Trade Bill

Viscount Younger of Leckie Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Tuesday 15th December 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Cormack, who often dominates our proceedings from his position on the Conservative Benches—even when he is not physically present, he still has a lot to contribute. He put his finger on a number of important points in this short debate on the mobility sector.

The noble Baroness, Lady Noakes, as she is often wont to do, accused everyone who spoke in support of this amendment of trying to relive the Brexit debate. I hope that, when she reads the debate properly in Hansard and reflects on what has been said in response to her already, she will realise that that is way off course. My noble friend Lord Foulkes put it in his traditional bullish way, but he had a point. We are looking to a future that is not the same as the past, but a future with a significant disjuncture—the leaving of the EU—and this is here so that we can think again about how our future economic prosperity can be lodged in the things that make Britain a very successful economy, when we get it all right.

In introducing the amendment, the noble Lord, Lord Fox, made a number of key points in support of his argument. The best was about how this suggestion for mobility must sit in the context of our services industries, which he and others pointed out are the majority part of our economy. He also said—it is very important to bear this in mind—that most trade in physical goods these days has a services component. We have heard examples in recent debates about Rolls-Royce; although it supplies bits of parts and elements for aircraft and other machinery, it mainly makes its money from the service contracts accompanying them. The key to delivering that is flexibility so that, as the noble Lord, Lord Fox, put it, people are happy with the product they buy. There are cultural and social benefits as well.

The noble Earl, Lord Clancarty, and the noble Baroness, Lady Bull, made very powerful arguments in support of our creative economy. I liked the phrase used by the noble Baroness, Lady Bull—the “human-gathering industries”. It is the first time I have heard that, but it may be more common in other debates and discussions. Our ability to create economic activity around the interaction of people clearly depends on people being able to move around and join together. Hospitality and other service industries rely on that, and it is very important that we get that right; it is what we do best in this country. We make most of the money that keeps our services going through that, and we must make sure that we have the right circumstances for it.

The narrow point about the cultural industries was, of course, made strongly by the noble Earl, Lord Clancarty. He has a long and distinguished record of saying important things about the creative industries in your Lordships’ House, and we should listen to him. It is a key sector of our economy and, of course, it depends on people travelling to perform or create in a way that is not true of many other traditional industries, but that is no reason to discriminate against it—indeed, we should do the opposite.

The old system we used to operate under, successfully, for many years has gone. We have to think about the new one, and we should not erect barriers to that. I am sure that the Minister will deal in detail with the points made when he responds, but will he answer a particular question that I have? It is noticeable that the free trade agreements being negotiated by his department, such as the recently signed Japanese agreement, often have a mobility component. Can he confirm that that is likely to be a feature of many of the free trade agreements going forward and, if so, in what way will that assist the noble Lord, Lord Fox, and those who have supported him in this debate?

[Viscount Younger of Leckie (Con)]

My Lords, I start by giving my sincere thanks on behalf of the House to the technical staff for—how should I put it?—rebooting the House successfully. We remain indebted to them for their essential, continuing support.

Turning to Amendment 13, tabled by the noble Lord, Lord Fox, as I outlined in Committee, the Government have made it clear that our priority is to ensure that we restore our economic and political independence on 1 January 2021, as my noble friend Lady Noakes iterated. The rather depressing “new normal” that the noble Lord, Lord Wigley, outlined plays no part in our vision. I say to the noble Lord, Lord Foulkes—I think I have pronounced his name correctly—that we do need to move away from talking about Brexiteers and remainers. As the noble Lord, Lord Stevenson, said himself, we should look forward, because we want a relationship with the EU which is based on friendly co-operation between sovereign equals and centred on free trade.

We know that it is important for businesses to be able to send their employees to deliver services on a temporary basis. This was reflected in the debate in Committee, where several noble Lords noted the importance of these arrangements for service industries, which are a crucial part of the UK economy, as the noble Earl, Lord Clancarty, emphasised. I would like to pick up on his remarks, as well as those of the noble Baroness, Lady Bull. They are both absolutely right: there is a lot of talk, correctly, about the creative industries and, in particular, the importance of orchestras going on tour. This includes EU orchestras coming to the UK and touring here, and, equally, UK orchestras touring around the EU. It is very important indeed that that should continue, as well as in respect of touring companies. As I said in Committee, we are open to negotiating on the EU reciprocal arrangements that would and should allow this to happen, building on the provisions that are standard in trade agreements. By the way, this should include allowing lawyers practising both in the UK and the EU to have reciprocal arrangements, an issue raised by my noble friend Lady McIntosh.

A reciprocal agreement based on best precedent will mean that, on a short-term basis, UK citizens will be able to undertake some business activities in the EU without a work permit. This would also apply to EU citizens making business visits to the UK. Task Force Europe, led by Lord Frost, is negotiating the precise details, including the range of activities, the documentation needed and the time limit. I was interested in the good example given by the noble Lord, Lord Fox, of German technicians needing to come to the UK, often urgently, to undertake work over here. I suspect that this may come from his experience in the aerospace industry. As he will know, the commitments on mode 4, which sets out the terms under which businesspersons can move between trading partners, are a feature of every free trade agreement that covers services.

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[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, this has been a very good debate, and we have ranged far and wide across the issues raised originally by the noble Lord, Lord Oates, and picked up later by the noble Baronesses, Lady Boycott and Lady Bennett, with their amendment. The noble Lord, Lord Oates, makes good points about future trade agreements needing to tie us to the net-zero carbon and other environmental standards that we have and points out the need for consistency of government policy across all the areas involved, not least trade, to achieve that. We need to think very carefully about how our new trading agreements, which the Government are very keen to see signed, and which we support, will use the climate change focus as they move forward.

When the Minister responds, he will undoubtedly say that we have very high standards and will never negotiate them away, but he must admit that the Agriculture Act 2020 has a non-regression clause covering environmental issues. So we look to him to reassure us that our standards are high and will not be diminished, but also to say why he is not prepared to see these broader issues, such as the environment and others, included in the Bill, because that seems to be how the Government are thinking with this policy.

Other noble Lords who have spoken in the debate have argued that we should do more than simply respect our own standards in the trade agreements and deals that we want to do. The noble Baroness, Lady Boycott, was very strong on the need to live up to our role as a leading advocate of decarbonisation and to lead the way for others. Again, her argument was that putting that in the Bill would be key, since it would show the world not only that we have the arguments and are practising what we preach but that we have a proselytising role to play in relation to the wider world.

It was good to hear the noble Earl, Lord Sandwich, and the noble Lord, Lord Curry, supporting points that have been made in this debate—particularly the view of the noble Earl that there are very few doubters left in Parliament. He may be wrong about that; I think there are one or two scurrying around. He also points out that the department has a bit more to do before it is walking the walk. We should think about that. He made a good point about the recent agreement with Japan and the lack of alternative energy proposals within it. The noble Lord, Lord Curry, also made a good point about how not just farmers, whom he mentioned, but the wider public want the Government to reach further on this to find zero-carbon targets in all that they do—and that of course applies to imports.

I look forward to hearing the noble Lord’s response. He will understand that we think we will come back to this, perhaps not in the form of this amendment but on other related issues about non-regression of standards, as we progress through the Bill.

[Viscount Younger of Leckie (Con)]

My Lords, Amendment 14 in the names of the noble Lords, Lord Oates and Lord Purvis, alongside the noble Baroness, Lady Boycott, seeks to prevent the Government from signing international trade agreements or laying an international trade agreement under CRaG, unless they confirm to Parliament that the agreements are compliant with domestic and international environmental obligations.

I assure noble Lords that we remain firmly committed to upholding high environmental standards. We understand and share the public’s concern about protecting our natural environment. Having been lucky enough to visit both Antarctica and the high Arctic in the last five years, I can relate to the remarks of the noble Baroness, Lady Boycott, who cited Sir David Attenborough’s deep concerns about our planet. She is right and he is right. I have seen climate change for myself and it is real.

I take great pride in stating again that none of the 28 agreements signed with 57 countries has diluted standards in environmental protections. We have voluntarily published parliamentary reports for your Lordships’ reference, alongside every continuity agreement, which provide evidence of our commitment to environmental protection and sustainability. To be helpful to the noble Lord, Lord Curry, over 130 hours of debate on the Bill and its 2017-19 predecessor, no Peer or Member of the other place has been able to identify a single example of any of our continuity agreements undermining our domestic or international environmental obligations. I do not believe that any example was provided in this debate either. My noble friend Lord Trenchard made this point in a powerful speech, and I believe he is right.

The Government have been very clear that any future trade agreements must uphold high standards in the protection of the environment. We will not compromise on this. I remind your Lordships that the EU (Withdrawal) Act already provides legislative underpinning by transferring the EU’s rigorous standards on environmental protection and sustainability on to the UK statute book in full. Our high regulatory standards are not dependent on EU membership.

The remarks of my noble friends Lady McIntosh and Lord Trenchard hinted at our approach. We are using trade policy to promote the clean growth and climate change objectives of Her Majesty’s Government, helping to deliver the full economic benefit of the UK’s shift to a low-carbon economy. The energy White Paper, published just this week, underlines our ambition in this space, and your Lordships will be aware that a Statement will be repeated in the House tomorrow on this very subject.

The UK has often been a leader in the development of environmental standards, and we go significantly further than our trading partners. The UK was the first country in the world to introduce legally binding greenhouse gas emission-reduction targets through the Climate Change Act 2008. We were also the first major economy in the world to set a legally binding target to achieve net-zero greenhouse gas emissions across the economy by 2050. In our outline approaches to free trade agreements with the US, Japan, New Zealand and Australia, we have committed to securing provisions that will help trade in low-carbon goods and services, supporting R&D and innovation in sectors such as offshore wind. My noble friend Lord Sheikh cited the importance of this sector in his remarks.

The UK is already a global leader in offshore wind, with the largest installed capacity in the world. The UK aims to produce enough offshore wind to power every home, quadrupling how much we produce to 40 gigawatts by 2030. The UK could also establish a first-mover opportunity to develop advanced operations and maintenance services in wind farm decommissioning, which could become a £53 billion market by 2050.

Additionally, as many noble Lords are already aware, on 18 November, the Prime Minister—who by the way is taking a lead—set out his 10-point plan for a green industrial revolution. Covering clean energy, transport, nature and innovative technologies, the Prime Minister’s blueprint will allow the UK to forge ahead with eradicating its contribution to climate change by 2050. All of this will come in the year that the UK chairs the COP 26 summit in Glasgow, as the noble Baroness, Lady Bennett, mentioned.

These are not the actions of a Government intent on reducing environmental standards—far from it. This is one of the most ambitious climate agendas in the world. I wholly disagree with the noble Lord, Lord Oates, who said that we just offer warm words on climate change and no action plans. He could not be further from the truth on this. I was particularly pleased to see that the former Vice-President Al Gore, either today or yesterday, praised the UK’s leadership in banning the sale of petrol and diesel vehicles by 2030.

I remind your Lordships that we are seeking only to replicate EU trade agreements to which we already enjoy access. If this amendment applied to our continuity programme, it would result in up to 40 ministerial Statements, all of which would be nearly identical, confirming that we are replicating the status quo.

Amendment 21 is in the names of the noble Baronesses, Lady Bennett and Lady Boycott. As I have explained, our continuity agreements, the implementation of which is provided for by the Bill, are fully aligned with environmental obligations such as the UN sustainable development goals and the Paris climate change conference, and will remain so, as the Bill seeks to replicate existing EU agreements. It is indeed good news that President-elect Biden has iterated his support for the Paris Agreement, as the noble Lord, Lord Foulkes, remarked.

ClientEarth, the Trade Justice Movement, the NFU, the CBI and others all agree with the objectives of this work. As set out in the 25-year environment plan, our ambition is to be the first generation to leave the natural environment in a better state than we found it. As I reassured your Lordships not long ago, our continuity agreements are in full compliance with every other international convention named in the amendment, whether it was passed at the UN level or through other multilateral fora.

This amendment would also require the publication of an environmental report for every continuity agreement that we signed, and then additional update reports to be tabled every 12 months. This would result in over 100 reports over the lifespan of this Parliament, for a set of continuity agreements that simply replicate existing FTAs to which we are already a party. Surely noble Lords will agree that this is neither necessary nor proportionate. I listened carefully to the remarks of the noble Baroness, Lady Hayman, but I will have to write to my noble friend Lord Caithness, who asked questions about what the reports were, where they were coming from and whether they would report on health and the environment. I pledge to do that.

We already publish a parliamentary report alongside each agreement laid under CRaG, setting out our approach to delivering continuity, and will continue to do so for all remaining continuity agreements that we sign. These reports confirm our replication of sustainability chapters in EU agreements.

The Government have always been clear that we are wholly committed to the preservation and improvement of the environment. The continuity agreements we have signed thus far maintain our commitment to vigorously defending and upholding environmental standards. As such, I ask the noble Lord and noble Baroness not to press their amendments.

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[The Deputy Speaker (Baroness Pitkeathley) (Lab)]

My Lords, the next business on the Order Paper is the repeat of a Statement on Covid-19.

[Viscount Younger of Leckie (Con)]

My Lords, therefore, with the leave the House, I beg to move that the repeat of the Statement on Covid-19 be postponed until after consideration of the United Kingdom Internal Market Bill.

Motion agreed.