US Tariffs: Scotch Whisky

John Bercow Excerpts

Monday 7th October 2019 Commons Chamber

[Mr Speaker]

We come now to the next urgent question. At the risk of embarrassing him, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) tells me that this is the first time he has asked a question from the Back Benches in 14 years, but I am sure it will not show.

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[The Minister of State, Department for International Trade (Conor Burns)]

rose—

[Mr Speaker]

Oh, the Minister is making a second performance at the Dispatch Box. Excellent.

[Conor Burns]

Thank you, Mr Speaker. I am grateful to my right hon. Friend for his question.

The United Kingdom continues to be a champion of the international rules-based order of which the World Trade Organisation is the cornerstone. However, the United Kingdom is clear that resorting to tariffs is in no one’s interests. Low tariffs and free trade underpin prosperity and jobs in the UK and globally, which is why we are pursuing an ambitious free trade agenda, lowering tariffs and quotas where possible and working on an ambitious package of bilateral free trade agreements.

The Government are disappointed by the United States Administration’s announcement that they intend to impose tariffs on the UK and our European partners following the most recent ruling. My right hon. Friend asks what communications there have been between the Government and the United States. We have continued to raise this issue at the highest levels; my right hon. Friend the Secretary of State has spoken to US Trade Representative Lighthizer, Commerce Secretary Ross and Vice-President Pence; my right hon. Friend the Chancellor has raised the issue of Airbus tariffs with the US Secretary of the Treasury; and the issue was raised by my right hon. Friend the Member for Maidenhead (Mrs May) with President Trump during his state visit to the United Kingdom in June this year.

The dispute has a long history; indeed, it goes back to 2004. I will not detain the House by setting out that history, but it is long and complex and has led to the WTO judgment. Although the UK, France, Germany and Spain took steps to bring their support into compliance with the WTO, the WTO ruled last year that further steps were required to bring that support fully into compliance. Following that ruling, the UK and other Airbus nations have now taken steps to bring their support fully into line. The Airbus nations are seeking confirmation from the WTO in the ongoing proceedings that those steps are sufficient to achieve compliance. A ruling is expected in the coming months.

However, WTO procedure allows for the US to seek authorisation to retaliate against the EU in parallel to the ongoing proceedings and before the WTO has confirmed whether the Airbus nations have now complied with their WTO obligations. On 2 October, the WTO announced that the US can be authorised to impose up to approximately $7.5 billion in tariffs annually. Following that, the US published a list of tariffs on the EU, targeting products produced by the Airbus nations and the wider EU. These measures are not in the interests of the UK, the European Union or the United States. Tariffs will only inflict damage on businesses and citizens on both sides of the Atlantic and harm global trade and the broader aviation industry at a sensitive time.

We are working closely with the US, the EU and our European partners to support a negotiated settlement to the Airbus dispute, along with the separate Boeing disputes. I reassure the House that we will continue to press the issue at the highest levels and urge the United States to withhold tariffs until the WTO has confirmed that we have complied in the compliance proceedings—something that we expect to happen within the next couple of months.

Single malt Scotch whisky has been tariff free with the United States for more than 25 years now, and whisky exports to the US are worth more than £1 billion annually. Single malt producers are often small and medium-sized companies, and the tariffs will hit those who can afford them least. We will continue to talk to the US at the highest levels to press for a settlement and for the US to hold off applying the tariffs until we have had time for a ruling.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

As you know, Mr Speaker, not all whisky is Scotch. I happen to have with me a bottle of Filey Bay, Yorkshire’s first whisky. It was released on Saturday after the requisite three years and a day. It is from the Spirit of Yorkshire distillery in Hunmanby in my constituency. Will the Minister confirm that he will provide support for whisky producers wherever they are, whether from the great nation of Scotland or God’s own county of Yorkshire?

[Mr Speaker]

The hon. Gentleman loses no opportunity. Why will it not be a surprise to right hon. and hon. Members to be reminded that his successful business career was as an estate agent? [Laughter.]

[Conor Burns]

I am very grateful to my hon. Friend. Sparking a debate on what constitutes whisky is something I would not wish to do on my first outing at the Dispatch Box, Mr Speaker. I see some friends from Northern Ireland, although I am sure it has never touched the lips of the hon. Member for North Antrim (Ian Paisley). Coming from Northern Ireland as I do, I know that some very fine whiskey is made there. I make this undertaking to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake): the Government will protect and promote whisky that is produced in all parts of the United Kingdom.

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[Conor Burns]

I am incredibly grateful to my right hon. Friend. Indeed, having served as his Parliamentary Private Secretary from August 2010 for, I think, a couple of years, I now model myself on him, having watched his deft performances at the Dispatch Box from a position behind him.

My right hon. Friend is absolutely right about the growing interest in Scotch whisky around the world. As I have said, the Taiwanese market has been discussed several times in Vietnam in the last few days. I wonder whether my right hon. Friend might be on to something. Perhaps we should tie it to the GREAT campaign, and perhaps we should invite our new prime ministerial trade envoys in the beefed-up programme to make this a priority.

Scotch whisky is genuinely one of those international iconic brands. It is up there with Rolls-Royce, and all the other brands that are instinctively recognised as British. It is as well known as Buckingham Palace or, indeed, this very building, and it is integral to our promotion of ourselves as global Britain.

[Mr Speaker]

The right hon. Member for East Devon (Sir Hugo Swire) justifiably feels great pride in his protégé—the person whom, in fact, I might describe as his mentee. The mentoring skills have clearly had their impact.

[Sir Hugo Swire]

A new generation, Mr Speaker.

[Mr Speaker]

Indeed.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Although Stoke-on-Trent does not make Scotch whisky, Wade Ceramics makes the ceramic bottles in which whisky is sold all over the world. In a similar vein to the hon. Member for Ochil and South Perthshire (Luke Graham), may I impress on the Minister that the supply chain for this product may be deeply impacted, and I ask what conversations he or the Government are having with the representatives of that supply chain to pass on in the negotiations, which I know they will welcome protecting their interests?

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[Conor Burns]

I was going to say to the hon. Gentleman —[Interruption.] If he wants to chunter, I can sit down—[Interruption.] Asking questions and then listening to the answer is how it sort of works, but if the hon. Gentleman wants to carry on chuntering rather than listening I can sit down and he can explain to his constituents why he did not get an answer.

[Mr Speaker]

That was rather unseemly. It has to be said that the Minister is being utterly courteous in his responses and it would behove Members to dignify the occasion with attentiveness to his answers.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

There are currently more Scottish whisky industry jobs based in my constituency than in any other, and the very nature of these jobs leaves my constituency and those workers extremely vulnerable to a whisky downturn. Will the Minister reassure them that no stone will be left unturned by this Government, including that of an urgent intervention from the Prime Minister to the President of the United States, in ensuring that this deeply damaging tariff is not applied?

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[Conor Burns]

In the interests of brevity, no, I do not agree with the hon. Gentleman.

[Mr Speaker]

I think that the House is grateful to the Minister both for dealing with this urgent question and the exchanges on it the last 77 minutes, and for his efforts on the previous such question. He mentioned to the House that he was making his debut at the Dispatch Box. I cannot readily call to mind an example of a Minister who on making a debut at the Box has had to answer successive urgent questions, and the hon. Gentleman has done so with considerable commitment and élan. We are grateful to him.