Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 3rd September 2020 Commons Chamber

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

What steps her Department is taking to facilitate trade with the Indian subcontinent.

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

My Department continues to promote increased trade with the subcontinent. My right hon. Friend the Secretary of State and I recently took part in the 14th annual UK-India JETCO—Joint Economic Trade Committee—during which we set a more ambitious trajectory for an enhanced trade partnership. Through our independent trade preferences scheme, we are strengthening our trading relationships with Sri Lanka and Bangladesh too, but our stronger trade ties are already delivering advantages for British businesses. I hope my hon. Friend will excuse a reference from across the Pennines, as I am pleased to announce today that Britain can now export polyhalite to India—it is an organic fertiliser mined in Yorkshire.

[Mark Logan]

I welcome the Minister to the Dispatch Box for his first questions, on his birthday—congratulations. Bolton-born company Vernacare has big international demand for its infection control products used in hospitals. However, such companies face inflated import duties when trading. Exporting to India is proving cost- prohibitive for some businesses, so does he agree that through increasing co-operation with India we will be able to explore the reduction of import duties and thus bear a bountiful boost for businesses in Bolton?

[Mr Jayawardena]

My hon. Friend is right to say that we can go much further, and increasing bilateral trade and investment with India will benefit both Indian and British businesses, and, of course, our peoples. Here at home this work will support businesses located in every corner of the country, including Vernacare, in his constituency. It is just one example of a company that my Department has worked with to achieve significant success in India already, including agreeing a five-year supply deal with Manipal, one of Asia’s largest healthcare management groups

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

Although the growth in trade, particularly in services, with India is good news, the UK’s trade in goods with India increased by just 5% in the past five years, while the rest of the G7 all saw double-digit growth, with the US and France seeing increases of almost 40%. There is not a UK trade envoy with India, and the Select Committee thinks that visa restrictions are holding Britain back. Why does the Minister think other G7 countries are doing so much better on trade in goods with India?

[Mr Jayawardena]

I am delighted that the hon. Gentleman has joined the party in welcoming the fact that we will take back control of our trade policy. We will now have the chance to shape our relationship with India, which we have not had in the past. This Government have already delivered value to British businesses worth £250 million a year, based on industry’s own estimates, through unlocking exports of spirits, oats, pigs for breeding, poultry and lamb to India.

[Felicity Buchan (Kensington) (Con)]

What steps her Department is taking to help international trade recover from the covid-19 pandemic.

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

My hon. Friend makes an important point. Covid has threatened global trade and exacerbated protectionism. Our ambitious free trade agreements—with the United States, Japan, New Zealand and Australia—will not only help Britain bounce back by boosting trade but secure greater choice for consumers here by opening up and liberalising international markets. For example, increasing transatlantic trade could add £3.4 billion to the British economy; and the value of our exports to our friends down under could increase by around £1 billion through the deals we are striving for.

[Felicity Buchan]

We have seen increasing trade tensions over the course of the last year. Does my hon. Friend agree that we need to avoid an escalation of trade tensions?

[Mr Jayawardena]

My hon. Friend is right. There are no winners in a trade war. We will continue to shine as a beacon for free trade in the world, illuminating and toppling trade barriers through free trade agreements, boosting British influence at the G7, the G20 and the World Trade Organisation, and keeping free and fair trade at the heart of all that we do.

[Daniel Zeichner (Cambridge) (Lab)]

One of our great trade and export success stories in the tech sector is Cambridge-based Arm, the tech giant that designs the chip that goes into almost every mobile phone in the world. During the covid crisis, it has been subject to the threat of sale to an aggressive American manufacturer. What is the Government’s response? What discussions is the Minister having with colleagues to ensure that this jewel in our tech crown is not dismembered?

[Mr Jayawardena]

Arm is a very successful business, and I have regular conversations with colleagues in a number of Departments. The most important thing is that we ensure the environment in the UK is one in which all sorts of businesses want to work and, of course, that we preserve our national security.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

What recent steps she has taken to reduce tariffs on UK exports.

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[Marco Longhi (Dudley North) (Con)]

What assessment she has made of the potential merits of free trade agreements with countries other than the US, Japan, Australia and New Zealand.

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

For the first time in almost 50 years, we are able to determine our own trade policy, and there is much interest in the potential of a free trade agreement with Britain from our partners around the globe. We will weigh up a multitude of considerations and we will be looking closely at the progress we make on market access improvements in the months ahead.

While we remain open to taking forward negotiations with a number of global partners, we have already had productive discussions on how to enhance our trading relationship with the Government of India, as I detailed earlier, with the Gulf Co-operation Council, and with the Southern Common Market, known as Mercosur.

[Marco Longhi]

Having lived and worked in South America for five years, I am aware of the huge untapped potential that countries on that continent can offer, particularly for our high-tech manufacturing bases in Dudley and in the Black Country, as my hon. Friend the Member for West Bromwich West (Shaun Bailey) mentioned. Will my hon. Friend update the House on any discussions to open up these markets and opportunities offered by a post-Brexit Britain?

[Mr Jayawardena]

My hon. Friend is absolutely right to raise the untapped potential of South American markets. Britain used to do more in this part of the world, so my Department is working to reignite those trading relationships through regular ministerial discussions, including with Brazil, to open up opportunities for trade. We have already secured a number of free trade agreements to ensure continuity of access for British businesses, and we are interested in further opportunities to deepen these relationships in the region, including through Mercosur.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

What steps her Department is taking to help the food and farming sector recover from the covid-19 pandemic.

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[Simon Jupp (East Devon) (Con)]

Recently, I welcomed the Minister to East Devon to visit a dairy farm to discuss the opportunities ahead to export a wide variety of world-renowned produce from my home county. What reassurances can my hon. Friend give our farmers in Devon that their produce will be promoted and protected by this Government?

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

They say it never rains in East Devon when in the company of my hon. Friend, which was certainly true on my great visit to his constituency. We met a huge number of great businesses and landowners who look after our countryside and curate it for the next generation. We will never sign a trade deal that compromises Britain’s high environmental protections or animal welfare and food safety standards. Indeed, I assure my hon. Friend that we will continue to promote our excellent British produce overseas through agriculture, food and drink bounce-back plans.

[Afzal Khan (Manchester, Gorton) (Lab) [V]]

As we speak, Palestinian communities remain at risk of forcible transfer as a result of Israeli annexation. The UK prohibited all trade from Crimea after Russia’s illegal occupation and annexation in 2014, and we should follow that precedent when it comes to illegal settlements. Has the International Trade Secretary had discussions with her Israeli counterpart over the illegal annexation, and will she reconsider UK trade deals with settlement territories?

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[Mrs Flick Drummond (Meon Valley) (Con)]

I start by expressing my sadness and sympathies over the death of India’s former President, Pranab Mukherjee, earlier this week. India is the world’s second largest importer of arms, but although the UK has a superb defence and security industry, including companies such as Domo Tactical Communications in my constituency, India is not one of our major markets. What more can be done to export to, and strengthen defence ties with, the largest of our Commonwealth allies?

[Mr Jayawardena]

I am sure the whole House will join my hon. Friend in sending sympathies. We are ramping up defence engagement. We supported Britain’s largest ever delegation to the Indian defence expo in February this year, including 160 British business leaders. India increasingly prefers to contract defence and security deals via Government-to-Government frameworks, so we are leading that cross-government work to enable British businesses to do more in the future.

[Tony Lloyd (Rochdale) (Lab)]

Environmental protections do work in bilateral trade agreements, but they work best when the process is genuinely internationalised. Will Ministers tell the House and the country what steps are being taken in the preparations for COP26 to make sure that international trade with strong environmental protections is a major item, to ensure that we can save the planet?

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[Navendu Mishra (Stockport) (Lab)]

Front Line Defenders published a report in 2019 that detailed the firings, torture and trials in military courts of trade unionists and workers who organised strikes in Egypt. Will the Minister assure us that the Government will not sign a trade deal with the Egyptian Government unless they agree to respect the right to form unions and the right to take industrial action?

[Mr Jayawardena]

We will seek to provide continuity of trade with as many countries as possible through our continuity trade programme. We are always mindful of the trading partners we work with and we respect the rights and responsibilities that are intrinsic to British values in all that we do.

[Ian Byrne (Liverpool, West Derby) (Lab)]

The Government have either reached free trade agreements or are in active negotiations with 15 of the 40 countries that the International Trade Union Confederation has identified as in the bottom category worldwide for their respect of workers’ rights. Will the Minister tell us in how many of those trade agreements the Government have secured or are seeking to secure clauses designed to protect workers’ rights?

[Mr Jayawardena]

The details of free trade agreements are reserved for formal negotiations, many of which are ongoing. Her Majesty’s Government have been clear that increased trade does not have to come at the expense of our high labour standards. Britain is an active member of the International Labour Organisation, and we will continue to uphold our world-leading standards and international commitments.

[Rachel Hopkins (Luton South) (Lab)]

I am interested to hear the Minister’s comments, because the rollover agreement that the Government reached with Kosovo last year removed the requirement in the corresponding EU agreement for Kosovo to improve its laws on labour, health, safety at work and equal opportunities for women and men, for persons with disabilities and for persons belonging to minority groups. Can the Minister explain why?

[Mr Jayawardena]

As the Secretary of State and other Ministers have made very clear, what we do in this country remains in domestic law, and our trade deals do not change the fact that we have world-beating standards of labour protection. Indeed, this Government have done great work to combat modern slavery, introduce a national living wage and ban exclusive zero-hours contracts.

[Paul Blomfield (Sheffield Central) (Lab)]

On a point of order, Mr Speaker. Thank you for taking this point of order, because it relates to the questions that we have just heard. In answer to my question on rolling over the deals that we currently enjoy through membership of the European Union, the Under-Secretary of State for International Trade, the hon. Member for Beverley and Holderness (Graham Stuart), said, and I quote, that

“the vast majority of the trade covered by those deals has already been secured,”

and that was repeated by one of his colleagues. It is, however, contradicted by the Department’s own website, which says that 19 deals have been secured worth £84.07 billion last year, but there are 18 deals outstanding worth £84.5 billion—and that does not even include Japan. Will the Minister take this opportunity to correct the record and confirm that the vast majority of trade is not covered by these deals, and in fact they cover slightly less than half?