Contribution
My Lords, these draft regulations authorise the enactment of Section 2(10)(b) and Section 2(11) of the Trade Act 2021 and extend the power within Section 2(1) for a further period of five years. I was pleased to see the SI pass through the other place, and I look forward to this debate.
The extension is not just a procedural necessity; it is a strategic imperative that will ensure that the United Kingdom remains agile and responsive in its trade relationships with key global partners. It will enable the Government to continue with their ambitious trade programme with minimal disruption and ensure that key trade agreements that bring jobs and growth to all parts of the UK can be implemented in a timely manner.
Before going any further, I will take this opportunity to provide some further context, for which I turn back to Royal Assent of the Trade Act on 29 April 2021. As noble Lords will no doubt remember, this was a landmark piece of legislation that included a power for the UK to domestically implement trade agreements that it signs with economies that had a trade agreement with the EU before exit day. The power enables Government Ministers, the devolved Governments, Scottish and Welsh Ministers or a Northern Ireland department to make regulations via secondary legislation to implement non-tariff provisions for these types of trade agreements.
The original breadth of this power prompted rightful concern from the House, resulting in the Government at the time eventually conceding a number of safeguards. One of these was to include a sunset provision that would cause the power in Section 2(1) to expire at 11 pm on 31 December 2025 unless it was extended for a further period of five years via an affirmative statutory instrument.
Since taking office, this Government have made great strides in negotiating several agreements that require the implementation power of Section 2(1) beyond the expiry date. The power may also be needed for the ongoing management of existing arrangements, an example of which is to facilitate changes to the wholesale rates set out in an annexe to the EEA EFTA-UK free trade agreement.
The importance of being able to implement the finalised outcome from negotiations cannot be stressed more highly. Not only is it essential for businesses that operate and trade under the newly negotiated terms, but it is important that the UK is seen as a reliable trading partner that upholds its commitments. Without Section 2(1), this becomes increasingly difficult. Furthermore, Section 2(1) has been used to domestically implement such agreements and in future may be used for the ongoing maintenance of existing agreements.
Given the various ways in which it is likely to be needed, extending the power of Section 2(1) is the most prudent approach. We have deemed it necessary for a five-year period, not only to maximise cover but to militate against unforeseen issues that might need correcting via domestic legislation during the ongoing management of our negotiated agreements.
In practical terms, we anticipate that the extension of this power may be used to enable the effective implementation of forthcoming trade agreements with key partners such as Switzerland, covering £45 billion-worth of trade, and Turkey, for £28 billion in trade. These deals, when they enter into force, are poised to deliver further significant economic benefits to the United Kingdom by unlocking new markets, supporting jobs and driving growth across the country. This power will allow for the swift implementation of aspects of trade agreements with countries that had a trade agreement with the EU prior to the UK’s exit from the EU.
Before I conclude, I will offer some reassurances around this power. Any agreement implemented with this power and within scope of the Constitutional Reform and Governance Act 2010 would still be required to complete the usual pre-ratification scrutiny, as well as the non-statutory parliamentary scrutiny and transparency commitments that this Government have put in place. Furthermore, all the safeguards put in place in the original Act will continue to be maintained. We will maintain our safeguards of ensuring that the power cannot be used to reduce UK standards in the fields of the protection of human, animal or plant life, or animal welfare, environmental protection, employment and labour, data protection, and the protection of children and vulnerable adults online. Regulations concerning healthcare services must be consistent with maintaining a publicly funded healthcare service. For these reasons, I hope colleagues will be supportive of this measure. I beg to move.