 The next item of business is a statement by Ivan McKee on Scotland's vision for trade annual report. The minister will take questions at the end of his statement and so there should be no interruptions or interventions. I call on Ivan McKee up to 10 minutes, minister. Thank you, Presiding Officer. Presiding Officer, Scotland is a proud trading nation for centuries. We have exported goods and services across the globe. Today our food and drink, higher education and science technology exports to name but a few are renowned the world over. In Scotland we recognise that international trade is a force for good but it can also present us with difficult challenges from how we respond to world events out with our control to ensure that the benefits of trade are shared equitably and responsibly. In recent years the complex system of international trading connections has come under considerable strain. The Covid-19 pandemic presented unprecedented challenges to the supply of critical products. The UK's hard exit from the EU compounded those challenges, creating barriers to our access to the goods and services that we take for granted and to our ability to share what we produce with our neighbours. In January 2021, amid this disruption and uncertainty, I presented Scotland's vision for trade through this Parliament. The vision offers a longer-term perspective and coherent approach to trade, a set of guiding principles that we can use to underpin our trade decisions and relationships. I am pleased to present the first annual report detailing our progress so far in implementing the vision. The context in which I am doing so is marked by further dramatic shifts in the global trading system. The need to apply principles to international trade decisions has become even more important. Russia's invasion of Ukraine has brought a new global crisis and humanitarian catastrophe trades. Economic relationships with Russia have been a particular focus of the co-ordinated worldwide response. The vision provides our guiding principles as we stand in solidarity with Ukrainian people. The report that I present to you today documents how we have been putting those core principles of inclusive growth, wellbeing, sustainability, net zero and good governance into practice to meet the needs of Scotland's people and businesses. It sets out the actions that we have taken to implement our vision, progress in using the levers that are available to the Scottish Government, and how we have sought to influence the UK Government in the areas in which levers are currently reserved. As I said last year, when laying out our vision before Parliament, actions speak louder than words. I want therefore to take a few moments to highlight a few of the actions that we have taken so far. Last year, of course, Glasgow hosted one of the most important gatherings of world leaders this century. Scotland can, of course, be proud of COP26 for many reasons. One of those reasons, however, is that it marked the end of our overseas support and promotion activities solely focused on fossil fuel goods and services, a commitment that we made in the vision for trade. Looking ahead, we are turning our focus to supporting the energy and climate transition using momentum from COP26 to deliver real opportunities for Scotland. For example, creating opportunities is a core part of our hydrogen action plan, which will help to make Scotland a leading nation in the production of reliable, competitive and sustainable hydrogen. We have also focused on this first year on improving the trading environment for Scotland's businesses. Our businesses can face a number of barriers to trading internationally. Something as simple as product labeling requirements can deter companies from entering a market or increase costs. Addressing such market barriers can open up significant opportunities for businesses. We have developed a methodology to identify and prioritise the most significant market access barriers that affect Scottish trades so that we can begin to address them. We have taken advantage of trade opportunities. We have consistently sought to strike the right balance between competing priorities to ensure that trade rules do not jeopardise other important aims. The vision provides us with a framework for doing so. For example, our Greenport proposals adapt the UK's three-port model to help to deliver a net zero economy and a fair work first approach. Our notification to the W2 over single-use plastics regulations allowed us to demonstrate transparency and openness to the scrutiny that comes with effective global governance, while ensuring that trade rules do not prevent Scotland from meeting ambitious environmental targets. However, as the report makes clear, there is much more that we can do to advance Scotland's economic, social and environmental aims through trade. We are at the beginning of implementing our vision and are open, honest and ambitious about the work ahead of us. Those actions will not be taken in isolation from other strategies but will underpin and support them by helping to create optimal trading conditions for Scotland's businesses. For example, the vision will directly support the national strategy for economic transformation's aims to strengthen Scotland's position in new markets and industries, alongside generating new, well-paid jobs from a just transition to net zero and supporting Scotland's export growth plan, a trading nation. For our economy, that includes identifying further opportunities to make it easier for Scottish businesses to trade digitally while boosting our international recognition as an ethical digital nation. Objectives shared by the recently published technology sector export plan. For Scotland's people, recognising that there are winners and losers from trade, we will build our evidence base on what those differential impacts are and how we can address them. That approach aligns with our ambitions for our economy to drive progress towards a fairer and more equal society as set out in our national strategy for economic transformation. For the planet, we will continue to build coherence between our climate, environmental and trade ambitions, developing our understanding of the strengths and opportunities that are presented by our environmental goods and service sectors. While we are clear about actions that Scotland can and should take in relation to trade, we are also relying on others to act in a way that supports our economy, people and the planet. As the report details for trade-related levers sit with Westminster, we have pressed the UK Government to use it to support Scotland. For example, since leaving the EU, against Scotland's wishes, the UK Government has pursued a series of ad hoc free-trade agreements with countries around the world. While presented as a benefit of Brexit in reality, the expected economic benefits from those deals is tiny and in no way compensating for the economic impact of EU exit. Given the impact of those agreements across a wide range of devolved and reserved issues, we and the other devolved nations have repeatedly called for a full role for the devolved administrations and legislators in all trade negotiations. Despite the UK Government's refusal, we have engaged fully on each and every agreement, pressing for greater opportunities for Scotland's strong services sectors and the reduction of tariff and non-tariff barers for our priority goods exports. In doing so, we have drawn on the principle set in the vision to promote and protect Scottish trade priorities. Our call for increased involvement is not just about process. The UK Government has recently signed FTAs with Australia and New Zealand. Both of those raised issues are profound importance to Scotland, with our lack of a formal role to our concerns ignored. We have consistently pressed the UK Government to protect Scottish producers from imports originating from countries with different environmental and animal welfare standards. Appropriate protection was not included in either agreement. Now, for example, a Scottish premium beef exporter risk has been undercut by competitors from Australia and New Zealand who are not competing on a level playing field of like for like standards. We also continue to press the UK Government in other areas. As our nearest and largest trading partner, we continue to push for the UK Government to build on the terms of the trading cooperation agreement and deepen the UK's relationship with the EU. We are engaging with the UK Government to ensure that Scottish interests are identified, protected and promoted at the WTO, reflecting commitments that are made in the vision. In the vision for trade, we have issued an open invitation to individuals, businesses and other organisations in Scotland and globally to discuss trade policy with us. I want to reiterate that call for engagement. Those inputs are crucial to our work, implementing the vision and ensuring that our approach is informed by their experience and expertise. Last year, I told Parliament that that vision made clear the kind of country we want to be with strong principles to guide how we do business around the world so that people, companies and other Governments know who we are and what we represent as a nation. One year on, that report demonstrates that we remain absolutely committed to openly, transparently and unapologetically setting high standards for ourselves and for others. I began that statement by reflecting on Scotland's proud trading legacy in a context of turbulent global affairs and strains on the international trading system and precedented in modern times. Scotland does not forget its principles, nor compromise them when it suits. Today, we continue that legacy. Thank you. The minister will now take questions on the issues raised in his statement. I intend to allow around 20 minutes for questions, after which we will move on to the next item of business. I would be grateful if members who wish to ask a question can press their request to speak buttons now. I thank the minister for early sight. In the first paragraph in his statement, he quite rightly mentions that the higher education sector is one of the key sectors when it comes to improving a whole range of economic factors. He is absolutely right in that. However, the University of Scotland has commented that Scotland is not sufficiently competitive when it comes to economic growth, and that was one of the unanimous conclusions of the finance committee in this Parliament. I will read to him a short section of the University of Scotland's comment on this. The research excellent grant has declined in real terms by 18.2 per cent since financial year 2014-15. In the same period, Scotland's universities have won a progressively smaller percentage share of the UKRI resources down from 15.4 per cent to 12.9 per cent. What is the reason for Scotland not winning so many of the research grant projects and what is being done to address that? Secondly, the minister also refers to improving the trade environment for Scotland's businesses. He will know that one of the big asks of the business community, and indeed the funding council, is that much more has to be done to both upskill and reskill our workforce with much more focus on digital skills, data science and leadership and management skills, for with far more resources being available through the national transition training fund. I ask the minister if that is going to happen. I thank the member for the questions. First, on economic growth, as we emerge from Covid, we are determined to continue to grow Scotland's economy. The biggest drain on our economic growth is the policies of the UK Westminster Government in taking Scotland out of Europe against our will. That has been the biggest impact on growth in international trade and investment opportunities for Scotland. It is absolutely right about the world-leading position of Scotland's universities. I am just back from Expo in Dubai. What university is the biggest international university in the Emirates? It is a position that we are very proud of. I met with them in their new campus and also with Strathlade University in their campus in Dubai, and Scotland's universities are presented extremely well in very leading positions right around the world. We continue to work with the university sector to promote and develop, recognising its absolute cornerstone, not just in academic excellence and promoting our values, but in promoting trade and investment opportunities around the world. If we talk about research and development spend, Scotland continues to lead Europe in terms of our higher education R&D spend, something that we are rightly proud of and continue to focus relentlessly on. As the member identified herself, Scotland gains 13 per cent of UK spend on R&D far above our population share of where we are now, and we continue to work in that hugely competitive environment to make sure that Scotland punches above our weight. I am sure that the member has turned to the issue of digital skills, and I am sure that she has. She has read our investment plans for shaping Scotland's economy that identifies a key action that increases the number of digitally trained individuals that focus on digital careers in Scotland from 4,000 a year to 10,000 a year, and we are on target to achieve those numbers. Across a wider upskilling piece across the whole economy, she will be well aware of the significant funding that the Scottish Government is putting into digital upskilling and reskilling right across a whole range of skills that are required for Scotland's maintaining its leading position in the key industries of the future. Daniel Johnson I thank the minister for prior sight of his statement. He is absolutely right to emphasise the importance of trade. Trade is fundamentally important if we want to see improved prosperity and, most importantly, an increased number of high-quality jobs, particularly as we look to transition away from oil, which has been at the top of Scotland's export table for a number of decades. However, in order to make a difference, we need targets, metrics and milestones. I have to say that this update and the report that it dates on is rather light on numbers, which is surprised because I think that 2019, a trading nation report, did an excellent job of identifying metrics. My first question is, will the Government, in future updates to this plan, commit to a range of metrics so that we can measure progress? Looking at some of the metrics from a trading nation, it pointed out that 0.2 per cent of Scotland's GDP is attributable to trade and set a benchmark of 0.5 per cent. It also identified a number of opportunity gaps with key markets, particularly the USA, which was a 10.7 per cent gap. Are there any updates on those core benchmark metrics for our trade? Likewise, it identified that 97,000 firms do not export in Scotland and 10.5,000 export just 18 per cent of their output. Are there any updates on those numbers? Indeed, are there any updates on the number of firms that the Scottish Government has assisted in the last year? However, the real question is this. We need to ask ourselves what does Scotland want to sell to the world? For this report and its future updates to be helpful, we need metrics, so please can we have them? I am delighted to be able to respond to the member's question by making him aware that we will very shortly be bringing forward an update on a trading nation and providing exactly the data that he requires. That is in the final stages that have been pulled together now, two and a half years after we published the plan. We will also be bringing forward an update on our FDI plan, shaping Scotland's economy, to articulate the progress that we have made in rest assured that a full suite of numbers will be available as part of those updates. We need to recognise that what we are talking about here today is the vision for trade, which is one of the four international plans that we have alongside a trading nation that focuses on what we sell and how we sell that around the world and support businesses to sell more. Our investment plan focuses on how we continue to cement Scotland's position as the leading investment attraction across the United Kingdom of London, and our global capital investment plan, which relates very much to the natural capital investment works that my colleague Mary McAllan has taken forward in a previous statement. The vision for trade is about the measures that we take to ensure that those principles are applied to how we trade rather than what we trade. Those other plans in that suite of work are where we focus on the numbers, which he knows that I am hugely focused on. That is about principles and the concrete actions that we are taking to embed and develop those principles to ensure good governance around trade and to work with others to take forward environmental, social and other standards and make sure that we tackle those aspects of our trade in relationship. As the minister said, there is no trade deal that the UK Government can spike that will make up for what Brexit has taken away from Scotland. It is clear that the UK Government is not delivering on a trade vision but instead is bargaining away Scottish interests. Does the minister agree with me that, with the full powers of independence, Scotland would be able to put our own objectives and values, parts of our trade decisions and relationships in the future? Governments around the world have arranged levers available to them to influence trade and its impact. In today's report, it outlines the progress that we have made using levers available to us and based on our principles, it also sets out how we have pressed the UK Government to use those levers that are currently reserved to Westminster to act in the interests of Scotland, our economy, people and planet. The UK Government is negotiating a series of ad hoc free-trade agreements, as I said, that are expected to result in tiny increases in the economy, which will no way compensate for the loss of trade as a result of Brexit. The UK Government has no other strategy. It has not prioritised building on the terms of the current trade agreement with the EU or nearest and largest trading partners. Our vision for trade, by contrast, is an example of a coherent strategic principles-based approach to the trade that Scotland could take forward as an independent country. Tumihalfr Johnston, to be followed by Fiona Hyslop. The minister has claimed that his is a Government that seeks to reduce barriers to trade and has outward-looking principles. Yet it remains his Government's policies to put up hard trade barriers with our closest neighbours and our largest trading partners in other parts of the United Kingdom and to destroy the internal market that we enjoy. To focus on something that he can deliver, what is the Government doing to support Scottish business, increase operations and trade opportunities in our United Kingdom market? The Tory Government has done the most damage to Scotland's economy and trade relationships through the completely misguided approach to Brexit. It could have done Brexit, and we would not have agreed with it, but it could have done it in a way that maintained our position in the single market and the customs union. Of course, it chose to ignore that through some ridiculous points of misguided principle and to sacrifice Scottish and UK business on the altar of their ridiculous obsessions with wanting to be an island apart from the rest of our complete nonsense. The Scottish Government is focused, as it is very clear, on reducing barriers to trade and continuing to do so with our nearest neighbours. We work with Scottish businesses, I am sure that he is very much aware, to support their ability to export internationally and to support their ability to export to the rest of the United Kingdom. We have staff in Scotland's house in London who focus on opening up those opportunities for business in Scotland to identify markets beyond Scotland, as I say, in the rest of the UK and internationally through the work that they do. That remains the focus of this Government, reducing trade barriers, supporting Scottish business, increasing investment into Scotland and continuing to deliver on that agenda. It is something that we are very proud of, in contrast to the policies of the UK Government, which we sought to destroy and erect barriers to trade every opportunity. Fiona Hyslop is followed by Clare Baker. Valneva's decision to develop and manufacture its Covid-19 vaccine in Scotland is very welcome, as is the recent announcement of a Scottish Enterprise funding package, which will support high-quality jobs. Having one of the largest and most advanced manufacturing sites in the world in Scotland in Westlothian brings with it substantial opportunities for exports in vaccines across the world. Can the minister say any more about how the Scottish Government and its vision for trade will help to ensure that we realise the substantial opportunities from trade for our life sciences and biotechnology industries? Fiona Hyslop is absolutely right. Scotland's life science sector is a key part of Scotland's economy. We have identified that in our national strategy for economic transformation. It is a key export sector in our trading nation and continues to absolutely punch above its weight in R&D investment in the sector and inward investment in the sector. We are working with the sector through the ILG to develop the life science sector export plan, which will continue that growth. Valneva's site that I had the pleasure of visiting on Monday is remarkable for Scotland to land such a globally significant inward investment to manufacture at scale Covid vaccine and many other vaccines here in Scotland as a real testament to the growth and strength of the sector in Scotland. Not helped by the UK Government who did their best to cut the legs away from Valneva through the ridiculous behaviour with regard to the contract that it had with Valneva to supply vaccines. The Scottish Government stepped in and rescued that deal, made sure through Scottish Enterprise investment that that plan will be one of the cornerstones of Scotland's life science sector in one of the many inward investments that are coming down the track, which will be announced in due course to continue to support that sector in Scotland. The vision for trade supports these aims by identifying actions that the Scottish Government can take to influence that trading environment, building the necessary conditions for that growth and that offers opportunities for life science and biotechnology industries right across Scotland. Clare Baker, to be followed by John Mason. The statement today is a bit light on delivery plans, but the Government are committing to a mythology to prioritise identified market access barriers. Can I ask what the timescales for using this mythology? Will the minister share the analysis with the Parliament? I can ask who will be responsible for delivering the actions needed to address the barriers to market access. Again, I point the member in the direction of a trading nation, which is the plan for growing Scotland's exports, which is obviously a jam-packed full of targets. I will be coming back to update the Parliament as indicated earlier on those at a detailed level very, very soon. The vision for trade is about how we trade. It is about our principles, it is how we interact with others around the world to be able to take forward those principles, it is about how we work with others around the world on good governance and tackling environmental challenges and making sure that we recognise that there are winners and losers from trade and how we position Scotland's trading behaviour in that regard, and about taking steps that are identified to exit from our support for fossil fuels as part of our net zero missions. We are, of course, taking forwards identified in the vision for trade a process for identifying those market access barriers, a process whereby businesses can notify those to us and we can either deal with those directly where we have the scope to do so on the world stage or where we have to engage through UK Government where they have the levers to do that, to work with them to deliver on that. We will continue to do that and identify those market access barriers and continue to tackle them. As I said, if the member wants to know where we are on the export plan actions, she should come back for the next instalment when she will hear about an update on a trading nation. I appreciate that the minister wishes to provide comprehensive responses, but I have several members who would still like to put a question in this session. I call John Mason to be followed by Willie Rennie. Thank you very much. The minister mentioned Australia and New Zealand agreements in his statement and pointed out that there was no formal role for Scotland in that. Does he agree with the comments from the NFUS President, Martin Kennedy, that the UK-New Zealand trade deal offers virtually nothing to Scottish farmers and crofters in return, but risks undermining our valuable lamb, beef, dairy and horticultural sectors by granting access to large volumes of imported goods? Yes, I absolutely agree with that and if the UK Government had engaged us in the full scale of the process through those negotiations, as many of their trading partners internationally do with their subnational jurisdictions, we would be in a much better place, but the UK Government has, unfortunately, refused to do that. As part of our efforts through a vision for trade, we continue to call on them to behave in a much more connected and inclusive manner and to include devolved administrations through the process of negotiating those trade deals. Willie Rennie is to be followed by Stuart McMillan. It is depressing that the minister comes back to the chamber and reports on yet more disputes with the UK Government. It is inability to reach agreement with the UK Government is hampering our efforts in that area, so we need better from our two Governments. That is important because, since the SNP came to power 15 years ago, the trade deficit has grown significantly. What the effect on the trade deficit will be of awarding two ferry contracts to Turkey and of constructing many of the offshore wind farms off the shore of Scotland to the Far East? What is the effect on the trade deficit of those two things? Willie Rennie should be aware that Scotland's trade position is in a much better position than that for the UK as a whole. Recently, it has shown that Scotland has a trade surplus compared with the rest of the UK. We want to continue to build on that. As for disagreements, I really should listen more closely. We have been very keen to engage with the UK Government. We have produced comprehensive documents for all the FTAs that have negotiated. We have made those available in plenty of time, articulating Scotland's position. We have positioned ourselves going right back to, I think, four years now when we produced our paper, articulating how Scotland and the devolved administration should be involved in this process. The UK Government has refused to engage with us on any of that. That is the root cause of the problem. We stand ready to engage with them to present Scotland's case, to be part of those trade negotiations. However, the UK Government, through its misguided policies, refuses to engage with us on that. If it really wants to make a difference here, it should be pushing the UK Government to take the devolved administration seriously in that regard. Stuart McMillan, to be followed by Maggie Chapman. I am sure that members across the chamber will agree how important it is that work continues to ensure that Scotland operates as a good global citizen. The minister touched upon that in his statement to me to talk about the values. Can the minister provide an update as to the steps that have been taken to continue to develop and strengthen connections between human rights and trade? The vision for trade is very important and recognises that human rights must be a central consideration in our trade policy. As part of that, we are looking to embed human rights considerations into our trade related activity, including through additional guidance on due diligence. We will continue to review that and benchmark ourselves against developments in the European Union. We will also seek to engage constructively with the UK Government, including in the negotiation of free trade agreements in that regard. The UK Government should ensure that future trading partners comply with fundamental human rights and international law. The annual report references fossil fuel subsidy reform, and the minister referred to the free trade deals that the UK Government has made with Australia and New Zealand. Can he provide further information on the impacts on our environmental and animal welfare standards that those deals will have and how they, alongside the internal market act, will limit our abilities to prevent environmental harm and maintain high regulatory standards in areas such as food safety, energy, animal welfare and climate? We take all those issues extremely seriously and the vision for trade has that at its core. We continue to engage, as I said, with the UK Government to ensure that those principles are embedded in the free trade agreements that they take forward. We continue to highlight areas in which that is not the case. The vision for trade that is recognised internationally, frankly, has been a real benchmark on how to do trade in that manner. At its core, we are very proud of the fact that it allows us to articulate and make sure that those very important issues, about how we trade, as much as what we trade, are absolutely central to Scotland's approach to international trade. After today, the devolved Government is ending overseas trade support for oil and gas service companies. Does the minister agree with me that it will now be left up to local authorities in the north-east to defend the thousands of jobs of workers in this sector? Will the minister take this opportunity to apologise to the people of the north-east for this latest betrayal by the SNP Green coalition of chaos? I hate to break it to remember, but the UK Government is also doing the same. I am there with drawing support from businesses that are sorely focused on fossil fuel exports. It is absolutely the right thing to do, which means that it allows us to refocus on that support. We are still spending the same amount of money on supporting those businesses. We are just focusing on businesses that are transitioning into the renewable sectors rather than businesses that are not transitioning into the renewable sectors. Frankly, the vast majority of businesses in the oil and gas sector—I meet them on a very regular basis—are well down the road of transitioning to renewables and away from a solar reliance on the oil and gas sector. Frankly, for those businesses not to do that transition and for them to encourage them not to transition is absolutely counter to what they are trying to achieve and is harmful to the economy of Scotland and to those that he represents. Edinburgh and the south-east region deal recently approved a £30 million investment in the food and drink innovation hub at Queenmarket University. Food and drink is also the only sector-based business improvement district in Scotland. It is one of our major growth areas. With the continued effects of Brexit, it is still impacting the sector. What vision for trade can it do to support growth in the food and drink sector in Scotland and in Scotland? Scotland's food and drink sector is renowned around the world for its high-quality standards and provenance centre support for the Scotland food and drink export plan, which helps industry to exploit the most significant international opportunities. That sits alongside the food and drink sector recovery plan, which mitigates against the impact of Brexit and Covid. The division for trade supports that by identifying actions that the Scottish Government can take to improve the trading environment that benefits the sector. We are keen that new trade agreements offer opportunities for Scottish exports, although they will not compensate for the barriers that the UK Government has erected between Scotland and the EU. That concludes the ministerial statement, Scotland's vision for trade annual report. We will move on to the next item of business. I will allow a moment for members to move places.