Transatlantic Trade and Investment Partnership

Rachael Maskell Excerpts

Thursday 10th December 2015 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

Will the hon. Gentleman give way?

[Guto Bebb]

No. I have only a minute left.

The fact that I have a drinks producer in my constituency who is unable to put in a second production line in order to get the correct bottle size is a classic example of the way in which regulations work against small businesses and to the advantage of larger businesses.

Finally, when it comes to being an MP from Wales, let me say categorically that the denial of Welsh lamb from my constituency to the US consumer is utterly disgraceful. The agricultural sector is broadly clearly supportive of this treaty. Yes, we need to scrutinise it; yes, we need to ensure that the House has a say in the agreement; but we should try to grab the opportunity for growth in all parts of the United Kingdom, and not least in Wales.

--- Later in debate ---

[Christian Matheson]

I do not agree. I think that it is largely for the benefit of private corporations. The hon. Gentleman and I will have to differ.

I want an economic system that works for the people, not one in which the people work for the system. TTIP will enshrine the dominance of global corporations, which have driven down wages, moved jobs into areas where they think they can pay people less, increased personal and family insecurity, and—let us be clear about this—made tax-dodging into an art form.

[Rachael Maskell]

Will my hon. Friend give way?

[Christian Matheson]

I am about to end my speech, but I will always give way to my good friend the Member for York Central.

[Rachael Maskell]

I am grateful to my hon. Friend. Does he share the concern that the American Federation of Labour and Congress of Industrial Organisations has expressed about the North American Free Trade Agreement, which has brought about the loss of so many jobs and has had such a negative impact on the American economy?

[Christian Matheson]

My hon. Friend and I have known each other for a good few years, and we were both involved in the creation of one of the first global trade unions, along with American unions. The United States was mentioned earlier, and I am certainly not anti-United States, but my contacts in the American trade union movement are absolutely opposed to TTIP because they believe that their jobs and their terms and conditions—[Interruption.] The Minister says, from a sedentary position, that that is not true. I should like to know when she last spoke to any American trade unions, because I speak to them quite regularly.

I believe that the interests of the Conservative party are now enshrined in the large global corporations and the City of London. I believe that we could and should design a trade deal along the lines of TTIP that could benefit ordinary people, but TTIP is not that trade deal.

My right hon. Friend the Member for Warley (Mr Spellar) talked about the European Union. One thought has occurred to me, although perhaps I am wrong; no, surely not. TTIP could well be a Trojan horse for those who would have us leave the European Union. The EU, for all its faults, imposes social, economic and environmental constraints on corporations. TTIP would provide the free trade deal that is sought by so many of those who want us to leave the EU, without any of the social and environmental benefits.

--- Later in debate ---

[Jonathan Edwards]

I am grateful for that half-clever intervention. The biggest danger to our relationship with the EU is Tory policy on the needless referendum that we will be having in the next year.

When I spoke on TTIP 22 months ago, I set out many of the concerns that I and my party, Plaid Cymru, had regarding the proposal as it stood then. I set out our concerns about the highly controversial ISDS as well as the potential for the agreement to allow for the privatisation of public services despite the public’s desire to keep those services in public hands, not to mention the concerns over lowering environmental and safety standards through so-called harmonisation.

The economic benefits of TTIP are contested. A study for the Department for Business, Innovation and Skills estimates that the gains for the UK would be £4 billion to £10 billion annually by 2027. However, the average tariffs on trade between the EU and the US are already relatively low. Therefore, many of the proposals within TTIP and much of the negotiation are centred on non-tariff barriers to trade, such as product regulation and standards, which would need to be harmonised, and measures to protect the rights of investors.

[Rachael Maskell]

Does the hon. Gentleman agree with the Tufts University analysis of TTIP, which concludes that we would suffer a net loss as a result of the proposals for the future of our economy?

[Jonathan Edwards]

I have not read that report, but I take the hon. Lady’s word for it.

The estimates overstate the gains, and alignment of regulatory standards in areas such as consumer safety, environmental protection, procurement and public health could have substantial social costs. Wales’s existing trade with north America has grown rapidly over the past decade and a half as a share of our overall exports, without TTIP in place. Of course, a trade deal could help to grow that even further, but that should not happen at any social cost, and certainly not at the risk of further hollowing out Wales’s industrial base. Any trade deal that does go ahead should definitely not be a large corporation closed shop in relation to trading across the Atlantic, as TTIP most definitely appears to be at present. Some 99% of Welsh companies are SMEs, making up the backbone of the Welsh economy. In any trade deal they deserve as much of a look-in as the big companies.

Alongside the potential for the default privatisation of public services such as health, the most controversial element of TTIP so far has been the ISDS provisions, which would allow investors to bring proceedings against Governments who are party to the treaty. The proceedings would be heard in tribunals outside the domestic legal system, meaning that Governments might determine policy with an overriding fear of being sued by corporations—a point made earlier. I said the last time I spoke on TTIP, and I will say again, that the US and the EU already have advanced legal systems. Neither is a banana republic, and corporations should abide by the same well-functioning legal system as the rest of society.

Throughout Europe, including here in Wales and the UK, Governments have been listening, and the UK Government and the European Commission have sought to allay concerns via a new proposal for an investment court system, published only last month. It appears, though, that they are only changing the name. My original point is relevant and remains valid. We already have a highly advanced court system in existence in all the places within the reach of the proposed trade agreement. The proposals for any alternative shadow legal system should be dropped immediately. Not to do so is an affront to democracy.

Given that public services are devolved, the devolved legislatures and Governments of the UK should have a veto over TTIP.

--- Later in debate ---

[Ronnie Cowan]

I agree with my hon. Friend.

My Scottish National party colleagues, whether MSPs, MPs or MEPs, have held a consistent position on TTIP: although Scotland might benefit from a free trade agreement with the United States, we require a number of assurances before we can give the proposals our full support. First, under no circumstances can TTIP threaten NHS Scotland with privatisation. I previously wrote to the Prime Minister regarding that specific issue, as did the Scottish Government, who urged the UK Government

“to ensure that the NHS is fully and explicitly exempt from TTIP and, if that is not the case, to use its veto at the European Council to prevent TTIP progressing”.

The UK Government’s response expressed the opinion that TTIP poses no threat to the NHS. I know that my constituents will not find the assurances of a Tory Government sufficient evidence that the NHS is safe from privatisation.

Unionist Members will no doubt say that health is devolved to the Scottish Parliament, but I remind them that any privatisation of health services in England will have associated funding implications for Scotland. It is unfortunate that no clear evidence has been provided regarding the protection of NHS Scotland and that we are instead reliant on an assurance from the EU and the UK Government that we should not be concerned. Legal advice sought by Unite the union was quite clear in concluding that the NHS is:

“Included in the material scope of the TTIP”.

The concerns of many people in Scotland about TTIP and NHS privatisation could easily be alleviated by an explicit opt-out for the NHS in the text of the agreement. As yet that has not been forthcoming. The SNP will continue to engage and advocate for NHS Scotland to receive adequate protection.

[Rachael Maskell]

Would it not be better to have a positive list of what is included in TTIP, rather than a negative list of what is excluded?

[Ronnie Cowan]

I could not argue with that. Either way, we need to have the assurances in writing.

Worryingly, there are already examples of Government policy changes resulting in legal action from foreign investors, including in the health sector. We must do everything possible to oppose such a situation in the UK’s nations. I would add that the European Commission’s proposal to replace the investor-state dispute settlement mechanism with the investment court system is little more than a rebranding exercise that will not alleviate the concerns that have been raised. It is unclear to me why an entirely separate legal mechanism is required to “protect” investors from national Governments. Foreign investors should not have the privilege of a special court, and multinational corporations, like individuals, should continue to operate entirely within the existing legal framework.

For those reasons, the text of any TTIP agreement must be subject to parliamentary scrutiny before the UK votes on it at European level. The Scottish Parliament must be part of that process, as Holyrood is best placed to determine the effects of any agreement on Scotland.

I have no objection in principle to free trade agreements, but it must not be free trade at any cost. The potential threat to NHS services, the transfer of powers to the private sector and the lack of transparency in the negotiation process are all areas of serious concern. It may yet be possible to reform TTIP in a positive way, but that can be done only when elected representatives have a more active role in drafting the agreement. Until the European Commission recognises these concerns, I am unable to see how any elected representative can give unqualified support to TTIP.