UK-US Trade Deal Negotiating Objectives

Lord Lilley Excerpts

Monday 2nd March 2020 Lords Chamber

[Lord Lilley (Con)]

My Lords, I welcome the Government’s Statement and hope that these negotiations are successful, but is it not important to put the importance of trade agreements into perspective? What actually drives trade is the production of goods and services that other people want to buy. Trade agreements are of secondary importance, as illustrated by the relative growth in our trade with countries with whom we trade solely on WTO terms and have no free trade agreement with. The WTO and the single market were set up at the same time, when I was Secretary of State for Trade and Industry. Our exports of goods to WTO-only countries has grown by 87%, faster than those economies themselves have grown and six times faster than our exports to the EU, which have grown by barely 0.5% a year, which is slower than the growth of the economies of the EU.

[Viscount Younger of Leckie]

My noble friend makes an excellent point. The opportunities for the UK are substantial. I say again that this is a landmark deal that will set the standard for world-leading trade agreements. Starting off with the US is a very good start. For example, it is very exciting that tariffs will likely be reduced for Bentleys from Crewe, Aston Martins from Warwickshire and Wales, UK cheese, which currently has a 17% tariff, and ceramics from Warwickshire, which have a 28% tariff. We hope that these tariffs will be reduced, as they should be, in the negotiations. Noble Lords might ask me, as the Minister, what we are going to get in return from America. That includes raisins and wine from California, and, as the Prime Minister said, Stetsons replacing salmon. There is a lot to be hopeful about in the negotiations.