Brexit: World Trade Organization
Debate between Baroness Sugg and Lord Mendelsohn
Lord Mendelsohn
To ask Her Majesty’s Government what is their response to the letter of objection from the governments of the United States and other non-European Union countries to proposals to split World Trade Organization tariff rate quotas following Brexit.
Baroness Sugg (Con)
My Lords, the United Kingdom wants to ensure a smooth transition in the World Trade Organization that minimises disruption to our trading relationships. We intend to discuss intensively our proposals on tariff rate quotas and other matters with our partners in the WTO over the coming period. This is the start of an ongoing process and it is very much our intention to respect and preserve existing trade flows.
Lord Mendelsohn (Lab)
Does the noble Baroness agree that the United States’ rejection of the EU-UK plan for splitting existing quotas within the WTO raises serious doubts about the ability of the UK to negotiate the proposed “beautiful trade deal” with them? Can she further explain the Government’s options in conducting trade deals during the likely years of delay it will take to resolve this matter, which will restrict and encumber the ability to conclude agreements covering areas such as agriculture and government procurement?
Baroness Sugg
I am afraid I do not agree with the noble Lord about our relationship with the US. The US is a very important partner for us—already our largest trading partner, with a fifth of our exports outside the EU. Of course, it is not just about trade. The US is the largest single investor into the UK. We remain positive about our trade and investment relationship with the US. Both the Prime Minister and the President have repeatedly made clear our shared commitment to bilateral trade discussions, including a future trade deal.