Trade Bill

Baroness McIntosh of Pickering Excerpts

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Tuesday 6th October 2020 Grand Committee

The message of the last election was to take back control. There is no answer to the issue of taking back control because you cannot have it both ways. If we are taking back control, that must mean that parliamentary authority is present in all that we do and that there is an effective means of scrutiny. Without that, we are not taking control; we are giving control to a group of unrepresentative people, bearing in mind the significant dynamics of the ideologues in Number 10. This is an important amendment and I am grateful to have had the opportunity of hearing first hand my noble friend Lord Hendy introduce it.

[Baroness McIntosh of Pickering (Con)]

My Lords, I am delighted to follow the noble Lord, Lord Judd. I will speak in particular to Amendments 52 and 94 in the name of the noble Lord, Lord Stevenson of Balmacara, to which I have appended my signature. I would like to use this opportunity to probe my noble friend on the precise state of the dispute resolution mechanism generally, as well as in relation to ISDS, but I have a lot of sympathy with other amendments in this group.

I will leave the details of the amendments to the noble Lord, Lord Stevenson of Balmacara, but, using them as a vehicle, I refer to the Library Note, which states on page 8 that

“the Government states it may need to implement the results of an arbitration/alternative dispute resolution decision under a continuity agreement.”

On page 9 of the Explanatory Notes, the Government state:

“This could include, for example, implementing decisions made by a joint committee of the parties set up under a trade agreement or implementing the results of an arbitration/alternative dispute resolution decision.”


I will refer to some examples, although not as many as we had from the noble Lord, Lord Hendy, in his excellent opening speech on this group of amendments. There does not seem to be any parity given, in the EU application for the review of subsidies before the World Trade Organization, to Boeing. The dispute that the EU—and through it, the UK—has brought with regard to America giving subsidies in large measure to Boeing does not seem to have got very far very quickly, whereas the decision taken by the US Administration against the EU for the claim that was brought for subsidies and action for Airbus brought a very swift response from the US that has in particular harmed Scotch whisky.

In answer to the noble Baroness, Lady Chakrabarti, I entirely endorse what my noble friend Lord Lansley said: one of the reasons we are here is as legislators, whatever background we are from. I declare for the record that I am a non-practising Scottish advocate.

Scotch whisky is our largest export of food and drink—probably one of our largest exports of any product—and it suffered a 27% decline in exports in the fourth quarter of 2019. This has brought enormous tension within the UK. The Scottish Trade Minister has said on numerous occasions—most recently as reported in the Times this weekend, or perhaps today; I am not sure—that the Scottish Government would like to see a much more rigorous approach by the UK Government and the EU as a whole to see these subsidies lifted. It raises a more general question. I understand that the Trump Administration have made a general threat to walk away from the World Trade Organization mechanism.

So I will use this little debate to ask my noble friend: what is the status within the continuity agreements, particularly those that have already been signed, of the dispute resolution mechanism? Has it been squared off with the devolved Assemblies? Are they all in agreement as to what the mechanism will be? Does my noble friend share my general concern that it takes a woefully long time for a dispute resolution to be reached under the World Trade Organization—something that is now compounded by the threat on the table by one of the biggest players to walk away? In addition, can my noble friend tell us what the status is with the devolved Governments, and what the dispute resolution mechanism is that has currently been agreed under those rollover agreements?

I place on record my concern at the impact on one particular product, which happens to be our major food and drink export, beyond doubt—Scotch whisky—and ask when my noble friend the Minister might expect a resolution.

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

My Lords, the noble Baroness, Lady Bennett of Manor Castle, has withdrawn, so I now call the noble Earl, Lord Caithness.

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[The Deputy Chairman of Committees (Baroness Finlay of Llandaff) (CB)]

I remind noble Lords to switch off devices while we are in Grand Committee. It is quite disturbing and disruptive.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank the noble Lord, Lord Grantchester, for introducing this group of amendments. I congratulate the noble Lord, Lord Purvis of Tweed, on beating me to the starting post. I, too, pay tribute to my noble friend Lady Fairhead on this amendment, which had cross-party support as an amendment to the Trade Bill 2019 in the previous Parliament, and for her patience in meeting all of us who were involved in its drafting. She was very kind in taking different parts of the various groups of amendments, and it is bewildering to see that it is no longer part of this Bill.

I pay tribute also to those campaigns. The noble Lord, Lord Grantchester, referred to the Daily Mail. I add the Farmers Guardian and, closer to home, the Yorkshire Post. Yorkshire has a massive food cluster, in terms of farmers and food producers and processors, so this is a subject that is very close to their heart. The background to Amendment 23, as far as I can see—and also Amendments 24 and 25, which I shall come on to in a moment—is that it should reflect the work and the debates and the amendments on the Agriculture Bill, as the noble Lord, Lord Grantchester, set out. It also reflects the manifesto commitment, with which the Minister will be even more familiar, that we want to have high environmental standards and animal welfare going forward in our rollover agreements and in future agreements as well.

I go further and say that we have to have fair competition and a level playing field. I would like to have an assurance today from the Minister that he expects that imported food products will meet the same standards and that it is not the intention of the Government to allow in food products which will actually undercut our own producers, and then to proceed to place a tariff on them, with a label on the finished product to say that that is what it is. “This is chlorinated chicken, it does not meet our animal welfare standards, but it is safe to eat if that is what you want to eat.”

This takes us back to the very sorry situation we found ourselves in under—dare I say it—a previous Conservative Government, which I supported, where we unilaterally imposed a ban on sow stalls and tethers but allowed producers to produce pork with sow stalls and tethers in Denmark, Poland and other countries and then allowed those imports to be introduced onto our supermarket shelves. The consumer did not understand the farm tractor label and went on to buy on price, and the result was that more than 50% of our pig producers went out of production almost overnight. Surely, that cannot be the intention of the Government in this case. I make a plea to my noble friend to reinstate the original clause by adopting the amendment, either today or on Report. That is what most of us would like to see.

I thank the noble Baronesses, Lady Henig and Lady Ritchie of Downpatrick, for lending their support to Amendment 24. I would like to add food safety to this for the reasons that we discussed at the time with my noble friend Lady Fairhead, and which I repeat now. The case has been strengthened by the reference made by my noble friend Lord Gardiner when summing up the Second and Third Readings of the Agriculture Bill. He referred to the multiple protections that the Government have put in place, not least the role of the Food Standards Agency and Food Standards Scotland to which the noble Lord, Lord Rooker, referred. Keeping food safety in Amendment 23 would protect that.

On Amendment 25, I again thank the noble Baronesses, Lady Ritchie of Downpatrick, and my almost noble friend the noble Baroness, Lady Jones of Moulsecoomb, for supporting this amendment. I would like to put my noble friend Lord Trenchard’s mind at rest because when we have these debates he frequently says that he would like an assurance from the Minister that whatever we negotiate will be WTO-compliant. If he looks at the World Trade Organization pages, he will see:

“Environmental requirements can impede trade and even be used as an excuse for protectionism. The answer is not to weaken environmental standards, but to set appropriate standards and enable exporters to meet them.”


That is what we are trying to do here. We want to ensure that we make provision through any future regulations under the Bill—or any future trade agreement —that those regulations will not have the effect of lowering animal health, hygiene or welfare standards, the protection of the environment, food safety, hygiene, traceability or human and workers’ rights below EU or UK standards. The World Trade Organization goes on to say that we should be looking to have higher standards that could be met by all those wishing to participate in a particular free trade area agreement.

I will conclude by drawing my noble friend’s attention to the Dimbleby report that he was kind enough to read over the weekend. The executive summary on page 7 of National Food Strategy Part One states:

“Grasping the once-in-a-lifetime opportunity to decide what kind of trading nation we want to be. The essence of sovereignty is freedom—including the freedom to uphold our own values and principles within the global marketplace. In negotiating our new trade deals, the Government must protect the high environmental and animal welfare standards of which our country is justly proud. It should also have the confidence to subject any prospective deals to independent scrutiny: a standard process in mature trading nations such as the United States, Australia, and Canada. If we put the right mechanisms in place, we can ensure high food standards, protect the environment and be a champion of free trade.”


I would like an assurance from the Minister today that that is what he intends and to put at rest the minds of farmers such as Mrs Joan Riddell who has written to me from Banbury in Oxford. She wants an assurance that the high standards of our farmers in this country will be met. Will my noble friend say whether that is what we intend? What is the status of the Dimbleby report? Sadly, the Government will not have responded to it before we have passed the Agriculture Bill or the Trade Bill here or in the other place. Presumably, if the Government have asked Henry Dimbleby to report on this matter, they intend to follow his advice.

[Baroness Henig (Lab)]

I am speaking to Amendments 20, 23, 24 and 25. It is a great pleasure, as ever, to follow the noble Baroness, Lady McIntosh of Pickering, with whom I am in complete agreement. Ministers keep emphasising that this is a continuity Bill, no doubt to reduce its significance in laying a framework for future legislation in relation to trade deals but, as we have already heard, in one area this Bill is not a continuity Bill in the sense that it does not retain the crucial compromises relating to standards and regulations which were agreed on Report of the previous Trade Bill with the noble Baroness, Lady Fairhead.

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[The Deputy Chairman of Committees (Baroness Finlay of Llandaff) (CB)]

My Lords, I have had a request to speak after the Minister from the noble Baroness, Lady McIntosh of Pickering.

[Baroness McIntosh of Pickering (Con)]

My noble friend Lord Grimstone has just confirmed my worst fears about this interchange of terminology between food safety and food standards. We owe the noble Lord, Lord Purvis, a great debt of gratitude because he clearly stated what Heather Hancock, as chair of the Food Standards Agency, has said on numerous occasions: that our current food safety standards can be changed overnight by the passing of a regulation—that is, a statutory instrument. I think he said that that could happen via the negative procedure, not even the full affirmative procedure.

There we have it. That is the problem. We are not even speaking the same language, which concerns me greatly. On food standards, whatever chemical you want to rinse with—such as chlorine—or hormone you want to inject your beef with, it is not something that the consumers of this country want to consume. I just wish that my noble friend Lord Grimstone would accept that this goes to the heart of our concern, reflected in this group of amendments and the other amendments that we will come on to when we discuss the International Trade Commission and what the future criteria will be.

It is not that the chicken or beef might be unsafe to eat; it is that the product does not meet the high standards of production that our farmers must meet. It will therefore undercut our farmers, who could potentially be put out of business. That is precisely what happened under a previous Conservative Government in the mid-1990s; as a result, 50% of pig producers—who were largely in north and east Yorkshire, I might add—went out of business. That is a position to which I do not want to return. Will my noble friend accept that this terminology is extremely important and that what the noble Lord, Lord Purvis, said in regard to the regulation being amended literally by the sweep of a pen is what goes to the heart of this argument?

[Lord Grimstone of Boscobel (Con)]

My Lords, of course I apologise if I caused any confusion in my remarks —but I stand by them. It would require a statutory process for these food standards to be altered.