UK Parliament / Open data

Trade Bill

Proceeding contribution from Viscount Younger of Leckie (Conservative) in the House of Lords on Wednesday, 6 January 2021. It occurred during Debate on bills on Trade Bill.

My Lords, I thank the noble Lord, Lord Hain, the noble Baronesses, Lady Ritchie of Downpatrick and Lady Suttie, and my noble friend Lady Altmann for their amendments.

Amendment 17 strives to make the ratification of any future UK-EU trade agreement conditional on compliance with the Northern Ireland protocol. As noble Lords will be aware, and as the noble Lord, Lord Hain, himself has said, we have been overtaken by events—I think the word used by the noble Baroness, Lady Ritchie, was “eclipsed”—and the EU-UK trade and co-operation agreement has now been ratified. Noble Lords will also be aware that we remain fully committed to implementing the Northern Ireland protocol.

However, I am happy to provide further reassurances in my remarks today—I hope I will be able to do so. Our commitment is demonstrated by the agreement we have reached with the EU in the withdrawal agreement Joint Committee on the implementation of the Northern Ireland protocol. To reassure my noble friend Lady McIntosh, this upholds unfettered access for Northern Ireland businesses to their most important market, eliminating any requirement for export declarations for goods moving from Northern Ireland to Great Britain. It safeguards Northern Ireland’s place in the UK’s customs territory, establishing the platform to

preserve tariff-free trade for Northern Ireland businesses, protect internal UK trade and maintain the UK’s VAT area.

On the question raised by my noble friends Lady McIntosh and Lady Neville-Rolfe on supermarkets, the Government acknowledge there are some teething issues and are working closely with the relevant stakeholders to urgently iron them out. The issues are being addressed, to give some reassurance.

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Throughout 2020, we worked intensively to ensure that the withdrawal agreement, in particular the Northern Ireland protocol, would be fully operational on 1 January 2021. The noble Lord and the noble Baronesses can be reassured that the agreement we have reached with the EU protects the interests both of the EU single market and, more importantly, the territorial and constitutional integrity of the whole United Kingdom so that both sides can have confidence in the agreement. We remain fully committed to the Belfast/Good Friday agreement and will not allow a hard border to appear between Northern Ireland and the Republic of Ireland.

My noble friend Lord Trenchard put this more eloquently than me, but, crucially, the Bill we are debating here does not address the UK’s future relationship with the EU. That was dealt with via Parliament’s ratification of the deal agreed with the EU last year. The Bill is concerned with, among other things, the implementation of international trade agreements with trade agreement continuity countries and making provision for establishing the Trade Remedies Authority.

Amendment 18 seeks to make ratification of any future trade agreement between the UK and the EU contingent on, first, compliance with the Northern Ireland Act 1998 and the protocol on Ireland/Northern Ireland, and, secondly, ensuring that there is no negative impact on trade between Northern Ireland and Ireland.

The protection of the Belfast/Good Friday agreement is a grave and solemn responsibility for both the UK and Irish Governments as its co-signatories, and both the UK and the EU have affirmed in the protocol that the agreement must be protected in all its parts. The protocol is a practical solution to avoid a hard border with Ireland while ensuring that the UK, including Northern Ireland, leaves the EU as a whole, enabling the entire UK to benefit from free trade agreements. As a result, there will be no change in the movement of goods between Northern Ireland and Ireland. That means there will be no new paperwork; no tariffs, quotas or checks on rules of origin; nor any barriers or checks on movement into the Republic of Ireland for goods in free circulation in Northern Ireland.

With the agreement in the Withdrawal Agreement Joint Committee on the 18 December last year, we have been able to deliver a package which now means that the protocol can be implemented in a pragmatic and proportionate way. It takes account of the Belfast/Good Friday agreement in all its dimensions. I understand your Lordships’ desire to ensure that there will be no hard border between Northern Ireland and the Republic of Ireland, and it is a concern I share. The agreement we reached with the EU both on the protocol and on the UK’s trading relationship with the EU ensures that this is an issue with which we need no longer be concerned.

Finally, Amendment 26 seeks to ensure that the UK’s trade agreements cannot impede the unfettered access of goods and services from Northern Ireland to Great Britain or services from Great Britain to Northern Ireland. I took note of the passionate speech made by the noble and right reverend Lord, Lord Eames, where he said—quoting the noble Lord, Lord Fox—that trade is about people, and, of course, he is right. He went on to say that, therefore, people need certainty, and he is right again. But let me explain why we give this.

As noble Lords will be aware, the Government are already committed to ensuring unfettered access while maintaining and strengthening the integrity and smooth operation of our internal market through the United Kingdom Internal Market Act. The United Kingdom Internal Market Act guarantees UK companies can trade unhindered in every part of the UK by ensuring the free flow of capital, labour, goods and services. It also ensures that Northern Ireland is fully part of the UK’s customs territory by ensuring that there are no tariffs on goods remaining within the UK customs territory and that businesses based in Northern Ireland have true unfettered access to the rest of the United Kingdom, without paperwork.

Our aim is to ensure that all our international agreements are implemented in a way that takes full account of the Northern Ireland protocol; this includes unfettered access. As set out in the Command Paper on the UK’s approach to the Northern Ireland protocol, unfettered access means no declarations, tariffs, new regulatory checks or customs checks, or additional approvals for Northern Ireland businesses to place goods on the Great Britain market. We recognise that international trade partners will seek full access to the UK market. The UK internal market system provided for in the United Kingdom Internal Market Act will provide a stable, consistent regulatory framework that will support the UK’s exporting and inward investment ambitions. Ensuring regulatory coherence across the UK internal market will help support free trade agreement implementation while maintaining unfettered access.

My noble friend Lady Altmann asked a number of questions. In terms of the focus on customs officers, I reassure her that we have already hired 900 more officers as customs agents, and 1,100 are to be hired by March. The Border Force will have recruited over 2,000 officers by July 2021, so there is urgent work in hand there. May I also attempt to answer her question on what the deal means for goods travelling into Northern Ireland from Great Britain? As she will know, a UK trader scheme will allow authorised businesses to undertake that the goods they are moving into Northern Ireland are not at risk of onward movement to the EU, and therefore not liable to EU tariffs. The scheme will be focused on goods being sold to, or provided for final use by, end consumers located in Northern Ireland. The scheme will be open only to businesses established in Northern Ireland, or businesses that meet certain closely linked criteria, to prevent abuse by letterbox or shell businesses.

As such, I can assure noble Lords that the Government are already fully committed to ensuring that the unfettered access that is the intent of Amendment 26 is maintained

and—as the noble Lord, Lord Hain, himself said—that the principle is upheld. I therefore ask that the amendments be withdrawn.

About this proceeding contribution

Reference

809 cc174-7 

Session

2019-21

Chamber / Committee

House of Lords chamber

Legislation

Trade Bill 2019-21
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