UK-EU Trade and Co-operation Agreement: Regions and Industrial Sectors

Lord Purvis of Tweed Excerpts

Thursday 27th May 2021 Lords Chamber

Asked by

[Lord Purvis of Tweed]

To ask the Minister of State at the Cabinet Office (Lord Frost) whether Her Majesty’s Government still plans to commission an impact assessment of the United Kingdom–European Union Trade and Cooperation Agreement on regions and industrial sectors when the economy returns to normal.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the Government routinely publish a wide range of analysis on the UK economy and will continue to do so as appropriate. Many bodies, such as the OBR, also regularly publish economic analysis on the impact of our trade deal with the EU. All this contributes to the public debate in this area. We keep this matter under review, but meanwhile we will continue to take full advantage of the opportunities available to us as an independent trading nation.

--- Later in debate ---

[Lord Purvis of Tweed (LD)]

My Lords, the ONS publication on Tuesday this week detangled the impacts of Covid and the impacts of the TCA by comparing quarter 1 2021 figures with quarter 1 2018 figures—the last period in which

“relatively stable trade patterns were observed.”

Non-EU trade for the UK fell by 0.8% over that period; EU trade fell by an enormous 23.1%. That shows clearly the difference between Covid-19 and the TCA. How can the Minister explain the difference in that fall?

[Lord Frost (Con)]

My Lords, I read the ONS report with interest. It confirms the position on trade, which I have set out on several occasions before: that there are a number of factors prevailing here. It is true that 2018 may well have been the last full year of normal trading conditions, but we are still in a pandemic. Economies have not returned to normal, so it is not entirely surprising that trade figures have also not returned to normal at the moment.