UK-Australia Free Trade Agreement

Alyn Smith Excerpts

Wednesday 5th January 2022 Commons Chamber

[Anne-Marie Trevelyan]

I thank my hon. Friend, who is a former Minister in the Department, for all his work and for his continued passion and commitment in driving forward the UK’s opportunities to find these fantastic trade deals. He is now doing great work with Thailand, and it is interesting that we already have nearly £5 billion-worth of bilateral trade with Thailand. So many countries are knocking at the door saying, “We want to do more. We want to have better deals with you.” That is a really exciting and strong message. Now that we are on the global platform, those countries want to do that trade, because they know that we have the best businesses in the world and they want to have a close relationship with us. I think it is very exciting.

In answer to my hon. Friend’s question on parliamentary scrutiny, he is not wrong. It is a relatively complex journey that we are about to take with our first deal. We anticipate that there will be a period probably of several months before we lay everything before Parliament. We have asked the Trade and Agriculture Commission to crack on with its review, and once it reports back to me, I can submit the section 42 measure required by the legislation, and I hope that his Committee and the Committee in the other place will submit their own perspectives once they have had a chance to look through—I apologise for this, but in a way I do not—what is a very large tome of nearly 2,000 pages.

[Alyn Smith (Stirling) (SNP)]

A good new year to you, Madam Deputy Speaker, and to colleagues.

I, too, am grateful for sight of the statement by the Secretary of State. Trade deals are the ultimate curate’s egg—there are things to admire and things to dislike in all of them. There are things to admire in this deal. I am grateful for that, and I welcome such progress as has been made. In the European Parliament, I was in favour of ambitious trade deals, and often found myself voting against the deals that had been negotiated because I thought that they could go further on environmental standards, human rights and climate change. In this deal, there really is a missed opportunity on climate change. It could have gone an awful lot further with one of the key countries in the world in the fight against climate change, and the standards could have been an awful lot higher.

I am struck, as ever, by the capacity of Government Members to become giddy with excitement about the upsides and hypothetical benefits of Brexit while ignoring the real-world consequences in the cost and heartache of leaving the European Union—in Scotland’s case, very much against our will. In the best-case scenario, taking the Government’s figures at their best, this deal will increase UK GDP by 0.08% by 2035. That is not nothing—and I welcome it—but the Office for Budget Responsibility, by contrast, has calculated that we will lose a full 4% of GDP. We need to look at that in the round, and Members need to see the deal in context.

This is not the last time that we will discuss this issue, so I will limit my remarks to agriculture and future scrutiny. I quote Martin Kennedy, the president of the National Farmers Union of Scotland:

“The final deal…shows a complete dearth of proper consultation with farming and food sector interests across the UK. While we are not against free trade, this deal appears to be very one sided, with little to no advantage for Scottish farmers”.

I could not have said it better. If covid and Brexit have taught us anything it is that indigenous food production across these islands—indeed, across this continent—and short supply chains are vital to our national security and national resilience, however we define “national”. Anything that undermines that will be viewed with extreme scepticism by SNP Members.

On scrutiny, to what extent can anyone influence a deal that has already been signed? If the Trade and Agriculture Commission makes a recommendation against part of this deal, what happens? That is a genuine question. What input will there be for the Scottish Parliament, the Welsh Senedd and the Northern Ireland Assembly. If any of them says no to any part of the deal, what happens?

[Anne-Marie Trevelyan]

I am thrilled to hear that the hon. Gentleman is a supporter of ambitious trade deals, and I look forward to working closely with him in the months and years ahead as we continue to do many more. This is the first of many. It is an exciting, broad, liberalising trade deal for both parties, and I am disappointed that he thinks differently. Australia has for the first time ever agreed to an environmental chapter and made climate change commitments to embed in a treaty with us its commitment to the Paris agreement, which we all understand very clearly and which was reiterated at COP26 in Glasgow. The aim to keep 1.5 alive continues to be the commitment that the world makes. Australia has, as I have just said, made the commitment for the first time to a net zero strategy for its own nation. We should commend its effort to do that and its willingness to embed in a treaty with the UK—a world-leading nation when it comes to driving the environmental agenda—the fact that it wants to work closely with us to make sure that we make progress.

I am disappointed to hear about the views of a few in Scotland. I hope that as they have had the chance to read the document over the Christmas holidays, perhaps having a few days off for rest, because it is a weighty tome, they have discovered the safeguards that we have built in for farmers, which address some of the anxieties that were raised with us in extensive consultation with many partners throughout food and drink supply chains. They will find that those measures are robust and they should be reassured. I am incredibly proud of the indigenous food production that comes out of all parts of the United Kingdom. Scotland should be proud of its beef and Scotch whisky for instance, and I think Scottish producers will take great advantage of the tariff liberalisation on Scotch whisky.