Oral Answers to Questions

Douglas Alexander Excerpts

Thursday 12th June 2025 Commons Chamber

[Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)]

17. What assessment he has made of the effectiveness of the UK’s trade agreements programme.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

The UK’s recent trade agreements with India, the United States and the European Union confirm that, under this Government, Britain is back and open for business. These deals open markets and cut tariffs and will contribute to growth across the United Kingdom. For example, our deal with the EU—our closest and largest trading partner—contributes to our promise to reset our relations with our friends and neighbours in Europe. The sanitary and phytosanitary measures and the emissions trading system measures announced at the summit could increase UK GDP by nearly £9 billion by 2040.

[Katrina Murray]

Cumbernauld is fast becoming a centre for advanced manufacturing, with too many companies to name basing themselves there. Will the Minister set out how the UK’s trade agreements are helping such companies to expand into new markets, creating growth and jobs in places such as Cumbernauld? What steps are being taken to ensure that more Scottish manufacturers can take advantage of these deals?

[Mr Alexander]

I pay tribute to Cumbernauld’s advanced manufacturing capability. It is estimated that the UK-India free trade agreement will boost the whole UK economy by £4.8 billion and grow trade with India by over £25 billion annually. The Scotch Whisky Association forecasts £1 billion in extra exports and 1,200 new jobs. For Irn-Bru, which I understand is headquartered in my hon. Friend’s constituency, the agreement also removes India’s 33% tariffs on UK soft drinks. This India deal was delivered in the UK as a result of the hard work of our negotiators and the leadership of the Secretary of State, and it will benefit exporters and advanced manufacturers right across our country.

[Elaine Stewart]

Luxury knitwear products from Alex Begg, based in my Ayr, Carrick and Cumnock constituency, are a great example of quality Scottish exports, and it has a great reputation in leading fashion houses across the world. Like many businesses, Alex Begg is happy to see that good UK trade deals are back in fashion. Will the Minister join me in visiting Alex Begg in Ayr to hear about the importance of trade deals to local businesses with global ambitions?

[Mr Alexander]

I pay tribute to the craftsmanship and global ambitions of Alex Begg in Ayr. My mother’s side of the family are all from Ayrshire, so it would be a personal pleasure to visit Ayrshire, as my hon. Friend suggests. I would suggest that we could visit Alex Begg during the summer recess, but then again, as Billy Connolly once observed:

“There are two seasons in Scotland: June and winter.”

[Clive Jones (Wokingham) (LD)]

Yesterday the Chancellor championed the Government’s supposed trade deal with the United States, but that trade deal is not yet complete. We know that because no impact assessment has been published. Why are the Government popping the champagne prematurely, and have they done an impact assessment on any of the ongoing negotiations?

[Mr Alexander]

I am grateful that at least one of the Opposition parties accepts that there is a deal. The hon. Member is right to recognise that the implementation phase is what we are now relentlessly focused on. I am sure the House will be aware of the statement issued overnight by US Commerce Secretary Howard Lutnick, confirming that the US will expedite the agreed quota for car exports to the United States, reducing tariffs from 27.5% to 10%. The Government continue to work on this important deal.

[Ellie Chowns (North Herefordshire) (Green)]

The UK has a trade agreement with Israel that permits the import of goods produced in illegal settlements. Such goods are effectively proceeds of crime, given that settlements constitute illegal expropriation of Palestinian land. How can the UK justify this complicity in trade of illegally produced goods, and when will we finally see a ban on the import of any settlement goods?

[Mr Alexander]

The hon. Lady raises a critical issue. The British Government have a long-standing opposition to the illegal occupation of lands in the Palestinian territories, principally in the west bank. We have been clear and consistent that, on the grounds of international law, the responsibility lies with the Israelis to resolve these issues. On the points she raised, it is a significant and contentious enough issue. I will be happy to write to her, but it has been clear for many years that we oppose the settlements and continue to do so.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The gov.uk website, which has not been updated since 8 May, states that the Prime Minister negotiated the 25% steel tariff down to zero, but that is not right, is it? Steel faces a tariff of 25% today and runs the risk of a 50% tariff being imposed next month. Will the Minister take this opportunity to commit to updating the website, updating this House and updating steelworkers on the state of the negotiations?

[Mr Alexander]

I am very happy to consider the issues that the hon. Lady raises in relation to the website, but I can assure her that, whether it is the Minister for Industry or the Secretary of State for Business and Trade, the Government are in constant dialogue with the British steel industry. We will introduce a steel strategy, unlike her predecessors, and we have put serious money behind it. Thanks to the economic prosperity deal with the United States, the UK was the only country to be made exempt from the 50% tariffs on steel and aluminium that other countries around the world now face.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats have long called for a closer trading relationship with Europe after the disastrous negotiations by the previous Conservative Government. We welcomed last month’s new trade agreement, including an agrifood deal establishing a UK-EU sanitary and phytosanitary zone. The EU is our largest agrifood market, but since Brexit exports are down by 21% and imports are down by 7%. The introduction of an SPS agreement will provide welcome relief to many businesses by reducing costs through the removal of border checks and reducing many certificate requirements, such as for export health certificates. However, businesses and producers cannot plan without clarity, so will the Minister set out a timeline on when we can expect the SPS deal to be implemented?

[Mr Alexander]

I sympathise with a lot of what the hon. Lady has said. She is right to recognise that post Brexit we have broadly overperformed in services, relative to expectations, but significantly underperformed in terms of goods exports. That was in no small measure because a number of food and agriculture producers were buried in red tape and new paperwork. That is exactly why, as she suggests, the SPS deal is critical. Again, I welcome the fact that, for the second time today, we are being challenged to go further and faster on deals that we have delivered. I can assure her that, as I have said in relation to the United States, we take seriously our responsibilities on the implementation of SPS, but that places responsibilities on the British Government and, in this case, on the European Commission.

[Alan Gemmell (Central Ayrshire) (Lab)]

2. What assessment he has made of the potential impact of the UK-India free trade agreement on the economy.