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Debate between Lindsay Hoyle and Douglas Alexander
Thursday 8th May 2025

(2 days, 13 hours ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I believe we are now coming to the statement.

Douglas Alexander Portrait The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
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On a point of order, Mr Speaker. It had been the intention of the Government to make a statement to the House this afternoon immediately following the scheduled press conference by the US President and the words of our own Prime Minister. Both of those sets of remarks were delayed, with the result that, at this relatively late hour, the Government would now suggest respectfully to you that it would be more courteous to the House to be able to provide all Members with the opportunity for a full statement on Monday. If that does not—

Lindsay Hoyle Portrait Mr Speaker
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Order. The Government have to come forward with a statement. They converted an urgent question to a statement this morning, so a statement has to be made. What the Minister says cannot be done on a point of order, as that would be unfair. I understand that people were going around telling Members to go home as there would be no statement, because Downing Street had decided that. We do not do business like this: it is totally wrong. To give him the benefit of the doubt, I am sure he would like to update the House on the position now, and I would of course expect the details to come on Monday.

Douglas Alexander Portrait Mr Alexander
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I am grateful to you, Mr Speaker, and I of course defer to your judgment and will issue the statement—

Lindsay Hoyle Portrait Mr Speaker
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Order. It is not my judgment; these are the rules of the House. An urgent question was put in, and it was converted by the Government into a statement, so it is for the Government now to come forward with the statement.

Trade Negotiations

Debate between Lindsay Hoyle and Douglas Alexander
Thursday 8th May 2025

(2 days, 13 hours ago)

Commons Chamber
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Douglas Alexander Portrait The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
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Thank you, Mr Speaker. Let me make the statement, as requested.

Within the last couple of hours, a deal has been announced by the Prime Minister and President Trump respectively. I therefore welcome the opportunity to update the House on the terms of the agreement that has just been reached. Back in February, I stood before the House and said:

“What British industry needs and deserves is not a knee-jerk reaction but a cool and clear-headed sense of the UK’s national interest, based on a full assessment of all the implications of US actions.”—[Official Report, 11 February 2025; Vol. 762, c. 182.]

It is this approach, which the Government have taken, that has brought us to the front of the queue today. Indeed, no other country has been able to secure an exemption from the tariffs imposed by the United States until today.

In March, the United States Government announced tariffs on steel, aluminium and autos. This was followed by an announcement of a global tariff, with the UK on the lowest rate of 10%. Throughout this period, the UK Government have been engaged in an intensive and continued dialogue with the Government of the United States to advance the UK’s national interest in this challenging and changing global trading environment. The deal we have agreed is the first step in delivering on the commitment made by my right hon. and learned Friend the Prime Minister and President Trump in February to reach an economic deal in our respective national interests.

First and foremost, the deal will protect UK jobs, while laying the groundwork for increased transatlantic trade and investment. As the Prime Minister has commented within the last hour,

“This is jobs saved…not job done.”

To that end, I can inform the House that the deal we have secured secures reductions to the 25% tariffs imposed by the United States on the UK car industry. UK exports to the US will face a lower tariff of 10% for a quota of 100,000 vehicles. That is positive news for iconic British luxury brands such as Aston Martin, Bentley and McLaren, but it is also good news for our country’s largest vehicle manufacturer, Jaguar Land Rover, which employs 34,000 employees directly in the UK, with 135,000 further jobs in its wider supply chain. As the Society of Motor Manufacturers and Traders pointed out, the US is Britain’s second largest car export market. A deal like this was desperately needed to support jobs and economic growth on both sides of the Atlantic.

Furthermore, the deal secures the removal of the new tariffs the US imposed on steel and aluminium in March, through duty-free quotas. It reinforces our commitment to the steel industry, following our swift action last month to protect British Steel and its 2,500 employees.

Turning next to agriculture, for the first time ever, the deal will open up exclusive access for UK beef farmers to the US market. Currently only a few other countries, such as Australia, enjoy such access. This is a major opportunity for British farmers to increase their exports to the world’s largest consumer market, helping them to grow their businesses. Let me be clear that the import of hormone-treated beef or chlorinated chicken will remain illegal. The deal we have signed today will protect British farmers and uphold our high animal welfare and environmental standards. Any agricultural imports coming into the United Kingdom will have to meet our high SPS—sanitary and phytosanitary—standards.

On economic security, the deal will ensure co-operation on non-market policies from third countries, investment security and export controls. With the United States Government, we will continue to advance the UK’s national interest in key sectors where discussions continue, such as pharmaceuticals, semiconductors, critical minerals, copper, lumber and film production. We will seek the best possible deal and outcome for these vital parts of our economy, and those working on our critical infrastructure. We have also committed to further negotiations on tariff reductions to enhance the UK-US trading relationship. Without this Government’s swift action, the economic impact of US tariffs would, candidly, have been extremely severe.

Following agreement on the outline of the deal today, there will now be a process of formal negotiations with the US on a binding legal framework. The negotiations aim to deliver an ambitious set of outcomes in areas such as digital trade, tackling non-tariff barriers, agreeing mutual recognition agreements for industrial goods and an agreement on domestic services regulation, collaborating on economic security, and upholding standards in areas such as intellectual property and labour practices.

I can, of course, confirm to the House that hon. Members will have the chance to scrutinise the deal we agree with the United States Government, as well as legislation implementing the deal. To reiterate what the Prime Minister and the Secretary of State for Business and Trade have told the House, we are not seeking to change existing statutory scrutiny processes. It is vital that Parliament has the opportunity to make its voice heard on this important set of issues.

I am pleased to confirm that the Secretary of State yesterday briefed the First Ministers of Scotland, Wales and Northern Ireland on progress in the negotiations. We will continue to work closely with the devolved Governments throughout the negotiations that will follow today’s announcement.

As a Government, we are grateful to businesses across the United Kingdom for their extensive and continued engagement in recent weeks, and look forward to continuing that engagement through the remaining negotiations.

I would also like to place on record the Government’s gratitude for the work of officials here in London and in Washington for their efforts in securing the first stage of this agreement today.

It will have escaped nobody’s attention in this House that this agreement with the United States has been reached on the 80th anniversary of Victory in Europe Day. That victory was secured not simply by the heroism and courage of the British armed forces, but by strong transatlantic alliances that have served us well over the eight subsequent decades. In the coming years, the Government of the United Kingdom will continue to work to secure international agreements that uphold our national interests.

For all those reasons, I commend the statement to the House.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

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Douglas Alexander Portrait Mr Alexander
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Where to begin, Mr Speaker? As I sought to reflect in my statement, and as the Prime Minister remarked only a few minutes ago,

“This is jobs saved…not job done.”

It is significant that two former Conservative Prime Ministers —the former Members for Henley and for Maidenhead, as I recollect—sought and failed to deliver a US trade deal, in the same way that the former Government failed to deliver a deal with India. Important though it is to hear the views of the Opposition about trade deals that were not done, I think it is also important to hear from the Government about trade deals that have actually been done.

I am grateful, none the less, that the shadow Secretary of State found it in himself to welcome the tariff reductions that have been achieved. I think there will be relief at JLR in particular this evening that the calm, cool-headed approach taken by the Prime Minister and the negotiators has yielded a significant reduction of tariffs to a critical supply chain and a critical set of British exporters.

On Brexit, I respectfully say that this House has debated Brexit innumerable times over the years since 2016. I simply observe that we as a Government are more interested in new markets than in old arguments, and that there have been plenty of opportunities to rehearse those old arguments. I can also assure the House that, as we look ahead to the first EU-UK summit on 19 May, having delivered deals with India and the United States, we are now looking to reset that relationship with our friends, neighbours and partners in the EU, not least because three of our five largest trading partners are actually members of the European Union.

On the specific points about the film industry, we continue to negotiate on the UK’s behalf—[Interruption.] The shadow Secretary of State, who is chuntering from a sedentary position, seems to suggest that we can unilaterally declare the policy of the United States. Negotiations involve two parties. That is a lesson that the Conservatives could have learned when they failed to secure a US trade deal in the past. It is by listening and working together with our partners in the United States that we have been able to make progress today. As the Prime Minister said:

“This is jobs saved…not job done.”

There is further work to be done, and we fully intend to take that work forward.

On agriculture, I think it is important to say that the red line that we maintain consistently in relation to SPS measures has been protected. I am grateful to have the Minister for Food Security and Rural Affairs on the Front Bench with me. We have maintained those critical animal welfare standards. All of the speculation in relation to chlorinated chicken or hormone-injected beef has turned out to be unfounded.

It is important to recognise what was agreed today. Let me be clear to the House: this agreement will provide the United States with an initial tariff rate quota on beef of 10,000 tonnes, increasing by 1,000 tonnes per year to a cap of 13,000 tonnes. Let me put that in context for the House and for those on the Conservative Front Bench. The previous Government agreed under the UK-Australia FTA to a beef tariff rate quota of 35,000 tonnes per year, which incrementally increases to—wait for it—110,000 tonnes per year, and ultimately becomes unlimited, subject to the safeguard regime. A sense of balance, proportion and understanding is required when discussing not only the safeguards that have been maintained and protected by the British Government, but the deal that has been struck in relation to beef. We need to keep the market access granted to the United States in the context of the wider economic benefits that this deal has secured for the United Kingdom.

On the rather diminishing political points that the shadow Secretary of State sought to make in relation to domestic legislation, I can assure him that the domestic legislation and the programme of the British Government remain unchanged as a consequence of today’s landmark deal. As far as I am aware, that is also the case in relation to the membership of the Cabinet. I am very relieved to say that it is the Prime Minister who is in charge of choosing members of the Cabinet, not the Conservative party, although the shadow Secretary of State does have a distinguished record of service alongside Liz Truss in a previous Government.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Business and Trade Committee.

Liam Byrne Portrait Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
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Thank you, Mr Speaker, for helping to ensure that this moment was possible. Let me add my congratulations to my right hon. Friend and to His Majesty’s ambassador in Washington, Lord Mandelson, for getting this deal done. It would appear tonight that a small, common-sense retreat on duties and agriculture have unlocked a major reprieve for tens of thousands of jobs in our car and steel industry.

Will the Minister clarify for us tonight when those tariff reductions will kick in? Will he confirm that there is nothing in this bargain that compromises our ability to strike the boldest of resets with the European Union? It would be a mistake to strengthen transatlantic relationships and then short-change cross-channel possibilities. Can the Minister confirm that he will facilitate a debate in this House, if not a vote on the treaty?

On Tuesday, I will recommend to the Select Committee that we commence a full inquiry into this treaty, so that we can report back to the House, but a vote would help us understand who stands where in standing up and protecting British jobs.

Douglas Alexander Portrait Mr Alexander
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Let me begin by paying tribute to my right hon. Friend’s long-standing interest in Jaguar Land Rover and the wider west midlands economy and to the diligent and demanding work he does on the Business and Trade Committee, which makes a major contribution to not only trade policy but business policy here in the United Kingdom.

To clarify the point my right hon. Friend made on the auto industry, the UK exports around 100,000 cars a year to the United States, and this quota will ensure that most manufacturers now pay the preferential rate. The agreement has removed the 25% tariff that the US applied to UK cars on 2 April. The agreement has been welcomed by the UK auto industry in the last couple of hours, including by Jaguar Land Rover, which is the largest exporter to the US. We are committed to continuing to support the automotive industry, which is a point my right hon. Friend has made powerfully in recent days.

On his second point, I can assure my right hon. Friend that notwithstanding the significant progress we have made in relation to the United States—as I said, jobs saved but job not yet done—a great deal of work is continuing on the UK-EU summit that is due to take place on 19 May. He is right to recognise the importance of twin-tracking our approach, as it were, by recognising the salience and significance of the United States as the country that is comfortably our largest single trading partner while recognising the European Union as our largest trading bloc, which covers about 46% of our trade.

Turning to the economic security aspects of the deal, I pay particular tribute to the work of my right hon. Friend, as I know this issue has been of great interest to the Business and Trade Committee. I think he will take a lot of encouragement from what emerges in the agreement, specifically in relation to export controls and investment security. One might almost think that the negotiators had been reading his Substack.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Steve Darling Portrait Steve Darling (Torbay) (LD)
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Sadly, the world has changed dramatically in the few months since Donald Trump took office in the White House. We need to reflect on the shared values we have with key countries across the world. We need to look to Canada and stand up to Trump as it has done, and we need to make sure that we build economic relationships with countries such as Canada, Australia and the countries in the European Union—all countries that share our values.

I am pleased that the Minister spoke of scrutiny, because we must ensure that there is scrutiny. We need a vote in this House on these proposals. We need to protect the NHS and ensure that we are not selling our farmers down the river. We must also ensure that there are no cuts to taxes on high-tech industries, which the US may be pushing for. Will the Minister address the matter of a vote in this House? That would be extremely helpful. Donald Trump tends to be a weathervane, and he could come back for more. I also feel for our pharmaceutical industry, so what assurances can the Minister give them?

Douglas Alexander Portrait Mr Alexander
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I thank the hon. Gentleman for his questions. On the case he makes for seeing trade as not simply a bilateral issue but a multilateral issue, I think there is a broad consensus across the House. As well as the work we have taken forward in relation to the United States today, we continue to work with friends and partners in a range of different fora, including the comprehensive and progressive agreement for trans-Pacific partnership and the European Union.

On his specific question about scrutiny of trade within this House, I echo the confirmation that the Prime Minister gave in the Commons only a few days ago that we are not anticipating any change to the process of scrutiny for trade matters in the House.

On the two substantive political points, first, it is worth the House recognising that there is no change to the United Kingdom’s digital services tax as a consequence of the agreement reached today. Secondly, I know that there has been widespread concern not only on the Liberal Democrat Benches but right across the House about measures to tackle the evil of online harm, but I can confirm again there has been no change as a consequence of the agreement reached with the United States.

Lindsay Hoyle Portrait Mr Speaker
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Order. I thank the Minister for coming forward with his statement, but the Table Office has not received a copy of it. I am wondering where it is and when we will see copies of it. Can it be handed in so we can get it printed for Members?

Let us move on to Dame Meg Hillier.

Meg Hillier Portrait Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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I add my congratulations to the Secretary of State and the team at the Department as well as our team of officials under Lord Mandelson in Washington. This is a major step forward in a short time. Given how long trade agreements normally take, this is an impressive step.

However, as has been mentioned, we know that President Trump has made rattling sounds about tariffs on the film industry. The creatives and technical businesses in my constituency who contribute to our film industry are obviously nervous about that. Will the Minister reassure us that he is putting his shoulder to the wheel on this issue and not resting on his laurels on the triumphs achieved so far?

Douglas Alexander Portrait Mr Alexander
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Mr Speaker, on your point, I apologise again for the statement not being available. As was clear from my initial remarks, there was some confusion within Government as to the best way to proceed, but I hope that through my officials we will provide it to you as a matter of immediacy.

Lindsay Hoyle Portrait Mr Speaker
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Order. Just so that we completely understand, the Government decided they were making a statement, so there was no possibility of anything else. The House was suspended and had to resume; we could not leave it in limbo forever. The point was that there was a statement coming. Thankfully, the Minister made a statement. Hopefully, we can get copies of the statement to everyone. I was bothered about us being in danger of sending people home, saying that there was to be no statement. That was never, ever the case. I am disappointed that Members were advised to leave the building 30 minutes ago on the claim that there was to be no statement.

Douglas Alexander Portrait Mr Alexander
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Mr Speaker, the responsibility was ours, and for that I apologise. I hope that through my officials we will be able to furnish the House with the statement that is requested.

In relation to my hon. Friend’s question, I assure her that it is not my personal style or the departmental habit to rest on laurels. It will not have passed her notice that it has been a somewhat busy few months in relation to trade policy, not least given the historic changes in the global trading environment we are experiencing on a daily basis. Notwithstanding that turbulence and the challenges in relation to trade policy, it is a matter of quiet satisfaction that we were able to get the India deal over the line earlier this week. Through that process of quiet, engaged, diligent diplomacy and a great deal of hard work by officials, negotiators and others, we have been able to secure this agreement today. But I assure her that the work goes on.

Lindsay Hoyle Portrait Mr Speaker
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I call the Father of the House.

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Douglas Alexander Portrait Mr Alexander
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On today of all days, I will not suggest that there should be any fetters or constraints whatsoever on this House when it comes to introducing legislation on online harm, or any other issue.

Lindsay Hoyle Portrait Mr Speaker
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Can I just say that I never want to be put in this position again? I remind people that before we send Members home, we ought to think to tell them that there will not be a statement. I think that was bad. The Chair of the Select Committee complained to me, because he was told to go away. We should not be doing this. In this House, we need to work together. This House should be respected. I will stand up for the Back Benchers. Please never put me in this position again.

On behalf of this House and all the Roman Catholics across the United Kingdom, particularly in Chorley and Lancashire, I wish the new pope well.

Adjournment

Resolved, That this House do now adjourn.—(Keir Mather.)

Oral Answers to Questions

Debate between Lindsay Hoyle and Douglas Alexander
Thursday 1st May 2025

(1 week, 2 days ago)

Commons Chamber
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Douglas Alexander Portrait Mr Alexander
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At exactly this point tomorrow morning, I will be visiting a farm in East Lothian, so I can assure the hon. Gentleman that I am fully aware of the importance of food and agriculture to the Scottish economy and, more broadly, to the UK economy. I also respectfully refer him to the Labour manifesto at the last general election, which made very clear our commitment to maintaining important standards.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

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Douglas Alexander Portrait Mr Alexander
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I would be inclined to wait for the summit before declaiming it as a disaster—I think, in the trade, that is called prebuttal. However, the hon. Gentleman’s point about the seriousness of the summit is a fair one, and I recognise it. When I saw those images of the Prime Minister sitting with President Trump in the Oval Office, or indeed with President Macron or President von der Leyen of the European Commission, I felt a genuine sense of relief that we have a serious Prime Minister for these serious times. That serious Prime Minister is intent on, first, rebuilding personal relationships across Europe and, secondly, looking to identify the areas that are transparently win-win between ourselves and our friends, neighbours and partners in the European Union. I assure the hon. Gentleman that there is an ambitious agenda for the summit on the 19th.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Douglas Alexander
Thursday 13th March 2025

(1 month, 3 weeks ago)

Commons Chamber
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Seamus Logan Portrait Seamus Logan (Aberdeenshire North and Moray East) (SNP)
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T9. Scotland’s goods exports to the US were worth over £3.7 billion last year, and scotch whisky exports were £971 million—the largest slice by value. If the Prime Minister cannot protect the UK and Scottish steel industries, how can Scottish people be sure that he will be able to protect our whisky industry from malicious US tariffs?

Douglas Alexander Portrait The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
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I can assure the House that we are in regular touch with the Scotch Whisky Association. We fully appreciate the significance and importance of that industry not just to Scotland but to the UK. As my right hon. Friend the Secretary of State said, we are well served by a serious Prime Minister in these serious times, which affords us the opportunity for a dialogue in trade frankly not available to other countries.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Select Committee, Liam Byrne.

US Steel Import Tariffs

Debate between Lindsay Hoyle and Douglas Alexander
Tuesday 11th February 2025

(2 months, 4 weeks ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Douglas Alexander Portrait Mr Alexander
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Well, well—let me try to answer the various questions that the shadow Minister asks. First, on the big, beautiful deal that the Conservatives contemplated, I simply observe that that was one of a whole number of trade deals that they boast about but abjectly failed to deliver.

The hon. Lady described this as a moment of great peril for the UK steel industry. Frankly, we saw the UK steel industry suffer from a degree of neglect for many years under the previous Government. That is why we are the first Government in many years to set out a comprehensive steel strategy, including a commitment of £2.5 billion towards the future of the steel industry. We will take no lectures from Conservative Front Benchers on the UK steel industry.

On the hon. Lady’s substantive question about the degree of contact that we have had with the US trade representative, it may have eluded her attention that we do not yet have a confirmed US trade representative. We anticipate that Jamieson Greer will be confirmed by the US Senate in the next couple of weeks. Similarly, she might suggest that it is important for the Secretary of State to meet Howard Lutnick, the US Secretary of Commerce, but, alas, I must inform her that Howard Lutnick has not yet been confirmed. We stand ready to engage with the incoming Administration—be that with the USTR or the Secretary of Commerce—once we are in a position to do so.

In terms of the economic analysis, I hope the hon. Lady will understand, given how sensitive these issues are as we anticipate the further steps to be taken by the Trump Administration, that it would not be an altogether wise negotiating strategy to share the detail of the internal UK analysis of the potential effects of tariffs, which, I remind the House, are not due to be imposed until 12 March.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Business and Trade Committee.

Liam Byrne Portrait Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
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What is essential now is that this does not escalate. Widespread duties on UK exports to the US would be devastating for economic growth, bad for inflation and bad for interest rates. The whole House ought to wish His Majesty’s new ambassador, Lord Mandelson, the very best of luck in the conduct of his new tasks in Washington. What flexibility will the Minister allow on increasing funding to UK steelmakers through the steel strategy if they confirm that that is essential to maintain a sovereign capability in this country?

Douglas Alexander Portrait Mr Alexander
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I am grateful to my right hon. Friend for his generous words about the incoming UK ambassador to Washington, who—notwithstanding his commitment at the weekend to fly under the radar—is already in post and is making necessary calls. He is but one of the key interlocutors we have established with the incoming Administration, and—reflecting the earlier questions that we were asked—we are already actively engaged with the US Administration.

More broadly on the approach to the UK steel industry, my friend and colleague the Minister of State for Industry is this afternoon meeting representatives of the steelmaking trade unions and representatives of the principal steel companies in the United Kingdom. The Secretary of State will further that dialogue in the next 24 hours. There has already been outreach to the UK Steel trade body. In relation to the commitment for the steel strategy that we are due to unveil in the spring, I can assure my right hon. Friend that there is already a very active dialogue that will incorporate issues related not just to potential tariffs but to the risks of trade diversion, and to the substantive issues that he raises.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.