Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Margaret Ferrier Excerpts

Thursday 24th June 2021 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

UK membership of the CPTPP would be a significant achievement for post-Brexit trade and open up a major export market for exporters in Scotland and across the UK, presuming that it does not lead to a decline in the high standards for goods and services that we currently possess and does not undercut our industries with lower-quality goods. In 2019, UK exports of goods and services to the signatory nations of the agreement amounted to £58 billion, or 8.4% of all UK exports. In the light of the ongoing Brexit-related trade disruption, engagement with this market is especially crucial in opening up new markets and diversifying our trade.

However, it is essential not to forget some of the possible costs of entry into the agreement and to ensure that as we sign these important trade deals we do not compromise our high standards of food safety, animal welfare and environmental protection. The farming industry has been keen to emphasise that unshackled trade with countries that have lower standards on agricultural produce poses a real threat to the industry unless rules on standards are clearly enforced on imports. In February, Mark Williams, chief exec of the British Egg Industry Council, emphasised that a significant percentage of the cost of egg production in the UK comes from the high food standards expected of domestic producers via existing legislation. Without these standards being enforced on imports from countries that the UK has free trade agreements with, we could see our farmers substantially undercut by low-standard produce. Mexico, one of the signatories, is one of the world’s most significant egg producers, with some 160 million egg-layer birds kept mostly in cages, with no significant national hen welfare legislation.

Another matter the Government must consider carefully is the investor-state dispute settlement mechanism. In accordance with chapter 9, section B of the agreement, the UK Government would be required to accept an ISDS arbitration mechanism. Although some signatories of the agreement have won derogations from this rule via bilateral side instruments, the UK, according to many trade experts, including the UK Trade Policy Observatory at the University of Sussex, is unlikely to be able to secure for itself such a derogation as existing members are keen to ensure compliance with existing CPTPP rules.

Due to the catastrophe of Brexit, our exporters are being denied the unfettered access to the EU’s single market that they long enjoyed. For the Scottish and UK economy to prosper, we must continue to act to secure new markets for their trade, as I know the Secretary of State has been doing. However, the Government must take on board these serious concerns about our regulatory autonomy and food standards when seeking to gain access to these markets. Our industry and environment alike depend on it.