In Development inquiry, International Development Committee

Evidence submitted by Transform Trade (charity no. 1048752), November 2024
 

The International Development Committee has a role to play in scrutinising UK trade policy, UK businesses, and human rights outcomes towards realising international Sustainable Development Goals and human rights objectives.

Getting trade and investment relationships right will be critical to achieving international development goals. In terms of value, trade in goods and services is more significant than UK overseas development aid. Between 2017-2022 UK exports to so-called 'developing’ countries were worth over £90bn[i], with UK imports from countries in the Generalised Scheme of Preference being worth approximately £22bn each year.[ii],[iii] This is compared to the estimated £3bn the UK spent in 2022 on direct bilateral ODA for developing countries, or the £8bn spend on multinational institutions for overseas development efforts.[iv]

Trade agreements are both binding and enforceable, whilst the Sustainable Development Goals (SDGs) and climate agreements are for the most part neither of these things, making it even more important that commitments are fully aligned.

Regarding human rights, there are significant accountability gaps in the trade system, despite FCDO’s initial international leadership of being the first government in 2014 to come out with a national action plan on business & human rights. Between 2015 and 2023, the Business and Human Rights Resource Centre documented 209 attacks on human rights defenders connected to UK companies, with 30 activists murdered, including in countries where FCDO has an ODA programme.

The 2023 White Paper on International Development recognises the important role that trade and trade policy plays in achieving the SDGs and other development objectives.[v] It also positions the UK as “a champion of open, fair and sustainable trade” and recognises that “UK trade policy enables us to harness development opportunities.” [vi]             
 

Since FCDO leads delivery of SDG and other development objectives, we recommend that the International Development Committee investigates a pipeline on UK trade and trade policy impacts on development including:

      UK Trade Strategy alignment with the SDGs, the Paris Climate Agreement and other development objectives (joint with Business & Trade Committee).

      Human rights impacts of UK businesses trading with the Global South and mechanisms for access to justice for the victims of human rights abuses under UK businesses.

      Unilateral public and private sector sustainability policies’ impacts on traders and communities in the Global South, including the upcoming Forest Risk Commodities Scheme and the UK Carbon Border Adjustment Mechanism.

Given that the White Paper was published in 2023, 2025 is an opportune time to measure the Government’s progress towards achieving fair and sustainable trade. Furthermore, we expect to see the Government’s Trade Strategy in Spring 2025, which will underpin much of its direction of travel on trade policy, including development impacts.

-------------------------------------------------------------------------------------------------------------------

Additional information (excluded from word count):

About Transform Trade:

Transform Trade supports producers across the world – helping them to build a bright future for their communities and fight for a fairer trade system. Through a combination of direct grants, long-term support, and advocacy, we help producer led, ethical businesses to thrive – and show the world that a better way of doing business is possible. We work across East Africa and South Asia, and our focus is on making change in the farming, fashion and tea sectors.

Supplementary questions from the call for evidence:

• Have you ever engaged with Parliament before (e.g. made a submission to a select committee)?
• Yes – Transform Trade routinely makes written submissions to relevant select committees, staff members have been called upon as experts in Oral evidence sessions and we work with MPs to scrutinise Government trade policy

• Do you have personal or field experience related to international development issues?
• Yes – Transform Trade has teams in East Africa and South Asia, who work directly with producer groups, garment workers and businesses with aim of facilitating and enabling more equitable, fair and sustainable trade.

• If you are invited to pitch your idea to the Committee, would you be able to travel to London and back within the same day?
• Yes. Transform Trade has offices in London.