§ 2.59 p.m.
§ Lord Watson of Richmond asked Her Majesty's Government:
§ Whether they view United Kingdom membership of the North American Free Trade Agreement as in any way a viable alternative to United Kingdom membership of the European Union and whether they have made any investigation of such a possibility.
129§ Lord McIntosh of HaringeyMy Lords, we do not view UK membership of the North American Free Trade Association as a viable alternative to membership of the European Union. The United Kingdom is a committed member of the EU and reaps substantial benefit from that membership. The UK has no intention now or in the future of applying to be admitted to NAFTA.
§ Lord Watson of RichmondMy Lords, I am grateful to the noble Lord for that reply. Given the fact that less than 15 per cent of our trade is with NAFTA and rather more than 55 per cent with the European Union, and that joining NAFTA would mean leaving the EU, does the noble Lord agree that the present quixotic enthusiasm of the Conservative leadership in another place for talks with members of the Republican Party to that end is, at the very best, an example of the unelectable in pursuit of the undesirable? What will Her Majesty's Government do to ensure that people understand the absurdity of this notion?
§ Lord McIntosh of HaringeyMy Lords, my figures relating to trade are very close to those of the noble Lord. As to the second part of the noble Lord's question, that is a matter for the Conservative Front Bench. However, I am encouraged to read in this morning's newspapers that Mr Hague has reaffirmed that it is not the intention of the Conservative Party to withdraw from the European Union. If he can get that message across to his colleagues, we shall all benefit.
§ Lord Lamont of LerwickMy Lords, be that as it may, why is it that, according to this year's WTO report, while between 1990 and 1998 the EU's percentage of world trade fell by 8 per cent, NAFTA's increased by 13 per cent; and how is it that that has been achieved without asking for billions of pounds of contributions from national governments or the employment of a single bureaucrat?
§ Lord McIntosh of HaringeyMy Lords, as to the noble Lord's first point, it is not "be that as it may" but "be that as it is". I recorded what I understood to be a speech made today by the Leader of the Opposition. As to world trade, the noble Lord is right. In particular, the context of world trade between first world countries and the rest of the world is absolutely critical. That is why those who urge that we should become closer to, or even members of, NAFTA on the grounds that free trade between that organisation and the European Union is particularly valuable are so wrong.