Protecting Britain’s Steel Industry
Debate between Ranil Jayawardena and Emily Thornberry(2 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Jayawardena
My hon. Friend makes an excellent point about the lack of attention to detail on the Labour Benches. The approach we have taken forward is in line not only with WTO rules but with our domestic legislation.
I will tell you the truth, Madam Deputy Speaker: the TRA has recommended to the Secretary of State that nine product categories of the existing safeguard measure be removed. It judged that seven of them did not meet the requirement to show a significant increase in imports. Another failed to show any risk of serious injury or injury recurring, and the other did not pass the economic interest test, with industry asking for it to be removed, as the shadow Secretary of State discovered this morning, courtesy of the “Today” programme on BBC Radio 4. The Labour party seems intent on throwing the baby out with the bath water. The TRA recommended retaining the safeguard on 10 other product categories, and that would be exposed to legal challenge if we were arbitrarily to take the sort of decision that the Labour party advocates. Does the Labour party want to leave the WTO and adopt an isolationist approach in the world? I don’t, and I won’t.
Mr Jayawardena
No.
In truth there is a choice between working hard, getting into the detail and defending British interests, which we are doing and will continue to do, and playing politics, as Labour Members and those on the left of our politics seem intent on doing.
It is worth remembering that the TRA was set up in 2018 under the last Government and places strict limits on the powers of the Secretary of State. Of course, the Labour party knows this, because Labour tried to curtail the Secretary of State’s powers even further. The hon. Member for Bootle (Peter Dowd), as shadow Chief Secretary to the Treasury, spoke against
“the public interest...being used as a mechanism to widen the powers of the Secretary of State.”––[Official Report, Taxation (Cross-border Trade) Public Bill Committee, 25 January 2018; c. 103.]
During the passage of the Taxation (Cross-border Trade) Act 2018, Labour stood against the Secretary of State being able to reject a recommendation of the TRA, but today Labour is asking us to legislate to do just that: to reject the TRA’s recommendation.
Under the legislation from the last Parliament—that dead Parliament—the Secretary of State does not have the power to change the TRA’s recommendation—
Mr Jayawardena
No, the right hon. Lady has had her say.
The Secretary of State does not have the power under the law to change the TRA’s recommendation on the safeguard measure to retain measures against its advice. She possesses only a downward ratchet, which means either accepting the TRA’s recommendation in its entirety or rejecting it and seeing every part of the safeguard measure expire on 30 June. I can assure the House that the Secretary of State takes these responsibilities very seriously and will reach a decision on the recommendation and publish it before the measure is due to expire.
Emily Thornberry
I am very grateful to the hon. Gentleman. Is he in favour of these recommendations? Does he think they are a good idea or not?
Mr Jayawardena
I will come to the Secretary of State’s position and the process that will follow in a moment, but I must be clear—
Mr Jayawardena
The right hon. Lady did not answer the earlier question from my hon. Friend the Member for Redcar (Jacob Young) either.
Extending the deadline for a decision is not an option, and extension of the safeguard on product categories would expose Britain to challenge from other member countries of the WTO for non-compliance with the agreement on safeguards, which, as I warned a moment ago, may lead to a WTO decision requiring the United Kingdom to revoke the measure in its entirety.
I thought the Labour party understood these principles. After all, the hon. Member for Brent North (Barry Gardiner), the then shadow Trade Minister, criticised President Trump for imposing
“protectionist tariffs that the rest of the world believes are illegal under WTO rules.”—[Official Report, 4 June 2018; Vol. 642, c. 39.]
Maybe that was Labour’s policy then and this is its policy now. Perhaps the Opposition were against the policies of President Trump then and support the policies of President Trump today. Either way, they do not have the British national interest at heart. The Labour party is showing once again that it is a protest party, lacking in competence and understanding of the issues. Labour may have changed its leader, but it poses a clear risk to our country.
Turning to our friends in Europe and America, we continue to have discussions with the steel sector to understand its concerns about the outcome of the EU’s steel safeguard review. We recognise the harm caused by the unfair and unjustified US tariffs levied on our steel industry under section 232. It is fake news to suggest that our steel industry threatens the viability of American steel producers or that it contributes to global excess capacity in the market. Trade barriers such as these are what bring the rules-based international trading system to its knees, yet that is the sort of approach that the Labour party is advocating tonight. We remain disappointed at the continued imposition of such tariffs and are pressing our American counterparts for an urgent and permanent resolution. After working to date to de-escalate the Boeing-Airbus dispute by agreeing to suspend retaliatory tariffs for five years, we now want to shift their attention to the unjustified section 232 tariffs and work with them to agree a fair, permanent resolution for British industry.
We will continue to deliver for the British people, and that is why we are reviewing the Secretary of State’s powers already, exploring and consulting on how we might legitimately be able to strengthen them. That is why we are working closely with the Department for Business, Energy and Industrial Strategy to ensure that trade remedies measures are up to date in the current context, not least following the pandemic. In the event of there being increased imports of unfairly subsidised products into the United Kingdom, we will not hesitate to take action to defend the industry using anti-dumping and anti-subsidy tariffs. That shows our resolve to improve our domestic toolkit and to use the tools at our disposal to tackle market-distorting practices, but rushing through changes to legislation, posing a risk to industry in the process, as Labour would have us do, is not the answer.
Mr Jayawardena
No. We should all greatly value Britain’s reputation as a champion of global free and fair trade. We should not want to take actions that risk being found to be non-compliant at the WTO. The Secretary of State takes her responsibilities very seriously in considering the recommendation from the TRA, but the truth is that the best way forward, the right way forward, for our steel producers lies in free and fair trade. Together, we can make sure that this vital British industry enjoys a sustainable long-term future. The British people should be in no doubt: this people’s Government are backing our steel manufacturers; this people’s Government are backing the tens of thousands of jobs in the industry; and this people’s Government will continue to do so.