Trade Bill

Debate between Lord Judd and Baroness Bowles of Berkhamsted

Committee stage
Tuesday 13th October 2020 Lords Chamber

[Lord Judd (Lab) [V]]

My Lords, this is an important amendment. On matters of the environment, there has been a lot of rhetoric and aspirational thought. There are international agreements to which we are, I hope, firmly signed up. However, the point about moving forward on the environment is that we need muscle. We should be talking far more about how our trade policy can assist in fulfilling our obligations under existing environmental policy. It is too easy to begin a process of erosion whereby, for reasons of rationalisation or whatever, we begin to backslide. The amendment is a step towards ensuring that that cannot happen.

Part of our obligation in environmental policy is to ensure that the burdens that fall and the challenges that come to third-world countries are given pride of place. For that reason, we must regard fulfilling our obligations towards third-world countries as very much part of fulfilling our environmental obligations. I thank the noble Baroness, Lady Hayman, for having introduced this amendment and it will certainly have my support.

[Baroness Bowles of Berkhamsted (LD) [V]]

My Lords, I apologise for being a late newcomer to Trade Bill proceedings, but other Bills and committees have conspired against my taking part thus far. I want to speak in favour of both these amendments and to explain Amendment 83A, in the name of my noble friend Lady Kramer and to which my name is added in the latest Marshalled List.

Whereas Amendment 77 relates to TRA advice, Amendment 83A relates to the economic interest test used as part of determining the final level of trade remedy measures. In the test, there is analysis of a range of socioeconomic matters in order to conclude whether the application of a trade remedy that is otherwise justified by virtue of dumping, subsidy or a surge in imports and that is causing harm to UK industry is also in the UK’s overall interest. Although the test broadly follows the EU’s Union interest test, as commented in the Brick Court Chambers blog on 24 September, it

“has the potential to play a strengthened and more prominent role than has been the case to date with the EU”.

I would add that, perhaps obviously, it can be more granular when applied to an individual country.

Under the economic interest test, the remedy can be diminished or set aside if stakeholder interests harmed by the remedy disproportionately outweigh those of the industry harmed, along with its related stakeholder effects. Amendment 83A requires that environmental obligations be part of that analysis. It is a probing amendment, not least because it would need to be put into Schedule 5, as well as Schedule 4, to the Taxation (Cross-border Trade) Act in order to cover safeguarding measures as well, but I am sure that noble Lords understand the point.

Paragraph 25 of Schedule 4 to that Act lists the things that must be taken into account in the economic interest test. These are: industry, consumers, geographic areas, particular groups, the competitive environment and the structure of markets. Although there is a sweep-up provision enabling the TRA to consider anything that it considers relevant, the environment, with its unique importance—one could say for the future of everything—should surely have a place among the compulsory considerations.

By way of example, I recall discussions some time ago about solar panels and whether it is better to have cheap ones that everyone can afford, and hence greater deployment, or to have ones that protect an industry and jobs, and which will last better for the longer term, especially if the domestic industry goes. Added to that is the question of how you take account of carbon-dumping in the manufacture. Such socioeconomic wrangles are no simple matter, and there might not always be an environmental angle, but if this kind of weighing-up is to be done then environmental aspects should be in the mandatory checklist.