6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The government's response

What the committee recommended 37

1. 1
   We broadly welcome the accession of the UK to CPTPP. Conclusion · paragraph 7
2. 2
   We bring the Protocol on the Accession of the United Kingdom of Great Britain and... Conclusion · paragraph 8
3. 3
   We welcome any additional economic benefits as a result of accession to CPTPP, particularly through... Conclusion · paragraph 12
4. 4
   We welcome the Government’s awareness of the issues around the use of rules of origin... Conclusion · paragraph 21
5. 5
   We welcome the provisions in the side letter signed with Malaysia to support the growth... Recommendation · paragraph 24

See all 37 recommendations and conclusions

Sources

• 6th Report - Scrutiny of international agreements: UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ↗The committee's report, parliament.uk
• Government Response to Scrutiny of international agreements: UK accessesion to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Report ↗The government's response, 8 May 2024, parliament.uk

Recommendations and conclusions 37

1. 1
   We broadly welcome the accession of the UK to CPTPP. Conclusion · paragraph 7 Conclusion (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.
2. 2
   We bring the Protocol on the Accession of the United Kingdom of Great Britain and... Conclusion · paragraph 8 Conclusion (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.
3. 3
   We welcome any additional economic benefits as a result of accession to CPTPP, particularly through... Conclusion · paragraph 12 Conclusion (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.
4. 4
   We welcome the Government’s awareness of the issues around the use of rules of origin... Conclusion · paragraph 21 Conclusion (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.
5. 5
   We welcome the provisions in the side letter signed with Malaysia to support the growth... Recommendation · paragraph 24 Recommendation (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.
6. 6
   In general, we welcome the good balance achieved between new market access for food exporters... Conclusion · paragraph 28 Conclusion (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.
7. 7
   We welcome the report from the Trade and Agriculture Commission stating that UK food and... Conclusion · paragraph 34 Conclusion (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.
8. 8
   We call on the Government to set out how it intends to address the potential... Recommendation · paragraph 35 Recommendation (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”.
9. 9
   We welcome the Joint Statement on the Environment and the CPTPP provisions on environmental protection. Conclusion · paragraph 41 Conclusion (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.
10. 10
    We urge the Government to monitor closely the employment practices of our CPTPP partners and... Recommendation · paragraph 44 Recommendation (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 .
11. 11
    We welcome CPTPP’s provisions on services while noting that the benefits may be more limited... Conclusion · paragraph 49 Conclusion (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.
12. 12
    We welcome the provisions of the Accession Protocol which avoid threatening the UK’s continued adherence... Conclusion · paragraph 53 Conclusion (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.
13. 13
    We call on the Government to set out a clearer approach to ISDS and seek... Recommendation · paragraph 59 Recommendation (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.
14. 14
    We acknowledge the potential advantages of the UK’s new role in CPTPP. Conclusion · paragraph 72 Conclusion (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.
15. 15
    There is some value to UK accession to CPTPP as a forum for like-minded countries... Conclusion · paragraph 79 Conclusion (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.
16. 16
    In any development of CPTPP , the Government should prioritise innovations in the area of... Recommendation · paragraph 85 Recommendation (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.
17. 17
    We regret the absence of a consumer chapter in CPTPP. Conclusion · paragraph 86 Conclusion (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.
18. 18
    An expanded membership of CPTPP could open up new markets for UK goods and services. Conclusion · paragraph 90 Conclusion (the committee's words)

    An expanded membership of CPTPP could open up new markets for UK goods and services.
19. 19
    We call on the Government to explain in their response to this report what impact... Recommendation · paragraph 90 Recommendation (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.
20. 20
    The UK should support membership of countries which meet the accession principles: the ability to... Conclusion · paragraph 93 Conclusion (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.
21. 21
    The Government should work with other members on the accession of eligible countries which have... Recommendation · paragraph 93 Recommendation (the committee's words)

    The Government should work with other members on the accession of eligible countries which have demonstrated the appropriate commitments.
22. 22
    When an accession process commences, we call on the Government to subject it to the... Recommendation · paragraph 94 Recommendation (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.
23. 23
    We reiterate the need for the Government to publish a trade policy that sets out... Recommendation · paragraph 97 Recommendation (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.
24. 24
    We welcome the Government’s measures to engage with and support business. Recommendation · paragraph 105 Recommendation (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.
25. 25
    Our evidence suggests that the Government does not currently have an adequate plan for promoting... Recommendation · paragraph 108 Recommendation (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.
26. 26
    A task force should run over a two-to-three-year period, focusing on a regional roadshow engaging... Recommendation · paragraph 109 Recommendation (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.
27. 27
    Once the CPTPP task force comes to an end, the Government should aim to retain... Recommendation · paragraph 110 Recommendation (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.
28. 28
    The failure to provide easy to access to online information for trading businesses is unacceptable,... Conclusion · paragraph 113 Conclusion (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.
29. 29
    The Government must work quickly with businesses to improve and clarify the online guidance and... Recommendation · paragraph 114 Recommendation (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.
30. 30
    We welcome the current consultation on the review of CPTPP, and call on the Government... Conclusion · paragraph 118 Conclusion (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.
31. 31
    Where all CPTPP members cannot agree, the Government should seek to go further on a... Recommendation · paragraph 120 Recommendation (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 .
32. 32
    Beyond the General Review, the Government should keep us and other stakeholders informed of developments... Recommendation · paragraph 121 Recommendation (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.
33. 33
    We recommend that the Government should respond positively to a proposal for the establishment of... Recommendation · paragraph 124 Recommendation (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.
34. 34
    We welcome the improvements made in consultation with the devolved nations, and reiterate our call... Conclusion · paragraph 128 Conclusion (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 .
35. 35
    We welcome the Government ’s previous commitment to improving its impact assessments and reiterate our... Conclusion · paragraph 129 Conclusion (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.
36. 36
    We believe Northern Ireland’s direct trade with CPTPP countries is likely to face restrictions that... Conclusion · paragraph 131 Conclusion (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.
37. 37
    We call on the Government to monitor the impact of the Windsor Framework on Northern... Recommendation · paragraph 132 Recommendation (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.