Falkland Islands: Fisheries Exports Tariffs

Question

11:28:00

Asked by

To ask His Majesty’s Government what steps they are taking, as part of the UK–EU relationship reset, to secure the removal of tariffs on fisheries exports from the Falkland Islands.

My Lords, we fully recognise the challenges that these tariffs pose for the Falkland Islands. These tariffs stem from the fact that the Brexit deal reached under the previous Government does not cover the overseas territories, and the EU has been clear that it is not willing to reopen the fundamental terms of that deal. The UK and Falkland Island Governments have been working together on seafood exports, including securing US Government agreement to consider reducing US tariffs on Falklands exports.

I am very grateful to the Minister because she recognises how important the income from the fishing industry is for the Falkland Islands, given that 63% of its income comes from fishing. Will she ensure that their next meeting under the UK -EU reset will include this item, demonstrating the UK’s credibility and consistency in promoting free and fair trade across the globe?

I thank the noble Lord for his question. He is right on the importance to the Falkland Islands economy; it is key. Over 90% of their fishing exports are sold to the European Union, and €15 million-worth of tariffs is having a genuine effect on their economy. One of the reasons we are in this place is because the previous deal on Brexit, negotiated by the Conservative Party, explicitly ignored the British Overseas Territories. That means that we are having to do this through soft power and ongoing relationships, which is why the EU-UK reset is so important and we are seeing some of the fruition of it with Macron’s visit here today. We are doing what we can. We will continue to work closely with the Falkland Islands Government to do what we can to help and protect their economy.

The European Union Committee looked at this issue in 2020-21. What was interesting about it then—and I am sure that it is fairly similar now—is that the fishing grounds for the Falkland Islands were fished by ships that were largely 50% owned by Spanish interests and 50% owned by Falkland Islands interests. The catch was then landed in Spain, chiefly at the port of Vigo, and 6,000 Spanish jobs were then involved in the processing of the fish, which were sold throughout the European Union. It would seem that one of the steps towards looking at this would be to make common cause with the Spanish Government. Does the Minister agree?

The noble Earl raises an important point. Obviously, as part of the EU reset, our bilateral relationships with European Union members are key. The noble Earl is right about the ownership structures of the fishing companies, although for the record it is 51% that is owned by the Falklands and 49% that is owned by the Spanish. The Falklands always have a controlling share.

My Lords, regarding credibility and consistency, because the previous Government forgot about the Falklands at the start of the Brexit negotiations, I asked the then Foreign Secretary, the noble Lord, Lord Cameron of Chipping Norton, with all of his great authority and prestige, if he would resolve the issue with regard to the, “£15 million a year to be Spanish-flagged vessels as a result of the lack of access to the EU market”. I asked him that “British fishermen on British vessels fishing in British waters will not to have to do so under a Spanish flag”. His reply to me: “I will certainly take the noble Lord’s point away”.—[Official Report, 5/12/23; col. 1387.] He did, and he kept it away; I never heard back. I commend this Government for seeking additions to the TCA—for example, the SPS negotiations now under way—but what is preventing our Government now commencing discussions for an additional agreement to the TCA with regards to resolving the issue that the party to the right created?

The noble Lord is right: we are trying to fix a problem that, yet again, we were left by the previous Government. The European Union is clear that the TCA cannot be reopened in terms of its geographical consequences. On additional agreements, we are working very hard to make sure that the EU reset has a positive impact on all aspects of British interests, and that includes on the Falkland Islands. I cannot promise to come back to him—

Do not take it away!

I will take it away, but I promise I will also come back.

Obviously, the overseas territories and the Crown dependencies are an integral part of the British family; they are part of Britain. Surely the lesson here is that, when it comes to future UK free trade deals, they should always be included.

I wish the noble Lord had had that conversation with the previous Government, but he is right. I have been to the Falkland Islands—I went in 2018—and it is an incredibly important part of the British family in terms of its sovereignty. As regards what happens next, a key point in our conversations with the American Administration has been on the impact of tariffs, which is why I am so pleased that only today they have paused the tariff that would have had an impact on the Falkland Islands economy. We are working with the Falkland Islands Government at every opportunity, as we are with all of our overseas territories.

My Lords, is this not another case of where it has been a disadvantage to Britain to leave Europe? We were promised lots of benefits. When are those benefits going to arrive?

My Lords, I live in Stoke-on-Trent, and I campaigned for remain in a 72% leave constituency. There are some elections I was definitely never destined to win. My noble friend will be aware that this Government are committed to making Brexit work. There is no point in looking back at this point; now we have to fix some of the problems that we have inherited.

My Lords, on the subject of tariffs, when the Prime Minister agreed his deal with the USA, he sold out the UK’s bioethanol sector, apparently without proper consideration of the impacts it will have on farmers across the country who sell their produce for bioethanol. Can the Minister reassure us that no future trade deals that disadvantage UK farmers will be accepted?

My Lords, it is a stretch to go from fishing to agriculture, but I am more than up for the challenge. A thriving agriculture sector underpins our food security and supports the prosperity of regional communities across the UK. We will continue to seek fair and balanced deals, which include new export opportunities to grow the UK’s world-class agri-food and drink sector, which is the world’s largest manufacturing sector. In no small part we have already seen some of those arrangements with regard to the SPS deal, which will make trade better, including for fishing, and will help contribute an additional £9 billion a year in exports and growth to the UK economy.

My Lords, one of the points raised consistently by the Minister is about Brexit and the legacy left. I am sure she would acknowledge, as she did in her original Answer, that all of the trade deals which are now being made are provided by the flexibility of the Brexit dividend. I, like her, campaigned for remain, but I recognise the flexibility we now have. My question is focused on the reset. I am sure the noble Baroness will acknowledge, as the President of France did, the importance of the Windsor Framework and, indeed, the Blenheim Palace summit. Let it not be forgotten that the principle of that summit was made by the previous Government, as was acknowledged by the President of France and the Minister can acknowledge today. My question is specifically on the sovereignty of the Falkland Islands. One of my last acts as a Minister was in Paraguay with the OAS, restating the unstinted sovereignty of Britain over the Falkland Islands, the Sandwich Islands and all the related maritime areas. Can the Minister restate the importance of that sovereignty and that it is not up for negotiation?

Yes, there is no room for questioning British sovereignty with regard to the Falkland Islands.

My Lords, the European Union appears to be interested in joining CPTPP, which is something the United Kingdom has already done. Will the Government ensure that we use any leverage in that negotiation to ensure that the kind of problem we are discussing today is resolved?

The noble Lord raises an interesting point, and I will make sure that the negotiators are aware of it.

My Lords, there has been lots of recent discussion about Diego Garcia and the change in ownership there. Who has the fishing rights around there? Is it us or Mauritius or the Americans? Or is it not a Crown dependency anymore, so maybe it does not matter?

I thought that I had done so well with regards to agriculture, and now I have Chagos and fishing. I genuinely am not aware of the fishing rights around the Chagos Islands, but I will write to the noble Lord.