Oral Answers to Questions

Penny Mordaunt Excerpts

Thursday 16th June 2022 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

3. What steps her Department is taking to increase trade with Commonwealth countries.

[The Minister for Trade Policy (Penny Mordaunt)]

Mr Speaker, may I also associate myself with your remarks about Jo Cox and her legacy? My thoughts are with her family today.

Pre-pandemic, the combined GDP of the Commonwealth was $9 trillion, and nearly 80% of that was due to four nations: us, India, Canada, with which we are now negotiating a free trade agreement, and Australia, with which we have already secured a from-scratch FTA. With 27 economic partnerships, we intend to boost our intra-Commonwealth trade to $2 trillion by 2030.

[Mrs Murray]

In this year of the platinum jubilee, what better time could there be to cement our bond with Commonwealth countries? Does my right hon. Friend agree that this would be an excellent year to redouble our efforts to increase trade with those nations, which have such a strong history with our own?

[Penny Mordaunt]

I thank my hon. Friend for raising that. Yes, we have the jubilee, and we also have the Commonwealth games, and the Commonwealth Heads of Government meeting is approaching. It is right that we celebrate and enhance the power of our Commonwealth family. We are united in our commitment to democracy, peace and prosperity, and we will continue to work with our partners to capture the potential of the Commonwealth advantage, which on average allows for 21% lower bilateral trade costs between Commonwealth countries, compared with most non-Commonwealth countries. We should put all our weight behind maximising that.

[Rachael Maskell (York Central) (Lab/Co-op)]

4. What discussions she has had with Cabinet colleagues on the impact of trade with China on surveillance technology.

--- Later in debate ---

[The Minister for Trade Policy (Penny Mordaunt)]

The Trade Remedies Authority seeks to defend UK industries from unfair trade practices. It was established last year and has already begun a series of investigations and making recommendations to support businesses in sectors vital to the UK national interest.

[Liz Twist]

Hydro, which produces aluminium extrusions at its Birtley factory in my constituency, is concerned that the final measures proposed by the Trade Remedies Authority will not protect it from imports from China and that they are nowhere near as strong as EU tariffs. Will the Minister or the Secretary of State meet me and Hydro to discuss the situation and how the proposed TRA decision will affect the company?

[Penny Mordaunt]

I thank the hon. Lady for her question. The provisional rates are based on the evidence that the TRA had gathered at that point in its investigation. Companies will have to pay provisional duties only if there is a decision to apply a definitive anti-dumping duty. The TRA was in Parliament last week, I think, willing to talk to Members of Parliament. It is always open to doing that, as well as to speaking directly with businesses, but I shall pass on her comments to the Secretary of State. She is not here today because of MC12—the World Trade Organisation’s 12th ministerial conference—but I will ensure that the hon. Lady’s concerns are passed on to her.

[Theresa Villiers (Chipping Barnet) (Con)]

8. What steps she is taking to promote UK food exports around the world.

--- Later in debate ---

[Craig Tracey (North Warwickshire) (Con)]

10. What steps her Department is taking to encourage the US Administration to lift tariffs on imports from the UK.

[The Minister for Trade Policy (Penny Mordaunt)]

On 1 June, section 232 tariffs on imports of UK steel and aluminium products were lifted. We have also secured the lifting of the long-standing US ban on the import of British beef and lamb.

[Craig Tracey]

The Minister is doing excellent work to help pave the way for UK businesses to do more trade in the US, and lifting tariffs is just one of the ways we can do that. Will she set out what more the Government can do to support our leading service sectors, as well as help our small and medium-sized enterprises to get their foot in the door?

[Penny Mordaunt]

I thank my hon. Friend for raising that point. In addition to a free trade agreement, which will assist us on tariffs and those kinds of barriers, we are pursuing a twin-track approach with US states. That will help our service sector in particular. We are also looking at the mutual recognition of qualifications in accounting, auditing, legal services and so on. Next week, we are holding a UK-US SME dialogue in Boston to help us open up procurement possibilities for companies that would find it difficult to seek out those opportunities.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

11. What steps her Department plans to take to help secure an agreement at the World Trade Organisation on ensuring global access to covid-19 vaccines.

[The Minister for Trade Policy (Penny Mordaunt)]

Negotiations on the response to the covid-19 pandemic are taking place at the World Trade Organisation’s 12th ministerial conference this week. Although I cannot comment on live negotiations—and they are very live today—the UK is seeking a comprehensive multilateral declaration addressing the trade policy issues that will make a real difference to global access to vaccines.

[Mr Speaker]

Sir Christopher Chope. [Interruption.] Oh, sorry. I call Dame Diana Johnson.

[Dame Diana Johnson]

I would like to have my say! Thank you, Mr Speaker.

I think there is broad agreement across the House that the world will not fully defeat covid until its vaccination levels are the same as those we have been very fortunate to get through the NHS. Will the Minister go further and give more detail on what we are asking for in those negotiations? She was quite brief in what she said.

[Penny Mordaunt]

The right hon. Lady’s question is very timely. The negotiations are going on as we speak, so I do not want to comment on those live negotiations. She will know that we firmly believe that having strong intellectual property rights is key to ensuring that investment is going into the science base and that these products and vaccines will continue to be developed. We need that to happen, as well as to ensure that there is equity and that the world can make use of these amazing products.

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

Perhaps the reason that the Minister of State does not want to give any more detail is that in Geneva this week the Secretary of State has actually been leading efforts to water down or block any deal on access to covid medicines. I gently ask the Minister of State this: with so few people in developing countries having had their first covid vaccine, why are Ministers so determined to prevent some of the richest companies across the globe from giving the poorest people in the world the tools they need to stop transmission and save lives?

[Penny Mordaunt]

That is a ridiculous mischaracterisation of this country’s stance. We are one of the largest donors to the covid advance market commitment, which is ensuring that the vaccine is being rolled out in 92 developing countries. We are at the forefront of that effort. What the Secretary of State is trying to do is ensure that investment in the science base that created these vaccines remains strong. We need to do both of those things if we are going to vaccinate the world.

[Sir Christopher Chope (Christchurch) (Con)]

12. What steps she is taking to promote trade between the UK and California.

[The Minister for Trade Policy (Penny Mordaunt)]

Across the US, we are unlocking barriers for business at state level, while also engaging at the federal level. There is huge potential for growing trade in California, and I have visited California three times as part of the Department for International Trade stateside tour.

[Sir Christopher Chope]

I thank my right hon. Friend for that answer, but as California is the fifth largest economy in the world, will she redouble her efforts and, in particular, give us a timescale for securing a memorandum of understanding with the state of California similar to that which she successfully negotiated with Indiana?

[Penny Mordaunt]

We are currently talking to about 25 states with regard to memorandums of understanding, including California. Larger economy states will take longer than smaller economies to arrive at the final MOU. We think that within the first eight we will have some super-economy states, including Texas. California will be a little way off, but I hope to conclude a large number of these MOUs by the end of this year, and we expect to sign further in the coming weeks.

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

The UK Government, as we have heard, are in talks with 25 individual US states, in the hope of establishing tailored free trade agreements. I believe that the Cabinet has set California and Texas in its immediate sights. If the UK Government have no qualms in entering into trade agreements with sub-state actors such as those US states and do not think that that violates US sovereignty, why do they oppose the Scottish Government entering into their own free trade negotiations?

[Penny Mordaunt]

This argument, I am afraid, is a false one, and it has also been perpetrated with regard to the Australia deal. The structures and kinds of regulations and laws that we are talking about are not equivalent. In Australia’s case, we are not talking about law or EU retained law; we are talking about guidelines that sit at state level. Obviously, the MOUs that we are agreeing with US states are not free trade agreements in terms of tariffs; they talk about our regulation, mutual recognition of qualifications and all of those things. Within those MOUs, we are actually doing partnerships between particular locations of the UK, which could include the devolved nations. Northern Ireland has such an MOU with other parts of the US, and I encourage the Scottish Government to get on board, because there would be massive advantages to people in Scotland if they did so.

[Richard Fuller (North East Bedfordshire) (Con)]

I commend my right hon. Friend’s progress in her discussions with California, but she will know that many leading companies have left California for Texas because of that state’s low-tax, light-touch, pro-growth regulation. Will she update the House on the progress that she is making in her discussions with Texas? What lessons has she learned and passed on about the scope for regulatory reform in this country?

[Penny Mordaunt]

There is massive scope for such reform, which is one reason why we are pursuing this agenda. My hon. Friend is absolutely right that business is seeking out business-friendly states in the United States. There is now some competition to secure MOUs with us, and we are going after states that are really open for business and open to bringing people, ideas and money together to solve the world’s problems. Texas will be a trailblazer state; we have signed with Indiana; and Oklahoma, the Carolinas and others are really pushing the agenda forward. There are massive potential benefits for us, and for the United States too.

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

13. What recent discussions she has had with Cabinet colleagues on measures to support companies to exploit export opportunities in international markets.

--- Later in debate ---

[Theresa Villiers (Chipping Barnet) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Minister for Trade Policy (Penny Mordaunt)]

The UK signed a trade and economic development memorandum with the state of Indiana on 27 May. The first such arrangement between the UK and an individual US state, it forms part of our twin-track approach to trading with the United States, seeking out ways to unlock barriers for business at state level in addition to our engagement at federal level. We are to sign further memorandums of understanding in the coming weeks.

[Theresa Villiers]

May we have a cross-Government effort on post-Brexit reform to ensure that our regulation does more to facilitate competition and new market entrants? That is crucial not only to grow our domestic economy but to secure trade agreements and boost international trade.

[Penny Mordaunt]

I thank my right hon. Friend for her question. She is one of the authors of the appropriately named TIGRR report—the report of the taskforce on innovation, growth and regulatory reform—which pointed to some great ideas and focused on how we can ensure that our regulation is enabling, not a barrier to deepening trade ties and opening up opportunities for our citizens. In addition to our work on our domestic regime, we are, as I said earlier, working with other nations and getting our regulators to talk together, so that we can improve our international trade opportunities.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Mr Speaker, I echo your words about Jo Cox, whose ongoing legacy is testament to her remarkable dedication and compassion. Members across the House will be thinking of her family today.

Steel is a foundational industry for our economy, yet Members across the House will be aware of the difficulties that steelworkers have been through in recent years, from the US tariffs to the current cost of living crisis. The clock is ticking for the UK steel sector, with just 14 days left for the Secretary of State to make a decision on whether current trade safeguards remain in place. Will the Minister of State help to remove the uncertainty by urging the Secretary of State to make that decision today?

[Penny Mordaunt]

The Secretary of State needs no urging, but it is important that she is able to make the right decision on this. The steel safeguards reconsideration is ongoing. I know the deadline is looming. My right hon. Friend is carefully considering all the information that has been presented to her. Obviously, we expect a decision very shortly. We understand its importance to the steel sector, both producers and end users.

[Nick Thomas-Symonds]

To say that a decision is expected shortly simply is not good enough. To ensure that this vital industry can survive, Ministers must stop dragging their feet and act urgently to safeguard the steel sector. Jobs and livelihoods in our communities are at risk. Labour backs UK steel. Does the Minister of State not accept that the reality is that, with time passing, Ministers are too busy propping up the Prime Minister to act decisively for the people?

[Penny Mordaunt]

With regard to the right hon. Member’s last comment, it is always a good indication that we do not have to look at the ONS statistics to know that the trade numbers are going the right way when the Opposition spokesman wants to ask questions that are not related to trade. This Secretary of State has done a huge amount to support the steel and aluminium industries of the UK, not least in managing to renegotiate the decision on section 232 tariffs. She will continue to do that and she will make an announcement on the safeguarding issue very shortly.

[Peter Aldous (Waveney) (Con)]

T2. As the UK decarbonises our economy to deliver net zero, it is vital that a carbon border adjustment mechanism is implemented to prevent carbon leakage to other parts of the world, to ensure that our own domestic producers are not undercut and to create jobs. Will my right hon. Friend provide an update on the Government’s work to deliver the mechanism, particularly with regard to international co-operation with the EU and the US?

[Penny Mordaunt]

I thank my hon. Friend for raising this important issue. We recognise that the risk of carbon leakage is a very real one, and on 16 May we announced our intention to consult on a range of possible mitigation options, including product standards and a carbon border adjustment mechanism. We are working with our international partners and we are clear that any policies we consider will have to fit in with other UK priorities, which include the cost of living, economic growth, and our commitment to the World Trade Organisation, free and fair trade and the needs of developing nations.

[Mr Speaker]

I call the Scottish National party spokesperson, Anum Qaisar.

--- Later in debate ---

[Helen Hayes (Dulwich and West Norwood) (Lab)]

T3. This morning we have heard some frankly staggering attempts to present a dreadful UK-EU trade context as some kind of triumph, but that simply will not wash with my constituents who are struggling with increased red tape when exporting to EU member states. Rather than building stronger trade links with our closest neighbours, Ministers are now ripping up the agreement they negotiated and risking a trade war with the EU. What is the Secretary of State doing to improve trading links with Europe and to end disruption for businesses?

[Penny Mordaunt]

I remind the hon. Lady of the trader support service and the export support service, which are there to provide bespoke support to businesses. I encourage her to put them in touch with her constituents.

I am afraid the figures do not bear out what the hon. Lady is saying. The increase in goods exports to the EU, to which the Under-Secretary of State for International Trade, my hon. Friend the Member for Finchley and Golders Green (Mike Freer) alluded, has in part been driven by an 8.1% increase in exports from the UK to the EU in April compared with March. We are bouncing back from the pandemic and the difficulties as we changed our border and left the EU. The country is improving on that front. Where issues remain, whether for the hon. Lady’s local businesses or for the Northern Ireland protocol, we are determined to resolve them.

[Dr Jamie Wallis (Bridgend) (Con)]

T6. Many of my constituents work in the nearby Port Talbot steelworks, located just outside my Bridgend constituency. Will my right hon. Friend give an assessment of the impact on the UK steel sector of removing US tariffs on UK steel?

[Penny Mordaunt]

I thank my hon. Friend for all his work to champion the steel industry. The 500,000-tonne annual quota secured for steel exporters is almost double the annual volume of UK steel exports to the US between 2018 and 2019, and it provides a significant opportunity for the UK industry to increase its supply to US customers.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T4. According to the latest figures from the Food and Drink Federation, despite the Minister’s earlier remarks, UK food and drink exports to the EU in the first quarter of 2022 were still £600 million lower than in the first quarter of 2019. Given the continual shortfall in post-Brexit trade with our largest trading partner, does she think embarking on a wholly unnecessary trade war is wise? If not, what will she do to avert it?

[Penny Mordaunt]

The statistics I quoted are from the Office for National Statistics. Across all goods there is a marked improvement, but we want to do more in the food and drink sector. That is why we are putting in place bespoke food, drink and agriculture attachés around the world to ensure our farmers and producers have more opportunities in global trade.

[Scott Benton (Blackpool South) (Con)]

A trade deal with Israel would slash red tape and increase investment opportunities for both the UK and Israel. What progress have the Government made in securing a bilateral free trade deal with our close ally?

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

Will my right hon. Friend update the House on post-Brexit trade opportunities?

[Penny Mordaunt]

Obviously, we have agreed an enormous number of trade agreements, including several from scratch. We have a new export strategy and more support for British business; we have a new export finance mission; we are an Association of Southeast Asian Nations dialogue partner; we have a voice back at the World Trade Organisation; we have created the Trade Remedies Authority, to help support our own economic interests; we have set our own global tariff regime; we have streamlined nearly 6,000 tariff lines, lowering costs for business, and scrapped thousands of unnecessary tariff variations; we are creating a single trade window; we will have the most effective border in the world by 2025; and Mr Speaker will be very pleased to hear that we are bringing forward measures to ensure that cat fur products are not allowed to be traded. All this is in addition to blue passports and the prospect of the crown stamp on a pint of English beer.

[Carol Monaghan (Glasgow North West) (SNP)]

T8. A recent London School of Economics report has found that between the end of 2019 and September 2021 UK-EU trade barriers led to a 6% increase in food prices in the UK. Will Ministers start being truthful and admit that the soaring prices are being caused not by the war in Ukraine but the Government’s post-Brexit trade agreement, which is causing so much hardship for my constituents in Glasgow?

[Penny Mordaunt]

The hon. Lady will know that work in government is looking at our global tariff and our tariff regime, with specific reference to ensuring that we are helping on the cost of living issues, which are really affecting our constituents. Leaving the EU has enabled us not only to make those decisions, but to treat developing nations with better preferences on tariffs, helping their economies as well as our own.

[Martin Vickers (Cleethorpes) (Con)]

We heard a lot in the reply to an earlier question about exports of cheese. What initiatives are the Government planning to extend the export market for seafood? My constituency and neighbouring Grimsby are major centres for excellent seafood.

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

The Commonwealth Heads of Government meeting in Rwanda is an excellent opportunity to promote trade with the Commonwealth. As chair of the all-party group on Africa, I am well aware of the important role that diaspora communities can play in growing trade, where familial and friendship links are so important. Newcastle, like many cities and towns in this country, has a number of Commonwealth diaspora communities. What specific help can people in Newcastle expect from this Department to trade with the countries they, their parents or their grandparents may have come from?

[Penny Mordaunt]

I thank the hon. Lady for that important question. She will know that both import and export figures with regard to Commonwealth nations are increasing quite substantially. There are many schemes that both our Department and the Department for Business, Energy and Industrial Strategy have in place. Obviously the local enterprise partnership networks are also assisting with this.

[Sir Christopher Chope (Christchurch) (Con)]

When a group of us from the British-American Parliamentary Group visited California last month, we were much impressed by the work of our trade teams in Los Angeles and San Francisco. However, those teams would be able to be even more effective if they had more flexibility to employ local staff, in line with prevailing labour market rates, as filling vacancies is a problem. What will the Government do to enable them to do that?

[Penny Mordaunt]

We are doing several pieces of work on that, but one thing we are looking at in respect of our memorandums of understanding and our economic dialogues with individual states is the mutual recognition of qualifications. We are focusing on technical trades in particular, with legal, accountancy and audit, engineering and architecture being the trailblazers. This will not only help UK firms to win more business but help with the labour-market issues that are affecting businesses on both sides of the Atlantic.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

How are Ministers planning to promote the Trade Remedies Authority to businesses in Scotland, to increase the awareness and take-up of its services where necessary?

[Penny Mordaunt]

They should follow the hon. Lady’s example: I know that she attended the session with the Trade Remedies Authority. It is incredibly important that we get the message out to businesses that the TRA is an independent body with which they can take up issues. I thank the hon. Lady for attending and for enabling me to say that at the Dispatch Box today.

[Richard Fuller (North East Bedfordshire) (Con)]

There are significant opportunities for British exporters to the Gulf states that are members of the Gulf Co-operation Council, not least because we already export a lot and because the barriers for our exporters are greater than those for GCC exports to the UK. Will my hon. Friend update me on what progress is being made on achieving such a deal?