Motor Sector: Export Markets

Lord Purvis of Tweed Excerpts

Monday 14th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, the noble Baroness makes a very good point and I am aware of the great enjoyment that these vehicles give to people throughout the United Kingdom. I do not have the details of those matters, but I will write to the noble Baroness with them.

[Lord Purvis of Tweed (LD)]

My Lords, after everything that the Government have said over recent days and recent years about the need to retain or gain complete autonomy and freedom over state aid rules, would it not be inconceivable that the deal with Japan that the Minister referred to would in effect put into a treaty—which we would have to put into domestic law—the EU regime of restrictions that the Government say they need freedom from in perpetuity? Surely that cannot be the case, so can the Minister reassure all those Brexit supporters in the north-east and elsewhere that the reports in the press about this action by the Government potentially replicating it are surely inaccurate?

[Lord Grimstone of Boscobel (Con)]

My Lords, the UK-Japan agreement contains standard FTA provisions on subsidies. Motor manufacturers, including those in the north-east, and their representative organisation have strongly welcomed the UK-Japan deal. These subsidy chapters in trade agreements help ensure that fair and open competition exists for both parties by working to limit the effects of trade-distortive industrial subsidies. The subsidies chapter in this UK-Japan FTA rolls over the provisions from the EU-Japan EPA.