I convey apologies from the Secretary of State for International Trade, Dr Liam Fox, who is travelling in Asia this week. Like him, I am fully committed to engaging on trade with the Scottish Government and the Scottish Parliament. Indeed, a year ago, in my previous role, I enjoyed appearing in front of both your Finance Committee and your Devolution (Further Powers) Committee. I hope to come and see you in person at some point as soon as I can.
Madam convener, the Prime Minister earlier this year set out her vision for the UK’s future as a truly global Britain. Included in that was her strong view that the UK should be the most passionate and convincing advocate of global free trade anywhere in the world. The UK Government and the devolved Administrations need to work together to make Brexit a success. A unified voice strengthens our hand in the upcoming negotiations. That is why the UK Government has set up a new joint ministerial committee (EU negotiations) to discuss each devolved Administration’s requirements for the future relationship with the EU and to feed into a UK approach to the negotiations.
The Department for International Trade is dedicated to serving the whole of the UK both now and when we leave the EU. The department’s responsibility covers support for new and existing UK exporters, outward investment from the UK and inward investment into every part of the UK. I should point out that Britain’s future trading relationship with the EU is primarily a matter for the Department for Exiting the European Union, although we do and will continue to feed into those deliberations.
At the Department for International Trade, we work hand in hand with Scottish Development International, which is responsible for implementing programmes that meet the particular needs of companies in Scotland as well as for promoting Scotland to foreign investors. Although the promotion of trade and investment is a concurrent power, trade policy and UK Export Finance’s ability to support exports are, as we know, reserved matters. That means that we can and do pool intelligence to work better for the benefit of the UK.
For example, our trade department provides Scottish companies with access to events and trade mission support schemes. Our world-leading digital services, which are part of GREAT.gov.uk and which make it easier for firms to trade overseas, are an available resource for Scottish companies that I urge them to make use of. Today, my department’s trade policy officials will host a briefing session for officials from each of the devolved Administrations on the work of the World Trade Organization. By working together, we can ensure that, when one part of the UK succeeds, we all do. Our fortunes are inextricably linked.
Madam convener, like much of Scotland, I campaigned on the remain side during the referendum. Indeed, 70 per cent of my constituents voted to remain in the EU. However, it was a UK-wide referendum and I am, above all, a democratic politician. More people voted to leave the EU than for anything else in our electoral history and, if you look at the figures, it is clear which union should matter more to the consumers and businesses of Scotland. While Scottish exports to EU countries totalled £12.3 billion in 2015, the goods and services that Scotland sold to the rest of the UK were worth £49.8 billion. That is four times the level of exports to the EU and three times the level of exports to the rest of the world.
Trade within the UK single market supports 270,000 Scottish jobs—roughly 10 per cent of Scotland’s total employment—and represents 31 per cent of Scottish gross domestic product. Furthermore, Scotland’s exports in goods and services to the rest of the UK have increased by 74 per cent since 2002 compared with growth of 7.8 per cent in Scotland’s sales to the EU over the same period. Scottish exports in goods and services to the UK are, therefore, increasing at almost 10 times the rate of Scottish exports to the EU. It is clear that the UK is the most important union for Scotland. By speaking with one voice, we can champion all the UK’s consumers and businesses. Their interests should be at the heart of our discussions.
My department stands ready to help Scottish businesses to thrive overseas and to encourage greater investment into Scotland, which we are already doing. By working together over the coming years, we can build a global Britain that works for all.