The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (George Eustice)
I begin by congratulating the hon. Member for Brecon and Radnorshire (Roger Williams) on his continued interest in this subject, and on securing this important debate on the Transatlantic Trade and Investment Partnership and the impact that it might have on the poultry industry.
As the hon. Gentleman says, our poultry industry is vital to the UK economy and is one of the most successful across Europe, supporting around 73,000 jobs in the UK and contributing £3.3 billion annually to the UK GDP. I am aware that, as the hon. Members for Strangford (Jim Shannon) and for South Down (Ms Ritchie) pointed out, there is a very strong poultry industry in Northern Ireland as well, so securing and building export markets is particularly important for sales of dark poultry meat and so-called fifth quarter products. This provides added value markets for poultry meat products not generally consumed domestically, and therefore increases the value of each bird.
We have continued to seek access to foreign markets for our poultry products. The hon. Member for South Down highlighted the potential in China. Just last week the Secretary of State was in China. One of the things she was doing was progressing negotiations to open the potentially lucrative market there for chicken feet. One of the interesting things one learns in this job is that although there is not a large market for chicken feet in this country, they are regarded as a delicacy in China and therefore fetch a value that cannot be achieved here.
International exports of UK poultry meat increased by 31% over the first half of last year. This growth has been supported by new markets opened in, for instance, Madagascar and Mozambique. Exports of live poultry increased by 9% in this period, with particularly strong growth in Africa. This growth has continued despite some of the challenges that the industry has faced, and is a strong indication of both the innovation of the industry and the strong partnership that the industry has with Government.
As the hon. Member for Brecon and Radnorshire pointed out, there are wider benefits for other sectors in the food industry from increasing access to foreign markets. For instance, in 2013 UK producers exported almost £2 billion-worth of food, feed and drink to the US. A comprehensive trade agreement between the EU and the US could add as much as £10 billion annually to UK GDP. One independent study estimates that total UK food and drink exports could increase by around 4.5% as a result of TTIP, so securing an ambitious deal in TTIP is a priority for the Government and we are prepared to take the necessary steps to ensure that we achieve a deal that provides the best possible outcome for the UK.
I know that there are some concerns, specifically in the poultry industry, about the potential impact of TTIP. I can reassure the hon. Gentleman that I had a meeting with the British Poultry Council last year to discuss its concerns in some detail. We should know that one consequence of freer trade with the US is a potential increase in the level of competition for UK producers. We need to consider the implications of the trade deal for different sectors within the farming industry.
Jim Shannon
Although we have made concessions in deals with the United States, we sometimes find the United States very reluctant to do likewise. Has the Minister any experience of that in relation to food imports and exports?
George Eustice
It is widely anticipated that the US will make concessions, but the hon. Gentleman makes a good point. The opening offer from the EU was deemed to be somewhat more generous than the opening offer that came from the US. That was recognised. At a session that I had with Tom Vilsack, who was representing the US, and other EU leaders, that was one of the points that was raised.
I appreciate the concerns about the implications of the different approaches taken to food safety and animal welfare as between the US and the EU and, in particular, whether this could place UK producers at a competitive disadvantage. I shall return to this point later in my remarks. First, we need to recognise that any free trade agreement is about setting the foundations for a better, more effective trading environment for our producers. This includes outlining specific areas for deeper collaboration to ensure that we are maximising trade opportunities. For agriculture, this includes establishing a better transatlantic relationship with regard to animal and plant health—or, to use the jargon, the sanitary and phytosanitary measures.
The aim of TTIP will be to formalise how the EU and US work together in this area to facilitate trade, while protecting human, animal and plant health. I should point out that that is not something new. For example, the EU has negotiated deals with a number of countries, including with Canada and Korea—both of those deals include dedicated sections on animal and plant health measures. Each agreement sets out some specific details in a tailored way, but ultimately outlines a template for future co-operation in a given field. If we can achieve that with Canada and Korea, I see no reason why it should not in principle be possible to achieve the same with the US.
We should bear in mind the fact that a free trade agreement is just the beginning of the process, not the end. Once agreed, TTIP would form the basis from which to negotiate specific market access issues, product by product. For example, the detail of specific sanitary requirements for poultry exports to the USA would be set out in an export health certificate, which would be negotiated only once discussions on equivalence had been concluded. The UK would be fully engaged in all stages of these European-led negotiations to ensure that UK exporters get the most favourable conditions possible in order to facilitate our exports. We should remember that exports are as important for our industry as they are for the US.
We should recognise that it is inevitable that different countries will take a different approach to ensuring food safety and animal welfare. The UK and wider EU farm industry takes a farm-to-fork approach to food safety, as the hon. Member for Brecon and Radnorshire pointed out, whereas the US approach has historically focused on the safety of the end product and taking safety measures closer to the point that food is consumed. Although such differences in approach are definitely relevant, they should not present an insurmountable obstacle to trade, which is why the principle of equivalence is important.
Ms Ritchie
Will the Minister indicate how the British Government intend to reconcile our much higher standards for poultry meat with the lower standards in the United States? That is the basic fear that we are expressing on behalf of Moy Park in Northern Ireland, the second largest poultry producer in the UK.
George Eustice
That is precisely what is going on in the detailed discussions to which I have referred. Many of the points the hon. Lady asks about would be resolved when export health certificates were agreed, and those certificates sometimes include a recognition of animal welfare considerations. Such details will be teased out in the negotiations, but I would say to the hon. Lady that we already import quite a lot of food from the US—from confectionary to cereals—and it is already required to meet EU standards. Such food is not necessarily produced directly in compliance with EU regulations, but through negotiation it has been deemed to meet EU standards. TTIP would apply a similar principle.
We certainly do not want a trade deal that undermines the current good farming practices in the UK sector, which are a hallmark of our poultry industry. I can reassure the hon. Member for Brecon and Radnorshire that EU negotiators have consistently stated that we will uphold the EU’s food safety standards throughout the TTIP discussions.
Roger Williams
I thank the Minister for that assurance, but one criticism of the TTIP negotiations is that they are rather opaque. Would it not be better if the assurance that he has given could be made more openly, thereby giving the industry more confidence?
George Eustice
I will come on to the EU negotiating mandate in a moment.
Although our approaches differ from those of the US, there are also opportunities, particularly when it comes to welfare. TTIP presents an opportunity for us to work with the US to improve co-operation on animal welfare and promote international standards. If we take an optimistic approach, there is the possibility of leading calls for an improvement in animal welfare practices in the US, perhaps as the quid pro quo for access to the EU market. We should not lose sight of that opportunity.
We also continue to support the European Commission to ensure that high welfare standards are a requirement of the trade agreement, and we continue to work through international bodies such as OIE—the World Organisation for Animal Health—both to raise standards and to ensure that signatory countries fully implement the decisions reached.
Returning to the point I raised about the negotiating mandate, it is important to recognise in respect of the transparency for which the hon. Gentleman argues that the EU’s negotiating mandate is publicly available online and sets out the key principles for animal and plant health in the TTIP negotiations. I would encourage any hon. Member who feels that these are too opaque to look at that mandate, which, for instance, highlights key areas for further co-operation, including using international standards, having a science-based approach to risk assessment and tackling animal welfare. Both food standards and animal welfare considerations are hard-wired into the EU negotiating mandate. The EC has made it clear in all its pronouncements that it considers it to be important, and it has not lost sight of that importance.
In conclusion, I believe that the UK poultry industry can remain resilient in an increasingly competitive global industry. For their part, the Government will continue to support the industry by opening new markets and promoting competitiveness. For example, we are investing £160 million in the UK agri-tech strategy to help take innovations from the laboratory to the farm. That strategy is already investing in two projects in the poultry sector—one on a more humane way of killing poultry and the other on creating a bank of genetic information on broilers and using that information to aid future breeding programmes. We are also reducing the regulatory burden on industry through implementing a risk-based approach to inspections. I believe that our excellent track record on animal welfare, traceability and production standards will continue to provide opportunities for British products in foreign markets. The British poultry industry has been very successful at exporting.
Jim Shannon
The Minister talks about the efforts made on the mainland here in the United Kingdom, and we are very grateful for that, but I wonder whether information on advances made in the industry here are exchanged with the devolved Administrations—the Northern Ireland Assembly, the Scottish Parliament and the Welsh Assembly—so that our industry in Northern Ireland does not lose out.
George Eustice
Yes, the agri-tech strategy is a UK one, and we work with research establishments throughout the UK. Much of the information that comes out of the agri-tech strategy is made available.
It is also important that we continue to work together to ensure that high industry standards and quality of produce are maintained and demonstrated to our trading partners to facilitate further growth in exports. As I said, the UK poultry industry has been successful in that regard. Opening new markets is a long and complex process, but we are determined to support the poultry industry to capitalise on global export opportunities. We should not lose sight of the fact that free trade is a two-way street, as the hon. Member for Brecon and Radnorshire pointed out. On the whole, a more open and efficient transatlantic trade environment presents major opportunities for UK food and drink producers, and will also deliver real benefits for consumers.
I understand the concerns that the hon. Member for Brecon and Radnorshire and others have highlighted in the debate, but I believe that there are benefits to the UK economy and to the UK food industry in concluding a TTIP deal. I believe that the sanitary and phytosanitary issues raised can be accommodated in such an agreement.
Question put and agreed to.