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Trade Bill - Sitting 2
16 June 2020
Type
Public Bill Committee
At a Glance
Issue Summary
Graham Brady chairs a Committee session with witnesses discussing the Trade Bill, focusing on its analysis and potential gaps. The statement discusses concerns about the Trade Bill's provisions allowing for significant regulatory changes via secondary legislation without adequate parliamentary scrutiny. Graham Brady addresses concerns about the scrutiny and potential misuse of powers granted by the Trade Bill. Graham Brady is chairing a session with Nick von Westenholz from the National Farmers Union to discuss issues related to the Trade Bill, including food production standards and scrutiny of trade agreements. The statement discusses concerns about the Trade Bill's ability to address future trade agreements and ensure that food imports meet UK production standards equivalent to domestic requirements. The statement is about concluding the session with a witness and preparing for the next evidence session. The statement addresses concerns from UK Steel and the Chemical Industries Association regarding the Trade Bill's impact on their respective industries. Richard Warren discusses the challenges faced by UK industries in participating in trade remedies investigations due to financial constraints and the importance of defining the role and composition of the Trade Remedies Authority's non-executive membership. Ian Cranshaw discusses the importance of the Trade Bill and the establishment of a fully functioning Trade Remedies Authority to support UK industries. The statement discusses concerns about the potential failure to carry over trade agreements with Turkey due to delays in passing the Trade Bill. Graham Brady chairs a session where Rosa Crawford from the Trades Union Congress discusses concerns about the UK Trade Bill. Graham Brady addresses the resumption of the session after a technical issue. Graham Brady is discussing concerns over the Trade Bill's potential impact on workers' rights and environmental standards in public procurement. Graham Brady introduces George Peretz, QC, and begins the questioning session without making any specific statements of his own. The MP is questioning whether the Trade Remedies Authority needs to be created given that its functions are currently being carried out by the Trade Remedies Investigations Directorate. Graham Brady concludes the session and prepares for oral evidence from Simon Walker, chair designate of the Trade Remedies Authority. Simon Walker discusses the establishment and operation of a Trade Remedies Authority (TRA) in the UK. Graham Brady concludes the public bill committee sitting on the Trade Bill.
Action Requested
The Chair reminds Members to switch off electronic devices and outlines the rules for the sitting. No specific action is proposed beyond facilitating the discussion.
Key Facts
- Graham Brady serves as Chairman of the Committee.
- Charlotte Nichols declares an interest related to her father's position at the TUC.
- Professor Winters discusses potential issues with the Bill, including its drafting and secondary legislation processes.
- Professor Winters raises concerns about environmental regulations being altered under secondary legislation.
- The GPA needs technical updates to reflect current Government Departments' coverage.
- The UK aims to improve trade in services statistics for better global leadership.
- Professor Winters raises concerns about the lack of formal consultation and reporting back to Parliament under the CRAG process.
- The Trade Bill grants extensive secondary legislative powers to the Minister.
- There is no requirement for primary legislation for implementing continuity agreements.
- Graham Brady chairs the session until 3:10 pm.
- Nick von Westenholz represents the National Farmers Union.
- Key issues include trade and standards of food production, and scrutiny of trade agreements.
- The Trade Bill deals with existing trade agreements through continuity.
- Future trade agreements present challenges in ensuring equivalent production standards for imports.
- UK farmers operate under high legal requirements for animal welfare compared to many overseas producers.
- The session concludes with Graham Brady thanking Mr von Westenholz.
- The Committee will suspend briefly before the next evidence session.
- Richard Warren is head of policy and external affairs at UK Steel.
- The Trade Bill affects over 40 measures, with 15 or 16 specifically related to steel.
- Turkey is the third largest export market for UK steel after the EU and US, accounting for 8% of UK exports.
- Ian Cranshaw is head of international trade at the Chemical Industries Association.
- The chemicals industry contributes to approximately 96% of manufactured goods.
- There is only one live case involving welded tubes produced by Tata Steel in Corby, which has been ongoing for three months.
- Engaging with trade remedies investigations costs a significant amount of money due to external legal support and consultancy needs.
- Discretionary spending within many manufacturing companies, including the steel industry, has been halted due to coronavirus disruptions.
- The Trade Remedies Authority provided an extension of three months in response to financial difficulties.
- The Department for International Trade has grown from 30 trade policy experts to over 100 staff members.
- The Trade Remedies Authority will have 100 staff initially, growing to 130.
- Of the 23 remedies in place in the EU's chemicals sector, only two were transitioned into UK law.
- The agreement with Turkey may not be carried over due to delays in passing the Trade Bill.
- A 15% tariff on UK steel exports to Turkey, which accounts for 8% of total exports, is a significant concern.
- Without this agreement, there could be up to half a million tonnes of steel imports from Turkey with no reciprocal trade benefits.
- Chinese steel exports to the UK decreased from 500,000 tonnes in 2015-16 to 100,000 tonnes due to trade remedies measures.
- Rosa Crawford is a policy officer at the Trades Union Congress representing over 5.5 million UK workers.
- The TUC believes it is crucial that UK trade policy supports recovery from the pandemic based on good jobs and respect for workers' rights.
- The Trade Bill does not provide roles for trade unions or Parliament in negotiating trade deals, nor does it ensure protection of public services.
- The line was lost during the session.
- The sitting was suspended briefly while they tried to resume the connection.
- TUC is concerned about the potential rollback of workers' rights and environmental standards in public procurement post-Brexit.
- The Trade Bill does not currently provide assurances that UK’s public procurement rules will promote respect for workers’ rights or environmental standards under WTO GPA.
- There are worries that without strict tender selection criteria, lower quality products may be procured from countries with less stringent labor and environmental protections.
- Graham Brady chairs the Public Bill Committee.
- George Peretz, QC, specialises in customs law and EU law.
- The session focuses on questioning George Peretz about the scrutiny provisions of the Trade Bill.
- The Taxation (Cross-border Trade) Act 2018 conferred powers on an authority that does not legally exist.
- Without a no-deal Brexit last year, it would have been unsatisfactory and potentially legally problematic to rely solely on the existing structure.
- The Trade Remedies Authority is responsible for making technical legal and economic judgments.
- The session concludes after discussions about parliamentary scrutiny of international trade agreements.
- Simon Walker, chair designate of the Trade Remedies Authority, provides evidence from 16:30 onwards.
- Two transition agreement investigations are underway at the Trade Remedies Investigations Directorate concerning welded steel and tubes, and rainbow trout.
- The Trade Remedies Authority (TRA) will have a maximum of nine members, including three internal and five non-executive directors.
- Walker stresses the need for board members with strong legal, financial/accountancy, and investigatory backgrounds to ensure governance integrity.
- There are concerns about maintaining objectivity if representatives from specific sectors or interests are included on the TRA board.
- Graham Brady thanked the witness for their assistance.
- The sitting was adjourned until Thursday, June 18 at half-past eleven o'clock.
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