UK-US Trade Deal Negotiating Objectives

Lord Howarth of Newport Excerpts

Monday 2nd March 2020 Lords Chamber

[Viscount Younger of Leckie]

I will first take up my noble friend’s question about Scotch whisky. Yes, it is true that there is this 25% tariff on Scotch whisky, but my understanding is that that is linked to an unfortunate state aid issue linked to Airbus. This is unfortunate and disappointing. My noble friend will know that we are looking to work through those issues. We very much hope, wish and expect that the tariffs on Scotch whisky will come down. My noble friend makes a very good point—I know that she has raised the issue of environmental standards on several occasions. Once again, we will not lower our standards as we negotiate new trade deals.

[Lord Howarth of Newport (Lab)]

My Lords, should the EU be minded at some stage in the negotiations with us to allow new trade barriers, tariffs and quotas to be erected that affect trade between the EU and the UK, will it not be all the more important that we get on with some urgency to negotiate for the reduction of tariffs, quotas and trade barriers between ourselves and the US? If we do so, will that not encourage our exporters and consumers to believe that the damage caused by the unsatisfactory progress of negotiations with the EU will be offset? Will it not also encourage exporters and consumers in the EU to put pressure on their negotiators to think better of it and not allow new trade barriers to be erected between the EU and the UK?

[Viscount Younger of Leckie]

I am sure the whole House will agree when I say that trade barriers and tariffs are a disincentive to business and that we do not want them. We realise that some are now trading under WTO terms, but the whole point of negotiating with the US, and in particular with the EU, is to get to a point where we lower those barriers. That will obviously be good for businesses and jobs. On the point that I think the noble Lord was making, as I said earlier, we have for some time been prepared to negotiate with the EU at the same time as negotiating with the US. We have the people, the working groups and preparations in place. I see the two working very well in tandem. The linkages that will be made between my department—the Department for International Trade—No. 10 and other departments will be made for both negotiations.