Comprehensive and Progressive Trans-Pacific Partnership (IAC Report)

Baroness Lawlor Excerpts

Tuesday 19th March 2024 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, I thank the noble Baroness, Lady Hayter, and the committee for holding the inquiry. I thank the noble and learned Lord, Lord Goldsmith, and the committee for getting this report to us today, and I congratulate them on that. I am grateful for the stimulating analysis that it gives. I will restrict myself today to commenting on its rather tentative approach to the benefits of the CPTPP, particularly in paragraphs 12, 49 and 79. There is a reference to the “limited economic gains” in current projections, in paragraph 12; to the benefits of the services provisions perhaps being “more limited” than suggested, in paragraph 49; and to the CPTPP representing only

“a small part of UK trade as a whole”,

in paragraph 79.

I am also grateful for the even more cautious approach of noble Lords on the Benches opposite towards the potential benefits of the CPTPP; the reservations of the noble Lord, Lord Anderson; and the warnings from the noble Lord, Lord Purvis of Tweed, with whom on many matters I agree about the importance of free trade globally, and I have very much welcomed his interventions on other Bills.

We are in uncharted territory so it does not surprise me that there is no definitive map of post-CPTPP benefits for us, or indeed the other parties, as a result of our joining. Though not normally an optimist, I understand why some of the committee’s witnesses, and indeed members, are more tentative in assessing the benefits of the trade agreement, which has not yet come into force for our country. However, in my view, there are good reasons to be not just mildly optimistic but enthusiastic. I am perhaps more so than my noble friend Lord Lansley, with whose analysis on every point I found myself in agreement. I also agree, from conversations that I have had with other parties, that it is, if not likely, at least possible that, not immediately but in the future, the US will once again become a member of this trading partnership.

As my noble friend Lord Trenchard has mentioned, the CPTPP will represent a growing share of global GDP. Today it accounts for around 12% of global GDP, covering 11 countries. The UK will be the 12th, bringing the expected share of global GDP to 15%. By comparison, the US accounts for around 15%, as does the EU, but their shares are declining, whereas those of this region are growing. The projected proportions by 2050 are estimated at 25% for the CPTPP and 10% for the EU.

There are other reasons beyond the economic to be particularly welcoming to this protocol of accession and CPTPP membership. As other noble Lords have noted, it brings us into the Asia-Pacific region to trade under our own laws. In this trading partnership, we accept base arrangements on conformity assessment, rules of origin, performance rights and GIs. Indeed, I am delighted that the UK’s enabling measure, introduced in this House, is now on Report in the Commons. This is, in the best sense, a post-Brexit trade agreement that has been developed to take advantage of our freedoms. We are no longer bound by the EU legal arrangements and trading system. That is a different sort of law. I disagree with the noble Lord, Lord Anderson, particularly because EU law is not suited to the way in which UK trade and entrepreneurship have developed over centuries.

Our commercial law is an enabling law—a free law. I know that many noble Lords will disagree but let us look at the successes of the City of London from the 17th and 18th centuries onwards. The City overtook Amsterdam as the main trading centre for financial services, and then Paris in the 18th century, to be rivalled only by New York. We must put much of that success down to its ability to attract entrepreneurs and businesspeople setting up in coffee shops, which is where Lloyd’s of London started. They were doing trade across the world and coming to London to have their deals recognised and executed under our law, which was reliable and non-political. It also had the advantage of the reforms initiated by Lord Mansfield, who may be better known to noble Lords as the person who led the abolition of slavery.

There are very good reasons for being delighted that we can trade under our own laws and bring those laws to the rest of the world—indeed, to countries which may want to embrace common-law arrangements for trading. That in itself would be a very good reason to welcome the CPTPP.

Apart from that, if we look at the arrangements for services, the report notes in paragraph 49 that

“the benefits may be more limited than the Government has suggested … in particular the lack of … mutual recognition of professional qualifications”.

Here I welcome paragraph 47, where the evidence of witnesses is summarised as indicating that the CPTPP will bring greater certainty for services and legal protection:

“Witnesses noted that financial, legal and professional services would … benefit from ‘an extra layer of legal protection … a degree of regulatory harmonisation’ and digital … provisions ensuring the flow of data. There were also advantages from the ‘no less favourable treatment’ rule … [which] provides additional certainty and protection”.


My noble friend Lord Trenchard referred to some work by Professor David Collins, who holds the chair of international economic law at City University. Professor Collins has drawn attention to the more comprehensive coverage for digital services and data flows in the CPTPP than in the UK’s existing FTAs that are currently in force with its members. He draws a particular example of the CPTPP’s restrictions on data localisation, which could become more important should countries begin imposing these requirements, but he also points to the most noteworthy benefits being those which relate to the movement of professionals. This arrangement offers greater legal certainty on temporary entry routes for UK businesspeople conducting “fly in, fly out” commercial activities, transfers to branches or subsidiaries, and supplying services as part of contracts or as self- employed entrepreneurs. The schedules of specific commitments in this field are broader than under GATS and cover more categories of personnel.

I conclude by welcoming the report, which has stimulated a very interesting debate in your Lordships’ House. I am very grateful to the noble Baroness, Lady Hayter. I am delighted that we can keep our own laws, trade on our own terms, and promote free markets, competition and the ties that come with trading. Yes, we have bilateral arrangements with most of the existing parties, but I point out to the committee that that is not to say that these cannot be bettered under the new CPTPP. These are baseline rollover FTAs that we have inherited from the EU, but this is the next phase of trade. As noble Lords have noted, this is a dynamic, forward-looking trade treaty and for us to join it and help to shape it in the years to come is not only great for this country but will be great for other developing economies.