Trade (Australia and New Zealand) Bill

Geraint Davies Excerpts

Report stage
Monday 12th December 2022 Commons Chamber

[Gareth Thomas]

My hon. Friend makes an important point. Equally significantly, Professor Sanchez-Graells, in his evidence to the Bill Committee and to the Select Committee, suggested that the protections for British businesses trying to win Government procurement contracts across CPTPP—comprehensive and progressive agreement for trans-Pacific partnership—countries would be damaged if Ministers continued to negotiate similar provisions to those that are in the Australia procurement chapter. We examined his detailed concerns in Committee. The absence of a cogent and compelling rebuttal from the then Minister was striking. To be fair, shortly after the end of the Committee stage, a further letter from the outgoing Minister of State was sent to me, and a copy was placed in the Library. I shared a copy of that letter with Professor Sanchez-Graells, who reiterated his concerns, noting the lack of clear counter arguments for the assertions in that letter. Indeed, there were not any worked-though, real-life examples of the sort that I raised directly with the Minister in Committee to explain why the concerns articulated by Professor Sanchez-Graells are misplaced.

Given that this Bill is specifically about procurement, and given that Professor Sanchez-Graells was one of only two witnesses asked to comment on procurement by either the Bill Committee, the other place’s International Agreements Committee or this House’s own International Trade Committee, it was a little surprising that there was not better preparation by the Department for consideration of his arguments. I do recognise that the Department was in a degree of chaos at the time, with Ministers coming and going, but one can only hope that the Minister replying to this debate has a little more to offer.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does my hon. Friend agree that this underlines the fact that there is not enough scrutiny and democracy in the process, and that this House should have the opportunity to look at the mandate for future deals and to scrutinise the negotiations as well as the ratifications, so that we do not get a deal that offers a hopeless 0.1% GDP growth over 15 years?

[Gareth Thomas]

Not surprisingly, my hon. Friend leaps ahead of me; I will come on to the issue of parliamentary scrutiny in just a moment.

My last point on the case for new clause 1 is that such an impact assessment would also allow us to explore the extent to which small and medium-sized enterprises were able to take advantage of this trade deal. We know that SMEs need the most support to take advantage of free trade agreements and, given the cuts to the tradeshow access programme, for example, we know that SMEs are likely to face real challenges in exporting. New clause 1 cannot change the way Ministers negotiate future procurement chapters, but it would at least require an honest and detailed assessment of the impact of those chapters on British businesses.

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[Gareth Thomas]

My hon. Friend makes his point well, and I hope he is able to catch Mr Deputy Speaker’s eye later on so that he can draw it out further.

New clause 2 cannot, I am afraid, put right the disregard of those on the Government Front Bench thus far for the vital role that British farmers play in the economic and social fabric of our country, but we can at least learn from that desperate rush to get any deal with Australia, regardless of the price. I hope Ministers will take this opportunity to acknowledge the mistakes made during the negotiations and will back this new clause. If not, I will seek the permission of the House and put it to a vote. I have said I hope Ministers will acknowledge mistakes, but we do not expect any apologies. After all, there have been so many apologies from the Government over the last few months that their worth has devalued more quickly than sterling under the last Chancellor.

New clause 12 and the consequential amendments 6 to 16 are designed to address some of the cross-party concern about the obvious failures on parliamentary scrutiny that my hon. Friend the Member for Swansea West (Geraint Davies) alluded to. In the usual Conservative tradition, having made such enormous errors in her leadership of the negotiations with Australia, there was only one option for the then Secretary of State: she was promoted. Indeed, in the lucky dip that was this summer’s Tory leadership contest, she won the chance to be Prime Minister for the month and, consistent with her achievements on trade, delivered economic chaos, higher mortgage bills and a return to deep austerity.

The following Secretary of State, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), swiftly fell out with her colleagues—a scenario almost too difficult to imagine. Tories falling out with each other? Who on earth would have seen that happening? Instead of the world-leading scrutiny process we were once promised for new free-trade agreements, she adopted a new one: invisibility. On at least eight separate occasions, the previous Secretary of State failed to front up at the International Trade Committee to answer important questions about the new deal. She seemed somewhat keener to tour the TV studios questioning the work ethic of her then ministerial team.

There is, I have to say, a striking consensus outside the House—across business groups of every economic sector, and among trade experts, charities and non-governmental organisations working on trade—that the CRaG process is not fit for purpose post Brexit, and that one of the key lessons from the Australian FTA negotiations is the need for better parliamentary scrutiny. We cannot deliver that better scrutiny for all FTAs today—not least given the narrow context of this legislation—but we can certainly make sure that Parliament considers further the regulations that implement the procurement chapters of the deals. A super-affirmative provision would give Parliament an additional layer of scrutiny for trade deal regulations under the Bill before those regulations can come into force. I hope, again, that Ministers will have the grace to accept the amendment and will not force me to divide the House.

New clause 10 underlines our concern that trade agreements must work for the NHS and not undermine or make even more difficult the task of repairing a great public service after 12 years of callous mismanagement by this Government. On procurement specifically, the last thing that anyone would want in a trade agreement is carelessly drafted provisions that enable a dispute about whether an overseas-owned building firm lost a redevelopment contract fairly, for example, to delay much-needed investment in new NHS hospitals, or vital funds that could have been spent on new doctors and nurses having to be used to compensate overseas firms for not winning a procurement contract. If the independent expert from whom the Select Committee and the Bill Committee heard evidence is correct, the drafting of the procurement chapter in the Australia trade deal—and, I understand, this is also likely to be so in the CPTPP—creates legal uncertainty in the remedies available to overseas businesses bidding for UK Government contracts. It is possible, then, that major public services such as the NHS could see delays to the rebuilding of hospitals and/or money that could have been spent on recruiting doctors and nurses being wasted on compensation for overseas firms that have lost out in a procurement competition.

Take the Queen Elizabeth Hospital in King’s Lynn, for example, which urgently needs replacing. Its roof must be monitored daily, four out of seven operating theatres have had to be shut, and the roof is held up by 3,600 props. That is, I suggest, one powerful example of the neglect and mismanagement of the NHS under the Conservative party. Imagine if funding were committed to and tenders issued for such a rebuilding project, only for building work to be held up because of the legal uncertainties in the Australia deal on remedies for firms that lost out unfairly in procurement processes. Surely, a proper understanding of the impact of trade deals on our public services is essential. If there is nothing to worry about, Ministers should not find it difficult to commit to providing such assessments, should they?

On new clause 11, it is clear that these trade deals are not going to deliver the sustained boost to economic growth that this country desperately needs. Yet in the land of make-believe that the Conservative party now inhabits, the Australia deal was sold to us as the start of a brave and amazing post-Brexit era for British trade. The deal does not look like global Britain; it looks to the world like gullible Britain. On the upside, unlike the Conservative party’s trade deal with Europe, the Australia and New Zealand trade deals did not lead to the value of the pound dropping, but the tendency of Ministers in the Department for International Trade to exaggerate the benefits of the deals they sign underlines the need for a full review of the lessons learned from each negotiation.

We all remember talk of an “oven-ready” trade deal with the EU—it turned out to be anything but. Then there was the promise of 77 of Britain’s most iconic food and drink products, from Shetland wool and Whitstable oysters to Carmarthen ham, getting immediate protection in Japan as a result of the UK-Japan deal. That has yet to happen. We have had the promise of billions more in procurement contracts for British business, but there is little evidence that that will happen.

[Geraint Davies]

My hon. Friend knows that a large of amount of New Zealand and Australian trade is historically in left-hand-drive cars that were made by Japanese companies based in Britain. Those companies are leaving the UK, and the EU has now got a trade deal with Japan and will have one with Australia and New Zealand. It is therefore likely that those Japanese companies will produce left-hand-drive cars and sell them to New Zealand and Australia, but not via Britain. In other words, the deal will prove negative rather than marginally positive.

[Gareth Thomas]

I hope my hon. Friend accepts that the case I am making for providing serious and detailed impact assessments for future trade deals will help to ensure that his point gets proper consideration in future.

I hope that new clauses 13 and 14 remind Ministers of the significance of trade for working people and of the need for trade to play its part in helping to tackle climate change and accelerate progress towards net zero. When the Australia deal was negotiated, two Conservative Governments, both with distinctly underwhelming records on climate and workers’ rights, were in the negotiating room. In this country, the Conservative party has consistently sought to exclude representatives of working people in the trade unions from all significant consultation on trade deals. The trade deals that we as a country sign should raise standards, support better employment and help to tackle climate change instead of, as the Conservative party seems to want, heralding a race to the bottom.

We have tabled amendment 1 to stimulate serious and sustained detailed consultation with all the nations and regions of the United Kingdom on the details of the chapters of the trade deals. It is a reminder to Ministers of the need to step up and improve further their discussions with the devolved Administrations and with the regions of England about the impact of deals on specific communities and economic sectors. My hon. Friend the Member for Llanelli (Dame Nia Griffith) gave the example in Committee of farmers in Wales, where 85% of the beef and 60% to 65% of the sheepmeat produced are consumed in the UK. There is genuine concern about the impact of a huge hike in tariff-free quotas of meat from Australia and New Zealand on our farmers’ ability to sell into our markets, with all the obvious implications for rural communities, family farms and economic, social and cultural life.

There are similar concerns across the regions of England, in Scotland and in Northern Ireland. The Select Committee on International Trade heard evidence that the Department cannot yet model fully the impact of trade deals on the nations and regions of the UK. That is all the more reason for better consultation before new trade regulations come into force.

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[Geraint Davies]

It is a great pleasure to follow the hon. Member for Arfon (Hywel Williams), who has underlined what this debate is about. The Government are in the dock for selling out British interests, in particular farming interests, at a time when Parliament has basically been blindfolded in the process, unable to see the mandate or the negotiations, or to properly ratify the outcome.

What we have before us is an array of amendments to address the impact of these deals, which have already been signed, on all our sectors—in particular on agriculture, procurement and the NHS. Those are fundamentally important sectors. The amendments, which I support, have been tabled because it is still unclear how much damage has been done by these deals. They were done in haste and rushed through the door, which put us in a weak bargaining position. Any concession was simply just given. We do not know the detail of how much harm has been done. The former Secretary of State for Environment, Food and Rural Affairs said that we gave far too much for far too little, which I would call the understatement of the year. The Government’s projection is that GDP will grow by 0.1% in 15 years, but we do not really know the details.

What we do know though, to take the perspective of a Welsh sheep farmer—we heard from the hon. Member for Arfon—is that Australian sheep farms are on average 100 times the size of Welsh ones. We know too that in New Zealand and Australia they only focus on three or four main breeds of sheep. There are also economies of scale—New Zealand focuses on ensuring that nearly all sheep give birth to twins, as opposed to three lambs, which might kill the mother, or one, which would be less productive. We also know that their shelf life and mechanisation of food processing are far in advance of ours.

We know, therefore, that our farmers face a major threat, at a time when exports to the EU have been stifled by unnecessary barriers as a result of a botched Brexit deal, thanks to which we have seen a 15% reduction in overall trade. So it does not look too good; and what is more, the Government have signed up to giving Australia and New Zealand unlimited access in 15 years, in terms of beef and lamb. What precedent does that set for food exports when we do a deal with Brazil, for example?

With the war in Ukraine, we are now in a world where people are quite rightly concerned about food security, yet we are basically undermining our domestic production, at a time when Russia has increased its overall agricultural production by 15% since invading Crimea and facing sanctions. Basically, we are saying that we will turn our back on the EU and do a deal with Australia, undermining our own farmers. Is that a good idea? Surely, we need to be producing more healthy food locally, at a time when one in four people in Britain is in food poverty.

As it happens, I take a particular interest both in food, as a member of the Environment, Food and Rural Affairs Committee, and in trade, as the rapporteur for the Council of Europe, charged with ensuring that democracy, human rights, the rule of law and sustainability are embedded in agreements, but none of those are embedded in the Australia and New Zealand agreements. On democracy, there is no facility for the mandate, the negotiations, or ratification to be properly looked at, hence all these amendments. On due diligence, there is none when it comes to climate change, human rights and so on, where we can find best practice. For example, the EU deal with New Zealand refers to the rights of indigenous people, the Maori people, and various issues about due diligence in supply chains. Our deal does not have those things because it was rushed forward.

Trading further afield is more environmentally damaging, at a time when we should be concerned about climate change. We also know that Australia is the worst carbon emitter in the world, at 17.5 tonnes per person, compared with the 4.8 tonnes claimed for Britain in terms of production—for consumption, it is 8 tonnes per person. I hope we will have an opportunity to superimpose a carbon border tax in due course and that this deal will not rule that out.

[Sir Mark Hendrick]

I have recently returned from visiting Singapore on behalf of the International Trade Committee, where it was mentioned to us that Singapore has done a green economy agreement with Australia, which looks at emissions as part and parcel of that trade package. Given what my hon. Friend has said about Australian emissions, could he perhaps comment on that?

[Geraint Davies]

My comment would be that Britain should be taking a lead, as it claims to, on mitigating climate change. The way to do that is to take best practice, from Singapore or anywhere else, and hardwire that into current and future agreements. That has not been done, because our economic, climate and other interests have been thrown to one side in order to just tick a box and say that we have got a trade agreement.

[Lloyd Russell-Moyle]

My hon. Friend mentioned carbon border adjustments. Is it not the truth that both Europe and America are now leading on these discussions, because they understand that trade deals without proper carbon and border adjustments are just ways of exporting jobs out of countries—degrading those countries, their workers and the environment in one fell swoop?

[Geraint Davies]

I am certainly a big supporter of what the EU is doing on carbon border adjustments, for instance ensuring that we have a level playing field for steel made in south Wales, which emits half the carbon of Chinese steel, and that there is an incentive to invest in green production domestically. The EU has taken a lead and we need to catch up. The United States is subsidising green industry and, as my hon. Friend will know, there is a tension between the two different strategies when it comes to ensuring a sustainable and greener future for all.

Turning to procurement, clearly it is not exactly a new idea that big multinational corporations will use unelected, private, often secretly held tribunals to try to fine democratically elected Governments who want to pass laws to protect the environment and public health. We saw that in investor-state dispute settlements. Most obviously, at the moment, we have got the Energy Charter treaty, which binds countries for 20 years to being sued if they try to pass laws to help the environment.

People will know that Germany, France, Poland, Spain and others are trying to withdraw from that treaty, although we have not heard much for the United Kingdom—because of its fossil fuel interests, I assume. My question is: why, when we know those companies will be quick on the draw in taking us to court and suing us, do we allow them a way in on procurement, so that when they do not get the business with the NHS, they can suddenly sue us? That concern is covered in new clause 1, which I very much support.

Finally, it is obvious that, out of the carnage of the botched Brexit deal, while obviously we want deals with Australia and New Zealand, the haste with which we have approached these deals has left us in a situation where they get all the benefits and we face a prospective loss. That is absolutely disgraceful maladministration from the Government, and I support the amendments to try to mitigate some of the harm done by their hopeless negotiation.

[The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)]

May I say what a pleasure it is to speak on behalf of the Government today as we scrutinise this landmark piece of legislation? I thank colleagues for their contributions to the debates on this Bill, including the general debate, where many of the points raised today were also covered and responses were given by my hon. Friends on the Government Benches. I will try not to repeat that debate now.

The Government are of the view that the amendments tabled are ultimately unnecessary, and I hope that I will be able to persuade right hon. and hon. Members to withdraw them. The new clauses that deal with issues on impact assessment are unnecessary, as the Government have already committed to undertake assessments of impact of these deals at regular intervals.

First, the Government have committed to publishing a monitoring report every two years and a compressive evaluation report for each of the agreements within five years of their entry into force. Those evaluation reports will aim to show how, why and for whom the agreements and their implementation have delivered, addressing many of the points raised by hon. Members in the debate.

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[Geraint Davies]

If New Zealand is not utilising its current quota, why have we chosen to give a completely unlimited quota in 15 years’ time? Given the Minister’s reasoning, New Zealand presumably does not need it, and it just exposes us to unnecessary risk.

[Nigel Huddleston]

All negotiations involve give and take. The hon. Gentleman will also acknowledge, I am sure, that we are also seeking market access right across the globe for farmers and our fantastic food and beverages—for example, by opening up the market in the US for sheepmeat for the first time in 20 years. At the same time, we are seeking opportunities right around the world. Of course, as several hon. Members have mentioned, we are proud of our high animal welfare and food safety standards, which is why we are ensuring that this deal does not compromise on them and that no new permissions for imports such as hormone-treated beef were granted.

On the Government’s engagement with the devolved Administrations, right hon. and hon. Members will be aware that the Minister for Trade Policy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), chairs the inter-ministerial group for trade, previously known as the ministerial forum for trade. That forum provides an opportunity for discussion on all matters of trade policy, including the implementation of UK free trade agreements. The forum is not the only opportunity for ministerial discussions; there are frequent bilateral meetings between Ministers. Indeed, later this week, my right hon. Friend is set to meet the Scottish Minister for Business, Trade and Enterprise, to whom I spoke last Tuesday. I also spoke to the Welsh Minister for the Economy on 1 December on a similar basis. In addition to ministerial engagement, discussions with devolved Administrations at official levels have totalled hundreds of hours across the Australia and New Zealand FTAs, including frequent updates by chief negotiators and detailed discussions to draft text.

It may be helpful to also remind the House that on Second Reading, the previous Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), who is sitting near me now, committed at the Dispatch Box never to use the power in clause 1 without consulting the devolved Administrations first. That is a sincere commitment, and one that we will honour.

Oral Answers to Questions

Geraint Davies Excerpts

Thursday 21st April 2022 Commons Chamber

[Anne-Marie Trevelyan]

In 2020, the Prime Minister announced that £160 million would be made available to upgrade offshore wind ports and manufacturing, and the money has now been invested. We announced £1.6 billion of investment in our offshore wind sector just last year, including seven new major manufacturing investments and two new offshore wind ports, creating 4,100 jobs by the end of the decade. Alongside that, we have agreed the removal of tariffs on UK exports of products such as wind turbine parts, knowing that we will continue to grow and invest in our manufacturing as well as the service and support aspects of the offshore wind sector, in which the UK continues to be world-leading.

[Geraint Davies (Swansea West) (Lab/Co-op)]

11. What steps she is taking to help increase exports of UK steel.

[The Secretary of State for International Trade (Anne-Marie Trevelyan)]

Since 2018, the US Government have imposed tariffs of up to 25% for steel coming into the US. Last month I was pleased to reach a resolution with the US Government, and the tariff-free volumes that we have secured on steel and aluminium will mean that UK steel and aluminium exports to the US can return to levels not seen since before section 232 tariffs were imposed. The deal will deliver for our steel and aluminium industries across the country, and for the 80,000 UK jobs supported by the sector.

[Geraint Davies]

I am glad that it took only four years. May I, as the trade rapporteur for the Council of Europe, turn the Secretary of State’s attention to EU carbon border taxes? Does she agree that they will help boost UK exports to countries that export steel manufactured products to the EU? Will she also pursue a UK carbon border tax so that Chinese dirty steel, which has twice the carbon footprint of British steel, does not undercut our steel, and work in harmony with the EU so that we can help protect our jobs and exports and, indeed, the planet?

[Anne-Marie Trevelyan]

The Treasury is looking closely at all those questions. Indeed, they are also the subject of discussions that I have had in some detail with my counterparts in the US and other nations. Thanks to the leadership that the UK offered at COP26, the question of how we manage these global questions is now right at the centre of all discussions. The EU is putting forward proposals, and I will continue to work with the Treasury as we think about how the UK wants to fit with that. If the hon. Gentleman wants more detail and information, I refer him to the Treasury.

Trade and Agriculture Commission: Role in International Trade Deals

Geraint Davies Excerpts

Wednesday 21st July 2021 Westminster Hall

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

I am very pleased to serve under your chairpersonship, Ms Bardell. As you know, I have been involved in the Council of Europe as a trade rapporteur. I am also a member of the EFRA Committee. I very much welcome everything that the hon. Member for Penrith and The Border (Dr Hudson) has said. I serve on the Welsh Affairs Select Committee, and we looked at this important issue as well.

The Government refused to put a list of welfare and other standards and constraints in the Trade Bill. They said that the Trade and Agriculture Commission would act as an advisory body that would provide information to Parliament so that we could make an informed decision before trade deals were made. We can see that the Government are not taking this seriously because, since 2 March—almost 22 weeks ago—the 22 recommendations made by the Trade and Agriculture Commission have not been responded to. There is great concern that the Government are desperately trying to sign off any deal as quickly as they can, irrespective of the welfare and industrial implications. We have taken evidence to that effect in our Select Committee.

It is important that we realise that Australia will serve as a benchmark. I appreciate the intervention of the hon. Member for Totnes (Anthony Mangnall), who seemed to think that we could have different standards for different deals, but the World Trade Organisation will judge that, so we cannot have inconsistent standards. The standards in Australia are significantly worse; the Chair of the Select Committee, the hon. Member for Tiverton and Honiton (Neil Parish) mentioned that cattle are allowed to travel for 48 hours instead of 24 hours, and sheep are subjected to horrendous removal of the skin on their buttocks—without anaesthetic for 44% of them, and with some sort of pain relief for 40%. The Australians said they would stop that practice in 2012, so we cannot really trust them on their word to improve welfare standards if it is not in their competitive interest to do so.

I am sitting in Wales, and I know that the average size of a sheep farm in Australia is 100 times that of the average farm here. We also know that the Government are looking to agree a tariff and quota system, with a 15-year phase-out of the tariffs. The quota that has been allowed for 2022 is four times the amount that was allowed in 2020—25,000 tonnes, rising to 75,000 tonnes by 2022. At the same time, farmers are having their farm payments withdrawn. Some environmental payments will be phased in, but not at as high a level. Obviously, there will be cash-flow issues. With lower costs, with the problems that we are experiencing over exports to the EU and with extra imports, the situation looks pretty dire from the industry’s point of view.

The Australian negotiator Dmitry Grozoubinski gave evidence to the Welsh Affairs Committee, pointing out that over 20 years, the Australian share of the beef market in the United States developed from a non-entity to hover at about a third of value. The US has a much bigger population, but we eat more beef. We are in danger of being swamped by beef that is produced to lower welfare standards.

This Australia deal looks to form a precedent for the subsequent deals with Mexico, Canada, India, Vietnam and so on, and we need to get it right. We cannot have a situation where we do not get the right advice from the Trade and Agriculture Commission, and then we are faced in the final hour, as we were with the EU, with deal or no deal—this or nothing.

It is imperative that we get these things right for the long term. Let us remember that international trade deals are treaties that trump domestic law. There is no good our passing some sort of welfare or animal sentience Bill and having a special committee that says that we will embed the interests of animal welfare in all our decisions, because that law would be trumped by international trade treaties. We need to get it right; we need it to be informed; we need parliamentary democracy; and we need to work together, so let us do that. I look forward to hearing from the Minister.

Oral Answers to Questions

Geraint Davies Excerpts

Thursday 15th July 2021 Commons Chamber

[Elizabeth Truss]

I am very proud of the role that the United Kingdom has played in setting very high labour standards and looking for them in the trade agreements that we are working on. That is part of our discussions with the CPTPP countries. I have also been talking to leading figures in the US about how we can ensure strong labour rights in future US agreements.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

China now produces 28% of carbon emissions—more than the US and the EU combined—with more than half the world’s coal-fired power stations and a third more planned. To stop carbon-intensive Chinese products such as steel displacing greener alternatives, will the Secretary of State ensure that with the G7, at COP26 and with Katherine Tai we pursue the carbon border tax being developed in the EU so that trade can help to save the planet, not destroy it?

[Elizabeth Truss]

The hon. Gentleman makes an important point about carbon leakage. We need to make sure that when we work to achieve our net zero target, we are not simply exporting carbon production elsewhere. That is why I am working with G7 partners on the issue of carbon leakage, but I think it is important that the solution is multilateral and embedded in the world trading system rather than unilateral from each individual country, so I am working with like-minded partners across the globe to make sure that we take account of carbon emissions.

Protecting Britain’s Steel Industry

Geraint Davies Excerpts

Monday 21st June 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

We cannot allow cheap carbon-intensive steel from China to destroy our steel industry and our planet. Over half the steel in the world is now produced by China—the amount has doubled in the last 20 years—and we face a climate catastrophe. British steel uses 50% less carbon, and we have a situation in which, since Kyoto, global emissions have gone up 60% since 1990. The Paris limit of 1.5° C will be breached by 2025, and 8,500 tonnes of ice is melting every second of this debate in Greenland. China is emitting 28% of global emissions, which is more than the US and the EU combined: 7 tonnes of carbon per person, compared with 5.8 tonnes in Britain. On a consumption basis we do 8 tonnes, because we have subcontracted our coal-fired power stations and manufacturing to China. China now has over half the capacity for coal-fired power stations—1,037 coal-fired power stations—and it plans another 300. Its emissions will not peak until 2030, and we do not know what that peak will be. It will only be carbon neutral by 2060, and that is not even net zero.

We must act. We need to have the same tariff safeguards as the EU and the US against the dirty steel the Chinese are dumping. We need to switch to the border adjustment carbon tax being considered by the EU, which factors the carbon price into those taxes, for COP26. We have talked a lot today about the balance between strategic industrial interests and consumer prices, but those consumer prices need to factor in the environmental cost of carbon. It must be in the guidelines for the TRA to make these recommendations, which it is not. Buying more carbon-intensive products—whether steel, manufacturing or agriculture—is destroying our planet. Let us build back greener, reward lower carbon, tax higher carbon in COP26 and remember that, as the US says, we want to make trade a force for good that encourages a race to the top—not just for workers’ rights, but for our environment. Let us build back British steel, let us have a safer planet and let us protect jobs in Wales, in England and beyond.

Oral Answers to Questions

Geraint Davies Excerpts

Thursday 10th June 2021 Commons Chamber

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

[Geraint Davies (Swansea West) (Lab/Co-op)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

[Alex Cunningham (Stockton North) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

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[Geraint Davies [V]]

Happy birthday, Mr Speaker. The English-speaking population in Cameroon faces mass killings, atrocities and torture. As we have heard, the US has now invoked trade sanctions, but the UK has signed a trade deal without parliamentary approval. So can I ask: has the EU’s essential rights clause now been removed from all future trade deals, so that abuses, however abhorrent and widespread, will now be supported by the British economy through secret deals, thereby taking control back from Parliament and giving it to those with blood on their hands?

[Mr Jayawardena]

I am not entirely sure what the hon. Gentleman is referring to in respect of secret deals. This is an agreement that the EU had originally. We have continued an agreement here to provide certainty to businesses in both countries and to date the EU has not taken measures against Cameroon—I know how fond he is of the EU.

Oral Answers to Questions

Geraint Davies Excerpts

Thursday 15th April 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

My hon. Friend is quite right to highlight the importance of supporting SMEs precisely to get into that international business space. That is why we are developing a new export strategy. We have the developing Export Academy, with a range of toolkits and information to support small businesses. We have the internationalisation fund: £38 million of grants to help businesses to overcome any barriers to international trade. Last but not least, we have UK Export Finance, our award-winning credit agency, which has increasing numbers of staff not only across this United Kingdom, but across the world to make sure that SMEs, wherever they go, can be financed and supported to realise those opportunities, which are many.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

Sixty per cent. of Wales’s exports have been to the EU and steel is of great importance. Given that the Government’s own Office for Budget Responsibility forecasts showed that the Brexit deal would lead to a 4% reduction in our GDP, and given that they are removing the safeguards on steel in June, does the Secretary of State accept that the overall amount and value of exports from Wales in the next five years will be less than it was in the previous five years due to the Government’s policies?

[Elizabeth Truss]

First, we are not removing the safeguards in June. When we were part of the EU, decisions about safeguards were made on an independent basis. Nobody on the Opposition side of the House complained about that then, but they seem to object to independent decisions being made when we are a sovereign nation, which I find utterly bizarre. And I do not agree with the hon. Gentleman’s pessimistic prognosis of the future of Welsh exports. We have massive opportunities for more beef exports, more lamb exports, more car exports and more aerospace exports, and that is what we are going to do through our new trade and investment hub in Cardiff. It is going to be driving those opportunities and I urge him to get behind it.

Trade Bill

Geraint Davies Excerpts

Consideration of Lords amendments
Monday 22nd March 2021 Commons Chamber

It has now been 75 years since the Nuremberg trials. In that time, our country has never succeeded in recognising genocide while it was happening. This is our chance to do so. In January, I joined Members across the House to remember the victims of the holocaust and to say “never again” to genocide. Now is the time to take action and put those words into practice. I appeal to all Members of this House: consider your vote carefully and vote with your conscience. In years to come, no Member wants to look back with regret. Do not be party to this Parliament looking the other way.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

Tonight the Government have to decide whether they allow Parliament to intervene in trade deals, specifically in relation to genocide. We have all heard the stories of mass rape, concentration camps, people unable to have babies, brainwash and cultural genocide. The issue is whether Parliament is given the ability, on the basis of evidence, to restrict trade in these situations.

Last time, of course, we saw a Lords amendment that said that the courts should decide whether there is conclusive evidence of genocide, and then we—the politicians in Parliament—would decide whether we restricted trade or not. It was said that these were not competent courts. Of course if you refer to “competent courts” as international courts, China can veto them, which defeats the object. It was said that that amendment would mean judicial interference in Parliament, when of course it would not.

The Lords have come back with a new amendment, saying, “Fair enough; if that’s the way you see it, we’ll have a Committee making decisions on the basis of concrete evidence that is judicially prepared.” Now the Government are saying, “Well, you can’t do that because that’s the judiciary interfering with Parliament.” They cannot have it both ways. It does seem that, in essence, this is an intentional evasion by the Government to prevent Parliament from its solemn duty to defend our intrinsic values.

I certainly do not accept the point made by the right hon. Member for North Somerset (Dr Fox) that the Government have some sort of mandate to muzzle debate and blur scrutiny. We must be free to debate and to decide based on the evidence. The Government must explain what they are doing if trade continues with perpetrators of genocide. We should know the economic cost of protecting our values and decide whether to act.

These are fundamental questions of humanity. The Government have no right to quash or stifle our parliamentary duty to consider them. The fundamental question is: are we going to bow to the power of China and back-room deals, or are we going to rejoice and empower Britain’s gift to the world—that is, robust and unfettered parliamentary debate on the basis of sound evidence in order to make key decisions on when and whether to put our values above our economic interests? We are morally obliged to support this amendment, and I certainly will be doing so.

[Madam Deputy Speaker (Dame Rosie Winterton)]

The last speaker before I call the Minister is Paul Howell.

Global Britain

Geraint Davies Excerpts

Monday 11th January 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

I speak tonight as the trade rapporteur of the Council of Europe, and as such I want to see democracy, the rule of law, human rights and environmental sustainability embedded in all our trade deals. We stand here tonight semi-detached from our closest and biggest marketplace—the single market—and our closest friends. Over there, when they are looking at deals, they are scrutinising and approving the negotiating mandate, looking at the negotiations, and approving individual deals before they are ratified, but here we have not seen and agreed the mandate, and we have not looked at the negotiations. These deals are already binding in international law because they have already been passed and ratified. The EU deal was dumped on us on Christmas eve in a half-filled sack marked, “Take it or leave it”, and we found that it did not even include any services, which are 80% of our economy. The Japan deal, worth £1.5 billion, would have been worth £2.6 billion via the EU. As regards the US, it is good to see the back of Trump and his isolationism and climate scepticism. We should now embrace President Biden in COP26 to ensure that environmental sustainability is central to all future trade agreements.

As regards the Trans-Pacific Partnership, the US and India are standing back, and it is dominated by China, which has 18% of global GDP. China grew by 4.9% even last year through the pandemic. China is no friend of democracy, as we have seen in Hong Kong. It is no friend of human rights, as we have seen with the Uyghur Muslims. We have ended up moving from being a rule-maker in the EU, be it on the environment or financial rules, to a rule-taker from someone who does not share our values. That is why, if we do embrace the Trans-Pacific Partnership, we need to ensure that the UN human rights agreements are included and that, like New Zealand, we are one step removed and we do not agree investor-state dispute settlements. Otherwise those people from China who are building the nuclear power stations of the future, involved in HS2 and providing for 5G will end up being able to hit us, as we have seen in other examples like the nuclear provider Vattenfall in Germany. In a nutshell, with China we need to confront human rights, compete on trade, and co-operate on climate change and health. It is important that our COP26, G7 and Security Council chairpersonships embrace our fundamental values of democracy, the rule of law, human rights, fair trade and our environment.

Oral Answers to Questions

Geraint Davies Excerpts

Thursday 8th October 2020 Commons Chamber

[Elizabeth Truss]

I have met farmers from right across the United Kingdom, and indeed the Trade and Agriculture Commission that we have set up to advise us on these issues is conducting a series of regional meetings with MPs and farmers to get their views, to make sure that our policy on every free trade deal works for farmers right across the country.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The Welsh Government have not been allowed to negotiate with the EU, so if Welsh farmers, some of whom voted in favour of leaving the EU, find that they face tariffs and border controls on lamb, will the UK Government give the Welsh Government compensation to give to those Welsh farmers and other sectors that have lost out through a badly negotiated deal?

[Elizabeth Truss]

Both the Farmers’ Union of Wales and the National Farmers Union Wales are represented on the Trade and Agriculture Commission to ensure that there is a full voice for Welsh farmers on future trade agreements. Under the recent Japan deal, Welsh lamb is now going to be recognised geographical indicator, and we are fighting to get lamb into the US market. There are lots of opportunities out there for Welsh lamb farmers, which we are pursuing vigorously.