European Union (Withdrawal Agreement) Bill

Debate between Iain Duncan Smith and Geraint Davies

Committee stage & Committee: 2nd sitting: House of Commons & Committee: 2nd sitting
Wednesday 8th January 2020 Commons Chamber

[Geraint Davies]

What we are talking about is the freedom of this Parliament to influence the outcomes for our electorate. [Interruption.] What I am saying, as my hon. Friend chunters in his seat, is that we will move from a position in which we can influence rules that will be applied in Britain to one in which we cannot influence those rules, and they will still be applied. We are not suddenly leaving and going to the moon.

I know that there is a move on the other side for us to become semi-detached, or worse, from the EU, and to thrust ourselves into the fond arms of the WTO. However, as I said to the Minister earlier, and I have had some experience of this as a trade rapporteur for the Council of Europe at the WTO, we will end up negotiating with 164 countries with just one vote, not proportionate to our population—and some of those countries will be dictatorships—as opposed to being in a club of 28 mature economies with a strong bargaining position within the WTO. As I said earlier, the WTO is being undermined by the United States, which wants its own massive power to decide everything, rather than rules. Moreover, it has existing rules that are contrary to what we are allowed to do within the EU.

We may talk of sovereignty, but if at some point in the future the Government of Britain wanted to return the railways, for instance, to public ownership—I appreciate that the Minister may not want to do this—the WTO would be able to stop us. It also has rules about patents which will increase the price of drugs. I do not think that “people in the street” voted for that.

Furthermore, the WTO will impose—as will bilateral trading relationships with the United States—new systems of arbitration courts and panels with independent judges who, unlike the European Court of Justice, are not democratically elected, and who will make decisions on whether big companies can either sue us or threaten to sue us for not pursuing various activities, or will block our legislation.

In case there is any ambiguity, let me give an example. Lone Pine, the big fracking company, sued the Canadian Government because Quebec had a moratorium on fracking, saying that it would affect climate change, or was not in the interests of the environment, or whatever it was. We have started fracking in this country, but let us suppose that the Welsh Government said that they did not want fracking in Wales. If there were to be an investor-state dispute settlement tribunal, the frackers could come along and say “Look here, we cannot have this, we are fracking”, and sue the British Government. Is that sovereignty and control in any normal circumstances? Of course it is not. Courts will be available that will fine, or threaten to fine, the British Government for passing legislation to protect the environment and the public health of our citizens, and their intimidation will deter future Governments from doing that.

We have introduced a sugar tax, but when that happened in Mexico there was an attack on it through an investor-state dispute settlement. If we introduce a plastics tax, we will be attacked for that.

[Sir Iain Duncan Smith]

rose—

[Geraint Davies]

This is not sovereignty; it is madness and self-harm, on which point I will give way to the right hon. Gentleman.

[Sir Iain Duncan Smith]

I really do not understand what the hon. Gentleman and his Front Bench are up to. It is as if they are trying to rewrite the whole concept of the world order in trade. The EU has to abide by WTO rules just as we will when we leave—and we already do. There is no issue here that is going to change. WTO rules apply to the EU as stringently as they apply to us, and when we leave and become a voting member, they will still apply to us. The difference is that if there is a debate for change, we will have a vote which we do not have now because we are subsidiary, underneath the EU. The hon. Gentleman’s argument is specious, and it is total nonsense.

[Geraint Davies]

Well, that was very helpful.

Some hon. Members have failed to understand this. I remember the big debate over the Transatlantic Trade and Investment Partnership, for example, and over these investor-state dispute settlement clauses being used by the Americans on fracking and other issues. Once we are in a situation where, instead of being in the powerful trading bloc of the EU, negotiating head to head with China or the United States from a position of strength to sustain our environmental and workers’ rights and our standards, we will suddenly instead be broken free, semi-detached, and turning our back on our biggest local market—[Interruption.] It is all very well for the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) to chunter, but that is what will happen. It is already being discussed in the trading arrangements with the United States. The United States is saying, “Right, you’re on your own now and we are going to have this relationship and we will enforce it through the international tribunal.” That is what is going to happen.

Let us take as an example the simple European REACH protection—the regulations concerning the registration, evaluation, authorisation and restriction of chemicals. If the right hon. Member for Chingford and Woodford Green were making chemicals in Europe, he would have to prove they were safe before marketing them. In the United States, he would just be able to market them and an environmental protection organisation would have to prove them harmful. That is why they sell asbestos in America, and that is why there will be pressure for us to have asbestos in our brake pads here. That is why there will be pressure for us to have hormone-impregnated meat from America imposed on our growing children, who could then have premature pubescence. I know that some people think that that is sovereignty, but I do not.