Trade Negotiations

Alex Ballinger Excerpts

Tuesday 6th May 2025 Commons Chamber

[Mr Alexander]

The points-based immigration system is not affected. The UK has not given away visas or created new routes as part of this deal. It is existing business mobility routes that have been expanded for highly skilled and experienced professionals to cover additional sectors.

[Alex Ballinger (Halesowen) (Lab)]

I congratulate the Minister on securing this vital trade deal. The automotive sector in the west midlands has been worried about increasing tariffs in the US, so a trade deal with India—a country where UK brands are highly respected—is extremely welcome. Can the Minister tell my constituents in Halesowen who work in the automotive sector how this deal will benefit them?

[Mr Alexander]

I hope I can give my hon. Friend exactly that assurance, and I am conscious that there was an additional point I should have made earlier in relation to steel. As part of this agreement, we have included a bilateral safeguard mechanism, which allows us to temporarily suspend or increase tariffs if an industry is suffering or there is a threat of serious injury as a result of reduced duties.

To my hon. Friend’s question, automotive companies will now benefit from selling to India with tariffs under a quota reduced from over 100% to 10%. We have agreed quotas to limit the volume of duty-free imports permitted to enter our markets. That will open opportunities for the sector, giving them a competitive edge in the Indian market and increased access to India’s rapidly growing middle class. As the sector transitions to electric vehicles, so will the market access we have secured as part of this deal. It will give British businesses the opportunity to scale up their exports as production ramps up. Both the UK and India have growing EV markets and production, so we want to protect these industries while ensure that consumers have choice.