Trade and Agriculture Commission: Role in International Trade Deals

Debate between Hannah Bardell and Neil Parish

Wednesday 21st July 2021 Westminster Hall

[Neil Parish]

I thank my hon. Friend for his intervention. Yes, he is absolutely right that it is absolutely possible for our trade negotiator to stand up for these conditions, but until we have got this Trade and Agriculture Commission and the core principles in place, how on earth will we be certain that is going to happen? We will have to be clear in negotiations that we will not accept these eggs.

Likewise, I have been very critical recently of Brazilians and their environmental record, given the massive increase in deforestation that we have seen under their current Administration. If we signal to them that we are willing to compromise on our standards, that would completely undermine our negotiating position before we even get to the table. At a time when we are passing the Environment Bill and supposedly setting world-leading laws on deforestation, that would be such a failure of joined-up thinking.

The second key recommendation by the TAC report, which we need a response to, is that we need a proper export strategy if our producers are to benefit from these opportunities. In particular, we need an export council to co-ordinate our export efforts and an increase in the number of agricultural councils as a priority, so that we can have counsellors all across the world, as the Australians and others do. We also need to have a better link between the Department for Environment, Food and Rural Affairs and the DIT. The TAC argues for a dedicated Minister for agrifood trade who will work across Government; I would be very interested in hearing the Minister’s views on that suggestion.

One thing that I am very keen to see is an expansion in the number of agriculture counsellors that we have abroad. The UK has an agriculture and food council in just two of our embassies, in China and the United Arab Emirates. These were funded largely by the Agriculture and Horticulture Development Board. The US spends over $200 million on its foreign agriculture services to help its exporters to break into markets, with offices in over 90 countries. Recently, Australia has been spending 20 million Australian dollars on its network of agriculture counsellors around the world, who operate in 15 locations across Europe, South America and Asia. New Zealand has a network of 22 counsellors; it has eight counsellors in China alone, because it knows that it is challenging but important to enter a new market that presents a prime opportunity for exports. It has a very senior official based in China to lead on the ground, who comes from New Zealand’s equivalent to DEFRA. That is what the Chinese really want—somebody very senior in China to negotiate these deals.

The New Zealanders are very good at getting technical specialists on the ground. In some markets where the rules are strict, they have policy counsellors but they also have veterinary counsellors, who have the technical knowledge to work around the requirements for importing into new markets. They learn exactly what needs to be done on standards for imports, but they also help to produce the right legal paperwork. They do so by building networks with the local equivalents of DEFRA, the AHDB and the Food Standards Agency. They do all that before they enter into negotiations for a trade deal. We need to emulate this model and we need to crack on with it before deals are signed, or we will not have the framework in place for exporters to benefit from a deal straight away.

As I mentioned, the AHDB funded the agriculture and food counsellors already in Beijing. The New Zealanders’ veterinary counsellor in Brussels is funded 50% by industry and 50% by Government, because the New Zealand AHDB equivalent recognises the value of veterinary counsellors in getting a route into a market. I would like to see the Treasury stepping up to find more agrifood counsellors. The Trade Secretary has suggested to me that there could be potential for some money to be made available, but I am unclear how much will be forthcoming. I recently questioned the Prime Minister about this in a Liaison Committee hearing. He stated that he was especially devoted to increasing food and drink exports in more embassies across the world. While I have the Minister here, let me ask him whether the Secretary of State has had conversations with the Prime Minister about Government funding to increase the number of agrifood counsellors.

We could look at the New Zealand system, and fund through the Treasury and half through the AHDB levy boards. Farmers and our food producers pay levies worth more than £60 million a year, which are supposed to be spent directly to further the interests of the trade. We have needed to reform the levy boards for some time and give the farmers more say in how they are run and how the money is spent. One thing we could ask them is whether a higher proportion of their levies should be spent on opening markets and getting their products abroad. I think that they would take up that suggestion.

We urgently need the new statutory TAC up and running. The Government are dragging their feet in appointing a chair and members. I believe that the expression of interest for members of the new body has now closed, but only very recently, so where are we on getting those who expressed their interest on to the commission to make it operational? It is not just about the chair and the members; the commission needs an independent secretariat and the technical capacity to get into the deal and draw on the views of stakeholders. The Government have refused to say what support the TAC will be provided to examine complex technical documents. Will the Minister clarify how many staff the TAC will have? Will it have the capacity to commission its own modelling and technical analysis?

I would also like the Government to allow the TAC to have a broad view of its responsibility so that it can provide expert advice on all matters relating to trade and trade standards. A narrow interpretation would look only at the aspects of a deal that require an immediate amendment to UK law. The TAC will need a broad view of where a deal may incentivise practices that we wish to put a stop to, such as deforestation. Putting into our list of core standards, for example, the principle that we will not eat any food produced on land that has been deforested, alongside measures to cut deforestation in the Environment Bill, which was mentioned earlier, would set a truly world-leading standard and encourage our global partners to follow suit. If the TAC does not examine those sorts of serious issues because it has a narrow remit, we would miss a great opportunity to tackle them in a joined-up way. That would also undermine our negotiating position, as I mentioned earlier.

On a positive note, I welcome the recent commitment from the Trade Secretary that Parliament will have three months to examine the final Australia deal. That is a step forward. It would be better, of course, if we had an opportunity for meaningful scrutiny of a draft deal, or even the possibility of rejecting a bad final deal. I therefore ask the Minister whether the TAC will get advance sight of the deal to conduct its analysis so that its report on it can be published alongside the final text at the start of that three-month period. Or will the TAC get to see the details at the same time as everyone else, meaning that it has to rush its analysis and produce a report late in the scrutiny stage? A rushed report would add little value to our scrutiny and would not be in the spirit of the legislation that makes provision for the TAC.

I will conclude. First, will the Minister give us the date on which the Government will respond to the TAC’s report, and will that response take on board its recommendations? Secondly, we really must have a list of core standards on which we must not compromise. Thirdly, we need an overarching strategy for agricultural and food trade that joins up with our policy at home and abroad. Fourthly, that should include more agrifood counsellors and an export council. Fifthly, I would like to see the Government hurry up and set up the statutory TAC so that it is ready to provide scrutiny on the Australia deal, as it is legally obliged to. Finally, we need some detail on what support the statutory TAC will have. Will it have the technical capacity and staff to fulfil properly its role and ensure that the interests of our farmers and producers are looked into?

Colleagues will know that I am a man of almost limitless patience, but I have to say, I am running out of it. This has taken far too long. We need some answers and we need them now.

[Hannah Bardell (in the Chair)]

I would like to call the SNP spokesperson by 3.28 pm. Depending on interventions and to be equitable to all Members, I would hope to give four and a half minutes to each Member.