Oral Answers to Questions

Greg Hands Excerpts

Thursday 15th April 2021 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

What steps her Department is taking to improve trade and business relationships between the UK and Sweden.

[The Minister for Trade Policy (Greg Hands)]

Sweden is a close ally of the UK on trade policy and a close partner in our day-to-day trading relationship. I was the first UK Minister to visit Sweden after the EU referendum, and through our excellent DIT team in Stockholm, we work hard to promote trade and investment between the UK and Sweden.

[Andrew Bowie]

I thank my right hon. Friend for his answer. According to a recent report by the Swedish chamber of commerce for the UK, almost 40% of Swedish businesses are optimistic about business growth in the UK and 70% continue to see the UK as an important step in international expansion. Does he agree that developing links with this greatest Scandinavian country, which shares our values and our growing economy, would be good for the UK, good for jobs and good for developing relations with our partners in the European Union?

[Greg Hands]

I commend my hon. Friend for his work as the chairman of the British-Swedish all-party parliamentary group and his mention of the excellent Swedish chamber of commerce for the UK, which was on one of my recent webinars. In my recent call with Swedish Trade Minister Anna Hallberg, we agreed to co-host a bilateral trade and business forum later this year. We have excellent trade co-operation with Sweden in sectors such as technology, financial services, defence and clean energy, so I very much share my hon. Friend’s optimism.

[Clive Efford (Eltham) (Lab)]

What recent assessment she has made of the implications for her policies of the UK joining the comprehensive and progressive agreement for trans-Pacific partnership.

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[Alyn Smith (Stirling) (SNP)]

What recent estimate her Department has made of the value of UK exports to (a) Germany, (b) Italy and (c) Ireland in 2021.

[The Minister for Trade Policy (Greg Hands)]

The UK greatly values its trade with each of Germany, Italy and Ireland. All trade data is currently volatile, especially due to the pandemic, but data released earlier this week showed a monthly upwards bounce in UK goods exports to the EU to £11.6 billion in February from £7.9 billion in January, including increases to all three countries referred to in the question.

[Alyn Smith [V]]

I appreciate that those on the Government Benches prefer breathless rhetoric to harsh reality, but the statistics to which the Minister refers are really quite clear for rural Scotland. Its meat exports remain down 52%, fish and shellfish are down 54%, dairy and eggs down 39%, beverages down 34%, cereals down 40%, and fruit and veg down 54%. Would the Minister like to apologise to the tens of thousands of people across rural Scotland who are in daily dread and fear of what their economic future holds?

[Greg Hands]

I thank the hon. Member for that follow-up question, and I wonder if, to coin a phrase, he has perhaps taken his eye off the ball, because actually there was a bounce back in trade in February. I will give him an independent view from the Office for National Statistics, which on the trade data says:

“Exports of food and live animals to the EU increased…in February 2021, after being significantly impacted in January… Exports of fish and shellfish to the EU also saw an uptick in February 2021 as exporters adjust to new regulations following the end of the transition period. The disruptions to food exports in January 2021 appear to have largely been overcome and may have only had short-term impacts on trade.”

That is from the Office for National Statistics, which he may seek to consult.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am delighted the Minister has quoted the ONS, because figures out this week show economic output remaining nearly 8% below the pre-pandemic peak and exports to Germany, Italy and Ireland down by as much as 50% to 75%. These are not teething problems; they are the bite of long Brexit. Does the Minister agree with Matt Griffith from the British Chambers of Commerce that his members are experiencing a

“permanent deterioration in their competitive position due to higher admin, paperwork and shipping costs”?

[Greg Hands]

It is good to have an argument about statistics, but actually the UK exports to the EU in February of £11.6 billion were only just below the monthly average for the whole of 2020, which was obviously very impacted by the pandemic, of £12 billion. I would caution against using statistics in this way—we need to see the bigger picture—but I refer the hon. Member back to what the ONS said. On the help we are providing for exporters, we have various Government helplines, the Brexit business taskforce, Brexit SME support and various measures in place specifically to support the agricultural sector and the Scottish seafood sector.

[Drew Hendry]

Let us come away from statistics and back to what is happening. JP Morgan boss Jamie Dimon wrote to staff this month warning them that it will move all its EU-faced business out of London and into Europe. He says:

“Brexit was accomplished, but many issues still need to be negotiated. And in those negotiations, Europe has had, and will continue to have, the upper hand.”

The financial services sector is a huge employer in Scotland, and it is also facing this Westminster-inflicted disaster. Can the Minister now see why people in Scotland want to have their choice and their say over their own future?

[Greg Hands]

The hon. Member will know that there is of course a financial services memorandum of understanding between the UK and the EU, and we are acutely aware of the importance of the financial services sector, not least to my constituency as well. Many, I have to say, were surprised when the SNP voted for no deal on 30 December, especially after Nicola Sturgeon called it “unthinkable”. However, I have to say that I was not as surprised, because over the years I have seen the SNP vote against every single UK or EU trade deal, so the idea that it was going to vote in favour of a trade deal between the two of them was, frankly, highly unlikely. The SNP is anti-business, anti-jobs and against Scotland’s best interests.

[Damien Moore (Southport) (Con)]

What recent assessment she has made of the potential merits of strengthening the UK’s trading relationship with Tunisia. [R]

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[Felicity Buchan (Kensington) (Con)]

What steps she is taking to promote professional business services in free trade agreements.

[The Minister for Trade Policy (Greg Hands)]

The UK is a world leader in professional business services and the second biggest exporter of PBS globally, with a trade surplus of £33 billion in 2018. To support this important and diverse sector, we are seeking ambitious FTA commitments in cross-cutting areas like mobility and digital, as well as tackling specific behind-the-border regulatory barriers such as recognition and professional qualifications.

[James Sunderland]

The Minister will forgive me for being a bit concerned about ongoing red tape in post-Brexit trade with the European Union. This is affecting businesses in Bracknell and beyond. Will he please outline what his Department is doing to support the Cabinet Office in resolving this?

[Greg Hands]

DIT has very active participation in the current helplines for businesses facing issues in exporting to the EU. We participate, of course, in the Brexit business taskforce, we provide a DIT internationalisation fund for those looking to export, and we have 300 international trade advisers across the country and at posts right across the European Union. This is a whole-of-Government effort, and, as I said earlier, the data are starting to show encouraging signs of a recovery in our trade.

[Felicity Buchan]

Many of my Kensington constituents work in professional services, whether financial services, law, consulting or accountancy. These industries account for a huge amount of gross value added to our economy. Can my right hon. Friend assure me that the professional services sector will be at the forefront of our minds in negotiating future trade deals?

[Greg Hands]

My hon. Friend and neighbour puts it extremely well. Professional business services are vital for her constituency, for mine and for the whole country. Around 79% of gross value added and 80% of employment in this country is in services. As she knows, we secured special provisions for legal services in the EU agreement. I meet regularly with bodies such as TheCityUK, the City of London Corporation, UK Finance, the Royal Institute of British Architects, the Institute of Chartered Accountants in England and Wales, the Law Society, the Bar Council and others to ensure that professional business services are right at the heart of the UK’s trade agenda.

[Robert Halfon (Harlow) (Con)]

What steps she is taking to strengthen the UK’s trade relationship with the middle east.

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[Mr Virendra Sharma (Ealing, Southall) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights into future trade deals.

[The Minister for Trade Policy (Greg Hands)]

The UK has long supported the promotion of our values globally. We are clear that more trade does not have to come at the expense of human rights. Although our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including human rights and responsibilities.

[Patricia Gibson]

In a leaked recording last month, the Foreign Secretary said he wants to do trade deals with countries that violate international standards on human rights, as not doing so would mean missing out on profit. Will the record now be set straight? Does the Minister recognise the remarks made by the Foreign Secretary as Government policy and is this the view shared by the Department for International Trade?

[Greg Hands]

I think the hon. Lady has misquoted the Foreign Secretary in her account of what he said, but let me be absolutely clear that we will continue to encourage all states to uphold international human rights obligations. The UK has long supported the promotion of our values globally and remains absolutely committed to its international obligations. We are currently negotiating with Australia, New Zealand and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. They will all be important partners and they are all places that the UK will be engaging with when it comes to questions of maintenance and international support for global human rights.

[Mr Sharma [V]]

I will make the Minister’s life a bit easier when answering the question. Last month, the Foreign Secretary explained that there were some countries whose behaviour on human rights put them “beyond the pale” when it comes to trade agreements, but that otherwise we should be open to deals with anyone. Can the Minister of State save us some time by listing those countries whose behaviour the Government regard as beyond the pale and those that they regard as acceptable?

[Greg Hands]

Again, I will have to go back and see exactly what the Foreign Secretary said, but I think the hon. Gentleman’s interpretation of what he said is not quite right. Let us be absolutely clear. I ask him to have a look at the roll-over trade agreements we have already done with 66 countries and see if he can identify any diminution of human rights in the agreements we have already done.

[Jason McCartney (Colne Valley) (Con)]

If she will make a statement on her departmental responsibilities.

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[Imran Ahmad Khan (Wakefield) (Con)]

I have been delighted to work with the excellent team at the Department of International Trade in setting up the parliamentary export programme in Wakefield, which several Wakefield businesses have joined. The programme has allowed them to learn the benefits of exporting under the free trade agreements that my right hon. Friend the Secretary of State and her excellent, dynamic team have signed thus far. With more free trade agreements to be ratified, including with blocs such as the CPTPP, can my right hon. Friend outline to the House what benefits these new agreements will bring to businesses in Wakefield and across West Yorkshire?

[The Minister for Trade Policy (Greg Hands)]

I thank my hon. Friend for promoting the trade agenda so effectively in Wakefield. He is quite right that free trade agreements have a crucial role to play in enabling the UK to seize international opportunities to support that economic vision. Joining CPTPP now will benefit businesses in a number of ways, including through ambitious rules supporting digital trade and reduced tariffs on UK exports, enabling us to build back better and building more opportunities for businesses, supporting jobs in constituencies such as Wakefield.

[Chris Law (Dundee West) (SNP) [V]]

  In its annual report on human rights around the world, Amnesty International says that the UK Government’s increasingly hostile attitude towards upholding and preserving human rights legislation raises “serious concerns”. Indeed, the report specifically cited the resumption of the sale of new licences for military exports to Saudi Arabia. Does the Minister agree with Amnesty International’s conclusion that this shameful move has contributed to the UK’s“headlong rush into abandoning...human rights”?

[Robert Halfon (Harlow) (Con) [V]]

  Will my right hon. Friend set out what progress her Department is making on meeting the 2.3% public sector apprenticeship target and when it will meet it, and also say what she is doing to encourage all the businesses that she speaks to about international trade to employ apprentices?

[Greg Hands]

I commend my right hon. Friend for his work to promote apprenticeships, first in the Government and then as Chair of the Education Committee. It is too early to have final figures for 2021, but we are confident of achieving the legislative target set, building on our previous performance. According to Cabinet Office statistics, DIT achieved 3.5% of its total workforce in England as apprenticeship starts in 2019-20, up from 1.1% the year before, easily clearing the target of 2.3%.