My Lords, I repeat my declaration of interests as stated in the register. Since the Government announced the establishment of the Trade and Agriculture Commission on 10 July, under the chairmanship of Tim Smith, formerly chief executive of the Food Standards Agency, I believe that Amendment 270, in the name of my noble friend Lady McIntosh, and Amendment 279, in the name of the noble Lord, Lord Curry, are redundant. Besides, there are other problems with both the proposed commissions. My noble friend’s commission would be required to maintain standards at levels
“as high as or higher than”
those which apply now. The rather more detailed Amendment 279 is surely similarly redundant and would undoubtedly shackle UK producers to the restrictive EU regime, although it does contain two important concessions: new subsection (4)(e) recognises that,
“different production systems and regulatory approaches”
may produce equivalence of outcomes; and new subsection (4)(g) acknowledges that import restrictions may be detrimental both to consumer interests and to developing countries.
My noble friend Lady McIntosh just said, in her eloquent speech, that she wishes to retain the level playing field between EU and UK farmers. If she believes that such a level playing field exists, I fear she is mistaken. As I pointed out on Thursday, French livestock farmers benefit from €1 billion in voluntary coupled support every year. This compares with the mere €39 million available to Scottish crofters. I agree with my noble friend that my right honourable friend the Secretary of State was right to confirm that we will not compromise on our high environmental protection,
animal welfare and food standards in all our trade negotiations. However, rules that enforce precise standards may be unnecessary or disproportionate. Standards are not two-dimensional: low or high. Outcomes may be similar but reached by very different rule books.
Among the problems with our EU standards is that some introduce distortions to the market without bringing any benefit. In the words of the Prime Minister in his Greenwich speech in February:
“There is no need for a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment, or anything similar, any more than the EU should be obliged to accept UK rules”.
The Prime Minister also said:
“But I must say to the America bashers in this country, if there are any, that in doing free trade deals we will be governed by science and not by mumbo-jumbo because the potential is enormous.”
I have heard quite a number of America bashers, including several of my noble friends, express their views during our debates on the Bill. I ask my noble friend the Minister to confirm categorically that we will diverge from EU rules and standards, at least in order to be able to adopt an SPS regime which does not violate the WTO’s rules. The EU is in violation of WTO rules on GMOs and hormone-treated beef. The UK will also be in violation of WTO rules in these and other areas, such as those where we do not have a sector which EU rules protect, such as olive oil.
Amendment 271 in the name of the noble Lord, Lord Grantchester, rightly requires the UK to ensure that any new trade agreements will conform to the WTO’s SPS agreement. This allows countries to maintain standards that are stricter than international standards if those standards are justified by science or by a non-discriminatory lower level of acceptable risk that does not selectively target imports. I worry that proposed new subsection 2(b) may conflict with proposed new subsection 2(a) because it would appear to target imports selectively in cases where the exporter’s rules or standards violate the WTO’s SPS rules.
Similarly, Amendment 273 in the name of the noble Baroness, Lady Jones of Moulsecoomb, Amendment 276 in the name of the noble Lord, Lord Hain, and Amendment 278 in the name of the noble Lord, Lord Empey, all require, in effect, the Government to import food only from countries which apply hygiene, animal welfare or environmental standards which are equivalent to or exceed those currently allowed in the EU or UK. However, if we were to insist that our trading partners meet our welfare standards, many currently available imported goods would be prohibited from sale in the UK. If we try to restrict our trade negotiators in the ways these amendments would require, we will fail to make good trade agreements with other countries and we will not be able to secure the great benefits that our independent trade policy can deliver in many other areas, such as financial services, digital and data. We would lose the opportunity to improve our domestic regulatory environment and we would render Brexit largely meaningless.
As for Amendment 280 in the name of the noble Lord, Lord Bruce of Bennachie, I understand that the Government remain confident that they will successfully negotiate a free trade agreement with the EU prior to
the end of the year. This amendment is not appropriate for inclusion in a Bill which sets out new, long-term future arrangements for agriculture.