Douglas Alexander MP: speeches

Speeches

• 6 May 2025 · Trade Negotiations · Hansard source

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  The hon. Gentleman has referred to our attempt to reset our trading relationship with Europe. The red lines that were set out in our manifesto are very clear, but within those red lines we are endeavouring to broaden and deepen an important trading relationship that represents about 46% of the UK’s trade. As for the hon. Gentleman’s broader observation that the agreement we have reached today is, as it were, a pretty bright-shining light in what is a somewhat dark sky for international trade, I agree with him. It is, hopefully, a sign of further deals to come and of a commitment to taking forward deals that are mutually beneficial, in this case for the Indians and also for the United Kingdom. When it comes to the wider question of how the deal will be scrutinised, the hon. Gentleman is right to recognise that today’s telephone conversation with Prime Minister Modi was just the start of the process. A press release has been published, along with a list of the top benefits, but we hope to publish a paper today setting out in more detail what has been agreed—the conclusion summary paper—and there will then be a process moving towards signature and a legal scrub of the text. However, as the Prime Minister made clear a few days ago, we will follow the process set out in the Constitutional Reform and Governance Act 2010.

• 6 May 2025 · Trade Negotiations · Hansard source

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  Let me name some Scottish workers who are absolutely delighted by today’s announcement. Let me quote directly what Chivas has said: “The announcement of a free trade agreement in principle between the UK and India is a welcome boost for Chivas Brothers during an uncertain global economic environment. India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.” Whether it is Chivas Regal, Ballantine’s or other Scottish brands, which are the product of a huge number of workers in Scotland, there is much to celebrate today.

• 6 May 2025 · Trade Negotiations · Hansard source

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  As my statement sought to make clear, there will be specific provision for SMEs as part of this deal, because we recognise that the huge Indian market can often be a challenge for businesses that do not have the capabilities of larger businesses. I am grateful to the right hon. Gentleman for his generous words about the Scotch whisky industry. From the quotes that we are receiving this afternoon from Diageo, Chivas and the Scotch Whisky Association, he is very much on all fours with the industry in recognising that this is a quite extraordinary deal for Scotch whisky.

• 6 May 2025 · Trade Negotiations · Hansard source

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  We have spoken today of the importance of the Indian market, but it is also right to recognise that the Indian market presently sits behind some of the world’s highest barriers to trade, notwithstanding the fact that it was the UK’s 12th largest trading partner. The fact that we are tearing down so many of those tariff levels as part of this agreement will be a very practical and pragmatic offering for the kind of excellence in manufacturing that he has in his constituency and that is represented across our country.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I thank the hon. Lady for her recognition that this is a landmark deal, although I have to say that it was not her most generous welcome of a deal that the previous Government worked for many months to try to secure—it is right to recognise that, albeit they did not manage to close the most difficult remaining issues. I seem to remember that it was a former leader of the Conservative party, the former Member for Witney, who promised that his party would stop “banging on about Europe”. Alas, that advice does not seem to have been taken in the Conservatives’ approach to today’s landmark agreement with India. The hon. Lady inquired how we got the deal done when our predecessors failed to do so. Respectfully, I would say that it was through a process of patient, pragmatic and painstaking work—a very different approach from the kind of Instagram diplomacy that all too often characterised the approach of past Trade Secretaries and Trade Ministers. That allowed us, with the political leadership shown by the Secretary of State, to close significant chapters on goods and services. It allowed us to then reach a considered judgment that meant that, with stability of political leadership and clarity of ministerial direction, we could secure concessions from the Indians and conclude the agreement in a way that eluded our predecessors. The hon. Lady asked specifically about the double contribution convention. I can assure her that that reciprocal agreement will benefit UK workers and their employers as the opportunity within India expands. India will have one of the world’s largest middle classes in the coming decades. The agreement will cover only a specific and limited group of Indian businesspeople for a period of three years. It is worth recognising that the Indians have other arrangements in place that extend longer than that. The workers will be required to pay their immigration health surcharge to the national health service, so the convention does not affect NHS funding. The DCC that we have agreed is reciprocal and will benefit UK workers in India as well. India is home to the fastest growth rate in the G20, so the opportunity here for the United Kingdom is only likely to grow over time. The agreement was made in the context of the wider deal, which will bring billions into the UK economy. I can assure the hon. Lady that the United Kingdom already has social security agreements in place with a range of countries and trading blocs, including the European Union and the United States. On the broader immigration issue that the hon. Lady raised, I can assure her that the deal does not affect the points-based system. The points-based system is not affected by the agreement that we struck today. The deal only covers business mobility, which is different from immigration, as it is about travel for specific and temporary business purposes. As a result, UK businesses will benefit from additional business mobility routes supporting them as they expand into India. Student visas remained off the table. I hope that that gives some clarity to the hon. Lady. I am grateful for her recognition that it is a landmark deal. It is right to recognise that the Conservatives sought to secure this deal, and I hope that in the course of the conversations that we will have across this Dispatch Box today, we will be able to recognise that this represents a very significant win for the United Kingdom in very challenging times for trade.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I pay tribute to the right hon. Gentleman’s long-standing interest in matters relating to culture, media and sport and to the creative industries more generally. We are grateful for the expertise and experience that he brings to the House on these issues. It would be one of the first occasions on which I told Lord Mandelson to do anything in many decades of our working together, but I will ensure that that is duly registered, not only in the record of this House but directly to our distinguished ambassador in Washington. It should also be placed on record that the film sector is a key part of the UK’s world-class creative industries—and we are absolutely committed to ensuring that those sectors continue to thrive and create good jobs—and that the UK has a strong and balanced trading relationship with the United States, worth £315 billion. I am grateful to the right hon. Gentleman for his challenge to me to reach out directly to Lord Mandelson in respect of what we have read in the newspapers in the last couple of days, and I give him my word that I will ensure that Lord Mandelson is fully aware of the issue.

• 6 May 2025 · Trade Negotiations · Hansard source

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  What I said was that we have social security agreements with a range of countries, including the USA and with the EU. The hon. Lady asks whether a new points-based system is being introduced, and I can assure her that that is not the case. The deal covers only business mobility, and the UK has not given away visas or created new routes. Existing business mobility routes have been expanded for highly skilled and experienced professionals to cover additional sectors, but to qualify for these routes professionals must demonstrate that they meet the strict criteria for professional experience and qualifications.

• 6 May 2025 · Trade Negotiations · Hansard source

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  The Northern Ireland’s trading relationships and its status within the United Kingdom are not altered as a consequence of the Indian free trade agreement that was reached today. The established position is exactly as the right hon. Member describes and recognises the distinctive history and significance of the Good Friday agreement—not just in the protocol but the Windsor framework. A huge amount of work has been put in by both sides of the House to try to maintain a hard-won peace in Northern Ireland, and that is not compromised by today’s agreement.

• 6 May 2025 · Trade Negotiations · Hansard source

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  My hon. Friend seems to know my brief better than I do. In all seriousness, it is right to place on record our gratitude to the Prime Minister for his sterling work in getting this deal over the line. I also pay generous tribute to the Business and Trade Secretary, who has done an immense amount of work and whose visit to India in February with Minister Goyal unlocked a number of key issues that had proved to be sticking points for the previous Administration, and to officials at the Department for Business and Trade—both in London and, indeed, in India—who have worked tirelessly to secure this deal. On its economic significance, I concur with the point that India is a huge and dynamic economy, but it is also right to recognise that we signed the right deal for the United Kingdom. This is the best deal that India has ever agreed to. It is expected to increase bilateral trade by about £25.5 billion and raise UK GDP, but we have managed to secure a deal more timeously than was anticipated and, frankly, we got a better deal than many expected.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I can indeed. I said that this is a modern, forward-looking agreement, and that is why there is a recognition in the deal of exactly the values my hon. Friend mentions. That represents a first for India in many cases, it reflects the fact that we were determined to secure that as part of the negotiations, and it is one of the many reasons we are proud of the agreement announced today.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I hesitate to say, “What’s it called? Cumbernauld!” Whether for Scottish salmon, Scottish whisky or perhaps the most iconic Scottish product of all, Irn-Bru, this India-UK trade deal is good news. When I was being briefed by officials shortly before coming to the House, I asked for examples of the sectors in which we would see the biggest benefits, and my hon. Friend will be delighted to hear that Irn-Bru featured prominently in the description given.

• 6 May 2025 · Trade Negotiations · Hansard source

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  Given the significant progress we have made on goods, it is right to recognise that there are also huge opportunities on services. I pay tribute to the tech sector in the United Kingdom and to the extraordinary work that is being done not just in my hon. Friend’s constituency, but more broadly. The City of London, I am glad to say, has become a significant global tech hub, not least for fintech. Chris Hayward, policy chairman of the City of London Corporation, said today that “India is a key strategic partner, and this deal reflects our shared ambition to deepen trade ties, boost investment, and build lasting collaboration.” Whether in technology, fintech or financial services, there are huge opportunities as a result of this deal.

• 6 May 2025 · Trade Negotiations · Hansard source

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  Let me echo my hon. Friend’s generous tribute to Councillor Pankit Shah, and many like him who have made an immense contribution to the United Kingdom, making us what we are today. That reflects the human bridge formed by 1.9 million people, and the human dynamic here, and students play a significant, valued role in that.

• 6 May 2025 · Trade Negotiations · Hansard source

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  It is for the Indian Government to account for this trade deal in the terms that they so choose. We will follow the established constitutional process of the Constitutional Reform and Governance Act 2010 whereby not only are we sharing a statement with the House at the earliest opportunity, but the House will have the opportunity to scrutinise the details of every aspect of this agreement.

• 6 May 2025 · Trade Negotiations · Hansard source

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  First, it is right to recognise that the hon. Gentleman has form on arguing for the importance of the Commonwealth; I seem to recollect answering parliamentary questions in recent weeks on exactly the opportunity for doing effective economic work together that is provided by the Commonwealth and the fellowship of friendship that it presents us. On that, we are on all fours, and I certainly agree that we should look to strengthen and broaden our trading ties where we can. His point about Europe is a well-ploughed field in this House and elsewhere, and it seems to me that we should be looking forward and looking for new markets rather than engaging in old arguments.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I hope I can give my hon. Friend exactly that assurance, and I am conscious that there was an additional point I should have made earlier in relation to steel. As part of this agreement, we have included a bilateral safeguard mechanism, which allows us to temporarily suspend or increase tariffs if an industry is suffering or there is a threat of serious injury as a result of reduced duties. To my hon. Friend’s question, automotive companies will now benefit from selling to India with tariffs under a quota reduced from over 100% to 10%. We have agreed quotas to limit the volume of duty-free imports permitted to enter our markets. That will open opportunities for the sector, giving them a competitive edge in the Indian market and increased access to India’s rapidly growing middle class. As the sector transitions to electric vehicles, so will the market access we have secured as part of this deal. It will give British businesses the opportunity to scale up their exports as production ramps up. Both the UK and India have growing EV markets and production, so we want to protect these industries while ensure that consumers have choice.

• 6 May 2025 · Trade Negotiations · Hansard source

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  For both the digital sector and the healthcare sector, the deal offers significant opportunities in a huge and expanding market in India. It will deliver a degree of certainty as well as significant tariff reductions across a range of sectors, and it also affords us the opportunity to think long-term. We want to support the advanced manufacturers with which my hon. Friend is very familiar in the north-east of England to be able to make strategic investments in exporting to the Indian market. They will be investing in exporting not just to a large but to a growing market, and one that holds significant commercial opportunities for the decades ahead.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I wish to make a statement on the progress that this Government have made towards a UK-India trade deal. I am delighted to inform the House that we have now concluded negotiations on a comprehensive, modern agreement with the fastest-growing economy in the G20. Hon. Members will no doubt be aware that India is expected to be the third-largest economy in the world by 2028. By the end of this decade, it will be home to an estimated 60 million middle-class consumers, and with trade between the United Kingdom and India already standing at north of £43 billion, we know that this powerhouse economy is and will remain a hugely important market for British businesses. While past Governments have failed to negotiate a deal with India, this Government have today succeeded. We have brokered the most generous trade deal ever agreed by India in its history. From day one of this deal coming into force, it will make trade between our countries cheaper, easier and quicker. UK exporters will benefit from much lower tariffs across a whole host of sectors, including those that we are prioritising in our industrial strategy. It means simplified customs processes for businesses in advanced manufacturing and aerospace, in the food and beverage sector, and in the creative sector, which will benefit from improved copyright protection. For our world-leading financial and professional services companies, this deal locks in access to India’s fast-growing market. It will ensure that UK banks and finance companies are placed on an equal footing with Indian suppliers, and it encourages the recognition of professional qualifications, so that UK and Indian firms can access the right talent at the right time, whether they are in Mumbai or Manchester. This deal will unlock new opportunities for businesses in every part of the United Kingdom, including our advanced manufacturing companies in the north-east, our iconic Scottish whisky brands and our car plants in the west midlands. In all, we will have secured over £400 million in tariff reductions in the first year alone, doubling to around £900 million after just 10 years. Crucially, the deal we have negotiated will provide bespoke support for small and medium-sized enterprises to enter the Indian market, alongside a firm commitment from India to address the trade barriers that those businesses face. Since taking office, we have committed to hardwiring the views and interests of small businesses into everything we do, and the deal we have negotiated is evidence of that. For the very first time, British businesses will have guaranteed access to India’s vast procurement market, covering goods, services and construction. They will be able to bid for approximately 40,000 tenders worth at least £38 billion a year. The deal that we have just got over the line is further proof that this Government are using the power of international trade and investment to raise living standards here at home. Indeed, experts predict that it will boost our bilateral trade by some £25.5 billion. It is also projected to increase UK wages by £2.2 billion each year, while adding nearly £5 billion to our GDP over the long run. We have done all that while defending stoutly the UK’s national interest. We have brokered a deal that protects our NHS and upholds our high food standards. It ensures that our points-based immigration system remains unaffected. The deal demonstrates our commitment to both workers and businesses, staying true to our Labour values while contributing to our primary mission of economic growth. I recognise that this House will need time to scrutinise the deal before the ratification process. My Department will follow the process set out in the Constitutional Reform and Governance Act 2010 in sharing the finalised treaty text with hon. Members. The House will, of course, have the opportunity to scrutinise any legislation associated with its implementation. This deal sends a powerful message about the UK and India’s shared commitment to free, fair and open trade. The UK-India relationship has deep, enduring roots, exemplified by the living bridge of 1.9 million people of Indian heritage living in the United Kingdom. While I do not personally lament that the right hon. Member for Richmond and Northallerton (Rishi Sunak) is no longer the UK’s Prime Minister, it would be wholly wrong of me not to acknowledge his significant achievement as the first British-Indian Prime Minister, which is a testament not just to his own ability but to the close bonds that unite our two nations. The Government are proud to back open markets and free trade. We recognise that Britain has always been an open, outward-looking trading nation, and we believe that open markets and free trade are fundamental building blocks with which the UK can secure its opportunities and prosperity at home and abroad. Through our upcoming trade strategy, we will set out our ambitions to engage with more industrial giants, like India, to ramp up trade and investment over the coming months and years. Today, though, as close trading partners and as friends, I am proud that we have secured this deal with India. It is a deal that affords UK businesses certainty and stability during a time of global uncertainty and instability, and a deal that will give British businesses access to one of our biggest markets abroad, while raising wages and driving growth here at home. That is what this deal delivers, and I commend this statement to the House.

• 6 May 2025 · Trade Negotiations · Hansard source

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  The points-based immigration system is not affected. The UK has not given away visas or created new routes as part of this deal. It is existing business mobility routes that have been expanded for highly skilled and experienced professionals to cover additional sectors.

• 6 May 2025 · Trade Negotiations · Hansard source

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  It was this Government who recently stepped in to save British Steel in order to save thousands of jobs and avoid a sudden collapse in our primary steelmaking capacity. Thanks to this Government’s swift intervention, we were able to secure the raw materials that kept the blast furnaces at Scunthorpe alight. British Steel has also cancelled the redundancy consultation that would otherwise have put 2,700 jobs at risk. Frankly, UK industry depends on the UK steel industry and thanks to our plan for change, demand is set to increase, as we build the 1.5 million homes, the railways, the schools and the hospitals that we need to usher in a decade of national renewal. That is the context in which we have taken forward today’s announcement.

• 6 May 2025 · Trade Negotiations · Hansard source

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  India is quite simply the fastest growing economy in the G20, and is expected to be the third largest economy in the world by 2028. If we were choosing countries that we would wish to do deals with, India would be pretty high up the list. By 2030, India will be home to an estimated 60 million middle-class consumers, whose numbers are projected to grow to a quarter of a billion by 2050, and the demand for imports is on course to top £1.4 trillion by 2035.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I thank my hon. Friend and fellow Scottish Member of Parliament. One of the commitments that we made when we were both elected—in my case, re-elected—to the House back in July was that we would seek to ensure a Labour Government delivering for Scotland. The cut that we have secured in whisky tariffs for the huge and significant market in India is a clear and tangible example of the difference we are making. He does not need to take my word for it. These are the words of Mark Kent, the chief executive of the Scotch Whisky Association: “The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch Whisky exports to the world’s largest whisky market. It shows that the UK government is making significant progress towards achieving its growth mission, and the Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal”.

• 6 May 2025 · Trade Negotiations · Hansard source

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  The United Kingdom is a leading advocate for human rights around the world, and we remain committed to the promotion of universal human rights. When we have concerns, they are raised directly with partner Governments, including at ministerial level. The horrific recent terrorist attack in Jammu and Kashmir was utterly devastating, and my thoughts remain with the victims, their loved ones and the people of India. It is, however, for India and Pakistan to find a lasting solution and resolution to the Kashmir dispute, taking into account the wishes of the Kashmiri people.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I think it was Tip O’Neill, former Speaker of the House of Representatives, who said “All politics is local”, so if I am going to be toasting tonight’s deal, it will be with the finest Glenkinchie whisky from the East Lothian part of Scotland, not, alas, with an Islay malt or a malt from the outer isles. I pay generous tribute to my hon. Friend, who is a doughty, tireless and fearless defender of the interests of not just the Harris tweed industry or whisky producers but Scottish salmon farmers, who are a significant contributor to UK exports, never mind Scottish exports. In sector after sector of the Scottish economy, there will be significant material benefits as a consequence of this deal. We promised that we would have a Labour Government delivering for Scotland. Today we are seeing what that promise looks like delivered.

• 6 May 2025 · Trade Negotiations · Hansard source

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  I can give the House that assurance. I thought we were going to have an uncharacteristically warm endorsement from the hon. Gentleman until he got to the word “however”. I have to say, we have been so busy negotiating a trade deal with India that we have not had the chance to read the First Minister’s “Programme for Government” today. In the spirit of generosity, he pays tribute to the work that has been done on whisky, and I will read out the statement by Debra Crew, the Diageo chief executive, who said: “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.” I could not have put it better myself.