Trade Bill

Jonathan Djanogly Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 19th January 2021 Commons Chamber

[Greg Hands]

This Bill marks a significant milestone. Its passage into law will have numerous benefits for the UK economy: giving certainty to business with regard to our continuity trade agreements; confirming the UK’s access to the global procurement markets; providing protection to businesses and consumers from unfair trading practices; and ensuring that we have the appropriate data to support our exporters and importers. This Bill has enjoyed rigorous parliamentary scrutiny, having been through many of its parliamentary stages twice, and I am delighted to finally see it reach this stage. I am sure it will soon be passed into law, to the satisfaction of all.

I will speak to each amendment in turn, beginning with Lords amendment 1, which is in the name of Liberal Democrat peer Lord Purvis. With our new-found freedom, it is right that Parliament should be able to scrutinise effectively the UK Government’s ambitious free trade agreement programme. However, Lords amendment 1 goes far beyond what would be appropriate for our unique constitutional make-up and would unduly tie the hands of Government to negotiate in the best interests of the UK. The Government have listened to the concerns of both Houses throughout the passage of this Bill and have moved significantly to improve further its enhanced transparency and scrutiny arrangements.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

My right hon. Friend said that the amendment would go too far. In the European Parliament the power existed for MEPs to give consent to trade Bills. Now that power has come back to this country, is he suggesting that this should not go to MPs but should go to the Executive? I think that is what he is suggesting.

[Greg Hands]

I thank my hon. Friend for that intervention. I know that he has taken a long-standing interest, during the passage of this Bill and its predecessor, in these questions, and I will make two points. First, it would be inappropriate to compare this Westminster-style of democracy with the European Parliament and the European Commission. Secondly, all the trade agreements in scope within the continuity provisions of the Bill have already been scrutinised in this House. These arrangements were set out in a written ministerial statement by my right hon. Friend the Secretary of State for International Trade on 7 December. The enhanced arrangements that we have set out are entirely appropriate for a Westminster-style democracy such as ourselves; they are at least as strong as, and in some cases are stronger than, those in comparable systems, such as those in Canada, Australia and New Zealand.

[Mr Djanogly]

Will my right hon. Friend give way?

[Greg Hands]

I am going to make a bit more progress.

Finally, I remind the House that ultimately if Parliament is not content with a trade deal that we have negotiated, it has statutory powers, under the Constitutional Reform and Governance Act 2010, to prevent ratification by resolving against ratification indefinitely. That is in addition to Parliament’s power to vote down any necessary implementing legislation, again thereby preventing ratification.

That brings me on to Lords amendment 5. I suggest to the House that this amendment is unnecessary, as it covers things that the Government are already doing, or that are established precedent of the UK as a dualist state. The Government are already under a statutory obligation to publish an explanatory memorandum when a treaty is laid before Parliament. As Members will have seen, in section 5 of our explanatory memorandum to our agreement with Japan, we set out how we would implement the agreement and where legislation would be required. We, as a dualist state, have well established precedents for putting in place implementing legislation place before ratification of a treaty. If we did not do so, we would risk the UK being in breach of its international obligations. We have no desire to change this established way of working.

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[Greg Hands]

My hon. Friend makes a very strong point. The whole purpose of providing the relevant Select Committee with the relevant text in advance is so that the Select Committee can produce a report that will inform debate in Parliament. In that sense, I agree with him. On his specific point about making time available to the Select Committee to debate that report, I think that question is properly within the domain of Parliament, rather than the Government. I am sure you would agree, Madam Deputy Speaker, that allowing time for a parliamentary Select Committee to debate a report is best done through the usual channels, in conjunction with the Speaker’s Office. I do not think it is entirely within the gift of the Government to allocate time to a parliamentary Select Committee.

[Mr Djanogly]

Will the Minister give way?

[Greg Hands]

No, I am going to move on, because I want to come on to what I think might be the areas of greatest interest in this debate, including Lords amendments 2 and 3 on human rights. I remind hon. and right hon. Members of the Foreign Secretary’s statement on Tuesday last week, in which he outlined a range of measures in response to the deplorable human rights situation in Xinjiang. I also refer colleagues to the article I wrote about Xinjiang as long ago as 2011, showing my personal interest in that question.

I recognise that the amendments before the House are not specific to China per se, but some of the supporters have China in mind, and it is worth reminding Members of what the new measures the Foreign Secretary announced will do, as they are germane to the ongoing debate on human rights. The measures will help to ensure that UK businesses and the public sector are in no way complicit in human rights violations in Xinjiang. They include: first, strengthening the overseas business risk guidance to make clearer the risk to UK businesses investing in, or with supply chains in, Xinjiang; secondly, a review of export controls as they apply to the situation in Xinjiang to ensure we are doing all we can to prevent the export of goods that may contribute to human rights violations in Xinjiang; thirdly, the introduction of financial penalties for organisations that fail to comply with the Modern Slavery Act 2015; and, fourthly, ensuring that the Government or public sector bodies have the evidence they require to help them exclude suppliers that are complicit in human rights violations in Xinjiang.

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[Mr Djanogly]

Will the right hon. Lady give way?

[Emily Thornberry]

I will one more time and then no more.

[Mr Djanogly]

Is not the situation at the moment that, effectively, the amount of scrutiny provided is at the whim of the Executive? If they want to give us hundreds of pages of Bill the day before we have to sign, they can do that. If they want to give another country a month for scrutiny, as with Japan, but us no time at all, they can do that. We need a system here.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I do not think we should go much further down this line. I have 59 Back-Bench Members who wish to participate in this scrutiny now, so let us not go down the rabbit hole of scrutiny but stick to the purpose of the amendments before us.

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[Anthony Mangnall]

I will carry on, but my right hon. Friend can come back to me later on. We need to get to the point where we can help those countries where genocide is being committed. That is not done by a trade deal. What do the people who are suffering expect? Is it the High Court deciding whether or not to sign a trade deal? They expect the international community to be engaged and to take action, and that is what we must seek to do. This is global Britain, and global Britain must reach out to its allies to create new institutions and ensure that we take action where appropriate. If we are unhappy with the current international landscape, let us seek to create new international bodies with like-minded colleagues, whether it be Five Eyes or North America. Those are the things that we must do, and we must be ambitious in doing so. I believe to my heart that the Government have the right intent of doing that.

I will speak briefly on Lords amendment 1 on scrutiny. We have heard much from the Opposition about how the Bill does not give any scrutiny to the trade agreements, but that is simply not true. The whole purpose of what is going on in the International Trade Committee, of CRaG and of having debates in this Chamber is to be able to debate such agreements. Frankly, to stand up and say that Parliament is given no time is not an acceptable line of argument. While the Committee had less time to scrutinise the Japanese-UK trade deal, that is now being amended. Ministers have proven themselves particularly willing to listen and have accepted a checklist of parameters before putting forward a trade agreement in the future.

[Mr Djanogly]

Does my hon. Friend accept that under amendment 5—the Lansley amendment—if a Committee of this House says there should be a debate on a trade deal under CRaG, which he supports, that should happen?

[Anthony Mangnall]

I revert to what the Minister said earlier about the House being able to have more scrutiny through the International Trade Committee’s individual report on a trade deal, and then a future trade debate can happen around the deal, whether it is between the UK and America or whoever. There should be multiple debates on these trade deals, so that we can all feel that the scrutiny has taken place. That is important, and I do not believe it to be completely against what others are arguing. [Interruption.] The right hon. Member for Islington South and Finsbury (Emily Thornberry) is chuntering from a sedentary position. In her entire speech, she said absolutely nothing about the EU-China deal. She seems completely content to ridicule every continuity agreement that we have come to. The purpose of what we are doing here today, what we have done previously and what we will do in the future is to enable us to scrutinise those trade deals, so that the Committee may report back, and to ensure that Back Benchers from every part of this country are able to decide what our future is when it comes to those deals.

As time is ticking away, I will conclude. I appreciate hon. Members’ intention in supporting Lords amendment 3, but we can do better than that and we can go farther. No one in this House supports genocide. No one in this House supports the violation of human rights. So let us look to different ways in which we can effectively engage the international community and show leadership.

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[Mr Djanogly]

The Bill was intended to provide a limited scrutiny process for EU trade deals that we wished to roll over for the UK to operate post Brexit. That objective has now largely been achieved, which means that if this Bill is to be of any meaningful scrutiny benefit it must now address scrutiny of future trade deals, including with roll-over countries, and any proposed with countries such as the US, India and China. If we fail to do that, we will have to fall back on a pre-EU, 1920s-based system of allowing limited recourse to debates, whereby a trade deal can be delayed but not stopped and then only on ratification but not before signature. This system, now contained in the CRaG Act, is inadequate for modern needs and requires reform towards a system of pre-signature parliamentary approval, as is used by our trading counterparts such as the US, the EU and Japan.

Lords amendment 1, from Lord Purvis, based on my Report stage new clause 4, is the proposed way of proceeding. It gives Parliament a vote on deals before and after negotiations, and will require the Government to report on any changes to food, health, environment, human rights and equalities standards. It provides for consultation with devolved authorities, but it specifically retains the Government’s prerogative powers to commence, conduct and conclude trade negotiations. Lords amendment 1 has the support of all Opposition parties and many Conservative colleagues in both Houses. It has the support of the NFU, the British Medical Association, many environmental, human rights, food standards and data use groups, business concerns, the CBI and so on.

Against that, Ministers complain about loss of prerogative power, but the existing CRaG Act itself restricts such powers. Even if Ministers were to stick with CRaG, they are the only people saying that CRaG does not need reform. Lord Lansley has provided in Lords amendment 5 that if a relevant Committee asks for a ratification debate, the Government must make time for that to happen. Even that mild, common-sense proposal is rebuffed by Ministers. Ministers suggest that a pre-signature vote would make them look less decisive and weaken their hand, but I would suggest that the opposite is actually the case. In the US, negotiations are often strengthened by the Executive suggesting that Congress simply will not accept such and such a proposal.

As things stand, unbelievably, the UK shall have less legislative scrutiny of trade deals than when we were a member of the European Union. Surely that is not what taking back control was all about. The power of approval that was given to MEPs now needs to come back here to Parliament, not to be forgotten about by Ministers. Having proper scrutiny votes will go towards establishing the UK as a modern, democratic, confident international trading nation. We should be embracing that by supporting the Purvis amendment and by voting no to the Government motion to disagree to it.

[Paul Girvan (South Antrim) (DUP) [V]]

In the House in November 2020, the Secretary of State give me an assurance from the Dispatch Box that Northern Ireland would have full access to any trade agreements struck by the United Kingdom, and that they would apply to Northern Ireland in the same manner as they do to other parts of the United Kingdom. It is of paramount importance that the Government clarify again the Northern Ireland protocol, which has seriously undermined the promises made by the Prime Minister of unfettered access to our internal markets between all parts of the United Kingdom. I have serious concerns that any future trade deal will not deliver the level access that the Secretary of State promised.

I would warmly welcome a commitment today from the Government that Northern Ireland will have full and equal access to the trade deals of the United Kingdom. As an example, I want to mention our steel industry, which is predominantly engaged in export. It contributes £3.2 billion to the Northern Ireland economy in transport, manufacturing and engineering. Much of its product has to come from GB and from mainland UK. Unfortunately, tariffs of 25% were going to be imposed on steel. We need clarity on all aspects of the additional costs that are going to be given to Northern Ireland businesses in relation to the additional paperwork that will be required because we have not left on the same terms as the rest of the United Kingdom.

A major player is our agrifood industry, which contributes about £1.5 billion to the Northern Ireland economy. We welcome the support from the House to ensure that our high standards are protected. The United Kingdom leads the world in food standards and in welfare production of food, and we want to ensure that those standards are not lowered, and that other parts of the EU come up to the standards that we require.

On Lord Alton’s amendment, we as a party will be supporting Lords amendment 3 on the basis that we believe it will deal with issues such as genocide and those countries that turn a blind eye to human rights issues. It is vital that we have some pre-emptory norms set within the Bill to ensure that we can deal with those in any future trade deals that are brought forward. Northern Ireland basically has not been given the opportunity to benefit from the trade deals that the United Kingdom will benefit from through leaving the EU.