Context
The Centre for Economic Policy Research assessed that the US accession to TPP could lead to rising wages for top earners and falling incomes for others. Stewart Hosie is concerned about similar impacts on UK income levels.
Question
I thank the Minister for the update. However, when the non-partisan Centre for Economic Policy Research assessed the United States accession to the original and similar trans-Pacific partnership trade deal, it concluded that wages might rise for the top 10% of earners but fall for everybody else. What assessment has his Department made of the impact of CPTPP accession on income levels in the UK, and what guarantees can he give that worsening income inequality would not be a consequence here?
Answer from Greg Hands
I thank the hon. Gentleman for that interesting question. I have not seen that study on the original TPP, but I will say two things. First, when the UK applies, we will be publishing a scoping assessment—an impact assessment—looking at how the deal will affect the UK economy. Secondly, liberal-minded, like-minded democracies such as Canada, Australia and New Zealand have embraced CPTPP with great enthusiasm, which gives me some encouragement in this space.
Not addressed: The Minister did not provide a specific assessment of income impact or guarantees against inequality. He mentioned an upcoming impact assessment but did not commit to it addressing the issue directly.
How: We Will Publish An Impact Assessment, Like-Minded Democracies Have Embraced Cptpp
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