Poultry Industry

Debate between Baroness Ritchie of Downpatrick and George Eustice

Tuesday 20th January 2015 Commons Chamber

[George Eustice]

It is widely anticipated that the US will make concessions, but the hon. Gentleman makes a good point. The opening offer from the EU was deemed to be somewhat more generous than the opening offer that came from the US. That was recognised. At a session that I had with Tom Vilsack, who was representing the US, and other EU leaders, that was one of the points that was raised.

I appreciate the concerns about the implications of the different approaches taken to food safety and animal welfare as between the US and the EU and, in particular, whether this could place UK producers at a competitive disadvantage. I shall return to this point later in my remarks. First, we need to recognise that any free trade agreement is about setting the foundations for a better, more effective trading environment for our producers. This includes outlining specific areas for deeper collaboration to ensure that we are maximising trade opportunities. For agriculture, this includes establishing a better transatlantic relationship with regard to animal and plant health—or, to use the jargon, the sanitary and phytosanitary measures.

The aim of TTIP will be to formalise how the EU and US work together in this area to facilitate trade, while protecting human, animal and plant health. I should point out that that is not something new. For example, the EU has negotiated deals with a number of countries, including with Canada and Korea—both of those deals include dedicated sections on animal and plant health measures. Each agreement sets out some specific details in a tailored way, but ultimately outlines a template for future co-operation in a given field. If we can achieve that with Canada and Korea, I see no reason why it should not in principle be possible to achieve the same with the US.

We should bear in mind the fact that a free trade agreement is just the beginning of the process, not the end. Once agreed, TTIP would form the basis from which to negotiate specific market access issues, product by product. For example, the detail of specific sanitary requirements for poultry exports to the USA would be set out in an export health certificate, which would be negotiated only once discussions on equivalence had been concluded. The UK would be fully engaged in all stages of these European-led negotiations to ensure that UK exporters get the most favourable conditions possible in order to facilitate our exports. We should remember that exports are as important for our industry as they are for the US.

We should recognise that it is inevitable that different countries will take a different approach to ensuring food safety and animal welfare. The UK and wider EU farm industry takes a farm-to-fork approach to food safety, as the hon. Member for Brecon and Radnorshire pointed out, whereas the US approach has historically focused on the safety of the end product and taking safety measures closer to the point that food is consumed. Although such differences in approach are definitely relevant, they should not present an insurmountable obstacle to trade, which is why the principle of equivalence is important.

[Ms Ritchie]

Will the Minister indicate how the British Government intend to reconcile our much higher standards for poultry meat with the lower standards in the United States? That is the basic fear that we are expressing on behalf of Moy Park in Northern Ireland, the second largest poultry producer in the UK.

[George Eustice]

That is precisely what is going on in the detailed discussions to which I have referred. Many of the points the hon. Lady asks about would be resolved when export health certificates were agreed, and those certificates sometimes include a recognition of animal welfare considerations. Such details will be teased out in the negotiations, but I would say to the hon. Lady that we already import quite a lot of food from the US—from confectionary to cereals—and it is already required to meet EU standards. Such food is not necessarily produced directly in compliance with EU regulations, but through negotiation it has been deemed to meet EU standards. TTIP would apply a similar principle.

We certainly do not want a trade deal that undermines the current good farming practices in the UK sector, which are a hallmark of our poultry industry. I can reassure the hon. Member for Brecon and Radnorshire that EU negotiators have consistently stated that we will uphold the EU’s food safety standards throughout the TTIP discussions.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Eustice

Thursday 11th December 2014 Commons Chamber

[George Eustice]

My hon. Friend makes a good point. At current prices many farmers are indeed making a loss, and at the dairy supply chain forum we discussed volatility. The last two years have been a rollercoaster ride for the dairy industry—it had a dire year in 2012, last year was very good, but this year is bad again. We have considered whether we can develop a successful futures market, for example in skimmed milk powder or cheese products, to help farmers manage that volatility in future.

[Ms Margaret Ritchie (South Down) (SDLP)]

With volatility in the dairy industry impacting on farmers generally, does the Minister agree that the EU intervention threshold, which was agreed at 18p per litre in 2003, does not protect dairy farmers across the UK and is in urgent need of review? What representations will he make to Brussels on that?

[George Eustice]

I met Northern Ireland representatives from Dairy UK when I was in Brussels last week and they raised that point with me. The European Commission is looking at the intervention price, and our officials are working on what the appropriate price would be. Generally, an increase in that intervention price would tend to benefit other countries that have lower prices before it benefits UK farmers, but we are considering the issue.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Eustice

Thursday 12th June 2014 Commons Chamber

[George Eustice]

The hon. Gentleman makes an important point. This is one of the key issues being raised with Ministers as we go around agricultural shows. We will have a summit on the matter before the summer recess. A number of factors are driving this: it is partly due to changes in global commodity prices, but it is also clear that in some cases supermarkets are taking a larger margin than before. Regarding solutions, we are keen to open new export markets for British beef so that farmers can get a better price. We are also keen to ensure that there is fair contracting between farmers and processors, and between processors and retailers.

[Ms Margaret Ritchie (South Down) (SDLP)]

The Minister will be aware of my correspondence on the export of pork to China. From his correspondence to me on 8 May, I know that inspections are to take place with the authorities in Northern Ireland, as DEFRA regulates the negotiations on behalf of the whole of the UK. Will the Minister advise the House on when those inspections will take place? What is the possibility of approval following on from that?

[George Eustice]

The hon. Lady has raised this issue with me a number of times and we have had meetings on it. It was also raised with me at a meeting in Northern Ireland at the beginning of this year, and we continue to raise it with the Chinese authorities. When Mr Zhi, the Chinese farming Minister, was in the UK in April we took the opportunity to raise it again. We want more meat processors to be able to export pork to China and we need clearance for their plants. We will continue to keep up the pressure.