In a statement to mark the anniversary of the handover on Friday, Ms Truss acknowledged the past two years had seen a “steady erosion” of the rights and freedoms agreed in the Sino-British Joint Declaration.
The Commons inquiry that could determine the prime minister's fate in office kicked off this week.
"We are not dealing with a perfect world," Truss said as she faced tough questions over Jamal Khashoggi's death and Saudi Arabia's human rights record.
"Listening to Liz Truss trying to defend her Protocol Bill would be comedy gold if the matter wasn't so serious", Stephen Farry said.
It comes as Liz Truss was lampooned for not being able to pronounce the word Taoiseach.
"That's a huge amount of money just to make a point", Liz Truss was told on the BBC.
"I'm sorry, if you're the British Foreign Secretary the least you could do is know how to pronounce the Head of Government of your next door neighbour."
The Irish premier described measures outlined to rip up parts of the Northern Ireland Protocol as a "new low" for the British government.
It was also pointed out that she couldn't pronounce the name of the country she was filming from.