Over the last month, we have made significant progress to establish the United Kingdom as an independent, free-trading nation. We have agreed in principle a deal with Japan that goes further and faster than the EU deal in areas such as digital and data, food and drink and financial services. We have set out our pathway to join the trans-Pacific partnership, and yesterday we joined the WTO government procurement agreement, which gives British businesses access to a £1.3 trillion global market.
Just as Israel has signed a peace treaty with Bahrain and the United Arab Emirates, it is innovating to create an instant covid-19 test that is currently being trialled at European airports. What steps is my right hon. Friend taking to work with innovative Israeli companies in that area?
I congratulate Lord Austin on becoming the new trade envoy to Israel. I am delighted to see the reaction on the Labour Benches—they are obviously very pleased with that appointment. We have already signed a continuity FTA with Israel, and we want to go further in a new free trade agreement in areas such as tech, digital and data. We are two tech superpowers, and there is huge opportunity for British businesses and Israeli businesses to work more closely together.
I was listening to the Secretary of State on the “Today” programme yesterday morning, when she twice repeated the Government’s mantra of wanting a trade deal with the EU just like Canada’s. But the Government will not agree to non-regression clauses on environmental protection or workers’ rights, both of which are in the comprehensive economic and trade agreement—the trade deal between Canada and the EU. The Government also will not commit on state aid beyond WTO rules, while CETA contains stronger agreements on subsidies. Could the Secretary of State share with the House whether the Government are planning to change course and accept those provisions in their deal with the EU, or will she just admit that they do not really want a Canada-style deal at all?
The reality is that what the EU is demanding goes far beyond Canada in terms of an ex-ante regime on state aid, as well as alignment with rules and regulations. We will not accept that. We do want a Canada-style deal. The reality is that the Labour party would not even accept a Canada-style deal with Canada.
It is an undisputed fact that capitalism and free markets are the surest route out of poverty. Can my right hon. Friend update the House on how the Department is using trade to boost development in Africa?
My hon. Friend is absolutely right. Before I returned to the Department, I was the chair of the trade out of poverty all-party parliamentary group in this place. We have achieved duty-free, quota-free access for 39 African countries, and only yesterday the Prime Minister appointed 11 new Africa trade envoys. However, what would be unhelpful to our trade relationship with Africa is Labour and SNP Members’ proposals to dictate domestic production standards in the developing world, which has the potential to kill off our trade with those countries. I would ask them to look those countries in the eye when the Ghanaians cannot sell us their cocoa, when the Caribbean cannot sell us bananas, when the Kenyans—
Order. [Interruption.] No, no, no. Minister—and I will say this to both Front Benches—topicals are meant to be short and punchy. They are not meant to be for debating points like other questions. That is why topicals were brought in. Both Front Benches have taken advantage, and none more so than the Minister just then. Let us head up to Preston with Sir Mark Hendrick. Come on: calm is needed.
May I ask the Secretary of State how she can agree the terms of a trade deal with the United States Government when neither they nor we currently know the extent to which the UK’s regulatory framework will be permitted to diverge from the European Union’s?
We are absolutely committed that we are going to have our own independent regulatory regime, and we are no longer going to be permanently aligned with the EU. We have made that very clear: that was the point of Brexit.
Stockton is a town of firsts, be it the first passenger railway or the invention of the friction match. How will our future trade agreements help the latest generation of innovators export across the globe?
I thank my hon. Friend for his question. Innovation has always given our businesses an edge. Virtual Reality and 3D specialist Amazing Interactives in my hon. Friend’s constituency are examples of how innovation can continue to take business and exports forward. Today’s innovators, like Amazing Interactives, will benefit from our new FTAs.
The Macallan, a single malt whisky bottled by Edrington in my constituency, is just one of many iconic Scottish products suffering under the 25% US trade tariffs. A year down the line, can the Secretary of State explain why single malt whisky is not at the top of our US negotiating list?
I am absolutely determined to get these tariffs removed. The reality is that the European Union, which the hon. Lady and her colleagues want to rejoin, has failed to sort out this issue with Airbus for 15 years. We now have an opportunity—we have an independent tariff policy starting next year—and I am determined to get those tariffs removed.
Businesses in Warrington South tell me they want to do more business around the world. Can my hon. Friend tell me and the House how they can do that with the benefit of our new free trade agreements?
I know that many businesses in Warrington are already flying the flag. Earlier this week, I was delighted to learn that Warrington’s ICC Solutions has secured a deal with a major US acquiring bank so that its technology can be used to make card payments safer in America. This company does great work as one of our export champions too. Ultimately, FTAs are going to create better jobs, higher wages, more choice and lower prices for all parts of our country. An ambitious FTA with the US could boost the economy in the north-west by £389 million per year.
Beth Winter (Cynon Valley) (Lab) [V]
In response to Russia’s illegal annexation of Crimea, the UK has been at the forefront of EU sanction action against Russia, which this Government have reiterated their support for in two written statements to the House this year. Does the Secretary of State accept an obligation to operate the same principles in relation to trade with the illegal Israeli settlements in Palestinian territories?
Sanctions are a matter for the Foreign, Commonwealth and Development Office, and I will pass on the hon. Member’s views to it. However, to answer the first part of her question, the UK has been absolutely robust in its approach to Russia on many fronts, not least the illegal annexation of Ukraine, which we have opposed at all points. We will continue to highlight that injustice at every international forum available.
I would like to congratulate the Secretary of State and her turbocharged Department on the government procurement agreement, the Japanese free trade deal and progress in many other areas. It was a pleasure to welcome her to North Cornwall recently to demonstrate our great British food offer. Then it was cheese; today it is shellfish. North Cornwall has a lot of shellfish fishermen who hope to take advantage of our new trading independence. Can the Secretary of State tell me what consideration her Department has made of potential opportunities for crab and seafood exports to Asian countries such as Korea and Taiwan?