Australia and New Zealand Trade Deals

Sarah Green Excerpts

Monday 14th November 2022 Commons Chamber

[Sarah Green (Chesham and Amersham) (LD)]

It is a shame that this is not the substantive debate, culminating in a vote on a substantive motion, that many have called for, because in the recommendations made and questions posed so far in this debate, hon. Members on both sides of the House have demonstrated the value of proper parliamentary scrutiny of major treaties.

According to the impact assessment of the New Zealand deal, it will have a limited but positive impact on the UK’s economy. Understandably, businesses are keen to capitalise on the new opportunities. The Federation of Small Businesses is right to say that for our small exporters—and those wishing to start exporting—to take full advantage of new opportunities, the Government must ensure they are supported with the practical changes that will allow them to succeed. I therefore welcome the Government’s commitment to provide “practical advice and support” and dedicated websites for small businesses.

I would, however, like to ask for more detail about the nature of that support. Adapting to changes in exporting to the EU post Brexit is an issue that several local small business owners in Chesham and Amersham have raised with me. They have pointed directly to the inadequacy of Government support services, with one local business telling me at length how it understood the system better than the so-called experts advising it. I hope lessons have been learned and that the support on offer in relation to these new agreements will be of higher quality than previous efforts.

The impact assessment of the New Zealand deal states that the marginal net gains come at the price of a reallocation of resources away from agriculture, forestry, fishing and semi-processed foods. Of course it is unrealistic to expect that every sector will be a winner in every trade agreement, but it is important that we pay attention to those who will not benefit and will potentially even lose out, so that we can support them and the communities that rely on them.

In order to do so, I support the International Trade Committee’s call for the Government to alter their economic modelling to provide a more detailed assessment of how deals will impact different sectors of our economy and the diverse regions and nations that make up the United Kingdom. In Wales, for example, the trade deals with Australia and New Zealand may have a devastating impact on its world-class lamb industry. The impact would not be limited to the industry itself, but would also affect the communities underpinned by the lamb industry, including many Welsh-speaking communities.

Indeed, if we are to judge UK trade policy by the two new agreements we have signed so far, it appears that farmers are set to lose out the most. The National Farmers Union warned us that the Australia deal set a “dangerous precedent” for future free trade agreements as far as farming is concerned. The New Zealand deal only furthers those concerns: with the cost of producing lamb 63% lower in New Zealand than in the UK, it is little wonder that our Welsh lamb farmers are concerned about this agreement and the tariffs it eliminates. Taken together, the impact of both deals on UK farmers, who already face rising production and labour costs, will be stark.

One way the Government could provide reassurance is by outlining an overarching trade strategy, as the hon. Member for Rochdale (Tony Lloyd) said. Agreements do not exist in a vacuum and nor do their impacts. A clear, overarching trade policy should include a vision of the opportunities that new UK trade deals will bring to all sectors and regions of the country. It must outline our economic ambitions while also including minimum standards on human rights as well as environmental, labour and safety standards.

Importantly, that strategy must also act as a guide for negotiators, setting out a clear benchmark for success in negotiations. We cannot continue selling out entire industries for marginal overall economic gain, nor should we continue negotiating agreements in the absence of a strategic goal, and we must not allow agreements to come into effect in the absence of proper parliamentary scrutiny.