(9 years, 8 months ago)
Lords ChamberMy Lords, I have made it clear in this House before that it cannot be business as usual with Russia while it maintains its position over Ukraine, where it has illegally annexed the Crimea and intervened in another state’s sovereign lands. My noble friend refers to a situation in the Republic of Cyprus that I do not recognise. When speaking to Russian media, President Anastasiades explicitly ruled out the use of Limassol port for military purposes. Foreign Minister Kasoulides also said to the press, after the February EU Foreign Affairs Committee meeting in Brussels, that there was no question of Russian air or naval military bases on the soil of Cyprus. It is a continuation of existing agreements.
In the light of this decision, the visit of President Anastasiades to Moscow, the policies of the new Greek Government and the policy of the Government of Hungary, are the Government concerned about the consensus on Ukraine among the EU countries that remain?
My Lords, it is important that the EU maintains the consensus that it has heretofore. We have, as the European Union, shown remarkable unity throughout the crisis in standing up to Russian aggression and protecting the EU’s interests. For example, the UK has supported NATO allies, demonstrating our commitment at last September’s summit by agreeing to the readiness action plan to enhance NATO’s response to a wide range of threats. There will be an opportunity very soon, at the European Council, for the EU to show the maintenance of its unity over sanctions.
(9 years, 9 months ago)
Lords ChamberMy Lords, first, with regard to aid, the IMF has indeed been carrying out investigations as to the measure of the gap between what Ukraine has, what it needs and what may need to be provided for it. In fact, the next IMF review reports in the middle of this month and will identify the need for further macroeconomic support. At that stage we will be able to judge what our contribution should continue to be. With regard to defensive materiel, my right honourable friend has made it clear in another place that that is something that every NATO country has the right to consider. At this stage, we are not considering supplying or selling defensive materiel to the Ukrainians, who are defending themselves against Russian-supported assault. It is important that pressure is kept up on Mr Putin to do the right thing.
My Lords, so far the EU consensus has held remarkably well but, for the sanctions package to be renewed, I believe that there has to be unanimous support in the EU Council and that vote will be in July. Given the close relationship between the new Greek Government and the Russian Government, and between Prime Minister Tsipras and President Putin, what are the realistic prospects of that consensus maintaining?
My Lords, since the election of the new Greek Government, there have been two occasions on which sanctions have been discussed at a European level. On each of those occasions, the Greek Government have agreed with the consensus of the EU-wide view that it is important to continue these sanctions. Yesterday, in the European Affairs Council, when the next tranche in ramping up sanctions was discussed further, it was decided to postpone their implementation until 16 February to give the diplomatic discussions this week a chance. There was consensus and it is important for all of us that consensus remains.
(9 years, 10 months ago)
Lords ChamberMy Lords, there are quite a few questions there, but important ones, which I shall answer as briefly as I can. The veto is within the format of the constitution—the rules of the game—so there would have to be a change in the rules for the veto to be abandoned. My noble friend refers to the method of selection last time. Last time, of course, Ban Ki-moon was unopposed for a second term, and it is clear that when he was selected at that stage, China had made it known that it would not accept anybody other than an Asian candidate. The method of selection was across the membership, but clearly the P5 have a crucial role to play. My noble friend is right to point out that it is important for women to be considered, too—and with a woman Leader of this House, a woman Leader of the Opposition and a woman on the Woolsack, who would dare think anything else?
My Lords, is it not the case that there are two admirable women in the frame—Helen Clark and Gro Harlem Brundtland? They would not be secretaries; they would be generals.
I always listen with great interest to the noble Lord, Lord Anderson. He enables me to answer another of the several questions that my noble friend Lady Falkner asked with regard to candidates. Names are, indeed, beginning to be floated. If I may change my analogy, it is almost like a susurration—but, as with all susurrations, the names change as well. The noble Lord may have the latest names; there is quite a little list, I think. We do, indeed, need not only secretaries but generals, too.
(9 years, 10 months ago)
Lords ChamberMy noble friend is right to draw attention to the fact that it is important that this does not become a sectarian matter. In the past it has been a three-way battle between the three groups of AQAP, the Hadis and the Houthis. It is important that that does not develop into a sectarian matter. We are working closely with the UN on all these matters, and I know that it has been meeting for a discussion of this today. I assure my noble friend that everything is being done by our embassy through the G10 and the Friends of Yemen to ensure that we get back on track with the peace process.
Our key concern must surely be for the safety of the few British nationals who remain in Yemen and, of course, with our own diplomatic staff—and also, of course, for the danger of a boost to al-Qaeda there and in the wider region. Given that the interests of Saudi Arabia are very involved and that it has been intervening at the border in the past, does the Minister see any danger of a wider and possibly military intervention by Saudi Arabia?
As the noble Lord will be readily aware, we are working through the Friends of Yemen with a wide variety of actors to try to get back on track with the peace process. Of course, he is right to point to the security problems in the area. We know that Saudi Arabia is a main actor in trying to protect its own borders. He can be assured that our embassy staff work constantly in negotiations with other countries to ensure that cross-border activity is prevented.
The noble Lord has given me the opportunity, for which I am grateful, to pay great tribute to our ambassador in Sana’a, Jane Marriott, and all those who work with her, along with those who travel out of necessity from the FCO to do work there. We advise others not to travel, but some have to in order to keep us safe.
(9 years, 10 months ago)
Lords ChamberMy Lords, we are not picking fights with the Russians; it was the Russians who invaded and took Crimea. We are simply making sure that we hold them to their international obligations. The noble Lord is right to point to the importance of the development of Ukraine, but first, of course, they have a lot to do in addressing reform in their country, in particular corruption.
My Lords, is the Minister confident that the West and the international financial institutions are geared to prevent an imminent collapse of the economy of Ukraine? The conventional figure being bandied around is $27 billion, but she may have noticed in this morning’s Financial Times that George Soros was talking about $50 billion and saying that the defence of the economy of the Ukraine is effectively the defence of the West. Are we geared to respond adequately?
My Lords, we are watching very carefully what will happen when the IMF reports. The noble Lord, Lord Anderson, is absolutely right to draw attention to what could be a very severe development and I am aware of Mr Soros’s article this morning. However, until we see the assessment by the IMF, it would be improper of me to make a guess as to what action we should take. It is clear, however, that we and our allies across Europe and in the United States are determined that Ukraine should be able to continue to receive proper support.
(9 years, 10 months ago)
Lords ChamberMy Lords, my noble friend points to her request that deadlines should be imposed. In the past, deadlines have never proved to be the opening of a door to a lasting peace. Clearly, she is right to draw attention to the fact that there are many, both in Israel and in the Arab states, who are working hard to achieve a peaceful outcome. The Arab League and the Arab states have a key role in the peace process, and the Arab peace initiative, through its offer of a normalisation of relations between Arab states and Israel in the event of a comprehensive peace agreement, is an important signal of the benefits that peace would bring to the entire region. It needs to be a comprehensive peace agreement. The advantage of a resolution in the United Nations Security Council, if we are able to achieve it, is that one could achieve a peace that is not only signed but delivered and endures.
My Lords, apart from continued drift and deterioration, does the noble Baroness agree that the only real alternative to a two-state solution is a one-state solution which would, for demographic reasons, mean the end of democratic Israel? In the light of the fact that Secretary Kerry has tried very hard but failed, does she see any prospect of any initiative from the United States over the next few years? Otherwise, the prospects appear very bleak indeed.
My Lords, I hesitate to disagree with the noble Lord’s tenet that Mr Kerry has now failed, but I do disagree with that reading of recent events. I believe that Mr Kerry is determined to continue to take the peace process further. It was regrettable that the United Nations Security Council was unable to achieve a resolution. We continue to believe that negotiations for a two-state solution are the only way forward. We are aware that both Netanyahu and Abbas are ready to continue negotiations. It is important that that process is allowed to continue and that we now have a period where people take stock of what has happened over the past few days and quietly consider how we may constructively move that peace process further.
(9 years, 11 months ago)
Lords ChamberThe original Question was on the balance of trade, not the balance of payments; they are, of course, two quite different things. The balance of trade is in deficit to around £30 billion; it is a deficit of about 2% of GDP, which is significantly better than under the previous Government, when it was on average 2.5% of GDP. As the UK is growing much faster than its partners it is difficult to forecast exactly when it will come to zero. Certainly the OBR expects to see a significant improvement going forward, but I am reminded of the words of J K Galbraith, who said that the only purpose of economic forecasts is to give astrology a good name.
There has traditionally been a deficit on our balance of trade, but always this has been counterbalanced by a large surplus on our service industries. Will the Minister therefore pay tribute to them, including the creative industries and the City, for ensuring that?
The noble Lord is correct that services have been and remain a very strong surplus for the UK. It has to be recognised that, increasingly, services and goods are becoming intermingled. I know that when Rolls-Royce sells a jet engine, almost half the value is a service. One of the things that we should cease doing to a degree is separating off goods and services, because increasingly they are the same. I commend our creative industries, our professional and financial services, our aerospace sector and, indeed, our growing motor vehicle industry which, of course, is the second largest producer of cars in the whole of Europe.
(10 years ago)
Lords ChamberMy Lords, is it not a remarkable fact that an East German woman is now the Chancellor of a united Germany? She is a remarkable leader—the main leader in Europe. Surely we should now do our best not to alienate this remarkable woman and go to the point of no return in our relations with the European Union that she has warned us against.
My Lords, the Prime Minister has a very good working relationship with the Chancellor.
(10 years ago)
Lords ChamberMy Lords, I welcome the noble Baroness, Lady Anelay of St Johns, bid a sad farewell to the noble Baroness, Lady Warsi, who was a very good Minister, and congratulate the noble Lord, Lord Risby, who is an expert in this area. He spoke wise words about the need for diplomacy. These will be welcomed by the noble Lord, Lord Wright of Richmond, who has been saying this, Cassandra-like, for a long time. The noble Lord, Lord Risby, has also given us the opportunity of looking generally at the region, rather than debating particular areas, as we have done in the past.
I reflect first on the speed of change in the region. The so-called Arab spring began less than five years ago with the self-immolation, in December 2010, of Mohamed Bouazizi. Five years ago, all the Arab dictators seemed securely in place. In January 2011, President Ben Ali stepped down after 24 years. Also in 2011, President Mubarak ceased to lead Egypt after 30 years. In the same year, Gaddafi was killed after 42 years in power. In February 2012, President Saleh ceded power in the Yemen after 22 years. The Lebanon remains divided confessionally. Only the monarchies in Morocco and Jordan are relatively safe and unscathed, as are the Gulf states. Five years ago, ISIL did not exist, at least in that name. Dictators have been replaced by a pharaoh and by anarchy. The region now faces further potential destabilisation because of the fall in oil prices. This is good news for western consumers but it is bad news for regimes which rely on high prices to buy off popular discontent.
As for the Arab spring, perhaps “Bliss was it in that dawn” five years ago, but no longer. Why has it failed? It is significant, perhaps, that three of the most stable countries in the region—Turkey, Israel and Iran—are not even Arab. It is no longer credible for regimes to divert discontent by claiming that their troubles are part of a US-Zionist conspiracy. Fundamental to an understanding of the reasons for that failure is a reading and a re-reading of the UNDP’s human development reports of 10 years ago. These showed basic failures in the human infrastructure and in the role of women and inadequate and irrelevant education in the Maghreb and in the Arab world. These have been underpinned by a booming population, youth unrest and Islamic distractions. Who wants to invest given such difficulties?
Pervasive instability begs the question whether it is now time to look again—albeit in the hurricane season—at some of the continuing difficulties and re-examine some of our assumptions. Time permits only to look speedily at three examples. On Turkey, the UK has been one of the strongest supporters of Turkey’s membership of the European Union. Progress has been slow and there has sometimes been the unspoken fear that Turkey is too big, too poor and too Islamic—and not really European. For the United Kingdom, the balance has been the other way: Turkey has been a relative model of democracy in the region, has a booming economy and is a valuable and trusted ally in NATO. Now, perhaps because of the lack of progress, we need to re-examine that traditional policy and look at alternatives.
Domestically in Turkey, there has been a lurch towards more illiberal policies in areas such as the media and the judiciary. Majoritarianism appears to have triumphed over pluralism, which was formerly the policy. Abroad, Turkey has been less than helpful in combating ISIL and Iran’s nuclear ambitions. Does the European Union wish to move its borders to that volatile region? Given the current sensitivities on immigration, can we seriously look at the free movement of labour from that vast country? Should we not stop and look at some of the alternatives—including the one that Chancellor Merkel put forward years ago of a privileged relationship which might ultimately mature into something more solid? At the moment there is glacial movement in the European Union.
A second re-examination should surely be on Israel and Palestine. Yes, of course Israel is right in saying that it is difficult to find a negotiating partner which can deliver. It is also true that Israel has always ultimately had to rely on itself for its own protection. However, the blunt reality is this: in spite of the Bar-Ilan speech of Premier Netanyahu, there have been no serious moves by the Israeli Government to a two-state solution. Indeed, through the settlement policy, all the moves have been to prevent such a realisation. Perhaps the reality is, alas, that no conceivable Israeli Government would divide Jerusalem and no conceivable Palestinian Government would abandon the right of return. Israel, alas, is increasingly isolated at the UN General Assembly, and shortly Palestine may be a new member of the International Criminal Court. So do we still continue to repeat the mantra of a two-state solution? Is it true that the European Union has threatened Israel with sanctions unless the latest moves on settlements are withdrawn? Where does the UK stand on the latest threat?
Finally—and in one minute—I give at least some good news on the region. The good news, of course, is Tunisia. It is all comparative, but Tunisia had a remarkable election last weekend with a change of leadership from the Islamist party, which had made several compromises on Sharia law and women. The constitution was agreed in January, relying in part on advice from the Venice Commission. The secular party won the election. However, in spite of this political change, which is a model for the rest of the Maghreb and the Arab world, there are vast economic problems. How do we respond? I end with this question: how do we build on this remarkable political achievement by ensuring that it is underpinned by economic success? I look forward to hearing what the Minister says about how we might respond to the good news which is Tunisia.
(10 years, 1 month ago)
Lords Chamber
To ask Her Majesty’s Government what assessment they have made of the prospects for the free trade agreement between the United States and the European Union.
My Lords, we are pushing for a broad agreement that eliminates the vast majority of tariffs and reduces other unnecessary barriers to trade. This will help small businesses in particular and promote growth and jobs. There have been seven rounds of negotiations with good progress, given that it is slightly over a year since the negotiations started. We are aiming for an ambitious agreement in 2015.
My Lords, the Minister will be well aware that at the EU Council meeting in June 2013 the French won a signal victory by using their political veto under the cultural exemption to exclude audio-visual services from the negotiating mandate because they considered them a matter of national interest. I should also mention that the Commission was given leave to produce further changes to the negotiating mandate. Do we consider the National Health Service to be a key national interest? If so, have we tried to exclude our health service from the investment provisions? If not, why not?
The difference between the NHS and audio-visual services is that audio-visual services were included originally, whereas the NHS was always exempted. It is probably best if I quote the EU Trade Commissioner on the matter:
“Public services are always exempted—there is no problem about exemption. The argument is abused in your country for political reasons but it has no grounds”.