Continuity Trade Agreements: Parliamentary Scrutiny

Emily Thornberry Excerpts

Tuesday 17th November 2020 Commons Chamber

[Emily Thornberry (Islington South and Finsbury) (Lab)]

(Urgent Question): To ask the Secretary of State for International Trade to make a statement on the proposed parliamentary scrutiny of future Continuity Trade Agreements.

[The Minister for Trade Policy (Greg Hands)]

In under two years, the UK Government have signed or agreed in principle trade agreements with 52 countries that account for £142 billion of UK bilateral trade. That accounts for 74% of the value of trade with non-European Union countries that we set out to secure agreements with at the start of the trade continuity programme. Since the transition period began, we have expanded the ambition of our programme above and beyond that original scope. In November we signed an enhanced deal with Japan, accounting for £30 billion of UK trade in 2019, and we expect to make significant progress in securing further deals before the end of the transition period. We believe that this is the largest set of parallel trade negotiations ever conducted by any country.

Parliamentary scrutiny is central to our continuity negotiations. All signed agreements would be subject to the statutory scrutiny process as set out in the Constitutional Reform and Governance Act 2010, providing a guaranteed period for Parliament to scrutinise and debate these agreements. Indeed, Parliament has held debates on six of our signed continuity agreements, and not one of those debates has carried a negative resolution. Further, we have voluntarily published parliamentary reports alongside all continuity agreements, explaining any differences from the predecessor EU agreements. I am pleased to see that our approach to scrutiny was praised in a recent report by the House of Lords EU International Agreements Sub-Committee, “Treaty scrutiny: working practices”.

As we approach the end of the transition period, it is possible that the scrutiny window for remaining agreements will extend beyond 1 January into the new year. That means that we may need to use provisional application for a short period, in order to guarantee continuity of trade relationships and avoid any cliff edges. I thank the right hon. Lady for her two letters on the subject to the Secretary of State last week. Provisional application is a well-established and widely used mechanism to give effect to treaties while domestic ratification procedures continue in parallel. Many EU trade agreements were or are being provisionally applied, including the comprehensive economic and trade agreement with Canada and the agreements with Ukraine and with the Caribbean Forum. I remind the right hon. Lady that those EU agreements have already been comprehensively scrutinised at EU level and by this Parliament. In fact, the Government published a technical note in Parliament last year setting out our assessment of provisional application and the circumstances in which it might be used.

We will always take the time necessary to negotiate the right deals. Any agreement we sign must benefit British consumers and businesses, preserve our high food standards and protect the NHS, and they must share wealth across all our nations and regions as part of our levelling-up agenda. We look forward to submitting further continuity FTAs to Parliament for scrutiny once signed, and we welcome further debates on our independent trade policy.

--- Later in debate ---

[Emily Thornberry]

Thank you, Mr Speaker, for granting this urgent question on an issue that should never have become urgent. The Government have literally had years to protect our free trade with countries such as Canada, Singapore and Mexico, but with just six weeks to go until the end of the transition period, 15 of those continuity agreements have still not been secured, leaving £80 billion of UK trade at risk—two and a half times our trade with Japan. Those 15 agreements have been left so late that the Government will now have to ride roughshod over the rules of parliamentary scrutiny to implement them in time.

Why do we find ourselves in this sorry mess? Why were 20 agreements signed in 2019, but only four so far in 2020? Why have we heard Governments such as Montenegro and Cameroon saying that formal talks were held in September 2019, but then nothing for a full year afterwards? Why, in just the past week, have we heard the Prime Minister of Canada say that Britain has lacked the “bandwidth” to do a deal and the Government of Ghana express dismay that their UK counterparts would turn up late and badly briefed to meetings and then leave early with nothing resolved?

Those are all the hallmarks of Ministers who are simply not doing their job. How else do we explain why the agreement reached two weeks ago with Kenya has still not been laid before Parliament and cannot now receive the full 21 days of scrutiny? It is sheer bumbling incompetence, and instead of taking responsibility today, the Secretary of State has sent her Minister in her stead —a fitting symbol of a total failure to grasp this issue during her 16 months in office. It therefore falls to the Minister of State to answer my three final questions. First, what new steps is his Department taking to get these 15 agreements over the line before Christmas? Secondly, when will UK businesses be told if any of those agreements, including with Mexico, are definitely not going to be reached? Thirdly, how can Ministers continue to defend the adequacy of the rules for parliamentary scrutiny of trade deals after the absolute mockery that they have made of them today?

[Greg Hands]

It is genuinely a pleasure to answer this question. Let me try to take in turn the different points made by the right hon. Member for Islington South and Finsbury (Emily Thornberry). First, may I say in general that we are working very hard on the remaining agreements? We have around 700 dedicated officials in the trade policy group who are working on the agreements, and the Secretary of State, the Under-Secretary of State for International Trade, my hon. Friend the Member for North East Hampshire (Mr Jayawardena), and I are also working carefully on them.

Are we riding roughshod? No, we are not. CRaG would still be fully operating—[Interruption.] The right hon. Member for Islington South and Finsbury scoffs, Mr Speaker, but she voted the same way that I did for CRaG in 2010. She should have belief in what she voted for under the previous Labour Government.

As for provisional application, it is absolutely an accepted part of international procedure. It is under the—[Interruption.]