CPTPP (International Agreements Committee Report)

Lord Udny-Lister Excerpts

Tuesday 1st February 2022 Grand Committee

[Lord Udny-Lister (Con)]

My Lords, it is a pleasure to be a new member of the International Agreements Committee, and I start by thanking our chair, the noble Baroness, Lady Hayter, and the other noble Lords for their warm welcome and introduction to the committee’s important work. I also draw your Lordships’ attention to my declaration in the register of interests as an advisor to HSBC bank.

Since joining the committee, I have had the opportunity with interest to familiarise myself with both the previous Sessions, the 10th report of this Session and, of course, the Government’s recent response to that report. Like many today, I welcome the Government’s commitment and action in ensuring that our accession to the CPTPP is both smooth and beneficial for all concerned. It will send a powerful message that the United Kingdom stands ready to champion free trade and fight the protectionism that has held back this country for far too long.

I turn to the impact of rules of origin on UK manufacturers. The Government are right to highlight the many benefits that the CPTPP rules of origin may provide to UK manufacturers in the long term. However, I fear that some industries may suffer unless the Government take bolder action to secure more generous local content thresholds. I would be grateful if the Minister could provide the Committee with an update on what work, if any, is being done to mitigate the concerns of the industry itself.

Furthermore, and without wanting to labour that point, while I gladly acknowledge that Her Majesty’s Government have made it abundantly clear that they will accede to CPTPP only on terms beneficial to the UK, are they able to provide the Committee with an update on whether any further consideration has been given to the use of side letters and/or other instruments to clarify certain policies or exclude certain provisions? I raise that point as I know it is of huge concern to those in the UK automotive industry. I hope that my noble friend will be able to put minds at rest in his summary remarks today.

It is further apparent that, when considering rules of origin, specifically in cases where we have existing FTAs in place, UK businesses may find it challenging to ascertain whether there is more benefit in their trading under localised bilateral agreements or the CPTPP. I fear that in such circumstances we could see businesses make costly misjudgments. Are the Government planning to introduce any measures to simplify that process or to put in place additional guidance so that UK businesses may have the confidence to know that they are always operating on the most favourable terms?

On consumer rights, it is of course important to acknowledge that the UK is acceding to an existing agreement, and with that come very limited options for the Government to seek the type of amendments that some would have. That said, I find myself reassured by the Government’s commitment to ensuring that standards, protections and consumer rights are protected.

Thanks to the sterling work of the Government, trade deals are already in place with the major economies of Australia, New Zealand, Canada and Japan, and the CPTPP is the next natural part of the nation’s onward-looking journey. I hope that the Government are seeking to enter the CPTPP not as a static partner but with the determination, innovation and energy that will be needed to help it evolve to meet the challenges and opportunities of tomorrow.

Having now left the European Union, the UK faces an unrivalled opportunity to unleash the benefits of free trade. With the EU itself acknowledging that 90% of future growth in global GDP will be outside the EU, and with the UK economy now surpassing pre-Covid levels and with stronger than expected growth, there could not be a better or a more exciting time for the UK to embrace this important partnership.