UK-US Trade Deal Negotiating Objectives

Lord Howell of Guildford Excerpts

Monday 2nd March 2020 Lords Chamber

[Viscount Younger of Leckie]

I am much more optimistic than the noble Lord. I can perhaps reassure him that we are aware that some reforms are required for the WTO. We very much want to play our part in ensuring that those reforms are carried through.

The second thing to say is that the US deal is the first of several. The noble Lord will know that we have Japan, New Zealand and Australia to come, and of course the EU. There was a chance in the past few days, and yesterday, to question my noble friend Lord True on the EU deal. I do not want to be drawn in on that except to say that, in the US deal, we start from a very good platform because we are one nation negotiating with one other nation; with the EU, it is of course a bit more complicated, in that we are dealing with 27 countries —and the House will understand when I say that there are a few more complications than that. However, we are very confident that we will be able to negotiate both a US deal and an EU deal in parallel. I hope that helps to answer the noble Lord’s questions, but I doubt it.

[Lord Howell of Guildford (Con)]

My Lords, the Department for International Trade has obviously done an enormous amount of work on this issue, a large amount of it under my right honourable friend Dr Liam Fox, the former Secretary of State who was doing a very good job on all fronts. It is absolutely right, as your Lordships have observed, that the USA is far the largest single country market force at 20%; about half is services and is growing, and the other half is goods, which is shrinking. But most consumer market growth in the next 10 years will not be in America, or indeed in Europe—it will be in Asia, by far. That is the huge new area where we have to succeed. Asia will shortly make up half of the world’s GDP, if not more. That happens to be where we are weakest, so I urge my noble friend to remind his colleagues in the Department for International Trade that we should think carefully about our priorities and not spend too much time trying to perfect our excellent trade with America—that may now get more difficult, not easier—when we should really be concentrating all our resources on finding our way into the giant Asian markets, which will really determine our future and prosperity.

[Viscount Younger of Leckie]

I agree with my noble friend that the Asian market is very important. I mentioned Japan earlier, which he will know is very much on the agenda. There is, of course, more to do in Asia, but I go back to the statistic that I gave earlier: we intend, over the next three years, to cover 80% of our trade deals. That, I would argue, is a very good start. It is right that we are starting not just with the EU but also with the US. It is on the basis that the US, clearly, is on our side: it wants to secure a deal as well.