Australia and New Zealand Trade Deals Debate

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Department: Department for International Trade

Australia and New Zealand Trade Deals

Anthony Mangnall Excerpts
Monday 14th November 2022

(1 year, 11 months ago)

Commons Chamber
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Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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My hon. Friend is absolutely right that there is a better way to do that, as he eloquently sets out.

On the theme of scrutiny, Lord Grimstone said in May 2020 that the Government do not envisage

“a new FTA proceeding to ratification without a debate first having taken place on it”.—[Official Report, House of Lords, 23 February 2021; Vol. 810, c. 724.]

Clearly, that has not happened, and that is why this debate is in such odd circumstances. There are crucial elements to both these deals that deserve wider debate and scrutiny.

I want to highlight the real challenge in the Committee for the Bill that the Minister referred to, which was not a Bill about giving effect to a whole range but a specific, narrow Bill on public procurement provisions. The nature of the Bill meant that, under the entirely appropriate rules of this House, finding areas of debate in Committee was very difficult. It was prohibitively narrow: climate change, workers’ rights, consultation with devolved Administrations and animal welfare were not within the scope of the Bill. The agreements were signed before they came before Parliament, so the scope for meaningful debate was fatally curtailed. There has been no scrutiny worthy of the name.

The International Trade Committee rightly criticised the process on the Australia deal and the Government’s premature triggering of the 21-day process under the Constitutional Reform and Governance Act 2010 without the full Select Committee consideration being available to Members. When pressed, the Government refused to extend the process. All the while, in a number of urgent questions, the then Secretary of State, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), swerved I think eight invitations—I will be corrected if I am wrong—to attend the International Trade Committee. I wonder whether the Government’s reticence to open themselves up to scrutiny is because, ultimately, they know they are falling short.

Anthony Mangnall Portrait Anthony Mangnall (Totnes) (Con)
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The right hon. Gentleman is making an important point about scrutiny, and it is not one I can escape now that I have some level of collective responsibility as a Parliamentary Private Secretary, I hasten to add. Does he agree that there is a wider conversation to be had about the Constitutional Reform and Governance Act, which was introduced under a Labour Government, and about whether a more effective system could be put in place? It seems that we are out of kilter with our Commonwealth friends.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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The hon. Gentleman makes the perfectly reasonable point that we need to look at the whole scrutiny process to make it effective and to update so that it is fit for the current situation.

I have indicated that the current Prime Minister thinks the Australia deal is one-sided. Frankly, that is just one of many criticisms that Conservative Ministers and MPs have levelled at their own Department for International Trade and their own Ministers. The former Exports Minister, the hon. Member for Finchley and Golders Green (Mike Freer), rightly said that the trade access programme is underfunded. He said of it:

“We support too few shows, we don’t send enough business, our pavilions are often decent but overshadowed by bigger and better ones from our competitors.”

That could be due to the fact that the budget for our trade show access programme began to fall sharply.

I looked carefully at when in the past 12 years the trade show access programme started to be cut in the last 12 years—I have the figures here for every year. It seems to have happened in the middle of the last decade when a new Chief Secretary to the Treasury was appointed, so I wondered who that was. The Minister has been in post for only a short period on this occasion, but we have had a number of robust exchanges previously, which I have always enjoyed, and this is not a subject that he has ever sought to debate me on before. When I checked who that confident, new, shining Chief Secretary to the Treasury was who started the cuts to the tradeshow access programme, however, I found that it was none other than the current Minister for Trade Policy.

Ministers for Trade Policy have a chequered history under recent Conservative Governments. We have just seen the Leader of the House of Commons, the right hon. Member for Portsmouth North (Penny Mordaunt), in her new role. She was criticised for her attentiveness and availability as Trade Minister, not by me or any Opposition Member, but by the right hon. Member for Berwick-upon-Tweed, who said:

“There have been a number of times when she hasn’t been available, which would have been useful, and other ministers have picked up the pieces”.

Meanwhile, if we read the remarkable coverage of the tenure of the most recent former Prime Minister, the right hon. Member for South West Norfolk, at the Department for International Trade, it is amazing that there was even limited progress, given that the main aim appears to have been securing photographs for Instagram. I will say this for her time as International Trade Secretary, however: although her requests when travelling in Australia were for sauvignon blanc and fancy coffee, they are nothing compared with the Australian delicacies that I understand the right hon. Member for West Suffolk (Matt Hancock) has sampled when out there.

All hon. Members on both sides of the House would agree that a trade deal offers our friends in Australia a fantastic array of British exports, but I fear that they will want to reconsider their options when the first expensive import that arrives is a tariff-free version of the right hon. Member for West Suffolk. I will leave that subject there, aside from the passionate plea that I always make when important elections are under way, such as the bushtucker trial: it is important for people to continue to make their voices heard, and I am sure that people across the country, especially in West Suffolk, will be keen to continue exercising their vote on a daily basis.

The disorder and chaos that we have seen across Government in recent months, and specifically at the Department for International Trade, speak of a Government who lack focus and direction. I speak to huge numbers of businesses every week and they continually express how damaging the instability is; it has real consequences in damaging our exporting opportunities. The utter chaos of financial instability, the tanking of the pound and the damage to our country’s standing are extraordinarily serious.

That instability and lack of clarity are why we have ended up in a situation where promises have been broken and vital progress has slipped. The trade deal with the USA has not been delivered. The trade deal with India done by Diwali has not been delivered. The promise that 80% of UK trade would be under FTAs by the end of 2022 has not been delivered and will not be delivered. It does not have to be that way.

Anthony Mangnall Portrait Anthony Mangnall
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I think we may have been here before, so I apologise for reiterating what I have said previously. The right hon. Gentleman keeps saying that we are not delivering and that we are taking too long, but also that deals are being signed too quickly. The Labour party seems to be at odds with itself. Whether it is our desire to join the comprehensive and progressive agreement for trans-Pacific partnership; our desire to do trade deals with Japan, which we have achieved; the Australia and New Zealand trade deal; or the UK-US state trade deal, those deals are being signed and we are joining new groups. It is not fair or accurate to say that we are not delivering the trade deals that we set out to achieve.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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What the hon. Gentleman omits is that I am judging the Government not against a standard I am putting forward that is impossible to reach but against their own 2019 manifesto. There is no inconsistency between being in favour of free trade deals and hoping that the Government will agree decent ones at the negotiating table.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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As I am finishing in a moment, I will not take another intervention.

The Government’s central trade strategy is a litany of broken promises. We are debating these two trade deals in strange circumstances long after they were signed, sealed and delivered. Access to British markets is not, however, a bauble to be traded away easily, as the Government repeatedly do. The Government must stop selling the UK short, and come forward with a core trade strategy that will allow our world-leading businesses to thrive and deliver for communities across the country. Quite simply, it is time for strong government with a sense of purpose, which the Conservative party is in no position to provide.

George Eustice Portrait George Eustice (Camborne and Redruth) (Con)
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The current Secretary of State for International Trade had no role in the discussions on these deals, although my right hon. Friend the Minister for Trade Policy did and will recall some of them. The Secretary of State was not in the Cabinet at the time, nor in any of the Cabinet Committees, while the Minister has defended the position that was taken at the time.

My position is obviously slightly different: I was in the Cabinet in 2021 and I was on the Cabinet Sub-Committee that argued over the Australian trade deal—for, yes, there were deep arguments and differences about how we should approach it—but since I now enjoy the freedom of the Back Benches, I no longer have to put such a positive gloss on what was agreed. I hope my right hon. Friend will understand my reason for doing this, which is that unless we recognise the failures the Department for International Trade made during the Australia negotiations, we will not be able to learn the lessons for future negotiations. There are critical negotiations under way right now, notably on the CPTPP and on Canada, and it is essential that the Department does not repeat the mistakes it made.

The first step is to recognise that the Australia trade deal is not actually a very good deal for the UK, which was not for lack of trying on my part. Indeed, as my right hon. Friend pointed out, there were things that we achieved, such as a special agricultural safeguard for years 10 to 15, staged liberalisation across the first decade and the protection of British sovereignty in sanitary and phytosanitary issues. It is no surprise that many of these areas were negotiated either exclusively or predominantly by the Department for Environment, Food and Rural Affairs on behalf of the UK team, but it has to be said that, overall, the truth of the matter is that the UK gave away far too much for far too little in return.

What would a good agreement have looked like? It would have been one having enduring TRQs on beef in particular, but probably also for sheep. The volumes would probably have started at about 10,000 tonnes per annum, raising after a decade to about 60,000 tonnes or perhaps 80,000 tonnes, which could have been manageable. We did not need to give Australia or New Zealand full liberalisation in beef and sheep—it was not in our economic interest to do so, and neither Australia nor New Zealand had anything to offer in return for such a grand concession. Let us not forget that, while we are about to open our market to unbridled access for Australian beef, Australia remains one of the few countries left in the world that maintains an absolute export ban for British beef. Not a single kilo of British beef can be sold in Australia since it maintains a protectionist ban, using the BSE—bovine spongiform encephalopathy—episode as a sham reason for doing so.

The impact of full liberalisation is hard to predict; the reality is that, provided we maintain a ban on hormones in beef, volumes might remain quite low, but here is the big challenge. The CPTPP negotiation that is under way could mean accession and agreement to new dispute resolution processes that will undermine the UK’s sovereignty in SPS issues and actually undermine our approach when it comes to banning hormones in beef. If some foreign court or foreign mediation process were to say as a matter of treaty that the UK had to accept beef from Australia treated with hormones, that could change the nature of this agreement considerably; volumes could rise significantly, perhaps to more than 200,000 tonnes over time, and that would have a very severe impact on British beef.

Anthony Mangnall Portrait Anthony Mangnall
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I may be wrong, but it is my understanding that CPTPP dispute mechanisms are through the World Trade Organisation, and I am not sure that the WTO, as it stands, can override any one of our SPS standards. Does my right hon. Friend agree?

George Eustice Portrait George Eustice
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The CPTPP has provisions for its own dispute resolution and they are modelled on what happens in the WTO, but here is the thing: if we do not get the negotiation right with CPTPP it might undermine our ability to practise our own SPS regime and have independence in this area.

If we were to have a significant increase in Australian beef, because we had been forced by a court or a dispute resolution service to allow hormones in beef—and there have been close challenges in the past, through the WTO—that would be intolerable for any British Government. The Government of the day would probably have to trigger article 32.8 of the agreement and give six months’ notice to terminate the FTA. In my view the best clause in our treaty with Australia is that final clause, because it gives any UK Government present or future an unbridled right to terminate and renegotiate the FTA at any time with just six months’ notice. Many Members will remember that we had hours of fun in the last Parliament discussing triggering article 50 of the treaty on European Union; I suspect we would prefer not to have to go back to that, but article 32.8 is the ultimate and final sanction, which, as things have turned out, is a critical safeguard given the size of the concessions made to Australia in the trade deal.

What lessons should we learn? First, and most important, we should not set arbitrary timescales for concluding negotiations. The UK went into this negotiation holding the strongest hand—holding all the best cards—but at some point in early summer 2021 the then Trade Secretary my right hon. Friend the Member for South West Norfolk (Elizabeth Truss) took a decision to set an arbitrary target to conclude heads of terms by the time of the G7 summit, and from that moment the UK was repeatedly on the back foot. In fact, at one point the then Trade Secretary asked her Australian opposite number what he would need in order to be able to conclude an agreement by the time of the G7. Of course, the Australian negotiator kindly set out the Australian terms, which eventually shaped the deal.

We must never repeat that mistake. The Minister and Secretary of State will currently be getting submissions from officials saying that we need to join the CPTPP in a hurry and that if we do not do so now we will not join the club early enough and will not be shaping the rules—they will be saying, “We might miss the boat, this is a crucial part of the Pacific tilt” and so on. But the best thing the Minister can do is go back and tell Crawford Falconer, “I don’t care if it takes a decade to do this agreement; we will get the right agreement—we will never again set the clock against ourselves and shatter our own negotiating position.”

The second lesson is that we must look at making a machinery of government change. I believe all responsibility for agrifood negotiations, including relating to tariff rate quotas, should be transferred from the Department for International Trade to the Department for Environment, Food and Rural Affairs, because DEFRA has superior technical knowledge in this area. It is important to remember that DEFRA never left the world stage; the DIT is a new creation with people often lacking experience but doing their best to pick things up, whereas even during the EU era DEFRA maintained a presence in trade negotiations, advising and informing the EU’s position and dealing with matters such as market access around the globe. DEFRA is worldly and has deep technical knowledge in this area and it should, therefore, take full responsibility for negotiating TRQs in agrifood.

The third change we must look at making is strengthening the role of Parliament in scrutinising and perhaps even agreeing the negotiating mandate. Countries such as Japan and the United States and the EU all use their parliamentary processes to their advantage. When we were negotiating with Japan and seeking to increase access for British cheese, I remember Japan said, “We would love to, but unfortunately we can’t because there is a parliamentary motion that we cannot breach. Therefore, we cannot retreat on this position.” The UK does not have that. We could use Parliament and a mandate agreed by Parliament to say to trading partners, “We’re not able to agree to what you’re asking for.” However, if they perceive that Crawford Falconer calls the shots and that he will always go through some back channel to get something agreed, we will not be in a strong position and our negotiating position will be undermined.

That brings me to my final point. I have always been a huge fan of the British civil service; I was never a Minister or politician to level criticism at them. I enjoyed nine years of incredibly good relations with civil servants at all levels, but I do want to raise a comment about personnel within the Department for International Trade. Crawford Falconer, currently the interim permanent secretary, is not fit for that position, in my experience. His approach was always to internalise Australian demands, often when they were against UK interests, and his advice was invariably to retreat and make fresh concessions. All the while, he resented people who had a greater understanding of technical issues than he did. It was perhaps something of a surprise when he arrived from New Zealand to find that there were probably several hundred civil servants in the UK civil service who understood trade better than he did, and he has not been good, over the years, at listening to them. He has now done that job for several years, and it would be a good opportunity for him to move on and for us to get a different type of negotiator in place—somebody who understands British interests better than he has been able to.

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Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
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May I extend my birthday wishes to the Minister, too? I will not ask him how many candles are on his cake, but I am afraid that I cannot hold a candle for the defence he gave for these deals. It seems that I am not alone. In addition to the right hon. Member for Camborne and Redruth (George Eustice), there seem to be many more Tory critics; I will refer to a few of them in my remarks.

First, a general debate is no replacement for genuine parliamentary scrutiny. The Government have failed to provide that, even though it was promised. The deals, lumped together in the debate, are one-sided and a betrayal of farmers. They threaten food security and animal welfare, reduce consumer confidence, find climate change expendable and do nothing to mitigate the enormous losses of Brexit. Quite possibly, they are also breaking international law. Yet again, no reason is provided to support this further exercise in UK self-harm. They simply double underscore the increasing risks of the UK and the need for Scotland to become a normal, independent country and to rejoin the world’s most successful trading bloc, the EU.

Let me cover those points in order and in more detail. When I say that they are one-sided deals, I am, as we have heard, quoting the current Prime Minister. He was right. Of course, given that his party is in power, he was also being generous. These are awful deals. They are unmitigated disasters. That is why the Government are refusing to allow Parliament to vote on them. These deals are the legacy of the previous Prime Minister and make as much sense as the infamous mini-Budget.

Anthony Mangnall Portrait Anthony Mangnall
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The hon. Member is making a point about whether we can vote on the deals. The reality is that having a vote on them would not change anything, as he full well knows. We are leading people down a path without clarifying how, under the CRaG mechanism, the votes would make no changes to the trade deals that we are debating.

Drew Hendry Portrait Drew Hendry
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I admire the hon. Member’s dexterity. Having been in the House when he has quite rightly criticised the lack of scrutiny offered by the Government, I understand that he is now in the employ of the Government and must sing a different tune. The fact of the matter is that this is not good enough.

Anthony Mangnall Portrait Anthony Mangnall
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Will the hon. Member give way?

Drew Hendry Portrait Drew Hendry
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No, I am going to make some progress.

Given that his party was in power, the Prime Minister was, as I have said, being generous. These are awful deals. They are unmitigated disasters and that is why Parliament is not getting the chance to scrutinise them properly. They will do similar harm as the mini-Budget to the sectors concerned. The current Prime Minister also said that they

“shouldn’t be rushing to sign trade deals as quickly as possible”.

We agree, but wait a minute: he is the Prime Minister! Why, then, is he allowing this to proceed? If he does not agree with it, is not letting it go through just another part of a grubby deal for power? It makes no sense otherwise.

The Government are keen enough to tear up deals such as the Northern Ireland protocol, yet they will not get around the negotiating table on these deals, even though they can do so. These deals are bad, very bad, for our farmers and food producers. The National Farmers Union president, Minette Batters, says of the Australia deal that

“this is a one-sided deal. When it comes to agriculture, the Australians have achieved all they asked for and British farmers are left wondering what has been secured for them.”

And well might they wonder.

She went on to say of the New Zealand deal:

“The government is now asking British farmers to go toe-to-toe with some of the most export orientated farmers in the world, without the serious, long-term and properly funded investment in UK agriculture that can enable us to do so. This is the sort of strategic investment in farming and exports that Australian and New Zealand governments have made in recent decades.”

This has a knock-on effect on our food security. These deals are bad policy at the worst possible time. The laissez-faire, couldn’t care, get it over the line Brexiteer ideology has de-prioritised domestic food production in support of importing cheaper—for now—lower standard food. That is dangerous and should be put on hold immediately. It sets a thumpingly bad precedent. The rest of the world is watching and wants the same one-sided access that has been squandered here.

Anthony Mangnall Portrait Anthony Mangnall
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Will the hon. Gentleman give way?

Drew Hendry Portrait Drew Hendry
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If the hon. Gentleman wants to pick up on that point, I will give way.

Anthony Mangnall Portrait Anthony Mangnall
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I will, on food security. That is exactly why the Government passed, in the Agriculture Act 2020, the need to report back on food security—so that we could review the situation and ensure that this country has a full and complete level of food security. Does the hon. Gentleman not agree that, actually, that shows that we are taking it seriously, rather than ignoring it?

Drew Hendry Portrait Drew Hendry
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It will come as no surprise that I do not agree with the Government Member. These are damaging deals. They are one-sided and other people will want access.

Talks are ongoing with India, Brazil, Mexico, the Gulf states, the comprehensive and progressive agreement for trans-Pacific partnership countries and Canada. Will they now accept less than has been offered here? This might just be the damaging start of the process. No wonder the National Audit Office report says that the UK Department for International Trade is “taking risks” in its haste to sign new deals.

This is bad for consumers. Research by Which? found that 72% of people across the nations of the UK do not want food that does not meet current standards coming in through trade deals. And boy, do standards differ! In Australia, animal welfare standards are well below what is expected of our producers, particularly on pigs, eggs, sheep and beef, with cramped sow stalls, battery cages, the painful mulesing of sheep, huge herds of cattle in zero-grazing feedlots, and permissible live animal transport times that are twice the length of ours. Australian poultry farmers use 16 times—I repeat, 16 times—more antibiotics per animal than our farmers. The UK Government’s own advisers have voiced concern about the impact on UK farmers of the overuse of pesticides in Australia, including 144 highly hazardous pesticides.

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Anthony Mangnall Portrait Anthony Mangnall (Totnes) (Con)
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It is a pleasure to follow the right hon. Member for Warley (John Spellar). I did battle against him in 2017, and he sent me running. I am pleased to be in the Chamber with him to discuss something on which we are of one heart and one mind.

I am partly here as a member of the International Trade Committee. Our Chair appears to have thrown his toys out of the pram and has not come to debate the very thing that he has asked about for the last 18 months. The Committee has done a huge amount of work over the two and a half years in which I have been a member. We have produced reports on scrutiny, on the New Zealand and Australia agreements, on UK Export Finance, on inward foreign direct investment and on digital trade and data. The reason for these reports is because we are signing trade deals at a rapid rate of knots, not too fast, as the Opposition might paint the picture, but steady progress. We are signing deals that will be of huge benefit to the UK service economy, to our producers, to British consumers and to the British public, and we should talk more about that.

The International Trade Committee is attempting to keep up with the Government’s ambitious programme to ensure that we are able to produce reports for this House. I agree with every point raised by the right hon. Gentleman on scrutiny. We have to have a conversation in this Chamber about scrutiny, which is not to be feared. If anything, the expertise in this House would be of huge benefit to both the Government and the Department for International Trade. The whole point of the International Trade Committee’s work is to be a critical friend by considering what works and what does not work, to try to strengthen the Government’s position through our reports and engagement sessions, and by consulting widely with experts across the United Kingdom.

We all wish to see the United Kingdom strike the most effective trade deals, although that might not be the case for SNP Members, who do not seem to support any trade deals at any time. I was accused of having ample dexterity in saying that I want to see scrutiny, but the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), who is no longer in his place, started his speech by saying he is pro-free trade. I have never before heard the SNP give us such a line, because it is clearly not the case. The SNP says it wants to be part of the EU, but leaving the Union of the United Kingdom is the only thing that will cause an economic catastrophe for Scotland.

I welcome the opportunity of this debate to talk about the Australia and New Zealand trade deals. So often in this country we talk about import impacts rather than export opportunities, of which I believe there are many. We must talk them up. We hear the Opposition highlight that Members and Ministers of the Australian Parliament have saluted their trade deal, suggesting that we have got the wrong end of the stick and that Australia has got the best side of this deal. If the Opposition started promoting the positive elements of this trade agreement, we might find that people have a little faith in it. Scratch the surface of the trade agreement, and we will find there are huge benefits.

The International Trade Committee’s most recent report made five recommendations. I asked the shadow Minister about the role of CRaG, which was introduced by the Labour Government in 2010. We need to have an open and frank cross-party discussion about what new system we might be able to put in place. If we are not going to use the mechanism that has been promised, we might as well consider an alternative measure. I ask the Government, with the greatest respect, if we are to ignore having a votable motion, could we at least have general debates during the CRaG process so that we can talk about it before the deal is ratified? That would send a positive message to all of us who return to our constituencies to talk to farmers and businesses that might be concerned. That, at least, would be a simple thing to put forward.

We must also ensure that there is scrutiny and that Ministers turn up on time to the Trade Committee. We have had problems. However, as has been said, the Front-Bench team we have in the Department for International Trade is truly excellent. I have worked with a number of them on a number of occasions and it is reassuring to know that they take these points seriously. I have those conversations with them both in public and in private.

There is a valid point to be made on ensuring that Departments are joined up when it comes to trade deals. That was not always the case. The Committee certainly did not feel it was during the Australia negotiations. It was, however, better on the New Zealand negotiations. On the point about having a joined-up negotiating objective as a one-size-fits-all, I am less than persuaded by that. We have to be flexible in looking at the needs of each and every trade deal we end up signing.

We need to look at where the Australia trade agreement benefits us. As the Minister for Trade Policy, who is no longer in his place, said, 82% of our workforce and 80% of GDP are in financial services. That is where this deal strikes incredibly well and effectively. We will have greater access—more than ever before—to Australian markets. From architecture to law to financial services, we will be on an equal footing. That could increase UK service exports to Australia by £5 billion. Additionally, it cuts the bureaucracy that so many small businesses have been frustrated about.

Mobility offers the opportunity to support economic growth and recovery, and opportunities for people in Australia and people in the UK. It is worth noting that, under the new travel arrangements, which are based on reciprocity, there will be a youth mobility scheme; an innovation and early careers scheme; an exchange pilot; and a working holidaymaker initiative. I go back to what the right hon. Member for Warley said: the purpose is that there will be side initiatives where we can look at how to expand this. Trade deals, once signed, are not static; they evolve over time. We must remind ourselves that what was signed recently does not necessarily have to be the trade deal that we live with for the rest of our lives. We can steadily improve the deals and must look to do so. We should certainly be heading in that direction when it comes to the visa arrangement and shared professional qualifications.

Deidre Brock Portrait Deidre Brock
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Does the hon. Gentleman seriously think that that is in any way compensation for the loss of freedom of movement, and of the workers that we were getting from Europe, as a result of the disastrous Brexit deal his Government have negotiated?

Anthony Mangnall Portrait Anthony Mangnall
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We have a trade and co-operation agreement, a free trade agreement, with the EU, which is important to note—and which the hon. Member voted against. We also have a significant amount of opportunity to welcome people. The whole point is about having control. If we are going to sign up to new relationships with countries around the world, we want to be able to do so through the Commonwealth and through countries that have shared ideas and views about the world, and we should welcome that.

A point was made by a Member from Wales, whose constituency I cannot remember off the top of my head, about our inability to bid into Australian government contracts. I am afraid to say that that is incorrect. Within the terms of the Australian trade agreement, businesses in the UK will be able to bid into Australian government contracts worth up to £10 billion a year. That is the most extensive expansion the Australians have ever agreed in any free trade agreement in the world.

On the point about farming, I bow to the knowledge and experience of the former Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Camborne and Redruth (George Eustice), but I was surprised that we did not hear more about the Trade and Agriculture Commission that we set up. I hope that that might be the vehicle by which we can ensure better scrutiny, and better enhancements and support for farming. We need to look at that issue. We have certainly had extensive negotiations in the Trade Committee about how we can use that.

George Eustice Portrait George Eustice
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Does my hon. Friend agree that, if we were to try to strengthen the Trade and Agriculture Commission, the right thing to do would be to move it within the Department for Environment, Food and Rural Affairs and away from the Department for International Trade, so that it could have access to the technical knowledge and expertise that it said was denied it in the first assessment?

Anthony Mangnall Portrait Anthony Mangnall
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I will be in such dangerous territory if I give a straight answer to that—I am looking to see whether the Whip is behind me. I might say that there is significant expertise on the Trade and Agriculture Commission already and it is not for me to discuss how it is structured and in which Department. However, the issue was rightly raised by the former Chairman of the Environment, Food and Rural Affairs Committee and it gave a lot of hope to many Members with rural constituencies. We should use that Committee, and I know the Government take it seriously when it produces its reports.

We talk at great length about the flow of people, ideas and goods when it comes to the CPTPP. In these fractured and difficult times, it offers huge benefits: a significant opportunity to ensure that we can strengthen our relations in the Asia-Pacific, encourage the diversification of supply chains away from China and encourage greater trading between those countries that share like-minded ideas.

I could go on for a lot longer about the New Zealand agreement, but I will touch on just a couple of things briefly. Not many Members in this debate have mentioned the huge benefits that have been secured in digital trade. If we want to see where the United Kingdom has really led the world, just look at the benchmarking of what has happened in the UK-Singapore digital trade agreement. The terms in the New Zealand agreement are truly extensive. They will make an enormous difference to countries around the world, and perhaps an enormous difference to CPTPP, which may end up using those terms.

On the environment, some Members have said that perhaps Australia has lower standards. I do not look forward to the moment when Nicola Sturgeon goes on one of her ridiculous trade missions to Australia, after hearing the comments of the hon. Member for Inverness, Nairn, Badenoch and Strathspey about Australia and its standards. The New Zealand trade agreement is the first environmentally ground-breaking agreement in a free trade deal anywhere in the world, yet not a single Opposition Member has mentioned that.

Drew Hendry Portrait Drew Hendry
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Is the hon. Gentleman denying, for example, the animal welfare issues—how animals are treated differently, how they are raised and how they are transported—and the additions that are used in pesticides and the antibiotics? Is he saying that is not the case?

Anthony Mangnall Portrait Anthony Mangnall
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I am saying that when the hon. Gentleman compares the standards of Australia with those of Brazil, that is a massive insult to Australian markets and farmers. I do not think we should do that. When we compare other countries, we must not talk down our Australian counterparts. We must work with them.

Drew Hendry Portrait Drew Hendry
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The hon. Gentleman might want to withdraw that comment because I have not compared Australia with Brazil at any point in the debate or previously.

Anthony Mangnall Portrait Anthony Mangnall
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As I heard it, the hon. Gentleman used other countries as a reference and said that Australia was one of the worst. I am happy to go through the record in Hansard to look at that and I will certainly do so tomorrow.

It was also said—the hon. Member for Inverness, Nairn, Badenoch and Strathspey said this as well—that we are tying ourselves in knots in having paper documentation in relation to our trade deals. This is exactly the reason the Government are introducing the Electronic Trade Documents Bill, which small and medium-sized enterprises across this country have welcomed.

I have taken up far too much of your time, Madam Deputy Speaker, but the purpose is to state we must look at our trade deals in the round. We must look at them as opportunities to expand. We must ensure that we talk them up, not down, and, above all, we must ensure that all the businesses in our constituencies are aware of how they can use the support from the Department for International Trade to reach new markets. Businesses that go further afield are more resilient in all times—good and bad.

--- Later in debate ---
Lloyd Russell-Moyle Portrait Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
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The first thing to say about international trade deals nowadays is that they are not just trade deals. They are comprehensive agreements on how countries will co-operate and how they will grow together. They are dynamic deals that will set the future course of the respective countries. They are, of course, very similar to the deals we had with the European Union in many respects, but with less scrutiny, less oversight and less public participation.

That can be more acutely demonstrated when we compare these trade deals with the deals the European Union is busy getting on with now. We can see that the European Union’s deal is much more advantageous to the European side than this deal is to our side. Why is that?

Anthony Mangnall Portrait Anthony Mangnall
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Speak up for this country!

Lloyd Russell-Moyle Portrait Lloyd Russell-Moyle
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My colleague on the International Trade Committee says I should speak up for this country, as if I should be some ambassador for the Government, ignore how they are running down this country and only talk about the good things. I am afraid that is not the role of the Opposition and of Opposition parties. What we do is lay out how we would benefit our country if we were in power, and what we would do better for our country where the Government have failed.

Let us talk about things that could have been included in this deal, but were missed—first, food standards. In this deal, animal and food standards are frozen in Australia, because this deal gives Australian producers a competitive advantage. While they will not go backwards, why on earth should they desire to improve their standards above ours? That gives them no advantage. Rather than saying, “We will slowly reduce barriers as you meet the standards that we are getting to,” it says, “You have absolute access to our markets, and don’t worry, you don’t need to change your standards either”—that is, apart from some wishy-washy wording about some long-term desire; mañana, mañana. We all know what those clauses mean: nothing. The only thing that matters is hard trade law, hard tariffs and quotas, and on that, we have been let down.

In fact, when we asked the Australian negotiating teams what they thought of this, they said, “All our red lines were met; we compromised on almost nothing. It is a fantastic deal.” Well, yes, it is a fantastic deal for Australia. If one side has all of its red lines met and the other does not, it is clear who the winners and losers are.

We could have gone further on free movement of people. The extension of our current visa arrangements for the free movement of students from two years to three years is pretty pathetic. Free movement should be afforded to countries that are of a similar economic situation to us—that is why we had free movement with Europe—and that have similar flows. We have similar numbers of people going to Australia and of Australians coming to us. The expansion by only one year is pretty pathetic and will not make much difference for most young people, who already had the right to two years and could extend it in Australia if they worked on a farm. It is pretty miserable and unambitious.

The same can be said for climate change. In the Australia deal, the wording is weaker than, and does not go beyond, the Paris agreement. Australia is a country of similar economic and legal profile, and it now even has a Labour Government—unlike us, but not for much longer, I hope—so why can we not negotiate something better? The clauses on climate change are the kinds of things that we would expect from negotiations with countries that are much harder to negotiate with, such as China or India—countries that are much more problematic on climate change.