Principle of Comparative Advantage: Bicentenary

Lord Stevenson of Balmacara Excerpts

Tuesday 17th January 2017 Lords Chamber

[Baroness Mobarik]

Yes, it is infinitely more complicated, as most things are in life. There is nothing black and white in anything, but trade can contribute to economic growth and poverty reduction internationally. It helps to raise incomes and create jobs, and has been the greatest liberator of the world’s poor, harnessing the forces of globalisation to spread prosperity and lift millions from poverty. We cannot underestimate that.

[Lord Stevenson of Balmacara (Lab)]

My Lords, the list of names at the party was interesting but, I suppose, appropriate for a banker who made his money shorting the market in order to speculate on the result of Waterloo; he made a million pounds and was able to retire for the rest of his life, when no doubt many parties were held. Does the Minister realise that Ricardo qualified his original proposal because he ensured that it was applicable only to situations where capital was immobile? If capital is mobile, it results in offshoring, economic decline and joblessness. Taking us forward to the present day, could she confirm that the new industrial strategy, which from what she has said will be based on Ricardian principles, will for the first time allow measures to be taken against foreign capital taking over British companies in a hostile way?

[Baroness Mobarik]

I do not think there is time today to go into various academic works. If the noble Lord is alluding to protectionism, we are committed to taking a fair and balanced approach to protecting sectors against unfair trade.