Australia and New Zealand Trade Deals

Drew Hendry Excerpts

Monday 14th November 2022 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

May I extend my birthday wishes to the Minister, too? I will not ask him how many candles are on his cake, but I am afraid that I cannot hold a candle for the defence he gave for these deals. It seems that I am not alone. In addition to the right hon. Member for Camborne and Redruth (George Eustice), there seem to be many more Tory critics; I will refer to a few of them in my remarks.

First, a general debate is no replacement for genuine parliamentary scrutiny. The Government have failed to provide that, even though it was promised. The deals, lumped together in the debate, are one-sided and a betrayal of farmers. They threaten food security and animal welfare, reduce consumer confidence, find climate change expendable and do nothing to mitigate the enormous losses of Brexit. Quite possibly, they are also breaking international law. Yet again, no reason is provided to support this further exercise in UK self-harm. They simply double underscore the increasing risks of the UK and the need for Scotland to become a normal, independent country and to rejoin the world’s most successful trading bloc, the EU.

Let me cover those points in order and in more detail. When I say that they are one-sided deals, I am, as we have heard, quoting the current Prime Minister. He was right. Of course, given that his party is in power, he was also being generous. These are awful deals. They are unmitigated disasters. That is why the Government are refusing to allow Parliament to vote on them. These deals are the legacy of the previous Prime Minister and make as much sense as the infamous mini-Budget.

[Anthony Mangnall]

The hon. Member is making a point about whether we can vote on the deals. The reality is that having a vote on them would not change anything, as he full well knows. We are leading people down a path without clarifying how, under the CRaG mechanism, the votes would make no changes to the trade deals that we are debating.

[Drew Hendry]

I admire the hon. Member’s dexterity. Having been in the House when he has quite rightly criticised the lack of scrutiny offered by the Government, I understand that he is now in the employ of the Government and must sing a different tune. The fact of the matter is that this is not good enough.

[Anthony Mangnall]

Will the hon. Member give way?

[Drew Hendry]

No, I am going to make some progress.

Given that his party was in power, the Prime Minister was, as I have said, being generous. These are awful deals. They are unmitigated disasters and that is why Parliament is not getting the chance to scrutinise them properly. They will do similar harm as the mini-Budget to the sectors concerned. The current Prime Minister also said that they

“shouldn’t be rushing to sign trade deals as quickly as possible”.

We agree, but wait a minute: he is the Prime Minister! Why, then, is he allowing this to proceed? If he does not agree with it, is not letting it go through just another part of a grubby deal for power? It makes no sense otherwise.

The Government are keen enough to tear up deals such as the Northern Ireland protocol, yet they will not get around the negotiating table on these deals, even though they can do so. These deals are bad, very bad, for our farmers and food producers. The National Farmers Union president, Minette Batters, says of the Australia deal that

“this is a one-sided deal. When it comes to agriculture, the Australians have achieved all they asked for and British farmers are left wondering what has been secured for them.”

And well might they wonder.

She went on to say of the New Zealand deal:

“The government is now asking British farmers to go toe-to-toe with some of the most export orientated farmers in the world, without the serious, long-term and properly funded investment in UK agriculture that can enable us to do so. This is the sort of strategic investment in farming and exports that Australian and New Zealand governments have made in recent decades.”

This has a knock-on effect on our food security. These deals are bad policy at the worst possible time. The laissez-faire, couldn’t care, get it over the line Brexiteer ideology has de-prioritised domestic food production in support of importing cheaper—for now—lower standard food. That is dangerous and should be put on hold immediately. It sets a thumpingly bad precedent. The rest of the world is watching and wants the same one-sided access that has been squandered here.

[Anthony Mangnall]

Will the hon. Gentleman give way?

[Drew Hendry]

If the hon. Gentleman wants to pick up on that point, I will give way.

[Anthony Mangnall]

I will, on food security. That is exactly why the Government passed, in the Agriculture Act 2020, the need to report back on food security—so that we could review the situation and ensure that this country has a full and complete level of food security. Does the hon. Gentleman not agree that, actually, that shows that we are taking it seriously, rather than ignoring it?

[Drew Hendry]

It will come as no surprise that I do not agree with the Government Member. These are damaging deals. They are one-sided and other people will want access.

Talks are ongoing with India, Brazil, Mexico, the Gulf states, the comprehensive and progressive agreement for trans-Pacific partnership countries and Canada. Will they now accept less than has been offered here? This might just be the damaging start of the process. No wonder the National Audit Office report says that the UK Department for International Trade is “taking risks” in its haste to sign new deals.

This is bad for consumers. Research by Which? found that 72% of people across the nations of the UK do not want food that does not meet current standards coming in through trade deals. And boy, do standards differ! In Australia, animal welfare standards are well below what is expected of our producers, particularly on pigs, eggs, sheep and beef, with cramped sow stalls, battery cages, the painful mulesing of sheep, huge herds of cattle in zero-grazing feedlots, and permissible live animal transport times that are twice the length of ours. Australian poultry farmers use 16 times—I repeat, 16 times—more antibiotics per animal than our farmers. The UK Government’s own advisers have voiced concern about the impact on UK farmers of the overuse of pesticides in Australia, including 144 highly hazardous pesticides.

[John Spellar]

But do we not also import chicken from countries with very questionable standards, such as Brazil, from which we also import beef, and Thailand? Are there not, even within the EU framework, considerable variations in animal welfare standards?

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[Drew Hendry]

If there are variations in standards, they are certainly nothing like this. The line that the right hon. Gentleman intervened on was 144 highly hazardous pesticides.

Perhaps none of this should come as a surprise, given that the former Prime Minister who brokered the deal employed the former Australian Prime Minister, Tony Abbott, as a trade adviser. Incidentally, I do not think that the Australians will return the favour. Abbott is a notorious climate sceptic. That is why the deal gets worse and worse, leaving aside all the obvious food miles involved in all the imports. He is on record as saying, when he was Australian Prime Minister, that his main role in trade talks was to ensure that his negotiators

“weren’t sidetracked by peripheral issues such as…environmental standards”.

It looks like he succeeded on both sides of the world—that is little surprise with this fracking Government, whose Prime Minister had to be shamed into attending COP27. Australian oil and gas production is set to increase substantially until at least 2030, with dozens of new coalmines, yet there is nothing on that on the UK Government’s agenda. It is no wonder that even Tory Lord Deben, the chair of the Climate Change Committee, condemned the Australia deal as “totally offensive”.

The Scottish Government called on the UK Government to prioritise the Paris agreement commitments, but the UK Government signed this deal with nowt. Indeed, we know that they actively scrubbed all the concerns in haste to get the deal signed, as departmental emails prove. There are no legally binding, enforceable climate change conditions in either deal. As I said, it is no wonder that they do not want the deals to be scrutinised. They may, however, have broken international law through the lack of scrutiny. They will probably just shrug their shoulders, of course, like their Prime Minister and former Prime Minister, because they are getting pretty good at lawbreaking on that side of the House. A formal complaint will, however, be heard by the Aarhus convention compliance committee.

These tragicomic deals are put into even sharper focus for this Brexit and bust Britain by the deal that the EU has just signed with New Zealand. Yes, you guessed it, Madam Deputy Speaker—it is on better terms than the UK deal, with actual farming safeguards. In the first year of the agreements, the UK will allow 12,000 tonnes of New Zealand beef into the UK, whereas the 27 EU countries will allow only 3,333 tonnes between all of them. By year 15, the UK will allow a whopping 60,000 tonnes, while the EU will have capped imports at 10,000 tonnes and will still apply a 7.5% tariff. The EU has secured a better deal on beef, sheep, cheese, butter and more.

Let us look at what we have lost through Brexit. In the EU, about half of our trade used to be paperwork-free, but 100% of trade is now bundled up in red tape. For every £490 of damage from the loss of EU trade, the deals combined will realise £3 at best. Scotland’s food industries are being painfully punished for something that Scotland voted against. Fruit and vegetable exports to the EU are down by more than half, and dairy and eggs are down by a quarter. Brexit is a disastrous economic hit that Scotland should not be forced to endure. As for the deals we are debating and those planned, we call on the Department for International Trade to publish an impact assessment of the free trade deals with Australia and New Zealand, and the proposed free trade deals with the CPTPP, India and Canada, with a particular focus on food and farming, showing the anticipated effects in all four nations.

The UK Government must stop gambling with Scottish farming, food production, manufacturing and trade. They have failed to protect our brands. They have gambled with food standards, workers’ rights and protections. They are reckless over the environment and climate change, and, as has been so obvious, they have turbocharged inflation and threatened people’s wellbeing, as well as diminished their household budgets. And yet, they have the brass neck—the utter cheek—to say that we should have supported this place, so often in a race to the bottom, especially in this international lunacy and trading failure.

People in Scotland can see that the risk is not in being a normal, independent country, but in remaining shackled to Westminster. They see that these one-sided deals do nothing for our farmers, damage our food security, lower standards, fail on animal welfare and climate change, possibly break international law and do nothing to mitigate the eye-watering costs of Brexit. The deals cannot be supported and it is clearer than ever that Scotland must return to the EU as an equal and normal independent country to escape Westminster’s basket-case ideologies.

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[Anthony Mangnall]

I will be in such dangerous territory if I give a straight answer to that—I am looking to see whether the Whip is behind me. I might say that there is significant expertise on the Trade and Agriculture Commission already and it is not for me to discuss how it is structured and in which Department. However, the issue was rightly raised by the former Chairman of the Environment, Food and Rural Affairs Committee and it gave a lot of hope to many Members with rural constituencies. We should use that Committee, and I know the Government take it seriously when it produces its reports.

We talk at great length about the flow of people, ideas and goods when it comes to the CPTPP. In these fractured and difficult times, it offers huge benefits: a significant opportunity to ensure that we can strengthen our relations in the Asia-Pacific, encourage the diversification of supply chains away from China and encourage greater trading between those countries that share like-minded ideas.

I could go on for a lot longer about the New Zealand agreement, but I will touch on just a couple of things briefly. Not many Members in this debate have mentioned the huge benefits that have been secured in digital trade. If we want to see where the United Kingdom has really led the world, just look at the benchmarking of what has happened in the UK-Singapore digital trade agreement. The terms in the New Zealand agreement are truly extensive. They will make an enormous difference to countries around the world, and perhaps an enormous difference to CPTPP, which may end up using those terms.

On the environment, some Members have said that perhaps Australia has lower standards. I do not look forward to the moment when Nicola Sturgeon goes on one of her ridiculous trade missions to Australia, after hearing the comments of the hon. Member for Inverness, Nairn, Badenoch and Strathspey about Australia and its standards. The New Zealand trade agreement is the first environmentally ground-breaking agreement in a free trade deal anywhere in the world, yet not a single Opposition Member has mentioned that.

[Drew Hendry]

Is the hon. Gentleman denying, for example, the animal welfare issues—how animals are treated differently, how they are raised and how they are transported—and the additions that are used in pesticides and the antibiotics? Is he saying that is not the case?

[Anthony Mangnall]

I am saying that when the hon. Gentleman compares the standards of Australia with those of Brazil, that is a massive insult to Australian markets and farmers. I do not think we should do that. When we compare other countries, we must not talk down our Australian counterparts. We must work with them.

[Drew Hendry]

The hon. Gentleman might want to withdraw that comment because I have not compared Australia with Brazil at any point in the debate or previously.

[Anthony Mangnall]

As I heard it, the hon. Gentleman used other countries as a reference and said that Australia was one of the worst. I am happy to go through the record in Hansard to look at that and I will certainly do so tomorrow.

It was also said—the hon. Member for Inverness, Nairn, Badenoch and Strathspey said this as well—that we are tying ourselves in knots in having paper documentation in relation to our trade deals. This is exactly the reason the Government are introducing the Electronic Trade Documents Bill, which small and medium-sized enterprises across this country have welcomed.

I have taken up far too much of your time, Madam Deputy Speaker, but the purpose is to state we must look at our trade deals in the round. We must look at them as opportunities to expand. We must ensure that we talk them up, not down, and, above all, we must ensure that all the businesses in our constituencies are aware of how they can use the support from the Department for International Trade to reach new markets. Businesses that go further afield are more resilient in all times—good and bad.

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[Lloyd Russell-Moyle]

My colleague on the International Trade Committee says I should speak up for this country, as if I should be some ambassador for the Government, ignore how they are running down this country and only talk about the good things. I am afraid that is not the role of the Opposition and of Opposition parties. What we do is lay out how we would benefit our country if we were in power, and what we would do better for our country where the Government have failed.

Let us talk about things that could have been included in this deal, but were missed—first, food standards. In this deal, animal and food standards are frozen in Australia, because this deal gives Australian producers a competitive advantage. While they will not go backwards, why on earth should they desire to improve their standards above ours? That gives them no advantage. Rather than saying, “We will slowly reduce barriers as you meet the standards that we are getting to,” it says, “You have absolute access to our markets, and don’t worry, you don’t need to change your standards either”—that is, apart from some wishy-washy wording about some long-term desire; mañana, mañana. We all know what those clauses mean: nothing. The only thing that matters is hard trade law, hard tariffs and quotas, and on that, we have been let down.

In fact, when we asked the Australian negotiating teams what they thought of this, they said, “All our red lines were met; we compromised on almost nothing. It is a fantastic deal.” Well, yes, it is a fantastic deal for Australia. If one side has all of its red lines met and the other does not, it is clear who the winners and losers are.

We could have gone further on free movement of people. The extension of our current visa arrangements for the free movement of students from two years to three years is pretty pathetic. Free movement should be afforded to countries that are of a similar economic situation to us—that is why we had free movement with Europe—and that have similar flows. We have similar numbers of people going to Australia and of Australians coming to us. The expansion by only one year is pretty pathetic and will not make much difference for most young people, who already had the right to two years and could extend it in Australia if they worked on a farm. It is pretty miserable and unambitious.

The same can be said for climate change. In the Australia deal, the wording is weaker than, and does not go beyond, the Paris agreement. Australia is a country of similar economic and legal profile, and it now even has a Labour Government—unlike us, but not for much longer, I hope—so why can we not negotiate something better? The clauses on climate change are the kinds of things that we would expect from negotiations with countries that are much harder to negotiate with, such as China or India—countries that are much more problematic on climate change.

[Drew Hendry]

The hon. Gentleman is making a powerful point about climate change. Does he not find it incredible that all the concerns that might have been raised about climate change and the Paris agreement were scrubbed in the haste to get the Australia deal through so the Government could meet some arbitrary deadline?

[Lloyd Russell-Moyle]

Exactly. I must wrap up— [Interruption.] Oh, I will continue, then. I thought you were giving me the eye, Madam Deputy Speaker.

That is exactly the problem. If we have higher climate change standards, workers’ rights or environmental standards, and we have free trade with another country that has lower standards, all we are doing is exporting British jobs, opening the door and saying to companies, “Don’t worry about our climate change rules, our carbon trading or the standards we expect you to meet. Go and set up your companies in that other country, and we will still import all the goods and services.” That is an unemployment note for British workers, and the Government are signing it constantly, with country after country, because they are obsessed with getting deals over the line rather than with the quality of those deals.

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[The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)]

It is a pleasure to have had the opportunity to listen to this debate, to contribute to it and, indeed, to close it on behalf of the Government, especially as I am doing so as the first Scottish Conservative Minister outside the Scotland Office for some 25 years, since the noble Lord Lang of Monkton, who served as Secretary of State for Trade in John Major’s Government.

May I start by thanking all Members for their contributions? It is clear from today’s on the whole positive debate that, on the whole, Members agree that the UK’s trading relationships with Australia and New Zealand are good for this country and for the world. In particular, the right hon. Member for Warley (John Spellar) was right: trade has enabled the development of civilisation and human progress, and we need to make the case for it much more strongly. As the hon. Member for Chesham and Amersham (Sarah Green) said, the trade deals that we are debating will bring positive benefits to our respective countries and economies. We also heard from my hon. Friend the Member for Mole Valley (Sir Paul Beresford), who is a walking example of the positive benefits that antipodean trade can bring to this country.

The agreements will remove tariffs, make it easier for British businesses to invest in Australia and New Zealand and deliver growth to every part of our country. They will also address trade barriers faced by small and medium-sized enterprises, such as lengthy costs and procedures, and allow our citizens to work more freely in both countries, thanks to new environmental commitments for businesses and travel. In short, the deals provide real benefits to real businesses and our respective countries at large.

Before I address the points about scrutiny and environmental protections on which most of the contributions have been focused, let me turn to the contribution by my friend on the Scottish National party Benches, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). Time and again, SNP Members turn up to debates on trade deals and ask questions in the Chamber and elsewhere, professing to be friends of Scotland’s farmers and to be standing up for Scottish agriculture as champions of rural Scotland. There is just one problem: the record shows that, sadly, contrary to the rhetoric, the SNP are no friends of rural Scotland and Scotland’s farmers.

[Drew Hendry]

Is the Minister able to name one single amendment that the Government have accepted from the SNP on any trade deal?

[Andrew Bowie]

I would like, instead, to run through how the SNP are failing Scotland’s farmers, given how strongly the hon. Gentleman professes to be championing them. If they were friends of Scotland’s farmers, they would have voted with us, as the National Farmers Union of Scotland wanted them to do, on the Genetic Technology (Precision Breeding) Bill. If they were true friends of Scottish farmers, they would have listened to the National Farmers Union of Scotland, which has accused the SNP Government of operating in an “information void” due to the lack of information and slow progress of Scotland’s post-Brexit agriculture Bill. They say that they are friends of Scottish farmers, but when did the Scottish Government’s own agriculture and rural development board last meet? It was 10 months ago. That is absolutely shameful.

In only the last two months, the SNP has been criticised by Scotland’s rural bodies for having no plan for rural economic growth and no plan to support Scotland’s pig farmers. Its policies threaten thousands of hectares of good agricultural land. Let us remember, too, that it would take Scotland’s farmers back into the common agricultural policy. I suppose that without Westminster to blame, they would need to join the EU in order to have somebody to point the finger at.

[Drew Hendry]

Will the Minister give way?

[Andrew Bowie]

I will not.

The SNP are not champions for Scotland’s farmers. They are political opportunists who think that they can still get away with professing one thing in this place and practising another in Scotland, tied as they are to their Luddite partners in Government, the Green party. The SNP is not pro-farming; it is anti-business, anti-growth and, as we know too well, anti-trade.

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[Andrew Bowie]

No, we have not. That is why our trade deals include specific measures to uphold them.

Before I go on, I must quickly correct the record. Earlier, the Minister for Trade Policy, who unfortunately has a prior engagement in his constituency, said in response to an intervention from the hon. Member for Rochdale (Tony Lloyd) that the climate change agreement in the deal was Australia’s first. It is not; it is actually Australia’s second. It also has an environmental chapter in its agreement to the CPTPP. In addition, the Trade and Agriculture Commission has separately confirmed that our free trade agreements do not require the UK to change our existing levels of statutory protection in relation to any areas.

I now briefly turn to scrutiny, which is incredibly important. Contrary to the description of the right hon. Member for Warley of the scrutiny process, and always remembering that CRaG was introduced by Labour, the Government have made extensive commitments to support robust scrutiny of all new free trade agreements. These commitments greatly exceed our statutory requirements and we have met every single one.

I hear and understand the concerns of the hon. Member for Rochdale and I accept the challenge to go further and do better, but the Australian FTA was examined by Parliament for more than seven months and the scrutiny period featured reports from three Select Committees. I praise the contribution of my hon. Friend the Member for Totnes (Anthony Mangnall) and it is sad that the Chair of the International Trade Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), is not in attendance today.

[Drew Hendry]

It is important to make it clear that there have been substantial travel disruption and difficulties from Scotland today, so it is unfair to single out an hon. Member who has been hit by that.

[Andrew Bowie]

I thank the hon. Gentleman; I was about to reference the travel requirements. I was not blaming the hon. Member for Na h-Eileanan an Iar for not coming, but it is sad. I am genuinely disappointed that he is not here to intervene on me at the Dispatch Box today.

By the end of the New Zealand CRaG period, hon. Members will have had the opportunity to examine the detail of the New Zealand deal for eight months. Of course, His Majesty’s Government also welcome the fact that we have a debate on both trade deals today.

It has been a privilege to speak in today’s debate. Our free trade agreements with Australia and New Zealand are game-changing deals. They demonstrate that the UK is a confident, outward-looking, free-trading country that is ready to grab the challenges and opportunities of the 21st century, and that we are a nation that is using the power of free trade to the benefit of great British businesses and the wider world—and as the right hon. Member for Warley said, to the benefit of all our people.

Question put and agreed to.

Resolved,

That this House has considered the Australia and New Zealand Trade deals.