Trade (Australia and New Zealand) Bill (Fourth sitting)

Debate between Drew Hendry and Anum Qaisar

Committee stage
Tuesday 18th October 2022 Public Bill Committees

[Ms Qaisar]

The SNP has proposed new clauses 1, 2 and 3 because we need impact assessments to fully examine the practicalities of these trade deals in matters of procurement, which is so important. I will begin with new clause 1. By examining the social, economic and environmental impacts, we can ensure that we are presented with a fair assessment. That is especially important, as we believe that the UK Government have rushed these trade deals and matters of procurement through Parliament with little to no scrutiny.

While the Bill is narrow in its focus on the procurement chapters of these two agreements, it is important to note the huge potential for imports to increase. Australia currently exports 5,000 tonnes of beef to the UK each year, but the agreement will allow 35,000 tonnes in the first year, increasing each year after that. We know that Australian producers do not have to adhere to the same animal welfare and environmental standards as Scottish farmers. It is a similar story with the agreement with New Zealand, under which exports to the UK beef market will rise to 68,000 tonnes by year 15 of the agreement.

Crucially, there are almost no benefits in this deal for Scotland’s food and drink sector. All this legislation achieves is to expose the Scottish agricultural market to the most export-orientated food producers in the world. Our new clause seeks to ensure that we can examine the impact of the deal. The UK Government’s own analysis shows that the deal with New Zealand will deliver a mere 0.03% of UK GDP benefit over 15 years, and the Australia deal will contribute 0.08%. Scotland has been forced against its will to trade outside the EU, tied to this UK Government, so that they can pretend Brexit is working. That is an undesirable position to be in, but unfortunately it is the position we are in, so we must try to protect Scottish interests as best we can. The impact of this agreement will be felt all across Scotland, so I urge colleagues to back new clause 1, as an impact assessment will improve this piece of legislation and future trade deals.

New clause 2 would provide for us to assess the impact of the implementation of the procurement chapters on hill farmers and crofters in Scotland every six months. Scottish producers are likely to be undercut by lower-quality goods in procurement, and regular impact assessment would allow us to keep track of any potential undercutting. It would also highlight the potential harm that this deal would do to Scottish farmers.

We know that Australia and New Zealand producers are not held to the high standards that Scottish producers are. The UK has put no environmental conditions on the agricultural products it will accept from Australia and New Zealand. The UK Government’s own advisers have conceded that pesticide overuse in Australia is a valid concern for UK farming. There are 144 highly hazardous pesticides authorised for use in Australia—many of the bee-killing variety—which is almost double the figure in the UK. Australian poultry farmers use 16 times more antibiotics per animal than British poultry farmers, and the Australian pig industry uses three times more antibiotics per animal.

While matters relating to food standards fall within the competency of devolved Administrations, they have no power to exclude imported products on the basis of how they have been produced. The Scottish Government have no power to exclude produce awash with pesticides and antibiotics from Australia, and already since Brexit the UK Government have fallen behind the EU on farm antibiotic standards. This undercutting of standards means that meat costs less in the UK if it has been shipped in from Australia or New Zealand. Where does that leave Scottish farmers? Analysis by Quality Meat Scotland has found that

“New Zealand beef farmgate prices are 25-30% lower than Scottish farmgate prices”

and that New Zealand lamb farm-gate prices are

“10% lower than their Scottish counterparts”,

undercutting Scottish farmers on price.

We are in a food security crisis within a cost of living crisis. New clause 2 would ensure that future generations of hill farmers and crofters in Scotland are protected. Last week, during the Bill’s evidence session, we heard from Donald MacKinnon from the Scottish Crofting Federation, who said

“I reiterate that it is so important that these trade deals are given the scrutiny that they deserve. The really important thing is that we consider all the potential unintended consequences—for our sector, in particular—of what may be well meaning motivations.”––[Official Report, Trade (Australia and New Zealand) Public Bill Committee, 12 October 2022; c. 32, Q39.]

None of us has a crystal ball to show us what potential unintended consequences may result from the legislation we are debating. Therefore, it makes logical and economic sense for the UK Government to commit to impact assessments and to back new clause 2.

Going beyond the unfair economics, we do not believe that the community-level impacts that these deals will have on our rural languages, rural local cultures and landscape and on the mental health of farmers, food processors and all those who support them across Scotland have been adequately taken into account. Therefore, supporting new clause 2 would ensure that we put Scottish hill farmers and crofters at the heart of this legislation. Crucially, having impact assessments could help to mitigate the damaging impact that these deals could have on Scottish producers. They would also ensure accountability, as we have stated that they would

“be laid before both Houses of Parliament and before the Scottish Parliament.”

Moving on to new clause 3, we also propose an impact assessment on geographically indications. The food and drink industry is vital in Scotland. Scotland is, of course, world-renowned for its production of whisky, beef and lamb.

[Drew Hendry]

My hon. Friend mentioned Scotch whisky, and having the safeguard of geographical protections is absolutely vital to that industry, as it is for many others, and I am sure she will touch on that. Is it not a small ask for the Government to include this, in a week where they have just abandoned their pledge to freeze alcohol duty, costing millions, and where their mishandling of the trade negotiations with India threaten even higher tariffs for the Scotch whisky industry, which is a massive export for Scotland? Of course, it sits very proudly in the UK balance of trade as well.

[Ms Qaisar]

I thank my hon. Friend for his intervention. He is correct, because there is real concern that these industries will be threatened by imitation products, which risks undercutting Scottish companies.

Geographical indications are of considerable importance for Scotland because, as I say, they protect the origins of our world-renowned products. Examples include Scotch beef, Scottish-farmed salmon and, as my hon. Friend said, Scotch whisky. The UK Government did not secure recognition of agrifood geographical indications in their agreement with New Zealand, which has, with the EU, now succeeded in gaining recognition of its agrifood GIs in its free trade agreements.

The UK-Australia deal only commits to letting the UK put forward potential geographical indications if Australia introduces bespoke GI schemes for iconic Scottish spirits and agrifoods, rather than including a full list of recognised GIs from day one of the deal, as well as the ability to enhance the list.

[Drew Hendry]

Does my hon. Friend find it strange that this has been omitted from the Bill and has not been considered until now, given the impact on rural constituencies across Scotland and the fact that one of the people who presented the Bill is in fact the Secretary of State for Scotland?

[Ms Qaisar]

I thank my hon. Friend for his intervention; he is completely correct. What people may fail to consider—it is important to remember this—is that the food and drinks industry is twice as important to the Scottish economy as to the UK as a whole, and the food and drink export trade is four times as important to the Scottish economy. The legislation in front of us will impact industry, with the UK-Australia trade deal expected to cause a £94 million hit to UK farming, forestry and fishing per year and a £225 million hit to the semi-processed food sector per year. However, UK Ministers pressed ahead with these deals despite prior warnings, effectively treating Scottish interests as expendable.