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UK Trade Performance
01 May 2024
Lead MP
Kemi Badenoch
Debate Type
Ministerial Statement
Tags
EconomyBrexitForeign AffairsBusiness & Trade
Other Contributors: 23
At a Glance
Kemi Badenoch raised concerns about uk trade performance in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister, Kemi Badenoch, highlighted the UK’s trade success since leaving the EU. She emphasised that the UK is now the world's fourth largest exporter and its services exports are at an all-time high. The minister also noted that manufacturing productivity has grown faster than in other G7 nations since 2010. Additionally, she mentioned several specific trade agreements and regulatory reforms to reduce red tape for businesses. She concluded by asserting that Britain is thriving as a sovereign nation of free enterprise and free trade.
Gareth Thomas
Lab Co-op
Harrow West
Question
The shadow minister questioned the Government’s record on addressing business challenges, including skills shortages, infrastructure issues, and net zero goals. He also inquired about discussions with the Transport Secretary to mitigate impacts on the automotive sector due to policy uncertainties.
Gareth Thomas
Lab Co-op
Harrow West
Question
The shadow minister raised concerns over the steel industry, questioning whether spending millions of taxpayers' money to make thousands redundant and leaving the UK without primary steelmaking capacity was worthwhile.
Gareth Thomas
Lab Co-op
Harrow West
Question
The shadow minister sought an update on the state of free trade agreement negotiations with India, which has been repeatedly promised but remains unfulfilled.
Gareth Thomas
Lab Co-op
Harrow West
Question
Lastly, the shadow minister inquired about reports indicating that FTA negotiations with the Gulf Co-operation Council may have stalled and requested an update on this situation.
Gareth Thomas
Lab/Co-op
Harrow West
Question
Critiqued the Government's record on trade and investment, highlighting policy uncertainties that have undermined business confidence. Cited OBR figures indicating a significant decline in foreign direct investment since 2016-17. Questioned the Minister's statement regarding exports growth, pointing out the impact of government policies on industries such as automotive and steel.
Minister reply
Acknowledged selective criticisms from the Opposition but defended the Government’s approach to trade negotiations and policy changes based on industry feedback. Corrected misinformation about jobs saved in Port Talbot and the presence of primary steel production in Scunthorpe. Emphasised that no deal would be signed without benefiting businesses, particularly farmers.
Question
Supported the Minister's approach to delaying targets for battery vehicles, but asked whether she would adopt Stellantis' advice not to fine motor manufacturers for producing petrol and diesel cars before a shift to electric vehicles.
Minister reply
Understood John Redwood’s point regarding industry concerns about the balance between policy mandates and business readiness. Confirmed that representations had been made to the Transport Secretary who would make final decisions.
Question
Challenged the Minister's statistics, citing a cost of living crisis with real GDP growth at 1%, significantly lagging behind EU and US averages. Pointed out that UK goods imports and exports were 7.4% smaller than in 2018, reflecting the biggest five-year decline on record.
Minister reply
Defended government policy against SNP's economic approach in Scotland. Rejected criticisms about trade costs post-Brexit by emphasising the impact of the pandemic and Russia’s war in Ukraine, arguing that imports from EU rising shows positive trading despite Brexit.
Question
Welcomed the Secretary of State's statement on increased trade with Japan and invited her to an event launching Baker McKenzie’s UK Japan Connect, which seeks to foster business and trade between the two countries. Mentioned a £777 million increase in total trade between the UK and Japan.
Minister reply
The hon. Friend was thanked for his question and confirmed that we have signed an upgraded FTA with Japan post-Brexit and are adding more chapters to these deals, particularly digital trade.
Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Question
Asked the Secretary of State about services-only trade agreements, referencing the OBR figures showing UK's lowest G7 trade intensity. Questioned why goods exports have fallen by £31 billion over a year and expressed concerns about chaos at the border due to new checks.
Minister reply
The right hon. Gentleman was thanked for his questions. The Minister confirmed that we have pursued services-only deals with Singapore and Ukraine, but most countries still want goods deals as well. She acknowledged there will be costs and opportunities from leaving the EU and said her department is doing everything possible to minimise burden at borders.
Question
Asked if my right hon. Friend agrees that UK's track record of success in foreign direct investment and trade deals contrasts starkly with Labour’s track record, noting under Labour the UK's share of global trade declined.
Minister reply
The hon. Friend was thanked for her question; she is correct about figures on our trade dropping under Labour.
Question
Asked what measures would ensure Northern Ireland can take advantage of UK’s trade deals with 70 countries, noting Northern Ireland suffers from not having full access.
Minister reply
The hon. Member was thanked for his question; the Windsor framework is one measure to iron out issues. The Government looks at where Northern Ireland can exploit the benefits of being part of both the EU and UK single market.
Julian Lewis
Con
New Forest East
Question
Asked if it was true that there are eight times as many people sitting on the Conservative Front Bench as there are on the entirety of the Labour Back Benches. Asked to re-emphasise that Labour does not like good news and leaves the Chamber when there is any.
Minister reply
My right hon. Friend’s point was acknowledged, noting it is clear Labour does not like good news.
Wera Hobhouse
Lib Dem
Bath
Question
Noted new checks on food imports from the EU will see costs for importers rise by 60%, which will have a severe impact on small businesses and consumers. Asked how those would be protected.
Minister reply
The hon. Lady was thanked for her point; previously complained about lack of checks, now complain about having them. Checks are necessary to maintain standards.
Question
Welcomed the statement on progress in business and trade, noted UK has been fourth biggest exporter in the world. As Prime Minister’s trade envoy to Kenya, asked what barriers could be removed for British businesses to grow exports.
Minister reply
My hon. Friend was thanked; officials have been engaging with Kenyan counterparts to address market access barriers, including working closely with Anti-Counterfeit Authority.
Jim Shannon
DUP
Strangford
Question
I thank the Secretary of State for her positivity and enquire about the decrease in new jobs created in the UK from 2021 to 2023. What discussions has she had with the Department for the Economy, and the NI Assembly, regarding Northern Ireland’s employment contribution in 2024-25?
Minister reply
The point made is that complacency about job creation trends cannot be entertained. The minister emphasises the importance of working closely with the Department for the Economy to increase employment and improve productivity.
Martin Vickers
Con
Brigg and Immingham
Question
The Secretary of State's statement is encouraging, especially regarding manufacturing. However, will continued government support be forthcoming to maintain growth in that sector?
Minister reply
A £4.5 billion advanced manufacturing plan has been put in place. The minister also highlights efforts to attract foreign investment and emphasises the global interest in UK manufacturing and green industries.
Question
Congratulating the Secretary of State, he asks if she agrees that Brexit enabled such trade agreements as the one with Morocco. He also asks for continued prioritisation of work with Morocco.
Minister reply
The minister affirms the benefits of independent trade policies post-Brexit and expresses gratitude towards Rob Butler's role in promoting UK-Morocco relations.
Question
Welcoming the statement, Lia Nici enquires about the growth attributed to UK freeports. She mentions Great Grimsby’s opportunities in carbon capture and storage.
Minister reply
Freeports are a post-Brexit policy initiative aimed at attracting investment. The minister agrees that Great Grimsby has significant potential in these areas.
Question
Welcoming the statement, James Davies asks for updates on Snowdonia Cheese regarding UK’s CPTPP accession and tariff-free access to Canadian and Mexican markets.
Minister reply
The minister agrees that CPTPP accession is progressing well. She offers to arrange a meeting between officials and representatives of Snowdonia Cheese.
Richard Fuller
Con
North Bedfordshire
Question
Critiquing Labour’s approach to the labour market, Richard Fuller asks if the right regulation versus stifling legislation is key for backing British business.
Minister reply
The minister agrees that excessive regulations can stifle enterprise. She notes fears about proposed Labour policies and their potential negative impact on businesses.
Question
Welcoming the statement, Jonathan Gullis discusses challenges faced by the ceramics industry due to rising energy prices and inquires if they can fully participate in future trade agreements.
Minister reply
The minister assures support for ceramics exports through FTAs. She acknowledges difficulties due to high energy costs but highlights efforts like supercharger technology.
Question
Welcoming the focus on balance of trade and manufacturing, Miriam Cates asks about support available for small manufacturers facing barriers to exporting.
Minister reply
The minister acknowledges the need for SMEs and announces efforts through the export strategy to provide tailored support for smaller businesses.
Shadow Comment
Gareth Thomas
Shadow Comment
The shadow minister, Gareth Thomas, criticised the Government's performance since Brexit. He pointed out that business confidence has been undermined by policy changes and uncertainty. Additionally, he highlighted that British exports have grown slower than other G7 members besides Japan, and funding cuts have affected small businesses' ability to engage in international trade shows. The Labour Party also raised concerns about specific trade deals with Europe and India.
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