Oral Answers to Questions

Penny Mordaunt Excerpts

Thursday 21st April 2022 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

1. What steps she is taking to help increase UK trade with African countries.

[The Minister for Trade Policy (Penny Mordaunt)]

Overall UK-Africa trade stood at £32 billion last year. We will increase that and achieve our investment goals. By 2030, Africa will have 1.7 billion consumers, and our post-Brexit trade policy will enable those nations to grow their economies and create opportunities for UK businesses.

[Mr Robertson]

I thank the Minister for that response. In all my visits to Africa on trade missions, it has been clear that people there really do want to do business with British companies, perhaps in preference to doing business with the Chinese. Will we do everything we can to make British companies realise the opportunities that exist in Africa?

[Penny Mordaunt]

First, let me place on record our thanks for everything my hon. Friend has done to improve trade with the continent and with Ethiopia in particular. He is right to say that there are massive opportunities there, but our great businesses face tough competition, including from China’s growing influence and impact on the region, particularly through soft infrastructure at the moment. In recent months, we have strengthened our situational awareness of what China is doing and are actively supporting UK businesses to reach those opportunities early. We are doing that through providing competitive finance and support across the continent.

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

As many African countries depend in normal times on Ukraine, Belarus and Russia for almost 100% of their grain, we find ourselves in a situation where we are trading in the same commodities markets as African countries, pushing up the prices for some of the poorest people in the world. Will the Minister acknowledge that, look again at the Government’s cut in aid and put that back to where it was? Will she also perhaps consider that the best way we can deal with that situation is by backing British farming, so that we can feed ourselves and not be robbing the food that should be feeding the poorest in the world?

[Penny Mordaunt]

Let me put the aid budget in context. If we trebled the aid budget, it still would not be enough to deal with some of the situations that that continent is facing at the moment. A group in Whitehall is looking at all these issues, including food security, both in Africa and in Ukraine. Within that, there will be opportunities for other nations to start being able to supply, to step in and fill that gap. Obviously, we will want to ensure that Ukraine’s food security is looked after as well. A huge amount is going on in Whitehall, and if the hon. Gentleman would like some more information, I am sure we could supply him with the detail.

[Caroline Ansell (Eastbourne) (Con)]

2. What steps she is taking to help support British international English language schools recover from the covid-19 pandemic.

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[Liz Twist (Blaydon) (Lab)]

23. What steps she is taking to help ensure that workers’ rights are maintained in all UK trade agreements.

[The Minister for Trade Policy (Penny Mordaunt)]

Both agreements with Australia and New Zealand commit parties to maintain international labour standards.

[Chris Elmore]

The Minister will be aware that the TUC was first promised a seat on a trade advisory board in November 2020, and 18 months on it has still not been offered that seat. It was quite right that life sciences, transport, financial services and various other bodies have seats on these trade boards. Why do the Government have a problem with the TUC or any of our trade unions, which do an enormous amount of work in protecting workers’ rights in this country?

[Penny Mordaunt]

The issue is that the unions have not taken up the seat they were offered, but my right hon. Friend the Secretary of State has included dialogue with unions in our trade negotiations at every opportunity—most recently, with the work she has been doing to secure a US FTA—and we will continue to do that. They are important stakeholders, and they will always be offered a seat at the table.

[Liz Twist]

Can the Minister tell the House whether the issue of labour standards in supply chains has been raised with India during the trade negotiations?

[Penny Mordaunt]

The hon. Member will know from the trade negotiations that we have concluded already, that this always forms a part of those negotiations through our discussions and consultations. I can get her chapter and verse on that and some details. It is not one of the FTAs I look after, but I can assure her that that is a core part of our negotiations.

[Mr Speaker]

I call the shadow Minister, Ruth Cadbury.

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

In 2019, the UK signed a trade deal with Colombia. Two years after that deal, Colombia remains the deadliest country for workers and trade union members, with 22 assassinations in the last two years alone. However, the UK’s trade deal has no clear enforcement mechanisms to protect the rights of workers or trade unionists. Will Ministers learn anything from this failure, especially when they negotiate future trade agreements with Gulf states?

[Penny Mordaunt]

I refer the hon. Member to some remarks on this issue that I made last year in Westminster Hall, where I took the time to list some of the activists—trade union activists, environmental activists—who have been brutally murdered. I listed those people on the Floor in Westminster Hall because it is important that we shine a spotlight on those issues. She will know that we have also taken great efforts to raise this issue at the UN, and I think we are upholding our obligations to those people in doing that.

[Chris Green (Bolton West) (Con)]

14. What steps her Department is taking to support UK manufacturing exports.

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[Mr Laurence Robertson (Tewkesbury) (Con)]

T2. In spite of the ongoing conflict in Tigray, a number of businesses have contacted me to say that they want to increase the amount of business that they do in Ethiopia. Will the Minister keep the dialogue going with the Ethiopian Government? That will help our businesses and may help to bring the conflict to an end.

[The Minister for Trade Policy (Penny Mordaunt)]

I completely agree with my hon. Friend. UK exports to that country were up 7.2% on the previous year. He will know that recently we have had a UK-led consortium committing $8 billion of investment into telecoms, which will significantly increase growth and jobs and help the digital economy in that country. I thank him again for the role that he played in securing that investment.

[Christine Jardine (Edinburgh West) (LD)]

T5. This morning, much has been made of our links with Ukraine, and that comes at a time when the Prime Minister is in India for trade talks. We also hear reports of a $2 billion increase in India’s trade with Russia. What implications does that have for our relationship with India and for our sanctions on Russia? Will that be taken into account in the Prime Minister’s dealings? Will he be putting pressure on India to sanction Russia?

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[Damian Collins (Folkestone and Hythe) (Con)]

T6. States in the USA such as Texas and California have a larger GDP than many European nations. Aside from the UK-US trade negotiations, will the Minister say what progress is being made on trade deals between the UK and individual states in the USA?

[Penny Mordaunt]

We are making considerable progress on that. We are in discussions with around 20 US states. I have just returned from Texas, which if it were a country in its own right would be the seventh largest economy in the world. We are going to do a state-level agreement with Texas, we hope, by October this year. We will start signing those agreements with US states next month. The first eight we have in the pipeline will be equivalent to 20% of the United States economy.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

During the recent British-American Parliamentary Group trade and security delegation to the US, we received the unequivocal message that any US-UK trade deal would have to be worker-centric. We also heard that the Secretary of State had said during the Baltimore dialogues that levelling up was the British equivalent of worker-centric and that therefore any levelled-up trade deal would have workers at its heart. Can she confirm whether that is the case and, if so, how she will ensure a worker voice at every trade meeting and discussion?

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[Sir Robert Syms (Poole) (Con)]

Can we have an update on our joining the trans-Pacific partnership? That is important not only because of the growing markets, but because of the international challenges, stability and defence in the region.

[Penny Mordaunt]

My hon. Friend is absolutely right; we have reached a major milestone on that accession process by moving to market access negotiations with that trade bloc. In addition to opening up a new market, this will also help us on such matters as maritime security and meeting the goals of the integrated review. CPTPP has strong rules against the unfair trade practice whereby some countries—China has been mentioned—give unreasonable advantages to state-owned enterprises or discriminate against foreign investors. Our vision for that part of the world has trade at its heart.