Transatlantic Trade and Investment Partnership

Debate between Jim Shannon and Jonathan Edwards

Thursday 10th December 2015 Commons Chamber

[Jonathan Edwards]

I have not read that report, but I take the hon. Lady’s word for it.

The estimates overstate the gains, and alignment of regulatory standards in areas such as consumer safety, environmental protection, procurement and public health could have substantial social costs. Wales’s existing trade with north America has grown rapidly over the past decade and a half as a share of our overall exports, without TTIP in place. Of course, a trade deal could help to grow that even further, but that should not happen at any social cost, and certainly not at the risk of further hollowing out Wales’s industrial base. Any trade deal that does go ahead should definitely not be a large corporation closed shop in relation to trading across the Atlantic, as TTIP most definitely appears to be at present. Some 99% of Welsh companies are SMEs, making up the backbone of the Welsh economy. In any trade deal they deserve as much of a look-in as the big companies.

Alongside the potential for the default privatisation of public services such as health, the most controversial element of TTIP so far has been the ISDS provisions, which would allow investors to bring proceedings against Governments who are party to the treaty. The proceedings would be heard in tribunals outside the domestic legal system, meaning that Governments might determine policy with an overriding fear of being sued by corporations—a point made earlier. I said the last time I spoke on TTIP, and I will say again, that the US and the EU already have advanced legal systems. Neither is a banana republic, and corporations should abide by the same well-functioning legal system as the rest of society.

Throughout Europe, including here in Wales and the UK, Governments have been listening, and the UK Government and the European Commission have sought to allay concerns via a new proposal for an investment court system, published only last month. It appears, though, that they are only changing the name. My original point is relevant and remains valid. We already have a highly advanced court system in existence in all the places within the reach of the proposed trade agreement. The proposals for any alternative shadow legal system should be dropped immediately. Not to do so is an affront to democracy.

Given that public services are devolved, the devolved legislatures and Governments of the UK should have a veto over TTIP.

[Jim Shannon (Strangford) (DUP)]

I want to put on record how TTIP could affect NHS contracts. We in the Democratic Unionist party are totally opposed to it for that reason. We also oppose ISDS. As health is a devolved matter, we want to put it on record that it should be the regional Assemblies and Parliaments that make the decisions, and the Government should liaise closely with them. Does the hon. Gentleman agree?

[Jonathan Edwards]

I entirely agree with the hon. Gentleman. I am sure there will be some collaboration on the issue between Northern Ireland, Scotland and Wales in the near future. Those areas of public service delivery are the competencies of those Administrations. They might have a different agenda from the UK Government, and devolved Administrations should be fully consulted on and fully involved in any ratification of TTIP by the UK Government.

I am grateful to groups such as Global Justice Now and the Council of Canadians as well as Unison for bringing to my attention CETA, the comprehensive economic and trade agreement between the EU and Canada, often referred to as TTIP’s little brother. Although there is much public awareness of the TTIP negotiations, CETA is on the verge of being ratified but is not receiving the scrutiny or attention it deserves. CETA includes the most controversial part of TTIP, investor -state dispute settlement. Many US firms have Canadian subsidiaries, thereby allowing US firms to operate in the EU market. Public services are vulnerable because CETA locks in current levels of liberalisation, meaning that future Governments will find it extremely difficult to stop Canadian companies delivering public services in the EU. CETA is due to be fully ratified in mid-2016, and I urge the UK Government, the Welsh Government and the public to reject this deal unless the safeguards that I have outlined in relation to TTIP are put in place.

The public and politicians should also be aware of the Trans-Pacific Partnership, which is little known over here. Again, the criticisms of this proposed deal bear the hallmarks of TTIP and CETA—secrecy, and the fact that large corporations will exert undue influence over public policy through shadow legal systems.

In conclusion, I am still optimistic that a trade deal aimed at further reducing tariffs in order to secure a level playing field can be achieved, and I believe it would benefit Welsh exporters and our economy as a whole. Many of the environmental standards that the EU requires from its producers and manufacturers should not be compromised. They are already above and beyond those required in the US, placing us at an advantage without the potential social costs that would result from the proposals that are the areas of major concern. In order for any trade deal to have my support and that of Plaid Cymru and the wider public, it must unquestionably drop any proposals for a shadow corporate legal system and ensure that the EU’s existing environmental and social safeguards are maintained.