G20 Summit

Lord Newby Excerpts

Monday 3rd December 2018 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness the Leader of the House for repeating today’s Statement. Aboard her flight to Buenos Aires, the Prime Minister told waiting reporters that she was off to sell UK trade to world leaders. It is hard to understand what exactly the Prime Minister means by this, considering that we have no idea what our trading status will be after March. The Government’s withdrawal agreement looks set be voted down, a third of the Prime Minister’s own trade envoys oppose her plans for future trading arrangements, and, with the Attorney-General refusing to publish his full legal advice on the backstop, it is fair to say that we are a long way off negotiating any kind of trade policy. Yet we are told that, from Canada to Japan, one by one the Prime Minister sat down with world leaders to set out future trade deals. I hope that the noble Baroness will say a little more about this and detail to the House exactly what the Prime Minister could have discussed in these bilaterals.

We are told that trade at least was not on the cards during the Prime Minister’s bilateral with Crown Prince Mohammad bin Salman. Did she have a frank discussion over the UK’s sale of arms for use in the brutal Yemeni civil war? The UK is not a spectator; as long as we are selling arms to be used in that war we are very much involved. The Prime Minister says in her Statement that one of the reasons for the meeting was,

“to urge an end to the conflict”.

Surely we can do better than that. Crucially, the Prime Minister needs to put an end to the flow of British arms for use in this civil war. It is now time for action. We have a moral obligation to help the people of Yemen. Ahead of the Stockholm talks in the coming days, the Government should do everything possible to bring about a permanent end to the barbaric bombardment of Hudaydah. As an urgent priority, she needs to fully support humanitarian relief to find a route to allow food and medicine to reach the 14 million starving Yemenis. Can the noble Baroness the Leader tell us whether any of these issues were raised by the Prime Minister in her bilateral meeting?

We welcome confirmation that the Prime Minister raised the murder of Jamal Khashoggi with the Crown Prince. During the summit, President Macron told the Crown Prince that international experts must be part of the investigation. Turkey called for a full UN-led investigation into the incident. We are told that the Prime Minister asked for transparency. Can the noble Baroness expand on this and clarify what the Prime Minister’s exact demands are for the Khashoggi investigation?

Prior to the summit, it was well briefed that the Prime Minister would use the trip to engage in a new security partnership as part of her preparations for the UK’s new satellite system that would rival Galileo. That raises several immediate concerns. What will be the cost of creating a new, separate system? Will it be as effective and will we have full access by 2026, as was the plan with Galileo? Despite all the pre-briefing, there is nothing in the Statement. Can the noble Baroness confirm that, given all the pre-briefing, it was discussed at the summit?

On climate change, the Prime Minister told the summit that the UK was determined,

“to lead the way on the serious threat that climate change poses to our planet”,

to quote from the Statement. That is a worthy aim, but it needs more than just words. For example, did the Prime Minister urge President Trump to reconsider his rejection of the Paris agreement in her informal discussions with him?

Aside from the bilateral meetings, after hours of negotiations it emerged on Saturday that the G20 had agreed a joint communiqué that reaffirmed the commitment to a rules-based international order, which I am sure all of us would welcome. However, we need just to scratch the surface of the declaration and we see that the actions of some of the signatories are at odds with the spirit of the agreement. The UK has a responsibility to support and to defend these values of multilateralism, and the Prime Minister must encourage our international partners to do the same.

Against the backdrop of the communiqué, the US and China agreed a trade war truce, which the White House has labelled “a wonderful humanitarian gesture”. However, apparently this “wonderful humanitarian gesture” includes support for the expansion of the death penalty in China for those importing the opiate drug fentanyl to the US. Meanwhile, in the face of Russia’s arrest of Ukrainian soldiers, Kiev has suggested that democratic elections could be suspended. Neither of these is consistent with the principles of a rules-based international order.

The Prime Minister must seek to use any influence the UK has to encourage all countries to genuinely and honestly abide by this agreement in both domestic and international policy. There has to be real value to such summits. For that to be the case, the communiqué cannot be just warm words to be discarded when they are inconvenient.

[Lord Newby (LD)]

My Lords, I too thank the Leader for repeating the Statement, but am rather disappointed that it contains an omission. We are told that all the leaders had a bit of downtime during their stay in Argentina, during which they demonstrated national character traits. Angela Merkel went to a steak house for a good meal; President Macron went to a bookshop for a meeting with writers and thinkers; and President Modi held a public yoga session in front of several thousand—no doubt somewhat surprised— Argentinian residents. Can the Leader tell us what the Prime Minister did to reflect our current national mood and character?

More seriously, the Statement contains a number of references to Brexit which are rather curious. First, it says that the Prime Minister held discussions on,

“the good deal an orderly exit will be for the global economy”.

How is that compatible with the Government’s own long-term economic analysis, published last week, which showed that even if the Government get free trade agreements with every single country with which they do not currently have one, there will be a reduction in GDP in the UK because there will be a reduction in trade? The inevitable corollary of that is that there will be a reduction in GDP in the rest of the world because there is a reduction in trade.

Secondly, the Prime Minister said:

“Once we leave the EU, we will strike ambitious trade deals”.


Given that the EU has rejected the Government’s proposal for a facilitated customs agreement, how can we strike trade deals on our own while keeping a frictionless border in Northern Ireland? The Prime Minister had specific discussions on trade with a number of Heads of State and Government, including that of Japan. In her conversations with the Japanese Prime Minister, did she discuss the commitment given to Nissan some two years ago guaranteeing that it would be no worse off under Brexit? If so, what assurances did she give, or could she give, to Japanese companies in the UK that they would not face additional barriers to trade, particularly those working in the services sector, not least the financial services sector, after Brexit?

Finally, the Prime Minister said that the UK was,

“creating the right environment for tech companies to flourish”,

after Brexit. Why then does the Prime Minister think that, last week, a letter was delivered to 10 Downing St signed by more than 2,300 tech entrepreneurs warning that, under the Government’s plans for Brexit, the industry would be hit by a drastic reduction in market access and difficulty in attracting new talent and investment from outside the UK?

The Prime Minister is living in a fantasy world increasingly at odds with reality. Fortunately, with next week’s votes, reality is about to intrude.

[Baroness Evans of Bowes Park]

I thank the noble Baroness and the noble Lord for their comments. Both of them asked about the conversations that the Prime Minister had on trade. In her bilateral with President Abe, both leaders reaffirmed our commitment to work quickly to establish a new economic partnership between Japan and the UK in the future based on the EU-Japan Economic Partnership Agreement. She met Prime Minister Morrison of Australia for the first time at the summit, and we are stepping up engagement with the Indo-Pacific, with new missions in Samoa and Tonga and an enhanced relationship with ASEAN. We also laid the foundations for an ambitious future UK-Australia free trade agreement. The Prime Minister also met President Piñera of Chile. They welcomed the constructive discussions to date on transitioning the current EU-Chile agreement and reaffirmed the commitment of both sides to conclude it swiftly. The Prime Minister also held talks with Prime Minister Trudeau. She therefore had a lot of constructive engagement with our global partners.

As the Statement made clear, for the first time in more than four decades, we will have an independent trade policy working through the WTO. As we have said on numerous occasions in the House, during the implementation period we would be able to negotiate, sign and ratify deals across the world.

The noble Baroness, Lady Smith, rightly asked about the situation in Yemen. I assure her that we are fully focused on bringing an end to hostilities there to address the worsening humanitarian crisis and build a lasting political solution. Diplomacy and negotiation remain the only path to ending the conflict. The indications are that, in the coming days, the sides will come together in Stockholm to hold meaningful talks. They open a window of opportunity to work with all parties towards a cessation of hostilities. The Prime Minister made that point forcefully to the Crown Prince in her bilateral with him. The noble Baroness will also know that the UK is the fifth largest donor of humanitarian assistance to Yemen this year. We have committed £570 million since the conflict began.

The noble Baroness asked also about the Prime Minister’s conversation with the Crown Prince about Jamal Khashoggi. She stressed again the importance of ensuring that those responsible for the murder are held to account and that Saudi Arabia takes action to build confidence that such an incident could not happen again. She made it clear that both the Turkish and Saudi investigations should be carried out thoroughly until responsibilities were clearly established, and that there should be proper accountability and due process for any crimes committed. She made it clear also that we expect Saudi Arabia to take measures to ensure that such violations of international and national laws do not happen again. We have also been clear that we will work with the EU and member states to consider how we can act together to take appropriate measures against those responsible once the investigations have concluded.

Our defence export procedures are among the strictest in the world. A licence will not be issued to Saudi Arabia or any other country if to do so would be inconsistent with any provision of the consolidated EU and national arms export licensing criteria. In July 2017, the High Court ruled that our sales to Saudi Arabia were compliant with those regulations.

The noble Baroness asked also about the Paris agreement. Certainly, the Prime Minister has had a number of conversations about it with President Trump and has urged him not to withdraw. We remain committed to the Paris agreement and were pleased that the other 19 members of the G20 all reinforced their strong commitment to it. The noble Baroness will know that the UK is decarbonising more quickly than any other G20 country and is honouring its climate finance commitments. At the G20, the Prime Minister announced £100 million for the renewable energy performance platform to support small-scale renewable energy projects in sub-Saharan Africa.

The noble Baroness rightly talked about some of threats faced by our rules-based system. We are clear that we are committed to upholding it. Despite difficulties, the G20 provides an opportunity collaboratively and openly to discuss the challenges. The system is being openly questioned, so we must redouble our efforts to defend it. That involves delivering UN reform, fairer burden-sharing in NATO and reform of the WTO—which was a part of the discussion at the G20. The World Bank’s governance must change to reflect the changing balance of the global economy. There need also to be reforms within the decision-making process of the Commonwealth. There is much to do, but it was a constructive summit and a communiqué was agreed by consensus.