26 Accepted

The Department said that it is its job to explain, engage and communicate and that...

Conclusion
The Department said that it is its job to explain, engage and communicate and that when communicating information about trade agreements, it tries to set out what this might mean for consumers.72 We asked the Department why its forecast of the value of UK exports arising from the agreement with Australia had increased by 600% from £900 million in June 2020 to £6.2 billion in December 2021. The Department could not tell us what the difference was, and we considered the lack of clarity to be a failing of some of the Department’s documentation and its communication to parliamentarians. It thought that the majority of the rise was due to changes in its approach to modelling the forecast economic benefits, as part of continuous improvement, and that this is set out in publicly available documents.73 The NAO also underlined the need for the Department to provide greater transparency in the impact assessment for the UK-Japan trade agreement. The report said that the Regulatory Policy Committee, academics and the two Parliamentary committees leading scrutiny have highlighted that the costs to businesses and environmental impacts are areas where better quality information is required.74 Parliamentary scrutiny of trade deals
Government Response Summary
The government accepts the call for greater transparency, detailing its commitment to publishing materials and stakeholder engagement. It explains the updated modelling methodology for the Australia FTA forecast, noting its continuous review and scrutiny.
Government Response
Accepted
HM Government Accepted
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.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.4 yrs
Report published 18 Mar 2022