The UK signed a trade and economic development memorandum with the state of Indiana on 27 May. The first such arrangement between the UK and an individual US state, it forms part of our twin-track approach to trading with the United States, seeking out ways to unlock barriers for business at state level in addition to our engagement at federal level. We are to sign further memorandums of understanding in the coming weeks.
May we have a cross-Government effort on post-Brexit reform to ensure that our regulation does more to facilitate competition and new market entrants? That is crucial not only to grow our domestic economy but to secure trade agreements and boost international trade.
I thank my right hon. Friend for her question. She is one of the authors of the appropriately named TIGRR report—the report of the taskforce on innovation, growth and regulatory reform—which pointed to some great ideas and focused on how we can ensure that our regulation is enabling, not a barrier to deepening trade ties and opening up opportunities for our citizens. In addition to our work on our domestic regime, we are, as I said earlier, working with other nations and getting our regulators to talk together, so that we can improve our international trade opportunities.
Mr Speaker, I echo your words about Jo Cox, whose ongoing legacy is testament to her remarkable dedication and compassion. Members across the House will be thinking of her family today.
Steel is a foundational industry for our economy, yet Members across the House will be aware of the difficulties that steelworkers have been through in recent years, from the US tariffs to the current cost of living crisis. The clock is ticking for the UK steel sector, with just 14 days left for the Secretary of State to make a decision on whether current trade safeguards remain in place. Will the Minister of State help to remove the uncertainty by urging the Secretary of State to make that decision today?
The Secretary of State needs no urging, but it is important that she is able to make the right decision on this. The steel safeguards reconsideration is ongoing. I know the deadline is looming. My right hon. Friend is carefully considering all the information that has been presented to her. Obviously, we expect a decision very shortly. We understand its importance to the steel sector, both producers and end users.
To say that a decision is expected shortly simply is not good enough. To ensure that this vital industry can survive, Ministers must stop dragging their feet and act urgently to safeguard the steel sector. Jobs and livelihoods in our communities are at risk. Labour backs UK steel. Does the Minister of State not accept that the reality is that, with time passing, Ministers are too busy propping up the Prime Minister to act decisively for the people?
With regard to the right hon. Member’s last comment, it is always a good indication that we do not have to look at the ONS statistics to know that the trade numbers are going the right way when the Opposition spokesman wants to ask questions that are not related to trade. This Secretary of State has done a huge amount to support the steel and aluminium industries of the UK, not least in managing to renegotiate the decision on section 232 tariffs. She will continue to do that and she will make an announcement on the safeguarding issue very shortly.
T2. As the UK decarbonises our economy to deliver net zero, it is vital that a carbon border adjustment mechanism is implemented to prevent carbon leakage to other parts of the world, to ensure that our own domestic producers are not undercut and to create jobs. Will my right hon. Friend provide an update on the Government’s work to deliver the mechanism, particularly with regard to international co-operation with the EU and the US?
I thank my hon. Friend for raising this important issue. We recognise that the risk of carbon leakage is a very real one, and on 16 May we announced our intention to consult on a range of possible mitigation options, including product standards and a carbon border adjustment mechanism. We are working with our international partners and we are clear that any policies we consider will have to fit in with other UK priorities, which include the cost of living, economic growth, and our commitment to the World Trade Organisation, free and fair trade and the needs of developing nations.
According to Action Aid, the UK’s position on trade and women’s rights has yet to be set out through a clear, comprehensive UK trade strategy. Further to this, Action Aid has also accused the UK Government of taking a quick delivery approach to securing free trade agreements. In the SNP, however, we have committed to adopting a feminist foreign policy in an independent Scotland, and this work is being undertaken. In their current and future trade deal negotiations, will the UK Government commit to conducting gender-specific impact assessments of its free trade deals, not just economic impact assessments? Will the Department commission an independent statutory body to conduct these gender-just impact assessments?
I am delighted to be able to confirm that Britain is committed to creating a global trade policy that ensures that women have the same opportunities from trade as men, and that women worldwide can benefit from trade as a route to prosperity. That reflects a core element of this Government’s modernising trade agenda. We recognise that women face varied and disproportionate barriers to trade in some areas, and that they are underrepresented among entrepreneurs and businesses that export, and we will continue to do more to ensure that everyone benefits from global trade.
T5. My constituents in beautiful Hastings and Rye are concerned about the environment and climate change, but they are also aware that our local businesses need to expand their trade exports across the globe to benefit from post-Brexit freedoms. What steps is my hon. Friend taking to tackle climate change through trade policy?
Last month the Secretary of State set out priorities for green trade, both in the global green transition and in maximising opportunities for the UK by driving global action on trade and the environment multilaterally through our engagement in the G7 and the World Trade Organisation while strengthening bilateral co-operation through our free trade agreement agenda. By 2030, low-carbon industries could generate up to £170 billion-worth of UK exports. For example, UK Export Finance’s climate change strategy commits it to achieving net zero across its portfolio and operations by 2050. In 2021, UKEF provided £3.6 billion-worth of support for sustainable projects, an increase of 50% on the previous year.
T3. This morning we have heard some frankly staggering attempts to present a dreadful UK-EU trade context as some kind of triumph, but that simply will not wash with my constituents who are struggling with increased red tape when exporting to EU member states. Rather than building stronger trade links with our closest neighbours, Ministers are now ripping up the agreement they negotiated and risking a trade war with the EU. What is the Secretary of State doing to improve trading links with Europe and to end disruption for businesses?
I remind the hon. Lady of the trader support service and the export support service, which are there to provide bespoke support to businesses. I encourage her to put them in touch with her constituents.
I am afraid the figures do not bear out what the hon. Lady is saying. The increase in goods exports to the EU, to which the Under-Secretary of State for International Trade, my hon. Friend the Member for Finchley and Golders Green (Mike Freer) alluded, has in part been driven by an 8.1% increase in exports from the UK to the EU in April compared with March. We are bouncing back from the pandemic and the difficulties as we changed our border and left the EU. The country is improving on that front. Where issues remain, whether for the hon. Lady’s local businesses or for the Northern Ireland protocol, we are determined to resolve them.
Dr Jamie Wallis (Bridgend) (Con)
T6. Many of my constituents work in the nearby Port Talbot steelworks, located just outside my Bridgend constituency. Will my right hon. Friend give an assessment of the impact on the UK steel sector of removing US tariffs on UK steel?
I thank my hon. Friend for all his work to champion the steel industry. The 500,000-tonne annual quota secured for steel exporters is almost double the annual volume of UK steel exports to the US between 2018 and 2019, and it provides a significant opportunity for the UK industry to increase its supply to US customers.
T4. According to the latest figures from the Food and Drink Federation, despite the Minister’s earlier remarks, UK food and drink exports to the EU in the first quarter of 2022 were still £600 million lower than in the first quarter of 2019. Given the continual shortfall in post-Brexit trade with our largest trading partner, does she think embarking on a wholly unnecessary trade war is wise? If not, what will she do to avert it?