The accession of the UK to the
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) could be of strategic importance - but
effective implementation of the agreement will be key to
maximising any potential benefits for British businesses,
according to the House of Lords International Agreements
Committee.
In its report, published today, the
committee reports the Accession Protocol of the United Kingdom to
the CPTPP – a free trade agreement between 12 countries upon the
UK’s accession, which will account for 15% of global GDP - to the
House for special attention and debate.
The committee notes that the economic
gains of accession are limited, though accession does offer new
market access to Malaysia and Brunei. The committee has expressed
concern about the extent to which businesses in general, and SMEs
in particular, will be able to take advantage of the new
provisions in CPTPP. This is due in part to the considerable
geographical distance between the UK and other CPTPP member
countries, presenting British businesses with challenges not
faced by other CPTPP countries – particularly in using the new
rules of origin provisions in the
agreement.
The report finds that the Government
has failed to provide trading businesses with easily accessible
online information and guidance on utilising trade agreements.
The committee calls on the Government to work quickly with
business to improve and clarify the online guidance and advice on
all trade agreements, including CPTPP.
Secondly, the committee acknowledges
potential strategic advantages of greater engagement in the
region afforded via CPTPP membership – but notes that the primary
function of CPTPP is as a trade agreement. 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 Indo-Pacific ‘tilt’ strategy. The report
recognises some value in using CPTPP as a forum for cooperation
with like-minded countries to discuss shared challenges in
international trade. However, against the backdrop of a more
protectionist global trade environment, the utility of CPTPP as a
rallying point is likely to be limited, the committee suggests.
It calls on the Government to provide further detail on how it
expects membership of CPTPP to contribute to the delivery of its
strategic aims in the region.
Lastly, the committee welcomes the
current consultation on the forthcoming ‘General Review’ of
CPTPP, which takes place among all members this year. It calls on
the Government to set out and publish its priorities for the
review, and for a longer-term plan for the development of
CPTPP.
, Chair of the International
Agreements Committee said:
“As of July 2023 the UK is the twelfth
country to join and the second largest economy after Japan. For
the UK, CPTPP is more than a trade agreement. It also forms a
part of the Government strategy to deepen its engagement with the
Indo-Pacific region.
“If the potential economic benefits
are to reach beyond the current marginal predictions for growth,
the Government needs to engage proactively with UK businesses in
an ongoing dialogue. We have recommended a task force to build
the overall capacity of UK businesses to use
CPTPP.
“Furthermore, an expanded membership
of CPTPP could open up new markets for UK goods and services. 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 the CPTPP to innovate and
modernise.
“We welcome the improvements made in
consultation with the devolved nations, and reiterate our call
for the Government to continue to provide detailed, timely,
transparent and comprehensive engagement to ensure that the views
of devolved administrations are clearly represented throughout
negotiations.”
The full report is available on the
committee’s website.
