Australia and New Zealand Trade Deals

Jonathan Edwards Excerpts

Monday 14th November 2022 Commons Chamber

[Greg Hands]

I am delighted to respond, because I have had extensive interaction with all the five nations’ NFUs during this process. We have delivered a deal that phases in the changes. The right hon. Gentleman might reference the fact that the trade deal we have with the European Union, which he supported, gives the EU comprehensive access from day one. This deal phases in access for Australia and New Zealand for a period of up to 15, and in some cases 20, years. I think that is worth consideration, as is the extensive interaction we have had with the NFU and with farmers. I have met MPs and their constituency farmers at some length and we will continue to interact with the NFU and the NFUs in all the nations to ensure that we are in full listening mode when it comes to Britain’s essential farming community.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Further to the intervention from the right hon. Member for Leeds Central (Hilary Benn), I have here a copy of “Y Tir”, the monthly publication of the Farmers Union of Wales, which states:

“There will always be winners and losers when it comes to negotiating liberalised free trade agreements, and it is clear from the UK Government’s impact assessments that UK agriculture will be one of the losers if these deals are ratified”.

Does the Minister acknowledge the widespread concern among our agricultural communities that the British Government are selling them down the river?

[Greg Hands]

I disagree with that. I am just checking my records and I have had extensive interactions with representatives of NFU Cymru during the negotiation process. I met them on 19 May 2021—I met the Farmers Union of Wales on 19 May as well—and on 26 May, 16 June and 13 September. It was important for us to get the confidence of the farming community in Wales and I also did various Zoom calls at the time—this was during one of the lockdowns—with MPs and their constituent farmers. The protections we have in the deal are very considerable. For example, the tariff rate quotas carry on for 10 years in some cases, and there are product-specific measures to protect sensitive agriculture produce from years 10 to 15 as well as bilateral safeguard mechanisms. There are a lot of protections there.

--- Later in debate ---

[Nick Thomas-Symonds (Torfaen) (Lab)]

Today is a significant day, and I wish the Minister a happy birthday. What better present could the Secretary of State have given him than being absent and allowing him to open this debate in her place?

I welcome this general debate on the Australia and New Zealand trade deals. Yesterday, Remembrance Sunday, was a powerful reminder of our shared history and shared past sacrifice. The UK, Australia and New Zealand have deep enduring bonds, shared values and common goals. The Opposition support AUKUS; we recognise the key and central priorities that the UK, Australia and New Zealand share on the world stage, and we will continue to support the achievement of those goals.

I also put on record my desire to see a deepening of our trade links with our friends in Australia and New Zealand through trade agreements, and ever-closer relationships on all levels. I am especially pleased to say that both countries now have very fine Labour Governments in office.

Of course, we are having this debate after the deals have been signed, but they must now be honoured and worked with for the benefit of people here and of our friends in Australia and New Zealand. Specifically on negotiations, the high commissions of Australia and New Zealand have been remarkably helpful in briefing hon. Members across the House and briefing me as shadow Secretary of State, and I express my gratitude to them for all that they have done throughout the process.

To be clear, our debate today is not about the Opposition’s commitment to our deepening relationship with Australia and New Zealand. Rather, the question for this House is whether this Conservative Government secured the best possible deals on behalf of our constituents, and let us be frank: the best possible deals were not achieved.

The Australia deal is “one-sided”—not my words, but those of the current Prime Minister, who said so absolutely clearly over the summer. In fairness to him, we can see why he takes that view. The impact assessment for the Australia deal shows a £94 million hit to our farming, forestry and fishing sectors, and a £225 million hit to our semi-processed foods industry. On the New Zealand deal, the Government’s own impact assessment states that,

“part of the gains results from a reallocation of resources away from agriculture, forestry, and fishing”,

which will take a £48 million hit, while semi-processed foods will take a £97 million hit.

Ministers know the serious concerns about the agriculture elements of these two agreements and the precedents that they risk setting. We in the Opposition are very proud of our UK farmers and the standards of excellence they seek to uphold, and we believe that British produce can be a huge success in new markets, but we must also recognise the need for a level playing field for our farmers.

The Government claim that they are trying to mitigate the impact of the two deals, with tariff-free access being phased in. In the New Zealand deal there are tariff-rate quotas and product-specific safeguards for 15 years. Similarly, in the Australia deal the phasing-in period on beef and sheepmeat is of the same period, but the quotas that the Government have set for imports from Australia are far higher than the current levels.

We only need to see what other countries achieved in trade deals with Australia. When Japan negotiated a trade deal with Australia, it limited the tariff-free increase in the first year to 10% on the previous year. South Korea achieved something similar, limiting the increases to 7%. Yet this Government have negotiated a first-year tariff-free allowance with a 6,000% increase in the amount of beef the UK currently imports from Australia. On sheepmeat, it is a 67% increase. I have a simple question for the Government: why did they not achieve the same things that Japan and South Korea did, and why have our Ministers failed to ensure that the Australian agricultural corporations are held to the same high standards as our farmers?

It is good to see the right hon. Member for Camborne and Redruth (George Eustice) in his place. As I am sure he will recall, when he was Secretary of State for Environment, Food and Rural Affairs, he said that he faced “challenges” in getting the former Prime Minister—it is quite confusing these days; I mean the most recent former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss)—and the International Trade Secretary to enshrine animal welfare in deals. It is no wonder that the National Farmers Union said that it saw

“almost nothing in the deal that will prevent an increase in imports of food produced well below the production standards required of UK farmers.”

It is perhaps no surprise that Australia’s former negotiator at the World Trade Organisation said:

“I don’t think we have ever done as well as this.”

They are called trade “negotiations” for a reason, and it is a shame that the Government failed to put forward the strongest possible case for the UK. At the very least, I ask Ministers to go away and work out what more they can do now to support our food producers in the face of these challenges.

[Jonathan Edwards]

Some farmers are very concerned about the procurement aspects of the deals, which will allow producers from Australia and New Zealand to compete for UK procurement deals. UK producers, however, are unable to compete in Australia and New Zealand, likely because of the economies of scale challenges.

[Nick Thomas-Symonds]

The hon. Gentleman raises a useful point. Our farmers are seeking a level playing field. We believe in our farmers and we want them to be able to compete on the same basis.

We also see in the Australian deal a lack of success on tackling climate change. The former COP26 President, the right hon. Member for Reading West (Alok Sharma), told the House last December that the Australia deal would reaffirm

“both parties’ commitments to upholding our obligations under the Paris agreement, including limiting global warming to 1.5°.”—[Official Report, 1 December 2021; Vol. 704, c. 903.]

However, the explicit commitment to limiting global warming to 1.5° was not in the deal, despite the fact that the Minister had said that only a matter of days before it was signed. What went wrong in those final days? Was it perhaps that Ministers simply gave way for the sake of getting a completed deal?

The current Secretary of State for International Trade, the right hon. Member for Saffron Walden (Kemi Badenoch), was sadly not here to open the debate. When she was standing to be Conservative party leader, she branded the net zero climate target “unilateral economic disarmament”. I think it is fair to say that there are worries about her commitment to delivering the progress needed on climate change, given that she has expressed that view publicly. Not only does that view misjudge the economic imperative of action to tackle climate change, but it fails to recognise the huge opportunities that the transition to net zero could provide. The question must also be asked: how broken can a party be when dabbling with climate change denial is a way to drum up support from its members?

On labour standards and workers’ rights, the Government did not push as hard as they might have done, as my hon. Friend the Member for Aberavon (Stephen Kinnock) said in an earlier intervention. On the Australia deal, the TUC said that the

“agreement does not contain commitments to ILO core conventions and an obligation for both parties to ratify and respect those agreements”

and that it provides

“a much weaker commitment to just the ILO declaration.”

That is a mistake. We should not set a precedent for new trade agreements across the globe to sell short our workers here or elsewhere.