Instrument of Accession to CPTPP

Greg Hands Excerpts

Friday 17th May 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

Today the UK officially announced the deposit of its instrument of accession to the comprehensive and progressive agreement for trans-Pacific partnership. With this significant moment, the UK has moved a vital step closer to acceding to one of the largest free trade areas in the world. CPTPP currently accounts for almost 12% of global GDP, and when the UK becomes a full party to the agreement, this will increase to almost 15% of GDP, or over £12 trillion, according to 2023 data.

The UK will be the first country to accede to CPTPP and will be the first European member. Our accession will place us at the heart of the Indo-Pacific, a region that will be crucial both economically and strategically in the coming decades. It will also mean we are well placed to benefit from any future changes to the rules of the agreement, and from any future expansion of the agreement, on which the UK will have a full say.

Through CPTPP, we will have free trade deals with Malaysia and Brunei for the first time—economies with a combined GDP of over £340 billion in 2023. We will also see gains over and above a number of the bilateral agreements that we already have with CPTPP parties, bringing new market access opportunities for UK businesses. Overall, our accession to the agreement could boost UK GDP by around £2 billion each and every year in the long run when compared to projected GDP in 2040, and is expected to benefit every nation and region in the UK.

Our accession will also ensure appropriate protections for UK interests. We have agreed quotas which permanently limit annual additional imports from major producers of the most sensitive agricultural products, and we have ensured that CPTPP preserves the UK’s right to regulate to protect human, animal and plant life and health. All food and drink products imported into the UK will still have to meet the respective food safety and biosecurity standards for the UK. Likewise, in acceding to CPTPP we will not be changing any of our high domestic standards of environmental protection or our labour standards. We have also ensured protections for key public services, including the NHS.

The UK has now completed the key processes required to join the CPTPP. As well as the UK’s own processes, the other CPTPP parties need to complete their own respective applicable legal processes for entry into force of the protocol. CPTPP parties have different domestic procedures and scrutiny obligations to complete, which vary depending on the country.

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. After 15 months have passed since signature, which falls in 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. We therefore expect that the UK’s accession should enter into force by the end of 2024.

Japan, Singapore and Chile have already completed their respective applicable legal processes for entry into force of the protocol, and we welcome the support of every party so that all our businesses and consumers can reap the rewards of the UK joining the deal as soon as possible.

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Oral Answers to Questions

Greg Hands Excerpts

Thursday 2nd May 2024 Commons Chamber

[Sir John Whittingdale (Maldon) (Con)]

5. What recent progress her Department has made on negotiating a free trade agreement with South Korea.

[The Minister for Trade Policy (Greg Hands)]

I thank my right hon. Friend for the valuable work he is doing as the Prime Minister’s trade envoy to the Republic of Korea. I look forward to his upcoming visit there. He is famous for his timely interventions. Detailed round 2 discussions on an upgraded FTA took place in London from 18 to 22 March, which provided an opportunity to conclude the exploratory phase of negotiations. We now look forward to text-based negotiations in round 3, which is due to take place in Seoul from 24 June.

[Sir John Whittingdale]

I thank my right hon. Friend for his answer ahead of my visit to Korea next week. Does he agree that the Indo-Pacific region offers huge opportunities for global growth, particularly as it will be home to something like half the world’s middle-class consumers over the coming decades, and therefore that upgrading this agreement is likely to bring huge benefits to the UK?

[Greg Hands]

My right hon. Friend is absolutely right. The Indo-Pacific is a vital part of the world for the UK and forms the centrepiece of our strategy going forward diplomatically and on trading ties. He is right that the Republic of Korea will play a vital role in that. The recently signed Downing Street accord with Korea outlines the breadth and depth of the ongoing relationship. We look forward to the comprehensive and progressive agreement for trans-Pacific partnership coming into effect later this year, and we look forward to seeing if the Republic of Korea will apply.

[Kevin Brennan (Cardiff West) (Lab)]

I am sure the right hon. Member for Maldon (Sir John Whittingdale) does a very effective job in South Korea. I visited myself with the Digital, Culture, Media and Sport Committee a couple of years ago and saw those opportunities. However, there is some concern about transparency around the use of trade envoys. Will the Minister confirm to the House that under this Government no trade envoy has ever demanded and been given the use of a house for their exclusive use?

[Greg Hands]

The hon. Gentleman has slightly jumped the gun, as the next question on the Order Paper relates to trade envoys. May I say how proud we are of the cross-party trade envoy programme, which I think he will hear about in a moment? We think they do an excellent, good value-for-money job for the United Kingdom in promoting trade in a number of key markets.

[Sir Chris Bryant (Rhondda) (Lab)]

6. What the travel costs of parliamentary trade envoys were in each of the last three years.

[The Minister for Trade Policy (Greg Hands)]

The Prime Minister’s trade envoys provide invaluable support in progressing the UK’s trade and investment agenda in 61 markets across the world. The travel costs incurred by the Prime Minister’s trade envoys were: £63,566 for the financial year 2021-22; £226,014 for 2022-23; and £232,325 for 2023-24. These costs were for flights, for accommodation when the official British residence was unavailable and for other sundry expenses.

[Sir Chris Bryant]

There is a great deal of murkiness about the trade envoys. I note that, in answer to my hon. Friend the Member for Cardiff West (Kevin Brennan), the Minister point blank refused to deny that at least one trade envoy has explicitly asked for the exclusive use of a house while acting as a trade envoy. The Minister has point blank refused to publish the breakdown of all the trade envoys and their costs for absolutely spurious reasons. If a Select Committee visits South Korea, for instance, all the details of the costs are published, but not if a trade envoy goes. How can we possibly judge whether the £750,000 that has been spent so far in the past three years has been well spent? Is there any accountability whatsoever, or is this really just a means of providing sinecures for people who are liked in Government?

[Greg Hands]

Well, there is a lot of bluster there and not a few accusations. The hon. Gentleman may wish to try to stack these things up a bit. It is a cross-party programme, not a Government-only programme. Many Labour MPs, Labour peers and others are members of the programme. Gifts and hospitality are already published in departmental registers. If I may say so, Mr Speaker, two qualifications for this cross-party role are diplomacy and discretion, which might explain why not everybody has been asked to do it.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

7. What recent discussions she has had with the Scottish Government on the promotion of Scottish products in overseas markets.

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

9. What recent progress she has made on increasing levels of trade with Caribbean Community member states.

[The Minister for Trade Policy (Greg Hands)]

My hon. Friend is a great champion of international trade, as the Prime Minister’s trade envoy for Mongolia. He will be pleased to know that annual trade between the UK and the Caribbean economic community, CARICOM, in 2023 was £5.1 billion—up 11% in current prices on the previous year. In December 2023, I represented the UK at the inaugural joint council of our economic partnership agreement, where I met representatives of CARICOM and the Dominican Republic, collectively known as CARIFORUM, underlining the importance of our trading relationship and exploring opportunities to further boost trade.

[Daniel Kawczynski]

I speak as the chairman of the all-party parliamentary groups on St Kitts and Nevis, Guyana and the Caribbean. It is an extremely important region for the United Kingdom, one of the largest concentrations of British overseas territories and Commonwealth nations in the world, with historic links with the United Kingdom, but the copy-and-paste trade deals that we have with them, carried over from the European Union, are not sufficient. We need a more tailor-made, specific trade agreement between the United Kingdom and the Caribbean Community to ensure that some of those protectionist measures that the European Union imposed on our CARICOM friends can be rescinded. When will that happen?

[Greg Hands]

I thank my hon. Friend for his engagement in the region, in St Kitts, the Caribbean as a whole and Guyana, which remains in all our minds at the moment given the situation on its borders. He is right to highlight the CARIFORUM trade deal; it is a deal that the UK values, and I mentioned that we have had the inaugural meeting of the body designed to ensure that the deal has good effects on our trade with the Caribbean. I might suggest arranging a meeting between my hon. Friend and the trade commissioner Jonathan Knott, who I am sure would be delighted to meet him to discuss Caribbean trade possibilities still further.

[Rob Butler (Aylesbury) (Con)]

10. What steps her Department is taking to reduce non-financial reporting requirements for small businesses.

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[Wera Hobhouse (Bath) (LD)]

16. Whether she has made an assessment of the potential impact of New Zealand’s proposed Fast-track Approvals Bill on its obligations under the UK-New Zealand free trade agreement environment chapter.

[The Minister for Trade Policy (Greg Hands)]

In March, the UK and New Zealand highlighted the importance of our environmental commitments at the first ever environment committee under our new free trade agreement. We continue to engage with New Zealand on implementing the environmental chapter, and will monitor the proposed Bill that the hon. Lady mentioned during its passage through New Zealand’s Parliament.

[Wera Hobhouse]

The New Zealand FTA entered into force on 31 May 2023. It contains a commitment in article 22 that each party will not

“waive or otherwise derogate from, or offer to waive or otherwise derogate from, its environmental laws in a manner that weakens or reduces the protection afforded in that law”.

Is there not a danger that the fast-track approvals will erode those protections? What steps will the Government take to ensure that New Zealand absolutely upholds its commitments under the FTA?

[Greg Hands]

As I said, we will continue to monitor the passage of that proposed legislation, but the hon. Lady must recognise that the UK and New Zealand are incredibly like-minded in these areas—on climate, the environment and clean growth. The environment chapter in our free trade agreement is one of the most ambitious in any FTA anywhere in the world. It breaks new ground for both the UK and New Zealand in supporting our shared climate and environmental goals, clean growth, and the transition to a net zero economy.

[Patrick Grady (Glasgow North) (SNP)]

T1. If she will make a statement on her departmental responsibilities.

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[Jim Shannon (Strangford) (DUP)]

T2. Further to the question from my hon. Friend the Member for Upper Bann (Carla Lockhart) to the Prime Minister yesterday, with the Republic of Ireland now employing a form of border control, seemingly reinstating a hard border, what discussions have taken place regarding the ability for business vehicles to pass through the border, with delays due to onerous checks by Garda Síochána and Republic of Ireland and EU border staff?

[The Minister for Trade Policy (Greg Hands)]

Of course the Government as a whole are monitoring this situation very closely. We have very good relations with the Government of the Republic of Ireland, and I will pass on the hon. Member’s comments to the Cabinet Office and the Foreign Office.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Would it be acceptable if the UK became the only country in the G7 that could not make its own virgin steel?

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[Rob Butler (Aylesbury) (Con)]

One of the many benefits of Brexit has been our ability to take back control of our trade negotiations. The comprehensive and progressive agreement for trans-Pacific partnership is one of the most exciting, so will the Minister provide an update on the status of our accession to CPTPP?

[Greg Hands]

I am delighted to be able to do so, and delighted to have such an enthusiastic supporter of CPTPP, which is an enormous benefit to this country. The UK joining will take its share of global GDP from around 11% to just over 15%. The UK will be the first country ever to accede to CPTPP, which includes most of the fastest growing markets in the Asia-Pacific region: the UK joining shows that it goes beyond the region. On accession, we are delighted that Royal Assent has been given to our Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Act 2024, and we are looking forward to UK ratification in the coming weeks. Three of the 11 parties have ratified so far—Japan, Chile and Singapore—and we look forward to further parties ratifying it in the coming weeks, to make progress on this extraordinary opportunity for this country.

[Wera Hobhouse (Bath) (LD)]

T6. Last year, the Environment, Food and Rural Affairs Committee heard that the lack of a coherent agritrade policy, together with a complex set of import and export certification rules, is preventing rural businesses, particularly food producers, from trading outside the UK. How will the Department support UK producers to deal with complex trade red tape?

[Greg Hands]

I gave evidence in front of the EFRA Committee just last week on this very issue with our Minister for Food, Farming and Fisheries, my right hon. Friend the Member for Sherwood (Sir Mark Spencer). We put in a huge amount of resources. We have a number of commissioners and trade support people around European Union countries and around the world promoting agrifood exports. I add that we also have a record level of services and exports to the EU, some of which will be in the agriculture sector. We have, contrary to the constant doom and gloom that the hon. Lady brings to this question time every five weeks, a very good story to tell about the successes of the United Kingdom when it comes to trade.

[Dave Doogan (Angus) (SNP)]

Scottish salmon is just one of the Scottish businesses that serve to prop up the failing UK economy, yet trade organisation Salmon Scotland revealed recently that the salmon industry in Scotland is losing £100 million a year in trade with the EU. Since 2019, that has amounted to a 17% drop in trade. What message does the Secretary of State have for this business in Scotland, where all businesses and two thirds of the electorate rejected this hard Tory Brexit?

[Greg Hands]

We hear this from the Scottish National party all the time, opposing everything in terms of UK trade agreements. It is actually Scottish goods that benefit from so many of these trade agreements that we have negotiated, such as whisky when it comes to the Australian and New Zealand deals and the coming deal we hope to do with India. All these deals benefit Scottish goods in particular, yet the SNP has opposed or abstained on every single trade deal that has ever been done by either this country or by the European Union. [Interruption.] The hon. Gentleman knows it is true. The SNP has abstained on Japan and on Singapore; it is against Canada, against South Africa, against Korea, against Australia and against New Zealand; and its Members even failed to show up on the Ukraine agreement. It is a woeful record when it comes to supporting Scotland from the SNP.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

What action are the Government taking to strengthen critical supply chains?

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[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

India is the second largest market for Scottish whisky in the world, making it an extremely important market for the Scottish economy. Currently, whisky exported to India has a 150% import tariff placed on it. What steps is the Secretary of State taking to ensure that, in any trade deal signed with India, that tariff is reduced?

[Greg Hands]

We are engaged in a live negotiation with India at the moment and the hon. Member would not expect me to comment on the progress of a live negotiation. India is obviously in a pre-election period as well. However, I can tell him that Scotch whisky tariffs are very much part of that negotiation; everybody knows that that is one of the key UK objectives. May I perhaps add that, if we do get a good deal on Scotch whisky, I will look forward to the SNP for the first time actually voting for a trade deal with India?

[Sir Michael Ellis (Northampton North) (Con)]

Does my right hon. Friend agree that it would be odd and inappropriate for the United Kingdom to impose any form of arms embargo against Israel when His Majesty’s armed forces are in the region and working with Israel to provide humanitarian support, and the UK would expect Israel to help in the protection of His Majesty’s forces?

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[Tonia Antoniazzi (Gower) (Lab)]

In my constituency we have the fantastic company Selwyn’s, whose seafood is first class. It exports a lot; what is the Government’s current assessment of the export of cockles and other seafood in the Welsh market?

[Greg Hands]

I thank the hon. Lady for her question and her interest in this important sector. We regularly meet the UK seafood sector, which can often be subject to very high tariffs from foreign markets, but the UK’s quality shines through. It is a key part of many of our current trade negotiations. I urge her to watch this space. We are always happy to meet the company concerned, but I can reassure her that when it comes to seafood exports, the Department is constantly engaged both in trade policy and in the support we give our exporters.

UK-Israel Trade Negotiations

Greg Hands Excerpts

Wednesday 1st May 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

The fifth round of negotiations on the UK-Israel free trade agreement ran from 8 to 17 April 2024.

This round of negotiations was hosted by the UK and conducted in a hybrid manner: a delegation of Israeli officials travelled to London for in-person discussions, with further officials attending virtually. During this round, officials held technical text-based discussions covering 27 policy areas across 63 sessions.

This round of negotiations discussed a range of policy areas, with a particular focus on services, which are not covered by our current agreement. Services comprise around 80% of both the UK and Israel’s economies but, because of our outdated trade agreement, services only make up just over one third of total trade between us. The trading relationship between the UK and Israel is valued at £6.4 billion as of September 2023, and there is significant room for growth. An upgraded trade deal will play to British strengths and unlock trade for our world-leading services and digital sectors.

The UK will maintain its long-standing foreign policy positions in this FTA, including with respect to the internationally recognised borders of Israel, and will continue to exclude illegal settlements to ensure nothing in this FTA undermines the viability of a two-state solution.

The Government remain clear that any deals we sign, including with Israel, will be in the best interests of the British people and the UK economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations the NHS, and the services it provides, is not on the table.

The Government will continue to keep Parliament updated as these negotiations progress.

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United Kingdom-Republic of Korea Free Trade Agreement Negotiations

Greg Hands Excerpts

Wednesday 17th April 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

The second round of United Kingdom-Republic of Korea Free Trade Agreement negotiations took place during the week commencing 18 March 2024. A delegation of officials undertook technical discussions in-person in London with some talks taking place virtually.

We were pleased to host the RoK delegates for the first home round in London. During the round, technical experts from both sides came together for discussions in 22 separate sessions covering 17 policy areas, including professional and business services, cross-border trade in services, domestic regulation, financial services, mobility, investment, digital, sanitary and phytosanitary, technical barriers to trade, gender, procurement, competition, state-owned enterprises, small and medium enterprises, goods regulatory practice, and labour. This round of negotiations was an opportunity to hold further exploratory discussions. Chapter negotiators focused their discussions on establishing a more detailed understanding of the outcomes the UK and RoK are seeking and began to share early text proposals to work from.

The third round of negotiations is due to take place in June 2024.

HM Government remain clear that we will not sacrifice high-quality outcomes for speed and will continue to pursue a deal which delivers the best outcome for the United Kingdom. We will not compromise on our high environmental and labour protections, or public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the NHS and the services it provides are not on the table.

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Export Statistics Update

Greg Hands Excerpts

Tuesday 26th March 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

On 31 March 2021, the previous Government published their policy on support for the fossil fuel sector overseas^[1]. As part of this, the Government set out that they would withdraw all new financial and promotional support for the fossil fuel energy sector overseas, with very limited exemptions.

Since the introduction of this policy, the Government can confirm that no such overseas fossil fuel projects have received financial funding or support from UK Export Finance; nor have they received any Government investment. However, I regret to inform the House that we have recently discovered that a limited number of projects did receive other support that contravened this policy in the period between April 2021 and October 2023. Support typically focused on market entry and trade promotion advice.

During this period, 134 projects worth £747 million were recorded as having been supported by departmental officials in some capacity. These 134 projects are a small proportion (1.00%) of the 13,457 projects, and the £0.747 billion of export wins are similarly a small proportion (1.35%) of the total value of £55.342 billion of exports in these years.

None of these projects were subject to the approval of Government Ministers, and Ministers were not made aware of these projects until the discrepancies were discovered recently by officials. The projects were, however, included in the Government’s “Export Wins” data between 2021 and 2023.

My Department has taken steps to rectify and remedy the issue. We have put in place additional measures, checks and reporting to ensure that all staff understand and adhere to the policy and can demonstrate clearly that no support is being given that contravenes the policy.

We have also written to colleagues who were inadvertently given incorrect information.

^[1] https://www.gov.uk/government/publications/how-the-government-will-implement-its-policy-on-support-for-the-fossil-fuel-energy-sector-overseas

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UK-Switzerland Enhanced Free Trade Agreement Negotiations: Fourth Round

Greg Hands Excerpts

Thursday 21st March 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

The fourth round of negotiations on a UK-Switzerland enhanced free trade agreement took place in Bern, Switzerland from 4 to 8 March 2024.

We continue to work together with the Swiss towards an ambitious trade deal. Talks continue to be constructive and positive, with both countries focused on achieving a modern and comprehensive agreement with ambitious outcomes, including in areas such as services and investment, mobility, digital and the environment, which are not covered by our existing FTA. UK-Swiss services trade was worth £27.9 billion in the 12 months to September 2023.

Negotiations are now focused on text-based discussions, and we have seen progress across many areas. This round, we provisionally closed the chapter on small and medium enterprises. This will help UK SMEs expand their operations more easily into the Swiss market.

We look forward to future further discussions between the UK and Switzerland to deliver our desired outcomes for the FTA. It is especially important for the UK that we achieve mobility outcomes, which are a top priority for business stakeholders on both sides and underpin any services and investment market access achieved in the FTA.

The fifth hybrid round of negotiations is expected to take place in the UK in early summer 2024.

The Government remain clear that any deal we sign, including that with Switzerland, will be in the best interests of the British people and the UK economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest.

We are also clear that during these negotiations, the NHS, and the services it provides are not on the table.

His Majesty’s Government will continue to work closely with Switzerland to ensure negotiations proceed at pace and take place on terms that are right for the UK. We will continue to keep Parliament updated as these negotiations progress.

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

Greg Hands Excerpts

Report stage
Tuesday 19th March 2024 Commons Chamber

[Gareth Thomas]

My right hon. Friend is absolutely right. Ministers will have heard his point; whether they will act on it remains to be seen, but I certainly hope they do. If we are lucky enough to be elected at the next general election, we will certainly work with the ILO to try to drive better adherence to its conventions.

Last but not least, I share the ambition of my hon. Friend the Member for Walthamstow, who made a powerful speech, for a much more open dialogue on trade and the axing of more of the red tape, bureaucracy and barriers to trade with European markets thrown up by the poor negotiating skills of the last Prime Minister but two.

There remain, in particular, serious concerns about scrutiny of trade agreements and about the damage that ISDS provisions could do, so we will, with the leave of the House, press new clauses 4 and 5 to a vote.

[The Minister for Trade Policy (Greg Hands)]

I thank colleagues for their contributions to the debates on this important Bill. Let me begin with the new clauses relating to new accessions to the CPTPP: new clause 1, tabled by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith)—who always demonstrates his passion on this important matter—new clause 4, tabled by the hon. Member for Harrow West (Gareth Thomas), and new clause 11, tabled by the hon. Member for Chesham and Amersham (Sarah Green).

As the House may know, there is no rule within the CPTPP that requires new applicants to be dealt with on a “first come, first served” basis. Rather, it has been agreed within the group that applicant economies must meet three important criteria—called the Auckland principles—and it is on those key principles that applications will be assessed. Applicants must: first, be willing and able to meet the high standards of the agreement; secondly, have a demonstrated pattern of complying with their trade commitments; and thirdly, be able to command consensus of the CPTPP parties. Those strong criteria will be applied to each accession application. It is right that we in the United Kingdom, as a new member of the CPTPP group, work within the principles of the group to achieve a consensus decision.

I remind the House that while the UK rightly participates in discussions on this topic with CPTPP parties, we will only have a formal say over an application post-ratification and entry into force of the agreement. It is therefore crucial that we ratify the agreement and become a party, so that we can work with CPTPP members decisively on each current and future application. With that in mind, it would not be appropriate for the Government to give a running commentary on individual applicants, not least because to be drawn on individual applicants now, ahead of the UK becoming a party to the agreement, could have an impact on our ability to achieve that important goal of ensuring that the CPTPP enters into force. I should also make it clear that our own accession process has set a strong precedent. The robust experience that the UK has undergone has reinforced the high standards and proved that the bar is not easy to meet for any aspirant.

Regarding the scrutiny of any hypothetical future accession, I can assure the House that any accession of a new party to the CPTPP would require an amendment to the terms of the CPTPP. Therefore, as with the UK’s accession protocol, our firm intention is that such a future accession would be subject to the terms of the Constitutional Reform and Governance Act 2010—the CRaG process. I assure the House that CRaG is applicable to plurilateral agreements such as the CPTPP. The Act makes no distinction between bilateral, plurilateral or multilateral treaties as outlined in section 25 of CRaG.

[Liam Byrne]

The Minister is being characteristically generous in giving way. We obviously sought a debate under CRaG for this treaty. The Secretary of State, who is now in her place, told our Committee that she supported that, but the Leader of the House then refused to make Government time available for that debate. What further assurances can the Minister give us that there would indeed be a debate if the treaty was changed in the way that he described?

[Greg Hands]

The Government’s position is unchanged. It is always the desire of the Government, as expressed by the Secretary of State in writing to the House and to the right hon. Gentleman as Chair of the Select Committee, to urge and to ask for there to be a debate, but that will always be subject to the availability of parliamentary time. In a little bit, I will discuss the opportunities that there have been to scrutinise the CPTPP, which have been manifold in recent years.

[Lloyd Russell-Moyle]

Will the Minister give way?

[Greg Hands]

I will give way a little later.

The Act makes no distinction between bilateral, plurilateral and multilateral treaties. In addition to Parliament being able to make its views clear through the CRaG process, let me remind the House that, as a dualist state, any legislation necessary to implement the treaty—such as alterations to tariffs legislation, to take a hypothetical example—would need to be fully scrutinised and passed by Parliament in the usual way. It is the long-standing policy of His Majesty’s Government not to ratify international agreements before all relevant domestic legislation is in place. Were Parliament to refuse to pass any necessary implementing legislation, ratification of an agreement would be delayed.

I thank my right hon. Friends the Members for Chingford and Woodford Green and for North Somerset (Sir Liam Fox) for their opening speeches. Both are strong supporters of the UK joining the CPTPP. Indeed, my right hon. Friend the Member for North Somerset, who is the former Secretary of State, initiated these talks back in 2017 with me at his side, and successive Secretaries of State have given maximum priority to doing so. I am now in my fourth stint in this role, and it is fantastic to see his and my vision in 2017 now nearing fruition and being very close to UK ratification.

My right hon. Friend the Member for Chingford and Woodford Green and I know that Parliament is perfectly capable of expressing a view on an international agreement and whether a country might join it, and the Government of the day would be very likely to take notice. In debates in this House over some years now, he has made clear his views on trade with China, has gained support and attention, and been effective in doing so. Indeed, he has helped to achieve changes in policy in relation to supply chains in Xinjiang, and I agree with his support for Taiwan —a full member of the World Trade Organisation—as an important trade partner for the UK. We are positive about this kind of debate in the House.

The right hon. Member for Birmingham, Hodge Hill (Liam Byrne), who chairs the Select Committee, mentioned the scrutiny that there has been in this House for the CPTPP agreement, and he doubted whether there had been four debates. I had a slightly nagging feeling that I may actually remember each of the four debates, so I went back and checked the four debates, which started with the very first one that I responded to in April 2021. There have been four debates in this House and in the other House on the CPTPP. There have also been two oral ministerial statements and 16 written ministerial statements, and five separate Select Committees have taken evidence from Ministers and senior officials on the matter. There has been a Trade and Agriculture Commission report and a section 42 report. This is not an under-scrutinised trade agreement—rather the opposite. As has always been clear, we want the CPTPP to expand to fast-growing Asia-Pacific economies. I also agree with the Auckland principles.

[Liam Byrne]

rose—

[Greg Hands]

Of course I will give way—if the right hon. Gentleman first concedes that this has been a well-scrutinised trade deal.

[Liam Byrne]

Not quite. I am grateful to the Minister for setting out the full history, but will he accept that the Secretary of State believed that we should have had a debate, under the CRaG principles, on the full treaty? This Bill covers only three of 30 treaties. It is a matter of disappointment to many of us in the House that even though the Secretary of State no doubt argued vigorously and passionately for the debate, the Leader of the House was unable to grant us time. That is not necessarily the precedent that we want to establish for further trade treaty scrutiny.

[Greg Hands]

Of course, the right hon. Gentleman was a Minister in the last Labour Government, and he will remember that there are the vagaries of time available. Making an application to say that we would like there to be a debate is not the same as those who run the parliamentary timetable agreeing to there being one.

Let me move on to the new hon. Member for Kingswood (Damien Egan), who made a very accomplished and well delivered maiden speech. He spoke fondly of predecessors whom I know and like, such as Roger Berry and Rob Hayward. He won a keenly contested by-election—I have been to a few by-elections in recent years, and I was grateful to be given a bit of time off and to not go to Kingswood. None the less, I have great admiration for those who win by-elections. I have seen at close hand that they are a different kind of contest.

The hon. Gentleman spoke of his support for free trade and for rewarding hard work, and expressed sympathy for the Government, who have faced the challenges of covid and Ukraine. I agree with him on all of those issues, and the Government do too. I look forward to his continuing the tradition of an independent-minded Member for Kingswood—but please do not tell the Labour Whips Office.

As ever, my hon. Friend the Member for Totnes (Anthony Mangnall) spoke passionately about trade and CPTPP. He is always probing on those issues.

Various amendments and new clauses that have been tabled ask for additional impact assessments. Before addressing some of those amendments directly, I would like to reassure the House that the Government will publish a biennial monitoring report and a comprehensive evaluation report of the agreement within five years of our accession.

Amendment 1 and new clause 12 would introduce commitments to publish impact assessments on the performers’ rights provisions in this Bill, and I will set out why we consider them to be unnecessary. The impacts of the rules depend in large part on how they are applied in particular cases through secondary legislation made under the Copyright, Designs and Patents Act 1988. That secondary legislation may restrict or extend particular rights to particular countries. Wherever the Government intend to make significant changes to the secondary legislation, we will engage with affected industries and carry out an impact assessment. The Intellectual Property Office has done that recently with its consultation and its assessment of the impact of potential secondary legislation on the broadcasting and public playing of recorded music. A commitment to assess the impacts of the measures in this Bill is therefore unnecessary, and risks overlooking the effects of the secondary legislation.

I will now turn to new clauses 2 and 6, which broadly focus on environmental and other standards. I can provide assurance that the UK will continue to uphold our high environmental standards in respect of all our trade agreements, including CPTPP. As I have previously mentioned, the Government intend to publish a comprehensive ex post evaluation of the agreement within five years of the UK’s accession, and I can confirm that this evaluation will include an assessment of the environmental impacts of our accession. In addition, the independent Trade and Agriculture Commission was asked to scrutinise the UK’s accession protocol and produce a report. The TAC concluded in its advice, published on 7 December 2023, that

“CPTPP does not require the UK to change its levels of statutory protection”

in relation to the aforementioned areas.

[Lloyd Russell-Moyle]

It is very welcome that there will be a five-year report. Will it include numbers on unsustainable palm oil and rainforest wood to ensure that we are not exploiting more than we are at the moment?

[Greg Hands]

That is exactly the sort of thing that I would expect the report to do. I must say that I am delighted that the hon. Gentleman has mentioned the Government’s record when it comes to palm oil, because 86% of UK imports of palm oil were certified as sustainable in 2022—up from 16% under the last Labour Government in 2010, when we took office. Deforestation related to palm oil in Malaysia has fallen by 60% since 2012, according to the latest available figures, and we will keep working with countries such as Malaysia to build on that work.

As soon as parliamentary time allows, the Government will be tabling their forest risk commodities legislation under the Environment Act 2021, which will make it illegal for larger businesses operating in the UK to use key forest risk commodities produced on land illegally occupied or used. The Government have confirmed that palm oil products would be included under the regulated commodities. Additionally, I once again refer to the report of the independent Trade and Agriculture Commission, which concluded that

“it is unlikely that CPTPP will lead to an increase in palm oil being grown on deforested land”.

Moving on to new clauses 3 and 5, relating to ISDS, the UK’s accession to CPTPP will benefit UK investors. I do not think the Opposition understand how business works. We support British businesses operating overseas. They create jobs in this country—jobs that the Labour party does not seem to like.

[Dominic Raab (Esher and Walton) (Con)]

I thank my right hon. Friend for progressing CPTPP with all his usual energy, because it will boost trade and be of huge strategic significance. It is an opportunity of Brexit that must be grasped. On investor-state dispute resolution, he is absolutely right that we must not give way to the naysayers. It will be overwhelmingly in the UK’s interest, given the protections for UK businesses and exporters and the certainty it will provide in the massive growth region of the Indo-Pacific.

[Greg Hands]

My right hon. Friend also played a really important role in getting CPTPP through. I remember our joint visit to Vietnam in 2021, when we argued for Vietnamese support. He is right to say that it is important to remember that the UK has never lost an ISDS case. Equally, it is important for us to protect UK businesses operating abroad. They provide jobs and secure livelihoods at home. I find it astonishing that the Opposition, as they lurch ever leftwards, seem to forget that the whole time.

I can assure the House that the UK already has investment agreements containing ISDS provisions with around 90 trading partners, including seven of the 11 CPTPP parties. The UK provides a welcoming investment environment with a non-discriminatory regime, strong rule of law and good governance. We are clear that, where we negotiate ISDS, we will not hinder our inherent right to regulate in the public interest, including in areas such as the environment and labour standards.

I turn to new clauses 7, 9, 10 and 13, which focus on the impacts that this deal will have on our businesses and our economy. The Government want UK businesses to benefit from the ambitious provisions in the CPTPP as far as possible after we accede, and we are working to raise awareness of the agreement and ensure that businesses have the knowledge they need to take advantage of the opportunities that CPTPP will present when it enters into force for the UK.

New clause 8, tabled by the right hon. Member for Hayes and Harlington (John McDonnell), focuses on labour standards. I notice that there is no official Labour amendment focusing on labour standards. Maybe Labour does not care about labour any more, but I know that the right hon. Gentleman does. The CPTPP labour chapter includes binding provisions on fundamental labour rights and on hours of work, health and safety, and minimum wages. It reaffirms CPTPP parties’ obligations as members of the International Labour Organisation and requires that parties do not waive or derogate from their domestic labour laws in order to encourage trade or investment.

Amendment 2, also tabled by the right hon. Member for Hayes and Harlington, relates to the conformity assessment regulations referenced in the Bill. The amendment would allow changes to the conformity assessment regulations only following a motion to resolve against the ratification of the UK accession protocol first. I just think it would be unwise for us to pass an amendment to resolve against the ratification of UK accession in advance.

This has been a wide-ranging debate, and we have debated important issues. I particularly want to minute my thanks to my right hon. Friend the Member for Chingford and Woodford Green, who has rightly raised important questions about our trade with China, and to other right hon. and hon. Friends who have supported the process of the UK acceding to CPTPP.

I do not want to tempt fate, but this might be my last chance to speak on our accession in this House before the UK formally ratifies joining CPTPP. I and, I believe, the whole Government passionately believe that CPTPP offers a great future for the UK, and I have seen our accession through from being a novel idea in 2017 to ratification, and hopefully accession, in 2024. Not many of us in this place have been able to do that over a seven-year period, and I am grateful to all my ministerial colleagues, successive Prime Ministers who have supported CPTPP and my excellent Department for International Trade and Department for Business and Trade officials for being with me on this very exciting journey.

[Sir Iain Duncan Smith]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 4

Report: accession of new states to the CPTPP

“(1) Before any decision is made by the Government on the accession of a new state to CPTPP under Chapter 30 of the CPTPP, the Secretary of State must publish a report assessing the potential benefits and impact of the accession of that candidate state on the United Kingdom.

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

Brought up, and read the First time.

Question put, That the clause be read a Second time.

UK-Israel Free Trade Agreement: Fourth Round Negotiations

Greg Hands Excerpts

Monday 11th March 2024 Written Statements

[The Minister for Trade Policy (Greg Hands)]

The fourth round of United Kingdom-Israel Free Trade Agreement (FTA) negotiations took place virtually between 19 and 29 February 2024.

During this round, officials held technical text-based discussions across 12 policy areas in 26 sessions. The negotiations focused particularly on services, which are not covered by our existing agreement, and important given the UK is the world’s second largest exporter of services.

These negotiations reflect our shared commitment to working towards a comprehensive deal and strengthen our existing trade relationship, worth £6.4 billion in Q3 of 2023. A cutting-edge agreement with provisions covering services, innovation and digital trade would complement both our economies.

A fifth round of negotiations will take place in due course.

The UK will maintain its long-standing foreign policy positions in this FTA, including with respect to the internationally recognised borders of Israel; and will continue to exclude illegal settlements to ensure nothing in this FTA undermines the viability of a two-state solution.

The Government remain clear that any deal we sign, including with Israel, will be in the best interests of the British people and the United Kingdom economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the NHS, and the services it provides, is not on the table.

The Government will continue to work closely with Israel and will keep Parliament updated as these negotiations progress.

[HCWS325]

Business and Trade

Greg Hands Excerpts

Monday 11th March 2024 Ministerial Corrections

[Sir John Whittingdale]

On Tuesday, in my capacity as trade envoy, I attended the Korean embassy for the signing of a memorandum of understanding on the joint development of a small modular nuclear reactor—just one area in which the business between our two countries is growing ever stronger. Will my right hon. Friend press ahead with the enhanced free trade agreement, which will offer huge opportunities to build on the existing £17 billion trade relationship?

[Greg Hands]

My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 71% of our services trade with Korea last year was delivered digitally.

[Official Report, 7 March 2024, Vol. 746, c. 950.]

Letter of correction from the Minister for Trade Policy, the right hon. Member for Chelsea and Fulham (Greg Hands):

An error has been identified in the response given to my right hon. Friend the Member for Maldon (Sir John Whittingdale) in Business and Trade questions. The reply should have been:

[Greg Hands]

My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 79% of our services trade with Korea in 2021 was delivered digitally.

Oral Answers to Questions

Greg Hands Excerpts

Thursday 7th March 2024 Commons Chamber

[Andrew Rosindell (Romford) (Con)]

5. What steps she is taking to increase trade with Commonwealth countries.

[The Minister for Trade Policy (Greg Hands)]

The United Kingdom has trade deals with 33 Commonwealth countries, and our new developing countries trading scheme offers more generous tariffs, rules of origin and trading conditions to developing countries, including 19 Commonwealth countries. The UK-Australia FTA has seen sharp rises in many UK export sectors, including furniture tripling year on year and car exports doubling. Meanwhile, of the 11 parties to the comprehensive and progressive agreement for trans-Pacific partnership, six are Commonwealth countries, and that agreement gives us new or improved access to those important markets.

[Andrew Rosindell]

Mr Speaker, I know that you will be celebrating Commonwealth day on Monday with the raising of the Commonwealth flag. Will the Minister take this opportunity to expand our trading relations with the Commonwealth and look at the idea of an opt-in, opt-out WTO-style organisation involving all Commonwealth countries? Surely this is a great opportunity to expand our trade with some of the world’s emerging economic powerhouses.

[Greg Hands]

I thank my hon. Friend for that question and his commitment to the Commonwealth. As a constituency MP with a huge Commonwealth diaspora in Chelsea and Fulham, I totally understand his sympathies and look forward to celebrating Commonwealth day with him and others next week. He knows that the Commonwealth does not make trade rules, nor is it a trade agreement body like the Gulf Co-operation Council, the European Free Trade Association or the CPTPP. We think that the better course at present is to ratify our CPTPP membership and continue to have reduced tariffs under our developing countries trading scheme. However, we are always open to new ideas at the Department for Business and Trade and I am happy to meet my hon. Friend to discuss this further.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for a positive response. The Commonwealth is important for all of us. The value of UK exports to the Commonwealth increased by 23% in cash terms between 2021 and 2022, while the value of imports from the Commonwealth increased by some 30%. We can clearly benefit each other. How can we ensure that Northern Ireland companies benefit fully from this enhanced trading partnership?

[Greg Hands]

Of course, Northern Ireland benefits from all our free trade agreements. I very much look forward to putting the case for Northern Irish goods and services in the months ahead. We have economic partnership agreements with 27 Commonwealth countries. We also have the Commonwealth Heads of Government meeting in October to look forward to, where we can ensure that the export of Northern Irish goods and services, as well as those from the whole of the UK, takes centre stage.

--- Later in debate ---

[Sir John Whittingdale (Maldon) (Con)]

8. What recent progress she has made on negotiating a free trade agreement with South Korea.

[The Minister for Trade Policy (Greg Hands)]

We have excellent relations with South Korea, as my right hon. Friend will know as the Prime Minister’s trade envoy there. Bilateral trade totalled £16 billion in the 12 months to September 2023. Negotiations to upgrade our FTA with South Korea were launched as part of President Yoon’s state visit in November. Round 1 of the talks has already taken place, and round 2 will take place later this month here in London.

[Sir John Whittingdale]

On Tuesday, in my capacity as trade envoy, I attended the Korean embassy for the signing of a memorandum of understanding on the joint development of a small modular nuclear reactor—just one area in which the business between our two countries is growing ever stronger. Will my right hon. Friend press ahead with the enhanced free trade agreement, which will offer huge opportunities to build on the existing £17 billion trade relationship?

[Greg Hands]

My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 71% of our services trade with Korea last year was delivered digitally. We need to upgrade the deal to make sure that it reflects modern, digital trade as well. Both countries are making good progress in the negotiations.

[Mr Laurence Robertson (Tewkesbury) (Con)]

9. What steps she is taking to increase trade with Zimbabwe. [R]

[The Minister for Trade Policy (Greg Hands)]

The Government were pleased that my hon. Friend, who is the Prime Minister’s trade envoy to Angola, Zambia and Ethiopia, and members of the Westminster Africa Business Group visited Zimbabwe on the group’s inaugural trade mission. That is part of the Government’s work to promote opportunities for UK companies, particularly in critical minerals, renewable energy and sustainable agriculture.

[Mr Robertson]

I am grateful to the Minister for that response. On my visit to Zimbabwe in January, I met the President and a number of other Ministers. They made it very clear that they wanted to draw a line under the past, move forward and increase friendship—and, indeed, trade links—with this country. What more can the Government do to enlighten companies and businesses in the UK about the many opportunities in Zimbabwe?

[Greg Hands]

I thank my hon. Friend for his report and letter to me all about that. I am pleased with the high-level meetings he had on his recent visit and a lot of the media coverage. Our embassy is following up by preparing for the Zimbabwe international trade fair in April, and it is expecting a strong UK presence. My hon. Friend’s return visit in April will be a perfect chance to progress the deals that we have and boost British investment for this year and beyond.

[Daniel Zeichner (Cambridge) (Lab)]

10. What steps she is taking to ensure future trade agreements include environmental protections.

[The Minister for Trade Policy (Greg Hands)]

The Government are committed to pursuing environmental provisions in our trade agreements and to using our multilateral trade policy, diplomatic efforts and trade promotion activity, all of which support our green objectives.

[Daniel Zeichner]

The Government boast about the trade deals they have done and the environmental protections they have secured, so presumably they have had the chance to analyse the impact. Will the Minister tell the House whether the deals secured so far have improved or degraded our environment? What lessons have been learned for negotiating future deals?

[Greg Hands]

The hon. Gentleman raises an interesting point. Many of the agreements have actually, for the first time, included environmental provisions. If I recall correctly, he did not like the Australia trade deal, but it is the first time Australia has committed in a trade agreement to the Paris agreement and so on. When it comes to the impact of our trading policy over the last 14 years, he will also find, for example, that 86% of UK imports of palm oil—a key interest for environmentalists—are certified as sustainable, up from 16% in 2010. Again, we are seeing real results of UK trade policy moving in a much more environmentally friendly direction.

[Munira Wilson (Twickenham) (LD)]

11. If she will make an assessment with the Secretary of State for Education on the potential merits of introducing a right to paid employment leave for kinship carers.

--- Later in debate ---

[Andrew Rosindell (Romford) (Con)]

T5. As chair of the British-Switzerland all-party parliamentary group, I am delighted to commend the Government on the forthcoming new trade agreement with Switzerland, but will the Secretary of State please update the House on progress? Particularly, will she tell us which of the 20-plus working groups the Government intend to prioritise as part of the negotiations?

[The Minister for Trade Policy (Greg Hands)]

I thank my hon. Friend, who is a leading member of the British-Switzerland APPG, for his interest. Both the Secretary of State and I met the Swiss Trade Minister in Abu Dhabi last week. The trade talks are progressing well. We are seeking high-ambition outcomes in all areas, including services and investment, mobility, digital, and the environment, which are not covered by our existing FTA. In short, there are a large number of high-priority areas for us, building on the agreement that we did on financial services in Bern at the end of last year, to ensure that this UK-Switzerland FTA really takes forward the bilateral trade relationship. The fourth round of negotiations is taking place in Bern this week.

[Marsha De Cordova (Battersea) (Lab)]

T3. We know the impact that mandatory pay gap reporting can have on tackling low pay and in-work poverty, but little progress is being made on tackling the disability pay gap, which is higher now than it was a decade ago, with disabled people earning on average £3,400 less—effectively working for 47 days for free. When will the Government introduce mandatory disability pay gap reporting, and what steps is the Secretary of State taking to close the gap?

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

I understand that another round of negotiations is about to start in India on our long-promised trade deal. The original proposal was to complete the trade deal by Diwali. This year, Diwali is on 1 November, so will the Secretary of State give us an update on negotiations and agree that we should conclude the deal by 1 November?

[Greg Hands]

I thank my hon. Friend for that question and for his continual interest in us getting a high-quality trade deal with India, for which he has long been a passionate advocate. Of course, the most important thing is what is in the deal, rather than the date that it is delivered. We remain in round 14 and we recently welcomed Government of India negotiators to London. The prize remains large—with tariffs as high as 150% for whisky and 125% for autos—and we want to ensure that we get our key service sectors able to export into a market of 1.4 billion people.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

--- Later in debate ---

[Martin Vickers (Cleethorpes) (Con)]

As the trade envoy to the western Balkans, the issue of Government-to-Government agreements is raised with me frequently. There is no doubt that if they were available, more deals could be done with the Balkan countries. Will the Minister give an update on the Government’s position, please?

[Greg Hands]

I thank my hon. Friend, in particular for his brilliant work as a trade envoy. He covers more markets than any of our other trade envoys with great skill and dexterity. Back in 2017, this Department and I were pioneers in putting in place a G-to-G agreement with Peru for the UK to be the delivery partner for the 2019 Pan American games. A great deal of business with and in Peru has resulted since. We remain open to future G-to-G agreements on a case-by-case basis. I am happy to meet him to discuss what specific things he has in mind that would work in the western Balkans.

[Stephen Kinnock (Aberavon) (Lab)]

I have repeatedly asked Ministers whether any strings were attached to the £500 million of taxpayers’ money that was given to Tata Steel, particularly with regard to job guarantees. I have not had a straight answer, so I will try again today. Can the Secretary of State please confirm whether any conditionality was attached to the £500 million, or did the Government simply buy Tata Steel’s bluff about closure, and give it £500 million so that we could make 2,800 people redundant?