Thursday Volume 663 11 July 2019 No. 329 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 11 July 2019 © Parliamentary Copyright House of Commons 2019 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 423 11 JULY 2019 424 Dr Fox: I would go further than my hon. Friend and House of Commons say that free trade is beneficial for prosperity, stability and security, in the United Kingdom and beyond. The creation of Her Majesty’s trade commissioners is one of Thursday 11 July 2019 the most important elements of the Department for International Trade, and I am passionate about increasing the size of the DIT’s overseas network, including in the The House met at half-past Nine o’clock Commonwealth. Therefore, this morning I am proud to announce the creation of a new HM trade commissioner PRAYERS for Australasia. The post will be a senior civil service 2 director role and will be externally advertised later this year, to attract the best and brightest talent. [MR SPEAKER in the Chair] Kerry McCarthy (Bristol East) (Lab): To return to the subject of continuity agreements, a number have been put in place but they do not apply to some of our Oral Answers to Questions biggest trading partners. Does the Secretary of State really think that by the end of October we will have a significant number of agreements in place with those International Trade countries with which we do the most trade? The Secretary of State was asked— Dr Fox: Well, 10.7% of our trade is done under EU trade agreements with third countries. In fact, the largest Free Trade and WTO Reform of those, with Switzerland, and some of the other largest—for example, with the European economic area 1. Andrew Lewer (Northampton South) (Con): What and South Korea—have already been concluded or steps he is taking to promote free trade and WTO signed, and I expect further agreements to be reached. reform. [911893] Helen Goodman (Bishop Auckland) (Lab): I do not 2. Robert Courts (Witney) (Con): What steps he is know whether the Secretary of State saw the alarming taking to promote free trade and WTO reform. [911896] report in yesterday’s Financial Times on the impact on the Amazonian rain forest of the EU-Mercosur trade The Secretary of State for International Trade and deal. Of course free trade is a good thing, but not if the President of the Board of Trade (Dr Liam Fox): This cost is climate change. Does he agree? weekend, it will be three years since my Department was formed, and in that time the UK has worked with partners to ensure that the World Trade Organisation is Dr Fox: This Government have been very consistent equipped with the tools needed to tackle present challenges in our approach to this matter. In fact, next week I will and address 21st-century trade issues at a time of significant be setting out, at a slightly lesser level, moves that the global headwinds. I emphasised the urgent need for Department for International Trade intends to take to WTO reform in discussions with my counterparts at the mitigate our own international travel. We all have a G20 trade and digital economy ministerial meeting in responsibility, at international, national and personal Japan a few weeks ago. level, to take climate change absolutely seriously. In international agreements, the environmental impacts are very much looked at. Of course, that agreement has Andrew Lewer: Can the Secretary of State please not yet been finally concluded. explain why some nations, such as Canada, are refusing to roll over their existing EU free trade agreements, while many others, such as Switzerland, have happily Mr Nigel Evans (Ribble Valley) (Con): I congratulate done so? the Secretary of State and his Department on the latest export figures, which have reached another new high, Dr Fox: Continuity of existing trade terms is in but there is clearly potential for further growth, particularly everybody’s interests. I have to say that when the House post Brexit. What plans does he have to ensure that we of Commons gives mixed signals about the possibility have sufficient staff and personnel in high commissions of a no-deal exit, quite understandably some of our and embassies throughout the world looking for those trading partners wonder whether it is worth investing in opportunities and feeding them back to British firms? getting those continuity agreements. What I would say to those trading partners is that a no-deal exit is not Dr Fox: For Britain to be able to sell abroad, we need entirely within the control of the United Kingdom; we to be able to do two things simultaneously: understand might end up with a no-deal exit from the European what Britain has to sell abroad and understand the Union. It is in everybody’s interests to have those safety markets we are selling into. That is why my Department nets in place. is bringing in a major change to rotate our staff from our international posts through our sectors in the UK, Robert Courts: Free trade has the ability to spread so that they can understand what the UK can do in the blessings of prosperity and to bring nations terms of services and goods in a real-time way as well as closer together. What is my right hon. Friend doing to understand the markets. It is not just about how many spread free trade, particularly with our friends in the people we have in the market, but about how well they Commonwealth and the Anglophone countries? understand what is happening in the UK. I hope that 425 Oral Answers 11 JULY 2019 Oral Answers 426 this innovation will lead to an increased capability for Bill Esterson (Sefton Central) (Lab): The Society of the UK and improve our competitiveness vis-à-vis other Maritime Industries says that export finance support in exporting countries. the UK lags behind what is available in other countries. It is calling for a much-needed follow-up detailing the Stewart Hosie (Dundee East) (SNP): We recognise specifics of the export strategy. If the Government are the need to reform the WTO, not least in the area of serious about the UK being a zero-carbon economy, speeding up dispute resolution. We also recognise the where is the detail, the coherent plan and the investment benefits of regional trade agreements and bilateral into exports of our world-leading renewables sector? agreements that can be WTO-compliant. However, it Labour believes in the industry; when will the Government remains essential that we have a fully functioning WTO start to? implementing globally agreed trade rules, so may I ask Graham Stuart: I shall try to give a straight answer to the Secretary of State to take on board and to agree a not entirely straight question. As I said, we have the with me that in these negotiations on reform he should sector deal. We have the export strategy and we are reject some of the approach of the United States, which putting enormous effort into that. I am pleased to say, is to suggest that it will walk away from the WTO if it Mr Speaker, that in this 100th centenary year of UK does not get its own way? Export Finance, it has, under this dedicated trade Department, been rated the best export credit agency in Dr Fox: I absolutely agree that we need an international the world. rules-based system based on the WTO. It does require reform, but the fact that it needs reform is not an excuse Mr Speaker: It is good to know that a centenary to leave—it is an excuse to be more engaged in those year marks 100 years and that 100 years would be reforms. It is worth pointing out that the United States considered to constitute a centenary. I wonder whether has done very well, winning around 90% of the cases it a 100th centenary year might be in danger of being a has taken to dispute at the WTO. I hope that we all tautology. understand that the alternative to a rules-based system is a deals-based system, and the biggest casualties of Leaving the EU: UK Trade Policy that will be developing countries. 5. Trudy Harrison (Copeland) (Con): What plans he Renewable Energy Exports has to use the Board of Trade to ensure that the constituent parts of the UK benefit from UK trade policy after the UK leaves the EU. [911899] 3. Chris Elmore (Ogmore) (Lab): What plans he has to increase exports by the renewable energy sector. The Secretary of State for International Trade and [911897] President of the Board of Trade (Dr Liam Fox): Re-establishing the Board of Trade has been one of this The Parliamentary Under-Secretary of State for Department’s major achievements over the past three International Trade (Graham Stuart): Promoting renewables years, and it will continue to meet in all UK nations and is, of course, one more function of a dedicated trade regions.Included as advisers to the board are the Secretaries Department, and we have export campaigns targeting of State for Northern Ireland, for Scotland and for renewable energy opportunities across Europe, Latin Wales, and it has representation from business advisers America and south-east Asia, along with support from across the UK. We will make sure that all parts of programmes. For example, the offshore wind sector the UK benefit from the jobs and investment that come deal commits the Department for International Trade with an independent UK-wide trade policy.