Trade Deals and Fair Trade

Navendu Mishra Excerpts

Wednesday 11th March 2020 Westminster Hall

[Navendu Mishra (Stockport) (Lab)]

This is my first full contribution to a Westminster Hall debate, and I look forward to making more contributions. It is a pleasure to serve under your chairmanship, Mr Stringer, and I congratulate my hon. Friend the Member for Swansea West (Geraint Davies) on securing the debate, which addresses an important issue as Britain prepares for life outside the EU.

Stockport is a Fairtrade town, and I am a long-standing supporter of fair trade. My local Stockport fair trade group is active throughout the year, to raise awareness about exploitation of some of the lowest-paid people in the world. In December 2019, the Fairtrade Foundation recognised Stockport fair trade group as the Fairtrade community of the month. I pay tribute to Sheila Townsend and Robert Twigg, who have led my local group as volunteers. They put in lots of hours every month.

Since entering Parliament, I have joined the all-party group for Fairtrade to help to promote the vital work that the movement does for workers in developing and low-income countries, such as helping to tackle exploitative employment practices and ensuring that workers are paid a fair price for their labour and produce. Fairtrade also sets the social, economic and environmental standards for employers and employees by safeguarding workers’ rights and ensuring that they are paid a Fairtrade premium, protecting the environment and establishing a Fairtrade minimum price to benefit businesses.

The fair trade community plays an important role in helping to tackle the climate crisis through initiatives such as Fairtrade standards, which ensure that all farmers reduce carbon emissions. That is particularly important because, in addition to facing economic hardship, many farmers in developing countries are also on the frontline of the climate crisis and require increasing support to sustain their livelihoods. Fairtrade is an established brand, which has raised awareness of exploitative practices for almost 30 years and has consistently proven to be highly trusted by British consumers, with recent polls showing that around 89% of the public trust the Fairtrade mark.

Across the UK, fair trade is supported by a rich network of more than 1,000 Fairtrade schools, in addition to more than 650 Fairtrade towns, faith communities, universities and local groups. The UK has a proud track record of being a global leader in the Fairtrade movement, which spans more than 73 countries and almost 2 million workers across the globe. As Britain leaves the EU and puts in place free trade agreements, it is absolutely imperative for the citizens of developing and low-income countries that those negotiations ensure that the rights of workers in developing countries continue to have the same protections and remain in line with the sustainable development goals.

This is a crucial time for the Fairtrade movement in the UK, and the Government now have the opportunity to increase their support for developing and low-income countries. Life outside the EU brings with it many uncertainties, but also opportunities. The Government should pursue the gold standard in trade for development policy, to support the world’s poorest people to escape poverty. The Government must also consider policies that enable developing countries to move up the value chain and that guarantee their current market access in a post-Brexit Britain. Although it is undoubtedly important that environmental and labour chapters form part of the current trade deals, they can be effective only if they are enforceable. Furthermore, it is essential that the Government consider the overall impact of trade agreements on different sectors, including the extent to which they improve human rights and encourage sustainable behaviour.

The Government must also prioritise securing continuity arrangements before the end of the Brexit transition period at the start of 2021, so that we protect developing countries that rely on continued trade with the UK as part of the £9 billion Fairtrade industry. Although the Government have made encouraging noises about rolling over the preferences currently granted to developing and low-income countries by the EU, there are concerns that a number of countries have yet to secure arrangements with the UK, including Ghana, Ivory Coast, Kenya and Cameroon.

I call on the Government to consider carrying out an impact assessment to identify whether any trade deal or arrangement that is put in place will support a country’s development, in addition to protecting its national policy space. For example, lowering or eliminating tariffs on Brazilian sugar could have a detrimental impact on producers and exporters in African, Caribbean and Pacific countries. Such assessments need to look beyond economic impact and take into consideration what effect they will have on gender inequalities, labour rights and the environment.

In closing, I join the Fairtrade Foundation in calling for a revised parliamentary process for the agreement of new trade deals, which would give Parliament the opportunity to scrutinise the legislative process. At present, MPs have no official mandate process, no clarity on transparency in negotiations and no vote on any trade deals. That is less democratic scrutiny than Members of the European Parliament or US Senators have. It is vital that we consider the EU process as a baseline.