MPs warn of double standard in trade approach to developing countries

7 November 2022

The International Trade Committee warns that the UK’s trade approach risks holding developing countries to a double standard compared to richer nations.

In a letter to the Secretary of State for International Trade, the cross-party Committee of MPs warns that the Developing Countries Trading Scheme (DCTS), designed to improve market access for developing countries, has stricter conditions around human rights, labour rights, gender rights and the environment than in existing trade deals with richer, more developed countries.

For example, in the UK’s trade deal with Japan, both countries “reaffirm” their commitments to labour rights, but unlike under the DCTS, there is no mechanism under which the FTA is suspended if either nation reneges on its commitments. MPs ask whether terms in current or future trade deals will be tightened, and how such different levels of stringency are justified.

MPs welcome the DCTS, and the Government’s continuing work to improve it, while questioning how levels of compliance with conditions on human rights, labour rights, anti-corruption or the environment will be monitored. The Committee’s inquiry received evidence on the importance of retaining powers of suspension, and warnings that vulnerable countries could be harmed by harsh enforcement throwing up barriers to UK market entry.

Summarising evidence received as part of its UK trade approach towards developing countries inquiry, the Committee raises concerns around potential socioeconomic harm caused to developing countries. Producers could struggle to compete with those from richer countries due to trade deals giving the latter UK market access under the same conditions.

For example, the Government anticipates that the Australia trade deal will divert raw sugar cane imports from developing countries such as Guyana and Belize, and MPs ask how such impacts from trade agreements will be assessed and monitored.

MPs call for a thorough reassessment of whether Economic Partnership Agreements (EPAs) with developing countries rolled over from the EU are fit for purpose. The inquiry heard that where producers from those countries enjoy comparative advantage, EPAs may be obstructing imports from them.

Chair's comment

Commenting on the correspondence, Angus Brendan MacNeil MP, Chair of the International Trade Committee, said:

“The Government’s work to remove obstacles which stop producers in the world’s poorest countries from accessing the UK market, while enabling our businesses and consumers to benefit from cheaper imports, is welcome. However, the ease with which countries can trade with the UK, and the conditions under which they do so, should not be variable depending on the country’s economic clout. We thank all those who submitted evidence to our inquiry, and look forward to hearing from the Secretary of State on this important issue.”

Further information

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