The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)
My Lords, I thank the noble Baroness, Lady Coussins, for tabling this important debate and for her continued interest in the region. She made a very compelling speech. I thank all noble Lords for their insightful contributions.
This is a timely debate. While some countries are, happily, starting to see a return to a more normal life, Latin America is the region hardest hit by the pandemic. The effect has been devastating. While home to just under one-tenth of the world’s population, Latin America accounts for nearly one-third of all reported Covid-19 deaths and one-fifth of confirmed cases. Covid-19 has increased poverty, plunged the region into recession and set back economic growth by a decade in some countries. That, in turn, impacts the region’s health and education systems and, worryingly, it also increases reticence about the climate change commitments that much of the world is signing up to.
The noble Baroness, Lady Coussins, focused particularly on the process of recovery. The UK is playing its part to help the region recover. In answer to her question, we are championing access to vaccines through COVAX and encouraging scientific exchange in areas such as genome sequencing. We are mobilising climate finance at COP 26 and pursuing trade agreements so that our shared future can flourish.
Latin America is an important partner for the UK’s global ambitions. From climate change and nature, economics and trade, democracy and human rights, we work with the region on countless priorities set out in the integrated review. With many countries aligned with UK values, three members of the G20 and Mexico, currently a non-permanent member of the UN Security Council—Brazil will join in January—we have strong strategic allies right across Latin America.
The Foreign Secretary visited Mexico in the first week of her new role. She held discussions to strengthen our trading relationship, deepen our economic partnership and tackle climate change together, in support of our shared values.
I have recently returned from a trip to Peru and Colombia, where I saw for myself the devastating impact of Covid in the region. The pandemic has plunged Latin America into an economic recession. Regional GDP fell last year by 7% and predicted growth is below what we would expect from emerging economies. In two decades, before the start of the pandemic, the number of people living in poverty in the region had fallen by nearly half, but Covid has driven a significant reversal of that progress. By the end of last year, 78 million people were estimated to be living in extreme poverty in the countries of Latin America—an increase of 8 million people since the pandemic began.
Where inequalities existed before, the pandemic has cut the deepest. An increase in unemployment in the region has hit the most vulnerable the hardest, including women, young workers and migrants. It has worsened the plight of many of the nearly 6 million refugees and migrants who have fled the Maduro regime in Venezuela. The majority have sought safe haven in neighbouring countries where, notwithstanding the welcome that they have been given, many go hungry. Mandatory school closures have lasted longer than in any other region of the world. Around 100 million students in Latin America have been affected. Some, especially the most vulnerable, may never make up this loss in education. The World Bank estimates that this could cost the region $1.7 trillion in lost future income.
Many countries were ill-prepared for virtual education, and a lack of access to the internet for many, especially those in rural areas, widened the gap even more between those from the poorest households and the most fortunate. Health systems are being pushed to their limits. In Mexico and Colombia, the recent third wave put pressure on hospitals that were already exhausted from the last 18 months. In Peru, which as we have heard has suffered the worst cumulative per capita death rate globally, the pandemic has pushed the healthcare system to breaking point.
The only way that the world is going to bring this pandemic under control is through widespread immunisation, using all available safe and effective vaccines, and the UK is playing its part. We are at the forefront of the international response to Covid-19, through our commitments to COVAX, Gavi and the World Health Organization. The UK’s early support of the AstraZeneca vaccine has been instrumental, and that vaccine is now produced locally in Mexico, Argentina and Brazil. The three countries are expected to produce around 250 million doses for the region this year.
Two-thirds of the population of Latin America have now received their first dose of the vaccine, up from just a fifth two months ago. In some countries the effects of the vaccine are beginning to bring cases down, and the overall picture in the region is finally improving. I was delighted that a fortnight ago we were able to move most Latin and Caribbean countries off our coronavirus list. However, some countries remain vulnerable to further waves of Covid-19, and those with low vaccination rates are particularly vulnerable.
In response to a question raised by the noble Baroness, Lady Coussins, all Latin American countries that are no longer on the red list, apart from Brazil and Chile, are awaiting verification of their vaccine certification. Until international standards are agreed globally, we will review each country’s certificate to ensure that it meets our minimum data requirements. She also asked about accelerating patents, as in the case of the AIDS retrovirals. I am afraid that I cannot give her an answer. The question is best directed to the Department of Health, and I will convey it to the department and will respond as soon as I can.
This is one of the reasons why we will continue to share our learning from the UK rollout with partners in the region and, most importantly, work together to control new variants. In Brazil, for example, we are doing this with a new variant assessment platform, working in partnership with the Brazilian Government to ensure that UK expertise helps to boost genomic sequencing capability in the country. We hope to work with more countries in the region to support this work and strengthen sequencing capability, so that we all have a better understanding of the variants as they arise.
The recent changes to the red list demonstrate that the UK is taking a scientific, country-by-country approach to these decisions. I recognise the real personal and economic impact for many people living in red list countries—a point made well by my noble friend Lady Hooper—who want to travel, who depend on the tourism industry for their livelihoods, who are businesspeople, students and more. The decision to keep countries on the red list, or to move them off it, is one that affects us far more widely: not just in our trade and prosperity partnerships but in our ability to deliver an in-person and inclusive COP 26 next month. We want to work alongside important partners, many of them in Latin America—Brazil, Mexico and Colombia—while also ensuring the safety and security of all participants.
As the scientific picture changes, we will continue to keep the list under regular review, but our priority must be to protect the health of the UK public. We will do that by continuing to take full account of scientific evidence, while balancing the advantages and risks of reopening our borders.
In the meantime, we are working with partners in the Latin American region to help them recover and rebuild. The UK is not only supporting vaccine supply but has been working with countries such as Brazil and Mexico to strengthen their health systems through the UK’s Better Health programme. I saw for myself in Peru how UK companies’ expertise is supporting the country to rebuild schools, hospitals and river defences after the devastating effects of flooding caused by El Niño four years ago.
Even through the pandemic, the UK has been working with countries across the region to help them to become more resilient and adapt to these extreme weather events. Through the UK PACT Green Recovery Challenge Fund, for example, the UK has funded projects in Brazil, Peru and Argentina, supporting greening financial systems and nature-based solutions. That includes deforestation-free cattle ranching in Peru, promoting green finance for sustainable development in Argentina and building climate risk assessment into the credit operations of Brazilian development banks.
Lord Goldsmith of Richmond Park (Con)
I hope I was about to answer the noble Lord’s point about our support for Peru—a point that he made well. In 2020—last year—the UK signed a second Government-to-Government agreement with Peru to support the delivery of what we estimate will be a £1.6 billion infrastructure programme to rebuild schools and hospitals in the northern regions affected by El Niño-related flooding and landslides in 2017. UK businesses are already providing technical assistance while transferring the required knowledge to Peruvian experts so they can develop similar projects in future. This is an example—I do not pretend to be an expert but I did witness much of this—of the UK using its skills and relatively small sums of finance to leverage far greater support for that country. If the noble Lord does not mind, I will come to a broader point about future support for Peru in just a few moments, and I will combine that with an answer to the noble Baroness as well.
Ahead of COP next month, we have especially encouraged ambitious climate commitments. Latin America suffers the severe weather effects of climate change just as surely as its rainforests hold so many of the solutions. The region must therefore make its voice heard at COP 26 in support of ambitious climate targets.
I think it was the noble Baroness, Lady Coussins, who mentioned Costa Rica. It may not have been, in which case I apologise for not having made a note of who made that comment. Whoever it was, I strongly agree with them. I apologise; it was my noble friend Lady Hooper. She is absolutely right: Costa Rica provides an example for the world. It has managed to incorporate concern for and a focus on the environment with economic growth. It managed to double its canopy in just over a generation and has grown its economy at the same time. It has gone from pretty low in the league table to being pretty high in the region, and I do not think that is a coincidence.
Colombia, which I recently visited, is also showing extraordinary leadership on both climate change and the environment, not only in addressing, halting and reversing forest loss in the Amazon but in combining those efforts with attempts to strengthen the peace process that began just a few years ago. Again, I saw examples—
Viscount Waverley (CB)
The Minister spoke about the need to approve a certificate from Colombia. Is he able to say whether the UK does that in isolation from others around the world, or is it that we are part and parcel of a global approach in approving, for example, the certificate specifically from Colombia?
Lord Goldsmith of Richmond Park (Con)
I thank the noble Viscount for his question. I hope I am not wrong in saying that the UK has now recognised the vaccine certificates for Colombia; that has happened. Colombia remains on the red list, but this means that when it comes off that list, it ought to be a relatively smooth transition. I hope I will not have to correct the record on that, but I do not think I will.
I was amazed by some of the projects that are happening in Colombia, which combine efforts to raise living standards and reinforce the peace process by involving those people who are very much involved in conflict in this global endeavour to restore and protect nature, and which are doing so in an extraordinarily successful way. I really hope we will be able to step up our efforts in that region and beyond in support of a series of truly world-leading initiatives.
Increasing trade in the region is also essential to overcome the unprecedented economic challenges caused by the pandemic. Opening up markets, unlocking business opportunities and sharing British business expertise will benefit both the region and of course the UK. The UK has negotiated continuity trade agreements in the region with Peru, Colombia, Ecuador, Mexico and the countries of Central America.
In Mexico, we will soon be starting negotiations on a new ambitious free trade agreement to support jobs, opportunities and prosperity right across the UK in industries that will shape the future of the global economy and secure better access for British goods and services. Our ambition to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership is also important for UK interests in the region.
The UK is acutely aware of the devastating impacts that the pandemic has had on the lives of many individuals and the economies of countries across Latin America. It has widened inequalities and pushed back—
Lord Purvis of Tweed (LD)
I know the Minister is running out of time, but he did say he was going to address this, so I would be happy if he will write to me with the forward ODA plans. However, I would be very happy if he would say, on the record, at the Dispatch Box, that the unattributed briefing to the Financial Times that Latin America is now lower down on the Foreign Secretary’s priorities is wrong. If he can say that, I would be very happy.
Lord Goldsmith of Richmond Park (Con)
I thank the noble Lord for his intervention. The rule is that we do not respond to leaks of that sort—actually, I do not know the leak he is referring to—but I can tell him that it is a priority of mine as a Minister in the Foreign Office and someone with a particular concern for climate change and the environment that we ramp up our support for those initiatives that I just described, not just in Colombia but beyond. I can only say that I sincerely hope that the briefing is wrong—I believe it is wrong and I think it would be wrong, in fact, were that to be the case. It was a point I was going to make to the noble Baroness, Lady Coussins, in terms of our involvement and our offer for Colombia, Peru and the wider Amazon region.
I will briefly address a couple of points. I say to the noble Lord, Lord Loomba, that we are doing what we can to integrate our diplomacy and our development programmes to deliver a much bigger and better impact. I make my final point to the noble Baroness, Lady Blower. Of course, we are appalled by the reports of human rights violations and the deaths of environmental defenders in Colombia and elsewhere.
Lord Goldsmith of Richmond Park
And trade unionists, of course. While these are the result of criminality within that country—a legacy, perhaps, of some of the difficulties that are beginning to subside, but nevertheless have really wracked Colombia for some time—these are not the consequences of malignant action by government. I raised this issue when I spoke to President Duque a week or so ago and it was very clear to me that he and his Government are doing what they can to get to grips with the issues that the noble Baroness raised so well. Although it is not entirely clear how we can help, certainly the offer from the UK is on the table to provide what support we can to enable the Government to get to grips with the problem, which is clearly tragic on so many levels. My colleagues and I raise these issues on a regular basis, but I believe that by supporting some of the initiatives that I hinted at earlier, albeit briefly, we have an opportunity in the UK to provide very meaningful support to the Government of Colombia in strengthening and extending and making that peace process endure.
On that note, I thank noble Lords for their contributions—
Baroness Coussins (CB)
Before the noble Lord sits down, will he undertake to write to me with answers to the few questions I asked that he has not been able to cover in his reply?
Lord Goldsmith of Richmond Park
I do apologise: I thought I had left this debate with a clean sheet, but I clearly have not, so I undertake to scan the record tomorrow and to respond to any questions from the noble Baroness that remain unanswered. I pay tribute to her for her speech, for initiating this debate and for her work in the region.
The Deputy Speaker (Lord McNicol of West Kilbride) (Lab)
My Lords, that concludes the Question for Short Debate business.