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Trade (Australia and New Zealand) Bill - Sitting 2
12 October 2022
Type
Public Bill Committee
At a Glance
Issue Summary
Mark Pritchard is presiding over a public hearing where witnesses provide evidence on the Trade (Australia and New Zealand) Bill. The discussion revolves around the potential impact of procurement provisions in trade agreements with Australia and New Zealand on UK farmers and food producers. The statement discusses concerns over the scrutiny and ratification process for free trade agreements with Australia and New Zealand, highlighting potential negative impacts on the agrifood sector. The statement addresses concerns regarding the impact of the Trade (Australia and New Zealand) Bill on UK public procurement practices, particularly in terms of animal welfare standards and environmental considerations. MP Mark Pritchard addresses concerns raised about the Australia and New Zealand trade deals, particularly regarding environmental standards, carbon footprint calculations, and market asymmetry. The statement discusses concerns over the UK's free trade agreements (FTAs) with Australia and New Zealand, particularly regarding transparency in negotiations and the effectiveness of the Trade and Agriculture Commission. Mark Pritchard is chairing the examination of witnesses regarding the Trade (Australia and New Zealand) Bill. The statement discusses concerns about the provisions in the UK-Australia and UK-New Zealand Free Trade Agreements regarding government procurement rules, particularly focusing on national treatment rules and access to remedies. The professor discusses potential issues with the Australia and New Zealand trade agreements, including legal uncertainties under procurement and investment protection chapters. Mark Pritchard is facilitating the examination of witnesses regarding the Trade (Australia and New Zealand) Bill. Mark Pritchard requests a return to the topic of the Trade (Australia and New Zealand) Bill. The statement discusses concerns about insufficient scrutiny and lack of trade union involvement in UK-Australia and UK-New Zealand trade deals. Rosa Crawford expresses concern about the broad scope of the Trade (Australia and New Zealand) Bill and its potential to undermine social standards in public procurement. Mark Pritchard is chairing the Public Bill Committee session on the Trade (Australia and New Zealand) Bill, addressing technical issues with remote witnesses and introducing Miles Beale from the Wine and Spirit Trade Association. The statement discusses the scope of the Trade (Australia and New Zealand) Bill Committee meeting and addresses an off-topic question about financial support for small businesses.
Action Requested
The session involves questioning witnesses on their perspectives regarding trade agreements with Australia and New Zealand, and no specific action or proposal is made by Mark Pritchard in this excerpt.
Key Facts
- Sophie Jones is the director of public affairs at the British Phonographic Industry.
- The UK music industry's export revenues are growing steadily due to strong talent and the cultural capital of the UK.
- The National Farmers Union of Wales, National Farmers Union Scotland, Scottish Crofting Federation, and NFU provide evidence on trade agreements.
- The Bill aims to address procurement related to trade deals with Australia and New Zealand.
- There are concerns about restrictions imposed by Government Procurement Agreement (GPA) on local food sourcing within UK public bodies.
- The Scottish Parliament has passed the Good Food Nation (Scotland) Act, which includes measures on public procurement.
- The Government's position requires implementing legislation, certain regulations, and the Constitutional Reform and Governance Act 2010 process before ratifying trade deals.
- MPs retain the ability to delay ratification during the CRaG period but lose this right once it is completed.
- Concerns raised about the impact of FTAs on vulnerable sectors like red meat in Scotland.
- The Bill's scope is described as narrow by the speaker.
- Concerns are raised about the potential impact on animal welfare standards in procurement contracts.
- There is a divergence between trade-stimulating policies and backing local food producers.
- Concerns raised include environmental standards, scale of production, carbon footprints, quotas, and local exemptions.
- Calculations of relative carbon emissions from New Zealand and UK red meat production vary widely.
- The Australia deal includes provisions that apply only to UK-wide regulations but not to state-level Australian laws.
- The FTA has been negotiated by UK Government negotiators with Australia and New Zealand.
- There is no provision in the trade deals that would allow influencing food production methods in other countries, leading to reliance on quotas and tariffs for competitive balance.
- The Trade and Agriculture Commission (TAC) was set up to provide scrutiny of FTAs but its effectiveness has been questioned due to limited scope after March 2021.
- Mark Pritchard chairs the examination of witnesses regarding the Trade (Australia and New Zealand) Bill.
- Professor Albert Sanchez-Graells from the University of Bristol gives evidence via Zoom.
- Professor Sanchez-Graells suggests potential deviations in the procurement chapters of the Australia deal that could undermine the Government Procurement Agreement.
- The UK and Australia/New Zealand are members of the World Trade Organisation's Government Procurement Agreement (GPA).
- The agreements between the UK and Australia/New Zealand have problematic changes to GPA rules.
- Access to remedies for legal challenges under the FTA with Australia is particularly concerning as it allows exclusion based on public interest.
- CPTPP would not resolve problems created by FTAs with Australia and New Zealand.
- Australian procurement chapter has problematic clauses allowing for barring access to remedies.
- New Zealand FTA excludes procurement from investment chapters, which is not a problem in that agreement.
- There could be potential trade disputes if Australian companies feel they have been discriminated against due to lack of access to remedies.
- The Government claims £10 billion of additional procurement opportunities for British businesses.
- Mark Pritchard chairs the Public Bill Committee.
- Michael Gasiorek is director of the UK Trade Policy Observatory.
- Rosa Crawford is a policy officer at the Trades Union Congress.
- Mark Pritchard is speaking about the Trade (Australia and New Zealand) Bill.
- He reminds committee members to avoid discussing the Procurement Bill and CPTPP during this session.
- Trades unions were excluded from UK-Australia and UK-New Zealand deal negotiations.
- The International Labour Organisation declaration was referenced but not the fundamental conventions in the UK-Australia deal.
- No guaranteed debate is possible under the negative resolution procedure unless actively initiated.
- The Bill's broad drafting could allow further liberalisation of public procurement processes.
- Neither Australia nor New Zealand has ratified all fundamental ILO conventions, raising concerns over labour rights.
- The TUC and other stakeholders have not been included in private discussions about free trade agreements despite previous promises.
- Mark Pritchard is chairing the session on the Trade (Australia and New Zealand) Bill.
- Miles Beale, chief executive of the Wine and Spirit Trade Association, joins via Zoom.
- The Wine and Spirit Trade Association has approximately 350 UK members involved in buying, selling, importing, exporting, or advising on wines and spirits.
- The Department has provided some practical support for SMEs through embassies and high commissions.
- Financial support has not been offered, which would make a significant difference for small businesses.
- Large food and drink festivals have occasionally been encouraged by DIT or DEFRA, but they are often less effective for smaller brands.
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