Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill [HL]

Baroness Lawlor Excerpts

Report stage
Tuesday 16th January 2024 Lords Chamber

[Lord Lansley (Con)]

My Lords, while I have enormous sympathy with the purpose of the amendment moved by the noble Lord, Lord Alton, he has explained perfectly clearly that the CPTPP members would all have to agree not just that China would join the CPTPP but that a negotiation with China would be entered into. The benchmarks against which that would be measured are laid out in an annexe to the CPTPP, and there is a great distance between where China is today and the benchmarks that would have to be met, so I see no immediate process for that.

The terms of the amendment, in creating a different legal process for the accession of one potential applicant economy as compared with any other applicant economy, represent an unwelcome position for us to have taken. It might be construed as unwelcome in other countries as well; it seems to me that it would set a bad precedent. The question that would be put to the Government is what position we should take as to whether a commission should be established to look at an aspirant economy, and the United Kingdom Government could take a position on that. While I join my noble friend in resisting the amendment, it would be helpful if he could say that there was nothing to stop the Government from potentially laying a Statement under CRaG for that purpose and asking the relevant committees to comment on it.

That would not enable Parliament to veto it—indeed, a veto would be unwelcome at that stage because it would be a decision whether or not to enter into a negotiation—but, as in other cases, the Government would be well advised to take full account of what Parliament might say in relation to any such notification and any such report by the International Agreements Committee here and the Business and Trade Committee in the other place. I wonder whether my noble friend might suggest that, if there were such a potential decision to be made by the UK Government, they could go through that process and it would be perfectly reasonable for them to do so.

[Baroness Lawlor (Con)]

My Lords, I am sympathetic to the amendment moved by the noble Lord, Lord Alton. I approach it from a somewhat different angle, on which he himself touched, which is the use of economic tools to gain hegemony geographically. We are talking about the wide area of influence that China already commands, not just in the Indo-Pacific. Already 20% of Chinese goods are destined for CPTPP countries; 50% of them are intermediate products. Of those countries, Malaysia, Vietnam and Mexico have the highest level of imports from China. When we join, that figure will go up because 13% of our imports come from China.

Whatever the outcome of the decision on this amendment, I urge the Government to consider very carefully some arrangement so that there can be collaboration between Parliament and government on the very important business aim of the UK, which is to prevent economic tools being used against UK interests, including those to which the noble Lord, Lord Alton, referred.

[Lord Purvis of Tweed (LD)]

My Lords, I have added my name to the amendment in the name of the noble Lord, Lord Alton, and did so very happily. I will comment on a couple of points that have been raised in this short debate and then, without adding to what I said in Committee, highlight the reason why strategic debates about the UK’s trading relationship with China are important.

One of the reasons I was attracted to my party was that the Liberals were part of the founding movement for free trade. At that time, we traded with China and we will trade with China in the future, but this is a debate not about trading with China but about the UK’s resilience and our strategic trade interests. The noble Lord, Lord Hamilton, made the point that Parliament’s role is not to assess trade negotiations or assess whether China would meet the benchmarks for accession to the CPTPP. His argument was rejected by his noble friend Lord Lansley, who came to the conclusion that China is a long way from meeting the benchmarks. I cannot second-guess what the other members of the CPTPP will say, and nor can we hold them to account, but we can hold our Government to account for the assessments that they make. There will have to be a public process because the difference—I put it to the noble Lord, Lord Hamilton—is that China’s accession is less of a negotiation; it is an accession process, which is different from a bilateral FTA process. On that issue of substance, it is quite different.

The noble Lord, Lord Hamilton, also said that it would be wrong if we sought, by approving this amendment, somehow to provide a veto or to bind Ministers’ hands. It would not be a veto: there is nothing in the amendment that would allow it to be a veto. I refer also to the comments of his noble friend Lord Lansley, who said that there would be nothing to stop the Government bringing a report anyway. Opposing something that the noble Lord, Lord Lansley, suggested was in the Government’s interest to do is a bit of a stretch, but the Government have the ability to present a report, and this amendment says that they should. We have argued consistently for this in the Trade Act and on other trade negotiations.

The reason why China is particularly important, as was alluded to by the noble Baroness, Lady Lawlor, is not just the scale of the UK’s trade with China but how resilient we are in relation to it. It is absolutely right that the noble Lord, Lord Alton, raised the issue of Taiwan. I have just written to the President-elect, whose DPP is a sister party of ours on these Benches, to congratulate him on a remarkable victory. UK trade interests with Taiwan and shipping coming from that area are of critical importance. It is not just that British consumers enjoy the benefit of buying Chinese products, but we have the biggest trade deficit in goods with one country in our nation’s history. The trade deficit of £40 billion with China comes at a time when the whole narrative of UK government policy is that we would do trade with other countries in Asia, not China, that would offset any theoretical reduction with trade with Europe. We know that is not the case; it has proven harder to replicate the trading arrangements that we had with our European partners with those in Asia. We also know that the growth in trade in Asian economies, as the noble Baroness, Lady Lawlor, said, is because of their trading relationship with China. We cannot have it both ways.

If there is anything that suggests why we should have more of a strategic debate about how resilient the UK is when we have the biggest trade deficit of any nation on earth with China—I remind the House that Germany has a trade surplus in the export of goods to China—it is last Friday’s actions by the Royal Air Force. The shipping of goods from China, which we depend on for our consumers, comes through the very area where we have deployed military assets in the last few days, which we discussed last night in this House. It is in our geopolitical and strategic trading interests that Parliament debates our relationship with China. Given the potential for interventions in our trading and shipping through the Red Sea and through Suez, interruptions to our trading through the Taiwan Strait or other interruptions—because China can, without notice, change its national security profile and how it seeks to impact on a country such as the UK—we are uniquely vulnerable to another nation state’s decisions about its strategic position on exporting to the UK.

On the one hand, one might argue that the more that China being more of a part of the rules-based WTO mechanisms is in our interest—that is right, but it is a separate debate. Here, we are discussing how our Parliament will hold any Government to account for decisions that they may take on an assessment of whether it is in our strategic interests to support China acceding to the CPTPP. Asking for a report and for it to be debated in Parliament is the very least that could be asked for, and I hope that will not cause any big division across the House. We should all support this, and the Government should perhaps accept the need for a report and a debate in Parliament. That is what this amendment seeks to do.

--- Later in debate ---

Moved by

[Baroness Lawlor]

15: After Clause 5, insert the following new Clause—
“Review: application in Northern IrelandWithin three years of the day on which this Act is passed and every three years thereafter the Secretary of State must lay before Parliament a review of the application of section 4 (designations of origin and geographical indications) to Northern Ireland, including—(a) a consultation of such persons as the Secretary of State considers appropriate;(b) an assessment of the impact of European Union legislation relating to geographical indications and conformity assessment of goods listed in Annex 2 of the Windsor Framework on Northern Ireland;(c) an assessment of the impact of Northern Ireland being subject to different geographical indication and technical barriers to trade provisions to England and Wales and Scotland.”Member’s explanatory statement
This is related to the amendment in the name of Baroness Lawlor to Clause 6, page 6, line 42.

[Baroness Lawlor (Con)]

My Lords, I am grateful to my noble friend the Minister for discussing my Amendments 15 and 16 with me. He is taking our discussion back to the department for consultation, and his letter will follow this week. For reasons of fairness and transparency, and in the interests of having better laws, I hope he will consider the question further.

This is an enabling Bill: it is to enable the UK to be compliant with the CPTPP, for which it signed the protocol of accession last July, in order to implement the arrangements for government procurement, in Clause 3, and those for technical barriers to trade, in Clause 2. These include conformity assessment bodies and, in Clause 4, intellectual property, including the designation of origin and geographical indications, as well as performers’ rights.

Although the whole Bill extends to England, Scotland, Wales and Northern Ireland—that is stated in it—it does not apply to Northern Ireland in respect of Clauses 2 and 4, on conformity assessment and geographical indications. That is not stated in the Bill, but it is noted in the Department for Business and Trade’s Explanatory Notes, published with the Bill on 8 November. They explain that it will be under the EU, given the Windsor Framework. Both my Amendments 15 and 16 deal with the consequences of this, and I will speak to them now. I am very grateful to my noble friend Lord Jackson of Peterborough for supporting and signing these amendments.

My Amendment 16 to Clause 6, on extent, seeks to make this clear in the Bill by adding that it

“extends to but does not apply in Northern Ireland”.

However, looking at it again, I think the amendment should also stipulate this in respect of Clauses 2 and 4. That would make the position under the Bill transparent, as in the Explanatory Notes of the Department for Business and Trade.

From my noble friend’s reply and letter on this point, I understand that when his officials—to whom I am grateful—looked into the drafting of Clause 6 with the Office of the Parliamentary Counsel, the advice was that the text reflected recommended drafting practice for amending retained EU law where it extends to the UK, even if its application is to GB—the convention being that the general application

“should not usually be included”.

I will pick up on the word “usually”. We are talking here about a very unusual occurrence. The law is being made by another jurisdiction for part of the UK’s own jurisdiction, to which the Bill extends but does not apply. This is not a matter of powers delegated to different Parliaments of the UK, so perhaps my noble friend the Minister will think again about including this exception in the Bill. It should be fair to the people who may see it as extending to them but cannot see where the law says it does not apply to them.

My Amendment 15, proposing a new clause after Clause 5, would require a review and assessment to be made of the impact on Northern Ireland of its being subject to different geographical indications and TBT provisions from those in England, Wales and Scotland. To do this, it would be necessary to assess the impact of EU legislation on GIs and conformity assessments of goods so affected.

I know that as matters stand there are very few PGIs in Northern Ireland—Comber new potatoes, Armagh Bramley apples, Lough Neagh eels—and one protected designation of origin: Lough Neagh pollan. However, there may be more in future. I will not revisit the argument I have made to the Minister in other debates, but we are looking at a different sort of EU law applying to businesses in Northern Ireland for these two clauses—the code-based law of the EU instead of the common-law approach, which is more business-friendly. I will not go through that here, but it is fair that the different systems should be reviewed in comparison with the UK system.

This is all the more important given the fluid nature of the Windsor Framework and the aims of the Government, which may lead to further easing of economic and trade restrictions under EU law. Indeed, the Prime Minister mentioned in his speech of 13 December that he

“stands ready to legislate to protect Northern Ireland’s integral place in the UK and the UK internal market”.

While I am grateful for the Minister’s explanation, I am not convinced that leaving this matter to other arrangements for review under other laws is fair. Given the fluid nature of the Windsor Framework and given that the Bill extends to Northern Ireland even if it does not apply to it, a special review is needed. I beg to move.

[Baroness Hoey (Non-Afl)]

My Lords, I congratulate the noble Baroness, Lady Lawlor, and the noble Lord, Lord Jackson, on these two amendments.

It is important that we in this House always try to be as open and transparent as possible about what is in the law but, frankly, this Bill is very confusing. It mentions none of the ways in which Northern Ireland is excluded and only on page 15 of the Explanatory Notes is there a long list of the different parts of the United Kingdom and the provision for England, Wales, Scotland and Northern Ireland. Clause 2 applies to England, Wales and Scotland, and extends to Northern Ireland—most people reading this would think, “Great, it is obviously extended to Northern Ireland as part of the United Kingdom”—but does not apply there. Again, Clause 4 applies to Scotland, England and Wales and extends to Northern Ireland, but does not apply there.

The way the noble Baroness talked about the word “usual” and how unusual this is was so apt. It goes to the heart of everything in the protocol and the Windsor Framework that we have been talking about for a long time. The Government of the United Kingdom have not been open, honest or straightforward with the people of Northern Ireland about what the Windsor Framework means. Every week or month we find something new and different from which Northern Ireland is being left out. Yesterday we found it was left out of live animal exports, so poor animals in Northern Ireland can be sent over the border into the Republic and down to the south of Ireland, on to a boat and off on a very long journey to France or Morocco. We have the current debate about the Rwanda Bill; it will probably not apply to Northern Ireland in the same way.

We cannot apply this Bill to Northern Ireland because we have delegated powers to the European Union. A foreign jurisdiction and a foreign court are running parts of our country. This House should be ashamed of what is happening. I very much support the amendment to bring this out into the open so that people understand that what the Government say the Windsor Framework and protocol are doing is not actually happening.

--- Later in debate ---

[Lord Johnson of Lainston (Con)]

I am extremely grateful to my noble friends Lady Lawlor and Lord Jackson for Amendments 15 and 16, and to my noble friend Lady Lawlor for the very useful conversations we have had on this matter. Of course, the input from the noble Baroness, Lady Hoey, and the noble Lord, Lord Dodds, is always extremely welcome.

I am very sensitive to this matter. To be honest, I see my role as bringing a powerful trade deal to the whole of the United Kingdom. I am very aware of the points being raised by noble Lords in this House, but, I am afraid, at this stage of the proceedings I must concentrate on the specifics.

To answer the amendments specifically, I assure my noble friends that we will keep this under review once an Act and stakeholders in Northern Ireland will be an important part of that. Regarding the application of EU law in Northern Ireland, I remain of the view that the people of Northern Ireland are best placed to scrutinise the legislation applicable in Northern Ireland once the Northern Ireland Executive is restored. The Windsor Framework will provide them access to the Stormont brake, as noble Lords will well know. This will enable them to block specific laws impacting Northern Ireland. Furthermore, there will be regular opportunities for the people of Northern Ireland to have a say, via the consent vote. These are all points that have been well raised.

The CPTPP takes account of the Windsor Framework, and it is specifically noted that this is the case. Amendment 16 is superfluous, because under the Windsor Framework the EU’s GI schemes continue to apply to Northern Ireland. Our accession to CPTPP does not alter this. The treaty, accession and becoming a party to CPTPP do not change any of the discussions that noble Lords have had previously about Northern Ireland.

Additionally, the text reflects the recommended drafting practice in Bills for amending an assimilated EU regulation where the extent is to the UK, even if application is only to Great Britain. I have worked with my officials to see whether or not it is appropriate to include the phrase, and the reality is that it is not considered appropriate. It is felt that it would cause complications and confusion in the drafting of the Bill.

I hope noble Lords will be assured that I have spent a great deal of time discussing these points internally. I am very comfortable, as Investment Minister—as I am sure my noble friend Lord Offord of Garvel will be in his role as Exports Minister—to continue the work that we have done to promote Northern Ireland, following on from the success of the well-supported Northern Ireland Investment Summit and the work my colleague is doing to ensure that we have a strong export market for first-class Northern Irish produce. This will benefit from our trading relationships through CPTPP.

I look upon this Bill as an enormous positive for trade in Northern Ireland. We will do everything we can at the Department for Business and Trade to make sure that traders, businesspeople, farmers and citizens of Northern Ireland can get the most benefit from it. I recommend that the technical amendments that my noble friend Lady Lawlor seeks to place in the Bill are not pressed, because I do not think they will help in the promotion of CPTPP or in the clarity of the Bill. I am very grateful for this debate at this stage of Report.

[Baroness Lawlor (Con)]

I am very grateful to my noble friend the Minister for his constructive approach to our discussions. Though I confess to being a bit disappointed by some of things I have heard, I am heartened by the support of your Lordships and the contribution to the debate of noble Lords today.

It is very important that we should be transparent in our laws. I welcome the CPTPP—I think it is a wonderful treaty. I would like the fact that we are moving to our own laws on business and the economy to mean that this position applies to Northern Ireland, as part of our jurisdiction and as part of the UK’s entire economic area. However, I understand that that is not the purpose of this Bill. I understand what the Minister has been advised of on the conventions. I am not happy with the conventions but I hope that we can continue to work to do what we can to make sure that Bills in this House are more transparent. On that basis, I beg leave to withdraw the amendment.

Amendment 15 withdrawn.