Lord Sharpe of Epsom
To ask His Majesty’s Government what assessment they have made of reports that the United Kingdom’s proposed steel import restrictions may jeopardise the implementation of the UK-India Free Trade Agreement; and what steps they are taking to protect British exporters, consumers, investment, and the benefits secured under that agreement.
Lord in Waiting/Government Whip (Lord Leong) (Lab)
My Lords, the steel trade measure is being put in place to address the serious threat posed by global overcapacity to our domestic steel-making capability. Given the strategic and economic importance of steel, the Government cannot afford to leave the situation unaddressed. Today the DBT Secretary of State is in Delhi, seeking to further strengthen the relationship and bring the UK-India FTA into force as soon as possible, to ensure that the benefits are realised.
Lord Sharpe of Epsom (Con)
My Lords, I am very grateful to the Minister for the Answer, and it is reassuring to hear that the Secretary of State is in India. However, the fact is that the previous Government secured Brexit freedoms precisely to break free from EU protectionism and position Britain as a champion of global free trade. Within months of signing what Ministers themselves called a landmark deal with India, this Government have now announced steel tariff measures so damaging that senior Indian officials are threatening to withdraw important concessions.
For example, the Scotch whisky industry, one of Britain’s greatest exporting success stories, was on the cusp of seeing tariffs on its exports to India slashed from 150% to 75% immediately, falling further to 40% over the life of the agreement. We do not need a review in 12 months to tell us what 100 years of economic history already confirms: tariffs damage trade, raise costs and, ultimately, hurt the very industries and consumers they purport to protect. Will the Minister commit today to reversing the steel tariffs outright, saving the landmark deal and sending an unambiguous signal to British businesses and our global partners that Britain is open for business?
Lord Leong (Lab)
My Lords, first, we use tariffs only as a last resort, and only in circumstances where we have no other choice. Without action, we risk losing domestic steel-making capability, which would mean that we could not mean critical infrastructure and defence needs without relying fully on imports. Furthermore, as I am sure the noble Lord knows, we are not the only country that has tariffs: the EU has tariffs, Canada has tariffs and the US has tariffs.
On the point about whisky, we have signed a legal treaty with India that underpins the trade deal, and the liberalisation of whisky is a clear part of that. We will adhere to that and support the Scottish Whisky Association to ensure that India meets its obligation.