Trade Bill

Baroness Noakes Excerpts

Committee stage
Tuesday 13th October 2020 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, I agree with what the noble Lord, Lord Grimstone, has said on a number of occasions: trade agreements mean little if businesses cannot operationalise them and use them to export more and import better. We on these Benches agree: we believe that the UK should be in a position for prosperity if we can have the right trading relationships around the world. To do that, we need to know what kind of barriers exist, what levels of bureaucracy have been put in place and how the Government are supporting businesses to overcome them.

Paragraph 21 of the political declaration attached to the withdrawal agreement with the EU says that,

“the Parties envisage comprehensive arrangements that will create a free trade area, combining deep regulatory and customs cooperation”.

Paragraph 22 goes on to envisage “ambitious customs arrangements”. Our motor industry, held up by the Government and others as a success story—rightly so—has called repeatedly for full implementation of the Union’s customs code and for the UK to take a different approach from the one that it has so far in ensuring that businesses have as little bureaucracy and as few barriers to trade with the European Union as possible. The SMMT, representing the industry, brings to stark attention, in its January briefing, what we face at the start of 2021:

“Basing the new UK/EU trading relationships on the provisions permissible in a free trade agreement will significantly change the administrative processes related to the movement of goods between the UK and the EU. There is a risk that the trade agreement between the UK and the EU results in increased friction at the border. Delays to the arrival of components at manufacturing plants are measured in minutes. Every minute of delay could cost approximately £50,000 in gross value added to the industry, totalling over £70 million per day. For automotive manufacturers, border delays are unacceptably disruptive, and if the sector in the UK is to remain competitive, these must be avoided.”


Frictionless trade had been the mantra, we recognise that, but now it looks as if we are going to be having it on truly Newtonian levels. The Government have, however, not chosen to carry out impact assessments on their border operating model, on the new measures to be put in place, or indeed on the costs to businesses that are going to be exporting and importing. Instead, they have chosen some business estimates of costs and ignored others.

Officials, not Ministers, confirmed that the Government’s most recent estimate on the likely necessary bureaucracy at our border ports, first published by HMRC in December 2018 and confirmed by the Government, is that there would be an additional 215 million customs declaration forms for businesses importing and exporting goods. That would apply regardless of whether Britain and the EU conclude a trade deal this year with the aim of removing all tariffs and quotas, so that is likely to happen. Can the Minister confirm that that is the latest estimate and tell us whether the Government have asked HMRC to update any of the cost estimates in light of the publication of the new border operating model, and whether that is the basis on which we should go forward? If it is then, although we were told that there would likely be a net £9 billion saving from leaving the European Union, there would also be a £7 billion cost to exporters and £7 billion to importers annually, and an extra £1 billion at least for cost of preparation plus commitments for ongoing costs. But there is no impact assessment on the business burden itself.

I do not wish to relitigate any of the arguments about European Union membership—and I knew that would get some smiles from the Benches opposite, but I genuinely do not—but the question is not whether we go back; it is about how many barriers there are for us to go forward. These are legitimate questions, because on top of this, George Eustice, the Environment Secretary, told MPs last Tuesday that it was estimated that up to 300,000 export health certificates would be required from 1 January next year for agricultural goods—a five-fold increase on current levels. There is a genuine concern about the burden on rural businesses from the processing costs for official veterinarians to carry this out—if they are actually available. Do the Government have contingency arrangements for the turn of the year if there are difficulties in securing these certifications?

As our amendment relates also to burdens for Northern Ireland—and there will be ample opportunity to debate the internal market legislation that is coming—I want to refer to one element of the Northern Ireland trading relationship that has been highlighted recently by the Food and Drink Federation. The federation has said that, regardless of the protocol being implemented in full and regardless of the internal market provisions—wherever they might be in due course on the customs process—there are likely to be costs on goods travelling into Northern Ireland that must comply with EU rules governing customs, VAT, plant and animal hygiene, and product labelling. This is linked with 1.5 million tonnes of food and drink travelling between Great Britain and Northern Ireland each year. The Government have indicated their willingness to provide some funding for businesses from Northern Ireland to offset some of the costs for this, but can the Minister explain to us what the current level is?

This is all building to the necessity of asking the Government to report on what barriers and costs exist. We have received some indication from the border operating model to which I referred. We already know, from the document that was published last week—the 271-page border operating model—that this is going to add huge burdens at our borders. We know that there is a six-month deferral for our border processes because they have not been ready and that this is not going to be all that is necessary for this. However, what we did learn last week was that businesses are going to need permission to move their vehicles to Kent. The Government are going to require a statutory Kent access permit for businesses seeking to export from anywhere across the UK if they wish to exit from Dover. Therefore, not only do we now have a debate about unfettered access to Northern Ireland: there is not even going to be unfettered access to Kent on the M20 for those wishing to export.

We know from Michael Gove’s Statement in the House of Commons whose fault this is likely to be; rest assured, it will not be his. He said:

“Every business trading with Europe will need to thoroughly familiarise itself with new customs procedures and, whether they develop their capacity in-house or work with a customs intermediary, enhanced preparation is vital.”


This is two months away. He went on to say, referring to businesses, that,

“just 24% believed that they are fully ready.”—[Official Report, Commons, 23/9/20; col. 961.]

Therefore, in addition to the grants of support and in addition to what the Government have indicated is going to be necessary for intermediaries, we know that there are insufficient numbers of those to support businesses.

I asked at Second Reading about the number of intermediaries recruited after the Government’s undertaking to help our exporters, but the Minister did not reply. I wrote to him, and he kindly sent me a thorough reply but without the information about how many intermediaries had been hired. Can he answer that today with up-to-date information?

Finally, businesses have been calling for some clarity on this additional bureaucracy, these new barriers to export and the new burdens on importers. If businesses are going to be taking up the greater exporting opportunities that might present themselves, they need to know in advance, with a degree of certainty, what kind of barriers and burdens they face. That is why these amendments are important. I hope that the Government support the principle of them: to have as much information out there as timely and accurately as possible. It is not just for 1 January that we need to prepare; it is ongoing. That is why I hope that the Government will support these amendments. I beg to move.

[Baroness Noakes (Con)]

My Lords, I was quite surprised to find the noble Lord, Lord Purvis of Tweed, concentrating on the costs involved in the border between the UK and the EU. When I put my name down to speak in this group, I thought it was about assessing the costs of our trade with other countries. Let me be clear: I am always in favour of ensuring that the Government identify the costs and burdens on business in all of their activities, so he will not find me opposing his amendment on that ground at all.

However, his amendment is very unclear, because it is not clear what the counterfactual is: costs compared with what? In the context of his subsection (1), which is about the rollover agreements, are the costs compared with the current status quo—that is, in the implementation period—or with trading on WTO terms after 1 January, or with something else? It is very unclear. In the case of subsection (2), presumably the cost will be compared with trading with those other third countries on WTO terms because that would be the counterfactual. It seems to be highly unlikely that we would enter into a free trade agreement with another party that involved costs additional to those trading on WTO terms, so the noble Lord’s amendment does not entirely make sense.

[Baroness Suttie (LD) [V]]

My Lords, I shall be brief, as my noble friend Lord Purvis has already made a characteristically clear and robust case for impact assessments as set out in Amendment 42, to which I have added my name.

Given the highly complex and as yet unresolved nature of the situation in Northern Ireland as a result of the Northern Ireland protocol, does the Minister not agree that impact assessments would be particularly helpful to the business community there? An evidence-based approach would provide an opportunity to highlight any particular concerns and any additional costs that could have such a negative impact on Northern Ireland businesses, not least because of the highly complex supply lines there. Impact assessments would provide a greater understanding of the facts and allow for more effective planning and preparation, as my noble friend Lord Purvis has said.

The Minister will know that, in May, the Northern Ireland Business Brexit Working Group submitted more than 60 detailed questions to the Government, following its analysis of the impact of the changes facing Northern Ireland businesses at the end of the transition period. However, 17 of these questions remain unanswered. Can the Minister say when he expects answers to be given to these remaining questions, most especially given that we are now just over two months away from the end of the transition period?

The Government published a detailed, 60-page document setting out the possible economic advantages of a trade deal with the United States. A detailed analysis was presented in May this year on the likely impact of a trade deal with Japan. Yet in March this year, Michael Gove told the House of Commons Committee on the Future Relationship with the European Union that there would not be an impact assessment on the UK-EU trade deal currently being negotiated. Can the Minister therefore explain what criteria is used to decide whether or not to carry out an impact assessment on any future trade deal? Can he say whether the Government intend to publish an impact assessment on the EU-UK deal and, if so, when will it be done? Will particular attention be given to the very specific set of circumstances facing Northern Ireland?

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[Baroness Bull (CB)]

My Lords, I support this amendment, which seeks to secure the continued success of the UK’s trade in goods and services with the EU, and to preserve the mobility framework that will be vital in achieving that aim. I will also focus on services, because they have undoubtedly been the Cinderella of the Brexit story or, as Sir Ivan Rogers memorably described them last year, the dog that has failed to bark.

I wondered then whether it might be that trade in goods has predominated because the at-the-border issues they involve are easier to grasp than the behind-the-border issues of domestic rules, regulations and qualifications that underpin trade in services. It might be because of the confusing range and diversity of sectors that shelter under the umbrella of services, from IT to hairdressing, education to tourism, architecture to the arts, as well as health, insurance and financial services. Or it might be because the biggest service earners—the financial and insurance services—are heavily skewed to London and the south-east: 48% of the £128 billion those two service sectors contribute to the UK economy is generated by London alone. That uneven geographic distribution and economic contribution does not sit easily with the language of levelling up, and supporting bankers and brokers may not be much of a vote winner either.

However, like it or not, this country has long been predominantly a services economy. In 2019, services contributed around 80% of UK economic activity, and they account for about 30 million jobs. The EU single market is the primary destination for UK services exports, with the UK running a trade surplus with the EU in services. This dominance of the EU for our services exports is not surprising. One of the best-established empirical results in international economics is that bilateral trade decreases with distance.

There are five modes of services traded across borders: remote, in the supplier’s country, in the consumer’s country, via fly in, fly out, and as an integral component of a traded good. That last mode of attached or embedded services—perhaps the long-term maintenance contract for a machine, for example—has been a great big growth area for the UK in recent years. The majority of Rolls Royce’s revenues come not from the sale of the aircraft engines and other goods it produces but from the accompanying services that are sold as part of the package.

In each mode there is an inextricable link between services and mobility. Service provision, as the noble Lord, Lord Fox, pointed out, requires people on the ground. Services provided in this country—higher education or tourism, for example—depend on inward mobility. Services provided in other countries, including those all-important embedded services, require outward mobility. Some of our most important and successful service industries are heavily dependent on EU workers: financial services, education, health, road haulage, and, as I often remind this House, the creative industries. The Royal Institute of British Architects estimates that one in four architects working in the UK is from the EU. In tourism, 10% of workers are EU nationals, as is 6% of the NHS workforce, and we have discussed over and over again the importance of EU migrants to our care sector.

Even before Covid, the loss of free movement post Brexit threatened the sustainability and success of the UK services sector. Covid continues to have a devastating effect on parts of the sector that rely on human gatherings and interactions: hospitality, air travel, restaurants, hotels, as well as arts and entertainment. Only last week, the Lords Economic Affairs Committee heard devastating testimony about the effects of the pandemic on the UK’s cultural and creative industries. However, according to research from the LSE, Brexit will deliver a double shock to the economy. Business conditions will worsen for those sectors that have been able to better weather the Covid storm—IT, financial and legal services, for example—because of the barriers it will impose on the continuation of trade, whether or not there is a deal. These of course include the end to the reciprocal mobility that has underpinned the UK’s status as a world leader in services provision.

Sir Ivan Rogers, in the same speech I referred to earlier, suggested that the UK services industry’s needs have been sacrificed to the primary goal of ending free movement, and it is hard to disagree with him. This amendment seeks to preserve a mobility framework with the EU. In doing so, it would help preserve one of the UK’s most successful sectors, and along with that the jobs, revenues and opportunities that it provides.

[Baroness Noakes (Con)]

My Lords, I had initially intended to take part in the debate on this amendment solely for the purpose of probing whether study, which is mentioned in the amendment, can logically be regarded as necessary for trade in goods or services. I had not expected this debate to go into our border control policies, with yet more angst over not having the same rights to travel throughout the EU as exist even today.

I would just say to noble Lords, including the noble Lord, Lord Fox, who seems to think that Conservatives might be upset at restrictions on movement, that we voted, both in the referendum and in the last general election, to take control of our borders—that is what the people voted for. That has consequences. Noble Lords who are trying to constantly recreate what we have had in the past as members of the EU do themselves no service. We have to change what we are doing going forward. That is not to say that we cannot have sensible arrangements with both the EU and other countries to facilitate the trade in goods and services, which I fully support. However, we should not be constantly harking back to life as it was when we were a member of the EU.

[Lord Judd (Lab) [V]]

My Lords, this is a very important impendent indeed, and we have cause to be grateful to all those who put it on the agenda. I have never understood how you can have an effective free market of any kind without the free movement of people. It makes a nonsense of it. In that sense, the arguments have been very well rehearsed in this debate. I would just like noble Lords to know that at least one of us on these Benches—I am sure there are many more—is very much behind the amendment.

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[Baroness Jones of Moulsecoomb (GP)]

My Lords, I will take issue with the noble Lord, Lord Lansley, in a moment. In the meantime, I would like to say what a pleasure it has been to work with the noble Baronesses, Lady McIntosh, Lady Henig and Lady Ritchie. I am delighted to support these two amendments.

I really congratulate the noble Baroness, Lady McIntosh of Pickering. It is almost like having a third member of the Green group sometimes. I am sure that she hates that thought and that the Minister might as well. It has been quite a slog for us during this Bill. We have repetitively talked about these issues and it is getting a tad boring.

This amendment is a mechanism to maintain trade standards that are as high or higher than domestic UK standards. For the noble Lord, Lord Lansley, that means that it is okay to trade with countries that have higher standards, even though they are not the same as our standards; that is the point of this part of the amendment. He asked why this is necessary. It is necessary because we simply do not trust the Government. If he can put his hand on his heart and say that he trusts the Government—go on; no?—I will be astonished. We have fantastic Ministers here—we even have a fantastic government team—but we do not trust the Government.

This amendment addresses the criticisms raised in previous iterations of the Bill, when noble Lords suggested that defining UK standards and equivalent standards would be a difficult legislative exercise. The amendment would create a specific body to undertake that exercise, and would grant it the necessary resources to do so. That might be a bit of a sticking point but, quite honestly, it is possible to move resources around, so I do not see that as an essential problem.

My colleagues, the three noble Baronesses, have covered almost every aspect on which I should have liked to speak, so all I will say is: will the Minister commit to working with us, perhaps to find a compromise amendment ahead of Report? Otherwise, there will the inevitable Division and government defeat, which will obviously be quite exciting for many of us but probably less so for the Minister and his team. So it would be wonderful if we could see a positive way forward.

[Baroness Noakes (Con)]

My Lords, first, I want to associate myself with the remarks of my noble friend Lord Lansley. I agreed with absolutely everything that he said.

It should be up to the Secretary of State to decide whether she needs any advice on standards or the criteria to be adopted. But, of course, this amendment is not about giving advice; it is about imposing criteria on the Government. Even if it does not cross the line, it is getting very close to interfering with the Government’s use of the royal prerogative in negotiating trade deals.

As noble Lords will be aware, there is already an extensive array of bodies—the Strategic Trade Advisory Group and individual trade advisory groups with extensive memberships—advising the Secretary of State. The only purpose of this amendment is to try to impose something on the Government. Yet again we hear something that we have heard before in Committee; this amendment is coming forward because “We don’t trust the Government to do the right thing”. I have to say to noble Lords that Governments do not legislate because noble Lords opposite do not trust them. Noble Lords must accept the Government’s assurances as they are given.

I will just say something on the Dimbleby report, because we have heard a lot about it both here and in relation to the Agriculture Bill. As I understand it, this is a draft report; it is not yet final. The Government have not made any response so far, and do not intend to do so until after the final version. It would be extraordinary to try to legislate in this Bill for policy that is not yet made. I accept that this is a probing amendment today, but I hope my noble friend will not press it again on Report.

[Lord Judd (Lab) [V]]

My Lords, although, as the amendment states firmly, it is not exclusively concerned with the issues of animal welfare, protection of the environment, food safety, hygiene and traceability, plant health, employment and human rights, these are important in the context of this debate. We have repeatedly discussed them in the context of this Bill, as well as during the debate on the Agriculture Bill earlier this month. These standards matter desperately. The amendments are important because they provide belt and braces—a system whereby we can provide more effective parliamentary scrutiny.

This bears repeating as often as we like: when we came out of the European Union, the case that the Government advocated over and over again was to take back control. Well, that must mean that the representatives of the people in Parliament have control and authority. If this body helps us to take that control more seriously and to be more effective, it is a good thing, and we should not be wasting time explaining why it is not really necessary. It may be belt and braces, but it underlines the importance of the people’s representatives taking back control.

These amendments are very important indeed. Not for the first time I congratulate the noble Baroness, Lady McIntosh, on introducing it. I was also very impressed by the speech made by my noble friend Lady Henig in support of it. I do hope we will give these amendments a fair passage.

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[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome the opportunity with this small group of amendments to press forward some of the evidence that we heard on the EU Environment Sub-Committee, on which I have the privilege to sit. While my noble friend Lord Lansley said that this amendment should not be needed, I rather regret that it may be and I would like to take this opportunity to press my noble friend the Minister in this regard.

The Government have made a commitment under the Northern Irish protocol that there will be unfettered access for goods moving from Northern Ireland to the rest of the United Kingdom. The position on exit summary declarations is as yet unclear and the discussions between the Government—presumably Defra and the Department for International Trade—and the Assembly in Northern Ireland do not seem to have been going as straightforwardly as one would wish.

In the letter that we wrote to the Minister—I believe in September, so we probably have not had a reply—we highlighted the need for training and awareness raising in what information gathering those we heard from, including farming organisations, freight operators and other businesses involved in this trade, will be required to make and submit under the new checks and controls. Those we heard felt, as the noble Lord, Lord Hain, has said, that they would benefit hugely from a trusted trader scheme. It would be interesting to hear what state that is at.

With those few queries, I would be grateful if my noble friend could respond to the serious issues that were raised. This is pretty much the 11th hour. We are now in the middle of October and these checks and controls presumably are meant to be in place ahead of 1 January. These amendments provide for us to obtain an update at a timely moment.

[Baroness Noakes (Con)]

My Lords, I wish to speak only to Amendment 82 in this group. I generally try not to speak on matters about Northern Ireland, because life is too short.

I completely agree with what my noble friend Lord Lansley said on the trader support service. In particular, I am sure that, if there were a need for further support at the end of the two years, any responsible Government would ensure that such support was available. I remind noble Lords that it is a temporary facility in order to help traders become accustomed to the new arrangements, whatever they finally turn out to be. It includes training. It is not to take over from the traders handling the paperwork; it is to train them so that it becomes part of their everyday activities. In that context, two years may well still be enough, although I accept that there is uncertainty at the moment.

The amendment says that the service can be accessed at no cost—that is, of course, no cost to the trader, but there will be a cost to the public purse. I just say to noble Lords that, if they pass the amendment, they are walking straight into financial privilege.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I will be brief. The noble Lord, Lord Hain, and the noble Baroness, Lady Ritchie, have outlined clearly the sad and urgent need for these amendments. I particularly commend the words of the noble Baroness, Lady Ritchie, speaking from the heart from a lifetime of experience on the ground. Lives and businesses have been peacefully and productively intertwined between Northern Ireland and Ireland and must not be torn asunder.

It is a year since I came into your Lordships’ House. I did not appreciate then—although, in retrospect, perhaps I should have, given that it was just after the unlawful Prorogation of the other place—that in 12 months’ time I would have to join a broad coalition of fellow Peers speaking up simply for the rule of law, the Government having explicitly disavowed adherence to it.

We are daily reminded of the fragility, instability and weakness of our current institutional arrangements and the pressing need to make the UK a modern, functional democracy. I go back to a paper from the Constitution Society in 2019, which noted:

“We have long assumed that those who rise to high office will be ‘good chaps’”.


The gendered nature of that phrase is telling but not my main point. The paper concludes that general standards of good behaviour among senior UK politicians can no longer be taken for granted.

Reflecting on the suggestion of the noble Lord, Lord Lansley, that these amendments are unnecessary because they are already covered, my response would be that, on an issue of this importance, we need to seek every possible protective mechanism in these circumstances. That is the context in which these amendments come before us. The practical reality is that they create laws that then may well have to be enforced on the Government. I urge the proponents to pursue them to the utmost.

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[Viscount Waverley (CB) [V]]

My Lords, the noble Lord, Lord Lansley, has succinctly made the case. The final countdown to the United Kingdom embarking on a new chapter in our proud journey has arrived. Transparency and inclusiveness are needed now more than ever. The noble Lord should be thanked for tabling these amendments. The word “trust” has been uttered many times in Committee. These amendments would assist that process. For a nation that built its reputation as a great trading nation, it is surprising how little is understood about how trade impacts. Taking the public’s trust is an imperative. These amendments would provide an important demonstration that the Government are serious about making trade work for everyone, and the promotion of international best practice. Demystifying trade, enabling all stakeholders to understand how it benefits the economy, and demonstrating that to the regions and communities up and down our land is essential.

It is time to look at these issues with fresh eyes, and to bring a more inclusive approach to finding solutions to the challenges we face. By inclusive, I refer to the United Kingdom’s multi-sector business organisations, together with representatives of consumers, civil society and workers. Strong social partnership between government, business and unions is the only way to deliver the required results. After all, a sustainable and inclusive approach would translate into economic growth, jobs and the maintenance of high standards.

Common rules and standards are the best mechanism to reduce red tape and bureaucracy and ensure that we all trade on a level playing field. An annual report, as proposed by the noble Lord, Lord Lansley, would help ensure that robust mitigation strategies are in place to assist companies in understanding, for example, the new trade preferences available and how they can benefit. The noble Lord has flagged that an export strategy should be in place by year-end. This would be extremely commendable.

Lessons learned from the past, to effectively distribute the benefits of trade and how to achieve it, are paramount. To that end, and relevant to the issues before us this afternoon, an All-Party Parliamentary Group for Trade and Export Promotion has indeed been launched, which I have the honour of co-chairing. Gary Sambrook, in another place, takes the lead, with MPs across the family of nations being actively involved. The noble Lord, Lord Lansley, kindly referred to this and he is a key participant. I am grateful to him for drawing attention to it. We are certainly working on a full programme, including, quite extraordinarily, a call at 4 am to review progress with a secretariat headed by Chris Southworth. I am delighted that the noble Baroness, Lady Mobarik, and the noble Lords, Lord Lansley, Lord Mann and Lord Purvis, are vice-chairs, contributing much with their combined wisdom. It offers constructive consideration of the issues that bring us together today, bringing together international trade policy, trade promotion, investment and trade finance under one roof, and into an inclusive forum. The APPG is ably supported with a secretariat run by an organisation that lives and breathes trade, the International Chamber of Commerce.

This morning we had our first meeting, made up of 30-plus organisations from around the UK, to learn of concerns and proposals. From this point, we will invite Her Majesty’s Government to attend these meetings, as I have little doubt that they will find areas of interest, in the spirit of delivering better solutions and outcomes that build confidence and trust in trade.

I end where I began, in supporting these amendments. We must work as a team united, so that the UK can go forward as a global player, but not before sorting ourselves out internally. I endorse the suggestion made by the noble Lord, Lord Lansley, and encourage the Government to adopt the amendment to the best benefit of us all.

[Baroness Noakes (Con)]

My Lords, I certainly support all that my noble friend Lord Lansley said about the importance of trade promotion and export promotion. Clearly, this is vital to underpin our success in a post-Brexit world. I also support the intention that underlies the amendment, which is to facilitate holding the Government to account for their delivery in those areas. I find it difficult, however, to support the amendment itself.

All amendments that call for reports need to be treated with a certain amount of scepticism. There is already a vehicle for delivering what the amendment asks for, which is the annual departmental report. If my noble friend had expressed his amendment in terms of a government-wide delivery on his aims, I could understand the need for it to be a free-standing report, but his amendment focuses on the Department for International Trade. Therefore, the annual report for the Department for International Trade should suffice.

There is also the International Trade Committee in the other place. We tend to be somewhat dismissive of the other place’s ability to scrutinise legislation well, but one of the things it does do well is to hold individual government departments to account. If you take the combination of a departmental report and the International Trade Committee in the other place, we have the mechanisms to achieve the very noble intents lying behind this amendment.

[Baroness McIntosh of Pickering (Con)]

My Lord, I personally welcome the idea of the Secretary of State laying a report before Parliament. I have a feeling that the Secretary of State may not be minded to do so.

I am reminded of the fact that I started my political career in the European Parliament, where one of my functions was to advise my noble friend Lady Hooper, who very kindly found a letter from 1983 that I think we should frame. When I became a Member of the European Parliament for Essex North and Suffolk South, rather than an adviser to MEPs, one of the things I enjoyed the most was leading delegations of businesses to countries such as Poland, Hungary and Czechoslovakia and introducing them, through department of trade contacts, to their opposite numbers, prior to them joining the European Union. It seems a bit sad, now that we have left the European Union, but they have the benefit of all my good work in that regard.

I would like to congratulate my right honourable friend Elizabeth Truss, Secretary of State for International Trade, for being brave enough to appoint, to my certain knowledge, the first-ever agricultural attaché to China, based in Beijing. They have been there now for possibly two or more years. It could even be five years—time flies. The consequences of that single act have been magnificent. Malton Bacon Factory has been a beneficiary to the tune of millions every year because it produces pork, and we do not eat the parts that Chinese consumers take to be very appetising such as pigs’ trotters, snouts, tails and ears. The very fact that we have had a commercial attaché based there goes to the heart of what we can do. I think they are paid something like 80% by industry.

The thinking behind the amendment is very good, and I would like to see more of it. The balance is about right in terms of funding by the industry itself, but there could be some pump-priming from various departments, such as in the case I mentioned of agriculture. I hope we can learn from other countries such as Denmark, which obviously remains in the European Union. In its exports of food, particularly farm products, Denmark punches way above its weight, as we found when I led a small delegation there from the Environment, Food and Rural Affairs Committee from the other place. Denmark has a whole network in countries such as China, and indeed other European Union countries, where it uses a little bit of state funding but mostly industry funding to market, export and promote its own goods. This is something Deliciously Yorkshire has done very cleverly at a regional and national level, and I hope it is something we can roll out. I hope my noble friend will look favourably on this amendment in that regard.

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[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

Owing to an error in the listing, the noble Baroness, Lady Northover, will speak later. Meanwhile, I call the noble Baroness, Lady Noakes.

[Baroness Noakes (Con)]

My Lords, like other noble Lords, I pay tribute to the noble Lord, Lord Alton, for his consistent support for oppressed people around the world. That is not in any doubt whatever; nor is the sincerity of the intent behind the amendment. I would, however, like to query whether it will achieve what the noble Lord thinks it might.

I will speak to the revised format of the amendment and concentrate on free trade agreements, not the GPA under subsection (1). The regulations under Section 2(1) apply only to continuity trade agreements. As I understand it, at the moment there is no agreement with either China or Myanmar that would qualify to be implemented by regulations under Clause 2 of this Bill, so I do not think that the amendment will achieve what noble Lords want it to. It would be quite difficult to repurpose the amendment to tackle future trade agreements because what the court could not do is revoke the trade agreement. The only thing that could be got at is some of the implementation legislation. It would be quite difficult to find a formulation that allowed the High Court to revoke, in effect, an international trade agreement. As I have suggested, I do not think that the mechanism of going to the implementation measures will actually work.

In addition, I believe that Parliament has a clear role when new free trade agreements are entered into. If Parliament does not like the counterparties or believes that they might be involved in either genocide or any other form of abuse—my noble friend Lord Forsyth spoke as much about human rights abuses as he did about genocide itself—it can decide not to ratify a free trade agreement and not to implement any legislation that is required to implement such an agreement. However, it is very difficult to go back and undo a free trade agreement once it has been made and ratified. I suggest to my noble friend that even if the courts were able to do that, I do not believe that they are the right place for what is essentially a political decision.

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

I understand that the noble Baroness, Lady Stroud, has withdrawn so I call the noble Lord, Lord Judd.

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I cannot see why they would necessarily object, but it is always a principle to say that, if an area is going to be designated for these purposes, the Treasury should have satisfied itself that the people living in that area will have been consulted about such a designation. So the Treasury and the Government are making progress on free zones, and this might be an opportunity for my noble friend to inform us about the progress of that exercise and, I hope, to respond by suggesting that for the future it would be good to proceed in the way that my amendment proposes.

[Baroness Noakes (Con)]

My Lords, I will speak only to Amendment 70 in this group. We voted to leave the EU on 23 June 2016 and that has been confirmed several times. We have left the EU but are currently in a one-year implementation period, which expires at the end of this calendar year. I do not believe that any further implementation period is needed, and I particularly do not think that one is needed in the context of an agreement with the EU.

The amendment says it shall be an objective in negotiating a trade agreement with the EU to secure a further implementation period—clearly ignoring the fact that we have already legislated for no further implementation period. But, if there were any issues, they would be most likely to bear on people who are exporting under WTO terms after the end of this year. So the amendment is not going to achieve the effect of helping those with complex supply chains, because those with complex supply chains who are expecting the arrangements with the EU, as part of a free trade agreement, to deliver the certainty they require will be of a much smaller order of magnitude than in the context of having no deal. We know that the Government want to achieve a deal, but it is not yet clear that we will be able to do so—so I could never support Amendment 70.

[Baroness Neville-Rolfe (Con)]

My Lords, I rise as someone with many years of experience in supply chains, including just-in-time supply chains. This area is often a problem in trade agreements, and indeed in the operation of such free trade agreements. I remember all the difficulties affecting our shoppers when quotas and rows between the EU and China held up bras and shoes on the high seas—not perishable, but as important as chicken for many of us. Food is trickier than goods, as noble Lords will remember from strikes affecting Channel crossings and the Icelandic ash cloud.

The point I want to make is that EU exit, or any continuity or future trade agreements, are likely to lead to changes in supply chains. We should embrace this, and I am afraid that I am not convinced that we need Amendments 70 and 95.

My own view is that the combination of more border checks, whether we agree a deal on trade with the EU and EEA or not—that is the reality—will change trade flows. New FTAs will bring changes in tariff schedules, rules of origin and perhaps new provisions on standards. This could be a huge opportunity at home for British industries and parts of British agriculture, as buyers turn to home production to avoid the complexities. Of course, they will also face competition, but I know from experience as a business executive that competition makes business sharper and better.

There may be a need for some transitional arrangements in EU or other FTAs—fisheries is an obvious area—and even help for small firms wrestling with new checks. But we should not seek an additional transition period with the EU, as my noble friend Lady Noakes has just said. We should not try to preserve existing systems in aspic, however good the intentions of those debating this Bill today. We will do much better if we lead the way in embracing the opportunities of EU exit and of new trade agreements.