Live International Trade Questions House of Commons

Chequers for the important Cabinet

meeting, Liam Fox answers questions

on international trade.

Order,

order. Questions to the Secretary of

State for International Development.

Chris Davies. Question one, Mr

Speaker.

The Prime Minister's trade

envoys do a great job engaging with

countries. Last year, trade envoys

helped contribute to export winds of

over £15.5 billion and based on an

outlay of just under £250,000 for

the programme over the same period.

Each trade envoy on average

supported £700 million in exports.

Does he plan to appoint any further

trade envoys beyond those already

appointed?

LAUGHTER

That was the least disguised job

application I have heard in some

time!

There are currently 30 trade

envoys covering 60 markets,

programmes are reviewed regularly in

consultation with overseas teams and

any new suggestions are put to the

Prime Minister, I will let my

honourable friend know as soon as

possible if any vacancies occur.

Before the trade envoys to anything

else, will he bring them all

together and allow them to have the

same briefing from the CPI that many

of the cross-party had from the CPI

this week because the briefing on

the impact of leaving the EU is a

disaster for working men and women

and industry and manufacturing in

this country?

As I often point out,

the working men and women of his

constituency had a very different

view about their reasons for leaving

the EU. I make sure our trade envoys

get a much wider range of briefings

than simply one highly suspect one

in that case.

Thank you. As the

Prime Minister's trade envoy to

Brazil, I have been immensely

impressed by the UK companies

already operating in Brazil, but

frankly, there are not enough of

them. And I urge him to challenge

business organisations including the

CBI to make sure they put exporting

at the heart of their work?

There is

only one...

Can I pay tribute to the

work my honourable friend has done?

We have a growing and increasingly

improving relationship in terms of

trade with Brazil, but he is right,

we require to put business exporting

at business heart. We will be

exporting more than 30% of our GDP

this year for the first year in a

considerable time.

What

parliamentary scrutiny is there of

this programme?

There is cross-party

ability to look at the programme, we

have a trade committee, questions in

this House, I have just reported the

value we think the programme has.

As

trade envoy to Ethiopia, I had a

meeting last week about the

Continental free trade area

agreement, an incredibly important

both for the future of all countries

in Africa and the UK. Would my right

honourable friend the roles for the

trade envoy programme to engage with

these free-trade areas covering more

than one country?

I would hope our

trade envoys along with the posts in

the various countries would

understand the value increased

inter-African trade can bring to the

countries concerned and bringing

opportunities for UK exporters.

Number two. The Government is

committed to seeking continuity in

trading arrangements to minimise

disruption to businesses, consumers

and trading partners and we will

ensure that institutional provisions

of existing agreements are met as

the UK begins to operate its

independent trade policy.

What

arrangements does the Government

have in mind in terms of

parliamentary shared goals around

these new arrangements coming into

place?

To be absolutely clear, Mr

Speaker, if she is referring to the

trade Bill presently, we are looking

at the transitioning of existing

trading arrangements with the EU,

all of those agreements have already

been through parliamentary scrutiny

in this House. If she is referring

to future trade agreements, that

will be something we bring back to

this House in due course.

What of

the new institutions you will need

to set up if we leave the EU? I

recently travelled to the Canada and

the US, their impartiality can be

critical in reaching economically

sound judgments, what assurances can

the Minister fact that the UK

Government is similar committed to

an independent free from undue

political interference?

I

congratulate her on the committee on

the recent visits to the US and

Canada because those are two of the

examples of trade remedy systems we

have studied, alongside Australia

and the EU itself. She is right it

is common but not universal to have

the investigation process

independent of government but still

a political decision at the end of

the process by ministers accountable

to Parliament and it is worth

pointing out the opposition parties

all voted against the creation of

this trade remedy authority in the

first place.

I do not know if a

bridge counts as an institution, a

new fixed link between Britain and

France, is it required to continue

to improve trade after Brexit?

We

have been absolutely clear right the

way through that the importance of

maintaining our trading relations

with the EU, which is why we are

seeking trade to be as friction free

as possible and we are seeking a

comprehensive free-trade agreement

with the EU.

The EU does not have

comprehensive free-trade agreements

with some of the world's major

economies, does the Minister believe

the UK is likely to strike such

deals quicker than the EU?

We remain

supportive of the EU's negotiations

with some of these trade partners,

whilst we are still members of the

EU, because we are strong believers

in free trade, we also have set up

14 trade working groups with many of

the leading economies including

China, India, and the US, and we

look forward to making further

progress with those arrangements in

due course.

Thank you. Our current

trading relationships with partners

ranging from Switzerland to Mexico

and many others are currently

overseen by joint committees of the

EU and other states. Can the

Minister told the House how many of

these committees will be replaced by

UK equivalents after Brexit, what

progress his department has made in

establishing these institutions,

where the staffing expertise will be

sourced from and at what cost to the

taxpayer?

I think I should tell her

first of all the UK has played a

leading role in establishing these

European union arrangements in the

first place, with countries like

Mexico, Switzerland. In terms of

where we go from here, the priority

is to make sure there is continuity

in trading relations with all of the

40 plus trading agreements we have

with the 70 plus countries making

sure those become UK arrangements as

we leave the EU, the precise format

of the further discussions we will

have with those partners will be

something for future arrangements.

Question three, Mr Speaker.

As we

leave the EU, the government intends

as far as possible to maintain the

effects of existing EU free trade

agreements and other EU preferential

arrangements including agreements

with Switzerland, Norway and Turkey.

Thank you. I will pursue the

question is not answered by the

Minister, the questions from my

honourable friend, in 2016, the

Secretary of State of the

international trade committee he

would prioritise securing an

agreement with Switzerland, the

current relationship between the EU

one Switzerland is overseen by some

20 joint committees, very

specifically, how many of these

committees will be replaced with UK

Swiss committees and how far along

the process of setting these

institutions up is his department?

I

actually met with Swiss ministers in

Geneva recently and we discussed

what the future arrangement would

be, how we would oversee the

arrangement is dependent on the

arrangement itself which is

currently under negotiation.

We do

not need trade agreements to trade,

do we?

No.

Thank you. The Secretary

of State told us he plans to

replicate all of the provisions of

the trade agreements the UK has as a

member of the EU with Norway,

Switzerland and Turkey, these

provisions include free movement of

people in the cases of Norway and

Switzerland under customs union with

Turkey. Can he confirm, is at the

Government's policy to replicate all

of these provisions?

In the

transitional arrangements we have,

we made it very clear that key

element is continuity so until we

create bespoke arrangements with

these countries, we will continue

the provisions that exist today.

Question number four, Mr Speaker.

We

have the opportunity to enhance our

global trading relationships

including with those countries with

whom we share bombs of history and

friendship, my right honourable

friend travelled to Australia and

New Zealand in November to promote

free trade and deepen the trading

relationships -- the bonds of

history and friendship. We have an

opportunity to continue this work

with all member states.

Has he

considered how UK agriculture will

compete with the Commonwealth

cousins when we agreed a free-trade

deal after leaving the customs

union?

I praise my honourable friend

for his distinguished business

career in this sector, before coming

to this House, something which

brings real expertise. He will know

we have established trade working

groups with both Australia and New

Zealand to explore possibilities in

trade and investment. These will

include agriculture but it is too

early to be sure how they will be

covered in these and other future

trading arrangements. I would just

add the New Zealanders for example

are interested in this, the High

Commission recently wrote to the

international trade select committee

saying, given the compliments of the

two economies, they want to be doing

something with us, and we very much

agree.

The Minister will be aware clearly

Wales has a large industry, one of

the price of the United Kingdom,

could be Prime Minister give his

assurances with negotiations with

the New Zealand that he doesn't risk

a Welsh farm industries?

We are all

keenly aware of the importance of a

British agriculture in all parts of

the United Kingdom, making sure that

we have not only the necessary

protections in place on things like

animal welfare standards, but also

promoting their opportunity to

export to those excellent British

goods. Food and rig is one of our

biggest growing exports and we want

people to take advantage of those

opportunities across the UK -- food

and drink.

What importance will the

Minister attached to deepening and

broadening our trade relationships

with four example India, with a

widening middle-class amongst its

population of 1.25 alien.

Indeed,

the Prime Minister's first bilateral

trade visit in November 2016 was

actually to India accompanied by the

secretary of state and myself -- 1.2

private pavilion -- 1.2

-- 1.25 billion. The Indian market

is difficult to crack the many

exporters, we have advantages in

doing business there and I think the

recent talks are led by the

secretary of State last month is

putting as in the right direction.

By leaving the customs union and

establishing a new ambitious

arrangement with the EU, we will

establish a frictionless trade as

possible and the freedom to forge

partnerships around the world.

The

Norwegians have a saying, nothing is

in as much of a hurry as a dead fish

on the back of a lorry. Like

Norway... Takes a minute! Like

Norway, Scotland exports most of the

fish it catches to the European

Union and that's why Norway has

chosen to be a member of the single

market, to avoid nontariff barriers

so fish can cross borders quickly.

What assessment has he made of the

impact of leaving the single market

on the Scottish fishing industry?

First thing to point out, the

majority of Scotland's exports go to

the rest of the UK, not the EU. And

before the Right Honourable Lady

talks about the value of the single

market, it's worth pointing out that

despite our membership of the single

market, we've had a growing trade

deficit with the European Union at

the same time has a surplus with the

rest of the world. We want to

establish conditions where all our

exports have access to the rest of

the world, and as experts point out,

90% of global growth in the next 50

years will be outside Europe.

What

is the preferred method of the

Secretary of State of insuring

frictionless trade between the

Republic and North of Ireland?

Through widespread and Liberal

agreement in trade with the European

Union as set out in the government

memorandum in December. Mr Speaker,

the great festival will be held in

Hong Kong in 2018 with over 70

confirmed speakers, showcasing the

best of British innovation and the

potential of the UK economy and the

strength of our world-class service

sector.

Britain is becoming a world

litter in artificial intelligence,

big data and the fourth Industrial

Revolution technologies that will

power export growth, can he ensure

these will be widely promoted at the

first festival?

Yes, for example an

AI based infrastructure technology

which has been used for projects in

this country as Crossrail will be

showcased but it will be an

opportunity for us to show the best

of British innovation in general.

Thank you, we are making great

progress in supporting UK businesses

to invest overseas as this will have

a substantial positive affect on the

UK economy. The DIC has addressed a

market failures to support British

businesses.

What update is the

Minister able to provide the House

on pilots, and could he explain the

opportunities overseas direct

assessment could present?

My

department's ODI support pilots have

successfully demonstrated the impact

of the government can have in

supporting UK businesses to overcome

barriers to market access and to

expand overseas. By harnessing the

private sector wherever possible and

focusing government intervention is

only on market failures, my

department has successfully

supported overseas developers for a

range of UK businesses in six global

markets.

Mr Speaker, in 2016, the UK had a

trade deficit with the EU and a

trade surplus with non-EU countries,

up from 2015. Latest figures show in

2017, the UK trade deficit in goods

and services and narrowed.

Balance

of trade figures were once regarded

as pivotal, thought to win or lose

elections even. Given we are now

going to escape the constraining

clutches of the European Union, will

my Right Honourable friend it

investigate in old friends,

rejuvenate our relationships in the

realm with allies like Australia and

New Zealand? What steps as he taken

to ensure preferential arrangements

with such old allies?

I think he

asks a good question. Can I put on

record my thanks to him for leading

very as governments trade

delegations recently, including two

Columbia, I know he takes an

interest in the subject -- including

two Columbia. We have set up groups

with Canada, the United States and

New Zealand, we also voted for the

EU free-trade agreement with Canada.

The Secretary of State has been in

all four of these markets are

leading efforts to break down trade

barriers and seek new trade

agreements.

Quite what Colombia made

of the Right Honourable Gentleman is

not recorded!

In Bristol, the music

industry is important and trade is a

service, what steps is the

government is taking to ensure the

creative industries are supported as

we leave the EU?

She's quite right

to point out the importance of

services to our trade. They

represent overall 80% of our

economy, 79% of jobs. The Secretary

of State and the whole team are

working closely with the DC MS to

make sure we continue to grow

exports from our creative sector to

make sure that investment from

abroad continues to come into our

creative sector. We visit quite

often places like text city, Tech UK

and make sure we work closely with

them to ensure we continue to

flourishing future for our creative

industries.

Last week as co-chair of

the all-party Kosovo group, I

visited a British company who have a

£20 million investment there. What

opportunities does the Minister for

CF or widening our trade in both

goods and services with both Kosovo

and neighbouring Balkan countries?

It's a good opportunity and a part

of the world I know well. The

company he is referring to is called

Fox and marble which is a highly

appropriate name for this question.

They find top-quality marble in

Kosovo for export. In terms of the

wider region, we work closely with

the Foreign and Commonwealth Office

promoting opportunities throughout

the region.

My department has a responsibility

for export promotion, forward and

outward direct trade policy. I'm

delighted to inform the House my

department has appointed the first

three of our network of trade

commissioners. They will service

trade commissions were China, North

America and South Asia respectively.

They will develop and deliver

strategies to make sure we can take

full advantage of leaving the

European Union, the single market

and the customs union.

I thank him

for that answer. What evidence is

the Minister seeing for growth in UK

manufacturing exports to the wider

world? Having returned from Pakistan

as a trade envoy with a leading

British companies, will the

Secretary of State join me in paying

tribute to our trade experts in

Pakistan?

Indeed I do to all of

those. We're seeing a big rise in

our manufacturing order books, not

least on the back of our strong

export performance. We have seen the

biggest growth in manufacturing in

terms of monthly consistent numbers

for 30 years and the figures

produced by the ONS this morning

suggest exports and now represents

33% of our GDP exports, the

second-highest figure on record.

Given the government front bench's

uncharacteristic failure to welcome

my Right Honourable friend the

member for Bradford South to the

bench, I know you would wish me to

do so. Is the secretary of State to

whether Food Standards Agency

recently did Saint large quantities

of outdated meet. -- recently

detained. It is believed to come

from Ireland and south America,

giving it is the parent company for

town of you feuds, one of its

directors Matthew Plunkett was also

a director of a company implication

it in the Irish horse meat scandal

of 2013 and found guilty of meat

labelling fraud, will the Secretary

of State and liaise urgently with

ministers in the Republic, with the

FSA here and the Irish food safety

authority to ensure the supply chain

for this illegal meat is identified,

that our sanitary and fight to

sanitary regulations are properly

enforced and those behind illegal

trade...?

If the meat was previously

hot, it would certainly be freezing

cold by now!

I wasn't aware of that

particular allegation, clearly it's

a cross government issued. I'll

ensure other ministers are aware of

it.

There is immense potential for

growth in bilateral trade and

investment between the UK and Israel

after we leave the EU. Does the

Minister share my home with yet

greater levels of trade with the

start of the nation and will he

update on progress made by the UK

Israel working group?

Thank you,

Britain's relationship with Israel

is stronger than ever with record

levels of bilateral cooperation and

trade investment science and

technology. As he says, the UK

Israel trade working group is making

good progress in ensuring continuity

in our trading relationships as we

leave the EU.

Bearing in mind the

Israel Apartheid week that is

upcoming in universities in which a

boycott of Israel is a big

component, can the Minister outline

how he intends to enhance trade with

Israel for our benefit and offset

this destructive campaign by the

anti-Israel movement?

We strongly

welcome our ties with Israel as I

know the Gentleman does. As has been

said, that Hartmann for

international trade has established

a joint trade working group and we

continue to liaise closely with the

Israeli government to strengthen

trade and investment ties and others

between this country and them.

Next

Friday I'll be attending the

business event which showcases the

brilliant small and medium-sized

enterprises in the North Devon. Will

he say what his department is doing

to attract international investments

to these businesses which formed the

bedrock of the south-west economy?

Thank you, we work in collaboration

with the heart of the south-west of

local enterprise partnership to

attract foreign direct investment

into Devon. More widely, the

department works with local

enterprise partnerships and local

authorities across the whole

south-west to promote inward

investment opportunities to

foreign-owned countries. Di I too

recorded 101 inward investment

projects in the south-west last year

creating 3402 new jobs.

A properly

managed to transition to period was

always top of the agenda for

businesses across Scotland,

particularly for thriving food and

drink sector. Does he agree with his

own government that a sensible

transition period is required or is

he sticking to his cliff edge

position which will have a

devastating impact for businesses

across Scotland and the UK?

I

believe that as we do across

government, that the simplest way to

get to the position that we will be

able to enjoy of leaving the single

market and Customs union is a

transition period which is carefully

planned and gives predictability to

business.

Single sentencing choir is

now required.

Last week I visited the US and I was

very encouraged by the positive

response from stakeholders, what

assessment have you made about the

potential of the UK has in respect

of the future trade deal with the

US?

We have four working groups with

the US at the present time and the

last one we announced the UK US

dialogue in my humble friend will be

pleased to know the first dialogue

will take place next month on a

semi-plu-mac involving 100

businesses, part of a very

constructive business -- SMEs.

Can I

tempt the Secretary of State to come

and visit a whiskey distillery and

will play do everything to ensure

future prosperity in my

constituency?

I have several

invitations to visit distilleries

and I will take a close personal

interest in this particular sector.

Further to the answer some moments

ago, does my right honourable friend

agree with me the prospects for

future trade with our close friend

and economic partner, India, remain

very bright?

Yes, he is quite right,

I mentioned that India trade audit,

just published, and the Secretary of

State met with his Indian

counterpart in January in our

meetings agreeing bilateral work

will now explore addressing barriers

in food and drink, life sciences, IT

and services.

The UK remains a major

transit hub for illegal wildlife

traffickers and reliant on the

board. Prevent the trade, can the

Minister tell colleagues at the Home

Office to ditch their plan to staff

it with volunteers?

This government

has taken enormous efforts on

stopping wildlife trafficking, my

right honourable friend for foreign

and Commonwealth affairs made this a

major part of his visit to Southeast

Asia last week, particularly with

reference to an animal which is most

trafficked across the world at the

moment, pangolin, and this

government is leading global efforts

in combating this horrendous trade.

Does my right honourable friend

agreed free-trade helps consumers by

lowering prices and it has been one

of the biggest contributors to

combating global poverty over the

last 100 years? Will he embrace the

opportunities created by Brexit to

do free-trade deals helping

consumers and British businesses?

At

the WTO this week, I was making the

case again for free trade and the UK

is a global champion of free trade,

we tend to discuss trade very often

in terms of producers, but we must

also remember free-trade has an

enormous benefit to consumers in

terms of lowering prices, improving

choice and increasing quality. It

has been the route by which we have

taken more than 1 billion people on

this planet out of abject property

in the last generation, something we

should celebrate.

No prosecutions

leading to convictions with no

register for arms brokers like the

USA, Canada, Germany and France,

with the Government selling weapons

answered buy equipment to human

rights abusers, are the Government

not implementing the rules?

They

rather revealing questions when they

try to -- they rather ruin questions

when they tried to get too much in.

It is better when shorter and more

pithy. Such an obvious point, the

honourable gentleman must be

extraordinary clever not to be able

to grasp it.

All export licence

applications are considered on a

case-by-case basis against the

Consolidated EU and national export

arms criteria. I would be happy to

meet with the honourable gentleman

to discuss these issues further.

How

can the many excellent businesses in

the Black Country benefit when we

leave the customs union?

My

honourable friend is a fine and

upstanding voice for the Black

Country. He will know manufacturing

experienced a 2.0% growth rate over

the last year leaving the customs

union provides an opportunity to