Free Trade Agreement: Iceland, Liechtenstein and Norway

Baroness McIntosh of Pickering Excerpts

Thursday 14th October 2021 Lords Chamber

The Minister has been patient and meticulous in replying to all these debates. I hope he replies to as many of the questions I have posed as possible when he responds to this debate, and the rest in writing thereafter.

[Baroness McIntosh of Pickering (Con)]

I am delighted to congratulate the noble Earl on securing the debate before us and on the work of his committee as well. I add my congratulations to my noble friend the Minister for negotiating this free trade deal. I have three short questions, if I may. All the other rollover agreements that we have looked at—I am thinking in particular of the agreement with the Faroe Islands—have been very asymmetrical in nature and I am sure it was a source of some concern to, in particular, the Scottish fishermen to see that we were probably taking three times more value of fish from the Faroe Islands than we were exporting. My first question is against the background that I welcome the comments of the noble Earl, Lord Kinnoull, that it will bring benefits both to Yorkshire and the Humber and to Scotland. I press my noble friend, in replying to this short debate, to confirm that this free trade agreement is more symmetrical, and that we are in more of an equivalent balance as equal partners with the three other countries which are party to it, particularly as far as the value of the fishing element is concerned.

I then turn briefly to the sanitary and phytosanitary measures, which I welcome as we seem to have reached an agreement with these three countries that enables the United Kingdom, Norway and Iceland to trade in plant and animal products which are from pest-free and disease-free areas. Paragraph 30 of the summary on the agreement says:

“The agreement allows the Parties to reflect changes that might arise as a result of any future United Kingdom-EU sanitary agreement dealing with sanitary measures on which Norway and Iceland are harmonised with the EU.”


If we are already harmonised with Norway and Iceland, surely then by definition we would automatically be harmonised with the EU, so I would welcome clarification on that point from my noble friend.

My last point echoes that put forward by the noble Baroness, Lady Ludford, regarding recognition of professional qualifications. My noble friend knows that this is a subject close to my heart—in the past I had the good fortune to benefit, being able to practise European law in Brussels. Paragraph 83 of the summary states that:

“Legislation may be required to deliver the commitments on the recognition of professional qualifications made in the Agreement”,


and it goes on to refer to the Bill introduced in the House of Lords in May. I was grateful to my noble friend for the meeting we had, remotely, with himself and the Bill team in this regard and with the Law Society of Scotland and the Faculty of Advocates. Could he specify today what the timetable of that Bill will be? That is particularly appropriate as it is set out as being pertinent to the free trade agreement before us this afternoon. I welcome this, particularly as it is the first of the future trade agreements going forward.

[Lord Purvis of Tweed (LD)]

My Lords, it is a pleasure, as always, to follow the noble Baroness and to hear the very practical questions she put. I also commend the chairman of the committee that I had the pleasure of serving on, and the work of the staff who, along with those of the International Agreements Committee, do this House a great service by poring through all the details of the agreements and their accompanying documents and allowing us to have informed debates in this Chamber. In many respects, regrettably, by the nature of our process, as the noble Earl, Lord Kinnoull, outlined, these are retrospective—in many cases, we look at agreements that have already been signed and, as my noble friend Lady Ludford indicated, we look at the small print. Indeed, it is suspicious when entire documents are made of small print rather than just the footnotes, which, as the Minister knows, I am very keen on studying in detail.

I do not mean to offend or insult the noble Lord, Lord Hannay, but it is with great respect for his experience that I say that he negotiated a free trade agreement before I was born, so it is some surprise to me that the Government, in promoting this agreement, as with others, have highlighted only what they consider to be great positives. But as he clearly and forensically indicated, and as the noble Earl, Lord Kinnoull, indicated, in many respects this is an agreement of damage limitation.

After the agreement with the European Union, this is the second agreement with major trading partners which erects new barriers and burdens, rather than reduces them, for goods and services. The Minister does not necessarily have to take my word for it, but I hope that he takes the Government’s word for it, because I accessed today from the UK-Norway page on GOV.UK the following:

“Due to the interdependencies with EU laws and systems, the services and investment provisions of the existing EEA Agreement have not been transitioned. This means the agreement does not cover trade in services and investment. The UK has put in place some unilateral measures to ensure, where possible, business continuity in services and investment trade between the UK, Iceland and Norway but you may face additional steps or trade barriers if you provide services in these countries.”


The question before us is whether, when we analyse what these new barriers are, there are ways of mitigating against them.

This would be particularly important in Scotland, where, as the noble Baroness indicated, service sector trade between the north-east of Scotland—which I know the Minister knows extremely well—and Norway is fully integrated and very deep, with both trade co-operation and competition. The lack of a services agreement is of very significant consequence. As my noble friend indicated, there is also the impact on movement of people.

When Norway and the EFTA countries required to have constant debate and discussion with the EU, the parliamentary assembly for EFTA and the EU was of great help. Can the Minister indicate what the Government expect to be the Parliament-to-Parliament relationship between us and the three countries over this agreement? This point was raised by the noble Lord, Lord Hannay, and the chair of the committee with regard to the operation of the agreement. It is particularly acute given that, for Northern Ireland, there is a significant democratic deficit in the ongoing relationship, and because these countries are part, in effect, of the single market. With goods coming to the UK which will then go to Northern Ireland for trade, operating under single market rules, what say is given to Northern Ireland representatives and Members of this Parliament in overseeing this agreement? Or do the Government simply believe that it is a Government-to-Government trade agreement?

On people, can the Minister confirm or clarify the current situation for UK nationals who had been providing services in Norway who now require to be considered resident in Norway and receive residence permits to continue their work? This is just one of the new barriers and burdens ahead of them. New permits are required for British citizens and their family members if they are operating, and they need to apply by the end of this calendar year. Can the Minister confirm that all UK nationals are in this position and that there will be no discontinuity of them providing their services in the new regime if they do not have a valid residence permit? As my noble friend indicated, this is now under mode 4, the greatly reduced 90 days in 180 in Norway and 90 days in a year in Iceland. For those operating in deep sea or offshore engineering—who have to have, almost by definition of the industrial relationships, long-term placements and long-term work—have the Government indicated that there will be any disruption to the North Sea oil and gas industry relationship and deep sea and offshore engineering?

The committee that I serve on has just taken worrying evidence from musicians and those in the cultural sector, the impact on whom we are now well aware of. When it comes to those who will be touring and working within the creative industries, the Government trumpeted in their press release just on Monday in respect of visa-free short-term touring:

“Our recent trade deal with the three EFTA countries was based on the same offer”—


as that made to the EU—

“and shows it is workable.”