Transatlantic Trade and Investment Partnership

Kevin Brennan Excerpts

Thursday 10th December 2015 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

First, I want to say well done to my hon. Friend the Member for Swansea West (Geraint Davies) for securing the debate. If I counted correctly, there have been 16 Back-Bench contributions. I hope I have not missed anyone out. The speech from my hon. Friend the Member for Swansea West was followed by a very important speech from the right hon. Member for Hitchin and Harpenden (Mr Lilley). His thoughtful and important points about international bureaucracies outside democratic control resonated across the House. My right hon. Friend the Member for Warley (Mr Spellar), the chair of the all-party parliamentary group on European Union-United States trade and investment, put the case in his typically robust style and in a very effective manner.

We also heard speeches from the hon. Member for Aberconwy (Guto Bebb), my hon. Friend the Member for City of Chester (Christian Matheson), the hon. Members for Newark (Robert Jenrick), for Glenrothes (Peter Grant) and for Brigg and Goole (Andrew Percy), my hon. Friend the Member for Bishop Auckland (Helen Goodman), the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), my hon. Friend the Member for Luton North (Kelvin Hopkins), the hon. Members for Inverclyde (Ronnie Cowan) and for Kirkcaldy and Cowdenbeath (Roger Mullin), my hon. Friends the Members for Edmonton (Kate Osamor) and for Cambridge (Daniel Zeichner), and the hon. Member for Foyle (Mark Durkan). Finally, we heard from the hon. Member for Livingston (Hannah Bardell), speaking from the Front Bench for the Scottish National party. All those speeches made for a very interesting debate, and I look forward to hearing the Minister’s response to it.

There have been several debates on this subject in the House over the past couple of years and I am sure that they have helped to shape the debate about TTIP and to influence the negotiations in a positive way. There is general cross-party support for trade, and for a good trade agreement, but, as we have heard, there is also a great deal of controversy and concern, and in some cases outright opposition.

A comprehensive trade agreement between the EU and the USA has huge potential benefits. The CBI has described it as a global economic game changer, but of course for that to be true we have to get it right. The hon. Member for Livingston pointed out the Government’s dismal record on trade. I can tell her that new figures have come out today on the UK trade deficit in goods and services which show that the figure had risen to £4.1 billion in the three months to October 2015, which is £2.4 billion higher than in the previous three months. If that is not clear evidence that we need to improve our trade and export performance, I cannot imagine what is.

[Kelvin Hopkins]

Does my hon. Friend agree with Anthony Hilton, who has written in the Evening Standard that the disaster facing us is in fact a trade deficit disaster, and that this Government and future Governments will have to address it?

[Kevin Brennan]

Yes, my hon. Friend is absolutely right. When the Government discuss deficits, they seem not to want to talk about the trade deficit at all. It is extremely important, however, because it will in effect become a tax on every household in the country if we allow it to persist. We have to do much better, and this point simply highlights the difference between the Government’s rhetoric and the reality of what is happening in our economy.

Estimates commissioned by the Government, and others, suggest that the potential gain from TTIP to British output could be between £4 billion and £10 billion, or 1% and 3% in exports. We must, however, be cautious about the overall figures, as they have been questioned. It would be helpful if the Government could do more to explain their case. In particular, given the wide range of contributions to today’s debate from Members representing constituents in all the nations and regions of the UK, it would be helpful if they could break down a little further what the potential benefits would be across the nations and regions.

I put a written parliamentary question to the Secretary of State for Business, Innovation and Skills, which the Minister for Small Business, Industry and Enterprise answered recently. My question was about the potential benefits of TTIP to various parts of the UK economy. The part of the question that the Government could not answer was the part relating to the benefits for the economy of each region and nation. It would be useful if the Government did that work if they want to convince the public across the United Kingdom of the benefits of the process.

We support the core objectives of a good deal—job creation, better wages, higher standards and consumer benefits—but as the debate has shown, there are still legitimate concerns that the Minister needs to address in her response. The desire to get the deal through is understandable, particularly given the US presidential election in 2016. Europe and the US are Britain’s most important markets. The US is already the UK’s largest export market, but more can be done to tackle barriers to trade and to improve market access—hence the need to reach a deal. However, any trade deal must filter down to employees, to small and medium-sized enterprises and to consumers. The business case for TTIP must be more than a case just for business. That point will be crucial in assessing any final deal.

We have set out four tests in the past and I want to repeat them today. The first key test is the ability of the deal to deliver jobs and growth. The second is that it should be open and accountable. The third is the aim to achieve the highest possible standards regarding social and environmental concerns and, of course, wages. Fourthly, the agreement must allow enough space for national Governments to act in their own interests and according to their own democratic mandates. We have been monitoring closely the negotiations between the EU and the US, and the UK Government’s input into them, through the prism of those tests. We want the benefits that businesses experience to be passed on to consumers through better choice or lower prices.

I am sure the Minister will argue strongly for the benefits that TTIP can bring, and it would be useful to hear whether she thinks it would be in Britain’s interest to leave the European Union, given that we are negotiating this agreement. Can she explain what would happen to TTIP if the UK left the EU? Reports suggest that the Prime Minister is considering recommending such a course of action if he cannot get his way in the negotiations. Labour Members strongly believe that it is in the UK’s interest to stay in the European Union, and I hope the Minister will echo that in her response to the debate.

Real concerns have been raised about the ISDS, and many of our Labour colleagues in the European Parliament have pressed hard on that issue. The current European Parliament resolution calls for the ISDS to be replaced by a

“new system for resolving disputes between investors and states”

that is

“subject to democratic principles and scrutiny.”

The text does not address the issue of having a separate judicial system that is available only to foreign investors. The European Commission responded to the European Parliament’s demand by publishing on 16 September a proposal for a new mechanism called the investment court system, which would be used as a reference for TTIP and all future trade negotiations. Labour MEPs are considering that proposal closely and have expressed strong reservations about it.

It would be helpful to hear a strong statement on the NHS from the Minister, given the concerns that have been raised by constituents and by right hon. and hon. Members today. When does the Minister believe that the TTIP agreement is likely to be concluded? What representations have Ministers made to the European Union about ISDS, and what are the Government doing to engage better with businesses, charities, consumer groups and trade unions to improve public understanding of TTIP and counter the view that it is all being done behind the public’s back?

The prize of a successful agreement must be shared among all—businesses, employees and consumers—and not just large corporate interests. Labour will continue to push for transparency so that the benefits of this major deal are clear to all. As hon. Members have mentioned, there are concerns about the impact of TTIP on working people and public services in the UK. Our major concern is that the trade agreement has the potential to dilute workers’ rights, and given the Government’s record on that—not least the Trade Union Bill in the other place—those concerns are understandable. What assurances can the Minister give about labour and workers’ rights, and will she assure the House that the agreement will not be used to block future attempts to bring a health service back towards public ownership?

Time is limited, so in conclusion we believe it right that this important issue be debated in Parliament, and we agree that the proposals deserve proper scrutiny at UK and EU level. Labour supports trade agreements that can bring significant benefits through boosting trade and growth, securing and creating jobs, and bringing down costs and extending choice for consumers. However, we want to hear the Government’s response to the legitimate concerns that have been raised in the House today about TTIP.