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

Tanmanjeet Singh Dhesi Excerpts

Committee stage
Tuesday 20th February 2024 Public Bill Committees

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee Room and will be circulated to Members by email.

We will now begin line-by-line consideration of the Bill. The selection and grouping list for today’s sittings is available in the room. It shows how the clauses and selected amendments have been grouped together for debate. Amendments grouped together are generally on the same or a similar issue. Please note that decisions on amendments do not take place in the order in which they are debated, but in the order in which they appear on the amendment paper. The selection and grouping list shows the order of debates. Decisions on each amendment and on whether each clause should stand part of the Bill are taken when we come to the relevant clause.

A Member who has put their name to the leading amendment in the group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments in that group by standing in the normal fashion. A Member may speak more than once in a single debate. At the end of a debate on a group of amendments, I shall call the Member who moved the leading amendment again. Before they sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision. If any Member wishes to press any other amendment in a group to a vote, they will need to let me know in advance.

Clause 1

Meaning of the “CPTPP”

Question proposed, That the clause stand part of the Bill.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies.

As we commence examination of the comprehensive and progressive agreement for trans-Pacific partnership, or CPTPP, the Labour party is sharply focused on its wide-ranging implications for the United Kingdom. Our commitment transcends merely increasing trade volumes; it extends to enhancing the welfare of our industries and to improving the wellbeing of our citizens, pivotal to safeguarding our nation’s interests.

Despite the insights provided during previous debates in the Chamber by Government Members, who championed the agreement as a gateway to market access and economic prosperity, we observe a disconnect in our approaches towards trade, in particular regarding its broader societal and economic repercussions. The CPTPP introduces extensive modifications in key areas such as procurement, intellectual property and the regulation of conformity assessment bodies. However, the Government’s depiction seems to gloss over the profound and complex impacts of those provisions. Our steadfast dedication to promoting trade development is matched by our resolve to maintain high environmental standards, to protect workers’ rights and to uphold the sovereignty of our legal and regulatory frameworks.

In addressing clause 1, it is pivotal to reference the discourse from the Minister for Trade Policy and the Secretary of State for Business and Trade, the right hon. Member for Saffron Walden (Kemi Badenoch), who in the Chamber espoused the agreement as a beacon for market access and economic opportunity. However, that optimistic portrayal does not encapsulate the nuanced and potentially adverse socioeconomic and environmental consequences. The Office for Budget Responsibility’s adjustment of the GDP boost projection to a mere 0.06% necessitates an exhaustive assessment of its tangible benefits, directly conflicting with the Government’s depiction of substantial gain. That projection is a stark downgrade from the initial Government claim of a 0.08% GDP boost over 10 years, now halved to a mere 0.04% in the long run. The Trades Union Congress emphasises that CPTPP could

“significantly threatens workers’ rights, regulatory standards…and democratic decision making”,

providing a stark contrast to the Government’s optimistic economic forecast.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

As members of this Committee, we have been lucky enough to have had the Business and Trade Committee publish its report on the UK’s accession to CPTPP. In that, one of the explicit recommendations—it would be good to hear from the Minister whether he will accept it—is that the Government should

“provide a revised impact assessment, setting out its current expectations of the gains from CPTPP”.

The report goes on to say that the Department should

“explain what steps it is going to take to help ensure that UK business exploits the treaty to the full.”

My hon. Friend is right to say that the Secretary of State was trying to run away from the estimates of the little, albeit important none the less, benefits that might accrue from CPTPP, so why should we not have that revised impact assessment now if Ministers think that it will lead to a huge increase in benefits for the UK?

[Mr Dhesi]

I thank my hon. Friend the shadow Minister, who speaks with a great deal of knowledge and experience of the issue, having been involved in various meetings. I fully agree with him: we need transparency. We need that impact assessment, and I do not understand why the Government are stepping back from that. Indeed, the clause compels us to dissect the real economic benefit of joining the CPTPP, challenging the buoyant economic forecast.

Clause 2 looks at parliamentary approval and democratic oversight. The proposed Labour amendments carve a pathway towards safeguarding our national interest. In advocating for parliamentary approval of regulations under the clause, we underscore our dedication—

[The Chair]

Order. We are not yet discussing clause 2; there will be time enough to come on to that. We are discussing clause 1, which is about the definition and the meaning.

[Mr Dhesi]

Thank you, Mr Davies, for that clarification.

[Gareth Thomas]

This is probably one of those rare occasions when we are actually fortunate to have the hon. Member for Totnes on the Committee with us, because he is a member of the Business and Trade Committee, which brought out the report this week. As I understand it, he was one of those who supported the idea that the Government should provide a revised impact assessment. One can only hope that he will have the courage of his convictions to speak in this stand part debate to underline why he thinks that the Government should provide the revised impact assessment. I hope that my hon. Friend the Member for Slough will join me in encouraging him to have the courage of his convictions and speak.

[Mr Dhesi]

I thank my hon. Friend the shadow Minister again for his intervention. Indeed, my hon. Friend the Member for Totnes was kind enough to intervene on me in the Chamber on Second Reading, and no doubt he will be contributing on the need for an impact assessment and requesting that the Minister and the Government follow that course of action.

As I was saying on clauses 1 and 2, there are certain intertwined aspects of what we are discussing today that must be brought out, including the fact that we must ensure that Parliament remains committed to rigorous scrutiny and transparency when it comes to regulatory changes. Our concerns on this clause extend to intellectual property rights under the CPTPP and the controversial investor-state dispute settlement—ISDS —mechanism.

We remain particularly concerned about the inclusion of provisions for ISDS and its implications for the NHS, the environment and workers’ rights. We are concerned about how this provision in particular could increase the risks that this association brings to jobs, workers’ rights and sovereignty. Transform Trade, for example, has highlighted that restrictions on farmers’ rights to seeds under the CPTPP could severely impact biodiversity and the livelihoods of small-scale farmers, contradicting the UK’s commitments under international agreements such as the Paris climate agreement and the sustainable development goals.

[Gareth Thomas]

My hon. Friend is setting out nicely the series of concerns that we in the Opposition have, which it would be good to hear the Minister address when he winds up the debate. One of the particular questions related to ISDS, which it would be good to hear the Minister deal with early in his response, is why Ministers, on the one hand, have supported ISDS staying in the CPTPP treaty, but were actively trying to have it excluded from the bilateral free trade agreement with Canada, before those negotiations were collapsed by the Secretary of State.

[Mr Dhesi]

My hon. Friend the shadow Minister makes an excellent point. It is these anomalies that are of concern, and the more we delve into the inclusion of ISDS in the agreement, the more we recognise the fact that it poses a formidable challenge to our national sovereignty and regulatory autonomy, enabling corporations to sue Governments over policies designed to protect public health, the environment and social welfare.

My hon. Friend the shadow Minister highlighted the issues around Canada, and indeed, in our recent meeting with the Minister and the lead negotiator for Canada, we looked at various aspects. I know that the trade deal with Canada has itself now arrived at a very rocky and bumpy interval, given the fact that we have now stopped—or paused, as the Minister would like to convince us— those negotiations, but these aspects, such as why it is one rule regarding the CPTPP and another regarding our negotiations with Canada, are things that need to be clarified during the deliberations today in Committee.

That is why, while I know that we will be discussing ISDS in full detail later on, it is important that the Minister provides the answers on that. Market analysis has shown instances where corporations have leveraged ISDS to challenge essential socioeconomic reforms, which underscores the mechanism’s potential to undermine democratic governance and public policy. Therefore, this particular amendment is pivotal, embodying our commitment to transparency and ensuring that regulatory changes introduced by the CPTPP are subject to rigorous parliamentary scrutiny.

[Gareth Thomas]

I am grateful to my hon. Friend for giving way—again; it is early in the morning. One of the concerns, surely, about the Government’s insistence that ISDS should stay part of the CPTPP treaty that we are acceding to, is the inconsistency with the approach taken to ISDS by other parts of Government, such as by Ministers in the Department for Energy Security and Net Zero. The Minister will remember his experience there and the energy charter treaty in particular. Britain has paused its use of the energy charter treaty, because of widespread concerns internationally about the use of ISDS provisions. As I understand it, Ministers have also acknowledged the risk of ISDS to the Paris agreement objectives. That therefore begs the question posed by my hon. Friend even more so: why are Ministers so adamant that we as a country should support ISDS—

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[Mr Dhesi]

I thank my hon. Friend for his intervention, because it seems as if we are in almost telepathic agreement: that was the very thing that I was coming on to in a short while. He firmly and eloquently made various points about the anomalies to which I hope the Minister will provide answers. Our concerns extend to intellectual property rights under the CPTPP and the controversial ISDS mechanism.

Transform Trade has highlighted the CPTPP’s adherence to the 1991 international convention for the protection of new varieties of plants. The agreement severely restricts farmers’ rights to save, exchange and use seeds, potentially impacting on biodiversity and the livelihoods of small-scale farmers. That restriction stands in stark contrast to the UK’s obligations under the Paris climate agreement, referenced by my hon. Friend the Member for Harrow West—the shadow Minister—and the sustainable development goals that are aimed at promoting sustainable agriculture and protecting biodiversity.

Furthermore, the inclusion of ISDS in the CPTPP poses a significant challenge to our national sovereignty and regulatory autonomy. The mechanism allows corporations to sue Governments for enacting policies intended to safeguard public health, the environment and social welfare. The Trade Justice Movement has pointed out cases in which corporations have used ISDS to contest socioeconomic reforms vital to public wellbeing, thereby threatening democratic governance and public policy-making processes.

Additionally, the CPTPP’s potential to remove tariffs on palm oil without regard to the environmental consequences of the palm oil trade exacerbates concerns about deforestation and its cascading effects on climate change and wildlife. Nearly 90% of global palm oil production occurs in Malaysia and Indonesia, where deforestation attributed to agricultural expansion is a pressing environmental crisis. The deforestation contributes significantly to global carbon emissions, threatens indigenous wildlife such as orangutans and Sumatran tigers, and undermines the UK’s commitment to combating climate change and preserving biodiversity.

[Anthony Mangnall (Totnes) (Con)]

I am sorry for interrupting the hon. Gentleman, but this debate is about the clause and the meaning of “CPTPP”. Will he tell us whether he is going to agree or disagree with that meaning, so that we may move on to other clauses?

[Mr Dhesi]

I thank the hon. Gentleman, my hon. friend from Totnes, but patience is a virtue. As I said in my introduction, during our deliberations it is important that we look at the multifaceted nature of what is going on, including with regard to the definition. However, I am glad that he has come to life, and I look forward to hearing from him very soon about the impact assessment nature of the Bill.

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[The Chair]

Order. Before the hon. Member for Slough resumes, I should say that I have given him a great deal of latitude so far, but he is in danger of covering all his new clauses and amendments in his opening speech. I do not know whether that is what he is planning—not to speak to any of the amendments but just to cover them off at the beginning—but I am not prepared to let that happen. The amendments and new clauses are down in a specific order, and the hon. Gentleman or his colleague will be able to speak to them at the relevant time. We do not need to rehearse what will be debated later on.

I also do not want to get into a rehash of a Second Reading debate. I have given the hon. Gentleman a lot of latitude, but I urge him to stick to clause 1, rather than giving us advance notice of all the future amendments and new clauses that he might wish to move at a later date.

[Mr Dhesi]

Mr Davies, I thank your good self for your sage advice. This is all important, as I am setting the scene with regard to clause 1 and the Labour party’s perspective on what is happening under the Bill. That is why I was setting the scene. Later in the debate, I will delve into great detail; I do intend to speak, with your permission, on subsequent clauses. I will be contributing in detail, but I think that it was important for me to set out the scene at the very beginning.

Another reason is that the Trade Justice Movement and Transform Trade have urged careful consideration of the environmental implications, advocating for trade policies that align with the UK’s international commitments to environmental conservation and sustainable development. Labour’s amendments—in due course, Mr Davies—are a vision for equitable trade.

In conclusion, it is important to note that the Labour party’s stance on the CPTPP is founded on a principled approach to trade policy that prioritises collective wellbeing over narrow economic interests. Our amendments, which we will debate, reflect a comprehensive strategy to ensure that trade serves as a force for good, enhancing our national and global standing without sacrificing our core values and commitments.

As we contemplate the future of UK trade policy, let us be guided by the vision of fairness, sustainability and inclusivity. The Labour party calls for a cautious and considered approach to the CPTPP, and advocates for trade policies that benefit the many. In doing so, we champion a future where the UK not only engages with the world but leads by example in establishing fair, equitable and sustainable trade relations.

[Gareth Thomas]

I am grateful to you, Mr Davies, for calling me, and for the opportunity to serve again under your chairmanship. I have noted your advice—or instruction —not to go into the detail of the amendments, but I do wish to ask a number of questions of the Minister to help to guide the points that I will make on some of those measures further down the selection list.

One concern raised on Second Reading was about the collapse of the bilateral talks with Canada. That specific issue is perhaps not directly germane to this Bill, but it raises the question of whether relations with the Canadians have been affected by the collapse of those talks such that Canada may not want to ratify Britain’s accession to CPTPP. It would be good to hear from the Minister how he sees the progress among other countries of accepting that accession. I say in passing that we have still not had a clear explanation of the timing of the decision by the Secretary of State to collapse talks with Canada, given that we are still some two months away from the deadline to negotiate a rollover of the EU cumulation rules of origin that were so important for British manufacturing, notably cars.

Also on Second Reading, we heard the Secretary of State querying her own Department’s figures about the 0.08% lift to economic growth after 10 years, which was downgraded to just 0.04% by the Office for Budget Responsibility. I take the opportunity again to underline the recommendation of the Business and Trade Committee in its report this week for the Department to bring out a revised impact assessment. It also called for an urgent debate on the benefits—or not—of acceding to CPTPP. If Ministers were willing to support such a debate, it would be good to have that impact assessment brought out urgently. As I said, I hope that the hon. Member for Totnes, who is a member of the Committee, does not resile from those recommendations.

Given that, sadly, our country is now in recession after mismanagement by the Conservative party, and given that exports are set to rise by just 0.1% on average over the next three years, any increase in the modest gains that CPTPP is currently set to offer will be very welcome. However, as part of the discussion about our accession to CPTPP, I want to take the Minister back to debates we had some three years ago on the Trade Act 2021, when he was adamant that there should be no improvement in the scrutiny processes available for the discussion of trade treaties. He will be aware of the concerns raised by a series of organisations—from trade unions all the way through to the slightly less left-wing, one would suggest, noble Lord Frost—about the lack of scrutiny for trade treaties, notably CPTPP. It would be good to hear how the Minister thinks scrutiny of the impact of CPTPP could be improved even a little.

[Mr Dhesi]

As my hon. Friend is delving into the issue of workers’ rights, does he share my concern that the Trades Union Congress has voiced significant anxieties regarding the impact of the CPTPP on workers’ rights, particularly in sectors vulnerable to increased exports from countries where labour standards may be compromised to lower production costs? Does he agree that that could potentially threaten the livelihoods of British workers and undercut our domestic industries?

[Gareth Thomas]

My hon. Friend is absolutely right. I hope that we will get on to some of the concerns that the TUC has raised about labour standards, which I think would be in order during a later debate on clause 3. It would be good to hear whether the Minister shares any of the concerns of the TUC, which has often struggled somewhat to get a hearing with Ministers. I believe that the situation has improved a little recently, but it was certainly pretty grim when the right hon. Member for South West Norfolk (Elizabeth Truss) was Secretary of State for International Trade.

In his opening remarks, my hon. Friend the Member for Slough rightly drew attention to concerns about ISDS, and I will touch on those a little. Concerns were also raised about issues to do with performers’ rights. I accept that there is an opportunity to go into detail about some of those concerns during debates on clause 5, but I wish to ask the Minister a couple of questions, which I hope will inform better the debate on performers’ rights in clause 5.

Concerns were raised on Second Reading about environmental and animal welfare issues. Again, there will be an opportunity to talk about some of those a little later. One issue that there might not be such a good opportunity to discuss later, which I gently suggest is appropriate for this clause 1 stand part debate, is the question of future membership of CPTPP. One of my excellent staff discovered an article that the Minister wrote on 24 November 2022, where he hints at the United States rejoining CPTPP. That could have huge implications for the use of ISDS and animal welfare and environmental concerns, and would probably make a nonsense of the current impact assessment, so that is all the more reason for a revised impact assessment to be made.

[Gareth Thomas]

I am grateful to my hon. Friend, who is absolutely right to raise those concerns. I hope to touch on them in this clause 1 stand part debate, but I do not want to upset the Chair by delving into too much detail. But the RSPCA has raised concerns about the lack of explicit language on animal welfare in CPTPP. It has drawn the Committee’s attention to that and has raised a series of concerns around eggs, pig meat, chickens, animal health and genetically-engineered products. Will the Minister respond to the concerns of the RSPCA, which is in order in these debates? It would be good to hear the Minister respond to the concerns of an organisation as reputable as the RSPCA.

[Mr Dhesi]

My hon. Friend the shadow Minister has spoken up about the USA, but does he agree with me that during the previous debate we did not get clarification from the Government regarding the potential membership of China? We need to determine, within our definitions, the Government’s stance on the potential membership of China.

[Gareth Thomas]

I am grateful to my hon. Friend for raising that issue. I explored whether there was any way to table an amendment that might allow us to probe the Minister about not just China but any new country acceding to CPTPP. Unfortunately, it did not appear to be appropriate or in order to table such an amendment in Committee, but I hope to revisit the issue on Report—indeed, I understand that it was discussed on Report in the Lords.

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[The Minister for Trade Policy (Greg Hands)]

May I welcome you to the Chair, Mr Davies, and welcome all members to this Committee for line-by-line consideration of this important Bill? Over 40 extraordinary minutes, we have heard an attempt by the Labour Front Bench to reopen the Second Reading debate, but I will try to answer the questions put to me.

Clause 1 is a non-controversial clause that defines the terms used in the Bill. “The CPTPP” means the comprehensive and progressive agreement for trans-Pacific partnership signed at Santiago on 8 March 2018, including the UK accession protocol as it has effect in the United Kingdom from time to time. “The UK accession protocol” means the protocol on the accession of the United Kingdom of Great Britain and Northern Ireland to the CPTPP, signed at Auckland and Bandar Seri Begawan on 16 July 2023.

We heard on Second Reading that the official Labour party position is to support the accession of the United Kingdom to the CPTPP, but over the past 40 minutes we have heard a series of speeches that give the opposite impression. That is often the case in today’s Labour party: there is a diktat from the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) up above, but below him something different is done, particularly by Members who were active when the right hon. Member for Islington North (Jeremy Corbyn) was the party leader. The hon. Member for Harrow West reminded us of his time on the Trade Bill Committee, when he was opposed to all UK trade agreements. Without myself embarking on a Second Reading speech, I wonder how much of that dichotomy is still there in today’s Labour party.

[Mr Dhesi]

I caution the Minister that there is no dichotomy here. As we said in the Chamber on Second Reading, although we are in favour of acceding to the CPTPP, the job of His Majesty’s Opposition is to go through the Bill line by line and point out the various anomalies, issues and concerns—not just our own, but those of movements including the Trades Union Congress and other voluntary and civil society organisations. Otherwise, we would be heading towards another car crash. Given that the governing party has managed to crash the economy, does the Minister agree that we need safeguards from the Opposition?

[Greg Hands]

I thank the hon. Gentleman for drawing attention to the fact that this is all about line-by-line scrutiny. I certainly welcome that, if it is indeed the approach that he will be taking. None the less, I feel that I should answer the questions that he and the hon. Member for Harrow West have raised.

Having been an Opposition Front-Bench spokesperson myself, I should point out that the way a Bill Committee generally works is that Members table amendments about things they wish to speak about, rather than seeking on clause 1 to shoehorn in all kinds of additional questions and issues on which they have not tabled amendments. The Labour party has been in opposition for some time now—close to 14 years—and one might have thought that it would have learned some lessons about how to be a more effective Opposition. None the less, I will respond to the questions in the spirit in which they were asked.

The first question was about Canada. Of course, the hon. Member for Harrow West was a frequent rebel when it came to the UK and EU trade agreement with Canada, so he has a bit of form here. He said that there is an important roll-over of the rules of origin, and he is absolutely right, but what he did not tell us is that he opposed those rules of origin in the first place when the comprehensive economic and trade agreement was passed in this very Committee Room seven years ago. It is a bit rich for him now to say that something is important today when he was one of a small minority of Labour Front Benchers who opposed it.

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[Gareth Thomas]

Clause 2 is about the treatment of conformity assessment bodies, and who certificates or provides assurance that products meet necessary regulatory requirements. Testing, certification and inspection are all conformity assessment procedures, usually carried out by third-party organisations called conformity assessment bodies. At the moment, our legislation requires there to be based in Great Britain, or in a country with whom the UK has a mutual recognition agreement, conformity assessment bodies that carry out those processes for goods and services sold in the UK. Under article 8.6 of the CPTPP treaty, conformity assessment bodies established in the territories of CPTPP parties are to be treated no less favourably than conformity assessment bodies located domestically.

The Opposition accept that the UK will have to amend its legislation to allow conformity assessment bodies established in other CPTPP countries to apply for approval and accreditation for the Great Britain market. That is clearly not the case in Northern Ireland, where, under the Windsor framework, EU rules around conformity assessment bodies still apply. It would be good to hear from the Minister how the approval and accreditation process for conformity assessment bodies established, for example, in Canada, Malaysia, Japan or Brunei for the British market might work in practice.

Many conformity assessment bodies are very well established, particularly those in the UK. None the less, I gently suggest that there is a need for better consultation about future approval of conformity assessment bodies that might operate in other CPTPP countries, but want to operate within our markets. There is also a need for a stronger role for Parliament in general, specifically around conformity assessment of new technologies such as artificial intelligence.

Amendment 1 would make the negative procedure a positive one, to make a debate more likely. Amendment 2 would require more consultation with Scottish and Welsh Ministers, with Northern Ireland and with representatives of the English regions, before regulations are introduced. Let me explain why the amendments could usefully be made to the Bill; I will give an example from another regime that demonstrates why conformity assessment bodies are likely to be needed for artificial intelligence and why, therefore, my amendments on such bodies from CPTPP countries being registered here in the UK are appropriate.

Current EU rules appear to require conformity assessments for high-risk artificial intelligence systems that cover machinery, radio equipment, toys, civil aviation, medical devices, cars, railway applications and appliances burning gaseous earth fuels. Surely we would want to know that conformity assessment bodies approving high-risk artificial intelligence systems know what they are doing when they operate in the UK. To ensure that they do—certainly until the technology is well established and its risks and benefits are well understood—there ought to be wide consultation and significant parliamentary debate whenever a new artificial intelligence conformity assessment body seeks accreditation in the UK, given the potential security issues around artificial intelligence. That seems even more important given the potential for new applicant countries to join the CPTPP. As I understand it, China is well advanced in artificial intelligence development, as is the US. Can the Minister set out what discussions Ministers have had about the possibility of new artificial intelligence conformity assessment bodies emerging from other CPTPP countries wanting accreditation to operate in Great Britain?

I certainly would not want to hold back the development of artificial intelligence in any way, given its exciting potential to transform our country and others for the better. It enables the simulation of human-like intelligence to make decisions, solve problems and analyse information, among other things. It allows various applications such as voice recognition, image creation and autonomous vehicles. As I hope I have hinted at, it has the potential to revolutionise industries from healthcare to finance by automating tasks, imparting efficiency and enabling all sorts of new capabilities. It is quite clear that more and more businesses are looking at artificial intelligence options to see whether there is potential for their operations to improve their products and services and help with cost reduction, revenue growth and so on.

At the moment, artificial intelligence regulation is relatively limited, but there is an active and growing debate about how and when to regulate artificial intelligence and how to go about that process. There are active debates in the EU and China, as I hinted at, as well as in Canada and Brazil, along with the other example I gave earlier in the US. In the EU, for example, conformity assessments of AI products or services are defined as the process of verifying and/or demonstrating that a high-risk system complies with certain requirements, such as good risk management, good data governance, good technical documentation, proper human oversight, accuracy, robustness, good cyber-security and good record keeping. CPTPP evolves, so it is surely possible that artificial intelligence conformity assessment bodies will be established in other CPTPP member states, and will want approval and accreditation to operate in our markets.

Lawyers are beginning to look at these issues in detail. For example, one anticipated that the focus will be on testing such systems for bias and discriminatory or disparate impacts. The conformity assessments might in some cases just mean an internal assessment, but in other cases might require an assessment conducted by an independent third party, which would then issue a certificate to confirm the artificial intelligence system’s compliance. In short, that third party would be a conformity assessment body.

As artificial intelligence is such a new and innovative product or service, the way in which particularly high- risk forms of artificial intelligence are regulated may vary from one country to the next. Therefore, the way that conformity assessment bodies operate—what they expect of artificial intelligence firms—may differ widely too. There is surely a more active role for Parliament than the Bill currently envisages to consider directly whether each artificial intelligence conformity assessment body meets the standards that we and our constituents would expect.

[Mr Dhesi]

My hon. Friend the shadow Minister is making a very important point. Given the profound impact that artificial intelligence will have on all our lives, it is important that we are a beacon for its regulation around the world. Does he agree that we cannot merely leave it to Ministers to administer AI regulation? There must be a comprehensive role for Parliament, which is why amendment 1, which seeks to insert

“approval by resolution of each House of Parliament”,

is so incredibly important.

[Gareth Thomas]

I am grateful to my hon. Friend for his support. I am sure that in the years to come there will be a considerable amount of debate in Parliament on both the potential for artificial intelligence, and where and when regulation of AI is required. To be fair to the Minister, the negative resolution process currently in the Bill does give Parliament some role, but I think a more active role for Parliament is required, particularly as this exciting and new—but potentially risky in some circumstances—technology is developed.

Given the important role that conformity assessment bodies for other products and services play in keeping us safe, conformity assessment bodies for artificial intelligence are likely to have a very important role in the future. We need to ensure that the way in which CPTPP is affected by artificial intelligence, in terms of its impact on the UK, is fit for purpose going forward. I know that the Minister is an enthusiast for not having much scrutiny of trade treaties, so there are likely to be relatively few opportunities to return to this CPTPP legislation and the conformity assessment bodies section within. Let us take the opportunity in this Committee to look to the future and recognise both the benefits and the risks of artificial intelligence. Let us also recognise that one way to ensure additional safety is by ensuring more parliamentary scrutiny of new conformity assessment bodies from CPTPP member countries that might operate here in the UK.

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Amendments 1 and 2 are also an opportunity to put right some of the scrutiny problems going forward. I say in passing that the Public Administration and Constitutional Affairs Committee strongly advocated for reform of the CRaG process and for a much more active role for Parliament. We do not have the opportunity here to implement that Committee’s recommendations, in its very interesting report, “Parliamentary Scrutiny of International Agreements in the 21st century”, which came out at the end of January, but we do have the opportunity to address, in a small way, concerns about a lack of scrutiny and consultation through these two Opposition amendments.

[Mr Dhesi]

I want to dwell on this point, because the Labour party believes firmly in devolution. Amendment 2 would require consultation with other, devolved Governments and with our Metro Mayors, because we need to harness the talent and potential from across our United Kingdom—whether in regulation or conformity, particularly with respect to artificial intelligence—rather than being more Whitehall-centric. Does my hon. Friend therefore agree that amendment 2 is particularly important?

[Gareth Thomas]

I am grateful to my hon. Friend for his intervention, and he is absolutely right. It is striking that the Scottish Government and the Welsh Government’s submissions on CPTPP raised concerns about scrutiny and consultation. For example, the Scottish Government’s written evidence noted

“the continued lack of data disaggregation for Scotland”

in the Government’s assessment of the benefits of CPTPP. They noted that

“an estimate of long-run changes to Scotland’s Gross-Value Added was provided,”

but that

“specific impacts according to sector, region and protected group within Scotland were not included in the assessments and so potentially significant impacts could have been missed.”

I would not want to suggest that our amendments will solve all those problems, but if they begin to embed better consultation with the Scottish Government, the Welsh Government, Northern Ireland and the English regions even a little bit, then I gently suggest that that can only be to the good.

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Crucially, once ratified, the CPTPP agreement will remove import tariffs on palm oil, irrespective of its environmental credentials. That action risks contradicting commitments made by the Government under schedule 17 of the Environment Act 2021 to tackle illegal deforestation in UK supply chains and is irresponsible without the safeguards of the due diligence secondary legislation. In the House of Lords, the Government said they would introduce the due diligence secondary legislation in spring 2024. That remains vague. Can the Minister give further clarification on the timeline for this urgent legislation? Environmentalists are calling for that secondary legislation to be introduced as soon as possible. On behalf of the Government, Lord Johnson also committed to a monitoring report after two years and a comprehensive evaluation of the agreement after five, which will include an assessment of the environmental impacts of the CPTPP trade deal. Our amendment seeks to make the review after three years, rather than five, which is more timely

[Mr Dhesi]

My hon. Friend makes a powerful point about deforestation and environmental consequences. She might also be aware of Transform Trade’s analysis of the restriction of farmers’ rights to seeds, which underlines the CPTPP’s potential to come into conflict with the UK’s environmental and sustainability goals. There are fears, for example, that the mandatory adoption of the international convention for the protection of new varieties of plants 1991 by CPTPP signatories could severely affect biodiversity and undermine small-scale farming, contradicting commitments under international agreements such as the Paris agreement and the sustainable development goals. Does my hon. Friend agree that it is important both to protect farmers’ rights and to promote agricultural biodiversity?

[Samantha Dixon]

Absolutely. I thank my hon. Friend for his intervention. He makes an important point, which underlines why the review needs to be timely. Lord Johnson said in the other place that he would be surprised if the evaluation and monitoring reports did not cover information on environmental standards, reduction of the risk of deforestation and many other areas. However, we need more clarity on that point. Specifically, what will the Government include in the reviews?

The review should consider how CPTPP membership has affected the sustainable production of forest risk commodities, including palm oil, within the UK supply chain. Further, the review specifically needs to investigate the impact of membership on deforestation. The Government have yet to outline the details of how they will progress. They have promised to involve conservation experts, but how will that work?

I hope that the Government will engage with expert environmentalists, such as Chester zoo in my constituency, which has been at the forefront of championing sustainable palm oil, both in the UK and in Malaysia, throughout the environmental impact evaluation process from its planning stages to giving evidence. I will take the opportunity to thank Chester zoo for all its work on conservation, biodiversity and environmental issues. Indeed, it is thanks to its hard work, along with Ferrero, that Chester became the first sustainable palm oil city in the UK in 2019, sourcing its palm oil entirely from sustainable sources.

Working with Chester zoo, the international company Ferrero, which for 70 years has made products such as Nutella, Kinder chocolate and Thorntons—as well as what is believed to be the ambassadorial favourite, Ferrero Rocher—was one of the first global companies to source 100% responsible, sustainable, certified and segregated palm oil, and has been recognised by the WWF as the No. 1 manufacturer for sustainable palm oil. Ferrero not only uses sustainable palm oil itself but encourages its use by others. In partnership with Chester zoo through its sustainable palm oil communities project and the SPO education programme, Ferrero helps to educate communities and schools on the role of sustainable palm oil. I thank Ferrero for all it does to raise awareness and bring others along the sustainable palm oil journey.

The Government have not set out what they expect to happen once the review has been completed. Will they commit to a regular review of the environmental impact of the trade deal to ensure that it aligns with our global obligations, such as the targets set under the global biodiversity framework, long into the future? Finally, and more widely on the review, it is important that the Government commit to parliamentary oversight of its findings. Where will the review be published and what level of scrutiny will be enabled? Those details are all missing from the Government’s reassurances so far; clarifications are much needed, hence our new clause.

Looking forward, I know that Chester zoo and others would like to see the Government working to link preferential trade tariffs to sustainable practices. A good example is the free trade agreement between the European Free Trade Association and Indonesia signed in 2021, which included a commitment that palm and other vegetable oils that have been produced protecting primary forests, peatlands and related ecosystems will get preferential market access. This initiative is clearly possible, and something that future trade deals should consider within the primary agreement.

The CPTPP is a great opportunity for the UK to take a position on actively promoting the use of sustainable palm oil and other environmental issues. The agreement will increase UK influence in the region, so we must ensure that we bring it to bear on all these vital issues. I commend the new clause to the Committee.

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[Anna McMorrin]

My hon. Friend makes some very important points, and I hope the Minister will directly address them.

We need to ensure there are safeguards, and that environmental targets and improvement plans are there to be looked at and addressed. We need those safeguards in the form of impact assessments. We need to make sure that environmental standards are there for the produce that we import within this CPTPP agreement, and that rewards and incentives to encourage destructive practices are not there. We need a level playing field for British farmers, organisations and companies—that are already producing to higher standards, and that are on the path to much more sustainable farming. We need to make sure those practices are not undermined.

I hope the Minister will respond to those points, and that he will vote for this new clause to make sure those standards are upheld and that this trade deal is in line with COP26 and the Government’s very own objectives and initiatives.

[Mr Dhesi]

As we unpack the CPTPP, a nuanced landscape emerges—especially when considering its impact on the Government’s procurement, employment and industry sectors. Our amendments aim to safeguard issues raised by the likes of the TUC and the NFU, ensuring a balanced approach to procurement that benefits our local economies and upholds sustainability.

Reflecting on the Government’s ambitious projections, compared to the stark realities presented by recent analyses, the anticipated benefits of the CPTPP for the UK might not be as significant as initially claimed. It was initially touted as delivering a substantial boost to our economy, but revised forecasts have tempered those expectations significantly, as I set out at the outset, underscoring the need for a more grounded and critical examination of the agreement. Government procurement is pivotal, as it may alter fundamentally the UK’s procurement landscape, possibly exposing local markets to increased international competition.

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[Gareth Thomas]

Does my hon. Friend remember that once upon a time, one of the Prime Ministers not so long ago—I think his name was Boris Johnson—backed the idea that we should buy British? However, we have not heard anything recently about that concept. Certainly, the approach in the CPTPP—the lack of an enforceable labour standards provision, for example—suggests that Ministers have given up on the noble ambition of encouraging state bodies to buy British.

[Mr Dhesi]

My hon. Friend makes the point more eloquently than I would have done. It is pertinent to note the contributions of previous Conservative Prime Ministers that have not materialised. That is why the CPTPP must serve as a catalyst for positive economic contribution, reflecting a steadfast commitment to the values of fairness and sustainability.

The potential of the agreement to reshape the competitive landscape, particularly highlighted earlier by the implications of clause 2 for conformity assessment bodies, warrants meticulous scrutiny. The demand for detailed impact assessments on employment and industry underscores our deep comprehension of the stakes involved. Our policies must safeguard critical sectors, such as automotive manufacturing, and maintain job security and fair labour practices to foster a resilient economy ready for future challenges.

The automotive sector, which is a cornerstone of British manufacturing, faces potential challenges from the increased market access and competition brought about by the CPTPP. The Society of Motor Manufacturers and Traders has highlighted the significant contribution of the automotive industry to the UK economy, emphasising the need for trade agreements to support the growth and stability of the sector. Ensuring that the CPTPP does not disadvantage the sector is paramount in preserving the livelihoods that it supports.

[Gareth Thomas]

My hon. Friend is surely right to raise the concerns of the automotive sector. In particular, Ministers have failed to protect it from the loss of EU cumulation rights and rules of origin in access to Canada from 1 April. That potentially puts at risk some of the £750 million market for British cars, such has been the failure of the Secretary of State and the Minister present.

[Mr Dhesi]

My hon. Friend makes an excellent point. The British people were promised bright sunlit uplands. We were promised lots of things but, whether it is the automotive industries, our fishermen or our farmers, there are complaints galore because people feel heavily let down by this Government’s performance. That is why the emphasis on fair labour practices within the context of CPTPP is crucial. The UK’s commitment to upholding high labour standards should not be compromised by international trade agreements.

Labour rights and protections are fundamental to ensuring that the economic benefits of trade are equitably distributed, and that workers are not left vulnerable to the pressures of global competition, which is in line with Labour’s new deal for working people. We advocate for a trade environment that prioritises the protection and enhancement of workers’ rights across all sectors. That initiative aims to ensure that the prosperity derived from international trade agreements, like the CPTPP, directly contributes to improving the working conditions, pay and security of British workers, embodying the principle that fair trade must also mean fair work. In essence, as we navigate the implications of the CPTPP for employment and industry, a balanced approach that protects British jobs and industries, while embracing the opportunities of global trade, is essential.

[Anna McMorrin]

My hon. Friend is making excellent points. Does he agree that this trade agreement is essential in transitioning to a green economy and in working with partner countries to make that transition in the automotive sector, for example? In order to do that in the right way, we need to ensure that those environmental safeguards are put in place, otherwise we risk the destruction of our automotive workforce in this country.

[Mr Dhesi]

My hon. Friend makes that point powerfully, and it is essential that those considerations are put forward by the Minister in his response. Those issues around procurement and the impact on our British industries are extremely important. The broad reach of the CPTPP, encompassing countries with diverse labour practices, demands a firm commitment to enforceable labour protections. We cannot leave the door open for a race to the bottom in labour rights. The absence of a dedicated clause on labour rights is a glaring omission, reflecting the Conservatives’ faltering commitment to protecting labour rights in international treaties and highlighting the urgent need for the CPTPP to embody our shared values of fairness and ethical trade practices.

[Matt Rodda]

I congratulate my hon. Friend on an excellent speech in which he is highlighting a number of weaknesses in the Government’s approach. Does he agree that his points are particularly relevant, given that we have just entered a recession, and that many working people and small businesses are under increasing pressure from not just the cost of living crisis but wider economic pressure as the economy contracts? I have a number of small businesses and working people in my constituency who have raised deep concerns with me recently. Does my hon. Friend agree that the Government need to be doing more at this critical time?

[Mr Dhesi]

I thank my hon. Friend for that excellent intervention. The Opposition are extremely concerned, whether it is about our economy going into recession, or the cost of living crisis or the various other forms of malaise that affect our society. We do not want any arrangement with the CPTPP, particularly regarding procurement, that impacts more negatively than what is already going on.