EU-UK Trade and Cooperation Agreement

Lord Bilimoria Excerpts

Friday 8th January 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, the annus horribilis of 2020 drew to a close. As I stated in the Sun,

“what an important achievement this zero-tariff deal has been. Business wanted to leave the EU on good terms. And after four-and-a-half years of wrangling, my reaction to the Christmas Eve deal was: ‘Hallelujah!’”

The deal was a prize. As I said in the same article:

“No deal would have been very pricey for us all as 54 per cent of our imports come from Europe. The cost of food in supermarkets could have risen between three and five per cent while cars would have become more expensive under WTO tariffs.”


Both the UK Government and the European Union deserve huge congratulations. As I stated in a This is Money article:

“This is a big step and a mighty relief for many firms. With a trade deal agreed, vaccine roll-outs starting and rapid mass testing, this can be a springboard to make 2021 a year of recovery. Importantly, a deal provides a platform on which to build and strengthen the UK-EU relationship in the years to come.”


As Tony Danker, director-general of the CBI, said,

“it is vital that both sides take instant steps to keep trade moving and services flowing while firms adjust.”

Matthew Fell, Chief UK Policy Director for the CBI, said:

“It’s incumbent on both sides to minimise disruption and keep goods moving as businesses get to grips with the changes”.


Tony Danker also said that

“we need urgent confirmation of grace periods to smooth the cliff edge”,

while Matthew Fell went on:

“Authorities can help by relying on pragmatism rather than penalties. Honest mistakes should be coached, not penalised in the coming weeks … Greater regulatory cooperation on financial services and mutual recognition of professional qualifications, are just two business-critical issues that will make a material difference. Over the coming weeks and months, it’s vital that government and business work closely to shape the new relationship with the EU and ensure the UK remains a competitive, dynamic and innovative economy.”


I was delighted to hear that Michael Gove’s Brexit business task force will continue to operate; that is excellent. We also welcome the fact that the deal paves the way for UK participation in Horizon Europe, but it does not contain provisions for the Erasmus programme between 2021 and 2027. There are concerns within the sector about whether the new Turing scheme can fully replicate the benefits of Erasmus, particularly due to the new scheme having no provisions for inward student mobility or staff placements. Can the Minister reassure us?

As I said in the Sun:

“We’ve got lots to look forward to … Now is our time to shine … What’s important is that this agreement has never been about the EU versus Britain. Our wealth and prosperity depends upon them and vice versa … now is the time for the Government to seize opportunities. A trade deal means nothing unless British companies are able to make the most of it.”


This is just the beginning—let us make the most of it.