Transatlantic Trade and Investment Partnership

Robert Jenrick Excerpts

Thursday 10th December 2015 Commons Chamber

[Robert Jenrick (Newark) (Con)]

I thank the hon. Member for Swansea West (Geraint Davies) for enabling us to debate this issue. I am very glad that we are having the debate, and that my right hon. Friend the Minister for Small Business, Industry and Enterprise will be responding to it.

I have a great deal of sympathy with the motion. While I think that we need accountability when it comes to one of the biggest trade deals in history—if not the biggest—and that the House should provide that accountability, I also think that few significant issues in politics today have been so poorly considered in the public realm. That may be due to a lack of knowledge for which, perhaps, we are all responsible. We, as parliamentarians, should play our part in trying to inform and educate the public as well as listening to them, so that everyone in the country understands the true nature of this deal. However, there has also been a huge amount of misinformation and distortion on the part of certain groups, and that has led to a general sense of concern. Like other Members, I have received hundreds of emails and letters about this issue over the last year or so. I believe that the concern is unnecessary, because there is far less to fear than those groups suggest, but a more important consideration is that it obscures, purposefully, the huge opportunity that this deal presents to all of us.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I think that the hon. Gentleman put his finger on it when he used the phrase “far less to fear”. He said that people did not understand the deal, but that is because it has not been properly explained to them. Some of them fear that there is a Trojan horse, but whether there is or not, we cannot move forward without consensus among the public, whether they are worried about jobs, about the environment, or about the precise contents of TTIP. If people do not understand something like this in a representative democracy such as ours, what can we do?

[Robert Jenrick]

The hon. Gentleman has made a good point. That is why I am pleased to see that the Minister is present, and why I was pleased when, on the occasion of our last debate on this subject—in 2014, I believe—my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) responded on behalf of the Government. I want more Ministers to convey the case for TTIP to the public, engaging in a genuine, informed debate, and trying to sell the deal in a rational way. At present, it is being led by groups who have come out with some pretty poor-quality public discourse.

Some of the emails that I received this week were fairly ill informed, to say the least. I suspect that they were generated by 38 Degrees. They were all the same, apart from the fact that the adjectives varied: the deal was variously described as dodgy, dangerous, evil and sinister. There could not be a more pathetic quality of debate. Let me say to those behind the emails, “For goodness sake, have the strength of your convictions: raise the quality of debate and argue rationally, rather being so immature.”

The Government must lead the debate. They must support a project which I believe has huge potential to build transatlantic links to bring Britain and Europe closer to America, and to create a huge and important new free trade area and myriad opportunities for jobs and growth. We are not necessarily talking about large corporations; as was rightly pointed out by my hon. Friend the Member for Aberconwy (Guto Bebb), this is about businesses both large and small. Only last week, I met representatives of some businesses that will benefit from this kind of deal. They were not large corporations, but small and medium-sized businesses that were trying to make a living and create jobs.

[Mr Andrew Smith]

What is the hon. Gentleman’s answer, however, to the concerns raised by his right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) about the real dangers TTIP presents of disproportionate corporate power being used to manipulate a bureaucracy which is not democratically accountable?

[Robert Jenrick]

I will come on to that now, because there are a few specific points I want to make, some of which have already been raised by other Members. One is about healthcare. This has been a political football on both sides of the House for far too long. As my hon. Friend the Member for Aberconwy said, the Health Committee wrote to the negotiators and received an incredibly comprehensive reply, which I would recommend to any Member. I have sent it to every constituent who has written to me about TTIP. I am not a friend of the EU—I am a Eurosceptic—so it is unusual for me to say that this is one of the most straightforward, comprehensive, honest answers I have ever seen from a European bureaucrat. I say this to other Members: “Please, if you haven’t read this, read it and send it to your constituents, because it does more to debunk the myths than anything else I have seen on this debate.” I will not rehash it, but I think it is incumbent on every Member of this House to read it and to appreciate how comprehensive it is and that it demolishes all those myths and scaremongering.

Overall, suppliers are already able to offer hospital services and health-related professional services through a commercial presence in the United Kingdom. The important thing for everyone who engages in the provision of health services and healthcare through companies in this country is that they have to comply with UK standards and regulations in the same way as British healthcare providers do. Those standards will remain under the sovereignty of this country and this Parliament, regardless of TTIP.

I appreciate that there is genuine concern about ISDS, but again I think it is fairly ill informed. I was a lawyer and the first case I worked on as a trainee solicitor many years ago was for a small British investor that had used a bilateral investment treaty very similar to this one to invest in eastern Europe. This perfectly legitimate UK company had seen its licence revoked illegitimately by that Government, and this small investor was able to use that treaty to get its money back and win justice. This is not about large corporations exploiting the system; it is about all investors around the world, including our own businesses being able to hold other Governments to account and ensure that they do not make arbitrary and poor decisions that negatively affect British companies.

As we have heard, ISDS is not a novelty. This is not some new threat that has recently emerged. These clauses have been put into most trade deals for years and years. I have heard the familiar examples of odd cases and inactions around the world, but these clauses have not had the effect that has been described in the media. As we have heard, 3,400 of these clauses have been inserted into trade deals globally. The EU and its members have 1,400 such clauses in various trade deals, and the UK has 94 in our existing bilateral treaties. We have twice been challenged and we have never lost a case under an ISDS.

What we have done, however—this is an important point that has not been made—is successfully bring claims against other countries. We have had slightly more success in that regard because the point of an ISDS is to underline the value of the total agreement and make sure no individual investor or business can be disadvantaged by another Government or union of Governments breaking the obligations they have entered into and negatively affecting our own businesses and investors, large and small.

It has been said that these treaties have primarily been used in developing countries, such as in the case I just mentioned, where potentially the legal system was not as good as ours or that of the United States, but of course although the US does have a very good legal system, it is a very expensive legal system where cases can take a long time. I actually think that this would be a very useful device for our small and medium-sized companies.

Similarly, there are states in the EU—some southern European countries, for instance—where American investors I have met and spoken to over the years would be very reluctant to sail into if they had to rely entirely on taking matters to the legal processes of those states to challenge the bona fide of local officials in respect of whether they were complying with the agreement. On both sides of the Atlantic, although there would be very few cases, I think they would generally be beneficial.

I was going to talk about transparency, but nobody could have put that point better than my hon. Friend the Member for Aberconwy, and of course a degree of secrecy and confidentiality is important, because the US has very good negotiators in trade talks, and we want our negotiators in the EU, which is in a difficult position being a union of 28 nation states and Governments, to be in the best possible position in these talks, and not simply give everything away. This is one of the more transparent trade deals we have seen, and certainly one of the most transparent the EU has done, and the commissioners are trying to be as forthcoming as possible.

This free trade deal is, as we have heard from at least some Members, a huge opportunity. The United States is not a threat to us; it is the UK’s single biggest export destination. Some 17% of our exports go there, and it is important for a whole range of our sectors, such as aerospace, as we have heard about, the creative industries, and the luxury goods industry. The UK is a world leader in that, and America is home to more affluent households with disposable incomes of more than $300,000 than any other country. It is a huge market, therefore.

Only last Friday I visited a business in my constituency that is trying to put hearing loops into the New York metro, but is having to spend thousands of pounds to meet the various and complex regulatory burdens involved.

[Richard Arkless (Dumfries and Galloway) (SNP)]

On that point, would the hon. Gentleman try to persuade his Government colleagues that the US should lift the ban on haggis, and would he welcome that?

[Robert Jenrick]

That is a very good point and I certainly would welcome that. I want to see British businesses from all parts of the United Kingdom getting into those markets and creating jobs.

We have heard that tariff barriers are now quite low—down to around 3%—but it is the non-tariff barriers that need to be pushed aside for the benefit of businesses like those in my constituency, and TTIP offers a huge opportunity to create the jobs and growth of the future. It is a massive potential win not just for our constituents and businesses, but for humanity as it offers an opportunity to bring the west together to protect our economic and national security.

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[Peter Grant]

The point I am making is that there could be concerns about the maturity of the legal system of some countries with which we might want to enter into international agreements. The example given earlier was countries in southern Europe, but the last time I checked they were part of the European Union. If they are acting in breach of a treaty that has been signed up to by the EU, I would have thought that there would be recourse through the European courts. If there is not, perhaps that needs to be looked at. I fail to see why it is necessary to have a separate form of recourse for companies that want to sue sovereign democratic Parliaments and Governments, one that is not made available to citizens of the countries who have elected those Parliaments in the first place.

[Robert Jenrick]

The hon. Gentleman is making a decent point, but the UK is already in bilateral investment treaties with a range of other countries around the world that have mature democracies, and some of these treaties have ISDS arrangements. The EU, including the UK, has just signed up to one such treaty with South Korea. Is he suggesting that we withdraw from all those bilateral investment treaties around the world, including important ones such as the recent one with South Korea?

[Peter Grant]

I am not suggesting that at all. I suppose the question might be: if the ISDS has been so successful, why is it being scrapped and replaced by something else?

One final observation that I want to make is that although the Government clearly regard completion and ratification of TTIP as being a major selling point for staying within the EU—I believe the Foreign Secretary said as much before the European Scrutiny Committee—a sizeable body of public opinion in the UK takes the opposite view. I do not know how sizeable it is, but it is there. There are parts of the UK, including a lot of areas in Scotland, where people want to be part of the EU but will change that allegiance if TTIP goes ahead. That might be music to the ears of some Members, but the Government may be making a massive tactical mistake if they believe that support for TTIP will persuade more citizens to vote to remain in the EU. There is a serious danger that it will actually have the opposite impact. The tragic irony of it is that if TTIP is already done and dusted before the EU referendum, people will vote to leave the EU and then discover that they are still lumbered with TTIP for 20 years, because once we have signed up to it even our leaving the EU does not allow us to get out of it.

I make an appeal to Members, and this applies regardless of whether they have already decided in their own minds about the merits or otherwise of TTIP and whether they think it is a good or bad idea. Once we know the full details of what TTIP and its associated agreements are going to mean, surely we must have a proper and full debate in this place, and in the Parliaments of the rest of the EU, at least in order to give MEPs a clear steer as to how they should be exercising their vote in the binding decision that they will take at some point in the future.

--- Later in debate ---

[Helen Goodman]

I am pleased to see the right hon. Gentleman nodding in agreement.

[Robert Jenrick]

The UK has 110 bilateral investment treaties, almost all of which have ISDS, including with some very sophisticated countries such as Singapore and Hong Kong, where the legal system, certainly for commercial cases, is acknowledged to be excellent and akin to ours. Is the hon. Lady saying that the UK should withdraw from all or some of those bilateral investment treaties, on the basis of her previous experience as a Minister?

[Helen Goodman]

I am not saying we should withdraw. Perhaps we should have more parliamentary scrutiny of what is going on under the arrangements we have; perhaps we are shedding a light on them; and perhaps we should be grateful for those constituents who have alerted us to the issue. I am grateful not because we have to accept every single message in its last detail, but because they have triggered my looking into this more deeply.

Lack of transparency in the negotiations, weak parliamentary scrutiny and the risks mean that it is very important that we do not agree to this measure unless we strip out the ISDS. I am extremely pleased to support the motion this afternoon.