Worldwide Free Trade
Lord Kinnock Excerpts(6 years, 8 months ago)
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Baroness Fairhead
Clearly, in the Department for International Trade we are great believers in the benefits of free trade. We believe that free trade must be fair and conducted within a rules-based environment. When we look to exiting the EU, we are looking for a strong ongoing trading partnership with it, and we are looking for a strong ongoing trading partnership with the Commonwealth and other nations. That is why it is particularly important this week, with the Commonwealth Heads of Government Meeting, that we concentrate on a number of areas, one of which is free trade and the trading relationships we have.
Lord Kinnock (Lab)
My Lords, does the Minister recognise that 44% of our exports now go to the rest of the European Union and a further 17% of them go to the 50-odd countries with which the EU currently has free trade agreements, and that this constitutes in excess of 61% of British sales to other parts of the world? There is no substantial evidence to suggest that our departure from the European Union will in any way enhance the possibility of increasing our trade, under free trade terms or otherwise, with the remainder of the world.
Baroness Fairhead
Let me take that in two parts. On the relationship with the EU, it will clearly remain a very important trading partner for us. We need to make sure that we have as frictionless an environment with the EU as we possibly can. We believe that the freedom to be able to make free trade agreements with other countries will allow us to have the trading agreements in the future that can boost our trade further. Regarding those qualitative assessments that we made as part of the impact assessment, we looked at one report from Head and Mayer which had looked at 159 academic reports about the benefits of FTAs. All I can say is that from that information, while it depends on the scale, the relationship and the supply side, the median increase is around 32% from a free trade agreement.