Read Bill Ministerial Extracts
Drew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)(4 years, 5 months ago)
Public Bill CommitteesQ
George Riddell: Two initiatives have been undertaken recently. One is that the Office for National Statistics has launched its experimental trade in services datasets, which it is looking to continually improve. Anything that supported that initiative would certainly look good. For the past Trade Bill, in the previous Parliament, a number of organisations, such as TheCityUK, put forward written evidence with more concrete suggestions. I do not have that with me, unfortunately, but I am happy to share it.
Coming to the point on the data being notoriously unreliable, both the US and the UK claim that they have a trade surplus in services with each other. There have been a number of attempts by statisticians on both sides to try to bottom out why that might be the case. It goes to show that, often, trade in services statistics are indicative and a good rule of thumb, but putting too much faith in them is not necessarily a wise move.
Q
Professor Winters: I confess that I do not know how to draft it in legislation, but I would suggest that one has something in the Bill that gives concrete form to the statements that we have that the Government expect not to use it to make major changes, and that such changes would come with primary legislation. At a practical level, one would need some sort of early-stage scrutiny to identify issues that were mere technicalities or minor issues, and to flag up larger issues that might require primary legislation.
I am afraid I am not a draftsman. I do not know how to write that, but it seems to me that that is what we require. This is a very sensible, pragmatic tidying-up Bill, but it seems to have loose ends that might, under some circumstances, lead to places other than those that the Bill says it is intended to cover, and more than the House would wish.
Q
George Riddell: In terms of the service sector, I would say that the two biggest elements are definitely the continuity agreements and the government procurement agreement. The government procurement agreement, although it largely covers goods, has several services provisions in it that are particularly important for small and medium-sized enterprises that operate cross-border government procurement contracts.
On the continuity agreements, it is difficult to say exactly, because there is different coverage in each of the continuity agreements for different service sectors. Broadly speaking, you have the horizontal elements in the more advanced trade agreements, such as that with Korea, which covers investment and establishment for service providers, and additional mobility provisions for short-term business visitors and the suppliers of services.
There are also, in some of those agreements, additional commitments on the digital economy, and how the UK and the third country can co-operate in order to foster more digital trade, which is of growing importance, particularly in the light of the pandemic that we are experiencing. I know that many of the people here have dialled in or participated remotely in these sittings, so it is a very pertinent topic for the service sector.
Q
Richard Warren: As Ian Cranshaw noted earlier, we have been on this journey for quite some time. We first started having discussions on the possibility of a Trade Remedies Authority at the back end of 2016. At that stage, there obviously was uncertainty. I do not think the UK Government had thought about—no one in the UK had—the need to establish a Trade Remedies Authority. Obviously, after the Brexit vote in 2016, that became immediately apparent to the UK steel industry. So if there has been an assessment done, I suppose it was an unofficial assessment through the evidence that we provided and the discussions we had with Government, and it became evident that this was an absolute must and there was no question that the UK would need an authority. I am happy to provide further data or evidence to the Committee afterwards.
If you look at the impact that trade remedies have had on imports and on dumping into the UK, the evidence speaks for itself. It is clear. China was exporting perhaps 500,000 tonnes to the UK in 2015-16. That has been reduced to 100,000 tonnes because of the measures that have been in place on the key steel products that it was found to be dumping and that were subsidised by the Chinese state. If that had gone on—it was a major cause of the difficulties that the steel industry was undergoing in 2015-16, when we saw a major restructure of the steel industry and new ownership—and those measures had not come in, the situation would have been far more dire, and the modest recovery that the steel industry saw in 2017-18, which has obviously been knocked off course by recent events, certainly would have been far slower and far more fragile.
Q
Ian Cranshaw: In chemicals, the REACH regulation is the key documentation, and that is stored by ECHA. We would accept that if you had to design a system now, it probably would not look a lot like what it does, but here we are 13 years after the ECHA database and the REACH regulations were introduced. UK companies alone have spent upwards of £600 million in furnishing that information on to the database, so you can appreciate the nervousness that, if we do not negotiate a deal with the EU that gives us access to that data, we will be back to a point where UK companies will have to rebuild a new database under UK REACH. There is no suggestion from DEFRA that we would move away from REACH. Globally it is seen as the gold standard for chemical regulation, so it is critical that we secure access to the data.
It is worth pointing out that UK companies are the second largest contributor of data to the information held on the ECHA database. Not only have our companies paid for the ability to use those chemicals, but, through their own innovation, research and capability, they have contributed significantly to the value of that database. It is crucial that we secure access to the data.
Q
Richard Warren: From our perspective, in terms of continuity—obviously, putting the EU to one side—the most important market is Turkey, with 300,000 tonnes and 8% of exports. It has a value of around £350 million. I can provide further details afterwards, if that would be useful. Without a shadow of a doubt, in terms of carrying over, that is the most important agreement.
There are other important markets, perhaps less for the sector as a whole but for individual companies supplying them. Manufacturing sectors in certain countries are very important, such as South Africa, Mexico and some of the north African countries I mentioned earlier. In terms of opportunity, we are essentially establishing what we already have, so it is difficult to see that there is a brand new opportunity. I wouldn’t say that it isn’t hugely important—we want to continue to trade with these countries and to make sure that we do not have a resumption of tariffs, but fundamentally the position is not going to be any different to what we currently have.
It depends on how you view the question. If you view it as, “If we don’t have this, you will have tariffs,” then there is a huge opportunity, because we would be in a worse situation than we currently are. If you view it from how we currently are, we are looking at exactly the same situation.
Drew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)(4 years, 5 months ago)
Public Bill CommitteesQ
For Tom, a recent High Court decision about Heathrow airport ruled that we could not have Heathrow airport because it was counter to the Paris climate agreement. Are there risks if we do not put extra environmental standards in the Bill that future trade agreements will be brought into question, as that national policy statement was?
David Lawrence: In terms of downsides to scrutiny, we are very much calling for scrutiny and I do not think there are any really obvious downsides. As I said, it is an area where, perhaps unusually, we are very much aligned with the private sector. A lot of businesses are also calling for similar things.
In terms of developing countries, as you will know very well, Fleur, there are a lot of organisations in the UK representing the interests of developing countries and a lot of foreign aid organisations who would like to be able to see what is going on in trade negotiations and be able to represent those interests to MPs, but at the moment there simply are not those scrutiny proceedings in place. Obviously, the process of scrutiny takes time, so maybe it would slow things down a bit, but on the long-run game of improving public trust in what the Government are doing and public understanding of how trade deals work—where they are beneficial and where they are potentially harmful—it is absolutely worth having those additional scrutiny proceedings in place.
Tom West: The Heathrow decision is a really good example of how important it is to make sure that all of our policies are compatible with our environmental goals. While we might not get a direct read-across in this case here, what it does demonstrate is that we need to make sure that what we are doing in all areas is compatible with meeting Paris and our other environmental goals, too. We have got net zero and an Environment Bill that could provide a framework for some ambitious targets, and we need to make sure that that is compatible. Making sure that we have got that clear framework in legislation will necessarily help with that.
Q
David Lawrence: We have very similar concerns in relation to devolved nations. It is obviously tricky because you do not want to necessarily end up in a gridlock situation where an entire UK-wide trade agreement is blocked because one of the nations has a veto, but at the same time there will be parts of trade agreements that primarily or only affect the industries in the devolved areas and that cut across regulations that are normally devolved competencies. In those areas, we would like that to be the decision of the devolved authorities. Obviously, there is a role for consultation throughout that, as there has been through the Brexit process. I know it has not been handled perfectly in the Brexit process.
More generally, it is about applying the normal standards of democratic scrutiny that we would expect for other areas of domestic legislation to trade agreements, in recognition that trade agreements have a large and wide-reaching domestic effect. If the Government want to build a new railway like HS2, they have to put it in a Bill that has all of its Commons stages, layers of scrutiny and Committees like this one, and then it goes to the Lords and it comes back again. It goes back and forth, the media get involved and people write to their MPs about it. That is just for a railway and this is for a trade agreement that, if the Government are to be believed, is central to the UK’s post-Brexit industrial strategy, and MPs do not have anywhere near that level of say over it. So what we are calling for is similar to the way in which other regulations and big projects and proposals are treated with the level of democratic scrutiny that they receive.
Tom West: Yes, I agree. With environment, agriculture and fisheries all being devolved, this is obviously really important to our concerns, too. Clearly, there is a need for better mechanisms to be in place to make sure that the four Governments of the United Kingdom can work together to have the appropriate conversations about how we are going to work these things out. It is not straightforward exactly how it will work, but clearly it needs to be done so that the devolution settlements can be respected, and, as David says, so that the proper democratic input into trade agreements can be had.
If there are no further questions from Members, I will thank the witnesses for their evidence and we will move on to the next panel. Thank you, David and Tom.
David Lawrence: Thank you.
Tom West: Thank you.
Examination of Witness
Sam Lowe gave evidence.
Trade Bill (Eighth sitting) Debate
Full Debate: Read Full DebateDrew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Drew Hendry's debates with the Department for International Trade
(4 years, 5 months ago)
Public Bill CommitteesNew clauses 9 and 17 stand in my name and those of my hon. Friends. New clause 11 stands in the names of the hon. Member for Dundee East and the hon. Member for—
Inverness, yes. There we are. I knew that inspiration would be with me.
The explanatory statement shows that new clause 11 is entirely consistent with the other new clauses. It is about the protection of
“the quality of domestic food supply by ensuring that imported foodstuffs are held to the same standards as domestic foodstuffs are held to.”
Labour has tabled a new clause 17 on animal sentience. It is important that the Trade Bill is consistent with other pieces of legislation on animal sentience. The Government have agreed to introduce, under an animal welfare and recognition of sentience Bill, a process to ensure that any future legislation or policy is assessed against animal welfare standards. This should be recognised in the Trade Bill as one of the most important areas that could undermine animal welfare standards, and those standards should be outside the ambit of the trade negotiations.
We had a similar debate on Tuesday, but I will spend a few moments on this because a few things have happened since then, such as the Secretary of State appearing at the International Trade Committee yesterday. She said no, but what did she say no to? She did not say no to taking action on food standards, and the Minister did not say no on the same thing on Tuesday. They are very good at making it clear that food safety will not be affected, but they do not talk about food production standards. We have pride in this country in our high standards not only of safety, but of production and animal welfare as well, and those are the elements that have so far been missing in what Ministers have said.
In trade talks the more powerful side wins, and if that more powerful side wants a reduction in our food production standards, it is very difficult to resist if we want a trade agreement with it, and that is the problem. We have tabled a new clause very similar to one on the Agriculture Bill, and we have done so because Ministers told Back-Bench Conservative MPs that the Trade Bill was the place for such an amendment and for this to go into legislation, so we have done what the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Banbury (Victoria Prentis), told us we should do.
I wonder whom British consumers will believe. Will they believe Ministers who will not quite bring themselves to guarantee food production standards or take the action needed on animal welfare, or will they believe the British Standards Institution? Its chair, John Hirst, was quoted in The Times today, expressing fears over a potential American attempt to
“replicate the approach to standards”
agreed in its deal with Canada and Mexico, which President Trump’s officials see as a model for future accords. He says that such an accord would
“undermine our sovereignty over regulation”
by allowing the US to replace UK standards with its own. The Government should perhaps listen to Mr Hirst.
If the Government do not want to listen to Mr Hirst, they could listen to the executive director of Waitrose, James Bailey, who has said that a trade agreement with the US that loosened food standards—production standards—would amount to an “unacceptable backwards step”. He, very commendably, has said that Waitrose will never sell chlorinated chicken, hormone-treated beef or meat from animals subject to extensive use of antibiotics.
I want to speak to my new clause 11. Trade deals can put pressure on food standards and lead to the importation of food of a low standard. We know, for example, that the US Administration wants the UK to lower its food and animal welfare standards precisely to allow the export of products currently banned in the UK. The new clause includes a ban on the importation of food produced to standards lower than those currently applying in the UK.
The US and other countries have far lower animal welfare standards and adopt practices that are illegal in the UK for health and environmental reasons, such as the production of chlorine-washed chicken and hormone-fed beef; use various pesticides outlawed in the UK; and produce genetically modified crops, which are completely outlawed in Scotland. We believe that the quality of Scotland’s food and drink produce, and indeed that from elsewhere in the UK, as well as the standards of production, are essential to retaining our established international reputation in those products.
Is the new clause not an opportunity for the UK Government to do the right thing and prove to the public that they are not trading away food standards and Scotland’s international reputation to the highest bidder? If they do not accept it, will people not justifiably conclude that that is part of their plan?
I think people are deeply concerned. No matter how many times Ministers give assurances from the Dispatch Box or elsewhere—Conservative MPs know this—because of what is said by our negotiating partners, there is deep concern among the public and, in particular, those who work in agriculture about standards that may be reduced. My hon. Friend is therefore absolutely right that by accepting various amendments or new clauses, the Government have an opportunity to cement our standards and rule out in negotiations the reduction of standards rather than simply by words in a speech.
New clause 12 in effect does two things: it affirms the UK’s rights and obligations under the agreement on the application of sanitary and phytosanitary measures in appendix 1A of the WTO agreement; and it prohibits the import of food into the UK if standards in the exporting country are lower than those in force here. I do not think there is anything contentious about that, nor do many people in the real world. I suspect the Minister will not be at all surprised that various campaign groups, including Global Justice Now and the Trade Justice Moment, support such objectives.
The list of supporters for such measures is deep and wide. Scottish Land & Estates said:
“Scotland’s producers need guarantees from the UK Government that domestic production and environmental standards are upheld as part of future international trade deals. Our extremely high environmental and food safety standards are amongst our key selling points, and this must be protected after we leave the EU to ensure we don’t find ourselves in a ‘race to the bottom’.”
As NFU Scotland has said that it is concerned that the UK Government’s approach to future trade policy creates the potential for the importation of agri-food into the UK produced to an inequivalent and uncompetitive standard of production, one would think the UK Government should listen. The new clause would ensure that the UK Government had a duty to protect the quality of domestic food supply by ensuring that imported foodstuffs are held to the same standards as domestic foodstuffs are currently. I commend it to the Committee.
New clause 12 would ensure that the UK Government had a duty to restrict market access to healthcare services, including medicines and medical devices. We tabled the new clause precisely because trade deals have the potential to negatively impact health services. Although the UK Government have repeatedly pledged that the NHS is not on the table in trade negotiations, leaked documents detailing conversations between UK and US negotiators reveal that health services have been discussed, including the US “probing” on the UK’s health insurance system—whatever that means—and that the US has made clear its desire for the UK to change its drugs pricing mechanism.
Is this not a similar situation to that in the previous debate on food standards? The Government could easily make a commitment to rule out these things—to do the right thing and show the public that the NHS and medicines are not at risk. They could reassure people by putting that in the Bill and ensuring it does not happen. Otherwise, they are just saying to the public, “This may well be part of the plan.”
My hon. Friend is absolutely right. As in the previous debate, the Minister has said that there will be no compromise on standards. I do not doubt for one second his sincerity, but let us just put it in the Bill so that everyone is absolutely satisfied. In that sense, my hon. Friend is absolutely right—let us rule it out in legislation.
Drew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Drew Hendry's debates with the Department for International Trade
(3 years, 9 months ago)
Commons ChamberLords amendment 1B covers one of the most glaring omissions from the Bill and it simply serves to underline the ideologically driven and confusing motives of the Government, who have already dealt so much damage to people, families and businesses right across Scotland and the other nations of the UK—and for what? It is supposedly for undiluted parliamentary sovereignty, yet the Government have not seen fit to give Parliament a role in setting the agenda on trade negotiations. That is extraordinary. It is damning of this Government, given the scrutiny arrangements that other Parliaments have around the world, including the EU’s, where they have control over both mandates and the progress of negotiations. The UK has now sunk to the bottom, relative to what is undertaken elsewhere.
Drew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Drew Hendry's debates with the Department for International Trade
(3 years, 8 months ago)
Commons ChamberYes; I am grateful to my hon. Friend for his comments. The problem is that this Lords amendment incorporates the original Neill amendment in its entirety and makes two adjustments. First, there are already trade arrangements with China, but they are pushed aside in this. It can only be an FTA, and it is a prospective one, which means that the Uyghurs are not going to get in front of the Select Committee at all. Secondly—this is very important—it opens the door, because of the definition, to any state activist who has nothing to do with the authority in that state. All QCs who have seen the amendment have accepted that this is a major problem, so we have dealt with that, made it a better arrangement and added the legal committee.
It seems to me that the Government simply do not want to have these judges involved. They say, “We’ll have a judge, if you want, on one of the Select Committees.” Does that not apparently make it another quasi-judicial committee? If the Minister does not mind me saying so, it is a bit sad that the Government could not have accepted this amendment. There was no need for us to be here today voting on it. This was a major compromise, and it would have settled everything.
My right hon. Friend the Minister knows that I have huge respect for him in the job that he has to do right now, but I simply say this. We have a chance tonight, following a very good statement by the Foreign Secretary, to send the message that we simply will not put up with this; we are not frightened of finding that this is genocide, and we are not frightened of saying it from the steepletops. We know that we have to stand up for those who have no voice. This Chamber has a history of doing that. It has an opportunity tonight to do that, and I am sorry that my Government, whom I hugely respect, do not think that they can do it. I urge Members to vote for this Lords amendment.
Madam Deputy Speaker, I notice that the countdown timer is running, but I assume that I get the Front-Bench privilege for this speech.
The hon. Gentleman certainly does. It is a mistake if the countdown timer is running.
Thank you, Madam Deputy Speaker.
The original intent of the Lords amendment on genocide was to bind the Government, to ensure that their trade policy was not actively engaging in propping up the economy of a country that was committing genocide. The SNP regarded that as being reflective of the bare minimum standards of what should be our commitments to human rights and global citizenship. I say “bare minimum” because much more power should be given to that commitment than was contained even in that amendment. We should see an approach along the lines of a comprehensive cross-departmental strategy aimed at preventing atrocities and binding the Government in their behaviour and intent. The original amendment from Lord Alton was a bit hingum-tringum; despite the fact that it was not nearly strong enough, we supported it, as it was at least a step in the right direction. Make no mistake: as we debate the text of this Bill, we are very far away from even that place.
Any idea that we are actively debating accountability on human rights, even on the terms originally intended, is blown apart by the very Government texts that the House is now considering. The Government have maintained that they do not need the law to reflect their commitments to human rights, and that they would not do anything to compromise them. Furthermore, they maintain that their so-called compromise amendment facilitates a new level of commitment, but as soon as one Minister pours honey in the public’s ears, another drops the mask and lets slip the poisonous truth that condemns those warm words as cozenage.
It is clear from the remarks of the Foreign Secretary, who is also the de facto Deputy Prime Minister, that there is absolutely no substance to the Government’s rhetoric about their being champions for human rights at every turn; shamefully, they are willing to actively pursue an unethical trade policy. If there was ever any doubt about the hollowness of the maxim of global Britain, it has rung out loud and clear in the Foreign Secretary’s words. The amendment backed by the Government is completely inadequate in checking their actions. It would bind them to naught, and it is crystal clear that in reality the Government would rather not be subject to any moral position or restriction on their trade policy.
The Government could have committed in the Bill to maintaining existing consumer and labour standards; they turned that chance down, and the public should ask why. The answer is because they are all too willing and ready to sacrifice them to get a deal—any deal. Anyone naive enough to think that that is not the case should look at what is happening with the NHS and human rights. The Government could have taken the opportunity to ensure the protection of all aspects of the NHS from private foreign procurement, but they turned the chance down. Why? Well, in a sign of the times, they have been busy allowing the sale of NHS GP practices to US companies, with the US health insurance giant Centene Corp quietly assuming control of the care of half a million patients in recent weeks. Donald Trump may mercifully be gone, but few will forget the rare moment of honesty when he confirmed that the NHS is on the table in a US-UK trade deal. We all know that it very much still is. His Tory cohorts are still here and have earned zero trust over their deeds and actions.
We now see the Government looking to shirk their commitments on matching their trade policy to our values on protecting human rights. Why? Again, we know exactly why, thanks to the words of the Foreign Secretary. The cat is not only out of the bag, but running feral, alerting the world to the fact that human rights abuses will not matter to the UK. This Government will forgive almost anything in their haste to get a deal—any deal. They turned down the chance to do the right thing. We can hear loudly and clearly that behind the scenes, this does not matter to the Government; publicly, we can see the Government retreating from their legally binding manifesto commitment to international aid spending. The amendment does not do justice to the intentions of Members from all parties who have sought to meet that commitment head-on.
The Government’s empty words on global Britain have no bearing on virtually any aspect of their policy on protecting the most vulnerable around the world, on how we determine any notion of responsibility for who the UK sells arms to, or now, apparently, who we trade with. If this issue were not so serious, it would be laughable that this Government are trying to rest on laurels that simply do not exist. They should wake up to the reality that the UK’s moral standing is already badly damaged. This legislation makes matters worse. With their actions today, the Government have done nothing to repair that standing; they are solely responsible for bringing it into such disrepute.
Today, as the UK Food and Drink Federation publishes details of how exports of beef, pork and cheese to the EU have been savaged, having fallen by more than 80%—for salmon it is 98%, which is in effect an utter wipeout of a major Scottish export—another poll shows that the people of Scotland have had enough of this attitude; it confirms majority support for independence, as does the long-term poll tracking. The people of Scotland see for themselves the economic and moral vacuums being created by this Tory Government. When they look at this shameful situation, they know that the only way to protect our international trade reputation, and to be represented in the way that they want, as global citizens, is if Scotland once again joins the international community as an independent nation.
Following that speech, I will return to the subject we are discussing. I thank the shadow Secretary of State for her generous words and her accurate quotation. None of us actually believed the process would take quite as long as it did when we began. On the point of order made by my hon. Friend the Member for Wealden (Ms Ghani), I am extremely distressed that she should feel frightened by the intervention of a foreign power in her actions in the House of Commons. Given the level of cyber-intrusion in the United Kingdom in general, it is perhaps something we should all be afraid of.
There are three brief reasons why I support the Government’s position, and I have set them out before. First, I do not believe we should make generic law on the basis of specific cases. The history of our legislation is littered with victims of unintended consequences, which come about when we make law in that way. We should have specific actions for specific issues, such as the actions set out by the Foreign Secretary today on the atrocious way the Chinese treat the Uyghurs. That is the appropriate way to proceed.
Secondly, I believe that the House can vote down any free trade agreement through the Constitutional Reform and Governance Act 2010 process. If a preferential free trade agreement with China was proposed that gave China greater access to the United Kingdom market than it would have under World Trade Organisation regulations, we would already have the ability to block it; but I do not believe, for a range of reasons, that we are likely to see that any time soon. The trade conditions, never mind the human rights conditions, mean that is not going to happen.
Thirdly, I do not believe we should restrict the right of the elected Government and the House of Commons to implement policies on which a Government were elected. That is the point of principle that I have raised in every single debate we have had on this issue. The House of Commons should reject unwarranted intrusion, whether by an unelected Lords Committee of senior judges or the courts, on to the rights of democratically elected Governments to implement the policies on which they have been elected. This House should not put limits on what they can do, or, moreover, allow elements outside the House of Commons to do so. That would set a constitutional precedent that we would come to regret in time, whatever the good reason was for considering those changes.