US Steel and Aluminium Tariffs

Angus Brendan MacNeil Excerpts

Monday 4th June 2018 Commons Chamber

[Dr Fox]

My hon. Friend, who knows a great deal about this subject from his time as a Defence Minister, is absolutely right. We will be looking at the displacement issue very closely to see whether safeguards are required for aluminium as well as steel. He is right about Bridgnorth in his constituency, which exported £21 million of products to the US in 2017. The irony is that the only potential competitor in that particular market is Alcoa in Warrick, Indiana, which has shown little, if any, interest in it. This situation can only lead to damage to US customers at the other end.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

As Chair of the International Trade Committee, may I take this opportunity to thank the Secretary of State for his courteous phone call to me at the end of last week outlining the situation that he found himself him? These tariffs stem from the very weird belief of the US President that if the US has a deficit with anyone, it is a result of unfair trading. Given that just about any two sets of nations find themselves in surplus or deficit with each other at times, there would be global trade chaos if the rest of the world were to follow his example of what the Secretary of State calls unjustified decision making. Meanwhile, how confident is the Secretary of State that the UK can legally take safeguarding trade defence measures if it finds itself out of the EU in March 2019, and that a trade remedies authority will be in place? My Committee has concerns about that, as I am sure he knows.

[Dr Fox]

I am very grateful to the hon. Gentleman for his comments. He is right that we have to have the TRA up and running. As he knows, we have now advertised for the most senior appointments and agreed its setting in Reading.

On the wider economic issue, the hon. Gentleman is absolutely correct. It is impossible, in an open and free trading system, that all economies will be in balance with one another. Surpluses and deficits are part of the allocation of resources that happens inside a free market. Were we all to aim for a trade policy where everybody was in balance, it would not be a free trading system. Apart from anything else, consumers would soon feel the detrimental effects of such a system.

--- Later in debate ---

[Dr Fox]

There are two interesting points to make on that tirade of nonsense. First, we do not have the legal authority in the United Kingdom on our own, because the European Union is responsible for this issue on our behalf. When we leave the European Union we will have greater freedom, but I say to the hon. Gentleman in all seriousness that escalation is not what we require. We need a proportionate response, made calmly, giving the United States time to reflect and change its mind. This is about getting the right result, not the right rhetoric.

[Angus Brendan MacNeil]

Put him in the bunker!

[Mr Speaker]

Order. The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) is chuntering from a sedentary position about putting something in a bunker. I am not going to comment on that. It is not for me to pronounce on the merits or demerits of the matter, but I simply say, with due affection to the hon. Member for Bassetlaw (John Mann), that it is always interesting to hear from him on the golfing situation, and we have done so today.