Trade Bill

Baroness McIntosh of Pickering Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Thursday 1st October 2020 Grand Committee

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I am pleased to support Amendment 14 in the name of the noble Lord, Lord Stevenson of Balmacara, for the reasons set out by the noble Lord, Lord Grantchester. Subject to what my noble friend the Minister might say in his reply, it appears that the powers set out here go far wider than necessary to obtain the objective of the Bill in negotiating trade agreements.

I will focus my remarks on Amendment 69 in my name and thank the noble Baroness, Lady Brown of Cambridge, for her support. It reflects the commitment set out in our manifesto to maintain our high standards. I am mindful of the fact that the World Trade Organization would permit us, not just to maintain our own high standards, but to ensure that we can aim to protect the environment in trade-related measures, subject to certain specified conditions. This is, therefore, a probing amendment to ask my noble friend whether, in the course of international trade negotiations, particularly new ones with the US and other countries with which we hope to negotiate free trade agreements, the Government intend to push the boundaries of standards by going one step further and asking these countries to meet out high standards. The idea is not just to ensure that we are meeting our current high standards but to insist that other countries do as well.

The amendment sets out a framework for achieving that through each House of Parliament approving a Motion. The benchmark would be the minimum standards for environmental protections, food safety and animal welfare for the goods imported through the relevant trade agreements. I hope that my noble friend will be minded to support this. I entirely support what the Government say about continuing to uphold our high standards and I support the general thrust of this group of amendments, as set out in Amendment 12 and Amendment 73 in the name of the noble Baroness, Lady Jones. I hope that, through Amendment 69, climate change and environmental standards will form a close part of international trade agreements. We should not wait for the next COP. We should use the opportunity of each free trade agreement we are negotiating to push the boundaries of environmental protection.

[Baroness Boycott (CB) [V]]

My Lords, it is a great pleasure to follow the noble Baroness, Lady McIntosh. She always speaks a lot of sense and I thoroughly agree with her. I am delighted to support Amendment 40 in the name of the noble Lords, Lord Oates, Lord Duncan of Springbank and Lord Browne of Ladyton. I also add my support to Amendment 14 in the name of the noble Lord, Lord Grantchester.

As other noble Lords have said, we are at a crossroads for the environment, climate change and biodiversity. Last week, I listened to Christiana Figueres spelling out the real and present danger that we are in. She says that we have just 10 years to cut our emissions by 50% if we are to get to the net zero target by 2050. This is not a dress rehearsal; it is real life. Amendments that bind into law trade standards that protect our planet, curb emissions, encourage biodiversity and, at the same time, promote human health are quite simple on one level. They are also totally necessary. If the Government want us to believe that they are serious about what they say is their desire to meet the Paris targets, why on earth are these amendments not at the heart of the Bill, rather than being peripheral or just according to what someone says?

Trade is one of the most powerful levers that we have in the world. Business is already ahead of the Government. For instance, Coller Capital has been running a risk register for several years now and will not invest in countries or companies that depend on businesses which damage the environment or products which, in some way or another, will cause or be affected by climate change. In her excellent speech, the noble Baroness, Lady Hayman, said that the Aldersgate Group has set ambitious targets. It knows that if we are to be competitive in future, we have to raise our game. The CBI has also recommended that the UK’s export strategy must be augmented by a green trade focus ahead of COP 26. It even suggests that we should introduce accelerated tariff reductions in the FTAs for multilateral agreement partner countries which meet, or, indeed surpass, their Paris Agreement targets. The Government’s own proposal for its net zero review says that business is calling out for a “clear roadmap”.

We could also start to lower tariffs on low-carbon goods and services like New Zealand does. Its Agreement on Climate Change, Trade and Sustainability—which was signed into law by New Zealand, Costa Rica, Fiji, Iceland and Norway—aims to remove tariffs on goods and services that protect the planet, eliminate harmful fossil fuel subsidies and develop clear eco-labelling. It says:

“Globally, countries are subsidising fossil fuel production… to the tune of over $500 billion US dollars a year.”


I ask the Minister whether he knows why and what we are doing about that. I also ask the Government whether we are considering seeking membership of that particular agreement or, indeed, trying to do something similar ourselves.

SIAs are not complicated; there is a growing demand for forest and agricultural commodities that drives greenhouse gas emissions and has negative effects on biodiversity overseas, and our current legislation does not require this to be monitored. Does not the Minister agree that this is an absurd situation? We cannot export our emissions overseas any more than we can export cruelty by allowing the import of animal products that have been reared in conditions that we would not agree with. At the moment, we do not know what damage we are doing to nature and the environment through trade because, as the WWF said in a recent report, we are importing from nations that are high risk. If we are in the dark, how is the consumer going to know what they are buying?

Finally, I think noble Lords would be surprised if I did not turn to the question of public health. What is the UK to do if we do not include amendments such as this? We are about to enter uncharted territory; we are leaving a very big bloc and rapidly trying to secure new trade deals with every other country. Of course there will be changes; there might be some opportunities in terms of good standards; but there are also risks.

Since the dawn of time, we have known that what we eat is the backbone of our health, and here are just three ways—there are many more—in which free trade deals without standards could increase ill health and obesity. For instance, I cite the increase in the availability of products that are high in fats, sugars and salts and backed by huge advertising spends. The other day, I spoke about Tim Tams. I said that they were American; they are in fact an Australian version of our Penguins. Some 91% of households in Britain already buy Penguins, but Tim Tams are going to be cheaper and heavily marketed and, sadly, the Prime Minister himself was spotted waving a packet around when he recently made the case for a free trade deal with Australia. We do not need more chocolate bars.

Secondly, if our farmers and producers are undercut by cheaper imports from overseas because overseas farmers have lower standards, our farming will erode over time. We will import more and more and it will become more processed, because that is what happens when food has to travel over long distances and last for a long time.

Finally, as we all know, the USA is very aggressive in its trade negotiations, demanding that there be no labelling or HFSS advertising restrictions. If we give in there, then, quite honestly, all the progress we have made around public health and, indeed, our environmental efforts will be for naught. The good thing is that if we protect the environment, we also protect the health of all of us. I urge noble Lords to support these amendments.

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[The Deputy Chairman of Committees (Baroness Barker) (LD)]

I have received a request to speak after the Minister from the noble Baroness, Lady McIntosh of Pickering.

[Baroness McIntosh of Pickering (Con) [V]]

I am grateful to my noble friend Lord Younger for explaining in some detail the negotiating mandate we have agreed with the US. Could he confirm that this extends to animal welfare, as well as environmental protection standards, which is the subject of Amendment 69?

I was a little confused when my noble friend Lady Noakes talked about tomatoes. I had not talked about tomatoes, but there we are. The Minister referred to “unintended consequences”, which I am loath to envisage, and specifically to tea, cocoa and bananas. I understand that they are largely covered by fair trade provisions for marketing in the UK. Is that indeed the case?

[Viscount Younger of Leckie (Con)]

I thank my noble friend for that. I am not sure that I can be drawn to talk about tomatoes. The best thing I could do, particularly for the points on the US, is to write to her with a full answer on animal welfare, which I could attempt, but also on tea, cocoa, bananas and the fair trade question.

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This amendment is an example of a law that reflects the UK’s very particular circumstances and the special status of the National Health Service in the United Kingdom’s economy and social economy. Accepting it is a way of gaining the confidence of the country that such agreements are not selling off the NHS bit by bit. It is also one of the issues that the Government will need to work very hard at responding to when we get to Report on the Bill.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I have some sympathy with this group of amendments, and Amendment 51 in particular. I will make a very brief contribution. In summing up the last debate, my noble friend Lord Younger very helpfully shared with us the negotiating mandate the Government have achieved with the United States in particular. I think it would put our minds at rest if, in summing up this small group of amendments, my noble friend could repeat the contents of that negotiating mandate, particularly as regards any possible negotiating mandate as regards the health service. I know we have had repeated assurances that that is the case, but I think it would be very helpful to know what actually is covered in the negotiating mandate and whether there is any window at all for an aggressive approach to be made by the United States in this regard.

[Baroness Finlay of Llandaff (CB) [V]]

My Lords, the noble Baroness, Lady Thornton, and my noble friend Lord Patel have very eloquently spoken to these amendments. They are incredibly important, and I strongly support them. We have to protect the NHS and publicly funded healthcare services across the UK from any control from outside the UK. To do otherwise would cost us dearly and would, in the end, prevent us looking after our own, because we would be told what to do from outside.

As the noble Baroness, Lady Thornton, has shown, all aspects of the NHS and social care must be protected from trade agreements at every level. We need to maintain the option of reversing the privatisation which has already occurred, if that is what we decide to do in the future, and we must be free to create collaborative health and social care. Trade agreements must not drive us into some kind of locked-in increased privatisation of the NHS or, indeed, force any such change in the devolved nations. The health and social care sectors must be excluded from the scope of all future trade agreements, otherwise we will find that the NHS is irretrievably undermined.

On maintaining quality, we are world leaders in pharmaceutical research and development, yet access does not always match innovation. The Association of the British Pharmaceutical Industry has pointed out that in the first year of a new medicine being launched, only one-fifth of eligible patients in the UK get access compared to those in France and Germany. Our ability to regulate and maintain the quality and safety of medicines and medical devices must not be undermined by some small sub-paragraph in a trade agreement that slips by almost unnoticed.

In addition, medicines and medical devices must remain affordable in the UK. The Royal Pharmaceutical Society highlighted the huge extra cost to the NHS after Essential Pharma disclosed plans to cease production of Priadel, its cheapest lithium carbonate product, due to restrictions on permitted pricing. The suggested alternatives for bipolar disorder owned by the same company can cost at least 10 times as much.

So this is not only about who runs the NHS today. As the noble Lord, Lord Patel, said, our NHS databases are extremely valuable. They are a resource for our future research and development and, from that, for our future economic development. If we lose them through a trade agreement, we will irretrievably damage our future economic development.

I now turn briefly to Amendment 75, which ensures that the Government can uphold the right of citizens to access medicines under the International Covenant on Economic, Social and Cultural Rights, as part of the right to the highest attainable standard of healthcare. Modern free trade agreements are used increasingly as vehicles to further pharmaceutical industry interests ahead of public health needs. They increasingly include clauses on intellectual property, pharmaceutical regulatory processes and investor-state dispute settlement mechanisms that affect price and decrease access to medicines. To secure affordable access to medicines, the Government must be able to grant compulsory licences, deal with exhausted intellectual property rights, strengthen patentability criteria and determine what constitutes a national emergency, as laid out in subsection (3) of the proposed new clause. The Covid pandemic has shown why we must always be able to make technologies available quickly, widely and at the lowest cost. As the noble Lord, Lord Fox, pointed out, generics are not always cheaper in a complex market that can easily be manipulated.

Our NHS database is extremely valuable, and its value is increasing. It cannot be thrown away. There are times when short-term industry profits are not good for patients and delay access to affordable medicines and health technologies. These amendments aim to secure our healthcare for the future. I agree with the noble Lord, Lord Fox, that informed patient consent requires a patient to know whether data is held, what it is used for and how it can be manipulated, even when it is anonymised. They would rightly be outraged if that data is allowed to put profits in the pockets of other countries, knowing that it will never be ploughed back into the NHS—certainly not at 100%.