UK-Japan Comprehensive Economic Partnership Agreement — House of Commons, 2020-11-25
Topic: Foreign Trade
Martin John Vickers (Conservative, Centre-right): After the rather negative contributions from the Opposition, I hope to make a more positive case. I congratulate the Secretary of State and the ministerial and negotiating teams on achieving the deal, and it is nice to know that, as a post-Brexit free sovereign nation, we can manage to conclude such a worthwhile deal As a member of the International Trade Committee, I have had the opportunity to scrutinise the agreement in detail and can assure the House that it is a significant improvement on what we previously had via the EU. I can also assure hon. Members that food standards, animal welfare and so on will not be compromised As we move forward, the Opposition might be accused of moving the goalposts in their assessment of the deal. Prior to the announcement of the historic agreement, critics of the UK negotiating team claimed that we were not able to secure a deal as good as the EU’s. Now that we have a deal, the same people complain that it is only on a par with the EU’s. I can assure the House that they were wrong to be pessimistic in the first instance, and they are wrong about the result in the second. It is certainly true that we have replicated key elements of the EU-Japan deal, and that provides much-needed continuity and certainty to UK businesses involved in trade. However, this is a deal tailored to the UK economy, which secures additional benefits beyond what the EU was able to secure The most notable differences can be seen in the provisions on digital, data and financial services. Those are areas in which the UK already has a very strong comparative advantage, so the deal represents a significant boost to British business. The City of London Corporation labelled those provisions "a major achievement". In some areas, we have agreed to implement the same measures as the EU but on a faster time scale, such as the 21 industrial tariff lines that will be eliminated under the CEPA immediately, in January. Another example is the immediate withdrawal of UK duties on two tariff lines relating to electronic control panels for electric vehicles, which will not be eliminated until 2024 under the EU agreement The UK is a trading nation; 64% of our GDP comes from imports and exports. I understand that the Department for International Trade has identified around £88 million-worth of trade with Japan that could gain from lower tariffs, owing to more liberal rules of origin. Those new rules, which again go beyond what the EU has in place, will be a big bonus to the many British businesses that import products in order to add value to them in some way In respect of visas, the International Trade Committee concluded that the CEPA represents an improvement on the JEPA in a number of respects. Financial services represents one of the areas in which we have made significant strides beyond the Japan-EU agreement. UK suppliers will now be able to offer new financial services on the same basis as Japanese suppliers in all modes of supply, whereas the JEPA only allows for one mode. That is an improvement. A further example relates to the joint UK-Japan Financial Regulatory Forum. That is an improvement on the EU deal, which only gave the UK indirect representation. From next January the UK will be its own representative, on an equal footing with our partners. The House can be reassured that those improvements have been widely welcomed by industry On digital trade and data, the UK has negotiated more ambitious provisions. Industry can be assured that the agreement also goes well beyond the EU deal in respect of intellectual property, where provisions are in place to protect trademarks and copyright. We have also got a better deal for geographical indicators. Japan has 55 products that it wants to get on to the UK register, and we have 70 products—including, of course, traditional Grimsby smoked haddock, vital to my constituency and its neighbours The UK-Japan agreement creates a working group for co-operation in the field of agriculture. That contrasts with the EU by producing a system involving fewer administrative burdens and allowing greater flexibility while maintaining appropriate decision making. Reference was made earlier to Bosnia-Herzegovina and Serbia. As the Prime Minister’s trade envoy to the western Balkans, I can assure Members that negotiations are continuing and I am pretty confident of success. Free trade is the foundation of this country’s prosperity and I can assure the House that we want more free trade. This agreement provides the opportunities.