St Petersburg International Economic Forum

Lord Stevenson of Balmacara Excerpts

Monday 30th April 2018 Lords Chamber

[Baroness Fairhead]

In terms of our stance on Russia, and in response to actions in Syria and Ukraine and the Salisbury attack, we are trying to show that this matter is a real threat to a rules-based international order. We are trying to send a clear message that those actions are unacceptable and illegal and to give a calibrated response that shows how unhappy we are with them, while continuing to engage in other areas and support businesses that take part in sanctions-compliant activity. We think that is the right way to do it.

[Lord Stevenson of Balmacara (Lab)]

My Lords, I want to offer the Minister some help. Perhaps she should just argue that the cost of going will be too high. After all, a place at the St Petersburg International Economic Forum will cost $8,600. I have looked through the 36 pages of the business programme, seven pages of the sporting programme and 78 pages of the cultural programme; it is quite a feast of pleasure, I must say. If she is interested in culture and so on, I would have thought there was a case for doing that.

More seriously, reading deep into the programme, why are we not sending people to the following sessions, which seem very important: “A Recent History of Blockchain”, which has apparently caused a sensation in Russia and for which expert advice is available, and “Exporting Trust: Building Safe Global Digital Infrastructure”, which is about what Russia can offer? Do these really not attract Dr Fox?

[Baroness Fairhead]

I thank the noble Lord for his advice and help. SPIEF is a major event—143 companies attended last year—so he is right: the programme is very full. I am happy to say that almost all major UK companies will be present, as will our DIT staff and ambassador, as I said. It is one of a number of our interactions because engagement has to continue. We have put this guidance in place at a bilateral ministerial level. Our policy is very clear: engage, but beware. That is the right calibrated, nuanced approach. We are supporting companies in their engagement and we absolutely believe in supporting the digital economy, because that is where the heart of our new technology will reach global markets.

United States Tariffs: Steel and Aluminium

Lord Stevenson of Balmacara Excerpts

Tuesday 13th March 2018 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the noble Baroness, Lady Fairhead, for repeating the Statement. This is my first opportunity to debate her at the Front Bench, and I am looking forward to working with her on the international trade Bill when it reaches your Lordships’ House.

We have, over the past year, heard regular statements about problems affecting our steel industry, although this announcement of tariffs on steel and aluminium imports, blatantly aimed at protecting US producers, must rank as one of the worst because of its implications more widely for free trade.

The House of Commons Library briefing paper on the steel industry in the United Kingdom 2016 suggested that the steel sector accounted for £1.6 billion of UK economic output, which is about 0.1% of the UK economy and 0.7% of our manufacturing activity. It has about 600 businesses, and 32,000 people are employed in the sector. The UK is the 18th-largest steel producer in the world, the fifth-largest in the EU after Germany, Italy, France and Spain. Approximately 15% of 350,000 tonnes of steel was exported directly to the United States in 2017.

We should extend our concern and support to the employees of British steel firms and their communities, which must be very worried about this questionable and ill judged unilateral decision by the USA. What assessment have the Government made of the impact of this decision on jobs in the steel sector and the economic hit that will be felt, particularly in communities outside London?

I have three further questions for the Minister. First, this announcement was not unexpected. It followed a series of pledges from President Trump to take what he calls “tough and decisive action” on perceived threats to the US national interest and to domestic producers as a result of international trade competition from overseas. It is very much in line with his “America first” platform. When did the Government become aware that President Trump was going to impose tariffs on imported steel and aluminium? What representations did the Government make to the White House prior to the announcement, and what assurances were sought that these tariffs would not be applied to UK exports?

Secondly, earlier this year, President Trump announced tariffs on imported washing machines and solar panels to give a boost to US producers in these sectors. President Trump also imposed a 30% tariff on imported solar cells, and last year the Department of Commerce sought to impose tariffs of up to 292% on imported narrow-body, medium-range jets until the US International Trade Commission accepted the arguments made by Bombardier and others and overturned that decision. What other sectors of the economy are the Government concerned about? What representations are they currently making to ensure that the UK will be able to export to the United States in the near term without facing unfair tariffs? For example, the President has mentioned additional protection for intellectual property. Given the strength of our creative industries, have the Government taken up that issue in particular?

Finally, the Secretary of State announced the establishment of a US-UK Trade and Investment Working Group in July last year, a group that has met twice since then. Given that the President has said he would welcome a trade war and thinks America would win it, what discussions have been had about steel, aluminium and the other new tariffs at these meetings? What assurances have been sought from the US Government about exemptions for UK exports in any free trade agreement that might be in consideration post Brexit?

[Lord Purvis of Tweed (LD)]

My Lords, we too are grateful to the Minister for repeating the Statement. Just at the time that we are loosening our ties with our largest single integrated market in the European Union, we see the next bilateral largest market in the United States moving towards a protectionist tone. Over recent months we have been repeatedly counselled by Ministers that we should look at not just the rhetoric of the United States President but at the actions. Now it is quite clear that there are repeated actions which are contrary to the interests of the British economy. The announcement of the Secretary of State today and of economic advisers last week are clear.

When I was in Buenos Aires as an observer at the ministerial conference of the WTO, the US left without a communiqué being signed. These worrying trends are clear to see. Last year, the Secretary of State, Dr Fox, said, while in the US, referring to the UK/US relationship:

“Firstly, we must lead by example, and work to encourage our trading partners across the world to support, and adhere to, the rules-based global trading system”.


Will the Minister therefore confirm that it is the view of Her Majesty’s Government that this action by the President is clearly contrary not only to how strong allies with a so-called special relationship should act but to international law?

We also know that in the presidential proclamation the President said that there would be a mechanism for reviewing the decision on impairing US national security if the countries concerned showed that their actions would not impair that national security. However, in recent discussions with the US, the EU and Japan could not discern on what basis these issues would be considered. What is Her Majesty’s Government’s view on these blackmail conditions that President Trump would seek to impose on allies for there to be adjustments to, or the removal of, these tariffs?

We have heard reference to the working group, which I have raised in this Chamber before. Did officials on the working group inform us that there was a likelihood of these tariffs being imposed on the United Kingdom? The Secretary of State indicated that he was due to visit the US and had no doubt planned to discuss the progress of the working group. What status does the working group now have given that we are clearly in a trade dispute?

Finally, we and our allies around the world continue to believe in free trade, even if the United States does not. How will we seek redress within the WTO mechanisms? Will the Minister reassure the House that we will be in precisely the same position as the European Union if we appeal for redress under the WTO mechanisms? This trend of protectionism cannot be in the interests of the United Kingdom. Clearly, our interests lie in standing shoulder to shoulder with our European Union allies on this issue.

Bilateral Trade: Sri Lanka

Lord Stevenson of Balmacara Excerpts

Tuesday 28th February 2017 Lords Chamber

[Lord Price]

I can give my noble friend that assurance.

[Lord Stevenson of Balmacara (Lab)]

Further to my noble friend’s question, is there not an earlier opportunity to have a bit of a debate about this issue? Do we not have on the horizon an agreement with the Canadians, the CETA agreement, which was signed with the EU recently and which is now going around national parliaments? I do not see a date for it coming up on our agenda but no doubt the Minister will be able to advise us when it will happen.

[Lord Price]

My Lords, there have been lots of discussions about CETA. It has been discussed in the other place and in this House. If there are any new dates I shall, of course, present those to the noble Lord and others.

Brexit: World Trade Organization Rules

Lord Stevenson of Balmacara Excerpts

Monday 19th December 2016 Lords Chamber

[Lord Price]

The noble Lord is certainly right that services are an increasingly important part of the UK economy, representing 80% of our GDP and 40% of our exports to the EU. However, I would not want to diminish the importance of goods transfer. The north-east of England is the second largest exporter of cars in the EU—it exports more cars than Italy. It is important for us to hold on to the fact that we produce goods in the UK and export goods from the UK. That must not be diminished as we pursue our agenda to increase our services around the world.

[Lord Stevenson of Balmacara (Lab)]

My Lords, I have listened to the Minister carefully but I am still not clear what the Government’s position is. Mr Fox is openly briefing that WTO arrangements would be quite satisfactory. Mr Hammond commented recently that the WTO option would not be the most favoured outcome. Which is it? Can the Minister say precisely?

[Lord Price]

As the noble Lord knows well, the Government are still working towards their position for Article 50. They take in views from all sides. As I understand it, we have 20 different Select Committee reports coming to the Government in January alone. I have visited 21 countries over the past four months and I have spoken to 200 businesses and over 2,000 business people. We are open to listening to all parts of the debate and I welcome the report from the noble Lord, Lord Whitty, and this House, which was considered and thoughtful.