Commons Sense

House of Commons · Ministers' Questions

UK Exports to the EU

Thursday 15 July 2021 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • The latest monthly figures for goods exports show 14 billion in May 2021, up by 8% from April.
  • The UK proposed an equivalence agreement on sanitary and phytosanitary rules in negotiations, but the EU refused.
  • ONS data from April suggests January disruptions were short-term.

Topics (select to filter)

Questions & Answers

Q1 Alyn Smith
Brexit Business & Trade
Context

Monthly figures show UK goods exports to the EU were £14 billion in May 2021, up by 8% from the previous month. However, ONS data shows a significant drop of 27% in quarter 1 compared to pre-Brexit levels.

Question

What recent assessment has she made of trends in UK exports to the EU? She noted that despite monthly figures showing an increase to £14 billion in May 2021, ONS data shows a significant drop of 27% in quarter 1 compared to pre-Brexit levels. She referenced Make UK reports stating 96% of members face problems with new trading regime.

Answer from Greg Hands

The latest monthly figures for goods exports show £14 billion in May 2021, up by 8% from April. This is higher than the monthly average for both 2020 and pre-pandemic levels. The first quarter data, however, shows a dip due to border closures during January when the alpha variant was prevalent.

Partly answered

Not addressed: The specific ask about maintaining optimism while ignoring current difficulties faced by businesses was not directly addressed with concrete actions or commitments beyond referencing monthly figures.

How: Under Review

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Q2 Alyn Smith
Brexit Business & Trade
Context

Lord Frost rejected the EU's offer of a veterinary agreement, citing ambition for CPTPP membership. The questioner inquires about the compatibility of UK's CPTPP bid with reaching an agreement on food standards with Europe.

Question

Can he tell us why the UK's accession to the comprehensive and progressive agreement for trans-Pacific partnership is incompatible with reaching an agreement with Europe on food standards? From which current food standards do the Government wish to diverge?

Answer from Greg Hands

The UK proposed an equivalence agreement on sanitary and phytosanitary rules in negotiations, but the EU refused. The UK is willing to discuss SPS rules with Brussels while maintaining regulatory autonomy. The Government does not wish to diverge from food standards but seeks agreements respecting regulatory independence.

Answered
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Q3 Gareth Thomas Labour (Co-op) Harrow West
Scotland Brexit
Context

Official statistics show EU-UK trade fell by 27% in quarter 1. The SNP attributes this to Brexit, not entirely blaming the pandemic.

Question

The Minister can defend his Government's Brexit policy all he likes, but EU-UK trade fell by 27% in quarter 1 with Scotland particularly affected. He cannot blame covid as the decline was over three times worse than global trends. For every £245 lost due to Brexit, only around £18 in return through free trade agreements is expected.

Answer from Greg Hands

The SNP has a record of opposing any trade agreement negotiated by Brussels or Westminster. Trade with the EU is recovering, as evidenced by May's data showing an 8% increase over April.

Not addressed: He did not address the specific ask about renegotiation or anti-trade stance.

How: Blame Shifting

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Q4 Drew Hendry SNP
Scotland Brexit Business & Trade
Context

Fishing representative bodies claim the Prime Minister has betrayed them, causing individual losses of tens of thousands of pounds due to export delays. Red tape and admin costs are increasing across food and drink sectors.

Question

Why do we not support any trade deals from this Government because they always sell Scotland out? Industry says businesses face red tape, driver shortages, and increased checks post-Brexit causing significant losses. Costs have risen 20% in distilleries.

Answer from Greg Hands

Most of the trade deals not supported by the SNP are actually EU's deals. The UK provided £180 million to the Scottish Government for dealing with Brexit impacts post-transition period. ONS data from April suggests January disruptions were short-term.

Partly answered

Not addressed: The specific ask about compensation plans was not directly addressed with concrete actions or commitments beyond referencing previous funding.

How: Blame Shifting

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Q5 Drew Hendry SNP
Scotland Brexit Business & Trade
Context

Fishing representatives claim the Prime Minister has betrayed them with export delays costing tens of thousands. Red tape, driver shortages, and increased checks are causing business destruction in food and drink sectors.

Question

He noted that trade deals always sell Scotland out. Fishing bodies say the PM betrayed them due to export delays. Individual losses of tens of thousands pounds are common. Hauliers avoid working with food and drink due to increased checks.

Answer from Greg Hands

The UK provided £180 million to Scottish Government for dealing with Brexit impacts post-transition period. ONS data from April suggests January disruptions were short-term. Department for Transport discusses extra action needed on hauliers' issues.

Partly answered

Not addressed: He did not directly address compensation plans or the PM's comment.

How: Blame Shifting

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Q6 Matt Western Lab Warwick and Leamington
Brexit
Context

Manufacturers and businesses in Warwick and Leamington, including Bravissimo, Vitsoe, and young British designers, expressed concerns about the damage being done to their trade with Europe due to inadequacies of the Government's Brexit deal. Surveys by the Federation of Small Businesses, Institute of Directors, and Make UK underlined these issues.

Question

The reality on the ground is quite different from what the Minister may be claiming. I recently met many manufacturers and businesses in Warwick and Leamington, such as Bravissimo, Vitsoe, and young British designers, and they are desperate. Their concerns are underlined by surveys by the Federation of Small Businesses, the Institute of Directors and Make UK showing the serious and lasting damage being done to UK firms trying to maintain their trade with Europe in the face of the inadequacies of the Government's Brexit deal. Can I ask the Minister of State whether he thinks Lord Frost has the bandwidth to fix those problems, on top of the Northern Ireland protocol, or do we need someone else in Government to get a grip?

Answer from Greg Hands

The Government have full bandwidth on all these aspects. We are satisfied with the trade and co-operation agreement. It is an agreement that is working well. In terms of adding support to exporters, that is the role of this Department and other Departments. We have helplines in place. We have the Brexit business taskforce. We have the DIT internationalisation fund. The Department for Environment, Food and Rural Affairs has a £23 million seafood disruption fund. We have recently opened trade hubs in Edinburgh and Darlington, and we will open hubs soon in Cardiff and Belfast. We have a refreshed export strategy coming later this year. The Government are fully engaged on assisting exporters to get their goods and services into the European Union.

Partly answered

Not addressed: Whether Lord Frost has the bandwidth to fix problems related to UK firms' trade with Europe

How: We Have Full Bandwidth On All These Aspects, We Are Fully Engaged

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