Trade Bill

Liam Fox Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 19th January 2021 Commons Chamber

[Stewart Hosie (Dundee East) (SNP) [V]]

If I may start by making some general observations, we have previously agreed with the Secretary of State for International Trade about the necessity of keeping trade open, recognising the importance of supply chains and how important it is that we stand against protectionism. I am happy to reiterate all of that today. Indeed, we all should, because we need to combat the three main threats to trade. The first, self-evidently, is the covid crisis, which the World Health Organisation suggests could lead to a massive fall in global trade. The second is the impact of Brexit, and thirdly, we must address the systemic problem of the continued implementation of new trade restriction measures, and the continuation of existing ones. For example, tariffs valued at somewhere north of $1.6 trillion are in force around the world. I am not confident that any of those problems will be resolved any time soon, and the Bill does not address any of those matters directly. It is presented mainly as trying to facilitate the roll-over of existing deals, and maintaining trade that the UK has with third countries, which is vital.

The Bill does a number of other things, as the Minister set out. It creates procurement obligations arising from membership of the agreement on Government procurement. It creates the Trade and Agriculture Commission, and gives power to HMRC to collect and share data. As I have said, however, it is not without its problems, as evidenced by the large number of amendments that have come from the other place, which cover a large number of areas. I will address those issues shortly—and hopefully briefly.

As the Scottish National party has made clear during the passage of the Bill, a number of the problems relate to the impact on the devolved Administrations and consent, the role and powers of any scrutinising Committee, parliamentary scrutiny and approval, international standards and agreements, food and animal welfare issues, concerns about the NHS and, as we have just heard, concerns about human rights in trading partner countries. The amendments from the other place deal with a number of those issues.

Let me summarise the SNP’s attitude to the main amendments. Lords amendment 1 seeks to enshrine parliamentary approval of trade agreements. That is one of the fundamental problems with the Bill as it stands. The absence of meaningful parliamentary scrutiny and a parliamentary vote on significant changes or modifications, or in future on new trade deals that may be envisaged by the Government, is a massive problem. Modern democracies need full scrutiny of trade agreements, from the scope of the negotiating mandate, right through to implementation. Without amendment 1, the CRaG provisions, which are prayed in aid by the Government, amount to little more than a “take it or leave it” choice at the end of the negotiations, without the ability to amend. That is inadequate.

Lords amendment 1 also requires the UK Government to consult the devolved nations. That is not consent, but it is progress of a sort.

Lords amendment 2 seeks compliance with international obligations. We raised that matter previously, and new clause 7 on Report was designed to do a number of things. First, it was intended to affirm the UK’s rights and obligations under the sanitary and phytosanitary measures in annex 1A of the WTO agreement. The amendment focuses mainly on human rights, but it also states that before publishing trade objectives, the Government must conduct a risk assessment to consider whether the agreement would comply with the UK’s international treaties and other obligations. It seems eminently sensible to ensure that any free trade agreement complies with international obligations, whether human rights obligations or otherwise.

Lords amendment 3 deals with genocide, and as the Minister knows, there has been a great deal of support for such a measure. There are some serious concerns about the amendment as it stands, not least in allowing the English High Court to determine what is and what is not genocide, but the principle of revoking a trade deal with a state committing such heinous crimes is beyond reproach.

Lords amendment 4 covers IT and related activities in the NHS. I have previously argued that there should be no use of negative listings, because such clauses require that all industries are liberalised in trade agreements unless there are specific carve-outs, and it is not always easy to define which services count as, for example, health services. Digital services may be irrelevant to health, but NHS data management and GP appointment systems are increasingly digitised. There should be no standstill or ratchet clauses, because those provisions would mean that after a trade deal was signed, parties would not be able to reduce the level of liberalisation beyond what it was at the point of signature. Lords amendment 4 explicitly excludes the use of such negative listing and ratchet clauses and rules out the use of ISDS-type provisions for public services, including health, which would be extremely popular with the public.

Lords amendment 5 addresses ratification, including the requirement for a debate. I have previously asked whether, if it was the intention of the Government to provide sensitive information to a scrutiny Committee, that would be the Select Committee on International Trade, chaired by my hon. Friend the Member for Na h-Eileanan an Iar (Angus Brendan MacNeil). I also asked whether any papers provided would be publishable or restricted. Lords amendment 5 would force the Government to publish an analysis, which would presumably ensure that such information was more widely available. The amendment would also ensure that a debate was held, on the recommendation of such a Committee. That is a very sensible measure indeed.

Lords amendment 6 deals with standards, including food and animal welfare standards, which are of massive concern to the public. As I said on Report, we know that trade deals can put pressure on food standards and lead to the importation of low-standard food. For example, the previous US Administration made it clear that they wanted the UK to lower its food and animal welfare standards. We suggested a ban on the importation of food that was produced to standards lower than those in the UK. Lords amendment 6 is clear that a Minister of the Crown should ensure

“as far as possible that a future trade agreement is consistent with United Kingdom levels of statutory protection regarding, among other things—

(a) human, animal or plant life or health;

(b) animal welfare;

(c) the environment;

(d) food safety, quality, hygiene and traceability;”

and so on. That is an eminently sensible thing to do. The amendment also states that should a Minister seek to change standards, they would have to “seek the consent” of the devolved nations in advance. That is absolutely the right way to proceed.

Lords amendment 7 seeks additional protection for children online, ensuring that legislation is consistent with international treaties. Lords amendment 13, which I understand the Government are minded to accept, addresses the relationship with the devolved Administrations, ensuring that Her Majesty’s Revenue and Customs can provide information to the devolved Administrations so that they can fulfil their obligations in terms of trade.

A comprehensive trade Bill is vital, but it has to be right. This Bill has been subject to dozens of amendments in the other place, many with widescale public support. There is still a great deal of work to be done and compromises to be made before this Bill is acceptable.

[Dr Liam Fox (North Somerset) (Con)]

I want to say at the outset that I completely agree with the need to set ethical frameworks in all our overseas dealings, including trade. In so far as these amendments deal with China, I also completely agree that the treatment of the Uyghurs is a violation of historic proportions that should be condemned whether or not it meets the very high legal test of genocide. We should be willing to take action when we think that behaviour does not meet that very high international bar.

However, I am against these specific Lords amendments for four reasons. First, I think trade policy should be conducted via the elected Government through Parliament. I, along with many Conservative Members, voted to leave the European Union to take back control. I do not want to take back control from unelected judges in Europe and give more power to judges in the United Kingdom, however high the esteem in which they are held. I want the decisions about the ethical nature of our policy to be decided in Parliament, by elected parliamentarians. I agree with many of the elements that are being discussed here. I do not want to see more powers coming back from Europe, only for them to be exercised by royal prerogative; I want to see them exercised by the democratic House.

--- Later in debate ---

[Steve Brine]

Will my right hon. Friend give way?

[Dr Fox]

I will not—my hon. Friend will forgive me—given the constrictions on time.

It would have been possible to create a system that allowed us to do that. The House would have been happy that Parliament would have been able to set those parameters, and not anyone else.

[Ms Ghani]

Will my right hon. Friend give way?

[Dr Fox]

Okay, I will give way to my hon. Friend. She has charmed me into it.

[Ms Ghani]

My right hon. Friend will know that we have offered such a compromise, which very easily separated the role of powers, whether of the courts, the Executive or parliamentarians, but it has been rejected outright. If there is no apparent objection to that, really, what is the Government’s position on dealing with genocide within trade?

[Dr Fox]

My hon. Friend should ask the Government; I am not the Government. My view is that we want to ensure that the powers are exercised exclusively by Parliament. I do not want any outside body, including the courts, to have a say on what we should or should not do. But I agree that we could have had a mechanism that allowed the House to do that in a way that satisfied all the reservations that have been put forward.

My second reason for objecting to the amendment is that I think it is the thin end of the wedge. If we set a precedent that says that the courts can make a judgment on genocide, where does it stop? In future trade Bills, we may get amendments on the use of torture or on other human rights violations. Valid though those points may be, once we have set a precedent that the court can make a judgment and tell Parliament what it can and cannot do, I wonder how we can reverse that trend.

Thirdly, I think the amendment is not good for our judges. It is difficult to know what the evidential base would be upon which judges would make such a decision, and therefore we bring judges into the territory that many of us saw and were uncomfortable with in the last Parliament, where judges are dragged into making political decisions; that is an uncomfortable place for them and us.

Finally, I do not think this amendment would make any difference whatever to the behaviour of the Chinese Government in relation to the Uyghurs or anyone else. It would not affect our trade with China in any way, shape or form. It would not even deal, for example, with dual-use materials when it comes to the Chinese state security apparatus. For that reason, it is an impotent tool when it comes to dealing with the Chinese Government.

If we believe in this Parliament that the behaviour of the Chinese Government warrants sanctions, we have sanctions available to us. The British Government, if enough pressure is applied by Parliament, can use those sanctions—whether the Magnitsky sanctions that come from our more recent legislation, or wider sanctions. We do not have to wait for an international agreement to be able apply sanctions that we are bringing forward on the grounds of the high bar of genocide. So it is up to Parliament to make such decisions.

We talk about taking back control, but Parliament has got to stop giving its decision-making powers away. If we want to be respected in this Parliament, we have to be the ultimate arbiters of the decisions and direction of travel of our country. We can have those powers. I say to the Minister for Trade Policy that we have had these discussions. I hope that the Government will bring forward mechanisms that allow the House to have much greater scrutiny at the outset of a trade negotiation to set those ethical parameters.

[Sir Iain Duncan Smith]

I will be quick, because I know that my right hon. Friend has to be quick. When it comes to genocide, it is different, because genocide has to be decided by the courts. We have no right to make that decision. So how is he going to allow that we would affect anything on trade, unless a court makes that decision? Why not the UK courts, so that then we can decide if we implement it or not?

[Dr Fox]

Because I believe that the high court of Parliament is the appropriate place to do that. Parliament can apply sanctions where it believes they are justified. Our new legislation allows us to do that.

I believe that setting a political precedent to make a political case is bad practice. If Parliament wants to take action against China or any other country, on behalf of those who they believe have been partially, unfairly or violently dealt with, the best route is to try to pressure the UK Government to take those measures. The Lords amendments being put forward today for the very best reasons are the very worst practice. That is a good reason for Parliament to reject them.

[Madam Deputy Speaker]

Before I call the next hon. Member, I give notice that the time limit will be reduced to four minutes after the Chairman of the Select Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil). We have three more colleagues on six minutes; thereafter, four minutes. I call Shabana Mahmood.