Australia Free Trade Agreement

Viscount Waverley Excerpts

Monday 11th July 2022 Lords Chamber

[Viscount Waverley (CB)]

My Lords, the noble Lord’s observation leads me to two regrettable observations. Trade is one of those nebulous facts of life that requires a greater degree of attention. However, just today, a senior trade writer at the Financial Times asked whether any of the candidates for Conservative Party leader will improve British trade policy—we certainly hope so. Additionally, I was dismayed to receive a message from an exasperated exporter today:

“I have a problem getting any information about the procedure and protocol from DIT on matters relating to my business”.


These issues require urgent attention.

The current limbo presents an opportunity to underpin Parliament’s contribution to governance and generally across the board, not just in relation to FTAs. The committee’s comprehensive report has met with varying degrees of support. Wherever one stands on the content of this FTA—our first negotiated from scratch post Brexit—it has significant implications in key policy areas, including food standards, animal welfare standards, environmental standards and procurement.

The FTA also sets an important precedent for how similar such agreements will be negotiated and ratified under the Government’s future programme. This is important because, as has been pointed out, it also represents the first-out-of-the-blocks forward thinking for the CPTPP discussions. Although we tend to go around this in circles, as delay in ratification is the norm of the day, many conclude that this ratification process is not adequate. Completing agreements with New Zealand, India and the Gulf Cooperation Council in the coming months is the goal, but there has been little opportunity to debate the Government’s original objectives, and we have not received comprehensive negotiation updates.

Parliamentary colleagues in Australia say that their Government will not establish their standing committee on treaties until the end of July, at which point they will embark on a scrutiny process lasting around three months. What is the rationale, therefore, for pushing this through in the UK—in the face of calls to delay across both Houses in Westminster—thus putting pressure on the 21-day CRaG period being used effectively for comprehensive scrutiny in both Houses?

There is still no clarity about whether the Government will grant time for a vote or even a debate on the UK-Australia FTA during CRaG in the other place. What is to be the process by which Parliament can secure a vote on a trade agreement? CRaG suggests that Members in the other place should resolve against ratification to allow further time for scrutiny, but there is no clear precedent for what form this might take. Possibly, we ought to consider delaying ratification and thus be in line with Australia’s timetable, giving a period to consider from Australia’s perspective some of the differing policy issues that have been touched on this afternoon, and to consider those forthcoming in the UK.

--- Later in debate ---

[Viscount Younger of Leckie (Con)]

I would like to park that—I am not going to be drawn into it—but I would like to move on to discuss scrutiny, which is probably along the lines of the noble Lord’s question. This is an important matter, raised by the noble Viscount, Lord Waverley, and the noble Lords, Lord Purvis and Lord McNicol. Again, I hope I can give some reassurance on this.

The Government have made extensive commitments to support robust scrutiny of the new free trade agreements. As the International Agreements Committee acknowledged in its report, we have upheld those commitments. In particular, the Government committed that we would ensure that there would be at least three months for Parliament to scrutinise the agreement and for Select Committees to produce reports before the formal scrutiny period under CRaG. In fact, there was six months of scrutiny time prior to commencing CRaG, and I was very pleased to receive the IAC’s report on 23 June. In addition, we published the advice of the Trade and Agriculture Commission on 13 April, two months before commencing CRaG, and our own Section 42 report on the impact of the agreement on relevant domestic regulatory standards on 6 June. Of course, I am delighted that we are here today taking the opportunity to debate the agreement as part of that scrutiny process. In total, by the end of the CRaG period, the agreement will have been under the scrutiny of Parliament for over seven months and benefited from the formal views of three Select Committees.

[Viscount Waverley (CB)]

Might the Minister consider the possibility that there could be two new policy decision-making approaches in play here, coincidentally at broadly the same time, with a new Conservative policy circumstance and a new Government in Australia? Is there any possibility that the period being discussed might take into account any policy changes, which should be included in the final draft?

[Viscount Younger of Leckie (Con)]

The noble Viscount makes a good point, and I shall certainly take that back. I shall make one or two points about the new Australian Government in my remarks.

I should also like to address the point raised by the noble Lord, Lord Purvis, about extending CRaG in this respect—again, I would like to row back on what he was saying. He asked whether we would extend; this of course is a decision not for me but for the Secretary of State for International Trade. However, we are confident that the arrangements that we have put in place for scrutiny are robust. The agreement has been under scrutiny for over six months now and benefited from three very valuable reports from parliamentary Select Committees, including the International Agreements Committee in this House.