Free Trade Agreements: Cameroon and Ghana

Debate between Sarah Olney and Chi Onwurah

Wednesday 9th June 2021 Commons Chamber

[Sarah Olney]

The hon. Gentleman is precisely right. The lack of scrutiny means that the events that he describes do not come to light and that we do not get an opportunity to express our view as a British Parliament on whether that is acceptable.

It is not only MPs to whom the Government are not listening. Ghana and Cameroon are part of the Economic Community of West African States, which is composed largely of least developed countries that have been automatically offered tariff-free access to the UK market under the Everything but Arms scheme. The Conservative Government had previously made it clear that regional trade was one of their major priorities for African economic development through the support of the UK’s aid budget, namely £4 million between 2010 and 2016, yet Ghana’s requests for an approach that would not cut across its ECOWAS commitments were consistently rebuffed. The liberalisation schedule will see Ghana beginning to open its markets to UK goods immediately, on a timetable that is at odds with its neighbours in the ECOWAS customs union. That totally undermines regional trade in west Africa.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

As chair of the all-party parliamentary group for Africa, I congratulate the hon. Lady on holding this really important debate that the Government have prevented. On her last point, does she agree that by rolling over individual trade agreements, the UK is losing the opportunity to put in place a generalised trade agreement with the combined African trade area, which could be pro-development and could support African countries through trade in a much more positive way?

[Sarah Olney]

I thank the hon. Lady for making that point. The point that I would like to make is that there are so many missed opportunities in this roll-over deal; the one that she mentions is absolutely an example.

With nothing stopping UK goods entering Ghana duty-free and leaking into neighbouring countries, those countries will need to introduce new border checks, which will significantly set back progress towards improved continental trading links. Does the Department have plans to do an ex post assessment of the impact of the deals on regional integration? If their effect is found to be damaging, will the Minister commit to reviewing them?

Not only have the Government not listened to Ghana, but at the beginning of this year, when roll-over deals had failed to be agreed on time, they imposed tariffs on imports from Ghana and Cameroon. In January, Brexit tariffs were imposed on a shipment of Fairtrade goods from Africa that arrived into Portsmouth, including £17,500 on shipments of bananas from Ghana. The UK has worked hard through the Fairtrade Foundation to ensure that the food coming into this country is of the same standard that we would expect our own producers to sell elsewhere.

The Government refused to waive or reimburse the tariffs, placing huge extra costs on importers, namely Fairtrade fruit and agriculture co-operatives. That totally undermines the efforts of the Ghanaian banana industry to protect the livelihoods of the many thousands of workers and their communities who rely on tariff-free access. It is outrageous that we are penalising developing countries that are improving labour rights, environmental standards and food standards. We should be supporting them.

[Chi Onwurah]

Will the hon. Lady give way?

[Sarah Olney]

I might make some progress, if that is okay.

Looking forward, it is essential that Ghana and Cameroon be supported through the implementation of these trade deals and any future trade facilitation. The UK is reneging on its obligations set out in the roll-over agreement to provide aid for trade. Ghana, Cameroon and many other countries in the Everything but Arms scheme have to change their export procedures to meet HMRC import procedures. We are imposing that cost on them. Why should they bear it? Can the Minister confirm whether Ghana or Cameroon will receive any aid to support the implementation of these deals?

In a letter to the hon. Member for Rotherham (Sarah Champion), the Foreign Secretary implied that Cameroon will receive no bilateral aid this year. Are the Minister and his Department not concerned that that will have a negative impact on the implementation of the deal? The UK is currently not even meeting the financial burden that we have imposed, let alone further trade facilitation costs. Will the Minister commit to protecting TradeMark East Africa and future trade facilitation funding?

I am also deeply concerned about the lack of thorough impact assessments for these deals. Unlike for new trade agreements, the Department has not published scoping assessments, or any detail about the effect of these new deals on the economy, the environment, human rights or international development. The Government have not yet published their framework for how they are approaching impact assessments after Brexit, given that they are no longer bound by the EU scheme. This was due to be published in January 2021, but no such framework has appeared. I am therefore anxious about whether deals such as the Ghana and Cameroon ones are aligned with the UK’s broader human rights, women’s rights and environmental commitments.

--- Later in debate ---

[Sarah Olney]

I thank the hon. Member for his very valuable intervention. One of the key points that we need to impress on the Minister during this debate is the human rights angle.

The International Trade Committee has asked the Government to consider withdrawing trade preferences from Cameroon in the light of the human rights abuses in the country. Academic research shows that military assets provided by the international community are being transferred to the anglophone regions and used to persecute unarmed civilians, and the major national dialogue had no legitimacy in the eyes of anglophone civil society. I urge the Minister to press the Cameroon regime to call a ceasefire and participate in inclusive talks, mediated by a third party, such as Switzerland’s Centre for Humanitarian Dialogue.

Finally, I want to talk about the use of rendez-vous clauses in both these agreements. I have two concerns. First, on top of the abysmally limited scrutiny that these deals are getting now, adding further areas of negotiation after they have been signed raises questions about how those additions can be effectively scrutinised. How would my honourable colleagues and I be able to hold the Government to account on what may be significant and potentially damaging new provisions?

My other concern is the substance of those future negotiations. Historically, the UK has used these negotiations to encourage liberalisation of public services and regulations. Committing to trade rules on services, investments or patents, for instance, could undermine a country’s ability to develop strong, gender-responsive public services, to ensure that investment creates decent jobs and benefits for local economies, or to achieve access to medicines for all. Developing countries have long resisted attempts to push those issues in the World Trade Organisation, and they should not be imposed by the UK in bilateral deals.

[Chi Onwurah]

I thank the hon. Lady for her generosity in giving way. On that point, as she says, these trade deals require complex services to be admitted to the developing country while not providing it with support in order that it can export its products and services to the high-quality standards that we have in this country. Does she agree that that unequal use of legal and other powers is detrimental to the development agenda?

[Sarah Olney]

I absolutely agree. The main failing of these trade agreements has been the real failure to support development in both these countries. It is not in our long-term interest in any sense not to support the local economies in every way we possibly can.

Trade deals have real potential to foster improved regional trade, protect human rights and support environmental protections, but parliamentary scrutiny and dialogue are crucial to achieving those goals. These deals do nothing to raise standards.