Trade Bill — House of Lords, 2021-01-06
Topic: Foreign Trade
James Younger (Conservative, Centre-right): I thank the noble Lord, Lord Stevenson, for Amendment 24, as it provides a further opportunity to talk briefly about the important issue of the devolved Administrations’ role in our new international trade policy The UK Government are committed to working closely with the devolved Administrations to deliver an independent trade policy that works for the whole of the UK, and this has been reflected by statements from the devolved Administrations. For example, as I noted earlier in previous debates, the Counsel General for Wales, Jeremy Miles MS, recently said in his evidence to the Welsh Affairs Committee on 19 November that the department has listened to the devolved Administrations and established a new ministerial forum for trade, which we have used to consult them on all our trade agreements. The forum met four times last year, most recently on 9 December, and regular engagement will continue in 2021. I listened to the speech by the noble Lord, Lord Bruce of Bennachie, and do not entirely agree with his version of how the continuing talks are going This engagement has meant that the devolved Administrations’ views have already begun to be reflected in our free trade agreements. For example, the devolved Administrations made it clear that they supported high ambition for the mobility of professionals in all our FTAs. With regard to the Japan FTA, the UK Government delivered this by securing more flexibility for Japanese and British companies to move talent into each country, covering a range of UK skilled workers to enter Japan, from computer services to construction I also listened to the brief speeches by the noble and learned Lord, Lord Morris, and the noble Lord, Lord Wigley, on their concerns over Welsh lamb. As noble Lords will know, the Bill does not give the UK Government powers to implement future trade agreements with partners, including New Zealand, but we will continue to work closely with the devolved Administrations on all our current FTA negotiations, so that their interests and priorities are reflected through negotiations However, while it is absolutely right that we engage meaningfully with the devolved Administrations, we must do so within our existing constitutional framework. That is why the DIT has sought to strike the proper balance between engaging with the devolved Administrations and respecting that, under our constitutional settlement, international trade is both a reserved matter and a prerogative power My noble friend Lord Trenchard spoke at greater length—and in my view, very wisely—on these points. I agree with him that, unfortunately, this amendment would upset that balance. It would require the UK Government not only to consult but to seek the consent of the devolved Administrations for FTAs covering areas of devolved competence. This goes far beyond what is appropriate, given that international trade is a reserved matter and would have significant implications for the strength of the UK’s negotiating position. I believe that my noble friend Lord Trenchard also made that point The principle that the UK Government have sole responsibility for decisions on international trade negotiations is not just long-standing constitutional practice but is critical in ensuring that the United Kingdom can speak with a single voice in our international relations, providing certainty for our negotiating partners and the strongest negotiating position for all the regions and nations of the UK. The amendment would undermine this unity and could lead our negotiating partners to try to play different Administrations off against one another. This is surely one of the reasons why the UK Parliament decided that international relations should remain a reserved matter and enshrined this in the devolution settlements The UK Government have worked hard with the devolved Administrations to ensure that the Bill is already drafted in a way that respects the devolution settlements. The Minister of State for Trade Policy has undertaken a significant programme of engagement to achieve this, including regular meetings with devolved Ministers, bilateral calls and attending the devolved legislature committees to discuss their views As noble Lords will know, the Scottish Government withheld consent from the previous Bill—the Trade Bill 2017-19. For this Bill, we therefore made additional amendments to address their concerns, such as removing restrictions on Scottish Ministers’ use of the Bill’s delegated powers. As a result, the Scottish Government and the Scottish Parliament’s Finance and Constitution Committee changed their position and recommended that the Scottish Parliament consent to the Bill. On 8 October, a legislative consent motion—an LCM—was formally granted.