Trade Deals: Parliamentary Scrutiny

Tim Farron Excerpts

Wednesday 12th October 2022 Westminster Hall

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your chairpersonship, Ms Elliott.

I pay huge tribute to the hon. Member for Totnes (Anthony Mangnall) for securing this debate and for his excellent speech, much if not most of which I agreed with. Like him, I am a free trader. Free trade is massively important, and not just for prosperity; if we had more free trade with the markets on our doorstep, the cost of living crisis would not be as bad as it is.

Free trade is important for fairness and prosperity, but also for peace, because it integrates countries and makes conflicts between them seem much less plausible and more unthinkable. Let us remember that the European Coal and Steel Community, in its first few years in the 1950s, was about knitting together countries that had been at war. The accession of the eastern European states through the ’90s and noughties was about knitting together countries that had been enemies on either side of the cold war.

Free trade is dead important, and my criticism of the Australia and New Zealand deals is a criticism not of free trade but of deals that are not free—if they are not fair, they are not free. It is absolutely right that, as a country that has taken back control as a sovereign nation, we should be able to dictate the negotiating terms on which we go about setting up trade deals. How could Parliament have dealt with this better or be given the power to deal with it better? Most MPs on both sides of the House wanted Parliament to do its job better than it was allowed to, particularly on the New Zealand and Australia trade deals.

Better scrutiny means that Parliament should be able to sign off the negotiating mandate, and then sign off the deal itself. Surely, as the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) said, we have a right as a country to dictate the terms on human rights, animal welfare, environmental issues and carbon reduction. They should surely underpin the negotiating mandate of any trade deal. Then, when a vote is taken, it must not be taken after the damage has been done.

The Conservative party’s 2019 manifesto stated:

“In all of our trade negotiations, we will not compromise on our high environmental protection, animal welfare and food standards.”

That is not true. That manifesto commitment has been broken.

Let us look in particular at the deal with Australia. The average suckler beef herd in Britain is 30 cows. In Australia, it is hundreds upon thousands of cattle. It is not that Australians are brutes and terrible at animal welfare, but the nature of farming in Australia means that it is cheaper per unit and crueller in practice. The same animal husbandry cannot be done for 1,000 cattle as for 30.

[Anthony Mangnall]

The hon. Gentleman is making a very good speech, but I urge a bit of caution on that point, because we would never sign trade agreements with other countries if we expect them to have exactly the same standards. As he rightly pointed out, we have the highest standards in animal welfare around the world. The hope is that, if we sign trade agreements with places such as Australia, they can start seeing how they can match our standards and rise up to them, rather than us lowering ours, because there is absolutely no intention of us doing that.

[Tim Farron]

Well, that is the theory, but the Government’s own figures and modelling show that the Australia trade deal, for the very reasons I was just setting out, will give a £94 million hit to British farming. There is no doubt that the deal has sold out and—in the words of Minette Batters, the excellent president of the National Farmers Union—betrayed British farmers. The impact of the trade deal undermines British farming and the standards and ethics of the United Kingdom in general—in particular of the way we farm. That is added to a set of assaults on British farming.

The transition to the new farm payments scheme is in complete chaos. The removal of direct payments—20% by this Christmas—will plunge many farmers into poverty. Meanwhile, many farms are trying to engage with the new environmental land management system. Two years down the road, they will change their businesses, and now they do not know what to do. The Government have sort of part-listened and have thrown everything up in the air; it is total chaos. There is chaos in farming and in the market.

The greenest thing that the British Government could do is keep Britain’s farmers farming, because without farmers we cannot deliver the environmental goods. Likewise, we cannot deliver the food that we all rely on. If we become less and less self-sufficient, that has a moral impact as we push up the price of commodities for the poorest counties in the world. The failure to conduct fair and transparent trade deals with the scrutiny of this Parliament undermines British farming in general and puts at risk our environmental imperatives, our food production and, by connection, the poorest people in the world, whose food prices will go up because we cannot feed ourselves. That is why we must get it right next time. Free trade is important, but we must not throw our farmers under the bus in the process. Free trade that is not fair is not free in the first place.