European Union (Withdrawal Agreement) Bill

Debate between Mark Garnier and Geraint Davies

Committee stage & Committee: 2nd sitting: House of Commons & Committee: 2nd sitting
Wednesday 8th January 2020 Commons Chamber

[Geraint Davies]

I am grateful for your guidance.

I guess the point is that sovereignty is about our ability to make laws here without intimidation or interference, but that we could find ourselves outside the EU and no longer able, for example, to introduce a tax on sugar that would reduce the cost of obesity to the NHS. We could have a situation where we want to let people know that there are six teaspoonfuls of sugar in a Müller Light yoghurt and nine in a Coca-Cola, and we want to drive down sugar content in order to drive down diabetes and health costs. Instead, we could be fined because the projection of a manufacturer of a sugar-impregnated product was less than that. That is not sovereignty. If we cannot protect our environment, our public health and our trade because we will be under the cosh with these companies suing us through the arbitration panels, that is not sovereignty. This clause should therefore be struck out, because it is completely misleading.

[Mark Garnier (Wyre Forest) (Con)]

I actually agree with an awful lot of what the hon. Gentleman has said in terms of the construction of his argument, but his conclusions are hypothesised on a trade deal that is yet to be done. The important point about all this is that we have sovereignty over deciding what goes into the trade deal. If we do not want to put stuff into a trade deal, it does not matter what the investment courts say. They can only adjudicate on that which is in a trade deal, and what will go into a trade deal will be decided by this sovereign Parliament. That is where his conclusion is completely wrong. He was putting forward quite a strong argument to start with, and I do agree with it, but his conclusions are completely wrong given the sovereignty of this Parliament.

[Geraint Davies]

I am grateful to the hon. Gentleman for that intervention. If there has been any lack of clarity let me make it clear that I am saying that we are in the EU at the moment and obviously do lots of trade with the EU—44% of it—and we do quite a lot of trade through the EU indirectly with America and elsewhere, so we are in a reasonable position. If we come out of the EU and suddenly find that we need to make up for lost trade, we will be under a lot of pressure to do a deal quickly with the US. We will also be in a much weaker position, because we will be standing alone.

The US is a big player and knows it, so it will try to get what it wants, as has been pointed out on sugar, fracking and other examples. What is more, it has ISDS powers as part of its normal bilateral trading agreements, and that is already recorded in trading relations. The idea suggested by the hon. Member for Wyre Forest (Mark Garnier), which I respect, is that we could in theory say, “No, we don’t want this. We won’t go ahead with that.” but there would be a huge economic cost. There would also be enormous pressure, while doing all these other trade deals, to agree.

The assumption is that we could just carry on as before with all the other bilateral trading agreements with small countries such as Chile. If you were Chile, Sir Gary, you would think, “Hold on. Instead of negotiating with the big EU, I’m now negotiating with a relatively smaller UK, so I want a better deal.” Therefore, our sovereignty, in terms of our power to deliver what our electorate wants, is reduced. Our sovereignty has therefore been intrinsically undermined, rather than enhanced, which is contrary to what is being spun out here.