US-UK Trade Deal: Northern Ireland

Debate between Jonathan Reynolds and Caroline Nokes

Monday 12th May 2025 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

The Secretary of State spent about five minutes of his response evading the question that was asked: what will the impact of this trade deal be on Northern Ireland? The fact of the matter is—and he has already said it—that this will be difficult and complicated, and we have to remember that the EU has a single market to protect. It seems he is more interested in protecting the EU from the dribble of goods that goes into the EU than protecting the internal market of the United Kingdom. The fact of the matter is this. The Secretary of State may say, “Well, provided that businesses can prove that parts and other things do not go into the EU, they can then get the taxes back.” But the process for doing that is so complicated, so convoluted and so time-consuming that very often businesses are without the money for a long, long time, with all the cash-flow problems. Then the Treasury spends an age getting the taxes—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We do need to have a question.

[Jonathan Reynolds]

I understand that the right hon. Gentleman feels strongly about this, but I say again to him that any difficulty or complexity is not caused by this trade agreement per se. There is an arrangement in place—one that the Government support and one that, I believe, those on all sides of the House adhere to—that manages the particular situation that Northern Ireland was put in as a result of Brexit. That is the reality.

Where we have a lot of tension in the global trading system and differentials between ourselves and the EU—there are going to be differentials at times—it is incumbent on us all to manage them and ensure that Northern Irish businesses and consumers are getting the benefits of the trade agreements we are seeking, and that where there is that relationship to the wider European Union, we operate all those schemes in a way that is to their maximum utilisation and efficiency. I recognise that there are complaints about the duty reimbursement scheme, and we have worked with colleagues on that, but it is not these trade deals that caused that complexity; it was the particular situation that the previous Government needed to find a solution to—and, to be fair to them, they did find a solution. We, on all sides, are committed to honouring and making sure it is working.

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[Jonathan Reynolds]

The hon. Member will have heard my earlier answers. I believe that Parliament should play a role in scrutinising trade legislation, and indeed any international agreement, but it is not the case in the United Kingdom that we have formal “up or down” votes on any treaty. We vote on the implementation of those agreements, and the responsibility for negotiating and agreeing those is with the Government, rather than Parliament. I am not aware of any substantive proposal to change that system. It is certainly not something that the UK Government today are committed to doing.

The hon. Member talks about the impact of leaving our existing trade relationships in the customs union. That was part of that referendum. I understand how people feel intensely about that. [Interruption.] People have different interpretations of why they voted. We can relive the argument forever or we can focus on the future, on reducing barriers to trade and on the kinds of agreements delivering advantages for every part of the UK, and that is exactly what we are doing. Had we in this case still been part of the customs union, there would be no breakthrough with the US or the India trade deal. All colleagues need to balance up the two things alongside each other. In relation to the automotive sector, that lack of a breakthrough would have meant significant job losses this week in the United Kingdom, and that would have been very painful for all of us.

[Madam Deputy Speaker (Caroline Nokes)]

With what I am sure will be a pithy final question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

You have set me a challenge, Madam Deputy Speaker. I thank the hon. and learned Member for North Antrim (Jim Allister) for securing this urgent question. It is so important to talk about this issue in this place. It has caused considerable problems for my Strangford constituents. In particular, I mention three distilleries—Echlinville, Rademon and the Hinch—but many other businesses are affected, too. How does the Minister plan to address the tariff differentials that may arise for Northern Ireland following the UK-US trade deal? It may see any EU retaliatory tariffs on US goods being applied to US goods entering Northern Ireland, potentially creating an Irish sea border for US goods.

[Jonathan Reynolds]

There is only one Member for Strangford, and no one could mistake him for anybody else in asking a question of that sort. He asks about the definition of whether goods are at risk of entering the single market when they come into Northern Ireland. That is based on a percentage differential in the tariff between the United Kingdom tariff rate for a good or tariff line and that for the EU. I believe that a 3% differential puts a good coming into Northern Ireland potentially at risk and therefore considered for the higher tariff up front. In this case, that would be the EU one, and it would then be reimbursed. I understand that it is a more complex position for businesses in his constituency than for many other things, but we have to make this work. We have to be committed to working with businesses in his area, in Northern Ireland and in the wider United Kingdom, and specifically with political leaders, to ensure that we are getting this right. I am hearing, and I have heard many times, about how we can make that system smoother, more reliable and more efficient. We will take that away and work with our colleagues to do that.

However, the system in place is balancing many different competing pressures, and there are no obvious or easy solutions. I was a parliamentarian when we went through all the potential outcomes when a different party was in charge. Let us make it work. Let us listen where we need to improve things, but let us recognise that this agreement fundamentally addresses some of the core problems that existed when this country chose to leave the European Union.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the Secretary of State for his very detailed answers this afternoon.

Product Regulation and Metrology Bill [Lords]

Debate between Jonathan Reynolds and Caroline Nokes

2nd reading
Tuesday 1st April 2025 Commons Chamber

[Jonathan Reynolds]

On Second Reading, we have a Bill that is even stronger than the one that started in the other House. Once again, I thank all our colleagues in the other place for their constructive feedback and contributions to the debate. I will not go through every change that has been made, but I will mention some aspects of the Bill that have been strengthened.

First, we have amended the Bill to ensure that there is more parliamentary scrutiny, and we have provided for a statutory consultation requirement to ensure that regulations are informed by those who would be impacted by them. There will also be that additional use of the affirmative procedure for regulations stemming from the Bill. Secondly, the Bill now includes a requirement for me, as the Secretary of State, to publish a statement setting out how my Department expects to identify and assess high-risk products.

Finally, contrary to previous suggestions from the Conservative party, the great British pint will clearly not be affected by this legislation, whether that is ale, cider or indeed milk. We do not believe that the Bill in its original form posed any threat to the pint, but we do not want to run the risk of colleagues thinking that my reassurances are small beer, so we accepted an amendment tabled in the other place that will give the pint statutory protection. That means, Madam Deputy Speaker, that in a few weeks’ time, when I hope you will confirm to the House that the Bill has received Royal Assent, we will all be able to raise a pint—protected under statute—to the Bill. I did inquire about whether I was allowed to bring a pint with me to the Chamber to illustrate the point, but that is apparently not in order; only the Chancellor has that ability. Given the week I am having, perhaps we will look at that at a later date.

To summarise, this legislation will finally enable the Government to properly regulate in areas where we have been unable to do so post Brexit. It will also give us the tools we need to better regulate modern-day consumer products. The Bill will help to create a fairer environment for high street shops and small businesses, support our growth mission and provide better protection for millions of consumers. For all those reasons, I commend the Bill to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

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[Jonathan Reynolds]

This is a little off-topic for a Second Reading, but the hon. Gentleman could have just listened to the “Today” programme this morning. He would have heard me articulate those concerns. We are engaged with our US counterparts, more so than any other country, in those negotiations. He will know that I will not share the content or detail of those talks. The policy originates with the President of the United States and we are responding to and engaging with it. The hon. Gentleman will understand that it comes from the mandate and the agenda of the US Administration.

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind the Secretary of State and the shadow Secretary of State that we are debating the Second Reading of the Product Regulation and Metrology Bill, and not necessarily tariffs.

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[Jonathan Reynolds]

I am really grateful to the hon. Gentleman for engaging with the issues about product safety and consumer protection in the Bill, and he is making a serious speech in relation to them.

First, on the point of the customs union, which was skilfully woven into his speech, that would preclude us from reaching any arrangements with the United States, India, the Gulf states or other countries. For my money, if we wish to be part of something without a say in how it would affect our trade policy, that would be a very difficult position to take. I will come back to the references made by Conservative MPs, who often feel like they are fighting the old, last war. They cannot get past it—

[Madam Deputy Speaker (Caroline Nokes)]

Order. First, I gently suggest to the Secretary of State that he is meant to be making an intervention. Secondly, we are quite definitely debating the Second Reading of the Product Regulation and Metrology Bill, not a customs union. Perhaps the Secretary of State will conclude his remarks.

[Jonathan Reynolds]

I will, Madam Deputy Speaker. In relation to the number of references made to the EU in this Bill, the EU is explicitly referenced simply because UK product regulations are derived from a lot of EU regulations. We have to reference that when looking to the future, particularly when we recognise some of those European standards, but it is wrong to simply look at those references and try to make them out to be something they are not.

Budget Resolutions

Debate between Jonathan Reynolds and Caroline Nokes

Wednesday 6th November 2024 Commons Chamber

[Jonathan Reynolds]

Let us reflect on where we are today—the first day of the constructive Opposition. The new Leader of the Conservative party stood at the Dispatch Box two hours ago and called for both tax cuts and massive public spending on defence. How are you going to pay for projects that you promised but never delivered, and that you knew you could never pay for?

[Madam Deputy Speaker (Caroline Nokes)]

Order. The Secretary of State knows better than to say “you”.