UK-US Trade Deal Negotiating Objectives — House of Lords, 2020-03-02
Topic: Foreign Trade
Robert Stevenson (Labour, Centre-left): My Lords, I first apologise for not being present at the very start of proceedings on this Statement. Unfortunately, my printer got stuck and I had to wait until I was able to clear it with technical help. I therefore missed the opening sentence, but I had been given a copy of the Statement and had read it before We support an ambitious trade agreement that unlocks economic growth, creates new jobs and elevates rights and standards. I thank the Minister for repeating the Statement following the publication of today’s negotiating mandate for the Government’s flagship trade agreement with the USA. Of course, some 20% of our current trade is already with the USA. It is our second-biggest market and we have enjoyed decades of two-way trade with no underlying trade agreement. So, while I welcome the publication today, I wonder whether it was quite necessary to do it in the way it has been done and to carry the tone it does The Statement says that an "ambitious" free trade agreement with the US could result in "a £15.3 billion increase in bilateral trade and a £3.4 billion lift to the economy." These are substantial figures. However, can the Minister confirm that this is over a 15-year period? These results will be slow to come and indeed, given the length of time, are not very substantial on their own. Can he also confirm that, at the end of that time, the British economy would be only 0.16% larger by 2035? This hardly compares well with the loss in trade of some 5% of GDP—some argue it could be worse—if we fail to complete an ambitious free trade agreement with the EU Secondly, the Secretary of State has said positive things about the NHS and the price of medicines, and that there will be no compromise on environmental protection, animal welfare and food standards. However, the Government have so far failed to enshrine this in primary legislation. There is an amendment to the Trade Bill that left your Lordships’ House in a previous Session that would do it. Why do they continue to prevaricate on this point There is a lot in the Statement about tariffs and quotas, which are important, but there are already very low tariffs between the UK and the US. The main problem is regulation. To take food as an example, the US position is generally that its food is just as good as European food and our standards are just protectionism. The problem is that American food is not the same, by any standards. Farming in the US is mostly on a large, industrial scale, and the animals are kept in conditions so poor that they get ill or do not thrive unless they are also fed a lot of antibiotics and steroids, not to mention hormones that maximise growth. We, on the other hand, through the EU have a farm-to-fork policy that regulates conditions throughout the life cycle. So what you dunk a chicken in before it is presented for sale is really shorthand for a wider question of how that animal has lived. How are the Government going to square that circle In the same field, will the Government reaffirm their commitment to international labour standards and rights and require the US to sign up to the ILO conventions, which it has so far failed to do Thirdly, what is most striking about the document is that it seems to ignore the US negotiating position, although there was a mention of that in the Statement. The language of the US document is highly aggressive, demanding concessions but offering little in return. For example, it says: "The United States seeks to support higher-paying jobs in the United States and to grow the U.S. economy by improving U.S. opportunities for trade and investment with the UK." That does not sound like a very open-ended commitment to work with the UK. The framework for negotiating the UK-US trade deal is centred around reducing tariffs and non-tariff barriers but only in ways that benefit the US. For example, we read that one of the negotiating objectives of the US is to "Secure comprehensive duty-free market access for U.S. industrial goods and strengthen disciplines to address non-tariff barriers that constrain U.S. exports." I am a bit perplexed why the document published today does not confirm that the UK has properly analysed the US position and will have the necessary tools to negotiate round these difficult operations that are in print Finally, we accept that there has been wide public consultation, but this Statement does not constitute adequate parliamentary engagement on this process. We await the return of the Trade Bill, which left this House with a proposed structure for engagement with Parliament and its committees. Can the Minister tell us how the Government intend to enable effective scrutiny of this and future trade agreements?