Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 14th March 2019 Commons Chamber

[Dr Fox]

This is an issue that the Government take seriously because we want to ensure that British companies have the right to trade where we think it is appropriate and where the British Government’s foreign policy indicates that. I have had and will continue to have discussions with my American counterparts on that issue.

[Nic Dakin (Scunthorpe) (Lab)]

Given the announcement on tariffs, what progress is being made regarding the steel industry in relation to the trade defence instruments in place at European level being transferred across to UK level at the point of departure?

[Dr Fox]

I am not sure whether the hon. Gentleman missed the statement we had in the House on this, but I made it very clear that those arrangements would be rolled over. It will not be the Government’s intention in any way, shape or form to leave our businesses less protected than they are today, which is why those trade remedies will continue.

EU Trade Agreements: Replication

Nicholas Dakin Excerpts

Wednesday 13th February 2019 Commons Chamber

[Dr Fox]

That is so fundamentally wrong. The Government have said nothing of the sort about geographical indicators. We regard them as having the highest importance, not least in Scotland. On that point, I congratulate Scotch whisky on reaching almost £5 billion of exports last year—exports that we are very keen to protect.

[Nic Dakin (Scunthorpe) (Lab)]

Ministers have always promised that these trade agreements will mirror the terms that these countries have with the EU and which the UK currently enjoys. Has the Secretary of State achieved this in the provisional agreements with Norway, Iceland and Liechtenstein, and how does he propose to achieve it in respect of Turkey’s trade relationship with the EU?

[Dr Fox]

We have said that we aim to replicate the terms as closely as possible. There are some issues that mean that it is not entirely possible to do so. The hon. Gentleman correctly raises the issue of Turkey, which is in a particular position because of its partial customs union with the European Union. This of course means that it is difficult to conclude what we are going to do with Turkey until we know the shape of our agreement with the European Union. Again, that simply raises the issues and complications of being in a customs union, rather than being a nation that is able to determine its own independent trade policy.

Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 7th February 2019 Commons Chamber

[Mr Speaker]

I call Lloyd Russell-Moyle. Not here—where is the fella? I hope that he is not indisposed; that would be most unfortunate. Well, who is here? Nic Dakin is here.

[Nic Dakin (Scunthorpe) (Lab)]

Thank you, Mr Speaker.

The steel industry is confronted with the possibility that the trade defence instruments currently in place at European level to prevent Chinese dumping will not come forward at UK level. We also face having to compete against quotas to sell steel into the EU when we are outside the EU. What is the Secretary of State doing to make sure that that does not happen?

[The Minister for Trade Policy (George Hollingbery)]

I can say straightforwardly that the anti-subsidy and anti-dumping measures that are currently in place in the EU have been widely consulted on with British industry, and particularly with the steel sector, as the hon. Gentleman will appreciate. We will be transitioning the measures that are important to those industries. The same process has been gone through for safeguarding, and the same result will occur.

European Union (Withdrawal) Act

Nicholas Dakin Excerpts

Monday 14th January 2019 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

Last year, we commemorated the centenary of the end of the first world war. It was a sombre remembrance. Last month, we celebrated 100 years since the first election in which women and working-class men voted. Both anniversaries remind us of the progress we have made, but progress is not inevitable. This year, we remember 80 years since the outbreak of the second world war—just 21 years after the war to end all wars. It is a shocking reminder of the fragility of peace. The last 70 years have been ones of peace, freedom and prosperity driven by positive relationships with our partners in Europe. The 70 years before were ones of war, oppression and economic depression driven by negative relationships with our European neighbours. Peace, freedom, prosperity—things worth having, things we take for granted when we have them but whose loss we regret when they are gone.

We had a second referendum on our relationship with the EU in 2016. Many in this debate have reminded us of its outcome—17.4 million, or 52%, for leave and 16.1 million, or 48%, for remain—but there is another way of looking at the result that helps to explain why we are finding it so difficult to deliver the will of the British people: 62% of eligible voters, or 29 million people, did not vote leave. No wonder we are struggling! People voted to come out, not to lose out.

Northern English industrial, commuter and market towns such as Scunthorpe, Bottesford and Kirton, which I represent, voted overwhelmingly leave—2:1 in my area—and it is no wonder. They are fed up with the change to their communities, as migrant workers take jobs in agriculture, food production and small manufacturing. They see this as depressing their wages. They see their high streets change and shrink. When things close—the courts, the banks, the shops—it always seems to be ours that close. When investment is made—in roads, in rail, in shiny new projects—it always seems to be the big cities, London and the south-east that benefit.

Communities such as the ones I represent are right to feel neglected because they are, despite our best efforts. There is a growth in the number of those just about managing and people using food banks. We saw that over Christmas. There are cuts to real incomes and welfare support as a result of the ideological pursuit of austerity. We used to sing that things could only get better. At the referendum, people said things could not get much worse. They wanted change and to take back control, and they still want that. They want to be listened to, they want their NHS to deliver consistently for them, they want to see their schools funded properly and they want to see investment in local jobs, and they are right to want these things.

Brexit is the magic bullet that’ll do the trick—fingers crossed! We are told that Brexit means Brexit and that nothing is agreed until everything is agreed—meaningless drivel! Like the Emperor’s new clothes, it looks wonderful until you see through it, and that is where we are now—the point at which the clothes are properly looked at and the Prime Minister’s deal properly examined. Pretty much nobody likes it. That is what my email traffic says. British Steel, the largest local private sector employer, is desperate for certainty, horrified at the prospect of no deal and urging me to vote for the Prime Minister’s deal, but there is little support for this. Although the deal would get us over the current bump in the road, it would not be long before the other bumps and new uncertainties came into view. That is the problem.

The PM has not listened to the people. In 2017, she asked for a larger majority to push through a hard Brexit and the people said, “No thank you!” Afterwards, she should have reached out to all the Opposition parties, not just the Democratic Unionist party, in the interests of national unity to find a way forward. Instead, she has dug into her bunker, behaving as though she has a huge majority even though she leads a minority Government. That is what has got us to today: a Government of headless chickens running round in ever-decreasing circles of Dante’s “Inferno”.

We need to protect the Union of the United Kingdom by preserving the Good Friday agreement. We need to be in a customs union and have access to the single market while restricting freedom of movement. We need to listen to the 62% as well as the 52% and take positive action to address regional inequalities. If we do that, the next 70 years will build on the legacy of peace, freedom and prosperity of the last 70 years through strong and positive relationships with our European neighbours and the rest of the world.

[Several hon. Members rose—]

Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 28th June 2018 Commons Chamber

[Mr Speaker]

I call Matt Rodda. Where is the fella? Not here. Oh well, Mr Dakin is here.

[Nic Dakin (Scunthorpe) (Lab)]

What initial assessment have the Government made of the impact of steel tariffs on the UK industry? What support are the Government giving UK steel to mitigate the impact until the tariffs are removed?

[Dr Fox]

The hon. Gentleman raises an important point, and I raised this with the EU Trade Commissioner last week. We are looking to see what impact there may be from any diversion and whether we need to introduce safeguards to protect UK steel producers. The earliest time that is likely to happen will be early to mid-July, and we are already seeing some movements that may justify it. As soon as we have the evidence to be able to justify such a decision, we will take it.

US Steel and Aluminium Tariffs

Nicholas Dakin Excerpts

Monday 4th June 2018 Commons Chamber

[Dr Fox]

The hon. Lady makes a useful point that reflects the one made by my hon. Friend the Member for Horsham (Jeremy Quin) about using national security as a pretext. If that were a successful exercise, there would be nothing to stop other sectors being involved or, indeed, to stop other countries doing exactly the same thing, which is why, at the risk of repeating myself, we must try to have common sense prevail before there is any escalation, which could be very damaging to economies on both sides of the Atlantic.

[Nic Dakin (Scunthorpe) (Lab)]

Everyone knows that you have to stand up to bullies, not roll over and have your tummy tickled. I am really pleased that the Secretary of State is making it clear that he will support the leadership of the European Union on this matter so that robust and proper action is taken, as it was in 2002, which led to the US backing down. Will he talk to his colleagues across Government so that we can use this moment to introduce a steel sector deal to show confidence in the steel industry in the UK?

[Dr Fox]

The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), will have heard what the hon. Gentleman said. Again, I make the point that we have set out a reasonable and proportionate response. There is no point escalating rhetoric; there is no point escalating the terms of this dispute. We should use the time available before the imposition of countermeasures to go back to the United States and say, “You still have time to think again, to stop history repeating itself or to stop economic effects that can only be detrimental in the United States and beyond.”

Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 17th May 2018 Commons Chamber

[Dr Fox]

When it comes to protection post EU, we will have our own trade remedies measures. But of course the hon. Lady and her Labour colleagues voted against our being able to establish those when the legislation came to the House.

[Nic Dakin (Scunthorpe) (Lab)]

What is the Secretary of State doing with our partners to ensure that we do not suffer from diversionary dumping of steel as a result of what the US is doing?

[Dr Fox]

We want to see a permanent exemption so that we do not get into that position in the first place, but we have made it clear that we would operate with our European partners to ensure that we took any measures necessary that were proportionate and within international trade law to ensure that the situation that the hon. Gentleman describes would not happen.

Leaving the EU: Future Trade Remedies

Nicholas Dakin Excerpts

Tuesday 17th April 2018 Westminster Hall

[Jack Brereton]

I do not think it needs to be. We should pursue opportunities globally. As I said, there are real opportunities out there in the Commonwealth—and, yes, with the United States, too—to improve our trade links and the opportunities of trade for British businesses, such as those in my Stoke-on-Trent constituency.

We need more businesses to be confident exporters. For that, they need the right skills, the right support from DIT, the right trading opportunities and trade agreements negotiated by Britain in the British national interest. We need of course to ensure that, as a nation, we make full use of digital technology and use the internet as a worldwide exports showroom and sales platform. But we also need to guard against material retardation of the establishment of new industries in the UK, either from barriers to entry due to costs or regulation here at home, or from imports that are unfairly and illegally dumped or subsidised by those who wish to nip competition in the bud.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate the hon. Gentleman on securing this important debate, and I apologise that I have to leave shortly to be on the Front Bench in the main Chamber. Does he agree that it would help to ensure free and fair trade if the calculation of dumping were stated transparently in the Trade Bill, which is due to come back on Report? That would give a lot more confidence to industries that need confidence, such as ceramics and steel.

[Jack Brereton]

As the hon. Gentleman says, there are a number of issues, and I will come on to more of them.

Looking forward to our global future, although there is necessarily some uncertainty about the final Brexit deal because negotiations are still under way, I welcome the Government’s acknowledgement that free and fair trade must operate within a rules-based system and that options must be available for countering those who break those rules. That is to say that fairness means everyone playing by the rules—or, as Nigel Lawson once said, “Rules rule: OK?” However, those rules need to be clear, fair and consistent. If they are not, we risk pent-up grudges feeding economic nationalism, full-scale protectionism and eventual trade decline. I therefore hope that the Minister will give us additional assurances that will soothe industries that look for as much clarity and transparency as possible from the Government when making their investment decisions.

The British Ceramic Confederation, which is a founding member of the Manufacturing Trade Remedies Alliance, is keen to maximise confidence in the sector that the UK’s framework for post-Brexit trade will be effective and open to the full range of remedies allowed under WTO agreements. Those agreements allow for three types of trade remedy: anti-dumping measures, countervailing duties and safeguards. I will focus on anti-dumping measures, because there are genuine concerns among BCC members and others that measures that the UK has previously actively supported may fall short of the proposed new economic interest test. Part of the concern is that it is not clear how that test would apply in practice, because, of course, it seems to be billed as something different from a public interest test; an innovation that goes beyond the public interest test in its calculations. Clarity from the Minister on that would be welcome.

[Nic Dakin]

The hon. Gentleman is being generous. On the point he is making, if we look at the systems of New Zealand, Canada and the US, we do not see additional tests. It would therefore seem perverse for the UK to introduce additional tests, which are not necessary in the best cases we see around the world.

[Jack Brereton]

The hon. Gentleman is right. Some of what has been proposed has not been experienced around the world; we will be testing something out that has not been tried. I will move on now, and I will not take many more interventions as time is short, but it would be particularly helpful to know whether the intention is that trade remedies would be applied before any test or only after the test. As the Manufacturing Trade Remedies Alliance has argued, duties could always be refunded retroactively if any test found that trade remedy measures were not in the public interest.

Current trade rules have served the ceramics sector well against outrageous dumping by countries that have far less regard for the spirit of free trade and the necessary rules underpinning free market economies. For example, just 10 years ago, we saw huge volumes of ceramic tiles, giftware and tableware all made in China being dumped at a price that could not have covered the real cost of production. The investigations into those price anomalies found that they were such clear cut cases of dumping that the EU still imposes remedial duties today.

There are good reasons for maintaining those duties after Brexit. Not least is the fact that since the measures against tile dumping were introduced in 2011, employee numbers in the UK have increased by about 40%. Not every new job will have been created as a result of the anti-dumping duties—the economy recovered substantially and employment grew significantly across many sectors in that time—but it is clear from the evidence that anti-dumping measures underpin the ceramics sector’s ability to take advantage of the Government’s wider pro-enterprise policy agenda, giving breathing space for the industry to invest in becoming more resilient.

Indeed, as recently as 2016, an expiry review of anti-dumping measures in the ceramic tiles market found overcapacity in the Chinese industry equal to six times total EU annual consumption. The anti-dumping duties on Chinese tiles were therefore extended for a further five years. I hope that the Minister will confirm that those measures will apply at least for the rest of those five years once we have left the European Union. Similarly, in the giftware and tableware sector, UK employee numbers have increased by 20% since anti-dumping measures were introduced. Our ceramics manufacturers are currently preparing a complaint for an expiry review. If the complaint is successful, the investigation will take place while we are still in the process of leaving the EU, so for clarity the industry would surely welcome any indication the Minister can give that the continuation of any EU anti-dumping measures that might result from any expiry review will also apply in the UK market.

In addition, the ceramics industry is keen for Ministers to reflect on how difficult it can be to counter dumping if the definition of dumping is too narrow. Unscrupulous actors who seek to dump their goods will be unscrupulous in exploiting any loopholes they see. For example, it may not be appropriate to rely on the price in the home market from which imports come when those imports originate from heavily distorted economies—that is to say from countries where market situations are distorted by the interventions of the state, which is usually an undemocratic state working outside the norms of transparency and governance that we take for granted.

On dumping calculations, I am therefore eager to learn what view the Government take on ensuring that the Taxation (Cross-border Trade) Bill makes it clear that there are circumstances in which the difficulty in determining normal value in the presence of state distortions means that provisions should be made for when it is not appropriate to use the domestic price. By clarifying how the Trade Remedies Authority would, in anti-dumping investigations, calculate the level of dumping for cases in which the domestic price of the alleged dumped imports cannot be used, there will be legal certainty and greater confidence in the ceramics industry.

I also wish to raise the Government’s proposed use of a minimum market share in relation to the acceptance of dumping—or indeed subsidy—complaints. I would be grateful for clarity on their intentions. Will a de minimis level be set and, if so, at what level? What rules for flexibility might there be in that level? For example, will there be flexibility if an industry has evidence that it is being materially retarded from achieving the minimum market share by dumping or subsidies, if previous injury from dumping has reduced an industry to the de minimis level, or if an industry plays a peculiarly important role in a particular area of the UK, though not across the UK economy as a whole?

As we leave the EU, almost everyone now agrees that the Brexit process should not be some sort of sharp shock; it should be a growing opportunity, with a smooth transition period in which to adjust to the new reality of global Britain. Will that transition include the retention of existing trade remedies for the ceramics sector, followed to their full course and renewed if necessary? Such an assurance from the Minister would be extremely welcome.

While the Department for International Trade will rightly be proffering carrots in seeking free trade deals for global Britain, in terms of opening access to the UK market, it should also let it be known that we will keep some big sticks in our trade policy array should tit-for-tat measures prove necessary. Brexit is a great opportunity for us to be a leading independent force in the WTO, and the champion of free and fair trade across the world. It will take time to convince all other members of our case, and in that time we will have to be ready to combat egregious distortions. However, the direction of travel should be clear: freer markets, freer trade, and an empowered and liberated entrepreneurial British spirit, with more of our world-class manufactured goods reaching global markets, all of it underpinned by a sense of enforceable fair play. That is the Brexit that my constituents voted for, and that is the direction in which I hope the Minister will be pleased to travel.

Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 29th March 2018 Commons Chamber

[Dr Fox]

The hon. Gentleman is right: there will be a knock-on price effect and there is also likely to be a displacement effect in the global steel market, for which we may have to look at imposing safeguard measures; along with the European Union, we would do so. He is also right that there would be a knock-on price effect in the United States, too. It does not make any sense to protect 140,000 steel jobs in the United States and see prices rise for the 6.5 million US workers who are dependent on steel.

[Nic Dakin (Scunthorpe) (Lab)]

I thank the Secretary of State for meeting steel MPs this week. Will he say a bit more about the safeguards that he will try to ensure are in place against diversionary dumping as a result of this action by the United States?

[Dr Fox]

I am grateful to the hon. Gentleman for his comments. As he knows, our aim, along with our European Union partners, is for the tariffs not to be applied in the first place. We argue that section 232 is not an appropriate means of doing so. If we want to deal with the over- production of steel—particularly Chinese overproduction —the best way to do so is through the G7 steel forum, where there are 28 outstanding recommendations to which we are still awaiting a Chinese response.

United States Tariffs: Steel and Aluminium

Nicholas Dakin Excerpts

Report stage: House of Commons
Monday 12th March 2018 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Unfortunately points of order come at the end of the statement.

[Nic Dakin (Scunthorpe) (Lab)]

In 2002, when the US Administration last did this, US economists estimated that it cost the US economy 200,000 jobs, and the Administration had to back down when the EU took them to the WTO. Will the Secretary of State reassure this House, and steelworkers in my constituency and elsewhere, that the UK will argue for the strongest possible safeguard measures within the EU’s response?