Thursday 14th January 2021

(3 years, 11 months ago)

Commons Chamber
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David Mundell Portrait David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
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What steps she is taking to reduce tariffs on the export of Scotch whisky to the US.

John Lamont Portrait John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
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What progress she has made on the removal of US tariffs on Scottish goods.

Elizabeth Truss Portrait The Secretary of State for International Trade (Elizabeth Truss)
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My right hon. Friend has been a huge champion for Scotch whisky. We have been working hard to de-escalate this conflict and get punitive tariffs removed on both sides of the Atlantic. That is the way forward, not escalating this tariff dispute.

Elizabeth Truss Portrait Elizabeth Truss
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I completely agree with my right hon. Friend about the urgency of ending this tariff dispute. I have been clear with the United States and the European Union that we want to de-escalate it and reach a negotiated settlement. This dispute has already been going on for 16 years and has caused much damage. I am seeking an early meeting with the new US trade representative, Katherine Tai, and this will be one of the items on my agenda. I am also working closely with the new Secretary of State for Business, Energy and Industrial Strategy on this issue.

John Lamont Portrait John Lamont
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I know that everybody in Government is working hard on this, but I want to reiterate the huge financial strain that the tariffs are having on the textile and cashmere industry in my constituency in the Scottish borders, which I fear will cost many local jobs. Will the Government consider offering financial compensation to the firms affected to protect local jobs and this industry?

Elizabeth Truss Portrait Elizabeth Truss
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My hon. Friend makes an excellent point. We are looking at supporting industry, including through the BEIS fund that will invest £10 million to help distilleries go green, and no doubt the Treasury is looking at other affected industries as well. If we had accepted the advice from Labour to put additional tariffs on US products such as sweet potatoes and nuts, we would likely be hit by more tariffs as Germany and France were, as announced on 30 December.