Trade Bill

Lord Bilimoria Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Wednesday 30th January 2019 Lords Chamber

[Lord Lilley]

My Lords, the amendment tabled by the noble Lord, Lord Stevenson of Balmacara, and others of the same gist are remarkable. In my 35 years in Parliament, I do not recall Parliament ever having subjected any trade agreement negotiated by the European Union to the level of scrutiny which it is proposed that future trade agreements negotiated by ourselves should be subjected. This is remarkable evidence that the Opposition are converted to the merits of having an independent trade policy because it will mean that we can influence it and work it to our own advantage. Of course, that would not be the case if we had a customs union-type arrangement similar to Turkey. Turkey does not participate at all in the negotiation of European free trade agreements with others, but is simply a pawn in those agreements. We would be too, if we were in a customs arrangement with Europe but not part of Europe—in other words, if the policy of the noble Lord’s party were to become effective, as I am sure he would agree—and those sorts of assessments would become irrelevant.

More substantively, in the past when I was involved in negotiating the Uruguay round, for example, one thing that disturbed me was the difficulty of becoming accountable to the House—then the House of Commons—for what I was doing. It is quite difficult for Ministers to be accountable for something that they are negotiating, because they can always come back and say, “We got the best possible deal. If it hadn’t been for my brilliant negotiation, it would be even worse”. It is very hard for the House to respond to that. That left me feeling uneasy. If we can find a way to ensure that negotiations are properly reported, assessed and held accountable to the House, that is a good thing. One of the bad consequences of them not being accountable is that officials did not take the job of being accountable to Parliament at all seriously. They felt they were accountable to the international organisations with which they were negotiating. One needs to be worried about that and it is why it is important that we have accountability. If Parliament holds Ministers accountable, officials will be responsive to Ministers and to what the House wants—not to what international organisations and their peers in other organisations want.

That is not a party-political point. When I made that point in the Commons, my Labour opposite number came up and said it was exactly the sort of thing she experienced, not in trade matters but in other matters. Where she was not responsible to the House, officials did not take that responsibility seriously. The noble Lord and his colleagues are on to something important with their approach, which I prefer to the simplicity of the approach of my noble friend Lady Neville-Rolfe. When we have our independent trade policy, it will be important to find ways to hold Ministers to account.

[Lord Bilimoria (CB)]

My Lords, these amendments strike at the heart of the issue, because the Bill contains no provision for greater parliamentary involvement in trade agreements. Parliament’s role in UK treaties is much more limited than the democratic scrutiny given to EU trade agreements. It has no formal role in negotiations, does not have to debate, vote on or approve them. I follow on from what the noble Lord, Lord Lilley, said: for EU trade agreements, the Council gives the European Commission a mandate to negotiate on behalf of member states and authorises the signature and conclusion of agreements. The European Parliament does not take part in the negotiations but is kept fully informed at all stages, questions the Commission and can issue non-binding but politically important resolutions. The European Parliament’s consent is usually required before trade agreements can be concluded. National parliaments also scrutinise EU trade negotiations through their own EU scrutiny processes. In the UK, draft Council decisions on signing, provisionally applying or concluding an agreement are deposited and scrutinised by the EU scrutiny committees in both Houses, and may be debated on the Floor of the House or in committee.

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[Viscount Younger of Leckie]

I had only just started, and I stand by my words, because I was about to go on to say that, none the less, I understand the desire of noble Lords, including the noble Lord, Lord Hannay, to debate these issues today—and that is what we have just done. I also appreciate the desire to understand how the Government intend to fulfil our commitments to transparency on and scrutiny of future FTAs as we exit the EU.

The amendments on future FTAs pursue many aims, which the Government understand. To be helpful to the House, during my remarks I will give as much information as I can on progress and process on FTAs. I will also answer the question raised earlier by the noble Lord, Lord Hannay—but not just yet—and will agree with the remarks made by my noble friend Lady Fairhead.

Amendments 33 and 99, which the noble Lord, Lord Stevenson, spoke to, seek to ensure that Parliament has a significant role in free trade agreements via the creation of a new Joint Committee. Amendments 71 to 74, which the noble Lord, Lord Purvis, spoke to, seek to achieve similar outcomes through imposing obligations on the Government in relation to mandate-setting, transparency and scrutiny before signature. I will address those amendments together.

First, I shall give a little context. Brexit does not change the fundamental constitutional principles that underpin the negotiation of international treaties. The making of treaties, including international trade agreements, is a function of the Executive. At the same time, it has long been held—and this Government continue to hold—that Parliament should have the opportunity to scrutinise treaties effectively. In 2010, the Constitutional Reform and Governance Act confirmed, after a process of consultation, the respective roles of the Government and Parliament in treaty-making. The Government will continue to support and facilitate parliamentary scrutiny of treaties under CRaG.

The noble Lord, Lord Purvis, asked about the Israeli trade agreement. There is agreement in principle on an FTA, but subject to—

[Lord Bilimoria]

My Lords—

[Viscount Younger of Leckie]

If I may be allowed to complete this point, I will then give way to the noble Lord. There is agreement in principle on an FTA, but it is subject to a few remaining technical issues so the final text is not quite ready. When a continuity agreement is finalised, it will be laid with an Explanatory Memorandum and report.

[Lord Bilimoria]

I thank the Minister for giving way. He mentioned that the Government are for scrutiny, so why are these amendments required? The amendments have been tabled because there is a complete lack of parliamentary participation in the Trade Bill. Surely he can understand the uneasiness of this House. The Government tried to railroad the implementation of Article 50 without the permission of Parliament, and the case had to go all the way to the Supreme Court for Parliament to have a say. The Government then tried to withhold a meaningful vote from Parliament, and Parliament had to fight for that. The Government tried to hide their legal advice and Parliament had to fight for its disclosure. Now we have Henry VIII powers being implemented left, right and centre and a Trade Bill acting in a similar way over future trade agreements.

Those agreements are going to be hugely difficult to negotiate. They take a long time to implement, as I know. India has only nine bilateral free trade agreements with other countries, and not one with a western country. This process is going to be hugely difficult, and it looks as if Parliament is going to be cut out of it altogether. We are wrecking the constitution of our country and the balance between the legislature, the Executive and the judiciary. I do not think the Minister can just say, “We are allowing scrutiny”.

[Viscount Younger of Leckie]

If the noble Lord will allow me to continue, he will see that I am not saying that Parliament has been cut out of this altogether; far from it. I said at the beginning of my remarks that I would give as much information as I could, and I hope it will give reassurance to the noble Lord and indeed the whole Committee.