US-imposed Trade Tariffs

Debate between Lord Gardiner of Kimble and Lord Browne of Ladyton

Monday 7th October 2019 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, my understanding is that tariffs will be levied on the Airbus nations and the EU. The data shows me that 38% of French trade is directly targeted, compared to 10% of ours. These tariffs will affect the EU as well. My noble friend is right—to repeat it and put it on the record—that Scotch whisky is the UK’s largest agrifood export, at £4.7 billion in 2018. It is the largest contributor to the UK’s balance of trade in goods and, thinking of Scotland, it provides 7,000 rural jobs and 11,000 in total. It is very important to Scotland.

[Lord Browne of Ladyton (Lab)]

My Lords, I thank the noble Lord for his answer but I cannot help but contrast it with the answer given by the Leader of the House, Jacob Rees-Mogg, on Thursday when asked a similar question about 25% tariffs on Scotch whisky. He saw the opportunity to attack the EU for what he calls its illegal acts and he stated that the Scotch whisky industry would be better off post-Brexit—if we can believe that, given the amount we sell to Europe.

In his answer, the noble Lord substantially reflects the press release the Government put out when the WTO ruling was made. I am reassured that he has repeated the Government’s view that they are not acting illegally, and that no European nation is; that is very important. If we can get the WTO to establish that, that is good. There is no question of illegality, despite what Jacob Rees-Mogg said, but now there is a question about support for engineering jobs in Airbus. He was disparaging about them. Some 124,000 people in the United Kingdom are employed or supported by Airbus. Will the Minister join me and the Unite union and write to every one of those 124,000 to say that the Government still support that industry?

[Lord Gardiner of Kimble]

My Lords, the Government are clear that the United Kingdom is compliant with WTO rulings in the Airbus dispute. That is where we pitch our line. We think we are compliant so it is not right that the US Administration should impose tariffs when we are clear that we are acting lawfully. I use this opportunity to encourage our friends in the United States to see that this is a time when we should be seeking free trade and encouraging these industries, wherever they are, whether they are small rural ones or large industrial ones.