10th Report - UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Scrutiny of the Government’s Negotiating Objectives

The government's response

What the committee recommended 40

1. 1
   We welcome the prompt publication of the Negotiating Objectives at the outset of the negotiations... Conclusion · paragraph 14
2. 2
   Importantly, the Government is applying to accede to an existing agreement and the extent to... Recommendation · paragraph 15
3. 3
   If the Government decides to enter into side letters, it should set out how the... Recommendation · paragraph 16
4. 4
   We have not taken evidence on the significance of China’s and Taiwan’s applications, on which... Conclusion · paragraph 28
5. 5
   There are potential economic benefits to the UK joining the CPTPP, though much depends on... Conclusion · paragraph 32

See all 40 recommendations and conclusions

Sources

• 10th Report - UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Scrutiny of the Government’s Negotiating Objectives ↗The committee's report, parliament.uk
• Government response to IAC CPTPP Negotiating Objectives Report ↗The government's response, 19 January 2022, parliament.uk

Recommendations and conclusions 40

1. 1
   We welcome the prompt publication of the Negotiating Objectives at the outset of the negotiations... Conclusion · paragraph 14 Conclusion (the committee's words)

   We welcome the prompt publication of the Negotiating Objectives at the outset of the negotiations to accede to the CPTPP. We note, however, that these are very high-level objectives, with the Government mostly commenting on existing CPTPP provisions. Where the Negotiating Objectives set out specific commitments or red lines, no further indication is given of likely obstacles.
2. 2
   Importantly, the Government is applying to accede to an existing agreement and the extent to... Recommendation · paragraph 15 Recommendation (the committee's words)

   Importantly, the Government is applying to accede to an existing agreement and the extent to which it needs to be accepted ‘as is’ or can be changed is uncertain. We call on the Government to set out its assessment of the extent to which the CPTPP agreement may be amended through the accession negotiations, including through the use of side letters and reservations; and to articulate whether it will be seeking any carve-outs.
3. 3
   If the Government decides to enter into side letters, it should set out how the... Recommendation · paragraph 16 Recommendation (the committee's words)

   If the Government decides to enter into side letters, it should set out how the process of agreeing side letters will operate in practice, including whether agreement will be sought from all CPTPP members (even where not directly affected), or just on a bilateral basis.
4. 4
   We have not taken evidence on the significance of China’s and Taiwan’s applications, on which... Conclusion · paragraph 28 Conclusion (the committee's words)

   We have not taken evidence on the significance of China’s and Taiwan’s applications, on which the Government have yet to comment. It is not clear how China could accept all CPTPP’s economic provisions, particularly on state-owned enterprises, or to what extent it might alter the cost-benefit analysis of UK accession. Plainly, there would also be geopolitical implications, with Taiwanese accession opposed by China.
5. 5
   There are potential economic benefits to the UK joining the CPTPP, though much depends on... Conclusion · paragraph 32 Conclusion (the committee's words)

   There are potential economic benefits to the UK joining the CPTPP, though much depends on the future expansion of the CPTPP, and how successfully the Agreement can serve as a platform for cooperation and UK influence. We have heard much about speculative future benefits, but less about DIT’s assessment of specific opportunities.
6. 6
   It is unclear the extent to which the UK, as a member, would be able... Recommendation · paragraph 33 Recommendation (the committee's words)

   It is unclear the extent to which the UK, as a member, would be able to promote meaningful new cooperation initiatives or press for changes to the CPTPP text. We also do not know which other countries may realistically join the CPTPP in the future, and note in this context China’s and Taiwan’s recent applications for accession. The Government should start planning for post-accession work as soon as possible, and in particular share its assessments of these applications, given their importance to the economic and strategic case, and their geopolitical implications.
7. 7
   We call on the Government to explain the likely sequencing of China’s and Taiwan’s accession... Recommendation · paragraph 34 Recommendation (the committee's words)

   We call on the Government to explain the likely sequencing of China’s and Taiwan’s accession negotiations, and whether their Negotiating Objectives will be reviewed in the light of the applications by China and Taiwan.
8. 8
   The CPTPP negotiations are not without risks. Recommendation · paragraph 35 Recommendation (the committee's words)

   The CPTPP negotiations are not without risks. They could give bilateral trade partners a second opportunity to seek greater market access which, in turn, could have an adverse economic impact. We welcome the approach adopted by the Government so far of including commitments in its agreements in principle with Australia and New Zealand that neither side will be seeking additional access or preferences through the CPTPP accession negotiations. The Government should ensure that it has concluded all new and enhanced bilateral trade negotiations with individual CPTPP members before it engages in substantial market access negotiations for CPTPP accession.
9. 9
   We note that UK farmers could potentially experience negative cumulative impacts if accession to CPTPP... Conclusion · paragraph 45 Conclusion (the committee's words)

   We note that UK farmers could potentially experience negative cumulative impacts if accession to CPTPP requires the UK to provide additional market access for CPTPP countries, beyond what has been agreed through existing or future bilateral trade deals.
10. 10
    To maintain a level playing field for UK farmers (and safeguard UK production standards), the... Recommendation · paragraph 46 Recommendation (the committee's words)

    To maintain a level playing field for UK farmers (and safeguard UK production standards), the Government should require agriculture and food imports either to meet minimum standards, including on environmental and climate protections, animal welfare, and the use of antibiotics and pesticides; or, as suggested by the fixed-term Trade and Agriculture Commission, make tariff liberalisation conditional on meeting those standards. We call on the Government to clarify its approach urgently. However, we note that seven CPTPP members already enjoy preferential access to the UK market through separate bilateral agreements or, in the case of Australia and New Zealand, are expected to gain this access soon.
11. 11
    The Government should pursue opportunities to increase access to CPTPP markets and to expand exports... Recommendation · paragraph 47 Recommendation (the committee's words)

    The Government should pursue opportunities to increase access to CPTPP markets and to expand exports of high-quality UK agricultural goods. In particular, it should use the CPTPP negotiations to improve the UK’s access to the Japanese market in areas where tariff rate quotas were not rolled over from the EU-Japan Economic Partnership Agreement.
12. 12
    We heard from a number of witnesses that tariff liberalisations are helpful only if accompanied... Recommendation · paragraph 48 Recommendation (the committee's words)

    We heard from a number of witnesses that tariff liberalisations are helpful only if accompanied by Government export support. We therefore welcome the Government’s announcement that it will seek to establish a Food and Drinks Export Council to support farmers, food and drinks businesses to maximise export opportunities from new and existing FTAs. We call on the Government to ensure that the Council is operational as soon as possible.
13. 13
    The Negotiating Objectives highlight the opportunities that the CPTPP’s Rules of Origin may provide to... Conclusion · paragraph 54 Conclusion (the committee's words)

    The Negotiating Objectives highlight the opportunities that the CPTPP’s Rules of Origin may provide to UK manufacturers, and the automotive sector in particular. While UK-based producers supplying parts to assembly plants located in CPPTPP member states will benefit, manufacturers and exporters of UK-assembled vehicles in the UK are unlikely to do so. In fact, the Rules of Origin may confer a competitive advantage onto vehicle manufacturers in other CPTPP countries which are linked by established regional supply chains.
14. 14
    We call on the Government to seek carve-outs or side letters with strategic CPTPP trading... Recommendation · paragraph 55 Recommendation (the committee's words)

    We call on the Government to seek carve-outs or side letters with strategic CPTPP trading partners, such as Japan, to allow for more generous local content thresholds to apply to UK-assembled vehicles.
15. 15
    We generally received positive responses from services companies and their trade organisations about joining the... Conclusion · paragraph 74 Conclusion (the committee's words)

    We generally received positive responses from services companies and their trade organisations about joining the CPTPP, with benefits to be realised from formalised dialogue and cooperation.
16. 16
    The Government should pursue the opportunities for the UK financial, legal, and related professional services... Recommendation · paragraph 75 Recommendation (the committee's words)

    The Government should pursue the opportunities for the UK financial, legal, and related professional services by using the mechanisms available through CPTPP to establish regulatory dialogue and to shape future rules in the region.
17. 17
    We heard that the intellectual property and audio-visual services sectors are unlikely to benefit from... Conclusion · paragraph 76 Conclusion (the committee's words)

    We heard that the intellectual property and audio-visual services sectors are unlikely to benefit from CPTPP accession due to IP provisions falling short in ambition.
18. 18
    We find that two CPTPP provisions on intellectual property are particularly problematic, raising the possibility... Conclusion · paragraph 102 Conclusion (the committee's words)

    We find that two CPTPP provisions on intellectual property are particularly problematic, raising the possibility of significant economic damage to the UK’s patent industry, and higher prices paid by the NHS for generic medicines and biosimilars.
19. 19
    While the Negotiating Objectives make clear that the Government will ensure that the terms of... Recommendation · paragraph 103 Recommendation (the committee's words)

    While the Negotiating Objectives make clear that the Government will ensure that the terms of UK accession are consistent with the UK’s IP interests, and the price the NHS pays for medicines are not on the table, we have not yet been given an indication of how this could be achieved. The Government should make clear what carve-outs it will be seeking as part of the negotiations.
20. 20
    In particular, we call on the Government to explain how it will seek to address... Recommendation · paragraph 104 Recommendation (the committee's words)

    In particular, we call on the Government to explain how it will seek to address the conflict between the UK’s obligations under the European Patent Convention and Article 18.38, or what steps it plans to take to mitigate any adverse impacts.
21. 21
    Similarly, we call on the Government to explain how it will avoid or mitigate the... Recommendation · paragraph 105 Recommendation (the committee's words)

    Similarly, we call on the Government to explain how it will avoid or mitigate the risk of additional costs to the NHS resulting from the pre-notification requirement contained in Article 18.53.
22. 22
    We welcome the commitment by the Government to uphold the UK’s food standards but note... Recommendation · paragraph 109 Recommendation (the committee's words)

    We welcome the commitment by the Government to uphold the UK’s food standards but note that the Government has not provided further detail as to how it would avoid compromising those standards in the future, and how it would address the contradictions between the UK’s precautionary approach and CPTPP’s science-based approach. We call on the Government to articulate how it will seek to manage these divergent regulatory approaches.
23. 23
    The Government should also set out the implications for existing agri-food supply chains that are... Recommendation · paragraph 110 Recommendation (the committee's words)

    The Government should also set out the implications for existing agri-food supply chains that are integrated with EU member states and could, over time, experience disruption through diverging standards.
24. 24
    In this context, we welcome the establishment of a Trade and Agriculture Commission to scrutinise... Recommendation · paragraph 111 Recommendation (the committee's words)

    In this context, we welcome the establishment of a Trade and Agriculture Commission to scrutinise the UK’s new free trade agreements, including the CPTPP, and assess whether they are consistent with the maintenance of UK levels of statutory protection in relation to animal and plant health, animal welfare, and the environment. We call on the Government to ensure the relevant provisions in the Trade Act 2021 are commenced as soon as possible so that the Trade and Agriculture Commission can be placed on a statutory footing.
25. 25
    As many food safety and animal health issues fall within devolved competence, we also urge... Conclusion · paragraph 112 Conclusion (the committee's words)

    As many food safety and animal health issues fall within devolved competence, we also urge the Government to ensure that the devolved administrations and legislatures are adequately consulted and their various views represented throughout the accession negotiations. It would not be acceptable for the UK Government to reach an international agreement which could not be implemented in all parts of the UK.
26. 26
    We welcome the Government’s commitment to high standards of data protection in the Negotiating Objectives,... Conclusion · paragraph 121 Conclusion (the committee's words)

    We welcome the Government’s commitment to high standards of data protection in the Negotiating Objectives, but call on the Government to provide its assessment and analysis of the implications of Articles 14.8 and 14.11 of the CPTPP agreement for the UK’s personal data protection regime and the EU’s data adequacy decision.
27. 27
    Article 14.11, which bans the forced disclosure of source code of software, only has narrow... Recommendation · paragraph 125 Recommendation (the committee's words)

    Article 14.11, which bans the forced disclosure of source code of software, only has narrow public policy exceptions. This means that regulatory bodies may not be able to access source code for legitimate public interest reasons, such as fraud and security, and accountability of automated decision-making may be limited. We call on the Government to set out its assessment of Article 14.11 and state whether it will be seeking to negotiate an exception.
28. 28
    We call on the Government to provide its assessment of the suspended intellectual property provisions... Recommendation · paragraph 127 Recommendation (the committee's words)

    We call on the Government to provide its assessment of the suspended intellectual property provisions of CPTPP limiting the liability of internet service providers for copyright infringement, and the likelihood of their re-introduction.
29. 29
    We call on the Government to set out its negotiating position and clarify its intention... Recommendation · paragraph 139 Recommendation (the committee's words)

    We call on the Government to set out its negotiating position and clarify its intention regarding investor-state dispute settlement (ISDS), including its position on other mechanisms for investment protection.
30. 30
    We regret that the Government has not provided detailed objectives on climate and the environment. Recommendation · paragraph 143 Recommendation (the committee's words)

    We regret that the Government has not provided detailed objectives on climate and the environment. We call on the Government to strengthen its objectives, specifically in the light of any agreements resulting from COP26.
31. 31
    The Government should also explain how it plans to ensure that the UK’s right to... Recommendation · paragraph 144 Recommendation (the committee's words)

    The Government should also explain how it plans to ensure that the UK’s right to regulate in support of domestic green industries is maintained.
32. 32
    We call on the Government to set out its plans for ensuring that CPTPP membership... Recommendation · paragraph 145 Recommendation (the committee's words)

    We call on the Government to set out its plans for ensuring that CPTPP membership does not incentivise greenhouse gas-intensive agricultural practices in other CPTPP countries, which could, in turn, undermine the UK’s environmental production standards.
33. 33
    We reiterate our recommendation that the Government should ensure that agriculture and food imports meet... Recommendation · paragraph 146 Recommendation (the committee's words)

    We reiterate our recommendation that the Government should ensure that agriculture and food imports meet minimum environmental standards; or, as set out by the Trade and Agriculture Commission, make tariff liberalisation conditional on meeting those standards.
34. 34
    While we accept that the negotiation of trade agreements is a reserved competence, they will... Recommendation · paragraph 153 Recommendation (the committee's words)

    While we accept that the negotiation of trade agreements is a reserved competence, they will have a significant impact not just on devolved policy areas, but also on devolved economies more generally (even in reserved areas) and interests. We call on the Government to ensure that consultation with the devolved administrations and legislatures is transparent, detailed and timely, and that their views are represented throughout the negotiations.
35. 35
    We call on the Government to publish a comprehensive impact assessment for each of the... Recommendation · paragraph 154 Recommendation (the committee's words)

    We call on the Government to publish a comprehensive impact assessment for each of the devolved nations prior to CPTPP accession covering all areas of devolved interest, irrespective of whether they relate to a devolved competence or not.
36. 36
    For future FTA negotiations, the Government should ensure that scoping assessments provide a detailed picture... Recommendation · paragraph 155 Recommendation (the committee's words)

    For future FTA negotiations, the Government should ensure that scoping assessments provide a detailed picture of the potential impact of an agreement on the devolved nations.
37. 37
    While the Negotiating Objectives state that the CPTPP agreement “will apply to all four constituent... Conclusion · paragraph 156 Conclusion (the committee's words)

    While the Negotiating Objectives state that the CPTPP agreement “will apply to all four constituent nations of the UK, taking into account the effects of the Protocol on Ireland/Northern Ireland” it remains unclear how the agreement will be impacted by the Protocol, and how this may affect trade between Northern Ireland and CPTPP members. It is essential that the Government provides this information. We also urge the Government routinely to include in any future FTA Negotiating Objectives their assessment of the interaction between the Protocol and prospective agreements.
38. 38
    During the CPTPP negotiations, the Government should provide regular updates to Parliament and the Committee... Recommendation · paragraph 159 Recommendation (the committee's words)

    During the CPTPP negotiations, the Government should provide regular updates to Parliament and the Committee (and the Commons’ International Trade Committee). In bilateral trade negotiations, these updates would normally be provided at the conclusion of each negotiating round. We understand that there will not be clear negotiating rounds in CPTPP negotiations, but updates should nevertheless be provided at regular intervals. We welcome the commitment by DIT that Accession Working Group ‘read-outs’ will be provided every three months.
39. 39
    We call on the Government to provide more information in its updates to the Committee... Recommendation · paragraph 160 Recommendation (the committee's words)

    We call on the Government to provide more information in its updates to the Committee on the detail of the negotiations, and any obstacles encountered. We acknowledge there will be areas of negotiations that are sensitive and confidential, but the principle of scrutiny by Parliament is important and should be fully recognised, and we are open to discussing arrangements that may help facilitate the sharing of confidential information.
40. 40
    In line with commitments made in respect of the Australia and the New Zealand FTAs,... Conclusion · paragraph 161 Conclusion (the committee's words)

    In line with commitments made in respect of the Australia and the New Zealand FTAs, at the conclusion of negotiations, the International Agreements Committee (and the Commons’ International Trade Committee) should be given access to the text of the signed agreement, including all market access schedules agreed with each CPTPP member, at least three months before the agreement is formally laid under CRAG.