Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 15th April 2021 Commons Chamber

[Marion Fellows (Motherwell and Wishaw) (SNP)]

What recent assessment her Department has made of the effect of steel import tariffs on the UK steel industry.

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

First, may I associate myself with the tributes on Monday led by you, Mr Speaker, and the Prime Minister on the death of His Royal Highness The Prince Philip, and the Humble Address of the House of Commons to Her Majesty?

We are committed to defending British industry and jobs and will not hesitate to take firm action where necessary, which is why we have safeguard measures in place. We know there are concerns that Chinese steel is receiving state subsidies that distort trade, so, working with our allies, we will challenge China and other countries to play by the rules.

[Marion Fellows [V]]

Motherwell in my constituency was once the heart of steel production in Scotland and the rest of the UK, but consecutive UK Governments have overseen the decline of steel jobs in Scotland from thousands to just over 100. Will the UK Government provide certainty for steelworkers today, support domestic production, protect those remaining jobs and retain the tariffs on steel imports?

[Mr Jayawardena]

When the Trade Remedies Authority is set up, it will conclude its investigation, which it would be wrong to pre-empt. We are of course working for every corner of our United Kingdom, backing British businesses and supporting Scottish jobs as much as we are supporting those in England, Wales and Northern Ireland—at a time when the Scottish National party wants to cut itself off from its largest market: the British internal market.

[Bill Esterson (Sefton Central) (Lab) [V]]

I am afraid the 5,000 workers at Liberty Steel will not have been reassured by the Minister’s answer. The collapse of Greensill Capital has created serious problems at Liberty Steel and is one of many reasons why the entire British steel industry now urgently needs leadership, stability and support from the Government. Can we get some clarity? Retaining the import tariffs is a political decision. Will the Minister play his part today by guaranteeing that the Government will retain the vital safeguard tariffs that Britain currently has in place against cheap steel imports for the full financial year ahead—no ifs, no buts and no maybes?

[Mr Jayawardena]

I do love the authenticity with which the hon. Gentleman asked his question; of course, if it were a political decision, he would be calling for it to be independent. It is an independent decision. The Trade Remedies Authority has teeth and will act accordingly. Just like this Government, our Trade Remedies Authority is going to defend the British national industry, back British jobs and support people throughout our United Kingdom.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

What recent discussions she has had with her US counterpart on not re-imposing tariffs on UK exports to the US.

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

What steps her Department is taking to help ensure a level trading field for UK steel producers while the EU and US maintain import controls on steel goods.

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

The Government back the British steel industry, as we have heard already this morning, and the unjustified US tariffs on steel, aluminium and derivatives imports from Britain are completely unfair and wholly unnecessary. Our rebalancing measures in response to the US section 232 on additional tariffs show that we will defend the British national interest and the rules-based system.

[Stephen Kinnock [V]]

Our steelworkers make the best steel that money can buy but, thanks to the indifference of successive Conservative Governments since 2010, they are constantly being made to compete with one hand tied behind their back. They are already dealing with the highest industrial energy prices in Europe and a Government procurement policy that fails the patriotism test, and now they face the possibility that, in June, steel safeguards that guard against import surges will be removed. Does the Minister agree that, if the Government were to remove those safeguards, it would add insult to injury and again undermine the ability of our steel industry to compete on a level playing field?

[Mr Jayawardena]

As the hon. Member knows, the British steel industry has benefited from investment of more than £500 million in recent years to help with the costs of energy, and we have announced a £250 million fund to support the decarbonisation of the industry. So this Government are dedicated to supporting the future of the steel industry and we will continue that work.

[Margaret Ferrier [V]]

Removing these measures would lead to the UK being one of the only steel markets without any protective measures for its steel industries. Does the Minister not agree that, while global overcapacity stands at over 500 million tonnes, it would be unwise to become a rare exposed market for steel when larger markets are still protected?

[Mr Jayawardena]

Mr Speaker, there are only so many times that I can say the same thing in a different way, but we have transitioned 19 of the EU’s measures and we have adopted systems in Britain for trade remedies based on international best practice to ensure that there is independence in this area. I say to the hon. Lady, as I have said already to her Scottish nationalist colleague, that the biggest market for Scotland is of course the British internal market, from which she is determined to tear Scotland.

[Duncan Baker (North Norfolk) (Con)]

What steps she is taking to tackle the use of (a) trade-distorting subsidies and (b) other unfair trading practices.

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[Kim Johnson (Liverpool, Riverside) (Lab)]

What steps she is taking with Cabinet colleagues to ensure that arms exported from the UK are not deployed in contravention of international humanitarian law.

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

All arms exports require an export licence. I can assure the House that we take our export control responsibilities very seriously. We rigorously assess every application on a case-by-case basis against the consolidated EU and national arms export licensing criteria, taking advice from the Foreign, Commonwealth and Development Office and the Ministry of Defence. We will not issue an export licence where to do so would be inconsistent with the consolidated criteria, including where there is a clear risk that the items might be used for a serious violation of international humanitarian law.

[Kim Johnson [V]]

The Yemeni community in Liverpool would like to know how the Minister can possibly justify the decision of his Department to increase its sales of bombs and missiles for use in Yemen to new record highs, while his friends at the Foreign Office are simultaneously cutting the amount of humanitarian aid going to starving Yemeni children. Does he accept that this is not just wrong, but downright immoral?

[Mr Jayawardena]

Not only are Her Majesty’s Government one of the biggest donors of aid around the world, including to Yemen, but as was set out in the Secretary of State’s written statement, we have devised a clear and revised methodology to make sure we will only license such products if they are consistent with the consolidated criteria.

[Craig Williams (Montgomeryshire) (Con)]

What recent assessment she has made of the potential effect of her Department’s trade policies on UK farmers.

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[Yasmin Qureshi (Bolton South East) (Lab)]

What recent discussions she has had with her US counterpart on trade sanctions on exports from Xinjiang.

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

The Secretary of State spoke with the US trade representative, Katherine Tai, on 22 March. They discussed a number of issues, including how the United Kingdom and the United States will collaborate to address shared concerns on serious matters such as forced labour. The Secretary of State also discussed the issue of forced labour with Ambassador Tai and her G7 counterparts during the G7 Trade Ministers meeting that she chaired on 31 March.

[Yasmin Qureshi [V]]

The Magnitsky-style sanctions against China are only the first step. While we welcome them, trade relations cannot be left out. What steps are the Government taking to ensure that UK consumers are not buying goods made with forced labour, and will the UK follow the US in banning imports of cotton from China’s Xinjiang region?

[Mr Jayawardena]

We are adopting a targeted approach to this issue, to make sure that we address the violations of rights and responsibilities. We have designated individuals and entities that have been involved in such violations. This is a smart tool, carefully targeted to achieve its goals, while minimising potentially negative wider impacts. It is not designed with a view to imposing sanctions on sectors within countries, for example.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

What steps her Department is taking to improve trade and business relationships between the UK and Sweden.

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[Damien Moore (Southport) (Con)]

What recent assessment she has made of the potential merits of strengthening the UK’s trading relationship with Tunisia. [R]

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

I am grateful to my hon. Friend for his work as the Prime Minister’s trade envoy to Tunisia and Libya. There is great merit in strengthening the trading relationship with Tunisia. Our trade deal entered into force at the beginning of this year and it provides a platform to deepen trade and investment. As he knows, we are already supporting businesses such as Unilever, AstraZeneca and Vodafone, who already operate in Tunisia, and we look forward to backing British businesses to do even more.

[Damien Moore [V]]

Tunisia is a leading exporter of olive oil and wants to export more to the UK, but minimum quota requirements based on the last two years are making this difficult. Will my hon. Friend look into this so that trade is made easy with Tunisia, which is eager to build an even stronger trading partnership with the UK?

[Mr Jayawardena]

I am aware of this matter and am keen to make sure that businesses can make the most of our transition to trade agreements, so I will look into it. I look forward to working with my hon. Friend and my Tunisian counterpart to open up and promote opportunities for British and Tunisian businesses; more trade means more jobs.

[Jacob Young (Redcar) (Con)]

What recent estimate she has made of the number of jobs in Teesside that are delivered by international trade.

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[Robert Halfon (Harlow) (Con)]

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

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

Britain has strong bilateral trading relationships with our friends in the middle east and a clear ambition to deepen them. As my right hon. Friend knows, we are undertaking a joint trade and investment review with the Gulf Co-operation Council, with which total trade stood at over £33 billion in the year to September 2020. The Government have also signed trade agreements with Jordan and Lebanon, and just last month we entered into an agreement with the sovereign wealth fund of Abu Dhabi to provide £1 billion of investment into British life sciences.

[Robert Halfon [V]]

Today is Yom Ha’atzmaut—Israeli independence day—so I hope that my hon. Friend will wish Israel happy independence day. The normalisation of ties between Israel and the United Arab Emirates and Bahrain last year was a hugely positive step not only for regional peace but for commerce, tourism and cultural exchanges. Does my hon. Friend agree that the United Kingdom is well placed to support our ally Israel in developing ties in the region, and will he explore the opportunities that these new trade relationships could bring to our country?

[Mr Jayawardena]

Indeed I do join my right hon. Friend in wishing all Israelis a happy independence day. He is right to recognise the strong relationships that we have with the state of Israel. We welcome the normalisation of relations, which creates many opportunities for increased trade, tourism and cultural links as well. Britain is well placed to support Israel in this endeavour. Total trade between us was £4.9 billion in the year to September 2020, up from the previous year. We are building a framework for a new bilateral science partnership. In addition, the tech hub based in the British embassy in Tel Aviv continues to partner Israeli expertise with British companies, delivering significant benefits to the British economy.

[Mark Logan (Bolton North East) (Con)]

What recent estimate she has made of the number of jobs in the north-west that are delivered by international trade.

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

The text, and a parliamentary report and explanatory memorandum, will of course come before Parliament in due course. We wish to utilise the agreement to strengthen the trade ties between our two countries. I look forward to the Labour party supporting our agenda to create more jobs in every part of this country and in Cameroon.

[Imran Ahmad Khan (Wakefield) (Con)]

I have been delighted to work with the excellent team at the Department of International Trade in setting up the parliamentary export programme in Wakefield, which several Wakefield businesses have joined. The programme has allowed them to learn the benefits of exporting under the free trade agreements that my right hon. Friend the Secretary of State and her excellent, dynamic team have signed thus far. With more free trade agreements to be ratified, including with blocs such as the CPTPP, can my right hon. Friend outline to the House what benefits these new agreements will bring to businesses in Wakefield and across West Yorkshire?

[Chris Law (Dundee West) (SNP) [V]]

  In its annual report on human rights around the world, Amnesty International says that the UK Government’s increasingly hostile attitude towards upholding and preserving human rights legislation raises “serious concerns”. Indeed, the report specifically cited the resumption of the sale of new licences for military exports to Saudi Arabia. Does the Minister agree with Amnesty International’s conclusion that this shameful move has contributed to the UK’s“headlong rush into abandoning...human rights”?

[Mr Jayawardena]

Not at all. We have always been clear that more trade need not come at the expense of our values, as my right hon. Friend the Secretary of State made clear earlier today. We have one of the most robust systems of arms export controls in the world and have always been clear that we will only permit exports on a case-by-case basis where the consolidated criteria are upheld.

[Robert Halfon (Harlow) (Con) [V]]

  Will my right hon. Friend set out what progress her Department is making on meeting the 2.3% public sector apprenticeship target and when it will meet it, and also say what she is doing to encourage all the businesses that she speaks to about international trade to employ apprentices?