EU: Free Trade Agreements

Lord Hamilton of Epsom Excerpts

Monday 13th January 2014 Lords Chamber

[Lord Livingston of Parkhead]

The challenge of child labour in certain countries can happen irrespective of free trade, but I think that free trade will actually help through the exposure and openness of the economies, which is a major help to improving the conditions of workers in individual countries. That is something we will continue to push for. As I said earlier, we also put human rights clauses in the various agreements and the UN has certain statements on human rights, which we also look to comply with. It is an important subject, but it is not peculiar to free trade agreements.

[Lord Hamilton of Epsom (Con)]

My Lords, is it not inevitable that, as long as European energy prices are double—or, in the case of Germany, triple—that of the United States, there is inevitably going to be a transfer of manufacturing to the United States?

[Lord Livingston of Parkhead]

As I said earlier, energy prices are a significant issue for EU-US relations, but they are not the only issue and there are many industries that are not wholly reliant on energy prices. In fact, energy prices are just one part of the total package. We would also look to see the exploitation, for instance, of alternative energy sources in the UK, which will hopefully act to balance some of that. With that in mind, I was delighted to see the comments from the Prime Minister about looking for alternative energy sources. The UK, which is already an energy producer through conventional means, is also looking at alternative sources of energy, and that is going to be very important for the future of the UK.