Commons Sense

House of Commons · Ministers' Questions

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Thursday 8 October 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Stewart Hosie inquired about a study suggesting the TPP might raise wages for the top 10% while lowering them for others, prompting the Minister to promise a scoping assessment upon UK application to CPTPP.
  • Stewart Hosie mentioned Thailand's interest in CPTPP and concerns about the impact on generic drugs and government procurement, to which the Minister assured that joining CPTPP would not prevent the UK from setting domestic pharmaceutical prices.
  • Gareth Thomas asked about Malaysia's concerns regarding CPTPP provisions on government procurement and investor-state dispute settlements, and the Minister noted that the UK has never lost an investor dispute case and highlighted opportunities for government procurement.

Topics (select to filter)

Questions & Answers

Q1 Stewart Hosie SNP
Economy Business & Trade
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.

Partly answered

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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Q2 Stewart Hosie SNP
NHS Scotland Brexit Business & Trade
Context

Thailand's faculty of pharmaceutical sciences assessed that under CPTPP, the costs of drugs would rise due to patent and market approval rules impacting government procurement.

Question

It is just not the UK that is seeking to join CPTPP; Thailand, for example, is actively investigating it. Thailand's faculty of pharmaceutical sciences has assessed that because of the way CPTPP rules on patents and on market approval for generic drugs that impact on Government procurement and so on work, the costs of drugs would rise. Given the Bangkok Post headline that CPTPP would lead to “soaring” drugs bills, what guarantees can the Minister give that a similar rise in the cost of medicines to the NHS, for the same reasons, would not be the consequence here?

Answer from Greg Hands

Again, I thank the hon. Gentleman for that question. Nothing in any trade deal prevents us from setting domestic pharmaceutical prices, and that would remain true in respect of CPTPP. Let me have a look at why the Scottish National party is questioning the potential to join CPTPP. I have the feeling that the SNP is just not in favour of any trade agreements; I have had a look at CPTPP members, and the SNP was against doing a deal with Canada, against doing a deal with Japan in Brussels and against doing a deal with Singapore. So I feel that whatever intricate, detailed questions he has on CPTPP, he will not support our joining it.

Not addressed: The Minister did not address the question about drug costs or provide any guarantees regarding NHS medicine prices.

How: Snp Is Questioning Potential To Join Cptpp, Snp'S Record On Trade Agreements

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Q3 Gareth Thomas Labour (Co-op) Harrow West
Business & Trade
Context

Malaysia is delaying ratification of CPTPP due to concerns about provisions impacting government procurement and investor-state disputes. Gareth Thomas asks for an assessment before UK negotiations proceed.

Question

The Government of Malaysia are delaying ratification of CPTPP because they have become concerned, belatedly, about the impact of the treaty's provisions on Government procurement and on investor-state dispute settlements. So before our Government go full steam ahead into negotiations to join CPTPP, will the Minister provide an assessment of those provisions for our country?

Answer from Greg Hands

The UK is a different economy from Malaysia, and the UK has never lost a an investor dispute case through the investor-state dispute settlement. Secondly, Government procurement is a huge opportunity for this country. Just yesterday, we were delighted to see our accession to the World Trade Organisation's Government procurement agreement, as a sure way to make sure that Government procurement remains open for UK businesses and UK procurers. A bit like the SNP, I have checked the hon. Gentleman's record on CPTPP and he has opposed doing the deals. He voted against on Singapore, abstained on Japan and even went further than his Labour colleagues in voting against CETA—the comprehensive economic and trade agreement—taking effect. A bit like the SNP, he is trying to find fault in an agreement that he has no intention of supporting, at any point.

Not addressed: The Minister did not provide a specific assessment or guarantee regarding procurement and investor-state dispute provisions under CPTPP. He instead focused on past votes against other trade agreements.

How: Record Of Hon. Gentleman'S Voting On Trade Deals, Assessment Based On Comparison With Malaysia

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