UK-EU Relationship (European Affairs Committee Report)

Lord Howard of Rising Excerpts

Wednesday 20th September 2023 Lords Chamber

[Lord Howard of Rising (Con)]

My Lords, I congratulate the committee on its report and on recommending closer co-operation with the EU. This is to be applauded, although sometimes I wonder how much lack of co-operation is as much the fault of the EU. I have no doubt that the report will contribute to overcoming impediments to closer ties. At the same time as applauding the committee’s desire for closer co-operation with the EU, it is worth pausing for a moment to reflect on how leaving the EU has allowed the UK to pursue an independent trade policy, striking several new agreements with real benefits for the UK economy and leading to closer international co-operation, to the benefit of Great Britain and the EU.

Our free trade agreement with Australia removes tariffs on £4.3 billion of UK exports, making it cheaper to sell iconic products such as ceramics and Scotch whisky. British companies have also been granted the most substantial access to Australian procurement contracts worth billions of pounds. Meanwhile, cheaper imports will save British households up to £34 million each year, and the deal creates new opportunities for young people and professionals to work and travel in Australia.

Last year’s deal with New Zealand is expected to increase bilateral trade by almost 60% in the long run, boosting the UK economy by £800 million. The agreement cuts red tape for the 5,900 UK small and medium-sized businesses that export to New Zealand, as well as ensuring that services exporters from accountancy to engineering can compete on an equal footing. Notably, it includes a world-leading environment chapter to encourage trade and investment in low-carbon goods, services and technology.

The UK has just opened a new gateway to the Indo-Pacific by joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, building our relationship with economies that will account for most of global growth in the decades to come. No one should underestimate the importance of this agreement. These countries account for almost 10% of investment into the UK, creating over 5,000 jobs in 2021 and 2022, and the CPTPP offers protections, which will encourage further growth. The agreements on rules of origin also create opportunities to diversify our supply chains, and membership allows the UK to shape the CPTPP’s fight against unfair and coercive trading practices. Joining the CPTPP also means that the UK will have a trade agreement with Malaysia, to which UK businesses exported £1.7 billion of services in 2022.

Less than two weeks ago, the UK signed a strategic partnership with Singapore to enhance co-operation on the economy, security and innovation. This includes a first-of-its-kind partnership with Singapore’s Digital and Intelligence Service, drawing on common strengths such as AI to tackle emerging cyber threats. This builds on our 2022 digital economy agreement with Singapore, which helps businesses seize new trade opportunities by opening digital markets, protecting intellectual property and digitising trading systems. I look forward to seeing progress in our ongoing negotiations, including work towards new agreements with India and the Gulf Cooperation Council.

None of these agreements impedes closer co-operation with the EU. Indeed, they enable the EU, through having trade accommodations with us, to join in these wonderful things that have been arranged.