Trade Deals and Fair Trade

John Howell Excerpts

Wednesday 11th March 2020 Westminster Hall

[John Howell (Henley) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I am grateful to the hon. Member for Swansea West (Geraint Davies) for securing this debate in Fairtrade fortnight. I will make four short points.

First, it would be wrong of us not to acknowledge that the Fairtrade establishment needs a considerable amount of reform. The poorest countries in the world, which are trying their hardest to participate in it, find it difficult to get Fairtrade certification, because they are poor and simply cannot meet its regulatory requirements. If we are trying to ensure an even spread across the world, we need to look at that so that we can access Fairtrade products.

[Jim McMahon]

To be clear, is the hon. Gentleman suggesting that Fairtrade should be reformed so that ethical and other standards are reduced, rather than maintained, to allow a level playing field? Surely we should invest further in international development to make sure that we level up.

[John Howell]

The hon. Gentleman misquotes me. I am not saying that standards should be reduced, but there is a definite difficulty with the Fairtrade method when the poorest cannot afford the Fairtrade certification that is required to get their products to the rest of the world.

Secondly, on the human rights question, I am fully committed to the human rights that we have and to the European Court of Human Rights. As the hon. Member for Swansea West knows from our common membership for some time of the Council of Europe, I am absolutely committed to the Council and the ECHR. Recently, a Member in the other place asked about the future of the ECHR and the UK Government’s commitment to it, and I was pleased to note that the Minister responsible gave a firm commitment to the ECHR. There is, however, a serious corruption problem in the ECHR, which we need to acknowledge and do something about. The petition about it has already reached something like 13,000 signatures, including mine. It is apparent that several of the judges whom we elect—I reiterate that we as members of the Council of Europe elect the judges of the ECHR—come not from legal practice but from non-governmental organisations. They are the very NGOs that bring cases before the judges without a declaration of interest. That undermines the credibility of the ECHR in taking great strides forward on our human rights.

If the hon. Gentleman would like a defence of the ECHR, I am happy to provide that, but this is probably not the occasion. I point out, however, that about 96% of cases that are brought before the ECHR are dismissed by its secretariat as worthless and having no legal merit and do not get to a judge. In the few cases that are brought before a judge, we are by far the winners in the way that we defend them and that they are taken forward. I share his commitment to the ECHR and will do all I can to ensure that we stay part of it.

Thirdly, the hon. Gentleman mentioned the agreement with Africa. As he knows, I have been and still am the Prime Minister’s trade envoy to Nigeria. The UK’s involvement with the Nigerian economy is productive. The UK has gone out of its way to try to achieve good things for the Nigerian state and the UK, one of which is the abolition of modern slavery. Agriculture is a sector full of opportunities for modern slavery. When I went to see Unilever and its operations, I was pleased that it and its entire supply chain are working with organisations to eradicate modern slavery. There is an enormous opportunity for British companies to get into Nigeria and to work constructively with Nigerian companies. That is why a year and a half ago I was pleased to invite the Nigerian Federal Minister of Agriculture and Rural Development to see the entire supply chain of the agricultural sector, from growing to packaging and selling, and everything along the way.

Fourthly, on the standards of health foods, we have heard a considerable amount from the Prime Minister and the Government about the standards of our health foods not being open to trade discussion. I have discussed it with my farmers on numerous occasions and given that commitment to them. I am sure that that will remain something that we will take forward in our negotiations.

--- Later in debate ---

[Stewart Hosie (Dundee East) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for Swansea West (Geraint Davies) on securing this important debate.

I do not think anyone in this room would disagree that trade needs to be free, or that trade needs to be fair. I thank the hon. Gentleman for expanding what we mean by fairness. We are not just talking about ensuring that there is fairness between an investor and the state, or fairness for developing countries—by, for example, stopping the illegal dumping of excess goods to the detriment of their own economies. We need to ensure that there is fairness in subsidies and state aid, fairness in competition and fairness for Governments. That can be done by ensuring that businesses pay their taxes and that Governments are not restricted, or perceived to be restricted, in legislating for the common good. Fairness for citizens involves ensuring that corners are not cut and that standards—be they social or employment standards, product safety or food standards, or environmental standards—are upheld, so that we all play fair with the environment and do what we can to combat climate change.

To ensure there is a level playing field and fairness in all these areas, the Scottish National party’s view is that trade deals need arbitration and dispute resolution mechanisms that work not simply for investors, but for all of us. It is instructive that in its negotiating mandate for the UK-EU free trade agreement, the European Union has said that each of the areas I have mentioned should be subject to a dispute resolution mechanism. It is equally instructive to note that the UK Government—certainly at this stage in the negotiations—are trying to exclude subsidies, competition policy, labour laws, the environment and tax from any dispute resolution mechanism. If the UK’s Government’s intention is to exclude those important matters from arbitration, I am not convinced that it will fill the public with confidence that the Government are serious about fairness and a level playing field.

[John Howell]

The hon. Member mentions dispute resolution. I declare an interest: after recent training, I am a mediator. Dispute resolution is an integral part of all current commercial negotiations, so I am not surprised to see it in these agreements.

[Stewart Hosie]

Nor am I, but I am surprised and slightly disappointed that the UK Government’s stated intention is to exclude certain important matters from dispute resolution or arbitration. But—and this is a big but—not all arbitration and dispute resolution mechanisms are the same. Although the SNP will continue to support the inclusion of all the aspects of modern trade deals that I have mentioned, we would be deeply concerned if other future trade deals implemented the one-sided ISDS-type mechanisms that the hon. Member for Swansea West mentioned.