Trade Bill — House of Lords, 2020-12-15
Topic: International Affairs
Jeremy Purvis (Liberal Democrats, Centre to centre-left): My Lords, in moving Amendment 16 I will speak to Amendment 25. Before I do so, it would be churlish of me not to congratulate the Minister on a victory on Report. I half expected him to move to adjourn and quit while he was ahead I tabled these amendments with a degree of regret. They should be unnecessary, but I am grateful to noble Lords who indicated that they would participate in this group, including my noble friends Lady Sheehan and Lord Bruce. Amendment 16 would put on a statutory footing a prohibition on tied aid, and Amendment 25 seeks to prevent economic disruption for some of the least-developed countries should the UK fail to agree continuity agreements at the end of December I mention regret because one of the reasons for tabling Amendment 16 was to respond to some statements that the Chancellor and the Foreign Secretary made recently on what I believe is a shameful decision to breach the UK’s obligations under the 2015 overseas development target Act to meet its commitment to spend 0.7% of GNI on overseas development assistance. When that announcement was made, the Foreign Secretary also highlighted certain forthcoming reforms to assistance away from the legislative basis in the 2002 Act, under what is potentially a repeal of the 2015 Act My regret was also about the fact that we should not need to try to put into legislation commitments that Ministers have made. I am pleased that the noble Baroness, Lady Noakes, is following me because she has repeatedly made that argument. I think that we have a genuine disagreement on this—while not necessarily in principle then certainly in balance. We sometimes take Ministers’ statements, accept their word and believe their intentions, and that does not necessarily have to be reflected in legislation. But there are also times when we wish to restrict a Government, regardless of any individual incumbent Minister or position and regardless of which party forms the Treasury Bench in the Government However, commitments on ODA and on our trading relationships with the least developed countries have been made repeatedly this year in the teeth of the Covid crisis, both previously and more recently. The Minister for Africa, James Duddridge, said in June that it is the law for us to meet 0.7% and we—meaning the UK—will obey the law. In July, the Foreign Secretary said that we remain committed to 0.7%, and in September the noble Lord, Lord Ahmad, said to the global NGO community in Geneva that we reaffirm our commitment. However, we now know that the Government no longer take that position. The UK has adopted a convention and approach regarding tied aid since the OECD Development Assistance Committee introduced the principles against tied aid in the early 2000s. A number of commitments are reflected in the amendment and I do not need to rehearse them—I hope that the amendment speaks for itself regarding the obligations that we feel the Government should be bound by. I am sure that my noble friends will give egregious examples of assistance which should have been directed towards the most vulnerable and the poorest in the world having been used to advance British commercial interests—indeed, tying the assistance to those commercial interests The UK has been, and still is, a leader in that approach. We represent the top tier within the OECD for not having tied aid. Repeatedly and consistently, more than 90% of our overseas aid is not tied in any way, shape or form, and indeed the remainder comes within a degree of justifiability, which the OECD DAC already allows for So that begs the question: why would we seek to put into legislation the commitments that we have made and honoured? I repeat that it is because, unfortunately, we have seen commitments given by this Government but not necessarily adhered to. I hope the Minister can reassure the House that there is an absolute commitment that the UK will not renege on any of the OECD standards on tied aid and that we will maintain our high standing. It would be a very retrograde step if, while cutting our overseas aid around the world by a third over the next year, we also attached conditionality to the remainder for commercial interests. I hope that the Minister can be categorical on this I give the Minister notice that for me, this is a very strong issue. We know that the Bill will come back to us in the first week of January, so I am aware that if I seek the opinion of the House on Amendment 25, it will be after the 31 December break point. On the issue that the amendment seeks to raise—the Minister knows that I sought to speak to him about it—I hope that the Government can be persuaded to act at this eleventh hour to avoid unnecessary, possibly devastating impacts on exporters from Ghana and Cameroon in particular. We have tried to frame the amendment so that it captures both. Regardless of the exact drafting of the amendment, I hope that the Minister can understand its thrust In Committee—I think in a debate that the noble Lord, Lord Lansley, and I took part in on the global scheme of preferences—concern was expressed about Kenya, Ghana and Cameroon in particular. An agreement in principle with Kenya, although problematic with its regional partners, has been made and I welcome that, but the concerns about Ghana and Cameroon remain. I am aware of certain developments since I tabled the amendment. We were looking at the very bleak situation of Ghana and Cameroon trading on the previous basis and then on a potentially worse set of tariff procedures than under the EPA relationship With regard to Ghana, I understand that the UK has now agreed to use a regional text as a basis for negotiations. I understand that that had not been the case prior to very recent developments. Therefore, the current focus on looking at a holding mechanism between the UK and Ghana that will allow for a regional trade framework to be put in place could well be the means of moving away from the precipice of 31 December. The aim for agreement by the end of this year will, I think, be encouraged by most Members of the House, but of course we will have to see the detail, particularly regarding the liberalisation commitments in Ghana, which had been a concern. Therefore, I hope that the Minister can make it clear that there will not be a cliff edge for Ghana Turning to Cameroon, I understand that on the outstanding rules of origin issues, there have been holding arrangements for four months rather than three, to allow for a resolution of final issues—perhaps similar to the compromise recently reached for Northern Ireland. Can the Minister confirm my understanding of that Therefore, it looks as though there has been progress, but I want to close by giving one brief example of why this issue is important, not only for those working within fair and open trade in Ghana and Cameroon but for British consumers. On a recent visit to my nearest Sainsbury’s in Kelso in the Scottish Borders, I looked at the fruit department and saw bananas from Ghana. Thursday of this week will be the deadline for exporters of bananas from Ghana. Shipments of bananas and pineapples have been processed and are ready to be shipped from Tema to the United Kingdom. Those exporters do not know the value of that cargo because they do not know what the tariff and border arrangements are for the following week. The deadline for them is Thursday of this week, so it is very important for the Minister to give a strong reassurance on that. Tuna exports have now ceased. They are cargoed and at Tema port, and there is also uncertainty regarding those exports At the very least, if any British consumers wish to buy fair trade bananas from their supermarkets or fruit and vegetable stores, or indeed fresh tuna, they might, through the example I have given, become aware of the dual consequence of a lack of government assurance. If the Minister is able to provide reassurance today, that will give exporters a degree of confidence. They will be able to proceed on the basis of the Minister’s commitments and then provide that information to customers in the UK so that there is no disruption. I hope that the Minister is able to provide that information. I beg to move.