Prime Minister’s Trade Envoy Programme

Greg Hands Excerpts

Wednesday 6th January 2021 Written Statements

[The Minister for Trade Policy (Greg Hands)]

The Prime Minister has made a new appointment to his trade envoy programme.

This new appointment will extend the total number of trade envoys to 30 parliamentarians covering 69 markets. The Prime Minister’s trade envoy programme is an unpaid and voluntary cross-party network, which supports the UK’s ambitious trade and investment agenda in global markets.

My hon. Friend the Member for Tewkesbury (Mr Robertson) has been appointed as the Prime Minister’s trade envoy to Angola and Zambia.

[HCWS688]

Trade (Disclosure of Information) Bill

Greg Hands Excerpts

Committee stage & Committee: 1st sitting & Committee: 1st sitting: House of Commons & Report stage & Report stage: House of Commons
Wednesday 16th December 2020 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

Thank you, Dame Rosie, if I have the nomenclature correct. As we come to the end of the transition period, it is important that the Government make the best use of the information that they already hold to minimise any disruption that may result from the new border requirements that will apply irrespective of the nature of our trading relationship with the EU. More specifically, it is important that the Government use that information to develop a detailed picture of the flow of goods and people at key locations at the border. That will inform decision making right across Government, leading to better outcomes for businesses and citizens.

As Members will be aware, the clauses in the Bill have been scrutinised previously by the House during the passage of the Trade Bill. Members may recall that a key source of information within Government relating to both trade and border management is HMRC, which has significant responsibilities in relation to the movement of goods across the border. HMRC has specific statutory restrictions in relation to the sharing of information that it holds and, in the absence of an express legal gateway to permit sharing, the Government cannot make use of this data effectively.

The clause has therefore been introduced to allow HMRC to share the data that it holds with any other public or private body that carries out a public function related to trade for the purposes of that function. This power enables HMRC and bodies working with or on behalf of HMRC to share data with Departments, including, for example, the Cabinet Office, which, through the border and protocol delivery group, is leading Government preparedness for border readiness at the end of the transition period.

BPDG has established a border operations centre to monitor and manage flow at the end of the transition period and to support relevant authorities to better manage border controls and ensure that frictions to the flow of trade are minimised and negative impacts are mitigated. The border operations centre will use data provided by HMRC, alongside other Departments and public bodies, so that it can analyse and promote efficiencies in the flow of traffic in goods and services in and out of the United Kingdom. Access to HMRC data is crucial to developing this detailed commodity-level view of the flow of goods at the border.

Additionally, the clause will facilitate the sharing of information with other organisations, such as the World Trade Organisation and the World Customs Organisation, both of which the UK will be obligated to share data with as part of our international obligations for the purposes of trade. This is a necessary clause to ensure continuity as we come to the end of the transition period, as it will enable the efficient use of HMRC data to support the Cabinet Office’s role in minimising temporary disruption at the border that may result from our new trading relationship with the EU and enable the sharing of data with international organisations where necessary.

Measures have been included in the Bill to ensure the proper handling of the data and to safeguard and protect its use, with penalties for unauthorised disclosure, onward sharing or use. Moreover, Departments will comply with requirements of data protection legislation, including the general data protection regulation, when handling any personal data shared under this gateway, where it is deemed proportionate and necessary to do so. This clause is essential for the Cabinet Office and other bodies to ensure the continued smooth flow of goods.

Moving on to clause 2, alongside HMRC, to which clause 1 applies, more than 20 Departments and public bodies have either operational or policy responsibilities relating to the border, using over 100 IT systems between them. These Departments and public bodies collect and hold numerous types of information related to trade. However, as with HMRC, this information could typically be used only for very specific purposes, with statutory restrictions on the sharing of information with other Departments. These restrictions inhibit the Government identifying and utilising the full potential of their information to support trade policy and the flow of goods and services through the border. The restrictions also lead to inefficiencies, including duplicative requests to industry to share data.

The clause fixes that problem and will allow specified public bodies and Departments to share data where it supports the exercise of a Minister of the Crown’s functions relating to trade. By combining and analysing specific border data, the Government and the Cabinet Office, in particular, will be able to develop insights and analysis to support the Government as a whole to deliver better services. This will ensure that goods and trade to continue to flow when the UK becomes an independent trading nation at the end of the transition period. As with clause 1, this clause does not, however, grant any additional data collection powers to the Government. Instead, it seeks to create a discretionary gateway to enable more effective sharing of data that Departments and public bodies already hold.

Moving to clause 3, the Government rightly take the safeguarding of information and personally identifiable information, in particular, very seriously. As I hope I made clear in introducing clauses 1 and 2, the ability to share data under both gateways is discretionary. Individual Departments and public authorities providing data will need to be satisfied that data sharing is necessary to support functions relating to trade prior to sharing the data. Furthermore, as I mentioned when introducing clauses 1 and 2, any data shared by the data-sharing gateway that is being established will have to comply with data protection legislation, including the general data protection regulation and its principles, covering necessity, proportionality and minimisation to protect the rights of individuals.

Clause 3 provides an additional safeguard on top of all the others by creating a criminal offence if information relating to a person’s identity, or information from which a person’s identity might be deduced, is shared in contravention of clause 2. I hope that will provide further assurance, if it is required, that the data shared through the gateway will be handled appropriately.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I am interested in clause 3. To whom are the Government concerned that the information might be shared inappropriately? Who would be the recipients of that information?

[Greg Hands]

I think the hon. Gentleman’s question was about what kind of people would be inappropriate; it would be people to whom the legislation will not apply. We are talking about a discretionary power to share data to assist a Minister in functions relating to trade. In addition, the criminal power, as I understand it, is in the Bill specifically to prevent any individual person’s identity from becoming either known directly or deduced through the data that has been produced. Clause 3 puts in place an additional power to prevent that data from becoming known. I do not really want to speculate, Dame Rosie, but I can imagine a whole series of people and bodies that might have inappropriate access to an individual’s data as they pass through a border. I think we can all imagine the sort of people who may not have either your, mine or the Government’s best interests, or the interests of international trade, at heart.

Clause 4 contains the sunset elements of this Bill. As the House will be aware, the Trade Bill is currently passing through the other place and is now unlikely to receive Royal Assent before the end of the transition period. As I hope I made clear in introducing clauses 1 and 2, it is essential that we are able to provide a gateway to enable the sharing of trade-related data that the Cabinet Office requires before the end of this period as it takes on border-monitoring functions. To ensure that we can do that in time, the Bill replicates clauses 8 to 10 of the Trade Bill, which has been referred to at least twice so far. Clause 4 is therefore required to facilitate the expiry of clauses 1 to 3 of this Bill if similar clauses are passed in the Trade Bill, and will thereby ensure that the UK statute book is kept in good working order.

Clause 5 sets out the interpretation of key terms for the purposes of the Bill. Specifically, it provides interpretation of the terms “the data protection legislation”, “enactment”, “the investigatory powers legislation” and “Minister of the Crown”. The interpretations are intended to ensure that the reader of the Bill has clarity in respect of and understands the use of those terms in the Bill.

Finally, Clause 6 sets out the territorial extent of the legislation, when it will come into force and its short title. Subsection (1) sets out the territorial extent of the provisions:

“This Act extends to England and Wales, Scotland and Northern Ireland.”

This is a standard clause in any Bill to specify the extent of the its measures.

I note that the Government have worked closely with the devolved Administrations on these provisions as part of work on the Trade Bill, to ensure that the data- sharing gateways can also assist them with their devolved functions—I have already mentioned traffic management around ports as a classic case of where a devolved Administration have a legitimate and correct interest in ensuring that data will flow and therefore that trade flows. In that spirit of working closely together, the Government made two commitments to the devolved Administrations in relation to data sharing under clause 9 of the Trade Bill when it was in Committee in the Lords, and I will repeat them today. First, the data shared under clause 9 of that Bill will be used by the border operations centre and the Cabinet Office to develop strategic insights. The Cabinet Office is committed to sharing strategic analysis related to the flow of data where it will support the more effective management of flow through the border. Cabinet Office officials will continue to work closely with counterparts in the devolved Administrations to ensure that relevant analysis and information can be shared to support devolved functions relating to trade and management of the border. Secondly, the UK Government commit to consulting the devolved Administrations before any devolved authorities are added to or removed from the list of specified authorities that can share data under clause 9 of the Trade Bill.

I turn to the remaining subsections of clause 6. Clause 6(2) of the Trade (Disclosure of Information) Bill provides for the Bill to come into force on the day of Royal Assent. Clause 6(3) simply provides that the Bill, once enacted, will be cited as the Trade (Disclosure of Information) Act 2020. I hope that the House agrees that clause 6, and therefore all six clauses, should stand part of the Bill.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

I will not take the House’s attention for long. Again, I find myself in agreement. The Liberal Democrats have serious reservations about the original Trade Bill, but we recognise that, through no fault of this House, the Bill has to be expedited. We need some form of data protection and for our authorities be able to use the data effectively, so we are prepared not to go along with this Bill, but to accept that we need it and that we need it by 1 January. We are in this situation simply because the negotiations with the European Union have not gone in the way that the Government had assured us they would and because the situation has not been handled by the UK Government as expertly as we might have hoped.

[Greg Hands]

I will, if I may, respond to those points. I thank Members for making them and for participating in this Committee debate.

Taking the points in turn, the hon. Member for Sheffield Central (Paul Blomfield) asked about instances covered by clause 2(7). As he noted, reference to investigatory powers legislation is absent from the Trade Bill. That is a minor drafting error. I should have made that clear. An equivalent change will be made to the Trade Bill in due course during its passage.

The hon. Gentleman asked a series of more general questions about borders and ports and I will try to answer those as best I can, recognising that almost all of his questions are within the remit of other Departments, rather than the Department for International Trade.

The hon. Gentleman asked how the border operations centre will assist the movement of medicines and vaccines. That will be a key part of the priorities that we have set for the border after 1 January, to ensure that vital goods continue to flow quickly and efficiently. I will give an example of the sort of data that would be within scope for the border operations centre, assuming that the Bill becomes law. The ability to analyse customs declarations, transit declarations, export declarations, safety and security declarations and things such as highways data would, I think, allow medicines and vaccines to be moved more quickly and more efficiently than would otherwise be the case without the data.

--- Later in debate ---

[Stewart Hosie]

If the Minister is right that removing the disapplication would restrict the Government’s ability to collect the data they need, will he tell the Committee what data that is currently protected the Government wish to access or have a hold of that they would not otherwise be able to get?

[Greg Hands]

That is a very reasonable question, but I will stress what I said earlier: it is not possible at this stage to anticipate what specific restrictions may apply to the additional public bodies, otherwise we would have put on the face of the Bill which other public bodies could be added in due course. We have not put those on the face of the Bill, but we have said that it is perfectly possible that, during the conduct of these operations, it will become clear that there is other data out there that would assist the Government in ensuring that trade flows well at the border. We want to ensure that those other bodies could quickly come within scope, through the delegated procedures that we have laid out in legislation, and therefore it would not be appropriate to put a general restriction on those bodies. It is best to rely on the overall restrictions in the legislation to ensure that we have robust data protection.

[Richard Fuller (North East Bedfordshire) (Con)]

The hon. Member for Dundee East (Stewart Hosie) has raised an issue that would become more relevant if the sunsetting of this legislation does not take hold. If this legislation sunsets, most of us will be fairly comfortable with it. However, there is an opening here, with the combination of subsections (7) and (11) of clause 2, and subsection (1)—that sets out the purpose—which is that it would be right for Parliament to have some review of the application of this in practice. Can my right hon. Friend give an assurance, if there is no sunset within six months, that he will come back to the House to reassure us that those potential areas of concern have not been breached?

[Greg Hands]

My hon. Friend makes a very good point. I must say that if the Trade Bill has not received Royal Assent within six months, I will certainly be under scrutiny in this House, for a piece of legislation that has now been with us for three and a half years. I can give him that assurance. Obviously, the intention is that this will sunset when the Trade Bill receives Royal Assent. We do think that the overall restrictions on the use of the data, and the discretionary nature of the power, are appropriate in this place. But it is also quite right for the Government to make allowance for the fact that it may come to light that extra data will be needed, and we do not want to have what might be viewed as unnecessary restrictions on the use of that data being added now as it becomes useful to us during the course of January. Our intention, however, is that the legislation should sunset as early as possible, with the Trade Bill receiving Royal Assent.

Clause 2(8) makes explicit the requirement for any data sharing conducted under the proposed gateway to comply with data protection legislation, including GDPR. Government Departments sharing data under this gateway will also be expected to comply with robust data governance practices, including completing data protection impact assessments and ensuring that data sharing agreements are in place. Furthermore, clause 3 creates an offence for the disclosure of any information in contravention of clause 2 where a person’s identity is specified in the disclosure or can be deduced from it—the point raised by my hon. Friend the Member for North East Bedfordshire (Richard Fuller).

I hope my remarks have reassured the hon. Member for Dundee East on both the importance of clause 2(7) and the steps that the Government have taken to ensure the safeguards are in place where data is shared under this gateway. I hope that his intention is not to press his amendment. I urge the Committee to support clauses 1 to 6.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 6 ordered to stand part of the Bill.

The Deputy Speaker resumed the Chair.

Bill reported, without amendment.

Third Reading

Motion made, and Question proposed, That the Bill be now read the Third time.—(Greg Hands.)

Trade (Disclosure of Information) Bill

Greg Hands Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 16th December 2020 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

I beg to move, That the Bill be now read a Second time.

The UK will regain full control of its borders at the end of the transition period on 31 December. Irrespective of the ongoing negotiations with the European Union regarding a free trade agreement, the Government have been clear that there will be additional requirements for people and goods travelling to the EU. Since the Trade Bill is unlikely to pass and receive Royal Assent before the new year, we need to ensure that there is no gap in the Government’s ability to share the information that we already collect and hold in order to mitigate any temporary friction from the end of the transition period. That is what this Bill achieves, replicating the Government amendments made to the Trade Bill—clauses 8 to 10 —which is currently passing through the other place. These powers are critical to support the use and sharing of trade-related data between Government Departments and public bodies. They will ensure that there is no lapse in their ability to do this at the end of the transition period before the Trade Bill achieves Royal Assent.

In summary, the Bill will allow the effective use of Government data to ensure the smooth flow of people, goods and services after the end of the transition period. The Cabinet Office’s border and protocol delivery group—the BPDG—is leading work to ensure that our borders are robust and efficient, establishing a borders operations centre to monitor and manage flow through the border and support mitigation of any disruption.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

The Bill is relatively uncontroversial. However, the flow of information in itself will not be enough to deal with the situation we are likely to face in the new year. How concerned is the Minister by the Select Committee on Welsh Affairs’ report that the Welsh ports, in particular, are at an unacceptable risk of not being ready for whatever faces them at the beginning of next year?

[Greg Hands]

I thank the hon. Gentleman for that intervention, which was well put. I appeared before the Welsh Affairs Committee as part of its inquiry, and I read its report in some detail at the weekend. We are working flat out across Government to ensure that all our borders and ports are ready. It is the purpose of the borders and protocol delivery group and of the borders operation centre to make sure that we are ready. We are confident that we have done everything we can to ensure that we are ready on our borders for 1 January, but I have read the report and I noted what it had to say. The Government will be responding in due course.

These powers are critical to support the use and sharing of data related to trade. As I mentioned, a border operations centre will monitor and manage flow through the border and support the mitigation of any disruption. To facilitate that, the Bill will ensure that the Government make the best use of the data they already collect and hold, and reduce inefficiencies and bureaucracy for business. It will support better services by permitting data on the flow of international trade to be shared and analysed, and by helping to identify and resolve the root cause of disruption. It will allow the Government to use data more effectively to plan new controls at the border, ensuring that security is maintained, that new requirements are introduced seamlessly and that any temporary friction is mitigated.

We recognise that the Bill has been proposed on an expedited schedule, and that hon. and right hon. Members attach great importance to data security, so I would like to reassure the House that the Bill contains measures to ensure that the permitted use of the data it facilitates is discretionary and specific. The Bill does not create any additional powers to collect data, and it applies only to the public bodies specified and only where those public bodies are satisfied that the data use would support a Ministers’ functions relating to trade. It creates an offence of unlawfully disclosing information, and ensures that data sharing remains subject to general data protection regulation and Data Protection Act protection. Regarding the expedited schedule, I should emphasise that all these measures have already been subject to substantive scrutiny in both Houses during the passage of the Trade Bill, through the relevant clauses, without further amendment. The Bill also contains a sunset clause, which will ensure consistency with the powers being delivered through the Trade Bill.

Clause 2(9) provides the power for a Minister of the Crown to add public authorities to the data-sharing gateway. As this power would include the ability to add devolved Ministers, it has the potential to alter the executive competence of devolved Administrations. In accordance with the Sewel convention, we are seeking consent from the devolved legislatures, and I have written to Ministers in Wales, Scotland and Northern Ireland to begin this process.

[Jonathan Edwards]

I am grateful to the Minister for giving way, and I apologise for intervening on him once again. Is that the reason that the Welsh Government are not specifically included in clause 2? Are the Government waiting for the legislative consent motion to go through, after which the Welsh Government would be included as one of the groups that would be part of the data sharing? What is the reason for the Welsh Government not being included in clause 2?

[Greg Hands]

Actually, I will have breaking news. I think that the Welsh Government have given legislative consent to the Bill this morning. Secondly, we have very good and constructive engagement with the Welsh Government, particularly with Baroness Eluned Morgan in the other place. I might add that we did not have that constructive engagement actually in the other place, but via Zoom. We have had very constructive engagement with the Welsh Government to ensure that we have the ability to work together to manage these aspects. Trade is obviously a reserved power, but it has an impact on devolved competences. For example, the management of highways around ports is firmly in an area of devolved competence, so making sure that the two Governments can work together is extremely important.



During the passage of the Trade Bill, we have undertaken a significant programme of ministerial and official-level engagement with the devolved Administrations. That has enabled us to respond to requests, including those related to data-sharing gateways, to assist them with their devolved functions. As the Trade (Disclosure of Information) Bill replicates clauses in the Trade Bill, I will be making the same two commitments to the devolved Administrations on data sharing that we made during Committee of the Trade Bill in the other place.

First, the data shared under clause 2 will be used by the border operations centre being established by the Cabinet Office to develop strategic insights about the flow of trade and functioning of the border. The Cabinet Office is committed to sharing strategic analysis related to flow of trade where it will support the more effective management of flow through the border. The Cabinet Office will continue to work closely with devolved Administrations to ensure that relevant analysis and information can be shared to support devolved functions relating to trade and management of the border. Secondly, the UK Government commit to consulting the devolved Administrations before any devolved authorities are added to the list of specified authorities that can share data under clause 2.

Regarding the expedited schedule that we are using today, I should emphasise that all these measures have already been subject to substantive scrutiny in both Houses during the passage of the Trade Bill through the relevant clauses, without further amendment. As I said, the Bill contains a sunset clause, which will ensure consistency with the powers being delivered through the Trade Bill.

This Bill is necessary to ensure that Government can use this information properly to minimise disruption at the border following the end of the transition period. It is limited in scope and contains specific safeguards to prevent inappropriate or excessive use of data. It is a procedural but vital Bill to support readiness for the UK to take back control of its borders, minimise any temporary disruption to the flow of people and goods, and support the development of smart processes and frictionless trade that will support businesses and citizens alike. That will, in turn, underpin the delivery of a world- class border fit for the UK’s future as an independent trading nation, protecting our country, strengthening our economy and growing our international trade. I commend the Bill to the House.

--- Later in debate ---

[Greg Hands]

To respond to what I think has been a very constructive debate on Second Reading of this Bill, can I first welcome the tone that has been set? The hon. Member for Sheffield Central (Paul Blomfield) and his neighbour—I think she must be his neighbour—the hon. Member for Sheffield, Hallam (Olivia Blake), made similar points about the passage of the Bill. I have to say that nobody, I think, would be more pleased than I to see the Trade Bill finally reach Royal Assent, as during my previous time at the Department I was here at the Dispatch Box introducing that Bill in the spring of 2017. I am told that the overall passage of the Trade Bill then and now has involved some 130 hours of scrutiny and debate. The hon. Member for Glenrothes (Peter Grant), who did preface his remarks by saying he had not been here to debate for some time, and I understand his reasons for that, may have implied there had been insufficient scrutiny of some of these measures. I can reassure him that there has been very extensive scrutiny. But I do say a couple of things.

[Peter Grant]

I am grateful to the Minister for giving way. Could I just correct his understanding of what I said? I made it perfectly clear that I appreciated that this Bill in another way has had significant scrutiny. My concern is that there might be other emergency legislation on its way through the pipeline that we will not have time to give sufficient scrutiny. That was the point I was making.

--- Later in debate ---

[Greg Hands]

I appreciate the hon. Member’s clarification. It certainly is not my job to outline whatever other legislation may be out there. That would be entirely a matter for the Leader of the House of Commons, who, as we know, made a statement on other legislation earlier this week.

The Member speaking for the Opposition, the hon. Member for Sheffield Central, says that he supports the Bill, he supports the continuity agreements, he supports its procurement measures, he supports the trade defences, he supports the data sharing—but he has used every available opportunity to vote against the Bill. He voted against it on Second Reading, he voted against it on Third Reading and it has been voted against at every available opportunity by the official Opposition and by the Scottish National party as well. He says that the concern is that we might kick the Trade Bill into the long grass. No, we very much want the Trade Bill to get Royal Assent as soon as possible. It has very important provisions in it, such as allowing domestic law to remain amendable for continuity trade agreements and the Trade Remedies Authority. It is a very important piece of legislation.

But I did welcome the hon. Member’s commitment to conclude the Trade Bill by the end of January. I see the current Government Deputy Chief Whip here—the Treasurer of Her Majesty’s Household, my hon. Friend the Member for Pudsey (Stuart Andrew). As a former Government Deputy Chief Whip, I and, as a former Chief Whip of the Opposition, Madam Deputy Speaker, you will know that that is not entirely in the hands of the Government and that, actually, it is very much as well in the hands of the whole of Parliament. But I will take that as a submission to the usual channels that the official Opposition want the Trade Bill to achieve Royal Assent by 31 January, which is what the hon. Member for Sheffield Central said. I will take that as a submission of the Opposition’s intent—good intent—to get it through as quickly as possible.

The hon. Member says he was against CRaG, but I remind him that it was the last Labour Government who introduced CRaG. His boss, the right hon. Member for Islington South and Finsbury (Emily Thornberry), actually voted for CRaG. He also propagated this deliberate confusion about the oven-ready deal. It is quite clear that that referred to the withdrawal agreement that the House of Commons voted on a year ago. I would just ask him: is he going to support the further trade deal, if there is one, with the European Union? We have heard silence from the official Opposition on that.

To turn to the hon. Member for Dundee East (Stewart Hosie), who also had a very constructive tone, in areas of devolved competence we have been clear. I am repeating the same commitments made at the Dispatch Box during the passage of the Trade Bill, including in the Committee stage of the Trade Bill, that he remarked on at the time and he will remember well. I am making those same commitments today. Overall, we wish to work with the devolved Administrations, particularly in areas of devolved competence, where they have a clear role, such as the management of highways, around ports and other things that relate to facilitating trade.

The hon. Member added, notwithstanding that, that he did not want me to think this was a sudden conversion, with him agreeing with the Government trade policy—definitely not. As I have pointed out from the Dispatch Box a few times, the Scottish National party has not supported a single trade agreement proposed either here or in Brussels.

I reassure my hon. Friend the Member for North East Bedfordshire (Richard Fuller) that these are not new measures in any sense. They are taken directly from the Trade Bill. The HMRC powers were published in 2017. The further powers were published in July on Report. We are introducing this legislation purely because the Trade Bill probably will not get Royal Assent before 31 December.

I reassure my hon. Friend that there are safeguards on the data. It is data that is already collected. There is no new disclosure of data. Specific named authorities are discretionary to support a Government Minister’s function in relation to trade. In terms of such things as anonymity, the existing restrictions around the General Data Protection Regulation and the UK Data Protection Act 1998 kick in. On taxation, there are already strong measures in place to protect the data of taxpayers. The Bill is clear that data can be shared only where disclosure would support functions related to trade. It could not be disclosed for any other purposes.

My hon. Friend also asked about a private company performing a function on behalf of a public authority. That is possible, but it would operate under the same restrictions and the discretionary powers would apply—GDPR and so on. He asked me for a Dispatch Box commitment on agriculture and food standards. Our commitment is absolute. The commitment that he and I made individually and collectively in our general election manifesto this time a year ago continues as well.

The hon. Member for Edinburgh West (Christine Jardine) called for an adjustment period, which I think is a new term for a transition period. She is calling for a transition period from the transition period, which would increase uncertainty. The UK is leaving the single market and the customs union on 1 January, and an indeterminate postponement of that would, by definition, only increase uncertainty.

[Stewart Hosie]

Will the Minister give way?

[Greg Hands]

I am going to finish now. The purpose of the Bill is simple: it allows the Government to use data that they already hold, in order to ensure the smooth flow of traffic, goods and people across the UK’s borders at the end of the transition period. The Bill will support better services by permitting data on the flow of international trade to be shared and analysed. The Bill does not create any new powers, but brings forward critical powers that are needed from the end of the transition period to ensure that the Government and public bodies can use the information that they already collect.

We have had a good debate, carried out in an excellent spirit, and I thank all Members for their contributions. My thanks also go to the Government Opposition Whips, of course, who have ensured that the Second Reading has run effectively—particularly under your direction, Madam Deputy Speaker.

[Madam Deputy Speaker (Dame Rosie Winterton)]

That will be it.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).

UK-Japan Comprehensive Economic Partnership Agreement

Greg Hands Excerpts

Wednesday 25th November 2020 Commons Chamber

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I, too, sit on the International Trade Committee and our report outlined the positives in this deal. There were also many things we just could not quantify, because the Government have not given us the figures, or they do not want to do that analysis, so we just do not know how things will pan out in the future. This is the first run at this.

My first point is about the role of parliamentary scrutiny. This is very much the first run and we need to deepen and strengthen parliamentary scrutiny. We have the weakest parliamentary scrutiny of the major bodies that we now want to negotiate with. Japan and the Japanese Parliament will have longer debates, binding votes and a guaranteed vote to accept sections, the European Union will of course be able to have discussions through the negotiations and will vote section by section, and the US will be able to vote section by section on the deal and will be involved in setting up the framework of the negotiations.

[The Minister for Trade Policy (Greg Hands)]

indicated dissent.

[Lloyd Russell-Moyle]

The Minister shakes his head; I am happy to send him a constitutional 101 of all those countries, because the fact is that we have one of the least developed parliamentary scrutiny systems. Of course we do, because we have not done it for 40 years and other countries have developed since then, but we do need to develop, and it is no good the Minister shaking his head on these points.

The other thing I would say is that, although I welcome the Department giving the International Trade Committee a two-week head start on these documents, I have here in my hand just one volume of the documents, and three of the annexes never arrived in time and were only given to my office a few days before they were publicly released. It is all well and good, and I understand these are working documents, but that cannot be a continued pattern for how these things work; we need to be involved earlier, and we need to be involved throughout.

On the content of the deal, let’s be honest: many of the clauses we have heard celebrated today are non-binding or worse, or are being exaggerated. The workers’ rights sections are of course all totally non-binding; the climate change sections are non-binding and weak; the women and trade section—a new section—is all totally non-binding in the agreement. There is no section on consumer standards, and Which? says to me that it has not been involved much at all in these discussions. It believes there need to be whole sections on consumer standards, and the agreement fails to do that.

Also, in many areas there are standstill clauses that embed the current system we have in Britain and do not allow change. For example, there is a standstill clause on the Post Office; that means if a future Government wanted to change their mind on the disastrous privatisation by this Government of the Post Office that put money into their crony friends who bought the shares which then zoomed up—[Interruption.] It is true, and we would not be able to reverse that without renegotiating this deal. That is an inhibition of sovereignty, and that is a problem.

This deal is also reliant on the EU deal. If we do not get an EU deal, there are some clauses in this deal that will not be enacted fully; there is also a danger that the deal might be a green light for offshoring many jobs out of Britain, as there will be an EU-Japan deal and a UK-Japan deal. But if there is no UK-EU deal, businesses will place themselves in Japan because they will access both markets from there. If we do not get that EU deal, this deal could be an offshoring charter.

The TRQs are a scraps-on-the-table deal, under which the EU of course gets first dibs and if there are crumbs left—we hope there will be crumbs left, for a few more years anyway, until we sign the CPTPP—then we can get those crumbs. We cannot get the crumbs beforehand of course; and in terms of developing innovation, businesses cannot rely on them because they do not know what amount of crumbs will be left over. We have heard that Government analysis of the EU-Japan deal conducted when it was signed shows that the deal will have a worse economic outcome rather than a better one: there will be £1.7 billion less in exports with this deal than under the EU deal, and £1.6 billion less in GDP with this deal compared with how much the EU-Japan deal was benefiting us. Those are the Government’s figures, not my figures.

There are also some very dangerous elements on data protection, including voluntary agreements rather than binding agreements, not least in areas such as data protection and the NHS. That should greatly worry many people.

--- Later in debate ---

[The Minister for Trade Policy (Greg Hands)]

This has been an excellent debate, with speeches from 13 Government Back Benchers and six Opposition Members. It is an historic moment, as the Secretary of State outlined. The UK-Japan comprehensive economic partnership agreement is an historic milestone in embracing the opportunities of the UK’s future as an independent trading nation. It shows that economic powerhouses such as Japan—the world’s third largest economy—want ambitious deals with the UK and that it is possible to strike deals that go further and faster than the EU. It not only secures the benefits of the existing EU agreements, which many—and particularly the Opposition—said was impossible, but goes further in a number of key areas such as digital and data, financial services, the protection of geographical indicators and rules of origin. It was negotiated in record time, almost entirely virtually.

[Richard Graham (Gloucester) (Con)]

Will my right hon. Friend give way?

[Greg Hands]

I give way to hon. Friend, who was not able to get into the debate.

[Richard Graham]

I am very grateful to my right hon. Friend. Does he agree that this important free trade agreement is the first of several key UK-Asia goals over the next year, including accession to the trans-Pacific partnership, dialogue partner status with the Association of Southeast Asian Nations, several bilateral market access initiatives and partnership of the climate change summit in Glasgow? Altogether, this will bring alive the determined strategy of global Britain.

[Greg Hands]

My hon. Friend is quite right. He is our trade envoy to the ASEAN region and to a couple of countries there. I was addressing our DIT internal teams in the Asia-Pacific region just this week on the incredible opportunities that this country has there.

The deal was negotiated almost entirely virtually. It deepens the economic partnership between two like-minded island democracies. It reflects our shared values and our shared belief in the fundamental principles of free and fair trade and the importance of playing by the rules. That point was made on both sides of the House, including by the right hon. Member for Warley (John Spellar) and my right hon. Friend the Member for South West Surrey (Jeremy Hunt). This British-shaped deal strengthens ties between the world’s third largest and fifth largest economies and will help to drive economic growth in the long run. The Government are committed to levelling up the UK, delivering opportunity and unleashing the potential of every part of our United Kingdom.

We heard in this debate from two former Trade Ministers: my right hon. Friend the Member for North Somerset (Dr Fox), with his excellent and deep understanding of world trade, and my hon. Friend the Member for Wyre Forest (Mark Garnier) on the importance of the International Trade Committee in scrutinising this agreement. We heard from my hon. Friend the Member for Cleethorpes (Martin Vickers), who again showed that we have proved the naysayers wrong, and from my hon. Friend the Member for Montgomeryshire (Craig Williams) about thriving Wales-Japan trade, particularly in the area of lamb.

My right hon. Friend the Member for South West Surrey, a former Foreign Secretary, described this as a personal triumph for the Trade Secretary; I entirely agree. I can attest at first hand to how much personal effort she has put into getting the team to move forward, including in the early hours of the day. That has been incredibly helpful. My hon. Friend the Member for Tiverton and Honiton (Neil Parish), who chairs the Environment, Food and Rural Affairs Committee, welcomed the fact that the Trade and Agriculture Commission was to be put on a statutory basis. He also pointed out that Japan is the world’s largest importer of agrifood.

[Neil Parish]

Will my right hon. Friend give way?

[Greg Hands]

I am afraid I have too many hon. Members to respond to.

My hon. Friend the Member for Folkestone and Hythe (Damian Collins) has a keen interest, of course, in all matters relating to data. I can tell him that I shall be meeting the Information Commissioner’s Office in the next few weeks. I say to the right hon. Member for Orkney and Shetland (Mr Carmichael) that he was correct when he made the point that the UK-Japan deal would not change the current position in relation to onward transfer of UK personal data from Japan.

My hon. Friend the Member for Huntingdon (Mr Djanogly) made some very important points. He made an important point on services—that it is very important that there is mutual recognition of professional qualifications in deals as we go forward. In recent weeks I have met the architects, the Law Society, the Bar Council and so on.

My hon. Friend the Member for Totnes (Anthony Mangnall) said that Japan’s role as chair of the CPTPP this year was really important for our agenda in 2021. My hon. Friend the Member for Ynys Môn (Virginia Crosbie) said that the deal opened up new opportunities for farmers in her constituency. My hon. Friend the Member for Wakefield (Imran Ahmad Khan) praised the DIT’s outreach to MPs. That has been a priority of the Secretary of State, me and the entire team.

Then we had the entire Conservative team from Stoke, lined up geographically in order, South, Central and North—the sort of line-up that Alan Hudson would have been proud of in the 1970s, in his Stoke City pomp—making the point again and again how important trade is going to be for the future of that great city. We heard from my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) of her business and personal connections with Japan, and her commitment to quality. It has been a great effort. I know how supportive the whole Stoke team has been of the DIT’s efforts.

The hon. Member for Stirling (Alyn Smith) said that the SNP is “pro-trade.” He may not know, but the SNP of course abstained on the original EU-Canada deal. But he is almost unique. There are only two Members in this House who have actually voted against the original EU-Canada deal, and he is one of them, from his time as an MEP. So with all of his praise for that original deal, he is one of only two Members in this Parliament who has actually voted against it. He has fallen into the trap that the SNP fell into last week of praising EU agreements that they actually voted against in the first place.

The hon. Member for Leeds North West (Alex Sobel) spoke about the importance of COP 26 and climate, and slightly ridiculed the idea of our joining the CPTPP. He claimed that Britain owned the Pitcairn Islands. Well, it is not the Pitcairn Islands but the 11 members of the CPTPP that have welcomed the UK’s interest in applying to join—countries such as Japan, Australia, Canada, New Zealand and so on.

The right hon. Member for Warley raised an important point about the unity of liberal democracy, which I have mentioned.

I assure the hon. Member for Coventry North West (Taiwo Owatemi) that no harm will be done to the NHS or NHS data by this agreement, but it does help tech firms and data firms setting up operations in Japan that they do not have to follow local data localisation rules. That is incredibly important for our tech sector.

The hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) spoke about parliamentary scrutiny. He said that Which? had not been involved. I was the guest speaker at Which?’s national trade conversation just last week. He does serve on the Select Committee, but he is not always fully up-to-date with his information.

I have already answered the point that the right hon. Member for Orkney and Shetland raised about data transfer.

The hon. Member for Harrow West (Gareth Thomas) summed up for the official Opposition. He is like the SNP: he never actually supported any of these trade deals in the first place. He did not support EU-Japan. He voted against EU-Canada. He voted against EU- Singapore. So for him to come along today and say that the new UK rolled-over version is somehow inferior to the trade deal that he might have supported in the past—well, a quick check of Hansard revealed that he never supported any of those deals; in fact he actively opposed most of them.

It has often been said that an independent UK would not be able to strike major trade deals, or that at the very least such deals would be bad and take years to conclude. But even in the midst of this terrible pandemic we have proven the naysayers wrong, as my hon. Friend the Member for Cleethorpes also nobly said. We have secured provisions as good as the EU’s on all our objectives and gone beyond them in some key areas, securing vital priorities for the UK.

This deal benefits all parts of our country while protecting our red lines on areas such as the NHS and food standards. It is a sign and a signal that we are back as an independent trading nation, as a major force of global trade, and as a country that stands up for free enterprise and liberal values across the world. Using our newfound independence as an optimistic, outward-looking trading nation, once again we are embracing the golden opportunities ahead for global trade, visibly shown in this UK-Japan comprehensive economic partnership agreement.

Question put and agreed to.

Resolved,

That this House has considered the UK-Japan Comprehensive Economic Partnership Agreement.

Oral Answers to Questions

Greg Hands Excerpts

Thursday 19th November 2020 Commons Chamber

[Mrs Flick Drummond (Meon Valley) (Con)]

What steps the Government are taking to maintain food and farming standards in future trade agreements.

[The Minister for Trade Policy (Greg Hands)]

The Government are firmly committed to our manifesto pledges to uphold our high environmental, food safety, and animal welfare standards. Under the European Union (Withdrawal) Act 2018, our current standards are taken into UK law, and the Secretary of State has now placed the Trade and Agriculture Commission on a statutory footing.

[James Grundy]

Does my right hon. Friend agree that the Government’s actions in strengthening the Trade and Agriculture Commission firmly dismiss the rumours that UK food standards would be compromised as a result of Brexit?

[Greg Hands]

My hon. Friend is absolutely right. Placing the Trade and Agriculture Commission on a statutory footing will ensure that public and industry interests are advanced and protected in Britain’s agriculture and trade policy. As the National Farmers’ Union said:

“This significant commitment to primary legislation on food standards, both in the Agriculture Bill and the Trade Bill, is exactly what we have been calling for.”

[Anthony Browne]

The farmers of South Cambridgeshire are some of the most efficient and environmentally friendly in the country, but they have concerns that they might be undermined in any trade deal by imports that are produced to lower animal welfare or environmental standards. They strongly welcome the Government’s decision to put the Trade and Agriculture Commission on a statutory footing—a move also welcomed by farming and environmental groups across the country. Will my right hon. Friend tell the House what role the commission will play during trade negotiations, to ensure that standards are maintained?

[Greg Hands]

I thank my hon. Friend for that question. He is a reliable supporter of farmers in his constituency. The Agri-food trade and agriculture group will feed in during the negotiations. He also asked about the TAC, and I wish to use this occasion to praise its chairman, Tim Smith, for the excellent work that he has done so far, and in very good time.

[Damian Hinds]

Colleagues across the House welcome the news about the Trade and Agriculture Commission’s statutory footing. It will be a strong voice for our farmers, and it will also provide expert independent advice for this House as we consider the impact of each trade deal on agriculture. When does the Minister expect those amendments to be tabled, and for the Trade Bill to resume its progress?

[Greg Hands]

We plan to table that amendment to the Trade Bill on Report in the House of Lords. The scheduling of business is obviously a matter for business managers, but we intend the Bill to be completed by the end of the transition period.

[Duncan Baker]

I represent a rural constituency, North Norfolk, where farming is the lifeblood for so many. My farmers are delighted about the Trade and Agriculture Commission’s statutory footing, and that move has also been applauded by the National Farmers Union. Will the Minister reassure my constituents that the commission will protect animal welfare and farming standards, and help to allow the farming sector to assess the deals that come forward for that important sector?

[Greg Hands]

I know from my right hon. Friend the Secretary of State how important farming is in Norfolk, in both her constituency and that of my hon. Friend. Farming has a strong voice on the Trade and Agriculture Commission, and the NFU, NFU Scotland, NFU Cymru, the Farmers Union of Wales, and the Ulster Farmers Union are on it. It puts UK farming at the heart of our trade agenda, and allows the sector to help advise on our future trade deals.

[Virginia Crosbie]

I thank the Minister for his answer. The extension of the Trade and Agriculture Commission has been incredibly welcomed by farmers across Ynys Môn, and it shows this Government’s commitment to upholding our high food standards. What feedback has the Minister received from Welsh farmers regarding that move?

[Greg Hands]

My hon. Friend is a strong and passionate voice for Ynys Môn farmers, and the feedback has been extremely positive. Putting the Trade and Agriculture Commission on a statutory footing has been welcomed by NFU Cymru. Indeed, its president, John Davies, said that this

“is a milestone moment and one that should be welcomed by all those who care about our food, environment and high standards of production.”

[Robbie Moore]

Latest figures show that the UK’s agrifood sector is now worth £122 billion to the UK’s economy, and there is plenty of room for growth. As we set out into the world as an independent global trading nation, will my right hon. Friend confirm that, even though we have the weight of the Trade and Agriculture Commission in place, UK agriculture will be at the forefront of his mind as we go forward in future trade negotiations?

[Greg Hands]

My hon. Friend is absolutely right, and—crucially—we would never want UK agriculture to be sidelined from our trade agenda. We need and have UK agriculture fully on board, to take advantage of selling our fantastic British food and drink produce to foreign markets. Already, for the first time in many years, we are selling beef to the US, pork to Taiwan, and we have secured better agrifood protection in our recent UK-Japan trade deal.

[Mrs Drummond]

According to blind tasting, French champagne has nothing on sparkling wine from the south downs. Hambledon, Wickham, and Exton Park are vineyards that produce brilliant wine in the Meon Valley, and we have some of the best produce in the UK. Will our free trade agreement support that burgeoning industry?

[Greg Hands]

I look forward to tasting some of this Meon Valley wine, although I have to say that 9.39 in the morning might feel a little early. Our commitment to promoting British wines is very strong. Among the potential 70 geographical indicators in the UK-Japan comprehensive economic partnership agreement deal are: English wine, English regional wine, Welsh wine and Welsh regional wine. We are in regular contact with WineGB and the Wine and Spirit Trade Association to help to promote this vital industry.

[Stewart Hosie (Dundee East) (SNP)]

After listening to these Whips’ questions, I think I would like some English wine as well, Mr Speaker.

I had a long and detailed discussion with NFU Scotland on Monday. In its words, it is “really worried” about future trade deals. Fundamentally, the UK is a high cost, high food standard regime. It argues that it simply cannot compete with low-cost competition with lower food standards elsewhere. Is it not now time for the Government to change tack, and include chapters on food, animal welfare and standards in trade agreements?

[Greg Hands]

I studied very carefully the hon. Gentleman’s amendment during the passage of the Trade Bill. In many ways, he had an even more extreme amendment than the Labour party in terms of trying to dictate our trade partners’ domestic production standards. That would have killed off a huge amount of our trade with the developing world. He mentions NFU Scotland. I thought I would go directly to the source. I am reading here from The Scottish Farmer, which I recommend he reads. NFU Scotland president, Andrew McCornick, said in The Scottish Farmer only last week, on putting the TAC on a statutory footing:

“This is a huge step forward.”

[Stewart Hosie]

Putting an organisation on a statutory footing is one thing, but protecting food standards is something different. I think the Minister’s answer is what Americans call doubling down on a previous mistake. Let me give an example. UK egg producers simply cannot compete with imported eggs produced where the density of laying hens may be twice that permitted in the United Kingdom. The only way they could do that would be to massively lower food production and animal welfare standards, something we know from the recent Which? survey the public are implacably opposed to. Is it really the Government’s intention to be on the wrong side of food standards, the wrong side of animal welfare, the wrong side of the farming industry and the wrong side of public opinion?

[Greg Hands]

I thank the hon. Gentleman for that question. He mentions the Which? survey. I was delighted to be the guest speaker at the launch of the Which? survey, “The National Trade Conversation”, where we discussed many of these aspects. To be absolutely clear to him again, our commitment that there will be no lowering of standards on animal welfare, food safety and the environment is absolute. I urge him again to get with the trade agenda and listen to NFU Scotland, which says it will

“strive to ensure that the best interests of farming, food and the drink and the public continue to be front and centre of any trade deals.”

That is exactly the right approach being taken by NFU Scotland. I urge him and the SNP to get on board with that positive approach for the first time, please.

[Bill Esterson (Sefton Central) (Lab)]

The Government say that they want to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, but some of its members allow growth hormones, genetically modified food in animal foodstuffs and insanitary conditions for animals. The CPTPP is already in operation, of course, and trade is permitted between its members on the basis of lower animal welfare and food production standards. How does the Minister plan to renegotiate the CPTPP to exclude the lower animal welfare and food production standards it contains, given that existing members of CPTPP say that they will not allow new members to change the agreement?

[Greg Hands]

The Secretary of State and I have told the hon. Gentleman time and again at the Dispatch Box that nothing in any trade agreement prevents this country from carrying out its own domestic regulation. We have been absolutely clear that a lot of the production methods and food standards he describes will remain illegal in this country after 1 January. He mentions CPTPP. I urge him to get on board with a positive agenda. Joining CPTPP, a trading group of 11 countries, including Canada, Singapore and Japan, will be a fantastic opportunity. I am not expecting him to support it, because of course he never supported trade deals with those countries in the first place, but I might hope he could reconsider now.

[Mr Speaker]

Let us head to the Chair of the International Trade Committee up in Scotland, Angus Brendan MacNeil.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

A very good morning to you, Mr Speaker, on the day you have been waiting for: the day of the first report on the UK-Japan comprehensive economic partnership agreement from my Committee. I am sure that you are looking forward to reading it. Indeed, we are hoping to have a debate in your Chamber, Sir, before the end of the Constitutional Reform and Governance Act process—just to let you know.

On food and farm standards, yesterday we heard from Tony Abbott, the former Australian Prime Minister and now adviser to the Board of Trade, who said that when he had an important deal to do with China, he took the state premiers of Australia with him. I wonder whether the Ministers at the Department for International Trade will consider doing the same for important trade agreements, taking the Welsh Minister, Jeremy Miles, the Northern Irish Minister, Diane Dodds, and the high-flying Scottish Minister, Ivan McKee, who might indeed be leader of the Scottish National party and First Minister one day. We need that to happen given that the UK Government are ready to burn particular sheep farming in Wales and Scotland by being outside the 45% tariffs. It is not just our standards, but the standards of our neighbours that are really going to matter for farming.

[Greg Hands]

I thank the Chairman of the Select Committee for that, and I look forward to reading his report. When it comes to the devolved Administrations, we all need to respect the devolution settlement, which is that trade policy is a reserved matter and the UK Government carry out their negotiations on behalf of the whole United Kingdom. It is also right, however, that we consult the devolved Administrations, which is why, since May, when I took over the role of interaction with the devolved Administrations in this Department, I have had six meetings with Minister Ivan McKee. We have the quarterly ministerial forum for trade. I have already described how NFU Scotland, two farming unions of Wales and the Ulster Farmers Union are on the Trade and Agriculture Commission. We also make sure that our trade advisory groups include representatives from the devolved Administrations. Our commitment is clear to negotiating the best possible deals for the whole United Kingdom, while making sure that voices from Scotland and the other devolved Administrations are very much included.

[Antony Higginbotham (Burnley) (Con)]

What steps her Department has taken to ensure that small and medium-sized enterprises in the north-west of England can benefit from the UK-Japan comprehensive economic partnership agreement.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

What assessment she made of the potential effect of the free trade agreement with Japan on the UK’s progress on meeting its climate change commitments.

[The Minister for Trade Policy (Greg Hands)]

The UK-Japan agreement locks in the benefits of the EU-Japan deal, including provisions on climate change such as those that reaffirm our respective commitments to the UN framework convention on climate change and the Paris agreement; those that promote trade in low-carbon goods and services; and those that support co-operation on trade and climate.

[Christine Jardine [V]]

Although I am disappointed with some aspects of the Japan trade agreement, such as the provisions on data, I am heartened that there is no investor-state dispute settlement clause in the new UK-Japan FTA, as ISDS has been used by large corporations to sue Governments over environmental regulations on issues such as water pollution, deforestation and fracking. Will the Minister confirm that, to protect our natural environment, the UK will not seek such an arrangement with either Japan or any other new trading partners after Brexit?

[Greg Hands]

I thank the hon. Lady for that question. I ought to add first of all that we really welcomed the announcement that Japan made on Monday, in advance of COP26, that it will be seeking to become carbon neutral by 2050. On her question about ISDS, I will be frank. This country is already party to ISDS with dozens of agreements, but let us recognise that the UK has never lost a case brought against it in ISDS. It is something that is there as much to protect British businesses trading abroad as it is for foreign investors in this country, so her alarmism about ISDS is misplaced.

[Fay Jones (Brecon and Radnorshire) (Con)]

What steps her Department has taken to ensure that (a) farmers and (b) food producers in Wales can benefit from the UK-Japan comprehensive economic partnership agreement.

[The Minister for Trade Policy (Greg Hands)]

The UK-Japan CEPA will benefit farmers and food producers in Wales through lower tariffs than would have been the case without an agreement. It also allows more UK goods to access preferential tariffs than under the EU-Japan agreement, thanks to new rules of origin. New protections for more iconic Welsh food products may also be possible, including for Welsh lamb and coracle-caught sewin.

[Fay Jones]

Twelve Welsh geographic indicator products have been protected in the UK-Japan deal on which I warmly congratulate the Department. I am particularly pleased to hear the Minister mention Welsh lamb. Can he reassure me that those products will be respected and protected in future trade deals, particularly with the US and Australia?

[Greg Hands]

My hon. Friend is absolutely right. There is the potential inclusion of around 70 geographic indicators, 12 of which are from Wales—she is quite right—including Welsh beef, Welsh lamb, Welsh wine, cider, perry, Caerphilly cheese, Carmarthen ham and others. One of our key objectives is to be able to sell Welsh lamb into the United States—British lamb overall is not currently allowed into the United States—but we will be fighting to get an improvement in Welsh lamb exports around the globe.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

What recent progress she has made in securing the rollover of EU trade agreements with non-EU countries.

--- Later in debate ---

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What recent discussions she has had with UK trade partners on including provisions on human rights in future trade deals.

[The Minister for Trade Policy (Greg Hands)]

This Government have a strong history of promoting our values globally, including human rights. While our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including on human rights. We will not compromise our high standards in trade agreements.

[Cat Smith]

In September, the UN said that the Saudi airstrikes in Yemen had led to

“a consistent pattern of harms to civilians”

unlike our own Government who said in July that there was no such pattern and therefore it was lawful to resume arms exports. Can the Minister tell me how his Government have looked at the same evidence as the UN and arrived at such vastly different conclusions?

[Greg Hands]

May I remind the hon. Lady, as the Secretary of State said earlier in response to a question from the right hon. Member for Islington South and Finsbury (Emily Thornberry), that the UK has one of the most rigorous arms control regimes in the world? We follow the consolidated criteria at all times. On trade agreements, I ask her to judge us on our deeds and not always on our words. In terms of the trade agreements that we have rolled over, there has been no diminution of human rights clauses in any of those agreements.

[Joanna Cherry (Edinburgh South West) (SNP)]

What steps she is taking to simplify the process of (a) exporting and (b) transporting UK goods around the world.

--- Later in debate ---

[Bambos Charalambous (Enfield, Southgate) (Lab)]

Can the Minister tell us how many trade agreements due to take effect on 1 January 2021 contain explicit human rights clauses?

[The Minister for Trade Policy (Greg Hands)]

I can tell the hon. Gentleman that there is no change in the effect of the existing EU trade deals when it comes to human rights and the role there of the UK agreements. I would urge him to look at those agreements and study the reports that have been produced comparing the agreements with the original.

[James Sunderland (Bracknell) (Con)]

  May I simply ask my right hon. Friend for reassurance that our overseas territories will be fully factored into all future trade deals and continuity agreements?

[Greg Hands]

I thank my hon. Friend for that question. In fact, I am meeting the overseas territories on this very subject next week. You in particular, Mr Speaker, will be impressed by the Secretary of State meeting Fabian Picardo, the Chief Minister of Gibraltar, only last month on this. Getting our overseas territories participating in the UK independent trade agenda is very important. We recognise fully the constitutional responsibilities we have for the OTs and we work closely with them to ensure that their interests are represented.

[Chris Bryant (Rhondda) (Lab)]

  The average sheep pregnancy lasts 152 days, so tupping for next spring’s flocks in Wales has already happened in the autumn. The Minister referred earlier to Welsh lamb being protected in Japan, but 50% of Welsh lamb goes to the European Union, so the big issue is knowing what will happen on 1 January for Welsh lamb. I do not want to have a go at the Government, but I do just want them to get a deal so that Welsh lamb will not be priced out of its single biggest market across the whole of the European Union.

--- Later in debate ---

[Andrea Jenkyns (Morley and Outwood) (Con) [V]]

Businesses in Morley and Outwood are keen to reap the rewards of our independent policy once we end the transition period. What is my right hon. Friend’s assessment of the new regional comprehensive economic partnership, and how are the Government planning to extend Britain’s influence in this specific region for the benefit of all small and medium-sized enterprises around the country?

[Greg Hands]

We follow RCEP quite closely, but we are looking forward to making our application to join the comprehensive and progressive agreement for trans-Pacific partnership, or TPP-11, trading group in the new year. This is an excellent trading group. Its 11 countries are a mix of like-minded western trading nations such as Japan, Australia, New Zealand and Canada, as well as more developing nations such as Vietnam and Peru. There are great opportunities for all of us, including my hon. Friend’s Morley and Outwood businesses.

[Kerry McCarthy (Bristol East) (Lab) [V]]

There are reports that the Government plan to remove anti-dumping duties on imported bicycles at the end of transition, leading to a flood of cheap imports from China, which would be devastating for UK bike manufacturers. Can the Minister tell me what proportion of the domestic market consists of bikes made in the UK and confirm that if it is more than 1%, anti-dumping duties should remain?

Continuity Trade Agreements: Parliamentary Scrutiny

Greg Hands 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.

[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.]

[Mr Speaker]

Order. I granted the urgent question in order for the question to be heard, but I cannot hear the Minister’s reply. I do not want a dialogue all the way through, please. I grant them on the basis that there is a need to listen to what is being said.

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[Greg Hands]

The Vienna convention has been around for a long time, and I mentioned that many agreements were provisionally applied by the European Union. I specifically mentioned the CARIFORUM agreement with the Caribbean Community countries and the Dominican Republic, which is also of course a Caribbean country. The reason I mention it is that it has been provisionally applied for the past 12 years. It was signed by the last Labour Government. If the right hon. Lady was happy with something signed by the previous Labour Government that is still provisionally applied today, she is making a bit of a mountain out of the remaining days that we are adding to the process, given the fact that that has been provisionally applied for 12 years. Kenya is a new deal; it is not the continuity of the pre-existing deal.

What steps are we taking? We are stepping up our efforts and working extremely hard. When will UK businesses be told? We are telling businesses all the time about the deals that we have done and landed.

The right hon. Lady mentioned Ghana. There is a deal on the table; it replicates the EU agreement and is consistent with the EU-Ghana stepping stone deal applied in 2016. We are not asking Ghana to do anything that it is not already doing.

The right hon. Lady said in her letter to the Secretary of State on 10 November, which she referred to, that representatives of countries from Cameroon to Montenegro have been communicating with the shadow International Trade team. I do not know whether it is quite right for the shadow Secretary of State to be correspondingly directly with our negotiating partners during negotiations that we have been carrying out on behalf of the whole country. I would urge her in the interests of transparency to release all that correspondence with our negotiation opposite numbers, which she referred to in that letter.

It is ironic that the right hon. Lady invokes Ghana, given the amendments to the Trade Bill that she supported on other countries’ domestic production standards. The very exports that she is so worried about would have been prevented under those Labour amendments from entering the country in the first place.

The irony in Labour Members complaining that we have not yet rolled over all these EU agreements is this: they did not support these agreements in the first place. They voted against EU-Singapore, they abstained on EU-Japan, and they split three ways on EU-Canada, so they are complaining about agreements not being rolled over that they never supported in the first place.

As we know, Labour has moved on from the right hon. Member for Islington North (Jeremy Corbyn) to the right hon. and learned Member for Holborn and St Pancras (Keir Starmer). The right hon. Member for Islington South and Finsbury is caught between them both, first geographically and now on policy. She cannot escape from this: when it comes to trade and trade agreements, successive Labour leaders cannot decide whether they want these agreements or not. In short, they are in complete chaos, and their approach deserves to be dismissed.

[Marco Longhi (Dudley North) (Con) [V]]

I thank the Minister for his detailed and full responses. With more trade equating to more jobs in Dudley North and across the country, will my right hon. Friend update the House on the upcoming trade deal with Mercosur countries in the light of the recent Joint Economic and Trade Committee with Brazil?

[Greg Hands]

I thank my hon. Friend for that excellent question. I am aware of his background—I think he worked for five years in Brazil and knows the market extremely well. Mercosur is, of course, a very important partner for the United Kingdom, and there are significant opportunities for British business to do more trade, including with Brazil. Just last week, the Secretary of State and the Under-Secretary of State for International Trade, my hon. Friend the Member for North East Hampshire, were pleased to host their first Joint Economic and Trade Committee with Minister Fendt from Brazil. They spoke about success to date in financial services and food and drink sectors. As there is not an EU-Mercosur deal in effect, any future UK-Mercosur deal is not within the scope of this programme.

[Stewart Hosie (Dundee East) (SNP)]

The problem here is not simply the incomplete deals; it is the process we are following, which is not fit for purpose. MPs have no ability to vote to amend our negotiating mandate. As the Minister said, the Government report voluntarily, normally at the end of a negotiating stage to tell us that everything is great, but with no information about obstacles overcome or new obstacles emerging. Perhaps towards the end of a negotiation, the negotiators go into a tunnel from which no information emerges unless it is leaked to provide leverage, which is profoundly unhelpful. We are then offered a vote on a short take-it-or-leave-it debate—again, with no ability to amend or to reflect or represent constituents or sectoral interests. Finally, we find out, normally from the foreign press, as was the case with Switzerland and Norway, that the deal is not what the Government trumpeted it to be.

I ask the Minister, briefly, what action will he take to expedite the outstanding deals? What action will he take to mitigate the potential tariff and quota costs on some £80 billion of trade? More importantly, what action will the Government take because CRaG is not fit for purpose and we need a new system that allows MPs scrutiny and the ability to amend?

[Greg Hands]

I thank the hon. Gentleman for the rather more thoughtful questions than those of the official Opposition. Of course, to be fair to him, he voted against CRaG. In fact, he, I and the right hon. Member for Islington South and Finsbury (Emily Thornberry) were all elected in the same year, 2005. He voted against CRaG, which is fair enough, and the right hon. Member for Islington South and Finsbury and I voted for it. I can understand his consistency in being opposed to the process. However, we are confident that it represents a robust way of ratifying trade agreements and of Parliament having its say.

Not only that, but we have added to the CRaG process by publishing a scoping analysis and a likely economic impact assessment in advance of the deal, made written ministerial statements after each round, and then publishing an impact assessment when the deal is finally done which gets sent off to the International Trade Committee and the EU International Agreements Sub-Committee in the other place. We have gone far further than CRaG.

I will also say this about SNP Members. Once again, they are complaining about these deals not being rolled over, but they are all deals that they have either not supported or abstained on. They abstained on EU-Japan. They abstained on EU-Singapore. They are against EU-Canada. They are against EU-South Africa. They are against EU-Korea. In fact, I have gone back 15 years, and I cannot find a single trade deal that the SNP has ever supported or voted for, so it is a bit rich for the hon. Gentleman to come along today and say that the deals have not been rolled over—none of which he supported in the first place. The SNP is anti-trade, it is hellbent on breaking up our Union and it is against Scotland’s best economic interests.

[Chris Grayling (Epsom and Ewell) (Con)]

Listening to both the parties opposite, given how important free trade is for prosperity, I say thank goodness we are the ones in government. I commend my right hon. Friend and his colleagues for the work they have done in making as much progress as they have. I am confident that they will complete that progress in the time that remains.

As we head into 2021 and seek to negotiate another new round of free trade agreements, I ask my right hon. Friend to ensure that not only are we champions of free trade, but we set environmental sustainability at the heart of the negotiations. Those are global challenges that must be reflected in our commitment to free trade.

[Greg Hands]

I thank my right hon. Friend for his interest in this area. The UK’s new independent trade policy is designed to be very environmentally friendly. That occurred in the Secretary of State’s speech to the World Trade Organisation in the spring. The UK global tariff that we have published reduces import tariffs, or eliminates them entirely, on 104 environmental goods entering the UK, including things such as steam turbines. We have gone significantly further than the common external tariff of the European Union. When it comes to our negotiations with future trade partners, the US, New Zealand and Australia, we have committed to promoting trade in low-carbon goods and services, as well as supporting R&D, innovation and science in sectors such as offshore wind, smart energy, low-carbon advisory services and energy from waste.

[Mr Speaker]

We are heading to Scotland with the Chair of the Select Committee.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

The International Trade Committee first reported on the roll-over of trade deals in 2018. Hon. Members probably remember that we were told then that all the agreements would be signed about a minute after midnight on 29 March 2019. It is a huge concern that we still have not done 15 of those deals—indeed, with 44 days to go, the biggest trade deal with the EU is still uncertain. Is it not the truth that jobs, businesses and communities need to be better served by the Government in their work associated with Brexit and these incomplete trade deals? It is time for the Government to get their act together, and quick.

[Greg Hands]

I thank the hon. Gentleman for that question. I remember appearing before his Select Committee during that inquiry in 2018, which I know he will remember well, too. The fact of the matter is that we have done roll-over deals with 52 countries. That is a very strong achievement and represents some 74% of the value of trade with non-EU countries that we set out to secure agreement with at the start of the trade continuity programme, which was when he did his inquiry. We are working flat out at the moment. He will know that just in recent weeks we have signed deals with Ukraine on 8 October, Côte d’Ivoire on 15 October and Japan on 23 October, and we signed an agreement in principle with Kenya on 3 November.

[Alexander Stafford (Rother Valley) (Con)]

I am glad that the right hon. Member for Islington South and Finsbury (Emily Thornberry) raised Ghana, because that is what I am concerned about. The Ghanaian contention that the deal on offer is not compatible with the Economic Community of West African States simply does not stack up in my opinion. Will my right hon. Friend confirm that Ghana’s deal with the EU is compatible with ECOWAS and our deal replicates the EU deal exactly?

[Greg Hands]

I thank my hon. Friend for his keen interest in Ghana, which is an interest I share. I went with the Westminster Foundation for Democracy in 2009 to help train up Ghanaian politicians. It is a country that I have kept a keen interest in for the past 11 years. There is a deal on the table. It replicates the EU agreement, gives full duty-free, quota-free access to our market and is consistent with the EU-Ghana stepping stone deal applied in 2016. There is no evidence that that existing EU deal has damaged Ghana’s relations with its ECOWAS neighbours.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]]

I am surprised that the Minister keeps evading the whole thrust of the urgent question he was asked. Why is he so terrified of parliamentary scrutiny? He can talk about chaos on the Labour side, but chaos and confusion reign in No. 10. There is chaos and confusion in our relationship trying to get an agreement with the European Union as we leave. What is wrong with this Government? I am a member of the Committee on the Future Relationship with the European Union, which is being abolished just when we need it for parliamentary scrutiny. Why are this Government so terrified of being responsible and accountable to this House?

[Greg Hands]

I just remind the hon. Gentleman, because he was definitely in the House in 2010, that the CRaG process, which was set up by the last Labour Government and which I strongly suspect he voted for, is exactly the system of parliamentary scrutiny that we are using as the basis for these continuity trade deals now. Not only that, but, as I have already outlined, we are building on the CRaG commitments with additional reports and additional involvement from the International Trade Committee and the House of Lords International Agreements Committee.

[Matt Vickers (Stockton South) (Con) [V]]

Does my right hon. Friend agree that our departure from the EU offers the UK a golden chance to lead the world in modern areas such as services, technology and advanced manufacturing, creating great opportunities for businesses and entrepreneurs in Stockton South?

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[Greg Hands]

My hon. Friend is absolutely right. Services represents about 79% of our GDP and 80% of our employment. The UK, as we know, is a world leader in tech and digital and far ahead of our closest European competitors, France and Germany. We are one of the world’s leading international financial services centres, with best in class industry, infrastructure, talent and expertise. The recently announced deal with Japan goes further than the EU deal when it comes to services, particularly financial services.

[Barry Gardiner (Brent North) (Lab)]

The Minister knows, but did not say, that the current CRaG process was put in place when many other layers of democratic scrutiny were applied to international treaties through the EU, but those layers are now gone. Now that his Department has failed to conclude the roll-over agreements, does he accept that democratic scrutiny needs to reflect not just the convenience of Government, but the proper oversight and challenge of Parliament? Or will he only change his view when he finds himself in opposition?

[Greg Hands]

I think the hon. Gentleman is operating under the misconception that the Government do not want Parliament interested in trade and in trade deals. We are constantly at this Dispatch Box—I, the Secretary of State and the rest of the ministerial team—talking about trade and trade deals. We welcome all the additional parliamentary scrutiny. I remind him that the CRaG process he talks about was set up under the last Labour Government. We have gone further in terms of the reports that we publish and the involvement of Select Committees in both Houses of this Parliament.

[Laura Farris (Newbury) (Con)]

The Prime Minister of Canada went on the record last week to say that the two nations had reached a point where, in effect, a deal with Canada was there for the taking. Does my right hon. Friend agree with that analysis, and can he update the House on the progress of the continuity Canada deal?

[Greg Hands]

We are confident that we will be able to secure an agreement with our Canadian partners for entry into effect on 1 January. It is an incredibly important deal. I remind the right hon. Member for Islington South and Finsbury (Emily Thornberry) that her official position, under the hon. Member for Brent North (Barry Gardiner) at the time, was to oppose doing this deal in the first place. Canada is an important strategic partner for the UK and our 16th largest trading partner worldwide. The UK exports £11 billion-worth of goods and services each year, and we stand ready to secure and expand this trade.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP) [V]]

These deals cut across many devolved powers, so surely there should be a significant consultation and scrutiny role for devolved Parliaments and Governments, learning from experience in Belgium and Canada, for example—or does the Minister share the Prime Minister’s rather extraordinary view that the devolution of powers was a mistake in the first place?

[Greg Hands]

As we know, international trade is a reserved matter. However, it does have an influence on a large number of areas of devolved competence, so it is quite right that we involve the devolved Administrations in formulating our trade policy and our approach to different trade negotiations. In terms of the relations that I have with the Scottish Government, the ministerial forum for trade meets quarterly, involving not only the UK Trade Minister—myself—but the three devolved Administrations. Since May, in the time that I have had the remit for talking with the devolved Administrations, I have met with Scottish Minister Ivan McKee five times.

[Dehenna Davison (Bishop Auckland) (Con)]

Listening to what has been said so far, I am very glad that the Conservative party is in government, because we really recognise the value of free trade, not just in terms of GDP figures but the very real impact it has on our constituents—on the great people of Bishop Auckland and beyond. On that note, does my right hon. Friend agree with the interesting stance of the shadow Secretary of State that we should only make future trade deals with countries with which we have a trade deficit?

[Greg Hands]

The shadow Secretary of State has come out with some extraordinary comments in recent times. That particular one sounded like it was verging on Trumpian mercantilism. My hon. Friend is right that, at a time of growing protectionism, trade provides economic security at home and opportunities abroad. It is a key part of the Government’s levelling-up agenda. Trade is very much part of this country’s future, as are trade agreements.

[Christine Jardine (Edinburgh West) (LD)]

I am afraid I cannot share the relief of the hon. Member for Bishop Auckland (Dehenna Davison) that we have a Conservative Government, because as we move closer to the end of the transition period, my constituents, and constituents and businesspeople all over this country, are increasingly worried about their inability to secure the deals and the clarity needed. As a Scot, I am not a nationalist, so my views cannot be dismissed as wanting to undermine the interests of Scotland in the United Kingdom, so can the Minister give us some indication of where these deals are going to come from, how they will be settled and what scrutiny they will have in this place?

[Greg Hands]

I urge the hon. Member to judge us by our actions, not just our words. We have done continuity agreements with 52 countries, which account for £142 billion-worth of bilateral trade. On top of that, we have done a bespoke bilateral deal with Japan, which is the first stand-alone UK free trade agreement that this country has negotiated in 40 years. She should welcome the actions that we have taken to secure the future of these trade agreements and, in the case of Japan, improve on them.

[Scott Benton (Blackpool South) (Con)]

May I congratulate my right hon. Friend on the progress made so far in agreeing to roll over more than 20 of our existing trade deals? Is he able to reassure the House that the Government have sufficient capacity to continue to get trade deals over the line?

[Greg Hands]

That is a good question, and the answer is simply yes. The trade policy group, which I have been involved with in two different stints at the Department, is an incredibly dedicated, highly professional group of people. It has grown from around 45 at the time of the referendum in 2016 to more than 700. We have taken in private sector expertise—lawyers, experts in trade flows, experts in particular product lines and so on. I am confident that we have the capacity and the right people in place, and I pay tribute to them all for the hard work that they have been doing.

[Dame Diana Johnson (Kingston upon Hull North) (Lab) [V]]

As my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) pointed out, the Canadian Prime Minister said last week that Canada was ready to reach a continuity agreement with the UK but that the British Government lacked the “bandwidth” to finalise the deal and, indeed, that his offer to provide support to the UK’s negotiators had not been taken up. Is not this just an embarrassing situation for the Government, who claim to be promoting global Britain?

[Greg Hands]

I thank the hon. Lady for that question. As I have already said, we are in a good position with Canada. I am confident that we will be getting a deal. I saw those comments by the Canadian Prime Minister, whom I greatly respect. The only other person I have seen make those comments is Winston Peters, the leader of the New Zealand First party. I see it sometimes from the negotiating teams opposite; we need to take what they say in a live negotiation with a pinch of salt.

[Greg Smith (Buckingham) (Con)]

I congratulate my right hon. Friend on the progress that has been made on the continuity agreements that are so vital for our country’s prosperity, not least in sectors such as agriculture, which is so important to my constituency. With that in mind, does he agree that, while the Opposition parties seek to play political acrobatics with trade, it is this Government who are listening and involving farmers in our future and continuity trade deals by putting the Trade and Agriculture Commission on a statutory footing?

[Greg Hands]

My hon. Friend is quite right. I think I am actually due to speak with farmers in his constituency in the coming 10 days or so, which I am looking forward to very much. He is quite right that putting the Trade and Agriculture Commission on a statutory footing means that all the National Farmers Unions from across the United Kingdom will play an active role in assessing trade agreements going forward.

[Dave Doogan (Angus) (SNP) [V]]

Even the Scottish Tory leader’s senior adviser, the former Tory MP for Angus, has said that this Government need a “wake-up call” as we see decisions taken by the UK Government without regard to Scotland. A failure to roll over these FTAs would lead to a tariff and quota disaster for Scotland’s £15 billion food and drink sector. Indeed, with food and drink exports four times more important to the Scottish economy than the English economy, we can see why Scottish producers are horrified at this abject ministerial failure. Why will the Minister not acknowledge this £38 billion crisis? What will he do to fix it for food and drink producers in Scotland?

[Greg Hands]

I think the hon. Member’s phrase was “abject ministerial failure”. We are working hard to roll over all these agreements. I just remind him that these are all agreements that were opposed by the SNP in the first place. It abstained on EU-Japan and EU-Singapore, and it was against EU-Canada, against EU-South Africa and against EU-Korea. He ought to be celebrating the fact that these agreements are not being rolled over, to be consistent with his previous position. We are working hard to make sure that they are rolled over.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Does my right hon. Friend agree that we should continue to follow the significant headway we have been making on a number of these trade agreements, and that we should help great British businesses, such as those in Stoke-on-Trent, to grow jobs by making the most of these agreements?

[Greg Hands]

My hon. Friend is quite right. Both the Secretary of State and I have enjoyed meeting businesses in his constituency—particularly those in ceramics—and right the way across the city of Stoke. We have them on our minds in all our trade negotiations, to ensure that we get new opportunities for the ceramics industry in the Potteries and elsewhere.

[Mr Toby Perkins (Chesterfield) (Lab)]

The Minister seems keen to tell us how hard he and his team are working; meanwhile, crucial trade partners such as Canada seem to feel that the Government just have not got their act together and are not giving this the attention it deserves. Does he not realise that what is really important here is that British businesses, which need certainty about what their trading arrangements will be in January, are sat here in the middle of November still no clearer about whether we are going to be able to trade tariff-free with Canada?

[Greg Hands]

I remind the hon. Member that the deals that we have rolled over represent around three quarters of the programme. We have updated businesses, as we have updated this House, after each of those deals to make sure that they are kept apprised. When it comes to Canada, of course, this is a live negotiation. We have contact happening every day with Canada. It is worth remembering that Canada actually walked away from the negotiation in 2019, and did not return to the table until July this year. As soon as Canada returned, we put in place a negotiating team and we got on with it.

[Jacob Young (Redcar) (Con) [V]]

Trade, and the jobs, investment and prosperity it brings, is an incredibly powerful way to level up our country and transform left-behind places such as Redcar and Cleveland. Does my right hon. Friend agree that promoting trade and helping our businesses to export is the best way to rebuild and reshape our economy?

[Greg Hands]

I thank my hon. Friend and he is absolutely right. We have talked very much about the trade policy aspects of this Department. We are engaging very strongly with the US, for example, on steel tariffs. I know that is something his constituents will keep an ongoing interest in, making sure that those unnecessary and counterproductive tariffs are removed. But when it comes to the wider picture, the Department for International Trade more broadly works incredibly hard at promoting both the exports and inward investment that I know will be really important to his Redcar constituents.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

While recognising that negotiating international trade deals is a reserved matter, the Minister will be aware that many of the policy areas included in trade negotiations are devolved to Wales. Considering this, I find it quite incredible that trade deals can be signed without the formal agreement and approval of the Welsh Parliament. Earlier, he alluded that there had been engagement with the devolved Governments, but can he inform the House whether he has received any critique from the Welsh Government about the approach of the British Government to these continuity deals?

[Greg Hands]

I have an excellent relationship with the Welsh Government: first with Baroness Morgan and more recently with Jeremy Miles. The hon. Member is quite right that international trade is a reserved matter, but it does impact with devolved competence. I believe that the Welsh Parliament either has or will be recommending legislative consent to the Trade Bill, which I think is testimony to how well we are working together in the interests of all of the people of Wales.

[Christian Wakeford (Bury South) (Con)]

I appreciate my right hon. Friend’s comments on this topic. I also welcome progress on continuity trade agreements so far as a first step to more comprehensive trade deals in the future. Does he agree that we cannot force countries back to the negotiating table and we must not do any deals at any price?

[Greg Hands]

My hon. Friend is quite right: it takes two to tango, and that is as true for international trade agreements. If the partner does not want to negotiate, of course we will speak with them and use all the levers we have to try to get them to the table, but at the end of the day, if the partner does not want to negotiate, I am afraid that can happen.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

If the Government were in control of this situation and favoured transparency, they would have come to the House to make a statement, not be forced to via an urgent question. British businesses need to know how existing arrangements will be preserved. The Government’s negligence is leaving them susceptible to disruption to as much as £80 billion of global trade. I have listened carefully to the Minister and, as expected, it was lacking in any detail. When will the Government be able to share any real detail on how we are going to avoid this imminent risk to jobs and livelihoods?

[Greg Hands]

I would point the hon. Member to the agreements that we have signed in recent weeks with Ukraine, with Côte d’Ivoire and with Japan, with Kenya agreed in principle. We are looking forward to further agreements in the coming weeks that I hope she will welcome and support.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

Could I congratulate my right hon. Friend again on the Japan free trade deal his Department has just concluded, which has created new opportunities, such as for Lucideon in my constituency of Stoke-on-Trent Central? Does he share my enthusiasm about the deal as an important pathway to the comprehensive and progressive agreement for trans-Pacific partnership?

--- Later in debate ---

[Greg Hands]

My hon. Friend—it is good to have so many Stoke MPs here, from our Benches, asking questions—is quite right. The CPTPP represents a fantastic future for this country, and I hope that we are able to apply for formal accession in early 2021.

[Theresa Villiers (Chipping Barnet) (Con)]

Our SPS—sanitary and phytosanitary—rules are based firmly on human health concerns, but they can have important animal welfare benefits by barring the import of food produced according to controversial intensive farming methods that would be unlawful here. With that in mind, will the Minister confirm that our trade deals will retain the ban in this country on ractopamine in pork and bovine somatotropin in dairy produce?

[Greg Hands]

I can confirm that on 1 January under the European Union (Withdrawal) Act 2018 all of those existing rules will be transferred over to the UK statute book, and those bans will be maintained, which fulfils the manifesto pledge made by my right hon. Friend and I both individually and collectively last December.

[Stephen Farry (North Down) (Alliance) [V]]

I recognise that Northern Ireland is part of UK trade policy. However, under the protocol, while our goods can freely circulate across the European Union, we are not covered by the EU’s free trade agreements. There are major concerns that companies that are part of the supply chain for EU products will now be excluded from those processes due to rules of origin complications. This is a major problem for our agrifood industry in particular, especially the dairy sector. Will the Minister undertake to give urgent consideration to these complicated issues?

[Greg Hands]

I greatly respect the work the hon. Gentleman has done in Northern Ireland over recent years, and he and I met in a separate capacity last year to discuss some of these problems. He is right: it is clear that under the withdrawal agreement and the protocol Northern Ireland is covered by UK free trade agreements, which is absolutely the right position to be in. Rules of origin complications with EU trade agreements are part of the active negotiation between London and Brussels at this very moment.

[Fay Jones (Brecon and Radnorshire) (Con)]

John Davies, who farms at Merthyr Cynog in my constituency, sits on the recently created Trade and Agriculture Commission in his role as president of NFU Cymru. He will be a loud voice for Welsh farmers, not holding back in his advice to Government. Does the Minister agree that having experts such as John scrutinising the detail of trade deals ensures they benefit Welsh farmers and proves this Government’s commitment to backing British farming?

[Greg Hands]

My hon. Friend is absolutely right, and farming in Wales is so important that we have put its representatives on the Trade and Agriculture Commission not once, but twice; both NFU Cymru and the Farmers’ Union of Wales are on it. We have excellent interactions and hear their feedback at the Trade and Agriculture Commission, and we look forward to that continuing when it is put on a statutory footing.

[Hywel Williams (Arfon) (PC)]

Wales has an exporting economy, with exports which in 2019 were worth £338 million with Turkey and £234 million with Canada. What assurance of stability can the Minister give Welsh exporters to these countries that they can continue their businesses next year?

[Greg Hands]

I thank the hon. Gentleman for that question, and he is right to highlight the importance of Welsh exports. They are very important to us at the UK Department for International Trade, and we are working very hard to get continuity of our trading arrangements with Canada—the CETA.

[Sir Edward Leigh (Gainsborough) (Con)]

There is one section of the community for which trade deals are literally a matter of life and death for their business, not just some minor tweaking of tariffs and regulations. In the 1930s people could walk all the way from Lincoln to Grimsby across derelict farmland because of the import of cheap American wheat, so in the rush to conclude free trade deals will my right hon. Friend assure me that there will be a gold standard process in this House, equivalent to our old European Scrutiny Committees, so that Members of Parliament who represent rural seats can hold the Government to account and protect our superb farming industry?

[Greg Hands]

My right hon. Friend represents his rural Lincolnshire constituency very effectively. There is no rush to complete future free trade agreements; he mentioned particularly the United States and there was no rush to do that. It is very important that we get the right agreement rather than a quick agreement, and I have already detailed how our commitments to parliamentary scrutiny go well beyond the previous Government’s CRaG procedures; we have added a lot to that.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all he has done so far to secure the trade agreements, but may I ask him a question about the agrifood sector? Does the Minister agree that it is essential that we have the detailed proposals not simply to scrutinise, but also to get some indications to businesses who do not yet know how to plan for January, and whose position in limbo must come to a very speedy end? When does the Minister believe that that information will be available for those businesses?

[Greg Hands]

As soon as we conclude one of these continuity agreements and sign it, we will seek to publish it as soon as possible and start the CRaG process. The hon. Gentleman asks about the agrifood sector, which is incredibly important to Northern Ireland. I have met representatives of the sector on various occasions. I suggest that he looks, as I am sure he has done, at the UK-Japan deal and the potential protection for about 70 geographic indicators in that deal, as a sign of our commitment to the whole agrifood sector.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

The potteries were founded in Burslem by Josiah Wedgwood. They are known worldwide for their world-leading ceramic tableware, which, sadly, those on the Labour Benches forgot about. As the proud Member for Stoke-on-Trent North, Kidsgrove and Talke and the chair of the all-party group for ceramics, can I ask my right hon. Friend whether he agrees that deepening our trading ties with countries that share our values, ideals and high standards is essential for growth in the UK ceramics industry?

--- Later in debate ---

[Greg Hands]

My hon. Friend is quite right. We have gone through Stoke from south through to central and now to north. I reiterate our commitment to the ceramics industry, ensuring that we break down barriers, and reduce and remove tariffs to our ceramic exports in a way that is consistent with the UK values that I know both he and I share.

[Damian Collins (Folkestone and Hythe) (Con)]

The Minister will know that when new trade agreements or changes to trade agreements can affect other areas of policy, there are, understandably, questions, so I thank him for meeting me on numerous occasions to discuss digital and trade policy. Specifically looking at the EU-Japan trade agreement, will the Minister say whether that agreement will change the enforcement powers for people’s data protection rights? Has his Department already consulted, or does it intend to do so, directly with the Information Commissioner on that?

[Greg Hands]

I thank my hon. Friend for all his interaction. As the former Chairman of the Select Committee on Digital, Culture, Media and Sport, he has genuine expertise in this area and has continued his interest in it. He mentioned the EU-Japan trade agreement, but I think he is really asking about the UK-Japan trade agreement and the difference with the EU-Japan deal. If I commit to write to him in some detail on exactly where those differences are, he will be able to see them. I expect the report that is being submitted to Parliament will look at those differences in some detail.

[Clive Efford (Eltham) (Lab)]

Is it not true that the Government have just overstated the ease with which they would be able to do all this? We were going to have 40 trade deals on 29 March 2019, and we were going to have a trade area bigger than the EU, which was going to include China and the US. Prime Minister Trudeau said the talks hit the buffers because of the inability of the UK Government to negotiate trade deals—that is the truth of it. What are the Government going to do to ensure not only that we get these rollover trade deals dealt with, but that we have proper scrutiny of them?

[Greg Hands]

I am glad the hon. Gentleman made his question as long as he did, because it gave me the chance to check the voting record on the Canada deal he just mentioned. He actually voted against it when the vote came to the House of Commons, so it is a bit rich of him now to complain it is not being rolled over.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con) [V]]

Will my right hon. Friend join me in congratulating the officials and Ministers in his Department on achieving 74% of the continuity agreements we wanted with non-EU countries? Will he further update the House on the progress he intends to make with the other 26%?

[Greg Hands]

Mr Speaker, I think I will use a cricketing analogy: we are 74 not out.

[Rachael Maskell (York Central) (Lab/Co-op)]

At a time when our economy is in peril and just 44 days before we leave the transition arrangements, we still have no agreement with the EU. Fifteen continuity agreements are yet to be agreed, breaching the Government’s own deadline which the Prime Minister clearly said was immoveable, yet the Trade Minister comes to the Dispatch Box and says that he will extend provision into January. Will he tell businesses what will happen to their trade with those 15 countries on 1 January, so they can now make their plans?

[Greg Hands]

It is relatively straightforward. If the agreement is made with the remaining countries and there is not the time to put it through the CRaG process before 31 December, it has the potential to be provisionally applied. The terms of that agreement will remain on 1 January in accordance with the existing EU deal going into that time, so there should be no interruption for businesses. Parliament will still have the opportunity, under the CRaG process, to give that agreement full scrutiny.

[Simon Jupp (East Devon) (Con)]

I commend the great work of the Minister and the Department so far in securing trade deals across the world. West country produce is already the pride of a nation and it is proudly found on shelves from Stornoway to Sidmouth. Does he agree that by continuing the great work to break down the barriers to trade, we can export the best of the south-west and promote the finest standard of produce across the world?

[Greg Hands]

I spent part of my childhood in the south-west, and I remember only too well the quality of its produce in the agrifood sector. We are negotiating better market access in markets such as Taiwan, China and the United States, where we have just had our first shipment of British beef this summer. We are also reducing tariffs in important areas such as the dairy sector, for example, on cheese, in some of these markets. This is part of a continuous engagement for UK agriculture.

[Mr Speaker]

We have a bad connection with Marion Fellows—we have tech problems—so we are going to go to Dr Neil Hudson.

[Dr Neil Hudson (Penrith and The Border) (Con) [V]]

I am pleased that the Government have strengthened the Trade and Agriculture Commission, announced more robust parliamentary scrutiny of trade deals and provided reassurance that products such as hormone-treated beef and chlorine-washed chicken will remain banned in the UK. Does my right hon. Friend agree that writing specific unacceptable products such as those, and others such as ractopamine-fed pork, the excessive use of microbials and the use of growth promoters, into specific chapters in trade deals would be a practical way of ensuring that high standards are encouraged globally? Does he agree that such an approach would make it clear to both parties in trade deals that those products are not going to be traded, allowing other, acceptable products to be encouraged and therefore driving up animal welfare standards globally?

[Greg Hands]

I thank my hon. Friend for that question. I think he is asking me to ban things that are already banned and put it in writing. Let me make it clear that we remain absolutely committed to our high food safety, environmental and animal welfare standards, on which he and I fought the last general election. We have ensured that the law offers protections for the existing standards, so that they will remain in place. Under the European Union (Withdrawal) Act 2018, the products he mentioned will remain illegal after 1 January.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

As chair of the all-party group on Africa, I wish to emphasise the importance of trade between the UK and Africa. By offering Ghana levels of market access that differ from those of its neighbours in the regional trading bloc ECOWAS—the Economic Community of West African States—the Government are forcing Ghana to choose between new trade barriers within ECOWAS or tariffs with the UK, which would plunge Ghana’s banana and cocoa producers, many of whom are already in poverty, into even more extreme poverty. So instead of bullying countries such as Ghana, will the Minister work with African countries to agree deals that promote trade and fair, sustainable economic development?

[Greg Hands]

I know, from previous meetings that the hon. Lady and I have had, her passion and commitment to the UK’s trade with Africa. On Ghana, I look at the situation closely, as does the Under-Secretary of State for International Trade, my hon. Friend the Member for North East Hampshire (Mr Jayawardena). We are clear that there is a deal on the table. It replicates the EU stepping stone agreement. There is no evidence to suggest that the EU stepping stone agreement in any way discriminates in respect of Ghana’s trade with the rest of its ECOWAS partners. We have also to be clear that the UK will follow World Trade Organisation rules on discrimination between economies of similar levels of development when it comes to trade agreements. That is very important, for example, for the generalised system of preferences. The best thing for us to do is for the UK and Ghana to sign that deal that is on the table.

[Martin Vickers (Cleethorpes) (Con)]

It is clear from the meeting that I held with the Minister’s colleague, the Under-Secretary of State for International Trade, my hon. Friend the Member for North East Hampshire, last week that any accusation of foot dragging in dealing with these continuity agreements is clearly not correct. I am working with businesses in my constituency to take advantage of the widening trade opportunities. Does this Minister agree that Members from across the House should be working with businesses to ensure that we maximise the benefits of the trade policies being pursued?

[Greg Hands]

My hon. Friend is right; we can have an esoteric discussion about trade policy, tariffs, quotas, automated tariff quotes and all this kind of stuff, but it must work for our consumers and our businesses. The whole point of doing trade policy is to make sure it boosts UK exports and inward investment in this country, and does good work for UK trade, consumers and businesses in constituencies such as his.

[Wendy Chamberlain (North East Fife) (LD)]

While the Department for International Trade attempts to strike trade deals, its counterparts in the Department for Business, Energy and Industrial Strategy are using the United Kingdom Internal Market Bill to expand the powers of the Competition and Markets Authority. There is a growing concern that the Office for the Internal Market could be used to challenge the devolved Administrations by, for instance, American investors with an interest in a trade deal. Can the Minister confirm whether he or the Secretary of State have had any discussions with their foreign counterparts over the role of the expanded CMA and the Office for the Internal Market?

[Greg Hands]

Of course the whole Government take a common approach to the United Kingdom Internal Market Bill. It is important for our trade partners to know that the UK has a well-functioning and efficient internal market. The measures that have been taken are necessary to protect the integrity of the UK’s internal market, which is extremely important for Scottish businesses, particularly if an agreement with the EU cannot be reached. I commend the United Kingdom Internal Market Bill to the hon. Lady for her further consideration in both Houses of this Parliament.

[Rob Butler (Aylesbury) (Con)]

Businesses in my constituency trade heavily with other nations, and obviously they want to get deals that will enable them to continue to do so as easily as possible, but they also know that deals have to be fair to both parties, whether that is two companies or two countries, so does my right hon. Friend agree that we should stand firm for British interests and not just accept any terms that are offered?

[Greg Hands]

My hon. Friend is absolutely right. Even in the negotiation of continuity agreements, it is important to ensure that we get the best possible deal for British consumers and British businesses, including those in his Aylesbury constituency.

[Tony Lloyd (Rochdale) (Lab) [V]]

The Minister glossed over a question raised by my hon. Friend the Member for Brent North (Barry Gardiner) earlier. My hon. Friend made the point that the CRaG procedures were established when the European Union was our main negotiating host and the scrutiny came through that process. Does the Minister accept that public distrust of bad trade agreements and public confidence in trade agreements will be established by parliamentary scrutiny, and will he now re-examine whether these procedures are adequate for a modern trading country such as the United Kingdom?

[Greg Hands]

As I pointed out earlier, we have we added quite a lot and gone beyond the CRaG process to ensure that Parliament is incredibly well informed. Over the course of this year, we have had many debates and published many documents, impact assessments, economic assessments and now reports on individual trade agreements. Parliament has been kept very well informed. When it comes to public distrust, the data shows that the UK public remain strongly in support of free trade.

[Felicity Buchan (Kensington) (Con)]

As my right hon. Friend and neighbour knows, I am Scottish born and bred. Will he confirm that we will look to put in place deals that benefit all four nations of the United Kingdom and all regions?

[Greg Hands]

I thank my hon. Friend and parliamentary neighbour for that question. We will always take the time necessary to negotiate the right deals that work for all nations of the United Kingdom and for all the regions of England, including our own region of London, as witnessed by the UK-Japan deal and the importance that that gives to UK financial services, which I know are very important to her constituents and mine.

[Antony Higginbotham (Burnley) (Con)]

I congratulate my right hon. Friend on the work that he and the team at the Department for International Trade have done in signing not only continuity trade agreements but trade agreements around the world that have the potential to benefit the whole economy and, importantly, local businesses in Burnley and Padiham. Can he reassure me that we will continue to work at pace to deliver even more agreements?

[Greg Hands]

I can, and can I just say what a brilliant voice for Burnley my hon. Friend has been in this House over the last 11 months? I can confirm that we are working very hard indeed on the remaining continuity agreements, but let us also recognise how far we have come in the agreements that we have already got.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind) [V]]

Scrambling at the last minute has been a feature throughout the Brexit process, and the UK Government’s approach to trade agreements is no exception. The Minister’s predecessor used to say that the EU trade deal would be the “easiest in human history”, yet that is now a race against time too. Will the Minister launch a full review of the timeline and negotiating strategy for future trade arrangements, so that they are not blighted by the serial incompetence that we have seen over the last four years?

[Greg Hands]

I think the hon. Lady asked about scrambling at the last minute, but we have done deals with 52 countries that account for £142 billion of bilateral trade. That is a huge amount: 74% of the value of those non-EU countries’ trade before the start of this process. We look forward to further continuity agreements in the coming weeks.

[James Sunderland (Bracknell) (Con)]

I welcome today’s update on continuity trade agreements. Does my right hon. Friend agree that the future looks very promising for global Britain, and that we are much better off together as the Union?

[Greg Hands]

I am delighted with the confidence that my hon. Friend has in the UK’s ability to carry out trade going forward. Under the Secretary of State’s leadership, and thanks to the whole team, all the people involved in the programme and an incredibly large amount of hard work, I am confident that we are in a good place today. I appreciate that that is also coming from my hon. Friend and his constituents.

Trade Deals and the NHS

Greg Hands Excerpts

Monday 16th November 2020 Westminster Hall

[The Minister for Trade Policy (Greg Hands)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for Linlithgow and East Falkirk (Martyn Day) for opening this debate, as well as the more than 110,000 members of the public who raised this topic, which is hugely important to us all. There have been a lot of rumours, confusion and misstatements about this subject, so I am more than happy to set the record straight.

The NHS is this nation’s most popular institution, but it is far more than an institution. For more than 70 years, it has been there for all of us, from cradle to grave. It has played a very personal role in all our lives, in some of the most joyful and, indeed, saddest moments. In the midst of this terrible pandemic, the importance of the NHS has become even more acute. I pay tribute to the extraordinary staff up and down our country who are battling the coronavirus outbreak so valiantly and selflessly, and I extend my deepest sympathy to those who have lost loved ones during the pandemic, including, I might add, to myself: my father died of coronavirus on 13 April this year. However, it is thanks to the bravery and expertise of our world-class doctors, nurses and hospital staff in containing the virus that we are able to meet here in this House today, and I am hugely grateful for that.

Let me be very clear: our NHS will not be for sale in any future trade deal with the US or, indeed, in any trade deal at all. For the sake of parliamentary time, I can be very brief—the word “no” is one of the shortest in the language—and say no, not at all and never. Protecting the NHS is a fundamental principle of our trade policy. The NHS, its services and the prices it pays for drugs are not for sale, and we will not agree measures that undermine the Government’s ability to deliver on those commitments. The NHS is not, and will never be, for sale to the private sector, whether overseas or domestic, and no trade deals will ever be able to alter these fundamental facts.

The Government have been consistently clear about our commitment to the guiding principles of the NHS—that it is universal and free at the point of need. As set out in the October 2017 White Paper “Preparing for our future UK trade policy”, the Government will continue to ensure that decisions on how to run public services are made by UK Governments, including the devolved Administrations, and not—this has never been the case—by our trade partners. No trade agreement has ever affected our ability to keep our public services public nor forced us to change the way we run them, and that is not going to change now. Safeguarding the UK’s right to regulate in the public interest and to protect public services, including the NHS, is of the utmost importance. That was, is and will remain the Government’s position.

I turn to the points raised in the debate. The hon. Member for Linlithgow and East Falkirk mentioned two or three points. First, he is right to say that the NHS is devolved in Scotland and that trade policy is reserved. We recognise the fact that trade policy impacts on areas of devolved competence, and that is why I work closely with the Scottish Government to ensure that we have a common understanding. We work well together in those spaces.

The hon. Gentleman mentioned an ISDS threat to public services. The UK is already subject to the ISDS in more than 90 agreements. We have never had a successful claim brought against the United Kingdom through an ISDS court. No ISDS court could overturn Parliament or force any change to the law. This has been stated before, but the Trade Bill refers to the continuity of existing trade agreements; it does not refer to future free trade agreements. The EU does not have a trade agreement with the United States; therefore, the United States is not within the scope of the Trade Bill.

I heard some brilliant speeches from my hon. Friends the Members for Bishop Auckland (Dehenna Davison) and for Watford (Dean Russell). My hon. Friend the Member for Bishop Auckland talked about how the Labour party and others are whipping up fear. That is absolutely correct, and I have seen it in my constituency. At the last four general elections, the Labour party has run on the fact that Charing Cross Hospital will be either demolished or close—the last four! I can report that Charing Cross Hospital is doing very well and, actually, the Secretary of State for Health announced a floor-by-floor refurbishment of the hospital just a couple of months ago. My hon. Friend is absolutely right to say that there has been record investment under this Conservative Government and that trade is the answer to our long-term prosperity.

We had a passionate, knowledgeable and superb speech from my hon. Friend the Member for Watford about his local NHS, which I know quite well. The excellent Watford General Hospital has served my family—they come from Amersham in Buckinghamshire—for two generations. It is a brilliant hospital, and he spoke with great passion about it.

We heard some of the fears from the hon. Members for Birkenhead (Mick Whitley), for Hornsey and Wood Green (Catherine West), for Leicester East (Claudia Webbe) and for Luton South (Rachel Hopkins). I will deal with the question from the hon. Member for Luton South about the CPTPP. In the negative or positive lists, one is expressly allowed to exclude public services that one does not want to be subject to a trade agreement. The UK could and would negotiate specific exemptions in CPTPP for the NHS and other public services that we deem to be important to us. Of course that lies within our rights.

The NHS in Scotland is devolved, as we know, but the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), in his summary, quickly moved on to talking about separation. In almost record time, even by the standards of the Scottish National party, he showed that separation is more to him important than either the NHS or trade.

I turn to my old friend—certainly not my hon. Friend, but he is a friend—the hon. Member for Sefton Central (Bill Esterson). I am not quite sure whether he has noticed the subtle change in Labour’s approach to trade policy as it has moved across north London from the hon. Member for Brent North (Barry Gardiner) to the right hon. Member for Islington South and Finsbury (Emily Thornberry). On drug prices, the UK has a robust intellectual property regime for pharmaceuticals and medical devices. We will not make changes to our IP regime that would lead to increased medical prices for the NHS. Our negotiation objectives—a lot of people have referred to the US’s negotiation objectives, but no one has referred to our objectives, which were published on 2 March—state that the NHS will not be on the table, the prices paid for drugs will not be on the table and the services that the NHS provides will not be on the table.

The hon. Gentleman also talked about a set of dates—he told an incredible story involving the Cato Institute and an astonishing series of dates. He said that he does not believe in coincidences, but perhaps he might believe in conspiracy theories.

As we are an independent global Britain, the Government are working hard to build our trade policy. As set out in the Government’s manifesto and again in our negotiation objectives, the NHS will not be on the table. Decisions on how to run the NHS and all public services are made by UK Governments, including the devolved Administrations, and no trade deal will change that.

[Bill Esterson]

Will the Minister give way?

[Greg Hands]

I am coming to a conclusion.

The UK’s high standards of data protection will be maintained. The Government are clear that health and care data should only ever be used or shared lawfully, treated with respect and held securely, with the right safeguards in place. I am going to leave a few minutes for the response, Mr Stringer. It is absolutely clear that any trade deal could not be ratified without scrutiny by Parliament. There is also a separation between international and domestic law, so any changes made to the NHS through a trade deal would need domestic implementing legislation, just as much as if those changes were to be made without a trade deal. There is no way to sidestep Parliament. The Government will never agree to a trade deal with the US or any other country that risks the future of our national health service or which could undermine the Government’s ability to deliver on our manifesto commitment to the NHS.

There are, however, benefits of trade for the NHS. The whole debate has been focused on fears and threats, but there are benefits. To continue supporting public services such as the NHS, which we all value and from which we all benefit, it is crucial that we have a strong economy. Now that we have left the EU, we find ourselves with a golden opportunity to strike free trade deals around the world, which will help to fuel our economic recovery from covid-19.

In conclusion, the question is asked over and over again, but the answer is not going to change. The NHS is not on the table in any future trade deal. The price it pays for drugs is not on the table and the services it provides are not on the table. The Government will not accept any trade deal that changes our ability to regulate the NHS or any public services, nor will we agree to any measures that would put NHS finances at risk or reduce clinician and patient choice. Scare stories otherwise simply do not fit with the facts. The Government will always put patients and the sustainability of the NHS first.

As an independent trading nation, the UK is reaching out to partners around the world that support our shared values of freedom and democracy and making great trade deals, starting with our friends in the United States, Australia and New Zealand and the deal with Japan that we have already delivered. It is by working together as a global community and embracing values-driven and value-generating trade with like-minded partners that we will be able to beat this dreadful virus and build back a stronger economy to sustain our vital public services, not least our beloved national health service.

Oral Answers to Questions

Greg Hands Excerpts

Thursday 8th October 2020 Commons Chamber

[Brendan O'Hara (Argyll and Bute) (SNP)]

What discussions she has had with her US counterpart on that country’s imposition of a 25% tariff on single malt Scotch whisky.

[The Minister for Trade Policy (Greg Hands)]

The Government take very seriously the punitive US tariffs on UK goods, including on single malt Scotch whisky. We are fighting for the removal of all such tariffs and are pushing for a negotiated settlement to the underlying World Trade Organisation civil aviation cases. The Secretary of State raised these issues most recently with US trade representative Ambassador Lighthizer in September.

[Brendan O'Hara [V]]

Exactly a year ago, the United States imposed 25% tariffs on Scotch malt whisky, devastating exports and threatening thousands of Scottish jobs. Despite the Minister’s Department making the removal of those damaging tariffs a priority, his Government have failed to move their special friend in the White House an inch on these issues. Could he explain exactly why the Scotch whisky industry, apart from being £360 million poorer, is in exactly the same place today as it was a year ago?

[Greg Hands]

I thank the hon. Member for that question. We oppose these tariffs vigorously. We are stepping up talks with the US and we were pleased that in August the US did not extend the tariffs to blended whisky, and actually removed them from shortbread. The irony is that the Scottish National party are urging us to enter into direct trade talks with the US—something that we are already doing, but something that we would not be able to do if we followed its policy of rejoining the European Union. I just remark on the SNP’s chutzpah in urging us to do something to which it is fundamentally opposed: engage directly with the United States on trade policy.

[Craig Tracey (North Warwickshire) (Con)]

What progress she has made in securing a free trade agreement with the US.

--- Later in debate ---

[The Minister for Trade Policy (Greg Hands)]

Pursuing accession to the comprehensive and progressive agreement for trans-Pacific partnership is a Government priority and a key part of our trade negotiations programme. We have engaged with all 11 member countries at both ministerial and official level to discuss UK accession, including the first ever meeting of senior officials between CPTPP members and a non-member on 9 September, and all members have welcome the UK’s interest.

[Stewart Hosie (Dundee East) (SNP)]

I thank the Minister for the update. However, when the non-partisan Centre for Economic Policy Research assessed the United States accession to the original and similar trans-Pacific partnership trade deal, it concluded that wages might rise for the top 10% of earners but fall for everybody else. What assessment has his Department made of the impact of CPTPP accession on income levels in the UK, and what guarantees can he give that worsening income inequality would not be a consequence here?

[Greg Hands]

I thank the hon. Gentleman for that interesting question. I have not seen that study on the original TPP, but I will say two things. First, when the UK applies, we will be publishing a scoping assessment—an impact assessment—looking at how the deal will affect the UK economy. Secondly, liberal-minded, like-minded democracies such as Canada, Australia and New Zealand have embraced CPTPP with great enthusiasm, which gives me some encouragement in this space.

[Stewart Hosie]

It is just not the UK that is seeking to join CPTPP; Thailand, for example, is actively investigating it. Thailand’s faculty of pharmaceutical sciences has assessed that because of the way CPTPP rules on patents and on market approval for generic drugs that impact on Government procurement and so on work, the costs of drugs would rise. Given the Bangkok Post headline that CPTPP would lead to “soaring” drugs bills, what guarantees can the Minister give that a similar rise in the cost of medicines to the NHS, for the same reasons, would not be the consequence here?

[Greg Hands]

Again, I thank the hon. Gentleman for that question. Nothing in any trade deal prevents us from setting domestic pharmaceutical prices, and that would remain true in respect of CPTPP. Let me have a look at why the Scottish National party is questioning the potential to join CPTPP. I have the feeling that the SNP is just not in favour of any trade agreements; I have had a look at CPTPP members, and the SNP was against doing a deal with Canada, against doing a deal with Japan in Brussels and against doing a deal with Singapore. So I feel that whatever intricate, detailed questions he has on CPTPP, he will not support our joining it.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The Government of Malaysia are delaying ratification of CPTPP because they have become concerned, belatedly, about the impact of the treaty’s provisions on Government procurement and on investor-state dispute settlements. So before our Government go full steam ahead into negotiations to join CPTPP, will the Minister provide an assessment of those provisions for our country?

[Greg Hands]

The UK is a different economy from Malaysia, and the UK has never lost a an investor dispute case through the investor-state dispute settlement. Secondly, Government procurement is a huge opportunity for this country. Just yesterday, we were delighted to see our accession to the World Trade Organisation’s Government procurement agreement, as a sure way to make sure that Government procurement remains open for UK businesses and UK procurers. A bit like the SNP, I have checked the hon. Gentleman’s record on CPTPP and he has opposed doing the deals. He voted against on Singapore, abstained on Japan and even went further than his Labour colleagues in voting against CETA—the comprehensive economic and trade agreement—taking effect. A bit like the SNP, he is trying to find fault in an agreement that he has no intention of supporting, at any point.

[Kate Osborne (Jarrow) (Lab)]

What recent discussions she has had with UK trade partners on the inclusion of human rights clauses in future trade agreements.

[Afzal Khan (Manchester, Gorton) (Lab)]

To ask the Secretary of State for International Trade, what recent discussions she has had with UK trade partners on inserting clauses on human rights in future trade deals.

[The Minister for Trade Policy (Greg Hands)]

This Government have a strong history of promoting our values globally. Although our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including human rights. We will not compromise our high standards in trade agreements.

[Kate Osborne]

The Government have listed 20 countries and one trading bloc where negotiations are ongoing about rolling over existing EU trade deals beyond 31 December. Are human rights part of those discussions? Will the Minister guarantee the inclusion of human rights clauses in any eventual deals reached with those countries?

[Greg Hands]

We have been absolutely clear throughout the continuity trade deal programme that there will be no diminution of UK standards, and that also applies to human rights. We will make sure that our strong, proud record on human rights—we are a world leader in ensuring and guaranteeing human rights—continues throughout all the continuity trade programme.

[Janet Daby [V]]

The UN group of experts has concluded that all parties in Yemen, including the Saudi coalition, are violating international law on an ongoing and consistent basis and that countries such as the UK, which are selling arms for use in the conflict, are showing a blatant disregard for the violations. Can the Minister explain why the independent panel of experts is wrong and he is right?

[Greg Hands]

Some of this is subject to ongoing legal proceedings, but I remind the hon. Lady that we discussed this at some length last month in the House in an urgent question, which I answered. May I also remind her that, at all times, we follow the consolidated criteria, which provide a robust framework by which we assess export licence applications?

[Afzal Khan [V]]

China is the largest cotton producer in the world, with 84% of the cotton coming from the Xinjiang region. The entire global clothing industry is tainted with forced Uyghur labour, and the UK is no exception. In the light of that, does the Minister agree that we cannot put trade above human rights, and will he outline what steps his Department is taking to ensure that human rights concerns are considered during bilateral trade negotiations between the UK and China?

[Greg Hands]

We are absolutely clear that more trade does not have to come at the expense of human rights. Indeed, there is a very strong positive correlation between free trade and human rights through the world. On Xinjiang, my right hon. Friend the Foreign Secretary has been absolutely robust in our criticism, our condemnation, of what has been happening to the Uyghurs in the province. I reiterate that today, while reminding the hon. Gentleman that we are not negotiating a trade deal with China.

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

I am sure that the whole House has been encouraged by the Minister’s warm words on human rights, but let us test them with a specific example. I understand from the high commissioner of Cameroon that virtual negotiations on UK’s roll-over agreement are taking place as we speak, the first such negotiations in more than a year. Perhaps the Minister will update us on those talks and on any side discussions on the attendee development. For the purposes of this question, can he tell us whether his intention going into those negotiations is to assert a full essential elements human rights clause into the roll-over agreement with Cameroon rather than the current obsolete cross-reference to Cotonou? If so, how does he plan to enforce that clause effectively? Is it by penalising the Biya Government for their continued human rights abuses or, preferably, to persuade them to stop those abuses in future?

[Greg Hands]

I thank the right hon. Lady for that question. She is referring, of course, to the Cotonou agreement, which is shortly to expire. There are two things to take away from this. The first is the importance of keeping the continuity of our trading relations with Cameroon. That is very important for the Cameroon economy overall. Secondly, we continue to raise at every level with Cameroon our concern about human rights, both across the country in general and those affecting the anglophone community in the south-west of the country. On the deal itself, there will be no diminution in the human rights clauses of the existing EU deal, which I think is what she is seeking to criticise.

[Jacob Young (Redcar) (Con)]

What progress she has made in securing a free trade agreement with Australia.

--- Later in debate ---

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

What discussions she has had with UK trade partners on ensuring that public procurement is excluded from future trade deals.

[The Minister for Trade Policy (Greg Hands)]

We are delighted that in Geneva yesterday the UK was admitted to the World Trade Organisation’s government procurement agreement, which will secure access to a public procurement market worth £1.3 trillion. I am sure that the hon. Gentleman will join me in welcoming this significant step for the UK as an independent trading nation.

[Sir Mark Hendrick [V]]

The NHS currently strikes huge multi-billion-pound deals with drug providers around Europe that deliver huge benefits to the NHS and minimise drug costs to patients. Will the Government be allowing the US, through a trade deal, to gain access to NHS drugs procurement, and what are the implications for drug prices?

[Greg Hands]

We have been absolutely clear that in terms of the US deal the NHS is not on the table, and that includes drug pricing and other aspects of delivery of healthcare services. Let me remind the hon. Gentleman that the European Union is also a member of the government procurement agreement, and therefore we look forward, on a bilateral basis between the UK and the EU, to UK companies being able to take advantage of these procurement opportunities in European markets and also UK procurers being able to give their contracts to European companies.

[Matt Western (Warwick and Leamington) (Lab)]

What discussions she has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of using carbon tariffs to reduce emissions associated with international trade.

--- Later in debate ---

[Damian Collins (Folkestone and Hythe) (Con)]

What progress has been made in the UK/US trade negotiations on digital trade.

[The Minister for Trade Policy (Greg Hands)]

The UK has published its US negotiation objectives, which outline our intention to include provisions that facilitate the free flow of data while ensuring that the UK’s high standards of personal data protection are maintained. They include provisions to prevent unjustified data localisation requirements.

[Damian Collins [V]]

I thank the Minister for his answer. Will he confirm that under a trade agreement, American businesses processing UK citizens’ data in America would still have to abide by UK data laws, and also that a trade agreement will do nothing to undermine the age-appropriate design code for social media?

[Greg Hands]

On the second point, nothing in any trade agreement would prevent us from legislating against online harms in this country. On the first point, the UK’s trade policy seeks to maintain high levels of data protection by committing parties to legislate for the protection of the personal information of users of electronic commerce. That means that users of electronic commerce will have legal certainty over the protection of their personal information.

[Karl MᶜCartney (Lincoln) (Con)]

What progress she has made in securing a free trade agreement with New Zealand.

[The Minister for Trade Policy (Greg Hands)]

A free trade agreement with New Zealand is a priority for the UK Government. Trade negotiators from the UK and New Zealand held the first round of negotiations between 13 and 24 July 2020, and a second round of negotiations is due to begin on 19 October. New Zealand are a global leader when it comes to trade policy and trade agreements, and it is always a pleasure to deal with them.

[Karl MᶜCartney [V]]

I thank the Minister for his answer. He may be aware that prior to my first election in 2010, I worked closely with our colleague the Prime Minister in his former role as London’s Mayor and various members of the New Zealand Government to secure appropriate recognition for Sir Keith Park, the defender of London. I am pleased therefore to see our strengthened trade links with New Zealand, but does my right hon. Friend agree with me and others that we need to go further to strengthen commercial and political ties between Canada, Australia, New Zealand and the UK and seize the chances that Brexit presents for the UK?

[Greg Hands]

I thank my hon. Friend for his words of praise for the previous Mayor of London, who did a much better job than the current incumbent. I recently met the New Zealand high commissioner. The Secretary of State speaks regularly with the New Zealand Trade Minister. I did a webinar with New Zealand businesses recently. We want to have a cutting-edge deal as soon as possible. In terms of the broader relationship with Canada and Australia, I am very sympathetic to what my hon. Friend says, but I think the answer to that lies within the comprehensive and progressive agreement for trans-Pacific partnership, of which Canada, Australia and New Zealand are members.

[Ian Paisley (North Antrim) (DUP)]

What recent assessment she has made of the effectiveness of the export finance guarantee scheme.

--- Later in debate ---

[Marco Longhi (Dudley North) (Con)]

It is an undisputed fact that capitalism and free markets are the surest route out of poverty. Can my right hon. Friend update the House on how the Department is using trade to boost development in Africa?

[The Minister for Trade Policy (Greg Hands)]

My hon. Friend is absolutely right. Before I returned to the Department, I was the chair of the trade out of poverty all-party parliamentary group in this place. We have achieved duty free, quota free access for 39 African countries, and only yesterday the Prime Minister appointed 11 new Africa trade envoys. However, what would be unhelpful to our trade relationship with Africa is Labour and SNP Members’ proposals to dictate domestic production standards in the developing world, which has the potential to kill off our trade with those countries. I would ask them to look those countries in the eye when the Ghanaians cannot sell us their cocoa, when the Caribbean cannot sell us bananas, when the Kenyans—

[Mr Speaker]

Order. [Interruption.] No, no, no. Minister—and I will say this to both Front Benches—topicals are meant to be short and punchy. They are not meant to be for debating points like other questions. That is why topicals were brought in. Both Front Benches have taken advantage, and none more so than the Minister then. Let us head up to Preston with Sir Mark Hendrick. Come on: calm is needed.

--- Later in debate ---

[Beth Winter (Cynon Valley) (Lab) [V]]

  In response to Russia’s illegal annexation of Crimea, the UK has been at the forefront of EU sanction action against Russia, which this Government have reiterated their support for in two written statements to the House this year. Does the Secretary of State accept an obligation to operate the same principles in relation to trade with the illegal Israeli settlements in Palestinian territories?

[Greg Hands]

Sanctions are a matter for the Foreign, Commonwealth and Development Office, and I will pass on the hon. Member’s views to it. However, to answer the first part of her question, the UK has been absolutely robust in its approach to Russia on many fronts, not least the illegal annexation of Ukraine, which we have opposed at all points. We will continue to highlight that injustice at every international forum available.

[Scott Mann (North Cornwall) (Con)]

I would like to congratulate the Secretary of State and her turbo-charged Department on the Government procurement agreement, the Japanese free trade deal and progress in many other areas. It was a pleasure to welcome her to North Cornwall recently to demonstrate our great British food offer. Then it was cheese; today it is shellfish. North Cornwall has a lot of shellfish fishermen who hope to take advantage of our new trading independence. Can the Secretary of State tell me what consideration her Department has made of potential opportunities for crab and seafood exports to Asian countries such as Korea and Taiwan?

Oral Answers to Questions

Greg Hands Excerpts

Thursday 3rd September 2020 Commons Chamber

[Jeff Smith (Manchester, Withington) (Lab)]

What discussions she has had with UK trade partners on maintaining environmental protection standards in future trade agreements.

[The Minister for Trade Policy (Greg Hands)]

The Government are committed to meeting their ambitious environmental objectives. We are exploring environmental provisions in the design of our free trade agreements to ensure we continue to uphold the UK’s very high environmental standards. The precise details of each individual UK free trade agreement are a matter for the formal negotiations.

[Catherine West]

As we can see from the Extinction Rebellion protestors outside Parliament today and from our own inboxes as MPs, people hold environmental standards very close to their hearts. High climate standards are put at risk by leaving the European Union, which has the gold standard on environmental protections. What will the Government do, whether abroad with a country like Brazil or here in the UK, to protect the climate? The climate does cross borders so, whether at home or abroad, what steps will the Government take, with some energy, to protect the environment?

[Greg Hands]

I thank the hon. Lady for that question, which I think was very reasonably put, but actually we are doing a huge amount right the way across the board. We guaranteed in our manifesto no compromise on environmental standards in our future free trade agreements. The UK global tariff, which we published earlier this year, goes significantly further than the EU’s common external tariff in making sure that environmental goods are low-tariff or tariff-free. There are 104 tariff lines, including steam turbines, vacuum flasks and thermostats. We are also providing export finance in areas of renewable energy, such as solar energy and wind farms in Taiwan.

[Jeff Smith]

The former Australian Prime Minister, Tony Abbott, said that the major role he played in his country’s trade negotiations was ensuring

“that we weren’t sidetracked by peripheral issues such as… environmental standards”.

Does his potential appointment as a policy adviser to the Board of Trade mean that that is the Government’s new approach? How can the Government reassure us that they do not now regard the environment as a peripheral issue?

[Greg Hands]

The Government’s approach on the environment, and on the environment and trade, is unchanged. No appointments have been confirmed. Personally, I welcome the fact that a former Prime Minister of Australia is willing to help this country out. I think we should welcome his interest and welcome the endeavours he has the potential to make for this country on behalf of us all.

[Bill Esterson (Sefton Central) (Lab)]

Palm oil production is having a devastating impact on wildlife and the environment in a number of countries, including Malaysia, and there is real concern among our constituents about the threat to orangutans. Will the Minister confirm that the Government will press ahead with a ban on palm oil imports after the end of the transition period? Will he also confirm that this Government will maintain that ban if we join Malaysia in the comprehensive and progressive agreement for trans-Pacific partnership?

[Greg Hands]

The hon. Gentleman will remember the Prime Minister’s visit to Thailand and the region, and his speaking out about wildlife crime in that region when he was Foreign Secretary, including in relation to the pangolin, for example. You will remember, Mr Speaker, that the UK first published its statement on the sustainable production of palm oil in 2012, and the latest reports indicate that the UK achieved 75% certified sustainable palm oil importation in 2017, which compares with a figure of just 10% under the last Labour Government. We have taken the figure from just 10% to 75% in just 10 years.

--- Later in debate ---

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

What progress the Government have made with negotiations on a trade agreement with the US.

[The Minister for Trade Policy (Greg Hands)]

The third negotiating round of the UK-US free trade agreement took place from 27 July to 7 August 2020. I can announce today that the next round will start next Tuesday— 8 September. In parallel with the negotiations, my right hon. Friend the International Trade Secretary held a series of meetings in early August with the United States Trade Representative, Ambassador Robert Lighthizer.

[Sir Mark Hendrick [V]]

Given the impending failure of the Prime Minister’s fictitious oven-ready deal with the EU, how much leverage, or lack of leverage, will that failure give the Secretary of State in her negotiating position with whichever candidate wins the US November presidential elections, and what impact will that have on a UK economy already battered by covid-19 and a no-deal Brexit?

[Greg Hands]

The hon. Gentleman started off with a bit of a misnomer. Let me report from the most recent round of negotiations with the EU: our negotiator reported that these talks were part of the intensified process; they had had good talks around the Court of Justice and the EU’s concerns about the complex Switzerland-style set of agreements, and so on. So actually that was quite a positive round.

In terms of the US, clearly we keep channels of communication open—we talk with all parts of the US political system. We make sure that Senators, Members of Congress and Governors, from both parties and throughout the United States, buy into a future UK-US free trade agreement.

[Chris Green (Bolton West) (Con)]

What recent discussions she has had with her international counterparts on the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

[Mrs Heather Wheeler (South Derbyshire) (Con)]

What recent discussions she has had with her international counterparts on the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

[The Minister for Trade Policy (Greg Hands)]

We have taken strong steps towards joining the CPTPP through engaging with all 11 member countries on UK accession to the CPTPP. In July, my right hon. Friend the Secretary of State chaired an event with all CPTPP Heads of Mission in London, and next week she will join a CPTPP meeting chaired by Mexico.

[Chris Green]

Indespension, at the heart of my constituency, manufactures top-quality trailers, whether for motorbiking, camping or for transporting a mechanical digger, so I am sure my right hon. Friend would have them as his No. 1 choice. In the name of equal opportunities, should not everyone around the world have that opportunity as well?

[Greg Hands]

I absolutely share my hon. Friend’s enthusiasm for promoting the UK’s manufacturing exports around the world. He will be interested to know that north-west business goods exports to CPTPP countries were worth over £2 billion in 2019, and road vehicles were the top export within that, at £333 million. So I am sure that manufacturing exports from Bolton will have a fantastic future, with his support and that of this Department.

[Mrs Wheeler]

I thank my right hon. Friend for his answers so far. Next door to the CPTPP grouping area is Taiwan. Could the Minister provide an update on the UK’s trade relationship with Taiwan?

[Greg Hands]

I thank my hon. Friend for that question. I take a very strong interest in our superb bilateral trade relationship with Taiwan, which has actually provided a lot of assistance to the United Kingdom during the pandemic. This autumn we will hold our annual trade talks with my Taiwanese counterpart, with whom I first engaged in such talks in 2016.

Like us, Taiwan, through its membership of the World Trade Organisation, is committed to the same values of free trade and free markets as we are, and we look forward to deepening our relationship with Taiwan in the coming trade talks.

[Marco Longhi (Dudley North) (Con)]

What assessment she has made of the potential merits of free trade agreements with countries other than the US, Japan, Australia and New Zealand.

--- Later in debate ---

[Ian Paisley (North Antrim) (DUP)]

What progress she has made on free trade agreement negotiations with Australia.

[The Minister for Trade Policy (Greg Hands)]

Trade negotiators from the UK and Australia held the first round of negotiations for a UK-Australia free trade agreement between 29 June and 10 July. Round 1 saw a full and productive discussion covering most aspects of what might be included in a comprehensive free trade agreement. The second round will start on 21 September.

[Ian Paisley]

I thank the Minister for that answer. He knows that the high commissioner from Australia House, George Brandis, has been engaged in very extended talks with parties in Northern Ireland to encourage businesses there to look for growth opportunities with Australia. How do the Government intend to extend the opportunities in a trade agreement to businesses in Northern Ireland so that they can flourish under this free trade agreement?

[Greg Hands]

I thank the hon. Member for that question. First, I commend the Australian high commissioner, who really does an excellent job right the way across the United Kingdom in promoting the benefits of this deal. We have been clear from the very beginning that UK free trade agreements will benefit Northern Ireland. Yesterday, I was speaking to Bushmills in the hon. Gentleman’s constituency and talking to Colum Egan about Irish whiskey, particularly with reference to the Australia free trade agreement, including what we can do on rules of origin and on seeking to remove the current 5% tariff on both Irish whiskey and Scotch whisky going into Australia. I am sure that we can continue to do more work to make sure that Northern Ireland continues to benefit from the UK free trade agenda.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Jason McCartney (Colne Valley) (Con)]

During the lockdown and local restrictions, my constituents have really embraced shopping local and really supporting quality local food and drink products. What reassurances can the Minister please give me and my constituents that, while we do these trade deals, we really will not compromise our high food standards and our animal welfare standards?

[The Minister for Trade Policy (Greg Hands)]

I thank my hon. Friend for that question. It is worth reminding ourselves that he and I were both elected in December on a strong programme of no compromise on our standards on the environment, animal welfare and food safety—he and I collectively and individually. That is in the manifesto, and it has been made in repeated statements by the Prime Minister, the Secretary of State for the International Trade and the whole DIT team.

[Simon Jupp (East Devon) (Con)]

Recently, I welcomed the Minister to East Devon to visit a dairy farm to discuss the opportunities ahead to export a wide variety of world-renowned produce from my home county. What reassurances can my hon. Friend give our farmers in Devon that their produce will be promoted and protected by this Government?

Trade Bill

Greg Hands Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to discuss the following:

Government new clause 6—Offences related to disclosure under section (Disclosure of information by other authorities).

New clause 1—Report on proposed free trade agreement—

“(1) This section applies (subject to subsection (2)) where the United Kingdom has authenticated a free trade agreement (“the proposed agreement”), if —

(a) the other party (or each other party) and the European Union were signatories to a free trade agreement immediately before exit day, or

(b) where the proposed agreement was authenticated by the United Kingdom before exit day, the other party (or each other party) and the European Union were signatories to a free trade agreement on the day the proposed agreement was authenticated by the United Kingdom.

(2) This section applies only if the proposed agreement is not binding on the United Kingdom as a matter of international law unless it is ratified by the United Kingdom.

(3) Before the United Kingdom ratifies the proposed agreement, a Minister of the Crown must lay before Parliament a report which gives details of, and explains the reasons for, any significant differences between—

(a) the trade-related provisions of the proposed agreement, and

(b) the trade-related provisions of the existing free trade agreement.

(4) Subsection (3) does not apply if a report in relation to the proposed agreement has been laid before Parliament under section [Report to be laid with regulations under section 2(1))2].

(5) The duty imposed by subsection (3) applies only at a time when regulations may be made under section 2(1)(see section 2(7)).

(6) In this section a reference to authenticating a free trade agreement is a reference to doing an act which establishes the text of the agreement as authentic and definitive as a matter of international law.

(7) In this section—

“the existing free trade agreement” means the free trade agreement referred to in subsection (1) (a) or (b);

the “trade-related provisions” of a free trade agreement are the provisions of the agreement that mainly relate to trade.”

This new clause reinserts a Government amendment made to the Trade Bill in 2018 and requires a Minister to lay a report before Parliament before the UK ratifies a new free trade agreement with a country that (before exit day) had a free trade agreement with the EU. The report must explain any significant differences between the proposed new agreement and the existing agreement with the EU.

New clause 2—Reporting requirement not to apply in exceptional cases—

“(1) Section [Report on proposed free trade agreement] does not apply to a free trade agreement if a Minister of the Crown is of the opinion that, exceptionally, the agreement needs to be ratified without laying before Parliament a report which meets the requirements of subsection (3) of that section.

(2) If a Minister determines that a free trade agreement is it be ratified without laying before Parliament a report which meets the requirements of section [Report on proposed free trade agreement] (3), the Minister must, as soon as practicable after the agreement is ratified, lay before Parliament—

(a) a report which meets those requirements, and

(b) a statement indicating that the Minister is of the opinion mentioned in subsection (1) and explain why.”

This new clause provides that the reporting requirement under section [Report on proposed free trade agreement] would not apply if a Minister takes the view that, exceptionally, the agreement should be ratified without the reporting requirement being met.

New clause 3—Report to be laid with regulations under section 2(1)—

“(1) This section applies where a Minister of the Crown proposes to make regulations under section 2(1) for the purpose of implementing a free trade agreement to which the United Kingdom and another signatory (or other signatories) are signatories.

(2) A draft of the statutory instrument containing the regulations may not be laid before Parliament unless, at least 10 Commons sitting days before the draft is laid, a Minister of the Crown has laid before Parliament a report which gives details of, and explains the reasons for, any significant differences between—

(a) the trade-related provisions of the free trade agreement to which the United Kingdom and the other signatory (or other signatories) are signatories, and

(b) the trade-related provisions of the existing free trade agreement.

(3) Subsection (2) does not apply if, at least 10 Commons sitting days before a draft of the statutory instrument containing the regulations is laid, a report in relation to the agreement has been laid before Parliament under section [Report on proposed free trade agreement](3).

(4) In this section—

“Commons sitting day” means a day on which the House of Commons begins to sit;

“the existing free trade agreement” means the free trade agreement to which the European Union and the other signatory (or other signatories) were signatories immediately before exit day;

the “trade-related provisions” of a free trade agreement are the provisions of the agreement that mainly relate to trade.”

This new clause reinserts a Government amendment made to the Trade Bill in 2018 and requires a Minister to lay a report before Parliament at least 10 Commons sitting days before regulations implementing a new free trade agreement are laid in draft under clause 2(1). The report is required to explain any significant differences between the new agreement and the existing agreement with the EU.

New clause 4—Parliamentary approval of trade agreements—

“(1) Negotiations towards a free trade agreement may not commence until the Secretary of State has laid draft negotiating objectives in respect of that agreement before both Houses of Parliament, and a motion endorsing draft negotiating objectives has been approved by a resolution of both Houses of Parliament.

(2) Prior to the draft negotiating objectives being laid, the Secretary of State must have—

(a) consulted with each devolved authority on the content of the draft negotiating objectives, and

(b) produced a sustainability impact assessment including, but not limited to, an assessment of the impact on food safety, health, the environment and animal welfare.

(3) The United Kingdom may not become a signatory to a free trade agreement to which this section applies unless a draft of the agreement in the terms in which it was to be presented for signature by parties to the agreement has been laid before, and approved by, a resolution of both Houses of Parliament.

(4) Before either House of Parliament may be asked to approve by resolution the text of a proposed free trade agreement, the Secretary of State must—

(a) consult with each devolved authority on the text of the proposed agreement, and

(b) lay before both Houses a report assessing the compliance of the text of the proposed agreement with any standards laid down by primary or subordinate legislation in the United Kingdom including, but not limited to, legislation governing or prescribing standards on food safety, health, the environment and animal welfare.

(5) In this section—

“devolved authority” has the meaning given in section 4(1) of this Act, and

“free trade agreement” means any agreement which is—

(a) within the definition given in section 4(1) of this Act, and

(b) an agreement between the United Kingdom and one or more partners that includes components that facilitate the trade of goods, services or intellectual property.”

New clause 7—Import standards—

“(1) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the agreement—

(a) includes an affirmation of the United Kingdom’s rights and obligations under the SPS Agreement, and

(b) prohibits the importation into the United Kingdom of agricultural and food products in relation to which the relevant standards are lower than the relevant standards in the United Kingdom.

(2) In subsection (1)—

“international trade agreement” has the meaning given in section 2(2) of this Act;

“relevant standards” means standards relating to environmental protection, plant health and animal welfare applying in connection with the production of agricultural and food products;

“SPS Agreement” means the agreement on the Application of Sanitary and Phytosanitary Measures, part of Annex 1A to the WTO Agreement (as modified from time to time).”

This new clause would ensure that HMG has a duty to protect the quality of the domestic food supply by ensuring that imported foodstuffs are held to the same standards as domestic foodstuffs are held to.

New clause 8—International trade agreements: public health services—

“(1) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 if any provision of the agreement—

(a) would have the effect of, or could reasonably be expected to have the effect of, altering the way in which a service is provided by a specified body,

(b) would have the effect of, or could reasonably be expected to have the effect of, opening any part of a specified body to foreign investment,

(c) would open part or all of a specified body to market access but without any accompanying provision for the UK Government to reduce the level of market access in future,

(d) does not specify sectors or subsectors of a specified body to which the agreement would enable market access,

(e) includes investor-state dispute settlement mechanisms in relation to a specified body, or

(f) includes changes to mechanisms for the pricing of medical or pharmaceutical products for purchase by a specified body.

(2) The specified bodies, for the purpose of subsection (1), are—

(a) NHS England,

(b) NHS Wales,

(c) a health board in Scotland, a special health board in Scotland or the Common Services Agency established by section 10 of the National Health Service (Scotland) Act 1978, and

(d) HSCNI.

(3) In subsection (1), ” international trade agreement” has the meaning given in section 2 of this Act.”

This new clause would ensure that HMG has a duty to restrict market access to healthcare services, including medicines and medical devices.

New clause 9—International trade agreements: climate and environmental goals—

“(1) An appropriate authority may not take action in relation to an international trade agreement unless nothing in the international trade agreement restricts the ability of that or any other appropriate authority to take action in pursuit of the UK’s climate and environmental goals.

(2) In subsection (1) “action in relation to an international trade agreement” means—

(a) laying the agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 (treaties to be laid before Parliament before ratification),

(b) making regulations under section 2 for the purposes of implementing or facilitating the implementation of the agreement, or

(c) making subordinate legislation under any other enactment for those purposes.

(3) In subsection (2) “laid”—

(a) where the appropriate authority is a Minister of the Crown, means laid before Parliament;

(b) where the appropriate authority is the Scottish Ministers, means laid before the Scottish Parliament;

(c) where the appropriate authority is the Welsh Ministers, means laid before Senedd Cymru; and

(d) where the appropriate authority is a Northern Ireland department, means laid before the Northern Ireland Assembly.

(4) In conducting trade negotiations and in other related activity a Minister of the Crown—

(a) must give priority to nations that are fully implementing relevant multilateral environmental agreements; and

(b) must take all reasonable steps to facilitate the achievement of the UK’s climate and environmental goals (including, in particular, by pursuing where appropriate the introduction, amendment or application of rules within the World Trade Organisation and other international trade forums).

(5) In subsection (4) “trade negotiations” means—

(a) negotiations with a view to entering into an international trade agreement; or

(b) negotiations in connection with the implementation or alteration of an international trade agreement, or otherwise connected with international trade.

(6) In subsection (4) “relevant multilateral environmental agreements” means, so far as geographically applicable, any of—

(a) the United Nations Framework Convention on Climate Change done at New York on 9 May 1992 and Paris Agreement done at Paris on 12 December 2015,

(b) the United Nations Convention on Biological Diversity done at Rio de Janeiro on 5 June 1992 (including its protocols),

(c) the Convention on International Trade in Endangered Species of Wild Fauna and Flora 1973,

(d) United Nations Convention for the Law of the Sea 1982,

(e) the Aarhus Convention 1998,

(f) the United Nations Economic Commission for Europe Convention on Long-Range Transboundary Air Pollution 1979,

(g) the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) Convention 1992, or

(h) the Basel Convention 1992.

(7) The Secretary of State must lay before Parliament in each financial year a report about compliance with subsection (4).

(8) In this section “the UK’s climate and environmental goals” means—

(a) the target of achieving net zero carbon emissions by 2050;

(b) any other target set under or for purposes connected with any enactment (including devolved legislation and retained EU law) relating to the environment or climate change;

(c) any target to which the UK is committed by virtue of being party to a relevant multilateral environmental agreement; and

(d) the United Nations Sustainable Development Goals.”

This new clause aligns the UK’s trade policy with the UK’s climate and environmental agenda. It would ensure that the negotiation of trade agreements facilitates the achievement of the UK’s domestic climate and environmental goals and would help prevent trade agreements from restricting action in pursuit of these goals.

New clause 10—Availability of agreement texts—

“(1) The text of any proposed international trade agreement which is being negotiated shall, so far as it is agreed or consolidated, be made publicly available within ten days of the close of each round of negotiations.

(2) Every—

(a) document submitted formally by the United Kingdom government to the negotiations, and

(b) agenda for each new round of negotiations

shall be made publicly available by the Secretary of State.

(3) All other documents relating to the negotiations and not falling within the descriptions provided in subsections (1) and (2) shall be made publicly available by the Secretary of State, subject to subsection (4).

(4) The Secretary of State may withhold from publication any document of a kind falling within the description in subsection (3) but must publish a statement of the reasons for doing so.

(5) In the case of any document withheld under subsection (4), the Secretary of State shall provide full and unfettered access to that document to—

(a) any select committee of either House of Parliament to which, in the opinion of the Secretary of State, the proposed agreement is relevant, and

(b) any other person or body which the Secretary of State may authorise.

(6) In the case of a document to which access is provided under subsection (5), the Secretary of State may specify conditions under which the text shall be made available.

(7) The Secretary of State shall maintain an online public register of all documents published under subsections (1), (2) and (3) or withheld under subsection (4).”

This new clause would give select committees access to more confidential negotiating documents and would provide a process for further transparency of negotiating texts beyond that.

New clause 11—Import of agricultural goods after IP completion day—

“(1) After IP completion day, agricultural goods imported under a free trade agreement may be imported into the UK only if the standards to which those goods were produced were as high as, or higher than, standards which at the time of import applied under UK law relating to—

(a) animal health and welfare,

(b) protection of the environment,

(c) food safety, hygiene and traceability, and

(d) plant health.

(2) The Secretary of State must prepare a register of standards under UK law relating to—

(a) animal health and welfare,

(b) protection of the environment,

(c) food safety, hygiene and traceability, and

(d) plant health

which must be met in the course of production of any imported agricultural goods.

(3) A register under subsection (2) must be updated within seven days of any amendment to any standard listed in the register.

(4) “Agricultural goods”, for the purposes of this section, means anything produced by a producer operating in one or more agricultural sectors listed in Schedule 1.

(5) “IP completion day” has the meaning given in section 39 of the European Union (Withdrawal Agreement) Act 2020.”

This new clause would set a requirement for imported agricultural goods to meet animal health and welfare, environmental, plant health, food safety and other standards which are at least as high as those which apply to UK produced agricultural goods.

New clause 12—Review of free trade agreements—

“(1) The Secretary of State shall lay before Parliament a review of the operation and impacts of each free trade agreement to which this Act applies.

(2) Each such review shall be laid before Parliament no later than five years from the day on which the agreement comes into force.

(3) A further review of the operation of each agreement shall be laid no later than five years after the day on which the previous such review was laid before Parliament.

(4) Each review shall be conducted by a credible body independent of government and shall include both qualitative and quantitative assessments of the impacts of the agreement, including as a minimum—

(a) the economic impacts on individual sectors of the economy, including, but not restricted to—

(i) the impacts on the quantity and quality of employment,

(ii) the various regional impacts across the different parts of the UK,

(iii) the impacts on small and medium-sized enterprises, and

(iv) the impacts on vulnerable economic groups;

(b) the social impacts, including but not restricted to—

(i) the impacts on public services, wages, labour standards, social dialogue, health and safety at work, public health, food safety, social protection, consumer protection and information, and

(ii) the government’s duties under the Equality Act 2010;

(c) the impacts on human rights, including but not restricted to—

(i) workers’ rights,

(ii) women’s rights,

(iii) cultural rights and

(iv) all UK obligations under international human rights law;

(d) the impacts on the environment, including but not restricted to—

(i) the need to protect and preserve the oceans,

(ii) biodiversity,

(iii) the rural environment and air quality, and

(iv) the need to meet the UK’s international obligations to combat climate change;

(e) the impact of any investor-state dispute settlement which forms part of the agreement;

(f) the impacts on animal welfare, including but not restricted to the impacts on animal welfare in food production, both as it relates to food produced in the UK and as it relates to food imported into the UK from other countries; and

(g) the economic, social, cultural, food security and environmental interests of those countries considered to be developing countries for the purposes of clause 10 of the Taxation (Cross-border Trade) Act 2018, as defined in Schedule 3 to that Act and as amended by regulations.

(5) The elements of the review to be undertaken under (4)(f) must be sufficiently disaggregated so as to capture the full range of impacts on different groups of developing countries, and must include both direct and indirect impacts, such as loss of market share through trade diversion or preference erosion.”

This new clause would introduce a review of the functioning of each FTA to which the UK is a signatory to be brought forward after five years and again after a further five.

New clause 13—Role of Joint Ministerial Committee—

“(1) The Joint Ministerial Committee is to be a forum—

(a) for discussing—

(i) the terms upon which the United Kingdom is to commence negotiations with respect to any international trade agreement;

(ii) proposals to amend retained EU law for the purposes of regulations made under section 1 or section 2;

(b) for seeking a consensus on the matters set out in subsection (1)(a) between Her Majesty’s Government and the other members of the Joint Ministerial Committee.

(2) Before Her Majesty’s Government concludes an international trade agreement, the Secretary of State must produce a document for consideration by the Joint Ministerial Committee setting out—

(a) Her Majesty’s Government’s objectives and strategy in negotiating and concluding an international trade agreement;

(b) the steps Her Majesty’s Government intends to take to keep the Joint Ministerial Committee informed of progress in reaching an international trade agreement;

(c) the steps Her Majesty’s Government intends to take to consult each member of the Joint Ministerial Committee before entering into an international trade agreement and for taking the views of each member into account.

(3) Before concluding an international trade agreement the Secretary of State must produce a document setting out the terms of the proposed agreement for consideration by the Joint Ministerial Committee.

(4) In this section, “the Joint Ministerial Committee” means the body set up in accordance with Supplementary Agreement A of the Memorandum of Understanding on Devolution, between Her Majesty’s Government, the Scottish Government, the Welsh Government and the Northern Ireland Executive Committee.”

This new clause would put on the face of the Bill a joint ministerial committee, and give it powers to discuss international trade issues with the devolved Administrations.

New clause 14—Animal welfare and sentience—

“Regulations may only be made under section 2(1) if the provisions of the international trade agreement to which they relate are compatible with—

(a) any provision in UK law (including retained EU law) relating to animal welfare standards and the welfare of animals in the production of food; and

(b) any obligations relating to animal sentience by which the UK is bound, or any principles relating to animal sentience to which the UK adheres.”

This new clause would ensure that any animal welfare or sentience regulations arising from trade agreements are aligned with existing commitments in UK and retained EU law.

New clause 15—Statement on equalities legislation—

“(1) This section applies where a Minister of the Crown proposes to make regulations under section 2(1).

(2) Before a draft of the statutory instrument containing the regulations is laid before either House of Parliament, the Minister must make a statement as to whether the statutory instrument would, if made, modify any provision of equalities legislation.

(3) If a Minister expresses a view in a statement under subsection (2) that the draft statutory instrument would, if made, modify any provision of equalities legislation, the Minister must explain in the statement what the effect of each such modification would be.

(4) If the Minister fails to make a statement as required by subsection (2), the Minister must make a statement explaining why.

(5) A statement under this section must be made in writing and published in such manner as the Minister making it considers appropriate.

(6) In this section, “equalities legislation” means the Equality Act 2006, the Equality Act 2010 and any subordinate legislation made under either of those Acts.”

This new clause would oblige the government to publish a statement outlining whether any equalities legislation would be modified by the proposed regulations.

New clause 16—UK participation in EU and EEA organisations—

“(1) The Secretary of State must seek to negotiate an international trade agreement with the EU which will enable the United Kingdom to continue to co-operate closely with the bodies listed in subsection (2).

(2) The bodies are—

(a) the European Medicines Agency;

(b) the European Chemicals Agency;

(c) the European Aviation Safety Agency;

(d) the European Maritime Safety Agency.”

This new clause would oblige the Secretary of State to negotiate close cooperation with the four mentioned agencies.

New clause 17—International trade agreements: health or care services—

“(1) Regulations under section 2(1) may make provision for the purpose of implementing an international trade agreement only if the conditions in subsections (2) and (3) are met in relation to the application of that agreement in any part of the United Kingdom.

(2) The condition in this subsection is that no provision of that international trade agreement in any way undermines or restricts the ability of an appropriate authority—

(a) to provide a comprehensive publicly funded health service free at the point of delivery,

(b) to protect the employment rights or terms and conditions of employment for public sector employees and those working in publicly funded health or care sectors,

(c) to regulate and maintain the quality and safety of health or care services,

(d) to regulate and control the pricing and reimbursement systems for the purchase of medicines or medical devices, or

(e) to regulate and maintain the level of protection afforded in relation to patient data, public health data and publicly provided social care data relating to UK citizens.

(3) The condition in this subsection is that the agreement—

(a) explicitly excludes application of any provision within that agreement to publicly funded health or care services,

(b) explicitly excludes provision for any Investor-State Dispute Settlement (ISDS) clause that provides, or is related to, the delivery of public services, health care, care or public health,

(c) explicitly excludes the use of any negative listing, standstill or ratchet clause that provides, or is related to, the delivery of public services, health care, care or public health,

(d) contains explicit recognition that an appropriate authority (within the meaning of section 4) has the right to enact policies, legislation and regulation which protects and promotes health, public health, social care and public safety in health or care services, and

(e) prohibits the sale of patient data, public health data and publicly provided social care data.

(4) For the purposes of this section—

“negative listing” means a listing only of exceptions, exclusions or limits to commitments made by parties to the agreement;

“ratchet” in relation to any provision in an agreement means any provision whereby a party, if (after the agreement has been ratified) it has unilaterally removed a barrier in an area where it had made a commitment before the agreement was ratified, may not reintroduce that barrier, and

“standstill” in relation to any provision in an agreement means any provision by which parties list barriers which are in force at the time that they sign the agreement and undertake not to introduce any new barriers.”

This amendment would aim to protect the NHS and publicly funded health and care services in other parts of the UK from any form of control from outside the UK.

New clause 18—Trade agreements: approval—

“A Minister of the Crown must not make regulations to implement an international trade agreement unless—

(a) a statement on the terms of the agreement has been approved by the House of Commons on a motion moved by a Minister of the Crown,

(b) a statement on the terms of the agreement has been approved by the House of Commons on a motion moved by a Minister of the Crown,

(c) a motion relating to that statement has been approved by a resolution of Senedd Cymru,

(d) a motion relating to that statement has been approved by a resolution of the Scottish Parliament, and

(e) a motion relating to that statement has been approved by a resolution of the Northern Ireland Assembly.”

This new clause would require the UK Government to secure the approval of both Houses of Parliament and the devolved Parliaments of Scotland and Wales, and the Northern Ireland Assembly before implementing any international trade agreement agreed after the passing of the Bill.

New clause 19—Involvement of judicial systems in trade disputes—

“(1) The United Kingdom may only become a signatory to an international trade agreement if the condition in subsection (3) is satisfied.

(2) The Secretary of State may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the condition in subsection (3) is satisfied.

(3) Legal proceedings brought against the United Kingdom under investment protection provisions included in an international trade agreement must be heard by the courts and tribunals system of the United Kingdom.”

This new clause would provide protection for UK firms, public bodies and the Government in the event of proceedings under investment protection provisions such as the Investor-State Dispute Scheme (ISDS).

New clause 20—Multilateral investment tribunal—

“(1) The United Kingdom may only become a signatory to an international trade agreement if the condition in subsection (3) is satisfied.

(2) The Secretary of State may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the condition in subsection (3) is satisfied.

(3) The condition under this subsection is that an international trade agreement must include a commitment by all parties to the agreement to pursue with other trading partners the establishment of a multilateral investment tribunal and appellate mechanism for the resolution of investment disputes.”

This new clause would ensure that a multilateral investment process would be used to adjudicate on investor disputes.

New clause 21—Human rights and economic impact assessments—

“(1) Before laying a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010, the Secretary of State must lay before Parliament an impact assessment taking account of short and long-term human rights and economic impacts of that agreement on different sectors including, but not limited to—

(a) gender,

(b) age

(c) race and

(d) class.

(2) The Secretary of State must lay before Parliament reviews of each international trade agreement which has come into effect from January 2021.

(3) A review under subsection (2) must include an assessment of short and long-term economic and human rights impacts on different sectors including, but not limited to—

(a) gender,

(b) age

(c) race and

(d) class.

(4) Reviews under subsection (2) must be laid within two years of the day on which the agreement to which they relate comes into effect, and at intervals of no more than two years thereafter.”

This new clause would ensure that the HMG has a duty to commit to undertaking human rights impact assessments of all trade deals before and after implementation, taking account of short and long-term economic impacts across different sectors, including but not limited to gender, age, race and class.

Amendment 11, in clause 1, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of enabling greater labour market interventions and compliance with ILO standards in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater labour rights in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 12, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing greater environmental exceptions and carbon considerations in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater environmental protections in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 13, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing greater scope for UK small and medium-sized enterprises in any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure greater access for SMEs in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 14, page 1, line 16, at end insert—

“(1A) No regulations under subsection (1) may be made until the Secretary of State has entered into negotiations with other parties to the GPA with the objective of securing improvements to public health as a consequence of any UK procurement contract to which the GPA applies, and

(a) the Secretary of State has made a statement to the House of Commons that the objective has been achieved either in full or in part, or

(b) the Secretary of State has made a statement to the House of Commons that the objective has not been achieved.”

This amendment would require the Secretary of State to enter into negotiations to secure improvements to public health in procurement contracts that the GPA applies to, and to report back on the outcome of these negotiations.

Amendment 1, in clause 2, page 2, line 10, leave out “is a signatory” and insert

“was a signatory on 31 December 2019”.

The most recent EU FTA which was rolled over, was in December 2019. This amendment would provide that any further FTA entered into would not come under the EU FTA roll over provisions of Clause 2.

Amendment 29, page 2, line 14, at end insert—

“(2A) Regulations under subsection (1) to make provision for the purpose of implementing an international trade agreement may only be made if—

(a) the requirements under subsection (3) and under paragraph 4(1) to (1D) of Schedule 2 have been met;

(b) the requirements under subsection (4) and under paragraph 4(1) to (1D) of Schedule 2 have been met; or

(c) the provisions of section [Parliamentary approval of trade agreements] have been complied with and the requirements under subparagraphs 4A(1) to (1D) of Schedule 2 have been met.”

This amendment would put in place a structure for greater Parliamentary scrutiny of proposed international trade agreements.

Amendment 15, page 2, line 15, leave out subsections (3) and (4) and insert—

“(3) Paragraph 4 of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing a free trade agreement if the other signatory (or each other signatory) and the European Union were signatories to a free trade agreement immediately before exit day.

(4) Paragraph 4 of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing an international trade agreement other than a free trade agreement if the other signatory (or each other signatory) and the European Union were signatories to an international trade agreement immediately before exit day.

(4A) Paragraph 4A of Schedule 2 shall apply to any regulations under subsection (1) which make provision for the purpose of implementing any international trade agreement not falling within subsection (3) or subsection (4) above.”

This amendment would apply the provisions of the Bill to trade agreements other than EU rollover trade agreements, allowing the Bill to act as a framework for a future trade policy.

Amendment 16, page 2, line 15, leave out subsections (3) and (4) and insert—

“(3) Regulations under subsection (1) may make provision for the purpose of implementing a free trade agreement only if the other signatory (or each other signatory) and the European Union had ratified a free trade agreement with each other immediately before exit day.

(4) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement other than a free trade agreement only if the other signatory (or each other signatory) and the European Union had ratified an international trade agreement with each other immediately before exit day.”

This amendment would mean that a trade agreement would need to be ratified before regulations could be made to implement it.

Amendment 17, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with, and are consistent with—

(a) the provisions of international treaties ratified by the United Kingdom;

(b) the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015;

(c) the primacy of human rights law;

(d) international human rights law and international humanitarian law;

(e) the United Kingdom’s obligations on workers’ rights and labour standards as established by but not limited to—

(i) the commitments under the International Labour Organisation’s Declaration on Fundamental Rights at Work and its Follow-up Conventions; and

(ii) the fundamental principles and rights at work inherent in membership of the International Labour Organisation;

(f) women’s rights and are in accordance with the United Kingdom’s obligations established by but not limited to the Convention on the Elimination of All Forms of Discrimination Against Women;

(g) children’s rights and are in accordance with the United Kingdom’s obligations established by but not limited to the Convention on the Rights of the Child; and

(h) the sovereignty of Parliament, the legal authority of UK courts, the rule of law and the principle of equality before the law.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the UK’s international commitments with specific reference to human rights and related treaties, and must respect the sovereignty of parliament.

Amendment 18, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with, and are consistent with the United Kingdom’s environmental obligations in international law and as established by but not limited to—

(a) the Paris Agreement adopted under the United Nations Framework Convention on Climate Change;

(b) the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); and

(c) the Convention on Biological Diversity, including the Cartagena Protocol on Biosafety.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the UK’s environmental obligations.

Amendment 19, page 2, line 23, at end insert—

“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not in any way restrict the ability—

(a) to make public services at a national or local level subject to public monopoly;

(b) to make public services at a national or local level subject to exclusive rights granted to private operators; and

(c) to bring public services at a national or local level back into the public sector for delivery by public sector employees.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the ability of a UK government to take public services back into public ownership.

Amendment 20, page 2, line 23, at end insert—

“(4A) Regulations may only be made under subsection (1) if—

(a) the provisions of the international trade agreement to which they relate are consistent with standards for food safety and quality as set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(b) the Secretary of State is satisfied that mechanisms and bodies charged with enforcement of standards for food safety and quality have the capacity to absorb any extra requirement which may arise from the implementation of the agreement;

(c) the provisions of the international trade agreement to which they relate are consistent with policy to achieve reduction in the risk of disease or contamination as set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(d) the provisions of the international trade agreement to which they relate are consistent with achieving improvements in public health through any food policy priorities set and administered by—

(i) the Department of Health;

(ii) the Food Standards Agency;

(iii) Food Standards Scotland; and

(iv) any other public authority specified in regulations made by the Secretary of State;

(e) the provisions of the international trade agreement to which they relate are compliant with policy to achieve targets for farm antibiotic reduction set by the Veterinary Medicines Directorate;

(f) the provisions of the international trade agreement to which they relate are compliant with retained EU law relating to food standards and the impact of food production upon the environment; and

(g) any food or food products to which the provisions of the international trade agreement apply meet standards of labelling, indication of provenance, and packaging specified by the Food Standards Agency or Food Standards Scotland.”

This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement enshrines UK standards in legislation and adheres to UK standards of food production and food safety.

Amendment 21, page 2, leave out lines 27 and 28.

This amendment would remove Henry VIII powers from the Bill.

Amendment 10, page 2, line 33, at end insert—

“(6A) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of the Scottish Ministers (within the meaning given in paragraph 6 of Schedule 1), unless the Scottish Ministers consent.

(6B) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of the Welsh Ministers (within the meaning given in paragraph 7 of Schedule 1), unless the Welsh Ministers consent.

(6C) No regulations may be made under subsection (1) by a Minister of the Crown, so far as they contain provision which would be within the devolved competence of a Northern Ireland department (within the meaning given in paragraph 8 of Schedule 1), unless a Northern Ireland devolved authority (within the meaning of paragraph 9 of Schedule 1) gives consent.”

This amendment would ensure that the consent of a devolved government is required for regulations under section 2(1) if those regulations contain matters which are within the remit of the devolved government.

Amendment 22, page 2, line 34, leave out subsections (7) and (8) and insert—

“(7) No regulations may be made under subsection (1) in relation to an agreement which meets the criteria in subsection (3) or (4) after the end of the period of five years beginning with IP completion day.”

This amendment would bar any extension to the five-year window for making regulations to implement EU rollover agreements.

Amendment 23, page 2, line 34, leave out subsections (7) and (8) and insert—

“(7) No regulations may be made under subsection (1) in relation to an agreement which meets the criteria in subsection (3) or (4) after the end of—

(a) the period of five years beginning with IP completion day (“the initial five year period”), or

(b) such other period as is specified in regulations made by the Secretary of State in accordance with subsection (8).

(8) Regulations under subsection (7)(b) may not extend the initial five year period or any subsequent period beyond the day which falls ten years after IP completion day.”

This amendment would limit any extension of the window to a maximum of ten years.

Amendment 2, page 2, line 35, leave out “five” and insert “three”.

This amendment reinserts a Government amendment made to the Trade Bill in 2018. It proposes to reduce, from five years to three, the time period during which a) EU FTAs can be rolled over and b) previously rolled over FTAs can be reamended.

Amendment 3, page 2, line 36, leave out “five” and insert “three”.

Amendment 4, page 2, line 39, leave out “five” and insert “three”.

This amendment reinserts a Government amendment made to the 2018 Trade Bill in 2018. If the Government decides to extend the period to make regulations under Clause 2, any such period should not be more than three years.

Amendment 5, page 2, line 41, leave out “five” and insert “three”.

Amendment 27, in clause 4, page 3, line 26, at end insert—

““international agreement that mainly relates to trade, other than a free trade agreement” means a strategic partnership agreement or mutual recognition agreement that is ancillary to a free trade agreement, or an investment agreement”.

This amendment defines what is meant by international agreement that mainly relates to trade, reducing ambiguity.

Amendment 28, in clause 6, page 4, line 22, at end insert “and

(c) analysis of the impact of any exercise by the Secretary of State of the power under section 15 of the Taxation (Cross-border Trade) Act 2018 (as amended by section 94 of the Finance Act 2020) to vary an amount of import duty if he or she considers that it is appropriate to do so.”

This amendment would oblige the TRA to give advice on the impact of the Secretary of State’s actions in reducing import duty under the powers in the current Finance Bill.

Government amendments 6 to 9.

Amendment 24, in schedule 2, page 11, line 26, leave out from “section 1(1)” to the end of line 27 and insert

“may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

This amendment would specify an affirmative resolution procedure for regulations under section 1 (1) (Regulations relating to the UK’s membership of the GPA).

Amendment 25, page 13, line 25, at end insert—

“4A (1) A statutory instrument containing regulations of a Minister of the Crown acting alone under section 2(1) in respect of an international trade agreement which does not meet the criteria under section 2(3) or section 2(4) may not be made except in accordance with the steps in subparagraphs (1A) to (1D).

(1A) The Minister shall lay before Parliament—

(a) a draft of the regulations, and

(b) a document which explains why the Secretary of State believes that regulations should be made in terms of the draft regulations.

(1B) The Minister may make an order in the terms of the draft regulations laid under subparagraph (1A) if—

(a) after the expiry of a period of 21 sitting days after the draft regulations are laid, no committee of either House of Parliament has recommended that the regulations should not be made, and

(b) after the expiry of a period of 60 sitting days after the draft regulations are laid, the draft regulations are approved by a resolution of each House of Parliament.

(1C) If a committee of either House of Parliament recommends that the regulations should not be made, the Secretary of State may—

(a) lay before Parliament revised draft regulations, and

(b) after the expiry of a period of 40 sitting days after the revised draft regulations are laid, make a motion for a resolution in each House of Parliament for approval of the revised draft regulations.

(1D) If a motion under subparagraph (1C)(b) is approved by a resolution of each House of Parliament, the Secretary of State may make the regulations.”

This amendment would establish a form of super-affirmative procedure for scrutiny of regulations implementing all trade agreements covered by the bill. The procedure would apply to agreements other than EU rollover trade agreements if amendments extending the application of the bill were agreed to.

Amendment 26, page 13, leave out lines 33 to 35 and insert—

“(3) A statutory instrument containing regulations of a Minister of the Crown acting jointly with a devolved authority under section 2(1) in respect of an agreement which falls within the description in section 2(3) or section 2(4) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(3A) A statutory instrument containing regulations of a Minister of the Crown acting jointly with a devolved authority under section 2(1) in respect of an agreement which falls within the description in section 2(4A) may not be made except in accordance with the steps in subparagraphs (1) to (1D) of paragraph 4A.”

This amendment would extend the super-affirmative procedure under Amendment 25 to regulations where the Minister was acting jointly with a devolved authority.

Amendment 31, page 15, line 21, leave out subsection (3) and insert—

“(3) No person may be appointed as a non-executive member of the Authority under subparagraph (1)(b) unless—

(a) the Secretary of State has first consulted the Chair of the Authority on the proposed appointment, and

(b) the International Trade Committee of the House of Commons has consented to the appointment.”

This amendment would establish a procedure for appointing non-executive members of the Trade Remedies Authority other than the Chair.

Amendment 30, page 15, line 22, at end insert—

“(3A) In making any proposal under subparagraph (3), the Secretary of State must ensure that there is on the Authority a representative of—

(a) producers,

(b) trade unions,

(c) consumers, and

(d) each of the United Kingdom devolved administrations.”

This amendment would ensure that the Trade Remedies Authority includes, among its non-executive members, representatives of stakeholder bodies potentially affected by its recommendations.

[Greg Hands]

It is a pleasure to open consideration on Report of the Trade Bill and to speak to new clause 5. This is all legislation that contains key measures that will deliver for UK businesses and consumers across the country, providing continuity and certainty. Amendments have been tabled by the Government and from across the House, and with the permission of the House I will outline the Government’s position on these more than 50 different amendments, and on other amendments tabled, before we hear from hon. and right hon. Members.

On Government new clauses 5 and 6, together with amendments 6, 7 and 9, the Government have been consistently clear that the priority for the UK’s existing trade relationships as we leave the EU is continuity. Our partner countries are clear on that too, and this Bill is about continuity. But it is about more than simply transitioning agreements. It is about ensuring that businesses—UK and partner-country businesses—can continue to benefit from smooth-operating borders once we have become a wholly independent trading nation at the end of the transition period.

The Government have set out our ambition to have a world-leading border by 2050. This will support our aim to make the UK a globally attractive place to do business as we move forward. To achieve that ambition, the Government need to make better use of the data we currently hold, and new clauses 5 and 6 are aimed at doing just that. Unlocking the full potential of the data, without placing any additional burden on businesses, will not only allow us to achieve our vision for the future, but benefit those business and consumers who depend on a frictionless border to ensure continuity of our trading relationships today. The smooth flow of traffic, goods and trade after the end of the transition period and during the introduction of import controls will support the manufacturing sector, especially those using the just-in-time methodology and individuals who enjoy using the online sector.

New clause 5 creates a new legal gateway so that Government data can be used, first, to ensure continuity of trade by safeguarding existing trading relationships in countries both in the EU and in the rest of world so they are not frustrated by friction at the border for goods and services at the end of the transition period; secondly, to provide better services to UK businesses and consumers by supporting the effective management of the end-to-end border process; and, thirdly, to underpin the delivery of a world-leading border—protecting the UK, protecting revenue and growing international trade.

This is an amendment that external border industry stakeholders are very supportive of; indeed, they have been calling for exactly this type of action for a long time. I want to be clear to the House on a number of important issues in relation to the new clause. First, this all relates to existing data; there are no new powers for data collection in these Government amendments. Secondly, it is discretionary and specific: it does not create a data-sharing free-for-all between public authorities. The new clause is carefully drafted to limit the data that can be shared to only that related to trade functions. These are functions that, in the main, are the responsibility of the Secretary of State for International Trade or the Minister for the Cabinet Office. If the information is not required for trade functions, it cannot be requested under the gateway. Before any data can be disclosed, the public authority making the disclosure must also be satisfied that it has complied with its own existing data protection obligations—most notably under the Data Protection Act 2018 and the General Data Protection Regulation.

The Government recognise that there may be concerns about what happens to the data once it has been passed to the Cabinet Office, the Department for International Trade or other Departments. I want to assure all Members of the House that no data will be made available or sold to third parties outside Government—a concern which I know a number of colleagues have raised in the past —nor will it be used to monitor citizens or businesses, or to target individuals to be stopped at the border. These measures are, as I have said, about making sure that border flow is maintained, and that traffic, goods and services are free to flow with as little friction as possible.

Furthermore, new clause 6 makes it an offence to disclose unlawfully any personal data shared under the amendment. The Government have also tabled amendments 6 to 9, which make minor changes to the existing clause 8. These amendments are to enable Her Majesty’s Revenue and Customs data to be shared with all Ministers of the Crown, where HMRC is satisfied that the data may be shared for the Minister’s functions relating to trade. The current drafting enables HMRC to share data with the Secretary of State for the same purpose. The practical effect of the amendments is to enable HMRC to share data with the Cabinet Office, which is not headed by a Secretary of State.

New clauses 1 to 3 seek to replicate the effects of Government amendments brought forward to the 2017-19 Trade Bill. Over the course of this legislation, and its 2017-19 version, I have had constructive discussions with my hon. Friend the Member for Huntingdon (Mr Djanogly) regarding the purpose of the Government’s continuity programme. I would like to thank him for his work and the interactions he has had with me, particularly on the important issue of transparency. His efforts have directly changed the Bill through inserting the use of the affirmative procedure when exercising the power in clause 2, and ensuring that Parliament has transparency in relation to continuity agreements through the laying of parliamentary reports, alongside signed agreements setting out significant changes with the underlying EU agreement.

As Members across the House know, the purpose of our continuity programme is to provide certainty to businesses and consumers by retaining the preferential trading arrangements from which the UK benefits as a signatory to trade agreements that the EU had signed with third countries before exit day. That is why we have now concluded 20 continuity agreements with 48 countries, accounting for £110 billion of UK trade in 2018, which represents 74% of the trade with countries with which we were seeking continuity before the withdrawal agreement was signed. Each of those agreements has been accompanied by a parliamentary report, and I can confirm that we will continue to publish reports for all continuity agreements yet to be signed. As those parliamentary reports make clear, our continuity programme has remained true to its mandate: replicating our existing trade relationships. Let me repeat that standards have not been lowered in these 20 agreements. Unsafe food will not be entering our market, and our right to choose how we deliver public services has been protected.

--- Later in debate ---

[Greg Hands]

Let me be clear: we are talking about continuity. My hon. Friend can judge us not just by what I say but by our actions. Of the 20 reports that we have published, five have been called for debate in the other place, and not a single one of those debates has resulted in a motion of regret. He is right about one thing, and that is on Japan. I will come on to examine this shortly, but Japan is different. We have been clear that that will lead to an enhanced free trade agreement based on the original EU agreement, which is why we have put in place different and more considerable scrutiny arrangements for the Japan agreement than for the rest of the continuity programme.

We want continuity agreements to enter into force on day one to avoid a cliff edge for both businesses and consumers. I remind colleagues that all continuity agreements will be subject to the CRAG—Constitutional Reform and Governance Act 2010—ratification procedure. That already provides for a period of 21 sitting days in which agreements, and the parliamentary reports and explanatory memoranda published alongside them, can be scrutinised by parliamentarians before they are formally ratified. I will now address amendments 1 to 5 in the name of my hon. Friend the Member for Huntingdon, as well as amendments 22 and 23.

[Mr Djanogly]

rose—

[Barry Gardiner (Brent North) (Lab)]

Will the Minister give way?

[Greg Hands]

I will give way to the hon. Member for Brent North (Barry Gardiner)—it is great to see him back in trade.

[Barry Gardiner]

The Minister talks of CRAG as if it is a process under which this Parliament has any power. He knows that it is the Government who enable Parliament to have a debate whereby it could vote against what is tabled under the CRAG process. He must look again at the way in which real scrutiny and accountability can be brought to bear in the way that the hon. Member for Huntingdon suggests.

[Greg Hands]

It is good to see the hon. Gentleman back. I remember that he was originally a Blairite Minister in Tony Blair’s Government, and it has been really instructive to see the journey that he has been on over some time. I saw him take the seat in the extreme corner of the Chamber earlier and thought, “Not only has he taken on the views of the right hon. Member for Islington North (Jeremy Corbyn), but he has now even taken his previous seat.” The hon. Gentleman voted for CRAG in 2010, as did I. [Interruption.] We both voted for CRAG in 2010. CRAG allows Parliament to block a trade deal. It allows Parliament to block international treaties. That was the intention—his Government designed it in that way to give Parliament the ability to block an international agreement, and that remains the case today.

[Several hon. Members rose—]

[Greg Hands]

I will make a little bit more progress.

As I have said, the other place has held debates on six of the agreements, and not one carried a motion of regret. We have also retained the affirmative resolution procedure for regulations that are required to implement single agreements. The Government recognise that there may be concerns that the power in clause 2 could be used to implement completely new agreements with continuity countries, both now and in the future, with inadequate opportunity for parliamentary scrutiny. In Committee we heard suggestions that some of the upcoming continuity agreements, such as those with Canada and Singapore, will go beyond continuity, and will therefore require a more comprehensive scrutiny process—my hon. Friend the Member for Huntingdon made that point.

Let me reassure hon. Members that we view the underlying EU agreements as sufficient, and we are not seeking to enhance those deals or go beyond continuity. These will be technical changes to make the agreements function in a UK-specific context. The Government acknowledge that the UK-Japan agreement, although based on the EU’s existing agreement with Japan, will be an enhanced agreement, and that is an exception.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

With ceramics being the fourth largest export to Japan and its industry, does the Minister see an enhanced trade deal with Japan as an opportunity, rather than listening to the doomsayers on the Opposition Benches?

[Greg Hands]

My hon. Friend is absolutely right. All my interactions, and those of the Secretary of State, with the ceramics industry and with MPs who represent key ceramics constituencies, indicate that the Japan deal is extremely important for this country. I am disappointed that the Opposition parties seem to have no enthusiasm for the continuity of our trade with Japan, or its enhancement.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Will the Minister give way?

[Greg Hands]

I will not give way just now. We are committed to additional scrutiny arrangements for any deal with Japan. We believe that the current sunset provisions in the Bill strike the right balance between flexibility for negotiators and the ability to keep agreements operable, and that they provide sufficient constraints and scrutiny to Parliament.

The Government are aware that during the 2017-19 Trade Bill there was uncertainty and concern in Parliament about the nature of the Government’s continuity programme—indeed, I can testify to that, because I was the Minister at the time—and that is why we have tabled a number of amendments to the Bill. There is, however, a crucial change in circumstance since the previous Bill, because Parliament can now see that we have not strayed beyond our mandate to deliver continuity. The transition agreements have not resulted in new or enhanced trading obligations, standards have not been reduced in any way, and our right to choose how we deliver public services has been protected.

[Richard Fuller (North East Bedfordshire) (Con)]

In that context, I understand why there is limited scrutiny for small trade deals, and the Minister has spoken about enhanced scrutiny for the Japan deal. He will know, however, that for many constituents, the US trade deal and the China trade deal will raise the most concerns. Can he give us some assurance that the process of increased scrutiny in Parliament will be higher for those deals than for the ones mentioned earlier?

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[Greg Hands]

I absolutely give my hon. Friend that assurance, and I will come on to discuss those deals in a moment, although they are not within the scope of the current Bill.

My hon. Friend the Member for Huntingdon has tabled new clause 4 on new trade agreements, and that gives me the opportunity to stress the importance that the Government place on parliamentary scrutiny, and the commitments we have made in that space. The House will know that the negotiation and entering into of international agreements is a prerogative power of the Executive. The new clause would give Parliament veto rights over our negotiating objectives.

The Constitution Committee in the other place reported on that issue in 2019, and stated:

“This would impinge inappropriately on the Government’s prerogative power and limit the Government’s flexibility in the negotiations.”

I agree, and as the House will know, there are already rigorous checks and balances on the Government’s power to negotiate and ratify new agreements through the Constitutional Reform and Governance Act 2010. [Interruption.] The right hon. Member for Islington South and Finsbury (Emily Thornberry) is fond of heckling, but she voted for that Act.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

I concur entirely with what the Minister is saying. Is it not the case that if we allow further parliamentary scrutiny, we will not get the best deal from these negotiations, and that at present this is the Westminster-style democracy with the greatest parliamentary scrutiny of trade deals?

[Greg Hands]

My hon. Friend is absolutely correct that our scrutiny offer compares very favourably with Australia’s and New Zealand’s and is at least equal to Canada’s. He is right in other regards as well. Some of these amendments would obligate the Government to publish the text after the end of each negotiating round. At the moment, we publish a written ministerial statement. The idea that we publish the interim text with the United States so that Australia, New Zealand, Japan and all our partners could see it when this Government—this country—are undergoing simultaneous negotiation with different partners is not a sensible way of proceeding.

[Barry Gardiner]

Will the Minister give way?

[Greg Hands]

I am going to make more progress.

This Government understand the desire of Parliament to have effective scrutiny of our FTA programme. That is why we have gone above and beyond the baseline provided by CRAG in committing to publishing comprehensive information ahead of entering into negotiations with partner countries. We have already done this—

[Several hon. Members rose—]

[Greg Hands]

I am going to make progress.

We have already done this for the US, for Japan, for Australia and for New Zealand. This has included publishing negotiating objectives and initial economic assessments. We have also committed to laying final impact assessments once negotiations have concluded and we know the content of the proposed agreement in its entirety.

[Several hon. Members rose—]

[Greg Hands]

I am going to make some more progress.

In addition, the Government have committed to providing regular updates to Parliament on the progress of negotiations. We have already adopted a similar approach for Japan, because that is an enhanced agreement. There is an important distinction that new clause 4 does not make, requiring, as it does, the roll-over agreements not yet signed to be subject to the same scrutiny as new agreements, even though the original EU-third party agreement has been subject to both EU and UK scrutiny.

[Matt Rodda (Reading East) (Lab)]

Will the Minister give way?

[Greg Hands]

I am going to make more progress.

For new trade agreements, the Government have already committed to working closely with the relevant scrutiny Committees in both Houses throughout negotiations. This includes providing confidential briefings, as appropriate, to keep them apprised. This approach is in line with the recommendations of the former Member for Blackburn, Jack Straw—who served in government with the hon. Member for Brent North (Barry Gardiner). He said in his evidence to the Lords Constitution Committee that

“it should be for the negotiators to decide how much privacy and confidentiality there should be”

during negotiations

“and certainly not others”.

Finally, when negotiations have concluded, we will work with the relevant Select Committee to ensure, where practical, that there is time for the Committee to produce a report on the final agreement before it is laid in Parliament under CRAG.

[Tim Farron]

Will the Minister give way?

[Greg Hands]

I am not going to give way further during this section of my speech.

Similarly—this is an important point—if the Committee were to recommend a debate on an agreement prior to ratification, the Government would of course consider that request, subject to parliamentary timetabling. Taken together, this means that Parliament will have comprehensive information, including economic assessments, on our agreements prior to negotiations commencing, at key points during negotiations, and at the conclusion of talks.

Finally on this point—this is extremely important—international agreements cannot themselves alter domestic law, and any changes to UK legislation would need to be scrutinised by Parliament in the normal way. We are strongly committed to transparency, as demonstrated by the steps we have taken to provide comprehensive information to the public and Parliament at the start.

[Tim Farron]

rose—

[Greg Hands]

I will put the hon. Gentleman out of his misery and give way.

[Tim Farron]

I just want to make a point about the nature of the scrutiny. A few weeks ago, the Government rightly came forward with the Trade and Agriculture Commission to add weight to the scrutiny of trade deals with regard to animal welfare, environmental standards and labour standards. What can the Minister do to give more assurance to farmers, in particular, that these deals will not lead to an undermining of their business and their standards, and put that into the Bill to ensure that those cannot then be let down?

[Greg Hands]

I thank the hon. Gentleman for that intervention, which allows me to say that the National Farmers Union has been incredibly welcoming of this proposal. Minette Batters said that it is

“a hugely important development in ensuring UK farming’s high standards of animal welfare and environmental protection are not undermined in future trade deals.”

There are three crucial things. First, we have a strong manifesto commitment to have no compromise on Britain’s standards of animal welfare, food safety and the environment. Secondly, we are transposing the EU rules into UK law to take effect on 1 January. The third thing is simply this: it would be for Parliament, if it so wanted, to block any such changes—if anybody thought they would introduce any of these controversial products, Parliament would be able to block that.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Will the Minister give way?

[Greg Hands]

No, I will make some progress. The Government are strongly committed to transparency, as demonstrated by the steps we have already taken.

New clause 12 proposes a review of free trade agreements every five years after entry into force. We have already established regular dialogue with the International Trade Committee, and that is perhaps the best forum to provide information and assessment of the UK’s wider trade environment and trade relationships to Parliament.

New clause 18 seeks to give Parliament and the devolved legislatures binding votes on, or vetoes over, international agreements, which would be to fundamentally undermine the royal prerogative and, worse, limit our flexibility to negotiate the deals that will best serve the interests of UK consumers and communities.

[Sammy Wilson (East Antrim) (DUP)]

I accept the Minister’s point that for devolved Parliaments to be able to undermine a national trade deal would be wrong. However, will he give us some guidance on the position for Northern Ireland? We may find ourselves having not continuity deals, but new deals, and we could be excluded from some of the benefits of those deals. How will he make an assessment? How will he enable the devolved Administration to have an input into decisions made on those deals if we find that we are disadvantaged by being excluded from them?

[Greg Hands]

I thank the right hon. Gentleman for that intervention. The first thing to say is that I have regular dialogue with his colleague the Minister for the Economy. I am meeting her tomorrow—indeed, I am meeting her twice—to talk about these issues. I reiterate that Northern Ireland remains part of the UK customs area and will benefit from UK free trade agreements. We have been absolutely categoric on both those points. As I say, new clause 18 seeks to give Parliament a veto over those arrangements and to ensure that the Government seek approval from the devolved legislatures on the final agreement. I am in regular contact with the Ministers for the devolved Administrations on these issues.

I will now address new clauses 7 to 9, and others in relation to standards. In answer to the intervention from the hon. Member for Westmorland and Lonsdale (Tim Farron), let me say that we have already given cast-iron commitments, during debate on this Bill and the Agriculture Bill, that we will not be diluting standards in any area, or in any way, following the UK’s departure from the EU.

[Peter Aldous (Waveney) (Con)]

I acknowledge the undertakings that the Government have given on agriculture and food production, but will the Minister also assure me that future UK trade policy will be fully aligned with our climate change and environmental policies? Will he also assure me that in striking new trade deals we will, at all times, promote low-carbon industries such as offshore wind and will not undermine UK businesses that are working hard to lower their own carbon footprint?

[Greg Hands]

I absolutely give my hon. Friend those assurances. The Government’s climate change agenda—indeed, the whole country’s agenda—is incredibly important for us at the Department for International Trade. We have put a lot of time and effort into promoting our capability and capacity in things such as offshore wind. I am regularly saying to international investors and trade partners that the UK now has the largest offshore wind capacity in the world. This is something we are seeking to export and it is something trade agreements can be helpful in. We are working with some of our key partners on these aspects of trade agreements, but they can also be something that the whole of government can work together on.

[Caroline Lucas]

Will the Minister give way?

[Greg Hands]

I am going to make some progress. Let me address matters related to animal welfare, food standards and food safety. I recognise the strength of feeling that those issues generate among colleagues in all parts of the House, but as I have told the House on many occasions, as have the Secretary of State and my Department for Environment, Food and Rural Affairs colleagues, this Government will stand firm in trade negotiations. We will always do right by our farmers and aim to secure new opportunities for the industry, and we will not dilute our high environmental protection, animal welfare and food safety standards.

[Steve Brine (Winchester) (Con)]

There is not just concern on both sides of the House; my right hon. Friend knows that there is a lot of concern out there among the public and our constituents. We have heard commitments from the Front Bench, and when I was food safety Minister I gave those commitments too, around domestic food standards. Many people want it set out in black and white in the Bill. I suspect that the Minister will go on to say why he will resist new clause 7, for instance, so what assurance can he give me, my constituents and many others who will be listening to the debate that that is not necessary because those standards are protected in law, not just in word?

--- Later in debate ---

[Greg Hands]

I thank my hon. Friend for that intervention, which allows me to explain the difference. Some of the amendments seek to dynamically align other people’s methods of production with those that we use in the UK. Yes, we will have, and maintain, exceptionally high standards of domestic production, domestic products and import controls, and we can influence our trading partners.

However, I cannot put into legislation a dynamic regulatory alignment playing field for our trading partners. That would be impractical and it would render inoperable most of our existing trade agreements, and potentially render impossible doing a future trade agreement with the European Union. If all these trading partners had to sign up to dynamically aligning their standards with the UK, that would make it extremely challenging not just to keep our existing trade agreements but to do trade agreements with partners in the future.

[Caroline Lucas]

Will the right hon. Member give way?

[Greg Hands]

I will not, because I have gone on for long enough.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. May I assist by indicating that so many people want to take part on Report that those who have indicated that they wish to speak and are on the call list should be thinking about four minutes? I call the Minister.

[Greg Hands]

I have much more to say, in relation to 50 different amendments, but I appreciate that there are a large number of other speakers, so I will call it a day there in order to allow other people their say. I think I have covered the main areas, outlining why we have the requirements in new clauses 5 and 6 on data, why we are confident of our robust approach to parliamentary scrutiny, using the CRAG process and enhanced things that we have introduced to ensure that Parliament gets the information and has the say that it needs, and finally our absolute commitment to not compromising on standards for food safety, animal welfare and the environment.

[Bill Esterson (Sefton Central) (Lab)]

International trade has rarely been more important. It is critical as we forge a new place in the world outside the European Union. It is also critical to how we recover from the pandemic, as it has the power to deliver prosperity at home and abroad, especially in the developing world as we aim towards the sustainable development goals. We will support the Government where they are right and challenge where they are wrong.

There are three key areas to which our amendments to the Trade Bill refer: social, environmental and democratic. First, on social, the Bill has profound implications for workers’ rights, human rights, public services and the economy. Secondly, on environmental, as my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) reminded us on Second Reading, international trade agreements have a massive impact on our ability to tackle the climate and environment emergency. Meanwhile, food production and animal welfare standards are matters of enormous concern to farmers and consumers alike. Thirdly, on democratic, the complete absence of scrutiny runs like the Sant Andreas fault through the Bill. [Hon. Members: “San Andreas.”] Thank you—the San Andreas fault.

--- Later in debate ---

[Sammy Wilson]

I know that I have a very short time so I just want to make one point very quickly. I am disappointed that the Government could not find any place in this Bill to give a written assurance that Northern Ireland will be able to participate fully in the international trade deals that we will strike across the world when we leave the EU. That is because they cannot give the assurance that the Northern Ireland protocol will not stop us benefiting from goods that will come into the United Kingdom as a result of trade deals or, indeed, will not make the process of selling abroad so expensive that it puts us at a disadvantage when it comes to selling in other parts of the world. We believe that we have an economy that is competitive, but it is not competitive, because we are tied through the Northern Ireland protocol to the single market and to the European customs territory, and therefore treated differently from the rest of the United Kingdom. The assurances that the Minister gives verbally cannot, unfortunately, override the compelling legal commitments in the withdrawal agreement.

[Greg Hands]

With the leave of the House, I would like to respond to what has been a wide-ranging and often well-informed debate.

This Bill is mainly about continuity, but also about sending a clear message that we welcome traders—that we are network Britain, not fortress Britain. On standards, I remind the House that none of the 20 continuity agreements that Parliament has ratified has eroded standards in any way. Not one domestic standard in relation to animal welfare, the environment, human rights or labour has been eroded by any of those agreements.

Let me try to deal quickly with four of the myths propagated by the Opposition. First, on ISDS and protection for investment, this is in the UK’s interests. The UK has never lost a case in any of these tribunals, but for 40 years UK companies, with jobs at stake, have brought these cases. Eighty of the cases—about 1,000 overall—were brought by UK companies and UK investors directly, with UK jobs at stake. That is why this can be very important for UK business and for the jobs of our constituents in making sure that businesses operating abroad are protected.

The second myth relates to devolution. We have been clear that we would not usually legislate in devolved areas without the consent of devolved authorities and never without consulting them. The hon. Member for Dundee East (Stewart Hosie) referred to convenience. If it is more convenient for the UK to legislate for all four nations, then that is a sensible thing.

In terms of standards, we have seen new clause 11, and new clause 7 is even more extreme. New clause 11 wants to make sure that no goods can enter the UK unless they have been produced at standards

“as high as, or higher than, standards which at the time of import applied under UK law”.

That could have massive unforeseen consequences. The Opposition think they are talking about chlorinated chicken and hormone-treated beef, but are they actually able to look people in the eye and say that cocoa from the Ivory Coast has been produced to at least as high environmental standards as in the UK? Are they able to say that beans from Egypt are being produced to at least as high labour standards? Are they able to say that tea from Sri Lanka comes with the same high labour standards? I think they are putting a lot of this country’s existing trade at risk.

The fourth key myth is about the NHS. The NHS remains protected and will never be on the table at any trade deal, and that includes the prices we pay for drugs.

We have had excellent speeches from my hon. Friends the Members for Tiverton and Honiton (Neil Parish), for Totnes (Anthony Mangnall), for Burnley (Antony Higginbotham), for Buckingham (Greg Smith), for Stoke-on-Trent Central (Jo Gideon), for Milton Keynes North (Ben Everitt) and for Stafford (Theo Clarke), from my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), and from my hon. Friends the Members for Witney (Robert Courts), for Montgomeryshire (Craig Williams), for South Ribble (Katherine Fletcher) and for Huntingdon (Mr Djanogly). I thank them for their contributions and the Opposition for theirs.



The Bill is very important in securing the continuity of up to 40 EU trade agreements, the establishment of a Trade Remedies Authority to protect UK businesses and jobs from unfair trade practice, and access to the £1.3 billion global market in Government procurement.

We should accept new clause 5 and related amendments to allow better sharing of data. We should reject the other amendments, which are either unnecessary, such as new clause 4, or, in cases such as new clauses 7 and 11, potentially deeply damaging for this country’s economy.

Question put and agreed to.

New clause 5 accordingly read a Second time, and added to the Bill.