Trade Bill

Lord Purvis of Tweed Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 8th October 2020 Grand Committee

Moved by

[Lord Purvis of Tweed]

28: Clause 2, page 2, line 35, leave out “five” and insert “three”
Member’s explanatory statement
This amendment reinserts a Government amendment made to the Trade Bill in 2018. It proposes to reduce, from five years to three, the time period during which (a) EU FTAs can be rolled over and (b) previously rolled over FTAs can be reamended.

[Lord Purvis of Tweed (LD)]

My Lords, this is perhaps the shortest group that we have had on the Bill so far. Not only will Members of the Committee be relieved about that, but I think it reflects a high level of consensus among the parties that it would be beneficial to restore one of the elements of the Bill that was stripped out when this Bill was brought to us in this new Session. It was very interesting to listen closely to the Minister’s response on the previous group, where he highlighted some of the changes that the Government volunteered on the previous Bill to assuage concerns that had been raised over scrutiny. Well, I hope that he will not be offended when I say that this is one that should go back in. If he is on a roll—or perhaps the Minister of State will be responding to this group—I hope he will be equally open to some of the changes.

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[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for that question. The arrangements that we have put in place in discussion with the committees for the Japan free trade agreement relate to the fact that we described it as an enhanced continuity agreement, which is why we have been putting it through enhanced scrutiny compared to other free trade agreements. This latest agreement, the Ukraine free trade agreement, will be scrutinised in the same way as other continuity agreements were previously scrutinised.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for that response to the noble Lord, Lord Stevenson, because I think the Minister—and I hate to say this to him—is wrong. Parliament will not have the ability to scrutinise continuity agreements going forward that it did last time, because the Government have removed the reporting to Parliament on differences.

The Minister has just outlined the Ukraine agreement. I was happy to mention it and pleased to hear the Minister refer to it. If that helps continuity in our trade, I support it strongly, but what the Minister described as the title of the Ukraine agreement is not what we had. As I mentioned before, there were four different criteria or four different categories. We had a deep and comprehensive free trade area with Ukraine, and it does not sound as if we are replicating that. In the past, we had the fact that the Government were bringing forward reports to show any differences between the two. I am not sure if it is in order for the Minister to reply to this, having summed up—I do not think it is—but I am sure I will return to this further on. It might even be on the next group. There are potentially considerable differences and, under the Bill’s proposals, we would see that they are considerably weaker. I hope that the Minister might be able to reflect on that during the course of Committee.

I am grateful for the contribution of the noble Baroness, Lady McIntosh, and can clarify to her that these amendments relate to the sunset clause of the order-making powers. We will come to the TRA elements later on, but she raises good questions that we will discuss under the TRA aspect.

My noble friend Lady Kramer made a strong point.

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[Lord Purvis of Tweed (LD)]

My final sentence, almost literally, is to agree with my noble friend Lady Kramer. She was indicating that if the purpose of these powers is to implement agreements, then three years is an appropriate amount of time for us to know if there have been any major difficulties, and whether a new agreement should be made.

We will of course reflect on what the Minister has said. No doubt as we discuss the next group, which includes Amendment 36, the Minister will have a response with regard to the duty for the Government to report “any significant differences” between proposed agreements and those that existed with the European Union. I am pretty certain that he will, given our discussion during the adjournment for the Division. I look forward to hearing that but, for the moment, I will reflect on what he has said and beg leave to withdraw the amendment in my name.

[The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)]

It is open to the Minister to respond to the question earlier, should he wish to do so. If he does not, is it your Lordships’ pleasure that the amendment be withdrawn?

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Moved by

[Lord Purvis of Tweed]

35: After Clause 2, insert the following new Clause—
“Parliamentary approval of trade agreements
(1) Negotiations towards a free trade agreement may not commence until the Secretary of State has laid draft negotiating objectives in respect of that agreement before both Houses of Parliament, and a motion endorsing draft negotiating objectives has been approved by a resolution of both Houses of Parliament.(2) Prior to the draft negotiating objectives being laid, the Secretary of State must have—(a) consulted each devolved authority on the content of the draft negotiating objectives, and (b) produced a sustainability impact assessment including, but not limited to, an assessment of the impact on food safety, health, the environment and animal welfare.(3) The United Kingdom may not become a signatory to a free trade agreement to which this section applies unless a draft of the agreement in the terms in which it was to be presented for signature by parties to the agreement has been laid before, and approved by, a resolution of both Houses of Parliament.(4) Before either House of Parliament may be asked to approve by resolution the text of a proposed free trade agreement, the Secretary of State must—(a) consult each devolved authority on the text of the proposed agreement, and(b) lay before both Houses a report assessing the compliance of the text of the proposed agreement with any standards laid down by primary or subordinate legislation in the United Kingdom including, but not limited to, legislation governing or prescribing standards on food safety, health, the environment and animal welfare.(5) In this section—“devolved authority” has the meaning given in section 4(1) of this Act, and“free trade agreement” means any agreement which is—(a) within the definition given in section 4(1) of this Act, and(b) an agreement between the United Kingdom and one or more partners that includes components that facilitate the trade of goods, services or intellectual property.”Member’s explanatory statement
The new Clause ensures parliamentary approval is required of the Government’s negotiating objectives prior to negotiations commencing towards a free trade agreement; and requires parliamentary approval of free trade agreements before the UK becomes a signatory to any agreements.

[Lord Purvis of Tweed (LD)]

My Lords, this group follows on naturally from the previous group and relates to parliamentary approval of agreements. In moving Amendment 35, I will also speak to the others in the group.

I was pleased on Tuesday last week to hear the Minister allay the concerns of the noble Baroness, Lady McIntosh of Pickering, about the lack of parliamentary accountability in continuity agreements. He said:

“I reassure my noble friend Lady McIntosh that the agreements that this amendment seeks to exclude have been subject to comprehensive EU scrutiny processes at mandate, negotiation and concluding stages. We were fully involved in those processes.”—[Official Report, 29/9/20; col. GC 31.]


Yes, we were involved through our MEPs. It is worth developing what the Minister was referring to a little further. I am grateful to him for bringing this comprehensive scrutiny process to the Committee’s attention. It prompted me to do a little more research, because I was interested in what he said.

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[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for his question. I will write to him and place a copy of my reply in the Library.

[Lord Purvis of Tweed (LD)]

My Lords, I thank all noble colleagues for taking part in this debate and the Minister for giving a comprehensive response. If we could legislate to guarantee a rational world, there would be unanimous support for it in the Committee. However, we will have to reflect on where we have got to whereas the noble Lord, Lord Lansley, and others such as myself who welcome what the Government are doing voluntarily, think that it should be the basis of a future statutory framework. I do not impugn the integrity of the Minister or his word, as I did not with the noble Baroness, Lady Fairhead, who spoke so well in this debate. It is very nice to see her making a speech. I am glad that the noble Lord, Lord Stevenson, apologised if he had caused her tears because that means I do not have to—I thought it was me. I hope the fact that I have been citing her quite a lot does not give her more discomfort on trade issues.

While we do not impugn the integrity of Ministers, we want a sustainable mechanism. The noble Lord, Lord Lansley, referenced the attempts in the House of Commons and he is absolutely right that my Amendment 35 started with Jonathan Djanogly MP. I had very good discussions with him but the reason I did not lead on that is that I did not want people to think it was simply a cheeky initiative. It was an initiative by six Conservative MPs in the House of Commons but I think it has genuine cross-party feeling behind it.

I am glad that the Minister gave a reassurance about the report that will come on the Ukrainian deal and on all others, going forward. I am still perplexed as to why the Minister is comfortable giving the assurance that all subsequent agreements will have a report, yet the Government do not want to reinstate an amendment which would guarantee that. We will just have to reflect on that.

The noble Lord, Lord Lansley, and the noble Baroness, Lady McIntosh, made an important point on timing and certainty and I was grateful to her for giving the example. The noble Baroness, Lady Fairhead, will remember the debate that I activated through the CRaG process because the Government had chosen not to bring a debate to the House of Lords. I activated one on the Faroe Islands and the Minister admitted, very graciously, that there could be improvements on consultation because, on a fisheries deal with the Faroe Islands, there had been no consultation with Scottish Ministers. That was quite breath-taking but the fact is that it happened and was corrected, so we were able to move on. It helps that there have been examples of this.

The next point was made by the noble Baroness, Lady Noakes, and I want to address it. My noble friend Lady Smith related the fact that the noble Baroness, Lady Noakes, think some of us are just animals with insatiable appetites to get more and more powers. I am just a wee timorous beastie here; I am just trying to do my best. I am not threatening or insatiable, or anything, but I am glad that she mentioned the Constitution Committee report. I took part in that debate and read the committee’s conclusions. The noble Baroness is right that paragraph 76 of the report said that the committee did not argue for Parliament to have a resolution on the negotiating objectives on any treaties. That is one point. However, she did not state the rest of this paragraph—I hope, Minister, that this is accurate research—but I can quote it. It said that

“for significant or controversial treaties, the Government will want to ensure that it has the support of Parliament at the outset of negotiations in order to secure ratification to the final text of the agreement.”

Now, we are in the realms of how that is done: either through informed consultation and debate, or through having a resolution on objectives in order for the Government to consider their mandate to then be stronger because it has parliamentary backing. That is the area that I am in.

That report was on all treaties. Jack Straw was referring to some of the sensitivities with Spain over the treaty of Utrecht. We consider a huge range of treaties, from relatively minor ones through to nuclear non-proliferation. But, as indicated by the noble Baroness, Lady Jones, and others, there is consensus that deep and comprehensive trade agreements go far beyond simple tariffs and quotas. They will impinge on consequential domestic legislation, and therefore this is justified.

That is why I am so glad that the noble Baroness, Lady Finlay of Llandaff, came back to the Minister. It is why Canada, for example—which the Minister referred to—has a federal-provincial committee on trade and a federal-provincial committee designated to agriculture, for example. The provinces are involved. They have a formal role and there have been federal state clauses in treaties that Canada argued for. Canada has a dualist system, as we do. Australia has a treaties council with the Prime Minister, the chief Ministers and the state premiers, if it wishes to activate it. The Minister sought to respond to my comments on Japan. I am glad he did, but he did not—and I am happy to be corrected—deny that Japan will have a vote in both houses of the Diet on the agreement to authorise the formal signatures.

Ultimately, the Minister asked me whether I am happy that the Government have gone above and beyond CRaG. Yes, I am delighted. I want it not to be, as the noble Lord, Lord Lansley, said, at the discretion of Ministers or for us to allow Ministers to decide whether it is appropriate. Going beyond CRaG once means that it is harder not to do it, and I am pleased about that, but for it to pass the Jeremy Corbyn test, or even the Jeremy Purvis test, I hope to have some kind of discussion on a framework.

Finally, the noble Lord, Lord Stevenson of Balmacara, referred to the fact that my amendment went through the House of Commons. There was a vote on it. The Government also chose not to progress the amendment in his name. We will reflect on this before Report, but I warn the Minister that there has been sufficient support for putting mechanisms that go beyond CRaG on the statute book to warrant this coming back on Report. In the meantime, I beg leave to withdraw Amendment 35.

Amendment 35 withdrawn.

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Moved by

[Lord Purvis of Tweed]

39: After Clause 2, insert the following new Clause—
“Conditions for trade deals: Sustainable Development Goals
(1) Regulations under section 2(1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with, and are consistent with, the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015.(2) Any future international trade agreement not implemented under section 2 shall only be eligible for signature or ratification by the United Kingdom if the provisions of that international trade agreement do not conflict with, and are consistent with, the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015.(3) Within 12 months of making regulations under section 2(1) or ratifying a future trade agreement, a Minister of the Crown must lay before Parliament a report assessing how those regulations or trade agreement is making a positive impact towards the implementation of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015.”Member’s explanatory statement
The new Clause ensures that trade agreements cannot be implemented, signed or ratified unless they are consistent with the provisions of the Sustainable Development Goals.

[Lord Purvis of Tweed (LD)]

My Lords, I apologise to the Committee, which is no doubt fed up of hearing my voice. I declare an interest for this group, as I co-chair the All-Party Parliamentary Group on Trade out of Poverty, I am a member of the APPG on the SDGs and I was co-chair, with the Nigerian Trade Minister, of an inquiry into trade and development in the Commonwealth. I thank my noble friend Lady Sheehan, the noble Lord, Lord McConnell, and the noble Baroness, Lady Bennett of Manor Castle, for supporting this important amendment.

The SDGs are a major advance in seeking consensus on achieving major advances in human development. When I took the 0.7% Act through the House of Lords, I did so knowing that we would be putting the platform for our overseas development assistance in statute, and that we would be a world leader, both morally and practically, in implementing the SDGs. Many are off track and hard work is needed to see them implemented, especially in the context of Covid-19.