Oral Answers to Questions

Lord Lilley Excerpts

Thursday 8th September 2016 Commons Chamber

[Dr Fox]

Industry dislikes uncertainty, as the hon. Lady says, but I would add two uncertainties into the equation. The first is the uncertainty over Scotland’s fiscal position. We have seen the deterioration in the position, which makes me very grateful that the people of Scotland took the sensible decision to remain in the United Kingdom. The second is the uncertainty posed by the Scottish Government and their constant reference to a second independence referendum. I can think of no greater cause of uncertainty for Scottish business investment.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

T3. Can my right hon. Friend, whom I congratulate on his appointment, confirm that were we to remain in the EU we would stand little prospect of trade deals with the two largest countries in the world—India and China? China is not agreeing to open negotiations with the EU and India has broken them off. Outside, we can follow the example of Switzerland, which already has a free trade agreement with China and is going ahead to negotiate one with India?

[Dr Fox]

Switzerland is still negotiating its trade agreement with India, but my right hon. Friend is correct that leaving the EU will give the UK greater freedom to strike its own trade agreements, including with some of the largest and fastest-growing economies in the world. As he will well know, these will not necessarily be straightforward, as these countries are tough negotiators, but it would be much simpler to negotiate a bilateral agreement, and they have shown greater willingness to negotiate a bilateral deal outside the complications that sometimes come with an EU free trade agreement, which is often a political agreement rather than a pure FTA.