Draft EU-Canada Trade Agreement Order Debate

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Department: Department for International Trade
Tuesday 26th June 2018

(6 years, 5 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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I will make some progress.

This Government are clear that CETA is a good deal for Europe and a good deal for the United Kingdom. Our total trade with Canada already stood at £16.5 billion last year, up 6.4% on the previous year, with a services surplus of £1.9 billion. CETA will improve on this already strong economic partnership. It is an agreement that will potentially boost our GDP by hundreds of millions of pounds a year. It will bring down trade costs, boost trade and investment, promote jobs and growth and increase our ability to access Canadian goods, services and procurement markets, benefiting a wide range of UK businesses and consumers. More trade and more growth result in more money for the Treasury, with benefits for our publicly funded services. CETA is a comprehensive and ambitious agreement— the most comprehensive agreement between the EU and an advanced partner economy that has come into force so far.

Jeremy Quin Portrait Jeremy Quin (Horsham) (Con)
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My right hon. Friend referred to the benefits that may flow to Canada, the UK and the EU, but there is a broader point to be made today about the benefits of free trade to the whole world. I hope that the House—hopefully united, and with Opposition Members hopefully united as well—can send the signal that free trade is a good thing for the world economy and that it is free trade that brings people out of poverty on a global basis.

Liam Fox Portrait Dr Fox
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I think that something we share across the House is the belief that we would prefer people to be able to trade their way sustainably out of poverty rather than having to depend on aid budgets, and, of course, free trade is one of the key ways of ensuring that that happens. My hon. Friend is right: it is important that we send a signal, and I hope we can add to the signal that we sent last time that it is not possible to believe in the concept of free trade while not agreeing with any of the specific agreements that make free trade happen. It is important that we have consistency throughout.

--- Later in debate ---
Barry Gardiner Portrait Barry Gardiner
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No.

On 18 October 2016, the Government confirmed their support for signature, provisional application and conclusion of CETA. Overriding scrutiny, Mr Speaker, is no minor matter. The Committee rightly called an emergency evidence session demanding that the Secretary of State account for his decision to override the Committee’s scrutiny reserve and to proceed with provisional application. The Secretary of State had the audacity to tell the Committee:

“I very much believe in the democratic process and the importance of transparency and, as the Committee knows, I have long been one of those Members who has been very much supportive of the scrutiny process and I’m sorry that the timescales meant that it was not possible to have a debate before decisions needed to be made on CETA.”

He went on to tell the Committee that this was

“down to the parliamentary calendar and the timescales set for us. However, I therefore reinforce my commitment to the Committee today to hold such a debate and I’m very happy to have that debate on the Floor of the House. Our officials are already working with business managers to identify a date most likely, we understand, in November.”

That, for the avoidance of doubt, was November 2016.

So, November comes around and, having had no indication of a debate being forthcoming, the Committee published its summary of that urgent evidence session and noted:

“We consider such a debate to be urgent and ask that it be scheduled before 13 December”.

[Interruption.] I know the Secretary of State does not like this, because it brings up all the ways in which he has sought to avoid transparency and scrutiny in this place.

By 30 November, the Secretary of State failed to secure a debate in the timeframe he himself had suggested to the Committee. On 7 December, the Committee repeated the need for a debate and called for it to take place before mid-January 2017, recognising that the Secretary of State would not be bringing forth a debate by the earlier stipulated deadline of 13 December.

It was farcical. The Secretary of State had absolutely made it farcical, but it got worse. My office submitted a freedom of information request on 15 December requesting details of the correspondence between the Department and business managers regarding scheduling a debate on CETA since 1 December 2016. It may come as no surprise that the Department failed to respond within the suggested timeframe. However, a response was forthcoming by 25 January. Staggeringly, it admits in its response that the first attempt to bring forward a debate on CETA was not in July 2016, as one might expect, and not even in September when the House returned after summer recess. It was an email sent from an undisclosed official to the Government Chief Whip’s office on 25 October at 1.57 pm, just 24 hours prior to the Secretary of State’s scheduled appearance before the Select Committee.

For the avoidance of doubt, I want to reassure the House that the Secretary of State did not misspeak. He did not mislead the Committee in any way when he told the hon. Member for Stone that

“our officials are already working with business managers to identify a date”.

They had been: for a whole 24 hours and 33 minutes. If it should be that prior to being summoned to give evidence to the European Scrutiny Committee on why the Government had blatantly ignored the Committee’s limited and conditional waiver and the condition that a debate take place, the Secretary of State had instructed his officials to come up with a cover, at least the literal interpretation of his words was strictly accurate. More troubling is his apology to the Committee implying that there had been efforts to find time to schedule a debate, saying,

“I am sorry that the timescales meant that it was not possible to have a debate before decisions needed to be made on CETA in the Council.”

Jeremy Quin Portrait Jeremy Quin
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I am most grateful to the hon. Gentleman for giving way. For someone who seems so keen to have had a debate on this particular treaty, he seems very, very wary about actually getting on to the substance of the issue we are here to discuss. The only point on which I have heard him say he disagrees with what is laid before the House is some wording about it impinging on national Parliaments to regulate their own affairs. What bit of the treaty does he disagree with? Is it chapter 23, which ensures that we protect employment rights? Is it chapter 24, which ensures that we protect environmental rights? Or is it the legal text that provides protections for our NHS? What is it that he disagrees with?

Barry Gardiner Portrait Barry Gardiner
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I am grateful to the hon. Gentleman for pressing me on to the substantive part of the debate, but he will understand that the way in which international treaties progress through this House, the way in which they are scrutinised and the transparency with which that is done are matters of real importance. The reason why is that the substance of these treaties needs to be agreed in terms of a mandate. It then needs to be ensured that the scrutiny that applies is available to Members of this House at all stages. That is what in this situation entirely failed to happen.

The Secretary of State said:

“I am sorry that the timescales meant that it was not possible to have a debate before decisions needed to be made on CETA in the Council. This was down to the parliamentary calendar and the timescale set for us.”

“Not possible”? How did he know? He never bothered to ask. Why would the Government so determinedly pursue such a tack? The Secretary of State told us why when he admitted to the Committee in October 2016 that the

“UK could not be seen to block the agreement as it would send a negative signal to Canada.”

In a meeting between the Secretary of State and his Canadian counterpart that took place on 16 July, we are told by the then Canadian Trade Minister, Chrystia Freeland, that

“when I asked him if I could count on his and Britain’s continued support for CETA, he told me Britain would not just be supporting CETA, Britain would be pushing for CETA at the EU table.”

Heaven forfend that Parliament might have had a say in such a deal now that the Secretary of State had given his gentleman’s agreement to Canada!

There are two key issues that Members need to consider today. One is the issue of substance, and we will come on to the reservations on that score that exist throughout Europe, not just on the Opposition Benches, where they are currently being debated in constitutional courts and campaigned on by colleagues in the trade union movement. Incidentally, they were fully set out in Labour’s general election manifesto last year. The second issue is process. Why have the Government repeatedly attempted to avoid proper scrutiny of the agreement? The reality of today’s debate is that it is nothing more than a masquerading exercise designed to give the illusion of scrutiny when there has in fact been so little. We are now too late in the process and can do nothing to alter its course.