Brexit: Trade in Food

Neil Parish Excerpts

Thursday 14th June 2018 Westminster Hall

[Neil Parish (Tiverton and Honiton) (Con)]

I beg to move,

That this House has considered the Third Report of the Environment, Food and Rural Affairs Committee, Brexit: Trade in Food, HC 348, and the Government response, HC 1021.

It is a pleasure to serve under your chairmanship, Mr Gray. As you have said, let us hope we see a Minister in the very near future.

Before we begin, it is one year since the disaster of Grenfell Tower, and I want to remember those whose lives were devastated when they lost their loved ones and their homes. We should all reflect on that.

I welcome the Minister’s announcement in the Chamber last night that the Department for Environment, Food and Rural Affairs will bring forward two Bills on sentencing and animal sentience, as recommended by our Committee.

The British public voted to leave the European Union in 2016 so that we could take back control of our money, laws and regulations. Farming is a prime example of that. For 40 years, all our policies have come from Brussels, but now we will be able to decide a new farming policy for ourselves. I chaired the agriculture committee of the European Parliament, and in trying to deal with 27 countries, from Finland in the north to Spain in the south, it can sometimes be difficult to come up with a policy that suits everyone. We have a bright future, provided we embrace what will be good not only for the environment, but for farming and food production in this country.

We need to know exactly what impact Brexit will have on our agricultural sector. That is why the Environment, Food and Rural Affairs Committee held an inquiry on Brexit and food, which we published on 18 February. My Committee spoke to many people—farmers from all sectors, academics and other food and farming professionals—and they all agreed that trade is crucial to the farming industry. As a rural MP and a former dairy farmer, I know more than most how important that trade is. [Interruption.] It is good to see the Minister arriving. I will allow him to take his seat. It is all right, Minister. It is usually me who is late, not him.

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

I must give my apologies for missing the start of the debate. The reason is that I thought a debate of such importance should be in the main Chamber. I was hovering outside the wrong Chamber, but I am here now. I apologise for missing the first few minutes.

[Neil Parish]

That is a very good apology. The Minister elevated our debate to the Chamber when we are actually in Westminster Hall. I appreciate his explanation and thank him for arriving. I am sure his officials will fill him in on the start of my speech.

We have a great farming industry and high-quality products, and it is important that that is supported over the coming years. Continued trade with the EU is essential to ensuring our farming sector thrives after Brexit. We must have an outward-looking, global Britain. That will be key to seeing our agricultural sector flourish, but we must also maintain a good share of our home market and home production. I feel strongly about that. We buy 70% of our food and drink imports from the EU, and we sell 60% of our food and drink exports back to the EU. We can see that trade to the EU is extremely important, and that that means that a farming-focused free trade agreement with the EU is essential. We have always sought reassurance from Ministers that as the deals are done, DEFRA, DEFRA Ministers and the Secretary of State will be at the forefront.

If we do not reach a free trade agreement with the EU, our agricultural goods might well be subject to tariffs once we have left. EU tariffs are high. Tariffs on dairy products are over 30%, and they can be as high as 80% on frozen beef. Reverting to World Trade Organisation rules would be even worse, as tariffs there are far higher for agricultural goods than for many other products. In addition, all countries must be treated equally under WTO rules. For example, Irish beef would need to have the same tariff as Brazilian beef, which could be devastating not only for us, but for Ireland. That is why our report recommends that the Government undertake work as a matter of urgency to evaluate the impact of any deal that they negotiate.

We are calling on the Government to publish a sector-by-sector analysis on the impact of Brexit so that we can better understand how tariffs will affect our farmers. For instance, in the dairy sector we import a similar amount to what we export. We are often importing yoghurts and cheeses, and we have the ability to produce more of those ourselves. We could therefore reduce the need for imports, as we could in other sectors, such as the pig and lamb sectors.

We export some 40% of our lamb, and import some 35%. On the face of it, we could say, “That’s okay. Stop the exports and the imports and we can eat all our own lamb,” but in reality we are exporting fifth-quarter joints and importing legs of lamb from New Zealand. We can see that the trade in lamb backwards and forwards, and with France in particular, is incredibly important.

The Secretary of State assured us on the sector-by-sector analysis yesterday in Committee, and I seek your assurance, Minister, that that work is under way and will be published. In my view, it should have been done already. We have seen, rightly in many respects, many more extra staff being taken on in DEFRA, but I have to say bluntly to you, Minister—

[James Gray (in the Chair)]

Order. It is not me that the hon. Gentleman is addressing, but the Minister. You are speaking to “him”.

[Neil Parish]

I beg your pardon, Mr Gray. I say to the Minister, what is happening with the sector-by-sector analysis? When can we expect the analyses to be published? In all the evidence we took for our report, we found that the trading arrangements affect different sectors in very different ways. We need to know exactly what those trading arrangements will be to ensure that we maintain our food production.

A farming-focused free trade agreement is not the only way that the Government can support farmers. I am sure that you, Minister—

[James Gray (in the Chair)]

Order. I do not mean to be stiff and pompous, but the reason for the convention is that referring to all other Members in the Chamber in the third person removes the directness from the debate. It is not “you”, but “he” or “the Minister”.

[Neil Parish]

So I can say “Minister”?

[James Gray (in the Chair)]

It is perfectly reasonable to say, “As the Minister will know,” or, “As I hope the Minister will say in replying to the debate.” It is not in order to say, “As you know, Minister,” or, “As I hope you will say in your reply.” You may not use the word “you” apart from when you are referring to me, and I have no part in the debate beyond chairing it.

[Neil Parish]

Thank you, Mr Gray, for that clarification.

Farmers offer vital support to the rural economy, with the food and farming industry generating more than £110 billion a year, and employing one person in eight in the country. Food and drink, much of it produced in this country, is a vital industry, and the way our food is produced is so important for our natural environment, as we can see in many parts of the country.

The Secretary of State was in Exmoor and Devon last week, where the farming of sheep and cattle produces that lovely landscape with many natural features. Within those natural features is a managed farm landscape, which is why the profitability of food and agricultural production is so necessary. We can look at environmental payments, but they will not be able to replace the profitability of agriculture and food production entirely. The two need to go hand in glove, which we are really keen to see happen.

[Kerry McCarthy (Bristol East) (Lab)]

As a member of the EFRA Committee, I apologise for not being able to stay for the whole debate; I am on the Ivory Bill Committee, which sits again at 2 pm.

I entirely support what the Chair of the Select Committee says about the need for much greater clarity and strategic direction from the Department, but it is also important that we hear a lot more from the Department for International Trade and the Department for Exiting the European Union. I asked about rules of origin and their impact on the food sector this morning and got a very disappointing response. Does he agree that all three Departments need to send a clear message to farmers and food producers about what the future holds for them?

[Neil Parish]

I thank the hon. Lady for her intervention and for the excellent work that she does on the Select Committee. She makes a very good point about geographical indicators. Interestingly enough, when the Secretary of State visited Exmoor and Devon last week, there was talk of giving protected geographical indication status to Exmoor, where we can sell lamb from both sides of the border—from Somerset and from Devon.

All those things are intricately linked to the need for a future food policy, so that people know where their food has come from and so that we can market it better and, hopefully, get a better price for the producer. That money can then be linked back to the landscape. I cannot emphasise enough that the landscape and the food production, especially in certain parts of the country such as big livestock areas and more marginal land, are intricately mixed.

We must also ensure that we have high-quality vegetable production. Where we can produce organic vegetables, we should; where we can produce vegetables with fewer pesticides and fungicides, we should. We must be very positive about a food policy. I am worried that in the recent Command Paper on health and harmony, the only real talk of food production was very much at the high end. The high end of food production is great—from local restaurants, to tourists buying food and to everything linked to the countryside. However, we also need affordable food that the whole population can eat.

At least 90% of our food business goes through our major retailers, and people often buy on price. As we move forward, we have to be assured that our vegetable production not only is of good quality, with high welfare standards, but comes at a price that the average consumer can afford to—and will—pay. Whatever we buy in life, it is a choice, so not only do we want to have good, high standards, but it needs to be affordable.

We have a managed landscape with many natural features, as I said. The onus is on the Government to engage more closely with the industry to provide the food and farming sector with greater clarity. Tit-for-tat tariffs will do more harm than good—just look at the situation in America. The Americans have started putting tariffs on steel and aluminium. That might well help the steel and aluminium industries in America, but it will drive costs up for the industries in America that need to use those products. Food, a commodity and a manufactured product, does not need tariffs on it. In the end, that will only create more costs and could well lead to higher prices to consumers. I do not believe that those tariffs will ever come back to the producer.

It is imperative that we have a farming-focused free trade agreement with Europe. I repeat what has been said day in and day out in this House: two years since the referendum, all sectors—not just the farming sector— need some clarity on the direction in which we are going. People in all lines of business need to make investments, but those in the beef and dairy sectors in particular need to have a long-term view of where the world is going in order to make investments.

[John Grogan (Keighley) (Lab)]

On that point, it is worth mentioning Northern Ireland, which the Select Committee considered. There is a particular need for as much certainty as we can give regarding Northern Ireland, because I think 45% of all sheep produced there go south of the border. We made a specific recommendation on Northern Ireland, as any change in trade arrangements could be more disruptive there than anywhere else in the kingdom.

[Neil Parish]

I thank the hon. Gentleman for that intervention. He is also a very good member of the Committee. He raises a good point regarding the border between Northern Ireland and the Republic of Ireland. The lambs go south and the pigs go north to be processed—and the milk goes round and round in circles, as far as I am aware. A lot of processing goes on across the border. If anywhere in the whole of the United Kingdom is essential, it is that border, for obvious political reasons—reasons of peace and many others. We must get that border right. I am sure it is not lost on the Minister that we need to do more regarding that border.

The various systems we are putting in place are interesting. I am quite happy for the Government to look at having a new system. It does not have to be the single market and the customs union, but we have to ensure that the new system we devise is recognised by the EU, because the Republic of Ireland, obviously, is an EU member state. Those are the great challenges, and I am sure that that is not lost on the Government.

If tariffs were imposed, I believe that consumers would suffer. Tariffs would also make it more difficult for our farmers who produce food to our world-renowned high standards to compete and properly export, inhibiting the building of “Brand Britain”, which is going to be even more important in the future than it has in the past. We will be able strongly to market not only regional produce, but the British product. We have only to go back to horsegate, when horsemeat was being put into burgers because it was a lot cheaper, and look at the food cycle, the provenance of food and the food processing industry, to find that food travels all across Europe. Provenance, branding and the confidence that the world—and those in our own country—has in our products are going to be more important than ever.

As I said, the Government have struggled with their post-Brexit policies. I am hoping that we are seeing some clarity; we have had some interesting votes this week. I believe that will bring forward a clarity, so that we can move forward; the industry needs to have confidence to invest and to address the opportunities and challenges that Brexit will offer. We must go into this with our eyes open.

That is not all. We have dealt with the cross-border situation in Northern Ireland; investing in an IT system to support a more efficient export certification process could minimise delays, and we need to make sure, whether through the Agriculture and Horticulture Development Board, the Food Standards Agency or our veterinary services, that we have the necessary personnel to be able to get the licences up and running quickly, especially if we are going to have a change in the system as we cross the border. It is very important that we move quickly where we are talking about perishable products, which include not only agricultural products but fish.

It is possible to design a bespoke support system that encourages greater productivity and further strengthens our animal welfare standards, which are already among the highest in world. To do that, we need clarification from our Government. It is good to have very high welfare and environmental standards, but the quid pro quo is that the standards of imported products should maintain our high standards, through the free trade arrangement with Europe—which should not be difficult because our standards are currently the same—and free trade arrangements with other countries across the world. Otherwise we will put our producers and farmers out of business.

Our food and drink sector needs a reinforced trade deal. “Brand Britain” must become a national advertisement to the world, showing what an outward-looking, open nation we are. The new farming policy we call for in the Select Committee report is about creating a “Brand Britain” that delivers high-quality food that is affordable for all. British agriculture should be front and centre of all our negotiations, not left to feed from the crumbs under the table.

--- Later in debate ---

[Dr David Drew (Stroud) (Lab/Co-op)]

I am delighted to serve under your chairmanship, Mr Gray. I am very pleased that, yet again, we are in this place debating food and farming. I am even more pleased that the Minister is here, because otherwise I would not have been able to ask him the questions I want to ask him. I am sure he will try to answer them.

The Chair of the Select Committee, the hon. Member for Tiverton and Honiton (Neil Parish), raised a number of issues that I wish to take up. I pay tribute to my hon. Friend the Member for Bristol East (Kerry McCarthy), who has had to leave, and my hon. Friend the Member for Keighley (John Grogan). They are very strong members of the Select Committee, as is my hon. Friend the Member for Ipswich (Sandy Martin), who has not had a chance to say anything yet, but if he wishes to intervene and put something on the record, I am more than happy to let him do so.

I am a former member of the Select Committee, and I am grateful that it is in good hands. I was lucky to be chaired by David Curry and Michael Jack, and the hon. Member for Tiverton and Honiton has carried on in the same good order. He has shown how the Committee is making a difference. The quality of its work is in the preciseness of its arguments. Why write a long report when a short one can do the job?

The hon. Gentleman’s speech ranged far and wide, so I make no apology that I will refer to the later report, which may also be discussed in this place in due course. It is, however, contingent on the report before us. I will refer to a number of things in the Government’s Command Paper, and how the Select Committee has investigated them.

Let me start with where we are with this whole exercise. Although farming is a relatively small part of the British jigsaw, it is a very important part of European functionality, because half the EU budget is spent on farming. My first question to the Minister—I have asked this previously—is, when will we get into serious negotiations about farming, and particularly food? Although farming is not a huge constituent part of the British economy, food and food exports are. As the hon. Member for Tiverton and Honiton said, that sector is responsible for about £110 billion-worth of business, and employs one in eight people. It is an important part of the UK economy, so we have got to get this right whatever the post-Brexit situation is.

I echo the hon. Gentleman’s request to see the sectorial reports. Like lots of hon. Members, I went to look at the original sectorial reports. I have to say that a good A-level student would probably feel reasonably pleased with them, but I do not think their quality was much better than that. We need definitive evidence, because these sectors are very different and will require different negotiations. It would be good to know when some of those negotiations will take place, and that there will be ministerial—not just civil service—input, because they will be complicated.

I am not sure—I know the Minister is sure and can allay my fears—when we will start talking to the WTO. We are a signatory to the WTO, but through our membership of the EU. At what stage will we start to talk to the WTO about how we will exercise our independence? The one thing that I know from all my time on the Select Committee, and since, is that when we start to get into the different boxes—amber, red, blue and green—and the aggregate measure of support, we get into enormous complexity, which will not be sorted out in a few weeks. That will take a long time.

[Neil Parish]

I thank the hon. Gentleman for giving way, and certainly for his comments about the Select Committee. When it comes to tariffs and the European relationship with agriculture, the problem with the WTO is that if we were under WTO rules rather than in a free trade arrangement with Europe, French and Irish beef would have to have the same tariff as Brazilian beef. Imagine having to compete with Brazilian and Argentinian beef—we produce very high-quality beef in this country, but it would be difficult to produce it at the same prices as Brazil and Argentina.

[Dr Drew]

Again, I am not an expert on the farming industry per se, as the hon. Gentleman is, but having talked to those who know about it, I know that the lamb market—Welsh lamb, in particular—is very vulnerable. I made the point that New Zealand would no doubt be keen to expand its exports to this country, but I was proven wrong in the sense that New Zealand can already export 200,000 tonnes of lamb. The big threat is actually from Australia, which has a more limited quota arrangement and will no doubt wish to have a free trade agreement—any agreement—so that it can export more to us. Again, that is a question I ask. I genuinely do not know where outside the EU—where 60% of our food exports go to—we can form all these free trade agreements.

--- Later in debate ---

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

It is a pleasure to serve under your chairmanship, Mr Gray. I apologise again for being late to the debate, for the reasons I described earlier.

I thank the Chair of the Committee, my hon. Friend the Member for Tiverton and Honiton (Neil Parish), for introducing the debate. This is an incredibly important issue that matters to all sectors of the economy and to food and farming. I want to set out, for the record, the Government’s approach to our future trading relationship with the European Union, because that is important. Much of the report looked at the consequences of a possible no-deal Brexit, for reasons I can understand and that I will deal with, but it is important to recognise the UK’s position.

We are seeking a bold and comprehensive free trade agreement with the European Union. We want tariff-free access for all sectors, which would be reciprocated, and we seek a frictionless border. We believe that the growth of technology in the last 20 to 30 years means that we do not have to have as much friction at the border as some would claim. Indeed, we have looked the procedures used prior to 1993, when the single market was introduced—an important point that many people forget. We had frictionless borders not when we joined the European Union, but after 1993. Technology has assisted a lot with the frictionless borders that we enjoy today in the European Union—that is not just about the regulations of the single market.

[Neil Parish]

I agree with the Minister entirely; it would be great if we could get the frictionless trade deal and frictionless borders. Is he convinced that when we have the technology—I think we have it—it will work? I must be quite blunt about the Rural Payments Agency, Natural England and others. I know he will defend them to the hilt, but I said yesterday that they are not fit for purpose. If they were in the private sector, they probably would be dead by now, because they do not handle things properly—every time, we get more and more problems. The key thing is whether we can get this to work and whether we can get Europe to agree to it. Ultimately, let us get those lorries across the border and back again. We all want that. That is the reassurance we are all looking for.

[George Eustice]

I agree with my hon. Friend. I was going to come on to why it is in everyone’s interest to do the type of agreement that we are offering. We do not believe that we have to have total uniformity of regulations on these various issues to have a frictionless border. It is quite possible to recognise what in trade jargon is called equivalence.

Our offer to the European Union is that bold and comprehensive free trade agreement, tariff-free trade and frictionless borders, where the European Union and the UK can both adopt a risk-based approach to any border checks they might put in place, assisted by technology. We want to give each other confidence by agreeing a set of arrangements through which we will recognise the equivalency of our various regulations. That can be done. Our starting point is not as a third country trying to establish a trade deal with the European Union, but as a member state that is stepping back from being a European Union member. On day one, we start with absolute uniformity of our regulations. That is unique in the world, which is why it is absolutely possible to do the type of agreement on borders that we seek.

The other point to recognise is that the European Union has a trade surplus with the UK in food and drink alone of £18 billion each year. It may feign indifference to its trade with the UK for the purpose of the negotiations that are going on, but that matters. Access to the UK market matters to Irish beef farmers, poultry producers in the Netherlands, pork producers in Denmark, horticultural producers in the Netherlands and cheese producers in France. They need access to the UK market. Therefore, it is in their interest to take up what we are offering, which is a comprehensive free trade agreement with frictionless borders.

[George Eustice]

I noted the hon. Gentleman’s points from his speech and will come back to them.

First, I want to address one of the questions posed by the report: what happens in a no-deal scenario? The reality is that there are quite a number of options open to an independent country in control of its own trade policy. It does not have to be most favoured nation rules, and that is the end of the story. One option for an independent country when setting its own trade policy would be to have unilateral tariff rate suspensions—it would keep the bound tariffs where they were, but it could suspend them on certain product lines if it wanted to. It also could have what is called an applied tariff for some product lines that was lower than the bound tariff set in the WTO schedule.

An independent country could also establish unilaterally something called autonomous tariff rate quotas—ATQs. They enable the country to create a quota in certain product lines to allow that tariff-free trade.

My hon. Friend the Member for Tiverton and Honiton pointed out that one of the issues is that those have to be what is described in trade jargon as erga omnes—open to all—around the world and not just to the European Union, but we could, of course, abide by our own sanitary and phytosanitary regulations. In a short period where such measures might prevail, our existing trading partners would find it easier to satisfy those and potential new ones. There are many tools in the box that we would have as an independent country controlling our own trade policy.

My hon. Friend also asked about a sector-by-sector analysis. He will be aware that in December last year, the Department for Exiting the European Union published analyses for each sector. The hon. Member for Stroud (Dr Drew) read that and was very complimentary about the detail in it. There was a specific report in there on the food and drink sector—my hon. Friend will be aware that, in addition to that, the Government have done a great deal of more detailed ongoing analysis and modelling—but for reasons that we have been clear about, and that I think Parliament understands, there are certain things in a negotiation that we should not put out there. Not everything that we have done has been published, but we have published that report sector by sector.

[Neil Parish]

I thank the Minister for giving way again. This is important and we have plenty of time, hence I will take up a bit more. When you say “sector by sector”, are you talking about the food and drink—

[James Gray (in the Chair)]

Order. I am not talking about anything—the Minister is.

[Neil Parish]

When the Minister says “sector by sector”, is he referring to the food and drink sector? Our report naturally referred to the individual sectors of agriculture—dairy, sheep, beef and so on. This issue is linked not only to trade, but to the support policies that will be needed. An extensive beef and sheep farmer perhaps needs the basic farm payment much more than a dairy farmer due to the overall income from that business. That is what we are particularly interested in.

[George Eustice]

Yes, I understand, and I was going to come on to that. Although, of course, we have done other, more detailed work, not all of which has been published, I think I pointed out in evidence to the Committee that in March 2016 the National Farmers Union commissioned a detailed piece of work by a Dutch university, which looked at precisely that issue—what would happen under a most favoured nation trading scenario for a range of sectors. I probably cannot go much further, except to say that I recommend that research to anyone with an interest in this area because its analysis was broadly correct. In summary, it showed that some sectors are indeed more exposed than others to our trade with the European Union.

Notably, as the shadow Minister pointed out, the sheep sector is quite dependent on our trade with the European Union. The analysis commissioned by the NFU bore that out. It also identified that there might be some impact on barley producers that export for the lager industry in Europe in a most favoured nation scenario. However, broadly speaking, for most producers in every other sector there would actually be a slight firming in farm-gate prices, because most sectors would have less import competition. It is hard to predict exactly what would happen in a no-deal scenario, but in a scenario in which it was slightly harder to export lamb to Europe and harder to import beef from Ireland, some mixed beef and sheep enterprises likely would diversify a little more into beef to substitute for Irish imports and put a little less into sheep, particularly if they were exposed to the export market in countries such as France, Greece and Belgium.

There would obviously be changes under such a scenario, but it is worth reflecting on debates in the House in the late 1950s on whether we should join the European Union or remain a member of the European Free Trade Association. I am afraid that, given the nature of the debates we are having now, I revisited some of those debates to understand how we got into this pickle in the first place. It is telling that in the late 1950s and early 1960s there was cross-party agreement that joining the European Union would be bad for agriculture. One reason we did not join early was that it was recognised that that would be negative for agriculture. It is interesting that the NFU analysis largely bears that out to this day.

[Neil Parish]

Just to be facetious, Minister, does that mean you are going to re-establish deficiency payments? Do not forget that deficiency payments were coupled with that.

[James Gray (in the Chair)]

Order. Two points. First, interventions must be quite short. Secondly, I am sorry to pull the hon. Gentleman up again, but it is an absolute rule in this place that hon. Members must refer to one another as “the hon. Member”, “him”, “the Minister”, “she” and so on. Hon. Members may not refer to the Minister as “you”, because whenever you use the word “you”, you are referring to me. Please make an absolute habit of using only the third person.

--- Later in debate ---

[George Eustice]

There are anecdotal reports that more have come back this year because of recent changes in the exchange rate. Some daffodil producers in the west country say that it was easier to get labour this winter than last. It is quite common for seasonal agricultural workers to return for a number of years, and indeed levels of returning are one of the yardsticks used to assess the availability of labour.

The hon. Member for Bristol East (Kerry McCarthy) posed a question in an intervention about rules of origin. The Government are looking at that area. Obviously, not every nation state in the world is a member of the European Union. Lots of countries are not, and they have quite established procedures on rules of origin. While we have not reached a final position on those issues, there is, for instance, the pan-Euro-Mediterranean regional convention, which is a rules of origin system covering countries both in and not in the European Union. Other parts of the world have therefore addressed such issues.

I turn to points raised by the shadow Minister, who asked about how we are approaching the WTO. We have been clear that our schedule of tariff rate quotas on agricultural products should be divided between the EU and the UK based on an historical reference period. We regard that as a matter of technical rectification rather than reopening everything for renegotiation, and that is the approach we are taking on existing TRQs.

The hon. Gentleman mentioned New Zealand lamb and pointed out that we have a TRQ of just short of 250,000 tonnes for lamb from New Zealand coming into the UK. It is also important to recognise that, in recent years, New Zealand has only ever used about 70% of its quota. That demonstrates that long before the ceiling of that tariff rate quota is hit, they find themselves unable to compete with UK producers. I am more optimistic than some about British sheep producers’ ability to compete with New Zealand and Australia. Many do so already. As a country, we should not get spooked by some kind of New Zealand haka on lamb production. We need to get on the pitch and play, and I think we will find that we can beat them.

We have been clear that in any future trade agreements we will maintain our standards. We will not reduce our standards in pursuit of a trade deal. That is a common feature. It is quite possible for us, through doing trade deals with third countries, to require that those who wish to supply us under such agreements must meet our standards.

Just this morning, I visited the Agriculture and Horticulture Development Board and talked to officials who were involved in our negotiations with the United States on reopening its market for British beef, which we have worked on for a number of years. There are opportunities for British beef exports to the United States, but there are also one or two technical areas where the United States wants us to change our rules for those supplying them to meet their standards. For instance, they have a slightly different approach to monitoring things such as E. coli and to the methodology that a vet should use when visually inspecting animals as they arrive in the pen.

We could go in and say, “This is no good. You’ve got to change your rules to be like the British rules,” but we do not. Actually, we say, “Fair enough. Those suppliers who want to supply that market should do that. We should respect their rules, and they should respect ours.” Equally, if US producers want to supply the British market, it is absolutely open to us to say that that must be done on British standards. We are a free-trading country, and we will be open to doing trade deals, but we are clear that we have standards and values that we will not abandon.

[Neil Parish]

We have very high standards in this country. We also use less and less antibiotics in producing meat. The Americans still use a lot more antibiotics, their environmental standards are lower and often their welfare standards are lower. On the antibiotic side in particular, we must be clear in negotiations that we do not reduce our standards and allow in products that have had many more antibiotics.

[George Eustice]

My hon. Friend makes an important point. In a trade negotiation we are talking about food standards, not just food safety. Some people misleadingly try to divert the debate, but it is about food standards, and issues such as animal welfare and the approach taken to farm husbandry are integral to those standards. We should not be shy about saying so.

A number of hon. Members mentioned IT systems. We—in the European Union—currently use the trade control and expert system, but we are doing a detailed piece of work to build a replacement system, should that be needed, and that work is well advanced. My hon. Friend asks in his Committee’s report for the Government to set out clarity about the future of the agriculture Bill. I am aware that this week the Secretary of State appeared before my hon. Friend’s Committee, where he was given that reassurance. The report also raised the potential impacts of tariffs on food prices. Again, as with the sectoral impacts, the Government are looking at this area, but we are not in a position to publish details. However, I recommend those hon. Members interested to look at work done by, for instance, the Resolution Foundation, which identified the fact that the impact on domestic food prices would be quite marginal, even under a most favoured nation scenario.

We have had a comprehensive debate covering a wide range of issues. I welcome the Committee’s interest and it bringing its report to the House for debate.

[James Gray (in the Chair)]

The question is, That this House has considered the Third Report of the Environment, Food and Rural Affairs Committee, Brexit: Trade in Food, HC 348, and the Government response—

[Neil Parish]

rose—

[James Gray (in the Chair)]

I beg your pardon. Mr Parish can indeed conclude if he wishes. That is quite right.

[Neil Parish]

Thank you, Mr Gray; I wanted to ensure that we kept to correct parliamentary procedure, having been corrected a number of times this afternoon. I will do my best not to refer to hon. Members as “you” in future.

I thank the Minister for his summing-up speech. He mentioned the good work done by the NFU through a Dutch university on sector-by-sector analysis, which I welcome, but I do not think that takes the place of a proper sector-by-sector analysis by DEFRA, which still needs to be done. I make that point very strongly.

I also thank the Minister because I know the work he does to understand the trade deals and to get a good deal in the future for this country; he cares very much about that, which I respect. In particular, the deal we do on the border between Northern Ireland and the Republic will be important not only for Northern Ireland and our own country, but for the Republic of Ireland. I had an Irish grandmother from Dublin, which may account for many things. I find it fascinating that, after nearly 100 years of independence from the United Kingdom and of being its own country, the majority of the Republic’s trade is still with the United Kingdom. Not only is it important for us that we get it right, but it is important for the Republic of Ireland. I hope the EU, on the other side of the argument, also understands how important that is.

I like the Minister’s idea of a bespoke, risk-based arrangement. The idea that we will be able to open up and inspect every lorry will never actually happen, but we need to have a system where we are able to do that if we need to. What matters is the speed at which we can get through those borders, and keeping the trade that is so important. We have talked about trying to ensure that, as we do a future deal, there are no tariffs, because that will not be good for any sector, and especially not the farming sector, in the long run.

The shadow Minister referred to the fact that we must watch for interference with trade, not through tariffs but through other means. I remember that in my previous existence, when I was elected to the European Parliament in 1999, we were trying to get British beef back into France after bovine spongiform encephalopathy. Even under single market regulations and all the regulations that were in place, the French were masters at finding reasons why that beef should not go into their country.

Although I am very happy to trade with France and the rest of the European Union as we leave, we have to be conscious that those countries could find ways of disrupting trade. They still do it within the European Union now; they usually stop just before the Commission throws the rulebook at them. They are very clever at looking after their own trade, and we need to be equally clever to ensure that our trade goes into France and that, when we reciprocate those trade arrangements, they also honour their arrangements as we move forward.

Again, I thank the Minister, who has come to our Committee and had some very good and open exchanges. In the end, whether we voted to remain in the European Union or to go out, I believe now that a Brexit deal must be done. The people have decided, and we must make that work. Nowhere is that more important than in the farming and food sector, because it has been part of a common agricultural policy and trade policy for 40 years. We have great opportunities, but we must get this right—not only for food and farming, but for good food to be had by all in this country at affordable prices.

Question put and agreed to.

Resolved,

That this House has considered the Third Report of the Environment, Food and Rural Affairs Committee, Brexit: Trade in Food, HC 348, and the Government response, HC1021.