Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 8th October 2020 Commons Chamber

[John Howell (Henley) (Con)]

What steps she is taking to strengthen the UK’s trade relationship with Israel.

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

Britain’s trading relationships are already strong in the middle east. In the year ending March 2020, we had bilateral trade of £43.7 billion with the Gulf Co-operation Council countries and £5.1 billion with Israel. I know that my hon. Friend will join me in welcoming the Prime Minister’s appointment of Lord Austin—former Labour MP for Dudley North—as trade envoy to Israel. As Britain has now taken back control of her trade policy, I can confirm that we are now able to start scoping and probing for talks for a new higher-ambition trade agreement with Israel. We have already launched a joint trade and investment review with the GCC, taking us on the next leg of the journey to free trade with its members.

[Alexander Stafford]

I join my hon. Friend in congratulating Lord Austin, who is a balanced and fair parliamentarian, on his great role, and we look forward to his work there. Given our strong and very positive relationships both with Israel and the Gulf states, the UK has a key role in striking deals. Will he update the House on what further plans we have for striking deals with these countries, as this will not only be good for UK exports but for our international relations as well?

[Mr Jayawardena]

My hon. Friend is right. I am delighted that the United Kingdom-Israel trade and partnership agreement was one of the first agreements to be signed by the Department, and relations will be enhanced as we further deepen our work with Israel. As I mentioned, we have recently launched the United Kingdom GCC JTIR—joint trade and investment review—which will facilitate agreements with our friends there to broaden our trade relationships and realise new opportunities in areas such as education, healthcare, and food and drink. Recently my Department’s lobbying secured an improvement in the United Arab Emirates’ labelling rules, which has allowed businesses such as sports nutrition start-up Grenade in Solihull to continue to grow in the market. I look forward to securing many more opportunities for businesses across the country.

[John Howell]

It is unsurprising that Israel is one of the first countries to sign a post-Brexit trade agreement with the UK because bilateral relations are, as the Minister says, very strong. What progress is being made in expanding those opportunities, and how do they go beyond the agreements that have already been signed by the UK?

[Mr Jayawardena]

My hon. Friend is right to be very ambitious for Britain’s future as we unleash the potential of every corner of our country. I was very pleased to see that last year this growth included new export wins totalling £1 million in his constituency. He is a great champion of exports and he is right that there is more that we can do. There are exciting opportunities in sectors such as financial services, infrastructure and technology. We are working with Israeli counterparts to realise those, including through reinstating plans to host an Anglo-Israeli trade and investment conference in London.

[Mark Fletcher (Bolsover) (Con)]

What steps her Department is taking to support economic recovery from the covid-19 pandemic through UK exports.

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[Matt Western (Warwick and Leamington) (Lab)]

What discussions she has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of using carbon tariffs to reduce emissions associated with international trade.

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

Britain has reduced emissions faster than any other G7 nation since 1990; and we were the first major economy to legislate for net zero emissions, too. This people’s Government will make sure the British people benefit from being at the forefront of clean wind energy. We will spend £160 million on port and factory upgrades to create jobs, build turbines and increase our offshore wind capacity, which is already the biggest in the world. The hon. Gentleman can be sure that we will continue to push for ambitious international action to protect the environment, including through our trade agenda. Indeed, my right hon. Friend the Secretary of State has already made it clear that the environment is one of her top three priorities for British leadership at the World Trade Organisation.

[Matt Western]

I congratulate the hon. Gentleman on his position on the Front Bench, having worked with him on the International Trade Committee for a couple of years. Contrary to the points being made by certain Ministers, I would say that many of us on this side of the House speak up for businesses and are very proud of the contribution that our world-beating businesses and industries make. Carbon border taxes are an important measure not just for the environment, but for preventing carbon-intensive industries from relocating to countries with lower emissions standards and therefore a lower cost base. Can the Minister assure us that there is nothing in the deal that the Government have signed with Japan or nothing in the deals being struck with the US in the comprehensive and progressive agreement for trans-Pacific partnership—

[Mr Speaker]

Order. It is far too long in both cases—we will not get anyone else in at this rate. Minister, try and do the best you can.

[Mr Jayawardena]

My Department really does recognise the role that trade and tariffs can play in reducing global carbon emissions, and we are clear that trade does not have to come at the expense of the environment, but growing trade is important for so many more reasons. It delivers the things that our people care about: better jobs, higher wages, greater choice and lower prices, and our new global tariff helps to deliver that, as well as supporting the environment, by liberalising tariffs on 104 environmental goods that we are promoting.

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

What progress has been made in the UK/US trade negotiations on digital trade.

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[Andy Carter (Warrington South) (Con)]

Businesses in Warrington South tell me they want to do more business around the world. Can my hon. Friend tell me and the House how they can do that with the benefit of our new free trade agreements?

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

I know that many businesses in Warrington are already flying the flag. Earlier this week, I was delighted to learn that Warrington’s ICC Solutions has secured a deal with a major US acquiring bank so that its technology will be used to make card payments safer in America. This company does great work as one of our export champions too. Ultimately, FTAs are going to create better jobs, higher wages, more choice and lower prices for all parts of our country. An ambitious FTA with the US could boost the economy in the north-west by £389 million per year.

[Beth Winter (Cynon Valley) (Lab) [V]]

  In response to Russia’s illegal annexation of Crimea, the UK has been at the forefront of EU sanction action against Russia, which this Government have reiterated their support for in two written statements to the House this year. Does the Secretary of State accept an obligation to operate the same principles in relation to trade with the illegal Israeli settlements in Palestinian territories?

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

We have had five years of horrific humanitarian crisis in Yemen, and over that period the Government have traded and made profit from £6.5 billion-worth of licensed arms. At the same time, they have given only £1 billion in aid. The UN has said that a consistent pattern of harm to civilians is being caused, so will the Secretary of State say why profiteering from arms sales is more important than supporting civilians in crisis?

[Mr Jayawardena]

I understand the hon. Lady’s point, but Her Majesty’s Government take their arms export responsibilities very seriously. We assess arms exports in accordance with strict licensing criteria. Those are consolidated EU and national arms export licensing criteria, and we draw on a lot of available information, including reports from non-governmental organisations and our overseas network in doing so. We will not license the export of equipment where to do so would be inconsistent with the criteria.