Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss the following:

The schedule.

New clause 1—Assessment of the impact of the CPTPP Chapter on government procurement–environment—

“The Secretary of State must, within three years of Royal Assent to this Act, lay before Parliament assessments of the impact of the implementation of the CPTPP Chapter on government procurement on—

(a) the Government’s plans to tackle climate change;

(b) the sustainable production of forest risk commodities, including palm oil, within UK supply chains,

(c) deforestation, and

(d) the Government’s environmental targets and environmental improvement plans established under the Environment Act 2021.”

New clause 2—Assessment of the impact of the CPTPP Chapter on government procurement–employment and industry—

“The Secretary of State must, within three years of Royal Assent to this Act, lay before Parliament assessments of the impact of the implementation of the CPTPP Chapter on government procurement on—

(a) manufacturing in the United Kingdom;

(b) the job market in the United Kingdom, including but not limited to gender inequality therein;

(c) the level of procurement by local authorities from businesses in their local authority area;

(d) the delivery of public services in the United Kingdom; and

(e) the Government's commitments to the conventions of the International Labour Organisation.”

New clause 7—Impact assessment of implementation of the CPTPP Chapter on Government Procurement on developing country trading partners—

“(1) The Secretary of State must, within 12 months of the passing of this Act and every 12 months thereafter, publish a report on the impact of the implementation of the Government Procurement chapter of the CPTPP on developing country trading partners of the United Kingdom.

(2) The impact assessment under subsection (1) must include an assessment of—

(a) social, environmental, and economic impact on countries with high levels of dependence on the UK market;

(b) steps that have been taken to consult with affected trading partners;

(c) proposed remediation measures for potential economic damage;

(d) how the experience and impact of implementation might inform negotiation of future trade agreements.”

Clause 3 is vital to ensure that we bring procurement legislation into compliance with the Government procurement chapter of CPTPP to ensure that the UK is ready to accede. Clause 3 and, accordingly, the schedule amend domestic procurement legislation, namely the existing procurement regulations that regulate procurement and the Procurement Act 2023, which will regulate procurement for England, Wales and Northern Ireland when that Act substantively commences in October 2024. Those amendments extend the UK’s market access obligations to suppliers from CPTPP parties and introduce two minor technical measures, which will ensure full implementation of the requirements of the Government procurement chapter of CPTPP. Joining CPTPP will build on the existing comprehensive agreements that the UK has with most parties by providing UK businesses with even greater legally guaranteed access to opportunities in their Government procurement markets in several areas.

It is a pleasure to serve under your chairmanship, Mr Davies. I ask for your indulgence and that of hon. Members as this is my first Bill Committee since my election in December 2022.

New clause 1 focuses on the environmental impact of the Bill and aims to keep the Government accountable for their plans to tackle climate change—something we should all be mindful of at this time. It is important to seek further clarification on the environmental impact of the CPTPP agreement and how the Government intend to mitigate detrimental environmental impacts of the UK’s accession to the bloc.

Around 90% of the world’s oil palm trees are grown on a few islands in Malaysia and Indonesia, and just 1% of Malaysian palm oil smallholdings are certified by the Roundtable on Sustainable Palm Oil. That 1% constitutes around 40% of all palm oil plantations in Malaysia. When it comes to palm oil, education is key. We continue to see ongoing misconceptions around sustainable palm oil. Despite 60% of people in the UK knowing about palm oil, a recent Kantar report found that more than 85% did not know about sustainable palm oil, which is an efficient crop with significantly less environmental impact on the land than other vegetable oils. Replacing it with another oil would mean using up to eight times more land for oils such as rapeseed or sunflower. Sustainable palm oil can be beneficial for biodiversity and to protect, conserve and enhance ecosystems. There is still widespread concern about the effect of reduced tariffs, for example, on expanding palm oil imports leading to deforestation. This is a major environmental crisis and it is the second largest contributor to climate change globally after burning fossil fuels.

Nearly 90% of deforestation is attributed to agricultural expansion. The impact of that is not only having an effect on our climate but has resulted in a sharp decline in precious native wildlife such as orangutans, rhinoceroses, hornbills, tigers and elephants, pushing them to the brink of extinction. Indeed, there are now more MPs in Westminster than there are Sumatran tigers on the planet, and deforestation has played a major role in that dreadful statistic.

Crucially, once ratified, the CPTPP agreement will remove import tariffs on palm oil, irrespective of its environmental credentials. That action risks contradicting commitments made by the Government under schedule 17 of the Environment Act 2021 to tackle illegal deforestation in UK supply chains and is irresponsible without the safeguards of the due diligence secondary legislation. In the House of Lords, the Government said they would introduce the due diligence secondary legislation in spring 2024. That remains vague. Can the Minister give further clarification on the timeline for this urgent legislation? Environmentalists are calling for that secondary legislation to be introduced as soon as possible. On behalf of the Government, Lord Johnson also committed to a monitoring report after two years and a comprehensive evaluation of the agreement after five, which will include an assessment of the environmental impacts of the CPTPP trade deal. Our amendment seeks to make the review after three years, rather than five, which is more timely

My hon. Friend makes a powerful point about deforestation and environmental consequences. She might also be aware of Transform Trade’s analysis of the restriction of farmers’ rights to seeds, which underlines the CPTPP’s potential to come into conflict with the UK’s environmental and sustainability goals. There are fears, for example, that the mandatory adoption of the international convention for the protection of new varieties of plants 1991 by CPTPP signatories could severely affect biodiversity and undermine small-scale farming, contradicting commitments under international agreements such as the Paris agreement and the sustainable development goals. Does my hon. Friend agree that it is important both to protect farmers’ rights and to promote agricultural biodiversity?

Absolutely. I thank my hon. Friend for his intervention. He makes an important point, which underlines why the review needs to be timely. Lord Johnson said in the other place that he would be surprised if the evaluation and monitoring reports did not cover information on environmental standards, reduction of the risk of deforestation and many other areas. However, we need more clarity on that point. Specifically, what will the Government include in the reviews?

The review should consider how CPTPP membership has affected the sustainable production of forest risk commodities, including palm oil, within the UK supply chain. Further, the review specifically needs to investigate the impact of membership on deforestation. The Government have yet to outline the details of how they will progress. They have promised to involve conservation experts, but how will that work?

I hope that the Government will engage with expert environmentalists, such as Chester zoo in my constituency, which has been at the forefront of championing sustainable palm oil, both in the UK and in Malaysia, throughout the environmental impact evaluation process from its planning stages to giving evidence. I will take the opportunity to thank Chester zoo for all its work on conservation, biodiversity and environmental issues. Indeed, it is thanks to its hard work, along with Ferrero, that Chester became the first sustainable palm oil city in the UK in 2019, sourcing its palm oil entirely from sustainable sources.

Working with Chester zoo, the international company Ferrero, which for 70 years has made products such as Nutella, Kinder chocolate and Thorntons—as well as what is believed to be the ambassadorial favourite, Ferrero Rocher—was one of the first global companies to source 100% responsible, sustainable, certified and segregated palm oil, and has been recognised by the WWF as the No. 1 manufacturer for sustainable palm oil. Ferrero not only uses sustainable palm oil itself but encourages its use by others. In partnership with Chester zoo through its sustainable palm oil communities project and the SPO education programme, Ferrero helps to educate communities and schools on the role of sustainable palm oil. I thank Ferrero for all it does to raise awareness and bring others along the sustainable palm oil journey.

The Government have not set out what they expect to happen once the review has been completed. Will they commit to a regular review of the environmental impact of the trade deal to ensure that it aligns with our global obligations, such as the targets set under the global biodiversity framework, long into the future? Finally, and more widely on the review, it is important that the Government commit to parliamentary oversight of its findings. Where will the review be published and what level of scrutiny will be enabled? Those details are all missing from the Government’s reassurances so far; clarifications are much needed, hence our new clause.

Looking forward, I know that Chester zoo and others would like to see the Government working to link preferential trade tariffs to sustainable practices. A good example is the free trade agreement between the European Free Trade Association and Indonesia signed in 2021, which included a commitment that palm and other vegetable oils that have been produced protecting primary forests, peatlands and related ecosystems will get preferential market access. This initiative is clearly possible, and something that future trade deals should consider within the primary agreement.

The CPTPP is a great opportunity for the UK to take a position on actively promoting the use of sustainable palm oil and other environmental issues. The agreement will increase UK influence in the region, so we must ensure that we bring it to bear on all these vital issues. I commend the new clause to the Committee.

As it stands, this trade agreement makes a mockery of the Government’s own environmental commitments. On the impact of the CPTPP on the environment, environmental provisions in trade agreements are given significant importance these days. Australia, Malaysia, Mexico and Peru are incredibly diverse; they are defined as mega-diverse regions for supporting more than 70% of biological diversity on the planet. However, we know that the carbon footprint within trade can be significant and deforestation can be exacerbated.

At COP26, held in Glasgow and chaired by the UK, the UK Government spearheaded a global forest initiative aimed at halting deforestation. I am not sure how this agreement, as it stands without this new clause, meets this Government’s own objectives and initiatives. Could the Minister clarify that?

The Trade Secretary previously said,

“you have to make trade-offs” in signing trade deals, and that palm oil was “a great product”. However, we know that reducing tariffs on palm oil could cause huge problems—that product is directly linked to deforestation and damage to habitats, such as that of the orangutan. As it stands, the risks of this trade deal’s rewarding environmental destruction are huge. That is why it is so important to include safeguards, and this new clause.

This trade deal encourages trading products made with pesticides that are banned in the UK, it encourages trade in deforestation-linked palm oil and it rewards environmentally-destructive practices that harm our farmers here at home. Therefore, we need safeguards in the form of impact assessments. We need safeguards on climate—the biggest challenge facing this planet—on deforestation, and on the sustainable production of forest-risk commodities, including palm oil, in UK supply chains.

My hon. Friend is making a very interesting speech. One of the environmental concerns that has been raised with me and others on the Committee by a whole series of green groups is around the use of the investor-state dispute settlement. Thus far, the Minister has ducked answering questions around ISDS. One hopes that in responding to my hon. Friend he might take the opportunity to explain why Ministers are so supportive of ISDS in this context, given the damage it could potentially do in setting back our climate change aspirations under the Paris agreement, and why they were so determined to try and stop ISDS being included in the bilateral free trade agreement with Canada.

My hon. Friend makes some very important points, and I hope the Minister will directly address them.

We need to ensure there are safeguards, and that environmental targets and improvement plans are there to be looked at and addressed. We need those safeguards in the form of impact assessments. We need to make sure that environmental standards are there for the produce that we import within this CPTPP agreement, and that rewards and incentives to encourage destructive practices are not there. We need a level playing field for British farmers, organisations and companies—that are already producing to higher standards, and that are on the path to much more sustainable farming. We need to make sure those practices are not undermined.

I hope the Minister will respond to those points, and that he will vote for this new clause to make sure those standards are upheld and that this trade deal is in line with COP26 and the Government’s very own objectives and initiatives.

As we unpack the CPTPP, a nuanced landscape emerges—especially when considering its impact on the Government’s procurement, employment and industry sectors. Our amendments aim to safeguard issues raised by the likes of the TUC and the NFU, ensuring a balanced approach to procurement that benefits our local economies and upholds sustainability.

Reflecting on the Government’s ambitious projections, compared to the stark realities presented by recent analyses, the anticipated benefits of the CPTPP for the UK might not be as significant as initially claimed. It was initially touted as delivering a substantial boost to our economy, but revised forecasts have tempered those expectations significantly, as I set out at the outset, underscoring the need for a more grounded and critical examination of the agreement. Government procurement is pivotal, as it may alter fundamentally the UK’s procurement landscape, possibly exposing local markets to increased international competition.

Clause 3, concerning Government procurement, emerges as a critical point of analysis. It potentially opens the UK’s procurement market to increased international competition. Its implications necessitate a procurement system that balances competitive fairness with sustainable growth, ensuring that the benefits of global trade do not marginalise our local suppliers, which are the cornerstone of our communities and local economies. Highlighting the significance of local suppliers and stringent labour standards is not merely a pledge to equitable trade practices, but a necessary commitment to safeguarding our communities and enterprises.

Local businesses are pivotal to the UK’s economic vitality, contributing not just through employment but by driving innovation and community development. The Trades Union Congress has raised concerns about the potential erosion of local jobs and businesses, emphasising the importance of maintaining high labour standards and protecting workers’ rights in the new competitive environment. The National Farmers Union has highlighted the risk to British agriculture, pointing out the need for policies that support local food production and sustainability. Those perspectives highlight the necessity of a balanced procurement system that promotes fair competition and sustains local economies. As we navigate the complexities introduced by the CPTPP, it is evident that a principled approach to Government procurement that values the contributions of local suppliers and adheres to high labour standards is essential in fostering a fair and sustainable economic future.

Does my hon. Friend remember that once upon a time, one of the Prime Ministers not so long ago—I think his name was Boris Johnson—backed the idea that we should buy British? However, we have not heard anything recently about that concept. Certainly, the approach in the CPTPP—the lack of an enforceable labour standards provision, for example—suggests that Ministers have given up on the noble ambition of encouraging state bodies to buy British.

My hon. Friend makes the point more eloquently than I would have done. It is pertinent to note the contributions of previous Conservative Prime Ministers that have not materialised. That is why the CPTPP must serve as a catalyst for positive economic contribution, reflecting a steadfast commitment to the values of fairness and sustainability.

The potential of the agreement to reshape the competitive landscape, particularly highlighted earlier by the implications of clause 2 for conformity assessment bodies, warrants meticulous scrutiny. The demand for detailed impact assessments on employment and industry underscores our deep comprehension of the stakes involved. Our policies must safeguard critical sectors, such as automotive manufacturing, and maintain job security and fair labour practices to foster a resilient economy ready for future challenges.

The automotive sector, which is a cornerstone of British manufacturing, faces potential challenges from the increased market access and competition brought about by the CPTPP. The Society of Motor Manufacturers and Traders has highlighted the significant contribution of the automotive industry to the UK economy, emphasising the need for trade agreements to support the growth and stability of the sector. Ensuring that the CPTPP does not disadvantage the sector is paramount in preserving the livelihoods that it supports.

My hon. Friend is surely right to raise the concerns of the automotive sector. In particular, Ministers have failed to protect it from the loss of EU cumulation rights and rules of origin in access to Canada from 1 April. That potentially puts at risk some of the £750 million market for British cars, such has been the failure of the Secretary of State and the Minister present.

My hon. Friend makes an excellent point. The British people were promised bright sunlit uplands. We were promised lots of things but, whether it is the automotive industries, our fishermen or our farmers, there are complaints galore because people feel heavily let down by this Government’s performance. That is why the emphasis on fair labour practices within the context of CPTPP is crucial. The UK’s commitment to upholding high labour standards should not be compromised by international trade agreements.

Labour rights and protections are fundamental to ensuring that the economic benefits of trade are equitably distributed, and that workers are not left vulnerable to the pressures of global competition, which is in line with Labour’s new deal for working people. We advocate for a trade environment that prioritises the protection and enhancement of workers’ rights across all sectors. That initiative aims to ensure that the prosperity derived from international trade agreements, like the CPTPP, directly contributes to improving the working conditions, pay and security of British workers, embodying the principle that fair trade must also mean fair work. In essence, as we navigate the implications of the CPTPP for employment and industry, a balanced approach that protects British jobs and industries, while embracing the opportunities of global trade, is essential.

My hon. Friend is making excellent points. Does he agree that this trade agreement is essential in transitioning to a green economy and in working with partner countries to make that transition in the automotive sector, for example? In order to do that in the right way, we need to ensure that those environmental safeguards are put in place, otherwise we risk the destruction of our automotive workforce in this country.

My hon. Friend makes that point powerfully, and it is essential that those considerations are put forward by the Minister in his response. Those issues around procurement and the impact on our British industries are extremely important. The broad reach of the CPTPP, encompassing countries with diverse labour practices, demands a firm commitment to enforceable labour protections. We cannot leave the door open for a race to the bottom in labour rights. The absence of a dedicated clause on labour rights is a glaring omission, reflecting the Conservatives’ faltering commitment to protecting labour rights in international treaties and highlighting the urgent need for the CPTPP to embody our shared values of fairness and ethical trade practices.

I congratulate my hon. Friend on an excellent speech in which he is highlighting a number of weaknesses in the Government’s approach. Does he agree that his points are particularly relevant, given that we have just entered a recession, and that many working people and small businesses are under increasing pressure from not just the cost of living crisis but wider economic pressure as the economy contracts? I have a number of small businesses and working people in my constituency who have raised deep concerns with me recently. Does my hon. Friend agree that the Government need to be doing more at this critical time?

I thank my hon. Friend for that excellent intervention. The Opposition are extremely concerned, whether it is about our economy going into recession, or the cost of living crisis or the various other forms of malaise that affect our society. We do not want any arrangement with the CPTPP, particularly regarding procurement, that impacts more negatively than what is already going on.

The Chair adjourned the Committee without Question put (Standing Order No. 88).

Adjourned till this day at Two o’clock.