UK-Japan Comprehensive Economic Partnership Agreement

Lloyd Russell-Moyle Excerpts

Wednesday 25th November 2020 Commons Chamber

[Elizabeth Truss]

I observe that the right hon. Gentleman did support many of those deals. I afraid that the same cannot be said for most of the members of his party, who did not support, for example, the Japan trade deal when it previously went through the House. We are in a completely different position. From 1 January next year, we will be operating our own independent trade policies, we will be setting our own tariffs and we will be operating our own trade agreements. That is a huge step forward for the UK as an independent trading nation. Next year, we will be talking about our accession to the comprehensive and progressive agreement for trans-Pacific partnership, but today we are here to talk about Japan.

The UK-Japan agreement is a British-shaped deal going further and faster than the EU deal in areas such as data and digital, services, advanced manufacturing and food and drink. The deal has been welcomed across the board, from the CBI to techUK and the National Farmers Union. It was even welcomed by the Labour party—although rather tepidly and although Labour did not actually vote for the original Japan deal.

The deal is estimated to add over £15 billion in trade to our already growing trading relationship with the third largest economy in the world. We expect it to be even more. We have asked Professor Tony Venables from Oxford University to lead a review of our future modelling to ensure that it accounts for our world-leading digital and data trade. The United States recent study of its deal with Mexico and Canada found that the biggest economic benefit of that deal came from the provisions on digital trade, and we are confident that this is the case for the agreement with Japan, which is why we want to better quantify the benefits of future free trade agreements.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

On the quantification of future benefits, of course the Secretary of State has given us the most advantageous figures that she has, which are about what trade would have been if we were out of the European deal. The reality is that for businesses on the ground very little will change between the end of this year and the beginning of January, and the reality is that the quantifiable benefit she talks about is actually a maintaining of the status quo, is it not?

[Elizabeth Truss]

The reality is that if we had not negotiated this deal, we would have reverted to trading on World Trade Organisation terms with Japan and businesses on both sides would have faced tariffs and barriers to trade. But we have gone further than just continuity with this deal, and I am about to tell the House exactly how that is the case. This deal is better and more valuable than the Japan-EU deal, which is otherwise known as the JEPA, because in simple terms the CEPA is deeper than the JEPA. It goes further and faster in areas of in vital importance to the United Kingdom economy.

On digital trade, we are protecting source code, enabling the free flow of data while agreeing a ban on data localisation, saving companies the cost of setting up servers in Japan. Our textile and confectionery manufacturers will benefit from more liberal rules of origin, making their goods more competitive by allowing up to £88 million of UK exports to benefit from reduced duties. Our creative industries will have their brands and innovations protected, as we go beyond the EU in tackling the online infringement of intellectual property rights. Our fantastic food and drink producers will benefit from increased protection for iconic goods, as around 70 geographical indications, 10 times as many as before, will be protected in Japan, subject to their domestic processes next year.

Our services industry will have more regulatory co-operation, safeguards on data storage and greater flexibility to move talent across the world.

This is clearly a more British-shaped deal, and it delivers more benefits to the UK than the previous deal. Some Opposition Members have asked for a precise economic assessment of this difference, but in our Command Paper we agreed to assess our deals, not the deals of other countries or trade blocs, and I am not going to waste the time of Department for International Trade economists by asking them to assess deals that are clearly inferior to the one that we have secured.

This is a deal that will benefit every part of the United Kingdom. It delivers for our farmers and businesses, and it delivers for Japanese investors such as Nissan, Toyota and Hitachi, supporting thousands of jobs across the United Kingdom.

--- Later in debate ---

[Elizabeth Truss]

I am delighted that my hon. Friend welcomes the putting of the Trade and Agriculture Commission into statute, which will be done through the Trade Bill. We need to make sure that farmers are engaged, businesses are engaged and our whole country is engaged in these trade agreements because we are doing them to benefit the United Kingdom—to make sure that every part of this country is helped to thrive. We are lowering barriers to trade and creating—

[Lloyd Russell-Moyle]

Will the Secretary of State give way?

[Elizabeth Truss]

I have already given way to the hon. Gentleman and we have a limited amount of time for this debate.

--- Later in debate ---

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I, too, sit on the International Trade Committee and our report outlined the positives in this deal. There were also many things we just could not quantify, because the Government have not given us the figures, or they do not want to do that analysis, so we just do not know how things will pan out in the future. This is the first run at this.

My first point is about the role of parliamentary scrutiny. This is very much the first run and we need to deepen and strengthen parliamentary scrutiny. We have the weakest parliamentary scrutiny of the major bodies that we now want to negotiate with. Japan and the Japanese Parliament will have longer debates, binding votes and a guaranteed vote to accept sections, the European Union will of course be able to have discussions through the negotiations and will vote section by section, and the US will be able to vote section by section on the deal and will be involved in setting up the framework of the negotiations.

[The Minister for Trade Policy (Greg Hands)]

indicated dissent.

[Lloyd Russell-Moyle]

The Minister shakes his head; I am happy to send him a constitutional 101 of all those countries, because the fact is that we have one of the least developed parliamentary scrutiny systems. Of course we do, because we have not done it for 40 years and other countries have developed since then, but we do need to develop, and it is no good the Minister shaking his head on these points.

The other thing I would say is that, although I welcome the Department giving the International Trade Committee a two-week head start on these documents, I have here in my hand just one volume of the documents, and three of the annexes never arrived in time and were only given to my office a few days before they were publicly released. It is all well and good, and I understand these are working documents, but that cannot be a continued pattern for how these things work; we need to be involved earlier, and we need to be involved throughout.

On the content of the deal, let’s be honest: many of the clauses we have heard celebrated today are non-binding or worse, or are being exaggerated. The workers’ rights sections are of course all totally non-binding; the climate change sections are non-binding and weak; the women and trade section—a new section—is all totally non-binding in the agreement. There is no section on consumer standards, and Which? says to me that it has not been involved much at all in these discussions. It believes there need to be whole sections on consumer standards, and the agreement fails to do that.

Also, in many areas there are standstill clauses that embed the current system we have in Britain and do not allow change. For example, there is a standstill clause on the Post Office; that means if a future Government wanted to change their mind on the disastrous privatisation by this Government of the Post Office that put money into their crony friends who bought the shares which then zoomed up—[Interruption.] It is true, and we would not be able to reverse that without renegotiating this deal. That is an inhibition of sovereignty, and that is a problem.

This deal is also reliant on the EU deal. If we do not get an EU deal, there are some clauses in this deal that will not be enacted fully; there is also a danger that the deal might be a green light for offshoring many jobs out of Britain, as there will be an EU-Japan deal and a UK-Japan deal. But if there is no UK-EU deal, businesses will place themselves in Japan because they will access both markets from there. If we do not get that EU deal, this deal could be an offshoring charter.

The TRQs are a scraps-on-the-table deal, under which the EU of course gets first dibs and if there are crumbs left—we hope there will be crumbs left, for a few more years anyway, until we sign the CPTPP—then we can get those crumbs. We cannot get the crumbs beforehand of course; and in terms of developing innovation, businesses cannot rely on them because they do not know what amount of crumbs will be left over. We have heard that Government analysis of the EU-Japan deal conducted when it was signed shows that the deal will have a worse economic outcome rather than a better one: there will be £1.7 billion less in exports with this deal than under the EU deal, and £1.6 billion less in GDP with this deal compared with how much the EU-Japan deal was benefiting us. Those are the Government’s figures, not my figures.

There are also some very dangerous elements on data protection, including voluntary agreements rather than binding agreements, not least in areas such as data protection and the NHS. That should greatly worry many people.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Thursday 19th November 2020 Commons Chamber

[Greg Hands]

My hon. Friend is absolutely right. There is the potential inclusion of around 70 geographic indicators, 12 of which are from Wales—she is quite right—including Welsh beef, Welsh lamb, Welsh wine, cider, perry, Caerphilly cheese, Carmarthen ham and others. One of our key objectives is to be able to sell Welsh lamb into the United States—British lamb overall is not currently allowed into the United States—but we will be fighting to get an improvement in Welsh lamb exports around the globe.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

What recent progress she has made in securing the rollover of EU trade agreements with non-EU countries.

[The Secretary of State for International Trade (Elizabeth Truss)]

We have made good progress. In under two years, we have agreed trade deals with 52 countries, covering £146 billion of trade, accounting for 74% of the value of total trade with non-EU countries that we set out to secure agreements with.

[Lloyd Russell-Moyle]

We learn from The Telegraph that the Minister has rejected the Ghana deal because it was a “a substantial departure” from the EU deal, but she says that the Japan deal goes far beyond the EU deal. What is it? Are the Government exercising new British sovereignty to produce far-reaching new deals, or are they just rolling over and accepting the same deals that we already had?

[Elizabeth Truss]

The answer to the hon. Gentleman is that we are seeking to roll over the Ghana deal, as we are other deals, but with Japan, we have gone through the process of producing a scoping assessments. [Interruption.] No, we were very clear that Japan was a deal that would go further and faster than the EU deal, alongside the new deals that we are negotiating with the US, Australia and New Zealand. There is a deal on the table for Ghana to agree to. It has already agreed to the same deal with the EU. There should be no block on Ghana being able to get tariff-free, quota-free access to the UK, and we are very happy to talk to its representatives at any time of the day or night.

Gender Recognition Act Consultation

Lloyd Russell-Moyle Excerpts

Thursday 24th September 2020 Commons Chamber

[Elizabeth Truss]

I certainly agree that healthcare is the big issue of concern to transgender people, which is why we are focusing on improving the service received from the national health service. Of course, it is the Health and Social Care Secretary who is in overall charge of that, and I would be very happy to facilitate further meetings with Dr Michael Brady, our LGBT health adviser, and, of course, the Department of Health and Social Care, to make sure that we get this right and reduce those waiting lists.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I welcome the fact that the Minister has tried to take some of the heat out of this discussion and that she has at least come forward with some conclusions, because the wait has caused many of the problems. However, I fail to understand how her administrative changes will comply with the World Health Organisation’s requirement that by 2020 we remove gender dysphoria as a medical classification, seeing as the GRA is based on that medical classification. How will the Minister’s administrative changes fulfil our international obligations to remove that classification?

[Elizabeth Truss]

The administrative changes will make the process considerably better. As I have said, we are also putting additional resources into transgender services. The clinical diagnosis is a matter for clinicians, and the Health and Social Care Secretary is working with them on this issue. I think there needs to be a medical element to the process, so that there are proper checks and balances in the system, but the specific diagnosis is a matter for clinicians.

Arms Export Licences (Saudi Arabia)

Lloyd Russell-Moyle Excerpts

Thursday 26th September 2019 Commons Chamber

[Mr Speaker]

Order. I would like to accommodate remaining colleagues, but colleagues who ask long questions do so knowing that they are stopping other colleagues from contributing. I am sure that they are not going to do that, because they are comrades and they will behave in an egalitarian manner. I feel absolutely certain of that, starting of course with Lloyd Russell-Moyle.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Last year, the Department issued 30 million rounds of Warsaw Pact weapons to Saudi Arabia incorrectly. Then the Court of Appeal judgment and now this. Is it not time for the joint unit to be turned into an independent unit like any other regulator and for the Committees on Arms Export Controls to be turned into a proper Committee of the House?

[Elizabeth Truss]

As I have said, errors were made and that is why we have asked the director general at the Department for Work and Pensions to conduct a full review of how this process is being operated.

Export Licences: High Court Judgment

Lloyd Russell-Moyle Excerpts

Thursday 20th June 2019 Commons Chamber

[Dr Fox]

My hon. Friend makes an important point. The joint incidents assessment team was set up by the Saudi Government in February 2016 to help with that. It examines military activity in civilian areas to minimise possible civilian casualties and assesses the coalition’s rules of engagement. We have had input into that to ensure that the coalition is operating in a way that we would find acceptable.

Of course, we simply would not take that as being the end of the matter when it comes to information. As I have said, we look at a range of information from foreign Government sources, from our own Government sources, both those in the public domain and those that are restricted, and from NGOs and the media. It is in taking that complete picture that we are able to assess what we believe the risks to be, but we are always looking to see whether further sources of information may help to improve our decision making, alongside the decision making of our allies.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I have just returned from the Court of Appeal, where I listened to the judgment. The judges, in paragraph 141, say there was a decision in 2016 no longer to apply criterion 2 on the checking of IHL. This resulted in 100,000 deaths. Who made that decision?

My Committees, the Committees on Arms Export Controls, have manifestly failed to hold the Government to account. We now need urgent reform of the Committees’ powers, including creating a standalone Committee. Will the Minister confirm that he will not allow the use of any existing open licences to coalition partners during this review?

Finally, after the arms scandals of the 1980s and ’90s we had the Scott inquiry, and we now need an independent judge-led or parliamentary inquiry not just on this particular issue but on the failings of our arms control system—taking it away from the political interference and political control of Ministers to a truly independent and world-class system, which we do not have at the moment.

[Dr Fox]

We are ultimately accountable in the courts, as we have been, and the divisional court was clear in its praise for how Government rigour was applied to this process. We are not in breach of the consolidated criteria, nor has the Court of Appeal said that. What the Court of Appeal said is that the process by which decisions are reached needs to change, and needs to take into account the possibility of international humanitarian law having been breached. To compare that, for example, to the incidents in the Scott report is simply not credible.

Of course, we will review all licences in light of today’s judgment, as we are required to do. That will include open licences.

European Union (Withdrawal) Act

Lloyd Russell-Moyle Excerpts

Monday 14th January 2019 Commons Chamber

[Mr Hammond]

I have been making effectively the same point myself for about the last year. We concluded that the EEA model would not work for Britain’s most important sector, financial services. The deal that the Prime Minister has negotiated has within it good and strong provisions for financial services and will be a much better result for the financial services industry than the EEA model would be.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

rose—

[Mr Hammond]

I will give way briefly to the hon. Gentleman and then I must make some progress.

[Lloyd Russell-Moyle]

Will the Chancellor explain to us, then, how this deal gives our country more say in how Europe defines its financial services, which we will want to continue to trade with, compared with what we currently have as members?

[Mr Hammond]

Without wishing to digress too far, the simple point is this. Under an EEA model, the whole of the UK financial services sector and all its sub-sectors would be subject to European Union regulation in perpetuity, without any ability to opt out. Under the model that we have agreed with the European Union under this deal, we will be able to seek equivalence where it is right for us to do so and not to seek equivalence where it is clearly not in our interest to do so, for example in the insurance sector.

A group of my hon. Friends—my hon. Friends the Members for North West Leicestershire (Andrew Bridgen), for Bournemouth West (Conor Burns), for North East Somerset (Mr Rees-Mogg) and for Fareham (Suella Braverman)—made the case for what I will call an ideological Brexit: leaving with no deal and without any fear of the consequences. I profoundly disagree with them, but I respect their arguments. They are sincerely made and genuinely held.

A further group of my hon. and right hon. Friends—my right hon. Friends the Members for Chingford and Woodford Green (Mr Duncan Smith) and for Uxbridge and South Ruislip (Boris Johnson) and my hon. Friends the Members for York Outer (Julian Sturdy), for South Dorset (Richard Drax) and for Amber Valley (Nigel Mills)—made the case for getting a better deal and, implicitly, if that was not achievable, leaving without a deal. I have to say that getting a better deal is not a realistic outcome at this stage in the process. I will return to that theme in just a moment.

Finally, the argument was made by my hon. Friends the Members for Orpington (Joseph Johnson), for Bracknell (Dr Lee) and for Totnes (Dr Wollaston) and by the hon. Members for Ilford North (Wes Streeting), for Walthamstow (Stella Creasy), for Hammersmith (Andy Slaughter), for Stroud (Dr Drew) and for Westminster North (Ms Buck) for a second referendum. Most of those Members were clear that, in arguing for a second referendum, what they are hoping to achieve is a reversal of the Brexit decision.

With just 73 days left before we leave the European Union, we have to recognise the basic architecture of the process we are engaged in, the constraints within which we are operating and the nature of the decision we are faced with. We in this Parliament have essentially three routes open to us over the next few weeks: a negotiated deal where both the divorce arrangements and the future relationship, as well as how we manage the process in an orderly way, are agreed with the EU, with an implementation period guaranteeing a smooth transition; an exit with no deal and no transition, where key elements of the divorce such as the financial settlement will ultimately be determined by the courts, where protections for citizens will be unilateral, with an abrupt end to single market access and other privileges of membership for both businesses and citizens, and where there will be no agreed framework for managing the process of resolving disputes, with all the attendant risks of disruption that that will bring; or the third option, a revocation of the article 50 notice and no Brexit at all.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Thursday 13th September 2018 Commons Chamber

[Victoria Atkins]

Very much so. I thank my hon. Friend for the work that she does in the national health service looking after ill children. I am admiring her badge from afar. It looks very colourful. I hope that it will draw exactly the sort of reaction intended—namely, encouraging people who perhaps need extra reassurance that they are welcome and they are safe in the NHS to talk about their needs.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Does the Minister agree that we need to do more to help our LGBT friends around the world, particularly those who are seeking asylum? Will she therefore condemn the Home Office’s approach at the moment? It is deporting one of my constituents back to Venezuela after he has applied for asylum and married someone here and lived in Britain for three years. The Home Office still says that Venezuela is a safe place for an LGBT person to live. It even recommends that his husband moves back with him.

[Victoria Atkins]

Of course I am concerned to hear about LGBT people in Venezuela being treated as despicably as the hon. Gentleman has described. If I may, I will take the opportunity to invite him to write to the relevant Minister. I would certainly hope that we can look into the matter in more detail.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Thursday 22nd February 2018 Commons Chamber

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

With no prosecutions leading to convictions since 2011, with no register of arms brokers—as the USA, Canada, Germany and France have—and with the Government selling weapons and spy equipment to eight human rights abusers, how can the Government continue to claim that we have the strongest arms export regime in the world, or are they just not implementing the rules?

[Mr Speaker]

I do not know whether colleagues are aware of it, but they rather ruin their questions when they try to pack too much in. Topical questions are supposed to be brief. I understand the temptation—I used to feel it myself—but it ends up being a worse and a lesser question than something shorter and more pithy. It is such an obvious point that the hon. Gentleman must be extraordinarily clever not to be able to grasp it.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Thursday 23rd November 2017 Commons Chamber

[Dr Fox]

Yes. The Government are committed to ensuring as smooth as possible an exit from the EU, including for all our business sectors, which obviously covers agriculture. Beyond that, the Department is particularly focused on finding new markets for our agricultural sector. There is substantial growth in demand for agricultural products in countries such as China and India. Given that the UK’s are the finest in the world, we should be at the forefront of those export markets.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

4. What assessment he has made of the potential merits of revising the basis of economic partnership agreements better to incorporate the aims of the UN sustainable development goals.

[The Minister for Trade Policy (Greg Hands)]

We are guided by a desire to seek continuity first of all in our trading relationships with developing countries as we leave the European Union, and that includes economic partnership agreements. Our EPA partner countries have already welcomed that commitment. The UK is of course fully committed to promoting and delivering the sustainable development goals and is the first and only G7 country to spend 0.7% of national income on overseas development assistance.

[Lloyd Russell-Moyle]

Given that countries such as Nigeria and Uganda have refused to sign the economic partnership agreements because they do not believe that they are beneficial and in their long-term interest, how does the Secretary of State intend to address those issues, and is he considering GSP—the generalised scheme of preferences—or GSP plus?

[Greg Hands]

We have already announced that we will be transitioning the full preference scheme of the European Union, including all the categories; that includes GSP and GSP plus. I am surprised if the hon. Gentleman is opposed to our transitioning the EPAs because, as you well know, Mr Speaker, UK imports worth around £290 million from the developing world were imported last year using the EPAs, and they would otherwise have had to pay a higher tariff to enter the UK.