Steel Tariffs

Debate between Lord Ahmad of Wimbledon and Lord Leong

Thursday 18th June 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, I will address the noble Lord’s first point. Following extensive engagement with downstream importers, we have introduced a transitional arrangement, as the noble Lord knows, so that the new tariff will not apply to goods contracted before 14 March and imported between 1 July and 30 September of this year. Quotas will be administered quarterly, with unused allocations carried forward within a quota year to provide greater flexibility.

To address the point about the EU, the United Kingdom and the European Union share a unique trading relationship, with highly integrated steel supply chains that support jobs and industry on both sides. We are, as all noble Lords know, engaging closely with the European Commission to secure a solution that protects the vital EU-UK steel trade. While I cannot comment on live discussions, we have made it clear that restricting UK access to the EU market would disrupt supply chains, increase costs and harm businesses in both the UK and the EU.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I note and welcome the recent agreement reached by the Prime Minister and the Prime Minister of India, on the FTA and its commencement date in July. However, there is another issue on the horizon when it comes to steel tariffs, which is the imposition from 1 January next year of the carbon border adjustment mechanism, particularly on steel which is imported into the country, and which relies on coal. Bearing in mind India’s heavy burden on coal manufacturing, will we need to look at the FTA again?

[Lord Leong (Lab)]

First, I thank the noble Lord for all his work when he was a Minister in having conversations with the Indian Government. We should be celebrating and we should all be delighted that the landmark UK-India trade deal will now finally take effect from 15 July, delivering benefits for businesses and working people across the United Kingdom. This agreement, which is the most comprehensive India has ever concluded, is expected to boost UK GDP by £4.8 billion, increase bilateral trade by around £25.5 billion annually and raise real wages by £2.2 billion. Key sectors will benefit from this substantial tariff reduction, including exports of whisky, automotive products and cosmetics. I will write to the noble Lord on CBAM.

Steel Import Restrictions

Debate between Lord Ahmad of Wimbledon and Lord Leong

Tuesday 2nd June 2026 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for that. We are making best use of where we are today as far as our position with Brexit is concerned. We are entering into free trade deals with many countries across the world; we have just signed the FTA with India and are in conversations with South Korea and Turkey, and we have completed a free trade deal with the GCC countries. Those are the benefits and dividends of Brexit.

[Lord Ahmad of Wimbledon (Con)]

My Lords, just to share with the noble Lord opposite, there were extensive discussions: the CPTPP was signed and the India trade negotiations were started under the previous Government. I should know, because I was involved in them. I have a simple question. Having worked with our counterparts and friends in India, I know they will look at this as ill thought-out. The steel strategy was not effectively co-ordinated—to address the question from the previous noble Lord—on the implications for manufacturers here who rely on steel that is imported into the country, and in particular those reliant on Indian steel.

[Lord Leong (Lab)]

The noble Lord is absolutely right and I congratulate the former Government on starting the conversations on the India free trade deal and the CPTPP. However, the prize is closing the deal, which we have done in government. On the assessments and all that, look, we have absolutely no intention of undermining the benefits of the trade deal for any specific sector. That is why my right honourable friend the Secretary of State for Business and Trade is in India having conversations with Minister Goyal to ensure that this free trade deal is implemented as soon as possible.