World Trade Organization
Debate between Lord Spellar and Lord Leong(2 days, 9 hours ago)
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Lord Leong (Lab)
My Lords, the United States’ actions have exposed serious structural weaknesses, particularly in dispute settlement, but abandoning the WTO would leave British businesses more vulnerable to arbitrary tariffs and economic pressure. For example, UK trade with non-FTA partners based on most favoured nation terms was something like £605 billion in 2025. So the WTO’s rules still underpin most global trade, and 72% of global trade operated under MFN terms at the end of February. We must engage with the United States in pressing it for reform and work with partners on practical agreements and interim arbitration.
Lord Spellar (Lab)
My Lords, is not the fundamental point that China was allowed into the WTO and then was allowed to relentlessly break its rules, trading unfairly with huge damage to our industrial manufacturing right the way across the West, with great social and political consequences? What assurances can the Minister give me that, in maintaining and improving the WTO, we will toughen up our approach so that we can properly trade with China on a level playing field to the mutual benefit of international trade?
Lord Leong (Lab)
My Lords, I totally agree with my noble friend. British businesses must be able to compete fairly, and our trade strategy calls for stronger action on subsidies that distort markets and create excess capacity. As major economies, we share the same responsibility as China to support the global trading system. Our bilateral discussions on WTO reform are focused on making the WTO more relevant, flexible and accessible. At senior official level between the UK and China, the WTO working group took place earlier this year in Beijing, covering a level playing field, development and reform issues. Together we have a common agenda to make sure that the WTO functions and works for everybody.
Business Hiring Intentions
Debate between Lord Spellar and Lord Leong(1 week, 1 day ago)
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Lord Leong (Lab)
Employers, employees and suppliers are part of the ecosystem, and we need to support the employers and suppliers as well. The way to tackle unemployment is by working with employers and looking at pathways into growing industries. Professional and business services firms have pledged to create 22,400 apprenticeships for young people under the age of 25 over the next five years. Construction aims to create 10,000 job opportunities each year, while digital and technology employers are targeting 20,000 entry-level jobs. These sector jobs plans will link investment to skills and recruitment, and our focus is on turning those commitments into lasting careers.
Lord Spellar (Lab)
My Lords, as we have just heard, there are a million youngsters who are not able to get into work. Many are university graduates, who then face the questions: “Have you got a degree? Have you got two years’ experience?”. How are they going to get two years’ experience if employers will not take them on? That is just one example of dysfunctionality in the labour market. What are the Government doing actively to engage with employers to get a rational labour market that will enable our youngsters to get into work at all levels of jobs?
Lord Leong (Lab)
My Lords, we are determined to tackle youth unemployment and look forward to receiving Alan Milburn’s recommendations. In addition, we have committed a further £2.5 billion to the youth guarantee and growth and skills levy, helping nearly 1 million young people aged 16 to 24 move into jobs, education and training. This will create 200,000 jobs, provide £3,000 for youth jobs grants and £2,000 in apprenticeship hiring payments and guarantee jobs for young people claiming universal credit who have been unemployed long term.
UK Automotive and Components Sector
Debate between Lord Spellar and Lord Leong(2 months ago)
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Lord Spellar
To ask His Majesty’s Government, in light of Jaguar Land Rover’s decision to cut 4,000 jobs over the next two years, what steps they are taking to support the UK’s automotive and components sector and its workforce.
The Parliamentary Under-Secretary of State, Department for Business, Innovation, Science and Trade (Lord Leong) (Lab)
My Lords, we understand the anxiety that this announcement causes among workers, families and communities in the area where JLR is based. We are determined that Britain will remain a world-leading automotive nation. Our industrial strategy reduces electricity costs, commits £4 billion to DRIVE35 to advance manufacturing and research, and allocates £2 billion to boost electric vehicle demand. We are strengthening supplies through the DRIVE35 transformation programme and securing better access to markets in the EU and the United States, thereby protecting investment and jobs.
Lord Spellar (Lab)
I thank my noble friend the Minister for that Answer. He obviously recognises the importance of our auto components industry, which underpins our car assembly plants and is also a significant part of our exports and regional economies. He and the House will be aware of the significant impact of the hack at Jaguar Land Rover last year, which led to an overall drop in GDP but also had a much more significant effect on the West Midlands economy. So, with those current problems at JLR, which the Minister has identified, what are the Government doing to support the supply chains and the British car plants, and would not one measure be for public bodies to prioritise buying British vehicles built by British workers?
Lord Leong (Lab)
My Lords, my noble friend rightly reminds us that cyber attacks affect companies of all sizes, and this is a stark reminder that JLR is not only the manufacturer but also the anchor of the supply chain. We are working with JLR, lenders, local partners and suppliers to safeguard viable businesses, improve access to finance and strengthen cyber resilience. On procurement, we will use government purchasing power strategically to ensure that British manufacturers can compete fairly and that social value, resilient supply chains and UK capability are recognised in purchasing decisions.
Multilateral Free Trade
Debate between Lord Spellar and Lord Leong
Lord Leong (Lab)
The noble Lord makes a very interesting point. Tariffs are not good for trade: they will make things more expensive. We have benefited from tariff-free trading relationships with many countries, and consumers have also benefited from cheaper prices, so we must constantly engage with our trading partners to have tariff-free trade.
Lord Spellar (Lab)
Do the Government accept that there must be a level playing field and free trade also has to be fair trade? Given that nearly all other countries’ public sector purchases give priority to their own domestic producers, is it not time that we did the same and supported British firms and British workers?