US-UK Trade Deal: Northern Ireland

David Mundell Excerpts

Monday 12th May 2025 Commons Chamber

[Jonathan Reynolds]

That has never been our position. It was never the position in our manifesto and it was never our position after the introduction of Brexit. The hon. Gentleman talked about the promises that Brexiteers made. I am not accountable for those and never have been, and frankly I am relieved about that. I would simply ask him whether an economy of our size—a G7 economy—can contract out trade policy to a customs union when we are not part of the political arrangements sitting behind that. I just do not see that as realistic.

I hear the hon. Gentleman not get behind, for instance, the reduction in the Indian tariff on Scotch whisky from 150% to 40%, but he should promote his own interests a bit more strongly. Regardless of how Members voted in the referendum on the European Union, they should get behind the benefits for every part of the United Kingdom, whether in the deal with India or that with the US. It will not be the same as being part of the single market—that political decision was taken in the referendum—but despite that we can build the best possible position for every bit of the United Kingdom. I think we should look to the future, rather than relive the battles of the past.

I know this will not mean much to the SNP, but the political uncertainty after the referendum while we did not have the new arrangements in place really did cause harm to the UK. It was in itself a detriment, and that is exactly why the continued obsession about the constitutional position of Scotland is not in the interests of Scottish businesses. We are looking to the future, and agreeing deals that benefit every part of the UK, and if the hon. Gentleman cannot get behind that, so what? We will defend Scotland’s interests, and make sure it is getting better access to every market in every bit of the world.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Although it pains me, as it does, to do so, I have to concede that whiskey is produced in Northern Ireland. When the Minister for Trade Policy and Economic Security made the statement on the Indian trade deal, he understandably placed great emphasis on the benefits to the Scotch whisky industry and indeed the UK whisky industry from that deal, but when he made the statement on the US deal, he said precisely nothing about whisky. Can the Secretary of State clarify exactly what is the current position on whisky with the US, and what is his aspiration?

[Jonathan Reynolds]

First, while we would all recognise the superiority of the quality of Scotch whisky, the deal with India also covers exports of gin. I was at the Beefeater factory, not far from here, last week. The deal also covers Northern Irish whiskey; Bushmills is part of this deal, too.

The right hon. Member’s question on the US is about the reciprocal tariffs put in place; obviously, no sectoral tariffs have been put in place on anything affecting whisky production. That conversation is part of the wider ongoing discussion about the reciprocal tariff, or the 10% as it is sometimes referred to. I believe there is no need for that and that it can come down, but there will have to be movement on the US side for that.

I think we could reach agreement on a whole range of tariff lines and product areas that would further deepen the trading relationship between ourselves and the US, and that is why we are committed to continuing this conversation. Of course, the UK is not a high-tariff country—as it is, what tariffs we have in place are relatively modest—and we therefore have to make sure that what we agree is in the interests of both countries. However, that will be part of the ongoing conversation, which includes the digital agreement we are seeking to strike and a whole range of other areas of interest to Members across the Chamber.