Trade (Australia and New Zealand) Bill

Tim Farron Excerpts

Report stage
Monday 12th December 2022 Commons Chamber

[Sir Mark Hendrick]

I support the new clauses on impact assessments after various periods on issues affecting farmers, procurement, the UK regions, equality and human rights, and I shall make reference to the way in which the negotiations have been handled, the attitude of various Secretaries of State to scrutiny and, in particular, the role of the International Trade Committee.

As a member of that Committee, I have seen at first hand the Government’s mishandling of the trade measures that the Bill will implement, as well as their lack of transparency and of a coherent strategy on negotiating free trade agreements. Under the two previous Secretaries of State—the right hon. Members for South West Norfolk (Elizabeth Truss) and for Berwick-upon-Tweed (Anne-Marie Trevelyan)—the Government have deliberately prevented MPs from having a say in the details of the deals. It is painfully obvious how haphazardly negotiations have been handled.

Meanwhile, the Government have continued to tout the number of trade deals that they have secured, but the truth is that a majority of those deals are simply rolled-over deals forged when the UK was a member of the European Union. They are not even close to achieving the 80% of UK trade that they claimed would be covered by trade agreements by the end of 2022, including an agreement with the USA, which was pledged in the 2019 Conservative manifesto.

Australia and New Zealand have the distinction of being non-EU countries with which the UK negotiated trade deals from scratch post Brexit, but the proof is in the pudding. The trade deals are terrible for Britain. They benefit Australian and New Zealand exporters more than UK exporters, while UK agriculture, forestry, fishing, and its semi-processed food industry are left to suffer the consequences. Australia and New Zealand received full liberalisation on beef and sheep and unfettered access to the UK food market, but the UK did not receive the same concessions in return. The Government’s own Back Benchers have exposed what we have known for some time—that securing those trade measures was a box-ticking exercise, rushed through to get a deal done, and not necessarily in the best interests of the UK.

The former Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Camborne and Redruth (George Eustice), recently criticised the Australia trade deal in the Chamber as not actually being a very good deal for the UK, admitting that

“the UK gave away far too much for far too little in return.”

Indeed, he said that

“since I now enjoy the freedom of the Back Benches, I no longer have to put such a positive gloss on what was agreed…unless we recognise the failures the Department for International Trade made during the Australia negotiations, we will not be able to learn the lessons for future negotiations.”

He went on to say:

“We did not need to give Australia or New Zealand full liberalisation in beef and sheep—it was not in our economic interest to do so, and neither Australia nor New Zealand had anything to offer in return for such a grand concession.”—[Official Report, 14 November 2022; Vol. 722, c. 424.]

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

The hon. Gentleman is giving a very good speech. The former Secretary of State for Environment, Food and Rural Affairs, whom he has just quoted, also said that he felt that the Government were in such a rush to get a deal signed off before the G7 summit in Cornwall last year that they bypassed a great deal of scrutiny of the agreement, even by themselves, so for political reasons they cast aside the interests of British farmers. Does the hon. Gentleman agree that that is truly reprehensible?

[Sir Mark Hendrick]

I totally agree that that is reprehensible, but it was not the first time that it happened. The Japan deal was a roll-over deal, but parts of it were new and were added at the last minute. The Government delayed the details until 24 hours before the report was published, so the International Trade Committee could not scrutinise it properly and comment on it. It happened with Japan before it happened with Australia.

--- Later in debate ---

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

The trade deals between our country and Australia and New Zealand are historic. They are the first deals that this Government have negotiated outside of the European Union. They will have significant consequences for our farmers, exporters and a number of key industries and, importantly, they chart the course for the UK’s journey as an independent trading partner and negotiator. It is disappointing, then, that today’s debate is the most extensive opportunity many of us will have to feed into such agreements.

The provisions of the Bill apply to just one of the 32 chapters of the UK-Australia agreement, and one of the 33 in the New Zealand agreement. That means that the impact of the Bill and the amendments tabled by Members is restricted and does not go nearly as far as we might like. It is no secret that these deals are a disaster for British farming. That is why the Liberal Democrats have proposed new clauses 7 and 8, which would require the Government to report on the impact of these chapters on British farmers and on environmental standards, food standards, animal welfare and biodiversity.

Our farmers have been sold out by a Government willing to sacrifice far more than they should have to get new deals across the line. It is farmers who will be forced to pay the cost of the Government’s shiny new deals, with a combined hit to the agricultural, forestry and fishing sector of £142 million and to the semi-processed food sector of £322 million. The costs of producing sheepmeat are 65% lower in Australia and 63% lower in New Zealand than in the UK. While the Minister, the hon. Member for Mid Worcestershire (Nigel Huddleston), has reassured us that his Department is confident that the UK market will not experience an influx of the import of such meat as a result of these agreements, the risk remains that the complete removal of tariffs will allow UK markets to be filled with this cheaply produced meat.

[Tim Farron]

Does my hon. Friend agree that it is obvious that one reason why Australia and New Zealand can compete with us unfairly and more cheaply is that, with no offence to those two great countries—they are friends of ours—their animal welfare and environmental standards are significantly lower than the United Kingdom’s? It is not right to give their farmers an advantage over our farmers by virtue of their having lower quality standards.

[Sarah Green]

I agree. This country’s high environmental and animal welfare standards, which we are rightly proud of, mean that if such an outcome were to happen, British farmers would simply be unable to keep up. It is hardly surprising that the chief executive of the Meat Industry Association of New Zealand hailed the FTA as delivering

“a major boost for sheep and beef farmers and exporters”.

The Australian farming industry has similarly celebrated its deal. By contrast, the UK’s NFU is clear that the deals will benefit those in the southern hemisphere far more than farmers here at home. Even a former Secretary of State, the right hon. Member for Camborne and Redruth (George Eustice), has commented that these deals are “not very good” for Britain.

Australia and New Zealand Trade Deals

Tim Farron Excerpts

Monday 14th November 2022 Commons Chamber

[Greg Hands]

The hon. Member raises a very good point. The UK-Australia deal is the first Australia trade deal that has a dedicated chapter on the environment. I recommend that he looks at the deal to see what it does for the environment, which is something we take very seriously indeed. We did it in the run-up to COP, so it is very topical as well.

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

rose—

[Greg Hands]

I will not give way, as I am about to finish.

The country’s departure from the European Union opened up new possibilities for us to enhance our relationships with the rest of the world. Our deals with Australia and New Zealand show that we are seizing this opportunity. These deals can increase annual trade between the UK and Australia and the UK and New Zealand by £12.1 billion.

I look forward to hearing the contributions from the official Opposition, who I think abstained on Second Reading of the Trade (Australia and New Zealand) Bill, and also from the Liberal Democrats and the SNP, which I think opposed the Bill on Second Reading.

[Tim Farron]

rose—

[Greg Hands]

Perhaps the former leader of the Liberal Democrats can explain why he was so opposed to the deal.

[Tim Farron]

I am extremely grateful to the Minister for giving way to me, however he chooses to do so. We are very strongly in favour of free trade, but we also believe that free trade has to be fair. Let me take him back to his earlier comments about the strategic value of this. Does he understand that trade deals must have strategic value when it comes to protecting our ability to feed ourselves as a country? Does he understand why those of us who represent rural communities are deeply concerned about the imbalance that exists between farm standards on this side of the world and those in New Zealand and Australia on the other? We think that might undermine our ability to feed ourselves because it will put British farmers out of business.

[Greg Hands]

I look forward to the hon. Member actually supporting one of these trade deals. I have already pointed out the safeguards that exist in both deals: the long transition period and the substantial tariff-rate quotas. I am talking about all of the protections and safeguards that are in those deals for British farmers—the non-regression clauses on animal welfare, for example, which will prevent Australia or any other country from seeking to gain a trade advantage if they were to weaken their animal welfare rules. I will be frank, though; I have seen no evidence that Australia will be looking to do that, but the deal does have protection for our farmers and our consumers.

Our free trade agreements reflect the needs of modern business and play to this country’s strengths. They will create deeper friendships between our citizens and they will begin a new era of free trade between our nations. In short, these are free trade agreements for the 21st century and I commend them to the House.

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.

Oral Answers to Questions

Tim Farron Excerpts

Thursday 21st April 2022 Commons Chamber

[Penny Mordaunt]

First, let me place on record our thanks for everything my hon. Friend has done to improve trade with the continent and with Ethiopia in particular. He is right to say that there are massive opportunities there, but our great businesses face tough competition, including from China’s growing influence and impact on the region, particularly through soft infrastructure at the moment. In recent months, we have strengthened our situational awareness of what China is doing and are actively supporting UK businesses to reach those opportunities early. We are doing that through providing competitive finance and support across the continent.

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

As many African countries depend in normal times on Ukraine, Belarus and Russia for almost 100% of their grain, we find ourselves in a situation where we are trading in the same commodities markets as African countries, pushing up the prices for some of the poorest people in the world. Will the Minister acknowledge that, look again at the Government’s cut in aid and put that back to where it was? Will she also perhaps consider that the best way we can deal with that situation is by backing British farming, so that we can feed ourselves and not be robbing the food that should be feeding the poorest in the world?

UK-Australia Free Trade Agreement

Tim Farron Excerpts

Wednesday 5th January 2022 Commons Chamber

[Anne-Marie Trevelyan]

I concur absolutely with my hon. Friend’s comments that the high commissioner, George Brandis, has been a huge advocate and supporter of the deal and indeed has assisted in some of the logistics challenges of carrying out, using mostly virtual methods, the very complex trade negotiations through different time zones to make sure that we were able to deliver this in an incredibly timely manner. That is reflected in the fact that both countries are very keen to build on their very close and long-standing relationships with what is one of the most liberalising trade deals that exists.

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

I am passionate about free trade, and so are the farmers in Cumbria and so, I assume, are the farmers in Northumberland. No free trade is really free if it is not fair. When it comes to animal welfare, this deal clearly is not fair. I wonder whether the Secretary of State truly comprehends the astonishing difference in terms of animal welfare standards between farming, and livestock farming in particular, in her own community and in mine compared with Australia. There are staggering and astonishing differences in scale—the fact that we have close husbandry in this country and vast areas and no husbandry in Australia. Moreover, there is the lack of humane standards in abattoirs and also when it comes to the transportation of livestock. Surely this deal undermines our farmers, undermines the standards that we hold dear and throws our agriculture under a bus in order to get a cheap deal. How will she reply to her own farmers who will be as shocked and appalled as I am by much of this deal?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We need slightly briefer questions if we are to get everybody in. There is a ten-minute rule Bill and then business after that. If I am to get everybody in, we just need to speed up a little bit.

Trade and Agriculture Commission: Role in International Trade Deals

Tim Farron Excerpts

Wednesday 21st July 2021 Westminster Hall

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

It is a real pleasure to serve under your leadership and chairmanship this afternoon, Ms Bardell. I give my huge thanks to the hon. Member for Tiverton and Honiton (Neil Parish) for characteristically introducing this debate, which is of such importance.

The Trade and Agriculture Commission reported in March and made 22 recommendations. Here we are, two thirds of the way through July, and we have heard nothing in response. There has been inaction on responding to the Trade and Agriculture Commission’s recommendations and lots of action on the negotiation of a deal with Australia. Why this mismatch and inequity—frantic effort on the deal, and Olympic-standard heel-dragging when it comes to dealing with the Trade and Agriculture Commission’s recommendations? It does not make any sense.

One’s best guess is that the Government set up the Trade and Agriculture Commission under pressure from the National Farmers Union and others in order to appease their Back Benchers and get through Third Reading, among other things. People fell for that, but I believe the Government’s plan all along was simply to disregard anything that their new watchdog said. That shows contempt for the very good people on the Trade and Agriculture Commission, and for the commission itself. It shows even more contempt for Cumbria’s farmers, rural communities and the agricultural community right across the country. In fact, it shows contempt for the Conservative Government’s own Back Benchers.

Among the recommendations—I will just pull out two—is the proposal for the development of core standards that have to be met before a deal can be agreed. In other words, that would ensure that standards are not reduced and that farmers are not undercut and ruined by any deal. To push ahead with trade deals of any kind, but particularly one with Australia, which has demonstrably lower trade, agriculture and animal welfare standards than ours, is to deliberately throw Britain’s farmers under a bus.

One of the other recommendations is to improve the modelling of the impact assessments. In other words, it is to ensure that the Government, Members of Parliament, farmers and consumers can be sure of the consequences of each trade deal before it is signed. We should know before it is signed whether a deal will increase or undermine the quality of animal welfare, reduce animal welfare standards or damage the livelihoods of British farmers.

The failure to produce proper impact assessments resonates with other failures that the Government are inflicting on our farmers. The movement from the basic payment scheme to environmental land payments will clearly create a position where our average livestock farmer depends for 85% of their revenue—their business income—on the basic payment scheme. The basic payment scheme will be got rid of before there is a replacement scheme to fill our farmers’ pockets and keep them farming. Yet at the same time the Government are introducing golden goodbyes to get rid of farmers, with no plan for new blood. That can be seen in our county of Cumbria, where the Government have failed to intervene and save the Newton Rigg agricultural college. Where is the new blood? Where is the confidence in British framing in the future? We ask that especially as we see that the Government’s plans for trade deals will undermine the livelihoods of so many farmers. We say we have the best farmers in the world. Yes we do, but do the Government understand why? It is because of good regulation and culture. The culture of British farming is rooted in the small family farm that not only breeds good-quality animal welfare—close husbandry—but also means that we take care and look after the landscape.

We saw earlier that Liverpool has lost world heritage site status—we could speak more about that. It reminds us that that status is not sacrosanct and can be taken away. The landscape of the Lake District is a world heritage site. If we see the Government undermining family farmers in Cumbria, across our beautiful county and the Lake District, we will not be surprised if the killing of that important goose that lays the golden eggs for our local economy leads to a ravaging of our landscape, and we lose world heritage site status. The Government must answer those 22 recommendations before any deal is signed.

Trade Bill

Tim Farron Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[Greg Hands]

My hon. Friend is absolutely right. All my interactions, and those of the Secretary of State, with the ceramics industry and with MPs who represent key ceramics constituencies, indicate that the Japan deal is extremely important for this country. I am disappointed that the Opposition parties seem to have no enthusiasm for the continuity of our trade with Japan, or its enhancement.

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

Will the Minister give way?

[Greg Hands]

I will not give way just now. We are committed to additional scrutiny arrangements for any deal with Japan. We believe that the current sunset provisions in the Bill strike the right balance between flexibility for negotiators and the ability to keep agreements operable, and that they provide sufficient constraints and scrutiny to Parliament.

The Government are aware that during the 2017-19 Trade Bill there was uncertainty and concern in Parliament about the nature of the Government’s continuity programme—indeed, I can testify to that, because I was the Minister at the time—and that is why we have tabled a number of amendments to the Bill. There is, however, a crucial change in circumstance since the previous Bill, because Parliament can now see that we have not strayed beyond our mandate to deliver continuity. The transition agreements have not resulted in new or enhanced trading obligations, standards have not been reduced in any way, and our right to choose how we deliver public services has been protected.

--- Later in debate ---

[Greg Hands]

I am going to make more progress.

For new trade agreements, the Government have already committed to working closely with the relevant scrutiny Committees in both Houses throughout negotiations. This includes providing confidential briefings, as appropriate, to keep them apprised. This approach is in line with the recommendations of the former Member for Blackburn, Jack Straw—who served in government with the hon. Member for Brent North (Barry Gardiner). He said in his evidence to the Lords Constitution Committee that

“it should be for the negotiators to decide how much privacy and confidentiality there should be”

during negotiations

“and certainly not others”.

Finally, when negotiations have concluded, we will work with the relevant Select Committee to ensure, where practical, that there is time for the Committee to produce a report on the final agreement before it is laid in Parliament under CRAG.

[Tim Farron]

Will the Minister give way?

[Greg Hands]

I am not going to give way further during this section of my speech.

Similarly—this is an important point—if the Committee were to recommend a debate on an agreement prior to ratification, the Government would of course consider that request, subject to parliamentary timetabling. Taken together, this means that Parliament will have comprehensive information, including economic assessments, on our agreements prior to negotiations commencing, at key points during negotiations, and at the conclusion of talks.

Finally on this point—this is extremely important—international agreements cannot themselves alter domestic law, and any changes to UK legislation would need to be scrutinised by Parliament in the normal way. We are strongly committed to transparency, as demonstrated by the steps we have taken to provide comprehensive information to the public and Parliament at the start.

[Tim Farron]

rose—

[Greg Hands]

I will put the hon. Gentleman out of his misery and give way.

[Tim Farron]

I just want to make a point about the nature of the scrutiny. A few weeks ago, the Government rightly came forward with the Trade and Agriculture Commission to add weight to the scrutiny of trade deals with regard to animal welfare, environmental standards and labour standards. What can the Minister do to give more assurance to farmers, in particular, that these deals will not lead to an undermining of their business and their standards, and put that into the Bill to ensure that those cannot then be let down?

[Greg Hands]

I thank the hon. Gentleman for that intervention, which allows me to say that the National Farmers Union has been incredibly welcoming of this proposal. Minette Batters said that it is

“a hugely important development in ensuring UK farming’s high standards of animal welfare and environmental protection are not undermined in future trade deals.”

There are three crucial things. First, we have a strong manifesto commitment to have no compromise on Britain’s standards of animal welfare, food safety and the environment. Secondly, we are transposing the EU rules into UK law to take effect on 1 January. The third thing is simply this: it would be for Parliament, if it so wanted, to block any such changes—if anybody thought they would introduce any of these controversial products, Parliament would be able to block that.

Oral Answers to Questions

Tim Farron Excerpts

Thursday 14th March 2019 Commons Chamber

[George Hollingbery]

I thank my right hon. Friend for his question. Of course, if the Prime Minister’s deal is passed through this House in its third iteration, it will provide for regulatory alignment not to continue and therefore we would be able to pursue trade deals internationally. Of course we can do so in any event, as not all trade deals are to do with goods.

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

During the BSE crisis of the 1990s, the foot and mouth outbreak of 2001 and the scare of 2007, even some members of the European Union took advantage of these crises to ban British meat imports, even long after any risk had expired. If we leave with a bad deal, such as the one Parliament has now rejected twice, countries will not need an excuse to act with opportunistic protectionism in that way. So how will we make sure that our farmers are protected in the deals we strike in future?