Trade Negotiations

Chris Law Excerpts

Thursday 8th May 2025 Commons Chamber

[Mr Alexander]

It has been a feature of the last few months, since the President was elected, that people have thought that trade policy and tariffs are synonymous. My hon. Friend is exactly right to recognise that a growing proportion of trade is conducted electronically. The UK is an almost 81% services-based economy. We therefore have a huge interest in non-tariffs barriers—not just barriers at the border but barriers behind the border. That is an area of focus in the agreement, and one that will require further work, as is appropriate and right. We were working under huge time pressure to address the tariff issue, for the reasons I have set out, but he is entirely right to recognise that we will take forward an ambitious agenda on non-tariff barriers.

[Chris Law (Dundee Central) (SNP)]

Although a reduction in tariffs is welcome, the past four months have shown the UK Government that President Trump is an unreliable partner, not just in trade but in defence and security, climate and the international rule of law. In contrast, closer relations with our trusted allies in the EU have never been more important. Given that Trump has previously described the EU as “a foe”, “very nasty” and “an atrocity”, will the Minister provide an unequivocal assurance that there are no conditions whatsoever attached to the deal that will constrain the UK’s relationship with the EU, which is the UK’s largest trading partner?

[Mr Alexander]

I can do no better than refer to the Prime Minister’s Mansion House speech towards the end of last year, when he said clearly that we do not want to have to choose between our friends and allies—between dealing and working constructively with the European Union and with the United States.

On the hon. Gentleman’s broader point, it is important to recognise that the United States is our deepest and strongest defence ally. For the past 80 years—we should remember the day on which we are gathering—the United Kingdom has worked hand in glove with the armed forces of the United States to keep the world safe. I saw for myself, in previous conflicts such as Afghanistan, the extraordinary heroism and courage that American service personnel brought to bear alongside British personnel, so it is right to recognise that, as well as taking forward this economic agreement, there is a strong and enduring security foundation to the relationship between the United States and the United Kingdom. All that said, of course we stand ready to work with the European Union as we look ahead to the UK-EU summit on 19 May.

The hon. Gentleman asks whether there are any conditions. The single biggest concern expressed by many commentators related to SPS, given that that was one of the key agricultural areas on which the previous Government foundered in their negotiations with the first Trump Administration. That was a red line for us in these negotiations—a red line that I am glad to say we have protected.