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CPTPP: Conclusion of Negotiations
17 April 2023
Lead MP
Kemi Badenoch
Debate Type
Ministerial Statement
Tags
EconomyClimateBrexitForeign AffairsBusiness & TradeAgriculture & Rural AffairsStandards & Ethics
Other Contributors: 22
At a Glance
Kemi Badenoch raised concerns about cptpp: conclusion of negotiations in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EconomyClimateBrexitForeign AffairsBusiness & TradeAgriculture & Rural AffairsStandards & Ethics
Government Statement
The Minister announced the UK's substantial conclusion of negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). She highlighted the strategic importance of joining CPTPP, which is expected to grow faster than the EU over the next three decades. The agreement will enhance access to a market of more than 500 million consumers, representing about 15% of global GDP. Key benefits for British businesses include tariff-free trade on 99% of current goods exports to CPTPP members and new opportunities in Mexico and Canada. Farmers will benefit from increased market access, including zero-tariff access to Canada's butter and cream market and reduced tariffs on whisky to Malaysia. The deal includes comprehensive chapters on environmental protections, anti-corruption measures, and workers' rights, ensuring that UK standards remain high. The Government plans to follow the Constitutional Reform and Governance Act 2010 process for ratification.
Torfaen
Question
The shadow Secretary of State criticised the lack of detail in the announcement. He raised concerns about specific safeguards for UK producers, investor-state dispute settlement mechanisms, and support for agriculture and palm oil imports. Additionally, he asked for engagement with devolved Governments and assurances that the CPTPP agreement will not undermine the Windsor framework.
Minister reply
The Minister acknowledged the importance of scrutiny but emphasised that no compromise was made on food quality or animal welfare standards. She noted that appropriate protections were secured for UK producers while maintaining high environmental and labour standards, including comprehensive chapters in the agreement covering these issues.
Torfaen
Question
Thomas-Symonds criticised the Government's limited progress in securing trade deals with India and the US, questioning the economic benefits of joining CPTPP. He also raised concerns about ISDS mechanisms, agricultural protections, engagement with devolved governments, and assurances regarding China’s application for CPTPP membership.
Minister reply
The Secretary emphasised that the UK is negotiating a mutually beneficial deal with India, not rushing into an agreement. She highlighted that the US is not currently engaging in new trade deals and noted progress on signing memorandums of understanding with US states. The 0.08% GDP figure was dismissed as outdated and irrelevant to current economic dynamics. Agricultural protections were acknowledged, but specific details were deferred until legal text completion. Concerns about ISDS mechanisms and devolved government engagement were addressed by pointing to ongoing negotiations and the need for mutual benefit.
Conor Burns
Con
Question
Burns congratulated the Secretary on her focus on delivery and highlighted the contributions of Chief Trade Adviser Crawford Falconer and Department lead negotiator Graham Zebedee. He also noted the importance of re-examining modelling used for trade deals to counter critics.
Minister reply
The Secretary thanked Burns for his praise and acknowledged the hard work of Crawford Falconer and Graham Zebedee, noting their dedication in negotiating a complex multilateral deal. She agreed that figures are being misused by detractors and offered to provide further explanations on modelling used for trade deals.
Richard Thomson
SNP
Gordon
Question
I thank the Secretary of State for advance sight of her statement. No matter how she tries to dress this up, the CPTPP will still be a low standards agreement that lacks adequate safeguards and represents a poor substitute for all the trade deals that we have left behind.
Minister reply
Madam Deputy Speaker, I would like to apologise to our friends from Japan and Vietnam who had to listen to that diatribe. This is a high standards deal. Food standards are not part of a free trade agreement. We make the rules about our food standards in the UK.
Julian Lewis
Con
New Forest East
Question
May I ask the Secretary of State to underline that CPTPP has no ambitions to create a politically unified superstate?
Minister reply
I wholeheartedly endorse my right hon. Friend’s comments. This deal is purely about trade, not political integration.
Hilary Benn
Lab
Leeds South
Question
Do the Government support China’s application to join the CPTPP?
Minister reply
It would be quite wrong of me to start commenting on other countries’ accession when we have not even signed our agreement. However, it is something to celebrate that we will have a say in what the nature of their accession should be.
Question
I congratulate my right hon. Friend on this excellent deal and thank her for the care and consideration she has shown towards our farming community.
Minister reply
My hon. Friend is quite right that the standards we are setting here show the roadmap for what the UK is interested in and willing to do, particularly on services.
Question
Many of the existing CPTPP members already have integrated supply chains due to their close geographic location. What does this deal mean for manufacturers in Wales, Scotland and England?
Minister reply
The deal creates more flexible rules of origin regulations which will make it much easier for those exporters who want to take advantage of that. However, we also need to remember that this is not just an export of goods deal, but a services deal.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Question
Does my right hon. Friend agree that countries such as Australia and New Zealand have welcomed the UK’s accession to the partnership not just for the trade opportunities but because of the values of this country?
Minister reply
My right hon. Friend has said it better than I could. This deal has been universally welcomed across the board by countries with Governments of different political flavours, because they recognise that it is good not just for the UK or for them, but for global trade more broadly.
Question
What prior discussions were there with the devolved institutions about the UK Government’s negotiating position and what is going to happen now?
Minister reply
Yes, there was discussion. The process started in 2018. There will be the usual process of parliamentary scrutiny under the Constitutional Reform and Governance Act 2010.
Question
I serve as the Prime Minister’s trade envoy to Japan and chair of the all-party parliamentary group on Japan. Will the Secretary of State join me in paying particular thanks to the Government of Japan for their strong support for the UK’s application?
Minister reply
I thank my right hon. Friend for the opportunity to say “yes” wholeheartedly in answer to his question, and to emphasise that this is not just an agricultural deal but one that cuts across multiple sectors.
Question
The economic growth of CPTPP member Malaysia is largely dependent on palm oil which raises environmental concerns. What plans do Ministers have to ensure that the UK’s joining does not undermine our environmental principles?
Minister reply
I thank the hon. Lady for her question, especially because it gives me an opportunity to expand on exactly what the implications of the tariff-free rate on Malaysian palm oil are. There are 9,500 lines of products in the tariff register, of which palm oil represents just a handful—maybe up to 10 or so. The UK Government share the regard for environmental protections and arrived at the conclusion that we already import only about 1% of Malaysia’s palm oil.
James Duddridge
Con
Rochford and Southend East
Question
The MP thanked the Secretary of State for her hard work as Trade Minister, asking what brought about the speed of changes in trade deals with Indonesia. He questioned whether there were lessons to be learned for other deals.
Minister reply
The minister expressed gratitude for the MP's work and clarified that a lot of work is being done to strengthen economic ties with countries in the Indo-Pacific region, including Indonesia and Thailand. She highlighted the significant role played by soft power, diplomatic outreach, and civil servants in these efforts.
Layla Moran
Lib Dem
Oxford West and Abingdon
Question
The MP was concerned about China's potential participation in CPTPP given the human rights abuses. She also asked if Taiwan could be considered for inclusion.
Minister reply
The minister explained that it is not her role to make foreign policy decisions regarding hypothetical scenarios involving China or other countries. However, she expressed willingness to extend warm words about Taiwan.
Jack Brereton
Con
Stoke-on-Trent North
Question
The MP welcomed the agreement and asked for details on opportunities for Stoke-on-Trent's manufacturing industries, particularly ceramics, to export their products.
Minister reply
The minister thanked the MP for his question and mentioned that the Federation of Small Businesses has identified significant export markets for small UK firms. She advised businesses to contact their local DBT representative for specific information.
Barnsley Central
Question
The MP inquired about the trade agreement's details, specifically regarding ISDS and palm oil exclusions. He also questioned the necessity of the 21-day scrutiny period under the Constitutional Reform and Governance Act.
Minister reply
The minister explained that the investment chapter includes modern investor protections backed by a transparent ISDS mechanism. She confirmed that Parliament will scrutinise the agreement for 21 days as per the act.
Anthony Mangnall
Con
West Penwith
Question
The MP congratulated the Secretary of State on her work and inquired about the role of the Trade and Agriculture Commission and whether there would be a vote and debate on the agreement.
Minister reply
The minister confirmed that relevant Committees will have time to scrutinise the accession. She also stated that Parliament will present CPTPP for scrutiny under the Constitutional Reform and Governance Act, with the opportunity for additional scrutiny.
Arfon
Question
The MP asked how the agreement would benefit small exporting businesses in north-west Wales, particularly those facing challenges such as exporting plants to Ireland.
Minister reply
The minister responded that the agreement will benefit all UK nations equally. She suggested that businesses should be informed of quotes from business representative organisations and larger companies about the benefits of the deal.
Kit Malthouse
Con
North West Hampshire
Question
The MP inquired about the benefits for sheep farmers and lamb producers within the CPTPP negotiations, specifically mentioning North West Hampshire.
Minister reply
The minister provided good news to the MP, stating that there will be staged liberalisation of market access in many countries, particularly Mexico. This will benefit UK farmers by providing more markets and deeper access for their exports.
Henry Smith
Con
Crawley
Question
The MP welcomed the UK's accession to CPTPP and asked about the future share of the global market between CPTPP and the European Union.
Minister reply
The minister highlighted that CPTPP is a trade bloc with over 500 million people and £9 trillion GDP, growing faster than the EU. She clarified that this deal complements the UK's existing free trade agreement with the EU.
Paul Bristow
Con
Dewsbury
Question
Thank you, Madam Deputy Speaker. I remind the House that I serve as the chair of the all-party parliamentary group on Canada, Australia, New Zealand and the UK. CPTPP will bring the UK into an exclusive global free trade bloc with Canada, Australia and New Zealand, on top of individual trade agreements of varying depth with each country. Free trade co-ordination between Canada, Australia and New Zealand and the UK is one of the three key aims of the CANZUK campaign. Does the Minister agree that this alliance is another step closer to what is, I believe, the desirable outcome of stronger economic, diplomatic and cultural ties between all CANZUK countries?
Minister reply
My hon. Friend is absolutely right. He makes the point very well that CPTPP comes on top of bilateral trade agreements. There are many assumptions that if there is already a bilateral deal, there is no additional benefit from CPTPP, but that is definitely not the case—there is an additional benefit of having a broader market. I talked about the rules of origin and being able to use components from different countries, but he is right about the geopolitical perspective and how we can look at our security, and at our economic security in particular. We can look at things such as critical minerals, where we have just signed a memorandum of understanding with Canada, and the supply chain there. There is a lot of good work being done to help integrate us with like-minded partners around the world.
Shadow Comment
Nick Thomas-Symonds
Shadow Comment
The Shadow Secretary of State criticised the lack of detail in the Minister's statement, questioning the projected economic impact on GDP. He highlighted concerns about trade deals' quid pro quo and sought specifics on safeguards for UK producers, particularly regarding investor-state dispute settlement mechanisms. Questions were raised about support for agriculture and protection against palm oil imports linked to deforestation. The Labour MP also asked for engagement with devolved Governments and assurances that the CPTPP agreement will not undermine the Windsor framework. Concerns were expressed over China's application to join and the assurance of strong workers' rights, urging proactive steps to boost export figures.
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