09/02/2017 Business Questions

review published in October. I expect to publish the

recommendations and findings in the spring.

Questions for the Secretary of State for International Trade, Thomas

Simmonds. Mr Speaker, the EU Canada

comprehensive economic trade agreement, CE GAA, is a good

agreement for the UK. -- CETA. The UK Government is fully committed to

supporting such agreements whilst we remain EU members. The investment

protection provisions in CETA will have no impact on UK environment or

legislation and they cannot force the UK or other parties to change

their laws on the environment or on any other area of public policy.

I'm grateful for that answer but many of my constituents are worried

about as maintaining our current environmental standards post-Brexit.

Could be Minister guarantee that whether this trade deal or any other

trade deal the UK intends to make, that our current environmental

standards will not be watered down? What I can tell him is that in

trying in CETA and many other free-trade agreements it remains the

UK's right to regulate in these areas, which would include key

environmental protections, and there is nothing for example on the ICS

system that would force the UK to change its environmental

regulations. I notice however, Mr Speaker, that the honourable

gentleman voted against CETA yesterday. But he may not know that

when CETA was debated in this House on Monday in committee, the official

opposition was actually in favour of it.

Michael Fabricant. Has my honourable friend heard of...

It is the plan being proposed within the Canadian Parliament for a

Canada, Australia, New Zealand, United Kingdom trade partnership

after Brexit? Does he share my enthusiasm for this?

Mr Speaker, I saw this proposal and we are very enthusiastic about the

future of UK trade with Canada. I would repeat that we are currently

supportive of CETA going through and we think it is very important for

the UK for the European Union and for Canada, and we will be doing

what we can to campaign for that to go through, not least in the face of

the new-found opposition by Her Majesty's opposition.

If I could point out to the Minister, but a majority of the

Labour members voted for the trade deal. And given that Canada is such

a long-standing Commonwealth friend, Ally, and defence and trade partner,

cookie onto this basic question? In a post-Brexit world, if we can't do

a deal with Canada, who the hell can we do a deal with?

Thank you very much indeed for that question. He is right that more

Labour MPs voted for CETA, 86 and 68 against, and over 100 ab staining.

This agreement took eight years to gestate and you would have thought

that the opposition would have got that the opposition would have got

its act together by now. In terms of a particular point, I also quote

from one of his colleagues he said, quote, if we can't support eight

trade deal with liberal, Justin Trudeau led Canada, who do we

support trade deals with? LAUGHTER

Post-Brexit, will be CETA deal be transitioned into a bilateral

arrangement, or will vary to be a fresh Canada- UK agreement?

My honourable friend raises an interesting point and I think we

will have to look at that when we come to it. What would say is that

there is a number of important aspects of the CETA deal that we

might look to replicate in a future deal, but for the time being the UK,

European Union, remain strongly European Union, remain strongly

supportive of CETA going through. I heard the honourable gentleman

opposite saying he was indeed the backbencher named in the article

which refer to him as an unnamed backbencher, so it is good to see he

is now named and supporting the Labour Party, and their traditional

friends in Canada and the Liberal party.

Question two, Mr Speaker. Mr Speaker, the Government will lead

the way ensuring countries have their opportunity to trade their way

out of property. While the UK is a member of the EU, we remain

committed to economic partnership could agreements, a general ice cube

of preferences, and we are working closely with the Department for

International Development to ensure the global trading system of the

future is as fair and as free as possible.

Many thanks, Mr Speaker. Trading with developing countries is crucial

to providing jobs and livelihoods for sustainable development goals.

Will the Secretary of State committed to fair trade principles

in relation to future trade deals with developing countries to ensure

local populations can benefit sustainably and that it condiments

the work of different people in my constituency and beyond?

Let me join the honourable lady to contribute to a fair trade campaign.

It is reporting to ensure that farmers receive a fair price for

their products, and that agricultural workers receive better

workers, and agricultural practices are made more sustainable. As

Britain leads the EU, outside the common external tariff, there will

be freedom to do something things she recommends.

When we look at west African cocoa, East African coffee, Tunisian

olives, we find that the cause of unfair trade policy is the European

Union. Will he agree that what we can set our own tariffs outside the

common external tariff of the EU, we can help those countries trade their

way out of poverty? Mr Speaker, this Government is

committed to an open and liberal trading system. That is one of the

best ways to help poor countries, to have an even greater liberalisation

than we have today. When we are outside the common external tariff

of the EU, we will have an opportunity unilaterally to have new

opportunities as he suggests. Thank you, Mr Speaker. The 21st

century offers us an opportunity to build on our pride and identity as a

nation which promotes human rights, workers' rights and environmental

protection, all part of fair trade principles. How will the Government

build on this part of our national identity in trade negotiations?

We are already playing a part in that. Britain played a major role in

the WTO or arrangement, which will come into effect in a short time,

trade facilitation agreement. That will be worth about ?70 billion to

the global economy, and for some of the poorest countries, such as

sub-Saharan Africa, that will be worth about ?10 billion, a major

contribution to them and we should be proud.

In my role as the Prime Minister's trade envoy to Nigeria...

Bravo! Will he join me in encouraging

Nigeria to show the benefits of trade widely with its people?

That is a message I will be taking when they make a visit to Nigeria

myself in the not distant future. Thank you, Mr Speaker. The

Department of International trade supports efforts to grow the UK's

space Centre, and we work closely with the UK space agency for growth.

In January I led a UK space agency mission to the US where I advocated

the UK had an attractive market for space sector companies. We intend to

highlight progress in Manchester in May. UK Export Finance offers

finance to help UK-based companies in the space sector.

It is great to hear that the UK is fast becoming a world leader in the

space sector, but can right honourable friend inform the house

on his efforts to secure foreign direct investment into the UK to

support domestic growth in this industry?

My honourable friend is right to raise the importance of the sector.

The numbers are fantastic, six times the average development investment,

and 2.7 times the average productivity in the UK. In the last

few years, we have supported 19 successful investment project in

this sector and will continue to work with the Department of business

energy and industrial strategy to deliver UK space innovation and

growth into the future. The encrypted public service

channels of the new Galileo space navigation system are restricted to

the EU member states. What steps will the Government take post-Brexit

to ensure the Government has access to Galileo, which we invested in?

Galileo is the satellite navigation system put up by the European Space

Agency, by the European Union. This is something which is one of the

many different things we have to negotiate over the coming years. The

use of spectrum is one of the most incredible things, because Spectrum

is limited to this area. This is something the Government will be

looking at as one of many other things, many important things to

look at. I assure him this is a... Spectrum is a valuable asset to this

country and we will make sure we get our fair share.

Since 23rd June the UK has continued to attract investment from global

technology companies, including Facebook expanding by 50% in the UK.

Google pledging to invest ?1 billion. Snap chat's new global HQ

in London and more. This showcases the UK's leading capability through

our overseas network and through our digital platform.

The global market for smart City technologies alone is something in

the region of $400 billion. British firms lead the way in many of the

specialisations. However, we could win more contracts if there was a UK

approach to having a complete City solution. Could I encourage

ministers to promote greater collaboration between businesses and

Government. ? My honourable friend is correct. I agree with everything

he said, in terms of the size of the UK capability, the size of the

potential market and the need to have a team UK approach, which I

spoke about recently when I visited his APPG, just two weeks ago. And Mr

Speaker, in addition I can announce today two UK companies that secured

a contract worth tens of millions of pounds to build a new head quarters

in the UAE with support of UK Export Finance, showing the UK remains very

much open for business. Mr Speaker, the number one tech

Brexit worry is when we leave, it will become unlawful to send

personal data from Europe into the UK unless we've achieved a

declaration made by the European Commission about our privacy

arrangements. Will that declaration be achieved in time? Well, Mr

Speaker, I was in the previous question and I heard him ask

precisely the same question. Of the technology minister and the UK is

committed to implementing the global agreement, committing to make sure

this will work for the UK once we transition outside of the European

Union. Thank you, Mr Speaker. I welcome the British business banks

funding. Will it ensure that Britain get their fair share so the rev

lulings can continue? -- revolution can continue. May I thank him on the

fourth Industrial Revolution in this House and beyond as being a key

advocate not just in the UK, but around the world, in making sure the

UK takes advantage of its great strengths in technological

expertise? Figures published by the centre for City show that Glasgow's

exports were worth... Where the technology sector in Glasgow, will

the Secretary of State consider the Scottish Government's proposals in

Scotland place in Europe to keep Scotland in the single market? I am

very sympathetic to Glasgow maintaining its exports and

capability in smart cities. The UK and the department for international

trade we follow the whole of the UK approach, often working with key

partners like Scotland development international. However, I will point

out, that more important is Scotland remaining in the United Kingdom,

where some four times as much of Scottish produce and capabilities

exported within the United Kingdom, compared to the European Union.

Thank you. British tech firms have been unable to go to two US trade

shows and look unlikely to attend a top conference in Singapore, due to

extensive delays from his department in announcing trade access

partnership funding L he go back to the department and conif irm the

funding so British businesses can attend trade shows and play their

part in boosting our exports and economy? Well, Mr Speaker t

department for international trade continually reviews its products and

services to ensure that they meet its customer needs and republic good

value for the -- and represent good value for the taxpayer. It will be

completed shortly. So we will confirm events shortly.

Mr Speaker, building on my visit to Taiwan in September, we will

continue to work with the Taiwanese authorities to address market issues

and to further increase our trade in this important market. The UK and

Taiwan share a favourable outlook on Fairtrade. Bilateral trade reached

?5.9 billion in 2014, up 8% compared to 2010.

I am pleased the minister met with the President last September. I hope

he shares my belief, as Britain reaches out to secure more trade

deals that we keep in site our foreign policy values. Does the

minister agree that increased trade with Taiwan and the UK is a win for

both our economies but also for our Liberal Democratic values? I very

much agree with the honourable gentleman. The EC and Taiwan share

so -- UK and Taiwan share so many commitments. The protection of a

free society and we have very strongly shared values of free

trade, open markets and openness to foreign investment. I had very

productive talks with the President herself when I was there in

September, who is a big friend of the United Kingdom, not least due to

her undergraduate time at the London School of Economics.

I know the minister will be aware that back in 2008 Taiwan was granted

Commonwealth nations research membership and as such they will

look to the Commonwealth Trade Minister's meeting taking place here

in London in March L the minister confirm that trade with the

Commonwealth is a top priority for this Government after we leave the

European Union. Will he commit to ensure that during that trade

meeting as many members of this House, from all sides can be

involved to ensure that relationships with Commonwealth

parliamentarians are key? Yes. Mr Speaker, I think in terms of both

trade with Taiwan and with the Commonwealth, this department

remains extremely supportive of members being involved. I expect in

relation to the Trade Minister's meeting forthcoming, in terms of

specific engagements with parliamentarians I would hope to see

the CPA involved in those discussions. With trade deals in

place for the likes of whisky and Northern Ireland products, can the

minister say he uses the success of the long life dairy supplied to

dairies across the world? Well, Mr Speaker when I returned to Taiwan,

when I held talks with the Taiwan authorities in September,

agricultural produce was at the centre of talks. We talked about

pork exports, we talked about poultry exports and we mentioned,

made some progress on Scottish whisky. Taiwan is Scottish's third

largest global market. We made some important progress on seeking

Scottish whisky being certified by Taiwan. I know a lot of businesses

focus on the China market for obvious reasons. When I led a

delegation as a party in September to Taiwan I witnessed a vibrant

economy. Does he agree if British businesses ignore Taiwan they are

missing a trick? I totally agree with my honourable friend. In fact

he and I were in Taiwan at roughly the same time back in September. I

applaud the work that he does for the APPG, for Taiwan. Taiwan has a

long-standing open market to UK goods and services. We need to make

sure that we work hard to remove the few remaining barriers there are.

That was the purpose of the talks in September. I think the message from

this House should go out loud and clear to British businesses that

Taiwan is a very good place for them to do their business.

Thank you, Mr Speaker. Does my honourable friend see any reason why

this will not continue after we leave the EU? Mr Speaker... Thank

you, Mr Speaker. Number six. The South-West connects companies in

Cornwall across the world. Cornish companies in all sectors can access

a full range of department for international trade services. We

have launched the great dot gove website. New Cornish exportses step

into the place and help compete in high growth markets. There's been a

flurry of businesses producing food, drink and other goods. There's no

doubt about the quality of their produce. Very few of these products,

food and drink go beyond Cornish borders, let alone overseas. Will

the minister accept an invitation to meet with these producers and help

them expand their markets? As my Right Honourable friend knows my

family have roots in corner over 100 family have roots in corner over 100

years, which means we are no longer an in-comer. He is a south-west MP.

He has met with Cornish producers. I am a frequent visitor to the county.

At the very first opportunity I will go with him to meet his constituents

and across the whole of Cornwall in order to explore ways we can really

push this fantastic county's product. Thank you very much.

Question number seven. Mr Speaker, I launched a trade

policy dialogue with the New Zealand Trade Minister to consider how we

can strengthen our economic ties. Last month the Prime Minister met

with the Prime Minister of New Zealand land and agreed for work on

a new agreement between the UK and New Zealand once the UK leaves the

European Union. Thank you very much. THE SPEAKER: The Government wanted

it to be grouped with number nine. Indeed. We are grateful. Thank you

very much Mr Speaker. I warmly welcome the early and constructive

dialogue with our colleagues and friends in New Zealand. Will my

Right Honourable friend do all he can to explore every opportunity of

bilateral trade with New Zealand, including the natural sin any gis

between our rural economies I very much agree. The UK exported over

?1.2 billion goods to New Zealand last year and opportunities for our

rural businesses will be an important part of the work as we

take forward dialogue with New Zealand, which I intend to visit

over the summer months. Thank you Mr Speaker. This year the

British New Zealand business asoishation reaches its --

association reaches its centenary. I have experience of the warmth

between our two countries. Does the minister agree with me that there is

a hope and that we look forward to a great increase in trade between our

two countries in the years ahead? Mr Speaker, I certainly hope that will

be possible, given the freedom we'll have outside the European Union to

negotiate such a free trade agreement. In fact it is not just

our two countries that will benefit, all countries around the globe will

benefit from the new global Britain and our attitude towards global free

trade with all the benefits it brings, especially to the world's

poor. The Secretary of State will know that New Zealand is a land of

30 million sheep. Six or seven sheep for every person. Has the Secretary

of State discussed the impact of a trade deal with the leader of the

National Farmers Union. They regard the combination of a 43% WTO tariff

on sheep meat and increased market access for New Zealand as

potentially fatal to our sheep farmers. How will the minister

protect them? As I said, that will be an important

part of our discussions. We will want to discuss with the NFU and

others how we do that. We need to take into account something which is

not mentioned very often, the interests of UK consumers in any

trade deal we come to. Question one. There are three tasks,

promoting exports, serving the why, maximising opportunities for wealth

creation, including through overseas direct investment, to support the

current account and negotiate the best trading framework for the UK

outside the EU. On terms of investment, I can announce that

Mcclarn will open a ?50 million manufacturing plant in Sheffield

which will create 200 new jobs. Given how desperate the

International Secretary is to negotiate a trade deal with the US,

what steps will be taken to make sure that Scottish farmers are not

on the cup? The quality produce will be a source of negotiation, but in

terms of undercutting Scottish economy, what I am told by investors

in the United States is that one of the things hanging over them that is

actually depressing investment opportunities is the threat of

separation. I welcome the recent establishment of a UK Israel trade

working group. We have seen bilateral trade between the UK and

is well increase year after year. Can the Secretary of State provide

further information about how the group works and does he share my

view that the Middle Eastern democracy should be one of our first

trade deals? My honourable friend is right to highlight the good trade

system we have with Israel. It was announced there will be a working

group on trade by the Prime Minister earlier in the week, but the EU

already has a trade arrangement with Israel and this is something in the

first instance we would look to continue. But I am sure there will

be many opportunities where we can improve on that, given the fact the

trade deal was done with one country and 28 and bilateral will be easier

to negotiate. The Secretary of State had promised that had he had the

opportunity to debate the trade agreement on the floor of the house,

but the promise was broken and the debate was sidelined to an obscure

committee earlier this week. Given that the UK will soon be responsible

for negotiating is an international trade deals following Brexit, what

assurances can the Secretary of State can be House that

parliamentarians will have the full opportunity to scrutinise such trade

deals in future and not be afforded the discourtesy that we have been

recently. It is not an obscure committee. It was a two and a half

hour debate in committee room ten following the proper procedures set

out by this House. At the end of the debate she failed to oppose

anything, yet in the Scottish Parliament yesterday they voted

against it en masse. They have changed their position on something

that has been debated for eight years in the space of 24 hours. Many

Cornishmen and women emigrated to seek work in the New Zealand in the

late 19th century. Will my honourable friend now support other

great Cornish exports, our wonderful produce, such as Cornish side

produced in my constituency? It is good to see the far west of the

country is being well represented on a one line whip. There are fantastic

products coming from her constituency, with many

award-winning brands. It is the job of the Department of International

trade to push exports from Cornwall to the four corners of the globe.

When I read to the Secretary of State in November to asked for an

investigation into his department was Mac support for any British

businesses engaging corrupt practices, he replied saying his

department had no power to conduct such an investigation. Last week

after the publicity surrounding Rolls-Royce's deferred prosecution,

he announced precisely such an investigation. When did the powers

of his department change? One will enquiry report back and why will he

-- and well he explained why he has not complied with the principles of

the OECD anti-bribery and corruption? Rolls-Royce has made it

clear it will not tolerate improper business of any sort. They continue

to operate with the Serious Fraud Office and we await the final

outcome. It would not be proper to comment before that. The details of

the statements... To contribute the trend of south-west transporting, a

large company has won a contract to provide technology to Indonesia.

While his department work with me to produce a short story to capture the

story and to encourage other SMEs? I'm sure my honourable friend had

something to do with that. Absolutely. We would all be

delighted to help in any way we can to help promote this investment. A

hard Tory Brexit will be damaging for the Scottish aerospace industry

which contributes more than 130 million to the Scottish economy.

Will assurances be provided that the Scottish aerospace sector will have

barrier free access to the European single market? It has been the very

clear aim of the government to ensure tariff and barrier free

access once we leave the European Union and that's what we intend to

negotiate. The Scottish aerospace industry will be stronger for being

represented by all of the United Kingdom. Does he agree with me that

company registration using a company 's house type model is important to

promote the economies of developing companies seeking foreign direct

investment and it's also good news for the UK financial services sector

that will follow on from such a scheme? My honourable friend makes

an important general point in a specific question. One we have an

open trading system, it is a win- win. The economies can benefit from

sharing the same system. How many employees have the Civil Service

recruited. We are adding 50 extra staff to our trade policy group and

will continue to do so. We will be increasing the numbers as we look at

our WTO numbers and our obligations there. Also one we look to the FTA

is that we have. The current number of 200 will be augmented as we go

forward. -- FTAs. We take an ongoing and continuous interest in the still

sector. It is obviously a sector facing difficulty at the moment that

the low global steel price, but we do see a good future for UK steel

and the Department of International Trade looks forward to taking part

in a hollow government approach to make sure that UK steel is sold the

board. Order. Urgent question. Yvette Cooper. To of the Home

Secretary to make a statement on the government 's decision to close