Lord Hannan of Kingsclere

The Comprehensive and Progressive Trans-Pacific Partnership sets clear and consistent rules in the intellectual property sector which will be of benefit to both UK businesses and consumers. It would be inappropriate to comment on the specific matters raised as negotiations on the terms of the UK’s accession are ongoing.

The UK possesses a world leading intellectual property regime, and it will not sign trade deals that compromise it. Our membership of the European Patent Convention (EPC) is an important part of that regime, by providing an efficient mechanism for innovative UK businesses to protect their inventions across 38 states. The UK takes its international obligations seriously and our accession negotiations will be consistent with our national interest and wider Government priorities, which include our continued alignment with the European Patent Convention and other international IP treaties.

In 2014, the Department for Business, Innovation and Skills conducted a review of the impact on the UK labour market of the UK Working Time Regulations. These Working Time Regulations implemented the EU Working Time Directive into UK law. The report is attached, but can also be found here: https://www.gov.uk/government/publications/working-time-regulations-impact-on-uk-labour-market

In 2006, Defra produced a Partial Impact Assessment ahead of the implementation of EU REACH [please see attached]. It forecasts the cost to UK industry of implementing EU REACH to be £404m. The costs associated with supporting HSE in its role as the UK competent authority under EU REACH since it came into force are estimated at around £15m. A comparative assessment of these costs and the regime that predated EU REACH, is not available.

In 2018, the European Commission published an evaluation of EU REACH. It found that costs to industry for the first two registration deadlines amounted to €2.3- 2.6 billion. Dossier evaluation costs were estimated at €200 million. Restriction costs were estimated at €170 million per year.

The UK has a world leading intellectual property regime and will not sign trade deals that compromise it. The Comprehensive and Progressive Trans-Pacific Partnership sets clear and consistent rules for the intellectual property (IP) sector which will benefit UK businesses and consumers. Article 18.46 (patent term adjustment) is a suspended provision so the UK does not have to sign up to it.

The UK takes its international obligations seriously and our accession negotiations will be consistent with our national interest and wider Government priorities, which include our continued alignment with the European Patent Convention and other international IP treaties.

The Government recognises the inconvenience caused to passengers by the situation regarding air travel from the north of Cyprus to the UK. Under the Chicago Convention, only the Republic of Cyprus may designate Ercan airport as an international customs airport and grant permission for flights to operate from within its territory. It has not done so. As such, those travelling from Ercan airport to Turkey and then onwards to the UK do so on two distinctly separate flights. To do otherwise would be contrary to the UK’s obligations under the Chicago Convention.

This means that no direct air services between the north of Cyprus and the UK can take place. Ultimately, a just and lasting settlement on the island is the best chance of resolving these complex issues. The UK’s commitment to helping the sides achieve this remains unwavering.

It is not relevant to compare Taiwan and the north of Cyprus given that the Chinese authorities have designated a number of airports in Taiwan as international customs airports.

The International Health Regulations (2005) are an existing international legal instrument to which the United Kingdom and 195 other World Health Organization (WHO) Member States are party. The regulations are a key part of the global health security system to prevent, protect against, control, and provide a public health response to the international spread of disease.

At the WHO World Health Assembly (WHA) in May 2022, Member States including the UK agreed a process to negotiate and agree targeted amendments to the regulations and adopted five process-related amendments.

These amendments shorten the timeframes for future amendments to the regulations to come into force, namely 12 months with the possibility to extend up to 24 months, rather than 24 months, and for Member States to reject or reserve on them for 10 months rather than 18 months.

These amendments apply only to future Member State-agreed amendments to the regulations. The UK supports the amendments as they aim to improve the timeliness of Member States’ implementation of and compliance with the regulations, which helps to better protect the UK from future public health events including pandemics.

The 75th WHA also agreed the process for negotiating further targeted amendments to the regulations. Member States could submit proposed amendments for consideration and a Working Group (WGIHR), consisting of all Regulation State Parties, including the UK, through which the proposed amendments would be negotiated and agreed.

The Government continues to engage in the Member State-led WGIHR negotiation process, working to secure the best outcomes for the UK, as a means of strengthening preparedness for and response to future global health emergencies. Our priorities for the more than 300 proposed amendments continue to include increasing compliance with the regulations, improving transparency, and speeding up timeliness of reporting. No further amendments have been agreed yet. Member States agreed to submit a package of agreed amendments to the WHA in May 2024.

Amendments to the regulations must be adopted by Member States at the WHA for them to come into force as a matter of international law. A 10-month opt-out period for the more than 300 amendments will commence only if and when the amendments have been adopted by the WHA.

The Government has a strong commitment and duty to implement its international obligations. In addition, throughout negotiations, the UK has been and will continue to be clear that we would not agree any amendments that would cede sovereignty to the WHO, including in relation to making domestic decisions on national measures concerning public health, such as, domestic immunisation programme rollouts and other similar measures.

A Westminster Hall debate on the regulation amendments will be held on 18 December 2023. Any new or amended domestic legislation necessary to reflect new international obligations under the regulations would be made through the applicable parliamentary process. In all circumstances, the sovereignty of the UK Parliament would remain unchanged.

The International Health Regulations (2005) are an existing international legal instrument to which the United Kingdom and 195 other World Health Organization (WHO) Member States are party. The regulations are a key part of the global health security system to prevent, protect against, control, and provide a public health response to the international spread of disease.

At the WHO World Health Assembly (WHA) in May 2022, Member States including the UK agreed a process to negotiate and agree targeted amendments to the regulations and adopted five process-related amendments.

These amendments shorten the timeframes for future amendments to the regulations to come into force, namely 12 months with the possibility to extend up to 24 months, rather than 24 months, and for Member States to reject or reserve on them for 10 months rather than 18 months.

These amendments apply only to future Member State-agreed amendments to the regulations. The UK supports the amendments as they aim to improve the timeliness of Member States’ implementation of and compliance with the regulations, which helps to better protect the UK from future public health events including pandemics.

The 75th WHA also agreed the process for negotiating further targeted amendments to the regulations. Member States could submit proposed amendments for consideration and a Working Group (WGIHR), consisting of all Regulation State Parties, including the UK, through which the proposed amendments would be negotiated and agreed.

The Government continues to engage in the Member State-led WGIHR negotiation process, working to secure the best outcomes for the UK, as a means of strengthening preparedness for and response to future global health emergencies. Our priorities for the more than 300 proposed amendments continue to include increasing compliance with the regulations, improving transparency, and speeding up timeliness of reporting. No further amendments have been agreed yet. Member States agreed to submit a package of agreed amendments to the WHA in May 2024.

Amendments to the regulations must be adopted by Member States at the WHA for them to come into force as a matter of international law. A 10-month opt-out period for the more than 300 amendments will commence only if and when the amendments have been adopted by the WHA.

The Government has a strong commitment and duty to implement its international obligations. In addition, throughout negotiations, the UK has been and will continue to be clear that we would not agree any amendments that would cede sovereignty to the WHO, including in relation to making domestic decisions on national measures concerning public health, such as, domestic immunisation programme rollouts and other similar measures.

A Westminster Hall debate on the regulation amendments will be held on 18 December 2023. Any new or amended domestic legislation necessary to reflect new international obligations under the regulations would be made through the applicable parliamentary process. In all circumstances, the sovereignty of the UK Parliament would remain unchanged.

The International Health Regulations (2005) are an existing international legal instrument to which the United Kingdom and 195 other World Health Organization (WHO) Member States are party. The regulations are a key part of the global health security system to prevent, protect against, control, and provide a public health response to the international spread of disease.

At the WHO World Health Assembly (WHA) in May 2022, Member States including the UK agreed a process to negotiate and agree targeted amendments to the regulations and adopted five process-related amendments.

These amendments shorten the timeframes for future amendments to the regulations to come into force, namely 12 months with the possibility to extend up to 24 months, rather than 24 months, and for Member States to reject or reserve on them for 10 months rather than 18 months.

These amendments apply only to future Member State-agreed amendments to the regulations. The UK supports the amendments as they aim to improve the timeliness of Member States’ implementation of and compliance with the regulations, which helps to better protect the UK from future public health events including pandemics.

The 75th WHA also agreed the process for negotiating further targeted amendments to the regulations. Member States could submit proposed amendments for consideration and a Working Group (WGIHR), consisting of all Regulation State Parties, including the UK, through which the proposed amendments would be negotiated and agreed.

The Government continues to engage in the Member State-led WGIHR negotiation process, working to secure the best outcomes for the UK, as a means of strengthening preparedness for and response to future global health emergencies. Our priorities for the more than 300 proposed amendments continue to include increasing compliance with the regulations, improving transparency, and speeding up timeliness of reporting. No further amendments have been agreed yet. Member States agreed to submit a package of agreed amendments to the WHA in May 2024.

Amendments to the regulations must be adopted by Member States at the WHA for them to come into force as a matter of international law. A 10-month opt-out period for the more than 300 amendments will commence only if and when the amendments have been adopted by the WHA.

The Government has a strong commitment and duty to implement its international obligations. In addition, throughout negotiations, the UK has been and will continue to be clear that we would not agree any amendments that would cede sovereignty to the WHO, including in relation to making domestic decisions on national measures concerning public health, such as, domestic immunisation programme rollouts and other similar measures.

A Westminster Hall debate on the regulation amendments will be held on 18 December 2023. Any new or amended domestic legislation necessary to reflect new international obligations under the regulations would be made through the applicable parliamentary process. In all circumstances, the sovereignty of the UK Parliament would remain unchanged.

In accordance with the rest of the international community, with the sole exception of Turkey, the UK does not recognise the self-declared "Turkish Republic of Northern Cyprus" as an independent state. Several UN Security Council Resolutions and other multilateral agreements also limit links between UK and the north. The UK has no intention to begin directly importing products. We continue to believe that a just and lasting settlement in Cyprus is the best means of resolving the difficulties caused by the division of the island.

As the Prime Minister and Foreign Secretary have said, the UK has a close and longstanding relationship with Pakistan. We are aware of recent reports of arrests in Pakistan and continue to monitor the situation closely. I spoke to the High Commissioner for Pakistan to the UK, Moazzam Ahmad Khan on 9 May and to Hina Rabbani Khar, Pakistan's Minister of State for Foreign Affairs, on 10 and 13 May, emphasising the importance of peaceful democratic processes and adherence to the rule of law.

All Commonwealth member states have committed to uphold shared values that are enshrined in the Commonwealth Charter, such as Human Rights, Good Governance and the Rule of Law. The Commonwealth Secretary-General is responsible for upholding the principles of the Commonwealth Charter. His Majesty's Government has not discussed Pakistan's compliance with other Commonwealth governments. Last week, I spoke to Pakistan's Minister of State for Foreign Affairs, Ms Hina Rabbani Khar, and to Pakistan's High Commissioner to the UK about the domestic political situation in Pakistan.

The UK is a champion of media freedom and a proud member of the Media Freedom Coalition. The British High Commission in Islamabad regularly raises media freedom and the protection of journalists with the Government of Pakistan at a senior level. On 23 January the UK Political Counsellor raised these issues with Muhammad Saleem Baig, Chairman of the Pakistan Electronic Media Regulatory Authority. On 17 November 2022 the British High Commissioner discussed the issue of media freedom with Pakistan's Minister for Information and Broadcasting, Marriyum Aurangzeb.

On 18 April, the Minister of State for North Africa, Lord (Tariq) Ahmad of Wimbledon made clear the UK's view that the recent wave of arrests and restrictions on political opposition in Tunisia are eroding the space for political plurality, and urged the Tunisian Government to respect the principles and values of an open and democratic society. Lord Ahmad also raised our issues over the arrests directly with Tunisian Chargé d'Affaires on 23 February, as did His Majesty's Ambassador to Tunisia with Foreign Minister Nabil Ammar on 23 February. The UK believes in the importance of space for legitimate political opposition, civil society, strengthening human rights and including all voices in building resilient and successful democracies. The UK is a constructive partner to Tunisia, and we will continue to raise these important issues with the Tunisian authorities at every available opportunity. Imposing sanctions is one response among other diplomatic tools and we will continue to consider a range of approaches to tackle human rights issues. The UK Government does not speculate on future designations. We continue to monitor the political and human rights situation in Tunisia closely.

Access to banking facilities is important for the economy. The provision of banking services is a commercial decision for firms based on a variety of factors, including the local law, regulation of individual countries, an assessment of profitability, or other commercial drivers.

The Government regularly engages with industry to understand the impacts of regulation on businesses’ ability to access banking services. That is why, for example, in last year’s review of the Money Laundering Regulations, the Government committed to consult on options aiming to address the difficulties for businesses in accessing Pooled Client Accounts, including broadening the range of low-risk circumstances in which these accounts may be provided without checks being required on the clients whose funds are held in the account. As committed to in the second Economic Crime Plan, this consultation on changes to the Money Laundering Regulations will begin by the end of this year.

I would encourage businesses seeking a bank account to explore the Business Current Account (BCA) finder tool developed by UK Finance, designed to help businesses compare the full range of bank accounts available and find products that best suit their needs

My officials will continue to engage with industry to understand any emerging issues and assess any impact on investment as a result.

Before the UK left the EU, sales of goods from the EU to UK customers were already subject to VAT. This has not changed. Prior to the end of the transition period, VAT was collected and paid through the VAT return system. For sales to consumers or non-VAT-registered businesses, VAT was either due in the EU Member State or in the UK, depending on whether the volume of the supplier’s sales made into the UK breached an annual threshold. For sales to VAT-registered businesses, the VAT registered-business would be responsible for accounting for the VAT on a VAT return through what is known as a ‘reverse charge’. The VAT-registered business could reclaim this VAT as input tax on the same VAT return, subject to the normal recovery rules. Only sales to the UK from outside the EU were subject to import VAT collection at the border.

Now that the transition period has ended, the UK has used its freedom from EU rules to create a fairer and more robust tax system, while also complying with World Trade Organisation rules by treating EU and non-EU goods the same. For goods in consignments up to £135, VAT is due at the point of sale. Where a UK VAT-registered business provides its VAT registration number to the supplier, the VAT registered business is responsible for accounting for the VAT due on the goods through a reverse charge. For goods in consignments over £135, import VAT is due and UK VAT-registered businesses can choose to use ‘postponed VAT accounting’. Accounting for VAT on a VAT return in these ways allows businesses to reclaim it as input tax on the same VAT return, as was the case under the previous rules, and ensures continuity for businesses.

OECD discussions on addressing the tax challenges of digitalisation have been ongoing for a number of years, with the detailed frameworks for Pillars One and Two having been under development since 2019.

Over the course of that time the OECD has conducted multiple public consultations on the proposals and had extensive engagement with businesses across sectors to take their views on board.

UK government officials are also engaged with many sectors regarding the potential impact of both pillars, including with the insurance sector on the specific issue of timing differences under Pillar 2.

It is a UK priority to reach a comprehensive two-pillar solution addressing the tax challenges of digitisation.

The details of a final agreement, including on the exact framework for implementation, are still subject to international negotiation.

If a political agreement is reached and both pillars are implemented in the UK, they will be subject to the normal tax policymaking process. That would include legislation in the relevant Finance Bill, with impacts then being formally assessed and set out in a Tax Information and Impact Note upon the introduction of the legislation.

Any significant subsequent changes to that legislation would likewise be made through a future Finance Bill.

It is a UK priority to reach a comprehensive two-pillar solution addressing the tax challenges of digitisation.

The details of a final agreement, including on the exact framework for implementation, are still subject to international negotiation.

If a political agreement is reached and both pillars are implemented in the UK, they will be subject to the normal tax policymaking process. That would include legislation in the relevant Finance Bill, with impacts then being formally assessed and set out in a Tax Information and Impact Note upon the introduction of the legislation.

Any significant subsequent changes to that legislation would likewise be made through a future Finance Bill.