Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 2nd December 2021 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

2. How many free trade agreements her Department is negotiating.

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

For the first time in 50 years, we are an independent trading nation, able to strike deals around the world. We have already secured trade deals with 70 countries, plus the EU, covering trade worth £766 billion last year, and we are just getting started. We have secured an agreement-in-principle with Australia and New Zealand, and we continue to work on a deal with the US. We are preparing for negotiations with India, Canada, and Mexico, and we have also launched a public consultation on a deal with the Gulf Cooperation Council. As we have heard from the Secretary of State, we are due to begin work early next year on an enhanced and improved free trade agreement with Israel.

[Mr Hollobone]

Warner’s Distillery, based in the village of Harrington in the Kettering constituency is the largest independent craft-based gin distillery in the country, and it is seeking to export even more of its wonderful product. Is it not the case that businesses that export are more profitable, productive and resilient, and is it not exciting for businesses such as Warner’s Distillery, and other businesses in Kettering, that more free trade agreements are coming down the track?

[Mr Jayawardena]

I completely agree with my hon. Friend. Across north Northamptonshire, businesses such as Warner’s Distillery are exporting some £1.5 billion of goods around the world, as measured in 2019. I am confident that the trade deals we are signing globally will benefit more businesses just like Warner’s, to create opportunities and support jobs in my hon. Friend’s corner of the country, and beyond.

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

The Minister will know that the ratio between damage from Brexit and the trade deals is substantial. Indeed, in terms of pounds, there is £490 of Brexit damage for a £1 gain from the New Zealand deal, £2 gain from Australia, £8 gain from the comprehensive and progressive agreement for trans-Pacific partnership, and £20 gain from America, if that comes together. If all that happens, it comes to about £31. Where will the Minister find the £459 of Brexit damage that the trade deals cannot make up?

[Mr Jayawardena]

We are working for every corner of our United Kingdom, backing British businesses. We are supporting Scottish jobs as much as those in England, Wales and Northern Ireland, at a time when the SNP wants to cut itself off from its largest market, the British internal market. The truth is that the SNP is anti-trade. Not only does it want to cut itself off from the United Kingdom, but it does not back any trade deal with anyone.

[Anthony Mangnall (Totnes) (Con)]

The point and purpose of trade deals—I hope the Minister will agree—is that they are not static, and the forecasts are just an indication of what will come; they will be able to grow and develop. Can the Minister reassure the House that the comprehensive and progressive agreement for trans-Pacific partnership offers an opportunity for the UK to expand its businesses and its exports across the country?

[Mr Jayawardena]

My hon. Friend is of course right; the TPP offers a great opportunity to access a fast-growing part of the world as part of our Indo-Pacific tilt, as detailed in our integrated review. The opportunity to engage with this part of the world, where there is a growing middle class and increased demand for our products, goods and services, is one that we should seize.

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

Free trade negotiations with the US are vital to lifting Donald Trump’s tariffs on British steel and aluminium exports, which in turn are crucial to protecting jobs and businesses in communities across our country. Given that the US has already agreed to lift tariffs on many EU steel products, if we are to get a level playing field for our firms and our workers, might it not be time for Lord Frost to be given a little help to stop bungling discussions with the EU so that this vital US-UK trade deal can be sorted?

[Mr Jayawardena]

We will always stand up for the British national interest, and that includes with the European Union. We will make sure that our United Kingdom remains strong and can trade with the world. The truth is that America’s unjustified tariffs on UK steel, aluminium and derivatives are unfair and unnecessary as those imports do not harm US national security, so we will continue to make representations to back British businesses.

[James Wild (North West Norfolk) (Con)]

3. What steps her Department is taking to increase British exports.

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[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

4. What recent assessment her Department has made of the impact of labour shortages on UK (a) export and (b) import levels.

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

As the global economy has rebounded from the pandemic, we have seen pressures placed on supply chains across sectors and across the world. It is this Government who have taken quick and decisive action across the United Kingdom to ease those pressures where immediate interventions have been required. The Minister is redefining “quick and decisive”. An Aviva study indicates that more than seven out of 10 businesses are worried about skills shortages and 25% of businesses said their biggest risk is the uncertainty caused by Brexit. The temporary visa scheme for poultry workers has now closed and only nine people applied to join the Government scheme designed to boost the number of fuel tanker drivers, out of an intended 300. Given the failure of those schemes, why will the Government not consider devolving immigration powers, which could deliver the stronger labour market they profess to want but in reality are actively frustrating?

[Mr Jayawardena]

I am afraid that SNP Members have not woken up to the reality of the opportunities that we now have to trade around the world as part of being an independent trading nation. The hon. Gentleman refers to tanker drivers. Some 5,000 visas have been made available for HGV drivers for a three-month period to provide short-term relief. We have gone further. The long-term sustainable solution is to support and develop our domestic workforce, and to improve the pay and conditions in the sector. That is why the Government are working to correct the structural problems in the haulage industry. We are increasing testing availability by 50,000 a year. We are streamlining the process for efficiency and we are committing £17 million in free skills boot camps for HGV drivers.

[Bill Esterson (Sefton Central) (Lab)]

The problem that the Minister has is that the shortage of HGV drivers in the UK is happening now. It is already causing huge disruption and we are all anxious to ensure that the situation does not get worse in the run-up to Christmas. Will the Minister tell us how many of the 5,000 temporary worker visas that the Government made available to overseas lorry drivers in September have been allocated?

[Mr Jayawardena]

We are not going to provide a running commentary on numbers, but what I can tell the hon. Gentleman is that this is not a problem faced only by the United Kingdom. He is so keen always to talk about our friends across the channel, so he will know that France has a shortage of 40,000 drivers, Germany has a shortage of 60,000 drivers, and Poland has a shortage of 120,000 drivers.

[Bill Esterson]

I find it extraordinary that the Minister was unable to tell us how many visas have been allocated to overseas HGV drivers. We were told in October that it was just 20; I wonder what the figure is now. The reality is that the Wine and Spirit Trade Association warns of “delivery chaos”, of

“major delays on wine and spirit delivery times”

up to five times longer than last year and increases in freight costs—no doubt that will not affect parties in Downing Street. Does he want to be responsible for cancelling Christmas celebrations elsewhere, because if not, he needs to give a much better answer than the one he just gave?

[Mr Jayawardena]

Perhaps the hon. Gentleman has not realised that this is not Transport questions, but International Trade questions—I am sure that his new shadow ministerial colleagues will raise questions with Transport Ministers in due course. We continue to see businesses thriving, including in the wine and spirit industry, as my hon. Friend the Member for Kettering (Mr Hollobone) pointed out.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Eight out of 10 businesses in Scotland say that they need to recruit staff, yet three quarters are reporting skills shortages. Businesses cannot export what they can neither make nor supply, yet the Government’s already tired 12-point plan, which has been mentioned this morning, has nothing to cover workforce shortages or dealing with them. Will the Minister explain why?

[Mr Jayawardena]

Again, this is International Trade questions, but I am happy to provide an answer on behalf of the Government. We are putting significant resources into training people up to develop our domestic workforce. My understanding is that many people are very keen to find a new job potentially in a new industry. This Government will help them to do that.

[Drew Hendry]

Clearly, the Government are keen to duck all these issues relating to trade. The Federation of Small Businesses reported to a Committee in this Parliament that a fifth of its members have ceased trading with the UK’s biggest export market—the EU—either temporarily or permanently due to bureaucracy or costs, yet the 12-point plan contains nothing to deal with that issue. The Government’s priorities are clearly elsewhere. Tory cronies are queuing up for a Christmas come early to get contracts and big donors are fairly leaping into the Lords. Why are backbone businesses being short-changed and served only a thin gruel?

[Mr Jayawardena]

I know that the hon. Gentleman’s Twitter followers will be happy with that statement. The truth is that we have secured trade deals with 70 countries around the world, and the EU. The EU deal is the best deal that it has ever secured with anyone. A zero-tariff, zero-quota deal has been done with no one bar the United Kingdom, and we look forward to trading with not only them, but new markets, as I have outlined.

[Munira Wilson (Twickenham) (LD)]

6. What recent discussions she has had with UK trade partners on inserting clauses on (a) animal welfare and (b) environmental standards into future trade deals.

[Mr Speaker]

I call Mr Jayawardena.

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

Oh, that question is for me as well—thank you, Mr Speaker. I am delighted with the interest from Opposition Members in trade matters.

Her Majesty’s Government share the British public’s high regard for animal welfare and environmental standards. We have agreed ground-breaking animal welfare provisions with Australia and New Zealand, including stand-alone chapters reflecting the importance of animal welfare in those agreements. We have secured ambitious environmental chapters that preserve our right to regulate to meet net zero, affirm our shared commitment to the Paris agreement and will help us to co-operate on a range of environmental issues.

[Munira Wilson]

My residents in Twickenham are deeply concerned about both the ethics and the quality of the food that they eat, and they have written to me in their hundreds about protecting standards in future trade deals. They also want to protect British farmers, yet farmers across the country, from Cumbria to Shropshire to Cornwall, are being let down by trade deals that threaten to undercut them. If the Minister truly backs British farming and high food standards, why will he not give a cast-iron guarantee to protect them in future trade deals?

[Mr Jayawardena]

I am sorry that the hon. Lady has clearly not been at previous Trade questions. Britain has secured agreement in principle on free trade agreements with Australia and New Zealand, following deals with the European economic area and Japan that will maintain Britain’s high levels of environmental protection and facilitate trade in goods and services for those farmers.

[Nick Fletcher (Don Valley) (Con)]

7. What steps her Department is taking to encourage foreign investment in South Yorkshire.

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

I refer the hon. Members to the reply that I gave a few moments ago.

[Gill Furniss]

The Minister claims that environmental protection is a priority in trade negotiations, but that simply does not resonate with the Department’s actions. In the Government’s desperation for a trade deal with Australia, they agreed to water down limited reference to climate change. Australia’s current commitments are consistent with 4° of global warming, far off the international 1.5° target. How is that at all consistent with the Government’s moral commitment to fight the climate emergency?

[Mr Jayawardena]

I am pleased to reassure the hon. Lady that the environment chapter will break new ground for the United Kingdom. Our agreement in principle includes real commitments to work together more closely on a whole host of areas. The truth is that we are leading the world in the area; we were the first country in the world to legislate for net zero, and we will continue in our endeavours to protect our environment for our children and grandchildren.

[Kate Osamor]

We cannot claim to have reached genuine net zero as a country, or even to have a plan to do so, until we take into account the impact of our imports on global carbon emissions. Will the Department for International Trade therefore agree to consider the evidence gathered by the Environmental Audit Committee in its inquiry into carbon border taxes? Better still, will the Department initiate an inquiry of its own?

[Mr Jayawardena]

Her Majesty’s Government welcome input from all parliamentary Committees of this House and will always look closely at all recommendations made, but I would highlight examples of how we are actually delivering on the agenda. We are working with countries such as Brazil and others to support how we reduce the impact of agriculture on the environment, through building new dialogues with agricultural producers and consumers through COP26 and beyond. We aim to support those collaborative actions and ultimately to reduce the impact of agriculture on carbon-rich ecosystems such as rainforests. This is an important area and we will continue to work very hard on it.

[Mike Wood (Dudley South) (Con)]

The UK-Australia agreement in principle marked the first time that Australia had ever agreed to a specific reference to the Paris agreement in a free trade agreement. Does my hon. Friend agree that trade is an effective way of encouraging other countries to bring their environmental protection standards up to the high levels of our own?

[Mr Jayawardena]

I commend my hon. Friend for his research. He is absolutely right: this is an important part of our wider diplomacy. Economic diplomacy is crucial to making sure that we spread British values around the world, including protections for the environment. As economies develop, they will of course want to seek the technologies that we have in this country to decarbonise and improve the quality of life for their people, too.

[Mr Speaker]

I welcome Nick Thomas-Symonds to his new position on the Front Bench.

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

Thank you, Mr Speaker. I am also grateful to the Secretary of State for her welcome. I look forward to our debates on the crucial importance of trade to our national economy and, indeed, to promoting our values around the world.

The objective of the New Zealand-led international agreement on climate change, trade and sustainability is to break down global barriers to trade in green goods and services and eliminate the subsidies that are propping up fossil fuel producers. The Secretary of State announced last week that the UK would not be taking part in this crucial initiative. Can the Minister explain why?

[Mr Jayawardena]

I, too, welcome the right hon. Gentleman to his place. He is right—the United Kingdom is not currently considering joining the negotiations on that agreement—but we will continue to work with partners to establish how such plurilateral initiatives can help to support discussions at the World Trade Organisation. We will also continue to work closely with our partners on wider trade and environment matters, both through bilateral dialogue and through multilateral forums. That is how we believe we can secure the best results for not only the British people but the world.

[Nick Thomas-Symonds]

The Government have not made an inch of progress on green trade in any of the bilateral trade agreements signed since 2019, so why should we put faith in that now? The Board of Trade itself has said:

“There are two main ways that trade can accelerate the green transition: liberalising green trade; and reducing market distortions”.

Does the Minister accept that that is exactly what the New Zealand agreement does, and if so, does he not think that now is the time to show global leadership and not to stay on the sidelines?

[Mr Jayawardena]

We are absolutely committed to ensuring that the environment receives the full attention of Her Majesty’s Government, but we will also seek to end other environmentally wasteful practices that arise from other state actors, such as the subsidising of the illegal, unreported and unregulated fishing sectors that exist in some countries, and we will press for the successful conclusion of the fisheries subsidies negotiation. That demonstrates that we are working across a number of areas, not just the one to which the right hon. Gentleman has referred.

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

10. What recent assessment she has made of trends in the level of UK trade with the EU.

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

T3. National Farmers Union Scotland says the Australian trade deal is“a slow journey to the Australians getting unfettered access to UK markets and with no guarantees that the promises of other safeguards will address the fact that very different production systems are permitted in Australia”.When was the last time the Department involved officials from the Scottish Government and Scottish farming representatives in the negotiation of future free trade deals?

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

We engage with officials from the Scottish Government, the Welsh Government and the Northern Ireland Government all the time, and we look forward to continuing that.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T4. I was recently fortunate enough to visit the DP World London Gateway container port in my constituency to hear about its exciting plans—its commitment to the construction of a fourth berth, and its ambition to become the largest container port in the UK and to use the opportunities that freeport status brings. Will the Minister update the House on what the Department is doing to support freeports and promote UK exporters?

[Mr Jayawardena]

Freeports will be national hubs for trade and investment. They will regenerate communities, attract new businesses, and create jobs and opportunities across our country. As they move towards implementation, my Department is working closely with each freeport, including London Gateway, to help pull new investment in and to support exporters to seize the advantages that freeports will bring them.

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

T5. Last weekend, we saw the release of the Xinjiang papers, highlighting how human rights atrocities go right to the heart of the Chinese Government. As a result, I want to ask what steps is the Minister taking to review our trading relationship with China, because it cannot be business as usual?

[Mr Jayawardena]

China remains, of course, an important trading partner for Britain, but we have no plans to negotiate a trade deal with China. We will build trade only where it supports British businesses and jobs. We will seek to reduce barriers to accessing the Chinese market, but I can assure the hon. Lady that our approach to China will always be rooted in British values and British interests. We want a positive and constructive relationship with China, but I can assure her that we will not sacrifice our values in doing this.

[Peter Aldous (Waveney) (Con)]

T6. With the exponential growth in offshore wind, including off the East Anglian coast, where 50% of the UK’s wind farms are located, world-class knowledge and skills have developed and the UK is now a global leader. Will my right hon. Friend outline the steps that are taken in negotiating trade deals to both promote this expertise abroad and attract inward investment into the UK offshore wind sector?

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[James Daly (Bury North) (Con)]

Will my right hon. Friend update the House on what steps are being taken to establish a free trade agreement with our historical ally Pakistan, and specifically to encourage trade between our country and the Kashmir region?

[Mr Jayawardena]

I am grateful to my hon. Friend for his consistent interest in this area, and I value the conversations we have had on this matter. In the four quarters to Q2 this year, we have had £2.6 billion-worth of trade with Pakistan, and I am pleased to confirm to him that we already offer Pakistan the enhanced framework in the generalised scheme of preferences, which ensures that it has more generous access to the British market than others do today. He will also know, and the House will want to be aware, that between July and September this year we ran a consultation on our proposed new developing countries trading scheme. This is a statement of our intent: the British Government want to take a more ambitious, more generous, more pro-growth approach to trading with developing nations. Our new scheme will mean more opportunities and less bureaucracy—

[Mr Speaker]

Come on. I call Alistair Carmichael.

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[Madam Deputy Speaker (Dame Eleanor Laing)]

I call Peter Grant—[Interruption.] I call the Minister first.

[Mr Jayawardena]

I commend my right hon. Friend for his endeavours in making sure that Scotch whisky can be enjoyed by more people more reasonably all around the world. Britain wants a deal that slashes barriers to doing business and trading with India’s £2 trillion economy and its 1.4 billion-strong population, and Scotch whisky is at the top of our agenda.

[Madam Deputy Speaker]

And now we come to Peter Grant.

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[Mike Wood (Dudley South) (Con)]

Big landmark trade agreements such as those with Japan, New Zealand and Australia make the headlines, but the excellent work that my right hon. Friend the Secretary of State is doing to remove trade barriers around the world also creates big new opportunities for businesses in my constituency of Dudley South. What progress is being made on the work to remove the trade barriers that restrict the flow of British goods and services?

[Mr Jayawardena]

Every year, we break down barriers across the world, and this year there has been a 20% increase in the number of barriers that we have broken down, benefiting businesses across the whole of our United Kingdom—in England, Scotland, Wales and Northern Ireland. We look forward to continuing this work to generate more jobs for people across our country in the years ahead.