(3 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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(Urgent Question): To ask the Secretary of State for International Trade, if she will make a statement on the United Kingdom’s proposed tariff offer to the Australian Government on their agricultural exports.
Our trade agreement with Australia is very likely to be the first from-scratch deal that we have struck outside the European Union. It is a major milestone for global Britain and a major prize secured for our newly independent trade policy. It is on course to slash tariffs on iconic UK exports, saving business potentially about £115 million a year.
The deal will be the most advanced that Australia has struck with any nation bar New Zealand, and will, we expect, be particularly forward-leaning in areas such as services, procurement and digital trade. It will be a great deal for the UK, and our farmers will continue to thrive. The agreement is a gateway into the massive CPTPP—comprehensive and progressive agreement for trans-Pacific partnership—free trade area in the Asia-Pacific, and opens doors for our farmers into some of the biggest economies of now and the future.
Our food is among the best in the world and incredibly competitive. We should be positive, not fearful, of the opportunities that exist for our agriculture and our farmers. We give the EU preferential trading terms, which I do not recall those on the Opposition Benches objecting to. We should be unafraid of giving our Australian cousins something similar, taking the chance to deepen trading ties with one of our closest friends and allies.
Australian meat is high quality and produced to high standards, and it arrives here in low volume. Meanwhile, Australia has some of the highest animal welfare standards in the world. The UK accounts for just 0.15% of Australian beef exports, and our analysis suggests that any increase in imports is more likely to displace food arriving from the EU. Any deal we strike will contain protections for our farmers, any liberalisation will be staged over time, and any agreement is likely to include safeguards to defend against import surges. Negotiators are now working to agree the outstanding elements with the aim of reaching agreement in principle in June.
This is not the end of the process. Later this year, Parliament will be given ample opportunity to scrutinise the agreement—we welcome scrutiny of the agreement—as well as any legislative changes that may be required before the agreement enters into force. Parliamentarians will also receive an independently scrutinised impact assessment. Mr Speaker, you will know that our scrutiny arrangements are among the most robust, and in line with other parliamentary democracies. Indeed, in some areas we go further still.
This will be a great deal for our United Kingdom. It will deliver big benefits for both countries and will help us build back better from the covid pandemic. I commend it to the House.
Let me make it clear at the outset that we support a trade deal with Australia that is designed in British interests and will create jobs in our economy and increase our exports and growth. What we cannot support is a deal being rushed through in time for the G7 summit without proper debate or consultation, let alone the advance scrutiny that the Government promised by the Trade and Agriculture Commission. We cannot support a deal on agricultural tariffs that will cost jobs in our farming communities, undercut our food standards, increase our carbon offshoring and open the door to the destruction of our farming industry through further lopsided trade deals.
As an exercise in intellectual honesty, I would just ask all those on the Conservative Benches, in the right-wing think-tanks and on the newspaper comment pages to consider for one second how they would have reacted if it was Brussels that had negotiated this trade deal and sold out Britain’s farmers. They would have been rightly furious, and they should not be any less so when it is their own Government who are doing the selling out. However, what matters now is to try to improve the deal on the table before it is signed in Cornwall.
Assuming that it is now too late to remove the offer of zero tariffs, can I ask the Minister of State to pursue three other changes? First, will he put in place a safeguard trigger—which, as I am sure he knows, Australia was willing to accept in its deals with Japan, China and the United States—to protect British farmers against surges in cheap imports? Secondly, will he make it clear that zero tariffs will apply only to Australian products that meet the same standards that British farmers are required to meet on food safety, animal welfare and environmental protections? Thirdly, will he insert a review clause into the deal so that, if its impact is even more negative than was forecast by the Government last year, there is scope both to amend the deal and to learn from it in future trade deals? Those are the bare minimum changes that we need to mitigate the damage that this rushed and botched negotiation is inevitably going to do, so I hope that the Minister of State will agree to pursue all three of those priorities today.
I thank the right hon. Lady again for tabling this question. Let me answer each and every one of her questions. First, she said that this had been rushed through. I was at the Department at its inception in the summer of 2016, and one of the very first things that was announced in 2017 was our target for our initial batch of free trade agreements, which included Australia. That was back in 2017 and repeated by the current Secretary of State in 2019. She talked about the Trade and Agriculture Commission. This will be up and running soon—[Interruption.] If she is that keen to see it up and running soon, she might have supported the passage of the Trade Bill, which became the Trade Act 2021 just before Easter; instead, we saw her repeated manoeuvres to delay and undercut the Bill at the time.
The right hon. Lady talked about any deal potentially undercutting our food standards. I was absolutely clear in the statement that there will be no compromise on our standards of animal welfare, food safety and the environment. That is our manifesto commitment, and it has often been repeated. She made a point about emissions and food miles. There is controversy in relation to meat production emissions, but no more than 5% of emissions are reckoned to come from the transportation across oceans of that product.
Let us look at Australia’s current trade patterns. Only 0.15% of Australian exports come to the UK. Australia sells 75% of its beef and 70% of its lamb into Asia at the moment. That is where the fast-growing markets are, and that is something that we in the UK are seeking to get access to ourselves through agreements such as the CPTPP and other trade agreements. There is a big opportunity here for UK agriculture.
The right hon. Lady asked about a safeguard trigger. As I said in my opening statement, safeguard triggers are typical of free trade agreements. This is still a free trade agreement that is subject to a live negotiation, but I would say that these things are typical of free trade agreements. She asked if we would have zero tariffs if the Australian produce met our standards. The Australian lamb and beef coming into the market today meets our standards. There will be no change as a result of the free trade agreement to our standards. Australian beef and lamb will continue to have to meet our import standards. If that is the only objection to zero tariffs, I take it that she would welcome such a situation if there were zero tariffs in the deal. She also asked about a review clause. Again, that is a typical feature of free trade agreements.
The right hon. Lady has to explain why she is seemingly so opposed to such a trade deal with Australia, a key Commonwealth, Five Eyes and like-minded trade ally of the United Kingdom. She did not complain about the zero-tariff, zero-quota access for EU beef and lamb, which had no staging on it at all. Why does she do so for Australia? I believe her real problem is that she still wants to remain in or rejoin the EU, like her neighbour the Leader of the Opposition, and cannot see the benefits of doing any trade deal with Australia. I commend the prospective deal to the House and invite more progressive voices on the Opposition Benches to join us in backing an FTA with our close friends and allies.
We have all heard much in recent days about the threat posed by large-scale, low-cost Australian meat production, but we all know that consumers care about quality. What opportunities does the Minister see in a free trade agreement with Australia for the hill farmers of Aberconwy, whose grass- fed stock can run freely across the rain-soaked hills of north Wales, breathing in the clean mountain air?
My hon. Friend is a doughty champion for his constituents in general and his farmers in particular. There are great opportunities worldwide for the Welsh lamb sector. For example, British lamb is currently not allowed at all in America. We are looking at fast-growing Asian markets, and I refer back to the importance of the Australia deal as a springboard to CPTPP. Half of today’s global middle class is in Asia, and almost 90% of the next billion middle-class people in this world will be in Asia. That is where the growing demand for high-quality meat, such as the Welsh lamb produced by my hon. Friend’s constituents, can be found, and that is where I see great prospects and great opportunities for his constituents, his farmers and farmers across the United Kingdom.
Everybody wants more trade deals to be done, but the Minister simply is not listening to those at the sharp end. Martin Kennedy, president of the National Farmers Union Scotland, said:
“Our seafood industry has already been hit hard by Brexit and now Scottish farming is next to be sacrificed—and once again it’s Scotland’s key industries which will bear the brunt of a Tory Brexit people here did not vote for”.
NFU England has warned Ministers that farmers will struggle to compete if zero-tariff trade on lamb or beef went ahead. The RSPCA has warned that tariff-free access for Australia would betray the public, farmers and animals. Those are just some of the warnings to Government from those affected, not from politicians. Will the Minister rule out tariff-free access for Australian agricultural produce?
Nothing must threaten our actions to mitigate climate change. Australia is home to large energy and mining firms and has lagged behind other advanced economies when it comes to addressing climate change. Will the Minister guarantee that no deal with Australia will include investor-state dispute settlement mechanisms, or will he press ahead and betray not only today’s public, farmers and animals, but those of future generations?
It is always good to hear from the hon. Gentleman. I noticed in his series of questions that there was, for example, no mention of the £113 million-worth of Scotch whisky sold into Australia at present that is subject to 5% tariffs. Australia is actually the eighth largest market by volume for Scotch and has been growing at 7% per annum. There was no mention of the opportunities for Scottish financial services, FinTech or agrifood more generally—we actually have an agrifood trade surplus with Australia.
The hon. Gentleman quotes NFU Scotland, which has great people. I have met Martin Kennedy personally twice in the last week, as well as the Scottish Government to discuss the prospect of this deal.
Let me reiterate: there will be no change in our standards as a result of this trade deal. We are absolutely committed to no compromise on our animal welfare, food safety or environmental standards.
The hon. Gentleman asked me to rule out tariff-free access to Australian agricultural products. There already is tariff-free access through an autonomous tariff rate quota. I think he seeks a rolling back of the trade arrangements we already have with Australia.
The hon. Gentleman asked about ISDS. It is a live negotiation, and there will be a chapter on investment. We are huge investors in each other’s markets, and I remind him that the UK has never lost an ISDS case.
However, the hon. Gentleman has serious questions to answer, too. Never in 20 years has the SNP supported any trade deal done by the UK or even by the EU, even though key sectors of the Scottish economy, such as whisky, apparel and fisheries, are dependent on our trade. SNP Members voted for a no-deal Brexit. They voted against deals with our friends, such as Canada, South Korea and South Africa. They did not support deals with Japan or Singapore. Whatever assurances I have given him today, or whatever turns out to be in the deal, I do not think it would make him and the SNP support this deal. When it comes to trade, the SNP is isolationist and against the best interests of Scotland.
With the proposed free trade agreement with Australia potentially removing tariffs on all UK exports to Australia, does my right hon. Friend agree that that will save businesses across the United Kingdom millions of pounds—including in Buckinghamshire—support jobs across the nation, boost exports on products such as whisky, gin, cars and cheeses, and bring huge benefits to our agriculture sector?
I know how important my hon. Friend’s agriculture sector is in Buckingham, and I can say that the deal we are trying to secure will be very beneficial to exporters of whisky, biscuits, cars, cheese, apparel, ceramics and gin, including gin makers in his constituency such as Foxdenton, Bucks Brothers and Butlers Cross.
To support its agricultural industry, Australia has the highest rate of deforestation in the OECD and uses 71 hazardous substances that are currently banned in the UK. It is also one of the worst performers in tackling climate change, so how are the UK Government using the offer of zero quota and zero tariff access to persuade Australia to improve performance in this area?
We are the COP26 chairs this year, and we look forward to full Australian participation. The Australian Government are absolutely committed to combating climate change. There may even be something on that in this agreement, which we are negotiating at the moment. In terms of where Australia is overall on our standards, it is worth bearing in mind that it does have high animal welfare standards. It is ranked five out of five by the World Organisation for Animal Health on its evaluation of the performance of veterinary services, and it is worth pointing out that Australian standards are high, but I repeat that there will be no compromise and no change as a result of this free trade agreement to our own food standards.
The Australian free trade agreement is a key step forward for both global Britain and the Indo-Pacific pivot, as well as a stepping stone towards a successful trans-Pacific partnership application. There are wide opportunities for Britain with a key member of the Commonwealth family, but does my right hon. Friend agree, first, that hormone-injected beef is illegal in this country, wherever it comes from? Secondly, does he agree that a combination of staggering the introduction of tariffs and targeted DEFRA assistance will ensure that upland farmers do not suffer in the alarmist way suggested by anti-free trade Opposition parties?
My hon. Friend is absolutely right. Hormone beef will remain illegal, because we will not be changing our import standards. I do not believe that this deal represents a fundamental threat to UK farmers, and it certainly does not compromise our high standards. As has already been pointed out, any changes for sensitive goods, such as beef and lamb, can be staged. A typical Australian free trade agreement has stages over 10, 12 or 15 years. He is right that there is an opportunity here: a springboard to CPTPP, which I know he understands well as our trade envoy to many parts of south-east Asia.
Farmers in my constituency produce first-class beef to the highest standards both environmentally and in terms of animal welfare, at considerable cost to the family farm. Does the Minister think it is fair to pitch these farmers against Australian farmers and their intensively produced imports, with lesser standards and great environmental impact?
I thank the hon. Lady for that question. In fact, I have met the Ulster Farmers Union twice in the past week to discuss these issues in particular. I met Diane Dodds, the Northern Ireland Economy Minister yesterday, and I am meeting Edwin Poots, the Northern Ireland Agriculture Minister, later today, so we are doing extensive outreach within Northern Ireland.
I would point out to the hon. Lady the huge opportunities for the Northern Irish agriculture sector. The very first beef exported to the United States last year came from Foyle Food Group in Northern Ireland. There are great opportunities for companies such as Moy Park as well in Northern Ireland to be able to export more. We are absolutely confident of being on the front foot, and ensuring that Northern Ireland also benefits from our free trade agreements, as it is written into the Northern Ireland protocol, and is able to sell more of its high quality meat into markets all around the world, including to the CPTPP 11.
Free trade has mutual economic benefits, for not just producers, as we have been discussing, but consumers, who get more choice. We must not lose sight of that. As the Minister said, the understanding is that the proposed free trade agreement with Australia would be a gateway to joining the CPTPP, which is a high-standards free trade agreement of 11 Pacific nations. Does he agree that doing so will mean lower tariffs for British exports to those markets, which will be an incredibly beneficial economic opportunity for British businesses?
My hon. Friend is absolutely right on the CPTPP. He is also right to focus on consumers, who are a vital part of our trade agenda. Under the CPTPP, 95% of tariffs between members will be removed. We already do £110 billion-worth of trade with the CPTPP. It has very liberal rules of origin, gold-standard data and digital rules, a small and medium-sized enterprise chapter, and very favourable conditions for business visas as well. It will be a great agreement for the UK, and a key stepping stone to get there is this free trade agreement with our great friends in Australia.
In an answer to me last Wednesday, the Prime Minister lectured Welsh farmers that they should be selling their beef and lamb to China and the United States. He seemed unaware of one minor detail: that we do not have a trade deal with either country. When will Welsh families be able to sell their lamb and beef to China and the United States, and what should Welsh farming families do in the meantime as the Government trash their income with this bad Australia deal?
Again, we have done extensive outreach in Wales in recent times. I have met twice with both NFU Cymru and the Farmers’ Union of Wales. I also met with the Welsh Minister Vaughan Gething just yesterday. There are already British exports of beef and lamb to China, and of beef to the United States. I mentioned the first consignment of beef arriving last year. Getting our lamb into the United States is one of the key priorities of our trade agenda moving forward, but the China example shows that we do not always have to have a free trade agreement to be able to open doors for our high-quality agricultural produce. We have opened doors for British beef into Japan and British pork into Taiwan in recent years as well.
Alongside our farmers, car manufacturers such as Nissan play a key role in constituencies such as mine, helping to secure high-skilled jobs and to create new opportunities for people across Stockton South and the north-east. In 2019, Nissan UK exported around 10,000 cars to Australia and another 10,000 in 2020. What impact might the free trade agreement with Australia have on UK car manufacturers such as Nissan?
My hon. Friend is right: 10,000 cars go from Sunderland alone each year to Australia. That is a big volume of cars and a big amount of receipts as well. Cars make up just under 8% of all UK exports to Australia. They currently attract a 5% tariff. We are looking to reduce or remove that tariff in the agreement, and I look forward to making progress precisely on that issue to bring joy to his constituents soon.
Over 200 years ago during the highland clearances, people were shamefully replaced by sheep, for landlords’ profits. Now this trade deal threatens the supplanting of those sheep by cheap imports, for Tory dogma. What does it say about the Tory Government that they do not even care about Scottish sheep, let alone Scottish crofters and farmers?
Well, let me say a few things about that. We have to understand the existing trade flows in beef and lamb from Australia. We have to understand the beef prices. Production costs in some of those Asian markets are twice those in the UK, which makes it very competitive for Australia to sell into markets such as Japan and Korea, where the domestic production price of beef, for example, is twice that in the UK. The Australian lamb quota for the UK is not even fully used at the moment.
Compromising on the high food standards we enjoy here in the UK must never be allowed; that is something on which we must never compromise. Will my right hon. Friend confirm that a free trade agreement with Australia will not allow hormone-fed beef into the UK, and that it will never be allowed to enter the UK under any free trade agreement?
I can absolutely confirm that hormone beef will not be allowed into this country, and there will be no compromise, according to the manifesto that my hon. Friend and I stood on in December 2019—no compromise on our high standards of animal welfare, food safety and the environment—but that does not prevent us from importing produce from Australia. We already receive Australian beef and lamb. It is high quality, and I believe strongly that Australia will continue to sell good, high-quality produce to this country, which of course must continue to meet our unchanged import standards.
I recognise that the Minister is keen to highlight new markets for UK agrifood producers. However, the EU will remain by far the UK’s largest partner in food exports and imports. To what extent will any free trade agreement with Australia complicate or even preclude a UK-EU veterinary agreement on sanitary and phytosanitary issues, which surely should be a greater priority for the Government to assist UK food exporters and to address some of the tensions around the Northern Ireland protocol?
I thank the hon. Gentleman for that question. He is right that the EU will remain a large and important trading partner for us, particularly in agriculture. On his question about what impact an agreement with Australia would have, look, there will be no change to our standards as a result of the FTA—no change to our import standards. It should not have any impact on the EU.
We already have a comprehensive free trade agreement with the EU, which is the trade and co-operation agreement, and I should point out that the EU has an extensive veterinary agreement with New Zealand. That agreement is of great interest in terms of it recognising the equivalence of New Zealand’s veterinary outcomes. I do not see any danger in a free trade agreement with Australia with respect to being able to maintain our trade with the EU.
Without doubt, farming is one of Britain’s finest industries, and we all want to ensure that British food production has the best opportunities available to it, so will my right hon. Friend explain the role that the newly created Trade and Agriculture Commission will play in scrutinising the free trade agreement? Will he also comment on the opportunities the FTA will create in Australia for our British food producers, as well as in the wider Asia-Pacific?
My hon. Friend is right: this is about opportunity for the UK overall, and specifically for agriculture. It is a gateway to joining CPTPP. New trade deals will bring new export opportunities to British farmers. Global demand for beef and lamb is soaring. We should be wanting to fill part of that global demand. Meat consumption is projected to rise nearly 73% by 2050, particularly in the Asia-Pacific region.
I simply do not understand the Government’s logic: good-quality British farming undermined, high animal welfare standards compromised, jobs and livelihoods bartered away—all for no financial gain to British farmers, but at significant cost to our climate. Will the Minister assure me that he will not sign any trade deal with Australia until he has satisfactorily answered the five challenges that Minette Batters of the National Farmers Union has set out today, which have the full support of farmers—first protecting their interests, rather than his own?
I have already spoken about climate and the Australian Government’s commitment to the Paris accord, which we warmly welcome. We work very well together with Australia on environmental issues. On standards, I have already answered: there will be no compromise on our standards. May I say something about Australian animal welfare standards, as they sometimes get a little maligned in the press? They are ranked five out of five by the body concerned, the World Organisation for Animal Health—the OIE. Australia already sells naturally-grown beef and lamb into the UK. Our import standards will remain the same after the deal as before. For example, any hormone-grown beef would not meet our import standards.
Businesses across the High Peak would welcome a trade deal with Australia, and the opportunities and jobs that that would bring. Will my right hon. Friend reassure the hill farmers of the Peak District, who, as we all know, produce the world’s best quality lamb, that their interests will be safeguarded and that the Government remain committed to the UK’s world-leading animal welfare standards, food standards and environmental protections?
My hon. Friend is absolutely right, and I do not know of a bigger champion of his local farmers in the High Peak than him. He is right to say that there are opportunities here in exporting for his local farmers. I have already mentioned the US, where British lamb is currently not allowed in at all. Again there is big, fast-growing Asian demand for high-quality meat and the UK will be seeking a piece of the action by joining CPTPP, which I know will bring benefit to his excellent local farmers.
A huge number of constituents have written to me with deep concerns that the Government will sell out our standards for a trade deal. Although the UK is a world leader in sustainable farming and high animal welfare standards, Australian agriculture lags far behind. The Royal Society for the Prevention of Cruelty to Animals, the Trade Justice Movement and Compassion in World Farming have voiced concerns that a deal with Australia would
“betray the public, farmers and animals”.
Chlorine-washed chicken, sow crates and battery-caged hens are all banned in the UK but are common practice in Australia. The Government have repeatedly promised that food standards will not be lowered in any trade negotiations, but can the Minister give a cast-iron guarantee and promise us that this tariff deal will guarantee that goods made to a lower standard will not be imported to the UK?
I thank the hon. Lady for that question, and there is a cast-iron guarantee that our standards will not be compromised on. She is an SNP Member, so may I say to her that it would be high time for the SNP to start thinking about whether it will ever back any trade deals? It never backed any trade deals promoted by the European Union, let alone by the UK, and the SNP aspires to rejoin the EU. On Australian standards, she might want to have a word with RSPCA Australia. I have already pointed out that Australian animal health standards are rated five out of five. Australia has also banned some practices that are not banned in the EU, such as the castration of chickens or the production of foie gras. So if she sat down with the RSPCA Australia, it might give her a robust view of how good Australian animal welfare standards are.
May I commend my right hon. Friend on the trade deals that have been secured so far? Can he confirm that all these trade deals and the proposed one with Australia will add value to the UK economy without compromising existing trading arrangements with high-value, mature markets such as the EU, which are crucial to exporters in my constituency?
My hon. Friend is right on that and he is right to highlight that this is not an either/or; this is not either we have trade with the EU or we have trade with non-EU trading partners. It is absolutely our objective, going back to the manifesto he and I were both elected on, to have 80% of UK trade to be covered by free trade agreements within three years. That includes the EU, but it also includes new trading partners. CPTPP represents 13% of GDP—that would rise to 16% when the UK joined- and it crosses four continents, including old friends such as Australia, Canada, Japan, Singapore and New Zealand, as well as growing markets such as Vietnam and Mexico, where there are great opportunities for us to sell more UK agricultural produce and other things into.
When I met farmers in Luton South, they stressed to me the importance of trade deals not undercutting our food and animal welfare standards. In Australia, live farm animals can be transported over land for slaughter for up to 48 hours without rest—six times the limit that is currently allowed in Britain. On the grounds of both ensuring a level, competitive playing field and ensuring the humane treatment of farm animals, does the Minister think it is appropriate to reduce tariffs to zero on meat from animals that have been subject to that sort of cruelty?
I refer the hon. Lady back to the fact that Australia is highly rated by independent bodies for its high quality of animal health, rated five out of five by the World Organisation for Animal Health, and our import standards would not change as a result of this or any other free trade agreement.
It seems that the animal welfare and food standards scaremongering is out in full force again. Does my right hon. Friend agree that given that Australia’s food standards are better than the European Union’s and that its animal welfare is equivalent to the United Kingdom’s, a free trade agreement with us will have an absolutely negligible impact on our own high UK standards?
My hon. Friend is absolutely right. As we have said repeatedly, there will be no compromise on our own standards. I agree that Australia ranks very well overall. Obviously its standards are different, but overall its animal welfare standards rank extremely highly—five out of five. As I said, it banned practices that are prevalent in the EU, such as the castration of chickens and the production of foie gras. It is not a simple like-for-like comparison. The most important thing to note, though, is that our import standards will not be changed as a result of the deal.
I do just wonder whether the Minister is aware that New Zealand and Australia are actually different countries. Farmers in Wales are very concerned about this deal, and rightly so in Gower. What reassurances can he give that unilateral trade liberalisation with Australia will not set a precedent for future deals?
I am well aware that Australia and New Zealand are different countries. As the parliamentary president of Conservative Friends of Australia, I am pretty familiar with our two great friends and allies on the other side of the world. I think the hon. Lady is exaggerating the threat, as she sees it, from Australian agriculture. Australia is already exporting hugely into Asia, which is where our opportunities lie as well. When it comes to British beef in our supermarkets, there is strong “buy British” branding in the UK, and I do not see that changing overnight. Some 81% of beef sold in the UK has either UK or other home nations branding, and 100% in many of our major supermarkets. I do not see that changing as a result of any trade deal.
I am sure my right hon. Friend will agree that these trade deals should not be seen as the end of a conversation but the start of an ongoing one. Can he assure my constituents in the Black Country and businesses in the residual supply chain that, going forward, they will be placed at the heart of his negotiating strategy and that of my right hon. Friend the Secretary of State for International Trade?
My hon. Friend is absolutely right. In any trade deal, we have to look across the whole piece. His question is just about agriculture, but we should look at the other opportunities for the Black Country to benefit from—for example, 5% car tariffs and the huge amount of machinery sold by this country into Australia, including from Northern Ireland. There are other great opportunities in, for example, financial services, gin, vodka and cheese. Australian cheese tariffs can be as high as 21%. There are big opportunities for UK exporters not limited just to agriculture.
Farmers in Scotland and across the UK fear this trade deal with Australia could put them out of businesses and flood our supermarkets shelves with inferior-quality products. I know that the Minister rejects that and does not recognise those fears as being valid, so can he explain why it seems that our farmers and consumers simply do not understand how fabulous this deal is, or could it be that the Government are being disingenuous about the impact this deal will have on our farmers and our food?
The hon. Lady used the word “disingenuous”, but I notice that, while she talks a good game about supporting British meat farming, her neighbouring SNP council, South Ayrshire Council, put out a tweet just recently encouraging residents to eat 75% less red meat. She cannot have it both ways: she cannot be encouraging less red meat consumption and then complaining about a trade deal that she thinks will import a lot more of it. I remind her that Scotland will benefit very strongly from this deal. I notice, again, that we do not hear anything from the SNP about Scotch whisky and the huge amount of other Scottish goods that we are selling in Australia through this deal.
Mr Speaker, the deep historical relationship that we have with Australia is perhaps exemplified by the fact that your Chair is a gift from Australia. Does my right hon. Friend agree that this agreement is an opportunity to deepen the relationship with our kith and kin in Australia and should be celebrated and championed and not denigrated?
My hon. Friend is absolutely right. I have relatives right the way across Australia. My aunt emigrated there—I cannot remember what they were called. Was it the ten bob poms?
The ten pound poms! Thank you, Mr Speaker. My aunt emigrated there in what must have been the late ‘50s. I have relatives there; many of us have relatives there. We have an incredibly strong and close relationship with Australia. It is not just about family and kinship; it runs across defence, security, culture and sport, and also trade. Australia is a major country when it comes to promoting global free trade. That is exactly the right place for this country to be in as well.
There is concern from farmers in Wales and across the UK who face the potential of losing out from an unlevel playing field as a result of this deal. Will the Minister publish a rigorous economic assessment of cumulative impacts on our farming communities if zero-tariff and zero-quota deals are agreed not only with Australia, but with other countries such as New Zealand, Canada, Brazil and others?
The hon. Gentleman makes a fair point. In the past week, I have met twice with NFU Cymru and the Farmers Union of Wales to discuss a particular point. Before each negotiation, we publish a scoping assessment, which, obviously, does not have any idea what may or may not be in the deal. It looks at the concept of the deal. We then publish an impact assessment, which we will be doing later this year, when we can see the text of the deal. We will be involving Parliament, in the way that we did when we set up the Trade and Agriculture Commission, and that will inform that debate going forward. That is the right way to proceed and I am confident that our scrutiny arrangements are absolutely robust.
A free trade agreement between the UK and Australia is something that I welcome, as it can be of huge benefit to both our countries. We are the closest of friends and share so much in common. However, I share the concerns of farmers in Cumbria and across the UK that the FTA might damage our farming sector. It is important that Parliament is able to scrutinise these FTAs—something that is not happening with this deal. The Constitutional Reform and Governance Act process is insufficient and the much-welcomed Trade and Agriculture Commission that we all fought for is now not currently constituted and is therefore not looking at this deal. Will the Government commit to meaningful parliamentary scrutiny of this agreement and act to reconstitute the Trade and Agriculture Commission immediately, and also consider tariff-rate quotas as a sensible way of safeguarding the agreement?
I thank my hon. Friend for that question. He is hugely knowledgeable of this sector, especially in relation to agriculture, and I respect that. I am pleased that he welcomes the deal overall. The deal is not done yet, which is the first important thing to recognise. There is no text in front of us to scrutinise. The reconstituted Trade and Agriculture Commission will be set up soon and definitely in good time to scrutinise this deal. When it comes to safeguards, again that will be specified in the free trade agreement, but typically it will allow either party temporarily to increase tariffs or to suspend liberalisation in the event of an unexpected or unforeseen substantial increase in imports. Again, it is normal that, in a free trade agreement, those safeguards are in place.
Contrary to what the right hon. Member for Islington South and Finsbury (Emily Thornberry) said, I am not a member of a right-wing think tank; I am the son of a farmer and I represent a farming constituency. Nevertheless, I am very supportive of any trade deal with Australia that maintains a fair and level playing field. Will my right hon. Friend set out what exact role the Trade and Agriculture Commission will play in making sure that that is the case?
I thank my hon. Friend, not least for his expertise in this sector. The role of the Trade and Agriculture Commission is set out in statute in both the Agriculture Act 2020 and the Trade Act 2021. We are expecting it to be set up soon, and we also have to respond to the report from the original Trade and Agriculture Commission set up last summer. I would expect it to be a panel of experts who will provide this Parliament—both Houses—with expert insight into the terms of this or any other free trade agreement, particularly in relation to agriculture and standards.
Does the Minister appreciate that doing this deal with Australia would wreck the UK’s reputation on environmental issues, since Australia has the highest rate of deforestation in the OECD, driven by the livestock industry, and Australian agriculture uses 71 highly hazardous substances that are banned in the UK, including neonicotinoids and hormone injections for beef? Does he think losing that reputation is a price worth paying for this trade deal?
I am slightly surprised by the hon. Lady’s question, and again I repeat the fact that the SNP has never supported any trade deal so I am slightly doubtful that whatever reassurances I give her will make her change her mind. However, I say again that there will be no compromise on the UK’s food safety, animal welfare and environmental standards in relation to this or any other free trade agreement. Hormone-injected beef will not be allowed into this country. It is not allowed into this country today; our standards will be unchanged and it will not be allowed in the future. Australia does sell us beef and lamb, however, and I expect that will continue under this agreement.
As my right hon. Friend has said, global demand for lamb and beef is rising rapidly, particularly for British meats around the Asian-Pacific market. Does he therefore agree that the free trade agreements that he has already made and is currently pursuing are creating fantastic opportunities for British farmers, as confirmed by Minette Batters, president of the National Farmers Union, in her email to us earlier today?
My hon. Friend is absolutely right. This is about opportunities; this is about opportunities for using UK free trade agreements to enter fast-growing markets around the world—the opportunity provided by the gateway of joining the CPTPP, a high-standards free trade agreement of 11 Pacific nations. However, we are not just waiting for free trade agreements; we are using talks on market access to make sure that our agricultural produce gets sold into the likes of China, Taiwan, Hong Kong and others using our joint economic and trade committee, and making sure that, wherever possible, we can meet the growing demand for high-quality meat products in particular in Asian markets. I said earlier that meat consumption is projected to rise by nearly 73% by 2050; the vast majority of that will be in those fast-growing Asian markets.
I am now suspending the House for two minutes for the necessary arrangements to be made for the next business.
(3 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Hollobone. This has been one of the finest Westminster Hall debates that I have attended in 16 years as a Member of Parliament. It is a genuine pleasure to be able to respond to it.
I pay tribute to my hon. Friend the Member for Wycombe (Mr Baker) for securing the debate. He made an excellent speech that made my case for CPTPP as well as I could. He gave a brilliant exposition of the benefits. He rightly points out that he was an early enthusiast for joining the CPTPP. Over the years, he has been a forceful advocate for a sovereign, independent trade policy. I know he has welcomed the FTAs that we have already agreed with 67 countries, with Serbia added to the list this week, and with the EU itself, as he pointed out.
I hope to cheer him further by outlining our plans to unleash even more of Britain’s trading potential through accession to the comprehensive and progressive agreement for trans-Pacific partnership. That is quite a mouthful and comes with the world’s hardest-to-pronounce acronym, the CPTPP—in trade, the longer the term, often the more important the content, and that is true of this agreement.
We know that 2020 was a time of unprecedented challenge on every level, but CPTPP is going to be part of the future of this country. Our accession to CPTPP will be central to our endeavour to build back better and to assist our economic recovery, and our preparations are advancing at pace. As colleagues know, on 1 February we submitted our notification of intent to begin the accession process. That was the first formal step before formal negotiations start later in the year. Joining CPTPP would give British firms access to a free trade area worth £9 trillion, made up of 11 like-minded nations that share our commitment to free trade, international co-operation and the rules-based system.
Britain is the first new country to apply to join this trade partnership since it was established in 2018, with big economies such as South Korea, Thailand and Taiwan. A good point was made by my hon. Friend the Member for Gloucester (Richard Graham), who knows the region incredibly well, as the Prime Minister’s trade envoy to Malaysia and the Association of Southeast Nations region. All of those also show interest in membership.
It is a high-standards agreement between sovereign nations, which together account for 13% of global GDP. UK membership would increase that share by nearly 20%, to 16% overall. As my hon. Friend the Member for Wycombe pointed out, we are not a small nation. Equally, nothing in CPTPP will impinge on our domestic right to regulate, which was one of his key questions.
This is very much a business-focused agreement, removing tariffs on 95% of goods traded between members and reducing other barriers to trade. The UK already does more than £110 billion-worth of trade with individual CPTPP members, and the average growth rate is 8% per annum. Some of our closest trade allies—Japan, Canada, Australia, New Zealand and Singapore—are there, as are big actual or potential markets, such as Mexico, Vietnam and Malaysia, but our membership would take those trade ties to another level, opening up even more opportunities for businesses of all kinds and all sizes across the United Kingdom, spurring growth, generating jobs, delivering prosperity the length and breadth of our country and helping us to level up opportunity nationwide.
This is good news for all regions and nations of the UK, which can strengthen their already lucrative trade ties with these markets. In 2019, for example, more than £3 billion-worth of goods were exported to CPTPP nations from the east midlands alone, together with £2 billion-worth from the north-west of England and £2.4 billion-worth from Scotland. With accession, those bonds of prosperity are set to strengthen and deepen in the years ahead.
To look at specific benefits for Britain in cutting-edge sectors that are shaping the world of tomorrow, from digital trade to tech and automation—these points were made by my hon. Friends the Members for Wycombe and for Milton Keynes North (Ben Everitt)—accession would allow us to work even more closely together with other members on the development of modern digital trade rules that facilitate free and trusted cross-border trade flows and remove unnecessary barriers to business. That point was also made extremely well by my hon. Friend the Member for East Surrey (Claire Coutinho), who spoke first in the Back-Bench contributions.
The depth and breadth of the CPTPP’s e-commerce chapter provide a platform for the UK to help to shape, together with big global players in the sector, the emerging digital trading rulebook. These markets offer exciting new opportunities for British tech innovators as we seek to bind the UK, which is after all Europe’s tech capital, ever more closely with the dynamism of the Asia-Pacific region, unlocking ever greater digital trade potential between us as we build on the nearly £19 billion-worth of digitally delivered services that the UK exported to CPTPP countries in 2019. Those points were localised really well by my hon. Friend the Member for Milton Keynes North in his “Global MK” speech, which I think will have gone down very well in his local area.
Accession would also make it easier for British business people to travel between member countries via the potential for faster and cheaper business visas—a point made very well by my hon. Friend the Member for Don Valley (Nick Fletcher). To return to a key question from my hon. Friend the Member for Wycombe, access to the agreement’s dedicated chapter on small and medium-sized enterprises will ease barriers to trade for small firms by cutting tariffs and reducing red tape, giving thousands of British SMEs greater access to these vibrant markets. A really important feature of modern free trade deals is the SME chapter. A free trade agreement can seem incredibly forbidding—a typical free trade agreement has 700 or 800 pages. Someone running an SME will not have the time, let alone perhaps the inclination, to read a 700 or 800-page agreement. The idea of the SME chapter is that it allows a company to navigate the free trade agreement and take advantage of things such as Government publicity about what is available there; it eases the passage for an SME and particularly a first-time exporter.
In addition, there is the potential for swifter elimination of tariffs on key British exports, including whisky. I look over to my friend from the Democratic Unionist party, the hon. Member for Strangford (Jim Shannon). There is that potential on whisky tariffs. Of course, everybody likes to think about Scotch, but what about Irish whiskey? I have a very good relationship with the Irish Whiskey Association, and we also always promote Irish whiskey—as well as cars, a point of particular relevance to my hon. Friend the Member for Dudley North (Marco Longhi), and the automotive industry.
We could also benefit from the rules-of-origin provisions, which mean that goods produced in any country within the CPTPP will be classed as originating in the free trade area. To give just one example, cars made in the UK could use more Japanese-made parts, such as batteries, and still qualify for tariff reductions when the completed cars are exported to other CPTPP members—for example, Canada. They would count as being of qualifying CPTPP origin. That is a win-win scenario for the British economy.
On parliamentary scrutiny, which has been raised a couple of times, this Government are committed to transparency and we will ensure that parliamentarians, UK citizens and businesses have access to information on our trade negotiations. On 7 December last year, the Secretary of State for International Trade made a written statement outlining the transparency and scrutiny arrangements that will apply to our new FTAs. I am pleased to confirm that those will also apply to the CPTPP negotiations. Before the launch of formal negotiations, we will publish our objectives, alongside a response to the public consultation that has already been held, which the Opposition Front-Bench spokesman, the hon. Member for Sefton Central (Bill Esterson) referred to, and an initial economic scoping assessment, which the Chair of the International Trade Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), referred to. He seems, however, already to have made up his mind about what will be in the economic assessment, but I shall see him later, when I appear before his Committee, and perhaps we will continue the discussion at that point.
We will continue to keep Parliament and the public informed of the progress of negotiations via regular updates, working closely with the relevant Committees in both Houses. My hon. Friend the Member for Wycombe sought an explainer. That is exactly what a lot of the documentation is intended to do—to explain the potential and actual benefits from the free trade agreement. As to the point that the hon. Member for Strangford made about a full debate, I would welcome one. I welcome this morning’s debate, and in the Department for International Trade we welcome the opportunity to explain and expand on Britain’s free trading future.
Most of the questions raised by the hon. Member for Sefton Central will, I think, be answered when we publish the negotiation objectives shortly, but to deal with one of his points—the idea that CPTPP will be a back door for a trade deal with China—I cannot make it clearer that there are no plans or intentions for a UK trade deal with China. It is very unlikely that China would meet the requirements for the CPTPP at the moment, and it is worth not forgetting that it is subject to the veto of existing CPTPP members, which, as the hon. Gentleman pointed out, do not yet include the UK. However, we might ask whether China would be welcomed by the existing members of the organisation.
We heard some rather tired, familiar arguments from the SNP Front Bench. I think that the party is always much more interested in debating Brexit than the UK’s trading future. The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) did not like CPTPP, and I was not the least bit surprised, because the SNP has never supported any trade agreement negotiated by either the European Union or the United Kingdom. The hon. Gentleman may have a nice backdrop, but as to the content of his speech, it expounded the virtues of EU trade agreements, not a single one of which the SNP ever supported. The SNP voted against the Canada deal and it failed to support the Japan deal and the Singapore deal. Those deals were negotiated by the EU, which the hon. Gentleman now praises; so I do not think we will take any words from him. I did not for a moment expect him to support the CPTPP trade deal. The SNP is anti-trade, anti-Scotland and anti-Scotland’s best economic interests.
The hon. Member for Strangford raised an important point about ISDS. I should point out that ISDS procedures are already in place in 90 bilateral UK trade deals. We have never lost a case. We strongly believe that we have nothing to fear from ISDS, but we will shortly publish our negotiation objectives, which will include that important question.
On the point from the SNP about what is really in Scotland’s best interests, does my right hon. Friend agree that it is curious that at this time, when those of us who are trade envoys to the south-east Asian region are doing so much to push for greater access for some of our great drink and food products, including Scotch whisky, the hon. Gentleman cannot see the advantages of the dialogue partner status with ASEAN and the TPP arrangements that the Minister is pursuing?
Thank you, Mr Hollobone. I will not need three minutes, but I will answer my hon. Friend’s excellent intervention. I am always shocked by the insular nature of the SNP’s approach to trade and the fact that, by the look if things, it does not see any of the advantages of any trade agreements with anyone, but particularly with the far east. The potential for growth for Scottish produce, in particular, in the far east is huge—not just whisky, but also Scottish seafood produce and so on—but the SNP failed at each available opportunity, even when we were members of the European Union, to support any of those trade deals.
I go around the world battering down barriers, particularly to Scotch and Irish whiskey. I have been in Peru and engaged on its metal test. I have been in Taiwan and engaged on its lack of requirement for a lot code on bottles, which incites the counterfeiting of alcohol, and so on. We as the UK Government engage all the time on behalf of Scottish goods and services exports right the way around the world, and we make sure that Scotland’s voice is heard around the world and Scottish exports are boosted.
We have been consistently clear that the terms of UK accession to CPTPP must be right for British companies, right for British consumers and right for British farmers. We will negotiate firmly but fairly, and our red lines are well known. The NHS remains off the table, as do our world-class standards, from food and animal welfare to the environment—a data protection point brilliantly raised by my hon. Friend the Member for Ynys Môn (Virginia Crosbie).
Accession to CPTPP gives the UK the ability to foster stronger diplomatic and trading links with nations in the Indo-Pacific region, which is at the vanguard of change in the global economy and will be the engine of growth for decades to come. Joining this agreement will help us to harness the export and investment opportunities that lie before us as the world resets, recovers and returns to growth in the wake of the pandemic, and as we build back better, greener and more sustainably.
I hope my remarks have given a flavour of the vast potential that our membership of the CPTPP promises to bestow during this exciting time; its geostrategic importance, which was raised by my hon. Friends the Members for Wycombe and for Gloucester and others; the Indo-Pacific tilt, and the fact that we are doing this with some of our best friends; and the huge markets that are involved, with great potential. I thank my hon. Friend the Member for Wycombe again for securing this invaluable debate.
(3 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
May I say what a pleasure it is to serve under your chairmanship, Ms McVey? I congratulate the hon. Member for Liverpool, Riverside (Kim Johnson) on securing the debate and, in particular, on her warm words about the Yemeni community in Liverpool, whom the hon. Member for Liverpool, Wavertree (Paula Barker) also mentioned. I also thank all right hon. and hon. Members who have contributed to the debate.
Let me begin by stating the obvious: the humanitarian crisis in Yemen is nothing short of appalling. That is a matter on which all parts of the House will resoundingly agree. The situation was well described by the hon. Member for Liverpool, Riverside, as well as by others, including my hon. Friend the Member for Meon Valley (Mrs Drummond). The number of civilians killed, and the cholera and covid situations, have piled misery upon misery.
Yemen is a beautiful country of proud people, a point that was well made by my hon. Friend the Member for Meon Valley, who grew up there. Yemen has contributed so much to the historical and cultural fabric of our global community. As all speakers have said, anyone who has heard or read about the harrowing plight of the people of Yemen cannot fail to be moved by the unimaginable suffering experienced there daily. Their dire struggle against a seemingly relentless charge of civil war, natural disaster, hunger and disease is truly unthinkable.
For there to be any prospect of peace or any notion of normality for the Yemeni people, it is clear that there must be a sustainable political settlement. That is the only way to address the worsening humanitarian situation and bring real long-term stability to the country. That is why the UK Government are straining every diplomatic sinew to help to bring an end to the conflict in Yemen. The increased engagement that we are seeing from the US and Oman is certainly timely and welcome, and the UK Government were pleased to see Saudi Arabia making clear its commitment to a peace deal in recent public comments. We continue to provide our full backing to Martin Griffiths, the UN special envoy, in his laudable efforts to reach a peaceful settlement, a point that was well made by many others, including my hon. Friend the Member for Meon Valley, and the hon. Members for Liverpool, Riverside and for Enfield North (Feryal Clark).
On overseas aid, despite financial pressures—not least from covid-19, which has stolen lives and livelihoods in this country and across the world—the United Kingdom has maintained its position as one of the leading aid donors to Yemen. In this financial year, UK Aid will feed 240,000 of the most vulnerable Yemenis every month, support 400 healthcare clinics, and provide clean water for 1.6 million people.
We recognise the concerns about our arms sales policy, and I assure hon. Members that the Government take our arms export responsibilities very seriously indeed, as my hon. Friend the Member for Dudley North (Marco Longhi) said. It must not be forgotten that the UK’s defence and security industries make an important contribution to the economy, enhancing our global competitiveness and boosting our economic growth, not to mention sustaining tens of thousands of highly-skilled manufacturing and engineering-based jobs across the UK. A lot of the speakers in this debate come from the north-west region, and many of those jobs are located there, in Lancashire, particularly around Preston, as well as in Cheshire and other areas in the north-west of this country.
Our policy on export control is not to frustrate or hamper the ability of those responsible companies to trade, but to make the world a safer place for us all by operating a clear, proportionate and robust system of export controls in the UK.
We rigorously assess every application on a case-by-case basis against the consolidated EU and national arms export licensing criteria, known as the consolidated criteria, first introduced by Robin Cook in 2002 under the last Labour Government and updated by Vince Cable in 2014. The consolidated criteria provide a thorough risk assessment framework for evaluating export licence applications and require us to think hard about the impact of providing equipment and its capabilities. As part of the assessment process, we draw on a range of sources and information. That includes insights from non-governmental organisations, international organisations and our overseas network. Decisions on export licences are not taken lightly, and we have been clear that we will not license the export of equipment where to do so would be inconsistent with the consolidated criteria. The Government’s position on arms exports to all countries remains that such exports require an export licence and that all export licence applications will continue to be carefully assessed against the consolidated criteria on a case-by-case basis.
On scrutiny, contrary to what the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) said, the UK operates one of the most transparent export licensing systems in the world. We publish official statistics both quarterly and annually of all our export licensing decisions, including details of export licences granted, refused and revoked. UK export licensing is also accountable to Parliament through a statutory obligation to provide an annual report on strategic export controls. Parliamentary oversight is provided through the Committees on Arms Export Controls, which are made up of members of the Foreign Affairs, Defence and International Trade Committees, as well as members of the International Development Committee. That arrangement ensures that appropriate scrutiny from a range of perspectives can be applied.
The hon. Member for Cardiff West (Kevin Brennan) mentioned the case of Luke Symons. As he knows, the Foreign, Commonwealth and Development Office is in contact with the Symons family, and I am delighted that he has had the opportunity to meet the Minister for the Middle East and North Africa, my right hon. Friend the Member for Braintree (James Cleverly), and the Foreign Secretary. We warmly endorse his words calling for Luke Symons’ release, particularly during this holy month of Ramadan.
I hope, Ms McVey, that I have impressed upon you that the Government take their export responsibilities seriously. The Export Control Act 2002 requires Government to give guidance about the general principles to be followed when exercising licensing powers, which we do through the consolidated criteria. We have been abundantly clear that we will not issue a licence where to do so would be inconsistent with the criteria. For the avoidance of any doubt, our assessment of licence applications also carefully considers our obligations under the United Nations arms trade treaty and other rules of international law.
The Government desperately want to see a long overdue end to the conflict in Yemen. We fully support Martin Griffiths and the United Nations in their efforts to broker a ceasefire and kick-start the political process to secure a pathway to peace. From the passionate contributions we have heard today, I know that Members from all parties across the House will echo that sentiment and share our high hopes that an end to the conflict in Yemen is on the horizon.
(3 years, 7 months ago)
Commons ChamberSweden is a close ally of the UK on trade policy and a close partner in our day-to-day trading relationship. I was the first UK Minister to visit Sweden after the EU referendum, and through our excellent DIT team in Stockholm, we work hard to promote trade and investment between the UK and Sweden.
I thank my right hon. Friend for his answer. According to a recent report by the Swedish chamber of commerce for the UK, almost 40% of Swedish businesses are optimistic about business growth in the UK and 70% continue to see the UK as an important step in international expansion. Does he agree that developing links with this greatest Scandinavian country, which shares our values and our growing economy, would be good for the UK, good for jobs and good for developing relations with our partners in the European Union?
I commend my hon. Friend for his work as the chairman of the British-Swedish all-party parliamentary group and his mention of the excellent Swedish chamber of commerce for the UK, which was on one of my recent webinars. In my recent call with Swedish Trade Minister Anna Hallberg, we agreed to co-host a bilateral trade and business forum later this year. We have excellent trade co-operation with Sweden in sectors such as technology, financial services, defence and clean energy, so I very much share my hon. Friend’s optimism.
The UK greatly values its trade with each of Germany, Italy and Ireland. All trade data is currently volatile, especially due to the pandemic, but data released earlier this week showed a monthly upwards bounce in UK goods exports to the EU to £11.6 billion in February from £7.9 billion in January, including increases to all three countries referred to in the question.
I appreciate that those on the Government Benches prefer breathless rhetoric to harsh reality, but the statistics to which the Minister refers are really quite clear for rural Scotland. Its meat exports remain down 52%, fish and shellfish are down 54%, dairy and eggs down 39%, beverages down 34%, cereals down 40%, and fruit and veg down 54%. Would the Minister like to apologise to the tens of thousands of people across rural Scotland who are in daily dread and fear of what their economic future holds?
I thank the hon. Member for that follow-up question, and I wonder if, to coin a phrase, he has perhaps taken his eye off the ball, because actually there was a bounce back in trade in February. I will give him an independent view from the Office for National Statistics, which on the trade data says:
“Exports of food and live animals to the EU increased…in February 2021, after being significantly impacted in January… Exports of fish and shellfish to the EU also saw an uptick in February 2021 as exporters adjust to new regulations following the end of the transition period. The disruptions to food exports in January 2021 appear to have largely been overcome and may have only had short-term impacts on trade.”
That is from the Office for National Statistics, which he may seek to consult.
I am delighted the Minister has quoted the ONS, because figures out this week show economic output remaining nearly 8% below the pre-pandemic peak and exports to Germany, Italy and Ireland down by as much as 50% to 75%. These are not teething problems; they are the bite of long Brexit. Does the Minister agree with Matt Griffith from the British Chambers of Commerce that his members are experiencing a
“permanent deterioration in their competitive position due to higher admin, paperwork and shipping costs”?
It is good to have an argument about statistics, but actually the UK exports to the EU in February of £11.6 billion were only just below the monthly average for the whole of 2020, which was obviously very impacted by the pandemic, of £12 billion. I would caution against using statistics in this way—we need to see the bigger picture—but I refer the hon. Member back to what the ONS said. On the help we are providing for exporters, we have various Government helplines, the Brexit business taskforce, Brexit SME support and various measures in place specifically to support the agricultural sector and the Scottish seafood sector.
Let us come away from statistics and back to what is happening. JP Morgan boss Jamie Dimon wrote to staff this month warning them that it will move all its EU-faced business out of London and into Europe. He says:
“Brexit was accomplished, but many issues still need to be negotiated. And in those negotiations, Europe has had, and will continue to have, the upper hand.”
The financial services sector is a huge employer in Scotland, and it is also facing this Westminster-inflicted disaster. Can the Minister now see why people in Scotland want to have their choice and their say over their own future?
The hon. Member will know that there is of course a financial services memorandum of understanding between the UK and the EU, and we are acutely aware of the importance of the financial services sector, not least to my constituency as well. Many, I have to say, were surprised when the SNP voted for no deal on 30 December, especially after Nicola Sturgeon called it “unthinkable”. However, I have to say that I was not as surprised, because over the years I have seen the SNP vote against every single UK or EU trade deal, so the idea that it was going to vote in favour of a trade deal between the two of them was, frankly, highly unlikely. The SNP is anti-business, anti-jobs and against Scotland’s best interests.
The UK is a world leader in professional business services and the second biggest exporter of PBS globally, with a trade surplus of £33 billion in 2018. To support this important and diverse sector, we are seeking ambitious FTA commitments in cross-cutting areas like mobility and digital, as well as tackling specific behind-the-border regulatory barriers such as recognition and professional qualifications.
The Minister will forgive me for being a bit concerned about ongoing red tape in post-Brexit trade with the European Union. This is affecting businesses in Bracknell and beyond. Will he please outline what his Department is doing to support the Cabinet Office in resolving this?
DIT has very active participation in the current helplines for businesses facing issues in exporting to the EU. We participate, of course, in the Brexit business taskforce, we provide a DIT internationalisation fund for those looking to export, and we have 300 international trade advisers across the country and at posts right across the European Union. This is a whole-of-Government effort, and, as I said earlier, the data are starting to show encouraging signs of a recovery in our trade.
Many of my Kensington constituents work in professional services, whether financial services, law, consulting or accountancy. These industries account for a huge amount of gross value added to our economy. Can my right hon. Friend assure me that the professional services sector will be at the forefront of our minds in negotiating future trade deals?
My hon. Friend and neighbour puts it extremely well. Professional business services are vital for her constituency, for mine and for the whole country. Around 79% of gross value added and 80% of employment in this country is in services. As she knows, we secured special provisions for legal services in the EU agreement. I meet regularly with bodies such as TheCityUK, the City of London Corporation, UK Finance, the Royal Institute of British Architects, the Institute of Chartered Accountants in England and Wales, the Law Society, the Bar Council and others to ensure that professional business services are right at the heart of the UK’s trade agenda.
The UK has long supported the promotion of our values globally. We are clear that more trade does not have to come at the expense of human rights. Although our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including human rights and responsibilities.
In a leaked recording last month, the Foreign Secretary said he wants to do trade deals with countries that violate international standards on human rights, as not doing so would mean missing out on profit. Will the record now be set straight? Does the Minister recognise the remarks made by the Foreign Secretary as Government policy and is this the view shared by the Department for International Trade?
I think the hon. Lady has misquoted the Foreign Secretary in her account of what he said, but let me be absolutely clear that we will continue to encourage all states to uphold international human rights obligations. The UK has long supported the promotion of our values globally and remains absolutely committed to its international obligations. We are currently negotiating with Australia, New Zealand and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. They will all be important partners and they are all places that the UK will be engaging with when it comes to questions of maintenance and international support for global human rights.
I will make the Minister’s life a bit easier when answering the question. Last month, the Foreign Secretary explained that there were some countries whose behaviour on human rights put them “beyond the pale” when it comes to trade agreements, but that otherwise we should be open to deals with anyone. Can the Minister of State save us some time by listing those countries whose behaviour the Government regard as beyond the pale and those that they regard as acceptable?
Again, I will have to go back and see exactly what the Foreign Secretary said, but I think the hon. Gentleman’s interpretation of what he said is not quite right. Let us be absolutely clear. I ask him to have a look at the roll-over trade agreements we have already done with 66 countries and see if he can identify any diminution of human rights in the agreements we have already done.
I thank my hon. Friend for promoting the trade agenda so effectively in Wakefield. He is quite right that free trade agreements have a crucial role to play in enabling the UK to seize international opportunities to support that economic vision. Joining CPTPP now will benefit businesses in a number of ways, including through ambitious rules supporting digital trade and reduced tariffs on UK exports, enabling us to build back better and building more opportunities for businesses, supporting jobs in constituencies such as Wakefield.
I commend my right hon. Friend for his work to promote apprenticeships, first in the Government and then as Chair of the Education Committee. It is too early to have final figures for 2021, but we are confident of achieving the legislative target set, building on our previous performance. According to Cabinet Office statistics, DIT achieved 3.5% of its total workforce in England as apprenticeship starts in 2019-20, up from 1.1% the year before, easily clearing the target of 2.3%.
(3 years, 8 months ago)
Commons ChamberI beg to move,
That this House insists on its Amendments Nos. 3C and 3D and disagrees with the Lords in their Amendment No. 3E.
Let me start by saying that I heard my hon. Friend the Member for Wealden (Ms Ghani), and the apparent targeting of her in an intimidatory way by anybody, including foreign embassies, is totally unacceptable. I will pass her comments directly to the Foreign Secretary. The Government take very seriously indeed the intimidation of Members of Parliament, as indeed do the House authorities. I remember that about 10 years ago, in a meeting, actually, with Lord Alton and the North Korean Speaker, I was shoved by a North Korean diplomat, and it was taken up very seriously by this House and by the Foreign Office at the time.
The Government agree with the principle that our proposed free trade agreements should be subject to the most searching parliamentary scrutiny in any instance where genocide may be occurring. The amendment in the name of my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) passed by this House on 9 February delivers on that principle, and that is why the Government continue to support it today.
That amendment ensures that the Government must put their position on the record in writing, in response to a Select Committee publication raising credible reports of genocide in a country with which we are proposing a bilateral free trade agreement. Where the Committee is not content with the response, it can insist on a parliamentary debate, and the Government will be obliged to make time for that.
The amendment also affords the responsible Commons Select Committee the responsibility to draft the motion for debate. That is a very powerful ability for Parliament to stop any free trade agreement negotiations. This is a substantial concession, affording Parliament significant control over the process, and it has the Government’s full support. On timing and effectiveness, to be very clear, the Government expect that their production of a report and the scheduling of any subsequent debate would be undertaken swiftly and within agreed timescales.
I note that in the amendment passed by the Lords, tabled by Lord Alton, peers have removed the role that they had previously proposed for the High Court. Hon. Members will recall that it is the Government’s long-standing position that the determination of genocide is a matter for a competent court. As I have previously made clear, competent courts include relevant international courts and domestic criminal courts.
Let me be clear on this point: we are not changing settled Government policy here. But likewise, in supporting the amendment from the Chair of the Select Committee on Justice, my hon. Friend the Member for Bromley and Chislehurst, we are not asking Parliament to make a determination on whether genocide has occurred. We are instead supporting a process that guarantees scrutiny and debate where Parliament has established for itself that credible reports of genocide exist. That is not the same as a judicial finding; nor is it intended to be. It is both a lower bar and swifter to establish credible reports than it is to prove genocide itself, and it leads to a debate on a substantive motion. I believe that that is the right way forward.
That brings me to the latest amendment passed by a former Liberal MP, Lord Alton, in the other place, which seeks to give a quasi-judicial role to an ad hoc parliamentary judicial Committee to make preliminary determinations of genocide. Lord Alton proposes that this ad hoc Committee would be comprised of five Members from either House who have all held “high judicial office”. It should be clear that this approach is problematic, first, because it is in conflict with the Government’s settled policy. Competent courts must make determinations on genocide, not parliamentary Committees.
I do not pretend to have expertise in this controversy, but I recall that one of the objections made when it was last debated was that an outside court would be taking power away from this Parliament if it were to make the determination, yet now the Government seem to be objecting to parliamentarians making the determination, even though they are highly qualified by dint of being former judges. That seems to be a little bit of a cake-and-eat-it situation.
I thank my right hon. Friend for that intervention, because there are clearly areas of possible confusion in this space, so let me be absolutely clear that the objection from the Government was because the High Court would be determining that there be a debate in Parliament. That is the crucial difference between the previous Alton amendment and our objections to this one. It is not about whether genocide is determined; it is about whether the courts dictate the proceedings of Parliament.
The approach that Lord Alton proposes is problematic, first, because it is in conflict with the Government’s settled policy, as I have said. Giving such a power to an ad hoc parliamentary judicial Committee would represent a fundamental constitutional reform. It would blur the distinction between courts and Parliament and upset the separation of powers, and so the Government cannot support it.
I am grateful to my right hon. Friend for giving way and for his comments earlier. However, I am slightly anxious that he may be misrepresenting the situation from the Dispatch Box.
Unintentionally, yes; forgive me. The term “quasi-judicial” has a meaning in law. The Alton amendment proposes that Members of the House of Lords who were previously judges are able to make and review any decision that the House of Commons Select Committee makes. It is not a court; it is just a Select Committee in the House of Lords. What has the Minister got to fear?
I thank my hon. Friend for that intervention, but the definition in the amendment of those who have held “high judicial office” would, in the view of the Government, inevitably confer quasi-judicial status on that Committee. By definition it would have five Members who have held high judicial office; it would be very difficult not to have the impression that it would operate in a quasi-judicial manner.
Will my right hon. Friend give way?
I am going to make some progress; there is very limited time.
Let me deal with the matter of engaging financial privilege. When an amendment is designated as engaging Commons financial privilege, the Government are procedurally required to provide this as the reason if disagreeing to the motion, although our reasons for disagreeing in this instance are much broader, as I have just set out. Financial privilege is sufficient reason in itself to deem the amendment disagreed to. The designation of Lords amendments as engaging financial privilege is an impartial process determined by the Speaker on the advice of House authorities.
We have listened closely to debates in both this House and the other place and take seriously the issue of genocide and the passions it has rightly stirred on all sides. Consequently, I can announce from this Dispatch Box today that the Government are willing to work with Parliament and relevant Select Committee Chairs should they choose to establish new Joint Committees or sub-committees or to engage the expertise of former members of the judiciary in considering reports of genocide in the context of our proposed free trade agreements.
For example, a new Joint Committee could be made up of members of both Select Committees. The relevant Lords Committee would have Cross-Bench membership and it would be possible for the convener to ensure that at least one of those members were an ex-judge. That is the established process followed for other Committees, which have been chaired by ex-Law Lords. In addition, with the agreement of the usual channels, it would be possible for additional Members with relevant expertise to be appointed to the Joint Committee, as is the case with the Lords Sub-Committee on the Northern Ireland protocol. The Joint Committee would also be able to take evidence from other former members of the judiciary, if desired.
I am going to make more progress.
In any case, it is not necessary to set out such provision in legislation. In fact, I would be surprised if hon. Members voted today to bind themselves by setting out in legislation the procedures of a parliamentary Sub-Committee. Parliament is free to amend its Standing Orders to set up Committees and Sub-Committees as it chooses, and to take evidence from those with legal expertise if it deems that to be necessary. Legislating for these matters would only serve to remove flexibility from both Parliament and Government should the issue of genocide as it pertains to trade arise in future. A more nimble and flexible approach may be necessary depending on the context.
The precise details remain to be worked out—by Parliament, quite properly—but I hope it will be clear from what I have said today that the Government are supportive of working with hon. Members on this issue, and we are committed to doing so in line with the process previously agreed to by this House on 9 February.
There is very limited time in this debate.
However, we regret that we cannot support the creation of a parliamentary judicial Committee as envisaged in Lord Alton’s amendment, as it blurs the distinction between the legislative and the judicial, and runs contrary to Government policy that it is for competent courts to make determinations of genocide.
Finally, I would like to highlight the statement that my right hon. Friend the Foreign Secretary made earlier today on the sanctions that the Government will be undertaking. I hope that that is another illustration of the Government’s commitment in this very important area, taking tough action on China in relation to Xinjiang with Magnitsky sanctions, in conjunction with our international allies.
In the light of what I have said, I hope hon. Members will support amendments 3C and 3D.
I inform the House that the Speaker has selected the amendment in the name of Nusrat Ghani.
Before I call the shadow Secretary of State, I inform the House that there will be a three-minute limit on speeches for Back Benchers. There is a countdown clock for those in the Chamber, and for those participating virtually it will be on their screens.
As a member of the Business, Energy and Industrial Strategy Committee, which recently produced our report on Uyghur forced labour in Xinjiang and UK value chains, I understand the concerns lodged around trading with countries where genocide is suspected to be happening, or, in particular, where it is felt it is almost certain that it is happening. The supply chains of all companies operating in this space need to either dramatically increase their capability and delivery of transparency, or accept the presumption that they are profiteering from exploitation.
It is who determines getting past the key statement of whether genocide is happening in law that this amendment questions, and I believe it is clear that the place for that determination is in the courts. The Government have been consistently clear that it is for competent courts, not Committees, to make determinations of genocide. I do not believe it needs a trade agreement discussion to engage in actions on concerns as significant as genocide. I welcome the statement earlier by the Foreign Secretary on taking steps, along with our partners, where evidence is apparent of actions incompatible with our values. I wholeheartedly support his words. Indeed, I would encourage him to go further.
I believe the amendment tabled by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) meets the concerns raised around parliamentary scrutiny in that, should a credible concern of genocide be raised within a country that we are proposing a new free trade agreement with, it ensures that a debate and a vote in Parliament would result. Credible reports rather than determination is a lower level of proof for stimulating this intervention, and that is wholly appropriate, as the practical difficulties in proving genocidal intent mean that genocide is very difficult to prove even when apparently obvious.
I am convinced of the need for us to ensure that any new free trade agreements should not be made with countries where there is a credible concern regarding genocide or, indeed, any other significant human rights issues, but I am not convinced that this amendment is the mechanism by which it should be done.
This has been a short but good debate. As my right hon. Friend the Member for North Somerset (Dr Fox) said, the amendment from the other place will have significant unintended consequences in creating a so-called Parliamentary Judicial Committee, destabilising the balance of powers between Parliament and judiciary while not actually helping those suffering at the hands of the Chinese authorities or those elsewhere in the world. When it comes to China, the UK is leading action internationally, as we saw earlier in this House, when the Foreign Secretary, who had already announced a series of targeted measures in respect of UK supply chains and trade, announced concerted international action through Magnitsky sanctions with 29 of our friends and allies. We will continue to hold China to account for its actions in Xinjiang.
This Bill is a hugely important and necessary piece of legislation for the UK economy. The sooner we enact it, the sooner importers, exporters and the general public can harness the benefit that it brings. Let us not forget that it is the Trade Bill—it is about trade. I will return to that in a moment.
The shadow Secretary of State spoke eloquently about human rights abuses in Xinjiang and I agreed with every word of what she described. Less than a year ago, however, she was seemingly urging us to do a trade deal with China. On 12 May 2020, from that Dispatch Box, she attacked the Government for engaging in negotiations with the United States. She said that she would not agree measures with the United States
“that would constrain the UK’s ability to negotiate our own trade agreement with China”.—[Official Report, 12 May 2020; Vol. 676, c. 111.]
[Interruption.] It is in Hansard. She should not have said it if she did not want to say it. So she is opposed to a trade deal with the United States in case it jeopardises a trade deal with China.
We heard from my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), who suggested that it was difficult to see what position the Government would agree with. I would say that we agree with the amendment put forward by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill).
Others asked, “What does this do to help the Uyghurs?” This is a Trade Bill. It is mainly about the continuity of previous EU trade agreements and trade defences and trade data. We do not have a free trade agreement with China. We have no plans or intention to negotiate a free trade agreement with China. There is no historical free trade agreement with China. None of this is even in the range of the Bill as it was written. But nor is it clear to me, with the Alton amendment, that there is a significant agreement in scope to cancel. This is a Trade Bill dealing with free trade agreements. There is no FTA with China. That is why Xinjiang and the Uyghurs would not be in the scope of the Trade Bill. That is why, instead, the Foreign Secretary and others are taking the tough action that we propose.
We heard from the SNP spokesman, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), whose speech was more about the EU, Brexit and Donald Trump than about trade, China or the Uyghurs.
My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and my hon. Friend the Member for Wealden (Ms Ghani) talked passionately about the cause, but the Parliamentary Judicial Committee would be given a new power in law to make a determination of genocide, and the Government cannot agree with that. Instead, we agree with the approach of my hon. Friend the Member for Bromley and Chislehurst, who describes the Parliamentary Judicial Committee as “constitutionally illiterate”. The Government would facilitate such motions as he asked to allow Select Committees to set up a Sub-Committee to examine these issues if the Select Committee chose to do that. That is the most important point.
I hope that hon. Members can now come together to underscore our support for this approach in place of the approach proposed by the other place, and to pass once more the amendment in the name of the Chair of the Justice Committee.
(3 years, 9 months ago)
Commons ChamberThe UK and Australia held the third round of negotiations for a free trade agreement between 23 November and 4 December. Discussions reached an early milestone of exchanging initial tariff offers, showing the momentum behind the negotiations. The fourth round of negotiations began this week and is live as we speak.
The Trade and Agriculture Commission report will be out next week. How does the Department see incorporating that in the deal with the Australians to make sure that we can maintain these high standards of imported food that meet our standards when we are doing a deal with Australia?
I thank the Chairman of the Environment, Food and Rural Affairs Committee for that question. I know he takes a very keen interest and we also await with equal interest the publication of the report next week. It would not be proper to prejudge what may or may not be in the report, but it is clear that we are doing everything possible to support our food and drink exports. Returning to the question of Australia, we actually have a food and drink surplus with Australia. We are looking to get more market access and to promote more agricultural exports to Australia, which I know will come with great welcome from him and the EFRA Committee.
I remind Members that they have to be short in topicals; we cannot go into full statements.
Thank you, Mr Speaker. I will try to be as quick in my response.
I will pass on the hon. Lady’s concerns to the Cabinet Office. The Government have invested considerably in customs and clearance agents. I refer her and her constituent’s company to the different helplines that are available both from us at DIT and, most particularly, from Her Majesty’s Revenue and Customs and the Border and Protocol Delivery Group to provide practical assistance for her constituents.
I thank my hon. Friend for that question. She is absolutely right; the UK is a great place to invest. The UK was the first major economy to make a breakthrough in attracting foreign investment, under Margaret Thatcher, now four decades ago. The UK has remained an extremely attractive place to invest since. In November the Prime Minister announced a new Office for Investment, jointly led by No. 10 and the Department for International Trade.
I thank my right hon. Friend. He is right to identify these unfair practices in world trade. Put simply, for far too long, China has not been transparent, with practices such as industrial subsidies for state-owned enterprises, forced technology transfers and claiming special differential treatment. We will continue to work at the WTO and with G7 democracies to tighten up the rules and ensure that they are properly enforced.
I suspend the House for a few minutes to enable the necessary arrangements for the next item of business to be made.
(3 years, 9 months ago)
Commons ChamberI beg to move, That this House disagrees with Lords amendment 1B.
With this it will be convenient to consider the following:
Lords amendments 2B and 3B, Government motion to disagree, and Government amendments (a) and (b) in lieu.
Amendment (i) to Government amendments (a) and (b) in lieu.
Lords amendment 6B, Government motion to disagree, and Government amendments (a) to (c) in lieu.
We move ever closer to getting the Trade Bill on to the statute books. I recognise that we are very limited in our time for debate, so I will get straight into the details. I will deal with parliamentary scrutiny, followed by standards, followed by human rights and genocide.
I begin with Lords amendment 1B, on parliamentary scrutiny. Parliament of course plays a vital role in scrutinising our trade policy. We currently have robust scrutiny arrangements that allow Parliament to hold the Government to account. The Government have provided extensive information to Parliament on our free trade negotiations, including publishing our objectives, which are also shared with the devolved Administrations, economic scoping assessments and the Government’s response to the public consultation prior to the start of each set of talks. We have also shared the text of each deal with the relevant Committees in advance of their being laid before Parliament under the Constitutional Reform and Governance Act 2010. The Committees then have the option to produce independent reports on each agreement. Furthermore, if Parliament is not content with a free trade agreement that has been negotiated, it has powers under CRaG to prevent ratification by resolving against ratification indefinitely, acting as an effective veto.
My right hon. Friend says that Parliament can indefinitely delay ratification. That is, in practice, almost impossible under existing procedures, would he not agree?
No, I do not agree. I think the previous Labour Government designed the CRaG process specifically with that in mind—that Parliament would have an effective veto on a trade agreement through the CRaG process by continuing to resolve against ratification indefinitely. That is my understanding of what an effective veto would look like.
In respect of facilitating debate on free trade agreements as part of CRaG, the Government have clearly stated that we will work to facilitate requests, including those from the relevant Select Committees, for debate on the agreement, subject to available parliamentary time. The Government have a good record on this. Debate took place last year on the Japan free trade agreement, alongside six other debates on continuity agreements.
I will address the amendment tabled by the Government in response to Lords amendment 6B, on standards. Although we are in agreement that our continuity deal programme has not reduced standards, I fully understand the House’s desire to ensure that standards are safeguarded. The Government therefore tabled an amendment that will provide a cast-iron statutory guarantee that the trade agreement implementing power in the Trade Bill will not be used to dilute standards. This amendment guarantees that the clause 2 power cannot be used to implement any continuity trade agreement if that agreement is not consistent with existing statutory protections in the areas of human, animal or plant health, animal welfare, environmental standards, employment and labour rights, data protection and the protection of children and vulnerable adults online.
The amendment also provides that clause 2 implementing legislation must be consistent with maintaining UK publicly funded clinical healthcare services. In other words, we are living up to our promises that trade will not lead to a lowering of standards and that the UK’s protection in these areas will continue to lead the pack. I hope that all sides can now unite around this amendment, safe in the knowledge that we are not lowering standards through the back door. I thank hon. Members for their engagement on this issue and encourage all colleagues to join me in voting in favour of the Government amendment.
I now turn to Lords amendments 2B and 3B, on human rights and genocide. With regard to Lords amendment 2B, on human rights, parliamentary Committees have the ability to produce reports on any agreement that the UK negotiates with a partner country.
I do not know whether the Minister heard my saying in the last debate that I am worried about the courts dealing with this in the absence of a defendant. However, I also expressed my worry about vexatious motions against our allies—Israel, Turkey, Saudi Arabia. How can the Minister assure me that there will not be a series of vexatious motions coming to this parliamentary Committee? Can we ensure that the Committee’s terms of reference are tightly drawn, so that it can actually deal with clear cases of genocide?
At the moment, I am speaking about human rights—I am coming on to genocide in a moment—but I totally appreciate my right hon. Friend’s question. It would not be proper for me as a Government Minister to seek to dictate how a Select Committee might approach its business; I think we have to have a level of trust in our Select Committees to approach this question sensibly and logically.
The answer to this question is very simple. Ministers cannot direct Select Committees. Select Committees will go where they think it is necessary. So with this amendment, Select Committees will feel completely free to look at anything, regardless of what the Government say that the bar is on that. That is the answer to this question.
I thank my right hon. Friend, but there is a crucial difference here. Yes, the Select Committee runs itself. It can make calls for evidence and produce a report, and we would expect it to report quite quickly if there were credible reports of genocide, so the Select Committee writes the motion, but there is still the protection that the matter then goes to a vote of the whole House. I find it hard to conceive that a vote of the whole House in which the Government had a majority would determine something along the lines suggested by my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) or my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith). I find that hard to conceive. I think we should have more trust in our Select Committees.
Going back to human rights, the Foreign, Commonwealth and Development Office already publishes an annual human rights and democracy report, so there is no need for Lords amendment 2B
Turning to Lords amendment 3B on genocide and the amendment tabled by my right hon. Friend the Member for Chingford and Woodford Green, it is the Government’s firm view that expanding the role of the UK courts in the manner envisaged is inappropriate and would carry harmful unintended consequences. First, it would be unlikely to work. Genocide is notoriously hard to prove, with a higher legal threshold. If a judge were unable to make a preliminary determination on genocide, which is highly probable, it would be a huge propaganda win for the country in question, effectively allowing that state to claim that it had been cleared by the UK courts.
I find it hard to believe that, if a country was investigated for genocide, that could in any way be seen as a propaganda event. It is not for us to determine how that decision is taken. The Government repeatedly say that that is for the courts, so we should allow the courts to come to a determination on the basis of evidence. We should never believe that people will not put a case forward to the courts because it might fail. That is just nonsense.
I have to say that I disagree with my hon. Friend. I also think that the proposal made in the amendment tabled by the Chairman of the Justice Committee, my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), is a superior process, which I am going to outline. So I disagree with her point, if I may respectfully say that.
As I was saying, if a judge were unable to make a preliminary determination on genocide, it would be a huge propaganda win for the country in question, effectively allowing that state to claim that it had been cleared by a UK court. That would be an awful result, and I encourage the House to think strongly about the implications of that before supporting this amendment. Rather than helping persecuted people, we would be setting their cause back. Further, any determination would be subject to appeal, which would create a more drawn-out process than that envisaged by the amendment.
I am not going to give way, because I am conscious of the fact that I have already been speaking for nine minutes and I have given way four times.
Secondly, the amendment raises serious constitutional issues and blurs the separation of powers. Inserting the courts into a decision-making process that is rightly a matter for the Government and for Parliament would disrupt the delicate constitutional balance we have in this country between the Executive, Parliament and our independent judiciary. As outlined in an article for PoliticsHome last week by the Chair of the Justice Committee, my hon. Friend the Member for Bromley and Chislehurst, it is the role of Government to formulate trade policy and conclude international treaties, including trade deals. Parliament already has a critical role in this under the terms of CRaG, which enables it to scrutinise treaties prior to ratification and effectively block them if it chooses. Fundamentally, it is right and proper that Parliament takes a position on credible reports of genocide relating to proposed free trade agreements rather than, in effect, subcontracting responsibility to the courts to tell us what to think.
Will my right hon. Friend give way?
I am going to make more progress—sorry, I will not give way further.
The wording of that substantive motion will be provided by the Committee. A similar process would ensue in the other place to take note of the report. The process that I have outlined would be triggered in each case by the publication of the Select Committee report.
I am not going to take further interventions —there is only an hour for this debate.
It is up to Committees how they report, but such a report could come about in response to evidence produced by their own inquiries or to a finding of genocide by a competent criminal court, whether international or domestic. Such an approach rightly puts Parliament, not the courts, in the driving seat on this issue, which is who generates a debate in Parliament. Our policy on the legal determination of genocide has not changed. It has long been the Government’s position that genocide determination is a matter for the relevant court, which includes international courts and domestic criminal courts. However, whether to have a debate in Parliament should be a matter for Parliament.
I hope the House agrees that the amendment tabled by the Chair of the Justice Committee is a reasonable middle ground: it delivers the result envisaged by the Lords amendment—that is, to have a parliamentary debate—and the amendment tabled by my right hon. Friend the Member for Chingford and Woodford Green, but it does so through Parliament, not the courts. It allows Parliament to act quickly and decisively on the issue of genocide and, crucially, places a specific duty on the Government to act on the Committee’s concerns. It does so without upsetting the delicate separation of powers and without judicial encroachment. It ensures that Parliament has a clear role and that the Government have a clear duty when credible reports of genocide are raised with regard to a proposed bilateral FTA partner. I hope that Members from all parties will come together in support of the amendment tabled by the Chair of the Justice Committee.
At the outset, I thank the hon. Members for Wealden (Ms Ghani) and for Huntingdon (Mr Djanogly), the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and the many others from all parties who, like our colleagues in the other place, who have worked with great persistence, and always in good faith, to achieve the right outcomes today.
Do you know what, Mr Deputy Speaker? It was 52 years ago this week that the House of Commons debated the introduction of Britain’s very first Genocide Act, which made genocide a distinct offence in our country and gave our courts the power to determine when it had been committed. When one looks back at that debate, it really strikes one that, were it not for some recognisable names, one would not know which MPs were Labour, Conservatives or Liberal, such was the unity in the House on the issue. Such obvious pride was taken by all Members in being part of a decision, taken by the British Parliament and led by the British Government, that would resonate around the world.
I fear that today, the atmosphere and outcome of our debate may be very different. Any future generations who choose to look back will ask themselves why on earth the Government of the day were playing procedural parliamentary games on an issue as serious as momentous as the genocidal crimes being committed against the Uyghurs in China. Rather than dwell on the shameful, shabby and shifty behaviour of the Government Whips in seeking to prevent a straight vote on the genocide amendment, let me instead address the key point of substance in the amendment that the Government have put forward to wreck it.
In the space of the last three weeks, the Prime Minister, the Foreign Secretary and the Trade Secretary have all stated on the record that the courts can determine what is and what is not genocide. The hon. Member for Bromley and Chislehurst (Sir Robert Neill) himself, the Chair of the Justice Committee, wrote an article, which has already been quoted. Let me quote another bit of it, in which he said:
“Successive governments have said that the attribution of genocide is a matter for judicial determination.”
Yet he and the Government are now proposing an amendment that would remove the courts from that process entirely and hand the responsibility instead to the Select Committees, which have already said publicly that they do not have the capacity to make such judgments. In other words, the Government wish to take a strong, substantive and historic new process for attributing genocide through the courts and acting on those rulings through our Parliament, and replace all of that with a weak, flawed and, frankly, entirely forgettable adjustment to the existing powers of Select Committees, and that is not good enough. I hope that Members on all sides will reject what I am afraid has to be said is a shameful wrecking effort, and vote instead for the original amendments 2B and 3B.
The Government’s other wrecking amendment today, on non-regression of standards, is equally flawed and equally contemptuous of Parliament’s will. It has been, I am afraid, very deliberately drafted to apply only to the continuity trade agreements already signed by the Government over the past two years, not to the trade agreements that the Government are negotiating with the likes of America and Australia today. In other words, the amendment would act retrospectively to prevent our standards for food safety, animal welfare, NHS data and online harms being undermined by the deals we signed two years ago.
I was happy to take interventions earlier, but I will try now to respond to the points raised in the debate. First, I want to clear up the question about parliamentary procedure that a few Members have raised. As you will know, Mr Deputy Speaker, it is a long-standing convention for amendments to be packaged during ping-pong in this way. “Erskine May” states that
“the practice has developed in the later stages of the exchanges between the Houses of grouping together as a ‘package’ a number of related amendments for the purposes of decision as well as debate.”
Secondly, the right hon. Member for Islington South and Finsbury (Emily Thornberry) talked about the standards amendment only being backward-looking. She is relatively new to the Bill. I have been involved with the Bill for four years—too long, some might say. The whole Bill is about continuity trade agreements; that is the point. I also note that she has not always been so strong on China. In her very first contribution as the shadow Secretary of State for International Trade on 12 May 2020, she asked the Secretary of State whether the trade talks she was pursuing with the United States
“would constrain the UK’s ability to negotiate our own trade agreement with China”—[Official Report, 12 May 2020; Vol. 676, c. 111.]
So there we have it—the Opposition are clearly quite keen on a trade agreement with China.
As for the SNP, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) says again that he supports free trade and rejoining the European Union, and again he praises EU trade agreements, but as we all know, the SNP has not supported a single one of those EU trade agreements. It is against Canada, it is against Korea, it is against South Africa, and it abstained on Japan.
We have heard excellent, heartfelt contributions from my hon. and right hon. Friends. We heard passionate arguments in particular from my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and my hon. Friend the Member for Wealden (Ms Ghani), and from those who know the court systems well: my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), my right hon. and learned Friend the Member for Kenilworth and Southam (Jeremy Wright) and my hon. Friend the Member for South Ribble (Katherine Fletcher).
The point is this: it is a matter for Parliament to decide what should come before it. That is why the Select Committee is the right and proper place for this, not the courts. The Government share Members’ concerns when it comes to Xinjiang. That is why the Foreign Secretary announced stepped-up measures last month, including ones relating to trade and supply chains. But today’s debate is not about whether there is a genocide in Xinjiang. It is about who triggers a debate in Parliament on whether there are credible reports of genocide.
As the former Attorney General, my right hon. and learned Friend the Member for Kenilworth and Southam, said, the amendment in the name of the Chair of the Justice Committee is more human rights-friendly than the Alton amendment because it allows Parliament to look at credible reports of genocide—it does not have to prove whether there has been a genocide—which will lead to a vote on whether we should be carrying out trade talks with that country. That is a much better position, and I therefore urge all Members to back that amendment.
(3 years, 10 months ago)
Commons ChamberI beg to move, That this House disagrees with Lords amendment 1.
With this it will be convenient to discuss the following:
Lords amendment 2, and Government motion to disagree.
Lords amendment 3, Government motion to disagree, and amendment (a) in lieu.
Lords amendment 4, and Government motion to disagree.
Lords amendment 5, and Government motion to disagree.
Lords amendment 6, and Government motion to disagree.
Lords amendment 7, and Government motion to disagree.
Lords amendment 8, and Government motion to disagree.
Lords amendment 9, and Government amendments (a) and (b) thereto.
Lords amendment 10, and Government amendment (a) thereto.
Lords amendments 11 to 31.
This Bill marks a significant milestone. Its passage into law will have numerous benefits for the UK economy: giving certainty to business with regard to our continuity trade agreements; confirming the UK’s access to the global procurement markets; providing protection to businesses and consumers from unfair trading practices; and ensuring that we have the appropriate data to support our exporters and importers. This Bill has enjoyed rigorous parliamentary scrutiny, having been through many of its parliamentary stages twice, and I am delighted to finally see it reach this stage. I am sure it will soon be passed into law, to the satisfaction of all.
I will speak to each amendment in turn, beginning with Lords amendment 1, which is in the name of Liberal Democrat peer Lord Purvis. With our new-found freedom, it is right that Parliament should be able to scrutinise effectively the UK Government’s ambitious free trade agreement programme. However, Lords amendment 1 goes far beyond what would be appropriate for our unique constitutional make-up and would unduly tie the hands of Government to negotiate in the best interests of the UK. The Government have listened to the concerns of both Houses throughout the passage of this Bill and have moved significantly to improve further its enhanced transparency and scrutiny arrangements.
My right hon. Friend said that the amendment would go too far. In the European Parliament the power existed for MEPs to give consent to trade Bills. Now that power has come back to this country, is he suggesting that this should not go to MPs but should go to the Executive? I think that is what he is suggesting.
I thank my hon. Friend for that intervention. I know that he has taken a long-standing interest, during the passage of this Bill and its predecessor, in these questions, and I will make two points. First, it would be inappropriate to compare this Westminster-style of democracy with the European Parliament and the European Commission. Secondly, all the trade agreements in scope within the continuity provisions of the Bill have already been scrutinised in this House. These arrangements were set out in a written ministerial statement by my right hon. Friend the Secretary of State for International Trade on 7 December. The enhanced arrangements that we have set out are entirely appropriate for a Westminster-style democracy such as ourselves; they are at least as strong as, and in some cases are stronger than, those in comparable systems, such as those in Canada, Australia and New Zealand.
I am going to make a bit more progress.
Finally, I remind the House that ultimately if Parliament is not content with a trade deal that we have negotiated, it has statutory powers, under the Constitutional Reform and Governance Act 2010, to prevent ratification by resolving against ratification indefinitely. That is in addition to Parliament’s power to vote down any necessary implementing legislation, again thereby preventing ratification.
That brings me on to Lords amendment 5. I suggest to the House that this amendment is unnecessary, as it covers things that the Government are already doing, or that are established precedent of the UK as a dualist state. The Government are already under a statutory obligation to publish an explanatory memorandum when a treaty is laid before Parliament. As Members will have seen, in section 5 of our explanatory memorandum to our agreement with Japan, we set out how we would implement the agreement and where legislation would be required. We, as a dualist state, have well established precedents for putting in place implementing legislation place before ratification of a treaty. If we did not do so, we would risk the UK being in breach of its international obligations. We have no desire to change this established way of working.
One of the complaints of the International Trade Committee, on which I sit, was that there was not enough time to debate the report that the Committee put forward on the Japanese trade deal. Will my right hon. Friend perhaps look at offering extra parliamentary time—I know it is perhaps not in his purview—for Parliament to have such debates? They could be followed up with debates on the general trade agreement that has been agreed by the Government at the time.
My hon. Friend makes a very strong point. The whole purpose of providing the relevant Select Committee with the relevant text in advance is so that the Select Committee can produce a report that will inform debate in Parliament. In that sense, I agree with him. On his specific point about making time available to the Select Committee to debate that report, I think that question is properly within the domain of Parliament, rather than the Government. I am sure you would agree, Madam Deputy Speaker, that allowing time for a parliamentary Select Committee to debate a report is best done through the usual channels, in conjunction with the Speaker’s Office. I do not think it is entirely within the gift of the Government to allocate time to a parliamentary Select Committee.
No, I am going to move on, because I want to come on to what I think might be the areas of greatest interest in this debate, including Lords amendments 2 and 3 on human rights. I remind hon. and right hon. Members of the Foreign Secretary’s statement on Tuesday last week, in which he outlined a range of measures in response to the deplorable human rights situation in Xinjiang. I also refer colleagues to the article I wrote about Xinjiang as long ago as 2011, showing my personal interest in that question.
I recognise that the amendments before the House are not specific to China per se, but some of the supporters have China in mind, and it is worth reminding Members of what the new measures the Foreign Secretary announced will do, as they are germane to the ongoing debate on human rights. The measures will help to ensure that UK businesses and the public sector are in no way complicit in human rights violations in Xinjiang. They include: first, strengthening the overseas business risk guidance to make clearer the risk to UK businesses investing in, or with supply chains in, Xinjiang; secondly, a review of export controls as they apply to the situation in Xinjiang to ensure we are doing all we can to prevent the export of goods that may contribute to human rights violations in Xinjiang; thirdly, the introduction of financial penalties for organisations that fail to comply with the Modern Slavery Act 2015; and, fourthly, ensuring that the Government or public sector bodies have the evidence they require to help them exclude suppliers that are complicit in human rights violations in Xinjiang.
I understand the point my right hon. Friend is making, and we do not have a free trade deal with China at the moment, and we are not likely to, but many of us for years have been frustrated that every time we try to raise genocide in this place in terms of trade deals, we are told that it is subject to the international courts, and that China, Russia or other countries in the UN Security Council have a veto on the matter. Is there any way we can acknowledge that genocide is taking place in a country when we do a trade deal, without losing parliamentary control of our trade deals, and without getting trade deals bogged down for months or even years in courts?
I can reassure my right hon. Friend that the Government are very ready to have these discussions. I am sure that the amendment in the name of Lord Alton is not an appropriate amendment to put into this Bill. As my right hon. Friend will have seen from the Foreign Secretary’s statement last week, we do take the situation in Xinjiang, and other allegations of serious human rights abuses, extremely seriously. However, we also have to think about what we are dealing with—the appropriate role for the High Court in international treaties, and particularly the right in the Alton amendment for an automatic revocation of an international treaty.
I thank my right hon. Friend for presenting what the Foreign Office is doing on human rights. We have tabled a compromise amendment that takes into account all the concerns that the Government have expressed about the Lord Alton amendment, and that makes very clear the separation of powers—fundamentally, that Parliaments advise, and Ministers decide. What is his objection to the compromise amendment tabled by me and my colleagues?
I will have to look at my hon. Friend’s amendment. My role is to speak about the amendment from the other place in the name of Lord Alton.
I gave the amendment to the Foreign Secretary and his team last Wednesday, and it is on the amendment paper today. With respect, is not a case of, “We can have a look at it”; the Minister must have a view on it, surely, because it is there on the paper.
I note what my right hon. Friend says. The Government are open to further discussion on these matters. Nobody denies the importance and seriousness of the situation in Xinjiang, nor this Government’s continued commitment to combating human rights abuses, or that human rights cannot and should not be traded away in a trade agreement or anything like it.
I should emphasise to hon. Members the seriousness with which the Government approach human rights issues as they relate to trade. We are taking action and will continue to do so. The UK has long supported the promotion of our values globally. We are clear that doing more trade does not have to come at the expense of human rights. In fact, as I am sure my hon. and right hon. Friends will agree, there is a strong positive correlation between countries that trade freely and human rights.
I think we all appreciate the work that the Foreign Secretary has done to ensure that firms look at their supply lines to check that they are not purchasing goods produced through slave labour or through human rights abuses. Now that the United Kingdom is out of the EU, we want to stand on the world stage as a global leader. What objections does the Minister have to putting in the law of this country that we will not tolerate trade deals with countries that abuse their population by engaging in genocide?
I emphasise to the right hon. Gentleman, who I know is passionate about these issues, the importance attached by the Government to the underlying issue of allegations of genocide and human rights abuses. However, it is right that the Government give significant attention to how that process would work. The Lord Alton amendment, which allows automatic revocation by the High Court of an international trade agreement that was negotiated between Governments and approved by Parliament, would not be the right way forward.
Lords amendments 2 and 3 pose significant legal and other problems and so cannot be accepted by the Government. Lords amendment 3, tabled by Lord Alton, seeks to revoke trade agreements where the High Court of England and Wales makes a preliminary determination regarding genocide. This would, in effect, take out of the hands of Government their prerogative powers to conduct international relations with regard to trade. That goes to the heart of the separation of powers in Britain’s constitutional system. If we accepted the amendment, the High Court could frustrate or even revoke trade agreements entered into by the Government and approved after Parliamentary scrutiny. That would be an unprecedented and unacceptable erosion of the royal prerogative, and not something that the Government could support.
I will make a little more progress, if I may.
It is for the Government, answerable to Parliament, to make trade policy, not the courts. In any event, the Government already have the power to terminate trade agreements. Modern trade agreements include termination provisions as standard, allowing either party to terminate the agreement if they so decide, usually following a specified notice period. The option of terminating agreements would remain available to the Government to use at their discretion, with or without the amendment.
It is crucial to understand that we do not have a bilateral trade agreement with China. There is no trade deal with China to revoke. Not a single person in Xinjiang—the people we are trying to help—would benefit from the amendment.
I am listening to the Minister carefully. He is right that, of course, we do not have a trade deal with China to alter. If we did, given the situation with the Uyghurs and the genocide going on, would the Government be minded to implement their power to revoke such an agreement?
Obviously that is something the Government would have to look at. We would have to consult across Government, and there would also be, quite properly, a significant role for the Foreign, Commonwealth and Development Office in that decision. But it is clear that we do not have a bilateral trade agreement with China that is within the scope of the Bill. We have no plans for a bilateral trade agreement with China. The amendment could have an impact on bilateral trade agreements that the United Kingdom is party to, but China is not a party relevant to the consideration.
As my right hon. Friend knows, I admire him enormously, but I want to take him back to that point. He said he has no plans for a trade deal with China, but what that really means is that we may yet make up our mind to have one, so that is not an absolute statement. If he decides that the British Government will never do with a trade deal with a country guilty of genocide, how would he know whether a country was guilty of genocide, if only a court can decide that and the International Criminal Court cannot reach that decision? Surely the amendment would give him a chance to say, “Our High Court has said this country is guilty of genocide.”
I am very interested in this topic, but it is not for me as Minister for Trade Policy to make Government policy on which court would be involved, or where that court should be, or on aspects relating to genocide. However, I think the amendment before us is flawed and should be rejected by this House.
Will the Minister give way?
No. The right hon. Lady will have plenty of opportunity to speak, and I can respond to her points in due course.
The lack of evidence for the effectiveness of such action underscores the need for the Government to take targeted, appropriate and effective measures on human rights, such as those we are taking towards China in the package of measures announced by the Foreign Secretary.
Lords amendment 2 seeks, among other things, the publication of risk assessments, annual reports and determinations on whether trade agreements comply with the UK’s international obligations. Such legislative requirements would again represent serious constraints on the royal prerogative powers to negotiate, ratify and withdraw from treaties. Erosion of the royal prerogative is a red line for the Government, so we cannot support that amendment, either.
I need to make a little more progress, Madam Deputy Speaker—I am conscious that we are 18 minutes in and there are a lot of speakers. I turn to Lords amendment 4, which would introduce a wide range of restrictions on the regulations that can be made under clause 2. Those relate broadly to the delivery of free, universal health services, the protection of medical data and scrutiny of algorithms, and a prohibition on the use of investor-state dispute settlement, ratchet clauses and negative listing provisions.
I am going to make a little bit more progress, with apologies to the right hon. Gentleman. He obviously has a special interest in this space, but I am conscious that time is moving on.
Turning to the amendments concerning the Trade and Agriculture Commission, the Government have offered alternatives to Lords amendments 9 and 10. We also accept Lords amendments 11, 12, 29 and 30. These amendments put the commission on a statutory footing to help to inform the report required by section 42 of the Agriculture Act 2020. The Trade and Agriculture Commission was originally set up by the Department for International Trade in July 2020 to boost the scrutiny of trade deals. That is alongside other steps that the Government have taken to ensure that relevant interests are taken into account at every step of the negotiation process, from public consultation at the start, dedicated trade advisory groups during the process and independent scrutiny of the final deal at the end.
The Trade and Agriculture Commission will advise the Secretary of State for International Trade on certain measures set out in section 42 of the Agriculture Act concerning the consistency of certain free trade agreement measures with UK statutory protections for animal and plant health, animal welfare and the environment. The Government amendments were modified in the other place, however, also to include advice on human health. The Government do not consider the inclusion of human health to be appropriate for the Trade and Agriculture Commission, as it would duplicate the work of other appropriate bodies. Just because human health will not be in the remit of the Trade and Agriculture Commission does not mean that there will be no scrutiny in that area. It must still be covered in the section 42 report under the Agriculture Act, for which the Secretary of State may seek advice from any person considered to be independent and to have relevant expertise.
I hope that that has been a useful introduction to the Lords amendments we have in front of us. I am looking forward to the debate and to responding later.
It is a pleasure to open this debate for the Opposition. I want to thank Members from the other place for all the work they have done on these amendments, which follows the considerable amount of work on the Bill’s previous iteration, all of which is welcome.
It is a great tribute to how deeply Members on all sides and in both Houses have engaged in our debates about trade over the last few years that we have such a wide range of important amendments before us today. They reflect the values, priorities and safeguards that we believe the UK should apply when negotiating new trade agreements. We have one amendment that reflects our desire that young boys and girls growing up in this country should be able to learn, play and interact with their friends online without the fear that those experiences will be tainted by bullying, grooming or exposure to harmful content. We have another amendment that reflects our equally strong desire that young boys and girls growing up 4,000 miles away should be able to live in freedom, practise any religion they choose and one day have children of their own without the fear that those rights will be taken away by the criminal actions of the Chinese state. I want to focus most of my remarks today on the amendments relating to human rights and to parliamentary scrutiny, but let me first talk briefly about the other key amendments we have before us.
We welcome Lords amendment 4, which seeks to exclude NHS patient data from the scope of future trade deals. This amendment cuts to the chase of the debate over whether the NHS is on the table when it comes to trade negotiations. To some people, that concept would mean private healthcare companies from overseas being able to compete against the NHS to provide taxpayer-funded healthcare, but in fact it is much more realistic and pernicious. What it means is those same companies winning a greater right to provide services to the NHS through open procurement contracts and thereby gaining access to the vast resource of NHS patient data, which, quite frankly, they have been actively pursuing for years. This amendment seeks to prevent that, and I cannot see why any Member of the House would disagree with it.
We welcome Lords amendments 6 on standards affected by international trade agreements, which rests on the very simple notion that the international trade agreements we negotiate should not undermine the domestic standards we apply on everything from environmental protection to employment rights—again, something we would have thought everyone would support.
I have spoken already about Lords amendment 7 on the protection of children online, which seeks to protect the very welcome progress we are making in the UK to keep our children safe when using the internet, and to force major service providers to help prevent children from exposure to illegal content or harmful activity. We know for a fact that the major US internet companies have sought to use trade deals with Mexico, Canada, Japan and Korea to exempt themselves from liability over the harms caused by their services and to guarantee unrestricted access to user data, including that of children. The Minister might well assure us that the same thing will not happen here, but I would simply urge him to allow the passage of this amendment to ensure that the same thing cannot happen here.
We also welcome Lords amendment 8, the Northern Ireland amendment, on non-discrimination in goods and services, for which we thank my good friend the former right hon. Member for Neath—a much missed presence in this House, but still a good friend to the people of Northern Ireland. When we look at the delays, disruption and economic damage that has been caused by the loss of unfettered access for goods travelling between Great Britain and Northern Ireland surely we would all agree how important it is that we protect the unfettered access for goods travelling the other way and for the exchange of services in both directions. Indeed, if the Government are promising to maintain that unfettered access, I cannot see why they would urge Members of this House to vote against the opportunity to put that promise into law.
Finally, let me turn to the other amendments. We welcome amendments 9 and 10, which would expand the remit of the Trade and Agriculture Commission to cover the impact of food on public health. If the Government are to leave it to the commission to protect our food and farming standards against low-cost, low-quality imports, rather than putting those protections into law, then the least they can do is ensure that the commission’s remit covers all the standards that we wish to protect, including those related to public health. I understand that the Government are trying to lift the public health aspects of this amendment, but, before the Minister does that, I urge him to speak to his colleagues in the Department for Environment, Food and Rural Affairs about Government undertakings that may have been given before we had clause 42 of the Agriculture Bill.
There is a common thread running through all the amendments that I have mentioned and through those that I will come on to relating to human rights. The common thread is this: if we do not have the right procedures in place to allow proper parliamentary engagement in the Government’s trade negotiations and proper parliamentary debate and approval of the Government’s new trade deals, then, inevitably, Members will seek instead to ring-fence what the Government can give away and protect in law the standards that we want to preserve.
I just do not understand why the Government are so stubbornly holding on to the Ponsonby rule and CRaG and laws that come from a previous century and a previous age. Why we cannot step into the 21st century as a confident democracy is beyond me. In other words, if we do not have proper scrutiny of the Government’s trade deals, we must have proper safeguards on what the deals can do. Personally, I argue that we should want the best of both worlds—proper safeguards coupled with proper scrutiny—but surely every Member of this House can agree that the worst and most illogical of all worlds is to have neither. I urge Conservative Members, when they are instructed by the Government later to vote down not just the amendments relating to NHS data, online harms, standards, public health and unfettered access, but Lords amendments 1 and 5 relating to parliamentary scrutiny, please to say to the Government that one set of amendments or the other may be opposed, but logically they cannot oppose them both.
It is a pleasure to speak on this Bill. I rise to speak against Lords amendments 1 and 3. I start by saying how sorry I am that I will not be in the same Lobby as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and my hon. Friend the Member for Wealden (Ms Ghani). I have gone into battle with them in the past and hope to do so again.
At the start of the Minister’s statement, he made a point about the opportunities that Parliament would have to ensure that human rights were included in trade deals, and that mechanisms could be provided to ensure that every trade deal had the proper level of parliamentary scrutiny. I would welcome his going further—and intervening, if he must—and telling us how Parliament will be able effectively to ensure that every Member can scrutinise, debate and discuss these issues.
I thank my hon. Friend for that specific request. I think it is fair to say that this House enjoys significant expertise and experience on questions of human rights, which the Government would seek to take advantage of. I hear various Members and Chairs of Select Committees and others with great experience in this space, and the Government are absolutely committed to making sure that knowledge is utilised and to exploring how we can make sure that the views of colleagues are heard and considered on these issues in relation to our future trade agreements.
I thank the Minister for his comment, which I would echo in terms of the scrutiny that the International Trade Committee, through the reports we publish, can give each and every one of the trade deals that comes before us.
What is the intent here? We are trying to address the injustices that people face around the world, from the Uyghurs to the Yazidis to the Rohingyas.
The Government are at pains to say that the NHS is safe in their hands. They say that we do not need to worry about US healthcare companies. They say that it is fear-mongering. “Trust us,” they say, “and stop asking questions.” But in politics, if you want to know someone’s agenda, just look at their actions: see what they say when they think people are not listening. If we do that, we see that the Government are saying something quite different.
A 2011 book argued that the “monolith” of the NHS should be “broken up”, and that
“private operators should be allowed into the service, and, indeed should compete on price.”
The book set out a plan for a Conservative Government after the coalition. Its authors? Well, they were five newly elected Conservative MPs, who now sit on the Government Front Bench, including the Secretary of State for International Trade, the Home Secretary, the Foreign Secretary, and the new Secretary of State for Business, Energy and Industrial Strategy. It does not stop there. The Prime Minister, when he was a Back Bencher in this House, called for the privatisation of what he called the “monolithic” and “monopolistic” NHS. Writing in a 2002 book, he also said:
“we need to think about new ways of getting private money into the NHS.”
If we look at this Government’s actions, again we see their true intentions. During the last 10 years of Conservative rule, the NHS has not just been chronically underfunded; it has been privatised by stealth. The Health and Social Care Act 2012 opened the floodgates to private health companies. In the last five years, nearly £15 billion-worth of contracts have been handed to private providers; that is an 89% increase. In this crisis, again they see an opportunity. They call it NHS Test and Trace, but really we all know that it is Serco test and trace. Billions of pounds have been handed out to failing private companies that put profits before people.
The clearest test of all was last summer’s vote on the amendment to this Bill that would have provided legal protection for the NHS from outside private health companies. The Government voted it down, with not a single Tory MP rebelling to vote in its favour. Sadly, I do not have time to go through the donations, speaking fees and close links between Government Members and private healthcare companies and firms linked to NHS privatisation—but, of course, they know that too well.
In conclusion, the NHS is our proudest and most precious public service. Its staff are incredible, dedicated to public health and caring for our country. Today we can show our thanks. Conservative MPs can finally put their warm words into action. This House can vote to protect our NHS. I urge all Members to vote for the NHS protection amendment, Lords amendment 4, and for the scrutiny amendment, Lords amendment 6.
With the leave of the House, I will respond to what has been a wide-ranging debate, covering many domestic and international matters.
Let me first say that the Government recognise that this House enjoys significant expertise and experience on questions of human rights. We are committed to ensuring that that knowledge is utilised, and to exploring how we can ensure that the views of colleagues are heard and considered on these issues in relation to our free trade agreements.
Let me turn to the points raised during the debate, although I do not have so long to respond. The shadow Secretary of State made a number of points. She said that the Government were stubbornly holding on to CRaG and the Ponsonby rule, despite entry into the 21st century. I was intrigued by that, because, of course, CRaG was introduced by the last Labour Government, in the 21st century—and the right hon. Lady supported it. I would add that, through CRaG, there is an ability to prevent ratification.
Through the Constitutional Reform and Governance Act 2010, we have added to the process the publication of negotiation objectives and economic impact assessments, and parliamentary statements after each round of negotiations. We have created the Trade and Agriculture Commission to inform Parliament; section 42 of the Agriculture Act reports; and the International Trade Committee and the International Agreements Sub-Committee having access to the texts to provide their own reports to Parliament.
The right hon. Lady mentioned China. She has come a long way in a short time on China. In her very first appearance at the Dispatch Box in this role on 12 May, she asked my right hon. Friend the Secretary of State to make it clear to the USA that she would not agree to
“any version of article 32.10 of the USMCA that would constrain the UK’s ability to negotiate our own trade agreement with China”.—[Official Report, 12 May 2020; Vol. 676, c. 111.]
She did not want anything that would conflict with the UK’s ability to negotiate a trade agreement with China. I have been absolutely clear that the Government—
No.
The Government have no plans to negotiate a trade agreement with China, but it does seem that the right hon. Lady might.
I turn to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith). We know that he is passionate on the issue and we know he has had a long-standing interest. We have worked together on many aspects and on trade. He is right that it is for the UK to shine a light across the world. I do not disagree with any of his passionate statements about human rights and genocide. However, we also in this country shine a light around the world by making good law. The scope of his amendment is very wide. It would cover not just free trade agreements, but potential trade agreements, and agreements that the UK might hope to accede to. It covers not only bilateral agreements, but plurilateral and global agreements—even WTO agreements. I do not think it would be right for the Government to wait for the human rights in a country to reach the level of genocide, which is the most egregious international crime, before halting free trade agreement negotiations. Any responsible Government would have acted before then.
It is also unclear what is meant by preliminary determination procedure. The nature of that procedure has not, I believe, been thought through. As a matter of international law, it is individuals not states who commit genocide. Therefore, in requiring a preliminary determination as to whether a state has committed genocide, it is also unclear what both amendments would actually require a court to deliver.
What the official spokesman for the SNP, the hon. Member for Dundee East (Stewart Hosie), did not say is that it is the SNP’s policy to rejoin the EU.
The hon. Member for Glasgow North (Patrick Grady) says, “Hear, hear.” But that would mean immediately having to sign up to the EU—
I am not going to take any interventions. I have a lot of points to respond to. I apologise to my right hon. Friend, but I have responded to his speech.
As I was saying, that would mean immediately having to sign up to the EU’s brand new investment deal with China from day one. The hon. Member for Glasgow North says, “Oh, we wouldn’t do that,” but he has just said that he would re-join the EU.
My right hon. Friend the Member for North Somerset (Dr Fox) made a very strong point that trade policy must be conducted by the elected Government. We have taken control from unelected judges in Brussels and it should be for elected parliamentarians to scrutinise. He said that amendments put forward today for the very best reasons will result in the very worst practice.
My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) and Chair of the Foreign Affairs Committee made a powerful speech, in particular about his own family’s experience of genocide. He is absolutely right. Genocide is the worst crime there is; it removes an entire people, but we still need to make sure we are making good law. If a country is committing genocide, it is extremely unlikely that any UK Government of any colour would be negotiating a trade agreement with it. I do not believe it would need a court to tell us that, a point also made by my hon. Friends, particularly my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie).
The Chair of the International Trade Committee had a few points to raise in terms of the Committee’s scrutiny of the Japan deal. I remember that his Committee actually praised it, but we can work with him further to improve scrutiny.
We had some very good speeches. My hon. Friend the Member for South Ribble (Katherine Fletcher) spoke against the involvement of courts. My right hon. Friend the Member for Bournemouth East (Mr Ellwood) made strong points on the UK’s international position, but I do not believe that if he had really dug into Lords amendment 3 he would be supporting it.
My hon. Friend the Member for Totnes (Anthony Mangnall), who has studied the amendments, made an excellent speech. He pointed out that, from the scrutiny from the International Trade Committee, Ministers have proven ready to listen. My hon. Friend the Member for Fylde (Mark Menzies) knows trade policy well and was also against the amendments.
My hon. Friend the Member for Penrith and The Border (Dr Hudson) called for more parliamentary scrutiny. Well, there is a very significant increase in parliamentary scrutiny from the CRaG position that we inherited. We compare favourably with other Westminster-style democracies, such as Canada, Australia and New Zealand.
My hon. Friend the Member for Wealden (Ms Ghani) was passionate on the issue, but she said that the UK Government are in a do-nothing position. That is not correct. The statement made by the Foreign Secretary last week was very clear about the trade actions that the UK Government are putting in place on supply chains and information and on making sure that no companies benefit from any of the appalling practices happening in Xinjiang.
I am going to try to summarise all the points that have been made.
The amendment in front of us says:
“International bilateral trade agreements are revoked”—
it is not a suggestion—
“if the High Court of England and Wales makes a preliminary determination that they should be revoked”.
That is an absolutist position as expressed in the Alton amendment. More to the point, there is not a bilateral free trade agreement with China to revoke. I will come back to that point shortly.
My hon. Friend the Member for Gloucester (Richard Graham), who has been to Xinjiang and spoke strongly against what is happening there, made the point that the amendment, which may have China in mind, could well be used for countries with whom we do have trade agreements. I agree on finding a balance, but the Bill, as he rightly points out, is all about continuity trade agreements and agreement on Government procurement and so on.
My hon. Friend the Member for Huntingdon (Mr Djanogly) quoted the amendment of the LibDem peer Lord Purvis. I say to him that parliamentarians can have their say through the CRaG process on any future trade deal, if Parliament has concerns. That is a key part of our scrutiny arrangements that are set up.
The hon. Member for South Antrim (Paul Girvan) questioned whether Northern Ireland would benefit. It is absolutely clear that Northern Ireland will benefit from UK trade deals. The UK says that. The EU says that. The 63 continuity trade deals all apply to Northern Ireland and the withdrawal agreement and protocol are clear that Northern Ireland will benefit from UK FTAs.
My hon. Friend the Member for Folkestone and Hythe (Damian Collins) spoke on platform liability. He asked us to agree that what happened with the US in relation to the United States-Mexico-Canada agreement, which the right hon. Member for Islington South and Finsbury quoted earlier, will not take effect in the UK. We have been absolutely clear that those provisions will not take effect in the UK. He also called for a formal role for the Information Commissioner. I met her recently and I am considering what she has to say on the matter.
My right hon. Friend the Member for Gainsborough (Sir Edward Leigh) made a powerful point about the importance of the issue, but the flaw is in the amendment in front of us today. It is not for the courts to revoke trade treaties. That is a denial of the fundamental supremacy of Parliament. He is absolutely right on that, while being passionate about what is going on in China and other parts of the world. He asked for more parliamentary debate. Determining the parliamentary timetable is not always entirely in any Government Department’s hands, but we at the Department for International Trade always welcome more debate on trade deals, wherever parliamentary time allows. It is great to have Members passionately interested in trade deals.
My hon. Friend the Member for Birmingham, Northfield (Gary Sambrook) made a powerful speech on the 63 deals done. My right hon. and learned Friend the Member for Kenilworth and Southam (Jeremy Wright), a former Attorney General, raised some really strong points about the legal language of the genocide amendment. What does a preliminary hearing mean? Who is the respondent? Would it be the foreign Government, or would the UK Government have to respond for that foreign Government, which in almost all conceivable cases would be a Government that the UK Government would have been very critical of? He raised serious points that get to the heart of the amendment and how it is not appropriate in our constitutional settlement for the High Court to be doing such as thing as trying to revoke an international treaty. On online harms, I am very happy to engage with him further.
There were excellent speeches from my hon. Friends the Members for West Aberdeenshire and Kincardine, for Hertford and Stortford (Julie Marson), for Dudley North (Marco Longhi) and for Milton Keynes North (Ben Everitt) on the importance of our trade agenda.
My hon. Friend the Member for Gedling (Tom Randall) is quite right. He is passionate—he is the vice-chairman of the all-party parliamentary group on Hong Kong—but he also said that lawmaking is about workable rules and doubted whether a court should have the right to automatically revoke an international treaty.
May I also say a few words about some of the Opposition contributions? I do not have time to reply to all of them, but it is good courtesy to try to reply to as many as possible. I think the hon. Member for Aberavon (Stephen Kinnock) was making an argument about whether courts should pronounce on genocide, and that is a relevant topic for debate. However, what we have in front of us is not the question of whether courts should pronounce on genocide; the question is whether the courts should have the right to automatically revoke an international trade agreement. That is the amendment that is in front of us, and that is the amendment that I urge my colleagues to reject. It is not for a court to revoke international treaties.
The NHS was raised by Opposition Members including the hon. Members for Vauxhall (Florence Eshalomi), for Bristol East (Kerry McCarthy) and for Wirral West (Margaret Greenwood). The Government have been consistently clear about their commitment to the guiding principles of the NHS: that it is universal and free at the point of need. The Government’s position is definitive: the NHS is not and never will be for sale. The NHS is of course the most beloved of British institutions and is not in anyone’s interests, including this Government’s, to change that. No UK trade deal will change that either.
Let me just say a few final words about Lords amendment 3 on genocide from Lord Alton. I know Lord Alton well. I have worked with him closely on a lot of these issues. He and I were instrumental in the all-party parliamentary group for North Korea, and I know his absolute passion on these issues. I also know from my own involvement in these questions in relation to central Asia, including here in Parliament in 2006, and in articles that I wrote in 2011, how passionate he is about these issues. Being passionate about an issue is why we are in this place, but it is also incumbent on us to make good law, and that is fundamentally the question in front of us tonight with the Alton amendment.
I want to make three other points quickly. The first is that there is no bilateral free trade agreement with China to revoke, so even if the High Court decided to do so, that would not bring any comfort to the Uyghurs. Secondly, as I have mentioned, is it a matter for the courts automatically to revoke international treaties negotiated by this Government and approved by Parliament? I do not think that can be right. Thirdly, we do not have a bilateral free trade agreement with China, but we do have such agreements with dozens of other countries. I am not at all sure that it is the right role for the High Court to be potentially clogged up with questions of other countries, international relations and international treaties. I ask my right hon. and hon. Friends to consider carefully whether that is the route they wish to go down.
The amendments introduced into the Bill by the other place were undoubtedly done with good intentions, and I hope that I have spoken to all the points arising in this debate and to the speakers and the amendments. But it is our strongly held position that these amendments would, in the aggregate, be to the detriment of the Bill rather than to its advantage. I hope that what I have said here provides the House with clarity regarding the Government’s position on the amendments we are discussing today, and that it will vote to reject them.
Question put, That this House disagrees with Lords amendment 1.
(3 years, 10 months ago)
Commons ChamberThe Government have included, and will continue to seek to include, specific SME chapters in all our free trade agreements to ensure that SMEs are provided with the information necessary to make informed commercial decisions and seize the great new opportunities provided by these agreements.
The support for SMEs in the trade agreement is great to see, but may I ask the Minister to continue that with a free trade agreement for the USA that supports companies like Kromek in Sedgefield? It manufactures high-radiation detector material ingots that are shipped to the USA, attracting US import duty incorporating the price for worldwide sale, with the waste coming back to the UK for re-manufacture, attracting further UK import duty. The removal of those duties would clearly support high-value jobs in Sedgefield and increase the global competitiveness of an export-led UK business.
I thank my hon. Friend for that excellent question on behalf of his constituency company, and I can tell him that the US and the UK have a shared ambition to improve trade for our SME-focused economies on both sides of the Atlantic, to help companies such as Kromek. There are three specific areas we are looking at. First, we want to reduce or eliminate tariffs. Secondly, we will have a wide-reaching SME chapter. Thirdly, we are also looking at provisions on reimported goods as well. Those provisions will benefit around 32,000 UK SMEs that already export to the US, such as Kromek, but also future SMEs. That will grow that trade, which will suit our bustling and improving SME sector.
The trade agreement with the European Union is absolutely fantastic for our country as a newly sovereign nation, and it comes on top of deals already covering more than 60 countries. Can my right hon. Friend tell the House how he intends to go further still and secure opportunities in the Asia-Pacific region, which would particularly benefit small businesses in my constituency of Aylesbury, but also those across the UK?
We are seeking an SME chapter in all our future free trade agreements. SME chapters are an excellent way of assisting companies to navigate a free trade agreement. They distil information and make it easier, particularly for companies without expertise in trade agreements, which is generally the case for SMEs. In Asia-Pacific, we aim to include such chapters. We have already included one in an agreement with Japan, and we aim to include them in agreements with Australia, New Zealand and, of course, the comprehensive and progressive agreement for trans-Pacific partnership. We are aiming to do that to benefit SMEs in constituencies such as my hon. Friend’s in Aylesbury.
The trade co-operation agreement secures continued market access across key service sectors, including both professional and business services. The agreement also includes a commitment to review the services provisions with a view to making further improvements, along with a specific joint declaration on regulatory co-operation in financial services. Specifics will be taken forward by the Cabinet Office and Taskforce Europe.
Within a day of leaving the EU, shares worth billions of euros normally traded in the City of London flooded out of the EU to other European capitals such as Paris and Amsterdam. One trader told the Financial Times that this was a “stunning own goal” and only the beginning of the financial sector’s post-Brexit decline. We know that in Scotland seafood markets are already being decimated, but what is the Minister’s assessment of the damage Brexit will do to the UK’s financial sector and how many own goals can we expect in the future?
The memorandum of understanding on financial services ensures financial stability and consumer protection, and we look forward to that being negotiated. I was not surprised by this question, but I was a little bit surprised that the hon. Gentleman was the one asking it. It is not that long ago that he said:
“Leaving the European Union without a deal in place is an act of economic self-harm”.
But that is precisely what he voted for on 30 December.
The Prime Minister admitted that the deal is not up to the job on trade and services, and Brussels has made it clear that access will be restricted further if there is divergence from the EU’s standards. Is it the Government’s intention to give up access to that market, or will the UK remain wedded to the EU’s regulatory framework?
I have long experience in this space, having been a Treasury Minister, and there are of course advantages to the UK being able to set its own regulatory regime for financial services as the biggest financial services marketplace in Europe. I think the hon. Lady is wrong to characterise the treaty—she voted in favour of no deal—as not being good for services. There are good provisions on business travellers, excellent provisions on legal services, and very, very good provisions on digital and data. I am a little bit surprised that she is not more supportive of the deal.
The United Kingdom has long promoted its values globally. We are clear that more trade does not have to come at the expense of our values. While our approach to agreements will vary between partners, it will always allow this Government to open discussions on issues, including on rights and responsibilities.
Following on from the Minister’s response, successive UK Governments have believed in the principle that all new trade treaties should contain clauses allowing those treaties to be suspended if the other party engages in serious abuses of human rights, yet the UK recently signed new treaties with Singapore, Vietnam and Turkey, none of which had those clauses, despite ongoing concerns about the records of those countries. Can the Minister please explain why?
The hon. Lady might be misunderstanding the nature of the continuity programme for rolling over existing agreements. I point out that, on Turkey, the underlying agreement dates from 1963, and there were no human rights clauses in that agreement, but that does not mean to say that we do not have a robust discussion with Turkey on human rights. The EU-Vietnam framework agreement was separate and was not necessary to achieve trade continuity, but again we have a good dialogue with Vietnam on human rights. The UK and Singapore have agreed a UK-Singapore political joint statement to reflect our close partnership. Once that is signed, it will be published on gov.uk.
I am extremely sympathetic to the hon. Lady’s question. The Foreign Secretary delivered an extensive statement on this topic on Tuesday. Of course, the UK is not negotiating a free trade agreement with China. However, the Foreign Secretary announced on Tuesday a review of export controls, financial penalties for organisations not complying with the Modern Slavery Act 2015, strengthening the overseas business risk guidance and making sure that the Government have the information we need to exclude suppliers complicit in human rights violations in Xinjiang.
May I ask the Minister very simply why he feels it was appropriate to roll over a trade agreement with Egypt, a country that routinely detains and executes political opponents and religious minorities, persecutes its lesbian, gay, bisexual and transgender community and suppresses democratic freedoms, and why no effort was made to strengthen the human rights provisions in that agreement?
The continuity programme is all about rolling over the deals that are there. I do not believe that there was any diminution of human rights provisions in the agreement with Egypt, or certainly of the effect of those provisions. We have a regular dialogue with Egypt on these issues. There is an extremely difficult internal security situation in Egypt, which the hon. Lady will know has affected British nationals directly as well. It is careful to get that balance right in all our dialogues with countries such as Egypt.
This has attracted some attention. I would remind the hon. Member that he voted for no deal on 30 December. I would also refer him to the article written by the Secretary of State for Digital, Culture, Media and Sport in the New Musical Express this week, in which he said that the EU offer on this unfortunately fell short of the UK’s proposals and would not have enabled touring by musicians. He said:
“The UK pushed for a more ambitious agreement with the EU on the temporary movement of business travellers, which would have covered musicians and others, but our proposals were rejected by the EU”.
I thank the hon. Gentleman for his question—he is right to raise issues on behalf of small businesses in his constituency. The Government are in constant dialogue with business representative organisations such as the Federation of Small Businesses, for example at the Brexit business taskforce chaired by the Chancellor of the Duchy of Lancaster. The Government have of course provided an enormous amount of funding to make sure that businesses are ready for the end of the transition period.
Since we left the EU a year ago, no bureaucrats will ratify our trade agreements. The ratification of future free trade agreements will take place only once this Parliament has had the opportunity to scrutinise the detail of any trade deal and any necessary implementing legislation. We believe that our system of parliamentary scrutiny compares favourably with that of other Westminster-style democracies such as Canada, Australia and New Zealand.
Our chemicals industry is extremely important and we are well aware of the issues in the industry with all its trade partners. I remind the hon. Gentleman that the EU deal is the responsibility of the Chancellor of the Duchy of Lancaster, but I am sure that the chemicals industry will make its voice heard at the Brexit business taskforce. The Government stand ready to assist the industry, which, as the hon. Gentleman rightly says, is vital for our future prosperity.
I thank my hon. Friend for his question. We are all well aware of the important role that Milton Keynes plays in technology innovation, electric vehicles and other transport technologies in particular, as well as other areas. That is why the UK is seeking to minimise the barriers to digital trade in particular, going further in the UK-Japan deal. We want to ensure that the UK is at the forefront of global dialogue on policy issues, for example, at the World Trade Organisation.
I am suspending the House for three minutes to enable the necessary arrangements for the next business to be made.
(3 years, 10 months ago)
Commons ChamberI thank the 52 Members across the House for their informed contributions to the debate. Following our exit from the European Union, on 31 December the United Kingdom left the EU customs union and single market, taking back control of our trade policy and becoming an independent trading nation once again. We have reached an ambitious agreement with the European Union, changing the basis of that relationship from EU law to free trade and friendly co-operation.
After four and a half long years of debate—including, most notably, in this Chamber—we have followed the instruction of the British people as expressed in the 2016 referendum. I am sure that I speak for many in this House when I express a sense of relief that this matter is now settled and that vote honoured. It was a vote for Britain’s relationship with Europe and with the rest of the world to change—to recognise some of the challenges of leaving the EU, but also to embrace a great number of new opportunities. In other words, it was a vote to forge the global Britain that this country can be.
Among the 52 speakers we have heard from, the longest speech—I thought I ought to reply to it—was from the right hon. Member for Islington South and Finsbury (Emily Thornberry). In fact, we heard from both Islingtons tonight. The right hon. Lady’s speech was mainly complaints about the trade and co-operation agreement. I will pass her questions on to the Cabinet Office. Now, it was rumoured that she was close to quitting the Front Bench rather than voting for the new UK-EU trade and co-operation agreement, and tonight we heard some of the details of her opposition to that agreement. At times it sounded like she wanted to rejoin the EU. She misunderstood some of the complexities of trade agreements—yes, there is the continuity of the effect, but we still have to negotiate the terms and details. That means things such as rules of origin, tariff-rate quotas and so on. There are quite complex negotiations involved, but we have been very successful: 63 countries with which we have trade agreements have been rolled over so far, covering 97% of that trade.
The right hon. Member for Islington South and Finsbury repeated her complaint about the provisional application of some of these trade agreements—deals which have not yet been fully ratified but which take effect. One might think that that does sound a little bit alarming, but it is entirely normal for trade agreements. Indeed, many of the original EU deals at the time were provisionally applied. I checked back on the details of some of these agreements and found one, the CARIFORUM agreement—a very good agreement, by the way—which is still provisionally applied today, despite having been signed in the year 2008, so the Opposition complaint that these deals have been provisionally applied for perhaps a few weeks bears nothing compared with the 13 years for which the trade agreements signed under the last Labour Government have been provisionally applied.
I thought, “Well, presumably somebody in the Labour Government at the time might have done something about this,” so I checked back and found out. Who was the Trade Minister at the time? It turns out that it was the hon. Member for Harrow West (Gareth Thomas); he might have been able to stop it at the time. Then I thought, “Well, if the Trade Minister did not stop it, who was the Minister for International Development who covered the Caribbean? Maybe he or she might have stopped it.” But it was him as well—the hon. Member for Harrow West. He was perfectly happy in 2008 for a deal to be provisionally applied still 13 years later, but now he is complaining about the provisional application of some of these important details.
The hon. Member for Harrow West was also complaining about the CRaG process, so I checked back again. I wanted to know who was the Minister for international agreements at the time that CRaG was passed by the last Labour Government. I thought, “Who could that have been? Who would this person be today to be complaining about the CRaG process?” It turns out that it was none other than the hon. Member for Harrow West, in his role as an International Development Minister. Tonight we heard all those complaints, but sometimes such practices went on 13 years after the last Labour Government.
Anyway, we have heard from a high profile array of speakers, each frustratingly restricted to three minutes. We could have sold tickets for this debate. Instead of taking out a Netflix subscription, the people locked down at home could have been watching the House of Commons. We have had a former Prime Minister, two former members of the Cabinet, three current Select Committee Chairs, a former Leader of the Opposition and two former Trade Ministers. It has been a star-studded debate.
The former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May), made a speech that will definitely get some attention; I agree with her calls to reject isolationism. We have heard from former Cabinet members. My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) spoke passionately about the Commonwealth and NATO, and my right hon. Friend the Member for North Somerset (Dr Fox) spoke about vision and boldness in trade, which he never lacked—nor, indeed, does his successor as Secretary State for International Trade. The former Leader of the Opposition, the right hon. Member for Islington North (Jeremy Corbyn), was listed on the call list as Labour, but I am not sure; I think he is still an independent. He took the title of the debate, “Global Britain”, and forgot the Britain bit. He did talk a bit about global, but it was mainly a speech against global corporations and his complaints about their role in the world today.
The Chairs of the Select Committees on Foreign Affairs, on Defence and on International Development—my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), my right hon. Friend the Member for Bournemouth East (Mr Ellwood), and the hon. Member for Rotherham (Sarah Champion)—all made very good points. My hon. Friend the Member for Tonbridge and Malling spoke about how trade can transform lives in Africa; the Defence Committee Chair set out a huge to-do list on how we should work with President-elect Biden, which we very much look forward to doing; and the hon. Member for Rotherham spoke about development and women’s rights. Nobody is more passionate about girls’ education than our current Prime Minister, and I think we have been delivering on our important role there.
My right hon. Friend the Member for Bournemouth West (Conor Burns), who is at once my successor and my predecessor in this role, gave thanks to the DIT team; we thank him for his important work in the Department from 2019 to 2020. The hon. Member for North Antrim (Ian Paisley) expressed his genuine concern about the Northern Ireland protocol and made some important points about hydrogen technology and other things.
Let me zip through the other speeches. My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) quoted the words of Pericles; we were all expecting to hear Churchill, but instead he quoted another of the Prime Minister’s great heroes and we thank him for that. My hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) talked about Nord Stream 2, my hon. Friend the Member for Morecambe and Lunesdale (David Morris) about the importance of Heysham as a port, my hon. Friend the Member for Congleton (Fiona Bruce) about the importance of human rights, my hon. Friend the Member for Rushcliffe (Ruth Edwards) about both manufacturing and Stilton, and my hon. Friend the Member for Barrow and Furness (Simon Fell) about international development and vaccine development.
My hon. Friend the Member for Crawley (Henry Smith) skewered the shadow Secretary of State, the right hon. Member for Islington South and Finsbury on China—she had no answer. He was passionate about that very important subject. We will hear from the Foreign Secretary tomorrow about China.
From the Opposition, I liked the speech that the hon. Member for Vauxhall (Florence Eshalomi) gave about the living reality of her global diverse community in Vauxhall. I disagree with her on isolationism: I do not think that that is the direction that the UK is taking under this Government.
My hon. Friend the Member for Clacton (Giles Watling) praised his own community. He is quite right that the NHS will never be on the table in future trade deals.
The hon. Member for Angus (Dave Doogan) attacked the Government on fishing. How extraordinary to hear a speech attacking the Government on fishing from the SNP—a party that is committed to rejoining the EU common fisheries policy! It was an absolutely extraordinary speech.
I will not, because I am going to go through Members’ contributions.
My hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) talked about global Cornwall, which I thought was a fantastic thing, and about Cornish exports to the US, Kazakhstan and Taiwan.
The hon. Member for Newport West (Ruth Jones) raised something that we have to clear up. On Ghana, the Secretary of State—this is on the Government’s website and we have announced it—has agreed the main elements of consensus on a new agreement with Ghana. That is a great relief to all of us, and I know that it will be and has been welcomed by many in Ghana. There is also no diminution of human rights in our trade agreements, as hon. Members will have seen.
My hon. Friend the Member for Reigate (Crispin Blunt) made a thoughtful contribution; he also cited Robin Niblett of Chatham House. My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) spoke about the importance of local exporters in his borders constituency. My hon. Friend the Member for Bridgend (Dr Wallis) spoke about showcasing what the UK has to offer. My hon. Friend the Member for Romford (Andrew Rosindell) said that Britain is back, and he is absolutely right. He also spoke about the importance of the Crown dependencies, which will play an important role. I have regular dialogue with the Crown dependencies—Guernsey, Jersey and the Isle of Man—on their role in future trade agreements.
My hon. Friend the Member for West Worcestershire (Harriett Baldwin) was passionate about her time as Africa Minister. I read her piece on “ConservativeHome”; the Government position is that we will return to 0.7% as soon as the fiscal position allows it. There were also good speeches from my hon. Friends the Members for Gloucester (Richard Graham), for West Aberdeenshire and Kincardine (Andrew Bowie), for Rutland and Melton (Alicia Kearns), for Sedgefield (Paul Howell), for East Surrey (Claire Coutinho), for Stafford (Theo Clarke) and for Cleethorpes (Martin Vickers), who all made excellent contributions in support of the Government’s free trade agenda. Unfortunately, I do not have time to reflect on every single one of those speeches, but this has been a successful, very well subscribed and star-studded debate and it has been a great pleasure to wind it up for the Government.
This year marks the beginning of a new chapter in our national story, going into the world as a sovereign, independent trading nation. The responsibility now falls on all our shoulders, both in the Government and in this Parliament, to take full advantage of the freedom of action that our country has regained. 2021 will be our opportunity to show what global Britain can be, striking trade deals with new markets and reasserting ourselves as a liberal, outward-looking, free-trading nation and, most of all, a force for good in the world.
Question put and agreed to.
Resolved,
That this House has considered Global Britain.