Trade Bill
Lord Collins of Highbury ExcerptsMonday 7th December 2020
(3 years, 11 months ago)
Lords ChamberRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-R-I Marshalled list for Report - (2 Dec 2020)
“Free trade agreements: determination on compliance with international obligations and state actions
(1) Before publishing the objectives and any initial impact assessments of a proposed trade agreement to be implemented under the Constitutional Reform and Governance Act 2010, the Government must conduct a risk assessment which considers whether the agreement would comply with the United Kingdom’s international treaties and other obligations, with particular reference to human rights, and examines serious violations committed, or alleged to have been committed by the state or states who will be signatory to the proposed trade agreement.(2) The risk assessment under subsection (1) must be presented to the relevant Committees in both Houses of Parliament.(3) Before a trade agreement can be laid before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 (“the CRAG procedure”), Ministers of the Crown must determine whether the trade agreement, if ratified, would be compliant with the United Kingdom’s international obligations, with particular reference to human rights, and whether serious violations have been committed by the state or states of the signed trade agreement. Such a determination must be published and made available to the relevant Committees at the same time as they are requested to consider a signed trade agreement.(4) The Government must present an annual report to the relevant Committees in both Houses of Parliament on the continuing compliance of trade agreements with the United Kingdom’s international obligations, with particular reference to human rights, and which examines serious violations committed or alleged to have been committed by the state or states who are signatory to the trade agreement since it was signed. If breaches of the United Kingdom’s international obligations or serious violations have taken place, Ministers of the Crown must make a determination on the continuation of a trade agreement.(5) In this section, “serious violations” include an activity by a state which would violate an individual’s—(a) right to life, including but not limited to genocide;(b) right not to be subjected to torture or cruel inhuman or degrading treatment or punishment;(c) right to be free from slavery and not to be held in servitude or required to perform forced or compulsory labour; or(d) other major violations of human rights and fundamental freedoms as set out in relevant international human rights instruments, including the Universal Declaration on Human Rights and the International Covenant on Civil and Political Rights.(6) In this section, “trade agreement” refers to any agreement between the United Kingdom and one or more partners that includes components that facilitate the trade of goods, services or intellectual property, including but not limited to—(a) free trade agreements as defined by section 4;(b) Interim Association Agreements and Association Agreements; (c) Economic Partnership Agreements;(d) Interim Partnership Agreements;(e) Stabilisation and Association Agreements;(f) Global Agreements;(g) Economic Area Agreements;(h) Cooperation Agreements;(i) Comprehensive Economic and Trade Agreements;(j) Association Agreements with strong trade component;(k) Transatlantic Trade and Investment Partnerships; and(l) Investment Protection Agreements.”
Lord Collins of Highbury (Lab)
My Lords, I thank the noble Lord, Lord Purvis, and the right reverend Prelate the Bishop of St Albans for signing this amendment. I also particularly thank the noble Lord, Lord Alton, for his support. Despite what we might read in the newspapers, there is no difference between us on these issues and, in particular, in ensuring that those people who commit genocide are held to account. We have a long record of working together on this and I am sure we will continue that co-operative approach tonight.
As we heard in the previous group of amendments, all EU trade deals since 2009 have had human rights clauses embedded in them, allowing the EU to suspend a deal, either partially or fully, if the third country is adjudged responsible for human rights abuses. While this power has not been exercised in any case so far, EU representatives say that it is vital, first as a basis for dialogue and progress on human rights issues during the negotiation phase for any new deal and, secondly, to apply ongoing pressure on third countries around these issues.
In February 2019, the then International Trade Secretary Liam Fox revealed that the watering down of human rights provisions was something many third countries were demanding as the price of agreeing a deal. He suggested then that the UK would not accept these demands, saying:
“Some countries have said that they did not like some of the human rights elements that were incorporated by the EU and they would like us to drop those in order to roll the agreements over.”
Mr Fox went on to say:
“I am not inclined to do so, because the value we attach to human rights is an important part of who we are as a country.”—[Official Report, 13/2/19; cols. 892-93.]
I totally agree with Mr Fox in that regard, and the Minister’s words in Committee expressed similar sentiments, but how are such words being translated into reality? Is there evidence of a consistent approach on human rights? Do we have a joined-up government approach? In 2016, Simon McDonald, head of the Diplomatic Service, told MPs that
“clearly more resource is devoted … to prosperity than to human rights.”
Human rights are one of the things we follow, but not one of our top priorities. When Theresa May visited China in 2018, she was praised by the Chinese state media for sidestepping the issue of human rights, putting the importance of what it called “pragmatic collaboration” with China first. The media concluded:
“May will definitely not make any comment contrary to the goals of her China trip…. For the Prime Minister the losses outweigh the gains if she appeases the UK media at the cost of the visit’s friendly atmosphere.”
Lord Collins of Highbury (Lab)
I thank the Minister for his response. I also thank all noble Lords who contributed to this debate. I say straightaway to the noble Lord, Lord Blencathra, that I am pleased that on this fundamental issue of principle we are agreed, and I think that that applies across the House. It has been a very positive debate, even where we have disagreed.
The noble Baroness, Lady Noakes, is absolutely right that I am committed to trade, but we are not talking about stopping trade; as the noble Lord, Lord Purvis, said, we are talking about preferential arrangements and agreements, going out there and seeking special agreements to enhance trade and to do more. As I said at the beginning of the debate, we are following a principle that has already been adopted, and we want to make sure that we have a proper process. The fundamental issue here is how Parliament scrutinises the actions of government, particularly on this important point of principle.
I will not take up the House’s time too much; I just want to come back to what the Minister said. He said that on the one hand, “We are already doing what you seek”; on the other hand, he said, “There are fundamental problems with what you’re trying to argue for.” The noble Lord, Lord Lansley, said that now is not the time and that there are issues here that we need to address elsewhere. I disagree. I think that this is absolutely the time. When the United Kingdom is about to leave the European Union, it is very important that we commit ourselves to clear processes that allow for proper parliamentary scrutiny.
I tend to agree with some of the concerns about the intervention of the courts, but at the end of the day there is a clear separation of power here. If Parliament decrees and the Government fail to act within the requirements of Parliament, our courts have a right to intervene. That is our constitutional position, although I would hope that no Government would ever breach the commitments they have given to Parliament. That is why I think that my amendment, signed by the noble Lords, Lord Alton and Lord Purvis, and the right reverend Prelate, is so important. We need that clear process.
I am afraid that the Minister has failed to give us the assurances that we want, so I want to test the opinion of the House.
Lord Purvis of Tweed (LD)
My Lords, this has been a powerful debate and rightly so, given the seriousness of the issue. This Wednesday, 9 December, is the day that the United Nations will mark the adoption of the genocide convention. It is also the International Day of Commemoration and Dignity of the Victims of the Crime of Genocide and of the Prevention of this Crime. I wish to declare an interest in that I chair the UK board of Search for Common Ground, an international peacebuilding charity. Just before the lockdown I was in northern Iraq, where I have been more than 20 times, and Sudan, to which I have gone on many occasions. I have met the victims of the egregious crimes that have taken place in those two countries. Just last night, I was on an online video call with people in Baghdad who are still living with the situation from the north of Iraq which the noble Lord, Lord Alton, introduced. I commend his work in this House and the way that he introduced this group of amendments.
My noble friends Lady Northover and Lady Smith have indicated our support from these Benches and I need not repeat any of their arguments. We will work with the noble Lord and others, as indicated by the noble Lord, Lord Collins, in the previous group, to address some of the areas that have been referred to in the debate. For example, if it is a matter of the courts, which courts, and how do they interact with our treaties and agreements, both domestic and international? Would there have to be clauses and agreements, as the noble Baroness, Lady Kennedy, said, or is the noble and learned Lord, Lord Hope, correct in saying that mechanisms are already in place? This can be discussed and identified.
Also, is this to be linked purely with preferential terms, which the noble Lord, Lord Cormack, indicated, or is it for all trade, as has also been indicated? There are consequences for both of those issues, and yes, they have to be agreed—as well as the interaction between our domestic courts and the mechanisms, which has not been raised so much. Genocide is of course one of the crimes under the International Criminal Court, which is different from those which can be triggered by the genocide convention. How do they interact with each other? These are all issues that I agree can and should be resolved through discussions.
Finally, I want to repeat to the Government from these Benches a clear call for a trade and human rights policy statement where a UK framework of atrocity analysis which can be integrated into our trade policy is agreed. It should be something where officials in the DIT, the Foreign and Commonwealth and Development Office and BEIS should be able to see proper links between judicial measures, human rights measures, trade agreements and our trading relationships. In the absence of a proper framework with atrocity analysis, we will not be doing what I believe that all in this House want the UK to be, which is a leader in the world, not for deciding on the hierarchy of suffering but on preventing the worst excesses of human rights abuses. We need the structures and the frameworks in our legal and trading methods to allow us to do that and I hope that the Government will finally respond positively to this debate.
Lord Collins of Highbury (Lab)
My Lords, I will not detain the House for too long because I made my comments in the previous debate about my support and that of the Opposition for this amendment. I thank the noble Lord, Lord Alton, and particularly my noble friend Lady Kennedy of The Shaws for their interventions.
I will single out two contributions. One is that of the noble and learned Lord, Lord Hope, who has presented us with very clear arguments about why this argument should go to the Commons and why the Commons should consider it. The other is that of the noble Lord, Lord Forsyth, because he is right: we have to respond to the government mantra that we have heard so many times: “It has to go to a competent court”. If that is the response, then, as the noble Lord, Lord Forsyth, said, let the Commons decide. That is what this House can do tonight.
Viscount Younger of Leckie (Con)
My Lords, we have had a very long debate, and it is now my job to address the amendment in the name of the noble Lord, Lord Alton.
I have listened very carefully to the speech of the noble Lord, and noted that he has raised the subject of genocide—a heinous crime—more than 300 times, which is remarkable. I applaud his persistence and I wish that I could be the Minister to provide an answer—perhaps the 301st—that gives the necessary satisfaction to him, and to other distinguished noble Lords who have taken part in this very interesting debate. There have been some very moving and passionate speeches and we have had quotes from around the houses, ranging from Robbie Burns to—I should mention this—the very great, late Lord Sacks.
I do not advocate repeating the points made so eloquently by my noble friend Lord Grimstone in a previous group, so my remarks—I hope that the House will forgive me—are necessarily short. I will, however, quickly re-emphasise that the Government share wholeheartedly the concerns underpinning this amendment. My noble friend Lord Cormack referred to global Britain, as did a number of other Peers. The UK has also long supported the promotion of our values globally, and remains committed to its international obligations. We are clear that more trade does not have to come at the expense of human rights. This includes clauses in our trade agreements with many developing and emerging markets: suspensive powers in our trade preferences regime and recourse to trade levers through our sanctions policy.
The UK has played a leading international role in holding China to account for abuses, in particular those reported as taking place against the Uighur Muslims—which, again, was a theme during the debate this evening. We have led joint statements at the UN’s human rights bodies and underlined our concern directly to the Chinese authorities at senior levels. We have also repeatedly urged businesses that are involved in investing in Xinjiang or which have parts of their supply chain in the region, to conduct appropriate due diligence to satisfy themselves that their activities do not support any human rights violations or abuses. We have reinforced this message through engagement with businesses, industry groups and other stakeholders. Under the Modern Slavery Act the UK became the first country in the world to require businesses to report on how they are tackling modern slavery in their operations and supply chains.
This amendment seeks to give the High Court of England and Wales powers to revoke trade agreements where the court holds that another signatory to the relevant agreement has committed genocide. I was grateful to my noble friend Lord Lansley, who not only alluded to this in the last group but—as I know, though I came in slightly late—in this group too. He made some very helpful and interesting points. I listened carefully to all the speeches but, despite the very strong arguments that were presented by the noble Baronesses, Lady Kennedy and Lady Smith, and a few other noble Lords, the Government have serious concerns about this approach, some of which were touched on in the previous groups, as my noble friend Lord Grimstone iterated most strongly in his remarks.
The key point is that this would strike at the heart of the separation of powers in Britain’s constitutional system, allowing the High Court to frustrate trade agreements entered into by the Government and ratified after parliamentary scrutiny. The noble and learned Lord, Lord Hope, raised a point about the separation of powers and the role of the courts. The Government’s position has consistently been that only a competent court should make determinations of genocide, and this does not entail the courts having the power to revoke trade agreements. State genocide is very difficult to prove in the judicial context—the evidential threshold is very high, and proceedings tend to be long and costly but the amendment would make it simple to bring vexatious allegations of genocide to the court as a means of putting political and international pressure on the Government.
Perhaps I may take up a point raised, in part, by my noble friend Lord Cormack. I remind the House, a bit like a long-playing record, that the Bill focuses on continuity agreements, but I would like to say a word about our approach to free trade agreements. We do not see a choice between securing growth and investment for the UK and supporting human rights. Our experience is that political freedom and the rule of law are vital underpinnings for both prosperity and stability, and that by having a strong economic relationship with partners, we are able to have open discussions on a range of very difficult issues, including human rights. Despite our varying approach to agreements with partners, we will always have open discussions on a range of issues, including human rights.
As my noble friend Lord Grimstone said earlier, we have provided extensive information to Parliament on our negotiations, including publishing our objectives and economic scoping assessments prior to negotiations beginning. We continue to engage closely with the relevant scrutiny committees—namely, the International Trade Committee in the House of Commons and the International Agreements Sub-Committee in the House of Lords.
Just before I conclude, I want to say something about China, because many references were made to that country. I say at the outset—as noble Lords would expect me to say—that China is an important economic partner for the UK. UK/China trade is currently worth approximately £76 billion. China is our fourth-largest trading partner, the sixth-largest export market and the third-largest import market. Currently, we have no plans to commence free trade agreement negotiations with China. Having recently concluded an agreement with Japan, our current priorities, as my noble friend Lord Grimstone has said on many occasions, are the US, Australia and New Zealand, as economies more similar to our own. Looking ahead—again, as my noble friend has said—we are committed to seeking accession to the CPTPP.
I do not want to delay the House any longer and the hour is late. In the light of the legal difficulties and unintended consequences, I ask the noble Lord to withdraw his amendment.
Covid-19: Financial Markets
Lord Collins of Highbury Excerpts(4 years, 8 months ago)
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Lord Callanan
I know of the close interest that my noble friend takes in pension funds, so she will be aware that many of them also take advantage of taking both short and long positions to allow for the hedging of risk. However, I can certainly assure her that we continue to closely monitor market activity, including short selling activity, and we are constantly evaluating our approach to ensure that it is the right one for consumers. Further, if it is required, we will not hesitate to take action.
Lord Collins of Highbury (Lab)
My Lords, as the Minister and other noble Lords have said, these are exceptional circumstances and matters are moving very fast. However, the noble Lord seems to be unaware of the figures indicated by the noble Lord, Lord Bates. I know that it is the responsibility of the FCA to consider any measures that are necessary on short selling, but it is also a matter for the Treasury to consult. Can he advise us on just how frequently, in this fast-changing situation, we are liaising with the FCA so that we actually do take action when it is needed—and fast?
Lord Callanan
Perhaps it would be helpful to the House if I set out what powers the FCA has in this area. Under the short selling regulation, the Financial Conduct Authority has a range of powers which require the holders of net short positions in the issued share capital of a company to make notifications once the thresholds have been breached. It also provides the FCA with the power to suspend short selling or limit transactions where there are significant falls in prices. As I have said, this is being monitored constantly and as yet there is no evidence that it has contributed to the fall in market prices. It forms a relatively small proportion of trading activity at the moment and when studies were made after the financial crisis, again there was no evidence that short selling had contributed to the overall fall in the markets. Nevertheless, it is a situation that we are keeping under constant review and I know that the FCA is watching market activity very closely.