My Lords, as a supporter of free trade the UK takes a close interest in RCEP, which should help standardise rules and facilitate trade between partners in the region. The Government are committed to enhancing our trade with RCEP members, having concluded the CEPA with Japan and negotiated with Australia and New Zealand, along with our intention to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—plus, of course, our bilateral trade engagement with partner countries.
My Lords, I thank the Minister for that reply and congratulate him on the work that he and his colleagues have done in this whole area. But this new regional comprehensive liberalisation partnership, although it is much shallower than other market liberalisation such as the EU single market, for instance, is actually much bigger than any other. It covers 2.3 billion people and a third of the world’s trade; and it is in the region where most of the world’s growth will be over the next 10 years. Does my noble friend agree that we need to engage very closely indeed with this development? Now that we are aiming to join the revised Trans-Pacific Partnership, and are involved in the Japan agreement that he mentioned, does he agree that this should all be seen as part of what his right honourable friend Elizabeth Truss, the International Trade Secretary, calls the “Pacific mindset” in our overseas commercial strategy? That is thoroughly welcome and to my mind, as some would say, overdue.
I agree with my noble friend that RCEP is a very interesting trade agreement, and it is a notable achievement that it has been concluded. However, we feel that the Trans-Pacific Partnership is a significantly deeper agreement that will set standards globally in a large number of areas; that is our priority.
My Lords, RCEP is a much shallower and less significant partnership than the CPTPP, as my noble friend just stated. Does he agree that it is hard to see how China could be accepted as a member of the CPTPP, given its provisions on transparency, anti-corruption, state-owned enterprises and labour and environmental protection? Does he also agree that it is very important that UK accession to the CPTPP should be fully agreed during Japan’s presidency, which necessitates a formal request for accession early in the new year?
My noble friend is right: we intend to move forward as quickly as we can with the Trans-Pacific Partnership, and we hope to be able to make an application for accession early in the new year.
Viscount Waverley (CB) [V]
I fully take the point about the Trans-Pacific Partnership Agreement—regional integration and multilateralism, serving other nations’ prosperity, is in the UK’s interest, so fully endorsing the importance of our linking to major trade blocs is a priority. However, as the noble Viscount, Lord Trenchard, has just drawn attention to, the China relationship is fraught, as it is for others, for multiple reasons. Does China’s inclusion hamper our ability to deepen trade relations with the RCEP community, or is RCEP viewed as a practical bridge-building mechanism?
We are watching RCEP closely, but at least six ASEAN and three non- ASEAN signatories need to ratify the agreement before it enters into force, and there is then a gap of 18 months before any other country can enter—so it would be many years before it would even be possible for us to consider entry into RCEP.
My Lords, before looking to very long-term ambitions for joining regional economic partnerships, is it not better for the Government to focus absolutely on the trade agreements that we already have and are struggling to roll over? The update from the Government yesterday says that, for the first time that we know of, we will, from 1 January, be trading on WTO terms with countries that we had a trade agreement with before—a real failure of this Government. One of the RCEP countries is Vietnam; when will we see the details for the rollover agreement for Vietnam so that we can debate it in this Parliament and judge whether the Government are performing as they should be?
My Lords, we have now concluded 27 agreements with 59 countries. There is a very small number of countries that we will not have completed agreements with before the end of this year, but I am pleased to say that the agreement in principle with Vietnam was concluded last week, during the Trade Secretary’s visit, and full details will be made available to the House in the normal way in due course.
My Lords, when he answered the noble Viscount, Lord Waverley, a few minutes ago, the Minister was equivocal about whether the UK was considering joining RCEP. Could he give a clear yes-or-no answer as to whether, if China were a member by that stage—and it has applied to join—we would apply?
I am happy to give a clear answer to the noble Lord: at the present time, we have no intention of concluding a free trade agreement with China or of applying to join RCEP.
My Lords, I am delighted to hear that the Government have no intention of signing a free trade agreement with China, and I welcome RCEP because it could well have positive implications for companies in the EU and the UK. Does my noble friend agree that this arrangement will allow companies to ship products across the region more easily, without the rule-of-origin problems and with lower costs for those companies and their supply chains across the region? Does he agree that the UK would benefit from that if, rather than leaving the EU on WTO terms, we could retain our agreements with the EU?