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

Debate between Tanmanjeet Singh Dhesi and Anthony Mangnall

Committee stage
Tuesday 20th February 2024 Public Bill Committees

[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.

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

Debate between Tanmanjeet Singh Dhesi and Anthony Mangnall

2nd reading
Monday 29th January 2024 Commons Chamber

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

It is an honour and privilege to close today’s enthralling debate on behalf of His Majesty’s official Opposition. Tonight, as we consider Second Reading of this important Bill, it is essential to balance our support for it with a critical eye. Labour supports CPTPP accession, albeit with reservations, and this Government are known to promise “oven-ready” deals that often break more ground in rhetoric than in reality. The Labour party recognises the UK’s untapped trade potential, and is committed to harnessing it. However, we must acknowledge the Government’s over-estimation of the CPTPP benefits. Initially they suggested a 0.08% GDP boost over 10 years, but recent forecasts have downgraded that to a mere 0.04% in the long run. To ensure that trade is a force for good, we must subject such deals to rigorous scrutiny, and commit to progress on climate change, human rights, and labour conditions globally.

As hon. Members have stated, the devil is indeed in the detail. The failure to deliver on manifesto commitments, including agreements with India and the US, highlights the need for a realistic evaluation of CPTPP’s benefits. As illustrated by the hon. Member for Totnes (Anthony Mangnall), there is no denying the importance of closer ties with Indo-Pacific allies, especially in these uncertain times. However, although CPTPP offers trade advantages such as rules of origin provisions and potential for improved terms, grand Government claims of “unparalleled opportunities” and “glittering” post-Brexit prizes must be substantiated and grounded. It is my duty to ensure not just that the skeleton of the deal accedes, but that British business thrives as a result.

In his excellent speech, my hon. Friend the Member for Harrow West (Gareth Thomas) highlighted the concerns of our creative industries, and the hon. Members for Chesham and Amersham (Sarah Green) and for Somerton and Frome (Sarah Dyke) explained concerns surrounding farming and China. Considering that we already have free trade agreements with nine CPTPP members, the immediate benefits of formally joining the CPTPP might seem limited. The Government’s projection of a mere 0.06% boost to the UK’s GDP from CPTPP calls for a measured evaluation of its actual economic impact. This deal puts us at the heart of a dynamic group of economies, but it is crucial that we do not stop pushing for more ambitious growth. We do not have that privilege after 14 long years of Conservative rule.

Our stagnated economy needs a much needed boost. Indeed, in the last 10 years, Britain has had the second worst export record in the G7. That is why change is necessary.

Having spoken to British exporters in my constituency and across our country, I know that the challenges they face post Brexit are substantial, and increased barriers, red tape and bureaucracy have been a significant hindrance. The Bill must be part of a larger strategy to revitalise our global trade presence, yet Labour sees untapped potential here.

For example, we recognise the immense contribution that small and medium-sized businesses make to our economy, with a £2.4 trillion contribution and employment for 16.7 million people. However, the Government’s approach to supporting those enterprises in expanding their export potential lacks clear strategic direction and coherence. Labour’s plan for small businesses aims to address those gaps, ensuring that SMEs have the necessary support and framework to flourish in international markets. The CPTPP symbolises international co-operation and unlocks untapped SME potential, with around 375,000 UK SMEs not currently engaged in international trade representing a £290 billion export opportunity. There is indeed untapped potential waiting to be harnessed. The Bill also highlights the regulatory burdens faced by businesses, and we must reduce the complex web of regulations. It further lowers tariffs to enhance market access and choice for businesses sourcing from CPTPP countries, potentially benefiting consumers. However, it is important to note that that may expose some UK businesses to increased competition from CPTPP exporters.

Let us look more closely at the impact than at the wording of this deal. As my right hon. Friend the Member for Hayes and Harlington (John McDonnell) eloquently explained, the inclusion of investor state dispute settlement mechanisms in the CPTPP raises grave concerns about the influence of foreign investors. We must scrutinise those provisions to protect our sovereignty and democratic principles.

Our commitment to environmental stewardship is critical. The World Wildlife Fund has expressed concerns about the CPTPP’s impact on deforestation, particularly palm oil, which could conflict with our commitments in the Environment Act 2021. We must ensure that our trade policies align with robust environmental protection. It is essential that our trade deals do not undermine our efforts to combat the climate crisis. The Government’s optimistic portrayal of the CPTPP must be balanced against a history of over-promising and under-delivering in trade deals. Figures from the respected independent Office for Budget Responsibility suggest that the CPTPP might contribute only a marginal 0.04% to our GDP.

The Government hail the CPTPP as a transformative deal and a potential panacea for our post-Brexit trade woes, but let us be clear that while they paint a rosy picture of economic prosperity, the empirical evidence suggests otherwise, as was excellently elaborated on by the Chair of the Business and Trade Committee, my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne). We were promised sunlit uplands post Brexit, yet here we are squinting to see the benefits through a fog of uncertainty.

[Anthony Mangnall]

That is not empirical evidence. A forecast is not empirical fact—it is a forecast—and these are modelling exercises by their very nature. I challenge the hon. Member to give me proof from any trade agreement, with the value at the beginning versus what it was at the five-year mark and the 10-year mark. Nearly every trade agreement, whether signed by the European Union, the UK or the Americans, has always been undervalued because the emphasis is on businesses and communities taking advantage of it.

[Mr Dhesi]

I thank the hon. Member for that intervention. Just as the Government’s aspirations go by those figures, we must likewise respect the figures of the Office for Budget Responsibility, as it is a lot more rigorous in its exercise. We cannot discard its figures; indeed, we must dwell on them as the wider British industry and the economy look closely at those figures. They are the best figures we have, rather than anything that the Government or anybody else have put on the table.

It crucial to acknowledge the broader context of the UK’s export performance. In recent years, we have seen a concerning decline in our export capabilities, raising questions about how effectively the CPTPP can reverse the trend. The Bill must be part of a larger strategy to revitalise our global trade presence and not be just a stand-alone solution. The deal was negotiated by the party that has hiked trade barriers, crashed our economy, driven up food prices, engaged in damaging megaphone diplomacy, increased bureaucracy for our businesses trading internationally, and much worse besides. In contrast, Labour’s objective is to increase trade and international co-operation, and we will be closely watching the execution of this deal.

The Government have repeatedly failed on their promises on the international stage. We support international trade and global co-operation, but that must translate into tangible benefits for British jobs, consumers and our overall global economic prosperity. That trade also cannot come at the cost of our moral and ethical commitment to, for example, human rights, labour rights, food standards and the environment. Labour’s approach to the CPTPP will be one of cautious optimism, balanced by a realistic assessment of its potential impact on our national interests.

As we edge closer to a much awaited election that will help to put the British public out of their misery, the Labour party stands as the true party of business and trade, advocating for agreements that genuinely benefit the UK’s economy. We support the CPTPP but remain vigilant about ensuring that it aligns with our vision of a thriving, globally competitive Britain. We are committed to a future where Great Britain not only engages with the world but leads in a fair, equitable and profitable trade relationship with our partners around the world.