Oral Answers to Questions

Andrew Bowie Excerpts

Thursday 15th December 2022 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

15. What progress her Department has made on tackling trade barriers for British food and farming businesses.

[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

Thank you, Mr Speaker, for allowing the House to take a moment this morning to show our resolve, and the country’s resolve, never to forget the horrors and barbarism committed on our continent within living memory. We will always remember the holocaust, and man’s inhumanity to man, and we resolve to work to ensure that the suffering of so many is never forgotten and never repeated.

In the past two years we have resolved nearly 400 trade barriers, from opening markets for UK pork in Mexico and Chile to UK poultry in Japan. The recent deals with Australia and New Zealand also provide various mechanisms to identify and address trade barriers. This year the UK achieved the first export of British lamb to the USA in more than 20 years, a market estimated by industry to be worth £37 million over the first five years.

[David Duguid]

May I take this opportunity to welcome my hon. Friend to his post, and to associate myself with his remarks regarding today’s commemoration of the holocaust?

My hon. Friend, as a fellow Aberdeenshire Member of Parliament, will be aware, as should everyone, of the high quality of food and drink that Scotland has to offer the world. He will also be aware of the concerns raised by seed potato growers in Aberdeenshire and elsewhere across Scotland about the European Union’s intransigence in not allowing the absolute same standard of seed potatoes that had been available to meet the vast demand for them across the European continent. What is the Department for International Trade doing either to resolve that issue or, indeed, to find new markets for that wonderful product?

[Andrew Bowie]

I thank my hon. Friend, and constituency neighbour but one, for all that he does to champion farmers in Aberdeenshire, and indeed across Scotland, as he did when he was a Scotland Office Minister. It might interest him to know that UK exports of seed potatoes to non-EU markets increased by 25% between 2018 and 2021, and last year nearly 90% of all UK seed potato exports were to non-EU countries, supported by recent trade agreements with Egypt and Morocco. The DIT Scotland team, based in Edinburgh, as he knows well, works closely with the Scottish Government and their agencies to ensure that Scottish companies are supported to pursue opportunities for their products in new markets.

[Wendy Morton]

The number of food and farming businesses in my constituency is not high, but none the less they are really important. They include businesses such as Backyard Brewhouse, a craft brewery. British farming is renowned for its high-quality produce, so what is my hon. Friend’s Department doing to take advantage of this and do all it can to promote our exceptional British produce?

[Andrew Bowie]

If my right hon. Friend were to invite me, I would be delighted to visit the Backyard Brewhouse in Brownhills. British food and drink are among the best in the world, renowned for their quality and provenance. DIT is delivering an incredibly successful programme of activity for our exports, matching our producers with international buyers. We are placing eight new dedicated agrifood attachés in growth markets around the world.

[Selaine Saxby]

What more is my hon. Friend hoping to deliver to ensure that our great British produce carries “Brand Britain,” through national and regional UK geographical indicators to an international stage in existing and future free trade arrangements?

[Andrew Bowie]

I thank my hon. Friend for what she does for the food producers of North Devon. We have fantastic British produce, with protected geographical indications, such as Welsh lamb, Scotch whisky and Stilton, which are promoted and recognised around the globe through the GREAT Britain & Northern Ireland campaign, and at home through our “Made in the UK, Sold to the World” marketing strategy. This supports small and medium-sized enterprises to understand and access the benefits of FTAs and wider export opportunities and future success stories from all parts of the UK. I would be delighted to meet her to discuss what more we can do to support exports from North Devon and, indeed, the rest of the UK.

[Mr Speaker]

I call the Chair of the International Trade Committee.

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

Tapadh leibh, Mr Speaker. As we have heard, trade barriers are a problem for seed potato growers, and yesterday the International Trade Committee heard that the biggest change that a Government could introduce to get rid of these and help the UK economy would be to rejoin the customs union and single market. How much do the Government care about the UK economy?

[Andrew Bowie]

I thank my hon. Friend—the hon. Member for that question. This Government care passionately about the UK economy. It might interest the hon. Member to know that the EU remains a vital trading partner for the UK. Contrary to the claim that trade with the EU has collapsed, Office for National Statistics figures show that total trade in goods and services between the UK and the EU was worth £652.6 billion in the year to June. That is up by 18%.

[Dan Jarvis (Barnsley Central) (Lab)]

British farmers could lose out on up to £148 million-worth of growth owing to the New Zealand trade deal, according to a report by the International Trade Committee. A report by the Department for Environment, Food and Rural Affairs Committee said that British farmers could lose out on up to £278 million-worth of growth owing to the Australia trade deal. What is the Minister going to do to address those huge potential losses?

[Andrew Bowie]

As the hon. Member is aware, in our negotiations with New Zealand and Australia we have ensured that there are huge protections for British food and farming, including a long period of transition to allow the market to adapt. We are committed to promoting and driving up exports of British produce overseas, as well as to ensuring that the great British produce we deliver at home is protected.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

If you want to enter into the Christmas spirit, Mr Speaker, I would recommend a dram of Dalmore, Glenmorangie, Balblair, Clynelish or Old Pulteney. It is a widely recognised fact that the highland single malts are the best whiskies in the world. Notwithstanding the fact that the Minister is an Aberdeenshire man, will he make sure that sales of those whiskies are pushed very strongly?

[Andrew Bowie]

I would be very pleased to visit the hon. Gentleman’s constituency and try all those fine whiskies. I had a meeting with the Scotch Whisky Association just last week. It is very excited about the current trajectory of Scotch whisky sales overseas, and very, very excited about what we are doing in India to reduce tariffs on Scotch whisky so that we can further promote that fantastic Scottish export around the world.

[Mr Speaker]

I call the shadow Minister.

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

According to the Centre for Business Prosperity, more than 40% of products such as shellfish and seed potatoes are no longer exported to European markets, for want of a veterinary agreement with the EU—yet the Government do nothing. I know that exports in ex-Prime Ministers’ speeches have increased recently, thanks to the efforts of Ministers, but why will they not act now to negotiate a veterinary agreement, which would be transformational for British farmers, thousands of British businesses and the British food industry in particular?

[Andrew Bowie]

This negativity about our export position with the European Union is precisely why so many people are turned off from the Labour party and have been for such a long time. Contrary to what the hon. Gentleman said, trade with the EU is actually up by 18%. The veterinary agreement would involve dynamic alignment with the EU, which I believe the Labour party is opposed to; the hon. Gentleman might want to correct the record. In terms of overall relations with the EU, my right hon. Friend the Minister for Trade Policy is engaging every single day with our European partners to see what we can do to drive down trade barriers further, so that we can promote British exports on the continent. Notwithstanding that, we are looking for new export opportunities in emerging markets around the world.

[Richard Thomson (Gordon) (SNP)]

The New Zealand trade deal will mean an expected £150 million hit to agriculture and food-related industries each year. An impact analysis shows that the Australia trade deal will mean an expected £94 million hit to farming and a £225 million hit to food processing each year. On top of that, UK food and drink exports to the EU have already fallen, despite what the Minister says, by more than £1.3 billion, because of the Brexit deal that this Government signed. Given that mounting charge sheet, how can farmers and food producers in this country ever again trust a word that the Tories say?

[Andrew Bowie]

We will take no lectures from the SNP on supporting Scottish farmers and food producers. It is not the UK Government who are accused of operating in an information void due to the lack of information and slow progress of Scotland’s post-Brexit agricultural Bill. It is not the UK Government who were criticised by the National Farmers Union of Scotland for not voting for the Genetic Technology (Precision Breeding) Bill a couple of weeks ago. This Government are committed to supporting Scottish, and indeed British, food producers and exporters, not creating division and stoking negativity, which is all the SNP ever brings to the table.

[Richard Thomson]

I think Aberdeenshire farmers will take that with a large pinch of salt. The Secretary of State says that she is a huge believer in British farming and the role it plays in our national life. She wrote an article a few years ago on fears about the impact of opening up our markets on domestic producers such as farmers. In the light of all that, how long does the Minister seriously think it will be before he and his colleagues trigger the mechanisms to bring an end to these disastrous trade deals with Australia and New Zealand?

[Andrew Bowie]

The trade deals with New Zealand and Australia are great deals for British exporters and this country. As I said, unlike the Scottish National party, we are committed to championing Scottish and British exports and food and drink around the world, not creating negativity. It is time that the hon. Gentleman championed great British exporters—great Aberdeenshire exporters—instead of coming here with all that scare- mongering and negativity, as he does weekly.

[Sir Desmond Swayne (New Forest West) (Con)]

2. What steps her Department is taking to increase trade opportunities for the financial services sector.

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[Mohammad Yasin (Bedford) (Lab)]

6. What steps she is taking to increase exports.

[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

Boosting exports is at the forefront of this Government’s agenda. I am pleased to say that UK exports were worth nearly £760 billion in the 12 months to the end of October 2022—that was an increase of £57 billion, once adjusted for inflation. Our Export Support Service has received more than 11,800 inquiries since its launch in October 2021, providing call-backs to customers and referring companies to other Department for International Trade services more effectively, to support them on their exporting journey.

[Mohammad Yasin]

The UK trade performance is the worst on record. Lost output is estimated at £100 billion a year. With such an appalling record, it is hardly surprising that the Government are making false claims to have secured £800 billion in new free trade deals when most post-Brexit trade deals are just roll-overs. Businesses in Bedford, big and small, are overburdened with red tape. Will the Minister explain how businesses in my constituency can improve growth and trade with the biggest trading bloc in the world?

[Andrew Bowie]

I thank the hon. Gentleman for that question, but I am afraid that what he says is simply not true: the Japan deal was not a roll-over, and neither were those with Australia and New Zealand; the comprehensive and progressive agreement for trans-Pacific partnership discussions we are in right now will not lead to a roll- over; and a deal with India, where my right hon. Friend the Secretary of State has just returned from, will not be a roll-over. The hon. Gentleman talks about the EU, so I am afraid I am going to have to repeat what I said earlier: trade with the EU in the year up to June was up by about 18% and worth £652.6 billion. We are committed to growing our exports around the world and supporting British exporters to get out there and sell fantastic British goods and services into new markets, but we are also committed to continuing to sell into the EU and we continue to do so very effectively indeed.

[Philip Dunne (Ludlow) (Con)]

Farmers in my constituency —I remind the House that I am one—have expressed concerns about ensuring that agricultural interests are adequately taken into account in the upcoming free trade agreement with Canada and the trans-pacific trade agreement that the Minister refers to. I welcome him to his place; will he please invite the Secretary of State to meet me and other colleagues representing agricultural constituencies to discuss those concerns?

[Andrew Bowie]

I thank my right hon. Friend for his question and for bringing to my attention that it will also be a new agreement between Canada and ourselves, which I forgot to mention in my earlier answer. We are pursuing an ambitious and comprehensive free trade agreement with Canada that builds on our existing trading relationship, already worth £23 billion. We have been clear that the new agreement must work for British exporters, including those in our agriculture and food and drink industries. That includes maintaining our high animal welfare and food safety standards for farmers in Ludlow and across the UK.

[Dame Nia Griffith (Llanelli) (Lab)]

According to a recent report by the Social Market Foundation, while world goods exports were 7.9% higher by mid-2022 than they were at the end of 2019, the UK’s goods exports were 21% lower. “Could do better” would be a kind end-of-term report. Will the Minister now commit to a recommendation from the Institute of Directors to monitor and publish the impact of Government assistance from the Department’s teams—both overseas and UK- based—to assess their effectiveness and inform improvements so that all businesses get the best possible support for their exporting needs?

[Andrew Bowie]

This Department and, in fact, this entire Government are committed to growing our exports. We are going to export our way to growth and, in the 12 months to December 2022, trade was worth £748 billion. We are rolling out our export support service, making export champions more visible and more available across all nations and regions of this United Kingdom. We are committed to working with small and medium-sized enterprises to get them into exporting and we are supporting those companies that export already. We are driving up exports from this country and our new independent trade policy—something that, if the Labour party had its way, we would not have in the first place—allows us to do just that.

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

7. What assessment she has made of the impact of her Department's trade policies on UK food prices.

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[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

I can indeed. At the green trade and investment expo in Gateshead last month, I saw many companies from around the UK that are engaged in exporting renewable energies technology around the world. Indeed, the UK is home to world-leading companies in the design and development of renewable energy, and the Department for International Trade has already supported over £5 billion of exports across the energy and infrastructure sectors in the past.

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

The Centre for Business Prosperity at Aston University has estimated that 42% of British exports have disappeared from European shelves since Brexit. Is the Secretary of State proud of her party’s 12-year record in charge of export policy?

[Andrew Bowie]

The hon. Member obviously was not listening to what I said earlier. Trade with the EU is actually up 18%. Instead of coming here and talking down Scottish and British businesses that are exporting to the continent and around the world, he should join us—he should be here championing Scotch whisky exports, which are up; he should be here championing Scotch beef exports, which are up; and he should be here championing the great Scottish financial services exports, which are up around the world and transforming lives for the better.

[Giles Watling (Clacton) (Con)]

T6. Can my right hon. Friend update the House on trade envoy positions? Following my recent Foreign, Commonwealth and Development Office report on the Commonwealth, which I am sure he has read, will there be a specific trade envoy position for the Commonwealth family of nations?

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[Peter Aldous (Waveney) (Con)]

T7. The road to net zero provides many local job-creation opportunities on the north East Anglian coast in technologies such as offshore wind, hydrogen and carbon capture. The Government are backing these industries, but significant private sector investment is required. I would be grateful if my right hon. Friend outlined what her Department is doing to attract inward investment to these exciting emerging sectors.

[Andrew Bowie]

I congratulate my hon. Friend on his work not only as the MP for Waveney but as the chairman of the all-party parliamentary group on the British offshore oil and gas industry. He is well apprised of what we are doing in the energy sector. DIT and the Office for Investment work directly with project leads, investors and financial institutions, and we are seeing excellent progress. For example, ScottishPower is investing £2.5 billion in its East Anglia ONE project, the first of four in the region, including a £25 million state-of-the-art operations and maintenance facility in Lowestoft. Events such as the recent green trade and investment expo in Gateshead, which I mentioned, are showcasing UK opportunities to the world in many technologies, such as carbon capture and hydrogen.

[Greg Smith (Buckingham) (Con)]

Exports such as squid from the Falklands are an enormously important part of the economies of our overseas territories and Crown dependencies. Can my right hon. Friend assure me that everything possible is being done to support the trading relationships of this important part of the British family?