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Trade (Australia and New Zealand) Bill - Sitting 4

18 October 2022

Proposing MP
Widnes and Halewood
Type
Public Bill Committee

At a Glance

Issue Summary

Gareth Thomas is discussing amendments related to consultations and impact assessments for the procurement chapters of trade agreements with Australia and New Zealand. The statement addresses concerns about the impact of the Australia and New Zealand trade agreements on UK government procurement. The MP discusses concerns raised by Professor Sanchez-Graells about legal uncertainties in the procurement chapter of the Australia and New Zealand trade deal, which may discourage British businesses from bidding for contracts. Derek Twigg discusses concerns raised by Professor Sanchez-Graells about potential legal uncertainties and risks posed by the procurement chapters in the UK-Australia FTA, particularly regarding the impact on large-scale infrastructure projects like Crossrail. Gareth Thomas discusses the potential risks associated with UK-Australia and UK-New Zealand free trade agreements, particularly regarding procurement for rebuilding hospitals like the Queen Elizabeth Hospital in King’s Lynn. The MP discusses the importance of consultation and evaluation in the development of legislation related to trade agreements with Australia and New Zealand. James Duddridge addresses the need for better relations between the International Trade Committee and the Government, emphasizing increased availability to the committee. James Duddridge discusses the Trade and Agriculture Commission's role in evaluating free trade agreements and addresses concerns about consultation with devolved Administrations and trade unions. The statement discusses the Trade (Australia and New Zealand) Bill and its potential impacts on UK farmers, particularly focusing on beef and sheep imports. James Duddridge discusses the frequency of evaluation for trade deals and the implementation process for new trading agreements with Australia, addressing concerns raised by other MPs. The statement discusses concerns over the Trade (Australia and New Zealand) Bill's impact on Scotland's food and farming standards. Gareth Thomas is discussing the need for greater parliamentary scrutiny of regulations related to free trade agreements with Australia and New Zealand. Derek Twigg is addressing amendments related to the expiration date of the Trade (Australia and New Zealand) Bill. The discussion centres around the interplay between the Trade (Australia and New Zealand) Bill, the Procurement Bill, and potential accession to the CPTPP. The statement addresses concerns regarding investor-state dispute settlement (ISDS) in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and proposes new clauses to assess the impact of trade deals on different regions and sectors of the UK. The SNP has proposed new clauses to require impact assessments on procurement chapters in trade deals with Australia and New Zealand. The MP discusses the impact of the UK-Australia and New Zealand trade deals on various sectors in Scotland and other regions, emphasizing the need for a proper impact assessment. MP Derek Twigg is addressing issues related to transparency and commitments in international trade with Australia and New Zealand. Derek Twigg is addressing the Trade (Australia and New Zealand) Bill in a Public Bill Committee. The statement discusses the progress and challenges faced during the Committee stage of the Trade (Australia and New Zealand) Bill, including points of order regarding procedural matters and acknowledgments to officials and staff.

Action Requested

Amendment 5 proposes requiring public consultation before regulations are made, which would help businesses navigate differences between the New Zealand and Australia free trade agreement procurement chapters. The amendment also calls for a review by the Trade and Agriculture Commission on the potential impact of these chapters on UK industries.

Key Facts

  • Amendment 5 requires completion of public consultations with Scottish ministers, Welsh ministers, Northern Ireland Executive representatives, and English regions before regulations are made.
  • Differences between New Zealand and Australia procurement chapters could cause legal problems for businesses bidding for contracts in the UK or abroad.
  • Professor Sanchez-Graells testified that UK firms could be barred from all remedies under Australian Government tender processes.
  • Government procurement agreement allows access to some remedies but not a ban on compensation.
  • Amendment 5 aims to enhance current government procurement setup.
  • Transparency International investigated PPE contracts, identifying 73 with red flags for corruption.
  • House of Commons Library data shows 202 out of the most lucrative 445 contracts in 2019 went to companies in London or south-east England.
  • Professor Sanchez-Graells is a professor of economic law at the University of Bristol Law School.
  • He has done extensive research on competition law and procurement.
  • His concerns suggest that there are serious issues with procurement in the trade deals, risking breaches of international law.
  • Amendment 5 emphasizes the importance of consultation.
  • Amendment 22 aims to provide a full understanding of GPA-minus changes.
  • Professor Sanchez-Graells highlighted potential risks to public procurement contracts under the GPA-minus provisions in the UK-Australia FTA.
  • There are concerns about future uncertainty due to overlapping procurement chapters if the UK accedes to the CPTPP.
  • The Elizabeth line project is used as an example, costing almost £19 billion and generating 14,000 jobs.
  • The discussion is relevant to clause 5 of the Trade (Australia and New Zealand) Bill.
  • The Queen Elizabeth Hospital in King’s Lynn needs rebuilding.
  • Professor Sanchez-Graells's concerns about judicial review and compensation are highlighted.
  • Draeger Safety UK v. the London Fire Commissioner case is mentioned as an example.
  • The UK Government published all objectives prior to talks.
  • Six public reports were issued during negotiations.
  • There were over 12 sessions with either the International Trade Committee or the Lords International Agreements Committee.
  • Nine ministerial statements and eight formal MP briefings were made.
  • The International Trade Committee has not had good relations with the Government.
  • There are inter-ministerial groups on trade issues attended by Ministers from the devolved Administrations.
  • The forum established for considering all trade policies has met eight times since its inception in 2020.
  • The Trade and Agriculture Commission focuses on agricultural standards.
  • Comprehensive evaluation reports will be conducted within five years after agreements enter into force.
  • There are six trade advisory groups that include various unions.
  • UK sheep imports from New Zealand have fallen over the past decade.
  • Increases in beef imports from Australia are expected, potentially displacing more expensive EU beef rather than domestic UK beef.
  • The Minister emphasizes the importance of reducing tariffs and minimizing systems to lower costs.
  • James Duddridge talks about the frequency of evaluation for trade deals, suggesting five-year evaluations.
  • The Minister discusses the implementation process over time and mentions a company in Ipswich producing recyclable bottles as an example of British businesses looking to export.
  • Professor Sanchez-Graells has raised substantial concerns that were accepted by the International Trade Committee and the International Agreements Committee.
  • The amendments aim to require draft instruments to be laid before and approved by each House of Parliament or respective devolved assemblies.
  • Amendments affect the procedures for negative resolution to affirmative resolution for certain regulations.
  • There is a focus on ensuring parliamentary oversight for regulatory changes impacting food and farming standards.
  • Amendments 9 to 18 seek to require the affirmative resolution procedure for every set of regulations proposed by Ministers.
  • The last negative instrument successfully annulled was in 1979.
  • The Trade Act 2021 enabled similar procedures for implementing UK's membership of the World Trade Organisation agreement on government procurement.
  • The amendment aims to set an expiration date for the Act at the end of two years from its passage.
  • If the UK becomes a full member of the CPTPP, the Act would expire on that day.
  • Consumer group Which? found that 72% of people in the UK do not want food with lower standards entering through trade deals.
  • The Procurement Bill aims to ensure day one compliance as well as ongoing modifications to procurement chapters.
  • Future modifications may relate to machinery of government changes and updating lists, such as adding 'digital' under the Department for Culture, Media and Sport.
  • Bilateral trade agreements like those in the Trade (Australia and New Zealand) Bill will coexist with agreements like CPTPP and WTO GPA after UK accession.
  • Derek Twigg proposes New Clause 1 for an assessment every five years starting five years after implementation.
  • New Clause 2 focuses on assessing the impact on Scottish hill farmers and crofters within six months post-regulation.
  • New Clause 3 aims to assess the impact on geographical indications within two years of regulation.
  • New Clause 4 proposes a first assessment within twelve months followed by three-year intervals.
  • Australia exports 5,000 tonnes of beef to the UK annually but this will increase to 35,000 tonnes after the agreement.
  • New Zealand’s beef exports to the UK will rise to 68,000 tonnes by year 15 of the agreement.
  • The deal with New Zealand is expected to contribute a mere 0.03% to UK GDP over 15 years and Australia's deal contributes 0.08%.
  • There are 144 highly hazardous pesticides authorised for use in Australia, nearly double the number in the UK.
  • Australian poultry farmers use 16 times more antibiotics per animal than British poultry farmers.
  • New Zealand beef farmgate prices are 25-30% lower than Scottish farmgate prices and lamb is 10% lower.
  • The Scottish Crofting Federation highlighted potential unintended consequences of the trade deals.
  • The food and drinks industry is twice as important to the Scottish economy compared to the UK as a whole.
  • The legislation will cause a £94 million hit to UK farming, forestry and fishing per year and a £225 million hit to the semi-processed food sector per year.
  • New Zealand has ratified only six of eight core International Labour Organisation conventions.
  • MP Derek Twigg addresses issues related to transparency in international trade.
  • The Secretary of State cancelled a meeting with the Chair of the International Trade Committee due to other commitments.
  • James Duddridge commits to further probing into what information has been disclosed and considers disclosing more details about impact assessments.
  • New clause 3 aims to protect geographical indicators.
  • New clause 1 does not mention Scotland specifically.
  • There is a call for impact assessments every six months after regulations come into force.
  • The Trade (Australia and New Zealand) Bill is undergoing its Committee stage in Parliament.
  • James Duddridge, a Conservative MP, thanks his team and offers to buy drinks in the Churchill Room for assistance during debates.
  • Gareth Thomas, Labour MP, praises his staff member for support in preparing for the Committee.
  • Anum Qaisar acknowledges help from Katie, Clo, and Calum on research and background work.
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