Brexit: Aerospace and Automotive Industries

Baroness Crawley Excerpts

Tuesday 14th March 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, the integrated supply chains that have developed over a number of years are not just limited to the EU. The aerospace industry is a case in point: its supply chains are global supply chains—and, of course, under WTO rules there are no tariffs for aircraft or aerospace parts. We should raise the horizon away from just the European Union.

[Baroness Crawley (Lab)]

Following on from my noble friend’s Question on continued access to the European Union single market, what is the Minister’s reaction to recent House of Commons Library research which shows that none of the G20 countries trades with the EU on WTO rules alone? They all have some sort of preferential trade agreement. Does he think that, in the event of our having to rely solely on WTO rules in two years’ time, we will also leave the G20?

[Lord Prior of Brampton]

I think that the Prime Minister has made it absolutely clear that it is our intention to negotiate a free trade agreement with the European Union. That is the policy priority over the next two years.