CPTPP: Conclusion of Negotiations

Lord Fox Excerpts

Wednesday 19th April 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for his point, and I thank all noble Lords who have raised similar questions about countries potentially joining the CPTPP. As he will understand, it would be totally inappropriate for me to comment on that, since we have not even joined. I say again that I encourage all countries that fulfil the liberal free trade obligations and criteria to look to the CPTPP as a beacon of free trade and economic prosperity. However, I would not like to comment at this stage.

[Lord Fox (LD)]

The Minister has reeled off some really impressive growth figures, and I am sure he would acknowledge that one of the main drivers of that growth is the proximity of many of those countries to China. I would like him to comment on the observation that with or without China’s accession to this treaty, our accession to it subtly changes, whether implicitly or explicitly, our relationship with China. Also, what advice is his department giving to businesses when they are sourcing large proportions of their supply chain in China?

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Lord, Lord Fox, for his interventions. There may be some confusion; there is not a preclusion of doing business with China now that we are acceding to join the CPTPP. This is an enhanced trade agreement that will allow us, as my namesake Prime Minister said, to have our cake and eat it in the relationships that we can have with all Asian countries. As for the advice we are giving to businesses, the Department for Business and Trade employs many hundreds of people around the world and in this country, as well as many hundreds of export champions, to encourage businesses to export to these countries. There is no length to which we should not go in order to assist our businesses and to signpost them. The very fact that we are having this debate on this important free trade accession will, I hope, raise the salience of exporting, as I have mentioned in earlier comments. I do not necessarily see enough businesses in this country taking the risk, challenge or opportunity of exporting. I hope that, if we raise the salience of exporting, that in itself will help, as people see the opportunities that are presented to them.