Trade Agreements

Lord Liddle Excerpts

Thursday 15th July 2021 Lords Chamber

Asked by

[Lord Liddle]

To ask Her Majesty’s Government what steps Her Majesty’s Government are taking to ensure future trade agreements (1) are compatible with the terms of the United Kingdom-European Union Trade and Cooperation Agreement, and (2) take into account relevant regulatory changes by existing trading partners and international organisations.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the trade and co-operation agreement that we have agreed with the European Union does not require us or the EU to align rules with the other party. This ensures that the UK is in control of its own legislation and that we are free to make other free trade agreements around the world. All these trade agreements are capable of accommodating the consequences of regulatory changes by either party, now and into the future.

[Lord Liddle (Lab)]

I thank the noble Lord for his Answer. The purpose of my Question was to explore the priorities and processes that determine the Government’s trade policy. In a way, what I am asking is the mirror image of the replies that he gave on the Northern Ireland protocol. As far as I can see, the Government’s trade policy is focused very much on the Asia-Pacific region, which brings benefits but not terribly big ones by comparison with the overwhelming importance of our trading relationship with the European Union. Do the Minister and the Government’s trade policy recognise that fact and that it will be the case for decades to come? Do the Government take into account that any divergences that we negotiate from EU standards in other trade agreements are bound to cause some friction in the EU relationship? Does he accept that they are going to make the Commission more reluctant to explore—

[Baroness Scott of Bybrook (Con)]

The noble Lord has asked his two questions.

[Lord Liddle (Lab)]

—the flexibility that he is seeking in the Northern Ireland protocol and does he want to build on the spirit of the trade and co-operation agreement to deepen the trading relationship with Europe?

[Lord Frost (Con)]

My Lords, this is clearly an extremely complicated issue and a lot can be said on the subject. I am not sure that I entirely agree with the noble Lord’s underlying judgment. Our trade with the EU has been falling fairly consistently for a decade or two now. Our trade with Asia is rising. Most people think that that is likely to continue to be the case and that the strategic emphasis on Asia is right. As regards the relationship between our regulation and other countries’ regulation through FTAs, of course there are choices to be made, but they are the same choices that every country in the world engaging in an independent trade policy undertakes. They seem to manage it and I am sure that we will as well.