Steel Tariffs
Debate between Chris McDonald and Kit Malthouse(1 month, 1 week ago)
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Chris McDonald
Yes, I am concerned about that. As I have said, these measures are primarily about supporting the production of steel in the UK. I do not know if this is specific to the business mentioned by the hon. Gentleman, but many of the businesses we have heard about rely on supply from the EU, and that is where our discussions with the EU—linking discussions, essentially—are so critical.
Kit Malthouse (North West Hampshire) (Con)
While I am grateful for the Minister’s engagement, I think both he and the House are learning the dangerous domino effect that begins when we start mucking about with tariffs. I find it unbelievable that I am placed in the position, as somebody who believes in free trade, of urging him to consider consequential tariffs on the fabricated products with which businesses in my constituency are competing in a desperate attempt to hold on to at least domestic markets, given that international markets will evaporate. My question is this: he has said that he is going to review whatever emerges at the end of this process after 12 months, but the impact will be immediate, so could he please review it after one month?
Chris McDonald
The right hon. Member is quite right that there is a 12-month review. I thank him for his engagement, particularly with Stannah Stairlifts, but also for his further suggestions to me privately about how we might manage the transition. I want to reassure him that I am looking very carefully at the ideas he has raised.
To be clear about this, I think everyone in this House believes in free and fair trade, and we all wish we lived in a world where there were no tariffs. UK Steel has welcomed these measures, but has also said it would prefer it if there were not any tariffs. Unfortunately, this is the product of the world we are in. I do not think this is “mucking about with tariffs.” Essentially, we are responding to the global trading situation, and trying to ensure we have a strategy for a viable UK industry.
Oral Answers to Questions
Debate between Chris McDonald and Kit Malthouse(2 months, 1 week ago)
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Chris McDonald
I thank my hon. Friend for raising issues with businesses in Stourbridge when we met earlier this week; I am happy to continue to work with her. The measures we have introduced, which are primarily to protect the UK steel industry, are targeted at steels that are made or can be made in the UK. There are sometimes difficulties where a product code covers multiple steel grades, but that is what the quota system is intended to deal with, and of course there will be a review in 12 months’ time.
Kit Malthouse (North West Hampshire) (Con)
Further to the question from the hon. Member for Stourbridge (Cat Eccles) and my question to the Prime Minister yesterday, I am sure the Minister is aware that lots of manufacturing businesses are, frankly, screaming about the damage that the tariffs are going to do in five weeks’ time. Will he please consider an extension of the transition period to two years to allow three things to happen? First, it would allow UK steel capacity to grow in order to cover the gap. Secondly, it would allow quotas to be set correctly, so that UK businesses are not disadvantaged in the absence of UK production capacity. Thirdly, it would allow us to work out how it can be fair that somebody importing steel into the UK to produce a product pays tariffs, but somebody importing a finished product from overseas that is made from the self-same steel does not face tariffs.
Chris McDonald
I thank the right hon. Gentleman for his comments. I believe we have had representation from Stannah, the stairlift company based in his constituency. It is important to say that the Government take action like this reluctantly, but ultimately there are distortions in the market around steel. The EU taking action itself would lead to the UK becoming a dumping ground for cheap steel flooding in from overseas. We have taken a very carefully balanced approach and consulted carefully with the industry. I continue to receive representations, and, as I said, there is an opportunity for a review of the measures in 12 months’ time.