Trade Bill

Lord Purvis of Tweed Excerpts

Monday 21st January 2019 Lords Chamber

Moved by

[Lord Purvis of Tweed]

8: Clause 2, page 2, line 37, at end insert—
“( ) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if—(a) the provisions of that international trade agreement do not conflict with, and are consistent with—(i) the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015,(ii) international human rights law and international humanitarian law,(iii) the United Kingdom’s obligations on workers’ rights and labour standards as established by, but not limited to, the commitments under the International Labour Organisation’s Declaration on Fundamental Rights at Work and its Follow-up Conventions, (iv) the United Kingdom’s environmental obligations in international law and as established by, but not limited to, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the Convention on Biological Diversity, including the Cartagena Protocol on Biosafety,(v) existing standards for food safety and quality as set and administered by the Department of Health, the Food Standards Agency and any other public authority specified in regulations made by the Secretary of State,(vi) the United Kingdom’s obligations as established by the Convention on the Elimination of All Forms of Discrimination Against Women and by the Convention on the Rights of the Child, and(vii) the sovereignty of Parliament, the legal authority of UK courts, the rule of law and the principle of equality before the law,(b) the provisions of that international trade agreement do not in any way restrict the ability to determine whether public services at a national or local level are delivered by public sector employees, and(c) the Secretary of State has laid before Parliament an assessment of the potential economic, social, human rights and environmental impacts of the international trade agreement on the contracting parties.”

[Lord Purvis of Tweed (LD)]

My Lords, I shall speak to Amendment 8 and the other amendments in this group. Amendment 8 relates to the continuity agreement, and Amendment 53, which is also tabled in my name, relates to future agreements. We return somewhat to an earlier debate where there is perhaps more complexity than the Government have alluded to until now about some of these agreements. I shall explain why this is important before I refer to the components of the amendments.

I shall use three examples of agreements which the Government so far have not said whether they wish to replicate in the continuity agreement: Singapore, Japan and Mexico. This is more complex than the Government have alluded to so far because a European Court of Justice judgment two years ago indicated that free trade agreements should not now include investment protection components. In relation to the Japan agreement, which this Parliament has approved and which will come into force on 1 February this year, as a result of that judgment separate negotiations are now being carried out on an investment protection agreement which Japan has not yet agreed. What is the UK’s intention in rolling forward the trade and investment components, or is it just the trade component? The Singapore agreement, which has been agreed and which would be one of the agreements that we wish to take forward, has, again, been separated out. The Mexico agreement has been agreed and is going through legal scrubbing.

Those three examples, which are significant to UK trade, highlight important aspects. They represent some of the best components of what modern deep and comprehensive trade agreements can include, but they also signify the difficulties that our Government have in wanting to make them continuity agreements, simply and straightforwardly rolling them on. That is why Amendment 8 on continuity agreements is important. It is important because it now sets the principles for agreements which have been signed in principle but which, through the process of seeking continuity, might include practical changes. We do not know yet, but they might. Although we know that it is the Government’s intention that they will not, we have yet to see them or any of the details. Therefore, it is appropriate that we would want to set some criteria for how they can be rolled forward, especially if we are to take forward what the European Union is now doing, which is separating out investor protection agreements from trading agreements. Of course, these amendments relate to trade agreements, but I want to stress the complexity to highlight the fact that the principles should be set down in statute.

In recent years, UK trade, through these agreements, has been transformed to take into consideration much wider aspects than just tariffs, and that is part of the reason that consideration of investment protection is a domestic requirement, whereas other trade is an exclusive competence of the EU. It is why the Japan agreement with the EU, for the first time, includes a specific commitment to the Paris accord. The Japan agreement sets the highest standards—which we are now told by the Prime Minister are to be guaranteed—for labour, safety, environmental and consumer protection, as well as data protection, and it fully safeguards public services and has a dedicated chapter on sustainable development. Curiously, that does not seem to be a concession from the Government today, whereas it would be included in one of the continuity agreements that the EU has already agreed. However, that is not surprising because, with the growth in the wider aspects of trade in our relationships, with many more non-tariff measures in international trade agreements, the impact on domestic legislation and on wider public services is much greater.

If you go on to the EU website, you will find that there have been significant discussions with Australia on trade and sustainable development, taking into consideration provisions on trade and labour, multilateral environmental agreements, climate change, biodiversity and forests, and civil society groups. These are now core elements of how the European Union negotiates trade agreements. How did I know that these were part of the discussions with Australia? I knew because this information is made public. Transparency at the European Union level is such that I was able to find all the elements of the last round of discussions with Australia that took place in November. However, I looked in vain to find any similar background material that led to the mutual recognition agreement that the UK has signed with Australia.

It may well be that mutual recognition over wine will be very necessary, come Brexit; we will probably be enjoying Australian wine a lot more. But the point of making sure that trade agreements meet ethical standards and have a clear set of benchmarks, with a requirement on Ministers to report that they are carrying out these discussions, is now of fundamental importance. It is important because the continuity agreements may not all ensure continuity. I would not be surprised; as we have heard, the Government are seeking “as much continuity as possible”, which could mean there are likely to be some changes.

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We want to ensure that economic growth, development and environmental protection go hand in hand. I hope that that reassures the House and I therefore ask the noble Lord to withdraw his amendment.

[Lord Purvis of Tweed]

I am grateful to the Minister. She may have got the author of Amendment 53 slightly mixed up in her thorough summing up, but at this time in the evening, and speaking as one who is looking forward to sampling a wee dram of one of our country’s best exports at the highest standards, the Minister may be forgiven.

There is a paradox at the heart of this issue. I mentioned the complexity of some of the trade deals that the Government seek to take forward with Mexico, Singapore and Japan. They are either in force or agreed but components of them require further discussion. That means that it is relevant, as the noble Baroness, Lady Hooper, and others have said, to bear in mind that they will be considering the future when we have asked for them to be rolled over.

To prove the point, we need to look at the only example that the Government have so far published: Switzerland. The Swiss themselves, although the Government have not said so, said explicitly that this agreement could serve as the basis for future economic trade relations. Interestingly—perhaps unhelpfully for the Government—they frame it as part of their “mind the gap” strategy on the basis of what they term the disorderly manner in which the UK may leave the European Union. We can rely on the Swiss to be frank and honest.

The paradox also exists that the rolled-over agreements will be on the basis of the existing EU regulations that the Government have committed to putting into law, which we could follow in three-year tranches under the Bill, again and again, but the Government have said that the justification for leaving the European Union is to change the way that we operate our trade policy. There is no surprise that when we are asking countries to roll over the trade agreement, but telling them at the same time that we are likely to want this agreement in place for us to have the flexibility to negotiate trade agreements based on separate regulations, they have been slightly resistant.

My amendment, and others in the group—I appreciate all the contributions from all the Members who have spoken—is an attempt to establish some basic principles and ethics. This is exactly the right moment to do that. Since 2010, the European Union has insisted on having sustainable development chapters in trade agreements. That has been positive for the world. It has been consistent in the contributions of colleagues who have tabled amendments that our argument is not just about concern that the UK would reduce its standards. One reason why we want to operate to the best standards is that if we are opening our markets to other countries, we do so to countries who are increasing their standards across the piece in environmental and labour law, and so on. It is an overt ambition of the Vietnam agreement that we use that clout as an economic market. That addresses the point of the noble Lord, Lord Kerr, that we should move standards up.

Finally, I am still scratching my head about all the Minister’s comments about how unnecessary it is to have something in the Bill because the Government have given their assurances. When it comes to workers’ rights and the environment, the Government have said time and again that we need not worry, so why did the Prime Minister say just today that she would provide Parliament with a guarantee that we would not erode protections for workers’ rights and the environment? That is our concern: that the Government can give an assurance but when it comes to putting something in legislation they pull back until they have to.

[Lord Judd]

There is one other argument: whatever the good will, whatever the intention and whatever the commitment of current Ministers, unless it is in the Bill, it does not bind their successors.

[Lord Purvis of Tweed]

I am most grateful to the noble Lord. He has been a leader in this regard. He will remember when I had the privilege of supporting other Members in taking through the 0.7% development Act. It is only when commitments given at a political level are enshrined in law that we can be reassured. That is our ambition with these amendments. However, I accept what the Minister has said at this stage. I shall not press the amendments. We will come later in the Bill to disputes and the other aspects of trade referred to by the Minister. For the moment, and on the basis of what the Minister has said, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.