Trade Bill

David Linden Excerpts

Tuesday 9th January 2018 Commons Chamber

[Angus Brendan MacNeil]

Absolutely; a number of deals with third countries will not be straightforward, and I will address the one with South Korea in particular —my hon. Friend pre-empts my speech very well.

It is striking that the UK, finding itself leaving the EU, now wants to ape exactly what the EU has been doing. It is as though the UK is tipping its hat to the EU and thanking it for leading the way—the EU has been doing such a good job that the UK wants to do exactly the same after we leave.

[David Linden (Glasgow East) (SNP)]

As we take back control.

[Angus Brendan MacNeil]

Indeed.

This is to be done by the UK establishing partner agreements with third countries that correspond as closely as possible to the agreements the EU has with those countries. As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) pointed out, South Korea is a particularly striking example because the 55% provision on rules of origin in the automotive sector cannot be replicated by the UK because the UK cannot produce the 55%. That would give South Korea licence to export to the UK automotive sector and disadvantage UK manufacturers. If we want to change that percentage, any Korean trade negotiator who hopes to keep his job for a further week is not going to just nod his head. He is going to look for some sort of quid pro quo. The question then becomes whether that is the ceramics of Stoke-on-Trent, Harris tweed or Stornoway black pudding. What could it be? Is it the whole of agriculture? We just do not know. That is the reality of how trade works. If I give something, I want something back in return. I do not just give something for nothing in a trade agreement.

The trade agreements to which the Bill applies include free trade agreements and international agreements that relate mainly to trade, other than free trade agreements where the other signatory and the European Union are signatories to the agreement immediately before exit day. Furthermore, all but five countries around the world are involved in regional trade agreements. Therefore, the UK would be joining company with East Timor, Somalia, South Sudan, Mauritania, and São Tomé and Príncipe in the gulf of Guinea. More strikingly, the UK will find itself with higher trade barriers with 27 countries in Europe, plus another 67 that are covered under another 40 agreements with the EU, making a total of 94 countries. When I asked the Prime Minister about that in the Liaison Committee, she seemed unaware that the UK could be disadvantaged in its trade with up to 94 countries.

Much could be said about the breadth of the powers that the Government are taking, but I think that the point should come from the Department for International Trade, whose second permanent secretary told my Committee that replication

“will depend as much on whether the party at the other end is prepared themselves or will seek to have some agreement that will allow common content. Until we have that detailed discussion on the replication, neither we nor they will be 100% sure of exactly how you will define what is as close as possible to what we have had with the EU.”

Time is against me, as I had hoped to have 10 minutes but have only two and a half remaining. One of the major issues that we have to consider is parliamentary scrutiny. Many countries allow parliamentary scrutiny of their trade Bills, including the United States, Australia, New Zealand and Canada—even the European Union allows that—so we are not asking for anything new. In the United Kingdom, whether it is Henry VIII powers or James II powers, which the Williamite revolution got rid of, this is the situation we might be left in. In trade negotiations there is give and take, with winners and losers within the negotiating countries.

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[Mark Menzies]

Absolutely. The Bill is about Britain looking outwards, not inwards. It is about dealing with the world as it is becoming, and it is also about ensuring that British companies and the British people working in those companies are best placed to take advantage of such opportunities. Only by earning our way in the world, not by making life difficult for British companies or creating uncertainty, can we pay for the public services that all of us expect and demand. By not voting for the Bill’s Second Reading, we would be making life even more difficult for British companies and sending countries around the world conflicting messages about what Britain will be like in a post-Brexit environment. I honestly ask Members to look at what the Bill is—

[David Linden]

A power grab.

[Mark Menzies]

Oh, we hear from a sedentary position that this is a power grab. We have not really heard from Scottish National party Members what they plan to do to support the Scottish whisky industry. If by voting against the Bill tonight, they frustrate the Scottish whisky industry, then shame on them. Conservative Members are committed to supporting British exports, dealing with the world as it is and continuing to battle for Britain.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

I start by commending my home dawg from the east side, my hon. Friend—my honourable gangsta—the Member for Livingston (Hannah Bardell) for an excellent rap. I think it has since made the news back in Scotland.

Speaking on this Bill is not really an area of comfort for me, but there are two reasons why I rise to oppose it and will be in the No Lobby this evening. One reason is an email from a constituent of mine, Gordon Shaw from Burntbroom. Some of these points were made quite well by the hon. Member for City of Durham (Dr Blackman-Woods), particularly on a UK trade policy that is guided by poverty reduction and sustainable development goals, which are sorely lacking in the Bill.

The other reason I rise to speak is that during the summer recess, after I was elected, I spent some time at Soapworks, which is based in Queenslie; McVitie’s, whose biscuits are produced in Tollcross; and Dewar’s, whose whisky is made in London Road in my constituency. A common theme that came through in all those visits was the importance of staying in the single market and the customs union. The speeches by the hon. Members for Edinburgh South (Ian Murray) and for Nottingham East (Mr Leslie) were very good, but I continue to be disappointed by the policy that has been adopted by Labour in relation to the single market and the customs union. I do not think that all those young folk who were chanting the name of the right hon. Member for Islington North (Jeremy Corbyn) in Glastonbury really expected that they were chanting for somebody who seems to be intent on a hard Brexit, albeit a cliff edge that we will be going off slightly later than with the Tories. Even at this late stage, I urge as many Labour Members as possible to come round to the position that they would favour continued membership of the single market and the customs union.

I want to speak about the arrogance of this Government, particularly over the use of Henry VIII powers. Over the course of my time not in this House but as a sort of political geek growing up, I would sit and watch BBC Parliament and see the hon. Members for Stone (Sir William Cash), for Wellingborough (Mr Bone) and for Christchurch (Sir Christopher Chope) all talk about the sovereignty of Parliament. They have been completely absent from this debate. They are not here to talk about the fact that this Government are taking back a number of powers and, in effect, trying to make law behind Parliament’s back. I think that is deeply irresponsible, and I am a bit disappointed that they are not here tonight.

I also want to talk about the lack of consideration that the Government gave to the consultation that took place. The consultation closed, and within 24 hours this Bill was published. That does not suggest that the Government are taking anybody very seriously. Some 11,500 people wrote into the consultation, and well over 50,000 people submitted a petition. I do not have a huge amount of faith in the British civil service at the best of times, but the idea that it has gone through all those consultation responses and come up with a Bill based on that is frankly laughable.

It is important to make sure that any trade agreements do not come at the expense of standards and rights, because one of the things that this Government do have a pretty cool record on is trade at any expense. We see that particularly with the Government’s very disturbing relationship with Saudi Arabia. Frankly, this Government are complicit in the murder of Yemeni children, because they are quite happy to sell arms to the Saudis, who drop them on the Yemenis. That is deeply unsatisfying.

The hon. Member for City of Durham made some points about fair trade. The Fairtrade Foundation has, rightly, been deeply disappointed by this Bill because it contains no commitment to developing countries.

On workers’ rights, Frances O’Grady, the TUC’s general secretary, described this Bill as “ramshackle” because it offers no protection for workers’ rights or protection for public services such as the NHS from foreign contractors. One of my concerns is the relationship with the United States. Mr Ross, the US Commerce Secretary, told the BBC that a “joint scoping exercise” had taken place in Washington, and the Government have said that they are keen to make sure that a free trade agreement would be one of the top priorities. Mr Ross later said that continued passporting of financial services and compliance with EU food standards on GM crops and chlorine-washed chicken are barriers to that future trade deal. I do not want to see a Government who are pursuing TTIP on steroids.

[Alison Thewliss (Glasgow Central) (SNP)]

My hon. Friend is making some excellent points about food standards within this trade deal. Does he agree that because of the different food standards that we and America have, if we accept a trade deal without scrutiny and without knowing what is in it until after it is signed, we leave our population at huge risk of having products such as infant formula that do not meet the high standards that the EU currently has?

[David Linden]

Absolutely. I very much commend my hon. Friend, who I know has done quite a lot of work on that particular area. One concern about the Bill is that MPs will not have the ability to rubber-stamp any of these trade deals, because that has in effect been taken away from us.

In my one remaining minute, I want to speak about the impact on the devolved Governments. The fact is that schedule 1 to the Bill means that the Scottish Government will not be able to use the powers to modify direct EU legislation, such as EU regulations. The Scottish Government need to be at the negotiating table when the UK Government are negotiating all these wonderful trade deals that we are told are going to happen. My final observation is that we were told throughout the entire referendum campaign that this was about taking back control. In all the suite of Brexit legislation going through the House of Commons, all I can see is that this is a power grab by the Government, and that is directly at odds with the devolved settlement.