Trade Bill

Viscount Trenchard Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Tuesday 15th December 2020 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, it is always a pleasure to follow the noble Lord, Lord Foulkes, although I regret to say that I do not agree with a single word he said. The noble Lord, Lord Fox, is right in his belief that continuation of trade with the European Union requires a reasonable degree of free movement so that companies may dispatch their people, often at short notice, to engage with customers and potential customers for their services.

In Committee, my noble friend Lord Younger said the Government were seeking to agree mobility arrangements with the EU as are

“normally contained in the services part of a trade agreement”.—[Official Report, 13/10/20; col. 981]

Will my noble friend confirm that this is still the situation? Obviously we cannot continue unfettered free movement of people as we have had with EU countries, but we need to offer reasonable short-term entry permissions to EU citizens and to those of our other trade partners.

It is good that the UK-Japan EPA contains a mobility framework permitting UK companies to transfer their employees to live and work in Japan for up to five years. It also permits visa-free travel for short-term business visitors for up to three months in every six months. I regret that the EU has, as far as I know, offered short-term business visitors only up to a three-month stay in a 12-month period, which is rather less generous than the three-month stay in a six-month period which we have offered it.

I am a member of the EU Services Sub-Committee; we wrote in our report on professional and business services—referred to by the noble Earl, Lord Clancarty—that businesses need clarity on what is allowed while on business trips and how long they can stay. As the City of London Corporation explained in its evidence to the committee, the UK economy relies on the ongoing supply of international talent. The Government need to ensure that this supply continues into 2021 and beyond.

I regret that I cannot support this amendment because it seeks to compel the Government to introduce a mobility framework that would enable all UK and EU citizens to exercise the same reciprocal rights to work for the purpose of trade in services. I am not clear whether the noble Lord is talking about the same rights as have hitherto existed to travel within the single market or if he is simply seeking reciprocal rights on a third-country basis for the UK and the EU, which, as of now, I think the EU has not placed on the table.

As my noble friend Lady Noakes reminded your Lordships, we have left the EU. Some observers think that the EU will continue to use regulatory measures to try to enforce repatriation of capital markets’ business and other financial markets to the eurozone. That would be Europe’s loss and would be resisted by European borrowers in the international markets, particularly as Europe’s share of global markets continues to shrink. It is more important that the UK adopts business mobility rules which guarantee its openness to the world. This will help our services industries retain the world-leading position they hold today. If the EU declines a reciprocal mobility framework, that will be its loss more than ours. I cannot support this amendment.

[Lord Cormack (Con) [V]]

My Lords, unlike my noble friend, I can support this amendment. I was delighted that the noble Lord, Lord Foulkes, said that sharing sovereignty is not the same as sacrificing it. I feel deeply frustrated this afternoon for all manner of reasons. It is the first time since July that I have taken part in a debate without being in the Chamber; the frustrations of this afternoon, which have meant that I have to speak to your Lordships over the telephone, fill me with admiration for those who make that possible— we are all very much in their debt—but underline the unsatisfactory nature of our current Parliament. The sooner we can all be in the Chamber, the better. I certainly intend, God willing, to be back in the Chamber immediately we return from the Christmas recess, although we do not know when that will be.

The noble Lord, Lord Fox, talked about the importance of movement. Several members of my family, including both my sons, are in service industries of one sort or another. Movement between the UK and the EU is essential to our prosperity as a nation. It beggars belief that the Government should be jeopardising that prosperity when we are in the deepest recession in 300 years. I cannot for the life of me understand why, when Covid struck, we did not press the pause button on our negotiations with our friends and allies—and they are both. Every nation in Europe is convulsed by Covid. It is the priority on every national leader’s agenda. For us to be coming down to the wire merely because of the mystical significance of 31 December is incomprehensible. Deadline politics is very rarely sensible or wise politics.

Those whose mobility is being frustrated are the very people on whom we will depend for our future: the innovative, the creative, those in the financial services and many others. The prospect of our leaving on 31 December without a deal—the Prime Minister tells us that is the most likely prospect—is a very harsh one. It makes me ashamed of my party and ashamed for my country. I just hope that, in this season of good will, some common sense and charity will prevail and a deal will be struck before or after 31 December, so that we can maintain proper convivial relations with our friends and allies in the European Union.

Of course we are out of the EU. I may regret that, but I do not think it practical that we can go back in, certainly not for very many years. We must make this work. We will make it work not by posturing but with true conviviality and a recognition that compromise is essential for progress in almost all walks of life. I am sorry not to be with noble Lords this afternoon. I cannot get back soon enough.

--- Later in debate ---

[Viscount Trenchard (Con)]

My Lords, I understand the arguments in support of these amendments, but I do not believe that it is in our interests to seek unduly to restrict the list of countries with which we may choose to enter into trade agreements. The more that we interact with and trade with less developed countries—those least able to comply with the climate obligations that we have undertaken—the more we will assist them to raise their populations out of poverty and become prosperous. It is only by becoming prosperous that they will be free to accord the same importance to emission reductions as we are able to do. Furthermore, how on earth can a Minister of the Crown make a statement to Parliament confirming that any agreement will not give rise to a net increase in greenhouse gas emissions? The expectations of the noble Lord, Lord Oates, and the co-signatories to the amendment are surely unrealistic.

Amendment 14 would be counterproductive and could limit the volume of trade with many developing countries, which would negatively impact their ability to introduce climate policies similar to our own. Amendment 21 is unnecessary and possibly counter- productive. We have rolled over continuity agreements with 59 countries, and none has eroded our domestic standards on the environment, food safety or animal welfare. I have not heard any noble Lord cite an example of a domestic standard that has been undermined or an international agreement not adhered to. In the case of food safety standards, it is for the Food Standards Agency to ensure that all food imports comply with the UK’s high food safety standards and consumers are protected from unsafe food. Decisions on those standards are a matter for the UK and are made separately from any trade agreements. We are a world leader in environmental protection, animal welfare and food safety. Could my noble friend confirm that the Government are committed to maintaining those positions and that he agrees that these amendments are unnecessary and inappropriate?

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, this has been a very good debate, and we have ranged far and wide across the issues raised originally by the noble Lord, Lord Oates, and picked up later by the noble Baronesses, Lady Boycott and Lady Bennett, with their amendment. The noble Lord, Lord Oates, makes good points about future trade agreements needing to tie us to the net-zero carbon and other environmental standards that we have and points out the need for consistency of government policy across all the areas involved, not least trade, to achieve that. We need to think very carefully about how our new trading agreements, which the Government are very keen to see signed, and which we support, will use the climate change focus as they move forward.

When the Minister responds, he will undoubtedly say that we have very high standards and will never negotiate them away, but he must admit that the Agriculture Act 2020 has a non-regression clause covering environmental issues. So we look to him to reassure us that our standards are high and will not be diminished, but also to say why he is not prepared to see these broader issues, such as the environment and others, included in the Bill, because that seems to be how the Government are thinking with this policy.

Other noble Lords who have spoken in the debate have argued that we should do more than simply respect our own standards in the trade agreements and deals that we want to do. The noble Baroness, Lady Boycott, was very strong on the need to live up to our role as a leading advocate of decarbonisation and to lead the way for others. Again, her argument was that putting that in the Bill would be key, since it would show the world not only that we have the arguments and are practising what we preach but that we have a proselytising role to play in relation to the wider world.

It was good to hear the noble Earl, Lord Sandwich, and the noble Lord, Lord Curry, supporting points that have been made in this debate—particularly the view of the noble Earl that there are very few doubters left in Parliament. He may be wrong about that; I think there are one or two scurrying around. He also points out that the department has a bit more to do before it is walking the walk. We should think about that. He made a good point about the recent agreement with Japan and the lack of alternative energy proposals within it. The noble Lord, Lord Curry, also made a good point about how not just farmers, whom he mentioned, but the wider public want the Government to reach further on this to find zero-carbon targets in all that they do—and that of course applies to imports.

I look forward to hearing the noble Lord’s response. He will understand that we think we will come back to this, perhaps not in the form of this amendment but on other related issues about non-regression of standards, as we progress through the Bill.