Trade Bill

Kerry McCarthy Excerpts

Tuesday 9th January 2018 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

I believe that the Bill is unnecessary; that we should be seeking to stay in the customs union and the single market; and that we are better off in a union with no tariffs or quotas, as well as with the elimination of non-tariff barriers.

The EU market accounts for nearly 50% of our total trade, and trade under EU agreements with third countries, including the likes of Canada and South Korea, comprises a further 13%. Last month, the EU-Japan trade agreement was finalised, and the EU is starting to open negotiations with both Australia and New Zealand. We would benefit from all those agreements if we were to remain in the customs union.

I chair the all-party group on agroecology, which launched its report into post-Brexit trade at the Oxford real farming conference last week. The report sets out the importance of the EU for our food, feed and drinks market. In 2016, 60% of UK exports in those sectors were to the EU, compared with just 16% to Asia and 14% to North America. The picture is even starker for imports: 70% from the EU, compared with just 8% and 6% from Asia and North America.

Currently, we negotiate as a bloc of 500 million consumers in a market renowned for its high standards. After Brexit, we could be negotiating from a much-diminished position, and I have to say that, on our current record, we are not very good in this area. In January 2008, Gordon Brown announced a deal to sell pigs’ trotters to China, following years of complex negotiations. In November 2017, nearly 10 years later, Meat Management magazine—I am an avid reader, as hon. Members can imagine—reported that the UK had finally got the go-ahead to start shipping those trotters out to China. This followed a lengthy process of technical negotiations led by the Agriculture and Horticulture Development Board in collaboration with the Department for Environment, Food and Rural Affairs, the Food Standards Agency and others, as well as inspections of UK facilities by the Chinese authorities. That example shows that it took 10 years just to get the pigs’ trotters protocol off the ground. Imagine how long it will take to negotiate comprehensive trade agreements covering more than that.

There are a few general points of concern that I want to raise about our future trading relationships and the way in which trade deals and rules can affect people involved in the sectors in which I am interested. In 2014, I visited El Salvador to look at the impact of climate change on its farmers. I was told how its Government’s efforts to promote native seeds and more traditional, organic forms of farming had been thwarted because following the central America free trade agreement, they were unable to stop Monsanto peddling its wares. That raises concerns in my mind about what will happen when products come on the market that we do not have the power to reject post deal, even if we manage to carve out concessions when we negotiate trade agreements now.

The North American free trade agreement is held responsible for the tripling of obesity in Mexico, as fast food companies came in and flooded the market with high fructose corn syrup. To give a quite obscure example, the republic of Samoa has among the highest rates of obesity, hypertension and diabetes in the world. In 2007, in a bid to combat that public health crisis, its Government banned the imports of two favourite delicacies: turkey tails from the US and mutton flaps from New Zealand. But when Samoa joined the WTO in 2012, it had to lift that ban. A deal was struck that allowed it to add a 300% tariff to turkey tails for two years, and then a 100% tariff for one more year on top of that. After that, Samoa was told that its only mechanism was to resort to public health education. The lack of freedom that countries have under current trading arrangements concerns me.

Perhaps many Members here think that the people of the republic of Samoa should not be deprived of their freedom to eat deep-fried turkey tails, if that is what they really want to do, but the broader point is that if the United Kingdom is taking back control, we should be able to decide. We should set standards for what we want to import into this country. It is not about protectionism; it is about ethics, the economy and the type of sustainable and healthy society we want. That makes it all the more important that we have full scrutiny of not just the trade deals covered by the Bill that we are seeking to carry over—they cannot possibly be exactly replicated—but future trade deals. As it stands, MEPs and members of other EU countries’ national Parliaments will have more influence than we will, and it is not just national Parliaments. After all, it was the regional representatives in the Parliament of Wallonia who blocked the CETA deal.

The European Parliament does not have a formal role in EU treaty negotiations with third countries, but it is kept

“immediately and fully informed at all stages of the procedure”,

because its consent is often required. For example, it voted against the proposed anti-counterfeiting trade agreement in 2012.

The Library’s useful briefing on the Bill states that there are four ways that Parliaments can be involved in treaties:

“Setting the negotiating mandate…Scrutinising negotiations… Approving or objecting to ratification…Passing implementing legislation”.

Yet the Bill only deals with the fourth of those points. The Government plan to limit Parliament’s role on such agreements by taking powers through secondary legislation, with only the negative procedure available to Members. The Government should heed the advice of the Institute for Government, the Trade Justice Movement and others, and include in the Bill a guarantee that all future trade deals will be subject to a full debate and vote in this place.

Parliament should have the right to set a thorough mandate for each trade negotiation. We should have the right to amend and reject trade deals and the ability to review them and withdraw from them in a timely manner if we think it is in our interests to do so. We should be able to consider the need for environmental protections or human rights clauses in agreements and to seek reassurance about how they would be enforced. This is too important to be left to the say-so of Ministers. We already know about the spats that have occurred in Cabinet between the International Trade Secretary, who is all in favour of chlorinated chicken, and the Environment Secretary, who has said the United States would have to “kiss goodbye” to a trade deal if it wanted to include chlorinated chicken.

The Americans, meanwhile, are telling us that we must adhere to their rules and not set our own standards. Wilbur Ross, the US Secretary of Commerce, has said that the UK must ditch EU food safety laws. Last week at the Oxford farming conference, Ted McKinney, the US Under Secretary for Trade and Foreign Agricultural Affairs, said that the UK should consider the “reset button” on our food standards. There are many examples other than chlorinated chicken, including hormone-injected beef, food colourings and brominated vegetable oil. I make the plea for proper scrutiny; we must not let this be only in the hands of Ministers.