Exiting the European Union: Sanctions

Wes Streeting Excerpts

Wednesday 19th July 2017 Commons Chamber

[Mr Walker]

I will respond to the hon. Gentleman perhaps later in my speech. This is more about powers than policy. The UK wants to pursue a consistent policy as we go forward, but to do so, we will need powers as we exit the European Union.

The UK’s implementation of UN sanctions and European Union multilateral sanctions relies on the European Communities Act 1972. The UK has some limited domestic powers to impose sanctions—notably in domestic counter-terrorism—but these are not sufficient to replicate the full range of sanctions in force through the European Union. While the European Union (Withdrawal) Bill will preserve or freeze existing sanctions, it would not provide the powers necessary to create new regimes, as we may need to in future, or to update, amend or lift sanctions, as we have done in the past when there are changes in circumstances in the fast-moving world of foreign policy.

When the United Kingdom exits the European Union in March 2019, we will therefore need to have new legislation in place. As set out in Her Majesty’s Gracious Speech, the international sanctions Bill will be introduced this Session. The Bill will focus on powers, not policy, establishing the legal framework that we need to continue implementing UN sanctions, and to return decision-making powers on non-UN sanctions to the UK, while preserving flexibility, for now, on how we use those powers in relation to specific countries or threats.

[Wes Streeting (Ilford North) (Lab)]

Does not the Minister accept that what he has outlined of this process really does underline the stupidity of some of the arguments around sovereignty? He says that we can now impose our own sanctions regime, but we are less powerful and less influential acting alone than we would be acting through the European Union.

[Mr Walker]

I do not agree. The referendum clearly took the key decision that we would be leaving the European Union, but that does not prohibit us from working with allies in the European Union, or indeed elsewhere. The UK will continue to be a powerful, positive influence in the world, and we can work with allies on a number of planes.

Returning to the Bill, on 21 April the Government—the Foreign Office, the Treasury, and the Department for International Trade—launched a nine-week consultation, which closed on 23 June, on the United Kingdom’s future legal framework for imposing sanctions. The consultation document was published online and sent to over 30,000 individuals and companies. Government officials also held roundtables to consult key sectors, including financial services, the legal profession, industry professionals and representative bodies, as well as international partners. The views of those who participated in the consultation have been carefully analysed by officials, and the Government response will be published shortly.

We intend to preserve important elements of our current approach to sanctions, using them in a targeted fashion to maximise the intended pressure while minimising unintended consequences. In line with the Human Rights Act 1998, we will designate people only when this is justified by evidence, and we will provide a framework for sanctioned persons to challenge their designations in a court. We will improve current practice where we can, using the greater flexibility we will have in future to provide guidance to UK businesses affected by sanctions and to grant licences to prevent sanctions from disrupting humanitarian operations. The Bill will ensure that the United Kingdom is ready, on exit day, to continue to play a leading role as a global foreign and security policy actor. It will allow us both to meet our international obligations and to support our own foreign policy and national security.

It is clear that sanctions are most effective when agreed multilaterally with our allies and partners around the world. The more countries acting in concert, the greater the impact of sanctions and the less scope there is for evasion or retaliatory measures. UN sanctions are therefore the gold standard, as they bind the entire international community. However, as we see in relation to Russia and Syria, we also need to be able to work with the EU, the US and Canada, and other allies to impose sanctions outside the UN framework.

We cannot say with complete certainty at this stage what the precise form of our future co-operation with the EU will be, and what that will look like after the UK’s exit. That will depend on the wider negotiations on our future relationship in the field of foreign and security policy. However, as the Prime Minister and others have said, there is a clear mutual interest in a deep and special partnership. We remain committed to European security and to working with our EU allies to counter global threats that we all face. Sanctions are an important means to that end, and the international sanctions Bill will ensure that we retain the necessary powers.

I welcome today’s debate as an important opportunity for Members across the House to feed into the vision for a global Britain, and to discuss how our sanctions regime will operate after we leave the European Union.