PARLIAMENTARY DEBATE
Australia-UK Free Trade Agreement: Scrutiny - 19 July 2022 (Commons/Commons Chamber)
Debate Detail
Her Majesty’s Government have made extensive additional scrutiny commitments, which include allowing a reasonable amount of time for the Select Committees to produce reports prior to the statutory scrutiny period under CRaG. We further set out that, for the Australia deal, this would be a period of at least three months. In actual fact, double the amount of time has now been provided: the agreement has been available for scrutiny for over six months. I should also point out that, before starting CRaG, Her Majesty’s Government published two reports to support scrutiny: the independent Trade and Agriculture Commission’s report on 13 April, and the Government’s own report under section 42 of the Agriculture Act 2020 on 6 June. Both reports were provided to the relevant Select Committees prior to publication to support their scrutiny work.
Her Majesty’s Government have now started the CRaG process, following this six-month scrutiny period, which was in addition to the statutory period provided for by CRaG. By the end of the CRaG period on 20 July, the treaty will have been under the scrutiny of this House for over seven months. The House will undoubtedly have benefited from reports from three separate Select Committees—the International Trade Committee, the Environment, Food and Rural Affairs Committee, and the International Agreements Committee in the other place.
In addition, the agreement can only be ratified once Parliament has scrutinised and passed the implementing legislation in the usual way. The agreement requires primary legislation, and the Trade (Australia and New Zealand) Bill is currently before the House of Commons and will have its Second Reading in due course. This legislation will be fully scrutinised and approved by Parliament in the usual way. I should point out that we expect Australia to conclude its parliamentary process before we do. Therefore, any delay to our process slows the deal’s economic benefits from being felt across Britain.
Let me say this to my hon. Friend: he knows that my brief usually covers other markets, but the principles remain the same. In my view, it is important to strike the right balance between the scrutiny of trade deals and bringing them into effect in a timely way so that our consumers and businesses can reap their full rewards. I believe that the balance is right, and that this House and my Department should continue to harness the power of trade to create jobs, boost wages and secure prosperity.
This is the first wholly new trade agreement that we have signed since leaving the European Union, but unfortunately it has not had the scrutiny it deserves. On 8 October 2020, the then International Trade Secretary, who is now the Foreign Secretary, said that
“we will have a world-leading scrutiny process, comparable with Canada, Australia, New Zealand and Japan. That will mean the International Trade Committee scrutinising a signed version of the deal and producing a report to Parliament, a debate taking place and then, through the CRaG…process, Parliament can block any trade deal if it is not happy with it.”—[Official Report, 8 October 2020; Vol. 681, c. 1004.]
I ask the Minister whether the Government are still committed to that point of principle. The Minister for Energy, Clean Growth and Climate Change, the Minister for Farming, Fisheries and Food and the Secretary of State for International Trade have made those commitments to right hon. and hon. Members of this House, and we deserve our say on a trade agreement that makes a significant difference. On the Australia free trade agreement, the Government began the 21-day CRaG process before the International Trade Committee had even produced its report and even before the Secretary of State had come before us to defend the agreement in the first place. The Government refused to grant the Committee’s request for 15 sitting days between the publication of the section 42 report and triggering CRaG, thus denying us more scrutiny. As I have already said, the Government have failed to provide a Minister in good time and good order. In relation to the first report the Committee wrote on this, the Secretary of State was asked eight times to come before the Committee to discuss the agreement. She only did so a week and a half ago. The Government have failed to provide a debate and a vote on the agreement, so will the Minister, as the Liaison Committee and many other Members across the House have asked, delay ratification for the further 21 days and allow us to have a proper debate on this issue? Will he ensure that every future free trade agreement is signed and drawn through the CRaG process, as you have suggested, Mr Speaker? Will he ensure that Ministers are made available to discuss trade agreements ahead of time?
We are asking for nothing that we have not been promised at the Dispatch Box. It is time we are given that.
The section 42 report is there to inform the scrutiny period, not create an additional scrutiny period above and beyond CRaG. We published that report on 6 June. As my hon. Friend says, it was sent to the International Trade Committee, the Environment, Food and Rural Affairs Committee and the International Agreements Committee in the other place on 27 May to ensure they had ample time to consider the report. There is a balance, as I say, between ensuring sufficient time for robust scrutiny and ensuring agreements come into place quickly. I think we have got that balance right.
On CRaG, the Constitutional Reform and Governance Act 2010 was introduced by the Labour party. It gave the opportunity for parliamentary disapproval of treaties statutory effect and it gave the House of Commons the power to block ratification. Members across the House will know the answer to that. I am more than willing to set out the process, but in the interests of time and allowing people to come in I shall sit down for now.
The Government’s failure to make adequate parliamentary time available for a debate on this trade deal is completely unacceptable and a clear breach of promise. Lord Grimstone wrote in May 2020:
“The Government does not envisage a new FTA proceeding to ratification without a debate first having taken place on it”.
The Select Committee has, rightly, been scathing about the way the Government have handled scrutiny on this issue and about their premature triggering of the 21-day CRaG process without full Select Committee consideration being available to Members. Today’s clear rejection of an extension to the CRaG process is, yet again, unacceptable behaviour from the Government.
The truth is that Ministers are running away from scrutiny. Might Ministers be running away because of the Select Committee’s report stating they lack a “coherent trade strategy”? Or might the Government be hiding from scrutiny because of the chaos at the Department itself? Members do not have to take my word for it. Yesterday, the Secretary of State was saying of her own Minister of State for Trade Policy, the right hon. Member for Portsmouth North (Penny Mordaunt), that there has been a
“number of times when she hasn’t been available which would have been useful and other Ministers have picked up the pieces”.
That is her own Minister. Maybe the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena), is one of the Ministers who has been picking up the pieces. Or might Ministers be hiding because of the lack of progress in their trade policy, with no comprehensive trade deal with the US in sight?
There are profound consequences for our agricultural sector from the Australian deal that Ministers should be open about and accountable for. Is it any wonder that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”?
To put it quite simply, when are Ministers going to stop running away from their own failure?
As for what my noble Friend Lord Grimstone said, processes for the other place are a matter for the other place. It is clear that the Labour party is so focused on process that they are not focused on securing the benefits for the British people of Brexit.
“abysmal record on deforestation, animal welfare and climate”.
The benefits of the deal are pennies compared with the amount that we are losing from not trading as much with our EU neighbours. The Minister is a temp, in place under a lame-duck Prime Minister in a dysfunctional Government. Why is this deal not being brought forward for parliamentary scrutiny, as was promised in this Chamber? Why are the Government flouting their own advice? Why are they happy to sacrifice the food and farming sector? Why would they press ahead with the prospect of job losses, higher food bills and fewer safeguards on food standards? This deal should be halted until we get answers. Scottish households, farmers and businesses deserve better than these acts of wilful harm. They must be given the chance to choose better than this place.
“The FTA does not require the UK to change its existing levels of statutory protection in relation to animal or plant life or health, animal welfare and environmental protection.”
It goes on to say—I am sure the hon. Lady has read this, but perhaps, given the time that has passed in the scrutiny of the deal, she has forgotten it—that the FTA
“goes beyond WTO rights and obligations”
in some instances, including the requirement for
“the UK and Australia to aim for high standards of protection in their environmental and animal welfare laws”.
“does not require the UK to change its existing levels of statutory protection in relation to animal or plant life or health, animal welfare and environmental protection.”
I hope that provides the hon. Lady and her farmers with reassurance.
I congratulate the hon. Member for Totnes (Anthony Mangnall) not just on securing the urgent question, but on the vigour with which he prosecuted it. What the Minister has told us today is not what we were promised by way of scrutiny, and it is not adequate, especially since we now know that the current Foreign Secretary, when she was Secretary of State for International Trade, was warned that this deal would be bad for British farmers and food producers. Will the Minister take back to Government business managers the message that the House needs to be given the debate and vote that we were promised, and that in order to inform the debate, all the advice that was given to the then International Trade Secretary and her successor is required to be published?
“This is like Christmas all over for Australia. There are currently 3,700 tonnes of product coming in from Australia. The agreement will increase it to 45 times that in 15 years.”
Are the Government afraid that the true extent of the damage to west country farmers from this trade deal would be laid bare by full parliamentary scrutiny?
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