The UK’s trade policy affects jobs, food standards, environmental protections and a raft of other major areas of public policy. Despite this, trade agreements are negotiated with minimal scrutiny.
The Constitutional Reform and Governance Act (2010), which enshrined a convention dating back to 1924 known as the Ponsonby Rule, grants the government sweeping powers to set priorities, negotiate in secrecy, and sign deals without meaningful oversight.
This lack of transparency has drawn criticism from civil society, businesses, and trade unions, who warn that trade policy is being shaped by corporate interests rather than the public good.
Overview
Trade agreements influence almost every aspect of daily life, yet the UK’s trade policy operates with little transparency or parliamentary oversight. The government has full control over decisions on prospective trade partners and negotiating priorities, and it holds the power to conclude new deals without meaningful input from Parliament or the public. While other countries, such as the US and EU, have established robust processes for trade scrutiny, the UK lags behind, allowing trade policy to be dictated without democratic safeguards.
The UK Government’s approach to trade negotiations has been widely criticised. The International Trade Committee accused the government of setting an “outrageous precedent” by limiting parliamentary scrutiny of the UK-Australia Free Trade Agreement (FTA). Similarly, the Business and Trade Committee condemned the government for “dodging scrutiny” during the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. A formal complaint under the Aarhus Convention has been filed by a coalition of NGOs, challenging the UK’s failure to consult adequately on these trade deals.
Concerns & risks
The absence of democratic oversight in trade policymaking poses significant risks:
- Limited parliamentary role: MPs have no guaranteed power to shape negotiating objectives or scrutinise trade negotiations. Even after trade agreements are finalised, Parliament is not assured a vote to approve or reject them.
- Exclusion of civil society and devolved administrations: Key stakeholders, including devolved governments, trade unions, and environmental organisations, are often shut out of negotiations or restricted by non-disclosure agreements that limit meaningful engagement.
- Lack of transparency: The secrecy surrounding trade negotiations undermines public trust and prevents informed debate on agreements that will shape the UK’s economic and environmental future.
- Negative consequences for workers, climate, and public services: Without scrutiny, trade agreements may prioritise corporate interests over labour rights, climate action, and social protections.
TJM’s position & recommendations
TJM calls for urgent reforms to ensure that UK trade policy is democratic, transparent, and inclusive. Key areas for reform include:
1. A comprehensive trade strategy
The UK needs a clear and publicly available trade strategy that outlines how trade policy will align with:
- Climate commitments.
- Human rights standards.
- Environmental and social protections.
2. Transparent and inclusive negotiations
Trade negotiations must be conducted with input from all stakeholders:
- Parliamentary oversight: MPs should have the opportunity to debate and influence negotiating objectives before talks begin.
- Engagement with devolved nations and civil society: Governments across the UK, alongside civil society organisations and the public, should have a meaningful role in shaping trade policy.
- Transparency at every stage: Negotiations should be conducted openly, with regular updates and public consultation.
3. A final say on trade agreements
Parliament and the devolved administrations must have the authority to:
- Scrutinise, amend, and vote to accept or reject trade agreements.
- Retain the power to review agreements and withdraw from them if necessary.
4. Robust monitoring and accountability
The implementation of trade deals must be subject to continuous monitoring to assess their impact on:
- Economic sectors: Are all regions and industries benefitting equitably?
- Social outcomes: How do trade agreements affect jobs, wages, and inequality?
- Environmental standards: Are the agreements advancing or hindering climate and sustainability goals?
By enacting these reforms, the UK can ensure that trade policy serves the public interest, rather than being dictated by corporate or political expediency.
