United Kingdom-India Free Trade Agreement: Consultation
Elizabeth Truss Excerpts(2 years, 11 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
This morning, the Department for International Trade launched a public consultation on a future Free Trade Agreement (FTA) with India. This consultation will make sure that the public, business, civil society and trade unions across our nation, can have their say on Government’s approach to a future trade agreement with India. As with all consultations, my Department and I will continue to engage Parliament and the Devolved Administrations throughout the scoping of an FTA with India. Today’s announcement is consistent with the Government’s approach of consulting widely ahead of launching trade negotiations, to ensure our position is tailored to the UK economy and supports our national interest.
India, as the world’s largest democracy, enjoys many shared values with the United Kingdom, as well as strong cultural links. It is expected to become the second biggest economy in the world by the mid-2030s, presenting significant trade and investment opportunities as a key partner for us in the increasingly important Indo-Pacific region. On 4 May 2021, the Prime Minister launched the United Kingdom-India Enhanced Trade Partnership (ETP) with Prime Minister Modi of India as part of the “2030 Roadmap” between the two countries, which includes a declaration of our shared intent to begin work towards a comprehensive FTA. A future comprehensive deal could provide opportunities for businesses across the United Kingdom in key sectors of mutual interest such as healthcare, technology and services. It would boost an already strong economic relationship too; bilateral trade more than doubled between 2007 and 2019, standing at around £23 billion at the end of this period, and the bilateral investment relationship currently supports nearly half a million jobs across both countries. As in all negotiations, we remain committed to upholding our high environmental, labour, product and food safety, and animal welfare standards in any trade agreement with India, as well as protecting the National Health Service (NHS).
The online consultation opens today on www.gov.uk and will be live for 14 weeks. It will be accompanied by an information note that sets out the definition and scope of an FTA, along with detailed analytical information on the United Kingdom’s current trade and investment relationship with India. Government aim to complete scoping before the end of this year, with the results informing our approach to full FTA negotiations.
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Call for Input: Canada and Mexico Trade Deals
Elizabeth Truss Excerpts(2 years, 12 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The call for input on future free trade agreements (FTAs) with Canada and Mexico will formally be launching as of today.
The UK has set its sights on the next generation of British-shaped trade deals to secure closer economic ties with major economies of today and tomorrow, with Canada currently being the ninth largest economy in the world, and Mexico forecast to become the seventh largest by 2050. These deals will secure more access for British goods and services, opening significant new opportunities for UK business by boosting trade with Canada and Mexico, already worth £22.8 billion and £5.1 billion respectively in 2019. They will cement the UK’s position as a world leader in digital and services trade, and constituent key building blocks to UK membership of CPTPP as well as delivering benefits to the whole of the UK.
The UK signed trade continuity agreements (TCAs) with both Canada and Mexico before the end of the transition period and committed to start negotiating the new trade deals later this year. Building on the deals signed in 2020, which secured tariff-free exports on 98% and 88% of goods to Canada and Mexico respectively, this next generation of trade deals provides the opportunity to set new benchmarks in areas like digital trade, climate and women’s economic empowerment, and cement the UK’s position as world leader in digital and services trade.
The call for input will provide businesses, public sector bodies, individuals and other interested stakeholders with the opportunity to give valuable feedback and highlight their priorities for our future trading relationship with these two countries.
The feedback received from stakeholders will be crucial when shaping our mandate, and will inform detailed negotiations preparation, and policy positions. The Department for International Trade is committed to ensuring future FTAs and their provisions are informed by stakeholder needs and shaped by the demands of the British economy.
The UK is to begin negotiations for upgraded trade deals with Canada and Mexico this year focused on creating even greater opportunities for UK businesses. Our new negotiations will allow us to go further to boost trade with these economies. Canada was the UK’s 15th largest export market in 2019, and according to IMF data, Mexico ranks as the 15th largest economy worldwide, with a market of over 130 million consumers, offering significant opportunities for UK businesses in industries including automotive manufacturing and food and drink.
Forging stronger trade links with Canada and Mexico will also support the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP), as they are both members. CPTPP is at the cutting edge of global trade and will remove barriers, raise standards and support jobs, putting the UK at the centre of an increasingly influential and modern trade network of 11 economies in the Indo-Pacific region with a combined GDP of almost £9 trillion in 2019. Joining will help open up a new horizon of opportunities for British businesses, particularly in services and digital and data provisions. Canada and Mexico also represent the second and fourth largest economies out of the CPTPP countries, which in total account for 13% of global GDP. This would increase to more than 16% if the UK were to join.
The UK and our partners in Canada and Mexico share a desire to launch negotiations later this year. The call for input will strive to support the goal of greater economic prosperity for businesses and it will ensure that their needs are heard. The Government are committed to transparency and will ensure that Parliament, the devolved Administrations, UK citizens and businesses have access to information on our trade negotiations.
The call for input can be accessed using the following link: https://www.gov.uk/government/consultations/trade- with-canada-and-mexico-call-for-input.
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Safe To Be Me: A Global Equality Conference on LGBT Rights
Elizabeth Truss Excerpts(2 years, 12 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The UK is a global leader for equality at home and abroad, driven by a fierce belief that everyone deserves the opportunity to succeed at whatever they wish to do and to love whoever they want to love. We proudly support, defend and champion the rights of LGBT people all around the world.
Now, more than ever, is an important time for us to come together and build back a better world, one where all LGBT people feel safe.
That is why the UK Government will deliver their first ever global LGBT rights conference. “Safe To Be Me: A Global Equality Conference” will take place from 27 to 29 June 2022, marking the 50th anniversary of the first London Pride.
The conference will bring together countries, international civil society and businesses to improve the rights and freedoms of LGBT people around the world. We will address three key challenges: supporting decriminalisation and legislative reform to advance equality and legal protections for LGBT people globally, tackling violence and discrimination, and improving access to public services.
The event brings together two ongoing international commitments the UK holds: co-chair of the Equal Rights Coalition alongside Argentina from 2019-2022, and hosting the Council of Europe’s European LGBTI focal points network annual forum alongside Cyprus.
We will be organising a series of virtual events that bring together our key international partners, Starting with an event on 18 May 2021 to mark this year’s international day against homophobia, biphobia and transphobia (IDAHOT). The 2021 IDAHOT+ forum will be an important moment to discuss a range of important issues including LGBT-inclusive healthcare and business advocacy. It will also be the beginning of a year-long partnership with Cyprus, our friend in Europe and the Commonwealth.
Additionally, as co-chairs of the Equal Rights Coalition, the UK and Argentina will launch the first strategy of the Equal Rights Coalition, and its five-year implementation plan, at a virtual meeting in July this year. This comprehensive strategy will increase international action to advance freedom and defend the rights of LGBT people. We want to ensure that everyone can live their lives free from the discrimination and violence that persists today.
To drive this work the Prime Minister has appointed Lord Herbert of South Downs as his special envoy on LGBT rights. In this role, Lord Herbert will champion LGBT rights in the UK and abroad.
The Government are committed to ensuring that LGBT people can be safe and free to live their lives as they wish, here at home and supporting them around the world. These events will be the next important step to ensuring we build a world where it is truly “Safe to be me”.
[HCWS32]
Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 1 month ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Secretary of State for International Trade (Elizabeth Truss)
I am delighted that the United States responded to our de-escalation of retaliatory tariffs in January and has removed the 25% tariff on Scotch whisky and other products. This is fantastic news for the 50,000 people whose jobs rely on the industry. I am working with Ambassador Tai to get a long-term resolution to the Airbus-Boeing dispute.
Mr Carmichael
The Scotch whisky industry is of economic importance to a large number of the most economically fragile communities in the highlands and islands, so I genuinely wish the Secretary of State very well in her endeavours to get the removal of tariffs made permanent. Is the situation that the Prime Minister has created in Northern Ireland helping or hindering the engagement with the Biden Administration?
Elizabeth Truss
We are extremely committed to the Good Friday agreement and have had frequent discussions with the Biden Administration. I am having very positive discussions with my counterpart Katherine Tai about resolving the Airbus-Boeing dispute—which has been going on for 16 years—to the benefit of the Scotch whisky industry, other industries throughout the UK and industries such as aerospace, in which we need Airbus to be able to compete.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]
Madainn mhath, Mr Speaker.
The digital-service-tax threats from the USA show that the Biden Administration value their special relationship with big tech more than the one with the UK. The threat to the tax sovereignty of the UK and a number of other countries indicates that there is not really a relationship of equals. Is not the prospect of a trade deal with the USA pretty dead? In any case, the 0.2% of GDP that such a deal was going to recover was only a fraction of the damage done by Brexit. Has the Secretary of State accepted that fact yet?
Elizabeth Truss
We are urging the United States to desist from any more tit-for-tat tariffs disputes, including in respect of a digital services tax. We think that the best way to resolve the issue is through the process that the Chancellor is leading at the OECD. We are in further discussions with the United States not just to end the Airbus tariff dispute but to work with the United States at the G7 to challenge unfair practices in the global trading system by countries such as China.
Stephen Kinnock (Aberavon) (Lab)
Duncan Baker (North Norfolk) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
It is completely wrong that other countries are applying unfair practices to undermine fantastic British products. I am working with the new director of the World Trade Organisation, Dr Ngozi, to ensure that other countries play by the global rules of free trade.
Duncan Baker [V]
The wool trade started in Norfolk in medieval times, many, many years ago, and we have always been an outward-looking area to the world, but for trade to be free, it must also be fair. Can my right hon. Friend tell me what steps she is taking to protect vital industries to ensure that they are not undercut by those unscrupulous countries that engage in unfair trading practices?
Elizabeth Truss
We are establishing the new Trade Remedies Authority—which, of course, the Opposition voted against—in the Trade Bill, which will ensure that all countries follow the WTO rules. It will look at the evidence and be unafraid to recommend countervailing duties on exports when other countries do not play by the rules, so Chinese products, such as steel and ceramics, that receive unfair state subsidies that will distort trade and damage British business will be tackled.
Jason McCartney (Colne Valley) (Con)
Robin Millar (Aberconwy) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Last month, I announced our new trade and investment hub in Wales, which will support almost 200,000 exporters and channel investment into Wales. It will play a crucial role in the export-led, jobs-led recovery for Wales.
Robin Millar [V]
The UK Government’s plan for a trade and investment hub in Wales is welcome support for business here in Wales. It will support exporters and help to restore inward investment in Wales to the levels we enjoyed in the past. What benefits has the Secretary of State identified that the hub will bring to exporters here in Aberconwy and across north Wales?
Elizabeth Truss
The trade and investment hub will provide support to business across Wales. There are already 2,000 people in Aberconwy working in export-intensive industries. The trade hub will provide support, including for Welsh lamb exports, which have resumed after more than 20 years to countries such as Japan.
Gareth Thomas (Harrow West) (Lab/Co-op)
The Government’s “Global Britain, local jobs” analysis does not take into account Brexit or covid, it ignores Welsh farming and Welsh steel production, and it appears to think that there are still 1,500 people employed in car production in Bridgend, which sadly there are not. Does the Secretary of State therefore think that this outdated, incomplete analysis is a reliable foundation on which to base her trade policy for Wales?
Elizabeth Truss
The analysis that we produced as part of “Global Britain, local jobs” is the first time that we have produced data at a constituency level for export industries, and it always takes time for statistics to be processed. The new Trade Bill has enabled us to get access to more up-to-date data that we will of course continue to update our strategy with. I was hoping that the hon. Gentleman would welcome the new trade hub that we are establishing in Cardiff, which will bring more investment to Wales—so let us hear from him.
Gareth Thomas
I think what the Secretary of State meant to say was that there is room for improvement, and that is certainly true. The stark reality is that Wales is getting a raw deal from the Trade Department. According to her own figures, the Department delivered 638 new inward investment projects for London but just 62 for Wales—a lower number of new investment projects than in any region in England, and for three years in a row. How can she justify those figures?
Elizabeth Truss
We are establishing a trade and investment hub in Cardiff this year that will employ up to 100 people precisely to bring more investment into Wales, more jobs into Wales, and more export opportunities into Wales.
Kim Johnson (Liverpool, Riverside) (Lab)
Craig Williams (Montgomeryshire) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We want to sell more British food around the world and help farmers make the most of our trade deals with 66 nations, plus the EU. We launched the Open Doors campaign, which will help our farmers to export to the world’s fastest growing markets.
Craig Williams
It is well documented that the food produced by our farmers is world class and demand around the world is increasing. Can my right hon. Friend build on the success of her FTAs, especially with Japan, in opening up markets for Welsh lamb and beef, including the United States? There was success with the United States on beef, and hopefully there will be on lamb. Can she update us in particular on the United States and Japan?
Elizabeth Truss
Welsh farmers export £144 million of lamb and beef around the world, and the recent opening of the US market to beef and the Japanese market to lamb will boost the figures further. Last month, I visited Kepak, which is already shipping beef to the US from farms across Wales, including in my hon. Friend’s constituency.
Emily Thornberry (Islington South and Finsbury) (Lab)
I am sure that the Secretary of State will want to join me in thanking Tim Smith and all the members of the Trade and Agriculture Commission for their final report published last month. Can I start by asking her when the Government intend to publish the core set of standards that the commission has called for, setting out the UK’s minimum requirements for tariff reductions when it comes to food safety, the environment and animal welfare?
Elizabeth Truss
I completely agree with the right hon. Lady that Tim Smith and the team produced a fantastic report laying out the future for British agricultural trade, and I am also delighted that she welcomes the recommendations to promote the liberalisation of trade to influence innovation and productivity, and price and choice for consumers. We will be responding to the report in due course.
Emily Thornberry
I thank the Secretary of State for the answer, but it is vital that when this House comes to examine the upcoming trade agreements with Australia and New Zealand, we are able to judge them against that core set of standards. Can I ask her to make it clear today that there will be no proposed reduction in tariffs as a result of those two agreements for any agricultural products that do not meet Britain’s core standards?
Elizabeth Truss
Part of the Trade Bill was the establishment of the statutory Trade and Agriculture Commission. For every free trade agreement, it will produce a report on precisely the issues that the right hon. Lady outlines. I am very pleased that our partners in Australia and New Zealand are two countries with very high standards in animal welfare.
Yasmin Qureshi (Bolton South East) (Lab)
The Secretary of State for International Trade (Elizabeth Truss)
Joining the CPTPP is a massive opportunity for UK businesses, in particular those in areas such as financial services and digital, where the rules are world-leading. It will also cut tariffs for businesses in vital industries such as cars and whisky and help to drive our exports-led, jobs-led recovery from covid.
Clive Efford [V]
The very first of the 238 questions put to the Secretary of State in a letter from my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) on accession to the CPTPP asked her whether the UK will have the right to negotiate exemptions from those provisions of the agreement to which we do not wish to accede and amendments to those provisions to which we wish to make improvements, or whether it is her intention to join the CPTPP accepting all its current provisions in full. What is the Secretary of State’s answer?
Elizabeth Truss
The CPTPP is a very high-standards agreement, and the rules will have huge benefits for the UK. The reality is that UK products such as beef and lamb have been locked out of overseas markets for unfair reasons, so it is in our interests to sign up to a high-standards, good-rules agreement.
Emily Thornberry (Islington South and Finsbury) (Lab)
As my hon. Friend the Member for Eltham (Clive Efford) said, there are at least 238 questions that the Secretary of State has to address on the subject of this agreement, and I look forward to receiving her answers soon, but today I want to ask her one simple one: can she guarantee that this Parliament will have as much time to scrutinise the proposed terms of accession to CPTPP before a vote on whether or not to approve them as the Australia, Canada and New Zealand Parliaments had before their respective votes?
Elizabeth Truss
I thank the right hon. Lady for her question—she clearly comes from a profession where she was paid by the number of questions she asked. I will be delighted to answer all those questions and more when we publish the public bundle, which will include the scoping assessment and our negotiation objectives. We will publish that at the time of launching our negotiations, and we will also have full parliamentary scrutiny, including by the statutory Trade and Agriculture Commission, in line with parliamentary systems across the world.
Alyn Smith (Stirling) (SNP)
Jacob Young (Redcar) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
My hon. Friend will be delighted that Teesside will benefit from one of eight new freeports, unlocking billions of pounds of private sector investment, and it will also help British businesses not just in his constituency but across the whole of the UK, including the 300,000 export-linked jobs in the north-east.
Jacob Young
I thank the Secretary of State for her answer and for her support for Teesside exporters. From raw chemicals to plastics and steel, Teesside manufacturers rely on global trade, so I am grateful to her Department for the work it has done, alongside Tees Valley Mayor Ben Houchen, to bring more jobs, including in her Department, to the Tees valley. Can she outline when we might start to see these DIT jobs coming to Teesside, and what is her message to the people of the Tees valley ahead of the important elections next month?
Elizabeth Truss
My message is that Ben Houchen is doing a fantastic job, as is my hon. Friend. I am delighted that we are establishing a new trade hub in Darlington, which is only half an hour’s drive from my hon. Friend’s constituency. There are over 4,000 jobs in export-related industries in Redcar, including in the chemicals industry, and we will be doing even more to support them with the new Darlington trade hub.
James Sunderland (Bracknell) (Con)
Jason McCartney (Colne Valley) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
On 4 March, we struck a historic deal with the US Administration, heralding the end of the 16-year Airbus-Boeing dispute. The deal removes the 25% tariffs on some UK exports, such as Scotch whisky, cashmere and machinery. It paves the way for an even deeper trading relationship with one of our closest friends and allies. I continue to work with the US trade representative on the deal and on our broader trading relationship.
Jason McCartney [V]
As co-chair of the all-party group for Fairtrade, may I please ask the Secretary of State what steps her Department is taking to make sure that our trade policies help and support Fairtrade farmers and growers across the world?
Elizabeth Truss
I congratulate my hon. Friend on his work on the all-party group. The UK is a long-standing supporter and champion of Fairtrade. We are opening up markets with developing countries such as Kenya and Ghana. We will shortly be launching our new general scheme of preferences, which will give more access to developing countries, helping them to grow through trade.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Elizabeth Truss
The UK is a country that follows the rules. We have very high standards in areas like the environment, animal welfare, food standards and intellectual property. It is in our interests to be in an agreement with high standards, so that we can ask the same of other countries and get access to their markets. That is the point of signing trade agreements.
Antony Higginbotham (Burnley) (Con)
Geraint Davies (Swansea West) (Lab/Co-op) [V]
Elizabeth Truss
First, we are not removing the safeguards in June. When we were part of the EU, decisions about safeguards were made on an independent basis. Nobody on the Opposition side of the House complained about that then, but they seem to object to independent decisions being made when we are a sovereign nation, which I find utterly bizarre. And I do not agree with the hon. Gentleman’s pessimistic prognosis of the future of Welsh exports. We have massive opportunities for more beef exports, more lamb exports, more car exports and more aerospace exports, and that is what we are going to do through our new trade and investment hub in Cardiff. It is going to be driving those opportunities and I urge him to get behind it.
Tom Hunt (Ipswich) (Con) [V]
Elizabeth Truss
I would be delighted to engage with the local Indian community in Ipswich and across the country, because I think we have huge opportunities to expand our trade with India. It is currently £24 billion, but it could be so much more. We are currently working on an enhanced trade partnership with the Indian Government and I look forward to engaging with my hon. Friend and the people of Ipswich to make it happen.
Daniel Zeichner (Cambridge) (Lab)
Elizabeth Truss
I am very happy to help the cheese company export not just to the EU, but around the world.
Martin Vickers (Cleethorpes) (Con) [V]
Future Trading Relationship with Australia
Elizabeth Truss Excerpts(3 years, 2 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The fourth round of Free Trade Agreement (FTA) negotiations with Australia took place between Monday 22 February and Friday 5 March. During the two weeks, negotiators held 51 negotiation sessions, covering 27 different chapter areas. In total, we have had 170 sessions since launching negotiations in July 2020.
Both the negotiation teams shared text and additional proposals before the round, including on digital, labour and technical barriers to trade, allowing negotiators to enhance their substantive conversations. From this, negotiators were able to build mutual understanding, and make further progress consolidating texts in most chapter areas. Focused engagement has enabled negotiators to provisionally identify shared ambition and remaining points of divergence to work through ahead of the next round.
Good progress has been made in areas including customs, rules of origin, and professional services. The majority of text has been agreed in chapters on good regulatory practice, as well as small to medium-sized enterprises. Development in the latter reflects the commitment of both Australia and the UK to ensuring businesses of all sizes can benefit from the FTA.
Some text was agreed in cross-border trade in services. Negotiators were also able to hold technical discussions on mobility, international maritime transport services, express delivery services and domestic regulation.
Meanwhile, progress was also made on procurement and digital, with parts of the text agreed. In addition, there were productive discussions on the innovation chapter.
Discussions were taken forward on investment, where we hope to include provisions which further enhance our strong bilateral relationship, building on the UK’s position as the second largest direct investor in Australia and the second largest recipient of Australian foreign direct investment in 2019.
The Australia and UK negotiation teams have also planned an intensive period of intersessional discussions in the coming weeks to continue this momentum ahead of a fifth round of talks.
Below is a summary list of the areas discussed in the round, which continued to take place by video conference:
Anti-corruption
Competition
Customs and trade facilitation
Development
Digital/e-commerce
Environment and clean growth
Financial services
Good regulatory practice
Innovation
Intellectual property
Investment
Labour
Legal and institutional provisions
Government procurement
Rules of origin
Sanitary and phytosanitary measures
Services, including movement of natural persons, professional services, international maritime transport services and delivery services.
Small and medium-sized enterprises
State-to-state dispute settlement
Technical barriers to trade
Telecommunications
Trade and women’s economic empowerment
Trade in goods
Transparency
Any deal the UK Government agree will be fair and balanced and in the best interests of the whole of the UK. As we will in all negotiations, we remain committed to upholding our high environmental, labour, product and food safety, and animal welfare standards in our trade agreement with Australia, as well as protecting the national health service (NHS).
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Trade and Agriculture Commission Report
Elizabeth Truss Excerpts(3 years, 2 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Last year, the Government established the independent Trade and Agriculture Commission (TAC) to place UK farming at the heart of our trade policy.
Today the Commission publishes its advisory report on trade and agriculture. The report makes recommendations covering:
The strong action needed to maximise export promotion opportunities for the agrifood sector.
The UK leadership required at the WTO to change international framework rules on trade and standards, to tackle global issues like climate change and environmental degradation.
The UK promoting free and fair trade while maintaining high standards in areas such as animal welfare, ethical standards, and the environment.
The UK being particularly supportive of developing countries to access the full benefits of the global trading system.
Welcoming the statutory Trade and Agriculture Commission to help uphold effective scrutiny of trade deals.
In compiling this advisory report, the commission sought evidence from trade and agriculture experts from across our four nations, including from local farmers, businesses, the National Farmers’ Unions and parliamentarians.
I am grateful to all those who contributed evidence and expertise during this challenging time. I thank the chair, Tim Smith, and all commission members for delivering this incisive advisory report and I look forward to carefully considering the recommendations and will respond in due course.
To continue the excellent work that the Commission has started, we are now putting the Commission on a statutory footing and evolving its role to boost scrutiny of new free trade deals. We will seek to appoint new members in due course.
In addition, last week I launched our Open Doors campaign to help farmers and producers take advantage of the 64 trade deals we have done to date, to sell more around the world including in fast-growing markets in the Americas and Asia Pacific.
A copy of the advisory report has been placed in the Libraries of both Houses and has been published on www.gov.uk.
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Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 2 months ago)
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Mark Garnier (Wyre Forest) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Last year, we secured trade deals with Vietnam and Singapore. This month, I submitted our application to CPTPP—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—a huge free trade area covering £9 trillion of GDP, which contains four ASEAN countries.
Mark Garnier [V]
First, I congratulate my right hon. Friend on everything she and her Department have achieved in terms of signing trade deals across the world. It is certainly important that the UK continues to engage in deepening its trading relationships with its close allies and trading partners, such as Australia, New Zealand and the United States, but there are also many other significant trading partners and friends across the globe, such as the Kingdom of Thailand, where I serve as the Prime Minister’s trade envoy. Could my right hon. Friend see her way to prioritising Thailand in the next round of countries to engage in formal free trade agreement negotiations, so that we can formalise our trading relationship with this long-standing and valued trading partner?
Elizabeth Truss
My hon. Friend is right to highlight the importance of Thailand. We have a bilateral relationship worth £5 billion a year and he is doing a fantastic job as our trade envoy to that great country. We are currently conducting a joint trade review to identify priorities in agriculture, pharmaceuticals and food and drink, and this is strong groundwork for a future FTA negotiation.
Emily Thornberry (Islington South and Finsbury) (Lab)
I am delighted to see that the Secretary of State is answering questions about the 2.9% of our global trade that we have with ASEAN countries, having refused to answer questions about the 47% of our trade with Europe. However, as that is clearly her priority, can she tell us this: why has she decided not to suspend Cambodia’s trade preferences, given the escalating human rights abuses in that country? How bad would these abuses need to get before the so-called “last resort” was reached?
Elizabeth Truss
I would point out to the right hon. Lady that the trade that I am responsible for covers 80% of GDP, and the reason why we have not hitherto had as much trade with that part of the world is because of the high trade barriers that we are seeking to remove through these trade agreements. I do, however, share her concerns about human rights violations in Cambodia, and this Government continue to raise the issue with the Cambodian Government at every opportunity.
Emily Thornberry
I listened carefully to the Secretary of State’s answer, which I find very interesting indeed. Is she not aware of the guidance that has been given by her Department to UK companies doing business in Cambodia? It was published by her Department last week and contains this reassuring advice:
“while political disputes could trigger protests, these would be broken up rapidly by the security forces.”
That sounds to me like her Department does not care. How does the Secretary of State think it sounds in Cambodia?
Elizabeth Truss
As I have said, we are concerned about the situation in Cambodia, but it is important to recognise that trade sanctions can often have impacts on the poorest people in a country. The best way that we can achieve our objectives is through the work of the Foreign Office and my colleague the Foreign Secretary, in raising this issue at a political level.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]
Mòran taing fawr, Mr Speaker. The UK Government have removed direct access to the EU market, damaging GDP for the UK by about 4.9%, and that is the area that 47% of UK exports go to. The Minister has not replaced that with any new markets at all; all the new deals have been merely rollovers of EU deals. So, forgetting all the flowery adjectives about trade deals, and she did talk about GDP, what do the numbers say about the gains to GDP from ASEAN trade deals? Also, does she have any numbers for CPTPP yet?
Elizabeth Truss
The Chairman of the Select Committee understands that a lot of the economies we are talking about are fast-growing. We want to be in a position, in 2030 to 2040, to make sure that the UK has deep relationships with some of the fastest-growing parts of the world, like CPTPP, the United States and places where our exports are currently growing faster than they are for the EU. I would also point out to him that it is Lord Frost and the Cabinet Office who are responsible for negotiating and working with the EU.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Darren Henry (Broxtowe) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
The United Kingdom has a huge opportunity, with the presidency of the G7 this year and the election of Dr Ngozi as World Trade Organisation director general, to drive forward free and fair trade. This is more important than ever as we seek to recover from covid and address the issues with the WTO. We hope to make good progress ahead of the ministerial conference in December.
Mr Mohindra [V]
May I once again commend my right hon. Friend for the excellent work she and her team have done to date? Can she advise the House what she will be looking to achieve under the trade track?
Elizabeth Truss
Under the trade track, there will be an opportunity for G7 democracies to work together to help to reform free and fair global trade and shape a bold vision for recovery. In particular, we want to make progress on key issues such as challenging unfair industrial subsidies, dealing with carbon leakage and promoting digital trade.
Alexander Stafford [V]
A key plank of the UK’s future trade strategy must be dedicated to securing our supply of critical minerals, which are vitally important components in the next generation of green renewables and communications equipment. Does the Secretary of State agree with me that in the run-up to the G7 summit, we must take urgent action, first, to work with allies to form a stable, reliable and independent coalition for the mining and processing of critical minerals and, secondly, to bolster the British critical minerals industry for domestic use and for exports?
Elizabeth Truss
My hon. Friend makes a very good point. We need to work with allies to make sure we have resilient supply chains of critical minerals and are not reliant on high-risk vendors. That is a priority for this Government, and that is why we are leading Project Defend. I was delighted to see Cornish Lithium for myself on a visit to Cornwall last autumn. Not only will that help us make sure that we have this critical supply of minerals, but it will boost jobs and growth in a very important part of our country.
Darren Henry [V]
I welcome the exceptional work done by my right hon. Friend’s Department to ensure that the UK stands as an ambitious internationalist country, and in that regard I would like to know what steps she is taking to improve access for UK exporters to high-growth global markets.
Elizabeth Truss
We have signed deals covering 64 countries, including the Caribbean nations, where my hon. Friend is our trade envoy. Total exports to CARICOM—the Caribbean Community—were worth £1.5 billion in the 12 months to September 2020, and I am sure he is actively looking for new opportunities to use those trade deals to benefit people in the Caribbean and here in the United Kingdom.
Duncan Baker (North Norfolk) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Joining the CPTPP is a massive opportunity for UK businesses. It will cut tariffs for vital industries such as cars and whisky, and it will help drive an exports-led, jobs-led recovery from covid.
Duncan Baker [V]
As opposed to the flat EU markets, we know that CPTPP markets are emerging and growing, giving huge tariff-free opportunities for those that join, so for my barley barons of North Norfolk, may I ask the Secretary of State what wonderful opportunities for growth access to these markets gives us?
Elizabeth Truss
I know my hon. Friend was delighted with our Japan deal, which gave more access for malt in the Japanese market, where we are the second largest exporter of malt. We will be looking for more such opportunities under the CPTPP for malt and whisky, to make sure that the barley barons continue to do well.
Emily Thornberry (Islington South and Finsbury) (Lab)
Will the Secretary of State explain the recent comments from her top adviser on trade and agriculture, Mr Shanker Singham? He said:
“I think it would be fantastic to get the EU into the CPTPP”,
which is interesting, but not as interesting as what he said next. He said that the EU
“would not be able to join at the moment…With their approach on agriculture and standards, it is impossible for them to accede.”
Can the Secretary of State explain what he means?
Elizabeth Truss
I do not know what Mr Singham means. He is an adviser to the Government; he is not the Government. The important point is that now we have left the European Union, we have an opportunity to develop more innovative policies in areas such as agriculture. For example, my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has recently launched a consultation on gene editing. We will be able to use new technologies to benefit farmers in Britain and across the world—technologies that historically the EU was averse to.
Emily Thornberry
I do not really think that gene editing was the answer to the question. The question was: what does Mr Singham mean? Perhaps I can help. I think he means that joining the CPTPP not only means eliminating tariffs on meat exports from other member states; it also means abandoning the precautionary principle when we decide which meat imports to allow. If the Secretary of State disagrees on that, perhaps she will answer this: under the terms that she is proposing to join the trans-Pacific partnership, will Britain have the right to ban the import of meat produced using growth-promoting antibiotics?
Elizabeth Truss
I am sure that the right hon. Lady, being an avid student of the CPTPP, will have read the fact that the same standards on SPS—sanitary and phytosanitary—are in the CPTPP as are in the World Trade Organisation, which the UK has already signed up to. I have been very clear that in every trade deal we sign, we will not lower our excellent standards in the United Kingdom, and we will not expose our farmers to unfair competition.
Simon Baynes (Clwyd South) (Con)
David Linden (Glasgow East) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
We have been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. This is the way forward, not escalating the tariff battle.
John Lamont
US barriers to trade have been broken down in the past to the benefit of Scottish jobs, and this includes the great work of the UK Government to get Scotch beef back in American supermarkets for the first time in two decades. Does the Secretary of State envisage similar success in removing US tariffs to help cashmere mills in the Scottish borders and Scotch whisky distillers to export to American customers?
Elizabeth Truss
My hon. Friend has been a huge champion for Scottish goods such as cashmere and whisky. These tariffs are damaging on both sides of the Atlantic. Today, we are seeing the confirmation hearing of the new US trade representative, and as soon as that is finished I will be on the phone to her seeking an early resolution of these issues.
David Linden
Despite the pandemic, we have seen a rise in consumption of spirits in North America; this is taking account of the fact that there is a 25% tariff in place for Scotch whisky. There is a danger that some of the alternatives—for example, Canadian whisky or Irish whiskey—could move into that space, and that is damaging for all of us who support the Scotch whisky industry, so has the Prime Minister raised this with President Biden?
Elizabeth Truss
I can assure the hon. Member that the Prime Minister is exercised about this issue, as am I, and we are working flat out to get an agreement to make sure that these tariffs are removed.
Andrew Lewer (Northampton South) (Con)
Jonathan Gullis (Stoke-on-Trent North) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Earlier this month, I submitted the UK’s formal application to the comprehensive and progressive agreement for trans-Pacific partnership. Joining CPTPP will put us at the heart of some of the world’s fastest-growing economies and slash tariffs for key industries such as cars and whisky. Membership of this high-standards agreement comes with no strings attached, with no requirement to cede control over our laws, our borders or our money. Joining will help propel a jobs-led, export-led, investment-led recovery from covid across our United Kingdom.
Jonathan Gullis [V]
I thank my right hon. Friend for all her hard work flying the Union flag with pride around the world. There has never been a more important time to champion the exporting potential of British business, so will she enable the Department for International Trade to partner with me so that I can ensure that the Potteries’ world-leading ceramic tableware manufacturers, such as Churchill China and Steelite, based in Stoke-on-Trent North, Kidsgrove and Talke, can benefit from support for exciting exporting opportunities?
Elizabeth Truss
We recently launched the parliamentary export programme, through which MPs can partner with DIT, and we will shortly be recruiting a second cohort of MPs; I know that the Exports Minister, my hon. Friend the Member for Beverley and Holderness (Graham Stuart), already has my hon. Friend’s name on the list. I also invite my hon. Friend to join our virtual Japan mega-mission, which is being led by the Exports Minister in the next couple of weeks and will bring Stoke-on-Trent firms in contact with Japanese companies so that they can sell their fantastic goods.
Mary Kelly Foy (City of Durham) (Lab) [V]
Elizabeth Truss
I thank the hon. Lady for her question. I am working very closely with my Canadian colleague, Mary Ng, to make sure that that happens as soon as possible.
James Sunderland (Bracknell) (Con)
Yasmin Qureshi (Bolton South East) (Lab) [V]
Elizabeth Truss
I agree with the hon. Lady that the atrocities committed by China in Xinjiang are abhorrent. The Government have taken firm action on supply chains and businesses doing business in that part of China, but expanding the role of the UK courts raises serious constitutional issues, and instead the issue needs to be addressed politically.
Sir Desmond Swayne (New Forest West) (Con)
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Elizabeth Truss Excerpts(3 years, 3 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Today, the Government submitted their notification of intent to begin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accession process.
This notification of intent comes shortly after the UK celebrates one year since leaving the EU and becoming an independent trading nation.
It is our first step in accession to the CPTPP which is part of a big strategic move that aims to deepen the UK’s access to fast-growing markets and major economies of the future, including Mexico, Malaysia and Vietnam, for the benefit of UK business.
Joining the £9 trillion free trade area will cut tariffs for vital UK industries like food and drink and cars and create new opportunities for future industries like tech and services, ultimately supporting and creating high-value jobs across the United Kingdom and helping the country build back better from covid-19.
Unlike EU membership, joining does not require the UK to cede control over our laws, borders, or money.
The UK would be the first country to take forward accession negotiations since the agreement was formed in 2018, putting us at the front of the queue to become the next full member. A number of other countries have also expressed an interest in joining, including Thailand, Colombia and South Korea.
Joining is a critical part of the Government’s wider trade strategy, which aims to deepen links with some of the fastest growing parts of the world, partnering with countries who believe in free and fair trade.
The CPTPP is one of the most important free trade areas in the world, accounting for 13% of global GDP in 2019. CPTPP GDP would rise to 16% if the UK were to join.
The CPTPP removes tariffs on 95% of goods traded between members and reduces other barriers to trade across four continents. The CPTPP countries accounted for £111 billion worth of UK trade in 2019, and the 2016-2019 annual growth in UK trade with CPTPP member countries was 8% a year. Joining now opens the way to further increase trade with these economies, enabling the UK to build back better by bringing more opportunities for our businesses and supporting jobs for our people.
Benefits that membership will bring for businesses include:
Modern digital trade rules that allow data to flow freely between members, remove unnecessary barriers for businesses, and protect commercial source code and encryption.
Eliminating tariffs quicker on UK exports including whisky—down from 165% to 0% in Malaysia—and cars—reducing to 0% in Canada by 2022, two years earlier than through the UK-Canada trade deal.
Rules of origin that allow content from any country within the CPTPP to count as “originating’”; for example, this would mean that cars made in the UK could use more Japanese-originating car parts, such as batteries.
Easier travel for businesspeople between CPTPP countries, such as the potential for faster and cheaper visas.
As well as removing trade barriers, the CPTPP helps businesses trade easily across borders and keep supply chains open and predictable. Joining the CPTPP will help us diversify our supply chains, which could help make us more resilient in an adverse environment such as the coronavirus pandemic.
Joining the CPTPP also creates an opportunity to help level up the UK. UK regions and nations exported between £1 billion and £3.7 billion worth of goods to CPTPP countries last year, including £2.4 billion worth of exports from Scotland, £2 billion from the north-west, and £3.1 billion from the east midlands.
CPTPP membership is a key part of the Government’s plan to position the UK at the centre of a network of modern free trade deals that support jobs and drive economic growth at home, while also positioning us as a champion of free trade and reform of the rules-based system abroad.
The CPTPP sets modern rules in areas of increasing importance for UK industry and business. This includes strategically important sectors such as digital, financial, professional and business services. Digitally delivered services from the UK to CPTPP members, for example, already hit £18.7 billion in 2019; joining now creates an opportunity to unleash forward-leaning parts of our economy like this.
Furthermore, membership puts the UK is in a prime position to help reshape these global rules in UK strengths like digital and data, and in services.
It would help to secure our future place in the world as a leader in a network of countries committed to free trade and send a powerful signal to the rest of the world that as an independent trading nation the UK will champion free trade, fight protectionism and remove barriers to trade at every opportunity. In doing so, we aim to turn the UK, a newly independent trading nation, into a global hub for businesses and investors wanting to trade with the rest of the world
Over the last two years, we have engaged with all 11 member countries at both ministerial and official level to discuss UK accession to the CPTPP. All CPTPP members have welcomed the UK’s interest in accession.
As part of one of the largest consultation exercises run by the UK Government in 2018, we sought views on potential UK accession to the CPTPP and are using these responses to inform our preparations. We are continuing to engage business, civil society, and trade unions on an ongoing basis where they can outline their priorities.
As we have committed, the UK will publish their negotiation objectives, scoping analysis, and consultation response for public and parliamentary scrutiny, and when we are ready to begin formal negotiations.
We will only accede to CPTPP on terms compatible with the UK’s broader interests and domestic priorities.
The Government have been clear that the NHS and the price it pays for drugs is not for sale in any trade negotiations—including the CPTPP—and that they will not sign trade deals that compromise the UK’s high environmental protections, animal welfare and food standards.
[HCWS747]
Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 4 months ago)
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John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
My right hon. Friend has been a huge champion for Scotch whisky. We have been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. That is the way forward, not escalating this tariff dispute.
David Mundell [V]
The Secretary of State has worked incredibly hard in negotiating with the United States to try to find a bilateral settlement to the Airbus-Boeing dispute to facilitate a deal with the US. Of course she is aware of the significant damage that the Scotch whisky industry continues to suffer, with export losses now approaching a staggering £450 million. Will she reassure me that as soon as possible after the new US Administration is in place, she will urgently pick up negotiations on a deal to end tariffs? Will she update the House, before that, on what support she requires from other UK Government Departments to ensure that a deal is agreed by the whole of the UK Government?
Elizabeth Truss
I completely agree with my right hon. Friend about the urgency of ending this tariff dispute. I have been clear with the United States and the European Union that we want to de-escalate it and reach a negotiated settlement. This dispute has already been going on for 16 years and has caused much damage. I am seeking an early meeting with the new US trade representative, Katherine Tai, and this will be one of the items on my agenda. I am also working closely with the new Secretary of State for Business, Energy and Industrial Strategy on this issue.
John Lamont
I know that everybody in Government is working hard on this, but I want to reiterate the huge financial strain that the tariffs are having on the textile and cashmere industry in my constituency in the Scottish borders, which I fear will cost many local jobs. Will the Government consider offering financial compensation to the firms affected to protect local jobs and this industry?
Elizabeth Truss
My hon. Friend makes an excellent point. We are looking at supporting industry, including through the BEIS fund that will invest £10 million to help distilleries go green, and no doubt the Treasury is looking at other affected industries as well. If we had accepted the advice from Labour to put additional tariffs on US products such as sweet potatoes and nuts, we would likely be hit by more tariffs as Germany and France were, as announced on 30 December.
Gareth Thomas (Harrow West) (Lab/Co-op)
The Secretary of State has threatened to reimpose tariffs on the United States if the Airbus dispute is not settled, but that threat will only carry any impact if the US believes that we have the legal authority to carry it out. Will she agree to publish the UK’s legal advice or our exchange of letters with the World Trade Organisation to prove that she is not bluffing and that we genuinely have the authority to reimpose those tariffs if we need to do so?
Elizabeth Truss
I am very clear that we have the authority to impose those tariffs. We have acquired rights as a result of leaving the European Union. But I go back to the point I was making: the hon. Gentleman has advocated putting additional tariffs on products such as sweet potatoes and nuts, so presumably he thinks that we have those acquired rights.
Paul Howell (Sedgefield) (Con)
Simon Baynes (Clwyd South) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We are launching a new food and drink export campaign this year, which will encourage British businesses to take advantage of the deals we have struck, covering 63 countries around the world. As part of our Japan deal, we will be putting forward 77 geographical indications to the Japanese system, including Welsh lamb.
Simon Baynes [V]
The Prime Minister’s Brexit deal is a great achievement, but could my right hon. Friend help with problems being experienced by companies delivering goods to Northern Ireland, such as dairy wholesaler Spear UK in Llandrillo in my constituency of Clwyd South, which saw delays last week due to additional paperwork and permanent extra costs for the customs agent and veterinary oversight?
Elizabeth Truss
My right hon. Friend the Chancellor of the Duchy of Lancaster gave a statement on this issue yesterday, and he is working hard with the Brexit business taskforce to deal with those issues. We also have the trader support scheme for Northern Ireland. I am pleased to say that freight volumes for Northern Ireland ports are at normal levels for this time of year, and there are no significant queues. Supermarkets are reporting healthy levels of supplies, but I certainly will pass on my hon. Friend’s issue to the Chancellor of the Duchy of Lancaster to ensure that it is resolved.
Mr Speaker
Let us head to Scotland to Scottish National party spokesperson Stewart Hosie with the first of two questions.
Stewart Hosie (Dundee East) (SNP) [V]
The Secretary of State was copied in to a letter to the Business Secretary from Vicky Leigh-Pearson, the sales director at John Ross Jr, Aberdeen, salmon producers and exporters. It described in excoriating detail the “barrage of useless information” on Brexit, which added no value or clarity for such food and drink exporting businesses. Would it not be better to fix the problems at the UK-EU border, where real exports take place, rather than make vague promises about future promotional campaigns?
Elizabeth Truss
I observe that the hon. Gentleman did not support a deal, so effectively he wanted no deal for the people of the United Kingdom. I think it is a bit rich of him to raise issues when no deal would have been very, very tricky for the exporters he is talking about. Given that £200 million was given to the Scottish Government to prepare to minimise disruption, I suggest he takes up the issue with Nicola Sturgeon to see how that money has been spent to help Scottish exporters.
Stewart Hosie
That was possibly the worst case of deflection I have ever seen, even from a Tory. The Brexit advice on offer to businesses such as John Ross Jr, which has an exemplary 30-year record in exporting,
“has fallen woefully short when it comes to one of the most important commercial issues of our time.”
Instead of vague promises about future campaigns, pathetic attempts at deflection and playing rather silly politics, would it not be better to fix the problems at the UK-EU border, where real exports happen, to protect real jobs and businesses?
Elizabeth Truss
My right hon. Friend the Chancellor of the Duchy of Lancaster is working very hard with the Brexit business taskforce to make sure that disruption is minimised and businesses are given support. It is perfectly reasonable for me to raise the £200 million that has been given to the Scottish Government and how they are spending it, and the hon. Gentleman’s silence speaks volumes.
Bill Esterson (Sefton Central) (Lab) [V]
Not enough vets to inspect Scottish fish, not enough customs agents to process border forms and not enough time for exporters to adopt new rules of origin—it is no good the Secretary of State saying that the delays are temporary or promising compensation with money that has been already allocated to modernise the fishing industry, as the Prime Minister did yesterday. The Government have failed to prepare for the new arrangements at the border, so is it any wonder that a company such as John Ross Jr says that the Government have thrown them in the sea “without a life jacket”?
Elizabeth Truss
I am not quite sure what the question was, but I have been clear that the Chancellor of the Duchy of Lancaster is running the Brexit business taskforce and that we are seeing disruption minimised and businesses given the support they need. The hon. Gentleman will be aware that there is an urgent question immediately after this Question Time specifically on the fisheries issue, in which he will no doubt want to participate.
Kerry McCarthy (Bristol East) (Lab)
Claire Coutinho (East Surrey) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We have agreed trade deals covering 63 countries plus the EU, accounting for £885 billion of UK trade. No other country has ever negotiated so many deals simultaneously.
Claire Coutinho [V]
I commend the Secretary of State for her work securing the most ambitious digital free trade provisions anywhere in the world. The digital economy is worth £150 billion to the UK economy, and it is growing five times faster than the rest of the economy. Could the Secretary of State outline the work that she is doing, to update businesses on these exciting new provisions, so that they can make the most of the new opportunities?
Elizabeth Truss
My hon. Friend is absolutely right to point out that digital trade is vital, and the UK is a world leader in technology. Our Japan deal goes well beyond the EU-Japan deal in areas such as the free flow of data, the commitment to uphold the principles of net neutrality and the ban on data localisation. We are negotiating similar provisions with Australia, New Zealand and Singapore, and we are looking to accede to the CPTPP, which has a very strong digital and data chapter. We also have a trade advisory group involving leading figures from the tech industry so we can make sure we have the most up-to-date information when we are negotiating these deals.
Emily Thornberry (Islington South and Finsbury) (Lab)
It has now been 14 days since the provisional trade agreement between the UK and Cameroon entered into force, yet Parliament has still not even seen that agreement, let alone had the chance to examine, debate or approve it. While I fully understand the reasons for that, does the Secretary of State understand why Members of all parties believe that this episode just illustrates why—in fact, it is the latest illustration of why—scrutiny procedures need to be improved, which is the reason many will be voting for changes to them next Tuesday?
Elizabeth Truss
I like to say that scrutiny starts at home, so I suggest the right hon. Lady starts with her colleague, the hon. Member for Harrow West (Gareth Thomas), who presided over the EU’s signing of the CARIFORUM deal 13 years ago, which is still being provisionally applied. I am not quite sure why the right hon. Lady does not ask for a debate on that. [Laughter.]
Emily Thornberry
These are serious matters. Cameroon has become, in the last three years, one of the most abusive, repressive and murderous regimes in the world today. We all know that that did not stop the Secretary of State reaching a trade agreement with it, but we do not even know what, if anything, the trade agreement says on this issue. Again, does the Secretary of State understand why Members on all sides of this House believe that there is a need for new laws, next Tuesday, obliging the Government to take proper account of human rights when negotiating and ratifying new trade agreements?
Elizabeth Truss
I had hoped that the right hon. Lady would have welcomed our announcement earlier this week on the action we are taking on forced labour in Xinjiang and making sure that Britain upholds its values when trading internationally. I would ask her to consider some of her previous actions, such as sharing a platform with Hamas and refusing to criticise Fidel Castro’s abhorrent human rights abuses. It is a bit much being lectured by a Labour Member on human rights, given her past record.
Mr Speaker
Can I just say to the Secretary of State that I expect better of her answer? That was just way off beam. In fairness, you are a much better Secretary of State than that, and I do expect better.
The Secretary of State for International Trade (Elizabeth Truss)
We have made good progress, and we are about to go into the third round of talks with Australia next month. I will be speaking to my counterpart, Dan Tehan, next week in advance of that, and we will be fighting to cut tariffs on vital British goods such as ceramics, which face a 5% tariff into Australia.
Aaron Bell [V]
I thank my right hon. Friend for her answer and for everything that she and her team, and her negotiators, did last year to get continuity trade agreements for Newcastle-under-Lyme exporters such as Doulton Water Filters, which I met shortly before Christmas. For all our exporters, will my right hon. Friend set out how an agreement with Australia would also facilitate our accession to the CPTPP, which is one of the most vibrant markets in the world and would give us even more opportunities in the future?
Elizabeth Truss
A deal with Australia will be another important step towards CPTPP, where we will be negotiating a market access schedule with Australia. It is a high-standards, rules-based agreement covering £9 trillion of GDP and, importantly, it removes tariffs on 95% of goods. It has a strong data and digital chapter and it will mean more opportunities for exporters in Newcastle-under-Lyme.
Fay Jones (Brecon and Radnorshire) (Con)
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State for International Trade (Elizabeth Truss)
The agreement that we have struck with the EU is great for the UK. It delivers on our promise to the British people and takes back control of our laws, our borders and our money. It proves that we can succeed as an independent trading nation, and builds on the deal that we have struck covering 63 countries around the world.
Kevin Brennan [V]
I was genuinely interested in what the Secretary of State would say, because so far none of the 30-plus free trade deals that she has rolled over with non-EU countries since 2019 is actually set to deliver any increase in exports compared with what was previously forecast. According to her own economic impact assessments, even the Japan trade deal, which she has lauded, will result in only a £2.6 billion increase in UK exports, not the £4.3 billion forecast inside the EU. Can she explain—preferably without reverting to wishful thinking, personal attacks or party political rants—exactly how Britain is going to be better off?
Elizabeth Truss
I am interested to hear the hon. Gentleman’s political advice there. I note that he did not vote for a deal with the EU, even though he previously said that no deal was unacceptable. The figures that he is quoting on Japan from the EU are crude figures that are completely out of date and were created from data before the financial crisis in 2008. The fact is that the Japan deal that we have struck goes further and faster in areas such as data and digital, the creative industries, and food and drink—all areas where the UK has a comparative advantage. There are huge opportunities ahead, and I ask the hon. Gentleman to embrace them.
Emily Thornberry (Islington South and Finsbury) (Lab)
Over the last two years, the Government have placed, as the Secretary of State tells us frequently, more than 30 new trade agreements before the House. Every single one of them, of course, has been accompanied by an economic impact assessment.
The Secretary of State’s October agreement with Japan set a new standard for these documents, with over 100 pages analysing the impact of the deal on UK exports, jobs, business and growth. May I simply ask the Secretary of State, when are the Government going to publish the economic impact assessment for the UK’s trade agreement with the European Union?
Elizabeth Truss
The right hon. Lady will be well aware that the Department for International Trade is not responsible for negotiating the agreement with the European Union. That is a matter for Taskforce Europe, which has provided full data to this House. The House voted for the deal—including, I am delighted to see, the right hon. Lady.
Emily Thornberry
I was not asking whether the Secretary of State was responsible; I was just thinking that, since she was in the Cabinet, she might know when the impact assessment was going to be published.
The reality is that we only need to watch the news to see the devastating economic damage being done to businesses across our country—especially the Scottish fishing industry—as a result of the new rules facing our exporters and the shocking way in which they are being implemented. Can the Secretary of State explain the logic? Why have the Government published full economic impact assessments for the trade agreements signed last month with Moldova and North Macedonia, but not for our trade agreement with the European Union?
Elizabeth Truss
The trade agreement with the European Union is something that the House has already voted on and supported, and which has happened. It is one of the largest agreements ever struck, duty free and quota free on products covering huge amounts of the British economy.
I encourage the right hon. Lady to move forward and focus on the areas for which the Department for International Trade has responsibility—namely, the 63 countries that we have covered with new trade deals, and our aspirations to strike trade deals with the US, New Zealand and Australia.
Margaret Greenwood (Wirral West) (Lab)
Alan Mak (Havant) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
In under two years, we have agreed trade deals covering 63 countries plus the EU, accounting for £885 billion of UK trade. This is unprecedented; no other country has ever negotiated so many trade deals simultaneously. In 2021, we will add to these deals: negotiations are already under way with the United States, Australia and New Zealand, and our planned accession to the comprehensive and progressive agreement for trans-Pacific partnership will hitch Britain to the fastest-growing markets around the world.
Alan Mak [V]
Can my right hon. Friend update the House on the UK’s accession to the CPTPP and explain how exporters from my constituency could expect to benefit?
Elizabeth Truss
Accession to the CPTPP is a priority for this Government and a key part of our trade negotiation programme. We aim to make our formal notification of our intent to accede soon. This agreement will give huge opportunities for British business to export more goods. We already export more goods to the CPTPP countries than to China. For example, 95% of goods are tariff-free under the agreement, and the strong data and digital provisions will really help British tech firms.
Dr Rupa Huq (Ealing Central and Acton) (Lab) [V]
Elizabeth Truss
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, my right hon. Friend the Member for Surrey Heath (Michael Gove), is running the Brexit business taskforce to ensure that the additional processes required of businesses are clear and to give businesses the support they need to be able to trade in the new environment.
Caroline Ansell (Eastbourne) (Con) [V]
Duncan Baker (North Norfolk) (Con) [V]
Elizabeth Truss
The trade deals that we have secured are worth £885 billion of trade. What trade means is jobs. It means opportunities for firms to export abroad. It means strong supply chains for businesses across the United Kingdom. The FTAs that we have secured mean that UK traders will continue to enjoy preferential access to trade that covers 63% of UK trade. In the case of our deal with Japan, that deal goes further and faster, and that will bring more benefits to our tech companies, to our food and drink industry and, of course, to our fantastic creative industry.
Daniel Zeichner (Cambridge) (Lab)[V]
Elizabeth Truss
I observe to the hon. Gentleman that Japan has data adequacy with the EU and it is also part of the comprehensive and progressive trans-Pacific partnership, which has a strong digital and data chapter. So it is absolutely reasonable that we should be able to have both and be successful.
Tom Hunt (Ipswich) (Con)
Kevin Hollinrake (Thirsk and Malton) (Con) [V]
Elizabeth Truss
We are working very hard to de-escalate that tariff conflict and reach a negotiated settlement. I have been in discussions with the US and the EU and I will take up the matter on an urgent basis when the new US trade representative is confirmed in due course.
Ben Everitt (Milton Keynes North) (Con)
Global Britain
Elizabeth Truss Excerpts(3 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for International Trade (Elizabeth Truss)
I beg to move,
That this House has considered Global Britain.
I am delighted to open this debate on global Britain when, for the first time in 48 years, we now have full control of our trade policy. Back in 1846, Richard Cobden inspired people in Manchester with his belief that free trade would be
“the greatest revolution that ever happened in the world’s history…drawing men together, thrusting aside…antagonism…and uniting us in the bonds of eternal peace.”
That revolution continues today, as for the first time in nearly half a century we are a sovereign trading nation free to pursue British interests while promoting British values. Our newly independent trade policy will create jobs, grow our slice of the global pie, and unlock great swathes of the world to the best of Britain.
As we recover from covid-19, we need to think radically about how we generate economic growth and how we are going to use our new global platform in 2021 to promote free and fair trade—how we are going to take on those countries that try to cheat and to undermine free enterprise. In 2020, we negotiated trade agreements covering 63 nations and the European Union, and in 2021 we will use this year, including our presidency of the G7, to champion free and fair trade in an era rife with pernicious practices. We will promote modern rules that are relevant to people’s lives for digital and data trade. We will champion high environmental and animal welfare standards in a science-led approach, and we will push for modernisation of the World Trade Organisation and trade agreements to reflect our values of free enterprise and fair play. We will also build an advanced network of trade deals, from the Americas to the Indo-Pacific, with the UK at its heart as a global services and technology hub. We have already reached deals covering 63% of UK trade, well on our way to our manifesto target of 80% in three years. We want to hit that target and to deepen our existing relationships in areas such as services and technology.
Exports are equivalent to nearly a third of our national income. Trade equals jobs. A job means independence and security, the realisation of our dreams, funding public services and the future prospects of our country. The deals we have done with the EU and our partners across the world, from South Africa to South Korea, mean that our traders continue to enjoy preferential access to world markets.
We have secured arrangements with Turkey that mean that Ford in Dagenham can continue to export its engines tariff-free. We have secured access to the Canadian market for our beef producers, such as the Foyle Food Group in Northern Ireland. We have secured tariff-free access into Mexico for our car exporters such as Jaguar Land Rover, while Scotch whisky—one of our biggest exports—continues to enter markets such as Singapore tariff-free and stays recognised.
All in all, this adds up to £885 billion of trade that we have secured. In addition, we have been able to go further and faster in our deal with Japan, protecting the free flow of data, which benefits industries such as FinTech and computer gaming, regulatory dialogue on financial services and improved mobility provisions, including allowing spouses to travel with businesspeople. We have secured additional protections for our fantastic creative industries, from music to TV, and recognition for geographical indications across the UK, from Welsh lamb to Scotch beef, from Armagh Bramley apples to English sparkling wine, subject to Japanese domestic processes.
This platform allows us to step up this year to show our full potential as president of the G7 and as an independent trading nation. At the G7, we will work to reform the World Trade Organisation, make progress on data and digital trade and promote greener trade. Our new UK global tariff will see around 57% of our imports entering our market tariff-free—more than the 44% that we had under the EU.
Mr Tobias Ellwood (Bournemouth East) (Con)
My right hon. Friend is making a powerful start to promoting global Britain. She speaks of the G7 and the opportunity for us to make our mark in the world. Does she believe that now is the right time to move from the G7 to the G10, and to include Korea, India, and Australia? That would represent over half the world’s GDP in order for us to start looking at the challenges that we face of updating the United Nations, NATO and the WTO, and to make sure that we are in a position to offer a counterweight to China.
Elizabeth Truss
My right hon. Friend makes a very powerful point. Allies such as Australia, South Korea and India will be key to forging that group of democratic nations who can stand up for democracy, human rights and fair and free trade, and, of course, we are very committed to working with them this year.
Our new global tariff, as I said, will eliminate tariffs on more than 57% of imports. In particular, it will eliminate tariffs on 100 environmental goods. In short, our new tariff regime is lower, simpler and greener.
Furthermore, we will be working with our friends and family across the world to drive forward free and fair trade, setting the global standard for trade in the 21st century. We are already in deep negotiations with the United States, Australia and New Zealand, and, this year, we will apply to one of the most dynamic trading areas on earth—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Joining is part of our plan to grow our economy by making it far easier for British goods to reach our friends in Asia and the Americas. This high standards agreement would align the UK with some of the world’s fastest growing economies in a free trade area covering nearly £9 trillion of GDP. We will also deepen our relationships with countries such as Canada, Mexico, South Korea and Israel. As well as this, we are working closely with India, the world’s largest democracy, on an enhanced trade partnership, reflecting our mutual interest in technology and innovation. We are also in talks with Brazil and our allies in the Gulf.
Christian Wakeford (Bury South) (Con)
While we are talking about the real opportunities for growing Britain’s trade power across the globe and while my right hon. Friend has touched on the aspect of Israel and the Gulf, let me say that we have rightfully been world leaders in soft power and aid during many generations and this should continue, but that we also need to lead in terms of diplomacy. Will she look at taking this back to the Cabinet to consider what we can be doing to expand the Abraham accords to bring not only peace to the middle east, but further trade and aid to that location as well?
Elizabeth Truss
My hon. Friend makes an excellent point. He is right that trade is the key not just to prosperity, but to peace and co-operation between nations. I want to reassure the House that we will ensure that no country is left behind without the benefits of free and fair trade with the United Kingdom. Later this year, we will be launching an emerging markets trade scheme, which will offer the lowest-income countries a better deal when they are trading with the UK. It will be more generous than the EU scheme and it will help those countries on to the ladder towards prosperity through the enterprise and ingenuity of their people.
We want to encourage British businesses to take advantage of all the opportunities that we have either negotiated or are negotiating. Therefore, we will be loudly and proudly championing exports in key industries from food and drink to services in technology trade. We have a network of trade advisers across the country ready to help our businesses go global and they can be proud to put the Union Jack on their pack, which is one of the most recognised symbols in the world. With our great campaign, we are showing partners worldwide that Britain is ready to trade. In December, the Prime Minister launched our new Office for Investment under the leadership of Lord Grimstone. It will work tirelessly to secure investment in every nation and region across Britain, backing jobs and livelihoods. More than 56,000 new jobs were created last year through foreign investment in the UK, with a further 9,000 others secured. We will also be founding our first new free ports, which will drive enterprising growth in port cities and towns across the country as we turbo-charge trade across the world.
Of course, many are sceptical about globalisation and the benefits of trade. One reason why they are sceptical is that too many unfair practices and cheating have been allowed to undermine real free trade. That is why we are establishing the Trade Remedies Authority, headed by Oliver Griffiths, to protect UK industries from unfair practices. It is not right, for example, that ceramics manufacturers in Stoke-on-Trent can be undercut by goods subsidised by state-owned enterprises, that our innovators can have the fruits of their work taken under forced technology transfer, and that goods can come into this country that have been produced through forced labour in abhorrent conditions. That is why we are pushing the World Trade Organisation for greater transparency and reform of the rules, and by joining CPTPP, with its ambitious digital and data provisions and clear rules, we will pile further pressure on the WTO to reform.
As an independent trading nation, we are setting our own path and rejecting the twin errors of values-free globalisation and protectionism.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
One thing that incentivises and encourages younger people in our country is their determination to help third world countries that are not as well off as we are. The spending of the Department for International Development has historically been very important, but I very much hope that the Minister will start to explain to the electorate the huge advantages that third world countries will now have as a result of our lowering tariffs on the sort of products that we cannot produce here in the United Kingdom.
Elizabeth Truss
My hon. Friend is right that, of course, the UK global tariff has lower import tariffs than the common external tariff of the EU, but we are going to go even further than that with our new emerging markets trade scheme, which will offer more preferential rates for the lowest-income countries in the world to help their populations trade their way out of poverty, and I agree with him that that is a really important way in which we can bring more prosperity to the world.
As I was saying, we now have the opportunity to set our own path by rejecting the twin errors of values-free globalisation and protectionism. Instead, as the United Kingdom, we are rooting our approach in the fundamental values of sovereignty, democracy, the rule of law and a fierce commitment to high standards. That is why we are bringing together a coalition of like-minded nations to advance high standards worldwide—from food and animal welfare to the environment and data. With fellow democracies such as Japan and Canada, we are championing innovation, a cleaner planet, women’s economic empowerment and much more. We have demonstrated this through the fantastic deal we have struck with the EU to ensure we can keep trading freely with zero tariffs and zero quotas, alongside deals covering 63 countries. No other nation has ever negotiated so many trade deals simultaneously, and I am proud of the results we have achieved.
At this tough time, we need to embrace our future as a confident, optimistic and outward-looking global Britain, delivering jobs and prosperity at home while helping lead the fight for free and fair trade abroad. My hope is that all sides of this House can join me in celebrating how far we have come and the huge opportunity we have in 2021, striking deal after deal with our friends and family worldwide to support our values and full economic potential. This is global Britain in action.
Mr Deputy Speaker (Mr Nigel Evans)
Before I call Emily Thornberry, I would like to indicate that all Back-Bench contributions will have a time limit of three minutes.