Trade Balance

Debate between Lord Tomlinson and Lord Livingston of Parkhead

Thursday 11th December 2014 Lords Chamber

[Lord Livingston of Parkhead]

I commend the noble Lord for his enthusiasm for exporting, although I think that he does the UK some disservice. We are the sixth largest exporter in the world—the second largest exporter of services. I agree with him that it has not been a key priority for past Governments, but it most certainly is for this Government. With regard to import substitution, while I would not refer to it in these terms, there is for instance the recent announcement by the Prime Minister of a Reshore UK service within UKTI to encourage manufacturers to come back to the UK. That is just one example of the many things we are doing to help our position in the long term on the balance of trade.

[Lord Tomlinson (Lab)]

Will the Minister do the House a favour by reminding us what the balance of payments deficit is at present, and then perhaps address the original Question about when we are likely to be in surplus?

[Lord Livingston of Parkhead]

The original Question was on the balance of trade, not the balance of payments; they are, of course, two quite different things. The balance of trade is in deficit to around £30 billion; it is a deficit of about 2% of GDP, which is significantly better than under the previous Government, when it was on average 2.5% of GDP. As the UK is growing much faster than its partners it is difficult to forecast exactly when it will come to zero. Certainly the OBR expects to see a significant improvement going forward, but I am reminded of the words of J K Galbraith, who said that the only purpose of economic forecasts is to give astrology a good name.

Free Trade Agreement: US and EU

Debate between Lord Tomlinson and Lord Livingston of Parkhead

Thursday 23rd October 2014 Lords Chamber

[Lord Livingston of Parkhead]

My noble friend is right: there are a number of concerns about TTIP, some of them genuine but some of them ill conceived. We are engaging with a number of interest groups, particularly NGOs, consumer associations and small businesses. In fact, I have a meeting within the next two weeks with some of the people who were protesting outside BIS’s offices quite recently.

[Lord Tomlinson (Lab)]

Will the Minister now manage to put aside any concerns about the malign influence of UKIP on the Government’s policy in relation to the European Union, particularly in the light of the opinion poll in last night’s Evening Standard? That showed that, were there a referendum tomorrow on withdrawal, it would be defeated by 20 percentage points.

[Lord Livingston of Parkhead]

The UK is a great champion in the EU of free trade and the single market. As Trade Minister, I take this role very seriously. The UK continues, and will continue, to have a lead position in promoting free trade within the EU and from the EU to other countries around the globe.