UK-Ukraine Credit Support Agreement

Lord Risby Excerpts

Wednesday 5th January 2022 Grand Committee

[Lord Risby (Con)]

My Lords, it is a great pleasure to follow on from my noble friend. If there is any idea that her stellar electoral performances during her political career had anything whatever to do with me, noble Lords will have heard from her speech that that is complete nonsense. We have heard some outstanding speeches today. I particularly thank the noble Baroness, Lady Hayter, for introducing the debate in such an excellent way, summing up the core of what we are here to discuss.

One of the defining moments in post-war Europe came when a number of former Soviet-bloc countries, having embraced democracy after so many years of terrible hardship, formally joined the EU in 2004. This was unanimously agreed by our Parliament and it was my privilege to help to facilitate that from the Opposition Front Bench in another place. During the passage of the legislation, one ambassador in particular, from Poland, constantly said with great prescience: “Do not forget about Ukraine. They need our help.” It was a message that stuck with me, and for many years I have chaired the British Ukrainian Society.

I unreservedly endorse the credit support agreement. Since Ukraine’s independence in 2001, despite many positives, the country has endured huge difficulties. In 2014, as a consequence of the actions of a very corrupt President by, in effect, rejecting the EU association agreement on offer, Russia invaded and annexed Crimea and in effect took control of Donbass, in part to destroy the Ukrainian economy, which failed, and to cause, successfully, massive human internal displacement. Since then, the road for Ukraine has often been very lonely.

The framework agreement signifies, but in a wholly practical way, the changed perceptions. The current role of this country in supporting Ukraine is exceptional and hugely appreciated. I particularly support the strengthening of the mutual naval capabilities central to the agreement and the importance of the Black Sea strategically. Whoever controls the Black Sea can project power more easily into the eastern Mediterranean and thus on to the Suez Canal. Russian domination of the Black Sea—as part of its so-called near abroad, it is blocking the Sea of Azov—has grown since its annexation of Crimea. Historically, our total commitment, as a maritime power, to maritime law and the freedom of the seas is fundamental, hence the underlining of this by Royal Navy vessels as the Black Sea risks becoming an anarchic environment with Russian domination.

Providing financial assistance to the Ukrainian navy will, as per this agreement, help Ukraine rebuild and bolster its naval capacity and deter further Russian aggression. The new naval bases, the training of Ukrainian naval personnel and the Sandown-class mine-counter- measure vessels will make Ukraine more confident. We are, in effect, empowering a regional partner in the spirit of our integrated review, which is committed to an open international order. NATO has responded, but I hope that we build on and enlarge the existing Three Seas initiative, if we take the logic of this agreement forward, and develop a Black Sea forum, building on our international Crimea platform. There are two specific reasons for this: to send a clear signal to Moscow and to help create a collectively agreed environment for the development of the huge energy resources in the Black Sea, especially when Russia uses energy for political purposes. I should add that Turkey is the key to this. I hope we can use our good relationship to take this forward. I can say categorically that our role in pursuing these themes has been clearly acknowledged and appreciated by the Ukrainian Government.

I also note the role of UK Export Finance in this. Its scope and financing have been massively increased, even to the extent of being able to access funding for the purchasing of British goods and services by foreign Governments or businesses. My noble friend Lady Meyer is the Prime Minister’s trade envoy to Ukraine, which is a very welcome step. Kiev has become a hugely successful technological hub.

President Putin’s obsession with NATO spreading eastwards reflects a total failure of Russian diplomacy. In the past, interest in Ukraine in joining NATO was minimal. His aggression has caused a surge in support for NATO membership. He has, bizarrely, written comprehensively about Ukraine and Russia being joined at the hip, but that hip is now irredeemably broken, so this is the time to be robust, as this agreement makes clear. However, in Kiev there is a sense among many that the EU has been insufficiently supportive this far. Nord Stream 2 has had very negative consequences for Ukraine. The position of the United States, a major military supplier, has now hardened in the light of a possible invasion by Russia. As has been mentioned several times, we look forward greatly to the discussions that will take place, which I hope will break this logjam and move away from the aggression hovering over Ukraine at this time.

I end on this note: the fruits of the bilateral policy we are examining have been assisted by the key role of our ambassador in Kiev. I have seen for myself the role that she has played. At a time when two major powers on the world stage do not share our values, the role of the FCDO in key post-Brexit activity is essential. As one of the Prime Minister’s trade envoys, I have observed with admiration the role of our embassies and what they do with very limited resources. I look forward to my noble friend outlining further how we and like-minded allies can work together to show our rejection of the aggressive undermining of the territorial integrity of a democratic European country.

Comprehensive Economic Partnership (EUC Report)

Lord Risby Excerpts

Thursday 26th November 2020 Grand Committee

[Lord Risby (Con)]

My Lords, it is a pleasure to be a member of the International Agreements Committee, and I warmly congratulate the noble Lord, Lord Darroch, on his speech.

I begin my remarks by referring to our trade and investment exports, which in recent years have been supported in a transformed way. For the past eight years, I have been one of the Prime Minister’s trade envoys. It has been a dramatic change, not least of course the huge expansion of the facilities of UK Export Finance.

It is widely accepted that the UK-Japan agreement is not significantly different from the precedent of the EU-Japan agreement, and inevitably there will be caution in Japan pending the outcome of the Brexit talks, most particularly on trade and goods. But given that the only committee briefing I have participated in was on financial services, it is appropriate that I should confine my remarks to services and data. Last year, 56% of service exports to Japan were financial, so there is certainly further scope, and an agreement has potentially opened the door to that and, importantly, to further regulatory co-operation in financial services and digital trade.

We all know how often individual countries are most reluctant to embrace fully foreign banking and insurance activity. There is considerable professional admiration for our financial service structures. The CEPA, including our three pillars—HM Treasury, the Bank of England and the Financial Conduct Authority—sends a clear signal. It is now possible for our financial services to offer products on the same basis as Japanese companies, but that has to involve mutual trust. Although it is the intention that meetings will take place regularly, it will be done within a voluntary framework, not forced, with regulators eventually controlling the dialogue. I wonder whether my noble friend the Minister believes that this voluntary framework adequately sets out a mutually beneficial trajectory.

If we look at CEPA as the basepoint for future advances, during our time as members of the European Union, in my view we greatly benefited from mutual professional recognition. My understanding is that this matter will be explored further and is to be strongly encouraged. Again, my noble friend may wish to express a view on how we can take this matter forward.

What is gratifying is that both Japan and the United Kingdom instinctively favour open economies, but work needs to be done to address the challenges of digital e-commerce, given that half of services trade is now digital. This is a hugely sensitive area, not least to prevent money laundering and enforce the know-your-customer rule.

It is also clear that the matter of investment protection needs to be revisited; again, perhaps within a voluntary mutual context, but certainly that of a defined dispute resolution that may require additional powers.

Unfortunately, the view on trade matters of both countries is not widely shared internationally. However, I acknowledge that both Governments, in being committed to the free flow of data, are also committed to a legal framework that provides for the protection of personal information. This is certainly an area that is beset with potential concern and abuse, so it is good that CEPA addresses only data flows between the two countries directly, with onward transmission abroad disallowed. This is an understandable concern with regard to personal and medical data, but the two countries are of like minds, as indeed are New Zealand and Australia.

Thus, while it is perfectly true that CEPA largely mirrors the Japan-EU agreement, the architecture has been put in place for future digital advance. It is not a matter of controversy that higher levels of economic growth are forecast for countries broadly in the Pacific basin. I hope therefore that the successful conclusion of CEPA will open the way to our participation in the CPTPP in due course, not only for economic but for geostrategic reasons, bringing together countries that believe in open markets at a time when their value has been challenged, with negative consequences for world trade and prosperity.

I believe that the committee’s report clearly points to areas where further clarity and progress can be advanced.

Trade Bill

Lord Risby Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 8th September 2020 Lords Chamber

[Lord Risby (Con)]

My Lords, it gives me the greatest pleasure to welcome my noble friend Lord Grimstone to today’s proceedings, bringing as he does immense experience and a distinguished business career. He will certainly add greatly to the proceedings of your Lordships’ House.

The purpose of this Bill arises directly out of our departure from the European Union, but we debate this in the disturbing context of fissures that have developed in international trade, which are potentially very damaging and which all British Governments, over many years, have sought to heal while promoting free trade. Like my noble friend Lord Astor, I have been one of the Prime Minister’s trade envoys since the role was introduced. This is part of a genuine attempt to improve our export and investment performance, which is now professionally organised and focused on by the Department for International Trade.

This Bill offers continuity to our businesses and consumers and builds on our excellent bilateral relationships. There are two areas that I will refer to in particular. During the dreadful appearance of Covid-19, we witnessed some unacceptable practices by some other countries. This is why the role of the Trade Remedies Authority has special resonance.

Undercutting subsidies, hidden or otherwise, quite simply harms our domestic businesses. The Government should be commended for the speed at which the TRA is being assembled, and it is encouraging that a third of the staff are now in post, having completed the comprehensive technical training programme. Will my noble friend reassure the House that the Government will continue to prioritise skills development in this important area?

What we have also learned during the past few months is the indispensable and enhanced role of technology. I therefore greatly welcome that HMRC will be able to collect and share trade-related data with the Department for International Trade, leading in turn to information sharing across all government departments—this is a really welcome development. Securing business continuity and countering the strains in global supply chains must be at the heart of our pursuit of a successful and independent trade policy.

I add one thought in conclusion: as the noble Lord alluded to, the WTO needs to be re-energised. It is very important that it plays a central and powerful role in protecting and encouraging free trade. I hope, therefore, that somebody who is very committed to this and has the evidence to show it—namely, the right honourable Liam Fox—secures the role of director-general in the future.