Trade with Europe

5. 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?