Australia-UK Free Trade Agreement: Scrutiny

(Urgent Question): To ask the Secretary of State for International Trade if she will make a statement on the Australia-UK free trade agreement and the scrutiny process.

I have been asked to reply. Our Anglo-Australian trade deal will play an important role in levelling up the United Kingdom. It is expected to increase trade with Australia by 53%, boost the economy by £2.3 billion and add £900 million to the wages of hard-working households across our country in the long run. Her Majesty’s Government have stated on a number of occasions that the agreement will be ratified only once it has passed its statutory scrutiny period under the Constitutional Reform and Governance Act 2010 and, in addition, the necessary implementing legislation must have passed.

Her Majesty’s Government have made extensive additional scrutiny commitments, which include allowing a reasonable amount of time for the Select Committees to produce reports prior to the statutory scrutiny period under CRaG. We further set out that, for the Australia deal, this would be a period of at least three months. In actual fact, double the amount of time has now been provided: the agreement has been available for scrutiny for over six months. I should also point out that, before starting CRaG, Her Majesty’s Government published two reports to support scrutiny: the independent Trade and Agriculture Commission’s report on 13 April, and the Government’s own report under section 42 of the Agriculture Act 2020 on 6 June. Both reports were provided to the relevant Select Committees prior to publication to support their scrutiny work.

Her Majesty’s Government have now started the CRaG process, following this six-month scrutiny period, which was in addition to the statutory period provided for by CRaG. By the end of the CRaG period on 20 July, the treaty will have been under the scrutiny of this House for over seven months. The House will undoubtedly have benefited from reports from three separate Select Committees—the International Trade Committee, the Environment, Food and Rural Affairs Committee, and the International Agreements Committee in the other place.

Thank you, Mr Speaker, for granting this urgent question on the Australia free trade agreement. The UQ is supported by the whole International Trade Committee and the Chair, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), who cannot be with us but is here in the guise of his favourite Scottish export spirit—whisky, of course. The Chair of the Select Committee and I have very different perspectives on the Australia free trade agreement, but despite that we both wholeheartedly believe in the need for scrutiny in this place of that agreement.

This is the first wholly new trade agreement that we have signed since leaving the European Union, but unfortunately it has not had the scrutiny it deserves. On 8 October 2020, the then International Trade Secretary, who is now the Foreign Secretary, said that

“we will have a world-leading scrutiny process, comparable with Canada, Australia, New Zealand and Japan. That will mean the International Trade Committee scrutinising a signed version of the deal and producing a report to Parliament, a debate taking place and then, through the CRaG…process, Parliament can block any trade deal if it is not happy with it.”—[Official Report, 8 October 2020; Vol. 681, c. 1004.]

I ask the Minister whether the Government are still committed to that point of principle. The Minister for Energy, Clean Growth and Climate Change, the Minister for Farming, Fisheries and Food and the Secretary of State for International Trade have made those commitments to right hon. and hon. Members of this House, and we deserve our say on a trade agreement that makes a significant difference. On the Australia free trade agreement, the Government began the 21-day CRaG process before the International Trade Committee had even produced its report and even before the Secretary of State had come before us to defend the agreement in the first place. The Government refused to grant the Committee’s request for 15 sitting days between the publication of the section 42 report and triggering CRaG, thus denying us more scrutiny. As I have already said, the Government have failed to provide a Minister in good time and good order. In relation to the first report the Committee wrote on this, the Secretary of State was asked eight times to come before the Committee to discuss the agreement. She only did so a week and a half ago. The Government have failed to provide a debate and a vote on the agreement, so will the Minister, as the Liaison Committee and many other Members across the House have asked, delay ratification for the further 21 days and allow us to have a proper debate on this issue? Will he ensure that every future free trade agreement is signed and drawn through the CRaG process, as you have suggested, Mr Speaker? Will he ensure that Ministers are made available to discuss trade agreements ahead of time?

We have a system that compares very well with other parliamentary systems around the world. We will not be extending the CRaG period, given the extensive scrutiny time that Parliament has had—as I set out earlier, seven months by the end of the period—and we will not be able to offer a debate. The Secretary of State said that she felt the agreement could benefit from a general debate, but that is a matter for business managers in this House. The Labour party was very keen to have another debate yesterday, which took a whole day of parliamentary business from this House.

The section 42 report is there to inform the scrutiny period, not create an additional scrutiny period above and beyond CRaG. We published that report on 6 June. As my hon. Friend says, it was sent to the International Trade Committee, the Environment, Food and Rural Affairs Committee and the International Agreements Committee in the other place on 27 May to ensure they had ample time to consider the report. There is a balance, as I say, between ensuring sufficient time for robust scrutiny and ensuring agreements come into place quickly. I think we have got that balance right.

On CRaG, the Constitutional Reform and Governance Act 2010 was introduced by the Labour party. It gave the opportunity for parliamentary disapproval of treaties statutory effect and it gave the House of Commons the power to block ratification. Members across the House will know the answer to that. I am more than willing to set out the process, but in the interests of time and allowing people to come in I shall sit down for now.

I call the shadow Secretary of State, Nick Thomas-Symonds.

I am grateful for the granting of today’s urgent question and I congratulate the hon. Member for Totnes (Anthony Mangnall) on securing it.

The Government’s failure to make adequate parliamentary time available for a debate on this trade deal is completely unacceptable and a clear breach of promise. Lord Grimstone wrote in May 2020:

“The Government does not envisage a new FTA proceeding to ratification without a debate first having taken place on it”.

The Select Committee has, rightly, been scathing about the way the Government have handled scrutiny on this issue and about their premature triggering of the 21-day CRaG process without full Select Committee consideration being available to Members. Today’s clear rejection of an extension to the CRaG process is, yet again, unacceptable behaviour from the Government.

The truth is that Ministers are running away from scrutiny. Might Ministers be running away because of the Select Committee’s report stating they lack a “coherent trade strategy”? Or might the Government be hiding from scrutiny because of the chaos at the Department itself? Members do not have to take my word for it. Yesterday, the Secretary of State was saying of her own Minister of State for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), that there has been a

“number of times when she hasn’t been available which would have been useful and other Ministers have picked up the pieces”.

That is her own Minister. Maybe the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena), is one of the Ministers who has been picking up the pieces. Or might Ministers be hiding because of the lack of progress in their trade policy, with no comprehensive trade deal with the US in sight?

I think that, actually, we have a very good deal that the Government should be proud of and which will benefit the British people. As I said—perhaps the right hon. Gentleman was not listening—this will increase trade with Australia by 53%, boost our economy by £2.3 billion and add £900 million to household wages in the long run. In fact, £132 million of exports already go from Wales to Australia. We want to boost that even further to benefit the people of Wales and his constituency.

As for what my noble Friend Lord Grimstone said, processes for the other place are a matter for the other place. It is clear that the Labour party is so focused on process that they are not focused on securing the benefits for the British people of Brexit.

The Minister recently joined the second SussExport event at Wiston House, which aimed to boost Sussex trade and our global reach. This is a vital first trade deal. Does the Minister believe that its positive delivery will boost crucial further success, including more jobs, meaning that it can deliver on the SussExport objectives?

My hon. Friend did a great deal to create jobs across the United Kingdom in her previous role and she continues to bang the drum for her constituency. It was a pleasure to visit the SussExport event. I believe that tariff-free trade for all British exports will deliver great benefits for businesses in Sussex, including the Bolney wine estate, which I look forward to visiting with her in due course.

This deal will punish the food and farming sectors—that is not my conclusion; it comes from the Government’s departmental advice. Those civil servants join the National Farmers Union of Scotland, the National Farmers Union, trade experts and academics. The Prime Minister’s former food tsar has outlined Australia’s

“abysmal record on deforestation, animal welfare and climate”.

The benefits of the deal are pennies compared with the amount that we are losing from not trading as much with our EU neighbours. The Minister is a temp, in place under a lame-duck Prime Minister in a dysfunctional Government. Why is this deal not being brought forward for parliamentary scrutiny, as was promised in this Chamber? Why are the Government flouting their own advice? Why are they happy to sacrifice the food and farming sector? Why would they press ahead with the prospect of job losses, higher food bills and fewer safeguards on food standards? This deal should be halted until we get answers. Scottish households, farmers and businesses deserve better than these acts of wilful harm. They must be given the chance to choose better than this place.

I see that the hon. Gentleman is in his usual mood, talking about trade in one way in the Chamber and the opportunities of trade outside it. The truth is that £333 million of exports from Scotland go to Australia. We want to boost that in the years ahead, and this deal is the way in which we can do that. He refers to me as a temp, but he might want to look at employment law, because I have been in this role for 26 months. I am very pleased that we have now secured trade agreements with 71 countries around the world, covering trade worth £800 billion. That is how we are delivering for the British people. He talks about Britain’s departure from the European Union. Of course, he wants to depart from the United Kingdom, breaking away from the British internal market, which delivers for the people of Scotland.

What assessment has my hon. Friend made of the impact on agriculture of this deal, with reference to our need to maintain our domestic food production as a strategic sovereign capacity?

My hon. Friend is rightly thoughtful in this area. Food security remains important. As a result of the challenges faced in the last 26 months because of covid and the war in Ukraine, I have seen this for myself. It is right that we back our farmers. It is really important that we seek new markets in which they can secure greater value for their products, which will encourage them to continue to farm more land more productively. I assure the House that the Trade and Agriculture Commission said that the deal does not require the United Kingdom to change her existing levels of statutory protection in relation to animal or plant life, or health, animal welfare and environmental protections, so there is no threat in that regard.

I sit on both the International Trade Committee and the Public Administration and Constitutional Affairs Committee. The latter is doing an inquiry into CRaG. We heard clearly from legal experts last week that it is unprecedented for the Government to ratify a treaty before the implementing legislation has been passed. The fact that the Government are trying to ratify the treaty through the CRaG process before that is surely problematic. In addition, the fact that CRaG only allows a treaty to be stopped through a debate and then a vote in this Parliament means that the denial of a debate is the denial of the CRaG process, in the spirit in which it was written. I beg the Minister to reconsider his foolish urgency on this matter, delay CRaG by 21 days—that would not delay the ratification of the treaty, because the implementation legislation is still needed—and give us a debate.

I do not think that seven months is rushing anything. This agreement can be ratified only once Parliament has scrutinised and passed the implementing legislation in the usual way.

There are huge opportunities from the Australia trade agreement for the ceramics industry in Stoke-on-Trent. Does my hon. Friend agree that it is vital that we get on with delivering that and delivering the jobs and opportunities for industries in the midlands and the north?

My hon. Friend has done great work at the Department for International Trade and I am delighted that he has championed the Potteries today. The wider region and the west midlands as a whole make £37 million-worth of exports to Australia. He is absolutely right that this deal, unlocking the benefits of Brexit, will secure new opportunities for businesses across his region and beyond.

In October 2020, the then International Trade Secretary—the current Foreign Secretary—set out the CRaG process for Parliament to have a say in the scrutiny of international treaties. This procedure should allow Parliament 21 sitting days to scrutinise the final text. It is disgraceful that adequate time has not been allocated for proper parliamentary debate in this Chamber and scrutiny of the first trade deal to be negotiated from scratch—the Australia-UK free trade agreement. Is it not the case that the Government are becoming arrogant and no longer feel that they need to be accountable to Parliament for their actions? What sort of precedent does this set for the scrutiny of trade agreements?