Oral Answers to Questions Debate
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Greg Hands
Main Page: Greg Hands (Conservative - Chelsea and Fulham)Department Debates - View all Greg Hands's debates with the Department for Business and Trade
(6 months ago)
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Mohammad Yasin (Bedford) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s export support for SMEs includes the export support service; the export academy; more than 400 export champions; our network of nearly 200 trade advisers; and support provided around the world through the international market service. Just last week, my noble Friend the Minister with responsibility for exports announced that UK Export Finance is introducing more flexible fast-track financing for SMEs, making it easier than ever for UK firms to sell into international markets.
Ashley Dalton
Last week, I welcomed the Duke of Gloucester to my constituency to award local SME GaraDry the King’s award for enterprise for its innovation in international trade. How can such businesses have confidence in the Government’s support for SMEs when Britain’s export growth is among the worst of the G7 economies and is forecast to be falling?
Greg Hands
I certainly welcome the royal visit that the hon. Lady had in her constituency; it is always fantastic to see that support, particularly for exporters. However, I think she is a bit off on the data. When we look at export data, we see that we had £877 billion-worth of exports in the 12 months to the end of September 2023. We are heading towards the £1 trillion export target, and that figure is up by almost £200 billion—or 29%—on the figure from five years ago, which was before Brexit.
Mohammad Yasin
In 2021, the Government launched a rebranded trade show programme pilot to great fanfare, but between November 2021 and March 2022 only two businesses in the UK were funded under the programme. We now hear that the scheme has been shelved. Will the Minister explain what has happened to that initiative, which has launched a number of household British fashion brands abroad and which served as a vital gateway under the last Labour Government for SMEs to access new markets?
Greg Hands
The last Labour Government were, of course, in office rather a long time ago. It is not always incumbent on successive Governments more than a decade later to keep previous Labour Government schemes going. The scheme to which the hon. Gentleman refers was a pilot, which did not yield the successes that we might have hoped. However, I will take no criticism from him and the Labour party for the support we are giving to exporters. We are spending £200 million over this spending review period to support SMEs to grow and succeed internationally, and we have a record to be commended.
Theo Clarke (Stafford) (Con)
As the Prime Minister’s trade envoy to Kenya, may I welcome the fact that this week the Government held the successful global investment summit and are taking steps to help British businesses to export? I recently returned from Nairobi, where I visited some of the UK’s flagship investments, including in infrastructure and clean energy. Will the Minister provide an update on the Africa investment summit next year? I also ask that the UK continues to bang the drum for British businesses to export to Kenya, the gateway to east Africa.
Greg Hands
First, let me commend my hon. Friend for winning “Speech of the Year” at last night’s The Spectator parliamentary awards. She has continued her fine form today. She does an amazing job for the country as the Prime Minister’s trade envoy to Kenya, and her recent visit in September was a big success, particularly on the infrastructure side of things. She has already referred to railways and other infrastructure. She mentioned the UK-Africa investment summit, which will take place in London next year and will further our engagement with Kenya and other African countries, fostering modern partnerships in trade and investment in areas such as resilient infrastructure, clean technologies and renewable energy.
Alun Cairns (Vale of Glamorgan) (Con)
I welcome my right hon. Friend back to his post. I pay tribute to him and to the Secretary of State for the international trade deals that they have struck during their period in office. The UK has strategic relationships with a number of Gulf nations. What progress is being made on a free trade agreement with the Gulf Cooperation Council? If it is more challenging to strike a deal across all nations, what bilateral trade agreements can we explore in order to exploit the opportunity for those nations to invest significantly in the UK?
Greg Hands
I am excited by the prospect of the deal with the Gulf Cooperation Council, with which the Secretary of State is very much engaged, and I am looking forward to being re-engaged with it. It is a huge opportunity for us, as the latest figures show that total trade between the UK and the Gulf is worth more than £60 billion. We are looking forward to moving the negotiation forward and getting a very good deal for the UK.
Gareth Thomas (Harrow West) (Lab/Co-op)
I welcome the Minister back to the Department for Business and Trade, and I look forward to helping him hopefully to do better this time around. According to the International Monetary Fund, over the past decade British food and drink exports, including from SMEs, rose by just 3%, which was the lowest growth of any G7 country. The US, Canada, Italy and Japan all saw their exports grow by between 30% and 95%. Government Ministers will not negotiate a veterinary agreement with the EU, which would help, they have cut funding for trade missions, and now the Secretary of State has cut funding to go to trade shows too. Why will Ministers not share our ambitions for Britain to have the fastest export growth rate of any G7 country?
Greg Hands
Of course, the hon. Gentleman and I have been around in these jobs for a while. He was possibly the last Trade Minister under the last Labour Government, so I will not be taking any lectures from him on how to improve UK exports. We have been financing dozens of global trade missions and we are spending £200 million over the spending review period on exports in general. On the export figures, he neglected to mention services exports, which totalled £463 billion in the 12 months to September 2023. That is a huge increase of 42% on our performance in 2018, before Brexit.
Daniel Zeichner (Cambridge) (Lab)
John McDonnell (Hayes and Harlington) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
We are working at pace to ratify the CPTPP, which we hope to bring into force next year. We are the first European country to join the CPTPP, and I know how powerful it will be for British businesses and consumers, which is why this Government are progressing legislation as quickly as possible, with Second Reading of the Bill having taken place in the other place on 21 November. We are already playing our part as the second largest economy in the agreement. The Secretary of State met other CPTPP Ministers two weeks ago in San Francisco to discuss the blossoming future of the agreement.
John McDonnell
Across the House, over a period of time, Members working with organisations such as the Trade Justice Movement have expressed concern about the inclusion of investor-state dispute settlement procedures within treaties, because they restrict our own country’s ability to regulate. I raised that issue in September and suggested that, as the Government have done with Australia and New Zealand, we agree in a separate letter that the settlement procedure will not be included in this treaty. I was then told—rather curtly—that it was too late. Actually, it is not too late. There is the potential to do a side letter, as we have with other countries, to exclude an investor-state dispute settlement procedure. In the light of the Government’s negotiating remit for the free trade agreement with Canada, the Government are specifically seeking to exclude that procedure. I wonder whether the Government might think again.
Greg Hands
It is good to be sparring with the right hon. Gentleman again from the Dispatch Box—we have both had a few ups and downs since we last went head to head. CPTPP does not compromise the UK’s right to regulate at all; it expressly preserves the rights of states to regulate proportionately, fairly and in the public interest. It is worth reminding the House that the UK has never lost an ISDS case. Such procedures actually help to protect UK investments abroad. British investments in Canada totalled £40.6 billion in 2020-21, which will be covered for the first time by these protections. As I say, if we cannot trust Canada in international affairs, who can we trust? I assure the right hon. Gentleman that the deal cannot be ratified until the legislation has been approved by Parliament and the deal has completed the Constitutional Reform and Governance Act process.
Andrew Selous (South West Bedfordshire) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s published export strategy focuses on addressing the challenges that UK businesses face when exporting. The Government continue to promote exporting, and to support companies through our network of international trade advisers, sector specialists, and the export support service. All our services can be accessed on great.gov.uk.
Andrew Selous
In my constituency I have companies such as EyeOL, Lindal Valve, Peli Biothermal, Friction Marketing, Signature Flatbreads and 198 smaller businesses, all of which export globally. The smaller businesses export through Amazon. That is fantastic, as there is evidence that businesses that export can pay their staff more, but what is the best way to get businesses that have not yet realised that the world is their marketplace exporting not just to Europe but around the whole world?
Greg Hands
I commend my hon. Friend for being a long-standing champion of his constituency exporters. As the Prime Minister’s trade envoy to South Africa and Mauritius, he knows only too well the importance of exports. The Government’s export strategy is clear. We have a clear programme to assist small and medium-sized enterprises, particularly first-time exporters. All of our services can be accessed via great.gov.uk, and we have a network of international trade advisers locally for Bedfordshire who are able to help as well.
Priti Patel (Witham) (Con)
Mr David Davis (Haltemprice and Howden) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
I am pleased to confirm that advanced talks with India are ongoing. We are in round 13, with discussions currently focused on goods, market access, services and investment. We remain clear that we will not sign until we have a free trade agreement that fully benefits the UK people and economy. We are focused on the deal, not the date.
Mr Davis
Total trade in goods and services between the UK and India was £36.3 billion in the year to March 2023. An FTA with the fifth-largest economy in the world, and one of the fastest-growing, would be a massive boost to the UK economy and put UK businesses at the front of the queue to supply India’s growing middle class, which is expected to be a quarter of a billion consumers by 2050. This is an important exploitation of Brexit, so will the Minister do all he can to bring this deal over the line as soon as possible for Britain?
Greg Hands
My right hon. Friend of course has a lot of experience in complex negotiations and I can say that we, like him, will not be satisfied until we have the right deal. He is right that a deal with India would be a big step forward in the UK’s post-Brexit strategy to refocus UK trade on the Indo-Pacific region, which represents one third of global GDP. My negotiators and I continue to work at pace and we will negotiate until we have secured the right deal. I warmly welcome his interest in doing more trade with India.
Tonia Antoniazzi (Gower) (Lab)
Richard Thomson (Gordon) (SNP)
Import tariffs on egg products allow us to recognise the higher cost of UK egg production because of safety, welfare and environmental considerations. Can the Secretary of State give an assurance that eggs and egg products will be afforded sensitive product status by the UK in future free trade agreement negotiations, and that import tariffs will remain in place on those products?
The Minister of State, Department for Business and Trade (Greg Hands)
It is difficult to comment on tariffs in live negotiations, but I would say two things to the hon. Gentleman: first, this country imports very few eggs from abroad, and secondly, anything that happens with imported eggs would not change our standards on food imports, food safety and animal welfare in this country.
John Penrose (Weston-super-Mare) (Con)
Marco Longhi (Dudley North) (Con)
As the Prime Minister’s trade envoy to Brazil, I know that the best way of supporting exports from my Dudley businesses is to remove barriers to trade. That is why I was absolutely delighted when both our countries signed a double taxation agreement, in good faith and to the highest possible standards. There appear to be complications in Brazil at the moment with ratifying that agreement through Congress, as we have ratified it through our Parliament. What more can Ministers—the Chancellor of the Exchequer, perhaps—do to try to persuade Brazil that it is indeed a very good deal for itself as well?
Greg Hands
First, I praise my hon. Friend for the amazing job he does as the Prime Minister’s trade envoy to Brazil. Partly due to his efforts, UK-Brazil trade has increased by 33% in the past year alone, so we are doing a very good job there. The UK-Brazil double taxation agreement was passed into UK law in June, and is estimated to be worth hundreds of millions of pounds to the UK. I hope that Brazil ratifies the agreement soon: it is very much in its own interests as well. As my hon. Friend knows, the Chancellor has made very strong representations to that effect, and we look forward to strengthening our trade relationship at the next UK-Brazil joint economic and trade committee next year.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
Mr Laurence Robertson (Tewkesbury) (Con)
May I ask the Trade Minister, whom I welcome back to his position, what efforts the Government are making to raise awareness of the developing countries trading scheme, particularly among African countries? What encouragement is he giving those countries to take advantage of that scheme, which would benefit them and us?
Greg Hands
Again, we have almost a full turnout of the Prime Minister’s trade envoys in the House this morning, and I commend my hon. Friend for the work he does as the Prime Minister’s trade envoy not just to one country, but to three—Angola, Zambia and Ethiopia. He rightly takes a strong interest in the UK’s forward-leaning and exemplary developing countries trading scheme. The scheme was launched on 19 June by my predecessor, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), who is now the Financial Secretary to the Treasury, and provides duty-free or nearly duty-free access to goods to 37 African countries. The scheme was launched to significant media attention in Ethiopia, and there was a series of events in more than 10 countries.
I agree with my hon. Friend the Member for Tewkesbury (Mr Robertson): the onus is on all of us in this House to continue to extol the virtues and the benefits of the UK’s developing countries trade scheme. We have taken the EU scheme and gone significantly further, making it more generous for developing countries. We should all be united in extolling the virtues of the UK’s scheme, and of the brilliant job the UK is doing to promote goods access to developing countries.
Joanna Cherry (Edinburgh South West) (SNP)