Source · Select Committees · Public Accounts Committee
Recommendation 23
23
When we asked the Department about its overarching trade strategy it told us that it...
Recommendation
When we asked the Department about its overarching trade strategy it told us that it aims to have “an open trade environment that promotes jobs and wages and reduces poverty”. The Department plans to achieve this through trade negotiations and the right protections against unfair practices at both bilateral and multilateral level, while promoting exports and investment.62 However, the NAO found that it was unclear how trade policy aligns with other policy objectives, and how any trade-offs required may impact on business associations, civil society and consumer groups. For example, it is unclear how the government’s international trade ambitions help to achieve domestic and wider policy objectives in areas including agriculture, the environment, international development and human rights.63 Evidence we received from Which? supported the NAO’s recommendation that the Department should set out an overarching trade strategy so that it is clear how its trade policy supports wider policy objectives and how it will use trade negotiations, alongside other levers to achieve its objectives.64
Government Response
Not Addressed
HM Government
Not Addressed
5: PAC conclusion: Parliament and the public are not being provided with clear and transparent information to understand the impact of trade agreements. 5: PAC recommendation: The Department should improve transparency and communications around trade agreements and their impacts, to aid understanding and inform scrutiny. As part of this exercise, it should: • explain clearly to Parliament and the public the policy trade-offs, particularly in relation to human rights and environmental priorities, in new FTAs and the potential impact for sectors, businesses and individuals; and • set out clearly the factors and underlying assumptions driving any changes in the forecast benefits 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The government is committed to a high level of transparency in relation to trade negotiations. The government publishes materials before negotiations launch and after they conclude and is highly consultative prior to and during negotiations across all aspects of interest to stakeholders. Nevertheless, the government strives for continuous improvement. 5.3 The department sets out a strategic case, objectives, and potential economic impacts for each negotiation, engages an advisory network of over 350 organisations and individuals to ensure impacts, trade-offs, and opportunities are understood. Engagement with the new Trade and Sustainable Development Domestic Advisory Group, alongside DIT’s Trade Union Advisory Group and Civil Society Roundtable garners input on priorities (alongside public consultations) and trade-offs before negotiations, and supports effective implementation of climate, environment, and labour provisions. DIT’s UK and global network undertakes thousands of interactions each month with stakeholders on top of communicating updates regularly during negotiations, alongside the department’s already strong Parliamentary scrutiny, including through relevant committees, as referenced in Recommendation 6. Once negotiations conclude, the department explains to stakeholders what has been agreed and publishes explanatory information on the impact of agreements, e.g. macro-economic impact, sectoral impacts, impacts on UK regions and impact on the environment. 5.4 The department constantly reviews its economic analysis methodologies to reflect global best practice. The referenced GDP increase in the Australia FTA impact analysis reflects updates to the modelling methodology, clearly explained in page 25 of the published impact assessment. The changes were informed by the Modelling Review Expert Panel and the impact assessment has been scrutinised by independent experts at the Regulatory Policy Committee, who gave a green rating. 5.5 The department seeks the views of the public through tools including the Public Attitudes to Trade Tracker, which is designed to be representative of the UK population. In its fourth wave 4,009 members of the UK public were interviewed. Survey findings are used to guide communication to support better understandings of trade and trade policy.