Our first priority is to deliver continuity in our trading arrangements on leaving the EU. The Taxation (Cross-Border Trade) Act enables the UK to put in place a UK trade preferences scheme for developing countries once we leave the EU. This will provide the same level of access as the current EU trade preference scheme by granting duty-free, quota-free access to 48 Least Developed Countries, including Kiribati.

In addition, the existing EU-Pacific States Economic Partnership Agreement (EPA), currently in effect between the EU, Fiji and Papua New Guinea, provides for other Pacific countries to apply to accede to it, including Kiribati. The new UK-Pacific States EPA, signed on 14 March between the UK, Fiji and Papua New Guinea, carries over this accession commitment.

The Government is working with the Indonesian Government to address existing trade barriers between the two countries, and to consider options for strengthening our bilateral trading relationship in the future. We also continue to support the ongoing EU-CEPA negotiations.

To support trade with developing countries, the Taxation (Cross-Border Trade) Act enables the UK to put in place a UK trade preferences scheme. This will provide the same level of access as the current EU trade preference scheme, granting duty-free, quota-free access to 48 Least Developed Countries and granting generous tariff reductions to other developing countries, including Indonesia.

The Government works actively to increase trade between the UK and China, including through our overseas network led by HM Trade Commissioner for China, bilateral working groups, and through the broad support the Department for International Trade provides to UK exporters and to Chinese companies wishing to invest in the UK. Ministerial travel also supports this, and provides the necessary platform to progress market access for British goods and services. The Secretary of State travelled to China five times last year. He secured market access for UK dairy, worth £240m over 5 years, at the Department for International Trade-led Joint Economic and Trade Commission, and led the UK delegation to China’s inaugural International Import Expo in November, where the UK secured over £2bn worth of deals. The Government is also conducting a Joint Trade and Investment Review with China, an analytical exercise to explore all options to increase flows of goods, services and investment in our post-Brexit trading relationship.

The UK has consistently supported the European Commission in engaging with the US to stress the importance of de-escalating trade tensions, which are in no one’s interest. We have been clear in our opposition to US tariffs on steel and aluminium and threatened tariffs on autos. These are unjustified and have, and will have, a negative impact on the UK as an EU Member State and after exit under their existing terms.

We will continue to work with the EU and the US to find a constructive permanent solution, including through implementing the EU-US Joint Statement agreed by Presidents Juncker and Trump in July last year.

All arms supplied by UK companies to Saudi Arabia require an export licence. We assess each export licence application very carefully against the Consolidated EU and National Arms Export Licensing Criteria (the Consolidated Criteria).

The Consolidated Criteria provide a thorough risk assessment framework and require us to think hard about the impact of providing equipment and its capabilities. These are not decisions we take lightly, and we will not license the export of items where to do so would be inconsistent with the Consolidated Criteria.

The key test for assessing military exports to Saudi Arabia is Criterion 2(c) of the Consolidated Criteria – whether there is a clear risk that the exports might be used in the commission of a serious violation of International Humanitarian Law (IHL).

When considering export licence applications, we take into account a wide range of sources and analyses, including reports from non-governmental organisations and the United Nations, as well as those of a sensitive nature to which these parties do not have access. This provides a comprehensive basis on which Government can take informed decisions about export licence applications.

The latest WTO forecasts revised 2019 global trade growth from 3.7% to 2.6%, rising to 3.0% in 2020. Forecasts assume a smooth Brexit with a transition period until 2020. Weak air freight shipment figures, declining global export orders, increased economic policy uncertainty and a fall in the global GDP outlook are cited as reasons for downward revisions to forecasts.

The WTO notes the uncertainty surrounding recent estimates and that ‘the effects of Brexit will depend on the nature of any agreement that might be reached between the UK and the EU, with impacts mostly confined to these economies.

HMG published analysis of UK impacts of various EU exit scenarios, including no-deal, in November 2018.

The Government's priority is to continue to press the case for the orderly Brexit that delivers on the result of the referendum. The Government will continue to prepare for all eventualities with partner countries, including a ‘no deal’ scenario. The UK will have an independent trade policy once we exit from the EU and is preparing for an ambitious programme of trade negotiations and enhanced market access.

As referenced in my Written Answer on 2 April (HL14807), products produced in the Israeli settlements in the Occupied Palestinian Territories (OPTs) are not entitled to benefit from preferential tariff treatment under the EU-Israel Trade Agreements. These areas are set out in a list of postcodes, which will be hosted on gov.uk, alongside a notice to importers. Tariff preferences will be implemented by UK customs authorities.

We will also continue to implement the EU’s interpretive notice on the indication of origin of products from Israel settlements. These guidelines are an important step to ensure correct and coherent implementation of EU consumer protection and labelling legislation.

It has been the position of the UK Government since 1967 that, in line with relevant UN Security Council Resolutions, the Occupied Palestinian Territories (the West Bank, including East Jerusalem, and Gaza) are not lawfully part of the State of Israel.

The UK does not recognise Israeli settlements as part of Israel. The UK’s position on settlements is clear. They are illegal under international law, present an obstacle to peace, and threaten the physical viability of a two-state solution.

In 2017 the United Kingdom, together with 26 other countries, endorsed the “Guiding Principles on Financing the Development of the Belt and Road”. We continue to engage closely with China on the Belt and Road Initiative. The Department for International Trade assists UK firms by scoping project opportunities, providing finance where appropriate through UK Export Finance, and then supporting bids for contracts in firms’ priority markets. In addition, the Government advocates for the application of recognised international standards in the areas of transparency and anti-corruption, environmental standards, social standards and debt sustainability.

When we leave the EU, we will provide the same level of preferential access to Nigeria. The Taxation (Cross-Border Trade) Act enables the UK to put in place a UK trade preferences scheme for developing countries, including Nigeria.

A trade agreement between the EU and 16 West African States has been signed by almost all the parties, but it is not currently in force. Therefore, as no agreement is currently being implemented, the UK is not transitioning this agreement.

The Taxation (Cross-Border Trade) Act enables the UK to put in place a UK trade preferences scheme for developing countries when we leave the EU. This will provide the same level of access as the current EU trade preference scheme, granting duty-free, quota-free access to Least Developed Countries, including Vanuatu.

On 14 March 2019, the UK-Pacific States Economic Partnership Agreement (UK EPA) was signed, providing continuity for businesses, exporters and consumers as the UK prepares to leave the EU. The current parties to the UK EPA are the UK, Fiji and Papua New Guinea.

As Vanuatu has not signed the EU-Pacific States EPA it is not party to the transitioned UK EPA, although it is eligible to apply to accede in the future.

At last year’s Commonwealth Heads of Government Meeting (CHOGM), hosted by the UK, leaders adopted a six-point Connectivity Agenda for Trade and Investment to boost intra-Commonwealth trade to $2 Trillion by 2030. As Chair-In-Office, the UK is committed to working with our Commonwealth partners to achieve this target. That is why at CHOGM we launched three new programmes aimed at promoting inclusive intra-Commonwealth trade, cooperation on meeting standards and promoting trade by women-owned businesses. The UK will also be chairing the Commonwealth Trade Ministers meeting in October.

Of our 52 Commonwealth partners, 44 currently benefit from development-friendly preferential access to the UK market. The Government is committed to seeking continuity for our current trade and investment relationships as we leave the EU, including those with Commonwealth countries.

The EU-Israel Trade Agreements and the transitioned UK-Israel Trade Agreement apply to the State of Israel. The UK has been clear that it does not recognise the Occupied Palestinian Territories (OPTs), including the settlements, as part of the State of Israel and that the OPTs are not covered by the UK-Israel Agreement.

The EU-Palestinian Authority Interim Agreement and the transitioned UK-Palestinian Authority Interim Agreement apply to the territory of the West Bank and the Gaza Strip.

Products produced in the Israeli settlements, located within the territories brought under Israeli administration since June 1967, are not entitled to benefit from preferential tariff treatment under either agreement.

The Department for International Trade has regular engagement with local government through the Department’s regional network.

In a recent series of events across the UK, to support consultations on future free trade agreements, there was attendance by representatives from local government, Local Enterprise Partnerships, and local growth hubs. The department invited a representative from the Local Government Association.

The Department is exploring further options for its engagement with local government.

My Lords, UK Export Finance’s support is available for UK exporters in all sectors and its provision of support is demand-led. UKEF support for energy-related exports in 2015-16 through 2017-18 respectively was as follows: 99%, 97%, and 72% to fossil fuels, and 1%, 3% and 28% to renewable energies. It supported around 0.2% of the global annual investment in oil and gas in 2016. The support has helped to sustain UK jobs in a sector that employs over 300,000 in highly skilled work and is essential to our energy security. We recognise that climate change is a key issue for the world and it remains a high issue for UKEF, but support can be provided only where there is insufficient in the private market and at the moment there is significant liquidity there.

To ask Her Majesty’s Government what proportion of UK Export Finance’s expenditure on support for energy production was spent on (1) fossil fuels, and (2) renewables, in (a) 2015, (b) 2016, and (c) 2017.

I thank the Minister for her reply. Will she acknowledge that there is a huge inconsistency between the Government’s international climate commitments, such as the Paris agreement, the UN SDGs, the G7, the G20, the EU—the list is very long—and the general support for fossil fuel production? Does she also agree that by providing billions to the enormously wealthy oil and gas industry while giving crumbs to the renewable industry, the UK Government are backing the wrong technologies and locking developing countries into decades of fossil fuel use which we will have to abandon if we are going to treat catastrophic weather events, such as cyclone Idai, with the urgency that the thousands of schoolchildren taking to our streets are demanding?

Is it still government policy that one-third of the nation’s future energy supply should be provided by nuclear? If that is the case,

how are the Government going to resolve the almost complete breakdown in the development of new civil reactors for the future?

My Lords, the Minister referred to the latest IPCC report, published in October last year, which recommended that global carbon dioxide emissions should be reduced by 45% by 2030 and that by 2050 the world should be carbon neutral if we are to avoid dangerous climate change. Can the Minister reassure the House that the investments to which she referred in answer to the noble Baroness, Lady Sheehan, are consistent with the IPCC’s recommended targets?