EU: Free Trade Agreements

Lord Trimble Excerpts

Monday 13th January 2014 Lords Chamber

Asked by

[Lord Trimble]

To ask Her Majesty’s Government what progress is being made in European Union free trade agreements.

[The Minister of State, Department for Business, Innovation and Skills & Foreign and Commonwealth Office (Lord Livingston of Parkhead) (Con)]

The EU is currently negotiating 12 free trade agreements, including those with major trading partners such as the United States and Japan. The EU has also reached conclusion on 10 more agreements that have yet to enter force, adding to the 50 that have already been agreed and are now active. These negotiations are complicated endeavours, but I believe that the EU has made good progress. The Government will continue to be a champion for free trade and of the benefits that it brings to this country.

[Lord Trimble (Con)]

I thank the Minister for that Answer, which draws our attention to the huge number of free trade agreements that are in course. I would direct his attention to the EU-US free trade agreement. In that connection, has he seen the projections that were issued of the benefit there would be to both the EU and the US, which, interestingly, appears to be roughly evenly divided? Does he agree that the assumption of a virtually equal division of the benefits should be revisited in the light of the huge competitive advantage that the US now enjoys, thanks to its access to abundant supplies of cheap energy, whereas we are increasingly locked into expensive energy to the disadvantage of our businesses?

[Lord Livingston of Parkhead]

My noble friend is right to draw attention to TTIP, the US-EU agreement, which will indeed bring substantial benefits. I believe that the UK is expected to gain around £10 billion a year, which is about £400 for every family in the UK, the US is expected to gain about £80 billion and the EU about £100 billion, so there are very substantial gains. In addition, there will be very substantial gains for the rest of the world, which are believed to be in excess of £80 billion.

I take my noble friend’s point that energy presents some challenges. Certainly, we hope to see the US exporting energy, so that the benefits of shale to global energy prices would help all industry rather than just those in the US. In any event, we believe that helping to have openness and convergence of standards will assist all citizens, not just in the EU but in the US and around the world.