EU: UK Balance of Trade

Debate between Baroness Warsi and Duke of Montrose

Wednesday 14th November 2012 Lords Chamber

[Baroness Warsi]

My noble friend makes an important point and perhaps I may add to her statistics. Membership of the European Union gives us access to a market of more than 500 million consumers and more than 45% of UK exports are to the European Union. The point made about foreign direct investment is an important one. In 2011 the UK attracted a fifth of all foreign direct investment projects in Europe and half of all the European headquarters of non-EU firms are based in the United Kingdom.

[The Duke of Montrose]

My Lords, I declare an interest as a farmer. Is my noble friend aware that our balance in food trade with the EU in 2011 was a deficit of £13.6 billion?

[Baroness Warsi]

I was not aware of those specific issues in relation to food trade. However, I go back to the general point. There will be some areas, predominantly in goods, where we run a deficit but there are other areas, in which we are very good, such as services, where we run a surplus.