Protecting Britain’s Steel Industry

Chi Onwurah Excerpts

Monday 21st June 2021 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]]

I am a great believer in trade. I am currently holding a series of DIT-sponsored trade roundtables in my constituency, and as chair of the all-party group for Africa championing the positive power of fair trade. Trade can help lift countries out of poverty, drive innovation and promote sustainable economic development. There is no such thing as free trade in the sense of trade free from political and regulatory choices. What this Government mean by free trade is choosing to pursue the lowest common denominator—low wages, bad processes, environmental destruction, and human rights abuses. There are two important consequences of that. First, our national interest demands a sovereign steel capability, as do other countries’ interests. That is why there is a current glut of steel production, as our competitors, in particular China, ensure that their steel capabilities survive the pandemic and technological change. That is why ideologically puritanical free trade does not work for a sector such as steel, and is at the heart of the Government’s betrayal of the steel industry.

Secondly, because there are always political and policy decisions to be made, it is essential to have workers’ representatives in the room when these decisions are taken, which this Government refuse to do. Without workers’ involvement, global Britain will not be politically sustainable. Last month, I chaired an international TUC-Labour discussion on building a workers’ trade agenda. Trade unions in other countries have considerably more access to trade negotiations. Katherine Tai, President Biden’s new trade commissioner, is an example to follow. She says:

“We know that trade is essential to a functioning global economy. It is clear, however, that the past promises made to workers on trade were not met…The consequences for families when factories closed and jobs were sent overseas were real…It is the result of a long pursuit of tax, trade, labour and other policies that encouraged a race to the bottom.”

The Biden Administration intend to improve workers’ representation in trade policy in the US and in the World Trade Organisation. Furthermore, the recently signed United States, Mexico, Canada agreements include the strongest labour and environmental standards in any agreement. If workers in the US are worried that workers in Mexico are being denied the right to organise, a rapid response on traded goods can follow.

Let me finish by quoting President Biden:

“As we emerge from this pandemic that has exacerbated inequity and put an even greater strain on workers’ families, we have to prove that democracy can deliver. We do that by empowering workers, raising wages, standing up for union rights and holding bad actors accountable when they subject their citizens to forced labour and child labour.”

Why is it that our Government want to sell our steelworkers out to China and preside over a race to the bottom?