I thank my noble friend Lord Foulkes for leading the debate on this group of amendments—relating to Part 6 and the WTO Agreement on Agriculture—by moving Amendment 264, to which the noble Baroness, Lady McIntosh of Pickering, added her name. As is customary on each day of the Committee’s deliberations, I declare my agricultural interests as recorded in the register.
The United Kingdom has been an independent member of the World Trade Organization, and was also a member as a member state of the EU, when it was one. On leaving the EU, the UK will continue to ensure that domestic support schemes are consistent with WTO rules. The Minister will correct me on this interpretation if needed.
The Bill’s Explanatory Notes remind me of the non-distortion trading requirements of green box designations and so on, which characterised the discussions on CAP reform of decoupled income support payments
and environmental programmes many years ago. This will not be the issue at the WTO once the UK begins to “record”, if that is the correct terminology, the various trade deals that it seeks with other countries around the world. There will be many challenges over, for example, state aid provisions. As we know, the countries implicated in the various EU rollover deals that the UK seeks ratification of have already lodged objections with the WTO.
There are various angles to this, as other speakers referred to in our proceedings last week. First, as my noble friend Lord Foulkes explained, his amendment would require the Secretary of State to consult relevant stakeholders. That is necessary as agriculture and food are matters devolved to the other nations of the union. In Amendment 269, my noble friend Lord Hain and the noble Lord, Lord Wigley, are concerned about compliance and consistency with the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016, specifically with regard to the sustainable brand values of Wales.
In other parts of the Bill, we have expressed our concern at the quality of the Government’s discussions with the devolved Administrations and how that will translate into representations at the WTO. The noble Lord, Lord Purvis, expressed this point in his remarks. Last Thursday—I remind noble Lords that this was at 10 minutes to midnight—he asked the Minister to clarify the status of the legislative consent Motion from the Scottish Parliament with regard to this part of the Bill. Regulations could have a significant impact on the design and implementation of support schemes in Scotland and Wales—by the way, no one has yet seen the full details of those schemes because the Government are yet to finalise them. By what mechanisms will the Secretary of State resolve any disputes that may arise with the devolved Administrations, such that he or she can fulfil the functions of Clause 40? Can the Minister confirm that any regulations made under the powers at Clause 40 will be only with the express agreement of the Scottish Parliament and the Welsh Assembly by the affirmative resolution procedure, as in subsection (4)?
My noble friend Lord Foulkes also asked about subsection (3), which may have relevance in this respect. However, the power under Clause 40(3)(c) seems inexplicably wide and vague. I also have concerns about paragraph (c), which refers to provision for “a person”—unspecified—
“to exercise a discretion in dealing with any matter.”
No provision seems to have been given for any oversight or reporting publicly. Can the Minister explain what the Government have in mind in needing these powers?
The clause refers to the Secretary of State. It may be assumed that, as this is the Agriculture Bill and the responsibility of the Minister’s department, this will not be the Secretary of State for the trade department. Which Secretary of State will be responsible to Parliament on this matter? Where will the cross-over apply in relation to WTO engagement?
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Finally, the WTO Agreement on Agriculture has long been seen as disadvantageous for developing countries, even though there are slightly different rules for such countries. There are strong arguments for being more sensitive to this and for other features of trade to be more beneficial towards development. Does the Minister see the inclusion of these powers in this Bill as being able to contribute to that goal in some way? How would the future role of the Government be made effective in reconciling their interests, as well as reconciling different ambitions of agriculture among the big trading blocs and developing countries?