Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 16th June 2022 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

15. What recent discussions she has had with her Indian counterpart on increasing (a) trade with and (b) foreign direct investment from India.

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

Mr Speaker, I should also like to associate myself with your comments about our colleague Jo Cox.

Our trading relationship with India was worth over £24 billion last year, and we are already India’s top investment destination in Europe. We have had many discussions and remain determined to create more good jobs and boost wages across Britain. Together, we are bulldozing trade barriers and—from Scotch whisky to Welsh lamb and medical devices—I think we all know that a trade deal will take our relationship even further.

[Felicity Buchan]

My constituency of Kensington has strong links with India. We have the oldest gurdwara in the whole of Europe, the Khalsa Jatha, and we also have the residency of the Indian high commission. Indeed, on Sunday I will be with the Indian high commissioner in Holland Park launching International Yoga Day. Everyone is welcome to attend. [Laughter.] Can my hon. Friend explain to the House how a trade agreement with India can benefit the whole of the UK?

[Mr Jayawardena]

I may not be sufficiently flexible to attend and to join the high commissioner on International Yoga Day, but it is wonderful to hear of my hon. Friend’s collaboration.

Following the Prime Minister’s visit to India in April, British and Indian businesses have confirmed more than £1 billion of new investment and export deals in areas from software engineering to health, and this has created almost 11,000 jobs across the country, including in Edinburgh, Leeds, Northumberland and York. This illustrates how investment and a trade deal will continue to bolster our levelling-up agenda to the benefit of the whole of the United Kingdom.

[Andrew Bridgen]

Does the Minister agree that British business should look more towards India than China for future trade relationships given its democratic structure and our historical ties, and what steps are the Government taking to encourage and facilitate that?

[Mr Jayawardena]

The world’s oldest democracy and the world’s biggest are certainly natural partners, and this, alongside our historical ties and thoroughly modern relationship with one of the fastest growing economies in the world, makes India a clear priority trading partner for the United Kingdom. Through the integrated review, we are pursuing deeper engagement with India and other partners across the Indo-Pacific, and I am very keen to continue our work to support those who do so much to champion Anglo-Indian relations.

[Jim Shannon (Strangford) (DUP)]

Mr Speaker, may I associate myself with your comments about Jo Cox? It is hard to believe that it is six years, but while she was cruelly taken from us and from her family, she very clearly lives on with her legacy, and we remember that.

I thank the Minister for his response. We understand that there are clear contacts between ourselves and India culturally, economically and historically. At the same time, can the Minister outline what steps are being taken to ensure compliance with human rights, which is an essential component of any trade deal, as a priority? Human rights must be central to any deal.

[Mr Jayawardena]

I know that the hon. Gentleman is a great champion of religious freedom in particular, and the Government’s international obligations and commitments, including on freedoms, are always of paramount importance when it comes to making our decisions. We encourage all states to uphold their obligations, and we condemn any incidences of discrimination because of religion or belief, regardless of the country or faith involved. We do engage with India on a range of issues, as global Britain does carry the torch of freedom forward.

[Mr Speaker]

I call the shadow Minister.

[Dame Nia Griffith (Llanelli) (Lab)]

We very much welcome the prospect of increased trading opportunities with India, a country with which we have many historical ties. At the COP26 summit in Glasgow last year, Prime Minister Modi announced demanding commitments to reduce emissions. After the Government’s shocking sell-out on the Australia deal, what preparation is the Minister making to use a possible trade deal to support Modi’s ambitions and to act on recommendations from the CBI about how our trade policy can support our climate goals, such as by including incentives to meet or surpass emissions reduction targets in a trade agreement?

[Mr Jayawardena]

I am not going to comment on live negotiations. Indeed, we were delighted to welcome the Indian negotiators to London this week for a further round of discussions. We have been very clear that we want trade to be a force for good in the world, including green trade, which we believe can create thousands if not millions of jobs across Britain and indeed the world, and I am sure that the Indian Government would agree.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

3. What steps her Department is taking to increase trade with Commonwealth countries.

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

4. What discussions she has had with Cabinet colleagues on the impact of trade with China on surveillance technology.

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

China remains a significant trading partner for the United Kingdom, and there is scope for mutually beneficial trade and investment. In 2021, China was Britain’s third largest trading partner, but our approach to China is, and will remain, rooted in our values. As set out in the integrated review, we want a positive trade and investment relationship with China, but we will make sure that Britain’s national security, and the values of the British people, are protected.

[Rachael Maskell]

The EU Parliament, Australian Government, and the US recognise the dangers of Chinese state owned surveillance cameras, and are introducing sanctions against Hikvision, and others, due to the national security considerations, and the facilitation of human rights atrocities in Xinjiang. The UK Government have not ceased trade in those products, and are placing them in UK schools, hospitals, on our streets, and even in Government Departments. Does the Minister agree that the UK should immediately cease trading in security equipment with China, and funding those companies implicated in genocide?

[Mr Jayawardena]

We remain seriously concerned about allegations levied against Chinese surveillance firms with regard to Xinjiang, and we take the security of our citizens, systems and establishments very seriously. We have a range of measures in place to scrutinise the integrity of our arrangements. In addition, the Procurement Bill will further strengthen the ability of public sector bodies to disqualify suppliers from bidding for contracts where there is a history of misconduct. We have already set out a number of measures to help ensure that no British organisations are profiting from or contributing to the violations of rights.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

5. What recent assessment her Department has made of the progress of the UK-India Free Trade Agreement.

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

As I said a moment ago, talks with India continue to be positive, and on Monday we welcomed Indian officials to London for the fourth round of negotiations. An FTA offers the opportunity to deepen our already strong relationship, which was worth over £24 billion last year. We are determined to grow that, creating jobs in every corner of the country, including in whisky distilleries across Scotland, on which 150% of tariffs and taxes must currently be paid in India.

[Martin Docherty-Hughes]

The Republic of India has a respected independent legal system, and that will form part of the basis of the FTA between the UK and India. The Secretary of State will be aware of my constituent, Jagtar Singh Johal. What importance do the Minister and the Government place on a well-functioning legal system that respects human rights and the dignity of the individual when progressing free trade negotiations with states such as the Republic of India?

[Mr Jayawardena]

I thank the hon. Gentleman for what he says, and he has raised this issue with me in the past. Her Majesty’s Government are committed to working with the Government of India to resolve longstanding and complex consular cases such as this. The Foreign Secretary met the hon. Gentleman and the family of his constituent on 9 June, and she committed to continuing to raise those concerns with the Indian authorities. Our strong ties with India benefit British prosperity and security, and vice versa, but we are clear that increased trade need not come at the expense of our values.

[Harriett Baldwin (West Worcestershire) (Con)]

6. What steps her Department is taking to help UK exports reach Ukraine.

[Tom Randall (Gedling) (Con)]

14. What steps her Department is taking to help UK exports reach Ukraine.

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

Since 22 February, the Export Support Service has supported over 400 businesses and individuals wishing to export to Ukraine. To support British businesses, the Department for International Trade has expanded its Export Support Service to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia. The Department will continue to support business and traders during this period. Having a dedicated export support team ready to help at the end of the phone will help businesses to access the information they need at any time. Indeed, the Department runs Britain’s system of export controls and licensing. The export control joint unit is expediting urgent export licence applications for Ukraine.

[Harriett Baldwin]

The British Group of the Inter-Parliamentary Union is honoured to be hosting a delegation of Ukrainian MPs to Parliament today; I will share that information with them. For Ukraine, the big issue in exports is getting grain out of the blockaded port of Odesa. What conversations is the Minister having with the World Trade Organisation to stop the illegal blockade?

[Mr Jayawardena]

My hon. Friend raises an important point. Indeed, until Russia’s invasion in February, Ukraine was one of the largest exporters of grains and vegetable oils. Britain has developed a six-point plan for tackling food insecurity. We continue to work with international partners, including at the WTO, to find ways to resume grain exports from Ukraine to the countries who desperately need them, particularly in the developing world. The outcome that we want is to keep trade flowing and to keep prices down.

[Mark Fletcher]

Will the Minister update the House on how liberalising tariffs on Ukraine has supported the flow of trade and, in turn, on how effective our sanctions have been against Russia?

[Mr Jayawardena]

On 10 May, Britain laid legislation to liberalise all tariffs on imports of Ukrainian origin. Those measures have reduced barriers faced by Ukrainian businesses and consumers in their time of need, making it easier to obtain essential goods and aid from Britain. In lockstep with our allies, we are introducing the largest and most severe economic sanctions that Russia has ever faced, with, for example, up to 60% of Russian foreign currency reserves currently frozen. Analysis shows that, as a result, Russia is heading for its deepest recession since the collapse of the Soviet Union.

[Tom Randall]

We have all seen on television the widespread devastation in Ukraine caused by Russia, so we know that its path to reconstruction will be a long one. What steps are the Government taking in planning and support of future rebuilding efforts in Ukraine?

[Mr Jayawardena]

The United Kingdom is exploring how she can support the Ukrainian Government’s reconstruction efforts. There may be opportunities for British businesses to contribute with their skills, technology and ingenuity. To that end, I am delighted that, tomorrow, the Under-Secretary of State for International Trade, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), will host the Ukraine investment summit to bring together British companies who have expertise in reconstruction with Ukrainian decision makers to begin identifying opportunities for collaboration.

[Liz Twist (Blaydon) (Lab)]

7. What assessment she has made of the effectiveness of the Trade Remedies Authority.

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[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

According to Action Aid, the UK’s position on trade and women’s rights has yet to be set out through a clear, comprehensive UK trade strategy. Further to this, Action Aid has also accused the UK Government of taking a quick delivery approach to securing free trade agreements. In the SNP, however, we have committed to adopting a feminist foreign policy in an independent Scotland, and this work is being undertaken. In their current and future trade deal negotiations, will the UK Government commit to conducting gender-specific impact assessments of its free trade deals, not just economic impact assessments? Will the Department commission an independent statutory body to conduct these gender-just impact assessments?

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

I am delighted to be able to confirm that Britain is committed to creating a global trade policy that ensures that women have the same opportunities from trade as men, and that women worldwide can benefit from trade as a route to prosperity. That reflects a core element of this Government’s modernising trade agenda. We recognise that women face varied and disproportionate barriers to trade in some areas, and that they are underrepresented among entrepreneurs and businesses that export, and we will continue to do more to ensure that everyone benefits from global trade.

[Sally-Ann Hart (Hastings and Rye) (Con)]

T5. My constituents in beautiful Hastings and Rye are concerned about the environment and climate change, but they are also aware that our local businesses need to expand their trade exports across the globe to benefit from post-Brexit freedoms. What steps is my hon. Friend taking to tackle climate change through trade policy?

--- Later in debate ---

[Mr Jayawardena]

I am delighted that my hon. Friend raises this issue because, of course, our trade and partnership agreement was originally signed as one of the first continuity agreements back in 2019, but the Prime Minister announced last year that we would begin talks with Israel on an enhanced and improved UK-Israel free trade agreement. We have had a consultation, and I look forward to taking that work forward to boost our trade and investment relationship and to make sure the further ambitions of both nations are secured.

[Wera Hobhouse (Bath) (LD)]

T7. Since Brexit, many UK companies have stopped exporting to the EU altogether, whatever the Minister is trying to sell us. The situation has become even worse for many of my small businesses in Bath since the closure of the SME Brexit support fund. Will the Government consider introducing a new version of that fund?

--- Later in debate ---

[Mr Jayawardena]

I am delighted that my hon. Friend has raised the great opportunity there is with the Gulf Co-operation Council. The bloc is made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates and is a major trading partner of Britain, with something like £23 billion-worth of trade. We closed our public consultation some time ago and are raring to go on negotiations on an FTA with the GCC very soon.

[Jim Shannon (Strangford) (DUP)]

Will the Minister outline what steps have been taken to solidify our technological partnership with Israel, in the light of the tremendous advances that come from that nation, and the potential that home tech companies have to expand if we can build relationships more effectively?

[Mr Jayawardena]

Israel is one of the middle east’s most dynamic and innovative economies and there is a great opportunity in tech in particular. It is not only a bilateral opportunity but a multilateral or plurilateral opportunity: I was recently in Brazil, which is interested in a three-way partnership between Brazil, the United Kingdom and Israel.