CPTPP (International Agreements Committee Report)

Viscount Waverley Excerpts

Tuesday 1st February 2022 Grand Committee

[Viscount Waverley (CB)]

My Lords, this Pacific partnership is potentially the most important regional trade agreement that the UK will negotiate, with the potential for wide-ranging repercussions, strengthening ties with international allies and signalling commitment to free trade.

Feedback from the supporter network organisations around the United Kingdom of the Trade and Export Promotion APPG, which I co-chair, suggests that they broadly support accession to the CPTPP. The noble Lord, Lord Lansley, whom I am delighted to see and who is a colleague on the APPG, was spot on when he said that the Pacific region is where we need to be, with serious opportunities. I share the points he made regarding the NHS.

There is clear value and opportunity for the UK in joining, working with members in the bloc to shape economic issues and be at the forefront of innovation when it comes to digital and trade provisions. However, the Government should explain how they will protect UK food, environment, IP, climate and data protection, and further explain how this FTA will promote human rights, international development and union rights.

The content of negotiations also has important implications for consumers—the choices they make, the prices they pay, the standards they can expect and the rights they can rely on. Consumers require the strengthening of four priorities: maintaining health and safety standards of food and products, maintaining data security regulations that protect consumers’ digital rights, maintaining the environment and using trade to address inequalities.

However, the report before us states:

“Immediate economic benefits are limited, but the Agreement may open opportunities for collaboration”,


which confirms that the UK sees this as a means by which to extend influence beyond purely increasing trade.

There is a concern among some as to whether CPTPP negotiations might become bogged down in a political quagmire. CPTPP’s economic provisions, particularly on governance, relate to state-owned enterprise. The question is: how does the UK expect to achieve our goal if it does not have the right policy with China? I was pleased to hear the remarks of the right reverend Prelate the Bishop of St Albans and the noble Lord, Lord Hannay, on the timetable issues.

The situation could become complex resulting from fear of retribution from Beijing against WTO members Taiwan and South Korea. Plainly there will be geopolitical implications, with Taiwanese accession opposed by China. Beijing’s regional influence might become the catalyst for a policy reversal by the United States also to apply to join the pact. That could become a game-changer.

This is an opportunity to request that the Minister help me. Given that the WTO has primacy over regional trade agreements and that China has a complex relationship with the WTO, what is the situation regarding the WTO membership criteria, which state that when a member enters into a regional trade agreement through which it grants more favourable conditions than for trade with other WTO members, it departs from the guiding principle of non-discrimination?

Australia has filed a formal complaint to the WTO over various duties imposed by China, with Australia seeking to be included in consultations about a trade dispute between the European Union and China, launched by the EU. Additionally, at a meeting on Monday past, Canada sought to further a trade dispute with China over imposed restrictions. Is it considered that these have implications for CPTPP?

In conclusion, what do the Government believe are the consequences of China applying, and how will we achieve our trade goals without, at the very least, pragmatic relations with that country?