Economic Partnership Agreement: Kenya

Lord Duncan of Springbank Excerpts

Tuesday 2nd March 2021 Lords Chamber

[Baroness Sugg (Con) [V]]

My Lords, I welcome the EPA’s focus on development and the commitment to continue to provide duty-free and quota-free access to the UK market for Kenyan goods. This will assist Kenya in seeing the growth benefits from international trade, aided by the appointment of Theo Clarke MP as trade envoy to Kenya and programmes such as TradeMark East Africa, which help promote trade between our two countries.

I appreciate the difficulties that there were in negotiating an EAC-wide agreement before Brexit. However, I share the concerns of the International Agreements Committee and civil society groups that the signing of individual EPAs could risk disruptive economic and political impacts and undermine some of the development objectives, particularly regional integration in east Africa. I would be grateful for my noble friend the Minister’s comments on that.

I am speaking before the maiden speech of the noble Lord, Lord McDonald of Salford, whom I had the pleasure of working with at the FCDO towards the end of his lengthy and loyal service. I agree wholeheartedly with his remarks yesterday that the cutting of our international development budget—moving in the opposite direction to the rest of the G7—is a strategic and regrettable mistake. I look forward to his experienced contributions to this place on that and other international issues.

This economic partnership and our broader relationship with Kenya—indeed, with the continent of Africa—is at risk due to the planned cut in international development. There are reports of our bilateral programmes in Kenya being cut by between 50% and 70%. Can my noble friend the Minister tell me what conversations his department has had with the FCDO about the impact of these cuts? Will the important trade programmes to which the Prime Minister recommitted last year at the UK-Africa Investment Summit—such as the successful TradeMark East Africa programme, which has a budget of $155 million up to 2023 in Kenya alone and has already allocated this funding to 36 projects—be fully protected? These projects are delivered in close partnership with the Government of Kenya, the EU, Ireland, Denmark, Finland and the United States. Will we uphold our commitment to them? Has an impact assessment been made of how the cuts in Kenya will affect our trade relationship?

Finally, does the Minister agree that one department trying to increase trade with Kenya while another undermines our bilateral relations and trade programmes through massive budget cuts is not exactly joined-up government?

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

I welcome and call the next speaker, the noble Lord, Lord McDonald of Salford.

--- Later in debate ---

[Lord Hannay of Chiswick (CB) [V]]

My Lords, I too welcome the maiden speech of the noble Lord, Lord McDonald of Salford, and in doing so express my sadness that his late father-in-law, Lord Wright of Richmond, was not here to see him make it. I worked once for someone who said he was a founder member of the son-in-law club. He was a former Leader of this House, Lord Soames, and his father-in-law was Winston Churchill, of course. He always used to say, “the son- in-law also rises.”

In so far as the UK-Kenya agreement we are debating is one of the category that the Government call continuity agreements—perhaps more clearly described as rollover agreements of the terms which already existed between the UK and Kenya when we were a member of the EU or in transition out of it—there is probably no need to go into too much detail, which is fortunate since, as usual, we have no time to do so.

Perhaps when the Minister replies to the debate he can identify any elements in the agreement which provide better access to our market than Kenyan exporters already had, or provide our exporters of goods or services with better access to the Kenyan market than they already had. What we are talking about, therefore, is running to stand still. I am not denigrating that; it is certainly better than nothing and better than regressing to straightforward third-country treatment of each other. But it is still light years removed from what was promised by the promoters of Brexit once we had shaken off what they described as the “shackles” of EU membership.

That brings me to a wider point, which was raised forcefully in the report of your Lordships’ International Relations and Defence Committee on the UK’s relations with sub-Saharan Africa—a report published last July and still languishing undebated. It is now nearing five years since the Department for International Trade was set up in the aftermath of the 2016 referendum to establish the outlines of the UK’s new independent trade policy, yet to this day not a word has been revealed about what that policy should be towards Africa —a substantial proportion of the world’s population, containing many rapidly growing markets. Not one word has been said about those African countries’ improved access to our market, which must surely be an integral part of any serious partnership between the UK and Africa.

This failure to identify and to promote the countries of Africa as a priority part of our new trade policy is surely a lamentable one which must be remedied. However, the Government’s written replies to our report’s recommendations—two attempts were needed—were vapid and imprecise, and contained no sense of urgency. Clearly, pursuit of the mirage of a UK-US agreement and that of an agreement with the Pacific grouping, with seven of whose 11 members we already have free trade agreements, were crowding out any consideration of Africa. I hope that the Minister can say that this will not continue to be the case and give us chapter and verse on how that lacuna will be filled, at the latest when the report on sub-Saharan Africa is finally debated.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

I call the next speaker, the noble Baroness, Lady Wheatcroft. I beg your pardon, the next speaker is the noble Viscount, Lord Waverley.

[Viscount Waverley (CB)]

It has happened many times before; not to worry.

My Lords, the maiden speech by the noble Lord, Lord McDonald of Salford, was one of the finest.

The Kenyan agreement should become a beacon of best practice, promoting inclusion, sustainability and green growth, and, importantly, should be based around delivering African priorities. However, the UK’s recent push to sign continuity agreements with African states has drawn criticism for being overly focused on the UK’s needs and not those of the continent. There is an excellent opportunity to reset the trade relationship with Africa and seek an agreement that centres on the priorities of that continent: the African Continental Free Trade Agreement, which aims to boost intra-African trade. This would tie in well with Commonwealth objectives to boost intra-Commonwealth trade, a significant proportion of which should be in Africa, a point borne out in Nairobi at the Commonwealth summit hosted by the Secretary-General, the noble and learned Baroness, Lady Scotland.

However, as a broader strategy of approach, emphasis should not be just on anglophone Africa. The UK’s ambition to be the lead investor in Africa should be seen within the context of opportunities in francophone and lusophone countries, and the Hispanic Equatorial Guinea. Being an international centre for mobile technology, digital trade ought to be prominent and include financial services. The UK should be seeking to agree a modern digital trade corridor, on par with those agreed with Japan and Singapore, with free movement of money, data supporting inward investments services and trade in goods.

Notwithstanding a round of development cuts, we should be seeking to better utilise our diminishing funds to build resilience and capabilities in key areas such as digital connectivity, climate, health and skills. I conclude by saying that we should be mindful too of UK-EU-Africa supply chains—the east African flower trade being a case in point, as has already been referred to. This Kenya agreement should strengthen these things and not have the negative effect of disrupting and undermining them; although, as an aside, I have long been a proponent of the establishment of greater east-west transport corridors.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

I thank the noble Viscount, Lord Waverley. I will not forget again. I now call the noble Baroness, Lady Wheatcroft.