome the trade deals that the Government have secured, particularly the most recent one with New Zealand, but trade deals are a first step and it is now for British businesses to take advantage of them. Does the Minister agree that the role of skilled, professional salespeople with business-to-business selling skills will be critical to ensuring that we get the projected value from these deals, and that we need to give those people every support?

[Penny Mordaunt]

My hon. Friend is right, and he is doing his damnedest to make sure that Rugby is at the front of the queue in that respect. To support his businesses, we are delivering an export promotion campaign that positions exporting as a route to growth, prosperity and job creation. The campaign will encourage businesses to seize the opportunities from trade deals, while directing them to our new export support services.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I also welcome the Minister for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), to her new role.

I have already mentioned the forecast that the deal with New Zealand will cost jobs in our farming communities. Has the Minister had a chance to read that? I also want to ask her about exports and growth. Is it correct, as her Department says on page 54 of the document, that under the terms of the deal New Zealand’s exports to the UK will increase by five times as much as UK exports to New Zealand, and that, as it says on page 58, New Zealand’s GDP will grow by half a billion pounds while the UK’s GDP will not increase by a single penny? Will the Minister tell us whether those figures are right?

[Penny Mordaunt]

Missing from the right hon. Lady’s question was any timeframe. The Opposition need to appreciate that we are building and increasing these markets. Over time, the numbers will go up, because we have given our businesses and farmers the opportunity to do that, and because we have faith in those businesses and farmers to seize those opportunities that we give them. I hope that the right hon. Lady and her Opposition colleagues will be cheerleaders in that respect.

[Emily Thornberry]

I am just reading the figures from the Minister’s Department and there is a real problem: this is now the third Asia-Pacific agreement in a row—Japan, Australia and now New Zealand—where more than 80% of the growth in trade projected by her own Department has gone to exporters in those other countries and less than 20% has gone to exporters in the UK. The Government say that they are tilting to Asia. I have to say, I think that Asia is taking us to the cleaners. While the Minister is still relatively new, will she sit down with her new boss and tell the Department that enough is enough—that we need trade deals that deliver for Britain, and we need jobs, exports and growth?

[Penny Mordaunt]

Nine trillion pounds—that is what these deals, and ultimately the comprehensive and progressive agreement for trans-Pacific partnership, will mean to this country. Yes, we have three deals, and we are going to get more. That is what we want to do. We are going to grow these markets. That is the whole point of our leaving the EU and formulating this plan for global Britain. These deals will increase growth and prosperity in this country, which will fund everything that matters to all Members of this House.

[Gareth Davies (Grantham and Stamford) (Con)]

5. What steps her Department has taken to increase the export of British financial services.

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[Alex Cunningham (Stockton North) (Lab)]

7. What recent assessment she has made of trends in the level of UK trade with the EU.

[The Minister for Trade Policy (Penny Mordaunt)]

Covid has had a huge negative impact on global supply chains and trade in both goods and services.

[Alex Cunningham]

It is interesting that Ministers are talking about growing trade when it is actually going in the other direction. Trade with Germany is worth eight times our trade with Australia, so we must all be concerned to hear that UK exports to Germany are down by 11% so far this year. We have also fallen outside Germany’s top 10 trading partners for the first time in 71 years. The Minister must share these concerns, so what is she going to do about it?

[Penny Mordaunt]

UK trade in goods with the EU has been steadily increasing this year and is now above average levels for 2020, and exports are increasing faster than imports. However, we recognise that there are difficulties, which is why, as my right hon. Friend the Secretary of State said, we have stood up the export support service, which launched on 1 October. That is primarily focused on trade with the EU, but will, over time, be expanded to rest of world. There will be a briefing for all parliamentary staff on the export support service, and I can tell the hon. Gentleman from my own constituents’ experience that it is already making a difference.

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

Last month, the previous Secretary of State said that it had been a mistake to focus

“too much on trade with the EU despite the richest opportunities being in the Asia-Pacific.”

Are the Government now making the reverse mistake by focusing too much on small gains in Asia despite the far bigger losses we are facing in Europe?

[Penny Mordaunt]

The issue is that as part of the EU we had to focus on trade with the EU and we were hampered in setting our own agreements and policies with the rest of the world. Now we can trade with the rest of the world as well as the EU. We have had difficulties with covid and with all sorts of things that global trade has had to cope with, but we will recover, as will the rest of the world. When the numbers start going the right way, as they already are, and exceed previous years, I hope that Opposition Members will start to talk this country up rather than down.

[Jacob Young (Redcar) (Con)]

It is fantastic that the UK has already agreed trade deals with almost 70 countries, plus the EU, that accounted for £744 billion-worth of UK bilateral trade in 2020. Does my right hon. Friend agree that this is firm evidence of our striking out into the world and seizing the new opportunities that we now have ahead of us outside of the EU that will benefit Teesside businesses in the long run?

[Penny Mordaunt]

I thank my hon. Friend for all the work he is doing to ensure that businesses can capitalise on these new opportunities. We need to give them the tools to do the job and help them to break into new markets, but the opportunities are immense, and I thank all colleagues who are helping us to achieve those ambitions and supporting businesses, particularly small businesses, in their constituencies.

[Stephen Morgan (Portsmouth South) (Lab)]

8. What recent discussions she has had with UK trade partners on inserting clauses on environmental standards into future trade deals.

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[Chris Elmore (Ogmore) (Lab)]

T3. I welcome the Secretary of State to her place and the two new Ministers to the team. I welcome the Prime Minister’s commitment yesterday to bringing forward the long-overdue online harms Bill. The Secretary of State will know that I have spent many years campaigning on that Bill and trying to ensure that it is brought forward in better time. I know that Ministers will agree that there can be no loopholes in our trade agreements when it comes to the liability of online service providers. Have Ministers commissioned legal advice on the compatibility of the draft online safety legislation with chapter 14 of the provisions of the trans-Pacific partnership in relation to electronic commerce? We really cannot allow platforms to get away from culpability for not tackling the abuses that everyone receives through their platforms.

[The Minister for Trade Policy (Penny Mordaunt)]

I thank the hon. Gentleman for the work that he has done in this area. Clearly, in addition to being compatible with UK law, we have an ambition that the UK will be the safest place in the world to do business. In addition to the legal advice that we commission, we are consulting widely with stakeholders in this sector and in other sectors that are emerging markets. We want to ensure that we are able to expand digital services but also to support the values that need to underpin that sector if it is going to thrive and be successful.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

T5. One of the UK’s greatest exports is Stoke-on-Trent’s world-leading ceramics, which I am sure my right hon. Friend the Secretary of State has heard much about from her newly appointed Parliamentary Private Secretary, my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton). Ceramics manufacturers in Stoke-on-Trent North, Kidsgrove and Talke are delighted that our new free trade agreement with Australia will bring opportunities to export more of our outstanding products. Does my right hon. Friend agree that that is a fantastic boost for this iconic British industry and the world capital of ceramics, Stoke-on-Trent?

[Penny Mordaunt]

I thank my hon. Friend for being such a champion for his constituency and for this sector in particular. He is right that these deals will make it less costly and much easier to sell those iconic products. I know that he will be encouraging pottery firms in his constituency to ship to Australia and New Zealand, benefiting from the removal of the 5% tariff.

[Rachel Hopkins (Luton South) (Lab)]

T4.   During recess, I visited a constituent on his farm. We discussed how farmers want a level playing field when it comes to trade, and their concerns about the Government’s trade agreements undercutting UK food standards. Will the proposed deal with Australia reduce tariffs on meat produced using growth-promoting antibiotics, which UK farmers are banned from using? If so, how is it consistent with the repeated promises made to our farmers that they would not be undermined by food produced to lower standards than they are required to meet?

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[Royston Smith (Southampton, Itchen) (Con)]

T6. The port of Southampton is one of the busiest container ports in the UK. Between 80% and 90% of containers arriving at the port are from the far east. Now that we are free to negotiate and sign our own trade deals, will my right hon. Friend update the House on what progress she has made on securing deals with countries in the far east and how that will help to ensure that the port of Southampton thrives into the future?

[Penny Mordaunt]

The agreement in principle that we have just secured with New Zealand, in addition to being good in itself, helps pave the way towards the comprehensive and progressive agreement for trans-Pacific partnership, which will be hugely beneficial to my hon. Friend’s constituency. I thank him for the work that he has been doing in championing the Solent freeport, which will benefit Southampton but also another port just slightly further along the coast in which I have more than a passing interest.

[Jessica Morden (Newport East) (Lab)]

T8. The former Secretary of State allowed the steel sector an additional year to appeal against the Trade Remedies Authority’s wrong-headed recommendations to remove safeguards. Do current Ministers share the sector’s concerns that without an extension of the safeguards, we risk becoming a magnet for imported steel, putting at risk thousands of high-paid, high-skilled jobs and millions of pounds of economic value?

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[Deidre Brock (Edinburgh North and Leith) (SNP)]

Because of poorly negotiated ideology-driven free trade deals, farmers will have no choice, if their businesses are to survive, but to resort to more intensive, less climate-friendly farming to compete with cheaper imports from such places as Australia—pretty shameful in the year that the UK hosts COP. Has the Department for International Trade, alongside colleagues in the Department for Environment, Food and Rural Affairs, analysed how this shift will impact on local pollution levels and our wider greenhouse gas footprint?

[Penny Mordaunt]

I am sorry to hear that very pessimistic question. I do not think our farmers in the UK are going to do that at all. I think they care deeply about animal welfare and I think they care deeply about the environment. I look forward to the press release from the Scottish Government championing the benefits to Scottish businesses that come from the New Zealand trade deal that we talked through with them yesterday. They are considerable and they ought to start talking up their businesses, their farmers and their food and drink sector, rather than doing it down.

[Saqib Bhatti (Meriden) (Con)]

May I first welcome the new ministerial team and of course the new parliamentary private secretaries, who I am sure will do as good a job as the previous ones? [Laughter.] I welcome the announcement today of an agreement in principle on the free trade deal with New Zealand. Can my right hon. Friend please confirm that the new free trade deals, such as the one that has been agreed today, are good for consumers and also open up export markets for our farmers?