Trade with Europe
What steps his Department is taking to increase trade with Europe.
We are taking two steps to try to drive up our trade with Europe. First, we are seeking bilateral wins with individual countries like the small modular reactors deal that has just been done by Rolls Royce in Sweden, or opening up the pilot digital trade corridors that we have with Germany and France. We are also seeking to renegotiate a reset with the European Union as a whole. In the words of the Sugababes, we stand ready to “Push the Button”.
The EU is a key trading partner for Scotland, accounting for almost 40% of Scotland’s international exports. Can the Minister reassure my constituents in Glenrothes and Mid Fife that while we wait for a new date for the EU summit, this Government will press ahead with plans to align with more areas of the single market, so that we can continue to remove barriers for our businesses to trade with Europe?
My hon. Friend is absolutely right, not least because in the most recent figures, our trade in goods with Europe has fallen by 2% in the last year, whereas our trade in services has grown by 7%. All of this shows what a shockingly appalling, shameful, despicable deal was done by the previous Government with the European Union. It was bad enough leaving, but the terms on which they left were absolutely appalling for British businesses. We are determined to turn that around, and we will.
Ten years on, Brexit continues to have a detrimental impact on Scottish businesses to the tune of almost £4 billion in lost revenue per year. Forty per cent of businesses say that Brexit is the main cause of trade difficulties. One of the worst hit sectors is farming, and lots of farmers in my constituency have written to me—even in the last two weeks since I was sworn in—to tell me that Brexit continues to put up barriers to business and trade, including through labour shortages, trade friction and long term uncertainty over subsidies. At a time when food insecurity and the cost of living cannot be disentangled from the experience of farmers, what is the Minister doing to support farmers in my constituency to produce the food that we need at this crucial time?
I want to recruit the hon. Lady to my campaign to make sure we end up with a better deal with the European Union, so that UK farmers can export easily and readily into the European Union and we can get goods from across the rest of Europe into the UK easily. So many sectors are affected. I sat down yesterday with Tracy Emin, one of the world’s greatest artists, who explained to me the problems since Brexit in bringing artworks in and out of the European Union from the UK. Resolving those problems is an important part of ensuring that we remain the second biggest art market in the world—again, part of the creative industries, which we should be supporting.
I call the Liberal Democrat spokesperson.
Joining the single market and a customs union could boost UK GDP by about £25 billion a year. Single market membership would give the UK access to EU defence programmes, creating high skilled jobs in aerospace, advanced manufacturing and defence technology. It would restore passporting rights for financial services, reducing costs and administration for firms operating across Europe. For businesses, joining a customs union would eliminate the rules of origin red tape that adds between 2% and 8% to the cost of exporting.
The current Prime Minister and Chancellor have both admitted that repairing the relationship with Europe is the biggest lever they could pull for growth, and the incoming Prime Minister has stated his desire to rejoin the EU, so does the Minister agree that there is political momentum and a desperate economic need now to negotiate a new growth and defence partnership with Europe?
I do agree on the broad principles, but the Lib Dems were part of the coalition Government who created the momentum toward the Brexit referendum in the first place, so I am not going to sign up to any Liberal Democrat campaign. We are going to make sure that we reset the relationship with the European Union.