Trading Relations: USA, EU and China

Lord Purvis of Tweed Excerpts

Monday 7th November 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

I always listen carefully to the noble Lord. He makes some good points. I start by saying that 61,000 jobs in this country are reliant on Chinese companies. However, human rights are a major issue; I hope that chimes with the remarks made on many occasions in this Chamber in providing evidence of the extent of China’s efforts to silence and repress the Uighurs and other minorities. It is important that we create a balance between continuing trade with China and the fact that we are not looking at forming an FTA with China at present.

[Lord Purvis of Tweed (LD)]

My Lords, we were promised that there would be no friction in our trade with Europe. There is enormous friction. We were also promised by now a full FTA with America that would mop up any slack in our trading relations with Europe. That has not happened. As the noble Lord, Lord Alton, said, we now have the largest trade deficit in our nation’s history with one country—China—making up £40.5 billion. Is it not now in our strategic interest to reduce the barriers between us and our nearest neighbours—democratic countries—and to make sure that our economy is no longer wholly dependent on imports of goods from China? Why are the Conservative Government making the UK dependent on goods from China?

[Viscount Younger of Leckie (Con)]

I do not believe that we are doing that. On the noble Lord’s points, I say that our free trade agreement negotiations with the US—it is, as we know, a very important market—are paused at the moment for reasons he will know. On the EU, we know that progress is being made. Obviously, some extremely difficult and sensitive negotiations are ongoing, but we are firmly of the belief that we will be able to resolve these.