Trade Act 2021 (Power to Implement International Trade Agreements) (Extension to Expiry) Regulations 2025

Baroness Bennett of Manor Castle Excerpts

Monday 10th November 2025 Grand Committee

[Lord Lansley (Con)]

My Lords, I thank the Minister for introducing these regulations. This is my opportunity to express a personal welcome to him on his new ministerial responsibilities. I hope he enjoys them. For those of us who are veterans of the Trade Act 2021, such as the noble Lord, Lord Fox, and I—perhaps the noble Baroness, Lady Bennett, also counts in that category—the abstruse nature of the debates that we take part in can always be characterised as having a certain fellow feeling and enjoyment. This debate will doubtless be one of them.

As veterans of the Trade Act 2021 will recall, Section 2(10)(b) confers the power to extend the operation of the Act by a period of up to five years from IP completion date—31 December 2020—and, on more than one occasion, as specified under Section (2)(11). The Act provides for the powers to implement “an international trade agreement” or “a free trade agreement”, but it applies only to agreements to which the European Union and a counterparty were signatories prior to exit day—31 January 2020—so it applies only to those agreements that we referred to at that time as continuity agreements.

Those involved in the original legislation will recall that the regulations were expected to apply principally to procurement agreements and mutual recognition agreements for conformity assessments, as well as similar agreements known as agreements on conformity assessment and the acceptance of industrial products. That was in reference to what my noble friend Lord Grimstone—he of the famous Grimstone rule—enunciated in the passage of that legislation on 29 September 2020. I think it is correct to say that, since the passage of the Procurement Act 2023, further powers are available separately to the Government to include further countries to have access to the government procurement agreement by adding to the list in Schedule 9 to the 2023 Act, so there should be no further need for regulations under the Trade Act 2021 in relation to procurement.

I do not believe the same is true for mutual recognition agreements. One can see that powers in the Act have been used for this purpose. I found three: SI 2021/730, which was the mutual recognition agreement for the USA, Australia, New Zealand, Canada, the Republic of Korea and Japan; SI 2021/1332, which extended the Canadian agreement to construction products; and SI 2022/1400, which applied to Switzerland. Are those powers still needed? I conclude yes, in so far as I can see there are three continuity agreements that include the potential for a mutual recognition agreement or an ACAA, but where such agreements have not been concluded between the European Union and those counterparties. They are the association agreements between the European Union and Ukraine, Moldova and Georgia respectively. Will the Minister say what, if any, ongoing work is being conducted to reach any agreement with any of those three states, or am I correct in thinking that we would implement such an agreement only if or when an MRA or ACAA is concluded between the European Union and one of those states?

I have one further question. Is it the Government’s intention to legislate for a power to implement mutual recognition agreements in free trade agreements in the future? The Trade Act applies to continuity agreements only, and clearly there is a wider question. Will the Minister explain what we might agree with Switzerland or Turkey that is covered by the Trade Act 2021 and regulations under that Act? I am not sure I understand what that would be.

Going outside continuity agreements, the UK-India agreement includes commitments to work on the joint development of technical regulations and can include the acceptance of conformity assessments, but it is not a full mutual recognition agreement. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership states, at Articles 8.5 and 8.6, that each party shall give positive consideration to accepting the results of conformity assessment procedures conducted in the territory of another party and may do so through a mutual recognition agreement; and that, at the request of another party, a party shall enter negotiations for the conclusion of agreements for the mutual recognition of the results of conformity assessment procedures. Among the member states of the CPTPP, Japan, Canada and New Zealand already have mutual recognition agreements in place with us, but other countries may request them. I take this opportunity to ask whether they have done so. On the assumption they have not, were they to do so, would the Government consider implementing legislation for the purpose of bringing mutual recognition agreements into force through statutory instruments, rather than waiting for primary legislation for the purpose?

The conclusion I reach is that these regulations may be needed, if for no other purpose than that the European Union might fast-track agreements with Ukraine and Moldova, although probably not Georgia for the time being. If they are fast-tracked towards EU membership and would be compliant with conformity assessments for industrial products, we may arrive at a situation where we could extend our continuity agreements with them in like fashion. I therefore see the purpose, potentially, for an extension for the next five years.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I join the noble Lord, Lord Lansley, in thanking the Minister for the introduction and repeat his welcome. It is a great pleasure to follow the noble Lord, Lord Lansley, who led us so skilfully and bravely through some truly obtuse bits of the Trade Act in 2021, including questioning his Front Bench very strongly. I will aim not to be obtuse and to be brief. Just the existence of this SI reraises some of the big questions that we discussed in 2021 in the context of what has happened since then.