Trade Bill

Debate between Jonathan Djanogly and Greg Hands

Consideration of Lords amendments
Tuesday 9th February 2021 Commons Chamber

[Greg Hands]

We move ever closer to getting the Trade Bill on to the statute books. I recognise that we are very limited in our time for debate, so I will get straight into the details. I will deal with parliamentary scrutiny, followed by standards, followed by human rights and genocide.

I begin with Lords amendment 1B, on parliamentary scrutiny. Parliament of course plays a vital role in scrutinising our trade policy. We currently have robust scrutiny arrangements that allow Parliament to hold the Government to account. The Government have provided extensive information to Parliament on our free trade negotiations, including publishing our objectives, which are also shared with the devolved Administrations, economic scoping assessments and the Government’s response to the public consultation prior to the start of each set of talks. We have also shared the text of each deal with the relevant Committees in advance of their being laid before Parliament under the Constitutional Reform and Governance Act 2010. The Committees then have the option to produce independent reports on each agreement. Furthermore, if Parliament is not content with a free trade agreement that has been negotiated, it has powers under CRaG to prevent ratification by resolving against ratification indefinitely, acting as an effective veto.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

My right hon. Friend says that Parliament can indefinitely delay ratification. That is, in practice, almost impossible under existing procedures, would he not agree?

[Greg Hands]

No, I do not agree. I think the previous Labour Government designed the CRaG process specifically with that in mind—that Parliament would have an effective veto on a trade agreement through the CRaG process by continuing to resolve against ratification indefinitely. That is my understanding of what an effective veto would look like.

In respect of facilitating debate on free trade agreements as part of CRaG, the Government have clearly stated that we will work to facilitate requests, including those from the relevant Select Committees, for debate on the agreement, subject to available parliamentary time. The Government have a good record on this. Debate took place last year on the Japan free trade agreement, alongside six other debates on continuity agreements.

I will address the amendment tabled by the Government in response to Lords amendment 6B, on standards. Although we are in agreement that our continuity deal programme has not reduced standards, I fully understand the House’s desire to ensure that standards are safeguarded. The Government therefore tabled an amendment that will provide a cast-iron statutory guarantee that the trade agreement implementing power in the Trade Bill will not be used to dilute standards. This amendment guarantees that the clause 2 power cannot be used to implement any continuity trade agreement if that agreement is not consistent with existing statutory protections in the areas of human, animal or plant health, animal welfare, environmental standards, employment and labour rights, data protection and the protection of children and vulnerable adults online.

The amendment also provides that clause 2 implementing legislation must be consistent with maintaining UK publicly funded clinical healthcare services. In other words, we are living up to our promises that trade will not lead to a lowering of standards and that the UK’s protection in these areas will continue to lead the pack. I hope that all sides can now unite around this amendment, safe in the knowledge that we are not lowering standards through the back door. I thank hon. Members for their engagement on this issue and encourage all colleagues to join me in voting in favour of the Government amendment.

I now turn to Lords amendments 2B and 3B, on human rights and genocide. With regard to Lords amendment 2B, on human rights, parliamentary Committees have the ability to produce reports on any agreement that the UK negotiates with a partner country.

Trade Bill

Debate between Jonathan Djanogly and Greg Hands

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.

--- Later in debate ---

[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.

Trade Bill

Debate between Jonathan Djanogly and Greg Hands

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

[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—

Taxation (Cross-border Trade) Bill

Debate between Jonathan Djanogly and Greg Hands

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Mr Djanogly]

rose—

[Greg Hands]

I am going to carry on and explore this point. Because Turkey is not subject to that agreement, as it is not a member of the European Union, Turkey must negotiate its own trade agreement with counterparts. It is not obliged to do so, and various counterparts have agreed a trade agreement with the EU but not agreed one with Turkey.

[Mr Djanogly]

rose—

[Greg Hands]

No, I am not giving way as I am going to explore my points in the available time.

The lesson here is that these partners will be less likely, in many ways, to do a deal with such an economy, and ours is the fifth largest economy in the world. If they can get access to that economy through a trade agreement with the EU such that Britain would be forced to lower its tariffs, the people they might want to speak to are more likely to be in Brussels than in London.

My second reason relates to the pursuit of an independent trade policy and trade agreements. If we are no longer setting our own tariffs and they are set by somebody else, that weakens our ability to have a trade negotiation and to come to a trade agreement—by definition, we have a lot less to offer.

Remarkably, the third area—trade remedies—has not been explored at all tonight. I am amazed that the Labour party wants us to join—I am not sure what the official Front-Bench view is, but I think it is this—a customs union with the EU. Who would do our trade defences? Trade defences are incredibly important; they are the topic de jour in the current disputes between the United States, China and other counterparts. If we were in a customs union, it would be likely that Brussels would be making the decisions on trade remedies that would apply to the UK. We would not have a seat at that table when those decisions, which would affect our industry, were being made. Moreover, it would be likely to be against WTO rules for Brussels to make decisions that might affect the UK, because under WTO rules, people have to show the impact on their own market, not somebody else’s. So it is not at all clear to me—

[Mr Djanogly]

Will my right hon. Friend give way?

[Greg Hands]

I am going to use my three remaining minutes.

The fourth area—again, it is remarkable that Labour is ignoring this—is the potential regulation of the NHS and other public services. I think that Labour Members have forgotten the TTIP debates of four or five years ago. They got very agitated about TTIP and the prospect of granting access to the NHS and other key public services in this country via a EU trade agreement. Now they seem to be happy for the EU, through a customs union, to negotiate potential access to the NHS and our markets. Even worse, we would not have a seat at the table when that trade agreement was set up. I find it remarkable that the Labour party is prepared to do that.

My final point has also not been raised in this debate, but it is a vital aspect of the Bill: trade preferences for the developing world. Again, I think that there is cross-party support for this country doing more and better in this area. The Bill allows for the transition of the scheme of trade preferences, meaning that the UK will have its own scheme of trade preferences. It will transfer overnight the European Union GSP—generalised scheme of preferences—and GSP+ and include everything but arms. Crucially, there will be the ability to improve on that scheme. If we stay in a customs union with the European Union, we will strangle in its infancy that ability to do better than the European Union on trade preferences.

The Trade Ministers to whom I have spoken in the Governments of countries such as India, Pakistan and Bangladesh—they are all really important markets for this country and really important friends—would welcome the UK having the ability to offer better access for their goods than the European Union currently does. I am not saying that we will make a policy decision today, but it is extremely important that the Bill contains the ability for us to do that, and it is an underrated aspect of the legislation. Whatever we think of the access currently offered by the European Union, I do not think that anybody would say that the UK would be unable to offer better access if we had our own preference scheme under the Bill. That has been neglected in this debate.

Whatever we think of the original decision in June 2016, it would be a grave error to enter into a customs union with the European Union. It is not just a question of formalities and practicalities at the border; there many other really important issues, such as trade remedies and trade preferences with the developing world, that make entering a customs union with the European Union a very bad idea. I very much support the Bill and urge the House to reject the new clauses.