Transatlantic Trade and Investment Partnership

Debate between Lord Clarke of Nottingham and Julian Smith

Tuesday 25th February 2014 Commons Chamber

[Mr Clarke]

Let me make my point and go through the argument, and then I will give way. First, let us remember that trade deals do benefit consumers, which is why consumer groups such as Which? are in favour of this trade deal. It is protectionist providers that resist such deals. Quality, choice and the price for consumers are improved where there is a good trade deal, and those with the best products and services tend to win out in trade deals. The ISDS clause is not a novelty; it is not some new threat that has emerged. Such clauses have been put into most trade deals for years and years. I have heard the familiar examples of odd claims that have been made in actions around the world, but these clauses have not had the effect that has been described.

Apparently, there are 3,400 of these clauses inserted in trade deals globally. The EU and its members have 1,400 ISDS clauses in various trade deals, and the UK has 94 ISDS clauses in our existing bilateral treaties. We have twice been challenged under ISDS for standards alleged to break our treaty obligations, but so far no British Government have ever lost a case under ISDS. What we have done is successfully brought claims against other countries; we have had slightly more success there, because the point of an ISDS is to underline the value of the total agreement by making sure that no individual investor or business can be disadvantaged by a Government or union of Governments breaking the obligations they have entered into.

The case was cited of Slovenia—somebody, perhaps the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), said Slovakia—and my understanding is that it was lost when, as a result of local lobbying, that country went back on the deal it had just done to open up its health insurance market. That cannot be done, but no ISDS takes away the right to legislate from a Parliament; an ISDS gives rise only to a quicker and cheaper means of resolving disputes if there is some suggestion that a Government are breaking the agreement. Some say, “No European Union Government or the USA would ever do that”, but one of the big ambitions of those on this side of the Atlantic is to open up the public procurement market in the US. In some states of the US it is open, but in others it is not; some states do not measure up to WTO standards at all. Far be it from me to express the faintest doubts about the approach of politicians in some smaller US states or some EU states, but public procurement sometimes takes on a pork barrel element when the contracts are being placed, as opposed to when the tenders are being issued.

I think there could be some advantage, some reassurance and some pressure against people cheating in public procurement contracts if it is known that there is an ISDS clause. Of course it is quicker and cheaper, and it is arbitration and not litigation, but again the argument of those against ISDS is, “Why don’t you just go to law? There is a perfectly good legal system in the European countries and in the US.” I can say only that the US does have a perfectly good legal system, but it is expensive and it can be extremely long, as one sails through either the state courts or the federal courts trying to resolve a dispute. People have said that the advantages in all this agreement are as much in the area of regulatory coherence —with far more regulatory coherence stopping unnecessary convergence in our recognition of regulatory standards—than they are in tariffs, but small and medium-sized countries are not going to go into these markets if they are taking on the risk of having to go in for expensive litigation against American authorities that are plainly not complying with their terms of the treaty. Similarly, there are states in the EU where American investors would be most reluctant to sail in if they were relying entirely on the fact that they can take to the legal process in some southern European countries to challenge the bona fides of local officials over whether they were complying with the agreement. I will go no further, but the British have always put these clauses in our trade deals and the US normally puts them in its trade deals; 3,400 of them are in place and they have made a reality of free trade where it would otherwise not have happened.

[Julian Smith]

I welcome the fact that my right hon. and learned Friend is standing up for small and micro-businesses, which will really benefit from this ISDS vehicle. Is he, like me, surprised that the Labour party, while claiming to be pro-enterprise, is so against this measure?

[Mr Clarke]

Obviously, I understand the doubts being expressed, because some extremely respectable lobbies and non-governmental organisations—some consumer groups, some aid lobbies and some sections of the trade union movement—are raising all these fears. I genuinely think that they are mistaken and that their arguments, if they are too successful, will not benefit employees, consumers or anybody else, which is why I am trying to rebut them. Those who have spoken—I do not think anyone would be offended if I described them as somewhat of the left of the broad political spectrum, which does not mean that they are unacceptably or extremely left—are getting the wrong end of the stick. The ordinary man and woman have a great deal to benefit from this TTIP. To make it less effective by excluding an ISDS would not help.

Detainee Inquiry

Debate between Lord Clarke of Nottingham and Julian Smith

Thursday 19th December 2013 Commons Chamber

[Mr Clarke]

It is certainly important that the two are kept separate. I seem to recall that when the ISC was given its new status there was quite a bit of discussion about the extent to which privilege would apply to this particular parliamentary Committee, which is of course set up by statute, which is not usual for most of the others. I assume that the ISC can afford the full protection of privilege to the witnesses who are called before it, and that, again, ensures that they cannot suddenly find that this is all being held against them if they find themselves later, by any chance, in the unfortunate position of having to give evidence about the same facts again.

[Julian Smith (Skipton and Ripon) (Con)]

I understand that there were junior operatives on the front line who were raising these issues quite early on and whose concerns were ignored by the management of many of the agencies. Can my right hon. and learned Friend reassure the House that procedures are now in place for those who have information to be able to blow the whistle and for their concerns to be taken seriously?

[Mr Clarke]

I will not try to paraphrase the report, but that is one of the things it raises; there were about 40 occasions when our officers were raising queries about the treatment of detainees they were involved with and sometimes joining in the interrogation of. The question is: how were the queries handled? Not all of them appear to have been referred to Ministers, but these are the issues that are raised. This does underline that the agents involved were perfectly alert, and had the usual sensitivities, to the fact that the foreign officers with whom they were liaising were not necessarily following the same standards that we would wish. The thing I should emphasise, and should have emphasised more as I have gone through, is that this is what the consolidated guidance put out by the Prime Minister underlined when he put it out; it provided absolute clarity, for the first time, about how such concerns should be handled, and gave much better and clearer guidance to the officers themselves about what they should do if they are becoming concerned about the conditions in which detainees are being held.

Oral Answers to Questions

Debate between Lord Clarke of Nottingham and Julian Smith

Tuesday 19th October 2010 Commons Chamber

[Mr Clarke]

I am grateful to the hon. Gentleman; for some reason, I completely failed to get the full point of what was being said. I thought it was being suggested that there should be a different method for dealing with foreign arrests than for domestic arrests. I entirely agree with the point that has been made. We have already said we are going to readdress the law. The Leader of the House is sitting alongside me, and he tells me that legislation will be introduced in the House very soon.

[Julian Smith (Skipton and Ripon) (Con)]

T9. When can those opposed to the closure of Skipton court expect to hear a decision about it, and can the Minister reassure me that its unique rural case will be listened to carefully?