Thursday, October 1, 2020

Parliamentary scrutiny of trade deals - feasible?

 Who negotiates trade treaties? Who should have the final say - the executive or the legislature? Should trade deals be approved by Parliament before being signed off? Of course, it depends on the system of governance and constitutional scheme.

An interesting note on the contrasting approaches between the US, EU and UK on the prerogative of parliamentary/legislative scrutiny is found in this piece. It essentially notes that the US and EU have a far greater parliamentary control of trade outcomes as compared to UK, Canada and Australia.

The US Congress and EU Parliament both get involved before negotiations begin, and shape the negotiating mandate. The US Congress stipulates in domestic legislation (the Trade Promotion Authority) negotiating objectives that the Government must follow, and it has to be informed and consulted before each negotiation the Government wants to embark on. The European Parliament doesn’t have the formal right to shape the negotiating mandate, but it does have the right to be informed. As the European Parliament ultimately has to approve trade agreements, the European Commission has an incentive to solicit Parliament’s views, and it has become routine to consult Parliament on negotiating directives.

In contrast, in the UK, Australia, and Canada, the government has no legal obligation to share negotiating mandates or consult with parliament. The UK has started to publish summaries of its negotiating objectives and hold short debates on them, but is yet to establish a mechanism for consulting Parliament on them.

Is Parliamentary scrutiny desirable in complex trade negotiations all the time? Are they practical? Can there be alternative mechanisms - select committees or joint parliamentary committees? Would trade deals be subject to political maneuvering of subject to parliamentary scrutiny? Would it lead to delays? DO developing countries have the capacity to deal with such scrutiny in terms of research and providing adequate information to take informed choices?

Is there a middle path between parliamentary scrutiny and executive monopoly? 

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