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

Lord Purvis of Tweed Excerpts

Committee stage
Thursday 7th December 2023 Grand Committee

Moved by

[Lord Purvis of Tweed]

A1: Clause 2, page 1, line 16, at end insert—
“(1A) The Secretary of State must, within 12 months of the passing of this Act, by regulations made by statutory instrument require conformity assessment bodies to publish reports on the impact of the provisions on the treatment of conformity assessment bodies in Article 8.6 of the CPTPP on the accreditation of goods from CPTPP parties.”Member’s explanatory statement
This amendment would require that UK conformity assessment bodies conduct and publish a report on the impact of the provisions on the treatment of conformity assessment bodies in this Act on the accreditation of goods from CPTPP parties.

[Lord Purvis of Tweed (LD)]

My Lords, it is always a reassuring sight on trade Bills in Committee to have a reunion of many of our colleagues who have participated in debates on previous trade Bills. I apologise to the Minister and others that I missed Second Reading; I was out of the country at the time. However, on that visit I was engaged in many discussions about trade, especially access to the EU market. If the Minister and his officials have been able to see the question that I asked the Foreign Secretary on Tuesday, they will be aware of the issues I raised with regard to that visit. I also apologise to the Committee that I will have to leave prematurely to speak in the debate in the Chamber on the relationship between the UK and Latin America. Trade is a considerable part of that relationship, which I will refer to in the Chamber.

At Second Reading there was much debate about the overall view that there is benefit to the United Kingdom’s trade with regard to CPTPP accession. The extent of that, and how we will be able to then utilise some of the benefits that the Minister has said will accrue to UK business, is probably part of this detailed consideration now, going forward. Amendment A1, as well as the other amendments in my name and that of my noble friend Lord Foster, and some of the others, are probing amendments, to iron out some of the technical aspects of the implementation of our accession and to explore and to hear from the Minister how we would be able to see our businesses take advantage of the opportunities that the Government have said are now open to them.

The first element with regard to standards, assessment of standards and certification, and whether it comes to conformity assessment, is one of these areas that is almost technical in nature but fundamental with regard to our trading relationship. As the Government have said in their own papers, about £10 billion-worth of UK exports to CPTPP economies form some degree of conformity assessment and enter into that market. The fact that there will then be no discrimination for those conformity assessment bodies that would certify goods entering into their markets, as well as those markets’ exports to the UK—there will be equivalent treatment with regard to those—is a positive.

I want to explore just two areas where some element of concern has been raised and ask for further clarification. That primarily regards countries that will be exporting to the UK, which will then have to have their goods assessed for a certificate. We already know in context that the vast majority of that £10 billion—if not all of it—is traded under CE marks already. Only with Brunei and Malaysia will there be some form of difference. We know that, if there is expansion of exports to CPTPP countries, the likelihood is that UK exporters will continue to use CE marking. In fact, as one business said to me, “It is all well and good that the UKCA as well as the conformity assessment will be operating, but we export both to CPTPP countries and we want to have access to the EU market—so we will continue to use the CE markings anyway”. It is likely, as the Minister will know, that countries that operate in exporting to the UK will also take advantage of the agreement that we have made with the European Union to continue to use CE markings anyway.

The issue then will be how we interact with imports to the UK from countries that will not be self-certified and will not use CE markings. My understanding is that, broadly, that will involve medical equipment and machinery, which are important parts of UK trade. As we do not have mutual recognition agreements, a process will have to be carried out so that our conformity assessment bodies can be satisfied that the standards of the equivalent conformity assessment bodies meet our standards for certifying that goods may enter the UK market, especially if the goods constitute medical equipment bought by the NHS. This probing amendment simply asks for there to be a report of the relationship between the UK conformity assessment bodies and those in the CPTPP countries, so that we are operating on the same level of standards.

I found the information from the Welsh Government quite interesting. They raised a slight concern: if there are further trade agreements where we offer equivalence of other certifying bodies but outside a mutual recognition agreement, how will we know that those other conformity assessment bodies will operate to the same standards as ours? I hope the Minister can allay some of that concern.

Fundamentally, we on these Benches wish to see exports grow, and imports of a very high standard. One of the ironies of the CPTPP, as discussed in our previous debates, is that the modest level of growth that is forecast is because we already have well-developed trading relationships with the majority of the members. The combination of the fact that their economies have grown because of their trading relationship with China and that they operate under CE marks to export into the UK means that there is perhaps a limited area of growth. The probing amendment seeks to ensure that, if there are areas of growth, they are equal to the standard that we would want to see. I beg to move.

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[Lord Purvis of Tweed (LD)]

I am grateful to Members who took part in this short debate. I like the Minister, and his enthusiasm for the 0.08% bounty to our economy from this Government’s vision is infectious. But we want businesses to take the opportunities from this.

I have a couple of points that the Minister might want to write to us about. If he will forgive me, the question I neglected to ask in moving the amendment is a concern that still plays slightly on my mind. If the United Kingdom Accreditation Service is now approving those within CPTPP countries, will those accreditation bodies be sufficiently aware of the Windsor agreement and the internal market of the UK? As the Minister knows, there is not just the UK certification badge on goods; if it is to do with the Northern Ireland market, there is also the UKNI certification process. This is complicated—we have debated it long and hard—and it will be a task for our accreditation service to judge whether the bodies within CPTPP countries are sufficiently qualified to understand our market and entering goods into all parts of the UK market, not just GB.

As the noble Lord, Lord Lansley, rightly said, there is currently a workaround for this because of the CE markings. From my point of view, it would be eminently sensible if we just kept that going on in perpetuity. However, the noble Viscount, Lord Trenchard, and the noble Lord, Lord Frost, may have issues with that, because it would mean that we would have to maintain EU standards in perpetuity too—so there would perhaps be consequences to that. In the absence of mutual recognition agreements, we will probably have to keep an eye on this. I am aware that there are some MRAs within and between CPTPP countries, and whether we wish to take the next step forward with those countries is an interesting issue. I am certainly very open-minded about that, because it makes eminent sense, as the noble Lord, Lord Lansley, indicated.

Fundamentally, if we are to approve other bodies, it would be helpful to know, through a report, which bodies have been approved, which have not and why. If they are not able to certify goods properly within the categories that are not self-certifiable under the WTO, there will still be that lingering doubt that goods will be entering into the UK market without the proper process. If there is a reason why our accreditation bodies have not approved them, there is a reason why those goods should not necessarily enter into the UK market.

I hear what the Minister said. Can he give an indication about whether he will write to me on Northern Ireland? He is nodding from a sedentary position, but is he willing to intervene?

[Lord Johnson of Lainston (Con)]

I will do that and, on the other point, clarify where I think there may be a misunderstanding about the conformity assessment bodies and our current imports. Do not forget that we already import a great deal from CPTPP countries without this arrangement in place; this just facilitates the effectiveness of the CABs internationally and vice versa. I hope we can clarify that—I can write to Members to do so.

[Lord Purvis of Tweed (LD)]

I am grateful for that—as we know, there are currently imports under both the WTO approach and the CE markings, so, if this is moving away from that, a little understanding is needed. On Northern Ireland in particular, I am grateful that the Minister said he would write. At the moment, I beg leave to withdraw.

Amendment A1 withdrawn.

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I know this is a probing amendment, but when I tabled it I thought I had better go and find out what it is all about, and I did. The conclusion I have reached is that, with respect, the Government ought to accept the amendment—maybe not at this stage, but certainly on Report. I beg to move.

[Lord Purvis of Tweed (LD)]

My Lords, the Committee is in the debt of the noble Lord, Lord Lansley. He is rare among us in being able to identify the questions, ask them and then come up with a sensible answer, all in one. He did so on this. I am slightly anxious, because he took away the only thing I was going to mention: tied aid and some of the experiences that we have unfortunately had with it—we have banned it in the UK—and the Pergau dam situation with regards to contracts that have been issued. We have memories of how this can go awry.

I record a recent visit I made to Vietnam. I wish to see UK trade with Vietnam grow and am very supportive of any areas in which we can make that happen, but in some CPTPP member countries it is less clear than it is in the UK what the balance is between private and public enterprises and what are the funding mechanisms of bodies that would be open to potentially benefit from UK procurement access. The noble Lord asked valid questions, and I have a degree of sympathy with his conclusion that it would be worth accepting his amendment.

[Lord McNicol of West Kilbride (Lab)]

My Lords, there is very little to add to the detailed probing question—and answers—from the noble Lord, Lord Lansley. With that, I look forward to the Minister’s response.

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Moved by

[Lord Purvis of Tweed]

8A: Clause 4, page 5, line 4, at end insert—
“(13) The Secretary of State must, within 12 months of the passing of this Act, lay a report before Parliament on—(a) protections for UK geographical indicators in territories of each CPTPP party, and(b) accountability of the self-certification on rules of origin.”Member's explanatory statement
This probing amendment would require the Secretary of State to lay a report before parliament on protections for UK geographical indicators and accountability surrounding the self-certification of the rules of origin in each CPTPP country.

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[Lord Purvis of Tweed (LD)]

My Lords, Amendment 8A builds on Amendment 8 to some extent because it also relates to geographical indications, and if there is to be further information from the Government with regard to the interaction with trademarks, I look forward to seeing it. It is linked. As someone who lives in and represented a consistency in Scotland, I know that there are particular aspects with regard to the Scottish and Welsh Governments and geographical indications in those areas. Indeed, it could well be that there are trademarks for certain products in those areas. If we are now in a situation where there is to be wider use of other CPTPP countries’ trademarks and geographical indications that are not to be policed under this treaty, the points that the noble Lord, Lord Lansley, raised are valid. I listened carefully to what the Minister said, but they are valid. I cannot speak on behalf of the Scottish Government or the Welsh Government, nor would I wish to, but the issues that they have raised are important.

Mine is another probing amendment and, indeed, another reporting amendment because it is seeking reports on how businesses are operating in what is potentially a more complex environment in addition to better market opportunities. Ultimately, where the treaty is going to be a success or failure is in whether our businesses understand what opportunities are available to them or whether they decide that there are more complexities in utilising some of the agreement than there will be economic benefits for them. For very small businesses that may be valid, given, as we know, that it is not the tariff aspect of this agreement that is important but the non-tariff aspects. Regular reporting on the protection of UK GIs in this market will therefore be very important. As I mentioned earlier, when it comes to GIs there are no more protections under this agreement, but the interaction with how we will be able to export very important UK GI goods will be vital.

The Minister will be well aware that very many businesses manufacturing products that benefit from an EU-protected UK GI are small businesses. Melton Mowbray is one example, as was mentioned, but there is a whole series. They are small businesses—some are micro-businesses—and therefore the complexities involved will require government help. Guidance and support will be vital for them. We know, because we debated it at length on the Australia agreement, that the protection of UK GIs in Australia, as it will be in many areas, is dependent on the European Union policing them, because that is a consequence of the UK agreement with the European Union. Our ability to police the protection of our GIs now resides in Brussels. That may or may not be desirable, depending on your particular persuasion, but it is a fact. The relationship and interaction with the European Union on this will therefore also be very important. GI protection for UK accession to the CPTPP is reliant on the European Union. I would be grateful if the Minister could say what discussions he has had with his counterpart, the European Trade Commissioner, about how the EU is minded about doing us the wee favour of protecting our goods in the CPTPP agreement. Is there a written understanding when it comes to UK accession to CPTPP that the Commission will police our goods for us because that is the situation in Australia?

Given that the vast majority of the CPTPP countries have trade agreements with the European Union, it will police both: it will police its champagne and our pork pies. I wonder which it will give preference to? Of course, they match, and they should have equal status for protections, but I would be grateful to hear what response the Minister has had to his pleas that the European Union will protect us.

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[Lord Johnson of Lainston (Con)]

I absolutely make myself available to have discussions outside this Committee on all points. I refer the noble Lord, Lord Alton, to my original statement that collaboration around this is very high.

I will try to make a philosophical point which I think is very important: this is a free trade agreement. It is concerned principally with tariffs, smooth movement of trade and other principles. It is very important to separate that from the important standards that we hold ourselves to in this country. It is right that we have a number of very important pieces of legislation that drive standards in supply chains. Any of us who have been involved in business know that we have to ascertain our supply chains. In other areas, particularly in relation to the environment, I believe that supply chains are covered very well by our legal processes in terms of child slavery and other abhorrent activities. That is well understood and the supply chain obligations are very clearly understood. In the environment, it is still more nuanced. It will always be a complex area, because other geographies clearly have different environmental advantages and disadvantages compared with us. We are still working on that, but it is for a separate track of legislation. I do not think that it is right to confuse the principles of the legislation around free trade agreements with legislation around our own supply chain obligations.

When given the decision, should one be in a free trade area, able to bring to bear one’s own values to make necessary changes, or not be, because you do not believe that the participant parties are aligned with your values? I would prefer always to pick the former.

Although I would not necessarily suggest that there was a significant gulf between us, Australia and New Zealand when we negotiated the Australia and New Zealand FTAs, there is absolutely no doubt in my mind that the engagement with the UK on environmental and animal welfare issues resulted in significant changes in the Australian and New Zealand domestic animal welfare and environment policies. I have no specific evidence of that, but I know full well that there were strong levels of conversation around that and, at the same time, Australia and New Zealand made significant changes in our direction in both areas. Either that was a great coincidence or it was partially supported by the fact that we were collaborating with them more effectively. This is what the CPTPP will allow us to do.

I refer back to the TAC report, which made clear our own standards for pesticides, which were raised by the noble Lord, Lord McNicol. That does not change: nothing changes in our standards the day after CPTPP comes into force—that is for our own sovereignty to control.

I ask that this amendment is withdrawn, but clearly I am here to discuss in detail how we can reassure noble Lords that the principles around the need to report on the effectiveness and concomitant effects of the FTA are properly established, as well as other key points around derogation and key values issues, which should be properly controlled and contained.

[Lord Purvis of Tweed (LD)]

I am grateful for the Minister’s helpful and interesting reply. My understanding is that Ministers are always advised to read Hansard: that is when they find out, the next day, what they should have said at the Dispatch Box and what officials have made sure is in print. The noble Lord, Lord McNicol, is absolutely right: nothing in the Companion required noble Lords to say that they met the President of Korea, but I guess it sounds good.

I thank all noble Lords who took part. At the start of his contribution, the Minister said that he did not see the value of the statutory reporting in many respects. I noted that he subsequently quoted from a statutory report and said that there was great value in it. Given that the TAC was the result of amendments that Parliament asked of the Government, I will take the second part of what he said as the basis of the ministerial response—there is great value in that statutory report. But, as my noble friend Lord Foster said at Second Reading at col. 700, it would have been helpful to have had that report in advance of the start of the Second Reading. Nevertheless, we will study that report now that it has been released.

The noble Viscount, Lord Trenchard, was right to make reference to the growing economies within this area. However, if we had the data on the growth of the CPTPP economies and stripped out their reliance on the growth of the Chinese economy, I wonder what those growth figures would look like vis-à-vis those in Europe. I suspect that they would be rather similar. It is hard to disaggregate the growth of the Asia-Pacific economy from that of the Chinese economy. I note that UK imports from China, for example, have grown to over £40 billion, now that we have a trade deficit in goods with China. The impact of China’s growth is disproportionate with regard to them all.

[Viscount Trenchard (Con)]

China is not a member of the CPTPP, so I absolutely do not understand the relevance of what the noble Lord said. My point was that, for the CPTPP 11—soon to be 12—the economic growth rate is twice that of the European Union.

[Lord Purvis of Tweed (LD)]

I am fully aware that China is not a member—I do not think there is any doubt about that—but surely the noble Viscount is aware that the growth levels of the Vietnam economy have been entirely, or at least very largely, dependent on the growth of the Chinese economy. Given that New Zealand has had a free trade agreement with China for more than 20 years, the growth of the Chinese economy has been a major, if not the predominant, factor in the growth of the Asia-Pacific economy, which—it is regularly cited—is the fastest-growing economy and one we need to be part of. It is the fastest growing because it has been dependent on the growth of the Chinese economy—but that is an overall debate.

On the CPTPP members, the noble Lord, Lord Lansley, is absolutely right: with some of them, such as Australia, we are still awaiting the police of the GIs—the European Union, for us—to make an agreement with it. We are still in that situation. My noble friend Lord Foster raised that where businesses have an opportunity to choose between two systems, for some businesses that is a burden because of the complexities associated with that and therefore clarity on advice about the preferential way of utilising this is important. The Minister responded very fairly.

I agree with the thrust of what the noble Lord, Lord Davies, said. I know that he will be in the Chamber for the Rwanda Statement, but in response to the point made by the noble Lord, Lord Kerr, with regard to my drafting, there are even greater powers than the Minister or others in this Committee. They are the clerks in the Public Bill Office who tell us what is or is not in scope of the Bill, so my drafting was in order to satisfy the greatest authority, the Public Bill Office, in order to put down an amendment so we could discuss it. However, I am very happy to explore further options. This issue, connected with those raised by the noble Lord, Lord Alton, that we will discuss in future, is significant.

[Lord Alton of Liverpool (CB)]

I am very grateful to the noble Lord, Lord Purvis. Given what the Minister said a few moments ago about Malaysia, I draw his attention to a report in today’s Daily Telegraph about Shimano, which I think is the biggest bicycle parts company in the world, which operates out of Japan. It is selling through a supplier in Malaysia products that have been made by slave labour in Nepal. That is a good illustration of the kind of problems that we will run into. Although that is not necessarily part of the treaty, it is part of our obligations under British law to ensure that such things do not enter our supply chain.

[Lord Purvis of Tweed (LD)]

I am grateful to my friend the noble Lord, Lord Alton, because he and I often think alike in many of these areas. He slightly pre-empted me because I was specifically mentioning Malaysia to close and to stress why it is important. With the greatest of respect to the Minister, I think it is valid to know on the record what the interest in Malaysia is since we will be debating it going forward. In 2021, in the Chamber I raised the fact that the UK had a £316 million contract with a Malaysian firm, Supermax, to supply PPE gloves through NHS Supply Chain. That company’s exports to the United States were impounded by the United States because of contraventions of ILO standards and slave labour concerns. This has still not been resolved. I raised that, and I was grateful to the Minister’s predecessor, the noble Lord, Lord Grimstone, who initiated a review within the department. As I understand it, this is still being litigated. I do not expect the Minister to have an answer today, but I would be grateful if he would write to me because this is pertinent to the next stage in Committee with regard to multi-million-pound contracts through supply chains. I know that NHS Supply Chain is a distinct part of the NHS. With regard to this Malaysian firm, the United States activated powers which we did not. Now, with regard to procurement, as the noble Lord, Lord Lansley, indicated, supply chains and the standards that we seek, there are genuine, valid concerns. I remind the Committee that the contract was worth £316 million. The United States had the equivalent impounded.

I know that we will come back to some of these general issues. I am grateful to noble Lords who have taken part and grateful to the Minister, who as always is open and accessible to discuss these aspects. I beg leave to withdraw the amendment.

Amendment 8A withdrawn.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Lord Purvis of Tweed Excerpts

Thursday 20th July 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

Noble Lords, it is a momentous occasion to be able to talk in this House about the signing of the CPTPP. This is a tongue twister, but we are all going to have to get our mouths around it because we are going to hear a lot more about this in the future. This is a massive region of 11 countries in the Indo-Pacific, which account, together with the UK, for 15% of world trade GDP.

We know that this trade deal originally had the US in it, and Donald Trump took the US out. That created a gap. For those of us who play the game of rugby football, you always go for the gap. The UK has taken that gap and got into this deal, which, to come to the specifics of the question, will in no way impact on our food standards and regulatory standards.

On the matter of China, China is not a member of this group. China has expressed some interest, but there are other interested countries such as Costa Rica, Ecuador, Uruguay, the Philippines and Korea that are in line before China. So, as far as we are concerned, at the moment we are not commenting on China’s accession. China has expressed an interest but, on the exact question, there will be no reduction of food standards and general regulation through this deal.

[Lord Purvis of Tweed (LD)]

My Lords, I very warmly welcome the 0.08% estimated growth over 15 years of this momentous agreement. But, with regard to China, it is more than simply expressing an interest; it is seeking to commence the accession process. If that happens, we will be bound to share data with China under part of the CPTPP common data provisions. That will mean that we will no longer have data adequacy with the European Union. We currently have a trade deficit in goods with China of £43 billion. Would it not make more sense to have eased trade with Europe rather than more trade deficit with China?

[Lord Offord of Garvel (Con)]

Some 45% of our trade in the world is with the EU. In fact, if you take Europe as now being 34 countries—if you take the likes of Norway, Switzerland, Israel et cetera—it is pushing 50% of our trade, whereas China is £100 billion, which is more like 10%. So we are very clear that our primary market is with Europe and the first deal we did on Brexit was a free trade agreement with Europe. So we have free trade with Europe, as we stand, and that will continue to be our dominant market. This is the bonus that we get from going to international markets that we could not get access to before. If we were inside the EU, we could not have signed this deal, just as we could not have signed a deal with India. When you have 28 people wanting 28 different things, it is difficult to negotiate, is it not? Here we have a deal with the CPTPP which we would not have access to otherwise and I think we should celebrate.

As to the number on GDP, we are talking about a £2 billion impact on trade, which is a big, big number. It will go all around the UK, not just to London and the south-east. I can give you a breakdown of the numbers in every region, if the noble Lord needs it. The fact is that it will be a dynamic deal. This is going to be the fastest-growing consumer sector in the world. It is going to have a big increase in GDP. As the Secretary of State said at the press conference, it is up to us now. It is up to the UK now to maximise the benefits of this deal and I am very convinced that we will get great trading opportunities out of it.

CPTPP: Conclusion of Negotiations

Lord Purvis of Tweed Excerpts

Wednesday 19th April 2023 Lords Chamber

[Baroness Chapman of Darlington (Lab)]

My Lords, the Government’s record on trade is quite dreadful. UK exports are projected to fall by 6.6% this year, which is over £51 billion lost to the UK economy according to the OBR. The failure to deliver the India trade deal or the US trade deal promised by the end of last year is a significant issue, so it is important to scrutinise what exactly Ministers have agreed to in these talks. The Government have a history of lauding trade deals one minute and then criticising them the next.

As we all know, CPTPP is made up of 11 countries—Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam—but we also know that other countries, including China, have applied to join or expressed an interest in doing so. We are all aware of the developing situation in relation to Taiwan. It is inconceivable that there would not be economic consequences should tensions continue to escalate in the way some fear they might. Can the Minister let the House know, as far as he is able today, whether our involvement with CPTPP might affect the UK’s response? What is the UK’s position on the application of China to be part of CPTPP?

The UK will be the first new member since the bloc was established in 2018, and the first European member. The Government say that CPTPP membership brings a range of benefits, including lowering trade barriers to a dynamic region. Accession also forms part of the Government’s Indo-Pacific tilt set out in the integrated review. However, the UK already has bilateral agreements with nine of the 11 CPTPP members.

Over the year to September 2022, the UK exported £60.6 billion of goods and services to the CPTPP countries, which is 7.8% of the UK total, and imported £50.2 billion, or 5.9%, so the economic benefits appear at this stage to be relatively small. In fact, the Government’s own assessment tells us that the long-run increase in GDP will be 0.08%. Can the Minister confirm that the figure of 0.08% is correct?

As part of the Spring Budget, the OBR forecast that, in 2023, UK exports are set to fall by 6.6%. That is a hit of over £51 billion to the UK economy. Can the Minister explain why this has happened? The Prime Minister wants us all to be better at maths, so can the Minister lead by example and tell us what proportion of that loss he thinks this deal is going to replace?

Other countries joining CPTPP have negotiated safeguards and put in place support for their domestic producers. For example, New Zealand and Australia have put side letters in place to opt out of the dispute mechanism. Is the UK going to do this and if not, why not?

There needs to be as close to a level playing field as possible, especially on issues such as workers’ rights but also environmental protections, safety and animal welfare. How can Ministers assure us that the highest possible standards are agreed and implemented, so that UK workers are operating on a fair playing field and workers internationally do not become exploited? On the environment, have conditions been put in place to address concerns around the import of palm oil, which has been linked to deforestation?

What consultation has been undertaken with the devolved Governments to assess their views on negotiating outcomes and how will they be involved in the ratification process? Importantly, what detailed assurances can the Government provide that the CPTPP will not undermine the Windsor Framework, given the closeness of standards regimes and the green lane system?

What safeguards have been secured for UK farmers and what support will the Government offer to our agricultural sector on exports to CPTPP countries, particularly given the strong feeling there is that Ministers sold out our farmers to get the Australia deal over the line? The RSPCA has made it clear that the CPTPP has no explicit language on animal welfare, so what safeguards have the Government put in place to ensure that animal welfare is maintained for products imported to the UK?

Can the Minister also update the House on the progress of negotiations with India and the United States? Is it correct that negotiations with those countries will not even start until 2025?

The reason I have asked a lot of questions—I accept that—is that the problem here is detail. It is very important but very thin on the ground at the moment, and I am afraid that the Government do not have the best track record in supporting UK producers on those issues. There absolutely is an opportunity here, but there is risk too. We do not want to find ourselves again in a position where the Government make an agreement without fully understanding the consequences.

[Lord Purvis of Tweed (LD)]

My Lords, I thank the Minister for being approachable and proactive in communicating. I also thank his office for its openness and willingness to engage. I am sure that will continue, so if he could indicate what the timeframe will be with regard to the legal text being ready, and when we expect the treaty ratification process to commence, that would be enormously helpful.

These Benches believe passionately in free, fair, open and sustainable trade, so we welcome any reductions in tariffs for our exporters and moves towards reducing non-tariff barriers in new markets. As the International Agreements Committee and others have remarked, this will be the first agreement the UK enters into in which we will knowingly increase net emissions. What is the update from the Government with regard to the climate component of this accession? The Government do not provide much clear information with regard to emissions.

As the noble Baroness said, the UK already has trade agreements in place with most CPTPP members. This agreement absorbs the new ones that the UK has signed with Japan, Australia and New Zealand. Are there carve- outs in this agreement that we will be able to understand clearly when we receive the text?

With regard to the omissions in the Australia and New Zealand agreements on protecting geographical indicated foods, for those agreements, UK GI foods—some of the most cherished brands and produce in this country—will be protected only if Australia and New Zealand sign an EU trade agreement so we can protect them through the TCA. What is the protection for UK geographical indicated produce?

The Trade Secretary was getting into a bit of a tangle over the issue of modelling and the figures on Monday, so it is worth reminding the House that the Government’s scoping paper stated that the net benefit to the UK over 15 years of accession would be a mere £120 million per year to the UK economy. The trade writer for the FT said that, in decibel terms, this was

“a cat sneezing three rooms away”.

The Trade Secretary then asked us not to use the Government’s own paper regarding the 0.08% potential benefit. So I suspect we will have to await a full impact assessment. When can we expect to see that?

The Trade Secretary said that the CPTPP accession was “the future of … trade”. She correctly highlighted that this was the “fastest-growing” trade area but did not say that it was because of those countries’ trade with China. She also did not say that the pace of EU trade with those countries is now forecast to outpace what the Government’s modelling has said that the UK will benefit from in accession. The Trade Secretary said that this was the future of trade and that the people had voted for this, not the past—in some way indicating that there was a choice to be made; we trade either with Asia or with Europe. That is obviously nonsense.

The Government’s approach paper was pretty clear. It said that if we had maintained EU membership and the existing trajectory, UK trade with CPTPP members was already set to increase by 65% by 2030, or £37 billion. This accession is only adding 0.08%. I would be grateful if the Minister could say why it is opening up so little in additional markets.

The accession was also spun as a tilt away from China. However, we know that most of the countries within that agreement are also part of an agreement with China in the Regional Comprehensive Economic Partnership, which represents 30% of global GDP. Negotiations are in the final stages between China, Japan and South Korea for an FTA. What is the Government’s position on whether they believe that China should accede to CPTPP?

Finally, there is an omission from all the Government’s data. In the scoping paper and the Statement, there is no mention of trade diversion. There has been no consultation with developing countries on what the likely impact of market access will be. There is one line on page 52 of the Government’s scoping paper that says:

“While the impact of the UK’s accession to CPTPP on GDP in developing countries is likely to be negligible, developing countries with a high share of trade with the UK and CPTPP member countries are most likely to be impacted”.


We already know that some exporters from Africa are complaining that they were not consulted and that their produce is going to be harmed by this accession, so perhaps the Government could provide information on trade diversion.

As with the India agreement, I have a considerable fear that some, if not most, of the benefits that we are likely to see will be trade diversion from developing countries with which we are seeking to encourage trade. I hope that the Minister can provide detailed information with regard to those questions.

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

I thank the noble Lord, Lord Purvis, and the noble Baroness, Lady Chapman, for their questions and comments. I am only sad that I have to inject an element of enthusiasm into this Chamber for what is one of the greatest trade deals this country has struck in many decades, probably in my short lifetime. We have joined a £9 trillion group and there is no common army, there is no flag, there is no currency; there is only a common group of nations, liberal-minded in their economic outlook, which want to work together for mutual recognition, not for harmonisation. I will quote, if I may, William Seward—Abraham Lincoln’s Secretary of State, if noble Lords are not sure who he was—who said that

“the Pacific Ocean, its shores, its islands, and the vast regions beyond, will become the chief theatre of events in the World’s great Hereafter”.

I am extremely proud of the work that the Secretary of State and our department have done. I thank her, our chief negotiator Crawford Falconer and Graham Zebedee for the incredible number of hours they put in, and the previous Secretaries of State, who embarked upon this post-Brexit vision of Britain, to turn what could be called “Ocean’s 11” into “Ocean’s 12” with our accession, I hope, over the coming year.

I also thank the businesses that have participated, which will see the benefits of being able to export their goods more easily to these key countries, where the rules of origin benefits will be significant in terms of managing supply chains; where business mobility will be written into law; and where there will be protections for our industries and the agricultural community in this country, which will allow them access to markets that previously they were unable to access. These now include our free trade opportunities with Malaysia, where we did not have a comprehensive trade deal. We have the opportunity over the coming year or so as accession takes place to have a full trade deal with this nation that has a GDP of just under $400 billion. Vietnam, one of the countries of the CPTPP, is forecast to grow faster than any other major country on earth, I read today, between now and 2050. I was grateful to the noble Lord, Lord Purvis, for his statistical analysis.

However, this is not just a trade deal of statistics; it is about our focus on the growing economies of the Indo-Pacific region. It is right that this nation, in trying to ensure that we have close and good relationships with the European Union in our tariff-free and quota-free access to that valuable and essential continent of our neighbours, is also exposed to the future growth economies, the populations and the services that we can sell to them over the coming decades. So I congratulate the businesses that participated in this process to drive this forward, and our department that achieved it.

Finally, I thank the countries which supported us. When my Secretary of State gave her Statement to the other place a few days ago, she was watched and admired by the ambassadors, I believe, of Vietnam and Japan—just two of the countries which were so important in propelling us into this important trade group, which will stand as a beacon for liberalisation, free trade and economic growth for decades to come. I am surprised that everyone I have spoken to has congratulated me—not that I did anything, by the way, to accede us to CPTPP apart from providing moral enthusiasm and my work generally as an atom of the department—on Britain being able to join the accession process for CPTPP.

I went round Asia last week—I went to Japan, Australia and Singapore—and we were cheered and had standing ovations solely for the fact that we had recently acceded to the process of joining CPTPP. So I am amazed and saddened that we do not have more delight at this one act. Yes, there are important areas for inquiry and I hope that noble Lords have seen in my work over the Australia and New Zealand trade Bill the seriousness with which I have engaged personally with Members on all sides of the House in making sure that we do scrutinise these agreements. If we do not all get behind them, they will not have the effect of galvanising our exporters to action and making the most of the opportunities presented by these treaties.

I am extremely keen to engage where I can, at every opportunity and with all Members of this House, as we progress towards signature and accession to CPTPP. But I would like a little more enthusiasm and celebration, if possible, for something that, frankly, all Peers have been calling for and we are now starting to deliver—it will genuinely change lives.

I am happy to go through some of the core points raised by the noble Baroness, Lady Chapman, and the noble Lord, Lord Purvis. I am sure they will understand that I will have to come back to them on some of their questions—I think they would want me to be specific and accurate—but they certainly set the tone with some of their points. The important point is that, in this free trade agreement—rather than the customs union that was the old European Union—we do not abrogate any of our standards for imports: standards on pesticides and food remain exactly the same. We control our standards, and it is important for everyone in this House and the country to hear that clearly. Nothing has changed in what we allow to be sold in our shops; that is the whole point of a trade deal, rather than a customs union.

On many occasions I have been asked about countries acceding to the CPTPP in the future, but I will not be drawn on that for the simple reason that we have not even joined yet, so it would be totally inappropriate for me to comment on that. I echo the Secretary of State’s statement on that point earlier this week. But this is a liberal, free markets trading group, and we hope it will act as a beacon for all countries around the world to reform their markets and economies to become liberal, free and open to world trade. I hope that all nations will look at it as a beacon of hope.

Questions about our treaty possibilities with the United States were raised. Again, this came up a few days ago in the other place. We are keen to do a trade deal with the United States—and with most countries in the world—because it is a huge part of the global economy, although it is not in a position to negotiate with us at the moment. So what have we done? That is a rhetorical question—we have signed specific memorandums of understanding with states, and this will enable us to have better links and closer co-operation, particularly for the all-important and growing services, and professional qualification recognition aspects of those services. I believe that my honourable friend, Minister Huddleston, was in Oklahoma this week, signing such an agreement—forgive me if I have got the state wrong, but he is certainly in the US at the moment, signing further MoUs.

It is important to turn to the comments by the noble Lord, Lord Purvis. He likened the economic benefit of this deal to a sneezing cat three rooms away—

[Lord Purvis of Tweed (LD)]

The FT did.

Trade (Australia and New Zealand) Bill

Lord Purvis of Tweed Excerpts

Report stage
Tuesday 14th March 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly to offer general support for the direction of all the amendments in this group. I am sure that the Front-Benchers will have more to say. In response to the noble Lord, Lord Lansley, I note that the commitment from the Minister to offer regular impact assessments is not the same as something written into the Bill. The Procurement Bill contains increasing promises from the Government for more local and national public procurement for schools, hospitals, prisons, et cetera. I am not quite sure of the timing or how this interacts with the nature of the procurement in this Bill.

I want to pick up on a point from the noble Baroness, Lady Bakewell of Hardington Mandeville. She noted concerns about ongoing negotiations with Canada and Mexico. These amendments can also be taken as a broader expression of concern about the potential impact of opening up our markets to agricultural products from around the world, produced under far worse environmental, animal welfare and public health conditions than the standards we have been used to under EU membership and those of our own producers.

For anyone who has not seen it, there is a very interesting report on Politico reflecting on discussion around the potential CPTPP membership in which Canada is pushing with Mexico to have the same market access for agriculture as Australia and New Zealand have won under their deals with the UK. If we look at Mexico’s production conditions, we see that its beef imports have very high carbon emissions. Canada uses farrowing crates, tail docking, teeth trimming and lots of other practices that we would regard as wholly unacceptable in the pigmeat industry.

These amendments are to be taken together as a real expression of concern about what kind of food we will potentially see on our plates and the environmental impact of the food our farmers will be producing.

[Lord Purvis of Tweed (LD)]

My Lords, I apologise to the House and to the noble Lord, Lord Lennie, for missing the first minute of his contribution.

I agree with the noble Baroness, Lady Bennett, about why at this stage of the Bill we are seeking to raise some of the concerns that have already been expressed. It is not just we who have been raising issues about these agreements in particular. I can quote from a website that says we know that farmers are concerned by some of the trade deals we have struck, including with Australia:

“A Rishi Sunak-led Government will make farmers a priority in all future trade deals.”


That website is Ready for Rishi. As part of that commitment, he said that as Prime Minister he would introduce a new “Buy Local” campaign. He would also:

“Introduce a new target for public sector organisations to buy 50% of their food locally, to back British farmers and improve sustainability.”


The noble Baroness, Lady McIntosh of Pickering, raised this in Committee. In discussing procurement, we are justified in trying to find out how that target from the new Prime Minister of 50% of public sector procurement through buying local will be implemented, especially since that same Prime Minister has recognised the concerns about these agreements we are debating.

It is also worth noting that there have been significant concerns among not only farmers in England but those in Scotland, to which I will refer, and Wales. Today’s Order Paper notes that Welsh legislative consent has been withheld. We should take seriously why the Welsh Government and Parliament have not been able to provide legislative consent in these areas. We also know the concerns of the Scottish Government.

Before I progress, I thank the Minister for his proactive engagement. I support his commitment to seeking opportunities to promote British exporters. The level of engagement he has shown to the Front Benches and others is to his credit and that of his office. I appreciate his willingness and engagement. He and others, such as the noble Lord, Lord Lansley, are keen to see this agreement put in place. From these Benches, I wish to see agreements where there are opportunities for UK exports, especially in rural procurement. As my noble friend Lady Bakewell has indicated, we will not be shy in raising concerns about what the impacts may be, especially where the Government say when it suits them that these either are gateway agreements for CPTPP or will set precedents. I agree with the noble Lord, Lord Lennie, about this. It is right that we test the impact on our domestic industries.

--- Later in debate ---

[Lord Lansley (Con)]

Going back for a moment to the point the noble Lord made earlier about the sale of food to public bodies and these procurement chapters, does he recognise that the purchase of food locally by schools, hospitals and the like will almost certainly not be, as I judge it, within the definition of covered procurement and not above the threshold; and, therefore, the procurement chapters, in so far as they extend procurement opportunities to Australia and New Zealand providers under this Bill—and under the Procurement Bill—really would not be relevant to that local provision of food?

[Lord Purvis of Tweed (LD)]

I am grateful to the noble Lord; he knows I respect his work on this area very much. I would like the Minister to confirm that that will be the case, because I am not convinced. I see the noble Baroness, Lady Neville-Rolfe, in her place. She was kind enough to have a meeting with me about it. I am not yet convinced, because of the elements within the Procurement Bill which will require there to be no discrimination for any of the treaty countries for public procurement in this country, that what he is arguing for, which is effectively a carve-out, will in fact be the case. My understanding is that under the Procurement Bill, we are unable to discriminate against any of the treaty suppliers. I am not sure that a public body in this country would be able to discriminate. I hope the Minister will be able to clarify that point.

The reason this is relevant and why I quoted the then candidate for leader of the Conservative Party’s commitment to 50% of public procurement in this country being local is that I do not know how that squares with what will be the legal requirement under the Procurement Bill that we are then unable to discriminate against Australian and New Zealand produce which will enter the market. I do not know how that squares.

I am simply asking the questions, because we have not had more meat on the bone, if that is not too inappropriate an analogy, about what has been published as a government commitment and is in the Procurement Bill. If the noble Lord has any other answers, I am happy for him to intervene on me. I do not know how he knows how this might be squared. I do not at this moment. That is why part of our agriculture sector is also questioning how these two commitments will come together. The different sequencing of this Bill and the Procurement Bill is relevant. Because it also sets the precedent for Canada and Mexico, with new produce coming in, and if these are gateway agreements for CPTPP, we are looking at potential competition with all CPTPP members for public procurement of produce. If you are a public body in the UK looking at cost-effective procurement of food for schools or hospitals and you are unable under the Procurement Bill to discriminate against Australian or New Zealand produce or that from any CPTPP country and state that there is local producing, similarly, I do not know that it is matched.

I hope that, at this late stage, the Minister can offer some reassurance. I hope that he is able to explain how these commitments to 50% of procurement can be matched, as well as give further reassurances, specifically on the impact on tenant farmers and biodiversity. There are genuine concerns here, I do not think they will go away and we need to offer that reassurance to these sectors, which are so vital to our rural economy.

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

My Lords, I draw Members’ attention to my entry in the register of interests, although I do not believe there is any conflict relating to our debate today. I am also grateful for the apology of the noble Lord, Lord Purvis, for being slightly late. I was fractionally late for Questions this afternoon, and was called on to resign, among other things. I hope the House does not mind that I have not taken that too seriously.

I am delighted to be speaking on Report of this very important Bill. If it is appropriate to make a personal comment, I have deeply appreciated the high level of engagement with the Opposition Front Benches, my noble friends and noble Lords across the House. I do not want to put words into people’s mouths, but I think we agree that it is a fundamentally good thing to do a trade deal with Australia and New Zealand. I was watching the news yesterday and seeing the extraordinary advances we have made in collaboration, particularly with Australia, in our defence. It will benefit the economy in many areas in the north-west of this country, among other parts of this nation. The sheer sincerity of the brotherhood between our nations should be expressed very clearly. I very much hope that if the high commissioner of either Australia or New Zealand—I am grateful to the noble Lord, Lord Lennie, for engaging with Phil Goff recently—is watching this debate, they know that the fundamental spirit of the House is for a successful conclusion of this process and a good and successful trade deal with Australia and New Zealand.

At the same time, I am very aware of the issues that trade deals create. I am certainly not triumphal in any way about trade liberalisation or the effects that this trade deal will have on individuals and farming communities. I have been very sensitive to those discussions over the past few months and take this very seriously. I express my personal view that we must support our farming community, and this is unquestionably the view of this Government as well. It is important to have that on the record.

--- Later in debate ---

[Lord Johnson of Lainston (Con)]

I was just coming to that. I may have taken a bit too long to get there but I am trying to reassure noble Lords by describing in detail the lengthy process of assurance that Australia provides us with. It is part of the global trading system and not necessarily unique to Australia. We must do the same, as I understand. If I am wrong, I will ensure that this is corrected, but we must do the same with any agricultural or meat exports that we send to Australia.

Are we confident that Australia is upholding their system and managing it properly? The answer is yes. I have been impressed with the calls that I have had around this subject. It is a detailed and complicated process of assurance that ensures that we are comfortable that what we receive is indeed what is advertised. I do not want to be called back here if there is a case where that does not happen, because clearly that is not my intention, but on whether we are confident about the processes in place, the short answer is yes.

Regarding South American beef being passed off under British beef titles, I understand that this was only from one retailer, and the National Food Crime Unit is investigating. This struck me as an isolated case. Forgive me that I do not have all the details, but the major supermarket retailers have all denied any knowledge of this and it has not affected them. This is a unique case. I am happy to have someone write to the noble Lord because it would be interesting to find out a bit more about this, but it is not relevant in this instance. It does not seem to be widespread, but is specific. That it has been caught and is being investigated is very important.

I come to a conclusion—

[Lord Purvis of Tweed (LD)]

Can the Minister address the commitment that the now Prime Minister made for 50% of public sector procurement to be sourced locally? Is that government policy? How does that interact with the legal requirements in the Procurement Bill that a public body in this country would not be able to choose a local producer over a treaty supplier producer, on that basis?