Trade Policy (Opt-ins)

Ed Davey Excerpts

Tuesday 31st January 2012 Written Statements

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I wish to inform the House that the Government have opted in to the following trade policy measures:

(i) the Council decisions relating to the accession of Russia and Samoa to the World Trade Organisation;

(ii) the Council decisions on the signing, provisional application and conclusion of a side agreement with Russia, preserving commitments in the current EU-Russia partnership and co-operation agreement, following Russia’s accession to the WTO; and

(iii) the Council decisions on the signing and conclusion of the trade agreement between the European Union and Colombia and Peru.

In each case, opting in will help to achieve the Government’s trade policy objectives of expanding the WTO’s membership and pursuing trade liberalisation through the conclusion of EU free trade agreements with third countries.

The Government have supported the accession of Russia to the WTO on the right terms. In acceding to the WTO, Russia will embrace a series of rules and commitments which form the foundation of an open, transparent and non-discriminatory global trading system and which will provide important guarantees for Russia and for the other WTO members. Accession to the WTO will bring Russia more firmly into the global economy and make it a more attractive place to do business.

The Government have supported the accession of least developed countries (LDCs) such as Samoa to the WTO. Becoming a member of the WTO will allow Samoa to benefit from WTO market access and global trading rules and the transparency of the WTO trading system. It will also be able to use the WTO dispute settlement mechanism to solve its differences with other members and fully participate in the ongoing negotiations to design the trade rules of the future.

The intention of the side agreement with Russia is to maintain commitments in maritime transport services and in mode 4—the temporary movement of natural persons for business purposes—offered by Russia to the EU bilaterally which would otherwise fall away on Russia’s accession to the WTO.

The Government have supported the EU trade agreement with Colombia and Peru. This agreement will provide a range of benefits and reassurances for UK trade and investment in Peru and Colombia, including liberalisation of Peruvian and Colombian tariffs in key sectors for UK exports. It also includes a robust essential elements clause which covers both human rights and weapons of mass destruction, either of which can be invoked as reason for suspension of trade preferences.

In each case, the Council decisions extended in some way the UK’s commitments in mode 4. These commitments are an integral part of our trade commitments at the WTO and of the trade agreement with Colombia and Peru. It is the presence of these commitments in the relevant instruments which triggers the UK Justice and Home Affairs opt-in.

In the case of the decisions on the accessions of Russia and Samoa and the related side agreement with Russia, I regret that it was not possible to allow the normal eight weeks for parliamentary scrutiny. This was due to the late conclusion of the negotiations, particularly with Russia, and the consequent late presentation by the Commission of the relevant draft Council decisions, while we still needed to agree positions in Council ahead of the WTO ministerial on 15 to 17 December.