Exiting the European Union (Customs)

Judith Cummins Excerpts

Monday 8th April 2019 Commons Chamber

[Judith Cummins (Bradford South) (Lab)]

The statutory instrument before us today contains extremely important measures to ensure that the United Kingdom has a robust export controls regime in place after Brexit. It is needed to prevent UK exports from being used for torture activities, capital punishment or the suppression of citizens and their human rights in other countries. It is absolutely right that we ensure the continuance of this regime once we leave the European Union. Indeed, such is the seriousness of the matter covered by the draft regulations that we should take every opportunity to review and, where possible, improve our efforts in this area.

The draft regulations are set out in this draft instrument, together with measures voted on a few weeks ago in respect of an additional instrument. The Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) Regulations 2019 were initially integrated into a single draft instrument tabled on 11 February and subsequently withdrawn. I would be grateful if the Minister could confirm why the Government withdrew that initial draft and split the measures contained in it. If there was defective drafting, can he confirm that the Government are satisfied that the revised wording properly remedies the defects?

The draft regulations operate to ensure that goods that could be used for the purposes of torture or capital punishment are banned from export and/or import or, where appropriate, that an authorisation must be sought and granted prior to their export. That is entirely right, and it is welcome that the Government have sought to continue the existing EU regime more or less unchanged in a UK-specific context after Brexit. This is by way of a series of amendments to a recent Council regulation which, as I understand it, has not yet otherwise been incorporated in our domestic statute book. For the most part, as with a number of recent statutory instruments, the draft regulations proposed by the Government seek to ensure that references to the European Union or European Community are replaced by references to the United Kingdom, our customs territory or the Secretary of State.

However, there are amendments whose intent requires clarification, and I will come to those points shortly. Fundamentally, these provisions seek to prevent the trade in goods that may be used for torture or to administer capital punishment. How we treat our citizens, including those who have committed even the most heinous of crimes, reflects the society that we strive to be. In that respect, I am proud that it was a Labour MP who brought about the end of capital punishment in this country. As I have said before, we in the Labour party want to ensure that a robust and rigorous control system is in place in respect of dual-use items, firearms and other sensitive material. That includes any items that may be used for the purposes of torture or capital punishment. Indeed, we have called for a tighter approach to our export controls regime and for the cessation of exports to countries where there is a concern that they will be used to violate international humanitarian law. It is therefore concerning that in 2015 the Government decided to drop explicit references to the Foreign Office’s long-standing commitment to making efforts to encourage the abolition of the death penalty overseas. Although I welcome the Minister’s comments, will he confirm whether the Government have any plans to make subsequent amendments to the draft regulations once the United Kingdom has left the European Union?

Regulation 2(24) amends article 24 of the existing regulations to allow the Secretary of State, by negative resolution, to vary our schedules to add or remove items and procedures, so it is crucial that we understand the Government’s policy intention in this regard. The use of the negative resolution procedure to lift restrictions currently in place is extremely concerning. Will the Minister therefore confirm whether he is satisfied that these measures are sufficient to prevent the UK’s participation in the trade in torture goods or in drugs administered for the purposes of capital punishment, including the transfer of intellectual property within international corporate structures, such that UK-developed products might be reproduced or R&D transferred intragroup for such purposes?

Paragraphs (12) and (17) of regulation 2 remove the requirement to refer decisions made in the past three years by other EU member states in respect of these regulations. It seems entirely sensible to refer to precedents established by other countries, particularly where those countries ostensibly operate the same regime as our own. Perhaps the Minister can clarify whether the Government intend to continue to refer to any such precedents in any future decisions made by the Secretary of State. Indeed, paragraph (12) removes the EU from the list of competent bodies whose findings should be referenced, so I would be grateful if the Minister clarified the Government’s intention in that regard.

Paragraph (17) of regulation 2 removes the obligation of the Commission and member states to develop best practice approaches, alongside paragraph (31), which clearly ends the UK’s participation in the anti-torture co-ordination group. Although the Government might consider that to be necessary once we have withdrawn from the EU, it would be helpful if he set out how the Government intend to continue dialogue with our international partners, particularly in the EU, on common approaches to controlling torture goods.

Furthermore, paragraphs (14) and (15) of regulation 2 seek to remove references to the national treatment provisions in respect of the trade in leg irons, gang chains and portable electric shock devices. Again, I ask the Minister to put on the record what the Government’s intended approach to these measures will be.

Paragraph (32) of regulation 2 omits article 32 of the European regulations, which requires the Commission to publish a periodic report on the impact of these measures every five years and to include proposals for improvement. How do the Government intend to report on these measures in a UK-specific context?

Finally, paragraph (33) of regulation 2 removes the national determination of appropriate penalties provisions. I would be grateful if the Minister also put on the record what the Government’s proposed penalties for breaches of these regulations will be.

Draft Trade etc. in Dual-Use items and Firearms etc. (amendment) (EU Exit) Regulations 2019

Judith Cummins Excerpts

Monday 25th March 2019 General Committees

[Judith Cummins (Bradford South) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. The sifting Committee has drawn the draft regulations to the special attention of both Houses on the basis that their drafting is defective and that particular points require further elucidation. The Department has acknowledged the legislation’s flaws, but we are still considering the defective draft, as the Government have not withdrawn it or laid before the House a draft with the defective wording amended, so the wording of the draft before the Committee may not be the wording of the final statutory instrument. Can the Minister confirm whether the Government intend to amend the regulations in the light of the sifting Committee’s comments?

That Committee referred specifically to regulation 3(5)(f), which amends the final paragraph of article 4 of the dual-use regulation so that it reads: “This Regulation is without prejudice to the right of Member States to take national measures under Article 10 of Regulation (EU) 2015/479”. In its minutes, the sifting Committee noted that it was

“puzzled as to how domestic UK legislation could, after exit day, prejudice the right of member States to take national measures under EU law”,

and that

“the Department acknowledges that this is an error and undertakes to correct it.”

Regulation 3(22) amends annex I of the dual-use regulation, which lists dual-use items for which export authorisation is required. Category 9 lists items related to aerospace and propulsion, including assemblies and components that incorporate technologies for turbine engines

“whose design or production origins are either non-EU Member States or Wassenaar Arrangement Participating States; or unknown to the manufacturer.”

Regulation 3(22)(h)(ii) amends that provision by removing

“either non-EU Member states or”.

The sifting Committee noted that that amendment would require authorisation only when the design or publication of those items originated from such places as Norway, Canada, Japan, Australia or EU member states, or when their origin was unknown. The Department acknowledged that that was an error, and gave the Committee assurances that it would seek to amend the drafting.

The sifting Committee also asked the Department to explain why the words

“This Regulation shall be binding in its entirety and directly applicable in all Member States”

had not been omitted by regulations 3 or 4. Can the Minister clarify what steps have been taken to amend the defective drafting of this legislation to correct those errors?

The regulations are intended to ensure that the existing approach to export controls applied to dual-use items and firearms is continued once we have withdrawn from the European Union. For the most part, the draft regulations proposed by the Government seek to ensure that references to “the European Union” or “the Community” are replaced, where appropriate, by references to the United Kingdom, our customs territory or the Secretary of State. To that end, we recognise that the United Kingdom must seek to ensure that we maintain an export control regime that is effective immediately after we leave the EU. That must happen with minimal disruption to ensure that the regime is operable and that controlled goods are not inadvertently exported inappropriately.

We recognise the considerable contribution that a responsible, world-leading defence and security industry makes to the UK economy. We believe that strong export controls have a vital role to play in sustaining a legitimate trade in arms while protecting UK jobs and research and development. We want to ensure that a robust and rigorous control system is in place for dual-use items, firearms and other sensitive material. We have called for a tighter approach to our export controls regime and for the cessation of exports to countries where there is a concern that they will be used to violate international humanitarian law. Will the Minister set out how the Government intend to ensure that export restrictions can be imposed when the ultimate user may be applying that item to or in a jurisdiction where there are concerns about public security or human rights?

Regulation 3(8) provides for the deletion of article 8 of Council regulation (EC) No. 428/2009. That article covers member states of the European Union where they impose restrictions on exports not otherwise included on the EU’s military list. Although it may be necessary to omit that article given that we will no longer be members of the EU, we would welcome clarity on whether the Government believe that such measures are covered in the revised regulations.

The Minister will perhaps also clarify what the basis will be for determining what constitutes a human rights violation for these purposes, given that regulation 3(27)(d)(iv) amends Annex IIe of the European regulation to omit the reference to the charter of fundamental rights of the European Union. How, then, do the Government intend to define such a violation?

Will existing licences that have been granted under the current EU regime continue to apply once the UK has left the EU, or will exporters be required to seek new licences under the UK’s stand-alone regime?

The draft regulations will impose obligations on British exporters to obtain licences and demonstrate import permission in respect of goods or services to be exported to the EU27 once we leave the EU. Can the Minister tell us whether the Government have conducted any analysis of the impact on British businesses? It is quite possible that there will be a substantial increase in the administrative burden on the British companies that service customers in those markets and the European suppliers that feed into the supply chain of those businesses—let alone the re-papering exercise that may be required for compliance with the UK’s regime.

I would also be grateful if the Minister clarified the intent of regulation 3(3)(d), which will amend the definition of “broker” to include

“any United Kingdom person who carries out brokering services from a country within the European Union into the territory of another third country”,

and will place an obligation on

“any European Union national who carries out brokering services from the United Kingdom”.

How will that provision interact with obligations that might be imposed on those people by the EU? How do the Government intend to work with European counterparts in administering such licences?

Regulation 3(7) will omit the article of the European regulation that relates to the transit through the EU customs territory of a non-Community good that would otherwise constitute a controlled good. Omitting that article leaves a question about the UK’s handling of controlled goods that are transported through the UK and intended for a destination outside the UK. I would be grateful if the Minister confirmed how the draft regulations will capture such goods.

Finally, the underlying EU regulation makes numerous provisions for procedural harmonisation, dialogue and co-operation between EU member states, including a dual-use co-ordination group chaired by a representative of the European Commission. The draft regulations would omit those obligations, which are set out under articles 11, 14, 16, 19, 22 and 23, among others. I would be grateful if the Minister advised us whether the Government intend to continue a formal dialogue with our European counterparts to ensure a common approach to restricted exports.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 14th March 2019 Commons Chamber

[Dr Fox]

We will look to replicate the success we have already had in bilateral investment treaties. UK investors have successfully brought around 70 cases against other Governments. No private company has ever brought a successful case against the United Kingdom in respect of our bilateral investment treaties.

[Judith Cummins (Bradford South) (Lab)]

The British public are clear that they do not want our national health service to be bargained away as part of trade negotiations, and they do not want foreign companies to have the right to sue our Government for decisions taken in the interests of public health, yet that is exactly what could happen if we accept ISDS and the negative-list approaches in the future agreements that the Government are proposing. Will the Secretary of State now rule out agreeing to a single clause of a single trade deal that could threaten our NHS?

[Dr Fox]

There are days when I genuinely have to thank God that the Labour party is the Opposition and not the Government of this country. We have £1.3 trillion of outward stock invested, including things like pension funds that British people will depend on for their prosperity. Were we to abandon the concept of investor-state dispute resolutions, what would happen to the protections for our investment overseas? The Labour party needs to start to think about the wider interests of this country.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 7th February 2019 Commons Chamber

[Dr Fox]

We all need to remember that the great success of free trade over the last generation has been the truly historic achievement of taking 1 billion people out of abject poverty. That has been the benefit of free trade, and in this era of protectionism we should realise that economic nationalism is a way of rolling back what has been an enormously beneficial human trend.

[Judith Cummins (Bradford South) (Lab)]

Two weeks ago, the Joint Committee on Human Rights heard how the Canadian Government had to make a substantial pay-out and issue a public apology to a chemicals company after they were sued for taking a public policy decision to ban a chemical additive to protect human health. The Committee was told that investor-state dispute settlement provisions in trade and investment agreements can

“impact very negatively on human rights.”

Does the Secretary of State recognise that danger? If so, will he rule out such ISDS clauses in future trade agreements? If not, what counter-evidence will he present to the Joint Committee on Human Rights?

[Dr Fox]

I have made clear our concern about human rights, but the idea of banning such agreements is nonsensical. This country has £1.3 trillion of stock overseas. Our investors are important in providing development in a lot of these countries, yet they are not given sufficient legal protections, which they would normally get under systems such as the UK’s. That is why those provisions are put in—to protect our investors overseas.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 20th December 2018 Commons Chamber

[George Hollingbery]

All I can say at the moment is that anything that can be done to increase free trade in the future should be looked at. Indeed, free ports have been looked at and I know that my hon. Friend has been a great champion of the idea. We will continue those discussions.

[Judith Cummins (Bradford South) (Lab)]

Supporting our regional economies through trade agreements is about more than just growing exports and opening markets to our producers; trade agreements should also be used to unlock and encourage investment across the UK. A recent report by the Centre for Towns shows that in 2017 nearly 60% of foreign direct investment went to the UK’s biggest cities, that 70% of that went to London, and that towns and communities elsewhere have seen FDI decline or remain flat. When will the Government listen to Labour and take the action needed to rebalance the economy and attract FDI right across the country?

[George Hollingbery]

I thank the hon. Lady for her question and, indeed, the whole Labour Front-Bench team for our associations and discussions during the year, which have, on the whole, been friendly and constructive.

The hon. Lady will be glad to hear that the Government absolutely understand the issue. Our foreign direct investment programme has begun to look at pre-packaging offers out in the regions, particularly in smaller towns, which quite a lot of major potential investors will not know of—they will not know about the skillsets there or about the availability of land and so on. They have been pre-packed into larger blocks so that foreign direct investors can be presented with them as places where they can take their investment outside London and the major cities.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 15th November 2018 Commons Chamber

[Dr Fox]

We will be leaving the European Union. It is important to note that sometimes the creative industries sector is generally underappreciated for the contribution it makes to the earnings of this country, not only through exports—I mentioned the £40.2 billion of goods and services exports—but through the income it generates for the United Kingdom. It is an important sector, which is why we put it at the heart of not only our industrial policy, but our trade policy.

[Judith Cummins (Bradford South) (Lab)]

The Society of Authors has called on the Government to ensure that copyright is not used as a bargaining chip in trade negotiations. Any future deals must ensure that international copyright treaties are applied by the book; anything else would risk damaging this important and iconic sector. Will the Secretary of State still be here to reassure British authors, the reading public and other creative industries that our gold standard copyright regime will be protected post Brexit?

[Dr Fox]

I should probably declare an interest as someone who has published a book and receives royalties, and who takes an interest in copyright. I and all Secretaries of State will be here to ensure that copyrights are protected.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 13th September 2018 Commons Chamber

[George Hollingbery]

I absolutely agree with the hon. Lady. It is right that members of the public should feed in all their concerns. One of the reasons why we are running this consultation is for exactly that purpose. I back her encouraging people to take part in the consultation. Indeed, when I was in Scotland recently to meet the Scottish Government, I also met Trade Justice Scotland to discuss exactly these sorts of issues.

[Judith Cummins (Bradford South) (Lab)]

The Government’s current consultation process has a worrying lack of transparency. No mandates have been published and no explanation has been given of which sectors are being considered or of what chapters may be included. Will the Minister commit to working with businesses and civil society to develop a consultation process that is more transparent, that looks at the full range of issues and that allows proper engagement on the big questions regarding our future trade? The current one is just simply not good enough.

[George Hollingbery]

In that case all I can say to the hon. Lady is that she simply does not understand the consultation process. There are 14 weeks in which the public themselves may come back to us with all their input. We are very clear that we will be exploring widely and deeply with all sectors of society, and indeed all sectors of business and all those with an interest. We have set up the strategic trade advisory group to do exactly the sorts of things she is asking for, and I am confident that this is the most open consultation on free trade agreements this country has ever undertaken.

Trade Bill

Judith Cummins Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 17th July 2018 Commons Chamber

[George Hollingbery]

There is a wide range of issues covered by this final group of amendments we are debating today. I therefore propose to focus on the Government amendments in my opening remarks.

We are committed to creating a world-class Trade Remedies Authority. That is why Government have already begun recruiting TRA staff into the Department for International Trade, so that they can be properly trained before the TRA becomes fully operational. Once the TRA is legally established, staff who have been recruited into the Department will be transferred over to the TRA. Government new schedule 1 and Government amendment 58 are crucial to ensuring that this transfer can take place. This is standard practice when establishing a new arm’s-length body, as set out in the Cabinet Office’s statement of practice on transfers of staff in the public sector.

Trade remedies cases can have material impacts on markets and jobs. We must therefore create an independent investigation process that businesses can trust. That is why we are setting up the TRA as an arm’s-length body, giving it the appropriate degrees of separation from government, and ensuring that people with the right qualities and qualifications are appointed to the board to oversee this new function.

There are other amendments in this group, tabled by other hon. Members, on the TRA. I will wait to hear the points they make before responding to the detail of those amendments. Before I sit down, however, I will underline the point made by my right hon. Friend the Secretary of State for Trade yesterday in his statement to the House. The Bill is about continuity rather than future arrangements. This is why we have now separately set out the role that Parliament, the devolved Administrations, the public, business and civil society will have in our future trade agreements. We believe our approach makes good on our commitment to build an inclusive and transparent future trade policy.

Amendments 44 to 47 reduce the sunset period and renewal periods from five to three years. This has been discussed in previous debates. Amendments 31 and 32 allow Agreement on Government Procurement, or GPA, power to reflect updates to the list of Government entities in the UK’s GPA schedule. Amendments 34, 40, 41 and 48 clarify the scope of the powers in clause 1 and 2. Amendments 59 and 60 update references to data protection legislation, and amendments 31, 35, 43, and 51 to 57 are drafting changes.

[Judith Cummins (Bradford South) (Lab)]

It is a pleasure to follow the Minister and to contribute to the Report stage of this important Bill.

I rise to propose amendment 80, in my name and that of my hon. Friends, on the Trade Remedies Authority, and to speak to the other clauses and amendments in this group. Labour supports new clause 5 and our own amendment 5 on the implementation of a customs union with the EU. Labour’s policy is for a new customs union with the EU to protect jobs and the economy, and to avoid a hard border in Northern Ireland. We will also be supporting new clause 18, as it keeps open the possibility of a customs union with the EU.

My Labour colleagues and I tabled amendment 5, which requires that any international trade agreement must not stop the UK participating in a customs union with the EU. This is in line with our party’s policy to negotiate a new customs union with the EU. As the Bill deals with international trade agreements, we wish to ensure that no other trade agreements impede on the UK’s capacity to enter into such a new customs union with the EU.

On new clause 18, as I have said, Labour believes that the only way to deliver frictionless trade and to prevent a hard border in Northern Ireland is to negotiate a comprehensive customs union with the EU. The Chequers White Paper published by the Government put forward a different proposal. We think that the so-called “facilitated customs arrangement” is unnegotiable, undeliverable and unworkable, but it at least accepts the need for frictionless trade and to prevent a customs border between the UK and the EU.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 28th June 2018 Commons Chamber

[Graham Stuart]

I am happy to give those assurances, but earlier this week we saw the Scottish National party—the hon. Gentleman’s party, under his leadership in this area—vote against a deal that fully supports the continuity of existing protections. It is interesting that the Scotch Whisky Association and all the thousands who work in the Scotch whisky business strongly support that deal, whereas the SNP opposed it.

[Judith Cummins (Bradford South) (Lab)]

In May it was reported that the Department was to axe hundreds of jobs in trade promotion—up to 10% of the workforce. The Treasury has since hinted that additional funding is available to safeguard such jobs, but we have heard that the cuts are still happening. Surely the Secretary of State agrees that axing officials whose job is to promote British exports is not the best way to build a “global Britain”. Will he therefore confirm that his Department has not, and will not, cut those jobs?

[Graham Stuart]

The truth is that the Department is growing. It is less than two years old and it is building its capacity. Today I announced the appointment of a new director general for investment, we recently announced the appointment of a director general for exports, and, of course, we are soon to complete the appointments of eight HM trade commissioners around the world, who will deploy our resources to best effect.

Oral Answers to Questions

Judith Cummins Excerpts

Thursday 17th May 2018 Commons Chamber

[Greg Hands]

May I first commend the hon. Lady for the constructive role she has taken? She and I have worked together particularly to try to benefit certain businesses in Livingston, her constituency, and in terms of her wider brief.

Yes, of course, we are absolutely committed that future trade agreements will pay heed to the importance of gender rights and a whole series of other rights in those agreements. What we can do, however, in the meantime is make sure that the trade agenda fully recognises gender equality, particularly, as I have mentioned, in relation to the Commonwealth and the WTO. We were one of the 120 WTO members at Buenos Aires in December that adopted the joint declaration on trade and women’s economic empowerment.

[Judith Cummins (Bradford South) (Lab)]

The Minister often remarks that trade has pulled millions of women out of poverty, but in the Trade Bill Committee the Government voted against ensuring that future trade deals fully comply with the convention on the elimination of all forms of discrimination against women. Has he changed his mind on this and, if so, will he ensure that future trade deals contain effective mechanisms that protect women in the global supply chain from exploitation, poverty wages and the suppression of trade union rights?

[Greg Hands]

I gently remind the hon. Lady that she of course voted against the Trade Bill in its entirety on Second Reading, which I think is always worth remembering. Secondly, I would say that we will take no lessons from Labour in this space because the UK has been a leader, over the last eight years, in making sure that this agenda is taken up at the WTO, at the European Union and at CHOGM. When it comes to future trade agreements and future trade policies around those trade agreements, that will be a matter for future proposals, as she well knows.