The UK’s Relationship with the Pacific Alliance (International Relations Committee Report)

Lord Ahmad of Wimbledon Excerpts

Monday 1st February 2021 Grand Committee

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I join other noble Lords in thanking my noble friend, Lord Howell, for tabling this important debate on the Pacific Alliance, and the International Relations Committee on its excellent report on this subject. I join others in paying tribute to it.

The noble Lord, Lord Hannay, and others, including the noble Baroness, Lady Quin, raised the delay between the publication of the report and the debate today. I followed up on this specifically, in preparation. The government response was not delayed; it was issued on 2 September 2019. Where the challenge has been is in the tabling of the debate, and I shall take that point back to see how we can make a much more effective response in terms of the timing of a debate on a report that has been produced. I think we all accept that last year was an incredibly different one for all of us, not least for the parliamentary authorities. Nevertheless, there is always the point that we can do better—and certainly I take the point on other debates. I shall reflect on that and ensure that we can do this in a more efficient manner. Of course, I look forward to discussions through the usual channels on tabling these debates in a timely fashion.

As the Minister for reassurance—it can be added to my portfolio after today’s debate—I reassure noble Lords that, as I go through my comments, I shall be able to provide some detail behind some of the strengthening of our relationships with these important countries. As the noble Lord, Lord Bilimoria, and others have said—my noble friend Lord Kirkhope also alluded to this—this is part of our broader global Britain strategy. Indeed, as we look towards the Pacific, one major area of my focus as the Minister responsible for south Asia has been on our Indo-Pacific strategy across all areas, many of which noble Lords have touched on. Those include issues of security, including maritime security, which was an area that was focused on, to ensure that we regard the Pacific as an important partner as we build global Britain’s strength. We will continue to work with partners across the Pacific in strengthening this. Indeed, our wider alliances include our application for dialogue status in ASEAN, the fact that we now have a post in Jakarta and an ambassador specifically to ASEAN underlining the important broader focus that the United Kingdom Government attach to our relationships in that region.

In response to the noble Lord, Lord Wallace, I think we have all recognised the challenge but also the opportunity presented with the new trade agreement with our partners within the European Union. We will continue to work closely with our friends and partners in the European region, with a broad set of priorities, in the context of some of the areas of trade that we have talked about as well as broader issues of security and human rights. That will continue, and it should not be perceived as a detriment in any way that there is an opportunity to strengthen relationships elsewhere.

When the committee wrote this report 18 months ago, as many noble Lords have reflected, nobody had an idea of how our world would be turned upside-down by the pandemic. It is shocking to think that it is almost a year since we went into that first lockdown, and how the world has changed. Thanks to the incredible efforts of our scientific community, we can see the light at the end of the tunnel—but for now we continue to suffer devastating loss of life and severe economic impacts, both here in the UK and, indeed, across Latin America.

The noble Lord, Lord Purvis, in his excellent summing up, talked about the importance of the security narrative, strengthening our partnerships with countries across Latin American and the Pacific. I stand by that; when we look at the issues of the pandemic, as my right honourable friend the Prime Minister has said, we went into this together—and the way to come out of it is by working collaboratively together. In that regard, the ravages of the pandemic have only strengthened the need for co-operation with our friends and partners. The only way in which to defeat this virus and be ready for future pandemics is by working together with transparency and good will.

In this regard, my noble friend Lady Anelay talked about the Prime Minister and the new appointment of my noble friend Lord Frost. She asked an obvious question about strengthened co-operation, and I think it bodes well for the strengthened focus on international relationships and trade partnerships in post-Brexit Britain that the Prime Minister has appointed my noble friend to this role. As the noble Lords, Lord Purvis and Lord Collins, said, it is about the importance of each tenet of diplomacy, defence and development in our approach to global Britain.

So what are we doing? In recent months, just on the Covid pandemic—to reassure the noble Lords, Lord Hain and Lord Boateng, and the noble Baroness, Lady Goudie—my honourable friend Minister Morton has co-hosted a series of seminars on equitable access to the vaccine with countries including Mexico and Chile, both members of the Pacific Alliance, as well as Argentina. Notwithstanding challenges domestically, the United Kingdom has committed £548 million to the COVAX facility. We continue to stress the importance of all countries signing up to that important instrument. These events brought together country experts and Ministers with a multilateral health system, as well as development banks. That illustrates how we are working to tackle the sheer threat as partners.

I also assure the noble Lord, Lord Boateng, that the important issues that he raised, particularly on SDG 5, continue to be a primary focus for the FCDO. I shall talk about Colombia in a moment, and he will see the important work that we have done in that respect. In the Government’s response to the committee’s report, we agreed that Latin America is an increasingly important partner for the UK’s global ambitions. It is one of the most naturally aligned regions in terms of UK values. As my noble friend Lord Howell said, we continue to work, and should strengthen our work, within those regions and should leverage the opportunity presented by our current role as Chair-in-Office of the Commonwealth. I shall explore how we can do that further, as the current Minister of State for the Commonwealth.

I reassure the noble Viscount, Lord Waverley, as well as other noble Lords, including the noble Lord, Lord Purvis, who talked about high-level contact: they may recall that the first visit that my right honourable friend the Foreign Secretary made after his appointment on 8 August 2019 was to Mexico. There were challenges for Foreign Ministers during 2020; we have perhaps not been travelling in the way we did. However, I am sure that normal service will be restored in good time, and we will have further debates in this regard. Our commitment to the region has not changed.

The noble Lord, Lord Collins, rightly raised the important issue of climate change. Nowhere do we see that commitment more than in our shared efforts to combat climate change. Latin America is one of the most biodiverse regions in the world, and many countries in Latin America are among those most determined to do what they can to make a difference. Our Pacific Alliance friends are the most ambitious in that regard. Specifically, we are presidents of COP 26, but it was Chile that had the presidency of COP 25, and we are working closely with Chile on co-operation and international discussions.

I turn to our relationship with the Pacific Alliance. As several noble Lords said, our status within the alliance is as an observer state, and we are in good company; 59 countries in total have that status. As noble Lords would expect, as such close partners we are one of the most active and share a joint programme of work across many priorities. The noble Lord, Lord Purvis, and the noble Baroness, Lady Falkner, asked about associate membership. What I can share is that our primary focus on our international arrangements in that part of the world will be initially on the CPTPP. By the way, I was rehearsing that with my nine year-old to see who could say it faster five times over without tripping over it, and I fear that he beat me by a few seconds. However, we will get used to it.

The important thing is that the announcement made by my right honourable friend the Trade Secretary underlines our commitment to the region. In spite of the pandemic and the obvious constraints that it has caused, we had a fruitful relationship with the Chilean presidency, which handed over to Colombia in December. Since the committee published its report, our co-operation with the Pacific Alliance as a group has focused on both finance and education—points well made by several noble Lords, including the noble Lords, Lord Collins and Lord Purvis, in their summing up.

I will give a few other examples. Noble Lords mentioned the importance of fintech. We have worked together in that respect on the development of the environment and regulatory best practices across the alliance, which is crucial for financial inclusion. In the area of education, we launched the English network of the Pacific Alliance with the British Council. I hope that that reassures the noble Lords, Lord McNally, Lord Hain and Lord Purvis—in my capacity as Minister for reassurance—about our continued commitment to the importance of the English language and soft power as we work with countries in the Pacific Alliance on improving English language skills and creating more opportunities. Indeed, I believe that in Peru the British Council reopened in 2015.

Trade was, rightly, a key area of focus. Trade has also continued to flourish. It is an area of huge potential for British business. As we have already heard, Latin America and the Caribbean have a combined GDP of over $5 trillion and their population is 650 million people. Of course, this growth comes with the 21st-century challenges of climate change, delivering inclusive and sustainable development, and building back better from the pandemic. We are supporting British businesses to become partners of choice in the region.

We were reminded by the noble Baroness, Lady Falkner, of the importance of fintech and the broader service sector. Between 2010 and 2019, total trade in goods and services between the UK and Latin America and the Caribbean increased by 17%. In the year to quarter 2 of 2020, it was worth nearly £30 billion. While Covid-19 has undoubtedly affected recent performance, total trade in goods and services between the UK and the Pacific Alliance countries was worth just shy of £10 billion in 2019. In under two years, the UK has secured trade continuity deals with Mexico, Chile, and the Andean countries Colombia, Ecuador, and Peru worth more than £10 billion of trade in 2019. Agreements have also been signed with other countries in the wider region, including South Korea. Currently, we are in discussion on FTAs with New Zealand and Australia.

In addition, the UK is working with Pacific Alliance partners to implement these agreements and has committed to start negotiating a new and ambitious free trade agreement with Mexico later this year. I will again address the point raised by my noble friend Lady Gardner of Parkes: we are ensuring that all sectors are included in this and we recognise the value of the tourism sector, which her contribution demonstrated.

In addition to these continuity agreements, and to further support our bilateral relationships, we have established a series of dialogues with regional partners to boost the trade environment. The inaugural UK-Colombia trade dialogue took place in July 2020, where Ministers agreed to ensure that free and fair trade supports a green and resilient recovery. At the inaugural Anglo-Chilean trade dialogue in October 2020, Ministers also reaffirmed their ambition to increase trade in important sectors such as infrastructure, financial services and life sciences. Other vital work is being done, for example on the issue of double taxation agreements between the UK and Colombia. I am sure my noble friend Lady Hooper, and the noble Baronesses, Lady Falkner and Lady Quin, will be reassured by the importance we continue to attach to fintech. We also believe that the double taxation agreement provides a good basis to allow for greater legal certainty for the UK’s brilliant financial services sector.

The noble Baroness, Lady Quin, the noble Lord, Lord Grocott, and my noble friend Lord Empey, among others, raised the important issue of trade envoys. The noble Lord, Lord Truscott, also talked of co-ordination in this sector. In the interests of time, I will respond later to the noble Lord, Lord Grocott, with a full list of trade commissioners currently working across the world. As we have already heard, we have appointed trade envoys to some of the countries in this particular region. My noble friend Lady Hooper is doing a sterling job with her responsibilities.

On co-ordination, I assure the noble Lord, Lord Truscott, that Her Majesty’s trade commissioners co-operate very closely with Her Majesty’s ambassadors and high commissioners in each country. Indeed, we work very closely across government, at Westminster and in post, to ensure that level of co-ordination and strategic approach. Many will know about Jonathan Knott, who is the new trade commissioner for Latin America, and the Prime Minister’s trade envoys, including my honourable friend Mark Menzies, who covers certain countries in that region. Although it is the Prime Minister’s call, we are looking towards Mexico in the near future in this respect as well.

Mexico, Peru and Chile also form part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. I say to my noble friend Lord Trenchard, who said that he was going to withdraw from this debate, that when I first heard the acronym CPTPP it was during a Question a couple of years back, I believe, on this very issue. I was very grateful for him for introducing that, and in time I am sure we will all get used to the acronym and be as efficient as my nine year-old in pronouncing it.

Nevertheless, the UK’s accession to the CPTPP is a priority for the Government this year. I feel the noble Lord, Lord Bilimoria, stole my thunder somewhat, but I am pleased to say that today we are submitting our notification of intent to begin the accession process. I hope this also provides the focus requested by the noble Lord, Lord Hain, on the importance of cementing our relationship with the region, which has an increasingly influential trade network of 11 dynamic economies in the Indo-Pacific and Americas region that already account for 13% of global GDP and will rise to 16% with our accession.

I would like to spend the few moments that I have left outlining the importance of our broader relationships with the four countries within the Pacific Alliance. First of all, to assure the noble Lord, Lord Hannay, and others, we are working very closely with the Pacific Alliance countries on issues of climate and COP 26. I would argue that our continuity trade agreements are not a standstill moment but rather add the basis of continuing our strong trade agreements to look to see how we can strengthen our relationships further. It was our work on climate which has, for example, allowed various countries to make quite ambitious commitments on NDCs, and that is something to be celebrated.

The noble Baronesses, Lady Blower and Lady Goudie, and the noble Lords, Lord Browne and Lord Collins, among others, talked of Colombia. We have collaborated closely with Colombia for more than 30 years on issues of security and anti-narcotics work. In recent years, our relationship has broadened significantly. The noble Lord, Lord Boateng, will be pleased to know that we work very closely on issues of women’s empowerment. As with other Pacific Alliance countries, Colombia shares the UK’s ambition when it comes to tackling climate change and deforestation and is a close regional partner. Ahead of COP 26, Colombia has already announced a very ambitious NDC of 51%.

We have also worked very closely with the Colombian Government to help implement the 2016 peace agreement and to improve and protect human rights, as the lead country on the subject at the UN Security Council. Challenges remain, but no one can doubt the vast progress that has been made. I wish to put on record my sincere thanks to the noble Baroness, Lady Coussins, for her continued work with Colombia, and for her valuable insights in helping me plan for my virtual visit to Colombia. It was a positive and collegiate experience, and I was able to appreciate the depth of our relationship.

Chile is another remarkable country: a consolidated democracy which champions free trade. Chile was the first country to conclude a trading agreement with the UK as we prepared to leave the EU. As with Chile, we have also worked closely with Mexico on access to vaccines and across various areas, including various SDGs. I hope the noble Viscount, Lord Waverley, will take note of the important role we attach to Mexico. The noble Lord, Lord Collins, mentioned our relationship specifically on issues of press freedom. Indeed, I have already reached out on that very issue, when it was announced that Mexico would become a member of the UN Security Council.

Finally, Peru is another likeminded partner working across the full range of UK trade, climate and values priorities. The breadth of our relationship sees the UK providing equipment and mobile hospitals to help the Peruvian healthcare sector. The noble Lord, Lord Purvis, talked about the importance of transport links in this respect. I have a sister-in-law who is originally Peruvian, grew up in Peru and works in the airline sector, so I assure the noble Lord that the lobbying in that respect is very clear within the Ahmad household. I assure him in my final few moments that human rights remain high up my focus as Human Rights Minister, and I say to the noble Lords, Lord Hain, Lord Browne and Lord Collins, and the noble Baroness, Lady Coussins, that these will remain a focus. Let me assure the noble Lord, Lord Alderdice, that the point he made on indigenous people is well read, and I will certainly reflect on that. I assure my noble friend Lady Anelay that the Ruggie principles remain focused in our mind.

As a final point, on the issue of visas, I ought to say to the noble Baroness, Lady Coussins, the noble Lord, Lord Purvis, and others, that I have of course noted the points which have been made. The Government are engaging with a wide group to hear the priorities, concerns and ideas about how future border and immigration systems can work.

I am really grateful to all noble Lords for the debate that has taken place but particularly to the noble Lord, Lord Howell, for tabling the Motion. Important issues looking to the future, including the issue of Chevening scholars, are well made. I assure the noble Lord, Lord Boateng, and others that we remain very much committed to the next generation and continue to invest in Chevening scholarships, which I believe have tripled from that part of the world in recent years.

Looking to the future, we will continue to work with countries across the Pacific Alliance in areas of shared interest. Much will depend on what we want to achieve and where our priorities lie, but what is certain is that the four countries of the Pacific Alliance both around and beyond the Pacific Alliance will remain important friends, and we look forward to strengthening partnerships with all those countries as part of global Britain.