Export Control (Amendment) (EU Exit) Regulations 2020

Lord Purvis of Tweed Excerpts

Wednesday 2nd December 2020 Grand Committee

[Lord Purvis of Tweed (LD)]

My Lords, this is a short debate on necessary measures, as the Minister indicated, and I am grateful for the clarity with which he outlined them. We cannot have gaps, uncertainties or confusions in the issuing of export licences and in the interaction between UK law and European law. I need not refer to the 32nd report, because the noble Baroness, Lady McIntosh of Pickering, outlined the issue so clearly; I look forward to the Minister’s response to her questions.

As the Minister indicated, we have debated dual use and export control in the past—I took part in some of those debates. Given that dual use potentially applies to the civil and military use of goods and intermediary goods, this could be a delicate and controversial area. It is delicate because sometimes it is not easy to draw lines for component goods that can be exported for civil purposes but where the recipient country does not share the same high standards in its approach to human rights as the United Kingdom and can use those goods for different ends. It is not always easy for the Government, when issuing licences, to have a clear understanding of all the potential uses of some of these goods. I sit on the International Relations and Defence Committee, where we have debated areas of controversy around export licences. We know that the Government have changed their position on certain export licences and have paused licences when human rights abuses have been raised. Ensuring that there are no gaps or uncertainties is vital, as the Minister said.

This is even more complex because, for the first time in our country’s history, I think, the licensing system will operate under two systems of law: European Union law and United Kingdom law. That adds a greater burden on those businesses that are seeking a licence for export from the United Kingdom, whether from GB or from Northern Ireland. We know that there is a huge amount of trade between Northern Ireland and GB in intermediary goods, so there is complexity around component parts.

That leads to the wider issue that I wish to raise with the Minister, with which he will be familiar from our discussions on the Trade Bill and other measures. The noble Lord, Lord Empey, and others have also raised this issue. Businesses and people in Northern Ireland will be operating under continuing EU law, without democratic accountability for those who are making the decisions, while the United Kingdom Government will operate for GB, so in this area there will need to be good communication between the European Union and the United Kingdom and clear ways of working between the Minister’s department and the European Commission.

A situation that will almost inevitably arise in the future, although not necessarily under the measures that the Minister has indicated are being reformed, is when there are differences of approach between the United Kingdom and the European Union. Almost by definition that will happen, because one of the motives for leaving the European Union is for the United Kingdom to be able to make its own decisions. I would like the agreement with the European Union, which we hope will be signed this weekend, to ensure close working on how the licensing system will operate and on definitions for goods relating to torture or execution or goods with a civil or military use. I hope that there will be specific ways of working between the European Union and the United Kingdom so that a situation does not arise where the Government are operating a licensing system in which there are two different sets of policy purpose. As the Explanatory Notes indicate, some of these measures fall under UN obligations that we have adopted, so I hope that that will not arise, but I would be grateful if the Minister could offer that reassurance.

My second question is linked to the movement of goods—they could be component parts or intermediary goods under the licensing regime—between Northern Ireland and GB before they are then exported. We do not need in this short debate to rehearse the export procedures from Northern Ireland to GB, but it is likely that some of the goods for which export licences will be sought for export from Northern Ireland and/or Great Britain will contain components manufactured in different parts of the United Kingdom. The original source of a component could be Northern Ireland; when that component is moved to GB, it would be exported from there under UK law—or, vice versa, it would be exported under a licence under EU law. If we are to have unfettered access, which is the Government’s policy, and there are no checks, will the Minister say whether specific mechanisms are in place to ensure that there is no unintended loophole with regard to component parts?

My final question is on a point of clarity. If the Minister cannot answer it today, I would be happy for him to write to me. We still do not know what the border operating model for Northern Ireland will be. We hope that we will get a degree of clarity from the European trade agreement. We know what the border operating model is for Great Britain, but we are still waiting for that information for Northern Ireland. What role will the European Union have in checks on goods leaving exit ports in Northern Ireland? We need clarity so that exporters know with a high degree of certainty what the procedures will be. What has been beneficial in the past is that NGOs, human rights organisations and others have been able to observe and monitor the trade and know that proper rules are being followed and that there is a degree of accountability. I am aware that that is probably broader than what these proposals aim to correct and amend, but if the Minister can reassure me that there will not be loopholes in this area, I would be most grateful.

There may be a period after January next year when we can review the relationship between the European Union and the United Kingdom in the interaction of legislation on export licensing. We have raised these questions in the past, so I know that the Government always say that they keep the licensing regime under constant review—that is the terminology the Government always use. I hope that part of that constant review will be an ability to come back to Parliament within a set period to ensure that this is one area where there is no benefit for either the European Union or the UK in not having close working relationships. I do not need to remind colleagues that the licensing of these goods is to protect people from the worst excesses of human rights abuses from Governments in countries that we do not wish to have these products. If the Minister could respond to those points, I would be grateful.