Trade Bill (HL Bill 167)

A

BILL

[AS AMENDED ON REPORT]

TO

Make provision about the ratification and implementation of international
trade agreements; to make provision establishing the Trade Remedies
Authority and conferring functions on it; and to make provision about the
collection and disclosure of information relating to trade.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

Part 1 Ratification and implementation of international trade agreements

1 Implementation of the Agreement on Government Procurement

(1) An appropriate authority may by regulations make such provision as the
5authority considers appropriate—

(a) for the purpose of implementing the Agreement on Government
Procurement signed at Marrakesh on 15 April 1994 as amended on or
before 29 March 2012 (“the 1994 GPA”),

(b) for the purpose of implementing the Agreement on Government
10Procurement signed at Marrakesh on 15 April 1994, as amended on or
before the United Kingdom’s accession (“the Revised GPA”),

(c) in consequence of the accession of another party to, or the withdrawal
of a party from, the 1994 GPA,

(d) in consequence of the accession of another party to, or the withdrawal
15of a party from, the Revised GPA,

(e) in consequence of a modification of the list of central government
entities in Annex 1 to the United Kingdom’s Appendix I to the 1994
GPA, or

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(f) in consequence of a modification of the list of central government
entities in Annex 1 to the United Kingdom’s Appendix I to the Revised
GPA.

(2) Regulations under subsection (1) may not come into force before—

(a) 5in the case of regulations under subsection (1)(a), the day the United
Kingdom accedes to the 1994 GPA;

(b) in the case of regulations under subsection (1)(b), the day the United
Kingdom accedes to the Revised GPA;

(c) in the case of regulations under subsection (1)(c), the day the other
10party accedes to or, as the case may be, withdraws from, the 1994 GPA;

(d) in the case of regulations under subsection (1)(d), the day the other
party accedes to or, as the case may be, withdraws from, the Revised
GPA;

(e) in the case of regulations under subsection (1)(e) or (f), the day the
15modification becomes effective.

(3) Regulations under subsection (1) may make provision modifying retained
direct principal EU legislation.

2 Implementation of international trade agreements

(1) An appropriate authority may by regulations make such provision as the
20authority considers appropriate for the purpose of implementing an
international trade agreement to which the United Kingdom is a signatory,
subject to subsections (2) to (4).

(2) Regulations under subsection (1) may make provision for the purpose of
implementing a free trade agreement only if—

(a) 25the other signatory (or each other signatory) and the European Union
were signatories to a free trade agreement immediately before exit day,
or

(b) where a draft of the regulations is laid before exit day, the other
signatory (or each other signatory) and the European Union are
30signatories to a free trade agreement on the day the draft of the
regulations is laid.

(3) Regulations under subsection (1) may make provision for the purpose of
implementing an international trade agreement other than a free trade
agreement only if—

(a) 35the other signatory (or each other signatory) and the European Union
were signatories to an international trade agreement immediately
before exit day, or

(b) where a draft of the regulations is laid before exit day, the other
signatory (or each other signatory) and the European Union are
40signatories to an international trade agreement on the day the draft of
the regulations is laid.

(4) Regulations under subsection (1) may not make provision that could be made
by regulations under section 9 of the Taxation (Cross-border Trade) Act 2018.

(5) Regulations under subsection (1) may, among other things, make provision—

(a) 45modifying retained direct principal EU legislation or primary
legislation that is retained EU law;

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(b) conferring functions on the Secretary of State or any other person,
including conferring a discretion but not including a power to make
subordinate legislation;

(c) for the delegation of functions;

(d) 5for penalties for failing to comply with the regulations.

(6) In this section, a reference to a draft of regulations being laid is to a draft of the
regulations, or the instrument containing the regulations, being laid before—

(a) each House of Parliament, in the case of regulations to which
paragraph 4(1) or 5 of Schedule 2 applies (regulations of a Minister of
10the Crown, or a Minister of the Crown acting jointly with a devolved
authority);

(b) the Scottish Parliament, in the case of regulations to which paragraph
4(2) of Schedule 2 applies (regulations of the Scottish Ministers);

(c) the National Assembly for Wales, in the case of regulations to which
15paragraph 4(3) of Schedule 2 applies (regulations of the Welsh
Ministers);

(d) the Northern Ireland Assembly, in the case of regulations to which
paragraph 4(4) of Schedule 2 applies (regulations of a Northern Ireland
department).

(7) 20No regulations may be made under subsection (1) after the end of—

(a) the period of three years beginning with exit day (“the initial three year
period”), or

(b) such other period or periods as are specified in regulations made by the
Secretary of State in accordance with subsection (8).

(8) 25Regulations under subsection (7)(b) may not extend the initial three year
period, or a further period specified in regulations under that subsection, by
more than three years.

3 Report on proposed free trade agreement

(1) This section applies (subject to subsection (2)) where the United Kingdom has
30authenticated a free trade agreement (“the proposed agreement”), if—

(a) the other party (or each other party) and the European Union were
signatories to a free trade agreement immediately before exit day, or

(b) where the proposed agreement is authenticated by the United
Kingdom before exit day, the other party (or each other party) and the
35European Union are signatories to a free trade agreement on the day
the proposed agreement is authenticated by the United Kingdom.

(2) This section applies only if the proposed agreement is not binding on the
United Kingdom as a matter of international law unless it is ratified by the
United Kingdom.

(3) 40Before the United Kingdom ratifies the proposed agreement, a Minister of the
Crown must lay before Parliament a report which gives details of, and explains
the reasons for, any significant differences between—

(a) the trade-related provisions of the proposed agreement, and

(b) the trade-related provisions of the existing free trade agreement.

(4) 45Subsection (3) does not apply if a report in relation to the proposed agreement
has been laid before Parliament under section 5(2).

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(5) The duty imposed by subsection (3) applies only at a time when regulations
may be made under section 2(1) (see section 2(7)).

(6) In this section a reference to authenticating a free trade agreement is a reference
to doing an act which establishes the text of the agreement as authentic and
5definitive as a matter of international law.

(7) In this section—

  • “the existing free trade agreement” means the free trade agreement
    referred to in subsection (1)(a) or (b);

  • the “trade-related provisions” of a free trade agreement are the provisions
    10of the agreement that mainly relate to trade.

4 Reporting requirement not to apply in exceptional cases

(1) Section 3 does not apply to a free trade agreement if a Minister of the Crown is
of the opinion that, exceptionally, the agreement needs to be ratified without
laying before Parliament a report which meets the requirements of subsection
15(3) of that section.

(2) If a Minister determines that a free trade agreement is to be ratified without
laying before Parliament a report which meets the requirements of section 3(3),
the Minister must, as soon as practicable after the agreement is ratified, lay
before Parliament—

(a) 20a report which meets those requirements, and

(b) a statement indicating that the Minister is of the opinion mentioned in
subsection (1) and explaining why.

5 Report to be laid with regulations under section 2(1)

(1) This section applies where a Minister of the Crown proposes to make
25regulations under section 2(1) for the purpose of implementing a free trade
agreement to which the United Kingdom and another signatory (or other
signatories) are signatories.

(2) A draft of the statutory instrument containing the regulations may not be laid
before Parliament unless, at least 10 Commons sitting days before the draft is
30laid, a Minister of the Crown has laid before Parliament a report which gives
details of, and explains the reasons for, any significant differences between—

(a) the trade-related provisions of the free trade agreement to which the
United Kingdom and the other signatory (or other signatories) are
signatories, and

(b) 35the trade-related provisions of the existing free trade agreement.

(3) Subsection (2) does not apply if, at least 10 Commons sitting days before a draft
of the statutory instrument containing the regulations is laid, a report in
relation to the agreement has been laid before Parliament under section 3(3).

(4) In this section—

  • 40“Commons sitting day” means a day on which the House of Commons
    begins to sit;

  • “the existing free trade agreement” means the free trade agreement to
    which the European Union and the other signatory (or other
    signatories)—

    (a)

    45were signatories immediately before exit day, or

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    (b)

    where the report is laid before Parliament before exit day, are
    signatories on the day the report is laid before Parliament;

  • the “trade-related provisions” of a free trade agreement are the provisions
    of the agreement that mainly relate to trade.

6 5Post-ratification report

(1) This section applies where—

(a) the United Kingdom has ratified a free trade agreement, and

(b) the other party (or each other party) and the European Union were
signatories to a free trade agreement immediately before exit day.

(2) 10Before the end of the period of five years beginning with the date of ratification,
a Minister of the Crown must publish a report giving the Minister’s assessment
of the impact of the agreement on trade between the United Kingdom and the
other party (or each other party) to the agreement.

7 Parliamentary approval of trade agreements

(1) 15Negotiations towards a free trade agreement may not commence until the
Secretary of State has laid a draft negotiating mandate before the appropriately
constituted Committee and it has been approved by—

(a) resolution of that Committee, and

(b) a resolution of both Houses of Parliament.

(2) 20Prior to the draft negotiating mandate being laid, the Secretary of State must
have consulted with each devolved administration on the content of the draft
negotiating mandate.

(3) Prior to considering a resolution approving a mandate relating to the
negotiation of a free trade agreement, the Committee must produce a
25sustainability impact assessment.

(4) Before either House of Parliament may approve by resolution the text of a
proposed free trade agreement, the Secretary of State must lay the text of the
proposed agreement before the Committee and that text must be approved by
a resolution of that Committee.

(5) 30Prior to the laying of the text of the proposed agreement, the Secretary of State
must have consulted with each devolved administration on the text of the
proposed agreement.

(6) Prior to considering a resolution approving the text of a free trade agreement
under subsection (4), the Committee must produce a report setting out a
35recommendation in relation to the ratification of the agreement.

(7) The Secretary of State must lay the report produced under subsection (6) before
both Houses of Parliament.

(8) Schedule 1 contains further provision about the reports under subsection (6).

(9) A free trade agreement may not be ratified unless the agreement has been laid
40before, and approved by an amendable resolution of, both Houses of
Parliament.

(10) The Constitutional Reform and Governance Act 2010 is amended as follows.

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(11) At the end of section 25(2) insert “, or a treaty containing a free trade agreement
as defined in section 7 of the Trade Act 2019.”

(12) In this section, “free trade agreement” refers to any agreement between the
United Kingdom and one or more partners that includes components that
5facilitate the trade of goods, services or intellectual property including but not
limited to—

(a) Free Trade Agreements (FTA) as defined by section 14;

(b) Interim Association Agreements, Association Agreements (AA);

(c) Economic Partnership Agreements (EPA);

(d) 10Interim Partnership Agreements;

(e) Stabilisation and Association Agreements (SAA);

(f) Global Agreements (GA);

(g) Economic Area Agreements (EAA);

(h) Cooperation Agreements (CA);

(i) 15Comprehensive Economic and Trade Agreements (CETA);

(j) Association Agreements with strong trade component;

(k) Transatlantic Trade and Investment Partnerships (TTIP);

(l) Investment Protection Agreements.

8 Customs union

20It shall be the objective of Her Majesty’s Government to take all necessary steps
to implement an international trade agreement which enables the United
Kingdom to participate after exit day in a customs union with the European
Union.

9 Continuation of North-South trade and prevention of customs arrangements
25at borders

An international trade agreement between the United Kingdom and the
European Union may not be ratified under sections 20 to 25 of the
Constitutional Reform and Governance Act 2010 unless the agreement—

(a) is compatible with the terms of the Northern Ireland Act 1998, and

(b) 30does not—

(i) negatively affect any form of North-South trade in goods or
services or the operation of the relevant North-South
implementation bodies, or

(ii) create or facilitate customs arrangements between Northern
35Ireland and the Republic of Ireland after exit day which
feature—

(a) physical infrastructure related to customs checks,

(b) a requirement for customs or regulatory compliance
checks,

(c) 40random checks on goods vehicles, or

(d) any other checks and controls related to trade, that did
not exist before exit day and which are not subject to an
agreement between Her Majesty’s Government and the
Government of Ireland.

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10 Trade agreement with the EU: mobility framework

It shall be the objective of the Secretary of State to take all necessary steps to
secure an international trade agreement with the European Union which
includes a mobility framework that enables all UK and EU citizens to exercise
5the same reciprocal rights to work, live and study for the purpose of the
provision of trade in goods or services.

11 UK participation in the European medicines regulatory network

(1) It shall be the objective of an appropriate authority to take all necessary steps
to implement an international trade agreement, which enables the UK to fully
10participate after exit day in the European medicines regulatory network
partnership between the European Union, European Economic Area and the
European Medicines Agency.

(2) Exit day shall have the meaning set out in section 20 of the European Union
(Withdrawal) Act 2018.

12 15Statement on equalities legislation

(1) This section applies where a Minister of the Crown proposes to make
regulations under section 2(1).

(2) Before a draft of the statutory instrument containing the regulations is laid
before either House of Parliament, the Minister must make a statement—

(a) 20as to whether the statutory instrument would, if made, modify any
provision of equalities legislation, and

(b) if it would, explaining what the effect of each such modification would
be.

(3) If the Minister fails to make a statement as required by subsection (2), the
25Minister must make a statement explaining why.

(4) A statement under this section must be made in writing and published in such
manner as the Minister making it considers appropriate.

(5) In this section, “equalities legislation” means the Equality Act 2006, the
Equality Act 2010 and any subordinate legislation made under either of those
30Acts.

13 Regulations: devolved authorities and general provision

(1) Regulations under section 1(1) or 2(1) may—

(a) make different provision for different purposes or areas;

(b) make provision generally or only in relation to specified cases;

(c) 35make incidental, supplementary or consequential provision;

(d) make transitional, transitory or saving provision.

(2) Schedule 2 contains restrictions on the exercise of the powers in sections 1(1)
and 2(1) by devolved authorities.

(3) Schedule 3 contains provision about the making of regulations under sections
401(1) and 2.

(4) Schedule 4 contains exceptions to restrictions in the devolution settlements for
regulations made under section 1(1) or 2(1).

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14 Interpretation of Part 1

(1) In this Part—

  • “appropriate authority” means—

    (a)

    a Minister of the Crown, or

    (b)

    5a devolved authority;

  • “devolved authority” means—

    (a)

    the Scottish Ministers,

    (b)

    the Welsh Ministers, or

    (c)

    a Northern Ireland department;

  • 10“free trade agreement” means an agreement that is or was notifiable
    under—

    (a)

    paragraph 7(a) of Article XXIV of GATT, or

    (b)

    paragraph 7(a) of Article V of GATS;

  • “GATS” means the General Agreement on Trade in Services, part of
    15Annex 1B to the WTO Agreement (as modified from time to time);

  • GATT” means the General Agreement on Tariffs and Trade, part of
    Annex 1A to the WTO Agreement (as modified from time to time);

  • “international trade agreement” means—

    (a)

    a free trade agreement, or

    (b)

    20an international agreement that mainly relates to trade, other
    than a free trade agreement;

  • “primary legislation” means—

    (a)

    an Act of Parliament,

    (b)

    an Act of the Scottish Parliament,

    (c)

    25a Measure or Act of the National Assembly for Wales, or

    (d)

    Northern Ireland legislation;

  • “subordinate legislation” has the meaning given in section 20(1) of the
    European Union (Withdrawal) Act 2018;

  • “the WTO Agreement” means the agreement establishing the World
    30Trade Organisation signed at Marrakesh on 15 April 1994.

(2) In this Part a reference to being a signatory to an international trade agreement
includes a reference to—

(a) exchanging instruments, where the exchange constitutes the
agreement;

(b) 35acceding to the agreement.

(3) In this Part a reference to ratifying an international trade agreement is a
reference to doing an act specified in subsection (4) which establishes consent
to be bound by the agreement as a matter of international law.

(4) The acts are—

(a) 40depositing or delivering an instrument of ratification, accession,
approval or acceptance;

(b) depositing or delivering a notification of completion of domestic
procedures.

(5) References in this Part to anything which is retained EU law by virtue of
45section 4 of the European Union (Withdrawal) Act 2018 include references to
any modifications, made by or under that Act or by other domestic law from

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time to time, of the rights, powers, liabilities, obligations, restrictions, remedies
or procedures concerned.

(6) In this section, “domestic law” means the law of England and Wales, Scotland
or Northern Ireland.

5Part 2 The Trade Remedies Authority

15 The Trade Remedies Authority

(1) A body corporate called the Trade Remedies Authority (“the TRA”) is
established.

(2) 10Schedule 5 contains further provision about the TRA.

(3) Schedule 6 contains provision about schemes for the transfer of staff in
connection with the establishment of the TRA.

16 Provision of advice, support and assistance by the TRA

(1) The TRA must provide the Secretary of State with such advice, support and
15assistance as the Secretary of State requests in connection with—

(a) the conduct of an international trade dispute,

(b) functions of the Secretary of State relating to trade, and

(c) functions of the TRA.

(2) Advice, support and assistance requested under subsection (1) may include,
20among other things—

(a) analysis of trade remedy measures imposed in countries or territories
other than the United Kingdom, and

(b) analysis of the impact of such measures on producers and exporters in
the United Kingdom.

(3) 25Before making a request under subsection (1), the Secretary of State must—

(a) consult the TRA, and

(b) have regard to the expertise of the TRA and to the need to protect—

(i) its operational independence, and

(ii) its ability to make impartial assessments when performing its
30functions.

(4) The TRA may otherwise provide such advice, support and assistance as it
considers appropriate in relation to—

(a) international trade, and

(b) trade remedies.

35Part 3 Trade information

17 Collection of exporter information by HMRC

(1) Her Majesty’s Revenue and Customs may request any person to provide
information for the purpose of assisting the Secretary of State to establish the