Trade Bill

(Limited Text - Ministerial Extracts only)

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to discuss the following:

Government new clause 6—Offences related to disclosure under section (Disclosure of information by other authorities).

New clause 1—Report on proposed free trade agreement—

“(1) This section applies (subject to subsection (2)) where the United Kingdom has authenticated a free trade agreement (“the proposed agreement”), if —

(a) the other party (or each other party) and the European Union were signatories to a free trade agreement immediately before exit day, or

(b) where the proposed agreement was authenticated by the United Kingdom before exit day, the other party (or each other party) and the European Union were signatories to a free trade agreement on the day the proposed agreement was authenticated by the United Kingdom.

(2) This section applies only if the proposed agreement is not binding on the United Kingdom as a matter of international law unless it is ratified by the United Kingdom.

(3) Before the United Kingdom ratifies the proposed agreement, a Minister of the Crown must lay before Parliament a report which gives details of, and explains the reasons for, any significant differences between—

(a) the trade-related provisions of the proposed agreement, and

(b) the trade-related provisions of the existing free trade agreement.

(4) Subsection (3) does not apply if a report in relation to the proposed agreement has been laid before Parliament under section [Report to be laid with regulations under section 2(1))2].

(5) The duty imposed by subsection (3) applies only at a time when regulations may be made under section 2(1)(see section 2(7)).

(6) In this section a reference to authenticating a free trade agreement is a reference to doing an act which establishes the text of the agreement as authentic and definitive as a matter of international law.

(7) In this section—

“the existing free trade agreement” means the free trade agreement referred to in subsection (1) (a) or (b);

the “trade-related provisions” of a free trade agreement are the provisions of the agreement that mainly relate to trade.”

This new clause reinserts a Government amendment made to the Trade Bill in 2018 and requires a Minister to lay a report before Parliament before the UK ratifies a new free trade agreement with a country that (before exit day) had a free trade agreement with the EU. The report must explain any significant differences between the proposed new agreement and the existing agreement with the EU.

New clause 2—Reporting requirement not to apply in exceptional cases—

“(1) Section [Report on proposed free trade agreement] does not apply to a free trade agreement if a Minister of the Crown is of the opinion that, exceptionally, the agreement needs to be ratified without laying before Parliament a report which meets the requirements of subsection (3) of that section.

(2) If a Minister determines that a free trade agreement is it be ratified without laying before Parliament a report which meets the requirements of section [Report on proposed free trade agreement] (3), the Minister must, as soon as practicable after the agreement is ratified, lay before Parliament—

(a) a report which meets those requirements, and

(b) a statement indicating that the Minister is of the opinion mentioned in subsection (1) and explain why.”

This new clause provides that the reporting requirement under section [Report on proposed free trade agreement] would not apply if a Minister takes the view that, exceptionally, the agreement should be ratified without the reporting requirement being met.

New clause 3—Report to be laid with regulations under section 2(1)—

“(1) This section applies where a Minister of the Crown proposes to make regulations under section 2(1) for the purpose of implementing a free trade agreement to which the United Kingdom and another signatory (or other signatories) are signatories.

(2) A draft of the statutory instrument containing the regulations may not be laid before Parliament unless, at least 10 Commons sitting days before the draft is laid, a Minister of the Crown has laid before Parliament a report which gives details of, and explains the reasons for, any significant differences between—

(a) the trade-related provisions of the free trade agreement to which the United Kingdom and the other signatory (or other signatories) are signatories, and

(b) the trade-related provisions of the existing free trade agreement.

(3) Subsection (2) does not apply if, at least 10 Commons sitting days before a draft of the statutory instrument containing the regulations is laid, a report in relation to the agreement has been laid before Parliament under section [Report on proposed free trade agreement](3).

(4) In this section—

“Commons sitting day” means a day on which the House of Commons begins to sit;

“the existing free trade agreement” means the free trade agreement to which the European Union and the other signatory (or other signatories) were signatories immediately before exit day;

the “trade-related provisions” of a free trade agreement are the provisions of the agreement that mainly relate to trade.”

This new clause reinserts a Government amendment made to the Trade Bill in 2018 and requires a Minister to lay a report before Parliament at least 10 Commons sitting days before regulations implementing a new free trade agreement are laid in draft under clause 2(1). The report is required to explain any significant differences between the new agreement and the existing agreement with the EU.

New clause 4—Parliamentary approval of trade agreements—

“(1) Negotiations towards a free trade agreement may not commence until the Secretary of State has laid draft negotiating objectives in respect of that agreement before both Houses of Parliament, and a motion endorsing draft negotiating objectives has been approved by a resolution of both Houses of Parliament.

(2) Prior to the draft negotiating objectives being laid, the Secretary of State must have—

(a) consulted with each devolved authority on the content of the draft negotiating objectives, and

(b) produced a sustainability impact assessment including, but not limited to, an assessment of the impact on food safety, health, the environment and animal welfare.

(3) The United Kingdom may not become a signatory to a free trade agreement to which this section applies unless a draft of the agreement in the terms in which it was to be presented for signature by parties to the agreement has been laid before, and approved by, a resolution of both Houses of Parliament.

(4) Before either House of Parliament may be asked to approve by resolution the text of a proposed free trade agreement, the Secretary of State must—

(a) consult with each devolved authority on the text of the proposed agreement, and

(b) lay before both Houses a report assessing the compliance of the text of the proposed agreement with any standards laid down by primary or subordinate legislation in the United Kingdom including, but not limited to, legislation governing or prescribing standards on food safety, health, the environment and animal welfare.

(5) In this section—

“devolved authority” has the meaning given in section 4(1) of this Act, and

“free trade agreement” means any agreement which is—

(a) within the definition given in section 4(1) of this Act, and

(b) an agreement between the United Kingdom and one or more partners that includes components that facilitate the trade of goods, services or intellectual property.”

New clause 7—Import standards—

“(1) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the agreement—

(a) includes an affirmation of the United Kingdom’s rights and obligations under the SPS Agreement, and

(b) prohibits the importation into the United Kingdom of agricultural and food products in relation to which the relevant standards are lower than the relevant standards in the United Kingdom.

(2) In subsection (1)—

“international trade agreement” has the meaning given in section 2(2) of this Act;

“relevant standards” means standards relating to environmental protection, plant health and animal welfare applying in connection with the production of agricultural and food products;

“SPS Agreement” means the agreement on the Application of Sanitary and Phytosanitary Measures, part of Annex 1A to the WTO Agreement (as modified from time to time).”

This new clause would ensure that HMG has a duty to protect the quality of the domestic food supply by ensuring that imported foodstuffs are held to the same standards as domestic foodstuffs are held to.

New clause 8—International trade agreements: public health services—

“(1) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 if any provision of the agreement—

(a) would have the effect of, or could reasonably be expected to have the effect of, altering the way in which a service is provided by a specified body,

(b) would have the effect of, or could reasonably be expected to have the effect of, opening any part of a specified body to foreign investment,

(c) would open part or all of a specified body to market access but without any accompanying provision for the UK Government to reduce the level of market access in future,

(d) does not specify sectors or subsectors of a specified body to which the agreement would enable market access,

(e) includes investor-state dispute settlement mechanisms in relation to a specified body, or

(f) includes changes to mechanisms for the pricing of medical or pharmaceutical products for purchase by a specified body.

(2) The specified bodies, for the purpose of subsection (1), are—

(a) NHS England,

(b) NHS Wales,

(c) a health board in Scotland, a special health board in Scotland or the Common Services Agency established by section 10 of the National Health Service (Scotland) Act 1978, and

(d) HSCNI.

(3) In subsection (1), ” international trade agreement” has the meaning given in section 2 of this Act.”

This new clause would ensure that HMG has a duty to restrict market access to healthcare services, including medicines and medical devices.

New clause 9—International trade agreements: climate and environmental goals—

“(1) An appropriate authority may not take action in relation to an international trade agreement unless nothing in the international trade agreement restricts the ability of that or any other appropriate authority to take action in pursuit of the UK’s climate and environmental goals.

(2) In subsection (1) “action in relation to an international trade agreement” means—

(a) laying the agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 (treaties to be laid before Parliament before ratification),

(b) making regulations under section 2 for the purposes of implementing or facilitating the implementation of the agreement, or

(c) making subordinate legislation under any other enactment for those purposes.

(3) In subsection (2) “laid”—

(a) where the appropriate authority is a Minister of the Crown, means laid before Parliament;

(b) where the appropriate authority is the Scottish Ministers, means laid before the Scottish Parliament;

(c) where the appropriate authority is the Welsh Ministers, means laid before Senedd Cymru; and

(d) where the appropriate authority is a Northern Ireland department, means laid before the Northern Ireland Assembly.

(4) In conducting trade negotiations and in other related activity a Minister of the Crown—

(a) must give priority to nations that are fully implementing relevant multilateral environmental agreements; and

(b) must take all reasonable steps to facilitate the achievement of the UK’s climate and environmental goals (including, in particular, by pursuing where appropriate the introduction, amendment or application of rules within the World Trade Organisation and other international trade forums).

(5) In subsection (4) “trade negotiations” means—

(a) negotiations with a view to entering into an international trade agreement; or

(b) negotiations in connection with the implementation or alteration of an international trade agreement, or otherwise connected with international trade.

(6) In subsection (4) “relevant multilateral environmental agreements” means, so far as geographically applicable, any of—

(a) the United Nations Framework Convention on Climate Change done at New York on 9 May 1992 and Paris Agreement done at Paris on 12 December 2015,

(b) the United Nations Convention on Biological Diversity done at Rio de Janeiro on 5 June 1992 (including its protocols),

(c) the Convention on International Trade in Endangered Species of Wild Fauna and Flora 1973,

(d) United Nations Convention for the Law of the Sea 1982,

(e) the Aarhus Convention 1998,

(f) the United Nations Economic Commission for Europe Convention on Long-Range Transboundary Air Pollution 1979,

(g) the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) Convention 1992, or

(h) the Basel Convention 1992.

(7) The Secretary of State must lay before Parliament in each financial year a report about compliance with subsection (4).

(8) In this section “the UK’s climate and environmental goals” means—

(a) the target of achieving net zero carbon emissions by 2050;

(b) any other target set under or for purposes connected with any enactment (including devolved legislation and retained EU law) relating to the environment or climate change;

(c) any target to which the UK is committed by virtue of being party to a relevant multilateral environmental agreement; and

(d) the United Nations Sustainable Development Goals.”

This new clause aligns the UK’s trade policy with the UK’s climate and environmental agenda. It would ensure that the negotiation of trade agreements facilitates the achievement of the UK’s domestic climate and environmental goals and would help prevent trade agreements from restricting action in pursuit of these goals.

New clause 10—Availability of agreement texts—

“(1) The text of any proposed international trade agreement which is being negotiated shall, so far as it is agreed or consolidated, be made publicly available within ten days of the close of each round of negotiations.

(2) Every—

(a) document submitted formally by the United Kingdom government to the negotiations, and

(b) agenda for each new round of negotiations

shall be made publicly available by the Secretary of State.

(3) All other documents relating to the negotiations and not falling within the descriptions provided in subsections (1) and (2) shall be made publicly available by the Secretary of State, subject to subsection (4).

(4) The Secretary of State may withhold from publication any document of a kind falling within the description in subsection (3) but must publish a statement of the reasons for doing so.

(5) In the case of any document withheld under subsection (4), the Secretary of State shall provide full and unfettered access to that document to—

(a) any select committee of either House of Parliament to which, in the opinion of the Secretary of State, the proposed agreement is relevant, and

(b) any other person or body which the Secretary of State may authorise.

(6) In the case of a document to which access is provided under subsection (5), the Secretary of State may specify conditions under which the text shall be made available.

(7) The Secretary of State shall maintain an online public register of all documents published under subsections (1), (2) and (3) or withheld under subsection (4).”

This new clause would give select committees access to more confidential negotiating documents and would provide a process for further transparency of negotiating texts beyond that.

New clause 11—Import of agricultural goods after IP completion day—

“(1) After IP completion day, agricultural goods imported under a free trade agreement may be imported into the UK only if the standards to which those goods were produced were as high as, or higher than, standards which at the time of import applied under UK law relating to—

(a) animal health and welfare,

(b) protection of the environment,

(c) food safety, hygiene and traceability, and

(d) plant health.

(2) The Secretary of State must prepare a register of standards under UK law relating to—

(a) animal health and welfare,

(b) protection of the environment,

(c) food safety, hygiene and traceability, and

(d) plant health

which must be met in the course of production of any imported agricultural goods.

(3) A register under subsection (2) must be updated within seven days of any amendment to any standard listed in the register.

(4) “Agricultural goods”, for the purposes of this section, means anything produced by a producer operating in one or more agricultural sectors listed in Schedule 1.

(5) “IP completion day” has the meaning given in section 39 of the European Union (Withdrawal Agreement) Act 2020.”

This new clause would set a requirement for imported agricultural goods to meet animal health and welfare, environmental, plant health, food safety and other standards which are at least as high as those which apply to UK produced agricultural goods.

New clause 12—Review of free trade agreements—

“(1) The Secretary of State shall lay before Parliament a review of the operation and impacts of each free trade agreement to which this Act applies.

(2) Each such review shall be laid before Parliament no later than five years from the day on which the agreement comes into force.

(3) A further review of the operation of each agreement shall be laid no later than five years after the day on which the previous such review was laid before Parliament.

(4) Each review shall be conducted by a credible body independent of government and shall include both qualitative and quantitative assessments of the impacts of the agreement, including as a minimum—

(a) the economic impacts on individual sectors of the economy, including, but not restricted to—

(i) the impacts on the quantity and quality of employment,

(ii) the various regional impacts across the different parts of the UK,

(iii) the impacts on small and medium-sized enterprises, and

(iv) the impacts on vulnerable economic groups;

(b) the social impacts, including but not restricted to—

(i) the impacts on public services, wages, labour standards, social dialogue, health and safety at work, public health, food safety, social protection, consumer protection and information, and

(ii) the government’s duties under the Equality Act 2010;

(c) the impacts on human rights, including but not restricted to—

(i) workers’ rights,

(ii) women’s rights,

(iii) cultural rights and

(iv) all UK obligations under international human rights law;

(d) the impacts on the environment, including but not restricted to—

(i) the need to protect and preserve the oceans,

(ii) biodiversity,

(iii) the rural environment and air quality, and

(iv) the need to meet the UK’s international obligations to combat climate change;

(e) the impact of any investor-state dispute settlement which forms part of the agreement;

(f) the impacts on animal welfare, including but not restricted to the impacts on animal welfare in food production, both as it relates to food produced in the UK and as it relates to food imported into the UK from other countries; and

(g) the economic, social, cultural, food security and environmental interests of those countries considered to be developing countries for the purposes of clause 10 of the Taxation (Cross-border Trade) Act 2018, as defined in Schedule 3 to that Act and as amended by regulations.

(5) The elements of the review to be undertaken under (4)(f) must be sufficiently disaggregated so as to capture the full range of impacts on different groups of developing countries, and must include both direct and indirect impacts, such as loss of market share through trade diversion or preference erosion.”

This new clause would introduce a review of the functioning of each FTA to which the UK is a signatory to be brought forward after five years and again after a further five.

New clause 13—Role of Joint Ministerial Committee—

“(1) The Joint Ministerial Committee is to be a forum—

(a) for discussing—

(i) the terms upon which the United Kingdom is to commence negotiations with respect to any international trade agreement;

(ii) proposals to amend retained EU law for the purposes of regulations made under section 1 or section 2;

(b) for seeking a consensus on the matters set out in subsection (1)(a) between Her Majesty’s Government and the other members of the Joint Ministerial Committee.

(2) Before Her Majesty’s Government concludes an international trade agreement, the Secretary of State must produce a document for consideration by the Joint Ministerial Committee setting out—

(a) Her Majesty’s Government’s objectives and strategy in negotiating and concluding an international trade agreement;

(b) the steps Her Majesty’s Government intends to take to keep the Joint Ministerial Committee informed of progress in reaching an international trade agreement;

(c) the steps Her Majesty’s Government intends to take to consult each member of the Joint Ministerial Committee before entering into an international trade agreement and for taking the views of each member into account.

(3) Before concluding an international trade agreement the Secretary of State must produce a document setting out the terms of the proposed agreement for consideration by the Joint Ministerial Committee.

(4) In this section, “the Joint Ministerial Committee” means the body set up in accordance with Supplementary Agreement A of the Memorandum of Understanding on Devolution, between Her Majesty’s Government, the Scottish Government, the Welsh Government and the Northern Ireland Executive Committee.”

This new clause would put on the face of the Bill a joint ministerial committee, and give it powers to discuss international trade issues with the devolved Administrations.

New clause 14—Animal welfare and sentience—

“Regulations may only be made under section 2(1) if the provisions of the international trade agreement to which they relate are compatible with—

(a) any provision in UK law (including retained EU law) relating to animal welfare standards and the welfare of animals in the production of food; and

(b) any obligations relating to animal sentience by which the UK is bound, or any principles relating to animal sentience to which the UK adheres.”

This new clause would ensure that any animal welfare or sentience regulations arising from trade agreements are aligned with existing commitments in UK and retained EU law.

New clause 15—Statement on equalities legislation—

“(1) This section applies where a Minister of the Crown proposes to make regulations under section 2(1).

(2) Before a draft of the statutory instrument containing the regulations is laid before either House of Parliament, the Minister must make a statement as to whether the statutory instrument would, if made, modify any provision of equalities legislation.

(3) If a Minister expresses a view in a statement under subsection (2) that the draft statutory instrument would, if made, modify any provision of equalities legislation, the Minister must explain in the statement what the effect of each such modification would be.

(4) If the Minister fails to make a statement as required by subsection (2), the Minister must make a statement explaining why.

(5) A statement under this section must be made in writing and published in such manner as the Minister making it considers appropriate.

(6) In this section, “equalities legislation” means the Equality Act 2006, the Equality Act 2010 and any subordinate legislation made under either of those Acts.”

This new clause would oblige the government to publish a statement outlining whether any equalities legislation would be modified by the proposed regulations.

New clause 16—UK participation in EU and EEA organisations—

“(1) The Secretary of State must seek to negotiate an international trade agreement with the EU which will enable the United Kingdom to continue to co-operate closely with the bodies listed in subsection (2).

(2) The bodies are—

(a) the European Medicines Agency;

(b) the European Chemicals Agency;

(c) the European Aviation Safety Agency;

(d) the European Maritime Safety Agency.”

This new clause would oblige the Secretary of State to negotiate close cooperation with the four mentioned agencies.

New clause 17—International trade agreements: health or care services—

“(1) Regulations under section 2(1) may make provision for the purpose of implementing an international trade agreement only if the conditions in subsections (2) and (3) are met in relation to the application of that agreement in any part of the United Kingdom.

(2) The condition in this subsection is that no provision of that international trade agreement in any way undermines or restricts the ability of an appropriate authority—

(a) to provide a comprehensive publicly funded health service free at the point of delivery,

(b) to protect the employment rights or terms and conditions of employment for public sector employees and those working in publicly funded health or care sectors,

(c) to regulate and maintain the quality and safety of health or care services,

(d) to regulate and control the pricing and reimbursement systems for the purchase of medicines or medical devices, or

(e) to regulate and maintain the level of protection afforded in relation to patient data, public health data and publicly provided social care data relating to UK citizens.

(3) The condition in this subsection is that the agreement—

(a) explicitly excludes application of any provision within that agreement to publicly funded health or care services,

(b) explicitly excludes provision for any Investor-State Dispute Settlement (ISDS) clause that provides, or is related to, the delivery of public services, health care, care or public health,

(c) explicitly excludes the use of any negative listing, standstill or ratchet clause that provides, or is related to, the delivery of public services, health care, care or public health,

(d) contains explicit recognition that an appropriate authority (within the meaning of section 4) has the right to enact policies, legislation and regulation which protects and promotes health, public health, social care and public safety in health or care services, and

(e) prohibits the sale of patient data, public health data and publicly provided social care data.

(4) For the purposes of this section—

“negative listing” means a listing only of exceptions, exclusions or limits to commitments made by parties to the agreement;

“ratchet” in relation to any provision in an agreement means any provision whereby a party, if (after the agreement has been ratified) it has unilaterally removed a barrier in an area where it had made a commitment before the agreement was ratified, may not reintroduce that barrier, and

“standstill” in relation to any provision in an agreement means any provision by which parties list barriers which are in force at the time that they sign the agreement and undertake not to introduce any new barriers.”

This amendment would aim to protect the NHS and publicly funded health and care services in other parts of the UK from any form of control from outside the UK.

New clause 18—Trade agreements: approval—

“A Minister of the Crown must not make regulations to implement an international trade agreement unless—

(a) a statement on the terms of the agreement has been approved by the House of Commons on a motion moved by a Minister of the Crown,

(b) a statement on the terms of the agreement has been approved by the House of Commons on a motion moved by a Minister of the Crown,

(c) a motion relating to that statement has been approved by a resolution of Senedd Cymru,

(d) a motion relating to that statement has been approved by a resolution of the Scottish Parliament, and

(e) a motion relating to that statement has been approved by a resolution of the Northern Ireland Assembly.”

This new clause would require the UK Government to secure the approval of both Houses of Parliament and the devolved Parliaments of Scotland and Wales, and the Northern Ireland Assembly before implementing any international trade agreement agreed after the passing of the Bill.

New clause 19—Involvement of judicial systems in trade disputes—

“(1) The United Kingdom may only become a signatory to an international trade agreement if the condition in subsection (3) is satisfied.

(2) The Secretary of State may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the condition in subsection (3) is satisfied.

(3) Legal proceedings brought against the United Kingdom under investment protection provisions included in an international trade agreement must be heard by the courts and tribunals system of the United Kingdom.”

This new clause would provide protection for UK firms, public bodies and the Government in the event of proceedings under investment protection provisions such as the Investor-State Dispute Scheme (ISDS).

New clause 20—Multilateral investment tribunal—

“(1) The United Kingdom may only become a signatory to an international trade agreement if the condition in subsection (3) is satisfied.

(2) The Secretary of State may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the condition in subsection (3) is satisfied.

(3) The condition under this subsection is that an international trade agreement must include a commitment by all parties to the agreement to pursue with other trading partners the establishment of a multilateral investment tribunal and appellate mechanism for the resolution of investment disputes.”

This new clause would ensure that a multilateral investment process would be used to adjudicate on investor disputes.

New clause 21—Human rights and economic impact assessments—

“(1) Before laying a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010, the Secretary of State must lay before Parliament an impact assessment taking account of short and long-term human rights and economic impacts of that agreement on different sectors including, but not limited to—

(a) gender,

(b) age

(c) race and

(d) class.

(2) The Secretary of State must lay before Parliament reviews of each international trade agreement which has come into effect from January 2021.

(3) A review under subsection (2) must include an assessment of short and long-term economic and human rights impacts on different sectors including, but not limited to—

(a) gender,

(b) age

(c) race and

(d) class.

(4) Reviews under subsection (2) must be laid within two years of the day on which the agreement to which they relate comes into effect, and at intervals of no more than two years thereafter.”

This new clause would ensure that the HMG has a duty to commit to undertaking human rights impact assessments of all trade deals before and after implementation, taking account of short and long-term economic impacts across different sectors, including but not limited to gender, age, race and class.

Amendment 11, in clause 1, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of enabling greater labour market interventions and compliance with ILO standards in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater labour rights in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 12, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing greater environmental exceptions and carbon considerations in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater environmental protections in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 13, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing greater scope for UK small and medium-sized enterprises in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater access for SMEs in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 14, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing improvements to public health as a consequence of any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure improvements to public health in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 1, in clause 2, page 2, line 10, leave out “is a signatory” and insert

“was a signatory on 31 December 2019”.

The most recent EU FTA which was rolled over, was in December 2019. This amendment would provide that any further FTA entered into would not come under the EU FTA roll over provisions of Clause 2.

Amendment 29, page 2, line 14, at end insert—

“(2A) Regulations under subsection (1) to make provision for the purpose of implementing an international trade agreement may only be made if—

(a) the requirements under subsection (3) and under paragraph 4(1) to (1D) of Schedule 2 have been met;

(b) the requirements under subsection (4) and under paragraph 4(1) to (1D) of Schedule 2 have been met; or

(c) the provisions of section [Parliamentary approval of trade agreements] have been complied with and the requirements under subparagraphs 4A(1) to (1D) of Schedule 2 have been met.”

This amendment would put in place a structure for greater Parliamentary scrutiny of proposed international trade agreements.

Amendment 15, page 2, line 15, leave out subsections (3) and (4) and insert—

“(3) Paragraph 4 of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing a free trade agreement if the other signatory (or each other signatory) and the European Union were signatories to a free trade agreement immediately before exit day.

(4) Paragraph 4 of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing an international trade agreement other than a free trade agreement if the other signatory (or each other signatory) and the European Union were signatories to an international trade agreement immediately before exit day.

(4A) Paragraph 4A of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing any international trade agreement not falling within subsection (3) or subsection (4) above.”

This amendment would apply the provisions of the Bill to trade agreements other than EU rollover trade agreements, allowing the Bill to act as a framework for a future trade policy.

Amendment 16, page 2, line 15, leave out subsections (3) and (4) and insert—

“(3) Regulations under subsection (1) may make provision for the purpose of implementing a free trade agreement only if the other signatory (or each other signatory) and the European Union had ratified a free trade agreement with each other immediately before exit day.

(4) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement other than a free trade agreement only if the other signatory (or each other signatory) and the European Union had ratified an international trade agreement with each other immediately before exit day.”

This amendment would mean that a trade agreement would need to be ratified before regulations could be made to implement it.

Amendment 17, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with, and are consistent with—

(a) the provisions of international treaties ratified by the United Kingdom;

(b) the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015;

(c) the primacy of human rights law;

(d) international human rights law and international humanitarian law;

(e) the United Kingdom’s obligations on workers’ rights and labour standards as established by but not limited to—

(i) the commitments under the International Labour Organisation’s Declaration on Fundamental Rights at Work and its Follow-up Conventions; and

(ii) the fundamental principles and rights at work inherent in membership of the International Labour Organisation;

(f) women’s rights and are in accordance with the United Kingdom’s obligations established by but not limited to the Convention on the Elimination of All Forms of Discrimination Against Women;

(g) children’s rights and are in accordance with the United Kingdom’s obligations established by but not limited to the Convention on the Rights of the Child; and

(h) the sovereignty of Parliament, the legal authority of UK courts, the rule of law and the principle of equality before the law.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the UK’s international commitments with specific reference to human rights and related treaties, and must respect the sovereignty of parliament.

Amendment 18, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with, and are consistent with the United Kingdom’s environmental obligations in international law and as established by but not limited to—

(a) the Paris Agreement adopted under the United Nations Framework Convention on Climate Change;

(b) the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); and

(c) the Convention on Biological Diversity, including the Cartagena Protocol on Biosafety.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the UK’s environmental obligations.

Amendment 19, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not in any way restrict the ability—

(a) to make public services at a national or local level subject to public monopoly;

(b) to make public services at a national or local level subject to exclusive rights granted to private operators; and

(c) to bring public services at a national or local level back into the public sector for delivery by public sector employees.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the ability of a UK government to take public services back into public ownership.

Amendment 20, page 2, line 23, at end insert—

“(4A) Regulations may only be made under subsection (1) if—

(a) the provisions of the international trade agreement to which they relate are consistent with standards for food safety and quality as set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(b) the Secretary of State is satisfied that mechanisms and bodies charged with enforcement of standards for food safety and quality have the capacity to absorb any extra requirement which may arise from the implementation of the agreement;

(c) the provisions of the international trade agreement to which they relate are consistent with policy to achieve reduction in the risk of disease or contamination as set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(d) the provisions of the international trade agreement to which they relate are consistent with achieving improvements in public health through any food policy priorities set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(e) the provisions of the international trade agreement to which they relate are compliant with policy to achieve targets for farm antibiotic reduction set by the Veterinary Medicines Directorate;

(f) the provisions of the international trade agreement to which they relate are compliant with retained EU law relating to food standards and the impact of food production upon the environment; and

(g) any food or food products to which the provisions of the international trade agreement apply meet standards of labelling, indication of provenance, and packaging specified by the Food Standards Agency or Food Standards Scotland.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement enshrines UK standards in legislation and adheres to UK standards of food production and food safety.

Amendment 21, page 2, leave out lines 27 and 28.

This amendment would remove Henry VIII powers from the Bill.

Amendment 10, page 2, line 33, at end insert—

“(6A) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of the Scottish Ministers (within the meaning given in paragraph 6 of Schedule 1), unless the Scottish Ministers consent.

(6B) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of the Welsh Ministers (within the meaning given in paragraph 7 of Schedule 1), unless the Welsh Ministers consent.

(6C) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of a Northern Ireland department (within the meaning given in paragraph 8 of Schedule 1), unless a Northern Ireland devolved authority (within the meaning of paragraph 9 of Schedule 1) gives consent.”

This amendment would ensure that the consent of a devolved government is required for regulations under section 2(1) if those regulations contain matters which are within the remit of the devolved government.

Amendment 22, page 2, line 34, leave out subsections (7) and (8) and insert—

“(7) No regulations may be made under subsection (1) in relation to an agreement which meets the criteria in subsection (3) or (4) after the end of the period of five years beginning with IP completion day.”

This amendment would bar any extension to the five-year window for making regulations to implement EU rollover agreements.

Amendment 23, page 2, line 34, leave out subsections (7) and (8) and insert—

“(7) No regulations may be made under subsection (1) in relation to an agreement which meets the criteria in subsection (3) or (4) after the end of—

(a) the period of five years beginning with IP completion day (“the initial five year period”), or

(b) such other period as is specified in regulations made by the Secretary of State in accordance with subsection (8).

(8) Regulations under subsection (7)(b) may not extend the initial five year period or any subsequent period beyond the day which falls ten years after IP completion day.”

This amendment would limit any extension of the window to a maximum of ten years.

Amendment 2, page 2, line 35, leave out “five” and insert “three”.

This amendment reinserts a Government amendment made to the Trade Bill in 2018. It proposes to reduce, from five years to three, the time period during which a) EU FTAs can be rolled over and b) previously rolled over FTAs can be reamended.

Amendment 3, page 2, line 36, leave out “five” and insert “three”.

Amendment 4, page 2, line 39, leave out “five” and insert “three”.

This amendment reinserts a Government amendment made to the 2018 Trade Bill in 2018. If the Government decides to extend the period to make regulations under Clause 2, any such period should not be more than three years.

Amendment 5, page 2, line 41, leave out “five” and insert “three”.

Amendment 27, in clause 4, page 3, line 26, at end insert—

““international agreement that mainly relates to trade, other than a free trade agreement” means a strategic partnership agreement or mutual recognition agreement that is ancillary to a free trade agreement, or an investment agreement”.

This amendment defines what is meant by international agreement that mainly relates to trade, reducing ambiguity.

Amendment 28, in clause 6, page 4, line 22, at end insert “and

(c) analysis of the impact of any exercise by the Secretary of State of the power under section 15 of the Taxation (Cross-border Trade) Act 2018 (as amended by section 94 of the Finance Act 2020) to vary an amount of import duty if he or she considers that it is appropriate to do so.”

This amendment would oblige the TRA to give advice on the impact of the Secretary of State’s actions in reducing import duty under the powers in the current Finance Bill.

Government amendments 6 to 9.

Amendment 24, in schedule 2, page 11, line 26, leave out from “section 1(1)” to the end of line 27 and insert

“may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

This amendment would specify an affirmative resolution procedure for regulations under section 1 (1) (Regulations relating to the UK’s membership of the GPA).

Amendment 25, page 13, line 25, at end insert—

“4A (1) A statutory instrument containing regulations of a Minister of the Crown acting alone under section 2(1) in respect of an international trade agreement which does not meet the criteria under section 2(3) or section 2(4) may not be made except in accordance with the steps in subparagraphs (1A) to (1D).

(1A) The Minister shall lay before Parliament—

(a) a draft of the regulations, and

(b) a document which explains why the Secretary of State believes that regulations should be made in terms of the draft regulations.

(1B) The Minister may make an order in the terms of the draft regulations laid under subparagraph (1A) if—

(a) after the expiry of a period of 21 sitting days after the draft regulations are laid, no committee of either House of Parliament has recommended that the regulations should not be made, and

(b) after the expiry of a period of 60 sitting days after the draft regulations are laid, the draft regulations are approved by a resolution of each House of Parliament.

(1C) If a committee of either House of Parliament recommends that the regulations should not be made, the Secretary of State may—

(a) lay before Parliament revised draft regulations, and

(b) after the expiry of a period of 40 sitting days after the revised draft regulations are laid, make a motion for a resolution in each House of Parliament for approval of the revised draft regulations.

(1D) If a motion under subparagraph (1C)(b) is approved by a resolution of each House of Parliament, the Secretary of State may make the regulations.”

This amendment would establish a form of super-affirmative procedure for scrutiny of regulations implementing all trade agreements covered by the bill. The procedure would apply to agreements other than EU rollover trade agreements if amendments extending the application of the bill were agreed to.

Amendment 26, page 13, leave out lines 33 to 35 and insert—

“(3) A statutory instrument containing regulations of a Minister of the Crown acting jointly with a devolved authority under section 2(1) in respect of an agreement which falls within the description in section 2(3) or section 2(4) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(3A) A statutory instrument containing regulations of a Minister of the Crown acting jointly with a devolved authority under section 2(1) in respect of an agreement which falls within the description in section 2(4A) may not be made except in accordance with the steps in subparagraphs (1) to (1D) of paragraph 4A.”

This amendment would extend the super-affirmative procedure under Amendment 25 to regulations where the Minister was acting jointly with a devolved authority.

Amendment 31, page 15, line 21, leave out subsection (3) and insert—

“(3) No person may be appointed as a non-executive member of the Authority under subparagraph (1)(b) unless—

(a) the Secretary of State has first consulted the Chair of the Authority on the proposed appointment, and

(b) the International Trade Committee of the House of Commons has consented to the appointment.”

This amendment would establish a procedure for appointing non-executive members of the Trade Remedies Authority other than the Chair.

Amendment 30, page 15, line 22, at end insert—

“(3A) In making any proposal under subparagraph (3), the Secretary of State must ensure that there is on the Authority a representative of—

(a) producers,

(b) trade unions,

(c) consumers, and

(d) each of the United Kingdom devolved administrations.”

This amendment would ensure that the Trade Remedies Authority includes, among its non-executive members, representatives of stakeholder bodies potentially affected by its recommendations.

[Greg Hands]

It is a pleasure to open consideration on Report of the Trade Bill and to speak to new clause 5. This is all legislation that contains key measures that will deliver for UK businesses and consumers across the country, providing continuity and certainty. Amendments have been tabled by the Government and from across the House, and with the permission of the House I will outline the Government’s position on these more than 50 different amendments, and on other amendments tabled, before we hear from hon. and right hon. Members.

On Government new clauses 5 and 6, together with amendments 6, 7 and 9, the Government have been consistently clear that the priority for the UK’s existing trade relationships as we leave the EU is continuity. Our partner countries are clear on that too, and this Bill is about continuity. But it is about more than simply transitioning agreements. It is about ensuring that businesses—UK and partner-country businesses—can continue to benefit from smooth-operating borders once we have become a wholly independent trading nation at the end of the transition period.

The Government have set out our ambition to have a world-leading border by 2050. This will support our aim to make the UK a globally attractive place to do business as we move forward. To achieve that ambition, the Government need to make better use of the data we currently hold, and new clauses 5 and 6 are aimed at doing just that. Unlocking the full potential of the data, without placing any additional burden on businesses, will not only allow us to achieve our vision for the future, but benefit those business and consumers who depend on a frictionless border to ensure continuity of our trading relationships today. The smooth flow of traffic, goods and trade after the end of the transition period and during the introduction of import controls will support the manufacturing sector, especially those using the just-in-time methodology and individuals who enjoy using the online sector.

New clause 5 creates a new legal gateway so that Government data can be used, first, to ensure continuity of trade by safeguarding existing trading relationships in countries both in the EU and in the rest of world so they are not frustrated by friction at the border for goods and services at the end of the transition period; secondly, to provide better services to UK businesses and consumers by supporting the effective management of the end-to-end border process; and, thirdly, to underpin the delivery of a world-leading border—protecting the UK, protecting revenue and growing international trade.

This is an amendment that external border industry stakeholders are very supportive of; indeed, they have been calling for exactly this type of action for a long time. I want to be clear to the House on a number of important issues in relation to the new clause. First, this all relates to existing data; there are no new powers for data collection in these Government amendments. Secondly, it is discretionary and specific: it does not create a data-sharing free-for-all between public authorities. The new clause is carefully drafted to limit the data that can be shared to only that related to trade functions. These are functions that, in the main, are the responsibility of the Secretary of State for International Trade or the Minister for the Cabinet Office. If the information is not required for trade functions, it cannot be requested under the gateway. Before any data can be disclosed, the public authority making the disclosure must also be satisfied that it has complied with its own existing data protection obligations—most notably under the Data Protection Act 2018 and the General Data Protection Regulation.

The Government recognise that there may be concerns about what happens to the data once it has been passed to the Cabinet Office, the Department for International Trade or other Departments. I want to assure all Members of the House that no data will be made available or sold to third parties outside Government—a concern which I know a number of colleagues have raised in the past —nor will it be used to monitor citizens or businesses, or to target individuals to be stopped at the border. These measures are, as I have said, about making sure that border flow is maintained, and that traffic, goods and services are free to flow with as little friction as possible.

Furthermore, new clause 6 makes it an offence to disclose unlawfully any personal data shared under the amendment. The Government have also tabled amendments 6 to 9, which make minor changes to the existing clause 8. These amendments are to enable Her Majesty’s Revenue and Customs data to be shared with all Ministers of the Crown, where HMRC is satisfied that the data may be shared for the Minister’s functions relating to trade. The current drafting enables HMRC to share data with the Secretary of State for the same purpose. The practical effect of the amendments is to enable HMRC to share data with the Cabinet Office, which is not headed by a Secretary of State.

New clauses 1 to 3 seek to replicate the effects of Government amendments brought forward to the 2017-19 Trade Bill. Over the course of this legislation, and its 2017-19 version, I have had constructive discussions with my hon. Friend the Member for Huntingdon (Mr Djanogly) regarding the purpose of the Government’s continuity programme. I would like to thank him for his work and the interactions he has had with me, particularly on the important issue of transparency. His efforts have directly changed the Bill through inserting the use of the affirmative procedure when exercising the power in clause 2, and ensuring that Parliament has transparency in relation to continuity agreements through the laying of parliamentary reports, alongside signed agreements setting out significant changes with the underlying EU agreement.

As Members across the House know, the purpose of our continuity programme is to provide certainty to businesses and consumers by retaining the preferential trading arrangements from which the UK benefits as a signatory to trade agreements that the EU had signed with third countries before exit day. That is why we have now concluded 20 continuity agreements with 48 countries, accounting for £110 billion of UK trade in 2018, which represents 74% of the trade with countries with which we were seeking continuity before the withdrawal agreement was signed. Each of those agreements has been accompanied by a parliamentary report, and I can confirm that we will continue to publish reports for all continuity agreements yet to be signed. As those parliamentary reports make clear, our continuity programme has remained true to its mandate: replicating our existing trade relationships. Let me repeat that standards have not been lowered in these 20 agreements. Unsafe food will not be entering our market, and our right to choose how we deliver public services has been protected.

--- Later in debate ---

[Greg Hands]

Let me be clear: we are talking about continuity. My hon. Friend can judge us not just by what I say but by our actions. Of the 20 reports that we have published, five have been called for debate in the other place, and not a single one of those debates has resulted in a motion of regret. He is right about one thing, and that is on Japan. I will come on to examine this shortly, but Japan is different. We have been clear that that will lead to an enhanced free trade agreement based on the original EU agreement, which is why we have put in place different and more considerable scrutiny arrangements for the Japan agreement than for the rest of the continuity programme.

We want continuity agreements to enter into force on day one to avoid a cliff edge for both businesses and consumers. I remind colleagues that all continuity agreements will be subject to the CRAG—Constitutional Reform and Governance Act 2010—ratification procedure. That already provides for a period of 21 sitting days in which agreements, and the parliamentary reports and explanatory memoranda published alongside them, can be scrutinised by parliamentarians before they are formally ratified. I will now address amendments 1 to 5 in the name of my hon. Friend the Member for Huntingdon, as well as amendments 22 and 23.

[Mr Djanogly]

rose—

[Barry Gardiner (Brent North) (Lab)]

Will the Minister give way?

[Greg Hands]

I will give way to the hon. Member for Brent North (Barry Gardiner)—it is great to see him back in trade.

[Barry Gardiner]

The Minister talks of CRAG as if it is a process under which this Parliament has any power. He knows that it is the Government who enable Parliament to have a debate whereby it could vote against what is tabled under the CRAG process. He must look again at the way in which real scrutiny and accountability can be brought to bear in the way that the hon. Member for Huntingdon suggests.

[Greg Hands]

It is good to see the hon. Gentleman back. I remember that he was originally a Blairite Minister in Tony Blair’s Government, and it has been really instructive to see the journey that he has been on over some time. I saw him take the seat in the extreme corner of the Chamber earlier and thought, “Not only has he taken on the views of the right hon. Member for Islington North (Jeremy Corbyn), but he has now even taken his previous seat.” The hon. Gentleman voted for CRAG in 2010, as did I. [Interruption.] We both voted for CRAG in 2010. CRAG allows Parliament to block a trade deal. It allows Parliament to block international treaties. That was the intention—his Government designed it in that way to give Parliament the ability to block an international agreement, and that remains the case today.

[Several hon. Members rose—]

[Greg Hands]

I will make a little bit more progress.

As I have said, the other place has held debates on six of the agreements, and not one carried a motion of regret. We have also retained the affirmative resolution procedure for regulations that are required to implement single agreements. The Government recognise that there may be concerns that the power in clause 2 could be used to implement completely new agreements with continuity countries, both now and in the future, with inadequate opportunity for parliamentary scrutiny. In Committee we heard suggestions that some of the upcoming continuity agreements, such as those with Canada and Singapore, will go beyond continuity, and will therefore require a more comprehensive scrutiny process—my hon. Friend the Member for Huntingdon made that point.

Let me reassure hon. Members that we view the underlying EU agreements as sufficient, and we are not seeking to enhance those deals or go beyond continuity. These will be technical changes to make the agreements function in a UK-specific context. The Government acknowledge that the UK-Japan agreement, although based on the EU’s existing agreement with Japan, will be an enhanced agreement, and that is an exception.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

With ceramics being the fourth largest export to Japan and its industry, does the Minister see an enhanced trade deal with Japan as an opportunity, rather than listening to the doomsayers on the Opposition Benches?

[Greg Hands]

My hon. Friend is absolutely right. All my interactions, and those of the Secretary of State, with the ceramics industry and with MPs who represent key ceramics constituencies, indicate that the Japan deal is extremely important for this country. I am disappointed that the Opposition parties seem to have no enthusiasm for the continuity of our trade with Japan, or its enhancement.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Will the Minister give way?

[Greg Hands]

I will not give way just now. We are committed to additional scrutiny arrangements for any deal with Japan. We believe that the current sunset provisions in the Bill strike the right balance between flexibility for negotiators and the ability to keep agreements operable, and that they provide sufficient constraints and scrutiny to Parliament.

The Government are aware that during the 2017-19 Trade Bill there was uncertainty and concern in Parliament about the nature of the Government’s continuity programme—indeed, I can testify to that, because I was the Minister at the time—and that is why we have tabled a number of amendments to the Bill. There is, however, a crucial change in circumstance since the previous Bill, because Parliament can now see that we have not strayed beyond our mandate to deliver continuity. The transition agreements have not resulted in new or enhanced trading obligations, standards have not been reduced in any way, and our right to choose how we deliver public services has been protected.

[Richard Fuller (North East Bedfordshire) (Con)]

In that context, I understand why there is limited scrutiny for small trade deals, and the Minister has spoken about enhanced scrutiny for the Japan deal. He will know, however, that for many constituents, the US trade deal and the China trade deal will raise the most concerns. Can he give us some assurance that the process of increased scrutiny in Parliament will be higher for those deals than for the ones mentioned earlier?

--- Later in debate ---

[Greg Hands]

I absolutely give my hon. Friend that assurance, and I will come on to discuss those deals in a moment, although they are not within the scope of the current Bill.

My hon. Friend the Member for Huntingdon has tabled new clause 4 on new trade agreements, and that gives me the opportunity to stress the importance that the Government place on parliamentary scrutiny, and the commitments we have made in that space. The House will know that the negotiation and entering into of international agreements is a prerogative power of the Executive. The new clause would give Parliament veto rights over our negotiating objectives.

The Constitution Committee in the other place reported on that issue in 2019, and stated:

“This would impinge inappropriately on the Government’s prerogative power and limit the Government’s flexibility in the negotiations.”

I agree, and as the House will know, there are already rigorous checks and balances on the Government’s power to negotiate and ratify new agreements through the Constitutional Reform and Governance Act 2010. [Interruption.] The right hon. Member for Islington South and Finsbury (Emily Thornberry) is fond of heckling, but she voted for that Act.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

I concur entirely with what the Minister is saying. Is it not the case that if we allow further parliamentary scrutiny, we will not get the best deal from these negotiations, and that at present this is the Westminster-style democracy with the greatest parliamentary scrutiny of trade deals?

[Greg Hands]

My hon. Friend is absolutely correct that our scrutiny offer compares very favourably with Australia’s and New Zealand’s and is at least equal to Canada’s. He is right in other regards as well. Some of these amendments would obligate the Government to publish the text after the end of each negotiating round. At the moment, we publish a written ministerial statement. The idea that we publish the interim text with the United States so that Australia, New Zealand, Japan and all our partners could see it when this Government—this country—are undergoing simultaneous negotiation with different partners is not a sensible way of proceeding.

[Barry Gardiner]

Will the Minister give way?

[Greg Hands]

I am going to make more progress.

This Government understand the desire of Parliament to have effective scrutiny of our FTA programme. That is why we have gone above and beyond the baseline provided by CRAG in committing to publishing comprehensive information ahead of entering into negotiations with partner countries. We have already done this—

[Several hon. Members rose—]

[Greg Hands]

I am going to make progress.

We have already done this for the US, for Japan, for Australia and for New Zealand. This has included publishing negotiating objectives and initial economic assessments. We have also committed to laying final impact assessments once negotiations have concluded and we know the content of the proposed agreement in its entirety.

[Several hon. Members rose—]

[Greg Hands]

I am going to make some more progress.

In addition, the Government have committed to providing regular updates to Parliament on the progress of negotiations. We have already adopted a similar approach for Japan, because that is an enhanced agreement. There is an important distinction that new clause 4 does not make, requiring, as it does, the roll-over agreements not yet signed to be subject to the same scrutiny as new agreements, even though the original EU-third party agreement has been subject to both EU and UK scrutiny.

[Matt Rodda (Reading East) (Lab)]

Will the Minister give way?

[Greg Hands]

I am going to make more progress.

For new trade agreements, the Government have already committed to working closely with the relevant scrutiny Committees in both Houses throughout negotiations. This includes providing confidential briefings, as appropriate, to keep them apprised. This approach is in line with the recommendations of the former Member for Blackburn, Jack Straw—who served in government with the hon. Member for Brent North (Barry Gardiner). He said in his evidence to the Lords Constitution Committee that

“it should be for the negotiators to decide how much privacy and confidentiality there should be”

during negotiations

“and certainly not others”.

Finally, when negotiations have concluded, we will work with the relevant Select Committee to ensure, where practical, that there is time for the Committee to produce a report on the final agreement before it is laid in Parliament under CRAG.

[Tim Farron]

Will the Minister give way?

[Greg Hands]

I am not going to give way further during this section of my speech.

Similarly—this is an important point—if the Committee were to recommend a debate on an agreement prior to ratification, the Government would of course consider that request, subject to parliamentary timetabling. Taken together, this means that Parliament will have comprehensive information, including economic assessments, on our agreements prior to negotiations commencing, at key points during negotiations, and at the conclusion of talks.

Finally on this point—this is extremely important—international agreements cannot themselves alter domestic law, and any changes to UK legislation would need to be scrutinised by Parliament in the normal way. We are strongly committed to transparency, as demonstrated by the steps we have taken to provide comprehensive information to the public and Parliament at the start.

[Tim Farron]

rose—

[Greg Hands]

I will put the hon. Gentleman out of his misery and give way.

[Tim Farron]

I just want to make a point about the nature of the scrutiny. A few weeks ago, the Government rightly came forward with the Trade and Agriculture Commission to add weight to the scrutiny of trade deals with regard to animal welfare, environmental standards and labour standards. What can the Minister do to give more assurance to farmers, in particular, that these deals will not lead to an undermining of their business and their standards, and put that into the Bill to ensure that those cannot then be let down?

[Greg Hands]

I thank the hon. Gentleman for that intervention, which allows me to say that the National Farmers Union has been incredibly welcoming of this proposal. Minette Batters said that it is

“a hugely important development in ensuring UK farming’s high standards of animal welfare and environmental protection are not undermined in future trade deals.”

There are three crucial things. First, we have a strong manifesto commitment to have no compromise on Britain’s standards of animal welfare, food safety and the environment. Secondly, we are transposing the EU rules into UK law to take effect on 1 January. The third thing is simply this: it would be for Parliament, if it so wanted, to block any such changes—if anybody thought they would introduce any of these controversial products, Parliament would be able to block that.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Will the Minister give way?

[Greg Hands]

No, I will make some progress. The Government are strongly committed to transparency, as demonstrated by the steps we have already taken.

New clause 12 proposes a review of free trade agreements every five years after entry into force. We have already established regular dialogue with the International Trade Committee, and that is perhaps the best forum to provide information and assessment of the UK’s wider trade environment and trade relationships to Parliament.

New clause 18 seeks to give Parliament and the devolved legislatures binding votes on, or vetoes over, international agreements, which would be to fundamentally undermine the royal prerogative and, worse, limit our flexibility to negotiate the deals that will best serve the interests of UK consumers and communities.

[Sammy Wilson (East Antrim) (DUP)]

I accept the Minister’s point that for devolved Parliaments to be able to undermine a national trade deal would be wrong. However, will he give us some guidance on the position for Northern Ireland? We may find ourselves having not continuity deals, but new deals, and we could be excluded from some of the benefits of those deals. How will he make an assessment? How will he enable the devolved Administration to have an input into decisions made on those deals if we find that we are disadvantaged by being excluded from them?

[Greg Hands]

I thank the right hon. Gentleman for that intervention. The first thing to say is that I have regular dialogue with his colleague the Minister for the Economy. I am meeting her tomorrow—indeed, I am meeting her twice—to talk about these issues. I reiterate that Northern Ireland remains part of the UK customs area and will benefit from UK free trade agreements. We have been absolutely categoric on both those points. As I say, new clause 18 seeks to give Parliament a veto over those arrangements and to ensure that the Government seek approval from the devolved legislatures on the final agreement. I am in regular contact with the Ministers for the devolved Administrations on these issues.

I will now address new clauses 7 to 9, and others in relation to standards. In answer to the intervention from the hon. Member for Westmorland and Lonsdale (Tim Farron), let me say that we have already given cast-iron commitments, during debate on this Bill and the Agriculture Bill, that we will not be diluting standards in any area, or in any way, following the UK’s departure from the EU.

[Peter Aldous (Waveney) (Con)]

I acknowledge the undertakings that the Government have given on agriculture and food production, but will the Minister also assure me that future UK trade policy will be fully aligned with our climate change and environmental policies? Will he also assure me that in striking new trade deals we will, at all times, promote low-carbon industries such as offshore wind and will not undermine UK businesses that are working hard to lower their own carbon footprint?

[Greg Hands]

I absolutely give my hon. Friend those assurances. The Government’s climate change agenda—indeed, the whole country’s agenda—is incredibly important for us at the Department for International Trade. We have put a lot of time and effort into promoting our capability and capacity in things such as offshore wind. I am regularly saying to international investors and trade partners that the UK now has the largest offshore wind capacity in the world. This is something we are seeking to export and it is something trade agreements can be helpful in. We are working with some of our key partners on these aspects of trade agreements, but they can also be something that the whole of government can work together on.

[Caroline Lucas]

Will the Minister give way?

[Greg Hands]

I am going to make some progress. Let me address matters related to animal welfare, food standards and food safety. I recognise the strength of feeling that those issues generate among colleagues in all parts of the House, but as I have told the House on many occasions, as have the Secretary of State and my Department for Environment, Food and Rural Affairs colleagues, this Government will stand firm in trade negotiations. We will always do right by our farmers and aim to secure new opportunities for the industry, and we will not dilute our high environmental protection, animal welfare and food safety standards.

[Steve Brine (Winchester) (Con)]

There is not just concern on both sides of the House; my right hon. Friend knows that there is a lot of concern out there among the public and our constituents. We have heard commitments from the Front Bench, and when I was food safety Minister I gave those commitments too, around domestic food standards. Many people want it set out in black and white in the Bill. I suspect that the Minister will go on to say why he will resist new clause 7, for instance, so what assurance can he give me, my constituents and many others who will be listening to the debate that that is not necessary because those standards are protected in law, not just in word?

--- Later in debate ---

[Greg Hands]

I thank my hon. Friend for that intervention, which allows me to explain the difference. Some of the amendments seek to dynamically align other people’s methods of production with those that we use in the UK. Yes, we will have, and maintain, exceptionally high standards of domestic production, domestic products and import controls, and we can influence our trading partners.

However, I cannot put into legislation a dynamic regulatory alignment playing field for our trading partners. That would be impractical and it would render inoperable most of our existing trade agreements, and potentially render impossible doing a future trade agreement with the European Union. If all these trading partners had to sign up to dynamically aligning their standards with the UK, that would make it extremely challenging not just to keep our existing trade agreements but to do trade agreements with partners in the future.

[Caroline Lucas]

Will the right hon. Member give way?

[Greg Hands]

I will not, because I have gone on for long enough.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. May I assist by indicating that so many people want to take part on Report that those who have indicated that they wish to speak and are on the call list should be thinking about four minutes? I call the Minister.

[Greg Hands]

I have much more to say, in relation to 50 different amendments, but I appreciate that there are a large number of other speakers, so I will call it a day there in order to allow other people their say. I think I have covered the main areas, outlining why we have the requirements in new clauses 5 and 6 on data, why we are confident of our robust approach to parliamentary scrutiny, using the CRAG process and enhanced things that we have introduced to ensure that Parliament gets the information and has the say that it needs, and finally our absolute commitment to not compromising on standards for food safety, animal welfare and the environment.

[Bill Esterson (Sefton Central) (Lab)]

International trade has rarely been more important. It is critical as we forge a new place in the world outside the European Union. It is also critical to how we recover from the pandemic, as it has the power to deliver prosperity at home and abroad, especially in the developing world as we aim towards the sustainable development goals. We will support the Government where they are right and challenge where they are wrong.

There are three key areas to which our amendments to the Trade Bill refer: social, environmental and democratic. First, on social, the Bill has profound implications for workers’ rights, human rights, public services and the economy. Secondly, on environmental, as my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) reminded us on Second Reading, international trade agreements have a massive impact on our ability to tackle the climate and environment emergency. Meanwhile, food production and animal welfare standards are matters of enormous concern to farmers and consumers alike. Thirdly, on democratic, the complete absence of scrutiny runs like the Sant Andreas fault through the Bill. [Hon. Members: “San Andreas.”] Thank you—the San Andreas fault.

--- Later in debate ---

[Sammy Wilson]

I know that I have a very short time so I just want to make one point very quickly. I am disappointed that the Government could not find any place in this Bill to give a written assurance that Northern Ireland will be able to participate fully in the international trade deals that we will strike across the world when we leave the EU. That is because they cannot give the assurance that the Northern Ireland protocol will not stop us benefiting from goods that will come into the United Kingdom as a result of trade deals or, indeed, will not make the process of selling abroad so expensive that it puts us at a disadvantage when it comes to selling in other parts of the world. We believe that we have an economy that is competitive, but it is not competitive, because we are tied through the Northern Ireland protocol to the single market and to the European customs territory, and therefore treated differently from the rest of the United Kingdom. The assurances that the Minister gives verbally cannot, unfortunately, override the compelling legal commitments in the withdrawal agreement.

[Greg Hands]

With the leave of the House, I would like to respond to what has been a wide-ranging and often well-informed debate.

This Bill is mainly about continuity, but also about sending a clear message that we welcome traders—that we are network Britain, not fortress Britain. On standards, I remind the House that none of the 20 continuity agreements that Parliament has ratified has eroded standards in any way. Not one domestic standard in relation to animal welfare, the environment, human rights or labour has been eroded by any of those agreements.

Let me try to deal quickly with four of the myths propagated by the Opposition. First, on ISDS and protection for investment, this is in the UK’s interests. The UK has never lost a case in any of these tribunals, but for 40 years UK companies, with jobs at stake, have brought these cases. Eighty of the cases—about 1,000 overall—were brought by UK companies and UK investors directly, with UK jobs at stake. That is why this can be very important for UK business and for the jobs of our constituents in making sure that businesses operating abroad are protected.

The second myth relates to devolution. We have been clear that we would not usually legislate in devolved areas without the consent of devolved authorities and never without consulting them. The hon. Member for Dundee East (Stewart Hosie) referred to convenience. If it is more convenient for the UK to legislate for all four nations, then that is a sensible thing.

In terms of standards, we have seen new clause 11, and new clause 7 is even more extreme. New clause 11 wants to make sure that no goods can enter the UK unless they have been produced at standards

“as high as, or higher than, standards which at the time of import applied under UK law”.

That could have massive unforeseen consequences. The Opposition think they are talking about chlorinated chicken and hormone-treated beef, but are they actually able to look people in the eye and say that cocoa from the Ivory Coast has been produced to at least as high environmental standards as in the UK? Are they able to say that beans from Egypt are being produced to at least as high labour standards? Are they able to say that tea from Sri Lanka comes with the same high labour standards? I think they are putting a lot of this country’s existing trade at risk.

The fourth key myth is about the NHS. The NHS remains protected and will never be on the table at any trade deal, and that includes the prices we pay for drugs.

We have had excellent speeches from my hon. Friends the Members for Tiverton and Honiton (Neil Parish), for Totnes (Anthony Mangnall), for Burnley (Antony Higginbotham), for Buckingham (Greg Smith), for Stoke-on-Trent Central (Jo Gideon), for Milton Keynes North (Ben Everitt) and for Stafford (Theo Clarke), from my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), and from my hon. Friends the Members for Witney (Robert Courts), for Montgomeryshire (Craig Williams), for South Ribble (Katherine Fletcher) and for Huntingdon (Mr Djanogly). I thank them for their contributions and the Opposition for theirs.



The Bill is very important in securing the continuity of up to 40 EU trade agreements, the establishment of a Trade Remedies Authority to protect UK businesses and jobs from unfair trade practice, and access to the £1.3 billion global market in Government procurement.

We should accept new clause 5 and related amendments to allow better sharing of data. We should reject the other amendments, which are either unnecessary, such as new clause 4, or, in cases such as new clauses 7 and 11, potentially deeply damaging for this country’s economy.

Question put and agreed to.

New clause 5 accordingly read a Second time, and added to the Bill.

--- Later in debate ---

21:00

Division 78

Ayes: 263

---

Labour: 180
Scottish National Party: 45
Conservative: 12
Liberal Democrat: 10
Democratic Unionist Party: 6
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Independent: 2
Alliance: 1
Green Party: 1

Noes: 326

---

Conservative: 323

The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.

--- Later in debate ---

21:14

Division 79

Ayes: 251

---

Labour: 179
Scottish National Party: 46
Liberal Democrat: 10
Democratic Unionist Party: 6
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Conservative: 2
Independent: 1
Alliance: 1
Green Party: 1

Noes: 337

---

Conservative: 335
Independent: 1

The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.

--- Later in debate ---

21:28

Division 80

Ayes: 251

---

Labour: 182
Scottish National Party: 44
Liberal Democrat: 10
Democratic Unionist Party: 6
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Independent: 1
Alliance: 1
Green Party: 1

Noes: 340

---

Conservative: 336
Independent: 1

--- Later in debate ---

21:44

Division 81

Ayes: 244

---

Labour: 179
Scottish National Party: 44
Liberal Democrat: 10
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Independent: 1
Alliance: 1
Conservative: 1
Green Party: 1

Noes: 345

---

Conservative: 335
Democratic Unionist Party: 6
Independent: 1

The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.

--- Later in debate ---

22:01

Division 82

Ayes: 335

---

Conservative: 333
Independent: 1

Noes: 243

---

Labour: 180
Scottish National Party: 46
Liberal Democrat: 10
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Independent: 1
Alliance: 1
Green Party: 1

Bill read the Third time and passed.