Trade Bill

Lord Hendy Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 8th September 2020 Lords Chamber

[Lord Hendy (Lab) [V]]

My Lords, I offer my congratulations on the two maiden speeches today and thank the right reverend Prelate for reminding us of, among other things, the importance of human rights and our duty to protect those who lack power.

Members of your Lordships’ House have raised many matters of concern in relation to the Bill, not least the lack of parliamentary scrutiny. I wish to raise three issues, touched on by others. The first is ISDS arrangements, or investor-state dispute settlement arrangements, such as the tribunal established in the Comprehensive and Economic Trade Agreement with Canada. Originally, ISDS arrangements were set up to give a right of action to investors from developed countries sceptical of enforcing their contracts in states with underdeveloped judicial systems and laws. ISDS has now become a monster, where the decisions of and laws passed by democratic states are under threat of claims for millions, and even billions, of dollars from foreign corporations.

The Minister said in opening the debate that free trade agreements “cannot change UK law”. That is true, but they can override UK law. This is an intolerable threat to the supremacy of Parliament and the rule of law—an issue with which this Government seem to have real difficulties, as events today highlight. ISDS rests on explicit discrimination, incompatible with the European Convention on Human Rights, against our citizens, investors or not, who have no right of access to ISDS tribunals. Only foreign investors have that special and unjustifiable privilege.

The second point I wish to raise is that it is appropriate that the Bill should ensure that existing rights are protected. In relation to our labour laws, in free trade agreements there must be better protection for UK labour standards than at present. I echo the wider point made by the noble Baroness, Lady Coussins: the Bill should ensure that other state parties to free trade agreements, and indeed the UK itself, do not obtain competitive advantage by failing to comply with fundamental ILO conventions and other international treaty obligations.

The third concern is that the government procurement agreement, or GPA, should ensure that public authorities in the UK, including the devolved Administrations, have the right and power to impose public procurement conditions that require contractors to observe the current requirements of UK labour law and the ILO conventions ratified by the UK. Such conditions are permitted by current law, which has been established by EU directives on the subject, but with Brexit that might change. It would be good if the Minister were able to give us reassurances on those three points.