UK–Commonwealth Trading Relationship
Debate between Baroness Scott of Bybrook and Viscount Trenchard
Viscount Trenchard (Con)
My Lords, it is a great pleasure to speak in this timely debate. I congratulate my noble friend Lord Howell, both on securing the debate today and on his inspirational and interesting speech. He has long been the strongest advocate of the Commonwealth and the huge potential benefits it can offer all its members. Our 47-year dalliance with the EU has meant we have not pursued the valuable opportunities open to this unique association of 54 member states to make a great contribution to free trade, security and stability across the world.
It is good news that we have reached agreement in principle on a free trade deal with Australia. The lord mayor’s virtual visit to New Zealand in May showed great enthusiasm in that country for the progress being made towards a free trade agreement, with ambitious digital provisions.
India is another major Commonwealth country with which we are now moving to make up for lost time. The lord mayor’s virtual visit there in November 2020 provided a further boost to London’s fintech industry, which is now worth £6.6 billion to the UK economy and accounts for 76,000 jobs. UK-India collaboration is an important factor at the heart of the growth and continued success of the sector. Stephen Booth, head of the Britain in the World project at Policy Exchange, has also written about the positive results from the Prime Minister’s recent summit with Narendra Modi. Mr Modi coined the term “living bridge” to describe the deep connections between the two countries, in part deriving from the 1.6 million UK nationals of Indian descent.
The most exciting development in our new independent trade strategy is our application for accession to the CPTPP. It is notable that among the 11 member countries of partnership are six Commonwealth countries. Our application to the CPTPP provides hard evidence that we are serious about our tilt to the Indo-Pacific, as an important part of global Britain. I hope that other Commonwealth countries which share our commitment to free trade and the prosperity it generates may follow our example in joining the organisation. They may also consider that, against the background of the rise of China, membership offers geostrategic and security advantages.
The noble Lord, Lord Triesman, suggested that geographic distance acts as a barrier to trade in goods. I remind him that Ottawa is 16,000 kilometres from Canberra; both are members of the CPTPP. As my noble friend Lord Lansley said, our new trade agreements have strong digital provisions and global Britain is as much about services as goods, leveraging London’s position as clear global leader, in spite of a failed attempt to sabotage international equities markets. Does the Minister agree that the sooner the UK completes—
Viscount Trenchard (Con)
Yes, I will just finish.
—completes our accession negotiations, the better, both because Japan is providing strong support during its presidency, which lasts until the end of the year, and because the UK’s role in developing the modus operandi of the organisation will be maximised by our early involvement?
Ironically, particularly prior to the possible future return to the organisation of the US—
Baroness Scott of Bybrook (Con)
I am sorry, but I ask the noble Viscount to finish now, please.
Viscount Trenchard (Con)
Can the Minister tell the House when he expects the accession negotiations to be completed?