Regional Comprehensive Economic Partnership

Debate between Lord Grimstone of Boscobel and Viscount Trenchard

Tuesday 15th December 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I agree with my noble friend that RCEP is a very interesting trade agreement, and it is a notable achievement that it has been concluded. However, we feel that the Trans-Pacific Partnership is a significantly deeper agreement that will set standards globally in a large number of areas; that is our priority.

[Viscount Trenchard (Con)]

My Lords, RCEP is a much shallower and less significant partnership than the CPTPP, as my noble friend just stated. Does he agree that it is hard to see how China could be accepted as a member of the CPTPP, given its provisions on transparency, anti-corruption, state-owned enterprises and labour and environmental protection? Does he also agree that it is very important that UK accession to the CPTPP should be fully agreed during Japan’s presidency, which necessitates a formal request for accession early in the new year?

Continuity Trade Agreements: Parliamentary Scrutiny

Debate between Lord Grimstone of Boscobel and Viscount Trenchard

Wednesday 18th November 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

The noble Lord always speaks on this topic with both expertise and passion. We understand the importance that noble Lords attach to these matters. The Government are studying them actively and carefully.

[Viscount Trenchard (Con)]

My Lords, it is good that the Government have confirmed that we have the bandwidth to conclude the agreement with Canada in short order. Can the Minister confirm that his department is at the same time discussing with Canada that country’s approach to our possible accession to CPTPP, and can he give a date by which the Government intend to notify CPTPP formally of our intention to accede? Can he confirm that there will be an opportunity to debate our accession before it is applied for?

[Lord Grimstone of Boscobel (Con)]

My noble friend recognises, as I do, the importance of reaching an agreement with Canada. Of course, the agreements that we will reach with Canada, those we hope to reach with Australia and New Zealand and the agreement we have reached with Japan are all vital precursors to fulfilling our ambition to accede to the Trans-Pacific Partnership. It is a complex matter; there are 11 countries in that partnership, and it will take time to bring all this to the point where the meal can be served, as opposed to just being cooked. Once we get to that point, Parliament will be fully involved.

Japan Free Trade Agreement

Debate between Lord Grimstone of Boscobel and Viscount Trenchard

Thursday 17th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

Again, I thank the noble Lord for his comments. There is a specific SME chapter in this agreement. It goes further than the previous EU chapter and the whole intent of that chapter is to make it easier for our SMEs to trade with Japan. Further details will be available on that in due course. I have not seen any assessment in relation to the EU of the sort that he mentioned, and I dare say that it has not been thought necessary because of the overwhelming view in this country that we should leave the European Union, which indeed we did on 1 January this year.

[Viscount Trenchard (Con)]

My Lords, I declare my interests as stated in the register. I am delighted that we have agreed a free trade agreement with Japan and strongly welcome the Statement made in another place by my right honourable friend. As the Secretary of State said, the deal will

“unleash a new era of mutually beneficial economic co-operation with our great friend Japan”.

Against this background, does the Minister agree that it is a great disappointment that Hitachi decided yesterday to change the status of the Horizon nuclear power station project at Wylfa and Oldbury from suspended to cancelled? It is of some comfort that Hitachi has said that it will keep the lines of communication open with government and other key stakeholders regarding future options at both our sites. Can my noble friend confirm that the Government have sent an urgent message to the Government of Japan and Hitachi that they want strongly to work together to find a way of reviving this important project in the interests of all stakeholders?

[Lord Grimstone of Boscobel (Con)]

I thank my noble friend for his comments about the agreement and I am well aware of his great expertise in Japan. As the Minister for Investment, of course it is always a matter of great regret for me if a major company decides not to pursue an investment opportunity in the United Kingdom. My noble friend will realise that nuclear has a huge number of manifestations; these are very large decisions that companies will take. We have maintained contact with Hitachi throughout the process. I believe that this was a decision by the Hitachi board. I have no information in what circumstances it might choose to revisit that decision, but I will say that I have huge admiration for Hitachi. I have spoken to Hitachi at the most senior levels on a number of occasions, and we would always welcome any investment from Hitachi into the United Kingdom.

Motor Sector: Export Markets

Debate between Lord Grimstone of Boscobel and Viscount Trenchard

Monday 14th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, the UK-Japan agreement contains standard FTA provisions on subsidies. Motor manufacturers, including those in the north-east, and their representative organisation have strongly welcomed the UK-Japan deal. These subsidy chapters in trade agreements help ensure that fair and open competition exists for both parties by working to limit the effects of trade-distortive industrial subsidies. The subsidies chapter in this UK-Japan FTA rolls over the provisions from the EU-Japan EPA.

[Viscount Trenchard (Con) [V]]

My Lords, can my noble friend the Minister tell the House what opportunities there are for UK motor manufacturers to diversify their supply chains so as to widen their sources of parts production to third countries which may be able to supply equivalent high-quality parts at competitive prices? Can he also say whether such opportunities will be only with countries with which we will have entered into FTAs by 31 December 2020, or whether they also include countries with which we expect to trade on WTO terms?

[Lord Grimstone of Boscobel (Con)]

My Lords, my noble friend makes an excellent point. Of course, these supply chains cannot be turned off and on overnight, but I have no doubt that our FTA programme in general is already helping auto manufacturers in this area, and our new Japan EPA has already demonstrated this utility. Our automotive sector deal supports the industry’s ambition to increase the level of UK content by value in domestically built vehicles to 50% by 2022, so we do not have to see these supply chains only located overseas. It is of course a huge benefit to the United Kingdom if they can be located in our country as well.