Trade (Australia and New Zealand) Bill

Anthony Mangnall Excerpts

Consideration of Lords amendments
Wednesday 22nd March 2023 Commons Chamber

[Gareth Thomas]

My right hon. Friend, as ever, makes a hugely important point. Australia and New Zealand, as I said earlier, are important allies of this country with whom we have crucial security interests as well as trade interests. I accept that anything that helps to maintain and strengthen those relationships is very positive, but I am sure he would agree that we need to learn the lessons from how Ministers carried on those negotiations, particularly with the Australians.

Given the specific context of the Bill and the focus on implementing the procurement chapters of the two trade deals, it is a struggle to see how this amendment will help to improve the implementation of the supposed better access to our partners’ procurement markets.

The leading procurement expert Professor Sánchez Graells set out clearly in his evidence to the other place, and indeed to this House, his concerns that the Australia deal worsens the protections for British businesses competing in the Australian procurement market. We are entitled to ask ourselves whether this amendment helps to address that concern in any way. Sadly, I do not think it does.

Professor Sánchez Graells also made clear his view that the benefits of the trade deal in terms of access to Australia’s procurement market have been significantly exaggerated. The noble Lord Purvis and Labour Lords also picked up on that point in the debates in the other House, but the one Lords amendment that the Government backed does not address this concern. What the amendment does, if anything, is ever so slightly increase Ministers’ powers to implement regulations, wherever and however they want.

Given how Ministers excluded some groups from the negotiations—including trade unions—given the disregard for the legitimate interests of our devolved nations, and given the failure to negotiate commitments on climate change or proper protections for specialist British brands such as Stilton cheese or Scotch whisky, Ministers’ apparent determination to try to claim a little more freedom to implement the procurement chapters does not encourage any sense that they have learned lessons from what has happened.

I have one specific question for the Minister on the implementation of these trade deals. It would be very helpful for small businesses across the UK if he set out the Department’s plan to support small businesses that want to access the Australian and New Zealand markets and take advantage of the trade preferences in these two deals.

We will not seek to divide the House, but this amendment is a reminder of the Government’s woeful performance on trade and exports, and of the desperate need for a new Government determined to lift up the living standards of everyone in this country, not just the already very wealthy, by delivering more exports and sustained economic growth.

[Anthony Mangnall (Totnes) (Con)]

I congratulate the hon. Member for Harrow West (Gareth Thomas) on taking such a great deal of time to find some contention in a single amendment that adds only the word “difficult.” I am afraid my remarks will be somewhat shorter.

The whole basis and value of this Bill, and of what the Lords have sent back to us, is in taking the opportunities presented to us by our trade agreements. It is undoubtable that, through the Australia and New Zealand trade deals, new trade opportunities have been delivered. We have to be clear about how those values have offered themselves, whether through defence agreements, through creating new digital partnerships, through joining new blocs such as CPTPP, through exploring the idea of the Gulf Co-operation Council, through signing memorandums of understanding with American states and trade agreements with Israel or through finding ways to join up with India to unlock services and industry opportunities for our country and our businesses.

The hon. Gentleman spoke about how we might be able to help small and medium-sized enterprises. Well, only this morning the Department for Business and Trade held an event in the Attlee Suite of Portcullis House on how we can help SMEs achieve their true value and potential beyond our borders. I hope we see more of those events, because it is essential that we find ways to help our small businesses reach new markets.

I will come on to procurement and the amendment in a second, before I stray too far, but it is relevant to talk about the value of these trade deals. All too often, we are told that they are not of enough value to the UK economy, which is to presume that our trade deals are static and that no one takes advantage of them when they are brought into force. After they are brought into force, we always see them grow.

On the International Trade Committee, I always cite the example of the North American free trade agreement. The expectation when NAFTA came into force was that it would be of very little benefit to the signatories’ economies. In fact, the opposite was the case. It grew steadily over time and has evolved into what it is today under a different name. We should look not at the current forecast value of these trade deals but at how we can encourage businesses in each and every one of our constituencies, from Totnes in south Devon to Harrow West and Northern Ireland, to take full advantage.

We talk about procurement a lot and we are trying to shape it in a meaningful way in this House. So far, we are doing very well, with the Procurement Bill. However, as the Minister has rightly said, this is the chance to take the benefit of procurement opportunities that vary. Where there are differences—it will not just be in defence, as it might be in utilities, services, industry and so on—this will allow us to take the opportunity that comes with that range.

I do not think there is going to be much disagreement on this Lords amendment. At last, it shapes a Bill that—

[John Spellar]

Do we not have to be careful on public procurement and recognise the world as it is, notwithstanding agreements? Even when we were a member of the EU, we found that other countries gave considerable preference to their own producers within procurement. Our civil service and Treasury resolutely, adamantly and stubbornly refuse to support British industry, including small and medium-sized enterprises, and so when they go into the world market, they hear, “If you are not good enough for the British Government, why are you good enough for us?” They are being constantly undermined, even now, on small modular reactors.

[Anthony Mangnall]

I am grateful to the right hon. Gentleman for that. We have accepted in many instances the terms of the World Trade Organisation and the carve-out measures within them, so we are very compliant in many areas where we can be, for example, in this instance, a little more protectionist in respect of some of the key technologies we are developing in this country. There is a bit of give and take on that point. We do recognise it in some areas, although perhaps not to the extent that he would want to see.

As I was saying, I do not disagree with this Lords amendment, which is a perfectly simple one. There is always a lot in a word, but this will give us the opportunity to take full advantage in our trade deals and through procurement.

[Richard Thomson (Gordon) (SNP)]

Out of all the potential amendments that could have come back along the corridor from the other place, this is not one that would have been top of my list. Let me surprise the Minister by saying that this is a very good trade deal—for those viewing it from Australia or New Zealand. It is not such a good trade deal—it is a pretty lousy one—for those viewing it from Scotland. We are dealing with a single-word amendment, and I can think of many farmers in my constituency who could probably sum up their views of this deal in a single word—none of their words would be parliamentary, I hasten to add.

I hear what the hon. Member for Totnes (Anthony Mangnall) has to say about this not being a static arrangement, but even then it still requires a great deal of catching up in order to make up the ground here. The UK Government’s own analysis shows that the trade deal with New Zealand will bring in an increase of 0.03% of GDP over 15 years, with a figure of 0.08% of GDP from the Australia deal, all while the UK trade and co-operation agreement with the EU leads to a 4.9% fall for the UK over the same period.

The Scottish National party has a simple yardstick on trade deals: we will support those that are good and oppose those that are poor. Nothing that has come back alters our view of this particular deal.