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

Sarah Green Excerpts

2nd reading
Monday 29th January 2024 Commons Chamber

[Sarah Green (Chesham and Amersham) (LD)]

I rise to broadly welcome the UK’s accession to the CPTPP. The Liberal Democrats support efforts that create opportunities for British firms around the world, not just in the here and now, but in years to come. However, the reality is that the immediate benefits of the CPTPP will be a drop in the ocean. Given that the UK has, or is about to have, trade agreements with all but two countries that are currently part of the CPTPP, it is perhaps not surprising that analysis suggests that the immediate benefits will be limited and that the Government’s own projections show that the economic impact will be minimal.

I will address three particular areas. The first relates to the fears of our farming community, which have been mentioned. The National Farmers Union is concerned about the lack of core standards for food imports. As colleagues in the other place have noted, when it comes to the CPTPP, those concerns are not so much about the protection of UK standards but about the standards in other countries, which could undermine and undercut UK businesses through imports. In particular, UK farmers producing eggs, pork and beef are potentially vulnerable to imports produced using practices that are banned in the UK. I can therefore understand the concern of the farming community, which is proud of the UK’s high animal welfare standards in food production and worries about being undercut by lower-standard imports from elsewhere. I also understand why consumers will be worried about food produced to lower standards reaching their local supermarket. My Liberal Democrat colleagues and I are keen to avoid a race to the bottom, and to ensure that our animal welfare standards are not diminished as part of any trade agreement.

The second issue relates to our creative industries, which are worried about proposed changes to copyright law. The UK has one of the best intellectual property regimes in the world. It is therefore understandable that the businesses and creators that depend on strong IP rights, and that play a vital role in our economy, want assurances from the Government that the UK’s accession to the CPTPP will not have an adverse impact on them. Like others, the Alliance for Intellectual Property has raised a number of concerns, noting the lack of reciprocity in the Bill in relation to copyright law, particularly on performers’ rights. If I have understood correctly, the Bill would extend payment rights, or equitable remuneration, to foreign artists who perform in the UK, without ensuring reciprocal arrangements for UK artists who perform in those countries. That seems perverse. It would be good to know what impact assessment, if any, has been done on that area. I would welcome clarification from the Minister in his closing remarks.

The third area relates to the accession of other countries. The benefits of the CPTPP may in fact come as other countries with which we do not currently enjoy trade agreements join. However, it would be remiss of me not to mention concerns, which we have already heard, about the potential accession of China. My noble Friend Lord Purvis outlined in the other place the reason a debate about China is so important. He said that it is

“not just the scale of the UK’s trade with China but how resilient we are in relation to it.”

Our trade in goods with China is currently at a £40 billion deficit. That is the largest deficit with a single country in our nation’s history. As Lord Purvis pointed out:

“The shipping of goods from China, which we depend on for our consumers, comes through the very area where we have deployed military assets”—[Official Report, House of Lords, 16 January 2024; Vol. 835, c. 337-38.]

in recent weeks. It is in our geopolitical and strategic trading interests that Parliament devotes time to debating our relationship with China. I hope that the Government will make the most of the UK’s place in the CPTPP to protect the interests of our allies in the region, and human rights, from China’s actions.

I will finish by reiterating a plea that I have made previously, and which other hon. Members have made in the debate, about the need for greater parliamentary scrutiny of all free trade agreements. We are debating the Bill because primary legislation is required for the UK to be compliant with the CPTPP when it enters into force. In the past, the Government have committed to giving Parliament greater scrutiny of free trade agreements but then reneged on it. They broke their commitment to giving Parliament a vote on the Australia trade deal, for example, which had terrible consequences for British farmers. The fact that we are having this debate today is welcome, but I leave Ministers with the message that it should not be the exception to the rule.

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

Sarah Green Excerpts

Report stage
Tuesday 19th March 2024 Commons Chamber

[Anthony Mangnall]

Forgive me if it sounds trite to say that I worry about mission creep, but if we did that on this, might we not also do it for the World Health Organisation, or for any other body that might be under suspicion of having some adverse state actor involved in it? I worry about how we go about this. I worry about Parliament always trying to have a say and slowing the process of how our trade agreements are signed and ratified. We need to be efficient and quick in the way we do it, but we must also ensure that we have the opportunity for debate, as we have today in this debate on the merits of the three chapters in the Bill.

I want to end with a parting shot. As has been mentioned by the Chair of the Business and Trade Committee, the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), we were told that we would have the opportunity to debate the full 30 chapters of the CPTPP within CRaG, and it is disappointing that we do not have that. The Government—the Secretary of State and the Minister—have done an amazing job in engaging with the Committee, but this is a serious disappointment. It lessens the progress that has been made to date on signing new trade agreements and ensuring that this place has a say on our future.

[Sarah Green (Chesham and Amersham) (LD)]

I stand to speak to new clause 12, which stands in my name, and also to new clauses 11 and 13. I would like to begin by stating once again that the Liberal Democrats want to see an ambitious trade policy aimed at creating opportunities for British firms around the world and new jobs here in our country. The Bill and our accession to the CPTPP are a step in that direction. The point has been well made, in this House and in the other place, that the projections in the Government’s own impact assessment are for GDP growth of just 0.06% by 2040, so although the UK’s accession to the trading bloc can and should be welcomed, the cause for celebration is limited.

I would like to speak to three new clauses that aim to address some key issues with the Bill and the UK’s accession. New clause 12 would require the Government to publish an assessment of the impact of the CPTPP’s performers’ rights provisions. We know the worries of our creative industries surrounding the Bill. The lack of reciprocal agreements for UK artists in CPTPP countries leaves our creatives exposed. The UK is rightly proud of our world-leading creative industries and we should also be proud of a world-leading intellectual property regime. We must be sure that this Bill and this trade deal do nothing to jeopardise that. There is a need for clarity and certainty in this area, and that is why I tabled new clause 12, which I hope Members will support.

New clause 13 would require the Government to conduct a review examining how the implementation of the treaty affects the costs faced by exporting and importing businesses in the UK. That report would have to consider the existing costs that those businesses were already facing as a result of trade regulations. We know that the stated ambition of the Government is that the deal will minimise red tape and trade regulations when trading with other CPTPP countries, which is a welcome goal. However, the British Chambers of Commerce has found that almost two fifths of businesses list regulations and red tape as a significant barrier to exporting. We need to be assured that our businesses will be supported to trade and flourish. With that in mind, it will be worth while, after our accession, to take the time to assess how the deal and the wider trade regulation landscape are affecting British businesses. That is the purpose of new clause 13.

It is clear that the CPTPP will likely grow over time as new countries join and accede to the deal, which will bring new opportunities but may also pose risks. The potential accession of China is one example, and the concerns regarding that possibility have been well discussed by colleagues in this Chamber and the other place. New clause 11 would require the Government to provide an impact assessment on the accession of countries that have made, and will make, a formal request to join the CPTPP. This will allow us to have a clear and informed vision of what the accession of each new country would mean for the UK. I believe this would be a reasonable and common-sense measure.

I finish by echoing what has already been said about parliamentary scrutiny. It is welcome that we are having this debate today but, in reality, we are debating a very limited and narrow Bill. We need proper parliamentary scrutiny of trade deals, and I ask the Government to ensure that it happens in future.

[John McDonnell]

I congratulate my hon. Friend the Member for Kingswood (Damien Egan) on his excellent speech. He mentioned that he has been elected at the tail-end of a Government and that an election is coming soon. I reassure him that the diligence he has already demonstrated in this House and his constituency should secure his re-election. It is wonderful to hear a Member speaking for a constituency with its accent.

I will address amendment 2 and new clause 8, although I support virtually every amendment that has been tabled, which shows the weakness of the process by which we have examined this treaty. I have been involved in discussions with the Secretary of State and the Minister over a number of months on ISDS, and I am concerned about the contradiction between their refusal to secure a side letter with regard to this treaty and what happened with regard to Australia and New Zealand. The negotiating brief for the Canadian free trade agreement also had a specific remit to prevent an ISDS process. I have never got to the bottom of that contradiction.

Amendment 2 follows our lengthy debate about the scrutiny of treaties. I have not given notice to the hon. Member for Hazel Grove (Mr Wragg) that I will be referring to him in the Chamber, although I am not sure that we have to give notice ahead of praising, rather than criticising, another Member. I am a member of the Public Administration and Constitutional Affairs Committee, which he chairs, and he has become the 21st-century Walter Bagehot, with a solid mixture of Trollope. He steered our discussions on the formal process for examining treaties with immense skill, drawing on a range of evidence that led to consensus—there is almost consensus in the Chamber at the moment—and this is what our report says:

“CRAG has been an insufficient legislative tool to facilitate meaningful Parliamentary scrutiny of treaties… the current legislation provides only a passive role for Parliament and as such there is no opportunity for Parliament to express its explicit approval or disapproval of a treaty.”

That is a common theme of all the debates. We have to do better than this.

Having read the report, the worry is that the Government have not responded positively by trying to get some order, particularly on the early negotiating processes and the debates that should take place. The Committee’s general view on this treaty, like the others, is that Parliament has been largely bypassed. We were offered no say on the Government’s negotiating objectives at the earliest stage, which is important, and no oversight of the negotiations as they progressed. Now we are refused a vote on the final terms of accession. This is not acceptable as a democratic process. The formal CRaG period, under which we can nominally have a say on the agreement, concludes this Friday, after a 21-day period. We are offered no vote or even a debate on the substantive terms of the CPTPP during this period, and accession is likely to receive our consent without any of us being given a single vote.

As I mentioned to the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), I have tabled a prayer to try to secure a time extension to enable the Government to bring forward time for a debate. My view is exactly the same as his: we are debating a narrow, technical, implementing Bill and that is no substitute for a confirmatory debate and vote on the accession itself. I agree with the Chair of the Business and Trade Committee, who has raised this issue with the Government in correspondence over the past two weeks. It is preposterous for the Government then to say with a straight face that there is not parliamentary time to have such a debate, given our current sitting arrangements. Those who have been here for as long as me, or perhaps even longer, will know that there has not been a problem on parliamentary time in the past, as we have simply found the time and sat and gone through the business when it is so important.

My amendment 2 seeks to address that wrong by formalising a requirement for the Government to ask for Parliament’s consent for the UK’s accession to the CPTPP. That is a basic democratic point of principle. If the Government do not accept that, I come back to the urgings of Members from across the House and say that I hope the Government will take seriously the recommendations of the PACAC report for reform of the process overall. We are dealing with an undemocratic structure. The PACAC report’s incredibly practical proposals are for a sifting process, a sifting Committee, the identification of treaties that require longer consideration and giving the House itself a proper process of democratic scrutiny and democratic decision.

I shall deal briefly with new clause 8, which stands in my name and deals with the labour chapter of the CPTPP. I have raised this issue before, and the point has been made by a number of colleagues, the TUC, in particular, and various other campaigning organisations throughout this ratification process. The labour provisions of the CPTPP are outdated and inadequate. This treaty will include a number of countries, some of which have been mentioned, with the prospect of others joining, where abuses of labour rights are widespread. Putting in place effective labour provisions is therefore vital in any treaty we undertake.

That view has been expressed across the House for a number of years now, but let me give some examples. In Brunei and Vietnam, independent trade unions are banned—they are not allowed legally to operate. In Malaysia, which has been mentioned in our previous debates, forced labour has been documented extensively. That issue has been raised in this House time and again.

In that context, it is crucial that the CPTPP’s labour provisions are readily enforceable and are linked to the removal of trade preferences, to ensure that membership does not lead to a race to the bottom on labour standards, exactly as the right hon. Gentleman said. I agree with him on the fear about China, because union colleagues of mine from Hong Kong, whom I have worked with for decades, are in prison at the moment purely and simply because they are trade unionists and have stood up for democratic rights.