Steel Tariffs: Northern Ireland Debate
Full Debate: Read Full DebateHarriett Baldwin
Main Page: Harriett Baldwin (Conservative - West Worcestershire)Department Debates - View all Harriett Baldwin's debates with the Department for Business and Trade
(1 month ago)
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I congratulate the hon. and learned Member for North Antrim (Jim Allister) on securing this urgent question. The Conservatives have made clear for a number of weeks how concerned we are about the incoming steel tariffs that will take effect tomorrow. We have heard from businesses, not just in Northern Ireland but across the country, that the 50% tariff on steel imports above the quota will do great damage to upstream British manufacturing, our defence and aerospace sectors, and those who construct the nation’s infrastructure.
We acknowledge that on Thursday the Government brought forward some changes to the quotas after reflecting on concerns raised by industry, but we have now heard at the last minute that the EU has cut a significant chunk of the UK’s export quota. Businesses have been warning us for months about the damage that these proposals could cause, and they are now expected to adapt in a matter of hours, not days. Will the Minister publish the full impact assessment and communicate properly with the affected sectors? He mentioned a few ways in which he is going to communicate with them, but I cannot stress enough the urgency of getting clarity for every business across this country in the upstream steel industry.
Have any Northern Ireland businesses specifically lodged applications with the Trade Remedies Authority? I know that the Minister for Industry, the hon. Member for Stockton North (Chris McDonald), has kindly let us know that he cannot attend oral questions on Thursday as he will be visiting businesses in Northern Ireland. Is that to do with the serious concerns over steel tariffs?
Finally, may we have an update on the negotiations the Government are having in this area with the US and India, because it seems that whenever the UK Government negotiate on behalf of our steel industry, the industry loses out? This is all shaping up to be a disaster for steel, and we would appreciate an update.
I will start with the question about the Minister for Industry and his visit to Northern Ireland. He is visiting shipbuilding and aerospace companies. The visit does not specifically relate to steel at all.
On steel generally, the Conservatives’ record is absolutely shocking, and we will not be going down the route that they went down. When they came to power in 2010, the UK was producing 12 million tonnes of steel, and when they left power we were producing 4 million tonnes. That is an existential crisis that happened entirely on their watch. We need to address it, and we are serious about doing so.
Incidentally, countless contracts for major infrastructure projects in the UK that were awarded by the previous Government, including through the Ministry of Defence, regularly went to steel produced in other countries. I am not going to follow the route that the hon. Lady’s party went down. In fact, the then Prime Minister even refused to meet with steelworkers. That shows the level of concern that the Conservative Government had with steel. We are determined to make sure that we have a proper steel production industry in the UK, and that means that we have to take some tough measures.
In relation to the European Union, to be fair to the hon. Lady, she was not a leaver. She was in favour of remaining in the European Union. The UK has now secured 1.05 megatonnes of guaranteed access through country-specific quotas and 1.09 megatonnes of access through competitive pools—a total access of up to 2.14 megatonnes through the EU process. UK steel exports to the EU averaged 1.82 megatonnes between 2022 and 2024 when including products covered by the EU steel measure, so we did end up with a good result.
The truth of the matter, as I have said before and as we have said repeatedly to many others, is that it would be much more sensible if there was an exemption between the UK and the EU in relation to steel measures, so that neither of us was facing quotas or tariffs, because frankly we are not the problem for each other. There is a danger that in specific instances, some companies might facing tariffs going in both directions, such as Marcegaglia, which is a part-Italian, part-British steel manufacturer.
I just want to correct one other thing. The hon. Lady has repeatedly said on her X account that there will be a 50% tariff on all steel imports. This is patently untrue, and I really hope that she starts correcting the record.