Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Douglas Alexander Excerpts(4 days, 17 hours ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
On 27 and 28 November 2024, I attended the eighth meeting of the commission of the comprehensive and progressive agreement for trans-Pacific partnership in Vancouver, Canada, where a number of issues were considered by CPTPP Ministers.
Future accessions to CPTPP
At the meeting, a formal commission decision was taken to commence a CPTPP accession process with Costa Rica via establishment of an accession working group.
CPTPP Ministers have reaffirmed on several instances that CPTPP is open to accession requests by economies that can satisfy the “Auckland principles”, namely;
preparedness to meet the agreement’s high standards;
a demonstrated pattern of complying with trade commitments; and
recognition that decisions are dependent on the consensus of the CPTPP parties.
Through extensive discussions and deliberations on all accession requests, the UK and other CPTPP members have identified that Costa Rica can satisfy the three Auckland principles. As such, in Vancouver, CPTPP Ministers formally decided to commence the accession process with Costa Rica and establish an accession working group.
This move demonstrates that CPTPP remains a living agreement, and one which is designed to expand and bring in new high standards economies. Over time this expansion process will grow the global reach of the agreement, creating further opportunities for CPTPP members.
It is expected that the first AWG meeting will take place in the first half of 2025, during Australia’s year as CPTPP chair. The UK will continue to work with CPTPP members to consider and discuss the remaining accession requests in accordance with the Auckland principles, and the establishment of an AWG for Costa Rica will not prevent this process.
To ensure that interested stakeholders are provided the opportunity to feed in views on the accession process of Costa Rica, today the Department for Business and Trade will launch a period of public engagement that will run across eight weeks, closing on 24 January 2025. During this period, we will ask stakeholders what issues they would like us to consider when engaging in discussions on whether Costa Rica should join CPTPP and the terms on which they should join. The link to the public engagement questionnaire can be found online at https://ditresearch.eu.qualtrics.com/jfe/form/SV_2bnop4ZwgdoyNVk
CPTPP general review
In addition to discussing future accessions, CPTPP Ministers also discussed progress on the CPTPP general review during the meeting in Vancouver. The joint ministerial statement—known as the “Vancouver statement”—published following the meeting summarises the progress made in 2024, during the first phase of the general review, and sets out the forward workplan for 2025. In 2025 members will deepen their discussions on whether and how the agreement should be revised or updated to remain relevant to the trade and investment issues and challenges we all face today, including in a number of areas of particular interest to the UK. The Vancouver statement can be found online at https://www.gov.uk/government/publications/cptpp-joint-ministerial-statement-in-vancouver-canada-28-november-2024
The Department for Business and Trade has also today published a factual summary of responses received to the public engagement period on the general review which was carried out from January to February 2024. These responses continue to inform our ongoing engagement in the general review.
Entry into force
CPTPP Ministers at the meeting also warmly welcomed the impending entry into force of the agreement for the UK. In that vein, I would like to take this opportunity to confirm that the UK will accede to CPTPP on 15 December 2024 and that the agreement will come into force on this date with Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Malaysia and Brunei. Australia also recently ratified the UK’s accession protocol, on 25 October 2024, which means the agreement will enter into force with Australia on 24 December 2024. The deal will come into force with the remaining parties 60 days after they each ratify.
When the UK accedes, the CPTPP will become a truly global trade deal, bringing new opportunities for British businesses, supporting jobs across the entire UK, and shaping the future of international trading rules.
[HCWS267]
Republic of Korea Upgraded Free Trade Agreement: Round Three Negotiations
Douglas Alexander Excerpts(5 days, 17 hours ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The third round of negotiations on an upgraded free trade agreement (FTA) with the Republic of Korea (RoK) took place in Seoul between 5 and 14 November 2024.
The talks were the UK’s first with the RoK since the Secretary of State for Business and Trade announced the Government’s intention to deliver the UK’s FTA negotiations programme in July.
Economic growth is our first mission in Government and FTAs have an important role to play in achieving this. An upgraded FTA with the RoK will contribute to growth, jobs and prosperity in the UK, and provide long- term certainty to UK businesses. Improvements to the existing agreement will include a comprehensive chapter on digital trade, simplified rules of origin and a range of additional commitments that capture advancements in trade policy beyond our existing terms. Total trade between the UK and the RoK was worth £17 billion in the four quarters to the end of Q2 2024. An upgraded FTA is intended to support further growth in this trade.
Negotiators made good progress on a number of areas, including but not limited to:
Digital trade
Constructive discussions were held to build on the existing agreement’s limited digital provisions. Discussions during the round covered a range of areas, including data, trade digitalisation, and co-operation on emerging technologies.
Rules of origin
Good progress was achieved towards securing a new rules of origin chapter that supports current and future supply chains. Discussions covered the chapter’s general provisions and origin procedures text, as well as product specific rules.
Services and business mobility
Productive discussions were held across a range of areas including domestic regulation, financial services, business mobility and professional and business services. The UK is seeking commitments to open up new opportunities for services trade.
Customs and trade facilitation
Good progress was made, with sides agreeing a large part of the chapter. These commitments will make customs processes more predictable and facilitative.
Good regulatory practice
Negotiators made significant progress towards agreeing the RoK’s first good regulatory practice chapter, which will support companies to operate in a more transparent and predictable regulatory environment.
Other areas
Positive discussions were held across a range of areas of the FTA including supply chains, trade and gender equality, and anti-corruption.
The Government will only ever sign a trade agreement which aligns with the UK’s national interests, upholding our high standards across a range of sectors, including protections for the national health service.
The fourth round of negotiations is expected to take place in London in the spring of 2025. The Government will continue to work towards delivering outcomes in the FTA that secure economic growth for the UK and will update Parliament on the progress of discussions with the RoK as they continue to develop.
[HCWS258]
Uyghur and Turkic Muslims: Forced Labour in China
Douglas Alexander Excerpts(3 weeks, 6 days ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I congratulate my hon. Friend the Member for East Renfrewshire (Blair McDougall) not just on his recent election, but on securing this important debate. I feel obliged to declare an interest in paying that compliment, given that I have known, campaigned with and long admired the political judgment and moral seriousness of the new Member for East Renfrewshire—I know how dearly he holds that title as a local representative of that community. What we witnessed today in his remarks evidenced not only that he will be a doughty local fighter, but that he has the kind of global perspective and moral conscience that will serve this House.
I thank all the others who have participated in our debate, which was genuinely worthy of the seriousness and urgency of the matters under discussion. I thank the hon. Member for Strangford (Jim Shannon), who spoke with characteristic passion and clarity in his advocacy of the need for urgent action. I will endeavour to return to the specific points that various Members have made, but I will offer a few introductory remarks before going into more detail.
My hon. Friend the Member for Macclesfield (Tim Roca) brought to the debate careful research, particularly on the car industry’s risk of sourcing goods produced through forced labour. My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) made the case with passion and force that clean energy must not mean procurement secured through slave labour—an approach with which I wholeheartedly agree. I am particularly grateful to her for sharing the deeply harrowing accounts of those she has had the privilege of meeting in recent days, and for bringing that perspective and understanding to our debate.
The hon. Member for Wokingham (Clive Jones), the Liberal Democrats’ new Front-Bench spokesman, spoke with characteristic eloquence and raised a number of points that I will seek to address. Finally, I thank the hon. Member for Kingswinford and South Staffordshire (Mike Wood) for his gracious words. With no disrespect to his remarks, I sense that there are much bigger issues at play this morning than the future prospects of either of us.
It was two years ago that the Office of the UN High Commissioner for Human Rights released its assessment of the situation in Xinjiang. It concluded that clear evidence had been found of serious human rights violations and that the scale of the arbitrary and discriminatory detention of Uyghurs and other largely Muslim minorities within Xinjiang
“may constitute international crimes, in particular crimes against humanity.”
Multiple other bodies and independent human rights experts have since taken similar views, relying extensively on China’s own records. Those findings and recommendations detail evidence of large-scale arbitrary detention; family separation, as we heard very eloquently from the hon. Member for Strangford; enforced disappearances; forced labour; systemic surveillance on the basis of religion and ethnicity; severe restrictions on cultural, religious and linguistic identity; torture; sexual and gender-based violence, including forced abortion and sterilisation; and the widespread destruction of religious and cultural sites. The Government are deeply and sincerely concerned about those human rights abuses, and we continue to work with international partners to find ways of effectively holding China to account.
Last month, the UK signed an Australian-led joint statement at the UN Third Committee that called on China to uphold its international human rights obligations; implement United Nations recommendations; release individuals arbitrarily detained in Xinjiang; and allow access to Xinjiang for independent observers to evaluate the human rights situation. Although, as my hon. Friend the Member for East Renfrewshire suggested, sunlight is not sufficient, transparency is none the less essential. We therefore want those independent advisers and observers to evaluate the human rights situation.
The United Kingdom has also undertaken direct action against those who have aided or abetted these activities. In 2021, under the previous Government, the United Kingdom announced sanctions against four Chinese officials and one entity based on compelling and widespread evidence of serious and systemic human rights violations in Xinjiang. The Government also conduct independent visits to areas of major concern where possible, and continue the delicate but vital work of supporting non-governmental organisations in exposing and reacting to human rights violations.
More widely, this Government are carrying out a comprehensive audit of the UK’s relationship with China, as we have discussed this morning, to improve our ability to understand and respond to the challenges and opportunities that China poses in today’s world. Work on the audit is ongoing and will inform the long-term and consistent approach to China that the Government will set out. I was asked whether it is being led by the Department for Business and Trade, and whether we are therefore meeting the Uyghurs in DBT. The audit is actually being led out of the Foreign, Commonwealth and Development Office, but I can assure the House that efforts are being made to ensure that voices are heard as part of this comprehensive audit.
For that work, engagement with China is vital so that we can not only co-operate on shared challenges but challenge it on areas where we disagree. The Prime Minister and the Foreign Secretary raised human rights in their introductory discussions with President Xi and Foreign Minister Wang Yi, and the Foreign Secretary raised human rights with Wang Yi again in Beijing last month. The Foreign Secretary has also called on China to lift the unwarranted and wholly unacceptable sanctions on UK parliamentarians—a matter to which I will return. That will remain a top priority for the Government.
I now want to address some of the specific legislative and regulatory measures that the Government and the Department use to address forced labour, before coming to colleagues’ questions. That work is a vital part of the Government’s efforts to ensure businesses do not use forced labour or cause or contribute to other human rights abuses and violations within their supply chains, no matter where they operate in the world. The UK addresses forced labour in global supply chains under section 54 of the Modern Slavery Act 2015, which requires commercial businesses that operate in the UK and have a turnover of £36 million or more to report annually on the steps they have taken to prevent modern slavery in their operations and supply chains. The purpose is to provide transparency and ensure businesses monitor their supply chains with rigour, are open about their risks and mitigations, listen to their workers, and act where they find issues.
We have also taken action under the Procurement Act 2023 to strengthen the rules on excluding suppliers linked to modern slavery. A number of Members asked whether our commitment to clean energy will come at the cost of the integrity of our approach to procurement. I can assure them that it will not. For instance, the Act expands the mandatory exclusion grounds that apply if a supplier or a connected person has been convicted of certain offences under the modern slavery legislation. Suppliers can be investigated for debarment on modern slavery grounds, and may be placed on a central debarment list of suppliers that must or may be excluded across the whole of the public sector.
In addition, my Department takes a number of steps to address forced labour within UK supply chains. We negotiate and implement forced labour and modern slavery provisions within our free trade agreement programme. The developing countries trading scheme allows for the suspension of preferential trading arrangements, specifically on grounds of serious violation of labour rights. UK Export Finance also reviews environmental, social and human rights risk factors for transactions in scope of its policy responsibilities.
Furthermore, our overseas business risk guidance makes clear to UK companies the risks of operating in certain regions that we have been discussing today, and urges them to conduct appropriate due diligence. The UK Government expect, encourage and support UK businesses to undertake due diligence so that human rights and environmental issues are considered in their operations and supply chain relationships, in line with the OECD guidelines on responsible business conduct and the UN guiding principles on business and human rights.
On supply chain due diligence legislation, the UK maintains regular dialogue with the European Union following the recent passage of the corporate sustainability due diligence directive, and the Government continue to review how we in the United Kingdom can best tackle forced labour and environmental harms in supply chains. We also regularly engage with business and international partners on domestic and international tools to combat forced labour. Our trade and forced labour business roundtable allows businesses and the Government to come together to speak frankly, and it gives His Majesty’s Government the opportunity to understand how we can better support businesses than has been the case in the past in their efforts to combat forced labour in supply chains globally.
That package of policy tools goes some way towards addressing the concerns that have been raised today, but I assure the House that there are absolutely no grounds for complacency. In line with sustainable development goal 8.7 and commitments made through the G7, referenced earlier, the Government are committed to ensuring that no company has forced labour in its supply chain. With that in mind, we continue to consider actor-agnostic measures that would improve worldwide supply chain transparency and traceability.
We are aware, however, that some sectors are at higher risk of forced labour in their supply chains. A number of contributions have focused on solar supply. On solar supply chains, the Government are committed to tackling the issue of Uyghur forced labour, including the mining of polysilicon used in the manufacture of solar panels, about which my hon. Friend the Member for East Renfrewshire spoke so eloquently, and are therefore taking robust action.
The solar taskforce has been relaunched by the Government and will specifically focus on identifying and taking forward the actions needed to develop resilient, sustainable and innovative supply chains that are free from forced labour, to support the significant increases in the deployment of solar panels needed to meet the ambition that we discussed this morning to increase UK solar power capacity by 2030.
On cotton and auto supply chains, about which a number of hon. Members spoke, we have been clear that no company in the UK should have forced labour in its supply chains. As I have set out, there are rules in place to compel companies to publish statements demonstrating they have met their legal obligations on modern slavery.
Let me seek to address some of the other specific questions raised during the debate. The hon. Member for Strangford spoke about the harvesting and trafficking of human organs. That is a heinous crime that deserves our complete and unequivocal condemnation. The Government are determined to stamp out that form of exploitation, by catching the perpetrators and safeguarding the victims. There are a range of offences under the Modern Slavery Act 2015 and the Human Tissue Act 2004 that were extended on 1 April 2024, ensuring that perpetrators are held accountable, leaving no room for this crime to go unpunished.
On the further question from the hon. Member for Strangford about sanctions, I have spoken in general terms about the approach the Government are taking. Let me be more explicit: China’s sanctions are completely unwarranted and unacceptable. The issue will remain a priority for the Government, given the integrity and importance of our democratic legislature in the House of Commons. The Foreign Secretary has called on China to lift the sanctions, in meetings with his Chinese counterpart Foreign Minister Wang Yi at the Association of Southeast Asian Nations meeting in July and during his most recent visit to Beijing on 18 October.
The sanctions announced by the UK on 22 March 2021 against four Chinese officials and one entity were based on compelling and widespread evidence of serious and systemic human rights violations in Xinjiang. Although 30 countries were united in sanctioning those responsible for those violations, China’s response was simply to retaliate against its critics.
On the point about genocide raised by the hon. Member for Wokingham and a number of colleagues, it is the long-standing policy of the British Government that any judgment on whether genocide has occurred is a matter for the competent national and international court, rather than for Government or non-judicial bodies. Regardless of any court’s decision, this Government will stand firm on human rights, including China’s repression of Uyghurs and others in Xinjiang. That includes raising our concerns, as I have suggested, at the highest levels of the Chinese Government, and co-ordinating efforts with our international partners to hold China accountable for the actions it takes, and to account for human rights violations. For example, as I mentioned, on 22 October the UK joined Australia’s statement at the UN Third Committee on China’s human rights situation.
On whether the UK will issue sanctions against perpetrators—those accused of having forced labour in their supply chains—we keep all evidence and potential listings under close review. It is not appropriate for me to speculate about whom we may designate in the future, as doing so could reduce the impact of those designations, but I have listened carefully to the points made in the debate.
The hon. Member for Strangford and my hon. Friend the Member for East Renfrewshire asked whether we would impose stricter regulations. The United Kingdom recognises the importance of ensuring that businesses are not complacent on the issue of forced labour and human rights violations. I can assure the hon. Member for Strangford that we will continue to monitor the effectiveness of the existing measures about which I have spoken today, as well as monitoring the impact that other countries’ measures are having, to reach a view about the appropriate approach to tackling forced labour effectively.
My hon. Friend the Member for East Renfrewshire raised the issue of GB Energy and solar. I have spoken about the solar taskforce, and I hope that that provided some comfort. We are working with colleagues across Government on the issue, and the Government are united in their determination. The solar taskforce has been relaunched to develop sustainable supply chains, and it will of course give due consideration to this issue. The solar stewardship initiative will support the delivery of the solar road map. The Procurement Act also strengthens rules around existing suppliers that are linked to modern slavery.
In relation to other issues that have been raised, I can assure Members that we will continue to work with domestic and international businesses across all sectors of the economy to ensure that their supply chains are diverse, resilient and, of course, free from human and labour rights abuses.
Finally, I should address the issue of direct cargo flights from Ürümqi to Bournemouth, which was raised by my hon. Friend the Member for East Renfrewshire. Border Force does not assess whether goods on freight entering the UK may have been made using forced labour, but I can assure my hon. Friend that the Government are committed to working with partners to ensure that we can best tackle forced labour in supply chains.
As I say, we are continuing to assess and monitor the effectiveness of the steps that we have taken and will continue to take. The Government will continue to assess emerging policy tools, such as the import bans introduced by international partners, to understand their effectiveness in tackling forced labour in supply chains. That includes our better understanding the potential impacts here in the United Kingdom of the operation of the US measures, about which a number of hon. Members spoke, and the implementation of the EU forced labour regulations.
Summarising the sentiment and approach of the Government, I find that we are in broad agreement with the points made about the character of the forced labour crisis, as well as with hon. Members’ sincere and genuine desire to address these issues. Thankfully, the United Kingdom is still a leading voice in international efforts to defeat modern slavery and end human and labour rights abuses in public and private sector supply chains, and we will continue to assess the most effective ways to address these issues.
I can assure colleagues that we will continue to stand firm on human rights, including in Xinjiang, where China continues to persecute and arbitrarily detain Uyghurs and other Turkic Muslim minorities. That includes raising our concerns at the highest levels with the Chinese Government, as the Foreign Secretary and the Prime Minister have done, and co-ordinating our efforts in international fora such as the G7 to identify, expose and hold China to account for serious and systemic human rights violations.
May I thank you again, Mr Dowd, for your service to the House today, and thank my hon. Friend the Member for East Renfrewshire for raising this urgent topic? I assure him and other hon. Members that the Government are sincerely committed to tackling these issues. We will continue to work to ensure that UK supply chains are free from forced labour and to speak out against human rights abuses, no matter where we find them.
Oral Answers to Questions
Douglas Alexander Excerpts(1 month ago)
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Sam Rushworth (Bishop Auckland) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I can assure my hon. Friend that the United Kingdom is committed to advancing both free and fair trade around the world that is inclusive, sustainable and seeks to reduce poverty. The UK’s aid-for-trade programmes, including the new Trade Centre of Expertise announced by the Prime Minister on 24 October, build the capacity of producers, businesses and Governments in developing countries to participate in, and prosper from, global trade. I can assure my hon. Friend that the UK is committed to making the world a safe and more prosperous place through strengthening our international development work, as set out in our recent manifesto.
Sam Rushworth
Children from Timothy Hackworth primary school in Shildon wrote to ask me to raise fair trade with the Minister as part of their fair trade week. They included Ashton, who reminded me of the privilege that we have to serve in this place. They would also like to know whether the Minister has met representatives of the Fair Trade Foundation since his appointment, and whether he considers that Britain’s leadership on fair trade policies can make a meaningful contribution to reducing poverty in sub-Saharan Africa.
Mr Alexander
First, let me commend my hon. Friend for his work with the local primary school. I know how assiduous he is in advancing the interests of his constituents. I can assure him that we fully understand the importance of fair trade. I have met a representative of the Fair Trade Foundation in recent weeks, and I pay particular tribute to the work that Fairtrade is doing with the Co-op. Thousands of farmers producing goods such as tea, coffee, sugar and flowers are helped by Co-ops in our high streets across the country. It is now the UK’s largest seller of fair trade products, and it deserves our commendation too.
John Grady (Glasgow East) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The international investment summit, about which we just heard, secured more than £63 billion, including for two significant projects in Scotland. Scottish Power, owned by Iberdrola, committed £24 billion to upgrade the UK’s energy infrastructure over the next five years. Floating offshore wind developer Green Volt has selected Aberdeen for its headquarters and plans to invest £2.5 billion. That, of course, comes on top of this Government’s establishment of GB Energy.
John Grady
I thank my right hon. Friend for his answer. Yesterday saw the largest Budget settlement for the Scottish Government in devolution’s history. The Labour party’s commitment to Scotland runs through this Government. Last week, the highly respected Strathclyde University’s Fraser of Allander institute reported that only 9% of Scottish businesses agree that the Scottish Government understand the business environment in Scotland. Does my right hon. Friend agree that Government understanding of business is crucial in driving investment and growth in Scotland, and that it is critical that the Scottish Government improve their understanding of the business environment?
Mr Alexander
Frankly, businesses in Scotland have been let down by two failed Governments. We have had a decade of division and decay in Scotland, and I am glad to see that we now have political stability, with Labour having a majority in Scotland, Wales and England. At the same time, we are committed to genuine partnership and working with the Scottish Government. I know that my hon. Friend has particular expertise in energy policy, given his past professional work. Tomorrow I will be in Torness, in my constituency, to meet EDF Energy—just one example of a business that, frankly, is being held back by the policy and approach of the present Scottish Government.
Chris Law (Dundee Central) (SNP)
I am not surprised in the slightest to hear the disparaging comments from those on the Government Benches about business in Scotland, so I will bring the House up to speed. For the ninth consecutive year, Scotland, under the SNP Scottish Government, is the UK’s top-performing area outside London for foreign direct investment, yet Brexit has reduced the attractiveness of the UK as a base for exporting to EU markets, resulting in its being overtaken by France as the leading destination for foreign direct investment in Europe. Does the Minister recognise that reversing what he seems to be married to at the moment—the Tories’ hard Brexit—is the most significant step that this Government could take to increase inward investment and boost growth in Scotland?
Mr Alexander
As I was saying, let me deal with both the failed Governments who have been letting Scotland down in the last decade. Frankly, if the hon. Gentleman wants to advance the case that there has been a decade of prosperity in Scotland, good luck to him. The reality is that it is very hard to think of a single aspect of Scottish public life that has improved over the last 10 years. Take the case of ferries. Take the case of hospitals. Take the case of our schools or, indeed, the broader business environment.
On Brexit, I recognise that there is a need for a fundamental reset with the European Union, and in recent days I have been taking forward that work. I welcome the work that the Prime Minister has been undertaking, but that is the task of a Labour Government. As so often on so many issues, the SNP talks and Labour delivers.
Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Farming and agricultural businesses employ thousands of people in my constituency, and they make a huge contribution to the local economy. Can the Minister set out exactly how yesterday’s Budget will help them to develop and grow?
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Farmers, like any other business people, need the stability that will be delivered as a consequence of our fixing the foundations, as we set out yesterday. I too represent a constituency with a number of farmers, and I am aware of the concerns that have been raised about inheritance tax, but, frankly, difficult choices had to be made yesterday because of choices that were not made by the Government in which the right hon. Gentleman served.
Becky Gittins (Clwyd East) (Lab)
Chris Law (Dundee Central) (SNP)
The International Court of Justice judgment from 19 July this year ruled that it is the duty of third-party states not to aid or assist Israel’s “unlawful occupation” of Palestinian territory. In the light of this, will the Minister tell us whether the Department for Business and Trade has obtained legal advice, or whether it is in the process of doing so, on the legality of the UK’s existing trade relations with Israel, and if it has, will he share it with the House, please?
Mr Douglas Alexander
I can assure the hon. Gentleman that we work closely with our colleagues in the Foreign, Commonwealth and Development Office who are responsible for the international humanitarian law assessment. My good and right hon. Friend the Foreign Secretary has updated the House on the changed advice received by the Government, and I think that I should leave it there.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Will the Minister meet me to discuss how the Government could further develop an industrial strategy to bring up to 10,000 jobs in the offshore wind supply chain over the next 10 years?
UK-Switzerland Free Trade Agreement Negotiations
Douglas Alexander Excerpts(1 month ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The fifth round of negotiations on an enhanced free trade agreement with Switzerland took place in London between 14 and 18 October 2024.
The talks were the UK’s first with the Swiss since the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) announced the Government’s intention to deliver the UK’s FTA negotiations programme in July.
Economic growth is our first mission in Government and FTAs have an important role to play in achieving this. A stronger trade relationship with Switzerland will contribute to growth, jobs and prosperity in the UK, providing long-term certainty on UK business travel to Switzerland and helping data and ideas flow seamlessly between two world-leading services powerhouses. Total trade between the UK and Switzerland was worth £50.8 billion in 2023.
Talks continue to be constructive, with both countries working towards agreeing ambitious outcomes in key areas, including services, investment and digital. The talks will facilitate UK-Swiss co-operation in areas of mutual interest that support growth.
UK negotiators made good progress in this round and covered almost all areas of the negotiation, including but not limited to:
Services, investment and digital
Productive discussions were held on key technical issues, as we work towards consolidated chapter structures and texts. This will allow us to continue to have further technical discussions on remaining issues—including but not limited to digital and business mobility—and move towards economically and commercially meaningful market access proposals.
Intellectual property
Talks continued to advance, this round, on a number of technical rights areas, building on the existing high standards in international fora and in our respective domestic regimes.
Government procurement
Overall, constructive progress has been made on chapter text that builds upon the World Trade Organisation agreement on government procurement, of which we are both members. Discussions on economically and commercially meaningful market access continue.
Innovation
Negotiators continued discussions on ways to future-proof an enhanced FTA, given the rapidly changing nature of the global economy and the need to respond and adapt to the trade opportunities and challenges that arise from innovation.
Goods, trade facilitation and regulatory environment
Negotiators exchanged market access offers on goods, with the aim of achieving commercially meaningful outcomes. Discussions continued on technical issues regarding the movement of goods between the UK and Switzerland.
Negotiators also covered issues relating to the overall functioning of an upgraded agreement, as well as areas of future co-operation.
The Government will only ever sign a trade agreement which aligns with the UK’s national interests, upholding our high standards across a range of sectors, including protections for the national health service.
Round six of negotiations is expected to take place in Switzerland in early 2025. The Government will continue to work towards delivering outcomes in the FTA that secure economic growth for the UK, and will update Parliament on the progress of discussions with Switzerland as they continue to develop.
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Douglas Alexander Excerpts(1 month, 2 weeks ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I am pleased to announce that it has, today, been confirmed that the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP) will enter into force on 15 December 2024, between the UK and ratified parties.
CPTPP is one of the largest free trade areas in the world: when the UK accedes, it will account for almost 15% of global GDP, or over £12 trillion. The latest analysis shows that accession to CPTPP could in the long run increase UK trade by £4.9 billion every year, boost the economy by £2 billion every year and add £1 billion to real household wages every year—supporting this Government’s vital growth mission. Every nation and region of the UK is expected to benefit from this agreement once the UK accedes. The deal will bring new opportunities for British businesses, support jobs across the UK, and help shape the future of international trading rules.
British businesses will be able to take advantage of this global trade deal by the end of the year, with Japan, Singapore, Chile, New Zealand, Vietnam, Peru and Malaysia. Indeed, through CPTPP, we will benefit from a free trade deal with Malaysia for the first time—an economy worth £334 billion with a population of 33 million people. I would like to thank our valued partners for their support in ensuring our nations benefit from the deal as soon as possible.
The UK continues to work closely with the remaining CPTPP parties—Australia, Brunei, Canada and Mexico—who are completing their processes to ratify our accession as quickly as possible. From this point onwards, for any new party that ratifies the UK’s accession, the agreement will enter into force with them 60 days after their ratification.
Next steps
The Department is preparing communication plans ahead of entry into force to ensure businesses can ready themselves to take full advantage of the opportunities CPTPP presents. These include media outreach, social media campaigns, and business engagement, to raise awareness of this significant milestone and explain the choices and opportunities available to traders.
From 15 December 2024, practical guides for businesses will be available online at great.gov.uk. These guides cover the agreement and interactions with bilateral FTAs on topics from rules of origin to digital provisions and focusing on particular sectors. Following entry into force, the Department will focus on supporting businesses to understand the practicalities of how CPTPP works, to ensure UK businesses can get the most out of the agreement.
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UK-Thailand Enhanced Trade Partnership
Douglas Alexander Excerpts(1 month, 3 weeks ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I am pleased to announce that the UK Thailand enhanced trade partnership was signed and launched on 18 September in Bangkok.
Thailand is south-east Asia’s second largest economy. The total trade in goods and services between the UK and Thailand was £5.9 billion to the end of Q1 2024.
The UK-Thailand ETP is a non-legally binding memorandum of understanding, which creates a framework to enhance trade, investment and economic co-operation between the UK and Thailand. The new partnership is designed to boost trade and investment across 20 priority areas including automotive, tourism, investment, digital trade, financial services, and education.
The partnership is underpinned by a comprehensive workplan guided by the priorities identified through consultations with businesses in the UK and Thailand. Its delivery will be overseen by the UK-Thailand Joint Economic and Trade Committee, which will monitor progress and agree updates to the workplan guided by ongoing business consultation.
This partnership further supports this Government’s commitment to economic growth through providing a strong commitment and underpinning actions to further enhance our strong bilateral trade relationship with Thailand.
The UK-Thailand enhanced trade partnership text is available online on gov.uk.
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Oral Answers to Questions
Douglas Alexander Excerpts(2 months, 4 weeks ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Forty-seven per cent of the United Kingdom’s total trade is with the European Union, and improving trade is a central part of the Government’s ambition to reset our relationship with Europe. Ministers have already been engaging positively on trade issues with our EU and member state counterparts, including EU Executive Vice-President Dombrovskis, German Vice-Chancellor Habeck and Italian Minister Tajani. The Government are seeking the practical changes needed to ensure smoother trade between the United Kingdom and Europe—for example, on mutual recognition of professional qualifications, which have already been mentioned.
Helen Hayes
Goods exports to the European Union are still 11% lower than in 2019, before the Brexit agreement took effect. Can the Minister confirm that, in seeking to grow the UK economy, the Government will take an evidence-based approach to the UK’s trading relationship with our nearest neighbours, and will take all possible measures to remove the barriers to trade that are holding our country back?
Mr Alexander
I thank my hon. Friend for her question and her observation on the character of trade in recent years. There has been better performance on services than on goods, but she is absolutely right to recognise the fall in goods trade with the European Union. Overall trade since 2018 has essentially flatlined. That is why the Government are determined to reset our relationship with the European Union more broadly. Within that broader objective, we will look specifically at the border in order to achieve less friction for trade.
Becky Gittins
Farmers in Clwyd East continue to raise concerns with me about trading barriers with the EU. They feel that the current arrangements disadvantage them, and that not enough has been done since we left the EU to facilitate trade between British farmers and EU countries. Will the Minister outline what steps his Department is taking to remove those barriers and get a better deal for the farming community of Clwyd East?
Mr Alexander
My hon. Friend is already establishing herself as a powerful voice for all constituency interests in Clwyd East. Alas, the concerns that she raises are not limited to that constituency. That is why, as part of the broader resetting of our relationship with the European Union, we are determined to tackle barriers to trade such as those she describes in relation to farmers, including through the negotiation of a UK-EU veterinary agreement that will help to reduce unnecessary border checks.
Mike Wood (Kingswinford and South Staffordshire) (Con)
I welcome the Minister back to the House and back to the Government Front Bench. On the final sitting day before recess, the Secretary of State slipped out an announcement that he expected trade talks to begin with a number of countries this autumn, and the Minister has just confirmed the intention to open talks with the European Union. When can we expect the Government to publish their negotiating objectives for scrutiny by the House ahead of those talks, as demanded by the Select Committee and committed to by the previous Government?
Mr Alexander
I am grateful to the hon. Gentleman for his kind words of welcome both to this House and to the Dispatch Box. I hope that we will be able to exchange in exactly this kind of constructive dialogue in the months and years ahead. Clearly, we inherited a number of open negotiating mandates from the previous Government—not least in relation to the Gulf Co-operation Council and to India—and we are carefully reviewing those mandates, but we have already been clear that, as well as resetting the relationship with the European Union, we are keen to pursue essentially a twin-track strategy, whereby we take forward the work in relation to those free trade agreements.
Yuan Yang (Earley and Woodley) (Lab)
Helen Morgan (North Shropshire) (LD)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I assure the hon. Lady that the SPS agreement—the veterinary agreement, as it is called—is one of the priorities we are pursuing. That matter is being led by the Cabinet Office, as is the reset with the European Union. I assure her that dialogue is under way between the Department for Business and Trade, the Cabinet Office and the Department for Environment, Food and Rural Affairs. It is a priority. It will take time to reset, but I assure her that we are fully aware of the urgency.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Joe Powell (Kensington and Bayswater) (Lab)
Mr Douglas Alexander
The reset, of which we have spoken today, is fundamentally about turning the page and reinvigorating our alliance with our friends, neighbours and partners in the European Union. As well as securing a broad-based security pact and tackling barriers to trade, we aim to build stronger and wider co-operation in a whole range of areas including foreign and defence policy, irregular migration, law enforcement and judicial co-operation, while promoting climate, energy and economic security.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I ask this question on the basis that I am sanctioned by the Chinese Government for having raised the evidence of genocide and slave labour in Xinjiang. We know that the vast majority of polysilicon is now produced in Xinjiang using slave labour. Will the Secretary of State give the undertaking that, as required under section 54(11) of the Modern Slavery Act 2015, there will be no use of any solar arrays that have polysilicon in them made under slave labour in Xinjiang?
UK Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Entry into Force
Douglas Alexander Excerpts(3 months ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The comprehensive and progressive agreement for trans-Pacific partnership is set to enter into force for the UK by 15 December 2024. This follows Peru’s ratification of the UK’s accession protocol to the agreement.
The accession protocol sets out that the agreement will enter into force for the UK 60 days after all parties and the UK have each notified the CPTPP depositary. Notification would follow the completion of relevant domestic procedures. However, after 15 months have passed since signature (which falls in mid-October 2024), the mechanism changes and the protocol can enter into force 60 days after a minimum of six parties and the UK have each notified. If at least six parties and the UK have already notified within 15 months of signature, entry into force would take place 60 days after the October date. Given that Peru is the sixth party to notify its ratification, we currently expect the UK’s accession to CPTPP to enter into force by 15 December 2024.
Before Peru, five other CPTPP parties had already ratified the terms of the UK’s accession, including Japan, Singapore, Chile, New Zealand and Vietnam. This means that the agreement will come into force between the UK and those parties by the end of the year, and with other parties depending on when they ratify. The UK continues to work closely with remaining parties, who are completing their own processes as quickly as possible.
This Department is helping British businesses ready themselves to take full advantage of the opportunities CPTPP presents. As the first country to accede to this agreement, the UK will be perfectly positioned to shape its future development, from influencing the future development of the CPTPP rulebook to championing the group’s expansion to new economies.
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UK-Ukraine Digital Trade Agreement: Entry into Force
Douglas Alexander Excerpts(3 months ago)
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The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I am pleased to announce that the UK-Ukraine digital trade agreement entered into force on 1 September, following the completion of the necessary domestic procedures on both sides. This historic trade agreement will help Ukraine rebuild its economy and support livelihoods following Russia’s illegal invasion.
This is the deepest digital trade agreement that the UK has negotiated. Digital trade is rapidly becoming the dominant form of trade. Seizing the opportunities in this area is fundamental to our prosperity. UK and Ukrainian businesses of all shapes and sizes, and across all sectors of the economy (whether trading in goods or services), will benefit from the agreement.
Ukraine’s recovery from Putin’s illegal and barbaric war will be a symbol of the power of freedom and democracy over autocracy. Our DTA with Ukraine creates a digital UK-Ukraine free trade agreement by modernising our bilateral trade in the digital era and deepening our economic ties with Ukraine.
Greater digitalisation of the economy is a key priority for President Zelensky’s Government. This agreement will boost productivity, jobs and growth, and allow us to help Ukraine deliver on their digital ambitions by:
Ensuring open digital markets, including through commitments such as a ban on imposing customs duties on electronic transmissions.
Supporting cross-border data flows, including financial data, and prohibiting the unfair imposed localisation of data as well as committing to high standards of personal data protection.
Championing digital trading systems to cut red tape and make trade cheaper, faster, and more secure for Ukraine and UK businesses.
Upholding consumer benefits and business safeguards in trade, including cyber-security and online consumer protection.
This agreement further cements the UK’s commitment to stand shoulder-to-shoulder with Ukrainian allies in response to the ongoing conflict and play our part in securing Ukraine’s future as a prosperous, stable and democratic partner in Europe. I hope the House will join me in celebrating this important milestone for UK and Ukrainian businesses.
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