Tariffs: Canada and Mexico

Lord Purvis of Tweed Excerpts

Tuesday 4th March 2025 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My noble friend makes an important point. Advanced technology is one of the key industries in our industrial strategy, and certainly one of the important areas for our future prosperity. We are committed to continuing our work with both the US and the EU to remove barriers to trade and to help UK businesses grow. Our number one priority is the growth of the UK economy, and free and open trade with our most economically important partners will be key to its delivery.

[Lord Purvis of Tweed (LD)]

But, my Lords, our trade is so integrated with that of the European Union, and our trade policy is based on WTO rules. The Trump Administration imposing tariffs based not on trade policy but on other policy areas means that we will have to be a party to any WTO disputes if we are to protect our interests. One consequence of Brexit is that we have not followed suit with having an anti-coercion instrument, which would allow us to respond quickly if tariffs are put in place on non-trade policy areas. Does the Minister not agree that, for the resilience of the British economy and our trade, it would be better to co-ordinate with our European trading allies to have a common anti-coercion trade policy?

[Baroness Jones of Whitchurch (Lab)]

My Lords, as I said, we are committed to working with both the US and EU to remove barriers to trade and to help UK businesses grow. It is obviously very early days, and we will continue to take a cool-headed approach to any possible tariffs. We remain prepared to defend the UK’s national interest where it is right to do so.