UK-US Trade Deal Negotiating Objectives

Baroness McIntosh of Pickering Excerpts

Monday 2nd March 2020 Lords Chamber

[Viscount Younger of Leckie]

It is praise indeed that the noble Lord, Lord Kerr, has said that the document is admirable and I am pleased to have been able to listen to that very carefully. I take note of what the noble Lord says about the US and our prospects, but I do not agree. If we take, for instance, SMEs as one particular issue, there are 5.9 million small businesses, but relatively few export to the US. This new deal will provide a tremendous opportunity for SMEs to do business in the US. From the analysis we have done—the noble Lord will have probably read the document—we believe we have more to gain in the UK in terms of business with the US than the US has in return. I think it is exciting and I am not at all dismissing the point made by my noble friend Lord Howell and the noble Lord, Lord Kerr, about the importance of the Far East. The point is that, as we have left the EU, and as we go through this transition period, the opportunities are absolutely tremendous in terms of what we can do in global deals generally, but it makes sense for us to start with the US.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend remind me: was is not the United States that imposed a tariff of 25% on exports of Scotch whisky to the United States from Great Britain? Will my noble friend ensure that the Government make it a commitment of these negotiations that that tariff will be removed? Can I pin him down on the wording used in both Houses? He said that the Government will not lower our standards of environmental and animal welfare. Will he commit to prohibiting imports of any product of animal origin from the United States that does not meet the same standards of production in this country?

[Viscount Younger of Leckie]

I will first take up my noble friend’s question about Scotch whisky. Yes, it is true that there is this 25% tariff on Scotch whisky, but my understanding is that that is linked to an unfortunate state aid issue linked to Airbus. This is unfortunate and disappointing. My noble friend will know that we are looking to work through those issues. We very much hope, wish and expect that the tariffs on Scotch whisky will come down. My noble friend makes a very good point—I know that she has raised the issue of environmental standards on several occasions. Once again, we will not lower our standards as we negotiate new trade deals.