92.As noted in Chapter 2 above, there are reported to be some 750 trade-related agreements to which the EU is a party, of which only a small proportion are actual trade agreements. In November 2017, Dr Fox told us:119
the Department for Exiting the European Union is leading cross-Government work to assess and act on the international agreements for which, as a result of the UK’s exit from the EU, there will need to be arrangements to ensure continuity for business and individuals.
DIT was:
focusing on the transition of trade-related agreements as part of this work, ranging from Free Trade Agreements, to Economic Partnership Agreements with developing countries, and sector-specific agreements such as Mutual Recognition Agreements.
93.When we asked Lord Price about rolling over trade-related agreements that are not trade agreements, he told us:120
DExEU needs to answer that principally. Within the Department for International Trade, we were aware of the things that applied to that Department and needed to be addressed, so I am afraid I would not know.
94.The roll-over of EU trade agreements is closely entwined with UK-EU trade relations and negotiations, touching upon several of DExEU’s areas of responsibility. Relevant cross-departmental issues in this respect include:
95.In addition to DExEU, roll-over may also affect competences of the Ministry of Justice (on the jurisdiction of the CJEU) and the Home Office (regarding freedom of movement of people).
96.The rolling over of trade agreements with broad effects across policy areas also has implications for cross-departmental coordination. The National Farmers’ Union argued in written evidence that “an agricultural policy that promotes high levels of animal health and welfare can only deliver if the trade policy ensures that imported products reach equivalent standards and promotes our produce abroad”.122 Given the relative importance of agriculture in the devolved nations, this also raises the question of involving their administrations in the roll over process. Submissions to the inquiry from the Agriculture and Horticulture Development Board and Wine and Spirit Association respectively argued that the UK Government should “examine exactly how each of these treaties affects the devolved administrations”123 and “consult with” them.124 This is likely to be particularly significant in respect of TRQs (see Chapter 5), where the Trade Bill requires devolved administrations to seek consent from the UK Government when it comes to legislating the implementation of rolled over agreements (see Chapter 7).
97.In the case of Economic Partnership Agreements, we heard from Dr Gammage, of Bristol University, that these are “trade and development co-operation agreements” with a “financial package that goes with the trade concession”.125 The Minister of State for Trade Policy told us that “the lead on economic partnership is taken jointly by DIT and [the Department for International Development]”.126 The Minister also told us that “Association agreements have a political element and are led on by the FCO”.127
98.The Government must show what it is doing to foster a cross-departmental approach to the issue of rolling over trade, and other trade-related, agreements and to involve fully the devolved administrations. In particular, it must show how DIT and DExEU are working together in this regard and, in particular, clarify their respective roles as regards rolling over trade-related agreements other than trade agreements. In particular also, it must demonstrate how the trade negotiating expertise in DIT is actually and actively being used by the negotiating teams in Number 10, DExEU and the UK Permanent Representation to the EU.
99.In respect of these agreements, just as with trade agreements, a comprehensive “risk register” is urgently needed.
119 Letter from Rt Hon Dr Liam Fox MP to Angus Brendan MacNeil MP, 22 November 2017
Published: 6 March 2018