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

Lord Hamilton of Epsom Excerpts

Report stage
Tuesday 16th January 2024 Lords Chamber

[Lord Hamilton of Epsom (Con)]

My Lords, I received the email from the noble Lord, Lord Alton, trying to persuade me to support the amendment, and I must say that I am very reluctant to do so. The fact is that all trade agreements are a compromise. That is one reason why there is no veto in Parliament over a trade agreement—you would start to unpick the whole thing if Parliament objected to some aspect of a trade agreement —and there is no reason why we should want to change that now.

The other point is that the real prize for the CPTPP would be not the membership of China but the membership of the United States. It is clear that neither country wants to join at the moment, for particular reasons, but the agreement is going to last a very long time, and there may well come a moment when things change in China and the threat of China joining might well force the United States to join in order to keep China out. So we do not want to tie any Government’s hands on this in any way. We have to bear in mind that if the United States was to join the CPTPP, it really would become a massive trading bloc, and that prize would be well worth achieving.

[Lord Lansley (Con)]

My Lords, while I have enormous sympathy with the purpose of the amendment moved by the noble Lord, Lord Alton, he has explained perfectly clearly that the CPTPP members would all have to agree not just that China would join the CPTPP but that a negotiation with China would be entered into. The benchmarks against which that would be measured are laid out in an annexe to the CPTPP, and there is a great distance between where China is today and the benchmarks that would have to be met, so I see no immediate process for that.

The terms of the amendment, in creating a different legal process for the accession of one potential applicant economy as compared with any other applicant economy, represent an unwelcome position for us to have taken. It might be construed as unwelcome in other countries as well; it seems to me that it would set a bad precedent. The question that would be put to the Government is what position we should take as to whether a commission should be established to look at an aspirant economy, and the United Kingdom Government could take a position on that. While I join my noble friend in resisting the amendment, it would be helpful if he could say that there was nothing to stop the Government from potentially laying a Statement under CRaG for that purpose and asking the relevant committees to comment on it.

That would not enable Parliament to veto it—indeed, a veto would be unwelcome at that stage because it would be a decision whether or not to enter into a negotiation—but, as in other cases, the Government would be well advised to take full account of what Parliament might say in relation to any such notification and any such report by the International Agreements Committee here and the Business and Trade Committee in the other place. I wonder whether my noble friend might suggest that, if there were such a potential decision to be made by the UK Government, they could go through that process and it would be perfectly reasonable for them to do so.