Japan Free Trade Agreement

Baroness McIntosh of Pickering Excerpts

Thursday 17th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for that question. We are all aware of the vast amount of trade that we have with the European Union and the impact of that not just on our car industry but on other industries. That is why I am sure that he will join me in hoping that those negotiations reach a sensible conclusion. We believe that we have put pragmatic proposals to the EU, and we are hoping that it will shortly see that and agree an agreement with us.

[Baroness McIntosh of Pickering (Con)]

My Lords, I warmly welcome this agreement. My question is simple. My noble friend stated that we will continue to be bound by the state aid arrangements that currently apply to the EU-Japan agreement. Why will we not agree to be bound by those same rules in our future relationship with the EU? What is so different between that relationship and our relationship with Japan?

[Lord Grimstone of Boscobel (Con)]

I thank my noble friend for her question. Perhaps I may repeat that the state aid provisions found in this free trade agreement are de minimis and in no way compare with what one might call the state aid environment that is the matter under discussion between the UK and the EU. Full details of this will be seen when the agreement is finally published.