Despite its name, the Trade Bill is a so-called "continuity Bill" designed to enable the free trade agreements that the EU had signed with third countries before the UK exited to be transitioned. Crucially, it cannot be used to implement new free trade agreements with countries such as the US.
Instead it can only be used to transition the free trade agreements that the UK has been party to through EU membership. All these agreements have already been subject to scrutiny as underlying EU agreements, through the European Scrutiny Committee process or equivalent.
I wanted to assure you that Parliamentary scrutiny remains strong and that MPs continue to have a say in respect of future trade deals.
Parliament will retain, through the Constitutional Reform and Governance Act (CRAG) process, the right to block any treaty from being ratified. That is because Free Trade Agreements cannot by themselves change UK law. The CRAG process allows Parliament to scrutinise agreements for 21 sitting days, provides for a report on the agreement from the relevant Select Committee as well as the option for debates on the agreements and the power for the Commons to restart this 21-day period if it is not satisfied.
Parliament also retains the right to reject any domestic implementing legislation necessary for a trade treaty. By blocking any legislation, should it be required, it can also block ratification.
This is in line with arrangements in peer countries such as Canada. It goes further than countries such as Australia and New Zealand, where Parliament cannot directly block ratification of a trade treaty.
Furthermore, beginning with the UK-Japan Comprehensive Economic Partnership Agreement, the House of Commons’ International Trade Committee and House of Lords’ International Agreements Sub-Committee will receive advanced copies of trade agreements. I welcome the Government’s assurance that these committees will have at least 10 sitting days to examine the texts of trade deals.
Overall, I believe this approach strikes an appropriate balance. It respects the UK constitution, ensuring that the Government can negotiate in the best interests of the UK, while making sure that Parliament has the information it needs to effectively scrutinise and lend its expertise to trade policy.
