Trade Bill

Bill Esterson 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

[Bill Esterson (Sefton Central) (Lab) [V]]

Labour believes in free and fair trade. International trade will play a vital role in how we recover from the biggest economic shock since the second world war, but we cannot return to a system of unscrutinised trade deals that open the door to lower living standards and higher carbon emissions. The Bill should provide a framework for trade policy, create a trade remedies regime that works for the whole country and give people the confidence that trade deals will be properly scrutinised by MPs and civil society, but it does very few, if any, of those things.

International trade agreements have the potential to undermine our public services, favouring foreign multinationals eyeing up our NHS, for example. They can be used to undermine workers’ rights here and abroad, and to damage food safety and animal welfare. They can prevent action to tackle the climate emergency. That is why there is so much concern about the Bill and why the lack of scrutiny envisaged under it is wrong—wrong for the agreements covered by the Bill and wrong because of the precedent it sets for future trade agreements, such as that with the United States. My hon. Friend the Member for Wirral West (Margaret Greenwood) was one of a number of Members who expressed similar concerns. My hon. Friend the Member for Bradford East (Imran Hussain) called for human rights to be strengthened, and not ignored, as part of trade negotiations.

My hon. Friend the Member for Bristol North West (Darren Jones) gave an excellent analysis of the case for investment in our manufacturing base, which of course requires a trade remedy system that acts in the long-term interest of manufacturers and does not give equivalent importance to temporary consumer gains from unfairly subsidised imports. In fact, the hon. Members for Dudley North (Marco Longhi) and for Stoke-on-Trent Central (Jo Gideon) gave perfect examples of what can go wrong when low prices for consumers are put first, only to see workers in domestic manufacturing lose their jobs.

The hon. Member for Dundee East (Stewart Hosie) was right when he said that trade agreements are about much more than trade. He also highlighted the lack of engagement with the devolved Administrations.

My hon. Friend the Member for Brent North (Barry Gardiner) did an excellent job of scrutinising the Bill last time around, as the then shadow Secretary of State. His description today of the weakness of the trade remedies system and what he called the Government’s view of Parliament as “an inconvenience” was again an excellent analysis of all that is wrong with what he called “this disastrous Bill”.

In last week’s Agriculture Bill, the Government blocked attempts to lock in food standards, and environmental and animal welfare protections. In a framework for international trade, rights and standards should include those proposed last week—not just food safety standards, but standards that do not deliver an unfair advantage from the cheaper production that results from insanitary conditions for livestock and often the use of GM foods to boost yields. The hon. Member for Tiverton and Honiton (Neil Parish) said that he was told last week that those were matters for the Trade Bill—perhaps the Minister will tell us whether that is true.

On continuity agreements, we told the Government what would happen when they tabled a similar Trade Bill to that in the last Parliament. We said then, and we say again now, that the new agreements need to be properly scrutinised by Parliament, by the devolved nations and by civil society. Twenty of the existing deals remain to be signed. Why? Because the third countries want better deals—deals that need proper scrutiny, the scrutiny so far absent from the 20 deals that have been signed already.

What is proposed is undemocratic. While we were part of the EU, the European Parliament carried out scrutiny and voted on new trade agreements. That scrutiny process has been deleted with nothing in its place. I hope that the Minister for Trade Policy, the right hon. Member for Chelsea and Fulham (Greg Hands), will take note that his hon. Friend the hon. Member for Huntingdon (Mr Djanogly) quoted promises of a new scrutiny regime made by this Government. He called for more scrutiny, not less.

My hon. Friend the Member for Preston (Sir Mark Hendrick) made similar comments, and my hon. Friend the Member for Belfast South (Claire Hanna) made the same point in the context of the way in which trade is a reserved matter with the potential to cut across delegated powers in the nations of the UK.

Labour believes that MPs should have unrestricted access to negotiating texts as they are formulated, with the power to analyse those texts with the technical experts of their choice. As the House of Lords European Union Committee has warned mere “accountability after the fact” for Government negotiators does not represent “a sufficient basis for” meaningful “parliamentary scrutiny”. The devolved Governments, employers and unions should also be fully engaged.

When the Minister responds in a moment, will he tell me whether he has considered how the proposed parliamentary scrutiny and approval of trade deals in the UK compares with that in Australia, which the Secretary of State in her speech said was a model of free trade? While he is about it, will he tell us about the systems in the United States, in New Zealand and in other similar democracies? Finally, I ask him what the Government have to fear about emulating the level of consultation, evaluation and affirmation of trade deals that we see in those countries.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the Minister, whom I ask to take no more than seven minutes, please.