Australia Free Trade Agreement
Debate between Viscount Younger of Leckie and Lord Robathan
Viscount Younger of Leckie (Con)
I am not able to say whether we have responded, but I shall certainly get back to the noble Lord to find out exactly where we are on that process.
The IAC’s report acknowledged that the Government have upheld their commitments with regards to scrutiny of this agreement. However, I acknowledge the points that the committee made on scrutiny—first, that there is dialogue with committees prior to mandates being set for future agreements and, secondly, that we notify the IAC of all significant amendments to FTAs made after ratification. We are carefully considering the IAC’s report and will, of course, respond in due course. That, I hope, leads me to answer a question raised by the noble Lord, Lord Oates, on lessons learned. He made a very valuable point there.
I move on to the agreement itself. In response to the remarks made by my noble friend Lord Udny-Lister, he is right that this is not only the first FTA negotiated from scratch by the UK Government since leaving the European Union but the first trade deal to be signed by the UK as an independent free-trading nation in nearly half a century. Since the Secretary of State for the Department for International Trade put her signature to the deal in December, she has gone on to sign an FTA with New Zealand and a digital economy agreement with Singapore. This means that we have now secured trade deals with 71 countries, on top of the trade deal with the EU. Together, these countries accounted for £808 billion of UK bilateral trade in 2021. This is an immense success story.
This FTA was negotiated quickly and efficiently, despite the turmoil brought about by Covid. It shows the world what global Britain can do as a truly independent nation. I say to the noble Lord, Lord Oates, that we would not have been able to negotiate this agreement as a member of the European Union. Having left the EU, we are pursuing arguably the most ambitious programme of free trade agreements that this country has ever seen. As we speak, the Department for International Trade is conducting FTA negotiations with India and Canada. Negotiations have also been launched with Mexico and with the Gulf Cooperation Council, a customs bloc of six countries made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Negotiations will soon be under way with Israel too and the department has a packed programme of FTA negotiations coming down the track.
What we have achieved through this agreement, the UK-Australia FTA, is just the beginning. The noble Lord, Lord Bilimoria, described the deal more eloquently than I am able to just now, but this is a world-class deal between two like-minded nations, friends and allies, that will bind us together for years to come. Australia is already an important trading partner for the UK—last year, our trading relationship was worth £14.4 billion—but the ties between our two countries go far deeper than that. It is a relationship forged through a shared history and a common language, a relationship that has an unyielding belief in democracy, liberty and the rule of law.
I shall attempt to answer a point raised by my noble friend Lady McIntosh and the noble Lord, Lord Kerr. I will not be able to answer it in full and I may need to write a letter, but whether we have a trade strategy is a very fair question. We do indeed have a trade strategy and we have communicated it publicly through several publications, such as the integrated review, the plan for growth and strategic cases for each trade partner we are about to enter negotiations with. I probably need to write a letter, but the headlines concern what type of trading nation we want to be, what our aims for UK trade policy are, how we will try to achieve these aims, the connections to the export strategy and the strategic case for FTAs. We believe it is all there but I think I need to put that in writing for the House.
I shall move on to the benefits—which were questioned, by the way, by my noble friend Lady McIntosh. We believe that the FTA we have agreed will ensure that future generations continue to benefit from this relationship in more ways than one. We will be able to work together like never before to tackle existential challenges, such as climate change, health pandemics and threats to global security. This deal will deliver benefits to people, businesses and communities in every corner of the UK, playing a key part in levelling up our country.
Lord Robathan (Con)
I sense a peroration coming, but does my noble friend have the figures for the amount of beef and lamb given as a quota through the European Union, and how much has actually been imported into the UK from the Antipodes?
Viscount Younger of Leckie (Con)
I do indeed and if my noble friend will allow me, I shall come to that. To continue my so-called peroration, the deal will increase trade with Australia by 53% and boost the economy by £2.3 billion. I take note of the rather negative view of the noble Baroness, Lady Liddell, and I will explain what the extra benefits of this deal are. It will enable the 15,900 businesses that already export goods to Australia to sell their products in ever greater quantities, while opening the door for thousands of other businesses to start their exporting journey. This means exciting new opportunities for Scotland’s world-renowned whisky distillers, Wales’s fintech companies and Northern Ireland’s leading medical and pharmaceutical firms, as well as the north-east’s car manufacturers and aerospace companies in the West Midlands.
My noble friend Lord Udny-Lister asked about the reach of this agreement—another good question. I shall just mention SMEs, because this deal will benefit businesses of all shapes and sizes, not least the UK’s SMEs—the backbone of Britain—which comprise more than 99% of all private sector businesses, employing 16.3 million people and generating £2.3 trillion of income.
I come to investment. The deal will unlock further investment potential between our two countries too, with UK investors able to benefit from broader and deeper market access than Australia has ever guaranteed in a previous trade agreement. This will allow us to build on the £37 billion already invested in Australia’s economy in 2020. Of course, there will also be benefits for UK consumers, who will be able to enjoy more of their favourite Australian products, such as Jacob’s Creek and Hardy’s wines or Tim Tam biscuits.
The subject of services was raised, not least by the noble Lord, Lord Liddle. I was pleased to read the comments of the IAC in its report, welcoming the provisions that have been secured. The services sector, as we know, is of huge importance to the UK, and we believe we have negotiated a deal that plays to these strengths. I say to the noble Lord, Lord Liddle, that Australia has gone further than ever before in granting access to its market in several areas, with unprecedented levels of regulatory transparency. UK services from architecture and law to financial services and shipping will be able to compete in Australia on a guaranteed equal footing. This could increase exports of UK services to Australia, which were worth £5.3 billion in 2021.
The “Professional Services and Recognition of Professional Qualifications” chapter will support work towards mutual recognition of professional qualifications. This could lead to professionals such as lawyers, engineers and accountants no longer having to requalify to practice in one another’s countries. On mobility, the noble Lord, Lord Liddle, is right; this is a good part of the agreement, whereby there is a way in which our people can have good movement between one another’s countries. For the first time, UK service suppliers, including architects, scientists, researchers, lawyers and accountants, will have access to visas to work in Australia without being subject to its changing skilled occupation list.
I also acknowledge the point made by the noble Lord, Lord Bilimoria, about innovation. This agreement contains the world’s first dedicated innovation chapter, underlining the important role that innovation will play in the future. We want to take full advantage of this, particularly in terms of technological developments.
On agriculture, which I definitely want to come on to, the committee noted the concerns of the farming community, specifically that the agreement may lead to potential surges in agricultural imports to the UK. I want to provide some reassurance. We have secured a range of measures to safeguard our farmers, including tariff rate quotas for a number of sensitive agricultural products; product-specific safeguards for beef and sheepmeat, which were raised today in the debate; and a general bilateral safeguard mechanism providing a temporary safety net for all products. As the noble Baroness, Lady Hayter, said, we should remember that Australia’s focus is on exporting to lucrative markets in the Asia-Pacific region, and it is relatively unlikely that beef and sheep would be diverted to the UK from Asian markets in very large volumes, although I note the slightly pessimistic view of the noble Baroness, Lady Liddell.
Finally, answering the points made by my noble friend Lord Robathan, our estimates suggest a reduction in gross output of around 3% for beef and 5% for sheepmeat as a result of liberalisation, relative to the baseline. These estimated impacts would be felt gradually over the staging period. It is likely that the increase in imports will primarily displace beef imports from the EU and sheepmeat imports from New Zealand. Further testing suggests that, given the strong consumer preference for UK meat, gross output could fall by as little as 1% in beef and 2% in sheep.
The environment was raised by the noble Lords, Lord Oates and Lord Kerr, and the noble Baroness, Lady Liddell. I note the disappointment expressed but, to come back to noble Lords on this, we have secured the most substantive climate provisions that Australia has ever committed to in an FTA. The deal also recognises our right to regulate to reach net zero and affirms our mutual international environment and climate commitments, including the Paris agreement. There is a lot more I could say about that, but I want to move on and finish—
Chinese Products and Companies: Human Rights Violations
Debate between Viscount Younger of Leckie and Lord Robathan
Viscount Younger of Leckie (Con)
The UK has no plans at the moment to issue guidance but I am very aware of the United States export administration regulations, which contain a list of the foreign entities, including businesses, that are subject to specific licence requirements.
Lord Robathan (Con)
My Lords, the global economic power that China has established must concern us all. What assessment have Her Majesty’s Government made of the intentions of that global reach? Is it purely about the economy or is China in fact trying to establish a hegemony that will lead to it being able to dictate to the rest of the world how it behaves?
Viscount Younger of Leckie (Con)
It might be both of those but if we look at the work being done through the G7, which is the high-level stuff, trade Ministers have committed to work together to protect individuals from forced labour, including mitigating the risks of it. We are convening a technical discussion in order to share lots of data and evidence. G7 leaders are committed to continuing to work together through domestic means and multilateral institutions to protect individuals. That very much relates to my noble friend’s question on China.
Ballymurphy Inquest Findings
Debate between Viscount Younger of Leckie and Lord Robathan
Viscount Younger of Leckie (Con)
Well, it is clear that certain court cases that have been brought forward have been unsatisfactory. As the noble Baroness alluded to, we are talking about events that happened 40 to 50 years ago, so it is extremely difficult to find admissible evidence that is helpful. But I go back to the point that, in bringing forward issues on legacy, as we have pledged to do, we must do our best to get to truth, find justice and get the information that victims’ families want.
Lord Robathan (Con)
My Lords, I know Ballymurphy rather better than I would wish. The Statement says that the Army made terrible errors. The 1st Battalion Parachute Regiment showed itself to be out of control and without any proper discipline, both in Ballymurphy and a few months later in Londonderry, on Bloody Sunday. I was 20 at the time, a probationary officer at university. I could have told you that then. Now it is 50 years ago—the same distance away as the Boer War was when I was born. This is tragic, but it is time to move on from this terrible, shameful disgrace, and from the many hundreds of murders committed by terrorists. For instance, we will not be able to convict Gerry Adams for his involvement in the 1972 murder of Jean McConville, a mother of 10, or those responsible for many other victims—police, Army and civilians—of the IRA and loyalist terrorist groups. Is it not now time to draw a line in the sand?
Viscount Younger of Leckie (Con)
Well, my noble friend makes a point, to the extent that those who were killed and injured during the Troubles came from all communities and also included many members of the security forces. The state must hold itself to the highest standards and acknowledge where its role has fallen short of these standards. As I said earlier, I hope that the PM’s apology and my comments today make it clear that we are not afraid to do this, and that all sides must look at their actions and work together to enable Northern Ireland to move forward. This is why the Secretary of State for Northern Ireland has committed to working closely with the Irish Government, Northern Ireland parties, civic society and the wider community, in the weeks and months ahead.
Northern Ireland: Citizens’ Rights
Debate between Viscount Younger of Leckie and Lord Robathan
Viscount Younger of Leckie (Con)
As the noble Lord is alluding to, the Irish Government have separately offered higher education students in Northern Ireland the chance to take part in Erasmus+. Institutions taking part will remain eligible for the Turing scheme, which, as he may know, will enable 35,000 students in higher education, further education and schools across the United Kingdom to go on overseas placements.
Lord Robathan (Con)
My Lords, I spent the best part of a year of my life defending the position of the citizens of Northern Ireland, from whatever community, as equal citizens of the United Kingdom. The current situation is not acceptable. Will my noble friend go back to the Government and say that my noble friend Lord Frost, or whomsoever, must negotiate to amend, scrap or even ignore the protocol?
Viscount Younger of Leckie (Con)
I do not agree with my noble friend on that point. The point is that the protocol has to work. As I said earlier, urgent progress is being made to address the outstanding concerns. The House will know that my noble friend Lord Frost will appear at the Dispatch Box tomorrow and I am sure that my noble friend will wish to put certain questions to him.
United Kingdom Government-Northern Ireland Executive Joint Board
Debate between Viscount Younger of Leckie and Lord Robathan
Viscount Younger of Leckie
As I said earlier, the members of the joint board, which is made up of the Secretary of State, the Deputy Minister and the First Minister, are in touch. They have yet to meet, but they will meet very soon. On the health issues and Covid-19, the CMOs are in direct touch. There is a very good link between the CMO in this country and those of the devolved Administrations to discuss matters relating to that very important point.
Lord Robathan (Con)
My Lords, will this joint board be able to take a look at the vexatious prosecution of former public servants—police officers and Army soldiers—who were sent to Northern Ireland to do their duty to protect the people of the United Kingdom and are now being pursued unnecessarily through the courts, often some 40 years later?
Viscount Younger of Leckie
My noble friend is right, and I know he takes an interest in these matters. There is broad agreement that the current approach to legacy issues in Northern Ireland is not working well for anybody. That is why this Government are committed to address the legacy of the past in Northern Ireland in a way that provides certainty for veterans and justice for victims. The Secretary of State for Northern Ireland is working very closely with the Ministry of Defence, the Office for Veterans’ Affairs and other Whitehall departments to develop proposals.