US-UK Trade Deal: Northern Ireland

Debate between Jonathan Reynolds and Jim Allister

Monday 12th May 2025 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the US-UK trade deal, with particular reference to the impact on Northern Ireland.

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

With your permission, Mr Speaker, I am grateful to be able to give a statement today, following that given by my right hon. Friend the Minister for Trade Policy and Economic Security on Thursday, to update the House on the agreement we have reached with the United States and specifically to address the important circumstances of Northern Ireland.

I can confirm that we have closely considered the impacts of this agreement on Northern Ireland. I have personally spoken to the First Minister and Deputy First Minister twice while negotiating this deal, the first time alongside the Prime Minister. I want all Northern Ireland colleagues to know that the importance of Northern Ireland in this deal, and all trade deals, is paramount to me personally, and I commit absolutely to working with any colleague from Northern Ireland on the implementation of agreements of this sort.

First, as Northern Ireland is part of the UK’s customs territory and internal market, Northern Ireland exporters can access the US market under this deal on the same preferential basis as the rest of the UK. Secondly, this deal does not affect how imports to Northern Ireland operate. US origin goods will be able to benefit from this deal where they are not at risk of entering the EU. As a result of the Windsor framework, Northern Ireland businesses importing eligible US goods under this deal can avoid any unnecessary duties with established schemes such as the UK internal market scheme. Thirdly, there is a comprehensive tariff reimbursement scheme. The difference between the UK and EU duty can be claimed back, so long as it can be demonstrated that the goods did not enter the EU single market. The customs duty waiver scheme also allows at-risk duties to be waived entirely regardless of the destination, subject to an overall limit. As we have said all along, we have continued to act in the best interests of all UK businesses, which very much include those in Northern Ireland.

More broadly, I can confirm that this agreement saves thousands of jobs, gives the UK an advantage over other countries in relation to trade with the US, and confirms a process of potentially securing a much wider trade agreement between our two countries. The UK-US trading relationship, which is already worth £315 billion, is important and growing. We have £1.2 trillion invested in each other’s economies, employing around 2.5 million people across both our countries. That is why this deal was so important. Throughout our negotiations, businesses have consistently praised our calm-headed, pragmatic approach to working with President Trump’s Administration and I thank them for their engagement, their support and their advocacy.

Turning to the detail of the agreement, in no industry was the potential impact of tariffs more acute than in our automotive sector. We have therefore negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%—

--- Later in debate ---

[Jonathan Reynolds]

Mr Speaker, I would have been more than happy to make it a statement, and I was hoping to be able to do so.

We have negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%, and secured an agreement for associated car parts, recognising the vital role that this sector plays in our economy.

For steel and aluminium, this deal will remove the 25% additional tariffs that were put in place earlier this year, reducing US tariffs on core steel products to zero. This will provide a critical lift for the steel industry, which has been brought back from the brink of collapse, allowing UK steelmakers to continue exporting to the US. This follows our intervention last month to take control of British Steel and save thousands of jobs in Scunthorpe.

For pharmaceuticals and life sciences, this deal provides assurances that we will receive significantly preferential access in case of any new US tariffs, something that, so far, only the UK has secured. As the pharmaceutical manufacturing sector contributes £20 billion to the UK economy a year and employs around 50,000 people, this was a priority for us.

On aerospace, we agreed that UK aerospace exports, such as Rolls-Royce engines and plane parts, will have a specific guarantee of zero tariffs as a result of this deal. This will be a huge boost to the sector, which supports 450,000 jobs in the UK.

To secure this deal, we have made agreements with the US on beef, ethanol and economic security. On beef, we have agreed a new quota of 13,000 metric tonnes, and have reduced the UK tariff on existing US imports coming through a World Trade Organisation quota limited to 1,000 metric tonnes. Crucially, I can confirm this will comply with sanitary and phytosanitary standards, in accordance with the commitments that we have always made.

The increase in the quota of 13,000 tonnes compares with the 110,000 tonnes in the Australia deal negotiated by the last Conservative Government. Even more importantly, the deal is reciprocal, meaning our UK beef farmers will have unprecedented market access to the US. Our farmers will be able to export their high-quality beef through an exclusive UK quota to a market of over 300 million people, providing unparalleled access to the world’s largest consumer market.

On ethanol, we already import a significant amount of ethanol from the US and have agreed a duty-free quota capped at 1.4 billion litres. We are working closely with our domestic sector to understand its concerns and any potential impacts to businesses, including what more Government can do to support the sector.

Finally, the UK and US will strengthen our co-operation on economic security and work together to combat duty evasion. We will continue to use investment screening measures already in place, and we will work together to protect our existing supply chains from any third-country investment that concerns either one of us. This Government will take a consistent, long-term and pragmatic approach to managing the UK’s relationships with third countries, rooted in our UK and global interests.

As we have made clear, the aspiration on both sides is that this is just the beginning, with the US agreeing to deepen transatlantic trade and investment further, and to progress discussions towards a transformative UK-US technology partnership. This deal has seen jobs saved and jobs won, but it is by no means job done. The siren voices of the extremes can claim to be the voice of working people all they want, but we know that on matters of action on wages, security and opportunity, it is this Government who will make the difference.

The deal comes on the back of our India trade deal earlier last week and on the promises that many Governments have made to secure trade agreements with the US. Although many people have talked about those deals, it is this Government that have got them across the line for every bit of the UK, including Northern Ireland.

[Jim Allister]

For all his verbosity, the Secretary of State came nowhere close to addressing the issues that arise from the fact that this Government and this House do not control the trade laws of a part of this United Kingdom—namely, Northern Ireland. Under the Windsor framework, Northern Ireland was placed under the EU’s customs code, so it is therefore its tariffs, not the UK’s tariffs, that govern the imports to Northern Ireland. With the EU having no trade deal with the US or India, the resulting tariffs on imports under this deal will be higher when the goods come to Northern Ireland than when they come to GB. For manufacturing and consumers, that creates huge disadvantage and fundamentally contradicts the equal citizenship that is supposed to denote a United Kingdom.

The Secretary of State referred to the convoluted and tardy system of possible recoupment of tariffs, but the onus there is on those applying to prove that anything they produce will never go into the EU. It is no answer to Northern Ireland’s subjection to foreign trade laws, which we do not make and cannot change. The Secretary of State would not contemplate that for his own constituents, but he expects us to sup it up in Northern Ireland.

I will ask the Secretary of State about three specific issues. Under the deal, will it not be easier for US manufacturers to buy tariff-free steel from Great Britain than for manufacturers in Northern Ireland to buy the same steel from their own country to bring it into their own country? That steel will be subject to EU tariffs. How can that ever be compatible with Northern Ireland supposedly being part of the EU’s internal market? In terms of beef and the tariff-free trade within the quota that has been set, how can—

[Jim Allister]

Where there is a set quota for imports of beef, how can Northern Ireland participate in that if the UK cannot offer a reduced tariff rate in Northern Ireland? Does that mean that our beef-exporting farmers in Northern Ireland will be excluded? Surely all these trade deals expose the folly of surrendering part of our territory to foreign customs control.

[Jonathan Reynolds]

I am grateful to the hon. and learned Member for bringing this urgent question and for putting his community’s concerns on the record; I understand how strongly he will feel about them. There is much that I could say and criticise about the previous Conservative Government’s approach to a lot of things, but the approach that they took with the Windsor agreement to balance the obvious, practical problems and realities of Brexit—of leaving the single market when Ireland is in the EU and the customs union—alongside our commitments under the Good Friday agreement to observe what we have all signed up to and want to support is fundamentally better than when they threatened to break all kinds of international laws and agreements with key partners. It was the better way to find a way through them.

I absolutely accept and understand that this issue is difficult and complicated, but I can tell the hon. and learned Member that that is not just the perspective of the UK Government, in terms of working with our colleagues and ensuring that these issues are reflected in the agreements, but what we hear from the other side in these agreements. When we explain what we need to see happen around agreements such as this, we see that the US is absolutely committed to peace, to the Good Friday agreement and to the sound working of the Windsor agreement.

The hon. and learned Member has raised a number of specific questions, and I will ensure that we deal with them. We will meet with him and a delegation of MPs and ensure that we are in correspondence with him, as we have promised to be with the First Minister and Deputy First Minister. This approach is complicated, but it is far better than the one we briefly glimpsed in that difficult period when the Conservative Government did not have the Windsor agreement in place. Fundamentally, there is a difference between goods entering Northern Ireland and therefore entering the UK and goods entering Northern Ireland if there is a risk of them entering the single market more widely. This is a sound system to deal with that, and I accept that we must make it work.

This is not our system, but we recognise what the previous Government were trying to do. Whether the hon. and learned Member wants it or not, I offer him an absolute, unequivocal agreement that we will work with him on any concerns he or his community have to ensure that we get this right to the maximum degree possible.

Post Office Horizon: Redress

Debate between Jonathan Reynolds and Jim Allister

Monday 9th September 2024 Commons Chamber

[Jonathan Reynolds]

People are aware that it is fairly challenging to have a situation in which justice is devolved across the United Kingdom. At times that has very much affected the debate in this House. I believe that what the hon. Gentleman says is the case, but I will write to him about the Northern Irish situation to give him the information that he needs.

[Jim Allister (North Antrim) (TUV)]

I welcome the Secretary of State’s announcement and look forward to things proceeding to the necessary conclusion. Redress is about righting wrongs, but there was more than one wrongdoer—there was also Fujitsu. Last week, the Prime Minister told us that firms that had fallen short in relation to Grenfell would be removed from Government contracts. Bearing in mind Fujitsu’s actions and that there was at least one suicide, will it be treated in the same way? Will there be redress against its unlawful actions as well?

[Jonathan Reynolds]

I agree with the hon. Member. That is a crucial and important question. I welcome Fujitsu acknowledging its moral responsibility in relation to these matters. I understand that it is participating fully with the Sir Wyn Williams inquiry. We will need that inquiry to conclude. We should not pre-empt that in any way and take any decisions before that process has been gone through properly, given that we all support it. Accountability will flow from the inquiry. It will be an important step and it will affect many, many organisations that have been part of this story. Fujitsu will clearly be one of them.