European Union (Definition of Treaties) (Economic Partnership Agreements and Trade Agreement) (Eastern and Southern Africa States, Southern African Development Community States, Ghana and Ecuador) Order 2018

Debate between Baroness Fairhead and Lord Haskel

Tuesday 27th November 2018 Lords Chamber

[Lord Haskel (Lab)]

My noble friend is absolutely right to ask how trade policy agreements and treaties will be determined after we withdraw from the European Union. In fact, this is a matter that concerns your Lordships’ Constitution Committee, and it has launched an inquiry to investigate the efficacy of our role in the scrutiny of treaties and how this should be handled post Brexit. I am sure that it will welcome the Minister’s undertaking regarding consultation and engagement.

At the moment, these arrangements are scrutinised by the European Union Parliament and the Commission, and we receive them for approval as secondary legislation. The Secondary Legislation Scrutiny Committee looks at this but of course, as other noble Lords have said, there is very limited scope for comment because the arrangements have already been agreed.

I sit on the Secondary Legislation Scrutiny Committee and our work is to see how these treaties slot in and work with UK law. We had two examples at our meeting yesterday. One dealt with CITES, the arrangement regarding international trade in endangered species, and the other was the Nagoya agreement, which deals with animal tissues—both important matters. The purpose of the statutory instrument is to ensure that these arrangements continue after Brexit, and all the committee did was to make sure that the wording was more appropriate; it did not change anything else.

However, the Explanatory Memorandum promises a further document that will attract the affirmative procedure and transfer powers of enforcement from the Commission to the Secretary of State. So my noble friend is right: here, we are concerned only with the mechanics, not with the rights and wrongs of the arrangement.

My noble friend gave the figure of 40. A paper prepared by an experienced clerk to the Secondary Legislation Scrutiny Committee says that in the last seven years the UK has been party to 225 new treaties. By treaties, he means agreements with a specific country or with an organisation such as Euratom, or a thematic agreement such as the convention on pollutants. We have also had statutory instruments putting in place the mechanism for enforcing sanctions against other countries. For instance, we recently had one against North Korea.

The noble Baroness, Lady Sheehan, made the point that at present the principle of these arrangements is agreed elsewhere. Our work in future will be to scrutinise them from the point of view not only of UK law but of UK usage: the way we do things; compatibility with our values, way of life, standards and priorities, as other noble Lords have mentioned.

So my noble friend is absolutely right to raise this matter. These treaties will require a lot of scrutiny, consideration and careful thought. I join my noble friend in asking the Minister to come forward with proposals on how these matters will be determined after our withdrawal. I am sure that your Lordships’ Secondary Legislation Scrutiny Committee will also be interested in the Minister’s response. This is intimately bound up with my noble friend’s amendment calling on the Government for proposals on how trade policy will be determined. These treaties affect so many of the non-tariff barriers that noble Lords have raised. These non-tariff barriers are now much more important than financial tariffs, especially to a country such as ours, where services are a major part of the economy. I support my noble friend’s amendment.

[Baroness Fairhead]

I thank noble Lords for their contributions. If I breached convention, I offer my apologies particularly to the noble Lord, Lord Stevenson of Balmacara. I was aiming to address some concerns and did it in a different way. Some of these points are absolutely apposite to the SI, while others talk about the future; I will just glance on these, because I understand the issues.

The noble Lord, Lord Stevenson of Balmacara, the noble Earl, Lord Sandwich, and the noble Baroness, Lady Sheehan, talked about a number of challenges, such as the development benefits and merits of EPAs versus unilateral preferences. There is a little bit of history here, in that some of our previous unilateral preferences were deemed not to be WTO-compatible, so we had to move to a different mechanism. We have chosen EPAs because they are much more development-focused, and the aim is to promote and increase trade over time. Having studied EPAs and preferences, I have seen that not all but most countries get better access under EPAs than they would under preferences.

For example, two-thirds of markets are open to Ghana—which I visited recently—for tariff-free access under preferences, but 100% under the EPA. Its prepared fish, coffee beans and cocoa would be affected. I went to a tuna-processing factory while there and heard that they were particularly keen that we continue that EPA, because they saw the benefit. Opening up needs to be done over time, as we agreed, because these are developing countries and liberalisation takes time. In addition, we provide support through improving trade facilitation and customs rules. A lot of our development funding also supports these nations. We are here not to create foes but friends. We are here to build mature, long-term trading relationships, and to open them up asymmetrically. I am happy to confirm, by way of demonstrating that these are seen as attractive, that all parties to the EPAs have expressed an interest in rolling them over to provide continuity. If they were really so unhappy about them, I do not think they would do that.