Free Trade Agreement: New Zealand — House of Lords, 2021-10-25
Topic: Foreign Trade
Christopher Suenson-Taylor (Labour, Centre-left): I am grateful to the Minister for presenting to your Lordships’ House the Government’s Statement from last Thursday on the agreement in principle reached between the UK and New Zealand on the proposed trade agreement. I declare my interest as stated in the register that I have a dairy farm On its own merits, this trade agreement adds a further 0.19% of UK trade towards the 80% threshold the Government committed to in their election manifesto. This is not that magnificent but it contains some sensitive elements that are a major concern to our important agriculture industry; these give widespread access to huge quantities of food of varying quality to the UK’s 60 million population in return for some potential opportunities for exports to a population of a mere 4.8 million New Zealanders—somewhat fewer than Scotland’s 5.5 million population. New Zealand ranks 53rd in size in terms of the trade it conducts against the UK’s other trading partners; this was worth £2.3 billion last year. The Statement says that tariffs as high as 10% will be removed. Can the Minister clarify whether the Government expect both imports and exports to grow by 30% in tandem by 2030 as stated in the Statement, or is this figure merely a reflection of the growth the Government expect the New Zealand economy to achieve? What figures have the Government estimated for the beneficial growth for the UK from this trade deal The Government try immediately in the Statement to play up the strategic importance of this deal as a significant step towards their aim to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—CPTPP. Somehow it is meant to add momentum for accession to a partnership fraught with doubt at the moment since the USA pulled out of the deal as to whether it might rejoin and on what terms. There is also the question surrounding China: whether it may be invited to join and on what terms. Does the Minister expect the UK’s accession to take precedence over these two important trading nations The Government state that they believe that this region will form the basis for massive economic growth, with trading opportunities to a growing middle class of the future. While this may prove to be correct, does the Minister recognise that the region will become ever more dominated by China and how it will operate throughout the region? Are the Government prepared to change their stated position of not entering into a trading relationship with China Returning to the specifics of this agreement in principle, its main effects could be severely felt throughout the agricultural industry, especially sheepmeat and dairy. New Zealand has a climate much like the United Kingdom’s. This agreement seems to be a cut and paste from the Australian agreement in principle in that it opens wide the UK food market to huge increases in volumes without any quota restrictions to immediate access. New Zealand can on agreement export four times the quantity of lamb to the UK than it did last year, as much butter next year as it exported to the UK over the last six years, and 25 times more beef, all in year one. What effect does the Minister expect this to have on the UK market and its prices? The National Farmers’ Union commented that the UK will be made available for "significant extra volumes of imported food—whether or not produced to our own high standards—while securing almost nothing in return for UK farmers." Although it may be said to be of huge benefit to consumers, and I do not doubt that it is a great opportunity, there is huge doubt over the standard of food in relation to the high standards currently in operation here. To allay the deep concern expressed far and wide by many organisations towards the Government’s lack of commitment to high standards, shown by their not enacting them on a statutory basis during the passage of the then Agriculture Bill last year and the then Trade Bill this year, the Government have set up the Trade and Agriculture Commission to report on setting up a framework for government trade policy. The noble Lord, Lord Grimstone, announced last Thursday that, at long last, the Government’s response to the report has now been published. Although I have not been able to study it in depth for tonight’s Statement, I welcome that the Government have now finally published this response. My quick reading of it is that the Government do not spell out how these two agreements in principle and how future new trade deals will be assessed by the TAC regarding checks on the standards of imported food Are the Government committed through their response to take on board the depth of concern regarding the quantities being imported that might be below the level of UK standards, which it would be illegal for farmers in this country to market? How will the 50% of food sold through catering, restaurants and food services be assessed? Does being consistent with the UK statutory protections mentioned in the Statement really measure up to being equivalent to the standards put on the table by UK producers? Can the Minister confirm that the new statutory TAC, which was also set up last week, will see the texts of these two new agreements in principle from Australia and New Zealand, and be able to report to your Lordships’ International Agreements Committee in time for the deals to be reported to Parliament The Government’s response also mentioned that they would respond in due course to the Dimbleby report and set up a White Paper for a future food strategy. Although this is ongoing, I very much welcome the stance the Government have taken on this and look forward to further developments.