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Thursday Volume 687 14 January 2021 No. 160 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 14 January 2021 © Parliamentary Copyright House of Commons 2021 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 467 14 JANUARY 2021 468 European Union that we want to de-escalate it and House of Commons reach a negotiated settlement. This dispute has already been going on for 16 years and has caused much damage. Thursday 14 January 2021 I am seeking an early meeting with the new US trade representative, Katherine Tai, and this will be one of the The House met at half-past Nine o’clock items on my agenda. I am also working closely with the new Secretary of State for Business, Energy and Industrial PRAYERS Strategy on this issue. [MR SPEAKER in the Chair] John Lamont: I know that everybody in Government is working hard on this, but I want to reiterate the huge Speaker’s Statement financial strain that the tariffs are having on the textile and cashmere industry in my constituency in the Scottish Mr Speaker: I should like to add to my brief comments borders, which I fear will cost many local jobs. Will the yesterday to pay tribute to Godfrey Cameron, who Government consider offering financial compensation passed away on Tuesday. Godfrey was part of the to the firms affected to protect local jobs and this security team who did so much to keep us safe here. He industry? was a very popular and respected colleague, always looking to help and to make a difference. He will be Elizabeth Truss: My hon. Friend makes an excellent greatly missed. Our condolences go to his wife, Hyacinth, point. We are looking at supporting industry, including and his children, Leon and Renee. through the BEIS fund that will invest £10 million to Virtual participation in proceedings commenced (Orders, help distilleries go green, and no doubt the Treasury is 4 June and 30 December 2020). looking at other affected industries as well. If we had [NB: [V] denotes a Member participating virtually.] accepted the advice from Labour to put additional tariffs on US products such as sweet potatoes and nuts, we would likely be hit by more tariffs as Germany and Oral Answers to Questions France were, as announced on 30 December. Gareth Thomas (Harrow West) (Lab/Co-op): The INTERNATIONAL TRADE Secretary of State has threatened to reimpose tariffs on the United States if the Airbus dispute is not settled, but that threat will only carry any impact if the US The Secretary of State was asked— believes that we have the legal authority to carry it out. Scottish Goods: US Tariffs Will she agree to publish the UK’s legal advice or our exchange of letters with the World Trade Organisation David Mundell (Dumfriesshire, Clydesdale and to prove that she is not bluffing and that we genuinely Tweeddale) (Con): What steps she is taking to reduce have the authority to reimpose those tariffs if we need tariffs on the export of Scotch whisky to the US. to do so? [910744] Elizabeth Truss: I am very clear that we have the John Lamont (Berwickshire, Roxburgh and Selkirk) authority to impose those tariffs. We have acquired (Con): What progress she has made on the removal of rights as a result of leaving the European Union. But I US tariffs on Scottish goods. [910764] go back to the point I was making: the hon. Gentleman has advocated putting additional tariffs on products The Secretary of State for International Trade (Elizabeth such as sweet potatoes and nuts, so presumably he Truss): My right hon. Friend has been a huge champion thinks that we have those acquired rights. for Scotch whisky.Wehave been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. That is the way forward, not Free Trade Agreements: Small and Medium-sized escalating this tariff dispute. Enterprises David Mundell [V]: The Secretary of State has worked Paul Howell (Sedgefield) (Con): What steps she has incredibly hard in negotiating with the United States to taken to help ensure that SMEs in Sedgefield can benefit try to find a bilateral settlement to the Airbus-Boeing from future free trade agreements. [910745] dispute to facilitate a deal with the US. Of course she is aware of the significant damage that the Scotch whisky industry continues to suffer, with export losses now Rob Butler (Aylesbury) (Con): What steps her approaching a staggering £450 million. Will she reassure Department has taken to help ensure that SMEs in me that as soon as possible after the new US Administration Buckinghamshire can benefit from future free trade is in place, she will urgently pick up negotiations on a agreements. [910761] deal to end tariffs? Will she update the House, before that, on what support she requires from other UK The Minister for Trade Policy (Greg Hands): The Government Departments to ensure that a deal is agreed Government have included, and will continue to seek to by the whole of the UK Government? include, specific SME chapters in all our free trade agreements to ensure that SMEs are provided with the Elizabeth Truss: I completely agree with my right information necessary to make informed commercial hon. Friend about the urgency of ending this tariff decisions and seize the great new opportunities provided dispute. I have been clear with the United States and the by these agreements. 469 Oral Answers 14 JANUARY 2021 Oral Answers 470 Paul Howell [V]: The support for SMEs in the trade of Clwyd South, which saw delays last week due to agreement is great to see, but may I ask the Minister to additional paperwork and permanent extra costs for the continue that with a free trade agreement for the USA customs agent and veterinary oversight? that supports companies like Kromek in Sedgefield? It manufactures high-radiation detector material ingots Elizabeth Truss: My right hon. Friend the Chancellor that are shipped to the USA, attracting US import duty of the Duchy of Lancaster gave a statement on this incorporating the price for worldwide sale, with the issue yesterday, and he is working hard with the Brexit waste coming back to the UK for re-manufacture,attracting business taskforce to deal with those issues. We also further UK import duty. The removal of those duties have the trader support scheme for Northern Ireland. I would clearly support high-value jobs in Sedgefield and am pleased to say that freight volumes for Northern increase the global competitiveness of an export-led Ireland ports are at normal levels for this time of year, UK business. and there are no significant queues. Supermarkets are reporting healthy levels of supplies, but I certainly will Greg Hands: I thank my hon. Friend for that excellent pass on my hon. Friend’s issue to the Chancellor of the question on behalf of his constituency company, and I Duchy of Lancaster to ensure that it is resolved. can tell him that the US and the UK have a shared ambition to improve trade for our SME-focused economies Mr Speaker: Let us head to Scotland to Scottish on both sides of the Atlantic, to help companies such as National party spokesperson Stewart Hosie with the Kromek. There are three specific areas we are looking first of two questions. at. First, we want to reduce or eliminate tariffs. Secondly, we will have a wide-reaching SME chapter. Thirdly, we Stewart Hosie (Dundee East) (SNP) [V]: The Secretary are also looking at provisions on reimported goods as of State was copied in to a letter to the Business well. Those provisions will benefit around 32,000 UK Secretary from Vicky Leigh-Pearson, the sales director SMEs that already export to the US, such as Kromek, at John Ross Jr,Aberdeen, salmon producers and exporters. but also future SMEs. That will grow that trade, which It described in excoriating detail the “barrage of useless will suit our bustling and improving SME sector. information” on Brexit, which added no value or clarity for such food and drink exporting businesses. Would it Rob Butler [V]: The trade agreement with the European not be better to fix the problems at the UK-EU border, Union is absolutely fantastic for our country as a newly where real exports take place, rather than make vague sovereign nation, and it comes on top of deals already promises about future promotional campaigns? covering more than 60 countries. Can my right hon. Friend tell the House how he intends to go further still and secure opportunities in the Asia-Pacific region, Elizabeth Truss: I observe that the hon. Gentleman which would particularly benefit small businesses in my did not support a deal, so effectively he wanted no deal constituency of Aylesbury, but also those across the UK? for the people of the United Kingdom. I think it is a bit rich of him to raise issues when no deal would have Greg Hands: We are seeking an SME chapter in all been very, very tricky for the exporters he is talking our future free trade agreements. SME chapters are an about. Given that £200 million was given to the Scottish excellent way of assisting companies to navigate a free Government to prepare to minimise disruption, I suggest trade agreement. They distil information and make it he takes up the issue with Nicola Sturgeon to see how easier, particularly for companies without expertise in that money has been spent to help Scottish exporters.