Trade Bill

Lord Lansley Excerpts

Consideration of Commons amendments & Ping Pong (Hansard) & Ping Pong (Hansard): House of Lords
Tuesday 2nd February 2021 Lords Chamber

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con) [V]]

My Lords, with the leave of the House, I will also speak to Motion A1. For those noble Lords present in the Chamber, I apologise for my discourtesy in not being at the Dispatch Box. I was travelling overseas on ministerial business last week, but while I was away my exemption was withdrawn so I am presently in quarantine. I apologise for my absence from the Chamber today.

The Bill has been returned to our House from the other place, and we are moving ever closer to getting this crucial piece of legislation on to the statute book. As my ministerial colleague the Minister of State for Trade Policy so eloquently put it during the last debate on the Bill in the other place, the Bill is this Parliament’s first opportunity to define the UK’s approach towards international trade as an independent trading nation, no longer a member of the EU and out of the transition period. The passage of the Bill will be a boon to the UK economy, giving certainty to business with regard to our continuity trade agreements, which we have now signed with no fewer than 63 partner countries, confirming the UK’s access to the £1.3 trillion global procurement markets, providing protection for businesses and consumers from unfair trading practices, and ensuring that we have the appropriate data to support traders at the borders.

The other place has resolved against non-government amendments to the Bill. It is my hope that this House concurs with the opinion of the other place and chooses not to further amend the Bill. I say with the greatest respect that we must be mindful of the role of this House within Parliament. We are not the democratically elected House and we do not express the will of the people in the same way as the other place does. Our primary role is to scrutinise and, where appropriate, ask the other place to reconsider an issue. The other place has done this, so we must think long and hard before disregarding its clear pronouncements.

I turn to the revised amendment, tabled by my noble friend Lord Lansley, on parliamentary scrutiny. It is of course only right and proper, now that we have left the EU, that Parliament should have the powers to effectively scrutinise the Government’s ambitious free trade agreement programme. However, the amendment has significant deficiencies that we believe are inappropriate for our Westminster style of government and would limit the Government’s ability to negotiate the best deals for the UK.

That is not to say that the Government have ignored the concerns of noble Lords and the other place. Quite the contrary: the Government have significantly enhanced their transparency and scrutiny arrangements because of the scrutiny that your Lordships’ House has given to the Bill. I point noble Lords to my Written Ministerial Statement of 7 December last year and the progress that we have made, for example, in putting the Trade and Agriculture Commission on a statutory footing as evidence of that.

The enhanced arrangements that we have set out are as strong as and, in several areas, stronger than those of comparable Westminster-style advanced democracies such as Canada, Australia and New Zealand. Several of the areas covered in the amendment duplicate things that the Government are already doing or are established precedent of the UK as a dualist state. This includes the statutory requirement to produce an Explanatory Memorandum when a treaty is laid in Parliament; it is through that Explanatory Memorandum that we outline the legislation needed to implement the agreement, as illustrated through the Explanatory Memorandum for the Japan agreement. Consequently, the Government already undertake what my noble friend is seeking in his amendment. As I said on Report, and I am happy to repeat it again, I remain open to discussing with noble Lords how we could improve the presentation of this information.

In addition, if the domestic implementing legislation were not passed before the FTA entered into force, the UK would be in breach of its treaty obligations. For that reason, implementing legislation is normally put in place before ratification of a treaty. I believe that there is no sense in changing that process. The Government have continued to stand by their commitments to accommodate debates on their trade agenda, subject to available time, and I am happy to confirm that that will not change.

Last week I met my noble friend Lord Lansley and the noble Lords, Lord Stevenson and Lord Purvis, to discuss the scrutiny amendment. At that meeting I said I would provide some additional information on the ministerial forum for trade, which I know has been of interest to your Lordships. The forum has been warmly welcomed by the devolved Administrations and has now met four times, most recently in December. As part of the Government’s commitment to improved transparency of intergovernmental relationships, I am pleased to say that there will be a new dedicated page on the GOV.UK website for the ministerial forum for trade. It will be used to publish communiques following future meetings, as well as other relevant documents such as the forum’s terms of reference.

To enable discussions on FTAs between the UK and devolved Ministers, we have shared negotiating objectives with the devolved Administrations for all our rest-of-world FTAs. We have also shared text concerning devolved matters during negotiations and stable text once we reach agreement in principle. I confirm that we intend to continue that approach in future.

In summing up on this amendment, it is already the case that if Parliament is not satisfied with an FTA that we have negotiated, the powers in the Constitutional Reform and Governance Act 2010—CRaG—give Parliament the power to make its views clear by resolving against ratification. In the other place this process can of course be repeated indefinitely, effectively acting as a veto. Your Lordships will also know that we do not have the powers in this Bill to implement any FTA with the United States or any other country which we had no agreement with through our EU membership. The House will therefore have the opportunity to scrutinise any future legislation needed to implement these agreements.

I am sure that noble Lords will scrutinise these future agreements just as forensically as they did the continuity agreements which are the subject of the Bill. As I mentioned earlier, failure to pass any necessary implementing legislation for these future FTAs would prevent ratification of the agreement taking place.

Motion A1 (as an amendment to Motion A)

[Lord Lansley]

Moved by

At end insert “and do propose Amendment 1B in lieu—

1B: After Clause 2, insert the following new Clause—“Parliamentary approval of international trade agreements and treaties(1) If a decision has been made by the Secretary of State to commence negotiations towards a free trade agreement, a statement must be made to both Houses of Parliament.(2) Negotiations for that trade agreement may not proceed until the Secretary of State has laid draft negotiating objectives in respect of that agreement before Parliament, and an amendable motion endorsing the draft negotiating objectives has been approved by a resolution of the House of Commons.(3) Prior to the draft negotiating objectives being laid, the Secretary of State must consult each devolved authority on the content of the draft negotiating objectives, and seek their consent.(4) The Constitutional Reform and Governance Act 2010 is amended as follows.(5) In section 20 (treaties to be laid before Parliament before ratification), after subsection (1)(b) insert—“(ba) where the treaty is an international trade agreement as defined in the Trade Act 2021, a Minister of the Crown has published an analysis of the requirement for the treaty to be implemented through changes to domestic legislation, and(bb) where the treaty is an international trade agreement as defined in the Trade Act 2021, the House of Commons has resolved, within period A, that the treaty should be ratified, and”(6) In section 21 (extension of 21 sitting day period), after subsection (2) insert—“(2A) Where a relevant Committee of either House of Parliament has recommended that a treaty constituting an international trade agreement as defined by the Trade Act 2021 should be debated in that House, the Minister of the Crown must ensure that the period does not expire before that debate has taken place.”””

[Lord Lansley (Con)]

My Lords, it is Groundhog Day and we are debating the Trade Bill. We have nearly concluded it, I hope, but it is in fact more than four years since we first debated the original trade Bill. I earnestly share my noble friend the Minister’s hope that we will bring it on to the statute book soon.

Your Lordships sent two amendments to the other place concerning the parliamentary scrutiny of international trade agreements, and the other place disagreed to them both. I am therefore grateful to the noble Lords, Lord Purvis of Tweed and Lord Stevenson of Balmacara, who have enabled us to combine and somewhat simplify those two amendments, and to focus their provisions in one amendment in lieu. Noble Lords will find it as Amendment 1B on the Marshalled List. It shows clearly that we wish to find common ground with the Government on the issue. As my noble friend the Minister has said on a number of occasions, we are not far apart, as demonstrated in our positive discussions last week, for which I am grateful to him.

Amendment 1B would provide that prior to entering the negotiations on a trade agreement, Ministers would be required to lay the negotiating objectives and that those would need to be approved by a resolution in the House of Commons. In preparing those objectives, Ministers would have to consult the devolved Administrations and seek their consent. Also, when the Government have signed a trade agreement and it is to be scrutinised under the CRaG process, Ministers would have to publish an analysis of the changes required to domestic legislation; and if a committee in either House called a debate on the treaty, Ministers would not be able to ratify it until that debate had taken place.

The House will be aware that the Government are now moving ahead with negotiations on new trade deals, not just continuity agreements. That is very welcome but it means that now is the time, and this is the legislative opportunity, to strengthen Parliament’s role. The amendment does not impinge on the prerogative power. The Executive can still determine whether to enter a trade negotiation and the Government can propose the objectives. They conduct the negotiations and sign the agreement; only then does the Commons—not this House—have the power under the existing CRaG statute to stop ratification, or, technically speaking, to delay it.

The amendment would ensure that the Government consult the devolved Administrations. Given the breadth of trade issues, who could seriously argue that they should not, and that they take the Commons with them on their objectives? Many trade experts argue that this explicit support from Parliament, and occasionally Parliament’s explicit red lines, give force to the trade negotiators’ position.

--- Later in debate ---

[The Deputy Speaker (Baroness Morris of Bolton) (Con)]

My Lords, I see that there have been no requests to ask a question of the Minister, so I call the noble Lord, Lord Lansley.

[Lord Lansley (Con)]

My Lords, I am grateful to all noble Lords who have participated in this debate, which illustrated the issues well. I am grateful in particular to my noble friend Lord Caithness and the noble Baroness, Lady Jones of Moulsecoomb, for their support.

The noble Lords, Lord Stevenson and Lord Purvis, and I have worked together. We are not insisting on the previous amendment sent. I want to be clear that we are looking for a reasonable compromise, but one which gives Parliament its say.

I make no criticism of the way in which the Government have gone about the processes of scrutiny and partnership with both Houses in relation to the continuity agreements, but we are about to enter the process of negotiating wholly new deals. That brings one forcibly to the question: should the Government enter negotiations with the confidence that at least the House of Commons has approved the negotiating objectives? On that, the quoted remarks of the former Secretary of State, who launched the previous Trade Bill four years ago, are relevant—he did not vote for Amendment 1 in the other place because there were other parts of it he did not agree with—so I think we can find a compromise that recognises that there is a democratic deficit which is best met by giving the two Houses a debate but, certainly, by giving a role in approving negotiating objectives to the elected House. That would strengthen the negotiating hand of government rather than bind it.

My noble friend Lord Grimstone was clear about all the ways in which the Government will work with the House, but by at one point saying “personally” I think he recognised the loophole that exists; namely, that if Ministers want to ratify a treaty without scrutiny and debate in the House, they can do it by laying a Statement under Section 22 of CRaG. If, however, they do not want to do that explicitly, they can allow 21 days to pass without a debate and ratify anyway. There is nothing in CRaG to stop them doing so. The purpose of this amendment is simply to close that loophole. If the International Agreements Committee in this House, of which I am privileged to be a member, or the International Trade Committee in the other place were to seek a debate, this amendment would provide that Ministers could not ratify the treaty prior to such a debate. If Ministers agree that there is such a loophole, I am afraid to say that they should agree with the amendment. Disagreeing with the amendment and leaving the loophole open simply affords the possibility for mischief at some point in the future—maybe not by this Government but by another Government at another time.

The need for the other place to have an opportunity to look at this issue on the basis of a new, more restricted amendment on which we can reach a reasonable compromise gives us a basis for asking the other place to think again. I therefore seek to test the opinion of the House on Motion A1.