Trade and Customs Policy

Baroness Golding Excerpts

Tuesday 5th December 2017 Lords Chamber

[Baroness Golding (Lab)]

My Lords, I lived in and represented North Staffordshire—the Potteries—for many years, so it will not come as a surprise that I will make a short contribution to the debate on a small number of the many concerns affecting the future of just one industry: the ceramics industry.

It is well known that, over a number of years, UK ceramic manufacturers have been vulnerable to illegally priced imports by state-subsidised Chinese competitors. The European Union has been instrumental in combating these unfair practices by introducing anti-dumping duties, enabling the UK ceramic industry to stabilise and grow over recent years.

Our Government have acknowledged that free trade must operate within a rules-based system, but there is concern in the ceramics industry that the opportunity is being missed to build on the strengths of the EU’s trade defences and improve their effectiveness for UK manufacturers. One area which the industry thinks could be improved is the removal of the lesser duty rule in calculating the level of injury to the domestic industry in dumping investigations. Only nine out of 32 main users of trade remedies around the world apply a mandatory lesser duty rule, and its removal would certainly help British manufacturing. I hope that the Government will take note of that.

The ceramics industry has also expressed to me its concern over the dumping of imported goods below their normal value, such as their domestic price. Given that distorted economies such as those of China and Russia will be included in our market, strong parliamentary input to our trade rules will be essential to enable the industry to keep the Government up to date with what is happening throughout our country.

The ceramics industry directly employs 22,200 people, with many more in the supply chain. It generates annual sales of more than £2 billion. There are so many items of concern to the industry. The Government should listen to the industry and its unions, for it is they who will bear the brunt if the Government get all this wrong. Those are a number of small concerns in a not very big industry—but an important industry in North Staffordshire.