Australia and New Zealand Trade Deals

Debate between Lloyd Russell-Moyle and Tony Lloyd

Monday 14th November 2022 Commons Chamber

[Lloyd Russell-Moyle]

Exactly. I must wrap up— [Interruption.] Oh, I will continue, then. I thought you were giving me the eye, Madam Deputy Speaker.

That is exactly the problem. If we have higher climate change standards, workers’ rights or environmental standards, and we have free trade with another country that has lower standards, all we are doing is exporting British jobs, opening the door and saying to companies, “Don’t worry about our climate change rules, our carbon trading or the standards we expect you to meet. Go and set up your companies in that other country, and we will still import all the goods and services.” That is an unemployment note for British workers, and the Government are signing it constantly, with country after country, because they are obsessed with getting deals over the line rather than with the quality of those deals.

[Tony Lloyd]

The environment chapter ought to have been capable of actually changing the climate change debate in Australia, so it is disappointing that it has, quite frankly, no teeth whatever. What does that say to countries with which we might want to negotiate to stop deforestation, mining coal and so on?

[Lloyd Russell-Moyle]

Exactly. Australia is a deep friend of ours. I spent hours outside the Australian embassy for the last elections, canvassing and campaigning for the Australian Labour party, which is now in government—although I do not think that success is all down to me. I regularly meet our counterparts in the Australian Labour party, and I am proud to say that not only are they friends, but my senior researcher is from that party and now works for me. There are strong links between our systems and our people. If, with friends, we cannot negotiate a deal that has teeth on environment and climate, we have no hope whatever when dealing with much more difficult countries.

This is partly because of the Government’s refusal to have proper parliamentary scrutiny. First, there was no need for them to trigger CRaG, because the agreement cannot be put in place until we have passed the enacting legislation, which has not even come back for Third Reading. The Government forcing through CRaG without parliamentary scrutiny was just arrogance on the part of Ministers and the Government—there was no other reason for it. They show the same arrogance to the International Trade Committee, which, time and again, they refuse to come and speak to. I cannot ascertain whether it is the arrogance of Ministers or the arrogance of senior civil servants—maybe it is a bit of both—but it is clear that the Department for International Trade has shown in this process that it is not fit for purpose and needs a real overhaul.

I am quite in favour of some of the ideas that the right hon. Member for Camborne and Redruth (George Eustice) set out. We should have a Department of trade, of foreign negotiations, or probably of foreign affairs—a Foreign and Commonwealth Office, one might say—that co-ordinates expertise in other Departments, such as the former Department for International Development. I was in DFID negotiations on the environment and on the Rio process year in, year out, all through our European period, and our colleagues in DFID led many of the discussions on the oceans and biodiversity. It had real expertise in those negotiations. We should have been using it. We have failed in the environmental chapters of this agreement because we did not leverage the fantastic negotiators as well enough as we have in other Departments.

The right hon. Member for Camborne and Redruth was also right to say that proper scrutiny in this place can help the Government’s hand. I remember when I was a trade unionist, and we would want our members to lay out strong, hard lines to us so that when we went into negotiations with the employer, we were able to say, “Look, I am the reasonable one here—I am trying to get to an agreement—but my members are livid; they are angry; they are fuming. You need to give me a bit more so we can strike this deal and avoid any action.” It is the same process in trade deals, but the Government’s refusal to use us means that they have sold this deal short.

Finally, I will touch on procurement. In the Trade (Australia and New Zealand) Bill Committee, we heard that some of the wording on procurement puts British companies in a worse position than they are currently, and I will briefly explain why. There is already a global agreement on procurement under which British companies already have the right to bid for procurement contracts in Australia. Those agreements require that if a company has worked up a credible bid that is then rejected, the company can claim certain costs. This trade agreement excludes those particular words. Of course, a company will probably go to the Australian courts or to our courts, where they will be able to argue their case, but the insecurity of different wording in different agreements now means that although a French company would have a 100% cast-iron guarantee of protection, because it is part of the same global agreement on procurement, a British company would be insecure in that protection.

In some areas, the agreement not only falls short of what we want, but actively sells our country short. That is why the agreement is such a shame; that is why we should have gone further; and that is why, if we had had earlier debates, none of this mess from the bungling lot on the Government Benches would have happened.