Trade Bill

Katherine Fletcher Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

Before I conclude, I wish to add to the comments made by the hon. Gentleman about the need to reform the investor state dispute mechanism. That is particularly important as we deal with the global socioeconomic consequences of covid-19. I welcome moves recently by the European Commission, as well as by some of the candidates to be director general of the World Trade Organisation, seeking to explore new multilateral investment courts to replaces the investor-state dispute settlement system. I hope the Government will consider engaging constructively in those discussions. I hope the House will support new clause 4 and the amendments he tabled, as I believe they will improve future UK trade policy and the integrity and our democratic engagement in those negotiations.

[Katherine Fletcher (South Ribble) (Con)]

I say to the hon. Member for Ceredigion (Ben Lake) that it is a pleasure to follow such a thoughtful contribution—indeed, let me say diolch yn fawr to all three Welsh MPs who have just spoken.

I rise to add my voice to calls for more trade and more opportunities for business in global Britain, especially those close to my heart in South Ribble and wider Lancashire. This Bill allows for more than 40 existing trade agreements with other countries to be kept in place, for us to access a £1.3 trillion global procurement market and for us to protect vital industries from product dumping by overseas actors. Finally, we clear up the rules on sharing data in customs environments, all of which are vital to the health of our domestic and export businesses. This useful and practical Bill tidies up the details on laws currently with the EU and adding them to the UK’s statute book.

I also rise to put to rest the concerns I have heard from many of the good people of South Ribble who have been worried by some of the noise and misunderstandings around the Bill.

[Marco Longhi (Dudley North) (Con)]

Does my hon. Friend agree that Opposition Members wish simply to sow doubt among the public about the NHS? We have had 10 years in which to privatise it, but we have not done so. The last time it was privatised was in 2006, with Tony Blair’s independent sector treatment centres. Does she agree that there is a certain amount of hypocrisy coming from those on the Opposition Benches?

[Katherine Fletcher]

My hon. Friend is entirely correct on that. Having been part of the Bill Committee in the past weeks, I have had the opportunity to hear at length the arguments made on this Bill and on today’s amendments. I have listened hard to the details and drawn my own judgments. The advocacy for new amendments is strong and their proponents on the Opposition Benches articulate them well. They express fears that, at first glance, seem reasonable, but they are fears and not realities. I worry that Opposition Members are seeking to conflate what is actually in the Bill with fears about what could be in the Bill and wider conversations about trade. I know I am relatively new to this House, but that does not make sense to me. So what are the actualités of this piece? There is much noise about Parliament voting on future trade deals—we can do that, more so than is the case in other countries such as Australia and New Zealand. The CRAG process allows us to vote on trade deals and if we change our own law on trade, we will vote on that in this place too.

In reference to new clause 4, I must draw on my business background. As anyone who has negotiated any type of deal before knows, if you are at a table and have to say, “I agree but I have to get 650 other people to agree”, it rather ties your hands in the negotiation. Let us trust our elected Government to act in the best interests of global Britain, and as hon. Friends have mentioned, trust those on these Back Benches to hold them to account. Should it be needed, there is still a backstop. If we, as a Parliament, need to block a trade deal after negotiation, we can. If it changes our laws, it will need a vote in this place, and FTAs cannot, by their nature, unilaterally change UK law. This is similar to Canada’s system, and it is forging on with trade deals and doing all right.

I have had much correspondence from the people of South Ribble raising concerns about our farmers and their wonderful, quality produce. People say, “You need to reassure constituents. There is concern that if a clear and explicit Government commitment to uphold food standards is not included in the Trade Bill, existing food law, including retained law, could easily be changed.” If I were in their shoes listening to that, I would be worried too. Let me put their fears to rest. We will not remove the UK’s current food standards. For example, hormones and chlorine in food are banned now and will remain banned—full stop. The current standards are in EU law and will be rolled over when we leave the transition period. We have promised to keep import standards in place, and we will. For those concerned about having a say, should they ever be changed, that will be voted on here in the UK Parliament.

If we put food standards rules into this Bill and ask those overseas to adhere to them, then we are asking those abroad to abide by our law. That is something we would not and do not accept from other countries, and our friends abroad will almost certainly say, “No thanks. That will put a restriction on trade that will hurt us—let’s not.” To put it another way, putting food standards regulation into a Bill rolling EU law into UK law is a bit like putting a frock on a frog: it will look more than a bit out of place down at the negotiating pond, and people will be disappointed when they kiss it and it does not turn out to be a protectionist princess. There is a right place to protect the UK’s food standards when products are imported, and we will, but it is not this Bill.

[Sarah Olney (Richmond Park) (LD)]

It is always a pleasure to follow the hon. Member for South Ribble (Katherine Fletcher), as I recall I did when she made her maiden speech. I rise to speak in support of new clause 4 tabled by the hon. Member for Huntingdon (Mr Djanogly), who I know is scheduled to speak immediately after me and will doubtless give a detailed account of the reasons for it. In anticipation of that, I wish to set out why the Liberal Democrats support it.

From 1 January 2021, the UK will be setting out on its own for the first time in nearly 40 years in developing its own independent trade policy and negotiating its own trade agreements. The implications of this step on everyday life in the UK are huge, and possibly not yet fully appreciated. Trade negotiations are complex and delicate. Securing access to international markets for one sector may mean conceding international access to our domestic markets for another. Securing preferential treatment on tariffs for some of our goods may mean relaxing import controls on something else.

We have a complex economy currently disrupted by the need to beat the coronavirus, and on the verge of major change as we transition away from carbon-emitting activity. Technological change offers both threat and opportunity. We must also consider that our economy is imperfect in its distribution of wealth and opportunity, and look for ways to address this challenge. Increasingly, the UK is being called on to stand up for the defence of fundamental human rights and liberal democracy and use the powers at its disposal to effect change internationally. Our trade policy and agreements touch on all those urgent challenges. How can we best leverage our economic advantages to deliver current and future prosperity for UK citizens and influence peaceful progress abroad?

To determine that those decisions are best made behind closed doors without consultation or discussion is an assault on our very idea of what Parliament is for. We need to balance all the competing pressures from different economic sectors and geographical regions, fully considering the impact on different groups of workers, and determine whether we prioritise climate commitments over economic growth. How can that be done effectively without recourse to Parliament? The British people deserve to have their interests properly represented when these questions are being asked and for the answers given by Ministers to be put on the public record and judged accordingly.

I also speak in support of new clause 9 tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas) and supported by the Liberal Democrats because we recognise the urgency of taking action against the very real threat of climate change. It is essential that we enshrine that urgency in our trade legislation, so that negotiating partners know, before the first papers are exchanged, that they must comply with our environmental goals. Our economy is transitioning away from carbon emissions, in accordance with the democratic mandate to achieve net zero carbon by 2050, and that progress must be underpinned in every trade agreement we negotiate. Our commitment to net zero cannot be traded away in pursuit of other goals.

The Liberal Democrats have also tabled amendments that relate to dispute resolution and human rights. Dispute resolution is fundamental to ensuring that democratic decision-making that relates to the expenditure of taxpayers’ money, or regulation of food standards, cannot be undermined by law suits from foreign corporations. At this stage, the UK Government should rule out any use of investor-state dispute settlement procedures from UK trade deals, to safeguard our ability to determine our own regulatory environment, without the threat of sanction from foreign investors. That is fundamental to ensuring that our NHS remains free at the point of use for all UK citizens, and that we set our own standards on animal welfare and food quality.

Earlier I referred to the UK’s powers to effect change internationally, and to how we can use our trade agreements as leverage. We have been forcefully reminded of our need to use those powers to influence foreign partners to respect human rights, thanks to recent events in Hong Kong and China. It would send a powerful message to the Chinese regime, and to others around the world who hope to trade with us, if we enshrined in law our commitment to upholding human rights as a non-negotiable element of our trade deals. That message will be compelling only if we lead by example, and that example starts with parliamentary oversight of negotiating mandates and trade deals. I implore colleagues to support new clause 4 this evening.