Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 15th July 2021 Commons Chamber

[Sir David Amess (Southend West) (Con)]

What recent progress she has made on negotiating new free trade agreements.

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

I wish the hon. Member for Harrow West (Gareth Thomas) a happy birthday. I hope he has had all the answers he was looking for today.

We now have trade deals with 68 countries around the world, plus the EU, covering trade worth £744 billion last year. Last week, I signed a trade deal with the European Economic Area-European Free Trade Association countries Norway, Iceland and Lichtenstein. It is one of the new generation of trade deals we are signing, which Britain has struck as an independent trading nation. It shows that Britain is a pioneering partner of choice when it comes to trade. They have gone further with us than with any other FTA partner, benefiting every corner of our country. From fish feed to cheese, sausages to strawberries, tariffs have been cut, backing jobs across Britain.

[Mr Speaker]

Let’s go to Karl MᶜCartney. [Interruption.] Maybe not. So we will go to Sir David Amess.

[Sir David Amess [V]]

While I wholeheartedly congratulate the Government on the agreements negotiated so far, as the chairman of the all-party parliamentary group for the Maldives, I urge my hon. Friend, following our meeting, to negotiate something that is slightly different, an economic partnership agreement, with the Maldives Government, which would benefit not only our country but the core industry of sustainable tuna fishing in the Maldives in the light of COP26.

[Mr Jayawardena]

It was a pleasure to meet my hon. Friend recently to discuss trade policy regarding the Maldives. He will know that we have agreed trade deals covering 31 African, Caribbean and Pacific countries already, showing our belief in trade for development. I can confirm to him that I am keen to find a route to short circuit the process of agreeing more trade deals like these with Commonwealth friends around the world.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

I concur with the previous speaker on the Maldives.

Some seafood companies in Scotland have seen their costs of selling to the continent treble from 32p a kilo to about £1 a kilo. Also, UK exports to Ireland have fallen by 47.6%. All that illustrates the current damage Brexit is doing. We know from Government figures that, for every £490 lost to GDP, trade deals are not bringing in very much, unfortunately: an Australian trade deal makes up only £2 of that; a New Zealand trade deal £1; an America deal, if it happens, £20; and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will bring in £3 to £8, depending on the way the cards fall. Has the DIT identified any other trade deal that might make up merely 0.1% of GDP, the odd £10 for every £490 of Brexit loss? Is there a figure for India yet? It has been a number of weeks since I asked the Minister this, but is there a GDP figure for a trade deal with India, if it happens?

[Mr Jayawardena]

The question has been asked and it has already been answered. I would have thought that the hon. Gentleman would welcome that, in the EEA-EFTA trade deal, we have secured great benefits for Scottish businesses exporting to Norway. According to the figures I have seen, Orkney Scottish Island cheddar could see its duty reduced by two thirds. There will also be an important new opportunity for fish feed exporters to export tariff-free to Norway—it will see previously high tariffs on fish feed slashed to nought—providing a potential boost to the aquaculture industry in Scotland.

[Paul Bristow (Peterborough) (Con)]

What recent progress she has made on negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

--- Later in debate ---

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

What recent steps she has taken to ensure that the rights of workers are protected in future trade deals.

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

While the detail of free trade agreements is necessarily sensitive, we have committed in our public mandates to protecting our world-leading labour standards. For example, in our agreement in principle with Australia, a commitment was made to a chapter on labour that will lock in high domestic protections for our workers.

[Kate Osborne]

Colombia remains the deadliest place in the world to be a trade unionist, with 22 union activists murdered in the past year alone, according to the latest global rights index. Does the Minister now regret the agreement of a trade deal with Colombia that is so utterly toothless when it comes to the protection and enforcement of workers’ rights?

[Mr Jayawardena]

The hon. Lady will know that that was originally a deal negotiated by the EU. We provided continuity to businesses in this country and in Colombia to make sure that on our exit from the European Union, businesses could continue to trade. The truth is that some of the most vulnerable people will be affected by some of the knee-jerk policies suggested by the Labour party. In all our trade deals, we will uphold Britain’s high standards for businesses, workers and consumers, and we will continue to meet our obligations under the International Labour Organisation.

[Sir Mark Hendrick [V]]

The Minister has made perfectly clear the Government’s efforts to engage with Australia on the question of workers’ rights in the run-up to the trade agreement. Countries such as Australia and New Zealand already have decent workers’ rights. However, more than half—that is, 14 out of 24—of the countries where the Government are currently negotiating trade deals have very poor track records on labour rights, including Brazil, Malaysia and India. What pressure or influence will the Government bring to bear when negotiating a deal with those countries whose labour standards and rights are extremely poor, so that the trade can benefit UK workers and the workers of our trading partners too?

[Mr Jayawardena]

Again, the question seems to have been asked and answered already. The comprehensive and progressive agreement for trans-Pacific partnership has a comprehensive labour and workers’ rights chapter, and I would have thought that the people of Preston would welcome the fact that the CPTPP offers Britain access to two thirds of the world’s middle classes by 2030.

[Michael Fabricant (Lichfield) (Con)]

What plans she has to enhance the UK’s trade deal with Israel following her recent visit to that country; and if she will make a statement.

--- Later in debate ---

[Andy Carter (Warrington South) (Con)]

What recent progress her Department has made on negotiating a free trade agreement with India.

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

I was delighted to devise the enhanced trade partnership concept last year, and after much work across Government, the Prime Minister agreed the ETP with his counterpart on 4 May. Trade with India has averaged around £20 billion over recent years, and with its population bigger than those of the EU and US combined, the scope for growth is great, so I am looking forward to discussing our future trade deal with my new counterpart very soon.

[Andy Carter]

I warmly welcome the work the Minister is doing to secure a trade agreement with the world’s fastest growing economy. Does he agree that a trade deal with India will open the door for British goods—whisky from Scotland, fine wines from the vineyards of south Wales and handcrafted gin from Warrington, the best in the world?

[Mr Jayawardena]

I am in absolute agreement with my hon. Friend and I must make a visit to Warrington to sample some of this superb gin. India is projected to be the world’s second largest economy by 2037, so the opportunities for British businesses, from financial services to pharmaceuticals, form food and drink to film and music, are huge. This people’s Government are determined to make sure that every corner of our country benefits from international trade, securing growth and creating jobs.

[Stephen Morgan (Portsmouth South) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights into future trade deals.

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

The United Kingdom has long promoted her values globally. Although our approach to agreements will vary between partners, our strong economic relationships not only allow us to have open discussions on a range of issues, including rights and responsibilities, but secure jobs across our country, including in Hampshire.

[Stephen Morgan]

Successive UK Governments have believed in the principle that new trade treaties should contain essential human rights clauses. That makes the whole of the treaty conditional on the commitments relating to human rights. Will the Minister confirm whether that principle remains under his Government or whether it has disappeared, along with the commitment to a 0.7% international aid target?

[Mr Jayawardena]

We promote international objectives, including rights, through a mixture of approaches. On the point the hon. Gentleman made towards the end of his question, there has been much talk about global Britain this week and trade is the route to prosperity, for Britain and her friends around the world. Although others may be content with offering only handouts, we are determined to give our friends a hand up. So having taken back control of our trade policy, I can confirm that we will be looking to go further than the EU and we will be setting out our plans and launching a consultation on this very soon.[Official Report, 19 July 2021, Vol. 699, c. 4MC.]

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

What assessment she has made of the potential effect of tariff-free trade of agricultural goods between the UK and Australia on UK farmers and crofters.

--- Later in debate ---

[Christian Wakeford (Bury South) (Con) [V]]

Mr Speaker, I am delighted to be joining you from the 7th global forum for combating antisemitism here in Israel. With that in mind, as a newly independent sovereign trading nation, we have a number of trading opportunitieseb;normal;j ahead of us, including with countries such as Israel, with which we already have a £5 billion continuity trade relationship. Can my right hon. Friend the Secretary of State confirm what progress has been made on an advanced high-tech free trade agreement with Israel, and what help can she offer the likes of the Northern Health Science Alliance in conjunction with Israel?

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

The Secretary of State had a successful visit to Israel herself in the last week of June, and she had productive discussions with her Israeli counterpart, focused on ambitions for upgrading our current trade relationship. As my hon. Friend suggests, I am very keen personally to strengthen our £5 billion trade relationship even further, and I look forward to taking these discussions forward to create further opportunities for British businesses in tech and beyond.

[Mary Kelly Foy (City of Durham) (Lab) [V]]

Following the recent investor-state dispute settlement challenge from Canadian fossil fuel company TC Energy to President Biden’s cancellation of the Keystone tar sands pipeline, seeking an unprecedented $15 billion, what responses has the Secretary of State received on the issue of ISDS in the recent consultation on UK-Canada trading arrangements, and will she commit to dropping ISDS in the UK-Canada trade deal?

--- Later in debate ---

[Mr Jayawardena]

My Department continues to defend the interests of British industries in all parts of the United Kingdom. The Secretary of State is currently in the United States building on the historic arrangement that we secured in the Airbus-Boeing dispute, ensuring that the British aerospace sector can take off again after covid-19. Confidence in our fantastic aerospace manufacturing capability has never been at such heights. The United Airlines order of 70 A321neo aircraft last month will feature wonderful Welsh-made wings, and I look forward to further success in the future.

[Edward Timpson (Eddisbury) (Con)]

Does my hon. Friend agree that the Government’s ambitious strategy for growing exports needs to include more agricultural councils in our embassies, a UK export council to help co-ordinate that strategy, and better promotion and marketing of brand Britain abroad so that we can ensure that farming and food companies in Eddisbury and right across the country can embrace the undoubted benefits and opportunities that UK free trade deals can deliver?