Trade Agreements

Baroness Hayter of Kentish Town Excerpts

Thursday 15th July 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, my right honourable friend the Secretary of State for International Trade is obviously responsible for most of those negotiations. I am in 100% agreement with her that they offer huge opportunities for this country. The ability to trade freely with a larger number of countries around the world, while setting our own rules in a way that suits us and this economy, will be of huge benefit to us in years to come and we are all looking forward to that.

[Baroness Hayter of Kentish Town (Lab)]

The Minister has admitted that the extra barriers caused by the protocol have had a dampening effect on free trade, but he does not seem to accept that the extra barriers between us and the EU similarly have an effect on the freedom of trade and the amount we will export to the EU, which is still our nearest and biggest market. Indeed, exports of food and drink—our major export industry—fell by 47% and increased by a mere 0.3% outside the EU. We have to continue to trade with Europe. Will he set out how the Government propose to reverse the export fall to Europe?

[Lord Frost (Con)]

My Lords, the noble Baroness is a little over-pessimistic about where things stand at the moment. The latest trade figures, which came out last week, show that our exports to the EU are now well above the average levels of last year and are almost at the levels of 2019 and 2018. Our business has done a great job in dealing with that. I have never sought to hide the fact that leaving a customs union creates new barriers. I am very happy to see that our businesses are dealing with them very successfully. They are different in nature from barriers within a country, and that is the difference between some of the effects that we are seeing with our exports to the rest of the European Union and the chilling effect on trade within the United Kingdom because of the way that boundaries currently operate.