International Banking: Payments

Debate between Lord Livermore and Lord Hannay of Chiswick

Thursday 28th November 2024 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for the points that he raises, and I agree that, of course, we should take these developments seriously. I will not comment on the specific proposals announced by the BRICS countries that he refers to; I would not want to speculate as to what systems may or may not come into common usage. The Government believe very much that the current international model for the financial system works effectively, and we will continue to work with our international partners to maintain an interconnected financial and economic system. On the noble Lord’s question on the effectiveness of sanctions, we continue to believe that economic sanctions are an important and effective tool, and we will continue to utilise those sanctions where necessary. On the potential to undermine them, we will pursue any necessary steps with our allies to maintain the interconnected system and reduce opportunities for the circumvention or evasion of international sanctions.

[Lord Hannay of Chiswick (CB)]

My Lords, does the Minister agree that if the President-elect of the United States goes ahead with some of the more extreme versions of his tariff ideas, it is likely to add a momentum and an impetus to the attempts by the BRICS to break away from the financial system that currently exists?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. On the potential move by the forthcoming Trump Administration, the UK will continue to work closely with the US on a range of security issues, including sanctions, to advance our shared priorities. I do not think it would be appropriate for me to comment on the Trump Administration’s future policies. In terms of actions by the BRICS, we obviously respect each country’s right to choose its own path and partners, but we will continue to collaborate with our international colleagues around the globe, including BRICS members, in forums such as the UN and G20, to build an open, stable and prosperous world.