European Union: Trading Arrangements

Lord Pearson of Rannoch Excerpts

Thursday 30th January 2020 Lords Chamber

Asked by

[Lord Pearson of Rannoch]

To ask Her Majesty’s Government what plans they have to offer the European Union a new treaty, subject to World Trade Organization jurisdiction, which would continue the United Kingdom’s existing trading arrangements with the European Union.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, the Prime Minister’s deal set out in the political declaration the framework for a comprehensive and ambitious free trade agreement with the EU. We will of course leave the EU tomorrow, and we will then begin discussions on securing a new relationship.

[Lord Pearson of Rannoch (Non-Afl)]

My Lords, I am grateful to the Minister for that reply, but I would have thought that the Government may need something like this if the going gets rough in the forthcoming trade negotiations. For the record, will the Government confirm their recent Written Answer saying that, if we end up trading on normal WTO terms, EU exporters will pay us some us some £14 billion per annum in new tariffs whereas ours will pay Brussels only some £6 billion —an annual profit to us of some £8 billion per annum? Would this offer not therefore be generous to the EU and, if accepted, get rid of the Irish border problem, the need for much of Operation Yellowhammer and masses of lengthy trade negotiations? Would that not be cheap at the price?

[Lord Callanan]

I thank the noble Lord for his interest in these matters, but the whole point of a free trade agreement is that it is an improvement on WTO terms. The reason that many nations around the world want to adopt them is that people do not want to get into paying tariffs and quotas, which are an impediment to free trade. We are confident, given the agreement and the political declaration, that we can reach an ambitious free trade agreement with the EU before the end of the implementation period, and that is exactly what we will be doing.