Comprehensive and Progressive Agreement for Trans-Pacific Partnership — House of Commons, 2021-06-24
Topic: Foreign Trade
William Roffen Esterson (Labour, Centre-left): If all the existing members of the CPTPP ratify the agreement, we will increase our total trade by £3.3 billion. That is quite a lot less than £9 trillion. To put it in context, that total estimate of £3.3 billion equates to about a third of our annual trade with Luxembourg, and £1.7 billion of exports is about 15% less than we export to Kazakhstan each year. Joining the trans-Pacific partnership will produce an increase in GDP over 15 years of just 0.08%, and if Malaysia maintains its refusal to ratify the agreement, as it is threatening to do, that will fall to 0.017%. In real money, that is £400 million, so I suppose the Secretary of State could cover the cost of two new royal yachts instead of one. The reason that the projected increase in trade is so small is, of course, that we already have trade deals with seven of the 11 CPTPP countries, with two more on the way with Australia and New Zealand. The truth is that the extra benefits from joining were always going to be very small. Before the Minister repeats the projected figure of a 65% increase in trade by 2030, he would do well to remember that the increase projected by his Department is regardless of whether we join the CPTPP or not. The Secretary of State puts the CPTPP at the top of her list of priorities, but where, as my right hon. Friend the Member for Warley (John Spellar) said, is the action on standing up for British industry and jobs? We have a steel industry that faces an existential threat because of her inaction. It contributes £2.1 billion directly to GDP and another £2.7 billion indirectly, as well as providing 34,000 well-paid skilled jobs in our regions and a further 42,000 jobs in supply chains. That represents a £4.8 billion contribution to the UK economy, as against a possible maximum benefit from joining CPTPP of just £1.8 billion after 15 years The impact on our economy and our steel communities of losing the British steel industry dwarfs the impact of joining the CPTPP, yet the Secretary of State continues to give all her priority to the latter agenda while resolutely ignoring the former and voting against Labour measures to defend the industry from total ruin. There is still nothing from the Secretary of State on the catastrophic threat to the steel industry from ending the safeguards, which run out next Wednesday. What a disgrace that the International Trade Secretary chose not to use today’s parliamentary time to introduce the emergency legislation needed to save the steel industry. Think of the 76,000 people who work in the steel industry and their families, for crying out loud There is a more direct connection between CPTPP and steel, so when the Minister responds to the debate, can he tell us how the Government will ensure that our membership of CPTPP is not used by China as a back-door route to dump steel on the UK market through Vietnam? What specific provisions will the UK Government negotiate—if they are going to negotiate anything—to prevent CPTPP from enabling the dumping of steel in the UK? Finally, will the Government take the action needed by next Wednesday and save our steel industry?