Oral Answers to Questions
Ranil Jayawardena Excerpts(2 years, 5 months ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
Her Majesty’s Government have been clear that there will be no reduction in British labour protections in signing up to new free trade deals. Our new agreements with Australia and New Zealand demonstrate that. We engage extensively with trade unions to make sure that the interests of workers are fully considered in our policy. My right hon. Friend the Secretary of State has hosted trade unions, including the TUC, at the recent UK-US trade dialogues.
Dame Diana Johnson
With the greatest of respect to the Minister, given the contrasts and contradictions in the Government’s approach around things such as the P&O ferry scandal and the recent events with the rail industry, can he tell us what guarantee he can provide to the House that the Government will not sail down the river the rights of working people in this country?
Mr Jayawardena
I would point to precedent. The United Kingdom has ratified all eight of the fundamental International Labour Organisation conventions. We continue to encourage our partners to do the same around the world. The agreements with Australia and New Zealand, as I said earlier, reaffirm our commitment to comply with the core international labour obligations that we are party to.
Chi Onwurah
When I visited Washington DC with the British-American Parliamentary Group, I was told in no uncertain terms—I know that the Secretary of State had the same message at the Baltimore talks—that there could be no trade agreement with the United States that did not, first, protect workers’ rights and also reflect the workers’ voice. Will the Minister set out the detailed process by which he will ensure that British workers’ voices will shape the prospective deal with the United States and how those voices will be reflected throughout international discussions? I know that the Secretary of State’s predecessor met the American trade union movement. I think it is really important that British workers’ voices are reflected consistently in deals as well.
Mr Jayawardena
I thank the hon. Lady for the question and I can confirm that my right hon. Friend the Secretary of State has met the same bodies. We engage extensively with trade unions to make sure that the interests of workers are fully consulted in our trade policy. We have a trade union advisory group, the TUC is a part of our strategic trade advisory group and, of course, this Conservative side of the House represents the views of hard-working people across the country.
Ruth Cadbury (Brentford and Isleworth) (Lab)
The Government are currently negotiating a free trade agreement with the Gulf Cooperation Council. The majority of the Gulf countries do not meet basic international standards for workers’ rights, such as the right to unionise. Why on earth, therefore, did the Government drop human rights and the rule of law from their stated negotiation objectives?
Mr Jayawardena
We decide on future deals based on the potential benefit to our economy, economic trends and whether we can negotiate a quality agreement supporting the British people and the British national interest. Closer engagement is how we increase our influence around the world and support higher standards, including with countries that might have rights that differ from ours. The United Kingdom will not compromise on our high labour standards, and we will continue to work hard to maintain those standards through our free trade agreement programme.
Jeff Smith (Manchester, Withington) (Lab)
Mrs Emma Lewell-Buck (South Shields) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
We publish more licensing data than any other country. Yesterday, we published our annual report covering 2021. The data reveal that of 4,234 licensing decisions on standard individual export licences, 96.1% were issued, 1.5% were refused and, because of our sanctions on Russia and Belarus, 2.4% were revoked. The Government remain committed to openness on strategic export licensing to provide Parliament with the means to hold us to account.
Jeff Smith
In February, Her Majesty’s Revenue and Customs issued its biggest ever fine of £2.7 million for breach of the arms exports controls. HMRC has refused to publish any details so we do not know who was fined, the name of the company, the military goods exported or where they ended up. How does the Minister expect us to have any faith or confidence in our arms export controls when they are so shrouded in secrecy?
Mr Jayawardena
The hon. Gentleman refers to HMRC which does not fall under my Department, but I will ensure that the relevant Minister provides him with an answer.
Mrs Lewell-Buck
I heard the Minister’s response to my hon. Friend the Member for Manchester, Withington (Jeff Smith), but the reality is that the changes to licensing criteria have reduced transparency and accountability. Can the Minister explain the rationale for changing Government guidance on granting licences from refusing a licence if there is a clear risk that items may be used in violation of international humanitarian law to if the Government determine there is a clear risk?
Mr Jayawardena
As we have left the European Union, we have decided that it is right to review many aspects of our system. This is one part, and we have made the wording of the criteria clearer than before to provide certainty to exporters and others.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
Selaine Saxby (North Devon) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
Removing trade barriers boosts our exports to new and familiar markets around the world. We have resolved 396 barriers around the world in the past two years, and just 45 of the 192 barriers we resolved in the last financial year could be worth around £5 billion to businesses across our country. If we can remove the next 100 trade barriers on our most wanted list, it has the potential to deliver export opportunities for British businesses worth around £20 billion. As one example, last month we removed barriers in Mongolia that prevented the export of British poultry and fish, opening up a market worth £10 million.
Selaine Saxby
Many of my North Devon farmers and the National Farmers Union are concerned about food imports, but given the quality of our British food and drink, and the vast global market for our superior produce, what support has my hon. Friend’s Department put in place to promote and help farmers export around the world?
Mr Jayawardena
My hon. Friend is absolutely right. We see real potential for British food and drink exports to grow, particularly in high-growth markets where the middle classes are expanding—notably the Asia- Pacific region. We work closely with farming and food organisations, such as the NFU, to deliver a practical range of export support for farmers and food businesses. We are removing trade barriers globally, as I have referenced, including the ban on British beef in the Philippines, opening up a market worth £375 million a year to British farmers. We are expanding our overseas network of more than 100 agriculture, food and drink trade advisers to include eight new dedicated attachés, who will focus on unlocking trade barriers for our great British farmers.
Chris Bryant (Rhondda) (Lab)
What a load of bollards the Government are putting in the way of British trade with other parts of the world, and in particular with the European Union. Historically, loads of British orchestras, theatre groups, ballet groups and bands have toured easily across the whole of the European Union, and endless Committees have been told by Ministers that it is all being sorted out. The truth is that they are now prevented from taking that British export across the European Union. When is any one of these Ministers actually going to do something and get it sorted?
Mr Jayawardena
I thank the hon. Gentleman for his question, which he puts in his usual way. The truth is that we continue to bang the drum for British exports of all kinds around the world, and we will continue to do that with the EU and beyond.
Dave Doogan (Angus) (SNP)
Bob Blackman (Harrow East) (Con)
Recently, my right hon. Friend the Secretary of State announced enhanced free trade deal negotiations with our close allies and friends in the state of Israel. Will she set out for the benefit of the House the aims of those negotiations and what the benefits to the UK will be?
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
I thank my hon. Friend for his diligence in championing the opportunities from free trade with Israel and many other countries around the world, including India. As two like-minded partners with expertise in areas such as tech and innovation, we are very confident that we can agree an ambitious deal that will complement both economies and showcase our leading businesses, growing our trade even further than we already have today.
Dean Russell (Watford) (Con)
The volume of the trade deals that we are hearing about is incredibly encouraging and shows the role that the UK has around the world. Will the Minister please update me on the trade deals with the Gulf?
Mr Jayawardena
My hon. Friend is a great champion for businesses throughout his constituency of Watford, and they will want to seize the benefits of new trade deals, including with the Gulf Co-operation Council, a group of six countries that want to trade more with the United Kingdom. The GCC is already equivalent to the fourth largest trading partner with Britain, with total trade worth more than £33 billion last year. We are going to boost the economy even further to create jobs, increase wages and support levelling up throughout our country.
Australia-UK Free Trade Agreement: Scrutiny
Ranil Jayawardena Excerpts(2 years, 5 months ago)
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Anthony Mangnall (Totnes) (Con)
(Urgent Question): To ask the Secretary of State for International Trade if she will make a statement on the Australia-UK free trade agreement and the scrutiny process.
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
I have been asked to reply. Our Anglo-Australian trade deal will play an important role in levelling up the United Kingdom. It is expected to increase trade with Australia by 53%, boost the economy by £2.3 billion and add £900 million to the wages of hard-working households across our country in the long run. Her Majesty’s Government have stated on a number of occasions that the agreement will be ratified only once it has passed its statutory scrutiny period under the Constitutional Reform and Governance Act 2010 and, in addition, the necessary implementing legislation must have passed.
Her Majesty’s Government have made extensive additional scrutiny commitments, which include allowing a reasonable amount of time for the Select Committees to produce reports prior to the statutory scrutiny period under CRaG. We further set out that, for the Australia deal, this would be a period of at least three months. In actual fact, double the amount of time has now been provided: the agreement has been available for scrutiny for over six months. I should also point out that, before starting CRaG, Her Majesty’s Government published two reports to support scrutiny: the independent Trade and Agriculture Commission’s report on 13 April, and the Government’s own report under section 42 of the Agriculture Act 2020 on 6 June. Both reports were provided to the relevant Select Committees prior to publication to support their scrutiny work.
Her Majesty’s Government have now started the CRaG process, following this six-month scrutiny period, which was in addition to the statutory period provided for by CRaG. By the end of the CRaG period on 20 July, the treaty will have been under the scrutiny of this House for over seven months. The House will undoubtedly have benefited from reports from three separate Select Committees—the International Trade Committee, the Environment, Food and Rural Affairs Committee, and the International Agreements Committee in the other place.
In addition, the agreement can only be ratified once Parliament has scrutinised and passed the implementing legislation in the usual way. The agreement requires primary legislation, and the Trade (Australia and New Zealand) Bill is currently before the House of Commons and will have its Second Reading in due course. This legislation will be fully scrutinised and approved by Parliament in the usual way. I should point out that we expect Australia to conclude its parliamentary process before we do. Therefore, any delay to our process slows the deal’s economic benefits from being felt across Britain.
Let me say this to my hon. Friend: he knows that my brief usually covers other markets, but the principles remain the same. In my view, it is important to strike the right balance between the scrutiny of trade deals and bringing them into effect in a timely way so that our consumers and businesses can reap their full rewards. I believe that the balance is right, and that this House and my Department should continue to harness the power of trade to create jobs, boost wages and secure prosperity.
Anthony Mangnall
Thank you, Mr Speaker, for granting this urgent question on the Australia free trade agreement. The UQ is supported by the whole International Trade Committee and the Chair, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), who cannot be with us but is here in the guise of his favourite Scottish export spirit—whisky, of course. The Chair of the Select Committee and I have very different perspectives on the Australia free trade agreement, but despite that we both wholeheartedly believe in the need for scrutiny in this place of that agreement.
This is the first wholly new trade agreement that we have signed since leaving the European Union, but unfortunately it has not had the scrutiny it deserves. On 8 October 2020, the then International Trade Secretary, who is now the Foreign Secretary, said that
“we will have a world-leading scrutiny process, comparable with Canada, Australia, New Zealand and Japan. That will mean the International Trade Committee scrutinising a signed version of the deal and producing a report to Parliament, a debate taking place and then, through the CRaG…process, Parliament can block any trade deal if it is not happy with it.”—[Official Report, 8 October 2020; Vol. 681, c. 1004.]
I ask the Minister whether the Government are still committed to that point of principle. The Minister for Energy, Clean Growth and Climate Change, the Minister for Farming, Fisheries and Food and the Secretary of State for International Trade have made those commitments to right hon. and hon. Members of this House, and we deserve our say on a trade agreement that makes a significant difference. On the Australia free trade agreement, the Government began the 21-day CRaG process before the International Trade Committee had even produced its report and even before the Secretary of State had come before us to defend the agreement in the first place. The Government refused to grant the Committee’s request for 15 sitting days between the publication of the section 42 report and triggering CRaG, thus denying us more scrutiny. As I have already said, the Government have failed to provide a Minister in good time and good order. In relation to the first report the Committee wrote on this, the Secretary of State was asked eight times to come before the Committee to discuss the agreement. She only did so a week and a half ago. The Government have failed to provide a debate and a vote on the agreement, so will the Minister, as the Liaison Committee and many other Members across the House have asked, delay ratification for the further 21 days and allow us to have a proper debate on this issue? Will he ensure that every future free trade agreement is signed and drawn through the CRaG process, as you have suggested, Mr Speaker? Will he ensure that Ministers are made available to discuss trade agreements ahead of time?
We are asking for nothing that we have not been promised at the Dispatch Box. It is time we are given that.
Mr Jayawardena
We have a system that compares very well with other parliamentary systems around the world. We will not be extending the CRaG period, given the extensive scrutiny time that Parliament has had—as I set out earlier, seven months by the end of the period—and we will not be able to offer a debate. The Secretary of State said that she felt the agreement could benefit from a general debate, but that is a matter for business managers in this House. The Labour party was very keen to have another debate yesterday, which took a whole day of parliamentary business from this House.
The section 42 report is there to inform the scrutiny period, not create an additional scrutiny period above and beyond CRaG. We published that report on 6 June. As my hon. Friend says, it was sent to the International Trade Committee, the Environment, Food and Rural Affairs Committee and the International Agreements Committee in the other place on 27 May to ensure they had ample time to consider the report. There is a balance, as I say, between ensuring sufficient time for robust scrutiny and ensuring agreements come into place quickly. I think we have got that balance right.
On CRaG, the Constitutional Reform and Governance Act 2010 was introduced by the Labour party. It gave the opportunity for parliamentary disapproval of treaties statutory effect and it gave the House of Commons the power to block ratification. Members across the House will know the answer to that. I am more than willing to set out the process, but in the interests of time and allowing people to come in I shall sit down for now.
Nick Thomas-Symonds (Torfaen) (Lab)
I am grateful for the granting of today’s urgent question and I congratulate the hon. Member for Totnes (Anthony Mangnall) on securing it.
The Government’s failure to make adequate parliamentary time available for a debate on this trade deal is completely unacceptable and a clear breach of promise. Lord Grimstone wrote in May 2020:
“The Government does not envisage a new FTA proceeding to ratification without a debate first having taken place on it”.
The Select Committee has, rightly, been scathing about the way the Government have handled scrutiny on this issue and about their premature triggering of the 21-day CRaG process without full Select Committee consideration being available to Members. Today’s clear rejection of an extension to the CRaG process is, yet again, unacceptable behaviour from the Government.
The truth is that Ministers are running away from scrutiny. Might Ministers be running away because of the Select Committee’s report stating they lack a “coherent trade strategy”? Or might the Government be hiding from scrutiny because of the chaos at the Department itself? Members do not have to take my word for it. Yesterday, the Secretary of State was saying of her own Minister of State for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), that there has been a
“number of times when she hasn’t been available which would have been useful and other Ministers have picked up the pieces”.
That is her own Minister. Maybe the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena), is one of the Ministers who has been picking up the pieces. Or might Ministers be hiding because of the lack of progress in their trade policy, with no comprehensive trade deal with the US in sight?
There are profound consequences for our agricultural sector from the Australian deal that Ministers should be open about and accountable for. Is it any wonder that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”?
To put it quite simply, when are Ministers going to stop running away from their own failure?
Mr Jayawardena
I think that, actually, we have a very good deal that the Government should be proud of and which will benefit the British people. As I said—perhaps the right hon. Gentleman was not listening—this will increase trade with Australia by 53%, boost our economy by £2.3 billion and add £900 million to household wages in the long run. In fact, £132 million of exports already go from Wales to Australia. We want to boost that even further to benefit the people of Wales and his constituency.
As for what my noble Friend Lord Grimstone said, processes for the other place are a matter for the other place. It is clear that the Labour party is so focused on process that they are not focused on securing the benefits for the British people of Brexit.
Mims Davies (Mid Sussex) (Con)
The Minister recently joined the second SussExport event at Wiston House, which aimed to boost Sussex trade and our global reach. This is a vital first trade deal. Does the Minister believe that its positive delivery will boost crucial further success, including more jobs, meaning that it can deliver on the SussExport objectives?
Mr Jayawardena
My hon. Friend did a great deal to create jobs across the United Kingdom in her previous role and she continues to bang the drum for her constituency. It was a pleasure to visit the SussExport event. I believe that tariff-free trade for all British exports will deliver great benefits for businesses in Sussex, including the Bolney wine estate, which I look forward to visiting with her in due course.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
This deal will punish the food and farming sectors—that is not my conclusion; it comes from the Government’s departmental advice. Those civil servants join the National Farmers Union of Scotland, the National Farmers Union, trade experts and academics. The Prime Minister’s former food tsar has outlined Australia’s
“abysmal record on deforestation, animal welfare and climate”.
The benefits of the deal are pennies compared with the amount that we are losing from not trading as much with our EU neighbours. The Minister is a temp, in place under a lame-duck Prime Minister in a dysfunctional Government. Why is this deal not being brought forward for parliamentary scrutiny, as was promised in this Chamber? Why are the Government flouting their own advice? Why are they happy to sacrifice the food and farming sector? Why would they press ahead with the prospect of job losses, higher food bills and fewer safeguards on food standards? This deal should be halted until we get answers. Scottish households, farmers and businesses deserve better than these acts of wilful harm. They must be given the chance to choose better than this place.
Mr Jayawardena
I see that the hon. Gentleman is in his usual mood, talking about trade in one way in the Chamber and the opportunities of trade outside it. The truth is that £333 million of exports from Scotland go to Australia. We want to boost that in the years ahead, and this deal is the way in which we can do that. He refers to me as a temp, but he might want to look at employment law, because I have been in this role for 26 months. I am very pleased that we have now secured trade agreements with 71 countries around the world, covering trade worth £800 billion. That is how we are delivering for the British people. He talks about Britain’s departure from the European Union. Of course, he wants to depart from the United Kingdom, breaking away from the British internal market, which delivers for the people of Scotland.
Mrs Flick Drummond (Meon Valley) (Con)
What assessment has my hon. Friend made of the impact on agriculture of this deal, with reference to our need to maintain our domestic food production as a strategic sovereign capacity?
Mr Jayawardena
My hon. Friend is rightly thoughtful in this area. Food security remains important. As a result of the challenges faced in the last 26 months because of covid and the war in Ukraine, I have seen this for myself. It is right that we back our farmers. It is really important that we seek new markets in which they can secure greater value for their products, which will encourage them to continue to farm more land more productively. I assure the House that the Trade and Agriculture Commission said that the deal does not require the United Kingdom to change her existing levels of statutory protection in relation to animal or plant life, or health, animal welfare and environmental protections, so there is no threat in that regard.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
I sit on both the International Trade Committee and the Public Administration and Constitutional Affairs Committee. The latter is doing an inquiry into CRaG. We heard clearly from legal experts last week that it is unprecedented for the Government to ratify a treaty before the implementing legislation has been passed. The fact that the Government are trying to ratify the treaty through the CRaG process before that is surely problematic. In addition, the fact that CRaG only allows a treaty to be stopped through a debate and then a vote in this Parliament means that the denial of a debate is the denial of the CRaG process, in the spirit in which it was written. I beg the Minister to reconsider his foolish urgency on this matter, delay CRaG by 21 days—that would not delay the ratification of the treaty, because the implementation legislation is still needed—and give us a debate.
Mr Jayawardena
I do not think that seven months is rushing anything. This agreement can be ratified only once Parliament has scrutinised and passed the implementing legislation in the usual way.
Jack Brereton (Stoke-on-Trent South) (Con)
There are huge opportunities from the Australia trade agreement for the ceramics industry in Stoke-on-Trent. Does my hon. Friend agree that it is vital that we get on with delivering that and delivering the jobs and opportunities for industries in the midlands and the north?
Mr Jayawardena
My hon. Friend has done great work at the Department for International Trade and I am delighted that he has championed the Potteries today. The wider region and the west midlands as a whole make £37 million-worth of exports to Australia. He is absolutely right that this deal, unlocking the benefits of Brexit, will secure new opportunities for businesses across his region and beyond.
Sir Mark Hendrick (Preston) (Lab/Co-op)
In October 2020, the then International Trade Secretary—the current Foreign Secretary—set out the CRaG process for Parliament to have a say in the scrutiny of international treaties. This procedure should allow Parliament 21 sitting days to scrutinise the final text. It is disgraceful that adequate time has not been allocated for proper parliamentary debate in this Chamber and scrutiny of the first trade deal to be negotiated from scratch—the Australia-UK free trade agreement. Is it not the case that the Government are becoming arrogant and no longer feel that they need to be accountable to Parliament for their actions? What sort of precedent does this set for the scrutiny of trade agreements?
Mr Jayawardena
Officials from my Department and the Secretary of State have given evidence to three separate parliamentary Committees on six occasions since the Australia deal was signed in December. There is clearly a lot of scrutiny and this Government are making themselves accountable to the British people through Parliament. The Constitutional Reform and Governance Act allows the Commons to resolve against ratification. He will know that process because it was introduced by the last Labour Government.
Alicia Kearns (Rutland and Melton) (Con)
I congratulate my hon. Friend the Member for Totnes (Anthony Mangnall) on securing this important urgent question. The Minister knows that I have enormous respect for him—he is one of the most diligent and effective Ministers—and there is much to commend in this deal, but many of us made a great number of reassurances to our farmers and food producers that there would be a debate on the Floor of the House following promises that were made at the Government Dispatch Box. What am I meant to say to farmers across Rutland, Melton, the Vale and Harborough villages when they ask why I was not given the chance to have my say in a debate on this important trade deal?
Mr Jayawardena
My hon. Friend champions food production, including the opportunities for pork pies to be exported around the world. I look forward to making sure that the tariff-free arrangements from this deal deliver for farmers in her constituency and beyond. I know that my right hon. Friend the Minister for Trade Policy also believes that this is really important—as the Minister responsible for this deal—and the Secretary of State has long talked about the opportunity, as has the Foreign Secretary, for food production across the United Kingdom in seeking new eaters around the world.
Sarah Green (Chesham and Amersham) (LD)
It is not too late: the Minister can extend the period for parliamentary consideration by another 21 days, and I call on him to do just that. UK farmers are facing ongoing labour shortages and rising costs on farms. These problems have been exacerbated by the cost of living crisis, and this deal will open our doors to imported food while doing nothing to support farmers in the UK. What protections have been put in place to ensure that imported food meets the high animal welfare standards in the UK?
Mr Jayawardena
The first part of the hon. Lady’s question has been asked and answered, and the Trade and Agriculture Commission has answered the second part, on statutory protections. As I said earlier, the TAC says:
“The FTA does not require the UK to change its existing levels of statutory protection in relation to animal or plant life or health, animal welfare and environmental protection.”
It goes on to say—I am sure the hon. Lady has read this, but perhaps, given the time that has passed in the scrutiny of the deal, she has forgotten it—that the FTA
“goes beyond WTO rights and obligations”
in some instances, including the requirement for
“the UK and Australia to aim for high standards of protection in their environmental and animal welfare laws”.
Paul Bristow (Peterborough) (Con)
I chair the all-party parliamentary group on CANZUK, a campaign group that presses for closer relations between Canada, Australia, New Zealand and the UK. I welcome this free trade agreement with Australia and want it to be in place as soon as possible. At the same time, we want a trade deal with New Zealand and accession to the comprehensive and progressive agreement for trans-Pacific partnership, and hopefully we will see something big and bold with Canada soon. However, does the Minister recognise that this is just the start for us, and will he commit himself to a multilateral trade agreement between all four CANZUK countries as soon as possible?
Mr Jayawardena
I congratulate my hon. Friend on his work in support of bringing the CANZUK nations closer together. He is right that this is just the beginning. Not only have we secured trade deals with 71 countries around the world plus the EU, covering trade worth £800 billion, but we are now applying for accession to the CPTPP, which includes Australia, New Zealand and Canada, to deepen our trade ties even further. In his region, the east of England, there are already £498 million-worth of exports to Australia and £81 million-worth of exports to New Zealand. With his championing of business in Peterborough, I am sure those will increase even further.
Tony Lloyd (Rochdale) (Lab)
The Minister is deliberately choosing to miss the point of the urgent question. However much he grins at the Dispatch Box, it will not alter that fact. This is not about whether the deal is good or bad; it is about the fact that this is the first trade deal to come before the House, and about whether scrutiny has been delivered in an acceptable way. As you know, Mr Speaker, the scrutiny belongs to the whole of this House of Commons, not simply to a Select Committee. The Minister must explain how we will get that scrutiny, because he is not doing it in a UQ.
Mr Jayawardena
I am very happy to set out the process of the Constitutional Reform and Governance Act, introduced by the last Labour Government. For the first time, it gave statutory effect to the opportunity for parliamentary disapproval of treaties, and the process is—
Mr Jayawardena
I am very happy to set out the process, Mr Speaker, if you allow me the time. There are four points. First, the Government may not ratify the treaty for 21 sitting days—days when both Houses are sitting—after it was laid before Parliament. Secondly, if within those 21 sitting days either House resolves that the treaty should not be ratified by agreeing a motion on the Floor of the House, the Government must lay before Parliament a statement setting out their reasons for nevertheless wanting to ratify. Thirdly, if the Commons resolved against ratification, regardless of whether the Lords did or did not, a further period of 21 sitting days is triggered from when the Government’s statement is laid. During that period, the Government cannot ratify the treaty. Fourthly, if the Commons again resolves against ratification during that period, the process is repeated. That can continue indefinitely, in effect giving the Commons the power to block ratification. Of course, that is what the Opposition want—to block the opportunities of Brexit from this trade deal.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
The first thing that leaps out from the stats on the website of the Australian Department of Foreign Affairs and Trade is the export of 159 billion Australian dollars-worth of goods and services each year to communist China. The integrated review of 2021 stated that China posed a “systemic challenge” to UK interests, yet here we are attempting to sign a free trade deal with—I will be blunt, Mr Speaker—a state that has been enabling communist China to build capacity, clamp down on dissent and tighten its grip on Hong Kong with exports of raw materials for its economic needs. Can we assume that the Secretary of State will be ignoring the findings of his own Government in the integrated review and supporting China’s application to join the CPTPP alongside the UK and Australia, as he mentioned at the Dispatch Box only a moment ago?
Mr Jayawardena
I welcome that question, actually. The challenges—[Interruption.] Opposition Members heckle, but the challenges posed by those who do not play by the rules are challenges we should face head on. We are not currently a member of the CPTPP, otherwise known as the trans-Pacific partnership—the TPP—so it is not within our gift to support or block anyone from joining it, but what is clear is that we are first in the queue, we are looking forward to joining it, and we believe that like-minded nations who play by the rules should trade more with one another.
Hilary Benn (Leeds Central) (Lab)
The Government made a promise to the House that there would be a debate, and the Government have broken that promise. That sets a very bad precedent, precisely because this is the first trade deal that was not rolling over a deal we had previously. Although the Minister has rejected a debate for the scrutiny of this agreement, can he give the House a commitment today that for any subsequent trade deals, there will be a debate on the Floor of the House?
Mr Jayawardena
I think the balance that we have is right. We have already been clear that we—[Interruption.] They ask the questions but they do not want to hear the answers. We have been clear that we would seek to accommodate a request for a debate if one were made by the Committee, subject to parliamentary time being available. The Secretary of State reinforced that before the International Trade Committee on 6 July—the right hon. Gentleman is right to talk about what we have said—saying that she felt the agreement could benefit from “general debate”. However, the business managers have not been able to schedule a general debate before the CRaG period ends on 20 July.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Minister seems to think we should all just calm down about standards, but the text of the deal does not set out crucial conditionality or equivalence on imports based on animal welfare standards used in production. The absence of such equivalence language means that products produced to lower standards will enter the UK market. That is a fact, not spin, so I will ask again: what support do the UK Government intend to offer our farmers and food producers so that they can fairly compete?
Mr Jayawardena
That question has been asked and answered, but I will answer it again. The Trade and Agriculture Commission has set out that this deal
“does not require the UK to change its existing levels of statutory protection in relation to animal or plant life or health, animal welfare and environmental protection.”
I hope that provides the hon. Lady and her farmers with reassurance.
Clive Efford (Eltham) (Lab)
I congratulate the hon. Member for Totnes (Anthony Mangnall) and the other members of the International Trade Committee on standing up for this Parliament. The way the Government are behaving is a disgrace. The Minister knows that there is widespread concern about the lowering of standards in this trade deal, particularly around the use of antibiotics on livestock and harmful pesticides. That is one of the key reasons why it is right that this House should have the opportunity to debate what is in the trade deal. Will the Minister give an undertaking that we will be able properly to scrutinise it and other trade deals in the future?
Mr Jayawardena
Asked and answered, Mr Speaker, but the truth is that the deal removes tariffs on all British exports to Australia, which will make us more competitive and able to sell iconic products such as cars, Scotch whisky and fashion to Australia more easily. Flexible rules of origin will also mean that British businesses can use some imported parts and ingredients and still qualify for nil tariffs when exporting to Australia. The Committee and the House have had the opportunity to scrutinise that for seven months.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I remind the House of my entry in the Register of Members’ Financial Interests.
I congratulate the hon. Member for Totnes (Anthony Mangnall) not just on securing the urgent question, but on the vigour with which he prosecuted it. What the Minister has told us today is not what we were promised by way of scrutiny, and it is not adequate, especially since we now know that the current Foreign Secretary, when she was Secretary of State for International Trade, was warned that this deal would be bad for British farmers and food producers. Will the Minister take back to Government business managers the message that the House needs to be given the debate and vote that we were promised, and that in order to inform the debate, all the advice that was given to the then International Trade Secretary and her successor is required to be published?
Mr Jayawardena
Again, that question has already been asked and answered, but I will provide the House with a little additional information. This deal—and I am sure that the House has looked at it over the past six months, which will be seven months by the end of the CRaG process—goes further than Australia has ever gone in giving services companies access to the Australian market, which means that firms from architecture to law to financial services to shipping will be able to compete in the Australian market on a guaranteed equal footing. That is great news for every part of our United Kingdom, and I am sure that the House has looked at it over the past six months—seven months by the end of the process.
Bill Esterson (Sefton Central) (Lab)
Promises were made during the passage of two trade Bills, and those promises—for a debate on the Floor of the House before ratification—have been repeated ever since by Ministers. The Minister knows only too well that scrutiny after ratification is no scrutiny at all, so why have the Government not used the seven months that he keeps talking about to bring a debate to the Floor of the House, and why are they so against scrutiny of an agreement with such profound consequences for farming, food production and animal welfare?
Mr Jayawardena
I am afraid I disagree with the premise of the hon. Gentleman’s question. We are not against scrutiny, and indeed we have been open to scrutiny for six months—seven months by the end of the process. I would ask the hon. Gentleman why Scottish National party Members are so against this trade agreement, which secures a benefit of Brexit for people of our country.
Stephen Flynn (Aberdeen South) (SNP)
Is it the lowering of food standards, is it a couple of pence off a bottle of wine, or is it perhaps a colossal 0.08% of GDP growth that should most excite the people of Scotland about the fact that we left the European Union in order to sign this trade deal?
Mr Jayawardena
Once again, SNP Members demonstrate that they are anti-trade. I do not think they have ever supported a trade deal in the House, but they will correct me if I am wrong. These are the figures that should excite the people of Scotland, and indeed the people of our whole United Kingdom, given that the UK internal market is Scotland’s biggest trading partner. This deal will increase trade with Australia by 53%, boost the economy by £2.3 billion, and put £900 million into the pockets of people across the United Kingdom.
Derek Twigg (Halton) (Lab)
We have heard criticism today not just from the Opposition Benches but from the Government Benches—and I say to the hon. Member for Totnes (Anthony Mangnall) that in my years in this House I have heard few such forensic and detailed assessments of the way in which the Government are ignoring the importance of scrutiny and democracy. The Minister, and the Government, did promise that there would be scrutiny by the House—that was made very clear—so may I ask the Minister why he thinks it is a good idea for the House not to scrutinise and debate this trade agreement before the Government ratify it?
Mr Jayawardena
This House, and the Committees of this House and indeed the other place, have already had six months to scrutinise the agreement, and they will have had seven months by the end of the period.
Dave Doogan (Angus) (SNP)
This deal was signed in December 2021, and Parliament has never had an opportunity to scrutinise it properly and vote on it prior to ratification. The Secretary of State for International Trade has bottled it twice at the Select Committee, and she has clearly bottled it today, which is why the Minister is here: he has already admitted that this is not his brief. What is it that the Government do not get? Why are they opening up Scottish farmers to a country that is 30 times larger than the United Kingdom? Although the Trade and Agriculture Commission has said that we do not have to review our standards, it is not our standards we are worried about; it is Australian standards.
Mr Jayawardena
I am not sure that that question really made sense, but let me try and draw some points from what the hon. Gentleman said. The truth is that the Government gave a commitment that the CRaG process would be followed. As I made clear earlier, the Government said that we would seek to accommodate a request for a debate, but that that was subject to the availability of parliamentary time. If the hon. Gentleman wants to read other words into what was said, that is up to him, but that is what the record shows.
Helen Morgan (North Shropshire) (LD)
When l have spoken to farmers in my constituency, they have said that they are very concerned about the deal. They have used phrases such as “sold out” and “bargained away”. They want us to come here and represent their views, because they feel that this deal sets a precedent for all the future trade deals that will come along. It is important for us to have the opportunity to reflect their concerns in this place, and I ask the Minister to reconsider.
Mr Jayawardena
I am delighted to represent some great farmers as well, in North East Hampshire. Across the United Kingdom, our famers need to have the opportunities to export to the world. For instance, some meats are twice the price in Asia as they are in Europe. The ability of our farmers to access these new markets through CPTPP, of which Australia is a core member, is a great opportunity, which we should be seizing.
Paul Girvan (South Antrim) (DUP)
We have not had an opportunity to discuss this deal in detail with the Minister, either in Committee or on the Floor of the House, and there are many other deals on the table. Will this be the form for the future, or will we be addressing the matter after today?
Mr Jayawardena
The Constitutional Reform and Governance Act 2010 is the statutory footing on which treaties are looked at and ratified and provides for a scrutiny period. To ensure that the House has the opportunity to look at future deals, we have made additional offers, as the House has had on this occasion. My right hon. Friend the Secretary of State for International Trade appeared before the International Trade Committee recently, and she and the Committee were able to follow up these questions and others. My right hon. Friend the Leader of the House also wrote to the Committee on 18 July to confirm that there would not be a debate before the summer recess owing to intense pressure on the parliamentary timetable.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Minister laughed when Brexit was mentioned earlier, but it is no laughing matter for the Scottish seafood sector, which has been hammered by Brexit, and it is no laughing matter for farmers who have no access to labour to pick the fruit and veg in their fields. The Government’s own impact assessment on this free trade agreement shows that the British agriculture, forestry and fishing sector will lose £94 million a year and the food processing sector will lose £225 million a year. Given how important Scotland is to the overall UK food and drink sector, when will we see the publication of an impact assessment that shows the actual impact in Scotland of that hit of more than £300 million a year?
Mr Jayawardena
I sometimes fear that some Opposition Members have a permanent sense of humour failure. The facts about the deal are these. It will deliver the benefits of trade to people, businesses and communities in every corner of our United Kingdom: this is how we level up the country. As I have explained, it is expected to increase trade with Australia and put money into people’s pockets, including the pockets of people in Scotland. It means that 100% of tariffs on British exports have been eliminated—and that includes Scottish businesses, which now have guaranteed access to the Australian market, and indeed the ability, across industry, to bid for public sector contracts worth about £10 billion. This is a great opportunity for businesses across Scotland and our whole United Kingdom; and let me just remind the hon. Gentleman that we have secured the best deal that the European Union has ever secured with anyone—a zero-quota, zero-tariff deal.
Richard Foord (Tiverton and Honiton) (LD)
Jilly Greed farms near where I live in Devon. She is a co-founder of Ladies in Beef, and this is what she wrote about the trade deal:
“This is like Christmas all over for Australia. There are currently 3,700 tonnes of product coming in from Australia. The agreement will increase it to 45 times that in 15 years.”
Are the Government afraid that the true extent of the damage to west country farmers from this trade deal would be laid bare by full parliamentary scrutiny?
Mr Jayawardena
I welcome the hon. Gentleman to this place, even though I perhaps disagree with some of his principles. None the less, I hope that I will convert him to the cause, because of the opportunities that lie ahead for farmers in the west country and beyond. The truth is that this deal secures new opportunities for those farmers to export to the world. It is part of a plan, as my hon. Friend the Member for Peterborough (Paul Bristow) mentioned, that secures access to the CPTPP, and that involves the new trade deals that we are negotiating right now in the Gulf, which the NFU has welcomed, and India.
Martyn Day (Linlithgow and East Falkirk) (SNP)
I just dinnae like this deal, on top of which it sets a dangerous precedent for our future trade deals with nations such as India, Mexico and Canada, where we will be dealing with far more sensitive products such as eggs, pork and chicken meat. Why is the Minister pressing ahead with it without the promised scrutiny?
Mr Speaker
Right. We now come to the next urgent question, from Dame Diana Johnson.
Oral Answers to Questions
Ranil Jayawardena Excerpts(2 years, 6 months ago)
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Andrew Bridgen (North West Leicestershire) (Con)
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.
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)
Rachael Maskell (York Central) (Lab/Co-op)
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)
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)
Tom Randall (Gedling) (Con)
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)
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)
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)
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.
Oral Answers to Questions
Ranil Jayawardena Excerpts(2 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
First, I thank my hon. Friend for her efforts in boosting our nation’s trade with Norway and Iceland as the Prime Minister’s trade envoy.
Last year, on behalf of the Prime Minister, we delivered the global investment summit, which saw almost £10 billion of foreign investment into our offshore wind, hydrogen and electric vehicle sectors. Meanwhile, the Office for Investment landed almost £18 billion of further green deals, and just last month the Prime Minister met Australian investors, who committed more than £20 billion to clean energy projects across the kingdom.
Felicity Buchan
I am proud that the UK is a leader in the G7 in the transition to net zero. I am the trade envoy to Norway and Iceland, where there are huge opportunities to do more to further that transition to net zero. Will my hon. Friend update the House on the discussions we have had specifically with companies in Norway and Iceland?
Mr Speaker
Can I just say to the Minister that he has his fan club up there in the Public Gallery? It is a pleasure to see his family watching him.
Mr Jayawardena
Thank you, Mr Speaker. They were delighted when you waved at them last time.
The United Kingdom is committed to deepening her partnership with Norway and Iceland, which was reinforced by the trade deal that I signed in July last year. It is one of our greenest deals ever and preserves our right to regulate to reach our net zero targets. Twin-tracking alongside that free trade agreement, we continue to collaborate on the development of green technologies such as the North sea link interconnector, which links the electricity systems of the United Kingdom and Norway and will increase the capacity of our renewable markets.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The recent ScotWind announcement from the Scottish Government cements Scotland’s place as the world leader for floating offshore wind energy. It represents an incredible opportunity for unparalleled levels of inward investment while also taking meaningful action on climate change. Will the Minister join me in congratulating the SNP Scottish Government on making Scotland a global leader in offshore wind energy? Will he pledge to do all in his power to support this fantastic international trade and transition opportunity?
Mr Jayawardena
I am not sure about wind power, but there is already a lot of hot air in the House. I am delighted that the SNP now supports the British energy security strategy, which champions the power of offshore wind energy. I am also delighted that foreign investors are already responding to the United Kingdom Government’s proposals, including in the form of a sovereign investment partnership with the United Arab Emirates, which is investing £10 billion, including funds for energy transition.
Drew Hendry
I will forgive the Minister for showing off to his family, but this is an important issue. A net exporter of energy, Scotland has 25% of Europe’s offshore wind potential and is perfectly placed to step in to help Europe to pivot away from dependency on Russian oil and gas and towards renewable energy. Indeed, it is estimated that up to 30 GW could be available to export through ScotWind and INTOG—the innovation and targeted oil and gas process—and on top of that a manufacturing superhub at Nigg and Cromarty firth could export components throughout Europe, thereby reversing the historical position across the UK of importing technology, and so boosting trade. Specifically, will the Minister commit his Government to working with the Scottish Government to maximise this massive transition and international trade opportunity?
Mr Jayawardena
I am delighted to say that next week the Secretary of State will be in Aberdeen, demonstrating this Government’s commitment to the whole of the United Kingdom. We work with devolved Administrations across the kingdom to make sure that every corner of the country benefits from international trade. The truth is that while we are batting for every corner of the country, backing British businesses and supporting Scottish jobs, the SNP wants to cut Scotland off from its largest market, which is the British internal market.
Martin Vickers (Cleethorpes) (Con)
Foreign investment in our green industries is extremely beneficial and welcome, as my Cleethorpes constituency can bear out. Equally, British-based companies have great opportunities to export our expertise in the green sector. What initiatives is the Department taking to develop those opportunities?
Mr Jayawardena
I always welcome my hon. Friend’s support for our agenda. The Department has already launched interventions to support international investment into all corners of the country. Those interventions include the high potential opportunities programme and the trade and investment hubs. The hub in Darlington assists more than 1,000 foreign direct investment projects throughout the country which will drive the technology forward.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Ben Everitt (Milton Keynes North) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
Bulldozing trade barriers enables countless British businesses to export goods and services around the world with greater ease and at lower cost. We resolved more than 200 barriers in the year ending April 2021—a 20% increase on the previous year. From securing British access to Japan’s poultry market, estimated by industry to be worth up to £13 million per year, and lifting the decades-long ban on British lamb exports to the US, estimated to be worth £37 million over five years, to cutting costs in services trade, an export of £304 billion in 2021, by up to 7% annually, we are getting on with the job.
Ben Everitt
Getting on with the job indeed. Breaking down barriers to trade and providing businesses with the right tools and support to reach global markets is exactly what we should be doing. I welcome the Department’s regional trade advisers and the role they play in supporting companies such as Carlton Packaging in Milton Keynes. To build on that support, will my hon. Friend work with me to bring together business in Milton Keynes, the Department and those regional trade advisers to support those business opportunities now that we have left the European Union?
Mr Jayawardena
I am very pleased to know that businesses in my hon. Friend’s constituency, including Carlton Packaging, are receiving support from this Department. Milton Keynes has not only exports worth over £3.4 billion, but a great champion of our trade deals in him. I shall be delighted to work with him to help businesses to use those deals to create jobs and boost wages while lowering prices for consumers.
Bell Ribeiro-Addy (Streatham) (Lab)
Robert Largan (High Peak) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
I am thrilled that our two Prime Ministers have agreed to negotiate an ambitious free trade agreement, with exciting new provisions in digital, data, technology, services and innovation. We have completed our consultation and are analysing the responses now, with a view to launching formal negotiations, along with others, later this year.
Robert Largan
I refer Members to my entry in the Register of Members’ Financial Interests.
I welcome the Government’s commitment to negotiating a trade deal with our great friend and ally Israel, which will be of huge benefit to lots of businesses in High Peak and across the country. May I urge the Minister to go further and ensure that any deal does not just include products but looks at services, which make up around 70% of both the UK and Israel’s economies? It is an area in which we are both world leaders, and there would be much mutual benefit.
Mr Jayawardena
Absolutely. My hon. Friend correctly points out that our two economies have strong service sectors but our current deal predominantly caters for trade in goods. That is why we intend to negotiate a more ambitious, comprehensive and innovation-friendly trade deal, which will open up opportunities for British businesses in areas such as tech, data and digital. My hon. Friend will be aware that next month we are hosting the first ever joint innovation and investment summit between our two countries. That will be a key moment as we deepen our relationship, creating opportunities to increase trade and investment between our nations, create new jobs and boost wages.
Peter Aldous (Waveney) (Con)
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
It is always a pleasure to meet the hon. Lady. I am happy to confirm that we are committed to bulldozing trade barriers. I am pleased that Chile has been able to approve British pork producers exporting into a market that is worth over £200 million as part of our total trade in goods and services of £26.5 billion. There is more to do; I am happy to meet her.
Andy Carter (Warrington South) (Con)
Mr Jayawardena
The six GCC nations form together one of our largest trading partners, with total trade standing at over £31 billion in the four quarters to September last year. In January, we completed a public consultation in support of a trade deal with the GCC that gets the best deal for British businesses and consumers. We aim to start those negotiations with others later this year. In the meantime, we are driving forward investment, including £1 billion from the Kingdom of Saudi Arabia supporting sustainable aviation in Teesside, and, as I referred to earlier, £10 billion from the United Arab Emirates in a sovereign investment partnership.
Grahame Morris (Easington) (Lab)
Ruth Edwards (Rushcliffe) (Con)
Mr Jayawardena
We are driving unprecedented investment in green industries, with the British energy security strategy announcing further cuts to the red tape that hampers growth in some of these sectors. My noble Friend Lord Grimstone is leading our new Office for Investment, and I am delighted that our friends across the Gulf are as keen as we are to back innovation in this area. For instance, £100 million has flowed in from Qatar to support small modular reactors and net zero technology.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Secretary of State for Environment, Food and Rural Affairs in 2019—now the Secretary of State for Levelling Up, Housing and Communities—insisted to the public that food and welfare standards would be maintained under UK trade deals struck after Brexit. Indeed, the Prime Minister has said so frequently, but the Minister for Brexit Opportunities and Government Efficiency is reported as saying yesterday that he wants to see food regulations slashed. Who is right?
Mr Jayawardena
We have always been crystal clear that our food safety, animal welfare and environmental standards are not for sale.
Sir Robert Syms (Poole) (Con)
Can we have an update on our joining the trans-Pacific partnership? That is important not only because of the growing markets, but because of the international challenges, stability and defence in the region.
India-UK Trade Negotiations
Ranil Jayawardena Excerpts(2 years, 10 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
It is a pleasure to serve under your chairmanship, Mr Davies. I thank my hon. Friend the Member for Harrow East (Bob Blackman) for raising this important topic and for sharing his passionate belief in the importance of closer ties between Britain and India. I also thank Members from across the House for their broad support for the notion of a trade agreement with India. Although we do not have much time left, I shall do what I can to cover as much as possible.
The Government fundamentally believe in the power of free trade and free markets as unrivalled forces for good in the world, which is why we are pulling out all the stops to champion this great cause globally. We are using free trade around the world to forge new bonds of prosperity with nations worldwide, unlocking fresh growth for businesses of all kinds and sizes based across our United Kingdom. We are positioning Britain at the heart of a rapidly changing global trading system, in which the greatest opportunities lie in emerging markets and the fast-growing economies of the east, and the free trade deals that we are signing with our partners are key to that endeavour.
As has been mentioned, we have already signed deals with 70 countries plus the EU, covering trade worth £772 billion in 2020, and there is more to come. We have already gone above and beyond existing EU agreements with some of the world’s most advanced economies, such as Japan, and we have secured new deals with Australia and New Zealand, but we are just getting started.
To witness the fantastic potential of the global Britain that we are building, we need look no further than the deal that we are discussing today: the free trade agreement that we are negotiating with India. This deal promises to be a game changer for our economic partnership with the world’s largest democracy, opening the door for British businesses to a vast and fast-diversifying market of almost 1.4 billion people—larger than the population of the EU and US combined. The deal is bringing us closer to an economic superpower that, despite covid, was worth more than £2 trillion in 2020 and is on course to become the world’s third largest domestic market by 2050. As the world’s spending power shifts eastward, giving global Britain a greater stake in the Indo-Pacific is crucial, because it is a part of the world that represents over 40% of global GDP and contains the growth of tomorrow.
As has already been said, Britain and India share a trade partnership that was worth almost £24 billion in 2019—energised, as my hon. Friend the Member for Harrow East says, by the living bridge of people and ideas that flow between our nations. We already share close business ties, including nearly half a million jobs across our economies, according to the Confederation of British Industry. Our financial markets are interconnected, with 35 Indian companies listed on the London stock exchange, and our firms partner one another in driving change across a range of fields, from finance to manufacturing, and from tech to transport.
There are innovative businesses such as the Indian firm Intas Pharmaceuticals, which has its headquarters in the constituency of the hon. Member for Harrow West (Gareth Thomas) and near that of my hon. Friend the Member for Harrow East. There are many other such businesses across London, but we know that our nations could and should be doing far more together. That is why we want to strengthen the partnership with India further and faster, building on the bedrock of shared values, common law, institutions and, as the hon. Member for Ealing, Southall (Mr Sharma) said, cricket.
Martin Docherty-Hughes
What do shared values mean, when a UK citizen born in this country—a full UK citizen with a full UK passport—can be arbitrarily detained by an ally?
Mr Jayawardena
I will address the points made by the hon. Gentleman and, indeed, by the hon. Member for Strangford (Jim Shannon) in a moment, but I want to make some progress on trade, which we are also here to discuss.
As part of the road map signed by both Prime Ministers last year, we have set the ambition of doubling our trade with India by 2030, as has been said. That provides a clear framework for our bilateral relationship in future. As part of the road map, we committed to deepening the economic relationship through an enhanced trade partnership, an ETP.
I was delighted to play a role in driving forward that partnership, which is already helping to increase opportunities for British businesses in India by tackling market access barriers, for example, allowing our apples to be imported into India once again—some say, for the first time in 50 years. The partnership has also secured improved access for British medical devices, as noted by Members; committed us to agreeing on mutual recognition of educational qualifications, as requested by the Labour Front Bencher, the hon. Member for Harrow West; and is exploring how we can increase our trade and co-operation in legal services, as raised by the SNP Front Bencher, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry).
Major restrictions such as high tariffs, however, still hold us back, so a free trade deal between Britain and India holds the key to unlocking our enormous untapped trading potential. An ambitious deal could bring huge economic benefits, boosting Britain’s GDP by up to £6 billion by 2035 and delivering a triple bonus of higher wages, lower prices and greater choice for British consumers. We could slash taxes on British exports, such as whisky, whether from Scotland, Northern Ireland, Wales or even England—
Mr Jayawardena
I will make some progress. Whisky and cars, from across our nation, face import duties of 150% and 125%, respectively, in the Indian market. A trade deal could give British businesses a first-mover advantage over American and European firms in India, positioning our exporters—as said by my hon. Friend the Member for Wyre Forest (Mark Garnier)—at the front of the queue to meet the expanding demand for world-class goods and services from India’s tens of millions of middle-class consumers.
Increasing trade-led growth could benefit Scotland by up to £220 million, Wales by more than £120 million and Northern Ireland by £70 million, while delivering tens of millions pounds-worth of growth across every English county, including counties in the west midlands, where a deal could bring a boost of up to £300 million, providing fresh opportunities for firms that do business with India, such as Aceleron Energy in Worcestershire and Fortress Security in Wolverhampton. Opening the door to further trade-led growth for firms in the south-east could see a boost to their collective economy of about £430 million in the long run. Such companies include manufacturer He-Man Dual Controls based in Hampshire—not in my constituency—and Larchfield Aerospace in Kent.
The trade deal has the potential to benefit SMEs, which account for 80% of British trade in goods to India in 2020. Smaller firms are disproportionately hindered by costly trade barriers and, as a result, they stand to benefit the most from a deal that cuts red tape and reduces administrative burdens.
Any agreement will be a future-facing deal, expanding the business we do with India in cutting-edge sectors that are shaping the global economy, pushing the boundaries of technological change from fintech to clean tech, automation and AI. As the world’s second-largest services exporter, Britain is perfectly placed to support Indian growth in those fields, taking our partnership in the industries to the next level.
None of that will alter this Government’s commitment to uphold British values. I said that I would address this point: we condemn any instances of discrimination of religion or belief, regardless of the country or faith involved. Where we have concerns, we raise them directly with the Government of a particular country, including the Government of India, at official and ministerial levels. That continues to be so in the case referred to by the hon. Member for West Dunbartonshire (Martin Docherty-Hughes), which the Foreign Office has raised more than 70 times—
Mr Jayawardena
I am afraid I do not have time today, but I am sure we can continue the discussion.
This deal will help to define the future for the global Britain that we are building. It will lay the foundation of our trade relationship with one of our strongest and most important global partners. It will place the world’s oldest democracy and the world’s biggest one side-by-side as we champion a world view that puts people first. It will shape how a modern, ambitious and truly global Britain is using the irresistible power of free trade to tear down barriers to growth.
Motion lapsed (Standing Order No. 10(6)).
Oral Answers to Questions
Ranil Jayawardena Excerpts(2 years, 11 months ago)
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Cherilyn Mackrory (Truro and Falmouth) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
The Department continues to work hard to boost prosperity in every corner of our country, helping businesses export, securing investment, negotiating free trade agreements, bulldozing trade barriers and championing free trade. Just last week, as my right hon. Friend the Secretary of State for International Trade said, we launched negotiations with India, an economy of 1.4 billion people worth £2 trillion. Our consultation on an FTA with the Gulf Co-operation Council closed last week, and I look forward to launching those negotiations soon. We continue to break through market access barriers. In 2020-21 alone, we resolved more than 200 barriers across 74 countries.
Cherilyn Mackrory
I thank the Minister for his answer. Will my hon. Friend expand on how businesses in Truro and Falmouth, as well as in wider Cornwall, can take advantage of free trade deals that the Government hope to secure in 2022, so that my constituents can reap the rewards and benefits that they will bring?
Mr Jayawardena
My hon. Friend is a great champion of businesses in Truro and Falmouth. The south-west is already benefiting from the Department’s work and will continue to do so. A deal with India would benefit the more than 600 west country businesses that exported more than £20 million of goods to India in 2020, and I am sure many more will do so in the future. Food and drink producers—even those that use imported ingredients—now qualify for nil tariffs in a deal with Australia, which is good news for fans of Cornish pasties down under.
Afzal Khan (Manchester, Gorton) (Lab)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
Since leaving the EU, the United Kingdom has secured trade agreements with 70 non-EU countries, in addition to the deal with the EU. Many of those deals were negotiated to secure continuity of trade, and they cover 99% of the trade under trade agreements we were subject to when we were also subject to the diktats of the EU, which I am sure is not what the Labour party is advocating today.
Dr Huq
I listened to what Mr Speaker said—I mean the Minister—[Interruption.] Of course we always listen to everything Mr Speaker says. The Minister’s description does not tally with the experience of my constituent, Danny Hodgson, whose clothes retail business Rivet & Hide made the Financial Times exactly a year ago because of the crippling new additional duties he faces in importing from the EU. This time it is even worse, because he is finding that all the goods coming in from Japan are attracting a 12% levy. That is slapped on erroneously and routinely seven out of 10 times, I think, and it is a bureaucratic, red tape, bookkeeping nightmare for him. Will the Government look into the case? They are meant to be the party of small and medium-sized enterprises and low tax, and they have trashed their reputation for all that. Can the Government urgently help my constituent please?
Mr Jayawardena
I am delighted that the hon. Lady recognises that this party is the party of business. That is great news and I welcome her remarks. She references a business that trades with Japan, but I note that she did not vote for the deal with Japan nor the deals with Canada, Singapore or even the EU. Of course we will happily look at any business that she wishes to raise with me in writing, but I point out that this party is the party of business. We are the party that is securing the trade deals that will benefit businesses across our country.
Paul Howell (Sedgefield) (Con)
Mark Eastwood (Dewsbury) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
In addition to negotiating FTAs, as I have said, we are cutting through red tape and opening markets for British business around the world. Last year, we resolved over 200 barriers across 74 countries, which was an increase of 20% on the previous year—[Interruption.] I am delighted that the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) is getting so excited about that success. We have secured British poultry market access in Japan, estimated by industry to be worth up to £13 million a year, and we have lifted the decades-long ban on British lamb exports to the United States, estimated by industry to be worth £37 million over the next five years.
Mark Eastwood
Since being appointed the trade envoy to Pakistan, I have encountered a number of issues that hinder potential trade opportunities such as exporting meat and poultry to help our farmers and importing high quality granite and marble that is important to the UK burial industry, and difficulties for businesses gaining access to UK Export Finance. Will the Minister outline what he is doing to overcome those and other barriers so that trade can be open not just to Pakistan but across the globe?
Mr Jayawardena
I thank my hon. Friend for his great work as trade envoy to Pakistan. We are very aware of the challenges to exports in the farming sector posed by costly market access barriers around the world, which is why we are working closely with our counterparts in the Department for Environment, Food and Rural Affairs and engaging trading partners to remove them where possible, as I have outlined, so that Great British meat and produce can be enjoyed all around the world.
My hon. Friend mentioned UKEF, which has a £1.5 billion risk appetite to support exports in Pakistan with a specialist team on hand to discuss options available to British businesses of all sizes. He will also know that we will soon launch our developing countries trading scheme, which will look to further simplify trading arrangements with developing countries, including Pakistan.
Deidre Brock (Edinburgh North and Leith) (SNP)
In the interests of peace and harmony, I shall refrain from dwelling on the Ashes cricket series.
Small businesses are simply less likely to be able to afford the consultants, lawyers, trade experts and advisers necessary to navigate the complexities of the hard Brexit customs checks that this Government insisted on. Despite that, the Government have now closed the SME Brexit support fund and not replaced it, although a Channel 4 investigation found that 26% of SMEs that trade with the EU are now considering moving some of their European operations outside the UK, while 16% said they had already done so. A Lords report published in December said it is absolutely vital that it is reopened with wider eligibility criteria, and the Federation of Small Businesses has also been calling for that for months. Will the Minister listen to the small business experts?
Mr Jayawardena
First, I am sure the hon. Member would want to direct all businesses to our export support service, which will help British businesses get the answers to the practical questions they may have about exporting to Europe, accessing cross-Government information and support all in one place. She will be pleased to know that the statistics actually show that monthly exports to the EU are now £13.6 billion, which is 12% higher than average exports in 2020. That shows that significant progress is being made in our exports from businesses of all sizes up and down our country.
Marion Fellows (Motherwell and Wishaw) (SNP)
Scott Benton (Blackpool South) (Con)
Our co-operation with Saudi Arabia on defence and security helps to maintain hundreds of jobs at BAE Warton on the Fylde coast. What steps are the Government taking to further develop that relationship and the opportunities for trade with Saudi Arabia?
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
We have just finished a consultation with British businesses, citizens and civil society on their aspirations for a free trade agreement with the Gulf Co-operation Council, of which Saudi Arabia is an important part. My hon. Friend knows that that will provide the opportunity to reduce tariffs and streamline market access barriers. He will also be aware, from the excellent report by BAE Systems, that there are well over 500—maybe even 600—jobs in Blackpool because of the presence of BAE Systems in that part of our country, which shows the importance of our strategic exports.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
This Government, as we know, have blundered many times, and now a lobster or a leg of chicken cannot be sold to any country in the world without five, eight or 10 bits of paperwork. I am trying to prevent another blunder.
The Chartered Institute of Patent Attorneys supports the accession to CPTPP, but cautions that
“we believe that if the UK were to sign up the CPTPP IP chapter as currently drafted, this could have unintended consequences”
for our reputation as an international patent leader, for innovative small and medium-sized enterprises, for UK GDP and for the UK patent profession. It asks that
“the UK…should take a very firm position and insist on carve outs for the UK from these provisions of CPTPP.”
Will the Department take up that ask and insist that it happens?
UK-Israel Trade Negotiations
Ranil Jayawardena Excerpts(2 years, 11 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
It is a pleasure to serve under your chairmanship for the first time, Mr Paisley, and I welcome the hon. Members for Brentford and Isleworth (Ruth Cadbury) and for Airdrie and Shotts (Ms Qaisar) to their places. I should also like to thank my hon. Friend the Member for Harrow East (Bob Blackman) for securing this important debate and all Members who have been present this Thursday afternoon and made important contributions.
The hon. Member for Strangford (Jim Shannon) raised the question of why I had been away from the House in recent weeks. In his absence, but for the record, I should say that I have been away for a couple of weeks due to the birth of my son. [Hon. Members: “Hear, hear.”] Thank you.
That explains why the hon. Gentleman has not seen me in the Palace, but I am delighted to be back and discussing this important topic, because Britain is strongly committed to her trade and investment relationship with Israel, one of the middle east’s most dynamic and innovative economies. Israel is a key ally and friend to the United Kingdom. We share the same values and are key strategic partners in the middle east. The bilateral trade relationship is very strong, and we want to continue to work with Israel to strengthen our relationship as we emerge as an independent trading nation for the first time in 50 years.
Let me be crystal clear at the outset: we are strongly opposed to boycotts. Open, honest conversations best support peace efforts. The United Kingdom is very clear about this—always has been and always will be. We have also made clear our commitment to supporting the Abraham accords and to working with Israeli and Arab partners to promote our shared prosperity and regional security.
The continuity agreement that we signed on 18 February 2019 was one of Britain’s first. It replicated the scope of the EU-Israel agreement, with key provisions covering tariff liberalisation, customs, regulation and public procurement. This trade and partnership agreement, which entered into force on 1 January last year, secured the future of our bilateral trade relationship. Anglo-Israeli trade was worth £4.6 billion in the four quarters to the end of Q2 2021, making Israel—I am pleased to say that I agree with my counterpart, the hon. Member for Brentford and Isleworth—the United Kingdom’s 40th largest trading partner globally. The United Kingdom is Israel’s second largest trading partner, behind only the United States.
While it is difficult to disaggregate trade figures, it is certainly true—to respond the comments by the hon. Member for Strangford—that covid has depressed trade around the world, but that makes trade with Israel all the more important. Co-operation between us in sectors such as science and technology—and particularly medical science, which we have heard a lot about this afternoon—is already very strong, with Israel’s status as a start-up nation and the United Kingdom’s as a science superpower going hand in hand.
We have heard some great examples from so many colleagues, including my hon. Friend the Member for Harrow East. I was also particularly drawn to the examples given by my hon. Friend the Member for Southport (Damien Moore), which showed the huge scale of imports that we benefit from here in Britain, but we export to Israel too. We should not lose sight of that benefit to both countries. The London Electric Vehicle Company, for example, makes taxis in Warwickshire—I am sorry to say that to my hon. Friend the Member for Harrow East, although I am sure Members from Warwickshire will be pleased with that news. LEVC vehicle exports totalled something like £1.46 million in 2021—a year when trade was depressed because of covid—and the company anticipates purchases of something like £730,000 a month this year. That is just one example but, to the point made by the hon. Member for Brentford and Isleworth (Ruth Cadbury), as far as I am concerned, the sky is the limit.
As my hon. Friend the Member for Hendon (Dr Offord) said, around 500 Israeli firms operate in the United Kingdom. That investment from overseas is creating thousands of jobs in high-value sectors, and over 20 Israeli firms are listed on the London Stock Exchange or AIM—its alternative investment market—demonstrating the benefit and strength of capital markets in the City of London. Of course, we can always do more to assist the relationship, and I know that Ministers across Government will look carefully at the comments made by Members, including their suggestions on changes to the visa regime.
We can always do more to help businesses succeed, and the Department for International Trade is doing that right now. We have a dedicated team of trade advisers in Tel Aviv, and UK Export Finance has a risk appetite for Israel of at least £4 billion, which is helping firms operating from the United Kingdom to win contracts, insure their operations and obtain trade financing. The United Kingdom and Israel share a world-leading culture of entrepreneurial, tech-savvy and innovative businesses, which will be celebrated in an innovation summit later this year—a clear opportunity to highlight our ambitious trade, science and innovation relationship, and a chance to showcase the shared talents and skills of world-leading British and Israeli businesses. My hon. Friend the Member for Harrow East asked about what more we could do to enable binational approaches to research and development, and I am pleased to say that the UK Science and Innovation Network is already making great strides in that direction.
Outwardly, the stock of foreign direct investment from the United Kingdom to Israel was £1.4 billion as of 2019. We trade across a huge range of sectors, as I have said, but both our economies are also highly oriented towards services, which represent over 70% of GDP for each country. After the United States, we are Israel’s second-largest collaborator in pharmaceuticals and medical products, and the pandemic has catapulted the need for digital health solutions, with Israel already being the world’s leader in this area. It has therefore become even more important. Beyond that, we seek opportunities in business services, research and development, and professional and management consulting services—the biggest traded services between our countries, making up 12.5% of the overall trade relationship. Although our trading relationship continues to be predominantly goods-based, at around 65% of our trade, our economies are highly services-oriented, and I believe that huge scope for the future lies in our trade in services.
As two like-minded partners, with expertise in areas such as technology, innovation, data and digital, we are confident that the United Kingdom and Israel can agree an ambitious deal that will complement both our economies. On 29 November, the Prime Minister announced that we would begin talks with Israel this year on an enhanced free trade agreement. Given both the political and economic importance of our trading relationship with Israel, we expect the FTA to form a substantial part of our bilateral trading relationship. I should emphasise that Her Majesty’s Government are committed to scrutiny and openness in our FTA negotiations. We aim to be transparent, consultative and accountable throughout our trade agenda, and we believe we compare favourably with other parliamentary systems around the world.
On 2 December, the Secretary of State for International Trade announced that the United Kingdom would open our formal call for evidence very shortly. This call for input will allow the views of businesses, the British people, civil society and others—not only parliamentarians —to be fully heard during the mandate development process, helping us shape the negotiations for our comprehensive FTA. The specific coverage of the objectives for an FTA, as asked for by the hon. Member for Airdrie and Shotts, will be concluded following this call for input, to ensure that we have fully listened to the views of all British people, businesses and civil society. It simply would not be appropriate to speculate on the contents of such a call for input—and, indeed, on our objectives—before completing that work. However, I am pleased to be able to say that the Secretary of State plans to travel to Israel in early February.
We will publish our strategic approach, an initial scoping assessment and a Government response to the call for input before starting negotiations, giving the House the means to scrutinise our negotiation approach, its projected impact, what we have been told by British people and businesses and our response to their views. We will, of course, update the House in the usual manner after each negotiation round and when requested to appear before the relevant parliamentary Committees.
Jim Shannon
I must apologise for not being present when the Minister mentioned me. I have a private Member’s Bill tomorrow and the Minister responsible has been trying to catch me, so I had to speak to her. I just wanted to ask if, when those meetings are held with the Minister’s counterparts in Israel, we could have some indication of the input of Northern Ireland companies in that process? Obviously we want every part of the United Kingdom—all the regions—to benefit.
Mr Jayawardena
The hon. Gentleman can be absolutely assured that the views of every part of our United Kingdom will be fully taken into account. In fact, the Board of Trade recently visited Belfast to demonstrate our commitment to ensuring that the Department for International Trade works for every corner of our United Kingdom. The timings of the negotiations will very much depend on the readiness of both sides, which, of course, means agreement with the Israeli Government.
My hon. Friend the Member for Harrow East and the hon. Member for Strangford raised the potential opportunities that a future FTA might provide. While British businesses already benefit from our existing trade and partnership agreement and we would not, of course, want to prejudice the call for input, I believe the potential to take our trading relationship to the next level through an enhanced and improved FTA is very clear. There is the opportunity to remove or significantly lower tariffs for major British exports, such as in the food and drink sector. We see opportunities to give easier access for all British companies—whatever corner of the country they are from, and including small and medium-sized enterprises—to set up, do business and access the Israeli market.
There is significant scope to expand our trade in services, including digital services, which grew a remarkable 73%, albeit from a low base, between 2010—remember 2010?—and 2020. Co-operation in this area is, frankly, very limited in the existing trade and partnership agreement, and we see real opportunities for an enhanced FTA to supercharge the trade in services, which would complement our services-based economies, as we have discussed during the debate, and cement the United Kingdom as the international services hub.
My hon. Friend the Member for Harrow East and the hon. Member for Strangford asked how such an agreement would fit into the United Kingdom’s wider trade agenda. Of course, our potential FTA with Israel is just one component of our ambitious wider international trade strategy. As an independent trading nation, the United Kingdom has the freedom to forge new bonds of trade with partners, friends and like-minded souls worldwide, based on British interests and shaped by British priorities. We will continue to carefully plan and sequence our negotiation programme to ensure that it delivers the maximum benefits for the United Kingdom. No longer restricted by anti-competitive and protectionist one-size-fits-all regulation from the EU, the United Kingdom will pursue prosperity through free and fair trade with sovereign nations, based on our shared interests and underpinned by the agreements we are forging worldwide.
We have signed deals covering 70 countries, plus the EU, that account for more than three quarters of a trillion pounds-worth of trade, and we intend to continue that record of success in 2022. We have a clear and ambitious goal that will put global Britain in pole position to pursue new opportunities to connect British businesses to the most dynamic economies of the decades ahead.
The International Trade Secretary recently kicked off negotiations with India, one of the world’s largest and fastest-growing economies. We are looking to accede to the trans-Pacific partnership, one of the world’s largest free trade areas, and we have launched our consultation on a potential deal with the Gulf Co-operation Council. Of course, Members will already know that we have secured an agreement in principle with New Zealand and have finalised our agreement with Australia. Those deals are aimed at unlocking growth in every corner of our United Kingdom.
The hon. Members for Brentford and Isleworth and for Airdrie and Shotts raised the matter of the Occupied Palestinian Territories and their status in a potential FTA. The United Kingdom has an interim political, trade and partnership agreement with the Palestinian Authority, which entered into force on 1 January 2021, which we are committed to implementing. That will help protect our bilateral trade relationship, which was worth £24 million in the four quarters to the end of Q2 2021. We value our bilateral trade relationship with the Palestinian Authority and will continue to work closely together to build on our trade continuity agreement.
Dr Offord
Is the Minister aware that the Palestinian Authority themselves do not agree with any kind of boycott? In December 2013, the Palestinian Authority President, Mahmoud Abbas, stated:
“We don’t ask anyone to boycott Israel itself. We have relations with Israel, we have mutual recognition of Israel.”
Mr Jayawardena
I am delighted to have that contribution on the record. Just as we stand clearly against boycotts and support the Abraham accords, the United Kingdom’s position on the settlements is clear. Settlements are illegal under international law, damaging to peace efforts, and call into question, I am sorry to say, Israel’s commitment to the two-state solution. We have urged Israel to halt its settlement expansion, which threatens the physical viability of a Palestinian state. Britain’s view is that the settlements in the Occupied Palestinian Territories are illegal under international law, so they are not covered within the scope of our trade agreement. This means that goods imported from illegal settlements are not entitled to the benefits from trade preferences, and we remain committed to that approach. This shows that more trade need not come at the expense of our values.
The hon. Member for Airdrie and Shotts raised the matter of arms exports to Israel. Her Majesty’s Government take their arms export responsibilities very seriously. We do not want any British equipment to be misused, and we aim to operate one of the most robust arms export control regimes in the world, complying with all our international obligations. We consider all export licence applications thoroughly against a strict risk assessment framework, and keep all licences under careful and continual review as standard.
The Government will not grant an export licence if to do so would be inconsistent with the strategic export licensing criteria. Those criteria provide a thorough risk assessment framework for assessing export licence applications, and require us to think hard about the impact of providing equipment and its capabilities. These are not decisions we take lightly. We continue to monitor the situation in Israel and the Occupied Palestinian Territories closely and keep relevant licences under review. If necessary, we will take action to suspend, refuse or revoke licences in line with the criteria, but only if circumstances require.
The economic relationship between Israel and the United Kingdom is strong, based on the trade and partnership agreement that allows British and Israeli businesses, exporters and consumers to buy and sell freely and with confidence. Israel is a friend and ally in the middle east, with an innovative and dynamic economy. Tech, science and innovation co-operation between businesses of both countries continues to grow, with real benefits for consumers across our United Kingdom. Through an ambitious, forward-looking and comprehensive free trade agreement, founded on the strength of the Israeli and British economies, we look forward to developing and improving that relationship even further in the future as an independent trading nation.
Ian Paisley (in the Chair)
Mr Blackman, you have some time for your winding-up speech. You do not need to take it all.
Oral Answers to Questions
Ranil Jayawardena Excerpts(3 years ago)
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Mr Philip Hollobone (Kettering) (Con)
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)
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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)
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)
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)
Deidre Brock (Edinburgh North and Leith) (SNP)
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)
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)
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)
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—
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.
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.
Oral Answers to Questions
Ranil Jayawardena Excerpts(3 years, 2 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
The Department for International Trade has established structures to engage very constructively with devolved Administrations across the United Kingdom, including the Welsh Government. I and my fellow Ministers will be speaking with Welsh Government counterparts in due course, as we always have done.
Jonathan Edwards
The Welsh Government, Hybu Cig Cymru and the farmers unions have all expressed concerns about the direction of UK trade policy, especially with regard to food—fears, I suspect, that will be heightened by today’s announcement about the deal with New Zealand. On the eve of COP26, can the Minister explain the environmental sense of undercutting domestic food production with imports from the other side of the world?
Mr Jayawardena
I am afraid that the hon. Gentleman slightly misses the point about trade. The opportunity for trade is for us to be able to sell all over the world too. The Welsh farmers, along with British farmers across our country, I am sure, will be seeking these opportunities to trade not only with the 68 countries around the world with whom we have trade deals, plus the EU, but more to come—with the Gulf, with India, and much more in future. In respect of the opportunities regarding our friends in New Zealand and Australia, they sell much more of their products to Asia, where prices are higher, so our farmers need not be concerned.
Alex Cunningham (Stockton North) (Lab)
Dave Doogan (Angus) (SNP)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
I am grateful for the question. This issue has affected pork exporters in many countries. To my knowledge, three British businesses are affected. In the 12 months to August 2021, British pig meat exports to China decreased by 3,642 tonnes, which is down 2.1%. The value of pig meat exported to China over the same period increased by £12.6 million, however, which is up 4.6%.
Dave Doogan
I am afraid it does appear that almost every single UK Government Department is trying to undermine the UK pig sector, and nowhere is that more keenly felt than in Brechin in my constituency. The Secretary of State said earlier to the hon. Member for Cambridge (Daniel Zeichner) that DEFRA will be supplying us with an answer to the China exports crisis. DEFRA is impotent; this is a trade issue. What is the Department for International Trade going to do about the crisis in exports to China?
Mr Jayawardena
I appreciate the strength of the hon. Member’s conviction in this area, but I come back to the core answer, which is that Her Majesty’s Government will work in every possible way we can to resolve such issues. Ministers have raised this issue with Chinese counterparts, and this Department continues to press the Chinese authorities for a swift resolution. We are working very closely with affected British pork processing plants. I would just make the point to him that we are very clear-eyed on our trade relationship with China. We have no plans to negotiate a trade deal, but we believe that more trade with our trading partners around the world, including China, is important, so we are working very closely on this.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)
We have been crystal clear on this. We will not compromise our high environmental, animal welfare and food safety standards. That is non-negotiable.
Royston Smith (Southampton, Itchen) (Con)
Jessica Morden (Newport East) (Lab)
Mr Jayawardena
We took a very careful and measured approach to this difficult issue. We are determined to back the steel sector, but we will do so in a WTO-compliant way. The Trade Remedies Authority is working very hard on this issue.
Rob Butler (Aylesbury) (Con)
Mr Jayawardena
I am grateful to my hon. Friend for all that he says. He is right that we should be ambitious not only for the United Kingdom herself, but for the Crown dependencies. The Crown dependencies are an important part of our family and the Department for International Trade has developed a very strong working relationship with both officials and Ministers from their Governments. They are consulted prior to the launching of FTAs and consistently engage with us as the agreements progress towards signature and implementation.
Kate Osborne (Jarrow) (Lab)
Mr Jayawardena
We will always look very closely at any abuses of rights and responsibilities around the world. The agreement the hon. Lady refers to is based on an EU agreement, which provided us and businesses across the country with continuity. It is important that we ensure we balance the objectives across our trade agreements to deliver benefits for British businesses. I know that British businesses across the north-east value greatly that agreement.
Bob Blackman (Harrow East) (Con)
What progress has my right hon. Friend the Secretary of State and the team made on increasing trade with Israel, our good friend and partner, particularly in the pharmaceutical and high-tech industries?
Mr Jayawardena
Trade with Israel is going from strength to strength. My hon. Friend is right to raise the opportunities in tech in particular for the future. We are probing and scoping for better and deeper trade relations, including a future revised trade agreement that will allow us to do much more in the years ahead.
Deidre Brock (Edinburgh North and Leith) (SNP)
Because of poorly negotiated ideology-driven free trade deals, farmers will have no choice, if their businesses are to survive, but to resort to more intensive, less climate-friendly farming to compete with cheaper imports from such places as Australia—pretty shameful in the year that the UK hosts COP. Has the Department for International Trade, alongside colleagues in the Department for Environment, Food and Rural Affairs, analysed how this shift will impact on local pollution levels and our wider greenhouse gas footprint?
Kerry McCarthy (Bristol East) (Lab)
Sir David Amess was due to ask a question today and I suspect that, as chair of the all-party British-Maldives parliamentary group, he would have reiterated previous questions about support for the very sustainable fishing industry there. As part of the all-party group on small island developing states, which includes the Maldives, I therefore feel honour-bound to pursue that cause on his behalf. Why are we requiring 20% import tariffs on tuna from the Maldives? It is a highly sustainable sector and other SIDS do not have the same tariffs. What progress is being made on negotiating an economic partnership agreement or finding some other way to remove this unfair barrier?
Mr Jayawardena
The hon. Lady rightly refers to our late colleague, Sir David Amess, and his brilliance in championing the issues of people not only across our country, but across the world. His representations on behalf of the Maldives remain firmly lodged in my mind. Along with the Secretary of State, I will certainly continue to be committed to working with our friends and allies across the Commonwealth, including in the Maldives. The Maldives does not benefit from an agreement because the EU had not secured an agreement with the Maldives. I am looking very closely at what we can do now that we have taken back control of our trade policy—[Interruption.] Although Opposition Members do not wish to listen to my answer, I refer to my answer from the last International Trade questions, when I said that we would look very closely at what we could do in that regard.
Duncan Baker (North Norfolk) (Con)
With nearly 70 free trade deals now signed and the fact that the British people voted to leave political union with the European Union, does the Secretary of State agree that Opposition Members would have kept us in the single market and in the customs union, and we would not have been able to negotiate the free trade deals that we now have around the country, including the one announced with New Zealand? This now puts us in pole position to be the global leader that we are.
Alex Cunningham (Stockton North) (Lab)
As we have heard, human rights are too often forgotten in our trade deals. I believe that the Foreign Secretary is now courting Saudi Arabia even more, to name just one of the countries that has a dubious record. When will the Government start getting serious about human rights and make it clear to countries around the world that until they get their human rights records sorted out, they are not going to get trade deals with the UK?
Mr Jayawardena
The hon. Gentleman does not seem to value trade around the world as a force for good. By having strong economic relationships, we can have honest and open conversations with trading partners, and we will continue to do so. In the Gulf, we have the opportunity to trade with a market of 50 million people, 30 million of whom, I believe, are in Saudi Arabia. The opportunities for trade are great and we will not let that sentiment from the Labour party get in the way of more trade for the benefit of our people. At the same time, if he had listened to the Secretary of State earlier, he would have heard that more trade will never come at the expense of our values.
Sally-Ann Hart (Hastings and Rye) (Con)
The UK is already one of the most attractive investment destinations in the world and this investment is vital to levelling up the country, particularly investment in new technologies and green innovation. Will the Secretary of State confirm that she is working to encourage this type of investment to help us to progress to net zero emissions and deliver on the Prime Minister’s excellent 10-point plan?
International Trade
Ranil Jayawardena Excerpts(3 years, 5 months ago)
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Mr Jayawardena
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 the generalised system of preference very soon.
[Official Report, 19 July 2021, Vol. 699, c. 4MC.]
Letter of correction from the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena).
The ministerial correction should have been:
Mr Jayawardena
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’s generalised scheme of preferences and we will be setting out our plans and launching a consultation on this very soon.