Trade Bill

Committee (1st Day) (Continued)

Amendment 8

Moved by

8: Clause 2, page 2, line 37, at end insert— “( ) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if—(a) the provisions of that international trade agreement do not conflict with, and are consistent with—(i) the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015,(ii) international human rights law and international humanitarian law,(iii) the United Kingdom’s obligations on workers’ rights and labour standards as established by, but not limited to, the commitments under the International Labour Organisation’s Declaration on Fundamental Rights at Work and its Follow-up Conventions, (iv) the United Kingdom’s environmental obligations in international law and as established by, but not limited to, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the Convention on Biological Diversity, including the Cartagena Protocol on Biosafety,(v) existing standards for food safety and quality as set and administered by the Department of Health, the Food Standards Agency and any other public authority specified in regulations made by the Secretary of State,(vi) the United Kingdom’s obligations as established by the Convention on the Elimination of All Forms of Discrimination Against Women and by the Convention on the Rights of the Child, and(vii) the sovereignty of Parliament, the legal authority of UK courts, the rule of law and the principle of equality before the law,(b) the provisions of that international trade agreement do not in any way restrict the ability to determine whether public services at a national or local level are delivered by public sector employees, and(c) the Secretary of State has laid before Parliament an assessment of the potential economic, social, human rights and environmental impacts of the international trade agreement on the contracting parties.”

My Lords, I shall speak to Amendment 8 and the other amendments in this group. Amendment 8 relates to the continuity agreement, and Amendment 53, which is also tabled in my name, relates to future agreements. We return somewhat to an earlier debate where there is perhaps more complexity than the Government have alluded to until now about some of these agreements. I shall explain why this is important before I refer to the components of the amendments.

I shall use three examples of agreements which the Government so far have not said whether they wish to replicate in the continuity agreement: Singapore, Japan and Mexico. This is more complex than the Government have alluded to so far because a European Court of Justice judgment two years ago indicated that free trade agreements should not now include investment protection components. In relation to the Japan agreement, which this Parliament has approved and which will come into force on 1 February this year, as a result of that judgment separate negotiations are now being carried out on an investment protection agreement which Japan has not yet agreed. What is the UK’s intention in rolling forward the trade and investment components, or is it just the trade component? The Singapore agreement, which has been agreed and which would be one of the agreements that we wish to take forward, has, again, been separated out. The Mexico agreement has been agreed and is going through legal scrubbing.

Those three examples, which are significant to UK trade, highlight important aspects. They represent some of the best components of what modern deep and comprehensive trade agreements can include, but they also signify the difficulties that our Government have in wanting to make them continuity agreements, simply and straightforwardly rolling them on. That is why Amendment 8 on continuity agreements is important. It is important because it now sets the principles for agreements which have been signed in principle but which, through the process of seeking continuity, might include practical changes. We do not know yet, but they might. Although we know that it is the Government’s intention that they will not, we have yet to see them or any of the details. Therefore, it is appropriate that we would want to set some criteria for how they can be rolled forward, especially if we are to take forward what the European Union is now doing, which is separating out investor protection agreements from trading agreements. Of course, these amendments relate to trade agreements, but I want to stress the complexity to highlight the fact that the principles should be set down in statute.

While this is relevant for the UK in agreements with Japan, Mexico, Singapore and those highly developed rich countries where we will have good trading relationships, it is also vitally important that we retain these ethics when trading with the least developed nations, or with the large number of nations that have partnership arrangements with the European Union on preferential trading agreements, or with the whole series of nations where we have zero tariffs on everything but arms.

It is absolutely necessary to have a clear element of transparency in this Parliament on how we trade with these countries, both when rolling over the agreements that we currently have in place and as we start to negotiate in the future. We must have reporting but also much higher standards and ethics checklists for how we engage in this. These amendments are, I hope, not partisan, but are supported by a very wide range of NGOs representing many hundreds of thousands of people around the country who are looking for a lead in Parliament from this House. Amendment 53 especially, as we start to engage in discussions about how our trade goes forward, reflects the highest ethical standards which are set down now for the future.

It is interesting to reflect on how, at the end of a two-year process of negotiations, the Prime Minister now seeks to make concessions out of labour market and environmental standards. These should not be issues where the Government seek to gain some kind of political advantage by making concessions; they should be core components of our trading relationships around the world. That is why I hope that the Government will be sympathetic to this amendment.

My Lords, I rise to speak to Amendments 9, 15, 25 and 26 which are in my name. I also want to support the many other excellent amendments which are contained in this group. As the noble Lord, Lord Purvis, has already said, this seems to be an area that is causing widespread concern. I hope the Government can see sense and perhaps rewrite the Bill to accommodate our concerns. In fact, I have quite a lot of concerns about the way the Bill is written; I wonder whether it needs a fairly substantial rewrite in some places. We will come on to that later.

The starting point for me in approaching this Bill is to recognise that trade deals and free trade agreements are entirely different beasts from those of times gone by when it was simply a question of reducing tariff barriers between nations or ensuring physical access to each other’s ports.

Modern trade deals are deeply political, needing decisions and agreements about interacting with one another’s laws and even overriding national laws. Trade deals are of great concern to many environmental and social justice campaigners because they can be used as a bulldozer for corporate interests to override the rights and interests of communities. As we transition from our established position in the European Union to an uncertain and undecided future, those concerns are front of mind for many of us. I first tabled some of these amendments in October last year. When I did that, even though there were then six months to go to Brexit, it felt as if time was running out. Now, only two months away from Brexit, we are no closer to averting disaster than we were back then.

I was grateful for the meeting with the noble Baroness, Lady Fairhead, the noble Lord, Lord Gardiner, and their officials. Although it was an interesting meeting, they were unable to resolve my fundamental concern about the Bill. The Minister told me that amendments such as mine are not necessary because the Bill is only about rolling over existing trade deals and it is not the Government’s intention to renegotiate any of them, and we have heard that again today. The Government’s intention is all well and good, but good intentions are quickly broken down by the harsh realities of international negotiations. It seems obvious, as we have already heard, that other countries will take this opportunity to renegotiate terms that are more favourable to their interests, perhaps slipping things in that the EU would not allow but that the UK might be more inclined to accept, particularly if we were feeling desperate.

My Lords, I shall speak to Amendment 13. The purpose of my amendment is extremely clear: to seek to maintain our present high standards of UK agricultural products. At the same time, however, I support other amendments in this group regarding animal health, hygiene and welfare standards and wider environmental concerns. I regard this issue as extremely important not just for the present round of trade treaty rollover negotiations, which of course it is, but as a signal for the future. I felt that the remarks by the noble Lord, Lord Kerr of Kinlochard, were very pertinent to this point. I want to make it very clear to both present and future trade negotiating partners that we in the UK intend to maintain our present high standards in a number of areas such as agricultural products and food standards.

I too am grateful to the Minister for meeting me last week. She made it clear that her priority was to get these current trade deals finalised with as much speed as possible—yes, the word “continuity” was mentioned—and said there was a necessity for flexibility in the negotiations. I understand all that. The problem, as we have heard today, is that not all the parties to these negotiations may just agree to roll these deals over; they may want to look at some things again. I want to signal to the Government as strongly as possible how important we feel our present high standards to be.

Ministers apparently agree with me, because on a number of occasions they have been asked about our present high food standards and they all say that they have no intention of departing from them and intend to stick to them. If that is the case, then surely we have no problem in writing that in the Bill. What is the problem? If we all agree that these high standards are essential, then I do not understand why they cannot be in the Bill. I understand that my inadequate attempts to formulate the appropriate proposal may be the problem. I would then say to the Government, “Fine. You can see what I and other people are after. Take that sentiment away and put it in whatever form meets your requirements”. I cannot understand how they can just ignore this important issue. If Ministers share my views on high standards, there must be a way of encapsulating this in the Bill in some form. I am very flexible; I do not mind how it appears in the Bill, but I really feel that it should be there.

Food standards and the negotiations about them are going to be a major issue not just for these rollover trade deals but for the future. We keep hearing talk about the possibility of us joining the Pacific trade group. I think there was a meeting with people from New Zealand or Australia only today and we hear again about this possibility. But that would inevitably mean moving away from EU standards and our current high standards for food and agricultural products. Therefore, every time we hear these sorts of discussions about joining this group, we are alarmed; we want to know, if that is the case, will we then lower our standards? We cannot have it all ways. We also know how American agribusinesses are hungrily eyeing British markets. We know perfectly well that they want to flood our country with cheap chlorinated chickens and other food that does not meet our present high standards. Therefore, I believe we have to make it clear from the outset that we will not agree to this.

My Lords, I rise to speak to Amendment 14 and I join in supporting Amendment 13 and much of the sentiment behind Amendments 9, 25 and 26. I thank my noble friend the Minister for the meeting I had with her. I entirely support the comments of the noble Baroness, Lady Henig, as to why it is important to have these points in the Bill. If you look at the gross value added of agriculture, it contributes over 10% to the economy of the Yorkshire and Humber region alone. Exports of food and drink from the UK are worth £16.4 billion per annum.

I would like to say a word about marketing. The noble Baroness, Lady Henig, raised a very important point here, which I discussed in the private meeting I had with the Minister. Our exports to China, for example, have grown by over 60% because the agricultural attaché in Beijing is paid 90% by the industry levy and 10% by the Government. If we are doing so well there, surely we should heed the requests from the NFU, farm organisations and the food and drinks industry to have similar specialists in other key markets. The sooner we do that, the better. I am half-Danish and it is a source of some surprise to me that Denmark exports a higher share of its food to countries such as China than we do. It is a country of 6.5 million; we are a country of 60 million. We have a lot of catching up to do, but we are clearly on the right track with the agricultural attaché.

In supporting the theme of the amendments tabled by the noble Baroness, Lady Jones, I would like to put two questions to the Minister before we return to this on Report. First, if the Government are not prepared to put this in the Bill, what commitment can my noble friend the Minister give the Committee this evening that in any free trade agreement the Government conclude with overseas trading partners, all food imported to the UK will be produced to food safety, animal welfare and environmental protection standards which are at least the equivalent of those currently required by producers in the UK? Secondly, can my noble friend explain how the Government intend to set out, in clear and unambiguous terms, how they propose to ensure that food imports into the UK will adhere to our environmental and welfare standards, in the context of WTO obligations? I will not repeat the examples that have been given, but over 20 or 30 years and under different Governments—many noble Lords have served as Ministers for Agriculture—we have increased the cost of food produced in this country, at the consumer’s will, to have the highest environmental, welfare, food safety and hygiene standards. Those cannot now be swept aside in this bid to have cheap food. We have to pay the cost of producing that food.

I notice that we will discuss amendments to Clause 6 relating to other bodies, such as the European food standards agency, but I hope the Minister will agree to our continuing participation in the European food safety alert system. The horsemeat scandal could have led to casualties. People could have died if it had been a food safety issue. Fortunately, it was passing off—it was a form of fraud—but we need to commit on a continuing basis to the food alert system that we have in place. To date the Government have been silent on that. I hope my noble friend will take this opportunity to commit to it.

I hope that when the Minister sums up the debate she will give a formal commitment and agree to write into the Bill those verbal agreements that have been made by the Secretaries of State for Defra and International Trade. Amendments 9, 13 and 14, grouped with Amendments 25 and 26, go to the heart of ensuring that the food safety, food hygiene, environmental standards and welfare we currently enjoy will continue once we have left the European Union.

My Lords, I will speak to Amendment 10. I am grateful to the noble Lord, Lord Purvis of Tweed, for his explanation. I say to the noble Baroness, Lady Jones of Moulsecoomb, that we know from history that trade is good for Britain and for other countries, including developing countries. I am nervous about writing too much into the Bill, as I will explain.

Noble Lords will recall from Second Reading that I very much support the Bill. Whether we have a satisfactory agreement or, less welcome, a no-deal Brexit, we need to write existing trade agreements into UK law. My noble friend the Minister has explained that all the necessary measures have not been included in previous Brexit legislation. This House rightly tries to support the orderly conduct of government and we have a duty to do so, whatever our views on Brexit. That must include preparing our statute book, either for 29 March or a later date, following a delay to Article 50 or a transition period. It would be irresponsible not to make preparations. Indeed, a lot of these measures should already be agreed, with commencement dates to be slotted in later.

I tabled this probing amendment, which is in effect an alternative to Amendment 8, tabled by the noble Lord, Lord Purvis of Tweed, for two reasons. We should avoid lumbering the Bill with detailed requirements that could put in question some existing trade agreements, might encourage costly legal challenge to agreements drawing on the criteria, and might fetter our ability to negotiate sensibly with third countries, either as we move from being a member of the European Union to being a third country or during future trade negotiations.

I recognise from discussion today that new FTAs will be the subject of future legislation, so I oppose Amendment 8 overall, although my amendment derives from it. However, there is one aspect of it with which I have some sympathy: the provision that specifies that agreements should not restrict the Government’s ability to determine whether public services are carried out by the private or the public sector. The reason is that, as a Business Minister, I was peripherally involved in the EU negotiations on TTIP and we—both the UK and the EU Commission—made a mistake by not making it clear right at the beginning that the draft did not require us to limit the NHS’s ability to keep health administration and procurement in the public sector; nor, indeed, did we have it in mind to use the agreement for that purpose. The understandable emotion around the NHS and confusion on that point led to widespread opposition to TTIP and made it impossible to conclude anything ahead of the 2016 US election. I support outsourcing—I draw attention again to my entry in the register of interests—but some operations are better kept within the public sector. At any rate, the Government of the day should have choice in that matter.

My Lords, I support the sentiments behind most of the amendments in the group, although perhaps not the exact wording. My focus is on environmental standards, their vital nature and why they are at risk under the current government proposals.

When we discussed Amendment 4, I made the point that it is much easier to be ambitious about standards if you are part of a pack, part of a group—which we were, we were one of the 28. When we are working on our own in a more isolated position negotiating bilateral agreements, even if they are allegedly rollover bilateral agreements, it is less easy to be robust and ambitious.

Environmental standards are vital in transitioning continuity agreements, but the other point, which has already been made, is that whatever we do in the continuity agreements is a harbinger, a signal, of how we want to handle negotiations on new deals, including deals with countries such as the USA and Brazil, where we know that big environmental issues will arise, particularly in agricultural trade deals. Agricultural standards impact not only on food standards and safety and animal welfare but on the environment. We do not want the chlorinated chicken debate replicated in individual trade deals for the future.

We need the Government to use the Bill to guarantee that all free trade agreements ensure, for example, that food imports meet the UK’s environmental, food safety and animal welfare regulatory standards. That should be the case in all negotiating mandates as well as in the subsequent agreements that flow from them. Import into the UK outside a free trade agreement is much trickier, but it is still vital that the Government set out very soon that they propose to use current World Trade Organization rules to maintain standards.

I will speak briefly to Amendment 15, the non-regression proposal from the noble Baroness, Lady Jones. International trade agreements have the potential to undermine or weaken essential standards, as we know from the TTIP negotiations, which have already been mentioned. Non-regression commitments are common in existing trade agreements, and a meaningful commitment to non-regression provides a useful safety net. All international trade agreements implemented pursuant to the Trade Bill should incorporate that principle. Indeed, we need to go further. We need to widen their scope and strengthen their enforceability if they are to help deliver the Government’s promises to improve the state of the environment.

Like the noble Baroness, Lady Young, I welcome the sentiment behind the amendments—in fact, I welcome their substance, but with one exception. I am uneasy about Amendment 25. I may have misunderstood it, but it seems to fall into a slightly different category—Amendment 15 is perhaps partly in that category, too.

I apologise for picking up one of the amendments in the name of the noble Baroness, Lady Jones, because she shames us all with her enthusiasm and hard work, but Amendment 25 seems slightly different because it would lay down a requirement on the Government to require something from the other participating Government in the agreement. Paragraph (b) requires that goods should,

“have been produced to standards that are comparable in effectiveness to those of the United Kingdom in protecting food safety, the environment and animal welfare”.

On the environment, India will be burning more coal next year than this year, and more the year after than next year. In China, coal will remain a very large part of the power mix. Would the amendment debar the Government from doing trade agreements with India or China in respect of goods produced using power? It would seem quite a wide provision to require the Government to require something from the other Government. I may have misunderstood it. I also recognise that it would only enable the Government to do these things; it would not require them to do them, yet I am not sure that the distinction indicates a real difference. If it was on the statute book, the Government might feel obliged.

Amendment 15 raises the question of non-regression. As I read it, and I may be wrong about this, too, it would place an obligation on the Government to require that the agreement incorporated the principle and that the principle applied to both sides—not just to us but to the other side. I may have misread that, but, if so, my point about China and India perhaps applies to it, too.