Public Procurement (International Trade Agreements) (Amendment) Regulations 2021
(Limited Text - Ministerial Extracts only)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, this instrument will ensure domestic public procurement regulations give legal effect to the UK’s international procurement obligations, specifically those covered in the UK third party international trade agreements signed with non-EU countries that had an agreement with the EU before exit day on 31 January 2020. Therefore, when contracting authorities carry out public procurements, this could be covered by an international agreement. If so, suppliers from those countries are required to be treated no less favourably than suppliers in the United Kingdom. It also means that UK businesses will continue to benefit from access to public procurement markets overseas.
We have agreement with the devolved Administrations that this instrument will be laid on behalf of Wales, Scotland and Northern Ireland. This will ensure legislative efficiency and consistency across the four nations.
We are implementing this change because the UK Government, following our exit from the EU, have, as far as possible, committed to providing continuity in existing trade and investment relationships with our existing international partners. We have already helped to ensure a continuation of global procurement through the World Trade Organization’s Agreement on Government Procurement, following the UK’s accession to the agreement as an independent member, and we have laid separate legislation to implement that.
Without this instrument, the United Kingdom would not be able to implement its international procurement obligations in trade agreements with third countries. This would leave the UK Government open to legal challenge and damage our reputation as an international trading partner.
This instrument will be made using powers set out in Section 2 of the Trade Act. The instrument will create a new schedule within existing procurement regulations, listing the international agreements signed by the United Kingdom. It will be limited to UK trade agreements with countries that had a preceding agreement with the EU before exit day. Of those agreements in effect, those with substantive procurement provisions to be listed in the schedule are Albania, the Andean countries, Canada, the CARIFORUM states, central America, Chile, Georgia, Israel, Japan, Kosovo, Mexico, Moldova, North Macedonia, the Republic of Korea, Serbia, Singapore, the Swiss Confederation, Ukraine and Vietnam.
The instrument is, I believe, uncontroversial, each of those agreements having already been scrutinised via the procedure set out in the Constitutional Reform and Governance Act 2010. Furthermore, parliamentary reports have been voluntarily laid alongside each continuity trade agreement. They explain our approach to delivering continuity with each partner as the United Kingdom left the EU. If we have made any significant changes to the trade-related provisions of our existing agreements through entering into the new ones, we have explained them in those reports.
Moving forward, further affirmative statutory instruments will need to be laid, using the powers in Section 2 of the Trade Act, each time the UK signs a new trade agreement with a third country or any of the agreements mentioned here are updated, to give them legal effect. Future trade agreements with countries where there was no free trade agreement with the EU before exit day—which could include Australia and New Zealand—are not covered in the Trade Act and will require separate legislation.
I commend the regulations to the Committee and beg to move.
Lord True (Con)
I thank all noble Lords and noble Baronesses who have spoken for their general welcome for this measure. Some of it was slightly tempered, but in the docile environment of a statutory instrument Grand Committee upstairs, I shall not let my temper be provoked by it. I simply say that, having been called an arch Brexiteer, I would rather describe myself as an arch musketeer now on behalf of the British interest. That operates come rain or shine. Part of the context which has not been referred to—it was referred to by my noble friend Lady McIntosh of Pickering but not by the noble Baroness, Lady Hayter—is that the sun was certainly shining in Downing Street earlier today, when my right honourable friend the Prime Minister and Mr Scott Morrison announced exactly the kind of way forward to a better future which both the noble Lord, Lord Haskel, and the noble Baroness were asking for. This Government are ambitious on behalf of the national interest and of all those who work and produce in our country. We remain unashamedly of the opinion that free trade is an enormous boon to mankind. Over the decades and centuries, it has contributed to the raising of the condition of the people in nations across the world. That is as far as I will go on the political element of the discussion.
On the specific points on which I was asked, my noble friend Lord Lansley raised an important issue in relation to Serbia. These are not minor points; parliamentary scrutiny is obviously of fundamental importance—I think that we all agree on that. I do not think that there has been any attempt to do anything untoward, but I shall undertake to write to my noble friend on the detailed point that he has raised, if he will accept that as a response.
On the specific point raised by the noble Lord, Lord Haskel, about the WTO—which I referred to— perhaps my remarks were slightly infelicitously set, because I gave the impression that there was a forward-looking element here. As for the WTO, a separate statutory instrument, the Public Procurement (Agreement on Government Procurement) (Amendment) Regulations 2021, was made and laid under the negative procedure on 12 May 2021 using powers in Section 1 of the Trade Act. That has given effect to the UK’s independent membership of the Agreement on Government Procurement, which is a WTO function and institution.
My noble friend Lord Lansley, with his immense experience in this area, reminded us that the Government are not involving the National Health Service. These continuity agreements will ensure that the transition of existing FTAs will not impact on how the UK currently delivers healthcare services or standards of care in the NHS. No trade agreement has ever affected our ability to keep public services public, nor has one ever forced us to open up the NHS to private providers. We have always protected our right to choose how we deliver public services in trade agreements and we will continue to do so. I came armed to give longer reassurances on that point and could expand further, but I think my noble friend picked that out accurately from the documents before us.
I agree with my noble friend Lady McIntosh that there are opportunities for agricultural producers, our own producers, as free trade is extended. I do not think we should always see issues as incoming; there are opportunities outgoing as well. I believe that that will be widely seen and acknowledged in the years ahead. My noble friend asked when specific legislation will come forward in relation to the Australia provision announced today by the Prime Minister and the Secretary of State, Liz Truss, who I believe deserves enormous credit for the extraordinary effort she is making on behalf of the country. I cannot advise specifically on timescales for that, but I can assure my noble friend that there will be full scope for the kind of parliamentary scrutiny she is seeking.
My noble friend also asked about the timing of appointments. I cannot at this point advise her on that, but I will try to give her some better guidance outside this discussion.
I am grateful for what has been said. It is a warm afternoon but the musketeering never stops, and I pay full credit to noble Lords who have taken the trouble to take part in this debate to secure the future of British trade and, yes, steps towards the kind of better future that the noble Lord, Lord Haskel, challenged us to work for in his opening remarks. I must tell him that I have slightly more confidence than he has about the prospects for the future, and we will work to disabuse him of any doubts he has. I was very grateful for his input into the debate and that of all noble Lords.
The Government have committed to providing continuity as far as possible in existing trade—we make no apology for that—and in investment relationships with non-EU countries now we have left the EU. I repeat that, for this reason, we think that, as others have said, the instrument is uncontroversial, allowing for the continuation of current procurement practice. That has been the sense of your Lordships’ committee. I hope I have answered noble Lords’ questions. I have undertaken to respond to a couple which are very detailed. I hope I have clarified the implications of the amended legislation and I trust that noble Lords will, as they said, support the statutory instrument. I am grateful to them for that.