Free Trade Agreement Negotiations: Australia

Debate between Lord Liddle and Lord Grimstone of Boscobel

Thursday 24th June 2021 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, it is a great pleasure to answer my first question from my friend and noble friend Lord Udny-Lister from this Dispatch Box. He is right: we are making extraordinary progress on negotiating these free trade agreements, and the free trade agreements we hope to strike not just with the Trans-Pacific Partnership but with the GCC, Canada, Mexico, India and a number of other countries around the world are designed entirely to benefit the British consumer. I welcome his support for that.

[Lord Liddle (Lab)]

My Lords, now that we are out of the EU, I welcome trade deals we do with the rest of the world, though I have concerns about the agricultural dimension of this. I have great respect for the Minister as a highly intelligent and objective man. If he reads the Statement delivered in the other place, does he not agree that it is hyperbolic and propagandist? It is hyperbolic in the sense that it talks about “huge benefits”. Most economists estimate the benefit to UK GDP of this agreement to be about 0.2%. It is propagandist in that it talks about how we are no longer

“hiding behind the same protectionist walls that we had in the EU”.—[Official Report, Commons, 17/6/21; col. 453.]

He must recognise that in the new Pacific world to which we attach so much importance, Germany—a member of the EU allegedly held back by those “protectionist walls”—is able to export two or three times as much as we do at present.

[Lord Grimstone of Boscobel (Con)]

My Lords, I first thank the noble Lord for his kind comments. It is the case that politics sometimes enter into these matters in the other House. Maybe that is not a surprise, given the importance of these agreements. I hope the noble Lord agrees that when I comment on these matters in this House or in front of our very well-run IAC, I try to give my answers in a measured and constructive way.