Trade Bill

Baroness Fairhead Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 8th October 2020 Grand Committee

[The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)]

My Lords, the noble Lord, Lord McNally, has withdrawn, so I call the noble Baroness, Lady Fairhead.

[Baroness Fairhead (Con)]

My Lords, before I turn to the amendments, I will begin by welcoming my noble friend the Minister to the House most warmly, as this is the first time that I have spoken on the Trade Bill since he assumed his role. As I have been participating both remotely and in person, I congratulate him not only on his clear grip of the subject matter but on the assuredness with which he has steered the Bill through. I am particularly struck by the effective working relationships that he appears to have developed with my noble friends and with Members across the House. I have little doubt that, combined with his experience and superb track record, this will enable him to be a very effective and enormously respected Member of this House.

I am delighted that the Trade Bill has returned to your Lordships’ House, not because we shed much blood, sweat and tears over its previous incarceration—although we did—but because it is an important Bill for the UK, her businesses and her people. It creates important tools that we will need for the UK to step into the future as a strong, independent and high-integrity trading partner. I am also happy that it remains, in the words of my noble friend the Minister, all about continuity and certainty—two elements that businesses large and small, up and down the country, really value.

However, that does not mean that the Bill cannot be made even better. As I have said on the Floor of the House and as the noble Lord, Lord Stevenson of Balmacara, rightly recalled last week, it is my view that

“no legislation passes the scrutiny of this House without being improved”.—[Official Report, 6/3/19; col. 615.]

That is why I want to speak to Amendments 57 and 63 in particular, and to address the issues of transparency, engagement and parliamentary scrutiny. I have one question and one request for the Minister, both of which I will come to.

I want to be clear that I am not speaking about transparency, engagement and scrutiny of continuity trade agreements that are expected to have no significant changes. I agree with my noble friend the Minister that they have already undergone rigorous scrutiny in both the EU and the UK, and I am content that the Government will continue to publish parliamentary reports for the remainder of such agreements that are transitioning. Further, I note that any secondary legislation required to implement these agreements will be subject to the affirmative procedure, requiring debates in both Houses. However, it is here that I have my question. Can my noble friend confirm that this Bill’s scrutiny provisions apply exclusively to continuity trade agreements and cannot be used for future trade agreements, for it strikes me that the wording could be construed as so doing?

Turning to the future free trade agreements, a number of your Lordships have highlighted the importance and extensive reach of modern FTAs. They cover areas far beyond trade alone and include, among others, geopolitical commitments and environmental, food and other standards. Your Lordships have also highlighted the transparency and genuine engagement permitted by the previous scrutiny process to bodies such as civil groups, industry bodies, trade unions and many more, not least the devolved nations. Let us be clear: transparency with no ability to engage is a much weaker proposition.

Finally, a number of your Lordships, including my noble friend Lord Lilley, the noble Lords, Lord Kerr of Kinlochard and Lord Purvis of Tweed, and the noble Baroness, Lady Kramer, have previously highlighted—as did my noble friend Lord Lansley today—the benefit of having a rigorous scrutiny process which, properly structured, can have the benefit of strengthening, not weakening, one’s negotiating hand. To be clear, I am not suggesting any change to the fundamental constitutional principle that underpins the negotiation of all international treaties, including FTAs: that the making and amending of, and withdrawing from, such treaties is a royal prerogative function.

However, taking all this into account, I continue to believe that further detail and improvement is required in both transparency and engagement with wider audiences and enhanced parliamentary scrutiny. I shall direct my comments to two main amendments: Amendment 57 in the names of the noble Lord, Lord Stevenson of Balmacara, and the noble Baroness, Lady Finlay of Llandaff, and Amendment 63 in the names of my noble friend Lord Lansley and the noble Baroness, Lady Jones of Moulsecoomb, as they aim to address these issues. They have been laid out elegantly by those who have put them forward. On Amendment 63, I agree strongly with words of the noble and learned Lord, Lord Goldsmith, that the ability to have a debate, if an issue has been raised on any of the future FTAs, is important. On Amendment 57, I support some, but not all, of its provisions. I very strongly support the need to consult. I am not fully seized by the concept of a mandate rather than objectives, but I think there are elements in Amendment 57 that should be considered and pondered by the Government.

Let me turn to transparency and engagement. Clearly, transparency needs to respect the commercial, confidential elements of negotiations. That said, interested parties across the UK need to have sufficient information in a timely fashion about the areas of discussion, the ability to submit their views and objectives and clear mechanisms for feeding in and engaging. The Government have established a number of bodies to enable this to happen: the Strategic Trade Advisory Group and 11 sector-based trade advisory groups. This is a terrific start, but I encourage the Government to ensure that those bodies are kept under review, to ensure that the appropriate, rich level of engagement is achieved to enable businesses to contribute.

Turning to parliamentary scrutiny, I realise that the Command Paper of February 2019 is not binding on this Government, but I am happy to observe that it has been complied with in practice. It is an excellent base from which to build. It required the previous Government to produce an outline approach to negotiations, including its objectives, and it had to be accompanied by a detailed economic analysis. It also committed the Government to publishing progress reports after each negotiating round, and annual trade reports across all live negotiations.