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UK Export Performance
18 September 2023
Lead MP
Nigel Huddleston
Debate Type
General Debate
Tags
UkraineEconomyNorthern IrelandBrexitBusiness & Trade
Other Contributors: 11
At a Glance
Nigel Huddleston raised concerns about uk export 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:
Lead Contributor
Opened the debate
The UK was the world’s fifth largest exporter last year, with a value of £849 billion in goods and services sold overseas. Despite global challenges like Putin's war in Ukraine and the COVID recovery, UK businesses have shown resilience. The focus is on developing services trade, accounting for over 70% of the economy, and targeting opportunities globally through ambitious trade deals.
Aaron Bell
Con
Newcastle-under-Lyme
Asked about the UK's position in artificial intelligence, which is third globally after the US and China. Emphasised the importance of investing in services and exporting AI expertise as we move towards an AI revolution.
Jim Shannon
DUP
Strangford
Asked if Northern Ireland could be part of the export success story, highlighting the region's young and vibrant economy with aspirations for excellence. He noted that the Minister usually responds positively to such questions.
Gareth Thomas
Lab Co-op
Harrow West
Asked why Ministers were not negotiating a veterinary agreement to resolve trade barriers faced by food, farming, and fishing businesses in entering the EU market. Highlighted real difficulties these sectors face with EU trade.
Gareth Thomas
Lab Co-op
Harrow West
The speaker asserts that British export performance has been outperformed by all other G7 countries except Japan over the past decade. He provides figures showing significant drops in exports to key markets such as Germany, France, and India since 2019. Thomas criticises recent government cuts to support programmes for businesses aiming to enter international markets. He also questions the effectiveness of current trade deals with Australia, New Zealand, and Japan, noting that these agreements do not provide substantial economic benefits. Moreover, he raises concerns about proposed unilateral measures concerning food labelling within the UK and Europe, warning of potential cost increases for businesses. Thomas concludes by advocating for a nationwide network of climate export hubs to support green technology exports and improve conditions for trade with Europe.
Aaron Bell
Con
Newcastle-under-Lyme
The Minister for International Trade and the Under-Secretary of State for Business and Trade have engaged effectively with businesses in Newcastle-under-Lyme. The Department for Business and Trade is supporting firms in areas that need levelling up, such as Aaron Bell’s constituency. Exports are at pre-COVID levels, and there's a target to reach £1 trillion by 2030. Improvements are being made in trade with Northern Ireland through the Windsor framework, and a Horizon deal was signed recently. The UK is working closely with the US on artificial intelligence governance and technology investments. Free trade agreements, possible due to Brexit, offer new opportunities for British businesses, including those in Newcastle-under-Lyme. Trade deals also benefit consumers by lowering import prices. Labour's intentions to reverse Brexit create uncertainty; Starmer has pledged a major rewrite of the Brexit deal despite previous commitments.
Kirsty Blackman
SNP
Aberdeen North
The SNP MP argues against the government's approach to Brexit, emphasising that the UK is facing economic losses due to leaving the EU and prioritising the removal of freedom of movement over protecting services trade. She highlights issues such as difficulties in finding workers for farms and food processing industries, and suggests that the government has missed opportunities to invest in renewable technologies. The MP also criticises the government's approach to negotiating new trade deals, arguing that they are not beneficial to UK farmers. She calls on the Minister to prioritise investment in carbon capture and storage (CCUS) technology, and advocates for Scotland to regain freedom of movement and a closer relationship with the EU.
Jim Shannon
DUP
Strangford
Expressed concerns about the Northern Ireland protocol and its impact on exports. Emphasised that Northern Ireland should have the same advantages in export trade as England, Scotland, and Wales. Discussed issues with supply chains due to regulatory divergence between Great Britain and Northern Ireland. Welcomed Invest NI’s expansion of offices internationally but called for a trade deal with India conditional on religious freedom and human rights.
Afzal Khan
Lab
Manchester Rusholme
The UK has started negotiations for trade agreements with economies like the US, India, Canada, Mexico, the Gulf Co-operation Council, Israel and Switzerland but no deals have been concluded. The failure to conclude a deal with the US is embarrassing, as was not making progress on a trade deal with India. Businesses are at the end of their tether due to meagre support from the Department for Business and Trade, struggling to access up-to-date information and guidance.
Intervened to point out that there is no trade deal with America because of American politics and protectionism seen through the Inflation Reduction Act. He noted that such deals take two countries agreeing, and highlighted that Britain prioritises free trade and will do as many deals as possible with like-minded nations.
Kevin Hollinrake
Con
Thirsk and Malton
The UK is now the eighth largest manufacturer in the world, moving from ninth place. Exports have increased by 31% in real terms since 2010. In the 12 months to July 2023, exports totalled £849 billion, up 16% on the previous year. The Department for Business and Trade has established a dedicated free trade agreement utilisation team to help businesses understand FTAs and access benefits. Wold Top Brewery in Thirsk is an example of how local businesses can succeed by exporting early. The Government’s export strategy aims to support firms of any size through practical, promotional and financial means. Since April 2022, the Export Support Service handled 9,600 market inquiries and offers a range of resources for businesses looking to export.
Kirsty Blackman
SNP
Aberdeen North
According to UN figures on goods and services, the UK is sixth in the G7 with 6% growth, behind Canada, the US, Italy, France and Germany. She challenged some of the statistics presented by other speakers.
Government Response
We are focused on supporting Northern Ireland exporters, including leveraging enthusiasm for UK goods and services globally. We have signed agreements in Vietnam, India, and other regions, aiming to reach £1 trillion in exports by 2030 through ambitious trade deals.
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Assessment & feedback
Summary accuracy
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