US-imposed Trade Tariffs

Lord Purvis of Tweed Excerpts

Monday 7th October 2019 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I repeat what I said before to the noble Lord and I declare my interest in the register of a shareholding in the drinks industry.

Resorting to tariffs is not in the interests of this country, the EU or the United States if we are to have the productive economic relationship with the United States which we are working on and want to have. It is already our largest trading partner outside the EU. It is clear that we need to have a positive, mutually beneficial relationship with the United States. We believe that that is the way forward because the United States is an important market for our produce.

Geographical indicators is not my specialist subject, I am afraid, but it seems to me that Scotch whisky comes from Scotland and Bushmills comes from Northern Ireland. We should cherish our produce and I am grateful to the noble Lord for his remarks.

[Lord Purvis of Tweed (LD)]

My Lords, given the indicators under WTO rules that these products are unique, they will become even more vulnerable to a tariff regime that the United States may play across the European Union. This industry is uniquely Scottish and British. As with distinct elements of our cashmere industry, which was referenced in the Answer to the Statement—I represented many mills in my former constituency—the industry has been able to flourish in the past, certainly within textiles, because when it has been a victim of international trade disputes, European structural funds have supported it. What are the Government’s contingency arrangements for rural businesses and the whisky industry?

The noble Lord gave figures for the Scotch whisky industry showing that single malts account for one-third of the £1 billion in whisky exports. There are 7,000 rural jobs in that sector, and the cashmere and textile industry is particularly vulnerable. Will the Government give a commitment that whatever the European Union decides, we will be in lock-step with it? If so, the tariff proposals we have just been questioning the noble Lord, Lord Callanan, on will have to be amended to be in lock-step with the EU response to the United States. I hope that Ministers have given that commitment to our interlocuters from the United States. It would be helpful if the Minister could clarify that that commitment has been given.

[Lord Gardiner of Kimble]

My Lords, as I have said, we are working with the EU. This issue concerns tariffs imposed on the EU, and we are part of the Airbus quad that I have been learning about. We are working very strongly with our EU friends and partners, in working with our American friends and partners, on something that we in this country do not think is beneficial for American trading interests or our own. Whatever our status—whether a member of the EU or not—we are clear that we do not believe that this is right or beneficial. If we have left, we will also be saying that this is not a basis on which we should be working. These tariffs are not beneficial to the EU, the UK or the third party in this, the United States.