EU-US Trade and Investment Agreement

Baroness Primarolo Excerpts

Thursday 18th July 2013 Commons Chamber

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the right hon. Gentleman quotes President Obama, I would gently remind him that he has been speaking for 20 minutes and I will have to set a time limit on Back-Bench contributions in this debate, so I would be grateful if he began to bring his comments to a conclusion.

[John Healey]

Thank you, Madam Deputy Speaker; I will indeed. I think I have spoken for probably not quite 15 minutes, given the interventions I have taken, but I am conscious of what you have said.

When President Obama was with our Prime Minister in Washington in mid-May, he put it very delicately:

“I think the UK’s participation in the EU is an expression of its influence and its role in the world, as well as, obviously, a very important economic partnership.”

However, his officials were much blunter. They made it clear that there would be little appetite in Washington and no deal for Britain if it left the European Union. I have already said to the hon. Member for Harwich and North Essex (Mr Jenkin) that some of the research suggests that European countries that are not part of the European Union would lose out most in the event of such an agreement.

However, this agreement must be well regulated and command public confidence. It will not and cannot be a deal done in the diplomatic backrooms, because Congress and, now, the European Parliament must approve the terms of any agreement. The European Parliament has already shown its mettle in rejecting the anti-counterfeiting trade agreement that was recently negotiated, including with Japan, Australia, Canada and the US. Unanimity, and not just a qualified majority, may well be needed in the Council of Ministers to approve some parts of any future agreement in, say trade in services, intellectual property, foreign direct investment and anything to do with social, education or health services. There is also a case for expecting any agreement to involve mixed competences. In other words, there could be a contestable case that member states, rather than the European Parliament and the Council of Ministers, will have to ratify any elements of such an agreement dealing with, for instance, intellectual property, transport or investor-state dispute mechanisms.

Let me begin to wind up. There are four things that the Government could do to help to secure a successful, well negotiated agreement that commands wide support. First, they should swallow hard, accept that we are in the hands of the European Union and throw their weight behind the Commission’s negotiators. That means—I say this to the Minister—no public criticism, no freelance discussions with the US and no distancing ourselves from the deal while it is being negotiated.

Secondly, the Government should map and publish the jobs linked to foreign direct investment and exports in every area of Britain. The US does that on a state-by-state basis for every member of Congress and every Senator. Even the British embassy in Washington, together with the CBI, has produced a state-by-state analysis of the jobs there that are linked to exports to the UK. Surely we can do that for ourselves in Britain as well.

Thirdly, the Government should deal with the fears that will arise during negotiations that could derail public or parliamentary support for the agreement. These include concerns about the NHS being opened up to big US health care companies and concerns about employment, consumer or environmental standards being weakened. There might also be concerns about the investor-state dispute system—even though the EU and the US have long established traditions and well proven systems of due process, the rule of law and respect for property rights—particularly when an ISDS is being abused in the way that Veolia, the French company, is abusing the system in trying to sue the Egyptian Government for raising the national minimum wage.

Fourthly, the Government should make the process open and transparent to the public and Parliament. In the US and the European Parliament, the negotiators are holding briefing sessions—in the Parliament and with the Parliament—before and after each set of negotiations. They are also doing that with wider interest groups and making public some of the position papers as they go into the negotiations. I would like much more formal reporting and accountability of the UK Government to Parliament on EU matters. Other countries, such as Germany, Portugal and Denmark, have formal legal agreements with their Governments and Parliaments covering negotiation mandates, the provision of documents, and notification and reporting arrangements. It would help to build wider confidence in, and strong democratic influence on, our involvement in the European Union if we followed that sort of model. We can start on this European trade and investment agreement.

Today we are at the start of the negotiations on what could be a groundbreaking US-EU trade deal. We are at the start of the debates that this House will have and the scrutiny that we must offer of the Government’s contribution to those debates. This is the first such debate but—I hope and expect—certainly not the last.

[Several hon. Members]

rose—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Given the number of Members who wish to participate, the time limit will be seven minutes, but it might be necessary to review that as we progress through the debate.