Trade Bill

Nigel Evans Excerpts

Tuesday 9th January 2018 Commons Chamber

[Dr Fox]

I do. As the hon. Lady knows, this Bill is not concerned with new trading agreements, but when the Government come forward with the mechanics for such agreements, I believe that it will be in the interests of all to have as open and wide a consultation as possible—perhaps even more open than has been traditional in other countries.

[Mr Nigel Evans (Ribble Valley) (Con)]

There has been much speculation over several weeks about the possibility of the United Kingdom staying in the single market or the customs union. The Secretary of State talks about an exciting world in which we will be able to do trade deals with a number of other countries. Would we be able to do that if we stayed in the single market or the customs union?

[Dr Fox]

We know that we would not be able to do that if we were constrained by the customs union, but I say to my hon. Friend that we need to look at where the growth in global trade is going to come from. According to the International Monetary Fund, about 90% of global growth in the next 10 to 15 years will occur outside the continent of Europe. It therefore makes sense for the United Kingdom to have the freedom to maximise our ability to trade with those countries whose economies are growing the fastest, if we want to generate the income that this country will need for the spending projects that we all seem to value.

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[Hannah Bardell]

I thank my hon. Friend for that intervention. I am not given to agreeing with Professor Tomkins, but on this matter I do.

The SNP had a manifesto commitment to call for greater transparency in any proposed international trade deals following Brexit, with the UK and Scottish Parliaments being given a say. As I am sure the Secretary of State will know, there are 111 powers returning from the EU that intersect with the devolution settlement in Scotland and that must come back to Scotland and not be seized by Westminster.

The Law Society of Scotland has been much quoted, but I shall quote it again because, interestingly, it has highlighted the importance of extending a whole of governance approach to trade negotiations, and we very much endorse that. The Secretary of State will also know that we held a roundtable this morning with my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford). The Leader of the Opposition was sorely missed; we would have loved to have seen him there. The Law Society of Scotland has said:

“We would urge further consideration of how trade negotiations will be handled where they intersect with the powers of the Scottish Parliament and other devolved legislative authorities where any proposed trade agreement will affect an area of devolved competence.”

Devolved Governments inevitably have different priorities. Indeed, as the hon. Member for North Down (Lady Hermon) has said, there is a country in the UK that does not have a Parliament, and we need this Government not to be making deals or imposing direct rule by the back door; they need to be up-front about what they are doing and how they are going to ensure that the devolved nations of the UK have their say in this process.

They have different priorities, and therefore trade negotiations must be carried out with their involvement. For example, the Scottish food and drink sector has had record growth year on year and has outstripped the rest of the UK. Under the protected geographical indication—PGI—scheme, the EU guarantees no trademark interference with the name of an area, specific place or, in exceptional cases, a country.

[Mr Nigel Evans]

The hon. Lady will have heard from the Secretary of State that our exports have increased dramatically since the decision of the British people to leave the EU. What aspects of the rolling over of the trade deals that already exist between the EU and other countries does she object to in this Bill?

[Hannah Bardell]

I am not sure that I have referred to that at all; what I am referring to—[Interruption.] The point I am making is that the powers that will be given to this Government and the deals in place and the powers that intersect with the devolved nations will not be protected, so any future trade deals might well be imposed or impinged on, and our powers will be diminished.

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[Geraint Davies]

The Minister tells us that third parties are not behaving like that at the moment, so he implies that they will not behave like that in the future—what false logic; what naivety.. That is absolutely ridiculous. Any negotiator or country that sees Britain with its back to the wall, turning away from the biggest market in the world, will ask for more. If they did not say that they will give the money to Spain or wherever, they would not be doing their job. What is more, they will be dragging their heels, because they will know that the clock is ticking and that we need to get something sorted out. They have everything on their side. The Minister is so naive. All the negotiations over the past 40 years have been done by EU negotiators. We do not have the negotiating capacity. He is smiling glibly and pretending that it will be all right on the night, but it will not. People will remember what he has said today and how naive he was.

This Bill is simply not fit for purpose. It takes two to tango, and the Bill presumes, as the Minister does, that the EU will tango and not trip us up in the process.

The other facet of the Bill is secrecy and hiding what will happen. My hon. Friend the Member for Brent North (Barry Gardiner) said that the US-UK deal will be hidden for four years, and there are all sorts of fears about our having to import substandard food products from the US, including chlorinated chicken, which the Secretary of State looks forward to eating—his name is Fox—and hormone-impregnated meat. In the US, medicines are introduced into meat and asbestos is for sale. All those standards may end up coming through the back door under the cloak of darkness in these secret deals.

I know that the Bill is not about the US-UK relationship at the moment, but the Minister and the Secretary of State have mentioned CETA, which already enables certain changes to occur. There is a real risk that we will take on some of these problems. Indeed, there is a real risk that we will lose out on opportunities that the EU is creating, particularly in the trade relationship with Japan. That trade relationship will involve 600 million people and comprise 30% of the world’s GDP. The Europeans have built in environmental conditions, particularly through the Paris agreement, and other rights and protections that we enjoy in the EU, and the real problem is that downstream, due to both changing the existing bilateral relationships and as part of future trade relationships, the protections and rights we enjoy through our trade relationships in the EU will be bargained away. Whether it is human rights, environmental rights or consumer rights, those things are now inadvertently on the table, and that table is under the cloak of darkness, as there will not be public scrutiny.

There should be a guarantee of scrutiny, and we should ensure that the rights and protections we enjoy in the EU are sustained in future trade relationships. In my view, we should stay in at least a customs union, and ideally the customs union and the single market.

[Mr Nigel Evans]

The British people voted to leave the European Union, and they were told before and during the referendum that leaving the European Union meant leaving the single market—[Interruption.] Yes, they were. The Prime Minister at the time, David Cameron, said exactly that.

The hon. Gentleman clearly wants to use smoke and mirrors to drag Wales back into some form of European union in which we have to pay money to access the single market and the customs union. Surely that is money that should be spent on the NHS in Wales.

[Geraint Davies]

As we know, 51% of people currently want to remain while 41% want to leave. On the day, it is the case that the people of Wales voted as the hon. Gentleman said, but he will also know that Wales is the beneficiary of billions of pounds of EU, convergence funding, that 70% of our exports go to the EU and that 25,000 jobs in Swansea bay rely on the EU. It is very much in the interests of Wales to be in the single market and in the EU, and that is increasingly the view of the people of Wales. The people of Swansea West certainly voted to stay in the EU.

As everything unfolds, people are essentially saying, “I voted for more money, market access and a greater say, but I find that I am not getting any of those things. I am not getting what I was promised, and I want a final say on the exit deal.” People should have that final say.

Specifically on the money, we know from the Financial Times that we are losing £350 million a week, that the divorce bill will cost £1,000 per family and that the increase in inflation is costing the average worker a week in wages. That was not what people voted for, and people are worried about these deals. I have been contacted by Liberty, for instance, about the loss of workers’ rights and environmental rights, and even about issues such as slavery.

We want open and transparent trade agreements. We want the protection of being in the single market and the customs union, and we want people to have the right to a final say—to think again—on the basis that the facts have changed. That is what democracy and a sensible future for Britain is about.

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[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

Had the Secretary of State been in his place, I would have reassured him that the Labour party knows that the Bill is a deliberately limited piece of legislation concerned with continuing the existing trade arrangements after Brexit. However, the fact that the Bill is about transmuting EU agreements into UK law does not mean that we do not have questions about, first, the process the Government are adopting; secondly, the degree of parliamentary scrutiny of the arrangements, or lack thereof—after all, the Institute for Government recommended that the Bill should ensure that there is parliamentary time for debate and scrutiny, but the Government seem to have ignored that; and thirdly, the possible effect of the Bill on future trade deals.

The Opposition recognise that the UK will need to formalise trading relationships with those third countries that have a trade agreement with the EU because, should Brexit happen, we will no longer be party to those agreements. However, the Government intend to award Ministers sweeping Henry VIII powers to amend retained EU law, so that they can fast-track the agreements. I join my colleagues in opposing the use of Henry VIII powers for such fast-tracking, especially when those powers might be used to water down or remove standards, safeguards, rights or protections. We heard no reassurance from the Secretary of State on that.

We want a truly independent Trade Remedies Authority to help to protect UK industry, but that authority should report directly to Parliament rather than to the Department. That seems so obvious that I do not know why the Minister has not already caved in on the issue.

The Bill awards to HMRC new powers to share limited taxpayer information with international bodies and Departments, including the Department for International Trade, but the circumstances in which the Government intend those powers to be used has not been made clear and the wording of the legislation is opaque. More clarity on that from the Minister would be helpful.

Many organisations are saying that the Bill is a missed opportunity to align Britain’s international trade and international development policies. The Government have been clear that trade is a route out of poverty, so they should be saying through the Bill more about how the sustainable development goals in particular could be used to achieve that aim. The Fairtrade Foundation has raised the potential effect of Brexit on Fairtrade, but it seems the Government have not fully considered it. The fair trade market is currently worth £1.6 billion and is dependent on an effective trading relationship with the EU27. Many fair trade goods are exported to one EU country before being processed and re-exported to other EU countries. It is not clear whether the Bill takes that into account.

[Mr Nigel Evans]

Does the hon. Lady believe that there will be an opportunity in future deals for value-added goods such as chocolate and processed coffee to come into the UK from continents such as Africa, rather than just the raw materials coming in and us adding the value?