Trade Bill

Baroness McIntosh of Pickering Excerpts

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

[Baroness McIntosh of Pickering (Con)]

My Lords, I will speak to Amendments 26 and 99, to which I have appended my name, and echo many of the concerns that have been expressed by previous speakers. I am delighted to have received a briefing from the Law Society of Scotland; as a non-practising advocate, I obviously heed what it says. It is an apolitical organisation that speaks for many of the practitioners in Scotland, and I would like to share with the Committee this afternoon some of its concerns, which have been echoed by previous speakers.

The society points out that the Scottish Government have highlighted a number of tensions between the devolved Administrations. We have just heard about the Welsh Assembly in an eloquent speech by the noble Lord, Lord Wigley, who spoke to Amendment 99. We also heard from the noble Lord, Lord Stevenson of Balmacara, when he moved Amendment 26. There is a very clear tension emerging between the devolved Administrations, Assemblies and Parliaments over the power reserved to the Government at Westminster, who are now negotiating trade agreements for the whole of the United Kingdom.

In the legislative consent memorandum lodged by the Scottish Government in the Scottish Parliament on 18 August this year, the Scottish Government recommended that Parliament agree to the Bill. But they pointed in particular to these amendments and Clause 2, which lies at the heart of these amendments, providing a power for both the UK and Scottish Ministers within devolved competence to make regulations to implement qualifying international trade agreements. I will ask the Minister to answer a very simple question, to go to avoiding this attention on this occasion. It is important that regulations are put in place in advance of the completion date of 31 December this year. Can the Minister confirm that these regulations will be in place and that there will be information-awareness campaigns for the general public, citizens and businesses, as well as professions in the UK, both north of the border and west of the border and at Westminster, so that the terms of these agreements and their implications are known?

For the reasons that the noble Lord, Lord Wigley, gave, it is extremely important to know that there will be a mechanism in the event that this tension, to which I referred earlier, leads to disagreements, and what that mechanism will be. It is also important that the common frameworks are made more public: it is not acceptable that they are currently shrouded in mystery. So I hope that my noble friend will take this opportunity to put a date on when these regulations will be in place, tell us what the dispute-resolution mechanism will be and confirm that there will be an information campaign north and south of the border in this regard.

[Baroness Suttie (LD) [V]]

My Lords, it is always a pleasure to follow the noble Lord, Lord Wigley, and the noble Baroness, Lady McIntosh, both of whom always speak with such passion and conviction, particularly on these matters. This group of amendments, including Amendments 61and 62, to which I have added my name, is about establishing the principle of the need for consultation and consent with the devolved authorities and legislatures, and about laying down some markers for how we can establish open and effective methods for dispute resolution in our unwritten constitution.

As the noble Lord, Lord Wigley, has said, more than 20 years on since the various devolution settlements were agreed, the stresses and strains of our uncodified system are in danger of being tested to breaking point as a result of Brexit. Future United Kingdom trade deals risk highlighting these stresses and strains yet further, which is why it is so important to test the Government’s responses to many of these issues as we debate these amendments this afternoon.

Twenty years ago, when the devolution settlements were being devised, there were fewer party-political stresses on the system, as Labour was in power—in coalition or otherwise—in Edinburgh, Cardiff and Westminster. Clearly, now that we have an SNP Government in Edinburgh, a Labour-led Administration in Wales and a re-established power-sharing Executive in Belfast, as well as a fairly nationalist Conservative Government in Westminster, our mechanisms of consent and trust are being tested to the limit.

I should perhaps declare an interest as a Scot with an Irish passport currently living in the county of Kent. Those of us who are not nationalists have a collective interest in ensuring that we find ways to make our future constitutional settlement and trading relationships work effectively throughout the whole United Kingdom. I therefore hope that the Minister agrees that providing the necessary information to the devolved legislatures to allow scrutiny of any future trade agreement—as set down in Amendment 62—is the very least that can be expected and is surely in everyone’s best interests. Providing the text at least two months before the agreement and inviting comment from the devolved legislatures would provide the kind of buy-in and involvement that will assist in developing coherence in policy-making across the United Kingdom.

We should remember that this should always be a two-way flow of information. The UK’s devolved legislatures are often in a stronger position to understand the impact of new trade deals on local businesses and communities. Obviously, this is particularly true in the case of Northern Ireland, where the impact on SMEs could be very significant, not least because of the complex supply lines. Does the Minister acknowledge that free trade agreements will have a direct impact on the effectiveness and scope of devolved policy-making and legislation? Does he also accept that consent mechanisms with the devolved Governments are vital to maintaining the coherence of our United Kingdom?

I will turn now to a very specific FTA: that of Japan. Can the Minister say to what degree the Northern Ireland Executive and Assembly were kept informed during the negotiations, given the very particular set of circumstances faced by Northern Ireland resulting from the Northern Ireland protocol? Does he accept the analysis of a Stormont official who said the week before last:

“Some Japanese goods sold in Britain as part of a new trade agreement may not be available in Northern Ireland due to the Brexit deal”?


Turning to the future role of the Joint Ministerial Committee—covered in Amendments 50 and 76—it should be noted in passing that, despite his new title of Minister for the Union, the Prime Minister has not yet presided over a plenary session of the JMC, as far as I am aware. The JMC has until now been a consultative rather than a decision-making body but, given the likely increase in tensions, surely it makes sense to increase both the frequency of meetings and their capacity for decision-making.

As Professor Nicola McEwen said in her evidence to the Lords Constitution Committee a couple of weeks ago, the JMC on EU negotiations is currently the best-functioning of the JMCs, but is likely to cease to exist at the end of transition period and, as yet, there are no clear indications of how it will be replaced. Can the Minister say whether there are plans to ensure that the JMC meets more frequently? What plans are there to replace the JMC on European negotiations from 1 January next year? Does the Minister agree that it is increasingly vital to have regular meetings of the JMC, so that we can have greater consultation and co-ordination? Can he also say whether thought has been given to establishing additional sub-committees within the JMC framework to discuss such issues as international trade and international relations?

No doubt the Minister will say in his reply that all sorts of assurances on consent and consultation have already been given, but, for those kinds of assurances to carry weight, there has to be a significant level of trust. Tragically, that trust has been eroded throughout the whole Brexit experience, which has led to the very real need for the amendments we are discussing, and the need to put mechanisms for both consultation and consent in the Bill.

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I hope that the Minister will take stock of this short debate and reflect on the fact that a three-year period, which could be extended, is more appropriate than five years. I will close on a reflection on the five-year period. It would mean that no Parliament which ratifies an agreement would then be able to take a view on that agreement within that same Parliament. I do not think that is appropriate. I think that towards the end of a Parliament it is a right judgment for that Parliament to consider. The reality of the five-year power is that no one Parliament would be able to discuss the agreement that it has ratified, how it is operating and whether it needs to be updated. A three-year power would be appropriate. I think that is one reason why the previous Minister agreed to make the changes. I hope that the Government will reflect on that and restore the three-year period, and I beg to move.

[Baroness McIntosh of Pickering (Con)]

In principle, I have some sympathy with the amendments. My concern goes to the heart of the ministerial discretion in appointing and reappointing members of the Trade Remedies Authority. I am attracted to a period of two terms of five years and I would be interested to know the thinking of the noble Lord, Lord Purvis, in reducing it to three years. A maximum of two terms of five years would seem more appropriate. In probing my noble friend’s thinking in this regard, I am obviously wedded to the idea of parliamentary scrutiny and would be interested to know whether he does not share my concern that there might be too much ministerial discretion in appointing and reappointing members, which goes to the heart of the independence of their terms of tenure. I will wind up by saying that I think that five years is more appropriate—unless I could understand better why three years and a maximum of six years was put forward on this occasion.

[Baroness Kramer (LD) [V]]

My Lords, I will be exceedingly brief. My noble friend Lord Purvis of Tweed has made the case and I am not able to better it. I just want to raise an underlying principle. I suspect that every Member of this House is very cautious of any power that enables the Government by regulation to change primary legislation of any kind. Where it is necessary to provide that power, there should generally be a principle that the time period is as short as possible and that power is as limited as possible. Otherwise, we begin to compromise the whole concept of primary legislation and the purpose and meaning of parliamentary legislation.

Three years is surely a perfectly adequate time to be able to make any implementing changes necessary as continuity agreements are negotiated and signed. The underlying principle is one that the House needs to pay attention to. Setting precedents allowing an entire Parliament to pass during which period powers are given to a Government to override primary legislation through regulation, even if it is in a constrained environment, is a principle that we must absolutely challenge.

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Even at the outset of the CRaG process in 2009, a distinction was made that European treaties, which have different processes, would be considered as different from others. In these amendments, we argue that CRaG is the baseline and that we should put building on it on a statutory basis so that there is proper accountability and scrutiny for Parliament for deep and comprehensive trading relationships going forward. I beg to move.

[Baroness McIntosh of Pickering (Con)]

I support Amendments 47 and 98, to which I have appended my name, in particular. I thank the noble Lord, Lord Purvis, for the clarity with which he introduced his amendment in this small group.

When we come to a later group, I will address the issue of what is lacking and make the case for why we need an international trade commission, but I will not rehearse those arguments now. Instead, in support of the arguments of the noble Lord, Lord Purvis, let me say that, under the current situation of CRaG and the 21 days, we will be in a substantially worse position than the one in which we have found ourselves in the past. Having been an MEP for some 10 years, I was in a position to look in detail at some of the agreements that were negotiated by the European Union on Britain’s behalf. I am sorry to put my noble friend the Minister in this position but it seems extraordinary that we will put ourselves in a weaker position than the one we enjoyed as part of the European Union when we are meant to be strengthening our position by negotiating these deals in our own right. I believe that this area has to be addressed.

Amendment 47 sets out the case for a post-ratification report and a timeframe within which it should be done. I think this is particularly important because I have looked at some of the figures that have been made available to us by both the Library of the House of Lords—I almost said “Library of the House of Commons”—and individual organisations such as the Food and Drink Federation. Food and drink is our greatest export, followed by—I am trying to think what it is called. In all three major industries, including cars and whatever we discussed in Committee yesterday—which will come back to me in a moment—all our exports to EU countries and overall have gone down substantially because of Covid.

The one that bucked the trend, interestingly, was with Norway. I understand informally from the noble Lord, Lord Purvis, that the rollover agreement has now been signed. That is good to know. Apparently, our exports to Norway went up incrementally in the last year, by some 45%. I would be interested to know what caused that. The situation is that, apart from Norway, we have suffered substantial falls in our exports. I will not repeat at length what was discussed earlier but, because of tariffs imposed on Scotch whisky, we have had a big hit on sales of Scotch whisky to the US. Therefore, I believe there is a strong argument for post-ratification support, as set out in Amendment 47. I would like a good reason from the Minister as to why that should not be the case. It goes to the heart of the case that the noble Lord, Lord Purvis, is making for the whole group of amendments on why we need to strengthen parliamentary approval of agreements and initial scrutiny of them before they come into effect.

Amendment 98 is in the name of the noble Lord, Lord Stevenson, and I have appended my name. It proposes that powers in the Bill would not come into effect without a parliamentary vote on either anEU-UK free trade agreement or ending the transition period with no deal. I realise that we are looking at continuity agreements and I cannot see why that should not be the case with continuity agreements as well. He neatly sets out why there should be further parliamentary scrutiny and a vote before a future trade agreement comes into effect.

I will look at one rollover agreement, on which the noble Lord, Lord Purvis, secured a separate debate in the last Parliament, and that was the agreement with the Faroe Islands. We export the small amount of £98 million-worth of goods to the Faroe Islands, but we import £200 million-worth, mostly of fish. That is again damaging, not just to the Scottish economy but to the rest of the UK where fish is produced. So there are a number of reasons why we as parliamentarians need to keep an eye on the trade flow with these countries. If we are not given the chance to—and I honestly do not believe that the 21 days of the CRaG procedure is enough—in my view, the Minister should come up with a very good reason why there should be less parliamentary approval than that which we enjoyed in the past. I declare an interest, in that regard, as a former MEP.

[Baroness Finlay of Llandaff (CB)]

My Lords, I am most grateful to the noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady McIntosh of Pickering, for so eloquently laying out the issues. In some ways, I hesitate to come in after their vast experience. But, as so often at this stage of proceedings, my purpose in supporting this amendment is not so much in the expectation that every word of it will be enacted—as we are now in Committee—but to make a very important point that I hope the Government will reflect on and address.

We are one-fifth of the way through this 21st century, and on the eve of an era where, outside the EU, we will be more reliant than ever on negotiating trade agreements. Trade policy is simply too important to be determined solely by Ministers wrapping themselves in some cloak of royal prerogative. As the Supreme Court reminded us, prerogative powers should not be used to curtail the rights of Parliament, and in particular the elected House, to hold the Government to account.

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[Baroness Northover (LD) [V]]

My Lords, I am pleased to speak in support of Amendments 39 and 97 in the names of my noble friend Lord Purvis of Tweed and others. Clearly, any trade deals that we agree must be in keeping with our international commitment to the sustainable development goals. We keep our agreements, do we not?

The MDGs agreed in 2000 pledged to halve extreme poverty by 2015. We know that economic development and trade played a major part in that being achieved. The SDGs were put in place in 2015, building on the previous period, and pledged to eliminate extreme poverty by 2030, at the same time leaving no one behind—so you were not dealing with averages. As my noble friend Lord Chidgey has just pointed out, the SDGs recognise that ending poverty must go along with human development through improving health and education, reducing inequality and increasing economic participation, while tackling climate change.

My noble friend Lady Sheehan pointed out that we in the UK led on this. Indeed, Andrew Mitchell, as Secretary of State, worked very hard to ensure that Prime Minister David Cameron led on this internationally. Much of the framing of the SDGs was carried out by DfID, in particular by one of its directors. I had the privilege to be a DfID Minister in the coalition during this period, and was the Minister in the Lords when my noble friend Lord Purvis took through the 0.7% Bill as the last piece of legislation by the coalition.

There have been long years of engagement by the EU on trade agreements with developing countries. There was an important shift in the realisation of how the EU, as a major economic power and the biggest aid giver in the world, could either damage the poorest around the world or assist them. Major engagement now goes into seeking to benefit developing countries and if we are to have continuity, we have to have continuity here too.

As we seek to agree trade deals with such countries, the UK must address the SDGs too. They apply in the United Kingdom, as the noble Baroness, Lady Bennett, has pointed out, as well as internationally. We know that this is right, and that it is in our interests. Can the Minister say, for example, which African countries have yet to agree rollover arrangements and what the sticking points are? What happens if these are not agreed by the end of this year? Will the Government guarantee existing market access for developing countries and undertake thorough and timely assessments of the impact of any changes, looking at this through a development lens?

The Government have said that any trade deals with developing countries will be in keeping with our commitments to the SDGs. I expect the Minister to reiterate this. The safest and easiest thing to do would therefore be to put this commitment in the Bill. I look forward to hearing what the Minister says.

[Baroness McIntosh of Pickering (Con)]

My Lords, I am grateful to the noble Lord, Lord Purvis, for giving me the opportunity to press the Minister on a couple of issues in the context of these amendments. Amendment 39, which relates to the sustainable development goals, is presumably a bit like motherhood and apple pie—something we would all wish to sign up to. Equally, Amendment 97, which calls on the Minister

“to report annually on the impact of trade agreements to which the UK is party on the world’s least developed countries”

will strike a chord with the Minister—my noble friend Lord Younger—regarding his remarks to me on day two of Committee that we want to avoid the unintended consequences of free trade agreements with these countries.

My specific question follows on from the remarks of the noble Baroness, Lady Sheehan, who expressed her wish to have expedited rollover agreements with African countries. I would like to press my noble friend on this. This seems bizarre. The United Kingdom was at the forefront, since so many of our Commonwealth countries were involved, in negotiating agreements with African, Caribbean and Pacific countries. These agreements, I understand, have now been rolled over into—I forget the exact term—European partnership agreements. Will my noble friend take this opportunity to set out which ones have been rolled over, what the timetable is, and why we seem to be dragging our feet on them when it surely must be a political priority, given our historic relationship with so many of these countries?

[The Lord Bishop of Blackburn]

My Lords, new to the work of the Committee, I am impressed by your Lordships’ stamina during this long, five-hour session, so I will be brief, as before. I am grateful to the noble Lord, Lord Purvis, for proposing Amendments 39 and 97. It must be obvious to any with eyes to see that this planet and the environment are struggling to cope with the impact of our poor stewardship of their natural resources—the beautiful natural world that we, too easily, have taken for granted and abused. Whether it comes from the dulcet tones of David Attenborough, the announcement of the Earthshot Prize with Prince William yesterday or the sight of the damage that plastic waste is doing to so many species in our oceans, does not matter. What counts is our response.

I start by echoing the words of the most reverend Primate the Archbishop of Canterbury, who said that:

“Reducing the causes of climate change is essential to the life of faith.”


It is the way in which we express love and concern for our neighbours. Despite the overwhelming contribution of many so-called developed countries to try to hold back the tide of climate change, less-developed countries will lose most from the increases of global warming, which the Anglican Church feels keenly, because 90% of our communion is from the global south. The sustainable development goals of 2015 pursue a bold and ambitious agenda to tackle poverty and provide a sustainable future for the benefit of all people, wherever they live. It is a moral duty not to abandon those who are suffering and will suffer from the influence, such as ourselves, that we may bring to bear on others elsewhere. Sustainable development goals are a matter of concern for the other. Trade with the UK is more than a simple monetary exchange enriching individuals, organisations and businesses; it is a moral co-operation for a brighter future for all.

Passing these amendments would be a statement and sign of the Committee’s commitment to the most vulnerable in the world. It would express our intent and priority to look after others before ourselves, and will strengthen our relationship with partners around the globe. I hope these amendments will be accepted and find their place in stating the way that we, as a nation, choose to treat others and the world that God has entrusted to our care.

Motion