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Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill [Lords] - Sitting 2

20 February 2024

Proposing MP
Gareth Thomas Lab Co-op
Harrow West
Type
Public Bill Committee

At a Glance

Issue Summary

Gareth Thomas is raising concerns about the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and its impact on government procurement. Gareth Thomas addresses concerns about the environmental impact of the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), focusing on palm oil imports and deforestation. The MP is questioning the Minister's stance on ISDS and its impact on the environment, specifically regarding CPTPP. The statement addresses concerns about the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and its impact on UK food standards and animal welfare. The statement discusses the UK's commitment to environmental and sustainability goals within the context of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It addresses concerns about deforestation, palm oil production, and regulatory standards. Gareth Thomas is proposing amendments to Clause 4 regarding the cancellation of protected designations of origin or geographical indications and the publication of an impact assessment. Gareth Thomas is discussing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Bill and its implications for geographical indicators (GIs) in the UK. The statement addresses amendments related to geographical indicators (GIs) and performers' rights in the context of the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Gareth Thomas discusses concerns over clause 5 of the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill, which addresses performers' rights in broadcasting and public playing of music. The statement discusses amendments to clause 5 of the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill, focusing on performers' rights and compliance with CPTPP. Gareth Thomas is discussing amendments related to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Bill, focusing on the impact on creative industries and procurement policies. Gareth Thomas discusses concerns about procurement rules under CPTPP and the impact of UPOV 91 on small farmers. The statement addresses concerns about the financial risk associated with the implementation of the Investor-State Dispute Settlement (ISDS) aspect of the CPTPP Investment Chapter. The statement discusses the risks and challenges posed by Investor-State Dispute Settlement (ISDS) mechanisms within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The statement addresses concerns about ISDS provisions in trade agreements and their potential impact on UK sovereignty and regulatory autonomy. The statement discusses the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Bill and addresses concerns about investor-state dispute settlement (ISDS) provisions.

Action Requested

Thomas requests that the Secretary of State must lay before Parliament assessments of the impact of the CPTPP Chapter on government procurement within three years of Royal Assent, focusing on climate change, sustainable production, deforestation, and environmental targets. He also wants an assessment of manufacturing in the UK, job market impacts, and public service delivery.

Key Facts

  • The CPTPP may not sufficiently safeguard against potential negative impacts on local industries, workers' rights, and environmental standards.
  • Labour's amendments aim to ensure that trade respects commitments under international agreements including combating climate change, protecting biodiversity, and upholding labour rights.
  • About 90% of the world’s oil palm trees are grown on islands in Malaysia and Indonesia.
  • Only 1% of Malaysian palm oil smallholdings are certified by the Roundtable on Sustainable Palm Oil, constituting approximately 40% of all palm oil plantations in Malaysia.
  • Deforestation is now the second largest contributor to climate change globally, after burning fossil fuels.
  • Once ratified, CPTPP will remove import tariffs on palm oil irrespective of environmental credentials.
  • Secondary legislation under schedule 17 of the Environment Act 2021 is still due.
  • The Government initially committed to looking at six agricultural commodities but now only four are covered in the secondary legislation: non-dairy cattle, cocoa, palm oil and soy.
  • Businesses with a global annual turnover of £50 million or more will have to comply with the secondary legislation.
  • Afruibana raised concerns about tariff reductions on bananas from Mexico and Peru affecting African exporters.
  • Gareth Thomas has been an MP for 27 years.
  • The UK was subject to a contractual dispute regarding Eurotunnel under the Labour Government.
  • The UK supports ISDS in CPTPP but not necessarily with Canada.
  • A full impact assessment for the UK’s accession to CPTPP was published at signature in July 2023.
  • The UK Government published an impact assessment last July.
  • CPTPP members are signatories to the Paris Agreement and other multilateral environment agreements covering biodiversity, ozone-layer protection, and pollution.
  • There will be no tariffs on UK exports of new electric vehicles and wind turbine towers under the CPTPP.
  • CPTPP does not prevent a domestic right to regulate.
  • In spring, the Government will lay forest risk commodities legislation under the Environment Act.
  • Palm oil imports certified as sustainable increased from 16% in 2010 to 86% in 2022.
  • Deforestation related to palm oil in Malaysia has fallen by 60% since 2012 (latest available data).
  • The UK and Malaysia are signatories to the Glasgow leaders’ declaration on forests and land use, aiming to halt deforestation by 2030.
  • Gareth Thomas is moving amendment 3 to Clause 4.
  • Rupa Huq will discuss Amendment 4.
  • Amendment 4 proposes a Secretary of State must publish an assessment within three years after Royal Assent.
  • The intellectual property chapter in CPTPP includes provisions for protecting geographical indicators (GIs).
  • Two products from northwest England—traditional Cumberland sausage and Beacon Fell Lancashire cheese—have secured GI status in the UK.
  • Clause 4 of the Bill allows opposition to a GI application based on trademark confusion and grounds for cancellation of agrifood GIs.
  • The NFU thinks that CPTPP provisions for food GIs are limited, with spirits and wines being the only products with agreed protections.
  • Promoting British products with GIs could help secure greater export returns for UK farmers.
  • Elizabeth Truss promised GI status in Japan within five months for 70 iconic British foods more than three years ago.
  • Amendment 3 was tabled as a probing amendment.
  • The Government has already published a full impact assessment for UK’s accession to CPTPP in July 2023.
  • A biennial monitoring report and comprehensive evaluation report will be published within five years of the UK’s accession.
  • Clause 5 addresses performers' rights in broadcasting and public playing of music.
  • A consultation document was released on January 15, due to close on March 11.
  • The issue could have significant consequences for the UK's creative industries.
  • There is no mention of CPTPP compliance in the impact assessment.
  • Clause 5 implements articles 18.8 and 18.62 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
  • The amendments ensure that foreign performers from CPTPP parties qualify for rights in UK law based on eligibility criteria.
  • Amendment 5 would limit application to CPTPP parties only, while amendment 6 delays changes until after Bill enactment.
  • Amendments 5 and 6 are probing amendments reflecting industry concerns.
  • Amendment 7 seeks to delay commencement of performers' rights provisions until twelve months after Bill passage.
  • The Intellectual Property Office is consulting publicly until 11 March, aiming to implement outcomes in parallel with the Bill's effect.
  • New Clause 1 proposes an assessment of CPTPP Chapter on government procurement within three years of Royal Assent.
  • New Clause 3 calls for a review and assessment of lessons learned from negotiation and implementation of the CPTPP Chapter on government procurement.
  • Professor Albert Sanchez-Graells expressed concerns about legal uncertainty under CPTPP procurement rules.
  • The CPTPP allows for the exclusion of legal remedies based on public interest, which could discourage small businesses from investing in CPTPP countries.
  • UPOV 91 requires strict national IP legislation that can eliminate farmers' rights to save and exchange certain seeds.
  • Compliance with UPOV 91 has been controversial in Malaysia and Chile due to concerns about loss of biodiversity.
  • The new clause requires a review of the financial risk of ISDS implementation not more than 18 months after the Act's passage.
  • Concerns are raised about ISDS challenging environmental regulations, as seen in the Eco Oro Minerals Corp. v. Republic of Colombia case where the company sued for $696 million due to a mining ban protecting páramos ecosystems.
  • The Trades Union Congress (TUC), Trade Justice Movement, and Greenpeace express concerns over ISDS's impact on democratic governance and policy autonomy.
  • The Veolia v. Egypt case concluded after six years of litigation with costs ranging from $8 million to $30 million.
  • Between 1993 and 2020, UNCTAD reported 1,104 known ISDS cases globally, many involving environmental regulations.
  • Amendments propose mandating parliamentary approval for ISDS mechanisms by resolution of each House of Parliament.
  • Public consultations are required to address diverse viewpoints and concerns from trade unions, environmental groups, and other affected sectors.
  • The UK has investment agreements retaining ISDS provisions with about 90 trading partners.
  • The UK has never been a recipient of a successful ISDS case from any investors from CPTPP parties or other countries.
  • ISDS can prevent arbitrary discrimination against foreign companies and is important for attracting foreign direct investment.
  • British investments in Canada totalled £40.6 billion in 2021.
  • The UK has investment agreements containing ISDS provisions with seven of the eleven CPTPP countries and 90 countries worldwide.
  • No successful claim from any investors of CPTPP countries or other countries with which the UK has ISDS commitments.
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