Trade Bill

Debate between Stewart Hosie and Liam Fox

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.