Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Marco Longhi Excerpts

Thursday 24th June 2021 Commons Chamber

[Elizabeth Truss]

The hon. Gentleman is absolutely right. The CPTPP enables us to have much deeper trading relationships, particularly in areas of UK strength such as digital, data and services, where there are very strong chapters on those issues.

The fact is that the likely benefits of joining the CPTPP are much greater as the economic centre of gravity shifts towards Asia and as more countries join the agreement. Joining this partnership will position us at the heart of the action in global trade. The CPTPP is exactly the kind of free trade area the UK wants to be part of: it is liberalising on tariffs and other trade barriers; it has high standards on labour and the environment; it is ambitious in digital and services; and it is tailor-made to help us to cement the UK’s status as a global hub for services, digital and advanced manufacturing. Our exporters will no longer have to pay tariffs on 99.9% of their goods, from Scotch whisky and Stoke-on-Trent ceramics to cars made in the north of England and the midlands. Our farmers will benefit from a strong appetite for beef and lamb in Asia, with CPTPP markets expected to account for a quarter of global meat demand by 2030. Our manufacturers will enjoy common standards and rules of origin, securing flexibility, reliability and lower prices on inputs.

[Marco Longhi (Dudley North) (Con)]

Does the Secretary of State agree that if British business is to invest it needs confidence, and that that confidence will come by restating our commitment to free trade by diversifying our trade offer, generating new jobs and bringing more stability to the jobs we already have?

[Elizabeth Truss]

My hon. Friend is absolutely right. A key benefit of the CPTPP is increased resilience. It means that our exporters will not have all their eggs in one basket. They will have options about where they send their goods. It will also mean our importers are able to rely on strong relationships in countries which follow the rules and have good standards in areas such as the environment and worker protection.

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[Emily Thornberry]

That is absolutely right. I saw an article in The Daily Telegraph this week by Jeremy Warner, which said, “It is vitally important that FTAs are pursued in a transparent and accountable manner that takes fully on board the interests, fears and concerns of domestic constituencies and affected sectors. The battle for free trade needs to be won as much at home as abroad.” That is why we need to know whether we will get a proper debate and votes in this place. The Secretary of State has said nothing about whether Parliament will get a vote either on the negotiating objectives or on a deal at the end of the day.

[Marco Longhi]

The shadow Secretary of State quotes articles. Does she agree with the article in the Socialist Worker that states that protectionism will not protect workers’ jobs?

[Emily Thornberry]

No.

Let us move on to New Zealand and Canada. Having seen what has happened with Australia, they will surely demand the same deal for their farmers as the price of support for UK accession to CPTPP. Handshake by handshake, the future of British farming will be sold.

The threat to our country’s interests lies not just in what the Secretary of State is willing to do, or in the interests that she is willing to sacrifice as the price of admission to the agreement, but in what will happen once we are in the door. That brings me to my next quote, which is typically pithy and to the point, from New Zealand’s Prime Minister Jacinda Ardern. She said that investor-state dispute settlement “is a dog”.

When she inherited the CPTPP negotiations at the last minute in 2017, the new New Zealand Prime Minister was willing to jeopardise the entire process to demand that New Zealand be exempted from the provisions on investor-state dispute settlement. She did not want the threat of lawsuits in the name of wealthy foreign corporations restricting her ability to introduce policies for the protection of consumers, workers, the environment and public health policy. For the same reason, we have had no IDS—or, rather, ISDS—[Interruption.] Well, it was a Freudian slip. That is why we have had no ISDS provisions in any of the post-Brexit trade agreements signed by the Government with 67 non-EU countries, with the European Union and with Australia. So when it comes to CPTPP, why are the Government not simply following New Zealand’s lead and demanding an exemption from the provisions on ISDS? Again, it goes back to the big decision taken by the Secretary of State that what matters most is not minimising the risks of this deal, maximising the opportunities and making it right for Britain, but simply getting it done as quickly as possible, even if that means selling out our farming industry and exposing our country to the risks of ISDS.

It is apparently okay, though, because in respect of all of those risks the Government simply assert that we have nothing to fear. We have the same assurances with respect to food safety, online harms, patent laws, procurement rules, data protection, medicine prices, intellectual property and our NHS, and that is all without mentioning the 22 suspended provisions in the agreement, which the strategy document simply ignores. We are simply told that none of those provisions will be a problem for the UK and that we should trust the Government—we should trust the Government to protect our interests, even though they cannot tell us how. Instead of exemptions, we are reliant on assertions. Instead of amendments they offer us assurances. I respectfully say to the Secretary of State that we have had enough of the Government’s assurances when it comes to negotiations on trade, the Northern Ireland protocol, non-tariff barriers with Europe, and the betrayal of our fishing industry, our farming industry and our steel industry. We have had enough of being told by them just to take their word for it and everything will turn out fine and all our interests will be protected.

The reason this matters so much is because it is this Secretary of State who stands personally accused of saying one thing to the British farming industry and another for the sake of CPTPP. If she is willing to break her promises to the farming community that she represents, why would not she do the same to the health service on which we all depend? That is why, while the Labour party remains committed to the possibilities that joining the CPTPP offers, we will continue to demand a fresh approach to the accession process, starting with proper protection for our farmers and food standards, total exemption from the provisions on ISDS, and a complete carve-out for our national health service, patient data included.

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[Dr Liam Fox (North Somerset) (Con)]

It seems a long time since 18 July 2018, when I first announced to the House that we were beginning the public consultation phase that would inevitably lead to where we are today, so I congratulate the Secretary of State and her Ministers on getting us to this point so expeditiously, and I thank all those at the DIT who have done so much to get us into this position, particularly Crawford Falconer and John Alty, who is to stand down as permanent secretary. I wish him all the best and give him my very grateful thanks for all the work he has done.

Especially in the light of the speech by the shadow Secretary of State against international trade, it is right to say why we believe in free trade. We believe in free trade because it allows countries to use comparative advantage within an international rules-based system for the benefit of their own people and those outside their own borders. It is essential for developing countries to be able to trade their way out of poverty in the long term, and the rise of non-tariff barriers among the world’s richest countries over the past decade is a disgrace that we should hear a lot more about.

As I have said before, in Q1 of 2009, only 0.7% of all the G20’s imports were covered by restrictive measures; it is now 10.3%. That is putting an almost insurmountable barrier particularly to small and medium-sized enterprises in developing countries. We need to get a grip on that because whatever we talk about in the aid debate we are counterbalancing in the restrictions that we are putting on in the trade debate. If we want to have a morally consistent policy on development, we need to deal with both sides of the equation.

Free trade is also about consumers. I want the incomes of working families in Britain to go further. I want them to have greater choice, and for them to be given greater information about the products that they buy so that they can decide for themselves how to spend their money, not so that the Government can determine what choices they can and cannot make. It is essential that we say that, because some people even in my own party seem to have forgotten why free trade is so important.

[Marco Longhi]

Does my right hon. Friend agree that consumers will therefore have cheaper access to white vans and St George’s flags, which particularly our self-employed make use of in the construction industry?

[Dr Fox]

I cannot think what my hon. Friend is alluding to, but it is certainly true that consumers will have access to far greater choice. Look at the range of consumer goods that we have—all sorts of white goods, not just vans. Look at the quality of what we have in terms of household appliances. They are cheaper and better quality, and they have a greater technology than they would otherwise. That is what free trade means. The trouble with free trade is that its benefits are very widely spread to consumers, whereas any difficulties to producers tend to fall on very narrow sectors and are therefore used politically by the Opposition to promote their anti-trade policies.