Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 17th May 2018 Commons Chamber

[Dr Fox]

One of the main problems with India, of course, is the tariff that it applies on whisky. We have been involved in a trade review with India for some months now, and part of the process is to look at the areas where we require liberalisation to bring our two economies close enough to be able to consider a free trade agreement. The high tariff applied on Scotch whisky by India is one of the impediments, and we continue to urge them to reduce that.

[Kerry McCarthy (Bristol East) (Lab)]

9. If he will take steps to ensure that the UK has third-party membership of current EU free trade agreements to maintain compliance with rules of origin requirements after the UK leaves the EU.

[The Minister for Trade Policy (Greg Hands)]

Since the draft withdrawal agreement confirms that international agreements continue to apply to the UK during the implementation period, common rules of origin will remain until the end of 2020.  We are keen, of course, to avoid disruption to supply chains, so we are working to secure continuity after this.

[Kerry McCarthy]

I am sure the Minister has met motor manufacturers who have warned that they will simply not be able to meet the 60% local content requirement under rules of origin if EU components cannot be included. At present, the UK content is between about 40% and 44%. How will the Minister address that?

[Greg Hands]

I think the hon. Lady is referring to the EU’s current set of more than 40 agreements with more than 70 counterparts. That is a matter for active discussions. We are obviously trying to secure the best possible deal for UK motor manufacturers, not only those involved with the finished product but those who provide the components, as part of our talks with third parties.