Source · Select Committees · Justice Committee
Recommendation 10
10
Accepted
Paragraph: 41
Ensure Crown Dependencies are covered by services and goods chapters in future trade agreements
Conclusion
We acknowledge that, given their economies and ambitions, it was a disappointing outcome for the Crown Dependencies not to be covered by the Service and Investment chapters of the CPTPP from the outset. The UK Government’s aim for all future trade agreements should be for the Crown Dependencies to be covered by services as well as goods chapters from the outset. Where this does not prove possible, extension mechanisms should routinely be sought.
Government Response Summary
The government acknowledges its duty to represent Crown Dependency interests and details existing processes, including dedicated officials and a central hub within the Department for Business and Trade, to ensure their interests are considered and consulted upon during trade negotiations.
Paragraph Reference:
41
Government Response
Accepted
HM Government
Accepted
31. The Government acknowledges its duty to seek to represent the interests of the Crown Dependencies when acting in an international capacity. 32. In each free trade agreement negotiation, the team includes a specified official with an understanding of both the Crown Dependencies’ constitutional position and their trade policy interests. This official leads on chapter negotiations regarding territorial application, which defines Crown Dependency coverage in a free trade agreement. They will consult with officials from the Crown Dependencies on UK draft treaty text as negotiations progress. 33. In addition to the aforementioned chapter lead for territorial application, it is the responsibility of each UK negotiator to seek to represent Crown Dependency interests as they relate to their specific chapter. This is strengthened by a central hub in the Department for Business and Trade responsible for the overall relationship with the Crown Dependencies. Well established processes within the department ensure Chief Negotiators and Chapter Leads engage with the Crown Dependencies. 34. Through regular consultation throughout negotiations, the Government is able to accurately reflect Crown Dependencies’ interests in all UK free trade agreement negotiations, taking into account the wider negotiation dynamic. JSC 11: Taking up our predecessors’ recommendation, representation of the interests of the Crown Dependencies in international relations is not optional, according to whether or not their interests are in line with those of the UK: it is the UK Government’s duty. In cases of conflict, the Ministry of Justice must endeavour to find a mechanism for representation which will faithfully present and serve the interests of both parties. Having the Crown Dependencies represented during negotiations by specifically designated officials would go some way towards addressing this issue. (Paragraph 49) 35. The Government will seek to represent any Crown Dependency interests which differ from those of the UK when acting in an international capacity. This is in line with the international identity frameworks signed between the UK Government and the Crown Dependencies in 2007-2008. 36. The Government cannot, however, guarantee that it will always be in a position to represent the Crown Dependencies’ views internationally where they diverge from the UK’s own interests. 37. Moreover, whilst the UK Government seeks to deliver the best deal for the UK and the Crown Dependencies, we cannot guarantee that negotiating partners will agree to the preferred outcomes of the UK Government or of the Crown Dependencies, and therefore we may not be able to secure everything we initially seek. 38. The official leading on the territorial application chapter will have extensive knowledge of, and engagement with, the Crown Dependencies. This will ensure the UK negotiating team is always aware of Crown Dependency priorities for individual agreements. JSC 12: The Department for Business and Trade’s approach to the Crown Dependencies’ compliance with international obligations appears to be different at Ministerial and at official level. The position outlined by Minister Hands that “they must be compliant with the international treaty” is correct. The Department for Business and Trade should review the approach its officials are taking to ensure consistency with this. Measures taken by the Crown Dependencies to comply with international obligations are not required to mirror UK legislation but should instead reflect their unique characteristics. Furthermore, the Department for Business and Trade must ensure that comprehensive feedback on compliance assessments completed by Crown Dependencies is routinely and promptly provided so that they can take steps to become compliant, if need be. (Paragraph 52) The Government welcomes the Committee’s consideration of the Crown Dependencies’ compliance with international treaty obligations. The Department for Business and Trade remains open to the Crown Dependencies demonstrating compliance with treaty obligations in any effective way. 39. Crown Dependencies may choose to mirror UK legislation or seek extension of UK legislation to become compliant with specific treaty provisions. There are also other approaches available to the Crown Dependencies including the introduction of bespoke measures through their legislatures where necessary. The Department for Business and Trade will continue to engage with the Crown Dependencies on the different approaches to obligations across UK free trade agreements. 40. The Department for Business and Trade routinely provides feedback to the Crown Dependencies having assessed the evidence of their compliance. This includes presentations from policy officials and detailed written responses which can include independent legal advice. JSC 13: Extension mechanisms in several free trade agreements, including the CPTPP, have already been obtained by the UK Government. It is important