(2 years ago)
Commons ChamberMay I wish all hon. Members a very happy Christmas? In the spirit of Christmas cheer, I will offer the Minister for Trade Policy some help after his struggles in the Christmas quiz from my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) earlier: it was, of course, the Prime Minister who said that the Australia deal was “one-sided”.
There is more:
“The first step is to recognise that the Australia trade deal is not actually a very good deal for the UK”.—[Official Report, 14 November 2022; Vol. 722, c. 424.]
Those are not my words, but the words of the former Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Camborne and Redruth (George Eustice). Quite simply, why should anyone have confidence in the Conservatives’ trade policy when they do not have confidence in it themselves?
I am afraid the right hon. Gentleman is talking nonsense. The Australia free trade agreement is a great deal. It will boost the household wages going into our pockets by an estimated £900 million. It will grow the UK economy to be an estimated £2.3 billion bigger in 2035. It will see the removal of all tariffs on UK exports, which will make it easier to sell all UK goods, from cars to chocolate and Scotch whisky. There will be lower prices at home. I had a meeting with the Australian Trade Minister, and we had a very good conversation. I think it is a shame that the shadow Secretary of State did the same and is now coming here to say negative things about the deal.
If the Secretary of State thinks that those views are nonsense, I suggest she takes them up with the Prime Minister and the former Secretary of State. It was their judgment that I put to her, not my words.
On trade, the reality is that the Conservatives are delivering either bad deals or no deals at all. That is what happens when we have a Government who are high on rhetoric and devoid of strategy, with workers and businesses paying the price. Let me ask a simple question. If the Government will not hit their target of 80% of our trade being under FTAs by the end of the year—and they won’t—when will they hit it?
As Secretary of State, I have been very clear that what is important is the substance of trade deals, not the timing. It is about the deals, not the day. I am negotiating quality trade deals for the UK that will last for generations to come. We are thinking about the future, not trying to re-fight the Brexit debate.
(2 years ago)
Commons ChamberI want to put on record my thanks to all parliamentarians who have contributed to the passage of the Bill. I thank officials at the DIT for their work and all those House staff who have supported the debates both in the Chamber and in Committee.
I also want to put on record my desire to see a deepening of our trade links with our friends in Australia and New Zealand through trade agreements and, indeed, ever closer relationships at all levels. Both countries are close global allies through a common history, and face similar challenges and have similar opportunities in the years to come. I particularly welcome the two very fine Labour Governments they have in office. The next UK Labour Government will work with these free trade deals for the benefit of our people here, and indeed of our friends in Australia and New Zealand.
Specifically on the negotiations, the high commissions of Australia and New Zealand have been remarkably helpful in briefing colleagues as talks progressed, and I am very grateful to them. I was very grateful this morning to meet Mr Don Farrell, the Minister for Trade and Tourism in Australia, to emphasise the Opposition’s desire to deepen that relationship. The Minister mentioned on Report that he was working on the commencement of the deals, but gave no particular date for that. I urge him to set out the commencement dates for both deals.
Our debate on this Bill has not been about the commitment of the Opposition to our deepening relationship with Australia and New Zealand. Rather, it has been about two things. The first is the failure of this Government to achieve the best possible deals for the United Kingdom. The Australia deal is “one-sided”—not my word, but that of the current Prime Minister. In addition:
“The first step is to recognise that the Australia trade deal is not actually a very good deal for the UK… overall, the truth of the matter is that the UK gave away far too much for far too little in return.”—[Official Report, 14 November 2022; Vol. 722, c. 424.]
Those are not my words, but those of the former Secretary of State for the Environment, Food and Rural Affairs, the right hon. Member for Camborne and Redruth (George Eustice), and we can see why he said it. The impact assessment for the Australia deal shows a £94 million hit to our farming, forestry and fishing sectors, and a £225 million hit to our semi-processed food industry. On the New Zealand deal, the Government’s own impact assessment states that:
“part of the gains results from a reallocation of resources away from agriculture, forestry, and fishing”,
which will take a £48 million hit,
“and semi-processed foods”,
which will take a £97 million hit. Perhaps it is no surprise that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”.
British produce can be a huge success in new markets, but we recognise the need for a level playing field for our farmers, and it is to a proper plan for our agricultural sector that Ministers must now turn.
On climate change in the Australia deal, the Government failed to include a specific commitment to limiting the rise in global temperatures to 1.5 degrees. On workers’ rights, there was a failure to include commitments to the International Labour Organisation conventions, and there was a lack of substantial concessions on geographical indicators. Unless there is a change of negotiating approach, this weakness in negotiations will have even further consequences for this country in deal after deal.
Secondly, there is the lack of scrutiny. The deals were already signed and agreed before they came before Parliament, so the scope for any amendments, and therefore for meaningful debate, was fatally curtailed. It is impossible to argue that these processes represent scrutiny worthy of the name. The International Trade Committee has rightly criticised the process on the Australia deal and the Government’s premature triggering of the 21-day CRaG process without the full Select Committee consideration being available to Members. When pressed on that, the Government refused to extend the process, and all the while the previous Secretary of State swerved eight invitations—eight—to attend the International Trade Committee.
Perhaps it is no wonder that the Government keep dodging scrutiny, given their record, because as we approach the end of the year, it is a tale of broken promises on trade: no trade deal with the United States; a trade deal with India done by Diwali—promise broken; and 80% of UK trade under free trade agreements by the end of the year—not going to happen. The truth is that Conservative trade policy is a tale of bad deals or no deals at all.
(2 years, 1 month ago)
Commons ChamberToday is a significant day, and I wish the Minister a happy birthday. What better present could the Secretary of State have given him than being absent and allowing him to open this debate in her place?
I welcome this general debate on the Australia and New Zealand trade deals. Yesterday, Remembrance Sunday, was a powerful reminder of our shared history and shared past sacrifice. The UK, Australia and New Zealand have deep enduring bonds, shared values and common goals. The Opposition support AUKUS; we recognise the key and central priorities that the UK, Australia and New Zealand share on the world stage, and we will continue to support the achievement of those goals.
I also put on record my desire to see a deepening of our trade links with our friends in Australia and New Zealand through trade agreements, and ever-closer relationships on all levels. I am especially pleased to say that both countries now have very fine Labour Governments in office.
Of course, we are having this debate after the deals have been signed, but they must now be honoured and worked with for the benefit of people here and of our friends in Australia and New Zealand. Specifically on negotiations, the high commissions of Australia and New Zealand have been remarkably helpful in briefing hon. Members across the House and briefing me as shadow Secretary of State, and I express my gratitude to them for all that they have done throughout the process.
To be clear, our debate today is not about the Opposition’s commitment to our deepening relationship with Australia and New Zealand. Rather, the question for this House is whether this Conservative Government secured the best possible deals on behalf of our constituents, and let us be frank: the best possible deals were not achieved.
The Australia deal is “one-sided”—not my words, but those of the current Prime Minister, who said so absolutely clearly over the summer. In fairness to him, we can see why he takes that view. The impact assessment for the Australia deal shows a £94 million hit to our farming, forestry and fishing sectors, and a £225 million hit to our semi-processed foods industry. On the New Zealand deal, the Government’s own impact assessment states that,
“part of the gains results from a reallocation of resources away from agriculture, forestry, and fishing”,
which will take a £48 million hit, while semi-processed foods will take a £97 million hit.
Ministers know the serious concerns about the agriculture elements of these two agreements and the precedents that they risk setting. We in the Opposition are very proud of our UK farmers and the standards of excellence they seek to uphold, and we believe that British produce can be a huge success in new markets, but we must also recognise the need for a level playing field for our farmers.
The Government claim that they are trying to mitigate the impact of the two deals, with tariff-free access being phased in. In the New Zealand deal there are tariff-rate quotas and product-specific safeguards for 15 years. Similarly, in the Australia deal the phasing-in period on beef and sheepmeat is of the same period, but the quotas that the Government have set for imports from Australia are far higher than the current levels.
We only need to see what other countries achieved in trade deals with Australia. When Japan negotiated a trade deal with Australia, it limited the tariff-free increase in the first year to 10% on the previous year. South Korea achieved something similar, limiting the increases to 7%. Yet this Government have negotiated a first-year tariff-free allowance with a 6,000% increase in the amount of beef the UK currently imports from Australia. On sheepmeat, it is a 67% increase. I have a simple question for the Government: why did they not achieve the same things that Japan and South Korea did, and why have our Ministers failed to ensure that the Australian agricultural corporations are held to the same high standards as our farmers?
It is good to see the right hon. Member for Camborne and Redruth (George Eustice) in his place. As I am sure he will recall, when he was Secretary of State for Environment, Food and Rural Affairs, he said that he faced “challenges” in getting the former Prime Minister—it is quite confusing these days; I mean the most recent former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss)—and the International Trade Secretary to enshrine animal welfare in deals. It is no wonder that the National Farmers Union said that it saw
“almost nothing in the deal that will prevent an increase in imports of food produced well below the production standards required of UK farmers.”
It is perhaps no surprise that Australia’s former negotiator at the World Trade Organisation said:
“I don’t think we have ever done as well as this.”
They are called trade “negotiations” for a reason, and it is a shame that the Government failed to put forward the strongest possible case for the UK. At the very least, I ask Ministers to go away and work out what more they can do now to support our food producers in the face of these challenges.
Some farmers are very concerned about the procurement aspects of the deals, which will allow producers from Australia and New Zealand to compete for UK procurement deals. UK producers, however, are unable to compete in Australia and New Zealand, likely because of the economies of scale challenges.
The hon. Gentleman raises a useful point. Our farmers are seeking a level playing field. We believe in our farmers and we want them to be able to compete on the same basis.
We also see in the Australian deal a lack of success on tackling climate change. The former COP26 President, the right hon. Member for Reading West (Alok Sharma), told the House last December that the Australia deal would reaffirm
“both parties’ commitments to upholding our obligations under the Paris agreement, including limiting global warming to 1.5°.”—[Official Report, 1 December 2021; Vol. 704, c. 903.]
However, the explicit commitment to limiting global warming to 1.5° was not in the deal, despite the fact that the Minister had said that only a matter of days before it was signed. What went wrong in those final days? Was it perhaps that Ministers simply gave way for the sake of getting a completed deal?
The current Secretary of State for International Trade, the right hon. Member for Saffron Walden (Kemi Badenoch), was sadly not here to open the debate. When she was standing to be Conservative party leader, she branded the net zero climate target “unilateral economic disarmament”. I think it is fair to say that there are worries about her commitment to delivering the progress needed on climate change, given that she has expressed that view publicly. Not only does that view misjudge the economic imperative of action to tackle climate change, but it fails to recognise the huge opportunities that the transition to net zero could provide. The question must also be asked: how broken can a party be when dabbling with climate change denial is a way to drum up support from its members?
On labour standards and workers’ rights, the Government did not push as hard as they might have done, as my hon. Friend the Member for Aberavon (Stephen Kinnock) said in an earlier intervention. On the Australia deal, the TUC said that the
“agreement does not contain commitments to ILO core conventions and an obligation for both parties to ratify and respect those agreements”
and that it provides
“a much weaker commitment to just the ILO declaration.”
That is a mistake. We should not set a precedent for new trade agreements across the globe to sell short our workers here or elsewhere.
I accept my right hon. Friend’s point when it comes to dealing with some countries, but in the case of the deal with Australia, where there is a strong Labour Government committed to workers’ rights and trade union rights, and a strong trade union movement, are we not slightly making a mountain out of a molehill here?
I completely agree with my right hon. Friend about the Australian Government. Having met a number of representatives of the Australian Government, I know that their commitment to workers’ rights is second to none. It is a shame that we did not see a similar commitment from this Conservative party, frankly. Of course, the issue with the Australia deal is the precedent that it sets: other countries with lower workers’ standards than Australia will look at the standards in the deal and think that they should be the starting point in negotiations. A further issue is around geographical indicators, on the cross-party International Trade Committee said:
“The Government has failed to secure any substantive concessions on the protection of UK Geographical Indications in Australia”.
We have to ensure backing for our fantastic national producers and not let them be undermined.
Is it not also the case that this trade deal does not, for example, have an investor-state dispute settlement clause, because with comparable legal systems and comparable levels of development it is not necessary? Surely we do not need one template for all sorts of trade deals with all sorts of countries in very different circumstances.
I completely agree with my right hon. Friend that we do not need a single template, but we could do with a core trade policy and a core set of objectives from the Government.
I turn to the issue of scrutiny, because for those in this House who follow trade matters closely, it will not have gone without being noticed that this debate brings a distinct change of focus from Ministers at the Department for International Trade. Ministers—I would say they are new Ministers, but I think the Minister for Trade Policy, the right hon. Member for Chelsea and Fulham (Greg Hands), is competing with Frank Sinatra in the comeback stakes—will I am sure be aware of stinging rebukes from the cross-party International Trade Committee, which has regularly and strongly raised the need for better scrutiny structures around trade deals. It called in its recent report for
“the Government to accept specific recommendations to enable better scrutiny of any FTAs”.
That is very much a cross-party matter—the hon. Member for Totnes (Anthony Mangnall) has regularly made the case to me as the shadow Secretary of State as well as to the various Secretaries of State and I hope that those criticisms and recommendations are having an impact. I hope that those recommendations, which come from right across the House, are being heard. Perhaps that is why we have at least ended up with today’s debate, although the irony is not lost on us that parliamentary time has now been allocated to agreements that were long ago signed and agreed.
My right hon. Friend is being generous in giving way. On this point about scrutiny, he is a Welsh MP like me, so does he agree that these deals have a huge impact on, for example, the Welsh farming industry? Does he share my regret that the Government have not published an impact assessment for the devolved nations, and that they have ridden roughshod over any conventions on consulting properly with the devolved nations, whose Governments are such important stakeholders in this process?
I entirely share my hon. Friend’s concern about the lack of specific impact assessments. I also share his disappointment that there is not a specific set of structures in place where the devolved Administrations can make their voices heard at a far earlier stage in the process. That would be extremely helpful.
I am sorry, but that is just not a complete representation of what actually goes on. The ministerial forum for trade, which I set up—I have not yet chaired a meeting of it since returning to the Department, but it will be meeting soon—allows all three devolved nations to meet me to discuss forthcoming trade deals, forthcoming negotiations and trade policy overall. That is exactly what it is in place for.
First, I am pleased to hear that from the Minister, because certainly the feedback I have had from the devolved Administrations has not been positive with regard to the political interaction they have had prior to trade deals being signed. Also, there is the issue of the extent to which the needs of the devolved Administrations were taken into account. He has said that to me today from the Dispatch Box, so I hope that he is as good as his word with the ongoing trade deal negotiations and that the devolved Administrations will not only have the opportunity to have their say, but will be listened to.
I am looking forward to a meeting with Vaughan Gething later this week, if I am not mistaken—it might be next week, but it is in the coming days. It is important to recognise that trade policy is a reserved matter, but it does have a significant impact on areas of devolved competence, such as agriculture. That is why it is right that the UK Government carry out the negotiation, but that they involve and inform the devolved Administrations. That is exactly how it works with the ministerial forum for trade and other interactions.
I entirely agree that it is the UK Government who are carrying out the negotiations, but they should not just carry out the negotiations and inform the devolved Administrations about them but take their views into account before the negotiations begin. I hope that the Minister will be as good as his word. I am sure we will see that in the months to come.
This is a very interesting and useful conversation. Is it not right that other countries do this very differently? Belgium includes its regions in the negotiating teams, which are therefore in the room. The USA includes representatives of trade unions and businesses in the negotiating teams, who are therefore in the room. Australia, in this instance, excludes any matters that the states are responsible for, so they are not touched on in this trade deal. Is it not the case that this Government are the weakest of all the partners?
My hon. Friend is absolutely right that there is a better way to do that, as he eloquently sets out.
On the theme of scrutiny, Lord Grimstone said in May 2020 that the Government do not envisage
“a new FTA proceeding to ratification without a debate first having taken place on it”.—[Official Report, House of Lords, 23 February 2021; Vol. 810, c. 724.]
Clearly, that has not happened, and that is why this debate is in such odd circumstances. There are crucial elements to both these deals that deserve wider debate and scrutiny.
I want to highlight the real challenge in the Committee for the Bill that the Minister referred to, which was not a Bill about giving effect to a whole range but a specific, narrow Bill on public procurement provisions. The nature of the Bill meant that, under the entirely appropriate rules of this House, finding areas of debate in Committee was very difficult. It was prohibitively narrow: climate change, workers’ rights, consultation with devolved Administrations and animal welfare were not within the scope of the Bill. The agreements were signed before they came before Parliament, so the scope for meaningful debate was fatally curtailed. There has been no scrutiny worthy of the name.
The International Trade Committee rightly criticised the process on the Australia deal and the Government’s premature triggering of the 21-day process under the Constitutional Reform and Governance Act 2010 without the full Select Committee consideration being available to Members. When pressed, the Government refused to extend the process. All the while, in a number of urgent questions, the then Secretary of State, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), swerved I think eight invitations—I will be corrected if I am wrong—to attend the International Trade Committee. I wonder whether the Government’s reticence to open themselves up to scrutiny is because, ultimately, they know they are falling short.
The right hon. Gentleman is making an important point about scrutiny, and it is not one I can escape now that I have some level of collective responsibility as a Parliamentary Private Secretary, I hasten to add. Does he agree that there is a wider conversation to be had about the Constitutional Reform and Governance Act, which was introduced under a Labour Government, and about whether a more effective system could be put in place? It seems that we are out of kilter with our Commonwealth friends.
The hon. Gentleman makes the perfectly reasonable point that we need to look at the whole scrutiny process to make it effective and to update so that it is fit for the current situation.
I have indicated that the current Prime Minister thinks the Australia deal is one-sided. Frankly, that is just one of many criticisms that Conservative Ministers and MPs have levelled at their own Department for International Trade and their own Ministers. The former Exports Minister, the hon. Member for Finchley and Golders Green (Mike Freer), rightly said that the trade access programme is underfunded. He said of it:
“We support too few shows, we don’t send enough business, our pavilions are often decent but overshadowed by bigger and better ones from our competitors.”
That could be due to the fact that the budget for our trade show access programme began to fall sharply.
I looked carefully at when in the past 12 years the trade show access programme started to be cut in the last 12 years—I have the figures here for every year. It seems to have happened in the middle of the last decade when a new Chief Secretary to the Treasury was appointed, so I wondered who that was. The Minister has been in post for only a short period on this occasion, but we have had a number of robust exchanges previously, which I have always enjoyed, and this is not a subject that he has ever sought to debate me on before. When I checked who that confident, new, shining Chief Secretary to the Treasury was who started the cuts to the tradeshow access programme, however, I found that it was none other than the current Minister for Trade Policy.
Ministers for Trade Policy have a chequered history under recent Conservative Governments. We have just seen the Leader of the House of Commons, the right hon. Member for Portsmouth North (Penny Mordaunt), in her new role. She was criticised for her attentiveness and availability as Trade Minister, not by me or any Opposition Member, but by the right hon. Member for Berwick-upon-Tweed, who said:
“There have been a number of times when she hasn’t been available, which would have been useful, and other ministers have picked up the pieces”.
Meanwhile, if we read the remarkable coverage of the tenure of the most recent former Prime Minister, the right hon. Member for South West Norfolk, at the Department for International Trade, it is amazing that there was even limited progress, given that the main aim appears to have been securing photographs for Instagram. I will say this for her time as International Trade Secretary, however: although her requests when travelling in Australia were for sauvignon blanc and fancy coffee, they are nothing compared with the Australian delicacies that I understand the right hon. Member for West Suffolk (Matt Hancock) has sampled when out there.
All hon. Members on both sides of the House would agree that a trade deal offers our friends in Australia a fantastic array of British exports, but I fear that they will want to reconsider their options when the first expensive import that arrives is a tariff-free version of the right hon. Member for West Suffolk. I will leave that subject there, aside from the passionate plea that I always make when important elections are under way, such as the bushtucker trial: it is important for people to continue to make their voices heard, and I am sure that people across the country, especially in West Suffolk, will be keen to continue exercising their vote on a daily basis.
The disorder and chaos that we have seen across Government in recent months, and specifically at the Department for International Trade, speak of a Government who lack focus and direction. I speak to huge numbers of businesses every week and they continually express how damaging the instability is; it has real consequences in damaging our exporting opportunities. The utter chaos of financial instability, the tanking of the pound and the damage to our country’s standing are extraordinarily serious.
That instability and lack of clarity are why we have ended up in a situation where promises have been broken and vital progress has slipped. The trade deal with the USA has not been delivered. The trade deal with India done by Diwali has not been delivered. The promise that 80% of UK trade would be under FTAs by the end of 2022 has not been delivered and will not be delivered. It does not have to be that way.
I think we may have been here before, so I apologise for reiterating what I have said previously. The right hon. Gentleman keeps saying that we are not delivering and that we are taking too long, but also that deals are being signed too quickly. The Labour party seems to be at odds with itself. Whether it is our desire to join the comprehensive and progressive agreement for trans-Pacific partnership; our desire to do trade deals with Japan, which we have achieved; the Australia and New Zealand trade deal; or the UK-US state trade deal, those deals are being signed and we are joining new groups. It is not fair or accurate to say that we are not delivering the trade deals that we set out to achieve.
What the hon. Gentleman omits is that I am judging the Government not against a standard I am putting forward that is impossible to reach but against their own 2019 manifesto. There is no inconsistency between being in favour of free trade deals and hoping that the Government will agree decent ones at the negotiating table.
As I am finishing in a moment, I will not take another intervention.
The Government’s central trade strategy is a litany of broken promises. We are debating these two trade deals in strange circumstances long after they were signed, sealed and delivered. Access to British markets is not, however, a bauble to be traded away easily, as the Government repeatedly do. The Government must stop selling the UK short, and come forward with a core trade strategy that will allow our world-leading businesses to thrive and deliver for communities across the country. Quite simply, it is time for strong government with a sense of purpose, which the Conservative party is in no position to provide.
(2 years, 1 month ago)
Commons ChamberAfter several months in which Ministers have come and gone without even facing questions at the Dispatch Box, it is good to have a chance, in this International Trade Week, to welcome the new team to the Department. I would of course like to welcome the Secretary of State and to wish her well in her new post, and I would also like to start on a note of consensus. The Secretary of State said during the leadership contest in the summer:
“Why should the public trust us? We haven’t exactly covered ourselves in glory”.
I entirely agree with her assessment of her party.
We know where the Prime Minister thinks that Conservative policy on trade has failed, because he called the Australia deal “one-sided”, so can the Secretary of State set out which other aspects of trade policy have failed and how she intends to improve them?
I thank the right hon. Gentleman for his warm welcome. He makes reference to comments that I made in the summer, and I am very grateful for the opportunity to clarify them. I was actually referring to all MPs and to Parliament, rather than just to this side of the House—[Interruption.] Indeed; we all know Members of all parties who have not exactly covered themselves in glory, and nobody should pretend that this is about those on one particular set of Benches.
The right hon. Gentleman is talking about trade policy, and one of the things I am very keen to highlight is that there is more to trade than free trade agreements. What we need to do is get our exports and investments going; that is the bread and butter of what trade is about. I disagree with his assertion about the one-sided nature of any particular agreement. What I want to see is businesses selling their products outside the UK and investment coming in.
Well, trade policy certainly has not been covered in glory, because the 80% of UK trade that was to be covered by free trade deals by the end of year is not going to happen, the comprehensive deal with the US is out of sight and the deal with India by Diwali is a promise broken—but is this really any surprise? The Secretary of State’s predecessor said that her then Minister was not always available to answer the phone, the former exports Minister criticised his Department’s own trade fairs and the right hon. Member for South West Norfolk (Elizabeth Truss) was, it seems, prioritising selfies and wine fridges over standing up for Britain. Is not the reality that this Government’s incompetence is costing growth, jobs and prosperity? Quite simply, when will the Secretary of State get a grip of the Department?
I find every single thing the right hon. Gentleman has said to be laughable. It is very easy to stand at the Dispatch Box and make political points. I am here to actually deliver for the businesses across the UK, and that is what those of us on the Conservative Benches are going to be focused on. This is International Trade Week, so he will know that by 2030 we are forecasting £1.8 trillion-worth of green trade and £170 billion of UK exports. That is not the work of a Department that is failing; that is the work of a Department that is succeeding. I am very pleased with the actions of the officials at the DIT, and I will continue to support them both in the Department and here in Parliament.
(2 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Secretary of State for International Trade if she will make a statement on progress made on the UK-India free trade deal.
First, let me say that it is good to be back at the Department for International Trade.
India is, of course, an economic superpower, projected to be the world’s third largest economy by 2050. Improving access to this dynamic market will provide huge opportunities for UK business, building on a trading relationship worth more than £24 billion in 2021. That is why we are negotiating an ambitious free trade agreement that works for both countries. We have already closed the majority of chapters and look forward to the next round of talks shortly.
A strong free trade agreement can strengthen the economic links between the UK and India, boosting the UK economy by more than £3 billion by 2035, helping families and communities. An FTA can cut red tape, making it cheaper for UK companies to sell into India’s dynamic market, helping drive growth and support jobs across every nation and region of the UK. Greater access could help UK businesses reach more than a billion more consumers, including India’s growing middle class, which is estimated to reach a quarter of a billion by 2050, and give them a competitive edge over other countries that do not have a deal with India. An FTA with India supports the Government’s growth strategy, by taking advantage of the UK’s status as an independent trading nation championing free trade that benefits the whole of the UK. We remain clear that we are working towards the best deal for both sides and will not sign until we have a deal that is fair, reciprocal and, ultimately, in the best interests of the British people and the UK economy.
I welcome the Minister back to the Department once again, wish him well and thank him for his response. I am also grateful to Mr Speaker for granting this urgent question.
Not only is Diwali this year an important celebration, but it marks another milestone. In January, negotiations on the UK-India trade deal began, with the Government promising to conclude those talks by Diwali—this week. Under this Government, economic growth has been almost non-existent and promised progress on new free trade deals has not materialised. The Government are all talk and no delivery.
Not only would an agreement with India be potentially worth billions of pounds to the UK economy and would provide new markets for exporters, but it would offer the opportunity to advance key areas of shared interests. Labour Members have also been clear that it should also be an opportunity to raise issues such as workers’ rights, and environmental and climate standards.
However, it appears that progress on trade talks has stalled—this is yet another product of Conservative infighting. Members across this House are well aware of the comments on overstaying visas made by the Home Secretary, which have caused such offence. Does the Minister agree that the Home Secretary has completely undermined the UK Government’s negotiating position? Will he confirm whether she will be withdrawing those comments? Has a future target date for completion of the deal been agreed? Or is this destined to be kicked into the long grass, along with the promised United States deal? Does he acknowledge that the delay in this deal, and the US deal, means there is no prospect of the Conservative party meeting its manifesto aim of 80% of trade being covered by FTA agreements by the end of this year? Does he not accept the simple truth: on trade, the Conservatives have quite simply broken their promises?
I am delighted to have the opportunity to answer this urgent question and some of the points that the right hon. Gentleman raised. [Interruption.] I will answer all of them. First, on his question about the end of the deal, we have been clear that we have concluded, as we said we would, the majority of the chapters of the deal. Sixteen chapters, across 26 policy areas, have been agreed so far. The right hon. Gentleman will know that, after each round of negotiations, a written ministerial statement, which he can study, has been tabled in this place.
The right hon. Gentleman asked about visas. Perhaps he is trying to have a second go about the Home Secretary, about whom we have just heard an urgent question. I am not sure whether members of the shadow Cabinet are properly co-ordinating their urgent questions, but the right hon. Gentleman should know that we are talking about mode 4 arrangements. They are not immigration visas. They relate to business visas, not permanent settlement. The terms of the mode 4 arrangements remain an area of active negotiation.
Finally, the right hon. Gentleman said that the Government were all talk and no delivery on trade. That amazed me the most. He is obscuring the bigger issue for the Opposition. Let us assume that we get a good deal with India for Britain and that we get a good deal elsewhere, as we have done with Japan, Australia and New Zealand. I have been away from the Department for a year, and in that time Labour has not supported a single trade deal that the Government have undertaken. The Opposition did not support the Japan deal, they were against the Singapore deal and they split three ways on Canada. Only last month, they abstained on the Australia and New Zealand deals.
The Government are delivering on trade and the Opposition are in chaos and confusion. They have been unable to support a single trade deal to date and it sounds as though they will not support this one.
(2 years, 3 months ago)
Commons ChamberIt is a privilege to open this Second Reading debate on behalf of the Opposition—in what is evidently the biggest political event of the day.
I welcome the fact that we are finally here for a longer debate on trade, albeit after the ratification of the two deals we are discussing, and let me say at the outset that the Labour party is in favour of securing trade deals with countries around the world that deliver for communities up and down the country. We are in favour, too, of deepening our trade links with our friends in Australia and New Zealand, and I want to put on record my thanks to the high commissions of Australia and New Zealand for their openness to dialogue and to providing information throughout the process.
The trade deals are of course significant in themselves, but they are also crucial because they set precedents not only for what other countries can expect when negotiating with us but for the process of scrutiny provided by this House, and, frankly, that process has been wholly inadequate. Ministers have hidden away rather than answer to this House for what they have negotiated. Ten months after the Australia deal was signed and seven months after the New Zealand deal was signed, the Bill in front of us today is only a short Bill that gives the Government the power to implement the procurement chapters in the Australia and New Zealand deals along with the associated provisions about regulations and the devolved authorities. So today’s debate is not about ratification, as the Government have avoided that.
In respect of the New Zealand trade deal, no Minister from the Department even came to the House to speak about it and open themselves up to questions; instead, they just issued a written statement, so no questions could be put. The cross-party International Trade Committee has rightly been scathing about the way the Government have handled scrutiny of the Australia trade deal and their premature triggering of the 21-day Constitutional Reform and Governance Act 2010 process without full Select Committee consideration being available to Members. When pressed on that, the Government then refused to extend the process. The current Secretary of State has by my count swerved eight—eight—invitations to attend the International Trade Committee.
The Government’s failure to be open to parliamentary scrutiny and make parliamentary time available for debate is both a completely unacceptable way to treat this House and a clear breach of the Government’s own promises.
I am grateful to the right hon. Gentleman for mentioning the International Trade Committee, which I chair, and he highlights our frustration. Committee members have different political views, but they were united about the Government’s disappointing attitude to scrutiny. If we get these things right, more people win, but if we are slipshod and slapdash, more people lose.
I completely support what the Chair of the Select Committee says. It is a cross-party Committee, so this is not a partisan point. Whatever has been negotiated by Ministers, they should be willing to open themselves up to scrutiny from this House.
As I said, this is also a breach of the Government’s own promise. Lord Grimstone wrote in May 2020:
“The Government does not envisage a new FTA proceeding to ratification without a debate first having taken place on it.”
But that is precisely what has happened, and I think we are entitled to ask why.
Why are the Government so worried about being held to account on their own trade policy? Could it be because the 2019 Conservative manifesto promised that 80% of UK trade will be covered by free trade agreements by the end of this year when the reality is far short of that mark? Could it be because that same manifesto promised a comprehensive trade deal with the United States by the end of this year and it is nowhere in sight?
Or is it because Ministers have been letting down farmers? Members need not just take my word for that; the right hon. Member for Richmond (Yorks) (Rishi Sunak), the former Chancellor—and, as of yesterday at least, a Tory Leadership candidate—made exactly the same point over the summer. No wonder the now Prime Minister failed to attend a hustings with the National Farmers Union last month; as the former Chancellor put it, that
“raises questions about her willingness to listen to the needs of farmers and the wider food industry.”
I agree entirely with the former Chancellor; I could not have put it better myself.
I congratulate the right hon. Gentleman on his book, which was a page-turner. Will he not take comfort, as I do, from what was said by the Prime Minister a few days ago to the National Farmers Union about wanting to see an improved scrutiny process?
I thank the hon. Member for his congratulations on my biography of Harold Wilson; that is greatly appreciated. On scrutiny, if only the Prime Minister had held the trade brief in the past and been able to do something about it then.
Is not the truth perhaps that the Government are running away from scrutiny because they are failing to support exporters properly? The Opposition have been arguing that the Government are not doing enough to support exporters, and over the summer that became clear. The former Minister for exports, the hon. Member for Finchley and Golders Green (Mike Freer)—he intervened on the Secretary of State but is no longer in his place—appears to agree. He argued that the trade access programme is underfunded and said of it:
“We support too few shows, we don’t send enough business, our pavilions are often decent but overshadowed by bigger and better ones from our competitors.”
Perhaps it is therefore no surprise that there has been failure in the Department for International Trade.
We then have what the Secretary of State said about her own Minister for Trade Policy, who I think is still the Minister for Trade Policy today. She said:
“There have been a number of times when she hasn’t been available, which would have been useful, and other Ministers have picked up the pieces.”
The former Chancellor says that Conservative trade policy is letting down farmers, the former Minister for Exports says that the Government are not supporting exporters as they should be, and the Secretary of State is criticising the performance of one of her own Ministers. This is not the good ship Britannia delivering trade for global Britain; it is more like “Pirates of the Caribbean”, with a ghost ship manned by a zombie Government beset by infighting, mutiny and dishonesty. The calamity might have been mildly amusing were it not so serious a matter for our country’s future, with people across our nation needing a trade policy that delivers for them.
In other negotiations and future negotiations, countries will look at what was conceded in these negotiations and take that as a starting point. We already have a UK-Japan trade deal that benefits Japanese exporters five times as much as UK exporters. On the Australia deal, the Government’s impact assessment shows a £94 million hit to our farming, forestry and fishing sectors and a £225 million hit to our semi-processed food industry. On the New Zealand deal, the Government’s impact assessment states that
“part of the gains results from a reallocation of resources away from agriculture, forestry, and fishing”,
which will take a £48 million hit, “and semi-processed foods”, a £97 million hit.
The Opposition will press four issues in Committee: farming and animal welfare; climate change; labour standards and workers’ rights; and, as has been raised in interventions, the role of the devolved Administrations in the process of negotiation and ratification, and the protection of geographical indicators. Let me deal first with farming and animal welfare. Labour is proud of our farmers and the high standards that they uphold, and we are confident in British produce to be popular in new markets, but we also recognise the need for a level playing field for our farmers.
The Government claim that they are trying to mitigate the impact of the two deals with tariff-free access being phased in. In the New Zealand deal, there are tariff rate quotas and product-specific safeguards that last 15 years. Similarly, in the Australia deal, the phasing-in period on beef and sheepmeat is 15 years, but the quotas set by the Government for imports from Australia are far higher than current imports. As I have previously pointed out in the House, on beef imports, when Japan negotiated a trade deal with Australia, it limited the tariff-free increase in the first year to 10% on the previous year. South Korea achieved something similar in negotiations and limited the increase to 7%. But the Government have negotiated a first year tariff-free allowance with a 6,000% increase on the amount of beef that the UK currently imports from Australia. On sheepmeat, they have conceded a 67% increase in the first year of the deal.
It is not as if other countries have not done significantly better—they have—so why did our trade Ministers not achieve the same as Japan’s and South Korea’s? Why have our Ministers failed to ensure that Australian agricultural corporations are not held to the same high standards as our farmers?
The Government have agreed to a non-regression clause on animal welfare. To be clear, that does not mean equality of standards across the two countries—it is not fair competition. What will actually happen is that meat produced to far lower animal welfare standards will get tariff-free access to the UK market.
Has it not been a long-standing problem—even within the EU—that different animal welfare standards have allowed our farmers to be undercut? On beef, might it not be farmers in the Irish Republic who face greater competition? After all, why would people want to send meat to the UK all the way from Australia rather than get it from just down the road? Should we not be looking at supporting our industry domestically, particularly through public sector procurement?
My right hon. Friend is right to raise what we should do domestically. He also illustrates another point. There is a history of trade negotiations, including on different standards of animal welfare, that Ministers could have taken heed of, sought to learn lessons from and put into these negotiations.
The now Prime Minister said that the Government had no intention of striking any deals that did not benefit our farmers, but the reality is that the vast majority of trade deals, which she trumpeted in her leadership campaign, were roll-over deals replicating existing EU agreements—not so much an exercise in driving a hard bargain as a national exercise in cut-and-paste with accompanying photographs on Instagram.
Perhaps it is no surprise that the Prime Minister’s own colleagues have been so critical of her approach to trade. The right hon. Member for Camborne and Redruth (George Eustice) as Secretary of State for Environment, Food and Rural Affairs said that he faced “challenges” in trying to get her to enshrine animal welfare in deals. No wonder the NFU said that it saw
“almost nothing in the deal that will prevent an increase in imports of food produced well below the production standards required of UK farmers”.
Is the right hon. Member aware of the article run by Politico in July indicating that the new Prime Minister was warned by her officials that the trade deals that she was negotiating with Australia and New Zealand would negatively impact on UK farmers?
I am grateful for that intervention. Yes, it seems that the Prime Minister ploughed on regardless, despite the clear advice that she was given.
The concerns that we are discussing must be taken seriously. We need to hear so much more from the Government about how they will support our farmers—that includes smallholding farmers, as were mentioned in an intervention by the hon. Member for Louth and Horncastle (Victoria Atkins)—about the robustness of animal welfare protections and about how we can prevent our farmers from being sold short for doing the right thing and upholding high standards. Ministers also need to be clear about what support farmers can rely on in the next 15 years so that they can navigate the transitional period. Those matters will be pressed by the Opposition in Committee.
Given the Government’s poor record in standing up for UK interests in negotiations, perhaps it is no surprise that Australia’s former negotiator at the World Trade Organisation said:
“I don’t think we have ever done as well as this”.
Is it any wonder that the National Farmers Union said, of the Australia agreement,
“there is little in this deal to benefit British farmers”?
As we consider the impact on our agricultural sector, why are the Government promising a monitoring report about two years after the agreement comes into effect and every two years thereafter? Why not every year? They could do that, particularly given the level of concern in our rural communities.
I turn to climate change. I realise that the Conservative party has a long-standing reliance on conservative allies from Australia, not least with the appointment of Tony Abbott to the trade board, but surely it has not signed up to some of the more extreme views that he and his colleagues hold on climate change, including that it is “probably doing good”. The current COP26 President, the right hon. Member for Reading West (Alok Sharma)—
On 1 December 2021, in this House, the right hon. Gentleman said that the Australian deal would reaffirm
“both parties’ commitments to upholding our obligations under the Paris agreement, including limiting global warming to 1.5°.”—[Official Report, 1 December 2021; Vol. 704, c. 903.]
Frankly, I would have cheered as the hon. Lady did if, a few weeks later, the deal had actually contained what the right hon. Gentleman said it would. However, the explicit commitment to limit global warming to 1.5° was not in the deal, despite what had been said. What went wrong in the final couple of weeks of the negotiation? Did Ministers simply give in for the sake of getting a completed deal? It is a lesson that tariff-free access to our UK market should not be given away easily. Looking at the concessions made by the Government in those final weeks, are people not right to worry that the Government are more interested in the press release announcing the completed deal than they are in standing up for UK jobs and livelihoods? It surely cannot be right that, as across the world we debate the devastating impact of climate change, we are not capturing that fully in deals like this. Not only is it dangerous to the planet, but it fails to recognise the huge business and export potential that climate change technology, innovation and services can create. It is not only environmentally unsound, but it also makes bad business sense. I implore Ministers to speak again with the new Administration in Australia to see what more can be done to take joint action on climate change, and to put it at the front and centre of the very well established and historic relationship between the two countries. I am sure that the recent change in Government in Australia will be beneficial in enabling that to happen.
In addition to climate change and the other areas that my right hon. Friend raises, the British Medical Association and the royal colleges are still very concerned about the impact on our NHS of the new trade deals being negotiated, with profit rather than patients being the prime focus. Is he reassured by the passage of the Bill?
My hon. Friend is absolutely clear that our NHS should never be on the table in any trade negotiation, but that is one of a number of significant issues that could have been properly raised and ventilated had there been a proper process of scrutiny.
Does my right hon. Friend share my concern that the Bill, not just the trade treaty, allows, through the negative procedure, Ministers to change procurement rules? We can say here that the NHS is not for sale and not on the table, and Ministers can say that, but this House does not have a cast-iron guarantee that we would have a vote before any change in procurement rules. An amendment to the Bill to allow that to be done through the positive procedure would be one commitment the Government could give to ensure Parliament gets a cast-iron guarantee.
My hon. Friend is absolutely right. If the Government do not give that commitment, we will bring forward an amendment in Committee to seek that commitment.
Can we slay this particular red herring, which was also mentioned in relation to the US trade deal? It is not about privatising the NHS. All the Americans said, and in this they were right, was, “We are not saying what you should do with the health service; we are saying that if you decide to privatise it”—which we should not do—“then we want to be treated as equal partners.” That has nothing to do with trade; it is to do with the Government’s health policy. We should not mix up the two, following a political campaign on it.
It is not the threat of the American Government to our NHS that worries me; it is the threat of the Tory Government to the NHS. My right hon. Friend is absolutely right to make that distinction.
I will give way once more and then I will have to make some progress.
I very much appreciate my right hon. Friend giving way; he has been very generous with his time. He mentions the threat of the Government to British agriculture—he is absolutely right on that—and the threat to the environment in some of the measures. Does he agree that there could also be risks for many small exporting businesses who face a series of hurdles to get over because of the Government’s trade policy?
My hon. Friend is absolutely right to raise the position of small businesses. Support for small businesses, particularly exporters, is something on which the Government really have to do far better.
I will take one more intervention and then I will have to make some progress.
I am very grateful. I speak because I am genuinely passionate. I do not know how many Members have actually exported to Australia as a small businessperson, but I have. The trade agreement makes it easier and better. Does the right hon. Gentleman agree?
I sincerely hope it does; absolutely. I am glad I took the intervention, because of the hon. Lady’s experience of exporting. I am sure she agrees with me that businesses have different amounts of resources to spend on supporting their exports and getting information about markets around the world, and that the Government should stand by all those exporters and make that process as easy as possible. The trade deal is, of course, a step forward, but we also must support our businesses in taking advantage of the opportunities she is speaking about.
Returning to climate change, we really must use future trade deals to drive forward this agenda and recognise the mutual benefit of tackling the biggest challenge of our generation.
On the third issue, labour standards and workers’ rights, Ministers need to go further, especially given some of the rhetoric briefed to the newspapers about bonfires of workers’ rights, and ensure that the Bill will not undermine workers’ rights, particularly in relation to Australia. The TUC said, in relation to the Australia deal, that the agreement
“does not contain commitments to ILO core conventions and an obligation for both parties to ratify and respect those agreements”,
and that it provides
“a much weaker commitment to just the ILO declaration”.
That is a profound error. We should not be setting off on the road of establishing new trade agreements across the globe that sell short our workers here, or indeed elsewhere. A race to the bottom benefits no one. Put simply, it is self-defeating to think that Britain would prosper via deals in which labour standards are a trade-off. We should be promoting the highest standards here and around the world, in the interests of our workers here and as a force for good around the world. It is what a Labour Government would do, working with all trading partners, including Australia and New Zealand, to drive up protection for workers and to have a trade policy that truly delivers for working people.
On the devolved Administrations, an issue raised on a number of occasions, the Government have spoken about trade benefiting all parts of the United Kingdom. Central to that, however, is taking into account the strengths of different nations and regions, and listening to their democratically elected representatives. That needs to be done in overall trade policy, in the negotiating mandate and negotiation process, and in ratification. That could be—I say this to the Secretary of State—formalised in a concordat or agreement on how the Government interact with the devolved Administrations. I urge the Secretary of State to look at that. We are also calling for the UK Government to undertake nation-specific impact assessments on trade deals. That would ensure a clear understanding of the implications and opportunities for the whole country, and also ensure that the deals can best align with the economic strategies of the devolved Administrations.
There is also—if I may just mention it for a moment—an issue around geographical indicators. As the International Trade Committee put it, the
“Government has failed to secure any substantive concessions on the protection of UK Geographical Indications in Australia.”
We should be backing our fantastic national producers, from Stilton cheese to Anglesey sea salt and Scotch whisky, and not failing to achieve concessions in this way.
Indeed.
I will not hold the Government to impossible standards and of course there are aspects of the deals that I welcome. In particular, the provisions to advance women’s economic empowerment across the New Zealand agreement are to be welcomed. Chapter 25 enables collaborative work between the UK and New Zealand to support women business owners, entrepreneurs and workers to access opportunities for international trade, complementing other areas, such as small and medium-sized enterprises—mentioned in an intervention—services, procurement, labour, development and digital trade. I was pleased to meet the Prime Minister of New Zealand on her recent visit, and I know that the New Zealand Government share ambitious climate goals and the need to uphold workers’ rights. However, after looking at the two deals and the differences between them, I observe that they seem to be more a consequence of the political persuasion of the Governments with whom Ministers here were negotiating, rather than a deliberate strategy on the part of Ministers.
On procurement, the Government will need to show how businesses here can bid in Australia and New Zealand. In particular, support needs to be given to facilitate the participation of small and medium-sized enterprises in the procurement process and to promote the use of paperless procurement. Suppliers must have easy access to information about procurement opportunities. Words and promises on that are not enough; it has to be made a reality.
Is my right hon. Friend concerned about the fact that we should allow British authorities to put conditions on procurement that pertain to labour rights, trade union rights, local recognition and the employment of workforces at a rate that is higher than the national minimum wage? It is important that the Government do not provide foreign companies with easier access to bid for British contracts than that which British companies would have.
My hon. Friend makes two very good points: first, we should ensure that our British firms have the support that they need to compete in the procurement process; and secondly, this should not be some sort of cloak beneath which there is a race to the bottom on workers’ rights. Both those things are important.
The concerns that have been raised about these two deals and the process of scrutiny amount to a problem with the Government’s approach to trade policy. There is no core trade policy and no clear strategy or direction. That criticism has been echoed by the International Trade Committee.
There has been a lot of talk from the Conservative party, but the delivery on trade agreements has been noticeable by its absence. There is no US trade deal in sight, and we await the India deal—as promised by the now previous Prime Minister—and the meeting of the target of 80% of UK trade being covered by FTAs.
Does the right hon. Member recognise that we have started negotiations on the CPTPP and with the Gulf Co-operation Council, and that we have started negotiations and to look into the Canada agreement? It is not technically that fair to say that we are not ploughing ahead with signing as many trade deals as we can.
I am holding the Conservative Members to the standard that they promised in their manifesto. It is not the standard that I have set, but the standard that they set when they went to the electorate in 2019.
Is not the problem that, for too long, Britain has been led by a directionless and, frankly, distracted Conservative party? Conservative Members spent months propping up a discredited Prime Minister. They decided to leave him in office over the summer while they fought among themselves, leaving people up and down the country facing economic devastation.
A dynamic trade policy that aligns with a clear industrial strategy is vital to boosting our appalling levels of growth and averting recession, yet we find that the Australia deal does not even mention the specific target on climate change, despite that being one of the great challenges of our generation.
As an Opposition, we will of course not vote down this short Bill. However, if we were to attempt to change the deals that have already been agreed, or if anyone went back on their word on them, that would further sully our international reputation, which, frankly, has already been badly damaged by the conduct of the Conservative party. However, we will push a number of amendments in Committee to support our farmers and to ensure that exporters have the support they need. The Government must urgently learn lessons from where things have gone wrong in these negotiations.
An additional amendment that might be useful would be to change the requirement for secondary legislation so that we enable the Secretary of State to introduce it only when they “must” comply according to the trade deal and not at their whim, whereby they “can”. That change from “can” to “must” will be vital to ensure that there is not an open door for Executive action.
My hon. Friend makes another very good point about the inadequacies of the scrutiny process.
Access to British markets is a huge prize for many other global economies. The Government have to stop selling us short and put in place a proper, core trade strategy that will allow our world-leading businesses to thrive and, for once, truly deliver for communities across the country.
(2 years, 5 months ago)
Commons ChamberThank you, Mr Speaker. I join you in wishing Penny and Isabel well for the future. I also welcome the Minister to the Dispatch Box.
I ask this question in place of my hon. Friend the Member for Harrow West (Gareth Thomas), who has covid. I am sure that the whole House will wish him a swift recovery. The tonnage of UK trade in food, feed and drink with both the EU and non-EU countries has fallen and has been steadily falling since 2019. Looking back at the record of this Government over the past three years, does the Minister accept that they have failed to make Brexit work?
I am sure Government Members wish the hon. Member for Harrow West (Gareth Thomas) a speedy recovery as well.
Tonnage is, of course, only one measure. I note that, for the year to March, the value of British exports actually increased. [Interruption.] It will be a combination of growing markets, a growing number of exporters and a greater ability of exporters to obtain the price for their exports. That is what we on the Conservative Benches are focused on.
Never forget the Royal Lancashire agricultural show. I call the shadow Secretary of State.
We Opposition Members have long argued that the Government are not doing enough to support exporters. It is now clear that the former Minister, the hon. Member for Finchley and Golders Green (Mike Freer), absolutely agrees. He argued that the trade access programme is underfunded and said of it, “We support too few shows, we don’t send enough business, our pavilions are often decent but overshadowed by bigger and better ones from our competitors.” He is absolutely right, is he not?
It was a pleasure to have the former Minister, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), in the team; he has been a champion for growing our new tools. Brexit gave us opportunities to own our trade policy and to start to really champion and talk to our businesses about where they can find opportunities across the globe, whether for goods or services. We have a fantastic suite of tools in the export strategy, which we launched in November last year, and we can now really push on with that. As with everything, perhaps Labour Members can tell me where I can rapidly find a great deal more cash to make these measures much more effective. In the meantime, we have put together a fantastic fund that we will continue to use to encourage our businesses to trade.
Order. These are topical questions, not “War and Peace” questions. Nick Thomas-Symonds.
The truth is that the Government have fallen behind woefully on their manifesto commitment to have 80% of UK trade covered by free trade agreements by the end of this year, and there is no comprehensive US trade deal in sight. Something has been going severely wrong. I welcome back the Minister for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), after her efforts in the Tory leadership contest, but the Secretary of State is far less complimentary about the right hon. Member’s efforts in the Department. She said:
“There have been a number of times when she hasn’t been available, which would have been useful, and other ministers have picked up the pieces.”
Mr Speaker—[Interruption.] Conservative Members shout “Shameful” at me, but these are the Conservatives’ words about each other, not my words. The reality is that it is the British economy that has been suffering. Our projected growth is the lowest in the G7 apart from sanctioned Russia. Is not the truth that trade policy is yet another Tory failure?
Order. These are topicals. Topicals are meant to let those people who did not get in earlier ask a question. They are about Back Benchers, not about Front Benchers indulging themselves at the expense of others. Secretary of State—briefly.
(2 years, 5 months ago)
Commons ChamberI am grateful for the granting of today’s urgent question and I congratulate the hon. Member for Totnes (Anthony Mangnall) on securing it.
The Government’s failure to make adequate parliamentary time available for a debate on this trade deal is completely unacceptable and a clear breach of promise. Lord Grimstone wrote in May 2020:
“The Government does not envisage a new FTA proceeding to ratification without a debate first having taken place on it”.
The Select Committee has, rightly, been scathing about the way the Government have handled scrutiny on this issue and about their premature triggering of the 21-day CRaG process without full Select Committee consideration being available to Members. Today’s clear rejection of an extension to the CRaG process is, yet again, unacceptable behaviour from the Government.
The truth is that Ministers are running away from scrutiny. Might Ministers be running away because of the Select Committee’s report stating they lack a “coherent trade strategy”? Or might the Government be hiding from scrutiny because of the chaos at the Department itself? Members do not have to take my word for it. Yesterday, the Secretary of State was saying of her own Minister of State for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), that there has been a
“number of times when she hasn’t been available which would have been useful and other Ministers have picked up the pieces”.
That is her own Minister. Maybe the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena), is one of the Ministers who has been picking up the pieces. Or might Ministers be hiding because of the lack of progress in their trade policy, with no comprehensive trade deal with the US in sight?
There are profound consequences for our agricultural sector from the Australian deal that Ministers should be open about and accountable for. Is it any wonder that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”?
To put it quite simply, when are Ministers going to stop running away from their own failure?
I think that, actually, we have a very good deal that the Government should be proud of and which will benefit the British people. As I said—perhaps the right hon. Gentleman was not listening—this will increase trade with Australia by 53%, boost our economy by £2.3 billion and add £900 million to household wages in the long run. In fact, £132 million of exports already go from Wales to Australia. We want to boost that even further to benefit the people of Wales and his constituency.
As for what my noble Friend Lord Grimstone said, processes for the other place are a matter for the other place. It is clear that the Labour party is so focused on process that they are not focused on securing the benefits for the British people of Brexit.
(2 years, 5 months ago)
Commons ChamberI am grateful to the Secretary of State for her statement and for advance sight of it. The extension of safeguards will come as a welcome relief to the steel sector. It is not anti-competitive to provide a level playing field for our steel industry. I also support the decision to exclude Ukrainian steel.
Labour backs our steel communities up and down the country. Our steel sector is foundational for our economy; we must support it, now and as we transition to net zero. However, it is regrettable that resolution of the issue has once again gone to the eleventh hour, just as it did when the present Foreign Secretary extended the safeguards last year, and that the Secretary of State did not even attend the Select Committee this morning to face scrutiny.
Labour has called on the Secretary of State to extend the safeguards, but also to change the law in advance of this latest decision. When the same safeguards were extended last year, Labour called on the Government to introduce emergency legislation, which we would have supported, so that the national interest could be invoked by Ministers in relation to Trade Remedies Authority advice. It is too weighted towards the interests of importers rather than those of domestic industry, and too narrow in scope in that it does not give sufficient weight to issues such as regional employment and support for nationally important industries, and, indeed, the international context for these safeguarding decisions. The United States and the European Union have such measures, and in the case of the EU, the World Trade Organisation has not found the extension of the safeguards to be in breach of its rules. In short, if there is to be a challenge at the WTO, it will be a mess entirely of the Government’s own making.
Although, of course, I thank the Trade Remedies Authority for its work, there are still issues with its framework.
Ministers appeared to agree with Labour’s analysis when, a year ago, the Government announced a wider review of the Trade Remedies Authority framework “as an urgent priority”, in the words of the then International Trade Secretary—the present Foreign Secretary, the right hon. Member for South West Norfolk (Elizabeth Truss). Well, it has not been a priority for Ministers. That review has disappeared into the long grass, leaving the country in the position we are in today. Had the review been completed, with wider factors eligible for consideration by the TRA, the Secretary of State would be in a much stronger position, just like other major economies that have steel tariffs in place and have had no problems at the WTO. Ministers knew that this issue of extending the safeguards was coming, but they did not plan for it properly, either in terms of our domestic law or internationally, by working with those countries that have extended safeguards without any problems.
Let me also put on record that the last-minute rush to extend safeguards in no way makes up for the shortcomings in support for the steel industry from this Government, and that Labour has set out plans to secure the industry’s future for years to come by investing £3 billion in the transition to net zero over the next 10 years.
May I ask the Secretary of State when that wider review of the Trade Remedies Authority framework will be completed? May I also ask whether she intends to introduce further legislation once the review is completed? Will she publish all the TRA papers relating to this decision, and will she tell us what lessons have been learned from the WTO ruling on the EU safeguards that have been extended? Finally, can she reassure steelworkers and their families that the framework will have been fully reformed before this matter is considered again?
I am grateful to the right hon. Gentleman for welcoming the statement and supporting the Government’s decision to extend the safeguards applying to these five categories of steel, but I do not agree with his claim that this has been done in a rush. The statement has been made today because the rollover is to take place on 1 July, and it was therefore appropriate to make an announcement this week.
The right hon. Gentleman made an interesting point about the EU’s choice to maintain the safeguards after it was found not to be in breach of the rules. I was unable to be present at the Select Committee this morning—frustratingly—because I was indeed dealing with the international part of these processes as much I could. I will continue to do so over the next few days in order to ensure that our WTO partners and friends understand the reasons for my decision, which I am pleased to hear is supported by the right hon. Gentleman and the Labour party. Obviously we stand ready to take up any concerns that WTO members may have about the decision, but I am certain that it is the right decision, enabling us to avoid as much harm or risk of injury to our steel producers as we can.
The TRA, as an independent organisation, has done an excellent job in examining the challenges faced by the industry. It is also working apace on many issues brought to it by British companies that have concerns, and I am pleased to see it up and running on a daily basis. I meet its representatives regularly, but its submissions to me are made independently, which allows me to make my decisions more broadly.
(2 years, 6 months ago)
Commons ChamberI thank my right hon. Friend for her question. She is one of the authors of the appropriately named TIGRR report—the report of the taskforce on innovation, growth and regulatory reform—which pointed to some great ideas and focused on how we can ensure that our regulation is enabling, not a barrier to deepening trade ties and opening up opportunities for our citizens. In addition to our work on our domestic regime, we are, as I said earlier, working with other nations and getting our regulators to talk together, so that we can improve our international trade opportunities.
Mr Speaker, I echo your words about Jo Cox, whose ongoing legacy is testament to her remarkable dedication and compassion. Members across the House will be thinking of her family today.
Steel is a foundational industry for our economy, yet Members across the House will be aware of the difficulties that steelworkers have been through in recent years, from the US tariffs to the current cost of living crisis. The clock is ticking for the UK steel sector, with just 14 days left for the Secretary of State to make a decision on whether current trade safeguards remain in place. Will the Minister of State help to remove the uncertainty by urging the Secretary of State to make that decision today?
The Secretary of State needs no urging, but it is important that she is able to make the right decision on this. The steel safeguards reconsideration is ongoing. I know the deadline is looming. My right hon. Friend is carefully considering all the information that has been presented to her. Obviously, we expect a decision very shortly. We understand its importance to the steel sector, both producers and end users.
To say that a decision is expected shortly simply is not good enough. To ensure that this vital industry can survive, Ministers must stop dragging their feet and act urgently to safeguard the steel sector. Jobs and livelihoods in our communities are at risk. Labour backs UK steel. Does the Minister of State not accept that the reality is that, with time passing, Ministers are too busy propping up the Prime Minister to act decisively for the people?
With regard to the right hon. Member’s last comment, it is always a good indication that we do not have to look at the ONS statistics to know that the trade numbers are going the right way when the Opposition spokesman wants to ask questions that are not related to trade. This Secretary of State has done a huge amount to support the steel and aluminium industries of the UK, not least in managing to renegotiate the decision on section 232 tariffs. She will continue to do that and she will make an announcement on the safeguarding issue very shortly.