Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill [HL]

(Limited Text - Ministerial Extracts only)

Report stage
Tuesday 16th January 2024 Lords Chamber

[Lord Lansley (Con)]

My Lords, this group and the next group of amendments follow debates that took place in Committee, and I am very grateful for the Minister’s response then and for his subsequent letters that have further amplified the discussion about this. I apologise for delaying the House—not for very long, I hope—simply, in the case of both amendments, not to make any point of principle contradicting what is in the Bill, but to try to ensure that the meaning of the Bill and its intentions are as clear as we can possibly make them.

The first two amendments, Amendments 1 and 2, work together to rewrite that bit of the Bill to state that the exempt contracts would be, in this instance, where they are “wholly or mainly funded” by an international organisation, or

“funded by an international organisation of which the United Kingdom is a member to a lesser extent”—

so that funding is to a lesser extent—and is “required to be” under a procedure adopted by that international organisation. Article 15 of the CPTPP has a requirement that we want to transpose into our legislation. It states that a procurement that is not covered by individual countries’ own procurement rules would be one that is

“funded by an international organisation or foreign or international grants, loans or other assistance to which procurement procedures or conditions of the international organisation or donor apply”.

What we are looking to do in this instance is to reproduce that, so that the exemption for contracts under our Procurement Act matches what is in the CPTPP.

The government view was that the CPTPP just says “funded”, while our general approach is to try to clarify, to a greater extent, that it should say “wholly or mainly funded”—namely, more than 50%—which is consistent with what we do in relation to the rule on the general procurement agreement. However, the point that I have now reached, which I put to my noble friend via these amendments, is that it is not necessarily the case that an organisation such as the World Bank has to be a majority funder in order for its funding—and that of others with which its funding is associated, which might be other providers of grants or loans, or the recipient country in one form or another—to be required to be conducted under its procedures. That being the case, should we reflect the CPTPP rules by saying that either a procurement is “wholly or mainly funded” by the international organisation, or, if it is funded to a lesser extent, that it is required to be subject to its procedures, and that that would give rise to an exemption under our procurement rules?

That is the point of the amendment. I am sure my noble friend will appreciate the rather fine distinctions, but I wonder whether he might agree that, at the very least, we want to be absolutely clear that, if a procurement has to be conducted under the rules of an international organisation, such as the World Bank, it should be exempt from our Procurement Act requirements. I beg to move Amendment 1.

[The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)]

My Lords, I begin by declaring my interests, which are very clearly listed on the Lords’ register. I have interests in limited companies and companies that are active in CPTPP countries, but I do not believe there is any conflict.

[Baroness Kennedy of The Shaws (Lab)]

My Lords, we cannot really hear the Minister; could he raise his voice?

[Lord Johnson of Lainston (Con)]

Yes, my apologies. Before I begin, I would like to declare my interests, which are very clearly listed on the Lords’ register. I have interests in limited companies and other companies active in CPTPP countries, but I do not believe there is any conflict of interest in this process today.

I will also say how excited I am about being back here today to cover Report stage of the CPTPP Bill. This incredible collective of millions of people, representing trillions of pounds-worth of trade, coming together will give huge benefit to us, and I am very excited about the opportunity for this great nation to add our trading muscle to what I think will be a phenomenal collective.

Importantly, I give a great deal of thanks to noble Members of this House who have contributed so much to the painstaking work which goes into crafting a Bill of this type and ensuring we come to the right conclusions in the right way. I know there have been a large number of you, many of whom are present today, but I particularly note the noble Lords, Lord McNicol and Lord Purvis, from the Opposition Benches, for their extremely collaborative and constructive input into the debates. My noble friend Lord Lansley, who we have just heard from, brings a wealth of experience, particularly on procurement. I am very grateful for his input. My noble friends Lady McIntosh, Lord Holmes, Lady Lawlor and a number of others, including the noble Baroness, Lady Hayter, and the noble Lord, Lord Kerr, have engaged with me. We still have one more stage after Report and I will be delighted to continue engaging with any Members of this House, or indeed any groups that noble Lords think it would be useful for me to engage with.

I will also set the scene briefly for the debates we are going to have on many of these respective issues. My noble friend Lady McIntosh is in her usual place, and I apologise, because I have been trying to reach her over the last few hours, but we have not had a chance to have a discussion. I reference this point because what happens today in terms of how we trade, or how we manage our own standards in this country, does not change tomorrow. I think it is important to summarise at the beginning of this debate that acceding to CPTPP in no way derogates our standards or our ability to control our standards and, indeed, our destiny. We have been very careful to ensure that the processes are indeed very separate.

I know that we will have these debates later, but it is worth re-emphasising this important point, which I think is sometimes lost in the excitement of CPTPP—the argument that somehow our standards, import requirements and so on change, when they do not. All food and drink products imported into the UK will still have to meet the respective food safety and biosecurity standards for the UK. We are not having to change any of our food standards as a result of joining CPTPP, and it is important to emphasise on these well-discussed points that hormone-treated beef and chlorine-washed chicken are banned in the UK and will not be allowed to enter the UK market.

I am very grateful to various agencies such as the Food Standards Agency, the Trade and Agriculture Commission, the International Agreements Committee and other groups that have been extremely focused on ensuring that these facts are properly reported. I am grateful to them for the backing that they have given me in ensuring that those statements are clear.

It is also worth pointing out that CPTPP preserves the right to regulate to protect human, animal and plant life and health. The TAC report says that the CPTPP does not require the UK to change its levels of statutory protection in relation to animal or plant life or health, animal welfare or environmental protection. I am well aware that noble Lords wish to cover these issues later in this debate, but it is important to set that scene.

There is one area I would like to draw on now, in advance of these discussions, regarding palm oil. I reassure the House that liberalising palm oil tariffs with Malaysia does not undermine the UK’s environmental credentials. We remain committed to supporting the sustainable production of palm oil. In 2021, 72% of UK palm oil imports were certified as sustainable, up from 16% in 2010.

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[Baroness Butler-Sloss (CB)]

Perhaps I might add something before the Minister speaks. Having listened with interest to my noble and learned friend Lord Hope, and with my limited intellectual property knowledge, I am concerned about the use of the words “established by use”. As far as I know, they do not appear elsewhere and are certainly not part of existing legislation. To bring them into this legislation, almost by a side wind, would be somewhat unfortunate.

[Lord Johnson of Lainston (Con)]

As always, I thank my noble friend Lord Lansley and all contributors to the debate on this amendment. It is very relevant, in my view; however, I am comfortable keeping the words “established by use” in the Bill as printed, rather than using

“in use prior to that date”.

My reason is simple and was pointed out by my noble friend: a single use of a name could be construed as giving the same protections as a trademark which, through an effective accumulation of good will and the establishment of its use, has been protected under these laws. We are quite comfortable with the wording.

I am aware that there is no reference to the concept of “established by use” in the Trade Marks Act 1994— I am surprised that there is no lawyer in this House jumping up to support me at this crucial moment, just when I need one. They seem not to be in their usual places but they would say, were they here, that this is an extremely well-established part of trademarks law. As I understand it—I am comfortable to be corrected, but my officials assure me of this—elsewhere, in the amended legislation relating to unregistered trademarks, is the common-law tort of passing off, which relates to good will. I am also reassured that in GI legislation—for example, Article 14(2) of the assimilated regulation 1151/ 2012—the concept of “established by use” is written and codified.

From our point of view, it is important to ensure that we protect our trademarks and that we use geographical indicators where appropriate. I will come on to the point raised by the noble Lord, Lord McNicol, in a moment. Having spent a great deal of time working on this, I ask my noble friend to withdraw his amendment because I do not believe that by changing the phraseology we will give the greater protection that we want to our trademark-using organisations, businesses and people, and allow the system to function effectively. I am very convinced of that. We have a line in our next amendment that will allow us to discuss geographical indicators in slightly more detail, so I will cover the points raised by the noble Lord, Lord McNicol, at that point if he is content with that.

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Moved by

[Lord Johnson of Lainston]

4: Clause 4, page 3, line 24, at end insert—
“1B. In a case where the protected designation of origin or protected geographical indication has been the subject of an application for approval of an amendment to the product specification under Article 53 which resulted in a change to the protected name, the reference in paragraph 1A to the application for registration under Article 49 is to be read as a reference to the application for approval of the amendment to the name under Article 49 as applied by Article 53(2) (or, in a case where there has been more than one such application, the latest of those).”Member's explanatory statement
This amendment clarifies the test for cancelling a protected designation of origin or geographical indication where the registered name has been the subject of a name change application; a cancellation will be possible only if the grounds for cancellation existed at the date of the name change application (rather than the date of the original application for registration).

[Lord Johnson of Lainston (Con)]

My Lords, Amendment 4 is a minor technical amendment that the Government have introduced. I will read out my brief to be clear, because it is quite technical. The Bill as currently drafted may lead to a degree of uncertainty for decision-makers over the date that should be used when assessing whether the new grounds for cancellation of a geographical indication apply in a case where the GI has successfully undergone a name change. Under the current drafting, it could be argued that, in such a case, the date on which the original application to register the GI was submitted under Article 49 of Regulation 1151/2012 should be the date used to carry out the assessment and not the date when the name change application under Article 53 was submitted. This amendment addresses that uncertainty by making it clear that the assessment should be carried out based on the factual position relating to the date when the name change application was submitted, rather than the date the original Article 49 application was submitted.

I will translate that a little. The provision is effectively looking at the date on which the name change is submitted, rather than the original name. If I have a GI—“Johnson’s Water” or whatever it may be—registered in 1990 and then change the name to “Lord Johnson’s Water” this year, then the reference would be made to the point at which the name change application was made, rather than the status at the time of the original GI. It is a clarification which we think is important, and I trust my officials’ view on that.

I will just answer briefly the very helpful comments raised about Japan and geographical indicators. I would be extremely grateful to my noble friend Lord Lansley for making representation to the authorities in Japan to speed the process up. We are fully committed to ensuring that our GIs are protected in Japan; it is part of the agreements we have undertaken, but these things take time to effect. We are doing everything we can to be sure that those indicators are protected. Anything that he can do to speed that process up will be gratefully received by this Government. I beg to move.

[Lord Leong (Lab)]

My Lords, as we have heard, this government Amendment 4 is really a relatively minor and technical amendment, so there is not much to add, except for some questions we hope the Minister will respond to. How often do the Government expect this test to be utilised, and are there any potential ramifications they will come across? What happens if the name change application is not successful—is that a possibility? Finally, if a name changes from a geographical indication into a generic term, does this amendment apply?

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for that point. I am very comfortable having a more detailed discussion about GIs in principle. It is worth noting that many countries, including those in the CPTPP, do not have necessary GI processes. Sadly, too few do, so there is a great push on behalf of this Government to ensure that we advance the cause of geographical indicators to ensure that our rights are protected. It is correct that it is possible for a name change to be rejected; it is a process that takes time, as with any intellectual property issue. It is a detailed and thorough process to ensure that we can be comfortable that names, trademarks, GIs and so on are properly protected, and the research has been done. It can be six months or it can be a year, which is why we have built in this provision to ensure that it is the point of application rather than the point of approval that the data is referring to. That makes sense.

There have not been any cancellations of GIs undertaken by this Government, or indeed recently. I will check that, but I hope I am accurate; if I am not, I will certainly correct myself in the Library. The question from the noble Lord is about whether this is something that happens regularly, and is a constant and ongoing issue. Maybe there have been one or two exceptional examples but as far as I am aware, it is a relatively straightforward process; it seems quite uncontentious so far.

These regulations simplify the processes in respect of how we operate with the CPTPP. Often, we look at the activities that will take place in this country, which is right. How to protect our own GIs is what we are working on domestically. Really, this allows us to export the whole principle of geographical indicators—the wonderful concepts of Scottish salmon and Scottish whisky, to name just two enormously important and well-branded products. It allows us to work with our partner countries in the CPTPP to ensure that those brands and concepts are well protected, because a GI does not give us any strength unless it is domestically registered and the domestic legal system respects these principles. I therefore hope very much that the House will support me on this technical amendment and on the principle that it projects.

Amendment 4 agreed.

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[Lord Leong (Lab)]

My Lords, I thank all noble Lords for their contributions and the noble Lord, Lord Alton of Liverpool, for presenting this amendment calling on the Secretary of State to publish a report assessing the potential impact of China’s accession to the CPTPP on the United Kingdom and saying that both Houses of Parliament must be presented with a Motion for resolution on the said report.

As the noble Lord, Lord Lansley, indicated earlier, we on this side of the House would have preferred this amendment to cover all new accession countries—but for the purposes of this amendment I will refer just to China. Several noble Lords spoke in Committee on the case for this amendment and I do not propose to repeat what was said. However, I will make noble Lords aware of China’s non-market trade practices and its history of using economic coercion against CPTPP members, which must be considered in any valuation of its prospective accession.

First, there are aggressive military exercises and drills in the Taiwan Strait that threaten peace and stability in the South China Sea. This could be destabilising to regional trade. In addition, China has ongoing territorial disputes with other CPTPP members, including Japan, Malaysia, Brunei and Vietnam. Its willingness to use coercion against countries that disagree with it has often strained relationships with several CPTPP members. For example, it halted imports of Canadian canola and meat products in response to the arrest of a Huawei executive in Vancouver. Japan was denied access to rare earth materials in 2010 and Australian exports have suffered from Chinese import bans. Furthermore, several CPTPP member states have expressed concerns that China’s subsidies of state-owned firms and arbitrary application laws would be likely to make it hard for the country to join the trade pact.

I wanted to quote two examples, but the noble Lord, Lord Alton, mentioned the Japanese State Minister, so I will leave it at that and bring in another example of our very own British CPTPP trade negotiator, Graham Zebedee. Without commenting specifically on China’s application, if a country’s economic rules are really quite far apart from what CPTPP says, inevitably there is quite a big question about whether they could undertake really massive reforms. These concerns alone seem to provide sound justification for the commissioning of a report and Motion for resolution, as required by this amendment, so that both Houses of Parliament have the opportunity to fully consider the case for and against China’s accession to the trading bloc.

Recent newspaper reports have shown the lengths to which President Xi will go to crack down on companies when strengthening his control of the economy. Business leaders in China are under immense pressure. Last year, more than a dozen top executives from sectors including technology, finance and real estate went missing, faced detention or were accused of corruption practices. China’s national security law, as mentioned by my noble friend Lady Kennedy, is dangerously vague and broad. Virtually anything could be deemed a threat to national security under its provision and it can be applied to anyone on this planet. This law has provided little or no protection to people targeted. Lawyers, scholars, journalists, pastors and NGO workers have all been convicted of national security offences, simply for exercising their freedom of expression and defending human rights. Business leaders may face the same treatment.

China’s current policies and practices are at odds with many of the provisions and requirements of the CPTPP, and it is unlikely to be able to conform to them unless current members agree to significant concessions in the negotiations. This is why concerns about coercion are particularly relevant. Without considerable concessions, it is hard to see how China would qualify for accession. Equally, China is highly unlikely to make the changes to its laws and regulatory systems that would be required to gain the acceptance of CPTPP.

We are obviously sympathetic to the arguments made by the noble Lord, Lord Alton, and others in support of this amendment. However, there is not yet any agreement for any other country to join the partnership. It would be improper to single out any one of the possible new members at this stage, including China. At Second Reading and in Committee, we put on record our strong concern about China’s human rights record, but we believe that our human rights concerns should be universal and that one country should not be singled out. Should the noble Lord, Lord Alton, decide to divide the House on this amendment, we will abstain.

[Lord Johnson of Lainston (Con)]

My Lords, I am grateful for this debate and I have the greatest respect for my noble friend Lord Alton, who, over the years, has demonstrated his significant level of passion on this very important matter, as have many other noble Lords today. I do not want to deviate from the important points I wish to make relating to this CPTPP Bill, so forgive me if I do not necessarily answer all the questions that have been presented in relation to some of the topics raised. However, I would like to say, very importantly, that I clearly personally strongly reject the sanctioning of our parliamentarians. We have made it very clear before that China’s attempts to silence those highlighting human rights violations at home and abroad, including, and specifically, their targeting of MPs and Peers here in the UK, are unwarranted and unacceptable. I begin discussion on this amendment with that very important statement.

I turn to the debate around the CPTPP. As I have made clear throughout the last few stages of this Bill, in joining CPTPP, we are securing our place in a network of countries that are committed to free and rules-based trade, which has the potential to be a global standard setter. CPTPP acts as a gateway to the dynamic and fast-growing Indo-Pacific region and delivers on last year’s integrated review refresh to continue to enhance our relationships in that region. I stress this point, which was raised, I believe, by the noble Lord, Lord Purvis. Expansion of this agreement’s membership will only bring further opportunities for British businesses and consumers.

On potential new accessions, there are currently six economies with applications to join the group: China, Taiwan, Ecuador, Costa Rica, Uruguay and Ukraine. China’s application, alongside the applications of the other five economies, is at the outset of the application process and has certainly not been determined. As noble Lords are already aware, the CPTPP is a group of 11 parties and will become 12 when the UK accedes, and decisions must be taken by consensus of the CPTPP parties. However, it has been agreed within the group that applicant economies must also meet three important criteria: they must meet the high standards of the agreement; they have to have demonstrated a pattern of complying with their trade commitments; and they must command consensus of the CPTPP parties. These are very strong criteria, and I hope that all Peers on all sides of the House hear this very clearly.

As a new member of the CPTPP group, it is right that we work within the principles of the group to achieve a consensus decision, rather than give our own individual narrative on each applicant, such as through the report proposed in this amendment. My kinsman and noble friend Lord Hamilton made a very strong point in support of that. As I indicated previously, the UK is already closely involved in discussions on this topic but will have a formal power to oppose an application only post-ratification. It is therefore crucial that we ratify the agreement and become a party, so that we can work with CPTPP members decisively on each current and future application. I stress that to be drawn in on individual applicants now, ahead of the UK becoming a party to the agreement, could risk significant repercussions to our own ratification, which is why this is such a sensitive and important issue.

The UK becoming a party of the CPTPP is dependent on CPTPP parties individually choosing to ratify the UK’s accession, so it is not in our interests to step outside the group on such a sensitive issue. As I have been clear throughout our debates, we must join first so that we are on the inside judging other applications, not vice versa. It is therefore crucial that the UK ratifies the agreement, which will in turn trigger other ratifications that will allow us to become a party.

I want to be clear that our own accession working group was successful because we are demonstrably a high-standards economy with a strong track record, we made a market access offer of the highest standard, and we garnered the support of every party for our accession. Our accession process has set a strong precedent: the robust experience the UK has been through has reinforced the high standards and proved the bar is not easy to meet.

Comments were raised about state-owned enterprises. I will give noble Lords an anecdote from the negotiating team, as I understand it. We received a great degree of scrutiny over the relationship between Channel 4 and the Government, which few people, I think, would necessarily equate with the concept of a state-owned enterprise. I hope that that demonstrates the sort of inquiry that was behind our own accession.

I also reassure the noble Lord, Lord Alton, and everyone else who participated in this debate, that the accession of new parties after the UK has joined will entail a change in the rights and obligations of existing parties. Any new agreement requiring ratification by the UK would therefore be subject to the terms of the Constitutional Reform and Governance Act 2010. So, if he will allow me, I push back against the noble Lord and his suggestion—I think the noble Lord, Lord Purvis, also suggested it—that there is no track for the CRaG process to be triggered should a new party be able or about to accede to the CPTPP.

[Lord Alton of Liverpool (CB)]

The Minister made an important point, so I will press him on it, as I did during the meeting we had with officials. Can he confirm that the CRaG process does not provide for a vote in either House of Parliament?

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Lord, but, if he will allow me, I will continue with my comments on what this process will involve. As noble Lords are aware, the CRaG process requires that the treaty text and an Explanatory Memorandum be laid before Parliament for 21 sitting days before ratification can take place. Under CRaG, either House can resolve against ratification of a relevant treaty within the 21 sitting days of the treaty being laid before Parliament. The House of Commons can continue, indefinitely, to resolve against ratification, in effect giving the Commons the power to block ratification. I hope that that answers the noble Lord’s question.

These are clearly quite dramatic actions to take on behalf of both Houses in relation to the CRaG process, but the point is that the levers are available. While there is no explicit up/down vote built into the CRaG process, there are multiple ways in which a debate can be brought to the Floor of the House. Should it be the will of the House to have a substantive debate, I am sure that Parliament would ensure that it would occur. I believe that that is referred to as the Grimstone principle.

[Lord Purvis of Tweed (LD)]

My Lords, on a point of clarification, the Minister told us that it would be wrong for a country to comment on another country’s application and gave reasons for that to be the case, but the Government sought in our application support from other countries, and indeed welcomed Japan’s public comments that it would welcome UK accession. Why did we previously seek and welcome support from other countries for our application if the Government are now saying it would be dangerous if we made any comment about China’s potential application?

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Lord, Lord Purvis, but it may surprise him to know that we are not yet fully acceded or party to CPTPP. As soon as we are, it is absolutely right that we make comment on other countries, but only after the process and we have joined. To include an amendment in the Bill now would be completely inappropriate, as I hope I have made clear. I think it would cause significant issues in this overall process.

I return to the point on which it is important to reassure the House. The House is looking for reassurance about whether any country can be sneaked under the wire to join CPTPP, and the clear answer is that it cannot. We have made clear commitments to clarify the process from the Dispatch Box to ensure that we know, as Members of this House and of the other place, that there will be a robust process around any new party joining CPTPP.

[Lord Alton of Liverpool (CB)]

I am very grateful to the Minister, but I am trying to get clarity to see whether we need to divide the House. He has not answered the question I asked. He has said that there could be a process by which there could be a debate on the Floor of the House if the Government permitted it. All that would be welcome, if it was permitted. My question was whether such a Motion would be divisible. Would there be a chance for Members of both Houses to vote? When I asked that question during the course of our meeting, the answer I was given was no.

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for his comment but I feel he is being slightly unfair to me. I am describing the CRaG process, and the Grimstone principle makes clear what will happen if there is a desire for a debate and parliamentary time allows—I am obliged to use those caveats, as your Lordships can imagine, but frankly it would be astonishing if there was not a significant and strong debate over any country joining CPTPP. As I said, and as the noble Lord will know from his experience, the House of Commons can continue indefinitely to resolve against ratification, in effect giving the Commons the power to block ratification. I think that is a very significant and probably quite considerable device that would enable the noble Lord to feel reassured on that point.

The question is whether a new party joining CPTPP would trigger the CRaG process. In our view, it absolutely would, which gives enormous power and scrutiny to both Houses in ensuring that there is a proper debate on that. It is important to note, as I think was mentioned by the noble Lord, Lord Berkeley, that, in the event of the CRaG process being triggered, I would expect the Business and Trade Committee or the International Agreements Committee to request a debate, and that the Government would seek to facilitate this, subject to parliamentary time, as under the Grimstone principle, which we have covered.

I would like to come to a conclusion here. I note the important contribution made by the noble Lord, Lord Kerr, in Committee. He commented that he did not believe that this amendment was “necessary or desirable”, and recognised the importance of unanimity among members. I want to bring us back to that point. We are now part of a group that has attracted interest across the world.

[Baroness Hayman (CB)]

My Lords, I apologise for intervening, particularly when I have not taken part in these debates before, but I want to ask a question before the Minister leaves the issue of the CRaG provisions, which are very important for some of us who have listened to the debate and have an issue. He said clearly just now that the House of Commons could resolve against ratification, but the noble Lord, Lord Alton, was asking if it could have a vote. How would the House of Commons resolve against ratification without voting on the issue? That is what I struggle to understand.

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Baroness for her point. There is no explicit up/down vote built into the CRaG process; we are aware of that. I am talking to a House that has far more experience of the CRaG process than I do, so we know how the process works. There are multiple ways in which a debate can be brought to the Floor of the House. For reassurance, I will go through this point again. The CRaG process requires that a treaty text and an Explanatory Memorandum be laid before Parliament for 21 sitting days before ratification can take place. Under CRaG, either House can resolve against ratification of a relevant treaty within the 21 sitting days of it being laid before Parliament. The House of Commons can continue indefinitely to resolve against ratification, in effect giving the Commons the power to block ratification.

To some extent, this is important, but it may be academic. As I said, the question is whether a new party to CPTPP can be snuck under the wire. We are very clear that this is not possible. The process is automatically triggered. Aside from that, there are also the reports written by the Trade and Agriculture Commission, and there has to be an impact assessment, and there has to be a significant amount of scrutiny and debate, as there is about the CPTPP Bill today. I am very reassured on the principles and mechanics around whether we have in this House the right level of control and security to ensure that we have control over our own destiny in relation to new parties joining a plurilateral treaty, which is of course completely different from the country-to-country FTAs.

[Lord Lansley (Con)]

I am grateful to my noble friend. As a former Leader of the House in the other place and as a member of the International Agreements Committee, I am pretty clear that, under CRaG, the International Agreements Committee here, and potentially the Business and Trade Committee in another place, might make a report to Parliament that could lead to a debate. That debate could be subject to a take-note Motion, but that would be amendable. If it were sought to be amended in the other place to say that a treaty should not be ratified, the Government could not continue to ratify the treaty if such a vote had taken place in the other House to say that it should not. I think that gives the comfort that the noble Baroness, Lady Hayman, is looking for.

[Lord Johnson of Lainston (Con)]

I am very grateful to my noble friend for that comment. He is absolutely right that the Business and Trade Committee and the IAC are able to request a debate, which, as I said, according to the Grimstone principle, we would always seek to facilitate, given parliamentary time.

I should like to come to a conclusion. I ask the noble Lord to withdraw his amendment. I have made extremely clear, I hope, the rigorous standards that CPTPP applies. This is a plurilateral trading group that wants to have the highest standards of trade among them. That is my first key point. The second is that we have a number of safeguards built into our own processes to ensure that, were another country to join CPTPP—it could be any of the countries applying or future countries over the coming years—there will be a proper process, as has been defined in the CRaG process. I would ask the noble Lord, given the complexities and sensitivities that I believe this amendment would present to our ratification process, to withdraw his amendment.

[Lord Alton of Liverpool (CB)]

My Lords, I am very grateful to the Minister and all noble Lords who have taken part in today’s debate. I felt we were quite close to agreement, as I felt we were during the course of the meeting that I had with the Minister. It comes down to the issue of whether or not such a report and Motion, were it to be laid in the House of Commons, as the noble Lord, Lord Lansley, just said in response to my noble friend Lady Hayman, would be divisible or not. It has been made clear that under the CRaG process that is not possible. That is why it was necessary to table this amendment.

As for some of the other arguments put before your Lordships, I entirely agree with the noble Lord, Lord Hamilton of Epsom, who raised the issue of the United States of America. If the USA were to seek to join—it is not even in the queue or the list of countries to which the Minister referred earlier—all of us would be very pleased about that. However, China is in the list referred to, so this is not hypothetical—China is in the list. We are not seeking to have the debate here and now as to whether or not China should accede. That is not what this amendment would do. Chronologically, we are getting ahead of ourselves. The amendment would simply empower this House, should we then be members of the CPTPP, to have the right in both Houses to query such an application on the grounds that I laid out at length, as did the noble Baroness, Lady Kennedy of The Shaws, and the noble Lords, Lord Rooker, Lord Purvis and Lord Leong, in their remarks about the nature of the country that we are dealing with. Is China different from the others? Yes, of course it is manifestly different, not least, as the noble Lord, Lord Rooker, mentioned, because of the products that we buy from Xinjiang. The House of Commons has declared not that there are human rights violations but that there is a genocide—under the 1948 convention on the crime of genocide—taking place in Xinjiang against Uighur Muslims, who are used as slave labour.

The noble Lord, Lord Rooker, is right about that, and we have this trade deficit that the noble Lord, Lord Purvis, regularly refers to, of £40 billion, which makes us very dependent on that country and does not contribute to our resilience. Will the CPTPP help us? Yes, it will, and I am glad that we are joining it. That is why I support the Minister in that objective and support this Bill but, as others have said in the debate, we need to be in a position not only to be able to voice our opinions in both Houses but to vote on those things as well. Otherwise, how will we express our view? Will it be done through telepathy? Will it be done as a result of people getting up and saying, “We don’t agree with this”? If there cannot be a vote, it is impossible. All of us in this House or who have been in the other place know that to be the case.

As for the views that have been expressed about the desirability of China’s membership, my noble friend Lord Berkeley of Knighton said that this is exceptional because it is appalling behaviour that we have never probed enough. We must probe. That is what this amendment seeks to do, to give us rights. Look at the amendment. There are two parts to it. The first simply says:

“Before any decision is made by the Government … on the accession … to the CPTPP under Chapter 30 of the CPTPP, the Secretary of State must publish a report”.


That is all well and good. The Minister has accepted that principle, so why not accept the first part of the amendment? What does the second part say? It says:

“Both Houses of Parliament must be presented with a motion for resolution on the report under subsection (1)”.


This is hardly revolutionary. It seems to me perfectly reasonable. We are being invited to tilt at imaginary windmills. I know that some will be under pressure from their Whips but, as I did during the debate, I commend the remarks of the former Leader of the Conservative Party, who has written to members of his party today to say that the amendment remedies the problem in a proportionate way that goes with the grain of government policy.

I would like to seek the opinion of the House, and I hope that those on the Government Benches in particular will vote for this amendment.

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17:42

Division 1

Ayes: 102

Noes: 212

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All the amendments in this group represent a chance for the Minister to prove that CPTPP accession can be monitored and assessed and that Parliament can have proper oversight of its consequences.

[Lord Johnson of Lainston (Con)]

My Lords, I thank all noble Lords who have participated in this debate, particularly the noble Lord, Lord McNicol, for his engagement, his very good summary of the various amendments and the points that he raised. If the House will indulge me, I will go through the different points quite carefully because there are so many elements. I beg forgiveness if I do not cover every point. My noble friend Lady McIntosh laid down a very great number of requests, which I am happy to answer outside this debate, with the broad provisions to be raised where I can.

Let me stress again how seriously this Government take parliamentary scrutiny of our FTA agenda. With this in mind, a full impact assessment for the UK’s accession to the CPTPP was indeed published at signature in July 2023, which is important to note, alongside the accession protocol text and a draft Explanatory Memorandum. This included assessments of potential economic impact on UK GDP and environmental impacts. This is important. I will refer back to the Section 42 report where relevant to reinforce and, hopefully, reassure Members of this House of the benign impact of CPTPP membership on our environment and border controls.

I want to pick up on a point made by my noble friend Lady McIntosh of Pickering about supporting our farmers and agricultural producers in this country. It is absolutely at the core of this Government’s policy to do that. The reason I am excited about the CPTPP is because of what we will be able to achieve when it comes to promoting our dairy industry: the additional quota access that we will have, for example, for cheese into Canada; the opportunities we will have to sell chocolate into Malaysia, reducing tariffs significantly; the opportunity to sell Scotch whisky into many of the CPTPP countries with lower tariffs.

We can combine these trade agreements with the extraordinarily strong work done by my noble friend Lord Offord of Garvel, who is in his usual place today, with regard to supporting exporters, and with the muscle of the Department for Business and Trade, the work of the agricultural attachés, and all that we are doing to promote exports around the world. This is why we are here. This is a positive and powerful expression of the extraordinary economic reach of the United Kingdom, particularly in its agricultural sector. I understand that there are concerns, and I will cover them, but let us understand why we are here in the first place: to promote our agriculture—an extraordinarily powerful sector in this country—to expand its interests abroad and create more wealth for farmers in the United Kingdom.

I want to touch on the monitoring report, which we will publish after two years, as well as a comprehensive evaluation of the agreement after five years. This will include an assessment as to the environmental impacts. An inclusive and participatory process will be at the heart of the evaluation, providing structured opportunities for a wide range of stakeholders to share their views and provide evidence; that is, basically, a proper assessment and review.

I do not think it would be helpful to be specific on every single checkbox. I am keen to make any review useful. But I would be surprised—that is the language I wish to use—if the evaluation and monitoring reports did not cover information on: trade flows under CPTPP; utilisation of the agreement; ISDS cases, which will be important to many speakers today; an overview of the work of the committees under the agreement to facilitate co-operation and implementation—that is particularly relevant when it comes to labour standards, environmental standards, reduction of the risk of deforestation and many other areas. There will be information on the environment covering many of the issues discussed today and on the impact of the agreement on all parts of the United Kingdom.

This is important. I have been asked to make commitments at the Dispatch Box, and I am very comfortable doing so. It is vital to me as a proponent of free trade that we promote the benefits of this extraordinarily powerful multilateral agreement; I hope that will be shown in the impact assessments and in the reviews after two years and five years. My principal point about the amendments that have been put forward on this Bill is that they are unnecessary because we are doing this anyway.

I turn to deforestation and the issue of palm oil. I am very grateful to my noble friend Lord Goldsmith for his amendment and for the passion that he brings to this vital subject. I believe that he is to be celebrated as someone who has truly brought to bear some significant changes to the legislation of this country following on from the Environment Act and the secondary legislation around the obligations on businesses relating to deforestation, which we will be bringing in; I am reassured by my officials that we are aiming for spring of this year. I want to applaud the work of my noble friend and say how important it is, and how vital for the future of this country and the world, that trade does not lead to a degradation of our environment and natural habitats.

My son came to watch some of this debate. He has now left; I think the third hour was the final straw for an 11 year-old. We are doing this in order that our children will have a world to inherit, as well as a strong economy in the United Kingdom. At no point have we ever suggested that we should separate our obligations to the future of this planet in relation to the importance of free trade. Those who do that are mistaken. In my view, they are inextricably linked. The positives of free trade are so significant and the opportunity for dialogue allows us to solve these problems.

I want to touch on the point about palm oil, which is very powerful. The Trade and Agriculture Commission, for whose feedback I am extremely grateful, has noted that the Malaysian sustainable palm oil certification had become a mandatory condition since January 2020 for the palm oil industry, as has been raised. The new 2022 version prohibits palm oil cultivation on land cleared after December 2019. This is very important. Provided that this new standard is fully implemented by January 2025 and compliance with it is effectively enforced, there is a

“low risk that Malaysian palm oil exported to the UK would come from land that was deforested after December 2019”.

It goes on to say:

“Moreover, the UK may be able to enforce Malaysia’s implementation of the 2022 MPSO standard if failure to do so has an effect on bilateral trade”.


That is extremely relevant.

My noble friend Lord Goldsmith was right to point out that we are signatories to the Glasgow Leaders’ Declaration on Forests and Land Use, which commits both parties—clearly, we are looking at Malaysia in this instance—to halt and, indeed, reverse forest losses by 2030. This is the whole point about the CPTPP. It allows us to align our values with our partner countries, to raise their standards, to enable and facilitate, through the power of free trade and the wealth that it creates, the opportunity to improve their environment. I am grateful to my noble friend for pressing us on these points and I hope that I have answered his questions to his satisfaction.

[Lord Goldsmith of Richmond Park (Con)]

I rise to intervene, but I have been caught by the House with a nut in my mouth, which is terrible timing—if I could have thought of some medical excuse, I would have done so. I thank the Minister very much for his passionate call for harmonisation of trade and nature. He is right; there should be no separation between the two. I was pleased by his commitment that the diligence legislation will come in the spring. I know that it is not entirely in his hands, but I am pleased if that is the assurance that he has had from officials. It is important that it should come through. Without that legislation, the risk remains. It will be like closing the last hole in the bucket. I am grateful for his reassurances. I encourage him to continue to push the other departments responsible, but I thank him very much for his words.

[Lord Johnson of Lainston (Con)]

I thank my noble friend for his comments.

I turn to Amendment 12 on pesticides, which have been raised by the noble Lord, Lord McNicol, and the noble Baroness, Lady Boycott—and I had conversations with the noble Baroness, Lady Willis, as well earlier this week. It is very important for noble Lords on all sides of the House to know about the work that I have personally been putting in to ensure that we have the right and appropriate border checks and security, and that the agreements allow us to ensure that we have control over our borders. I refer to my opening comments a few hours back that this free trade agreement—on implementation day plus one, or accession day, or on becoming a party to the CPTPP—makes no difference at all with regard to our import controls and our ability to control our own destiny. This is very relevant. It is essential, again, to return to the Trade and Agriculture Commission’s report, which says that the

“CPTPP has no effect on the UK’s existing WTO rights to regulate the import of products produced using pesticides that are harmful to UK animals, plants, or the environment”.

It is crucial to remember that. We would never derogate our responsibilities to our consumers. I am very grateful for the points raised by noble Lords today to ensure that they can feel a high degree of comfort that this is simply not the case, and that we have not done so by signing up to this agreement.

I want to touch on some of the comments made about the practicalities of administering our border controls. I took the liberty ahead of this debate of visiting our Thames Gateway port system and was shown the operations there in relation to risk-based assessments. I think that is the right way to manage our borders. It would be impossible to check every single thing coming through. It is very important to reinforce the point that the CPTPP does not grant equivalence on exporting parties. We are able—indeed, it is considered that we have increased our ability—to audit exporting parties’ mechanisms for their own domestic testing to ensure that there is robustness around the testing processes before food is exported to the United Kingdom. We believe that, fundamentally, compliance is high. Our ongoing monitoring programme provides assurance that food on the UK market complies with our rules and is safe to eat.

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[Lord Leong (Lab)]

My Lords, I am speaking to Amendments 7 and 8, and I thank all noble Lords for their contributions.

Intellectual property, particularly copyright, plays a pivotal role in the global trade in creative content, with the UK music industry serving as a prime example of its significance. It is imperative to acknowledge the substantial impact of copyright on fostering innovation and ensuring the efficient operation of markets. Additionally, it is crucial to recognise existing obligations under international copyright treaties and ensure their full and correct implementation by the signatories of the CPTPP. While the fundamental rights encompassing reproduction, broadcasting, communication to the public and distribution are addressed within CPTPP, it is disheartening to note that member states retain the option to opt out of certain obligations. Furthermore, the non-recognition of copyright protection for the utilisation of recorded music in broadcasting and public performance remains a regrettable challenge. To comply with obligations in the CPTPP, as mentioned earlier by the noble Lord, Lord Foster, changes need to be made to UK legislation with regard to rights in performance. We share some of the concerns in the noble Lord’s contribution earlier, and we would welcome an impact assessment to help us understand some of these non-compliance cases.

Will the Minister respond to the following questions, as mentioned earlier by the noble Lord, Lord Foster? Why is the extension of rights in sound recordings and performance to foreign nationals not covered under this consultation? At the same time, can the Minister share with the House when the results of this consultation will be published? Will there be a statement on collective management organisations, given their importance for the income of composers, performers and rights holders? Can the Minister also confirm that UK musicians are able to tour throughout CPTPP member states without any barriers and checks?

[Lord Johnson of Lainston (Con)]

I am extremely grateful to the noble Lord, Lord Foster, for bringing this amendment, for the discussions and dialogue we have had, for the correspondence I have enjoyed with the noble Earl, Lord Clancarty, and for the excellent summation by the noble Lord, Lord Leong—I was about to say “my noble friend” because he is a good friend—who asked some key questions. I am afraid I do not have the answer to the final question that the noble Lord, Lord Leong, asked about the touring rights of artists. I will write to him on that; it is a very good point, and we very much hope that clearly the additional facilities that we have, in terms of temporary business entry for CPTPP countries, may include this. I hope it will and I will confirm this.

Some good points have been raised. In response, first, I will say that the desire to treat performers equitably is the right thing to do. Currently, there are a number of performers who are excluded from receiving the 50% mandatory royalty payment, simply because they come from another country or their work has not been registered in the appropriate fashion. The consultation, which started yesterday and will report on 11 March, is not specifically a consultation on the CPTPP, because we wanted it to be a far wider consultation around the principles of broadcast rights—but clearly it will reflect on the discussion we are having now.

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[Lord Dodds of Duncairn (DUP)]

My Lords, I too thank the noble Baroness, Lady Lawlor, and congratulate her on bringing these matters to the attention of your Lordships’ House and highlighting once again the importance of transparency and lucidity in these issues and their effects on Northern Ireland.

Despite the Prime Minister’s attempts to claim the Windsor Framework as a success for his leadership and the Tory Government, it has not accomplished its main purpose: to restore devolution in Northern Ireland. One reason for that has been not just the lack of substantive change in the Windsor Framework compared with the Northern Ireland protocol—it purports to replace it but in fact there was just a decision of the joint council to rename the Northern Ireland protocol as the Windsor Framework in British law—but the overselling, spin and hyperbole, particularly by the Prime Minister but also others, when it was published. It was sold as a wonderful transformation that would erase the Irish Sea border and so on, but has done nothing of the sort and could never do so.

That lack of transparency, honesty and frankness with people about what the Government could and could not do and what they were putting forward is at the heart of the problem. If their new proposals are published, we will no doubt hear more of this in the coming days and weeks, but this Bill lacks transparency for the reasons set out by the noble Baroness in proposing her amendment.

Paragraph 53 of the Explanatory Notes includes an amazing new concept in legislation passed by this UK Parliament: laws that extend to parts of the United Kingdom but do not apply there. This is bizarre. It is not highlighted or made explicit in the Bill, as the noble Baroness has said, but hidden in the Explanatory Notes. In over 300 areas of law governing the economy of Northern Ireland, we are governed by laws made by a foreign polity—in its interests, not ours—which are not susceptible to amendment and in the development of which we have no role. It is an incredible concept, but it is not new. It was first flagged up in the main body of the withdrawal agreement and the original protocol when the Government told us that Northern Ireland would be a member of the UK customs union but that the EU customs code would actually apply.

This is a concept that is not only bizarre but inherently undemocratic and unsustainable. It a concept that is at the root of the lack of devolution in Northern Ireland. Despite efforts to browbeat, bully and otherwise people in Northern Ireland, UK citizens living there simply want the right to be able to make laws and send representatives either to Stormont or to this place to make the laws that govern them. That is an entirely reasonable position.

The Government really should now learn the lesson that they should be open and transparent about what they have created and what they are about in relation to legislation which is restricted for Northern Ireland. They cannot legislate any more; they have given away the power to a foreign body. Who would ever have thought that we would have reached such a position in this mother of Parliaments following Brexit, which was about bringing back control?

I would like to hear the Minister give a commitment that, in future, these amendments will be taken on board by the Government, and that, for as long as this iniquitous position pertains, legislation being brought forward falling within the remit of Windsor Framework provisions will be explicit and say so in such legislation.

[Lord Johnson of Lainston (Con)]

I am extremely grateful to my noble friends Lady Lawlor and Lord Jackson for Amendments 15 and 16, and to my noble friend Lady Lawlor for the very useful conversations we have had on this matter. Of course, the input from the noble Baroness, Lady Hoey, and the noble Lord, Lord Dodds, is always extremely welcome.

I am very sensitive to this matter. To be honest, I see my role as bringing a powerful trade deal to the whole of the United Kingdom. I am very aware of the points being raised by noble Lords in this House, but, I am afraid, at this stage of the proceedings I must concentrate on the specifics.

To answer the amendments specifically, I assure my noble friends that we will keep this under review once an Act and stakeholders in Northern Ireland will be an important part of that. Regarding the application of EU law in Northern Ireland, I remain of the view that the people of Northern Ireland are best placed to scrutinise the legislation applicable in Northern Ireland once the Northern Ireland Executive is restored. The Windsor Framework will provide them access to the Stormont brake, as noble Lords will well know. This will enable them to block specific laws impacting Northern Ireland. Furthermore, there will be regular opportunities for the people of Northern Ireland to have a say, via the consent vote. These are all points that have been well raised.

The CPTPP takes account of the Windsor Framework, and it is specifically noted that this is the case. Amendment 16 is superfluous, because under the Windsor Framework the EU’s GI schemes continue to apply to Northern Ireland. Our accession to CPTPP does not alter this. The treaty, accession and becoming a party to CPTPP do not change any of the discussions that noble Lords have had previously about Northern Ireland.

Additionally, the text reflects the recommended drafting practice in Bills for amending an assimilated EU regulation where the extent is to the UK, even if application is only to Great Britain. I have worked with my officials to see whether or not it is appropriate to include the phrase, and the reality is that it is not considered appropriate. It is felt that it would cause complications and confusion in the drafting of the Bill.

I hope noble Lords will be assured that I have spent a great deal of time discussing these points internally. I am very comfortable, as Investment Minister—as I am sure my noble friend Lord Offord of Garvel will be in his role as Exports Minister—to continue the work that we have done to promote Northern Ireland, following on from the success of the well-supported Northern Ireland Investment Summit and the work my colleague is doing to ensure that we have a strong export market for first-class Northern Irish produce. This will benefit from our trading relationships through CPTPP.

I look upon this Bill as an enormous positive for trade in Northern Ireland. We will do everything we can at the Department for Business and Trade to make sure that traders, businesspeople, farmers and citizens of Northern Ireland can get the most benefit from it. I recommend that the technical amendments that my noble friend Lady Lawlor seeks to place in the Bill are not pressed, because I do not think they will help in the promotion of CPTPP or in the clarity of the Bill. I am very grateful for this debate at this stage of Report.

[Baroness Lawlor (Con)]

I am very grateful to my noble friend the Minister for his constructive approach to our discussions. Though I confess to being a bit disappointed by some of things I have heard, I am heartened by the support of your Lordships and the contribution to the debate of noble Lords today.

It is very important that we should be transparent in our laws. I welcome the CPTPP—I think it is a wonderful treaty. I would like the fact that we are moving to our own laws on business and the economy to mean that this position applies to Northern Ireland, as part of our jurisdiction and as part of the UK’s entire economic area. However, I understand that that is not the purpose of this Bill. I understand what the Minister has been advised of on the conventions. I am not happy with the conventions but I hope that we can continue to work to do what we can to make sure that Bills in this House are more transparent. On that basis, I beg leave to withdraw the amendment.