Continuity Agreement: Kingdom of Morocco — House of Lords, 2020-03-09
Topic: Foreign Trade
John Davies (Labour, Centre-left): My Lords, I congratulate my noble friend Lord Stevenson on getting the opportunity to debate this, and I particularly congratulate him on his initiative in making a very interesting constitutional suggestion. A lot of colleagues will probably have seen the Order Paper and thought that this subject was slightly technical and esoteric, which may be why the Chamber is not in danger of bursting its seams, but my noble friend has raised a very general point, which is that we are bad in this country at ratifying treaties. It is an important legislative role in other countries and, of course, the United States does it with great thoroughness—with such thoroughness that the executive branch tries to avoid any ratification process starting in the first place. Nevertheless, that is democracy, and I think there is a great lack of democracy here, where the bureaucrats negotiate these agreements and there is no opportunity at all to call them to account, or for Parliament to express a view on the content of these agreements. So I thought it was a very good suggestion, and I know my noble friend Lord Stevenson is a serious and determined colleague. When he makes a suggestion, it is not just intended to be a nine-day wonder. I am sure that he will continue with this and take it further, and he will certainly have all the support I can personally give him The agreement with Morocco carries forward our market access which we currently have as members of the European Union—I say "currently have", but that means only long as the transition period lasts. I have to make a confession: during the debates on Brexit over the past four years—we had an awful lot of debates in the media, in this House and in public meetings, and I have taken part in all three types of debate—I quite often attacked the Government, and indeed tried to mock the Government. I said how utterly absurd it was for the Government to say that they wanted to sign more free trade agreements with more countries around the world and to go ahead with Brexit, which involved us overnight losing our access to about 45 different trade agreements that the EU already has with these countries. In actual fact, I must congratulate the Government on having, in this particular case—and one or two others, such as with Jordan—managed to agree in principle to carry forward the existing EU agreement without the discussion breaking, as I suspected it would, into completely new fields, with new demands for new concessions that would make this a very long-winded process. So it is only fair to say that I congratulate them on making that progress. However, I very much retain my view that it would be a great mistake to open negotiations on new free trade agreements with countries where we are not just carrying forward an EU agreement and with those with which we do not currently have a national free trade agreement before we have concluded the negotiations with the European Union or the United States. When I say "before we have concluded", I mean before we have either concluded them or have determined that there is no purpose in pursuing that particular subject with those countries for the foreseeable future—which of course is another possible outcome My reason for saying that is that, whereas in an agreement like this, which carries forward the terms of the existing EU-Morocco agreement, there is no change in the competitive position of exporters from the United States or the European Union—they pay duties at the present time, if there are duties and tariffs, and they will continue to pay them, and they are not a party to this particular deal, so their position is unchanged—if you started to negotiate a new agreement with another country where there are tariffs and quotas, we may find ourselves in a position where perhaps we can negotiate a position in which British exporters will not be paying them while, presumably, exporters from other countries will. British exporters would then gain an advantage in that particular market vis-à-vis exporters from those other two countries—looking at the EU as a country. The EU and the US might be less than pleased, although of course the amounts involved may be tiny. I think that Morocco accounts for less than 0.5% of our exports, but this could happen on several occasions in several different places. It is possible that this could be a considerable factor in the negotiations we might have with the EU and the US Goodness knows, those negotiations are going to be complicated enough, and there is no way that the Government will achieve their aim of concluding them by the end of this year. Given that, importing this new complication would be completely crazy and really would be very foolish because, after all, the EU and the US account for three-quarters of our exports. We would be threatening their position, or at least making life more difficult in the context of those important negotiations, for the interests of our exports to countries that represent perhaps less than 1% of our trade. That would not make any sense. I therefore retain my view about the tactics of this, despite recognising that the Government have actually succeeded in carrying forward the EU agreements in these cases in a way that I did not anticipate. I hope the Minister will agree with that apologia on my part Before I finish, I have another question to ask. It is clear that on the last occasion, the Foreign Office did not anticipate that the Polisario Front would wish to litigate in order to try to stop the entering into force of an EU-Morocco trade agreement. It has done so and it has succeeded, so it has held up the whole process and we will see what happens. I am told in the briefing which has been produced for members of the European Union Committee: "We note that FCO officials have told us that they are confident the UK Agreement is consistent with EU law and the Government’s position on the status of Western Sahara." It may be that they are confident and that they are right. Last time, they were confident, but they were not right; they were wrong. My question to the Minister therefore is: what confidence does he have, and why does he have it, that on this occasion the FCO officials have got it right and that we will not go back to where we started and find ourselves entering into further litigation?