The UK’s Relationship with the Pacific Alliance (International Relations Committee Report)

Viscount Trenchard Excerpts

Monday 1st February 2021 Grand Committee

[Viscount Trenchard (Con)]

My Lords, I thank my noble friend Lord Howell of Guildford for introducing this debate. I must admit that when I signed up to speak, I had mistakenly thought that we would be debating our imminent accession to the CPTPP, which should form an important pillar of the profile of global Britain as we renew and deepen our relationships around the world after leaving the EU. I must also admit that I was not aware of the existence of the Pacific Alliance and briefly contemplated withdrawing from the debate because, although I have spent many years living and working on the eastern shore of the Pacific and have visited California, British Columbia and Hawaii several times, I do not know the Latin American countries of that alliance at all. It is probably true that we hear much more about the Mercosur alliance than the Pacific Alliance, as the former’s total GDP is about 30% greater and, at $2.5 trillion annually, is approaching that of the UK.

However, having read the interesting report of the Select Committee I decided not to withdraw, not least because three of the four member countries of the Pacific Alliance are also members of the CPTPP. It is worth noting that of the other eight members of that organisation, only Japan and Vietnam are not members of the Commonwealth. Furthermore, the fourth country of the Pacific Alliance, Colombia, has given notification of its interest in joining the CPTPP. Of the six Commonwealth members that are already members of the CPTPP, Australia, Canada, New Zealand and Singapore are already associate members of the Pacific Alliance and therefore committed to enter into free trade agreements with it. Therefore, to maximise our influence in and the benefits we can gain from membership of the CPTPP, it seems logical that we should also seek associate membership of the Pacific Alliance and closer relationships with its members on a bilateral basis.

Two of the early continuity trade agreements to be negotiated were those with Chile, in January 2019, and with the Andean countries, which include Colombia and Peru, in August 2019. As your Lordships are well aware, we concluded a continuity trade agreement with Mexico just in time. However, in general, the Pacific Alliance members are not among those countries with which we have as many historical and trade links as others. Guyana is the only South American country which is a member of the Commonwealth.

The committee’s report noted that China is now the largest trade partner of Chile and Peru and is “extending its cultural diplomacy” throughout the region. It is very much in our interest that the UK, together with other democratic partners which practise rules-based free trade, should seek to balance that trend.

Lastly, the recent research paper by Robin Niblett of Chatham House underestimates global Britain’s capabilities. He does not say very much about Latin America but I do not think he is right to suggest that

“Britain will have to fight its way to the table on many of the most important transatlantic issues”.

His supposition that, even outside the EU, the UK Government

“will be better networked institutionally than almost any other country’s”

implies that the EU has added to our soft power around the world. During the years when I lived in Japan, I often attended meetings at the British embassy and at what was then called the Delegation of the European Communities in Tokyo. I am in no doubt that as the European legation grew in numbers and role, it became a competitor to the member states’ embassies. My experience has informed my view that the expansion of the EEAS has diminished slightly even the UK’s diplomatic influence overseas.

I welcome and support the Select Committee’s report’s conclusions, especially that the strengthening of the UK’s relationships with the Pacific Alliance countries, and with the organisation itself, will be invaluable as we negotiate the terms of our accession to the CPTPP.