UK’s Future Trading Relationship with Australia: Update on Negotiations
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The third round of free trade agreement negotiations with Australia took place between 23 November and 4 December. During the two weeks, negotiators completed 46 discussions, spanning the breadth of the free trade agreement.
For every area, text was shared before the round. Both sides continued to have detailed textual discussions, and negotiators are now in the process of consolidating texts in several chapter areas. These include digital, telecommunications, customs, rules of origin, procurement, and cross-cutting provisions such as dispute settlement. Discussions in these chapters indicated areas of common understanding, where progress could be made.
We held detailed technical discussions on text in areas such as investment, professional business services and financial services, including on regulatory co-operation. Across all areas of the free trade agreement negotiation, we identified areas of convergence and some areas of divergence. Both sides are regularly engaging with domestic stakeholders to ensure our respective proposals are informed by their views.
Both sides exchanged their initial goods market access offers before the round. This exchange of goods market access offers is an early milestone, and the speed at which this stage has been reached demonstrates the momentum behind these negotiations. Discussions on market access will continue in parallel with discussions across the free trade agreement.
During the negotiations, the Secretary of State for International Trade had a call with Senator Simon Birmingham, and they agreed on the need to maintain momentum ahead of the next round.
After this round we have agreed to a number of intersessional discussions to ensure the pace is continued heading into the next round.
Below is a summary list of those 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
Goods
Good regulatory practices
Government procurement
Innovation
Investment
Intellectual property
Labour
Legal and institutional provisions
Telecommunications
Trade remedies
Rules of origin
Services, including movement of natural persons, professional business services, international maritime transport services and delivery services
Small and medium-sized enterprises
State owned enterprises
Sanitary and phytosanitary measures
State-to-state dispute settlement
Technical barriers to trade
Transparency
Trade and women’s economic empowerment
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 NHS.
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Free Trade Agreements: Transparency and Scrutiny Arrangements
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I am today setting out transparency and scrutiny arrangements for our new international trade deals with the United States, Australia, New Zealand and for the UK’s proposed accession to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP). This includes a clear statement of intent by the Government and reflects our commitment to transparency and effective scrutiny of our trade agenda. Furthermore, my Department will continue to work closely with the International Trade Committee and the International Agreements Sub-Committee to review these intentions.
We have committed to publishing the objectives for new free trade agreements and scoping assessments at the outset of negotiations. The Government led a comprehensive public consultation before commencing its negotiations with Japan, the United States, Australia and New Zealand. Just as happens in the Canadian, Australian and New Zealand systems, the Government have kept Parliament updated on negotiations as they progress, including close engagement with relevant Select Committees.
The Government will continue to keep Parliament and the public informed of progress for these negotiations through the publication of “Round Reports”. The Government will also continue to hold regular briefings for parliamentarians so that they are kept informed and can ask questions of Ministers. We will work constructively with the relevant Select Committees to keep them apprised of negotiations, including through public and private briefings with Ministers and chief negotiators.
The Government have further built on commitments to transparency and scrutiny through the recent announcement of the extension of the Trade and Agriculture Commission. The Trade and Agriculture Commission will now be placed on a statutory footing in the Trade Bill. It will provide advice on the impacts on farming and animal welfare arising from these new free trade agreements before they are laid in Parliament, under the Constitutional Reform and Governance Act 2010 procedure.
In addition, the Government will work with the International Trade Committee and International Agreements Sub-Committee to ensure they have treaty text and other related documents or reports on a confidential basis, a reasonable time prior to them being laid or deposited in Parliament under the Constitutional Reform and Governance Act procedure. This is to enable the Committees, should they decide to do so, to produce a report on these new free trade agreements. As with the Japan agreement, this will provide parliamentarians with an additional reference point on which to scrutinise what we have negotiated.
When a signed treaty text is laid in Parliament, it will be accompanied by an explanatory memorandum and the Government will publish an independently verified impact assessment which will cover the economic and environmental impacts of the deal. Parliament will then have 21 sitting days to scrutinise the deal. Should the International Trade Committee or International Agreements Sub-Committee recommend a debate on the deal, the Government will seek to accommodate such a request subject to parliamentary time. The Government want these agreements to be examined by parliamentarians and effectively scrutinised.
Widespread prior consultation and the publication of detailed impact assessments and objectives upfront allow informed debate at the start of the negotiations. Extensive stakeholder engagement on the detail of the negotiations as they proceed, and confidential briefing of relevant Committees, combined with the confidential sharing of text at the end of negotiations mean the Government will have provided Parliament with the information to provide effective scrutiny at all stages of the negotiations. This approach to transparency and openness to scrutiny by Parliament and other stakeholders is at least as strong as any other Westminster-style democracies such as Canada, Australia and New Zealand.
These arrangements are appropriate to the UK’s constitutional make-up and separation of powers. Ultimately, if Parliament is not content with a trade deal, it can raise concerns by resolving against ratification and delay any implementing legislation indefinitely.
This Government are committed to ensuring that no trade deal undermines key industries or lowers standards for consumers. The Government are concluding free trade agreements that benefit all parts of the UK by creating opportunities for our world-leading industries, and maintaining high standards while increasing choice for consumers.
To ensure that the arrangements set out today remain fit for purpose and enable the International Trade Committee and the International Agreements Sub-Committee to conduct their important scrutiny role effectively, the Government will work with the Committees to review further the detail behind these arrangements. For trade agreements beyond the scope of this statement, the Government will always ensure that the appropriate transparency and scrutiny procedures are put in place and will provide further clarification at the appropriate time.
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UK-Japan Comprehensive Economic Partnership Agreement
Elizabeth Truss Excerpts(3 years, 5 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I beg to move,
That this House has considered the UK-Japan Comprehensive Economic Partnership Agreement.
I am delighted to open this debate on the UK-Japan comprehensive economic partnership agreement, otherwise known as CEPA, in a landmark moment for our national trading history. This is the first debate we are having on a new trade deal since our departure from the European Union. This is the first time we have been able to have such a discussion in the House of Commons for nearly 50 years. It was not possible when Brussels represented us in trade negotiations, but things have changed. We now have a deal directly negotiated between London and Tokyo, and the whole House will be glad to know that this will be the first of many debates about our independently negotiated trade agreements. There will be more to come as we pursue gold-standard deals with Canada, the United States, Australia, New Zealand and South Korea.
John Spellar (Warley) (Lab)
The right hon. Lady is right in one respect, but we have had many debates recently on trade deals. Indeed, we had a veto on those trade deals between the EU and other partners, and views were expressed. I suspect that we were on the same side on the Canada and Singapore trade deals. We have had those debates. This should be about the principles of trade, rather than just the niceties of whether we are in or out of the EU.
Elizabeth Truss
I observe that the right hon. Gentleman did support many of those deals. I afraid that the same cannot be said for most of the members of his party, who did not support, for example, the Japan trade deal when it previously went through the House. We are in a completely different position. From 1 January next year, we will be operating our own independent trade policies, we will be setting our own tariffs and we will be operating our own trade agreements. That is a huge step forward for the UK as an independent trading nation. Next year, we will be talking about our accession to the comprehensive and progressive agreement for trans-Pacific partnership, but today we are here to talk about Japan.
The UK-Japan agreement is a British-shaped deal going further and faster than the EU deal in areas such as data and digital, services, advanced manufacturing and food and drink. The deal has been welcomed across the board, from the CBI to techUK and the National Farmers Union. It was even welcomed by the Labour party—although rather tepidly and although Labour did not actually vote for the original Japan deal.
The deal is estimated to add over £15 billion in trade to our already growing trading relationship with the third largest economy in the world. We expect it to be even more. We have asked Professor Tony Venables from Oxford University to lead a review of our future modelling to ensure that it accounts for our world-leading digital and data trade. The United States recent study of its deal with Mexico and Canada found that the biggest economic benefit of that deal came from the provisions on digital trade, and we are confident that this is the case for the agreement with Japan, which is why we want to better quantify the benefits of future free trade agreements.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
On the quantification of future benefits, of course the Secretary of State has given us the most advantageous figures that she has, which are about what trade would have been if we were out of the European deal. The reality is that for businesses on the ground very little will change between the end of this year and the beginning of January, and the reality is that the quantifiable benefit she talks about is actually a maintaining of the status quo, is it not?
Elizabeth Truss
The reality is that if we had not negotiated this deal, we would have reverted to trading on World Trade Organisation terms with Japan and businesses on both sides would have faced tariffs and barriers to trade. But we have gone further than just continuity with this deal, and I am about to tell the House exactly how that is the case. This deal is better and more valuable than the Japan-EU deal, which is otherwise known as the JEPA, because in simple terms the CEPA is deeper than the JEPA. It goes further and faster in areas of in vital importance to the United Kingdom economy.
On digital trade, we are protecting source code, enabling the free flow of data while agreeing a ban on data localisation, saving companies the cost of setting up servers in Japan. Our textile and confectionery manufacturers will benefit from more liberal rules of origin, making their goods more competitive by allowing up to £88 million of UK exports to benefit from reduced duties. Our creative industries will have their brands and innovations protected, as we go beyond the EU in tackling the online infringement of intellectual property rights. Our fantastic food and drink producers will benefit from increased protection for iconic goods, as around 70 geographical indications, 10 times as many as before, will be protected in Japan, subject to their domestic processes next year.
Our services industry will have more regulatory co-operation, safeguards on data storage and greater flexibility to move talent across the world.
This is clearly a more British-shaped deal, and it delivers more benefits to the UK than the previous deal. Some Opposition Members have asked for a precise economic assessment of this difference, but in our Command Paper we agreed to assess our deals, not the deals of other countries or trade blocs, and I am not going to waste the time of Department for International Trade economists by asking them to assess deals that are clearly inferior to the one that we have secured.
This is a deal that will benefit every part of the United Kingdom. It delivers for our farmers and businesses, and it delivers for Japanese investors such as Nissan, Toyota and Hitachi, supporting thousands of jobs across the United Kingdom.
Andrew Griffith (Arundel and South Downs) (Con)
Does my right hon. Friend agree that, in addition to all the opportunities she lists, this deal is a fantastic opportunity for the growing and sustainable industry that makes British sparkling wine across 770 vineyards in the United Kingdom? It employs 10,000 people today, and is on a journey to increase its exports and could potentially employ 20,000 or 30,000 people in the future. By securing important geographic indicators, my right hon. Friend has unlocked that opportunity for us all.
Elizabeth Truss
My hon. Friend is a doughty champion of English sparkling wine and knows that this will be one of the geographical indicators that goes through the domestic process early next year, to be registered in Japan and recognised in Japan, and who knows how long it would have taken under the EU, because under its deal, it has to negotiate every new indicator. We have got agreement on those 70 indicators through the process, and the only circumstance under which English sparkling wine would not qualify is if English sparkling wine were produced in Japan, and I do not believe that to be the case.
This deal aligns with our high environment, animal welfare, labour, data and food safety standards, and it helps to position the United Kingdom as the world’s hub for services in tech trade and establishes us as a major force in global trade. Following Japan’s economic push on womanomics, we have also signed an entire chapter on women’s economic empowerment to help female entrepreneurs in both our nations—another chapter that was not included in the EU deal.
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
I do not want to rain too much on the Secretary of State’s parade, but she will be aware that, according to the British Government’s own figures, the Welsh economy will grow by only 0.05% over 15 years, based on a WTO baseline, as a result of this deal. Also, the British Government’s policy of leaving the single market and the customs union means we will need over 70 deals to make up for that loss, and if we have no deal that figure will be considerably worse.
Elizabeth Truss
This deal is worth at least £15 billion in extra trade, not including the trade that was already increasing between our two nations, and there are significant benefits for Wales, including the recognition of Welsh lamb as a protected geographical indicator as well as more opportunities for manufacturing industries.
Craig Williams (Montgomeryshire) (Con)
I cannot help but stand up when I hear the words “Welsh lamb”. It is a wonderful GI that I know the Secretary of State is working to protect. On Japanese business, Wales saw Japanese trade increase in 2018 by £250 million. That is a 25% increase, and this deal will solidify that. I normally work with the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) and welcome what he has to say, but I think that this deal really is terrific for the Welsh economy.
Elizabeth Truss
We had a major success in 2019 when we gained access for British lamb into the Japanese market, and, of course, one of the products that is flowing into Japan is our fantastic Welsh lamb.
This agreement is not just about economics, but about our close relationship with Japan and the Japanese. Together we are helping to set the standard for trade in the 21st century. That does not come as a surprise, because our relationship with Japan is deep and long standing. Way back in 1613, King James I concluded the UK’s first trade agreement with Japan. Under Queen Victoria, a treaty of peace, friendship and commerce was signed in 1858. We see that friendship endure under Japan’s current Emperor Naruhito, who has written fondly of his time studying at Oxford. We continue to benefit from Japanese commerce after Margaret Thatcher opened the door to new investment from companies such as Nissan, supporting local jobs and communities.
Aaron Bell (Newcastle-under-Lyme) (Con)
A fortnight ago, I was delighted to receive an email from the embassy of Japan, informing me that my constituency of Newcastle-under-Lyme will receive 30 of the cherry trees that it agreed to donate to the United Kingdom. That was agreed in 2017, as part of the prosperity agreement, but it is a real symbol of what we are now doing with Japan in this trade deal. I compliment the Japanese Government and my right hon. Friend’s Department for all they have done.
Elizabeth Truss
I thank my hon. Friend. Our relationship with Japan is going from strength to strength. Japan and the United Kingdom are two great island nations, but we are not insular in our embrace of freedom, democracy, human rights and free trade, and we will be working together when the UK has the presidency of the G7 next year to advance on all these fronts and to champion much-needed reform of the global rules for services and digital trade.
Next year, Japan will chair the comprehensive and progressive trans-Pacific partnership, a high-standards agreement that promotes the values that we believe in for rules-based free trade. The CEPA secures Japan’s support for our joining that club and will provide further market access under that agreement. This agreement will turbocharge our trade with dynamic members from Canada and Australia to Chile and Peru. The CPTPP is more than the sum of its parts, because we gain access to a free trade area with common standards and rules of origin, which means flexibility and opportunities, but, unlike with the EU, we retain control of our borders, our laws and our money.
This huge gateway to the Pacific region will help us unleash our potential as a global hub for services and technology trade. On joining CPTPP, global Britain would have unprecedented and deep access to markets covering 13% of the world’s GDP, which equates to more than £11 trillion in some of the world’s fastest growing markets. If we add in the US, this would amount to over 40% of the world’s GDP, which equates to more than £27 trillion.
Catherine West (Hornsey and Wood Green) (Lab)
The Secretary of State is very generous in giving way. As a member of the all-party group on Japan, I agree with some of the things that she is saying, but does she agree that, in principle, it would be much better if we had more scrutiny in advance of votes on trade deals, so that we can have this kind of debate rather than having it post facto?
Elizabeth Truss
I will come on to the issue of scrutiny later in my speech, but we committed in our Command Paper to produce a scoping assessment, which we did. We have produced our objectives and there are opportunities for them to be scrutinised through the International Trade Committee, and that has been happening during the process. There will be full opportunity for a debate afterwards. This puts us in a very strong position compared with comparative parliamentary democracies, and of course I welcome the opportunity to debate issues such as CPTPP during the accession process next year.
Today’s debate is truly historic, as trade policy is once again a matter for the United Kingdom and for this House. It is part of our new system of proper scrutiny, of which I am delighted to be a part. Parliament will rightly have the final say on the ratification of this deal. I am very grateful for this report from the International Trade Committee, which has made clear the desire for a debate. We will shortly be introducing an amendment to the Trade Bill, which will write the role of our vital Trade and Agriculture Commission into law, again giving independent advice to Parliament on trade and agriculture.
Neil Parish (Tiverton and Honiton) (Con)
I, too, thank the Secretary of State for putting together the continuation of the Trade and Agriculture Commission and setting it up as an expert group for the next three years, because it will be very important, as we move forward to deal with Australia and others, that we really drill down on the way that agriculture is done and food is produced to keep our high animal welfare standards in this country.
Elizabeth Truss
I am delighted that my hon. Friend welcomes the putting of the Trade and Agriculture Commission into statute, which will be done through the Trade Bill. We need to make sure that farmers are engaged, businesses are engaged and our whole country is engaged in these trade agreements because we are doing them to benefit the United Kingdom—to make sure that every part of this country is helped to thrive. We are lowering barriers to trade and creating—
Elizabeth Truss
I have already given way to the hon. Gentleman and we have a limited amount of time for this debate.
Andrew Bowie
On benefiting the whole country, we have yet to mention Scotland and Scottish produce. I am delighted that under this agreement we will see increased numbers of products that are geographically protected, with Scotch beef and Scotch whisky added to that list. The trade between Scotland and Japan is incredible. It dwarfs even Wales, with £500 million-worth of trade between Scotland and Japan last year, and this is only set to grow under the incredible deal that has been negotiated by my right hon. Friend.
Elizabeth Truss
My hon. Friend mentions some of the benefits from the Japan deal. Of course, there are also measures to protect the Scotch whisky industry from counterfeiting in Japan. I know that was very strongly welcomed by the industry when we announced the results of the Japan trade deal.
Charlotte Nichols (Warrington North) (Lab)
The Secretary of State will know that applications for new food geographical indicators through the Japanese Ministry of Agriculture take, on average, five months and had a success rate of only 15% last year. Can she tell us the equivalent figures for new alcohol applications?
Elizabeth Truss
I can tell the hon. Lady that we have agreed with the Japanese that our 70 geographical indications will go through the process and, unless there is some objection by a producer in Japan producing exactly the same product, those procedures will be successful.
As I said, I am grateful for the report from the International Trade Committee, which made clear the desire for a debate. We will shortly be introducing the amendment that I mentioned earlier.
The House will now understand why on signing this deal in Japan, the land of the rising sun, I hailed the dawn of a new era for free trade. Days ago, we struck a vital continuity deal with Canada, which means that we have now secured 89% of the value of UK trade with continuity countries and with Japan, which goes further. These 53 countries cover £164 billion-worth of trade. No other country has conducted so many trade negotiations simultaneously and delivered. We have achieved this by being prepared to stand our ground and to fight hard for Britain’s interests.
I am very confused about Labour’s approach to these deals, which seems to veer between complete capitulation and a refusal to sign any deal. I read that the right hon. Member for Islington South and Finsbury (Emily Thornberry) will not vote for any deal we get with the EU, but apparently she does not agree with her leader on this matter. She has told us before that she would not sign any trade deal with the US, yet she seems prepared to do a deal at any price with everyone else. The Opposition have attacked us for not rolling over trade deals that they did not vote for in the first place. They criticise us for not engaging with countries that refuse to come to the negotiating table, and then they repeat the media lines of foreign Governments. Do they understand how negotiations work? I do not think they do.
Let us be honest: negotiating trade deals in a pandemic is not easy, but I am incredibly proud of our team, who have been negotiating in video conferences and phone calls round the clock, and they have got the job done. Just today, long before Parliament opened this morning, our negotiators were deep in talks with Australia, which are now on to their third round. After the House rises this evening, I will be speaking to my New Zealand counterpart about the next round we are about to undertake. This is just the start for global Britain. We are back out there, making the case for free trade and helping to reshape global trading rules. Our deal with Japan is vital for our economic recovery. It will drive jobs and prosperity across every nation and region of the UK, ensuring a brighter future for the British people. I commend this agreement to the House.
Emily Thornberry
I will rattle through a bit of my speech, because I have the beady eyes of Madam Deputy Speaker on me. Once I know I am definitely halfway, I will take interventions.
The same situation with Opposition day debates is set to be true of the continuity agreements recently reached with Ukraine, the Ivory Coast, Kenya, Canada and, of course, the 11 other continuity agreements that the Government still need to secure in the next five weeks—or 14, if we are still counting Algeria, Bosnia and Serbia.
In other words, the process for parliamentary scrutiny and approval that the Government are relying on for our future deals as an independent trading nation is failing repeatedly at the very first hurdle, through the denial of Opposition day debates. I therefore greatly welcome the Secretary of State’s decision to grant this debate and vote in Government time, and hope that she will amend the Trade Bill, because she will now have realised that this simply will not do; the right to debate and approve future trade agreements should be a matter of law, not just a matter of discretion. That brings me to the main theme of my remarks: the importance of the Japan agreement as a precedent for other trade deals to come, in terms of both substance and the way in which they are presented to the world.
Let me start with some of the positives. I welcome the Secretary of State’s dedicated chapter on the role of women in our economy. That is definitely an important precedent. I hope that her friend Tony Abbott will study it closely to appreciate that female empowerment means more than just plugging in the iron. I welcome the new ground broken in this agreement on trade in digital services and data—a vital area of future growth for exports and investment—and hope that the Government’s stated principles, particularly on net neutrality, will be precedents for our future trade deals with Australia and the United States. But I am afraid that there are many other areas in which I hope that the Japan deal does not set a precedent.
Beyond digital, there is a disappointing absence of any new measures to support the vital role of Japanese companies as investors in our economy and creators of British jobs—something that is especially important in the current climate, as we look to safeguard the jobs provided by companies such as Nissan. There is also a lack of any new, enforceable commitments on climate change and the environment. That is another wasted opportunity and one that does not bode well for the ongoing negotiations with Australia. There is the absence of any progress on workers’ rights, coupled with the failure to consult trade unions on the deal, as well as the rolling back of commitments on civil society dialogue. I am afraid that this is all consistent with a Secretary of State whose official trade union advisory group contains just four members, one of which is the British Medical Association.
When it comes to deeply unfortunate precedents, there is also the sheer extent to which the Secretary of State has exaggerated, oversold and misrepresented the benefits of a UK-Japan deal compared with the EU-Japan deal that it replaces. Let us take a single example: agriculture and food. She tells us that 70 new British products will be protected by GI status thanks to her deal, but that will only be true if they are approved by Japan’s Ministry of Agriculture—a process that takes at least five months and which resulted in the rejection of 85% of applications last year. She tells us that our farmers and food producers will benefit from lower Japanese tariffs, but that will only be true if they are exporting to Japan ostrich feathers, dried eggs or 180 proof alcohol, which none of them currently does.
The Secretary of State tells us that we will benefit from continued access to the EU tariff rate quotas for exports to Japan of products such as soft cheese and cake mix, but that will only be true if the EU does not use up those quotas itself. She tells us that British farmers will have access to Japan’s quota for imports of malt, which, I am delighted to tell colleagues, is true. It is true! But she did not mention that it is actually a global quota to which every farmer in the world has access—so I do not know why she is looking so pleased with herself—and which can be withdrawn by Japan at any time. Finally, her Department’s Twitter feed tells us—during an episode of “The Great British Bake Off”, no less—that imports of Japanese soy sauce will be cheaper, which, as thousands of people pointed out, is not true in the slightest.
In one area after another, the spin from the Secretary of State and her Department does not match the substance, and her concern for how the deal will be presented appears to be more of a priority than the deal that she will actually deliver. That is a hugely damaging precedent, and one that I hope will not be followed—for example, in the Canada deal signed last weekend—particularly when it comes to our cheese exporters. After all, if it is the case that, like the Japan deal, we will only get access to the EU’s quota on exports of cheese to Canada if the EU has not used up the quota itself, that is deeply worrying for our dairy industry.
Elizabeth Truss
I assure the right hon. Lady that we have access to the EU reserve on equal terms with the EU.
Emily Thornberry
So there is a cake of a certain size—the tariff quota—and the EU and Britain will have access to that cake. Who gets what bit first? What happens if the EU gets the cake first—what does Britain do then? Is it first come, first served? Or is the cake already cut up in pieces? I wonder whether the right hon. Lady could help us with that.
Elizabeth Truss
I am happy to furnish the right hon. Lady with a letter about the details of the licensing procedures, but it is important to understand that, in a situation different from that for the tariff rate quota with Japan, the UK reserve is applied for on an equal basis with the EU.
Emily Thornberry
Given the time, I will with your leave, Madam Deputy Speaker, take some other interventions at this moment, as I am halfway through my speech.
Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 5 months ago)
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Antony Higginbotham (Burnley) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Our deal with Japan secures opportunities for businesses in the north-west, which currently export goods worth £380 million to Japan. We have agreed an SME chapter that will make it easier for SMEs to cut the red tape on customs and ensure they have access to a dedicated website of opportunities.
Antony Higginbotham
Burnley has a significant engineering sector, creating highly specialised parts for aircraft and cars, so will my right hon. Friend tell us what impact the UK-Japan deal will have on those businesses in Burnley?
Elizabeth Truss
My hon. Friend is absolutely right that the aerospace and automotive industry is incredibly important for Burnley. That is why it was important that we saw all the tariff benefits that were previously negotiated retained in the new deal, as well as additional benefits, such as a new data and digital chapter that goes far beyond what the EU has agreed and really helps to support our advanced manufacturing sector.
Emily Thornberry (Islington South and Finsbury) (Lab)
The Secretary of State has repeatedly claimed that the deal that she signed with Japan goes far beyond the original EU-Japan deal, so I return to the question that I asked her two months ago: will she tell us, in billions of pounds and percentages of growth, what the forecast benefits are for UK exports in GDP from her deal, compared with the forecast benefits of retaining the existing EU-Japan deal?
Elizabeth Truss
It is interesting that the right hon. Lady is interested in the difference, because the Labour party did not support the original deal with Japan. If it was down to Labour, we would not even have this deal in the first place. We have been very clear about the additional benefits that we have secured: better provisions on digital and data, better provisions on business mobility, a better position on intellectual property, better protection of British geographical indicators—[Interruption.] The hon. Member for Sefton Central (Bill Esterson) is shouting, “How much is it worth?” from a sedentary position? Why, when we have left the EU, do Labour Members constantly seek to compare us with the existing EU provisions? It is almost like the Labour party never wanted us to leave in the first place.
Emily Thornberry
What is going on? The Secretary of State claims that the UK-Japan deal goes far beyond the EU-Japan deal but will not quantify the difference. Why not? If she will not publish the exact figures at this point, will she at least do one basic thing and simply state on the parliamentary record whether the growth in our exports and GDP is forecast to be higher as a result of the UK-Japan deal than it was under the EU-Japan deal?
Elizabeth Truss
I think it is extraordinary that the right hon. Lady is asking me to carry out economic analysis on behalf of the EU. She has not asked me about the Australia-Japan deal and whether that is better or about the deal that China has with Japan or any other deals. Why is she me asking me about the EU? We have left the EU, and it is no longer our responsibility to do economic calculations for it. I have been clear, however, that this deal goes further and faster and brings in additional economic benefits.
Mr Steve Baker (Wycombe) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
We are determined to reach a deal with Canada before the end of the year. It is a fellow G7 member and one of the top 10 economies in the world. It will help our trade, from cars to beef, fish and whisky, in a trading relationship already worth £20 billion.
Elizabeth Truss
What we are negotiating at the moment is the vital continuity agreement, but I do hope that, in the future, as Canada is a member of the trans-Pacific partnership that has advanced chapters in areas such as data and digital, we will be able to go much further and build a much deeper relationship.
Gareth Thomas (Harrow West) (Lab/Co-op)
With just days to go, and with not just this continuity agreement still to be completed, British exporters such as our car manufacturers simply do not know whether they will face tariffs potentially as high as 20% in markets as diverse as Mexico and Vietnam and beyond. Is it not the truth that the Secretary of State has focused too much of her time chasing new deals with the Trump Administration and others and taken her eye off protecting the free trade that we already have?
Elizabeth Truss
The Government have completed trade deals with 52 different countries covering £146 billion-worth of trade. That is a massive achievement. Unlike the Labour party, we are not prepared to agree to any deal put on the table; we will work hard to get a deal that is in Britain’s interests. There are deals ready to go with the countries the hon. Gentleman has mentioned, but I am not prepared to do a bad deal to push things forward. We are pushing all those deals forward, and we are making good progress.
Mark Eastwood (Dewsbury) (Con)
Matt Western (Warwick and Leamington) (Lab)
The Secretary of State for International Trade (Elizabeth Truss)
We have made good progress on our US deal, agreeing the majority of text and the majority of chapters. We are working with both sides of the House in the US for a deal that benefits both our two nations.
Andrew Gwynne [V]
But if the Secretary of State’s global Britain is to mean anything, we must not put all our eggs in one basket. I think it fair to say that, in recent times, the Secretary of State has bet everything on securing a trade deal with the Trump Administration. She might want to conclude a deal with Canada, but the Prime Minister there said that the Secretary of State had lacked the “bandwidth” to focus on getting a deal with his country. Does she intend to ignore that criticism and continue making a deal with the US her dominant priority? If so, what confidence does she have that the Biden Administration will feel the same way in terms of their own priorities for trade?
Elizabeth Truss
We have now secured trade deals with 52 countries. We have secured a deal with Japan that goes beyond and above the EU’s agreements, we are working on accession to the trans-Pacific partnership and we are negotiating with Australia and New Zealand, so we are by no means entirely focused on the US, but it is our largest single country trading partner. I am always struck by the anti-Americanism among Opposition Members. They simply do not understand that these deals are incredibly important for British business. As for the comments from overseas Governments on our trade negotiations, it is interesting that Labour Members simply like to repeat their “lines to take”. Maybe they need to think of some of their own ideas.
Mr Dhesi
We are all aware, sadly, that the Prime Minister has a litany of racist, sexist and homophobic remarks, but to the detriment of our national interest, it seems that some of his foul-mouthedness has now caught up with him. In particular, his derogatory remarks on President—
Helen Hayes
One of many sources of hope at the US election result is that after four years of climate change denial, President-elect Biden is talking about the global climate crisis and the action we must take to address it. Will the Secretary of State support him in those endeavours by guaranteeing to put climate change co-operation and green technology at the heart of any US-UK trade deal?
Elizabeth Truss
I am absolutely delighted to hear somebody on the Labour Benches being in favour of a trade deal. That is a real step forward. Of course we will have strong environmental provisions at the heart of our trade deal with the United States. I remember that Labour Members did not support a trade deal with President Obama, and they do not support a trade deal with the current Administration, but I am delighted to hear that they are supporting a trade deal with the new Administration. I look forward to working with them to ensure that the climate change provisions are excellent.
Sir Mark Hendrick [V]
A new US President and Congress will not ratify a trade deal if we scupper the Good Friday agreement; our banning of Huawei infrastructure has angered China, and now this Government are prepared to break international law in the way we leave the European Union. How many major global trading partners are this Government prepared to upset before they do more harm to our economy than covid-19 has done already?
Elizabeth Truss
We have already done trade deals with 52 countries and we are on course to do many more, and we are absolutely committed to the Good Friday agreement.
Dame Diana Johnson [V]
As one of the MPs for the Humber energy estuary, where we are doing pioneering work in areas such as carbon capture, it is heartwarming to hear American President-elect Biden talking about the global climate crisis and the action needed to address it, and seeing this as a way of generating the jobs of the future. Will the Secretary of State expand a little on what she thinks can be put into any trade deals in terms of this country’s green technology and making sure this creates the jobs needed on both this side of the Atlantic and the other?
Elizabeth Truss
In the new UK global tariff we have reduced the tariffs on 100 green goods, and we want to encourage more other countries to support that. Of course we are committed to working with the US, and next year we will have the presidency of the G7. That is a really good opportunity for us to pursue that agenda of tackling climate change, alongside our COP26 commitments, and of course we will be looking at putting these in all our trade deals.
Matt Western
Although we would all want a successful outcome to any trade negotiations with the US, will the Secretary of State confirm that, according to the Government’s own best-case scenario, any US deal with the UK will account for growth of only 0.16% over 15 years? Will she confirm what this will translate into if we do not get a deal with the EU? What loss in growth will we sustain?
Elizabeth Truss
Our assessment suggests that a £15 billion increase in trade will result from a US deal and also that we will see tariffs of half a billion pounds taken off fantastic British companies, be they in ceramics or the car industry, which will help to boost that growth. But the EU deal and the US deal are not in contradiction to each other; we should be aiming to do both. The problem is that the Labour party seems willing to agree any deal with the EU and willing to agree no deal with the US. What Conservative Members want is a good deal for Britain.
Emily Thornberry (Islington South and Finsbury) (Lab)
President-elect Biden has spoken powerfully about the need to end support for the war in Yemen and to stop selling arms that Saudi uses, in his words, for “murdering children”. Will the Secretary of State revisit her policy on arms sales in the light of the new President’s statement or will she choose to remain in lockstep with the blood prince bin Salman instead?
Elizabeth Truss
I am proud that we have one of the most rigorous defence export regimes in the world, and those are decisions we make on the basis of our values in this country.
Douglas Chapman (Dunfermline and West Fife) (SNP)
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
The Secretary of State for International Trade (Elizabeth Truss)
We have made good progress. In under two years, we have agreed trade deals with 52 countries, covering £146 billion of trade, accounting for 74% of the value of total trade with non-EU countries that we set out to secure agreements with.
Lloyd Russell-Moyle
We learn from The Telegraph that the Minister has rejected the Ghana deal because it was a “a substantial departure” from the EU deal, but she says that the Japan deal goes far beyond the EU deal. What is it? Are the Government exercising new British sovereignty to produce far-reaching new deals, or are they just rolling over and accepting the same deals that we already had?
Elizabeth Truss
The answer to the hon. Gentleman is that we are seeking to roll over the Ghana deal, as we are other deals, but with Japan, we have gone through the process of producing a scoping assessments. [Interruption.] No, we were very clear that Japan was a deal that would go further and faster than the EU deal, alongside the new deals that we are negotiating with the US, Australia and New Zealand. There is a deal on the table for Ghana to agree to. It has already agreed to the same deal with the EU. There should be no block on Ghana being able to get tariff-free, quota-free access to the UK, and we are very happy to talk to its representatives at any time of the day or night.
Cat Smith (Lancaster and Fleetwood) (Lab)
Greg Smith (Buckingham) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Last week, we announced that the UK will be continuing our trade preferences scheme for developing countries in 2021. It is important that developing countries continue to receive the same market access under our unilateral trade preferences as they do at the moment. We remain firmly committed to the principle that trade helps to lift the poorest out of poverty, and early next year we will be launching a consultation on how we can improve the preference scheme and help to use trade as a tool for development. We will aim to have the new scheme finalised by the end of 2021.
Greg Smith
With all our minds on both the health and economic recovery from the covid pandemic, may I ask my right hon. Friend what discussions she has had with her Israeli counterpart to further trade co-operation beyond the continuity deal, not least given the incredible and ground-breaking Israeli innovations to combat covid-19, such as through remote monitoring of patients and thermal scanning?
Elizabeth Truss
My hon. Friend is right. It is vital that we use trade as a way of motoring growth post this terrible covid crisis. We are working on negotiating a cat’s cradle of trade deals around the world to support British business. Of course, Israel is one of those priorities. It is very advanced in areas such as data and digital. There is strong scope for a world-leading agreement, and we are in discussions about that.
Paul Blomfield (Sheffield Central) (Lab) [V]
From 1 January, the Secretary of State will be responsible for our trading relationship with other European countries. With or without a deal, the services sector is concerned that its interests have been marginalised throughout the negotiations with the EU. This does not just affect financial and legal services, but engineers, technicians and others. Will the Secretary of State commit to securing—as a start—mutual recognition of qualifications to enable all these crucial sectors to work across Europe?
Elizabeth Truss
I am committed to having a positive relationship with the European Union. I speak to my counterpart, Valdis Dombrovskis, about issues concerning global trade. Of course, we want with every part of the world good trade deals that uphold our standards and facilitate increased trade in areas such as services, data and digital, but the important principle is that we cannot do that at the expense of the UK’s sovereignty. Those are the negotiations that are currently being conducted by Lord Frost.
Sir David Evennett (Bexleyheath and Crayford) (Con) [V]
Chris Bryant (Rhondda) (Lab)
Elizabeth Truss
We are working very hard to secure a good deal with the European Union and negotiations are ongoing. However, it is important that our farmers have as many markets as possible. That is why we have worked hard to get the lamb market open in Japan in 2019, we are working hard to get lamb into the US, which is the second-largest importer of lamb in the world, and we are working hard to get more lamb into the middle east too.
Antony Higginbotham (Burnley) (Con)
Elizabeth Truss
My hon. Friend is correct. That is why we want to join trade areas such as the trans-Pacific partnership with very strong provisions reducing the level of bureaucracy required, and liberal rules of origin that help our manufacturers. That is also what we are looking to negotiate with the United States. It is important that we get the advanced digital and data chapters that the EU was not prepared to sign up to but which provide so much value for advanced manufacturers in being able to sell their products around the world.
Paul Girvan (South Antrim) (DUP)
Elizabeth Truss
I can absolutely assure the hon. Gentleman of that. I was delighted that the first cargo of British beef to leave for the United States of America for 24 years left from Northern Ireland.
Andrea Jenkyns (Morley and Outwood) (Con) [V]
Elizabeth Truss
I thank my hon. Friend for his invitation to the Board of Trade. It is likely that our next meeting will be held in Northern Ireland, but I will certainly be looking to Workington for a future meeting to see the fantastic work being done in advanced manufacturing.
Patrick Grady (Glasgow North) (SNP)
Elizabeth Truss
Given that the Scottish National party voted for even fewer trade deals than the Labour party, and are even more anti-trade than the Labour party, I am delighted to hear that there seems to be some kind of turnaround and that under a Biden Administration, the hon. Gentleman will back a US trade deal.
Ben Bradley (Mansfield) (Con)
East Midlands airport is the UK’s biggest pure cargo airport. It has lots of potential for growth. It has become a hub of investment for freight and logistics in recent years, and must surely be at the heart of our plans to make the most of our global trade. Does my right hon. Friend agree that it would be a brilliant site for an inland freeport? Will she put a word in with the Chancellor?
Elizabeth Truss
I thank my hon. Friend for his assiduous bidding on behalf of the east midlands. The bidding for freeports opened on Tuesday, and bids need to be submitted by 5 February 2021. I point out to him that these trade deals we are negotiating will just mean more and more trade coming into the freight hub, with or without freeport status, but I will of course mention what he said to the Chancellor.
Mr Speaker
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for a few minutes.
UK's Future Trading Relationship with New Zealand: Negotiations
Elizabeth Truss Excerpts(3 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The second UK-New Zealand free trade agreement (FTA) negotiating round took place from 19 October to 2 November. Negotiators carried out 46 sessions over two weeks, covering all areas of the proposed FTA, and bringing us closer to agreeing an ambitious FTA. Between round 1 and round 2, both sides shared 35 draft texts and 25 position papers, which enabled detailed and constructive talks.
The talks underscored both countries’ commitment to removing trade barriers and creating new opportunities for business, and a belief that a deep and dynamic agreement can send a clear signal to the world that both the UK and New Zealand are prepared to fight protectionism and advance free and fair trade.
There has been encouraging progress on numerous areas of common interest. In the area of small and medium-sized enterprises, both sides reaffirmed their ambition to agree a chapter that will enable these businesses to fully benefit from the FTA. Productive conversations were also held on trade and the environment and promoting clean growth, where both countries are working closely together to support sustainable outcomes across the agreement.
Discussions also demonstrated shared ambition in trade in services, particularly exploring opportunities for the recognition of professional qualifications, as well as exploring innovative provisions to promote sustainable finance and diversity in the financial services sector. Our negotiations on digital trade also underlined shared aspirations, and a mutual intent to agree a cutting-edge chapter.
The groundwork was laid for the exchange of initial goods market access offers as well as positive discussions in the areas of rules of origin and customs on agreeing simple, modern customs procedures that consider current and future supply chains.
The UK and New Zealand are both keen to continue the momentum of discussions, and the third negotiating round is expected to take place in January 2021.
Below is a summary list of those areas discussed in the round, which continued to take place by video conference:
Anti-Corruption
Competition
Consumer protection
Customs
Digital trade
State-to-state dispute settlement
Environment and clean growth
Financial services
Good regulatory practice
Trade in goods
Indigenous trade
Intellectual property
Investment
Labour
Legal and institutional
Procurement
Remedies
Rules of origin
Sanitary and phytosanitary measures
Services (including cross-border trade in services, professional business services, transport and delivery services, and movement of natural persons)
Small and medium-sized enterprises
State owned enterprises
Technical barriers to trade
Telecoms
Trade and women’s economic empowerment
Trade for development
Any deal the UK Government agree will be fair and balanced and in the best interests of the whole UK. We remain committed to upholding our high environmental, labour, food safety and animal welfare standards in our trade agreement with New Zealand, as well as protecting the national health service (NHS).
[HCWS560]
UK-US Future Trading Partnership: Negotiations
Elizabeth Truss Excerpts(3 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The fifth UK-US Free Trade Agreement (FTA) negotiating round took place from 19 to 30 October 2020.
This was the most intensive round of negotiations held so far, with 38 sessions covering 19 different chapter areas.
Almost all chapter areas are now in the advanced stages of talks. A significant proportion of legal text has been agreed across multiple chapters.
The round included focused discussions on market access for goods, including negotiations around product specific rules of origin, which determines whether or not a product can benefit from preferential tariffs under the FTA.
We also held detailed textual discussions on a digital chapter and agreed much of the legal framework for a future agreement.
Following the significant progress made in talks to date, both sides are confident that we are on track for a comprehensive agreement which would provide a significant and mutual benefit to our economies. We believe we are in a good position to move forward after the US election.
We have agreed a programme for continued talks at official level for the weeks following the US election.
Below is a summary list of those workstreams discussed in the round:
Competition
Core text
Cross cutting services
Customs and trade facilitation
Digital
Environment
Financial services
Good Regulatory Practice (GRP)
Investment
Intellectual property
Market access for goods
Rules of origin and origin procedures
Sanitary and phytosanitary (SPS)
Sectoral annexes
Services sectors—Professional business, transport and delivery services
State owned enterprises
State to state dispute settlement
Telecoms
Trade remedies
[HCWS545]
UK-Japan Free Trade Agreement: Signing
Elizabeth Truss Excerpts(3 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
Today Japan’s Foreign Minister Motegi Toshimitsu and I are signing the UK-Japan partnership agreement in Tokyo. This is the first trade deal that the UK has struck as an independent trading nation.
This British shaped deal goes beyond the existing EU agreement with major wins for all parts of the UK in areas such as digital and data, financial services, food and drink and creative industries. This deal could boost trade between the UK and Japan by £15.7 billion and drive economic growth in the long run.
The agreement also includes a strong commitment from Japan to support the UK joining the comprehensive trans-Pacific partnership (CPTPP) meaning closer ties with 11 Pacific countries in one of the world’s biggest free trade areas, covering 13% of the global economy in 2018 and more than £110 billion of trade in 2019.
The Government are committed to transparency and the effective scrutiny of our trade negotiations. Following my written ministerial statement of 12 October, I can announce that at the earliest possible opportunity today the Department for International Trade and the Foreign Commonwealth and Development Office will be formally presenting the signed treaty text and related documents electronically to Parliament. They will subsequently be published on gov.uk.
The documents being laid in Parliament today are the UK-Japan partnership agreement treaty text, explanatory memorandum and parliamentary report, which provides an explanation of the partnership agreement, including any significant differences or enhancements from the EU-Japan agreement. An independently verified impact assessment of the UK-Japan partnership agreement will also be deposited in the Library of the House.
While the Government are formally laying the treaty text electronically in Parliament today, the Constitutional Reform and Governance (CRaG) Act scrutiny procedure will not commence until 2 November, when the House of Commons returns from recess. Laying today ahead of the commencement of CRaG ensures that the House has the maximum amount of time to scrutinise the detail of the UK-Japan partnership agreement.
[HCWS536]
UK-Japan Comprehensive Economic Partnership Agreement: Transparency and Scrutiny
Elizabeth Truss Excerpts(3 years, 7 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I am setting out transparency and scrutiny arrangements for international trade deals starting with the UK-Japan comprehensive economic partnership agreement (UK-Japan CEPA) which will be signed shortly.
At the outset of negotiations, the Government published their objectives for this agreement, along with a scoping assessment. During the consultation period, we have discussed progress with trusted advisers across industry, including with stakeholders in farming. This sector has been involved throughout, to ensure that nothing we agree undermines our farmers’ ability to compete internationally while producing food at a high standard. The Government have also established a Trade and Agriculture Commission to advise on future trade policy. This will look at policy for our trade agreements and our work to improve the world’s trade rules, making sure they work for British business and consumers.
We will share future trade agreements with the International Trade Committee in the House of Commons and the International Agreements Sub-Committee in the House of Lords, in advance of being laid in Parliament through the process set out under the Constitutional Reform and Governance Act 2010 (CRaG). Today we are doing this for the UK-Japan CEPA.
We will always endeavour to make sure the Committees have at least ten sitting days to read through these on a confidential basis, as we are doing for this deal. We are also sharing a full impact assessment which covers the economic impacts along with the social, environmental, and animal welfare aspects of the deal. This impact assessment has been independently scrutinised by the Regulatory Policy Committee.
At the end of negotiations, this Government are committed to ensuring the final agreement text, alongside an explanatory memorandum, is laid in Parliament under the CRaG scrutiny procedure for 21 sitting days. This will ensure the House has sufficient time to scrutinise the detail of any deal.
This overall approach goes well beyond many comparable parliamentary democracies. Parliament has been provided with the information it needs to provide effective scrutiny at all stages of the negotiations. We are also working constructively with the Select Committees referred to above, who may choose to produce independent reports on the agreement.
Widespread prior consultation and the publication of detailed impact assessments and objectives up front, allows informed debate at the start of the negotiations. Extensive stakeholder engagement on the detail of the negotiations as they proceed, and confidential briefing of relevant committees, means we have taken best practice at every stage from comparable democratic systems. Combined with the confidential sharing of text at the end of negotiations, this is a best in class approach to transparency and openness to scrutiny by Parliament and other stakeholders, compared with such countries.
For example, before any of our negotiations with the US, Japan, Australia and New Zealand commenced, this Government led a comprehensive public consultation or call for input. Like Canadian, Australian and New Zealand systems, we have kept Parliament updated on negotiations as they progress, including close engagement with relevant Select Committees.
These arrangements are appropriate to the UK’s constitutional make-up and separation of powers. Ultimately, if Parliament is not content with a trade deal, it can raise concerns by resolving against ratification and delay any implementing legislation indefinitely.
This Government are committed to ensuring that no trade deal undermines key industries or lowers standards for consumers. We are concluding free trade agreements that benefit all parts of the UK, by creating opportunities for our world-leading industries and maintaining high standards, while increasing choice for consumers.
[HCWS499]
Oral Answers to Questions
Elizabeth Truss Excerpts(3 years, 7 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
The Secretary of State for International Trade (Elizabeth Truss)
The deal with Japan will go further and faster than we had under the EU, including by increasing the number of geographical indications from seven in the EU-Japan deal to up to 70 in our new agreement, from Cornish clotted cream to Scotch beef. Furthermore, Japan has guaranteed market access for UK malt exports under an existing quota, which is more generous and easier to access than the EU quota.
Dehenna Davison
My right hon. Friend recently visited Grange Hill farm just outside Bishop Auckland, and John, Jane and Becky—the farmers there—are rightly very proud of the high-quality beef products that they produce. Will my right hon. Friend tell the House how this and others deals she is seeking, such as the deal with the USA, will benefit British beef farmers right across our United Kingdom?
Elizabeth Truss
I hugely enjoyed my visit to Grange Hill farm with my hon. Friend. Our deal means that British beef going into Japan will have lower tariffs. We also announced last week that the first beef for 24 years was shipped from Britain to the United States. In the United States trade deal, we will seek to remove the 26% tariff on British beef so that we can get even more of that great product into that market.
Cat Smith
I have been contacted by many constituents who are concerned about the animal welfare standards in a US-UK trade deal. They ask me why the state of California can ban imports of products that do not meet its animal welfare standards but the UK Government are not willing to do the same.
Elizabeth Truss
We are absolutely clear that we are going to stand up for our high standards in any deal we strike, including with the United States, and make sure that the high standards our farmers operate to will not be undermined.
Rob Roberts
May I start by praising my right hon. Friend and her Department for the sterling work that she is doing in making us a global trading nation once again? As well as the wonderful beef exports of the north-east, it will come as no surprise to her that Welsh lamb is a major part of the Delyn economy. It would be remiss of me not to stand up for the agricultural sector in my constituency, so what message can she give me to take back to my local farmers to tell them that they will not only do well in the new arrangements, but thrive, prosper and grow?
Elizabeth Truss
Welsh lamb is some of the best in the world, and in the new Japan trade deal, Welsh lamb will be recognised as a GI for the first time. We got our first Welsh and British lamb into Japan for over 20 years last year, opening up a market worth £52 million. My next target is to get the ban on lamb removed in the United States, which would be a huge market. The US is the second largest lamb importer in the world.
Andrew Gwynne [V]
I was interested to read that the members of the Trade and Agriculture Commission were calling for parliamentary scrutiny on all future trade deals. The head of the Government’s Food Commission has said the same, so can the Secretary of State show that she is listening to her advisers by guaranteeing this House of Commons a debate and a vote in Government time on any trade deal with the USA?
Elizabeth Truss
I can confirm that we will have a world-leading scrutiny process, comparable with Canada, Australia, New Zealand and Japan. That will mean the International Trade Committee scrutinising a signed version of the deal and producing a report to Parliament, a debate taking place and then, through the CRaG—the Constitutional Reform and Governance Act 2010—process, Parliament can block any trade deal if it is not happy with it.
Emily Thornberry (Islington South and Finsbury) (Lab)
We have spent countless hours in this House and in the other place debating the impact of imports on food standards—a debate that has captured the attention of millions of people across the country—but I would like to boil it down to asking the Secretary of State one simple question today. If it is her argument that we do not need Labour’s amendments because bans on the relevant imports are already enshrined in law, can she please tell us which law prevents the importing of pork that has been produced on American farms that continue to use sow stalls?
Elizabeth Truss
The right hon. Lady is talking about an animal welfare issue and, as I made very clear earlier, we will not allow the high animal welfare standards of our pig producers to be undermined.
Emily Thornberry
I listened very carefully to that response, but I do not really think that it was an answer further than rhetoric. The point is that there is no import ban against pork produced on farms using sow stalls because, as the Secretary of State says, it is an issue of animal welfare, not of food safety. That means that, if the Government drop tariffs on US pork, British pork farmers will be undercut by cheap imports from American agricultural companies using practices that have been banned in our country for the past 21 years. Will she please listen to reason and write into law the protection of all UK farming standards against imports that do not meet them?
Elizabeth Truss
As I have said, of course in any trade deal that we strike we will take into account our high standards, to ensure that our farmers are not undermined, but if the right hon. Lady is suggesting a blanket ban on any foodstuffs that do not comply exactly with British farm regulations, she is talking about preventing developing countries from sending their foodstuffs to the United Kingdom. Is she saying—[Interruption.] She will understand that under most favoured nation rules we have to apply the same standards to every country that we deal with, so is she saying that she wants to ban Kenyans from exporting their products to us if they do not follow exactly the same farm standards as here in Britain? I want to ensure that our farmers are able to continue with their high standards, but I do not want to stop developing countries exporting their goods to us.
Mr Speaker
Let us calm it down a little with the Chair of the International Trade Committee, Angus Brendan MacNeil. There is no more calming influence than Brendan.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]
Tapadh leibh, Mr Speaker, and a nice calm morning in the Hebrides it is too.
In 2014, the then Prime Minister, David Cameron, promised Scotland that the choice was between independence and all options of devolution, and all indeed were possible—as well, of course, as guaranteed EU membership. Leaving that aside, the United Kingdom Internal Market Bill is expected to do the opposite of that on devolution. Given that the USA has differences across its states, can the Secretary of State guarantee that no attempt will be made to grab powers from the devolved nations to present the entire UK on an easily consumable platter for USA negotiators when it comes to a UK-USA trade deal?
Elizabeth Truss
I can absolutely say that we are not grabbing powers; we are using the powers that were previously in the hands of the European Union to create a strong internal market across the United Kingdom. That it is vital, because Scottish farmers need to be able to sell their lamb and beef into England, Wales and Northern Ireland without impediment.
Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
We are making good progress on a deal with the United States. We have just finished round 4 of the negotiations and we are discussing detailed tariffs and texts. We will carry on working right up until 30 October, just before the presidential election.
Craig Tracey
I thank the Secretary of State for that answer, and I also congratulate her on the excellent work her Department is doing to help to secure our independent trading status once we have fully left the EU. Does she agree that it is really important that, whatever the outcome of the US presidential election, we continue to work with the parties on both sides of the aisle to ensure we get the best possible deal for the UK?
Elizabeth Truss
My hon. Friend is absolutely right—[Interruption.] The Opposition are laughing at our largest single country trading partner, because they frankly do not care about the jobs generated or about the opportunities from expanding our relationship with the US. We are in discussions with senior Republicans and senior Democrats to ensure that there is full support for a US-UK trade deal right across the United States political spectrum.
Neale Hanvey
The Speaker of the House of Representatives, Nancy Pelosi, has warned that there will be absolutely no chance of a trade deal should the UK Government override the Brexit withdrawal agreement. Does the Secretary of State agree that US trade talks will be dead in the water if the UK Internal Market Bill passes into law, because such a deal would never pass Congress, even with the support of the probably outgoing President Trump?
Elizabeth Truss
We have been absolutely clear with all our trading partners and, indeed, with the EU that we are committed to the Good Friday agreement. We are committed to having no hard border on the island of Ireland, and on that basis we are progressing talks with the United States.
Bill Esterson (Sefton Central) (Lab) [V]
Hormone-injected beef should never have been part of the trade talks with the United States. Can the Trade Secretary confirm that she told her US counterparts that the UK would drop the digital services tax if the US dropped its insistence on market access for its hormone-injected beef? If she has not made such an offer, can she tell us why The Mail on Sunday says she has? After all, it would not invent such a story, would it?
Elizabeth Truss
I would caution the hon. Gentleman that not absolutely everything published in The Mail on Sunday is the gospel truth. I hope that, over time, he learns that. Let us be clear that the digital services tax is a matter for the Chancellor of the Exchequer in this country, not a matter for the trade talks, and that food safety regulations are a matter for the Food Standards Agency in this country, and not part of the trade talks.
Peter Gibson (Darlington) (Con)
As my right hon. Friend may be aware, Willis Asset Management, a large US aircraft manufacturing and maintenance firm, is already based at Teesside international airport. What assessment has she made of the opportunity that a free trade corridor between a free port on the River Tees and our local airport would provide for US-UK trade and regional growth?
Elizabeth Truss
I know that my hon. Friend is a staunch advocate of free ports, especially one in Teesside, and I know he will have been delighted by the announcement yesterday from the Chancellor that there will be 10 new free ports across the United Kingdom by the end of 2021, bringing more trade, more opportunities and more growth to areas right across the nation.
Mr Speaker
We come now to Richard Graham’s question, but he is not here, so I call the Minister on this group of questions.
Jacob Young (Redcar) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Australia is a key and proud ally of the United Kingdom, a country with shared beliefs in democracy and free trade. We are working closely at pace with our Australian friends to secure a deal that will benefit both countries, and we will reach a gold standard agreement to lead the world in free trade.
Jacob Young
My right hon. Friend knows that Teesside has a long history of exporting to Australia, including a small project known as the Sydney harbour bridge. Can she assure me that, as we leave the EU, Redcar and Cleveland, particularly the steel and chemical industry, will be at the forefront of her mind in future trade talks?
Elizabeth Truss
Redcar and Cleveland are a key priority as we negotiate the Australia deal. There are 13,000 small and medium-sized enterprises in the United Kingdom that already export to Australia, and I see lots of opportunities for them to benefit from our close trading relationship, including in the areas of steel and chemicals, food and drink and digital and data.
Andy Carter (Warrington South) (Con)
Chris Green (Bolton West) (Con)
The Secretary of State for International Trade (Elizabeth Truss)
Over the last month, we have made significant progress to establish the United Kingdom as an independent, free-trading nation. We have agreed in principle a deal with Japan that goes further and faster than the EU deal in areas such as digital and data, food and drink and financial services. We have set out our pathway to join the Trans-Pacific Partnership, and yesterday we joined the WTO Government procurement agreement, which gives British businesses access to a £1.3 trillion global market.
Chris Green
Just as Israel has signed a peace treaty with Bahrain and the United Arab Emirates, it is innovating to create an instant covid-19 test that is currently being trialled at European airports. What steps is my right hon. Friend taking to work with innovative Israeli companies in that area?
Elizabeth Truss
I congratulate Lord Austin on becoming the new trade envoy to Israel. I am delighted to see the reaction on the Labour Benches—they are obviously very pleased with that appointment. We have already signed a continuity FTA with Israel, and we want to go further in a new free trade agreement in areas such as tech, digital and data. We are two tech superpowers, and there is huge opportunity for British businesses and Israeli businesses to work more closely together.
Paul Blomfield (Sheffield Central) (Lab)
I was listening to the Secretary of State on the “Today” programme yesterday morning, when she twice repeated the Government’s mantra of wanting a trade deal with the EU just like Canada’s. But the Government will not agree to non-regression clauses on environmental protection or workers’ rights, both of which are in the comprehensive economic and trade agreement—the trade deal between Canada and the EU. The Government also will not commit on state aid beyond WTO rules, while CETA contains stronger agreements on subsidies. Could the Secretary of State share with the House whether the Government are planning to change course and accept those provisions in their deal with the EU, or will she just admit that they do not really want a Canada-style deal at all?
Elizabeth Truss
The reality is that what the EU is demanding goes far beyond Canada in terms of an ex-ante regime on state aid, as well as alignment with rules and regulations. We will not accept that. We do want a Canada-style deal. The reality is that the Labour party would not even accept a Canada-style deal with Canada.
Marco Longhi (Dudley North) (Con)
Sir Mark Hendrick (Preston) (Lab/Co-op) [V]
Elizabeth Truss
We are absolutely committed that we are going to have our own independent regulatory regime, and we are no longer going to be permanently aligned with the EU. We have made that very clear: that was the point of Brexit.
Matt Vickers (Stockton South) (Con)
Carol Monaghan (Glasgow North West) (SNP)
Elizabeth Truss
I am absolutely determined to get these tariffs removed. The reality is that the European Union, which the hon. Lady and her colleagues want to rejoin, has failed to sort out this issue with Airbus for 15 years. We now have an opportunity—we have an independent tariff policy starting next year—and I am determined to get those tariffs removed.
Andy Carter (Warrington South) (Con)
Scott Mann (North Cornwall) (Con)
Elizabeth Truss
There are huge opportunities for great Cornish seafood in Japan, Korea, and all of Asia. Our Japan deal will see tariffs reduced on salmon, and the Cornish sardine properly recognised. We are holding a webinar on 26 October to help seafood exporters, including crab exporters, crack the Japanese market.
Ms Karen Buck (Westminster North) (Lab)
Elizabeth Truss
In each individual trade agreement we consider key issues such as animal welfare. We are consulting closely with the farming industry, including the pig industry, which sees all the offers we put forward in individual deals. Each deal will be scrutinised by the International Trade Committee, and the implications for animal welfare will be independently verified. Parliament will have an opportunity to debate those issues. We take this matter seriously, and as the hon. Lady said, those issues come to light in each individual trade deal.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Elizabeth Truss
I have met farmers from right across the United Kingdom, and indeed the Trade and Agriculture Commission that we have set up to advise us on these issues is conducting a series of regional meetings with MPs and farmers to get their views, to make sure that our policy on every free trade deal works for farmers right across the country.
Geraint Davies (Swansea West) (Lab/Co-op) [V]
Elizabeth Truss
Both the Farmers’ Union of Wales and the National Farmers Union Wales are represented on the Trade and Agriculture Commission to ensure that there is a full voice for Welsh farmers on future trade agreements. Under the recent Japan deal, Welsh lamb is now going to be recognised geographical indicator, and we are fighting to get lamb into the US market. There are lots of opportunities out there for Welsh lamb farmers, which we are pursuing vigorously.
Mr Speaker
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
Prime Minister's Trade Envoy Programme
Elizabeth Truss Excerpts(3 years, 7 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
The Prime Minister has today made 15 new appointments to his trade envoy programme.
These new appointments will extend the total number of trade envoys to 31 parliamentarians covering 69 markets. The Prime Minister’s trade envoy programme is an unpaid and voluntary cross-party network, which supports the UK’s ambitious trade and investment agenda in global markets. The new appointments are:
The Baroness Hooper CMG (Gloria Hooper) has been appointed as the Prime Minister’s Trade Envoy to Costa Rica, the Dominican Republic and Panama,
The Baroness Meyer CBE (Catherine Meyer) has been appointed as the Prime Minister’s Trade Envoy to Ukraine,
My hon. Friend the Member for Broxtowe (Darren Henry) has been appointed as the Prime Minister’s Trade Envoy to the Caribbean (with focus on 12 Commonwealth Countries),
My hon. Friend the Member for Cleethorpes (Martin Vickers) has been appointed as the Prime Minister’s Trade Envoy to the Western Balkans (covering Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia),
My hon. Friend the Member for Maidstone and The Weald (Helen Grant) has been appointed as the Prime Minister’s Trade Envoy to Nigeria,
My hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) has been appointed as the Prime Minister’s Trade Envoy to Mongolia,
My hon. Friend the Member for South Derbyshire (Heather Wheeler) has been appointed as the Prime Minister’s Trade Envoy to Cambodia, Laos and Vietnam,
My hon. Friend the Member for South Ribble (Katherine Fletcher) has been appointed as the Prime Minister’s Trade Envoy to Mozambique,
My hon. Friend the Member for Southport (Damien Moore) has been appointed as the Prime Minister’s Trade Envoy to Tunisia and Libya,
My hon. Friend the Member for Stafford (Theo Clarke) has been appointed as the Prime Minister’s Trade Envoy to Kenya,
My hon. Friend the Member for Wyre Forest (Mark Gamier) has been appointed as the Prime Minister’s Trade Envoy to Brunei, Myanmar and Thailand,
The Lord Austin of Dudley (Ian Austin) has been appointed as the Prime Minister’s Trade Envoy to Israel,
The Lord Davies of Abersoch CBE (Evan Mervyn Davies) has been appointed as the Prime Minister’s Trade Envoy to Sri Lanka,
My right hon. Friend the Member for South West Wiltshire (Dr Murrison) has been appointed as the Prime Minister’s Trade Envoy to Morocco, and
The right hon. the Lord Bates (Michael Bates) has been appointed as the Prime Minister’s Trade Envoy to Ethiopia.
They join the following list of trade envoys:
The Baroness Bonham-Carter of Yambury (Jane Bonham-Carter), the Prime Minister’s Trade Envoy to Mexico,
The Baroness Morris of Bolton OBE (Patricia Morris), the Prime Minister’s Trade Envoy to Jordan, Kuwait and the Palestinian Territories,
The Baroness Nicholson of Winterbourne (Emma Harriet), the Prime Minister’s Trade Envoy to Azerbaijan, Iraq, Kazakhstan and Turkmenistan,
The hon. Member for Bethnal Green and Bow (Rushanara Ali), the Prime Minister’s Trade Envoy to Bangladesh,
My hon. Friend the Member for Fylde (Mark Menzies), Prime Minister’s Trade Envoy to Argentina, Chile, Colombia and Peru,
My hon. Friend the Member for Gloucester (Richard Graham), the Prime Minister’s Trade Envoy to the ASEAN Economic Community (AEC), Indonesia, Malaysia and the Philippines,
My hon. Friend the Member for Romford (Andrew Rosindell), the Prime Minister’s Trade Envoy to Tanzania,
My hon. Friend the Member for South West Bedfordshire (Andrew Selous), the Prime Minister’s Trade Envoy to South Africa,
My hon. Friend the Member for Windsor (Adam Afriyie), the Prime Minister’s Trade Envoy to Ghana and Guinea,
The Lord Faulkner of Worcester (Richard Faulkner), the Prime Minister’s Trade Envoy to Taiwan,
The Lord Popat (Dolar Popat), the Prime Minister’s Trade Envoy to Rwanda, Uganda and the Democratic Republic of Congo,
The Lord Risby (Richard Spring), the Prime Minister’s Trade Envoy to Algeria and Lebanon,
The right hon. Member for Lagan Valley (Sir Jeffrey Donaldson), the Prime Minister’s Trade Envoy to Egypt,
The right hon. the Lord Astor of Hever DL (John Jacob Astor), the Prime Minister’s Trade Envoy to Oman,
The right hon. the Lord Janvrin GCB GCVO QSO (Robin Janvrin), the Prime Minister’s Trade Envoy to Turkey and
The right hon. the Lord Lamont of Lerwick (Norman Lamont), the Prime Minister’s Trade Envoy to Iran.
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