UK–Commonwealth Trading Relationship

Lord Faulkner of Worcester Excerpts

Thursday 8th July 2021 Lords Chamber

[Baroness Chapman of Darlington (Lab)]

I will soon conclude.

We all share the objectives of deeper trade with the Commonwealth, but none of those objectives can be achieved while the majority of our fellow Commonwealth countries remain in the grip of this pandemic and while half of them have barely begun their vaccine programme.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

The noble Lord, Lord Wallace of Saltaire, has withdrawn from the debate, so I call the noble Viscount, Lord Waverley.

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[Baroness Liddell of Coatdyke (Lab) [V]]

I too congratulate the noble Lord, Lord Howell, on securing this debate. We do not talk about the Commonwealth enough. It is often an afterthought and now that we are looking for trading partners, it is up there in our priorities.

The noble Lord mentioned leading Commonwealth figures, but did not mention one of our own number, the Secretary-General of the Commonwealth, my noble and learned friend Lady Scotland of Asthal. I refer to the point made by the noble Baroness, Lady Hooper, who said that there is a real opportunity there for us as a Parliament as well as a Government to enter into much more of a dialogue on what is happening to the entire Commonwealth. We need much more to take into account the entire Commonwealth, where we often have a trade surplus.

In 2019, 69% of our trade with the Commonwealth was with India, Canada, Australia, Singapore and South Africa. The remaining 44 countries accounted for the remaining 31%. My noble friend Lady Chapman, in her excellent introduction to the debate from the Opposition Benches, talked about ways we could help some countries in the Commonwealth reform. That is something that various trade deals could bring about. Will the Minister tell the House where the Government stand on strengthening the unilateral preferences that they grant to developing Commonwealth countries for their mutual benefit? How do the cuts in overseas aid fit in with that?

The Government have said that they provide for duty-free, quota-free access for the least-developed countries and have put in place a preferential scheme for them. The Prime Minister himself has been clear about the relationship between development and trade. Is that not an area in which we can use the opportunities of trade to bring greater benefit and reform in some Commonwealth countries?

We have, too, to be genuine in looking at the opportunities in the developed countries. There is a great deal of talk in Australia about how well that country has done out of the negotiations with the United Kingdom, but we must take into account the problems that some of our farmers face. Therefore, we cannot be romantic about the nature of deals with the Commonwealth, which we have to look at in some detail. There is a concentration among the highly developed countries of the Commonwealth such as Canada, Australia and New Zealand that could seriously disadvantage the less-developed countries. If we want the Commonwealth to thrive, we have to think of the less-developed countries as well.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

The noble Earl, Lord Shrewsbury, and the noble Lords, Lord St John of Bletso and Lord Hain, have all withdrawn, so I call the noble Lord, Lord Lansley.

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[Lord Bilimoria (CB) [V]]

My Lords, the Commonwealth of 54 countries is a voluntary organisation of 2.4 billion people and GDP estimated at $3 trillion. The Commonwealth Heads of Government Meeting has said that it wants to increase trade between the Commonwealth countries to $2 trillion by 2030. This was at the CHOGM held in London in 2018. We, as the UK Government, are pursuing free trade agreements with Commonwealth partners. I thank the noble Lord, Lord Howell, who is a true and constant champion of the Commonwealth. It makes up a third of the world’s population, 60% of Commonwealth citizens are under the age of 30 and it has recently celebrated its 70th anniversary.

As president of the CBI, I had the privilege of chairing the B7, which fed into the G7. One of our speakers was the impressive Dr Ngozi Okonjo-Iweala, who was referred to by the noble Lord, Lord Howell, is the new head of the WTO and was head of Gavi, the Vaccine Alliance, before that—what serendipity. She highlighted that 17% of the world’s population is in Africa yet Africa has only 0.15% of the world’s vaccine-manufacturing capability. India, a country with a population equivalent to the whole African continent— 1.4 billion people—has the largest vaccine manufacturer in the world, the Serum Institute of India, owned by my friend Cyrus Poonawalla. Two-thirds of children vaccinated have been vaccinated by the Serum Institute of India, and it has just announced it is increasing its AstraZeneca/Oxford vaccine production from 100 million to 200 million doses a month.

Digital connectivity and enabling member nations to benefit from it was spoken about at CHOGM. At the B7, we thanked God for digitisation in this pandemic, yet the more digitisation we have the more vulnerable we are, so cybersecurity is something the Commonwealth has to work on.

A stark fact is this: trade with all 54 Commonwealth countries amounts to less than 10% of the UK’s trade. Five countries—Australia, Canada, India, Singapore and South Africa—accounted for almost three-quarters of this, yet the EU is 45% of our trade and the United States is 15%. We have heard about Liz Truss and her Department for International Trade and the fantastic job they have done rolling over 67 trade agreements with the EU. We are now making them bespoke. Canada is an example of one we have started to enhance.

George Brandis, the Australian high commissioner, recently spoke of the brand new Australian deal, which took just 365 days. That will be a stepping-stone for us, as Australia will be an ambassador for us entering the CPTPP, worth £110 billion to us. On top of that, we have New Zealand coming on and have announced an enhanced trade partnership with India, working towards a free trade agreement and an ambition to double our trade of £24 billion by 2030. The potential is enormous and we must make much more of the potential of the Commonwealth.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

The noble Lord, Lord Sheikh, has withdrawn, so I call the noble Lord, Lord Anderson of Swansea.