Trade Bill

Angus Brendan MacNeil Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Wednesday 20th May 2020 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

As we all know, this is a reheated Trade Bill. Sometimes a meal can be all the better for the reheating—it can be better the following day—but sadly, despite all the advice and help that was given on the Trade Bill in the last Parliament, that has not come to be this time. It remains much a dog’s breakfast, with great criticism attached to it and much under-delivery on what is required.

The Bill essentially has two strands to it: the roll-over of free trade agreements and the creation of the TRA. Before we go too far on the roll-over, we almost have to take a step back. If we are indeed looking to roll over EU trade agreements that currently affect us, are we not just admitting that the EU has done quite a good job of arranging trade agreements—so much so that we want to copy them to the letter?

In fact, when we go to copy some of the trade agreements, we find we cannot replicate them. I remember raising in Committee the trade agreement with South Korea, which states that, in the automotive sector, if motor vehicles have 55% local content, the tariff can be exported. Alas, the UK alone cannot do that. The EU can do that—it has a 500 million-odd population and consumers, and the parts come from all parts of its manufacturing base—but the UK cannot take advantage of a rolled-over EU-Korea deal the way it is written at the moment. There are many things lacking at that stage.

On the Trade Remedies Authority, again, much advice has been given about what could happen and what is not happening, and it is a shame that the Government are not listening and refuse to listen to many people. There are many concerns, particularly in the ceramics trade. The TRA was set going on a wing and a prayer. We could have had Brexit long ago, and the reality is that the UK was not prepared. It still is not prepared.

We do not have the scrutiny in place. We do not have the scrutiny that my Committee called for in the last Parliament for the devolved Parliaments, but even if we take a Westminster-centric view of this, we do not have the scrutiny for parliamentarians at Westminster either. Again, the Government have missed the opportunity to get this right, and that is a huge pity. It could have been enshrined in the legislation. It is not enshrined. The opportunity has been missed.

There was an opportunity to avoid the pitfalls of the Transatlantic Trade and Investment Partnership. The European Union and many others have learned that trade negotiations conducted in secret do not get very far and that the population will eventually rebel, as was seen with TTIP. People have learned, but sadly it seems that the UK Government have not learned from that or, indeed, from the passage of their own Bill, which fell at the last parliamentary election, back in December.

NHS procurement should be taken care of. Wearing my constituency hat, a lot of constituents have written to me with concerns about the NHS—about making sure that there are NHS-specific carve-outs, that there is no negative listing affecting the NHS, that there are no standstill clauses, that the NHS is immune from the investor-state dispute settlement possibilities, and that there is no Americanisation of our drug situation in the United Kingdom. Particularly at this point, when the NHS is fighting coronavirus, but at all times in fact, it is incumbent on Parliament and the Government to back the NHS and make sure it is safe and protected.

The Secretary of State mentioned the USA trade deal. We have to take a step back and look at exactly what has been achieved, or the Government have tried to achieve. The USA trade deal will add only about 0.2% to the UK’s GDP, compared with the 6% that will probably be lost after Brexit—about one thirtieth of that. Given that America represents a quarter of the world’s GDP, even a trade deal with every country in the world will not make up the huge gap left by Brexit.

Finally, the Secretary of State began by saying she would do whatever it took to keep Britain trading, as she put it. Surely, at this point, “doing whatever it takes” would include staying away from this disastrously ruinous Brexit, or, at the very least, having the humility to postpone it during the pandemic. This hell-for-leather approach of going for the cliff edge this December is not what business needs at this time, or what the population needs. It is not what any of us needs at this time. If the Government are still too proud to realise that Brexit is a mistake, they should at least delay it, perhaps for one or two centuries.

Trade Bill

Angus Brendan MacNeil Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 19th January 2021 Commons Chamber

We recently voted to take back control of our laws, our borders and our money. This is about taking back control of our laws and, indeed, our conscience. It is about reminding ourselves that when a people is under oppression so that their very existence is threatened, we have a duty and a responsibility to stand up. So I will be standing with the Muslim community around the world—Ummah Islamiyyah—and the Jewish community around the world, as well as with many, many people across the United Kingdom and across the world who are seeing the abuses that we are seeing, sadly, in western China and reminding ourselves that that crime does not just fall on the heads of the victims, but threatens us all. It is therefore genuinely a crime against humanity that cries out for justice in any court, but particularly, in a British court.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Feasgar math, Mr Deputy Speaker, and thank you very much for calling me at this stage of the Bill. I am speaking from the island of Barra in Scotland, which has just been included in tier 4 with the mainland. That is one of the reasons why I have not been travelling and why this is the first time I will speak in any stage of the Trade Bill. I am grateful that we are back to a virtual Parliament, which should have been happening long ago.

I would like to mention a couple of things before I get to the meat of this. A lot of constituents, and people who are not constituents, have been getting in touch about the NHS. I did hear the Minister say that the NHS would not be on the table and I hope that that includes the back door and every other side angle into the NHS. Food standards concern an awful lot of people. Over a quarter of a million emails were sent to MPs in the last year on food standards, so we should be very aware of that, as indeed we should be of standards in agriculture and general trade. The role of Parliament in scrutinising deals comes up a lot in correspondence, so I will raise that, too. ActionAid has pointed out, very valuably, that the fallout from covid-19 has shone a new light on the disproportionate impact of trade policies on women and girls, who comprise the majority of unpaid carers. It has had a particular impact on women and girls in the global south and has affected the work of women in trade. When trade is considered, we should think of all of humanity, and particularly the half of us who are of a different gender.

Scrutiny is indeed a very good thing. Let us think about this. With a lack of scrutiny, which Brexiteer thought that they were making the EU bureaucrat king over the UK’s export trade? But that is what has happened, as the shellfish guys and girls, and other exporters, will tell us. Much to the frustration of many in the shellfish sector, we have the EU bureaucrat with the clipboard, demanding five or six more bits of paper before things can move, where once they moved freely. And it is not just them, but exporters in general. From July, they will met by not just the EU bureaucrat, but another set of bureaucrats coming in as quasi-monarchs—the bureaucrats of the UK—and importers will be hit as well. The lack of scrutiny was probably one of the reasons that it came as a late dawn for many that the UK trade bloc is now smaller than the UK—quite an achievement for Brexit.

We move towards scrutiny in a bit more depth in amendment 5. My Committee had difficulty with the Japan agreement because of the time we had at the end for scrutiny and the experts we could share it with. I would have raised this concern earlier in Parliament had I been able to, but of course then there was no virtual Parliament. The access we had to negotiators was very interesting. We usually got the debonair, bland kind of guys at the top when we wanted the guys at the coalface who were negotiating during the trade deal—but that did not happen. Information we got during the briefings did not bear much relation to the matters that came up at the end, such as UK negotiators setting the principle of playing second fiddle to the EU when it came to tariff rate quotas in relation to Japan.

The UK boasts that it is doing 63 more trade deals. What it is doing is rolling over trade deals, and it is not actually getting any GDP increase from that. It is worth considering the numbers, because in the flowery language that is often thrown around on this, the numbers talk most. The cost of Brexit at the moment is 4.9% of UK GDP; it is costly. No trade deal that the UK has made or signed so far is recovering this 4.9% damage. The Japan trade deal was touted as being a 0.07% gain. To put this in context so that people understand, let us call that £4.90. The Japan trade deal was reported as giving us back 7p of that damage, but in fact it was not, because the UK was already trading under the trade deal that the EU had with Japan, so the net gain was, in effect, zero. The UK Government had not done the numbers comparison between the two, which was disappointing. Again, the need for scrutiny is large.

When it comes to the best trade deal we can get—the American trade deal—that is only going to give the UK about a 20p increase on the £4.90, comparatively, that is lost. We need 24-and-a-half times such trade agreements to make up the damage. As America has a quarter of the world’s GDP, that effectively means finding seven or eight planets we can drive lorries to, or ship containers on boats to, to counteract the GDP damage that Brexit has done, so clearly it ain’t going to happen. The trade deals that we are doing need to be looked at responsibly and carefully. Incidentally, on the American side, the GDP gain for them is only 0.02%, or 2p. I am sure that the new Biden Administration will have bits of paper showing other priorities for greater economic growth, before a trade deal with the United Kingdom. Again, that scrutiny could have stopped us misleading ourselves.

On Amendment 3, I think everybody considers that to be the right thing. It is just that if the FTAs are suspended, do we then go back to trading on WTO rules, and when does that happen? Surely something stronger needs to be in place on that.

The best of all trade deals available is the one we have just walked away from. If the UK wants to increase GDP by 4.9%, there is the single market and the customs union, and that will help our shellfish guys as well. Tapadh leibh, Mr Deputy Speaker.

Trade Bill

Angus Brendan MacNeil Excerpts

Consideration of Lords amendments
Tuesday 9th February 2021 Commons Chamber

My second concern is with the reference in Lords amendment 1B to the consent of devolved Administrations to trade deals developed in a reserved area of policy, as opposed to the full consultation that is clearly appropriate. Other than that, I support that amendment and would have voted for it this afternoon, and I hope that the Government will move in its direction.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

It is good to have this debate, although I am afraid it is a bit too short, as I think most Members would accept.

When it comes to trade deals, Parliament really needs to debate beforehand. One of the things we know from the little interaction we have had with negotiators is that it is much better for them to know what Parliament is thinking; it strengthens their hand in negotiations to understand what they might get through Parliament at the end of the day. That is hugely important. It is also important for them to hear the concerns of 650 people who represent the geographical area that the trade deal will be a huge, integral part of and will affect. I would caution that what happened before Christmas, with the rush of the European trade deal, is a lesson that Parliament should think and not rush.

There is, of course, within any Executive—any Government—a feeling that they do not want scrutiny, they do not want to discuss, and they do not want to pause, reflect and think again, but for the good of everyone concerned, they should do that. Parliament treats itself as a sausage factory; it gets things done and through, and that is the end of it. However, at the end of the day, as the shellfish exporters, the poultry exporters and many others in the UK know, once Parliament has washed its hands of it and walked away, other people have to deal with the text at hand. They cannot deal with that text very well if it has not been thought about, reflected upon or given due scrutiny.

In Parliament, we talk a lot about trade deals, but do we realise the GDP size we are talking about? That is something we can lay out beforehand. Leaving the European Union will cost the UK about 4.9% of GDP. The best of the upcoming trade deals that we are looking at will make only a fraction of that back—with New Zealand and Australia, probably about a fiftieth of it. Are people aware of that?

During the negotiations on the Japan trade deal, the International Trade Committee could not get access to the right level of negotiators. It was only at the end that we understood the pass we were sold on tariff rate quotas, where the UK accepted playing second fiddle to the European Union; after the European Union had dined with Japan, the UK could then perhaps go to the table for the crumbs. We were not aware of that at all during the negotiations. Parliament has to look a bit better. We have to trust our Select Committees, improve access, and have debate beforehand and afterwards. As for the point that Parliament has much power with the CRaG process, frankly, that is just not true.

The best the Government could do at this stage would be to adopt Lord Lansley’s amendment 1B. That would be a huge help from the point of view of the Select Committee and Parliament, and the Government should have the humility to do that.

[Dr Liam Fox (North Somerset) (Con)]

I wish to make only three brief points. First, the House of Commons is the appropriate place to scrutinise the elected Government’s independent trade policy. That is why I am against Lords amendment 1B, because it actually gives powers away from the House of Commons. The amendment requires the House of Lords to give its permission for the elected Government to even have discussions on our future trade policy. I cannot believe that the Labour party’s position is to give the House of Lords a veto on what an elected Government in the House of Commons should or should not be able to do. I wonder sometimes whether this House is having some sort of collective democratic nervous breakdown, because it seems always to want to give its powers away to someone else.

As I said last time, I do not believe that the courts should have a say on the elected Government’s trade policy, either—whether prospectively or retrospectively—or on what we debate in Parliament. When it comes to the issue of genocide, what matters is what we do about credible accusations of genocide. We should not be waiting for judicial confirmation through the Trade Bill. We can assess evidence, assess intelligence and listen to eyewitnesses ourselves. Frankly, if we want to take action in response to the Chinese Communist party’s treatment of the Uyghur people, we should do so. We have given ourselves new powers. But the Trade Bill is not the appropriate place to deal with that issue.

On the impact, we are talking not about stopping trade with China or stopping companies doing trade deals with suppliers in China—the use of sloppy language that fails to differentiate between trade deals and free trade agreements, which are a different legal entity entirely, does not help the quality of the debate—but we do have a perfect right to take into account any state’s behaviour when it comes to a future free trade agreement, and our ability to do so is limited. I campaigned to leave the European Union because I wanted powers brought back from Brussels, but I wanted them brought back to this place, not given straight back to the Executive to exercise them on our behalf. When I was Secretary of State, I wanted to see Parliament given a vote on new trade agreements, as the previous Speaker would have attested. I still believe that that is most appropriate at the beginning, at the setting of the mandate, because if Parliament can agree then on the direction of travel, we are less likely to have the sort of misinformation that we had on the transatlantic trade and investment partnership and the ridiculous scare stories that we heard from the SNP spokesman today. If we do not have the ability to vote at the beginning of the mandate, it makes the CRaG process less credible.

The Government are making a rod for their own back. Today we have an opportunity to give power back to the House of Commons—not the House of Lords, not the courts, not the Executive. We should show a little bit of courage and faith in our own institution.