Category: Speeches

Leo Docherty – 2023 Statement on the UK Visit of Governor of Xinjiang

The statement made by Leo Docherty, the Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs, in the House of Commons on 9 February 2023.

We understand from the Chinese embassy that the governor of Xinjiang may visit the UK next week. To be very clear, he has not been invited by the UK Government or the Foreign, Commonwealth and Development Office, and we have no confirmation that he will, in fact, travel. Our expectation is that he will travel on a diplomatic passport, and therefore he has not yet been granted a visa. If he does visit, I assure this House that under no circumstances will he be dignified with a ministerial meeting.

China’s actions in Xinjiang are abhorrent and we will not legitimise them in any way. However, robust engagement to challenge human rights violations and to stand up for the rights of the oppressed is at the core of the UK’s diplomatic work around the world. We must be prepared to use diplomatic channels to achieve that end, hence officials would be prepared to offer him a meeting. In line with that principle, there is only one reason why such a meeting would take place—to make absolutely clear the UK’s abhorrence of the treatment of the Uyghur people and to say that we will not relent from exposing the horrors to which they are subject. That point needs to be set out clearly to China. It is only right that people responsible for human rights violations are confronted on these issues.

The UK has played a leading role in international efforts to hold China to account on Xinjiang. In 2019, we became the first country to step up to lead a joint statement on China’s actions in Xinjiang at the UN. Since that first statement, which was supported by 23 countries, we have worked tirelessly through our global diplomatic network to broaden the caucus of countries speaking out. Our leadership has sustained pressure on China to change its behaviour and consistently increase the number of countries speaking out. Most recently, our diplomatic effort helped to secure the support of a record 50 countries for a statement on Xinjiang at the UN third committee in October.

We have imposed sanctions on four individuals and one entity in Xinjiang, and have introduced robust measures to tackle forced labour in supply chains. We have consistently raised our concerns at the highest level in Beijing. Let me be absolutely clear that we will continue to emphasise at all levels that the world is watching what China’s authorities say and do in Xinjiang. They cannot hide their abuses. The UK and our allies will not turn away.

February 10, 2023
Liz Twist – 2023 Parliamentary Question on the Parliamentary Scrutiny of New Free Trade Agreements

The parliamentary question asked by Liz Twist, the Labour MP for Blaydon, in the House of Commons on 9 February 2023.

Liz Twist (Blaydon) (Lab)

What steps she is taking to support effective parliamentary scrutiny of new free trade agreements.

The Minister of State, Department for Business and Trade (Nigel Huddleston)

The Government are committed to transparency and effective scrutiny in our trade agenda, going beyond the statutory framework set out in the Constitutional Reform and Governance Act 2010. That includes providing extensive information prior to the commencement of talks on free trade agreements, as well as regular updates to Parliament during negotiations. At the end of negotiations, we have committed to additional parliamentary scrutiny time, as well as to publishing further information such as the advice of the independent Trade and Agriculture Commission.

Liz Twist

Over the last year, the Government’s former Environment Secretary, the right hon. Member for Camborne and Redruth (George Eustice), has labelled the Government free trade agreements a failure, and the Prime Minister has called them one-sided. Is such criticism the reason the Government spend so much time avoiding any real detailed scrutiny of these trade agreements?

Nigel Huddleston

I respectfully disagree with the hon. Lady’s characterisation that there is insufficient scrutiny, and I respectfully disagree with my right hon. Friend the Member for Camborne and Redruth (George Eustice), who made some comments earlier this year. Last time I answered this question, you quite rightly had a go at me, Mr Speaker, because I gave a long list of examples of extensive scrutiny on our free trade agreements. I will spare the House by not repeating it , but I refer the hon. Lady to the answer I gave previously.

February 10, 2023
Emma Lewell-Buck – 2023 Parliamentary Question on the Free Trade Agreement with the US

The parliamentary question asked by Emma Lewell-Buck, the Labour MP for South Shields, in the House of Commons on 9 February 2023.

Mrs Emma Lewell-Buck (South Shields) (Lab)

What recent progress she has made on a free trade agreement with the US.

The Minister of State, Department for Business and Trade (Nigel Huddleston)

We recognise that the US is not currently focused on FTAs. However, we stand ready to resume negotiations when they are ready. In the meantime, we are working to improve the trading landscape, including by removing US steel and aluminium tariffs and lifting the US ban on British lamb and beef. We are also working with the US on areas of shared interest that include digital trade, small and medium-sized enterprise support and supply chain security.

Mrs Lewell-Buck

The reality is that there has been no real progress and, despite all the previous rhetoric, there remains no free trade agreement with the US. Does the Minister think his suggestion that this is the fault of the US President will help or hinder future negotiations?

Nigel Huddleston

As I said, the US is not currently negotiating FTAs, not just with us but with any other country. We are working and we have very good dialogue with one of our closest allies in so many areas, including economically, culturally and militarily, and that dialogue will of course continue. As I said in my previous answer, we are working in many areas, including steel and food, to create opportunities, alongside work in respect of the memorandum of understanding. Considerable progress can be and will continue to be made, even without an FTA.

Sir Edward Leigh (Gainsborough) (Con)

Global free trade is and always has been the greatest motor for global prosperity, which is why many of us voted for Brexit. A free trade deal with America is the greatest prize of all. Will the Minister confirm that, as far as we are concerned, there are no barriers at all—whether it be chlorinated chicken or whatever—to trying to conclude an agreement? We want this deal with the US. Does the Minister think that it will happen?

Nigel Huddleston

We are very keen to conclude a deal with the US, but, at the moment, it is not able to enter into those negotiations. However, that will not prohibit us from continuing to find opportunities and to remove barriers where and when we can, as well as seeking those opportunities across the world. I appreciate what the right hon. Member said at the beginning of his question about how we, on the Conservative Benches, are firm proponents of free trade. It is good for the UK economy and good for the world economy, and we need to continue to make sure that that message is heard loud and clear.

Gareth Thomas (Harrow West) (Lab/Co-op)

Had the Conservative party negotiated a free trade agreement with the US, as it promised at the general election, British firms would have been protected from new market barriers to green trade that are being introduced by the US Inflation Reduction Act 2022. That means that new investment and jobs here in Britain in green energy, electric vehicles and new technology are at risk. Is it not the truth that the infighting in the Conservative party last year meant that Ministers woke up much too late to the threat and that they have done far too little since to try to ameliorate the damage?

Nigel Huddleston

As I said, the US is not focused on free trade agreements at the moment, and we are disappointed that the US has opted to pursue policies in the Inflation Reduction Act that will harm British businesses and impact global supply chains. The UK expects to be and, as the closest ally of the US, should be part of any flexibilities in the implementation of the IRA, and we will continue closely engaging with the US Administration to ensure that UK concerns are addressed.

February 10, 2023
Gareth Bacon – 2023 Parliamentary Question on Metro Mayors and Foreign Direct Investment

The parliamentary question asked by Gareth Bacon, the Conservative MP for Orpington, in the House of Commons on 9 February 2023.

Gareth Bacon (Orpington) (Con)

What recent discussions her Department has had with Metro Mayors on attracting more foreign direct investment.

The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)

I met Andy Street this week to talk about foreign direct investment, and Lord Johnson will meet the 10 Metro Mayors today and look to discuss how we can attract more investment into mayoral combined authorities and how the Department can connect strategic regional opportunities to major international capital, such as the sovereign investment partnerships that have been established over the past 18 months by the Department and the Office for Investment.

Gareth Bacon

I chair the all-party parliamentary group for London as a global city, and last year we published our first report, which featured analysis of the London-plus effect, a term coined by the London & Partners agency to show that our capital is the gateway to the world and that companies that first invest in London go on to contribute £7.6 billion and create 40,000 jobs throughout the country. Is my hon. Friend’s Department willing to consider convening roundtables with the Metro Mayors on how to maximise the potential benefit to the UK of the London-plus effect?

Kevin Hollinrake

My hon. Friend is absolutely right. Andy Street was very clear about the importance of London to regional development in the west midlands. The Department convenes roundtable joint sessions with the M10 Metro Mayors twice every year, in additional to ongoing ministerial-mayoral bilaterals and official-level engagement. Such meetings include the discussion of shared priorities in respect of international trade and investment and of greater collaboration throughout all regions to increase foreign direct investment from new and existing investors.

Chris Elmore (Ogmore) (Lab)

The Minister will know that there are no Metro Mayors in Wales, but there are city deals and leaders that link across the south-west of England into Bristol and across the south Wales belt. Will the Minister set out what he is doing to work with local government leaders in Wales to ensure that investment is brought into Welsh constituencies as well as those throughout England?

Kevin Hollinrake

The hon. Gentleman is absolutely right. We are pleased that across York and North Yorkshire we are about to get our own Metro Mayor; I am sure he is working hard to bring that kind of governance to his area too, because it clearly delivers opportunity right across the country. As he knows, the FDI stock in the UK is worth £2 trillion, which is the second highest amount in the world. I am sure the opportunities would be beneficial to the hon. Gentleman’s constituents should he strike that kind of deal.

February 10, 2023
Rachel Hopkins – 2023 Parliamentary Question on UK Automotive Exports

The parliamentary question asked by Rachel Hopkins, the Labour MP for Luton South, in the House of Commons on 9 February 2023.

Rachel Hopkins (Luton South) (Lab)

What steps she is taking to help increase automotive exports.

The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)

The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.

Rachel Hopkins

If we are to continue to drive British automotive exports, it is critical that automotive businesses such as Vauxhall in Luton can make the transition to manufacturing electric vehicles effectively. The rules of origin from 2024 onwards highlight the need to attract the wider electrified supply chain to the UK as soon as possible. How is the Minister working with the automotive sector to expand our domestic electric vehicle supply chain—especially in respect of batteries—to avoid any future tariffs when rules of origin come into effect?

Ms Ghani

The hon. Lady will hopefully find some comfort in the fact that I have many meetings with the Society of Motor Manufacturers and Traders and have met the automotive sector multiple times to deal with this issue. We are very much aware of the rules-of-origin issue, which is why we are investing so much in batteries. In particular, the Faraday battery challenge is a £541 million project to help us to develop new battery technologies. I have mentioned already that I was in Cape Town to deal with the diversification of access to critical minerals in supply chains to ensure that we can process them and manufacture here.

Mr Richard Bacon (South Norfolk) (Con)

Would the Minister like to congratulate Group Lotus in my constituency, which exports more than 70% of its car production? Would she like to take the opportunity to come to Hethel to see the new Lotus Evija supercar, which can do nought to 180 mph in nine seconds?

Ms Ghani

I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.

February 10, 2023
Giles Watling – 2023 Parliamentary Question on a Trade Envoy for the Commonwealth

The parliamentary question asked by Giles Watling, the Conservative MP for Clacton, in the House of Commons on 9 February 2023.

Giles Watling (Clacton) (Con)

What assessment she has made of the potential merits of establishing a trade envoy for the Commonwealth.

The Minister of State, Department for Business and Trade (Nigel Huddleston)

The countries of the Commonwealth are important trading partners. Our total trading relationship was worth more than £146 billion in the 12 months to September 2022, which is why my right hon. Friend the Prime Minister has already appointed trade envoys to 15 Commonwealth nations. We have trade agreements with 33 Commonwealth members, and five of the 11 members of the comprehensive and progressive agreement for trans-Pacific partnership are in the Commonwealth as well.

Giles Watling

As chairman of the 1922 committee’s Back-Bench foreign affairs policy committee, I recently shared our report with ministerial colleagues. One of its recommendations was the creation of a Commonwealth-specific trade envoy post. Does my hon. Friend agree that in this post-Brexit era, increasing trade and movement between the Commonwealth and the UK should be a top priority to foster economic growth? By the way, this is not a pitch for that job.

Nigel Huddleston

Yes, I am afraid that those jobs are at the discretion of the Prime Minister.

I hear what my hon. Friend is saying. We already have extensive coverage through the existing network, but we review the network regularly because we are committed to working with our allies in the Commonwealth to remove the barriers to trade and strengthen trading relationships to foster economic growth. Growing exports to Commonwealth countries is a priority, and trade increased by 25% in the year to September 2022. As for movement, we have a new global immigration system which is vital in supporting trade and economic growth, and the movement of business people on a temporary basis promotes and supports trade in services and goods and investment activities. Recognition of professional qualifications and business travel are always an important part of our trade deals.

February 10, 2023
Philip Hollobone – 2023 Parliamentary Question on Foreign Direct Investment since 2016

The parliamentary question asked by Philip Hollobone, the Conservative MP for Kettering, in the House of Commons on 9 February 2023.

Mr Philip Hollobone (Kettering) (Con)

If she will make an estimate of the level of foreign direct investment into the UK since 23 June 2016.

The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)

More global multinationals have set up subsidiaries in the UK than in any country other than the United States. This is the best place in Europe in which to raise capital. Between April 2016 and the end of March 2022, the Department assisted more than 8,700 foreign direct investment projects in the UK, which have created about 348,000 new jobs across the United Kingdom.

Mr Hollobone

The UK has had a great track record of attracting foreign direct investment since we voted to leave the European Union. The figures given by the Minister will include the £200 million investment by Ball Corporation in the United States in the UK’s largest and Europe’s most advanced can manufacturing plant, in Burton Latimer. How does the UK’s record of attracting foreign direct investment compare with those of our major EU competitors?

Ms Ghani

My hon. Friend has given a fantastic example of the opportunities that have been created. The UK is a highly attractive destination for FDI, and has been among the top recipients in Europe over the last decade. According to the Financial Times and the United Nations Conference on Trade and Development, the UK has the highest market share of greenfield FDI capital expenditure in Europe, at 20%—almost double that of Spain, which is in second place with 12%. It also has the highest levels of Food and Drug Administration stock in Europe, second only to the United States globally. It is remarkable how far we have progressed in such a short time.

Kerry McCarthy (Bristol East) (Lab)

The Biden Administration’s Inflation Reduction Act 2022 makes investing in the US very attractive, particularly for innovative green technology. How are we going to compete?

Ms Ghani

In my previous role I was dealing with the impacts of the Inflation Reduction Act, and I hope I will continue to do so, because so many business representatives whom I have met have raised it as a concern. The hon. Lady has referred to green technology. A great deal of work has already been done to promote all our expertise, especially in relation to hydrogen, but there is a huge amount of investment in the UK’s green technology sector and technology in general, and we are also a leading light when it comes to lithium. I was recently in Cape Town with our Green Lithium firm, which wanted to negotiate on how it could do more work in the United States. That is exactly what we are here to do—to facilitate collaboration of that kind.

February 10, 2023
Wera Hobhouse – 2023 Parliamentary Question on Trade with European Countries

The parliamentary question asked by Wera Hobhouse, the Liberal Democrat MP for Bath, in the House of Commons on 9 February 2023.

Wera Hobhouse (Bath) (LD)

What steps she is taking to help increase trade with European countries.

The Minister of State, Department for Business and Trade (Nigel Huddleston)

Europe remains a vital destination for British businesses, with exports of over £386 billion in the year to September 2022. That is up almost 25%, in current prices, on the previous year. As we speak, the Secretary of State is in Rome to establish the UK-Italy export and investment promotion dialogue, which will help to strengthen practical co-operation on exports in high-performing sectors and promote inward investment. We are also working closely with EU member states to tackle priority barriers and unlock export opportunities for UK businesses.

Wera Hobhouse

More than half of firms surveyed by the British Chambers of Commerce are struggling with the new post-Brexit export system. The Office for National Statistics reports that Brexit costs the economy £1 million per hour, and the UK economy has not recovered as well as other countries post covid. What plans does the Minister have to reduce trade barriers and EU border bureaucracy, which have hugely increased since Brexit?

Nigel Huddleston

As I said earlier, I hope that we can look at the opportunities of leaving the EU as well as trying to fight past battles. There are a host of opportunities; for example, I do not think that the EU had a particularly proud record on services around the globe. We are opening up services for many companies, which under the EU we were to a very large degree constrained in doing. We have huge resources for supporting businesses. Trade with the EU has been growing considerably, and we will do everything we can to support further growth.

Sir Desmond Swayne (New Forest West) (Con)

These barriers have had a greater impact on EU trade than on the UK. When does the Minister anticipate the EU will wake up to what is in our mutual interest?

Nigel Huddleston

My right hon. Friend makes a perfectly good point. Our agreement with the EU is one of the most thorough and comprehensive trade agreements, but we need to work further. We are constantly looking at opportunities—country by country, industry subsector by subsector—to open up more trade by reducing the barriers. These are barriers that also existed when we were in the EU.

Mr Speaker

I call the shadow Minister.

Gareth Thomas (Harrow West) (Lab/Co-op)

Over the past three years, according to the latest German trade figures, exports to Germany are up by almost a third from the US, by almost a quarter from the rest of the EU and by more than 10% from China, yet exports from Britain to Germany are down. Everybody else’s exports are up; Britain’s are down. Is it a lack of support to our exporters to Germany, is it the poor deal that the Conservative party negotiated with the EU, or does the Minister blame British business for the situation, as one of last year’s Prime Ministers once did?

Nigel Huddleston

Again, all I have to say is that I have much greater confidence in British industries taking advantage of opportunities, not only in the EU but around the world. I wish others in this Chamber shared that optimism and confidence in British business.

February 10, 2023
Mark Eastwood – 2023 Parliamentary Question on Export Opportunities for SMEs

The parliamentary question asked by Mark Eastwood, the Conservative MP for Dewsbury, in the House of Commons on 9 February 2023.

Mark Eastwood (Dewsbury) (Con)

What steps her Department is taking to help increase export opportunities for small and medium-sized businesses.

The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)

UK exports have grown by 24% year on year, and our landmark 12-point export strategy will challenge Government and the private sector to reach £1 trillion-worth of exports a year. As part of that strategy, we created the export support service, which has brought together helplines and services across Government to build a one-stop shop for UK exporters facing challenges in exporting to the EU. We are also delivering for businesses through our dedicated team of international trade advisers, reinforced by Department for International Trade events and programmes such as the UK Export Academy.

Mark Eastwood

Last month, I was delighted to co-host my first successful export academy at Kirklees College in association with the Department for International Trade and UK Export Finance. Will the Minister outline how local DIT officers and UKEF can assist SMEs to export their goods and services across the world?

Ms Ghani

Mr Speaker, may I first thank you for your leadership in hosting President Zelensky yesterday? It really was a humbling moment for us all. My hon. Friend the Member for Dewsbury (Mark Eastwood), with his can-do attitude, is constantly championing everybody in Dewsbury. As he may know, UK Export Finance offers a range of trade, finance and insurance products to help small and medium-sized businesses fulfil export contracts. It works with more than 100 private sector partners, including all major UK banks. UKEF support is underpinned by the innovative general export facility, a product designed to give SME exporters more flexibility when accessing trade finance. It unlocked almost £250 million of working capital loans in the last financial year. Local trade has obviously helped strengthen the “Made in the UK” branding, which provides export support to SMEs across the country. Face-to-face support for exporters in England is delivered via a network of around 200 international trade advisers. There is so much to say, but I think I should stop there.

Mr Speaker

Hear, hear. I call Matt Western.

Matt Western (Warwick and Leamington) (Lab)

SMEs in my area have been doing a huge amount of business internationally. One such company has been exporting 80% of its business for decades. In recent years, it has been challenged by China, and has had intellectual property issues; its IP has been stolen. I am afraid to say that it felt unsupported by the Department for International Trade. It faces an issue in Germany. Will the Minister meet me to help this business with the challenge that it faces in those countries?

Ms Ghani

The beauty of having former business Ministers in the new Department is that we are across most of these issues, including the issue of IP. I am more than happy to sit down with the hon. Gentleman, or to make sure that the right Minister does, because we need to protect our IP.

February 10, 2023
Greg Smith – 2023 Parliamentary Question on US State-level Market Barriers

The parliamentary question asked by Greg Smith, the Conservative MP for Buckingham, in the House of Commons on 9 February 2023.

Greg Smith (Buckingham) (Con)

What recent discussions she has had with her US counterpart on reducing market barriers at the state level in the US.

The Minister of State, Department for Business and Trade (Nigel Huddleston)

We are taking tangible steps to improve our trade relationship with our largest bilateral trading partner, the United States. We have already signed state-level memorandums of understanding with Indiana, and North and South Carolina, which we are using to address barriers and promote British business in priority areas such as procurement, renewable energy, automotive, and life sciences. Together, those states imported more than £3.3 billion of UK goods in 2021. In December, the previous Minister for Trade Policy met counterparts in California to discuss an MOU, and counterparts in Utah to advance our talks. We are also making progress with Oklahoma and Texas, alongside our regular engagement with states across the US.

Greg Smith

I welcome my hon. Friend’s answer, particularly the priority areas he outlined. However, from financial services to online shopping, digital trade is at the heart of doing business with our closest ally—the United States. Will my hon. Friend update the House on the progress made on removing barriers specific to such digital trade with individual states?

Nigel Huddleston

My hon. Friend is absolutely right to highlight the importance of the digital economy. We very much see digital trade as an excellent area to focus on, deepening ties between the US and the UK. As part of that, we are keen to explore where we might be able to facilitate co-operation and promote digital trade with the US at state level. Further, the US-UK trade dialogues in Baltimore and Aberdeen last year helped to identify a range of trade-related areas for the two countries to collaborate on, and we agreed to strengthen further our bilateral trade in a range of areas, including on digital trade.

Mr Speaker

I call the shadow Minister.

Ruth Cadbury (Brentford and Isleworth) (Lab)

After failing to get a trade deal with the United States, the Government have resorted to signing non-binding agreements with separate US states. The Minister’s answer to the hon. Member for Buckingham (Greg Smith) on the different sectors was interesting, but the Government have refused to confirm what economic benefits these agreements will bring to the UK economy. I give the Minister another chance: will he tell me what value in pounds and pence these agreements will bring to our economy?

Nigel Huddleston

Again, I am somewhat disappointed that the Opposition are talking down the opportunities we have. These MOUs seek to bolster the already strong trading relationships with US states, which, as I said, are worth £3.3 billion of UK goods. As we move through and implement the MOUs—we have good faith and goodwill with the people we have been negotiating with—we will inevitably increase our trade volumes. The US is already our strongest and most important trading partner, accounting for about 16% of the UK’s overall trade, and growing.

Jim Shannon (Strangford) (DUP)

In my constituency, companies are able to sell to Europe, the far east, South Africa and south America, but they have difficulty selling their products—foodstuffs that come from our farms across Strangford in Northern Ireland—to the US. Will the Minister give some indication of what can be done in conjunction with the Department for the Economy in Northern Ireland to open those doors to sales?

Nigel Huddleston

We are fighting for opportunities right across the UK. As I said, the US is a really important trading partner. With the MOUs, we are seeking further opportunities, but we are also working on removing trade barriers and inhibitions to trade. For example, since leaving the EU, we have secured major trade deals with the US, reinstating beef and lamb imports and ending damaging steel and aluminium tariffs, so we are working in individual sectors to try to find further opportunities at both state and federal level.

February 10, 2023