My right hon. Friend has been a huge champion for Scotch whisky. We have been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. That is the way forward, not escalating this tariff dispute.
The Secretary of State has worked incredibly hard in negotiating with the United States to try to find a bilateral settlement to the Airbus-Boeing dispute to facilitate a deal with the US. Of course she is aware of the significant damage that the Scotch whisky industry continues to suffer, with export losses now approaching a staggering £450 million. Will she reassure me that as soon as possible after the new US Administration is in place, she will urgently pick up negotiations on a deal to end tariffs? Will she update the House, before that, on what support she requires from other UK Government Departments to ensure that a deal is agreed by the whole of the UK Government?
I completely agree with my right hon. Friend about the urgency of ending this tariff dispute. I have been clear with the United States and the European Union that we want to de-escalate it and reach a negotiated settlement. This dispute has already been going on for 16 years and has caused much damage. I am seeking an early meeting with the new US trade representative, Katherine Tai, and this will be one of the items on my agenda. I am also working closely with the new Secretary of State for Business, Energy and Industrial Strategy on this issue.
I know that everybody in Government is working hard on this, but I want to reiterate the huge financial strain that the tariffs are having on the textile and cashmere industry in my constituency in the Scottish borders, which I fear will cost many local jobs. Will the Government consider offering financial compensation to the firms affected to protect local jobs and this industry?
My hon. Friend makes an excellent point. We are looking at supporting industry, including through the BEIS fund that will invest £10 million to help distilleries go green, and no doubt the Treasury is looking at other affected industries as well. If we had accepted the advice from Labour to put additional tariffs on US products such as sweet potatoes and nuts, we would likely be hit by more tariffs as Germany and France were, as announced on 30 December.
The Secretary of State has threatened to reimpose tariffs on the United States if the Airbus dispute is not settled, but that threat will only carry any impact if the US believes that we have the legal authority to carry it out. Will she agree to publish the UK’s legal advice or our exchange of letters with the World Trade Organisation to prove that she is not bluffing and that we genuinely have the authority to reimpose those tariffs if we need to do so?
I am very clear that we have the authority to impose those tariffs. We have acquired rights as a result of leaving the European Union. But I go back to the point I was making: the hon. Gentleman has advocated putting additional tariffs on products such as sweet potatoes and nuts, so presumably he thinks that we have those acquired rights.
Free Trade Agreements: Small and Medium-sized Enterprises
We are launching a new food and drink export campaign this year, which will encourage British businesses to take advantage of the deals we have struck, covering 63 countries around the world. As part of our Japan deal, we will be putting forward 77 geographical indications to the Japanese system, including Welsh lamb.
Brazil Trade Agreement: Environmental Standards
Continuity Trade Agreements
Inward Investment
Middle East: Trade
Free Trade Agreements
Free Trade Agreements
Free Trade Agreement: Australia
Free Trade Agreements
Educational Technology: Exports
Services: EU Relationship
UK-EU Trade and Co-operation Agreement
Human Rights Clauses: Trade Agreements
Topical Questions
20 of 139 shown
The Minister for Trade Policy (Greg Hands)
ConservativeChelsea and Fulham
The Government have included, and will continue to seek to include, specific SME chapters in all our free trade agreements to ensure that SMEs are provided with the information necessary to make informed commercial decisions and seize the great new opportunities provided by these agreements.
The support for SMEs in the trade agreement is great to see, but may I ask the Minister to continue that with a free trade agreement for the USA that supports companies like Kromek in Sedgefield? It manufactures high-radiation detector material ingots that are shipped to the USA, attracting US import duty incorporating the price for worldwide sale, with the waste coming back to the UK for re-manufacture, attracting further UK import duty. The removal of those duties would clearly support high-value jobs in Sedgefield and increase the global competitiveness of an export-led UK business.
I thank my hon. Friend for that excellent question on behalf of his constituency company, and I can tell him that the US and the UK have a shared ambition to improve trade for our SME-focused economies on both sides of the Atlantic, to help companies such as Kromek. There are three specific areas we are looking at. First, we want to reduce or eliminate tariffs. Secondly, we will have a wide-reaching SME chapter. Thirdly, we are looking at provisions on reimported goods. Those provisions will benefit around 32,000 UK SMEs that already export to the US, such as Kromek, but also future SMEs. That will grow that trade, which will suit our bustling and improving SME sector.
The trade agreement with the European Union is absolutely fantastic for our country as a newly sovereign nation, and it comes on top of deals already covering more than 60 countries. Can my right hon. Friend tell the House how he intends to go further still and secure opportunities in the Asia-Pacific region, which would particularly benefit small businesses in my constituency of Aylesbury, but also those across the UK?
We are seeking an SME chapter in all our future free trade agreements. SME chapters are an excellent way of assisting companies to navigate a free trade agreement. They distil information and make it easier, particularly for companies without expertise in trade agreements, which is generally the case for SMEs. In Asia-Pacific, we aim to include such chapters. We have already included one in an agreement with Japan, and we aim to include them in agreements with Australia and New Zealand and, of course, the comprehensive and progressive agreement for trans-Pacific partnership. We are aiming to do that to benefit SMEs in constituencies such as my hon. Friend’s in Aylesbury.