My Lords, it is a pleasure to follow the noble Lord and to agree with his remarks, and to agree with the noble Lord, Lord Foulkes. I support the need for consultation, for the good reasons outlined at the very beginning of today’s proceedings by my noble and learned friend Lord Wallace and the noble and learned Lord, Lord Hope, who is also taking part in this group.
Can the Minister clarify the status of the legislative consent Motion from the Scottish Parliament with regard to this part of the Bill? If he can give information about that, I would be grateful. Formal consultations are vital in this part of the Bill, given that the regulations made under this clause could have significant impacts on the design and implementation of support schemes in Wales and Scotland. What is the policy framework for the limits on the regulations?
The Government have said that the regulations are concerned with maintaining WTO compliance under the agriculture agreement; however, they can also allow for regulations made by a Minister serving in a capacity as an English Minister, but impacting Scottish and Welsh schemes for the benefit of English farmers. Given the need for a resolution of disputes between the appropriate authorities regarding the classification of domestic support, with the Secretary of State in effect acting as a final arbiter, clarification from the Minister on this point will be important.
As well as proposing individual limits on the amount of domestic support that may be given in England, Wales, Scotland and Northern Ireland, the Government will set the effective aggregate ceiling, which is more in line with the relevant national budget, to meet the AMS ceiling under the agriculture agreement.
I understand that the EU has successfully transformed its agricultural support under the CAP from the amber box to the green box under the agreement. It has been argued that this change has not been challenged by other WTO members to date because of the scale of the EU. We may not necessarily have that in future as a stand- alone, individual country, so what is the Government’s policy intent? How will we engage in negotiations with other countries, which may take a different view from the one they took with regard to classification and interpretation while we were a member of the EU?
Given that this could be very relevant in our trade negotiations, can the Minister confirm that these regulations will not be used as part of any trade deal with the US? Given that the US has a more relaxed interpretation of the schemes under the WTO box classifications, there is not a level playing field between the UK and the US. That provides the US with a competitive advantage. We operate a number of quality schemes that it does not, but the US insists that the WTO agreement is the ceiling; we do not. Under its recent agreement with China on poultry, for example, neither country will go beyond what the WTO has agreed. We do not take that position. Will the Government allay some concerns and state that we would not reduce any of the support schemes with regard to the viability, standards and quality of our markets—not necessarily changing primary legislation but the support schemes that ensure our market is of the highest standard? I would like reassurances from the Minister in that regard.
The Minister is a sincere man. We have had these discussions during the Trade Bill and no doubt we will in September. He has said there will be no changes to primary legislation. When I asked the Trade Minister recently whether any trade agreements going forward—not continuity agreements but new trade agreements—will not change any of the support schemes or statutory instruments regarding standards, he could not give that assurance. I would be grateful if the Minister could allay my concerns and state that these regulations will not be used to make a meaningful change to any of the existing standards and qualities that the Americans might see as uncompetitive.