Thursday Volume 672 5 March 2020 No. 35 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 5 March 2020 © Parliamentary Copyright House of Commons 2020 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 961 5 MARCH 2020 962 “A USA trade agreement could help our sector. For example, House of Commons there are high tariffs on ceramic catering-ware imports…and without this barrier our exports to the USA could grow.” Of course we will take action through the Trade Remedies Thursday 5 March 2020 Authority to deal with the illegal dumping of ceramic products on the UK market, but it is simply wrong to say that the ceramics industry would not benefit from a The House met at half-past Nine o’clock US trade deal. PRAYERS Bill Esterson: But Laura Cohen is not talking about the type of trade deal that the Government are proposing, is she? The BCC has warned of the dangers of the [MR SPEAKER in the Chair] Government’sproposed mutual recognition clauses, which is where the flood of low-quality imports would come from. The Secretary of State’s own scoping assessment says nothing about the impact of cheap US imports on Oral Answers to Questions UK manufacturing either, so why will she not listen to the industry? Should the Government not rethink their approach to the US agreement and look after our own excellent manufacturing sector, rather than pursuing a INTERNATIONAL TRADE policy of “America First”? Elizabeth Truss: I find this pretty ludicrous. The hon. The Secretary of State was asked— Gentleman will have seen in the scoping assessment that virtually every sector of the UK economy, including UK/US Free Trade Agreement manufacturing and agriculture, will benefit from a US trade deal. Steelite International, a fantastic company 1. Aaron Bell (Newcastle-under-Lyme) (Con): What that I visited recently in Stoke-on-Trent, has also welcomed recent assessment she has made of the potential economic the potential removal of tariffs on its products—up to benefits to manufacturing industries of a free trade 28% on dinnerware—which it says will help it expand agreement with the US. [901114] its operations. The Secretary of State for International Trade (Elizabeth Robert Courts (Witney) (Con): Will the Secretary of Truss): A free trade agreement with the US could deliver State please comment on some of the parts of her a £15 billion increase in bilateral trade, increase proposals that are likely to benefit manufacturing and manufacturing output and benefit all parts of the UK high-tech companies in west Oxfordshire and enable economy, particularly the midlands, Scotland and the them to export their goods to the United States? north-east. Elizabeth Truss: One of the points that we laid out in Aaron Bell: I thank the Secretary of State for that our negotiation objectives is that we want to achieve an answer, and for the scale of the Government’s ambitions advanced digital and data chapter. Currently, 79% of all for the trade deal. In Newcastle-under-Lyme we have a our services are provided remotely. A digital and data number of firms that have US subsidiaries or sister chapter will give us the ability to underwrite those companies, or that themselves have US parent companies. transactions and do more electronically,which will provide Can she confirm that a comprehensive UK-US trade huge benefits to those high-tech industries in my hon. deal would benefit such firms by cutting red tape and Friend’s constituency. increasing the trading ties between our two countries? Joanna Cherry (Edinburgh South West) (SNP): All Elizabeth Truss: My hon. Friend is absolutely right; this debate between the Secretary of State and Labour’s every morning more than 1 million people in Britain get Front-Bench spokesperson shows how important it will up and go to work for American firms, and more than be to scrutinise the small print of the deal, so will she 1 million people in the US go to work for British firms. allow this Parliament a vote on the deal, such as the We want a closer economic relationship so that we can kind that the US Congress will get, or does she think share ideas, products and goods, to the benefit of both that America deserves more democratic scrutiny of the nations. deal than the United Kingdom? Bill Esterson (Sefton Central) (Lab): The Secretary of Elizabeth Truss: We have a parliamentary system State told us on Monday that ceramics factories in the in this country, so for these types of decisions the UK could benefit from a US trade deal, but that is not treaties are laid before Parliament through the CRAG— the view of the British Ceramic Confederation, which Constitutional Reform and Governance Act 2010—process. has warned of the dangers that low-quality ceramics I point out to the hon. and learned Lady that we also would have on UK industry. Does she not accept that have an extensive programme of engagement with business. the manufacturing industry is right to be concerned We have 17 expert trade advisory groups, through which about the threat posed by the agreement she is proposing? we will ask business for their specific feedback to ensure that we are not lowering standards, and to ensure that Elizabeth Truss: Laura Cohen, of the British Ceramic we have the right standards for our industry. That is the Confederation, has said: consultation process that we are undertaking. 963 Oral Answers 5 MARCH 2020 Oral Answers 964 Goods Exports Andrew Bridgen (North West Leicestershire) (Con): What progress has been made in laying the groundwork 2. Mr Philip Hollobone (Kettering) (Con): What the for a UK-Australia free trade agreement? Is a timetable three fastest growing UK goods exports were in 2019. in place for the commencement of those negotiations? [901116] Conor Burns: This week we have published the proposals The Parliamentary Under-Secretary of State for for the United States deal, and my right hon. Friend International Trade (Graham Stuart): UK goods exports the Secretary of State for International Trade is ably were up 6.4% last year to a record £372 billion. Interestingly, leading on Australia, Canada, Japan and, potentially, the three fastest growing UK goods exports in 2019 the comprehensive and progressive agreement for trans- were: one, unspecified goods; two, works of art; and Pacific partnership. She will come to the House in due three, jewellery. course, hopefully soon, to lay out full proposals for the terms of those negotiations1. Mr Hollobone: Are UK goods exports growing quicker to EU countries or to non-EU countries? Adam Afriyie (Windsor) (Con): As the Prime Minister’s trade envoy to Ghana and other parts of west Africa, I Graham Stuart: In 2019, goods exports to the EU am delighted to be meeting a delegation this afternoon were down by 0.9% to £170.6 billion, while goods to talk about our expertise in science and technology exports to the non-EU were up by 13.6% to £201.5 billion. and how we can help to support development in those UK/EU Trade Agreement countries. Does the Minister agree that, as we look out to the rest of the world post Brexit, it is trade with 3. Sarah Olney (Richmond Park) (LD): What assessment developing nations that will deliver the jobs, prosperity she has made of the potential merits of a trade agreement and mutual benefit we seek? with the EU on similar terms to the EU-Australia trade negotiations. [901117] Conor Burns: I absolutely agree with my hon. Friend. He does an excellent job, for which I thank him, as The Minister of State, Department for International trade envoy to Ghana. We see enormous potential for Trade (Conor Burns): The United Kingdom has published development and people’s life chances, particularly on its approach to negotiations with the European Union, the continent of Africa, in free trade between us and and the first round of talks is already under way. The Africa, and around the world. Free trade is the route to United Kingdom is looking for a free trade agreement prosperity, and it is the route to lift people out of with the European Union based on EU precedent. poverty. This Government will always champion it for Whatever the outcome of the talks led by David Frost the most deprived people in the world. and “Taskforce Europe,” this year we will recover our political and economic independence in full. Matt Western (Warwick and Leamington) (Lab): The Minister has just mentioned the Department’s economic Sarah Olney: The question was about whether the impact assessments on future trade deals with Australia, Government are seeking to agree what they call an New Zealand, Japan and a CPTPP-type deal, but he Australia-style deal between the EU and the UK. Given will understand that a CETA-type deal—a Canada-style that there is no deal between Australia and the EU, can deal with Europe—will hit our economy by 6.2%. To the Government confirm whether they are happy to what extent does he believe that the trade deals done accept a no deal between the UK and the EU? with Japan, Australia, New Zealand and so on will Conor Burns: We already have a deal with the EU compensate for that huge loss to our economy? that the Prime Minister secured last year. The question now is whether we can secure a free trade agreement Conor Burns: We do not see these things as mutually with the EU.