Conclusion 1
Concluded (the committee's words)We broadly welcome the accession of the UK to CPTPP. However, it remains to be seen whether the Government’s intended trade and geopolitical benefits will materialise.
Select committee: International Agreements Committee
UK accession to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Closed
Opened 25 Jul 2023
Closed 8 May 2024
18 recommendations
19 conclusions
International Agreements Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
Following the announcement of the UK’s accession on 16 July, the International Agreements Committee is reactivating its inquiry into CPTPP. We will be undertaking a new programme of evidence gathering, covering the terms of the UK’s accession, its potential benefits and disadvantages, and provisions for key UK sectors, among other issues.
Where it stands
The inquiry is closed, opened 25 July 2023.
The committee has published 1 report, most recently 6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on 27 February 2024.
The government's response
Published 8 May 2024. The deadline was 27 April 2024.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's conclusions on UK accession to the CPTPP and says it is "strongly of the view" that accession will bring wide-spread benefits, while responding to individual recommendations in detail.
- On a standing secretariat, the government says it "will consider this issue as part of the upcoming discussions with other CPTPP Parties on the General Review".
- On a published trade policy framework, it points to existing documents and says that publishing one may "risk revealing our positions, undermining our ability to negotiate effectively".
- On future accessions, it says it "will take that into account as we develop our approach" to scrutiny, and that its "firm intention" is that any future accession would be subject to CRaG scrutiny.
- On business engagement, it describes the Free Trade Agreement Utilisation team's work, including CPTPP guidance being prepared and an Indo-Pacific Roadshow "taking place in June 2024".
Recommendations and conclusions
- Conclusion 1Conclusion
- Conclusion 2Conclusion
- Conclusion 3Conclusion
Reports
- 6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership27 February 2024 · 37 items
Evidence
- 6 oral evidence sessionsLatest 19 December 2023
- 16 witnesses
Recent activity
- Government Response to Scrutiny of international agreements: UK accessesion to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Report8 May 2024, Report published
- 6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership27 February 2024, Report published
- Formal Meeting (Private Meeting)20 February 2024, Formal meeting (private meeting) · Room 3A, Palace of Westminster
Recommendations and conclusions 37 shown
Conclusion 2
Concluded (the committee's words)We bring the Protocol on the Accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to the special attention of the House on the grounds that it is politically important and gives rise to issues of public policy. We make this report to the House for debate.
Conclusion 3
Concluded (the committee's words)We welcome any additional economic benefits as a result of accession to CPTPP, particularly through market access to Malaysia and Brunei for the first time. However, we also acknowledge the limited economic gains suggested by current projections.
Conclusion 4
Concluded (the committee's words)We welcome the Government’s awareness of the issues around the use of rules of origin provisions. There is a clear opportunity for UK manufacturers to develop new business models, but equally member countries that are geographically closer to each other may find it easier to develop integrated supply chains. Overall, we are concerned about the extent to which businesses in general, and SMEs in particular, will be able to take advantage of the provisions on offer and call on the Government to monitor this carefully. Implementation will be a key factor, particularly for businesses not currently exporting goods.
Recommendation 5
Recommended (the committee's words)We welcome the provisions in the side letter signed with Malaysia to support the growth of the UK automotive sector, but note the reservations of the Society of Motor Manufacturers and Traders. We call on the Government to set out its analysis of the effect of Chinese market competition.
Conclusion 6
Concluded (the committee's words)In general, we welcome the good balance achieved between new market access for food exporters and access to the UK market, particularly as this issue was previously raised in relation to the trade agreement with Australia.
Conclusion 7
Concluded (the committee's words)We welcome the report from the Trade and Agriculture Commission stating that UK food and drink rules do not have to change as a result of CPTPP accession. We note however the potential risk of challenge to these rules in the future.
Recommendation 8
Recommended (the committee's words)We call on the Government to set out how it intends to address the potential risk of equivalence provisions leading to “regulatory chill”.
Conclusion 9
Concluded (the committee's words)We welcome the Joint Statement on the Environment and the CPTPP provisions on environmental protection. We also note the concerns raised by witnesses, particularly regarding UK import of palm oil. However, as the UK was signing up to an existing agreement it was required largely to accept the terms as stated.
Recommendation 10
Recommended (the committee's words)We urge the Government to monitor closely the employment practices of our CPTPP partners and be prepared to act should it identify issues .
Conclusion 11
Concluded (the committee's words)We welcome CPTPP’s provisions on services while noting that the benefits may be more limited than the Government has suggested. We note in particular the lack of provisions on the mutual recognition of professional qualifications to drive services trade.
Conclusion 12
Concluded (the committee's words)We welcome the provisions of the Accession Protocol which avoid threatening the UK’s continued adherence to the European Patent Convention, and thereby resolve the major concerns expressed in our previous report on Negotiating Objectives.
Recommendation 13
Recommended (the committee's words)We call on the Government to set out a clearer approach to ISDS and seek to reassure stakeholders that their concerns around regulatory chill are being addressed.
Conclusion 14
Concluded (the committee's words)We acknowledge the potential advantages of the UK’s new role in CPTPP. However, the Integrated Review and Integrated Review Refresh lack detail as to how the Government intends to utilise CPTPP as an important economic and trade strand of its strategy. We have seen that there is potential for CPTPP to be a forum for engagement with partners in the Indo-Pacific, but note that its primary function is as a free trade agreement. We would welcome further detail on how the Government expects membership of CPTPP to contribute to delivery of its strategic aims in the region as the agreement is implemented over the coming years.
Conclusion 15
Concluded (the committee's words)There is some value to UK accession to CPTPP as a forum for like-minded countries to discuss the challenges facing international trade and find ways to cooperate in addressing these issues. However, the utility of this rallying point against the backdrop of a more protectionist trade environment is limited. While the difficulties within the WTO amplify the importance of plurilateral rules-based trade agreements such as CPTPP, it will only represent a small part of UK trade as a whole.
Recommendation 16
Recommended (the committee's words)In any development of CPTPP , the Government should prioritise innovations in the area of climate and trade in environmental goods and services; in digital services and trade in digital technology; and in professional services. Progress in the area of mutual recognition of qualifications in the medium term would be particularly welcome.
Conclusion 17
Concluded (the committee's words)We regret the absence of a consumer chapter in CPTPP. Inclusion of such a chapter would be a valuable means of identifying and protecting consumers as key stakeholders to this agreement.
Conclusion 18
Concluded (the committee's words)An expanded membership of CPTPP could open up new markets for UK goods and services.
Recommendation 19
Recommended (the committee's words)We call on the Government to explain in their response to this report what impact they expect future accessions to have on the ability of CPTPP to innovate and modernise.
Conclusion 20
Concluded (the committee's words)The UK should support membership of countries which meet the accession principles: the ability to meet, implement and adhere to CPTPP standards and a track record of adhering to trade commitments.
Recommendation 21
Recommended (the committee's words)The Government should work with other members on the accession of eligible countries which have demonstrated the appropriate commitments.
Recommendation 22
Recommended (the committee's words)When an accession process commences, we call on the Government to subject it to the same process of consultation and modelling as they would for a new FTA partner. In line with this approach, we further welcome the Government’s commitment to subject any future accession to the agreement to the CRAG scrutiny framework.
Recommendation 23
Recommended (the committee's words)We reiterate the need for the Government to publish a trade policy that sets out defined priorities in areas of benefit to the UK. Such a policy would help those scrutinising trade agreements to understand the framework within which trade agreements are made.
Recommendation 24
Recommended (the committee's words)We welcome the Government’s measures to engage with and support business. However, we are concerned that they require individual businesses to seek them out, and those most likely to do so are those already exporting to the region. As such, these methods are less likely to overcome the barriers that we have identified such as a lack of knowledge and experience of FTAs in general and CPTPP in particular. If the potential economic benefits are to reach beyond the current marginal predictions for growth, we recommend that the UK Government proactively engages with businesses in an ongoing dialogue.
Recommendation 25
Recommended (the committee's words)Our evidence suggests that the Government does not currently have an adequate plan for promoting CPTPP. We recommend that the Government develop new approaches to engaging businesses, including a task force to build the overall capacity of UK businesses to use CPTPP. This should work alongside existing initiatives such as the UK’s trade envoy network.
Recommendation 26
Recommended (the committee's words)A task force should run over a two-to-three-year period, focusing on a regional roadshow engaging with local business associations and individual small and medium sized businesses, alongside online activities. Opportunities such as selling into the newly preferential markets of Malaysia and Brunei should be emphasised, as well as the use of rules of origin and other key provisions. The Government should develop mechanisms to evaluate the success of this engagement.
Recommendation 27
Recommended (the committee's words)Once the CPTPP task force comes to an end, the Government should aim to retain the expertise and experience to continue to engage UK businesses. It should make every effort to encourage the ongoing use of the agreement, and update businesses on developments agreed at the General Review.
Conclusion 28
Concluded (the committee's words)The failure to provide easy to access to online information for trading businesses is unacceptable, particularly as we have heard how important it is to ensure correct implementation of trade agreements.
Recommendation 29
Recommended (the committee's words)The Government must work quickly with businesses to improve and clarify the online guidance and advice on all trade agreements, including CPTPP.
Conclusion 30
Concluded (the committee's words)We welcome the current consultation on the review of CPTPP, and call on the Government to set out and publish its priorities. Given the need to reach consensus, we also call on the Government to define its priorities in the context of a longer-term plan for the development of CPTPP.
Recommendation 31
Recommended (the committee's words)Where all CPTPP members cannot agree, the Government should seek to go further on a bilateral or plurilateral basis with one or more other members .
Recommendation 32
Recommended (the committee's words)Beyond the General Review, the Government should keep us and other stakeholders informed of developments in the various chapters of CPTPP. We also recommend that a programme of stakeholder engagement should continue, building on that currently underway for the General Review.
Recommendation 33
Recommended (the committee's words)We recommend that the Government should respond positively to a proposal for the establishment of a small, lean standing secretariat, though note that key questions such the funding, location and exact size of such a secretariat would need to be addressed.
Conclusion 34
Concluded (the committee's words)We welcome the improvements made in consultation with the devolved nations, and reiterate our call for the Government to continue to provide timely, transparent and comprehensive engagement and information sharing to ensure that the devolved administrations are sufficiently informed and are clearly represented throughout negotiations. This should include all areas which relate to, or are likely to have an impact on the devolved nations .
Conclusion 35
Concluded (the committee's words)We welcome the Government ’s previous commitment to improving its impact assessments and reiterate our call for detailed assessments of the impact of future trade agreements on the devolved nations and regions, including sensitive sectors such as agri-food. These assessments should be shared with the devolved administrations at the earliest opportunity to allow adequate time for mitigation of adverse impacts, and to capitalise on any potential gains.
Conclusion 36
Concluded (the committee's words)We believe Northern Ireland’s direct trade with CPTPP countries is likely to face restrictions that will not affect the rest of the United Kingdom and request further information from the Government on what it expects the impact of this restriction to be.
Recommendation 37
Recommended (the committee's words)We call on the Government to monitor the impact of the Windsor Framework on Northern Ireland’s ability to benefit from CPTPP membership and on its ability to benefit from UK FTA tariff preferences more generally.
Reports
6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- HC No.
- Not recorded
- Published
- 27 Feb 2024
- Items
- 37
- Government response
- Government response published 8 May 2024 (deadline 27 April 2024). Read the government's response ↗
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 19 Dec 2023 |
Oral evidence session
Dan Hobbs · Home Office,
Rob Cook · Department for Business and Trade,
Rt Hon James Cleverly MP · Foreign, Commonwealth and Development Office,
The Lord Johnson of Lainston CBE · Department for Business and Trade
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| 5 Dec 2023 |
Oral evidence session
Creon Butler · Chatham House,
Inu Manak · Council on Foreign Relations,
Prof Holger Hestermeyer · Diplomatic Academy, Vienna
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| 28 Nov 2023 |
Oral evidence session
Colin Barker · High Commission of Canada,
Elisabeth Bowes · Australian High Commission
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| 14 Nov 2023 |
Oral evidence session
Kate Foster · Federation of Small Businesses,
Sally Jones · Department for Business and Trade
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| 24 Oct 2023 |
Oral evidence session
Chun-Yi Lee · University of Nottingham,
Dr Minako Morita-Jaeger · UK Trade Policy Observatory,
Sophia Gaston · British Foreign Policy Group
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| 17 Oct 2023 |
Oral evidence session
Giulia Leonelli · LSE Law School,
Professor Christopher Dent · Edge Hill University
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Who gave evidence
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| Witness | Organisation | Sessions |
|---|---|---|
| Chun-Yi Lee · Associate Professor | University of Nottingham | 1 |
| Colin Barker · Counsellor (Commercial) & Senior Trade Commissioner | High Commission of Canada | 1 |
| Creon Butler · Director, Global Economy and Finance Programme | Chatham House | 1 |
| Dan Hobbs · Director General, Migration and Borders Group | Home Office | 1 |
| Dr Minako Morita-Jaeger · Policy Research Fellow | UK Trade Policy Observatory | 1 |
| Elisabeth Bowes · Deputy High Commissioner | Australian High Commission | 1 |
| Giulia Leonelli · Assistant Professor of Law | LSE Law School | 1 |
| Inu Manak · Fellow for Trade Policy | Council on Foreign Relations | 1 |
| Kate Foster · Head of International Affairs | Federation of Small Businesses | 1 |
| Prof Holger Hestermeyer · Professor of International and EU Law | Diplomatic Academy, Vienna | 1 |
| Professor Christopher Dent · Professor of Economics and International Business | Edge Hill University | 1 |
| Rob Cook · Deputy Director for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) | Department for Business and Trade | 1 |
| Rt Hon James Cleverly MP · Minister of State (Minister for Middle East and North Africa) | Foreign, Commonwealth and Development Office | 1 |
| Sally Jones · Deputy Director, Industrial Strategy Implementation, Partnerships and Place | Department for Business and Trade | 1 |
| Sophia Gaston · Director | British Foreign Policy Group | 1 |
| The Lord Johnson of Lainston CBE · Minister for Investment | Department for Business and Trade | 1 |
Correspondence
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| Published | Direction | Letter |
|---|---|---|
| 22 Jan 2024 | Not recorded | Letter dated 11 January 2024 to Chair from Lord Johnson, CPTPP session follow-ups |
| 22 Jan 2024 | Not recorded | Letter dated 9 January 2024 to Chair from Lord Johnson, Updating Parliament with finalised CPTPP documents |
| 22 Jan 2024 | Not recorded | Letter 11 January 2024 to Chair from Lord Johnson, CPTPP: Commencement of a period of public engagement |
| 22 Jan 2024 | Not recorded | Letter dated 11 January 2024 to Chair from Lord Johnson, CPTPP session follow-up on UK-India FTA |
Meetings & visits
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| Date | Type | Detail | Source |
|---|---|---|---|
| 20 Feb 2024 | Formal meeting (private meeting) | Formal Meeting (Private Meeting) · Room 3A, Palace of Westminster | |
| 13 Feb 2024 | Formal meeting (private meeting) | Formal Meeting (Private Meeting) · Room 3A, Palace of Westminster | |
| 9 Jan 2024 | Formal meeting (private meeting) | Not recorded · Room 3A, Palace of Westminster | |
| 12 Dec 2023 | Formal meeting (private meeting) | Not recorded · Room G-32, Millbank House |