Trade Negotiations

Douglas Alexander Excerpts

Thursday 8th May 2025 Commons Chamber

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

Thank you, Mr Speaker. Let me make the statement, as requested.

Within the last couple of hours, a deal has been announced by the Prime Minister and President Trump respectively. I therefore welcome the opportunity to update the House on the terms of the agreement that has just been reached. Back in February, I stood before the House and said:

“What British industry needs and deserves is not a knee-jerk reaction but a cool and clear-headed sense of the UK’s national interest, based on a full assessment of all the implications of US actions.”—[Official Report, 11 February 2025; Vol. 762, c. 182.]

It is this approach, which the Government have taken, that has brought us to the front of the queue today. Indeed, no other country has been able to secure an exemption from the tariffs imposed by the United States until today.

In March, the United States Government announced tariffs on steel, aluminium and autos. This was followed by an announcement of a global tariff, with the UK on the lowest rate of 10%. Throughout this period, the UK Government have been engaged in an intensive and continued dialogue with the Government of the United States to advance the UK’s national interest in this challenging and changing global trading environment. The deal we have agreed is the first step in delivering on the commitment made by my right hon. and learned Friend the Prime Minister and President Trump in February to reach an economic deal in our respective national interests.

First and foremost, the deal will protect UK jobs, while laying the groundwork for increased transatlantic trade and investment. As the Prime Minister has commented within the last hour,

“This is jobs saved…not job done.”

To that end, I can inform the House that the deal we have secured secures reductions to the 25% tariffs imposed by the United States on the UK car industry. UK exports to the US will face a lower tariff of 10% for a quota of 100,000 vehicles. That is positive news for iconic British luxury brands such as Aston Martin, Bentley and McLaren, but it is also good news for our country’s largest vehicle manufacturer, Jaguar Land Rover, which employs 34,000 employees directly in the UK, with 135,000 further jobs in its wider supply chain. As the Society of Motor Manufacturers and Traders pointed out, the US is Britain’s second largest car export market. A deal like this was desperately needed to support jobs and economic growth on both sides of the Atlantic.

Furthermore, the deal secures the removal of the new tariffs the US imposed on steel and aluminium in March, through duty-free quotas. It reinforces our commitment to the steel industry, following our swift action last month to protect British Steel and its 2,500 employees.

Turning next to agriculture, for the first time ever, the deal will open up exclusive access for UK beef farmers to the US market. Currently only a few other countries, such as Australia, enjoy such access. This is a major opportunity for British farmers to increase their exports to the world’s largest consumer market, helping them to grow their businesses. Let me be clear that the import of hormone-treated beef or chlorinated chicken will remain illegal. The deal we have signed today will protect British farmers and uphold our high animal welfare and environmental standards. Any agricultural imports coming into the United Kingdom will have to meet our high SPS—sanitary and phytosanitary—standards.

On economic security, the deal will ensure co-operation on non-market policies from third countries, investment security and export controls. With the United States Government, we will continue to advance the UK’s national interest in key sectors where discussions continue, such as pharmaceuticals, semiconductors, critical minerals, copper, lumber and film production. We will seek the best possible deal and outcome for these vital parts of our economy, and those working on our critical infrastructure. We have also committed to further negotiations on tariff reductions to enhance the UK-US trading relationship. Without this Government’s swift action, the economic impact of US tariffs would, candidly, have been extremely severe.

Following agreement on the outline of the deal today, there will now be a process of formal negotiations with the US on a binding legal framework. The negotiations aim to deliver an ambitious set of outcomes in areas such as digital trade, tackling non-tariff barriers, agreeing mutual recognition agreements for industrial goods and an agreement on domestic services regulation, collaborating on economic security, and upholding standards in areas such as intellectual property and labour practices.

I can, of course, confirm to the House that hon. Members will have the chance to scrutinise the deal we agree with the United States Government, as well as legislation implementing the deal. To reiterate what the Prime Minister and the Secretary of State for Business and Trade have told the House, we are not seeking to change existing statutory scrutiny processes. It is vital that Parliament has the opportunity to make its voice heard on this important set of issues.

I am pleased to confirm that the Secretary of State yesterday briefed the First Ministers of Scotland, Wales and Northern Ireland on progress in the negotiations. We will continue to work closely with the devolved Governments throughout the negotiations that will follow today’s announcement.

As a Government, we are grateful to businesses across the United Kingdom for their extensive and continued engagement in recent weeks, and look forward to continuing that engagement through the remaining negotiations.

I would also like to place on record the Government’s gratitude for the work of officials here in London and in Washington for their efforts in securing the first stage of this agreement today.

It will have escaped nobody’s attention in this House that this agreement with the United States has been reached on the 80th anniversary of Victory in Europe Day. That victory was secured not simply by the heroism and courage of the British armed forces, but by strong transatlantic alliances that have served us well over the eight subsequent decades. In the coming years, the Government of the United Kingdom will continue to work to secure international agreements that uphold our national interests.

For all those reasons, I commend the statement to the House.

[Mr Speaker]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

Thank you for ensuring that the House had the opportunity to hear this statement today, Mr Speaker.

Free trade betters us all. It has lifted billions from poverty and has made us the country we are today, and the country that had the ability to join the fight for Europe’s freedom 80 years ago. Unfortunately, this is not the historic free trade deal we were promised. Any reduction in tariffs is welcome, but British businesses are still facing higher tariffs now than they did in February. This is not the deal we were promised, and the Government still have much work to do.

Let us be crystal clear: it is our freedom to make our own trade policy that made even today’s deal possible. I hope the Government are now converted to our cause, and regret the 48 times they tried to take us back into the European Union. As the Government limber up for their surrender summit later this month, I ask the Minister to rule out today—once and for all—any form of dynamic alignment.

We are the only party whose position on trade with the United States has been consistent. When the Conservatives published the opportunities for a deal in 2020, the now Prime Minister said he would never countenance an agreement, the now Education Secretary called it foolish, and the now Energy Secretary said it was a spectre hanging over us.

The Conservatives do welcome the news of a reduction in selected tariffs on things like automotive exports and steel today. Any reduction is better than no reduction; jobs and investments were at risk, and all mitigation is to be welcomed. However, if I have understood the Minister correctly, we are still not back to the position as it was at the beginning of February. Perhaps he can clarify that British goods will still be more expensive in the US than they were before—for all the talk of the special relationship, that puts us in the same category as countries like Burundi and Bhutan.

More than what is in this deal today is what is not. From the little the Government have shared, it is clear that it does not go anywhere near far enough. It is a Diet Coke deal—not the real thing. It is not the comprehensive free trade agreement that a true plan for growth requires. What about the film and television industry, which was being threatened earlier this week with a 100% tariff? Can the Minister assure us now that there will be no such imposition?

What is the price of this deal? Will the Minister set out clearly to the House the trade-offs that have been made? I note with concern that two days on, we have still not had sight of the detail of the UK-India trade deal. Will the Minister confirm when we can expect to see the full detail of both deals? How does this deal defend our beef, lamb, pork and poultry farmers, with not just words, but actions? Does it protect the special status of Northern Ireland, and does it cover the British overseas territories?

In the meantime, while businesses continue to suffer and struggle with elevated US tariffs and as they face quotas and uncertainty, will the Minister finally take steps with his colleagues to ease the burden his Government chose to impose on them? Will he announce a pause of the devastating jobs tax until a full trade agreement can be concluded and stop the surge in business rates so many businesses are facing, and will he finally shelve the unemployment Bill that is already seeing British businesses cutting jobs and choking under 300 pages of incoming red tape? Lastly, will he ask the Prime Minister to sack his Energy Secretary and finally produce a real policy to cut energy prices to globally competitive levels?

If the Government are serious about helping businesses, now is the time. What we see is that once again, when Labour negotiates, Britain loses.

[Mr Alexander]

Where to begin, Mr Speaker? As I sought to reflect in my statement, and as the Prime Minister remarked only a few minutes ago,

“This is jobs saved…not job done.”

It is significant that two former Conservative Prime Ministers —the former Members for Henley and for Maidenhead, as I recollect—sought and failed to deliver a US trade deal, in the same way that the former Government failed to deliver a deal with India. Important though it is to hear the views of the Opposition about trade deals that were not done, I think it is also important to hear from the Government about trade deals that have actually been done.

I am grateful, none the less, that the shadow Secretary of State found it in himself to welcome the tariff reductions that have been achieved. I think there will be relief at JLR in particular this evening that the calm, cool-headed approach taken by the Prime Minister and the negotiators has yielded a significant reduction of tariffs to a critical supply chain and a critical set of British exporters.

On Brexit, I respectfully say that this House has debated Brexit innumerable times over the years since 2016. I simply observe that we as a Government are more interested in new markets than in old arguments, and that there have been plenty of opportunities to rehearse those old arguments. I can also assure the House that, as we look ahead to the first EU-UK summit on 19 May, having delivered deals with India and the United States, we are now looking to reset that relationship with our friends, neighbours and partners in the EU, not least because three of our five largest trading partners are actually members of the European Union.

On the specific points about the film industry, we continue to negotiate on the UK’s behalf—[Interruption.] The shadow Secretary of State, who is chuntering from a sedentary position, seems to suggest that we can unilaterally declare the policy of the United States. Negotiations involve two parties. That is a lesson that the Conservatives could have learned when they failed to secure a US trade deal in the past. It is by listening and working together with our partners in the United States that we have been able to make progress today. As the Prime Minister said:

“This is jobs saved…not job done.”

There is further work to be done, and we fully intend to take that work forward.

On agriculture, I think it is important to say that the red line that we maintain consistently in relation to SPS measures has been protected. I am grateful to have the Minister for Food Security and Rural Affairs on the Front Bench with me. We have maintained those critical animal welfare standards. All of the speculation in relation to chlorinated chicken or hormone-injected beef has turned out to be unfounded.

It is important to recognise what was agreed today. Let me be clear to the House: this agreement will provide the United States with an initial tariff rate quota on beef of 10,000 tonnes, increasing by 1,000 tonnes per year to a cap of 13,000 tonnes. Let me put that in context for the House and for those on the Conservative Front Bench. The previous Government agreed under the UK-Australia FTA to a beef tariff rate quota of 35,000 tonnes per year, which incrementally increases to—wait for it—110,000 tonnes per year, and ultimately becomes unlimited, subject to the safeguard regime. A sense of balance, proportion and understanding is required when discussing not only the safeguards that have been maintained and protected by the British Government, but the deal that has been struck in relation to beef. We need to keep the market access granted to the United States in the context of the wider economic benefits that this deal has secured for the United Kingdom.

On the rather diminishing political points that the shadow Secretary of State sought to make in relation to domestic legislation, I can assure him that the domestic legislation and the programme of the British Government remain unchanged as a consequence of today’s landmark deal. As far as I am aware, that is also the case in relation to the membership of the Cabinet. I am very relieved to say that it is the Prime Minister who is in charge of choosing members of the Cabinet, not the Conservative party, although the shadow Secretary of State does have a distinguished record of service alongside Liz Truss in a previous Government.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

Thank you, Mr Speaker, for helping to ensure that this moment was possible. Let me add my congratulations to my right hon. Friend and to His Majesty’s ambassador in Washington, Lord Mandelson, for getting this deal done. It would appear tonight that a small, common-sense retreat on duties and agriculture have unlocked a major reprieve for tens of thousands of jobs in our car and steel industry.

Will the Minister clarify for us tonight when those tariff reductions will kick in? Will he confirm that there is nothing in this bargain that compromises our ability to strike the boldest of resets with the European Union? It would be a mistake to strengthen transatlantic relationships and then short-change cross-channel possibilities. Can the Minister confirm that he will facilitate a debate in this House, if not a vote on the treaty?

On Tuesday, I will recommend to the Select Committee that we commence a full inquiry into this treaty, so that we can report back to the House, but a vote would help us understand who stands where in standing up and protecting British jobs.

[Mr Alexander]

Let me begin by paying tribute to my right hon. Friend’s long-standing interest in Jaguar Land Rover and the wider west midlands economy and to the diligent and demanding work he does on the Business and Trade Committee, which makes a major contribution to not only trade policy but business policy here in the United Kingdom.

To clarify the point my right hon. Friend made on the auto industry, the UK exports around 100,000 cars a year to the United States, and this quota will ensure that most manufacturers now pay the preferential rate. The agreement has removed the 25% tariff that the US applied to UK cars on 2 April. The agreement has been welcomed by the UK auto industry in the last couple of hours, including by Jaguar Land Rover, which is the largest exporter to the US. We are committed to continuing to support the automotive industry, which is a point my right hon. Friend has made powerfully in recent days.

On his second point, I can assure my right hon. Friend that notwithstanding the significant progress we have made in relation to the United States—as I said, jobs saved but job not yet done—a great deal of work is continuing on the UK-EU summit that is due to take place on 19 May. He is right to recognise the importance of twin-tracking our approach, as it were, by recognising the salience and significance of the United States as the country that is comfortably our largest single trading partner while recognising the European Union as our largest trading bloc, which covers about 46% of our trade.

Turning to the economic security aspects of the deal, I pay particular tribute to the work of my right hon. Friend, as I know this issue has been of great interest to the Business and Trade Committee. I think he will take a lot of encouragement from what emerges in the agreement, specifically in relation to export controls and investment security. One might almost think that the negotiators had been reading his Substack.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

Sadly, the world has changed dramatically in the few months since Donald Trump took office in the White House. We need to reflect on the shared values we have with key countries across the world. We need to look to Canada and stand up to Trump as it has done, and we need to make sure that we build economic relationships with countries such as Canada, Australia and the countries in the European Union—all countries that share our values.

I am pleased that the Minister spoke of scrutiny, because we must ensure that there is scrutiny. We need a vote in this House on these proposals. We need to protect the NHS and ensure that we are not selling our farmers down the river. We must also ensure that there are no cuts to taxes on high-tech industries, which the US may be pushing for. Will the Minister address the matter of a vote in this House? That would be extremely helpful. Donald Trump tends to be a weathervane, and he could come back for more. I also feel for our pharmaceutical industry, so what assurances can the Minister give them?

[Mr Alexander]

I thank the hon. Gentleman for his questions. On the case he makes for seeing trade as not simply a bilateral issue but a multilateral issue, I think there is a broad consensus across the House. As well as the work we have taken forward in relation to the United States today, we continue to work with friends and partners in a range of different fora, including the comprehensive and progressive agreement for trans-Pacific partnership and the European Union.

On his specific question about scrutiny of trade within this House, I echo the confirmation that the Prime Minister gave in the Commons only a few days ago that we are not anticipating any change to the process of scrutiny for trade matters in the House.

On the two substantive political points, first, it is worth the House recognising that there is no change to the United Kingdom’s digital services tax as a consequence of the agreement reached today. Secondly, I know that there has been widespread concern not only on the Liberal Democrat Benches but right across the House about measures to tackle the evil of online harm, but I can confirm again there has been no change as a consequence of the agreement reached with the United States.

[Mr Speaker]

Order. I thank the Minister for coming forward with his statement, but the Table Office has not received a copy of it. I am wondering where it is and when we will see copies of it. Can it be handed in so we can get it printed for Members?

Let us move on to Dame Meg Hillier.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I add my congratulations to the Secretary of State and the team at the Department as well as our team of officials under Lord Mandelson in Washington. This is a major step forward in a short time. Given how long trade agreements normally take, this is an impressive step.

However, as has been mentioned, we know that President Trump has made rattling sounds about tariffs on the film industry. The creatives and technical businesses in my constituency who contribute to our film industry are obviously nervous about that. Will the Minister reassure us that he is putting his shoulder to the wheel on this issue and not resting on his laurels on the triumphs achieved so far?

[Mr Alexander]

Mr Speaker, on your point, I apologise again for the statement not being available. As was clear from my initial remarks, there was some confusion within Government as to the best way to proceed, but I hope that through my officials we will provide it to you as a matter of immediacy.

[Mr Speaker]

Order. Just so that we completely understand, the Government decided they were making a statement, so there was no possibility of anything else. The House was suspended and had to resume; we could not leave it in limbo forever. The point was that there was a statement coming. Thankfully, the Minister made a statement. Hopefully, we can get copies of the statement to everyone. I was bothered about us being in danger of sending people home, saying that there was to be no statement. That was never, ever the case. I am disappointed that Members were advised to leave the building 30 minutes ago on the claim that there was to be no statement.

[Mr Alexander]

Mr Speaker, the responsibility was ours, and for that I apologise. I hope that through my officials we will be able to furnish the House with the statement that is requested.

In relation to my hon. Friend’s question, I assure her that it is not my personal style or the departmental habit to rest on laurels. It will not have passed her notice that it has been a somewhat busy few months in relation to trade policy, not least given the historic changes in the global trading environment we are experiencing on a daily basis. Notwithstanding that turbulence and the challenges in relation to trade policy, it is a matter of quiet satisfaction that we were able to get the India deal over the line earlier this week. Through that process of quiet, engaged, diligent diplomacy and a great deal of hard work by officials, negotiators and others, we have been able to secure this agreement today. But I assure her that the work goes on.

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

In the Trumpian philosophy that is “The Art of the Deal”, you bully your opponents and then, two months later, withdraw some of the threats, and they kneel down in adoration while they are reduced to where they were before. That is where we are.

We are celebrating the end of the second world war. Before the second world war, people could walk from Lincoln to Grimsby across derelict farms. I want a real assurance from the Minister that he will protect our beef farmers, because this is the start of an attack by America on our beef farmers.

[Mr Alexander]

As so often in the past, the Government will always act in the national interest in protecting Britain’s farmers and our food security. I would rehearse the numbers that I shared. If the right hon. Member is concerned about the volume of access to the UK market, I respectfully suggest that that might be a question for him to direct to his Conservative Front Benchers. Under the UK-Australia free trade agreement, a beef tariff quota of 35,000 tonnes a year was agreed, which increased to 110,000 tonnes after 10 years. In contrast, what has been agreed with the United States today will provide it with an initial tariff quota on beef of 10,000 tonnes, rising by 1,000 tonnes a year to a cap of 13,000 tonnes.

In relation to the right hon. Member’s observations on “The Art of the Deal”—there is a great deal of commentary on that in pretty much every newspaper at the moment—my compass tends to be “The Art of War” by Sun Tzu, rather than “The Art of the Deal.” Sun Tzu, as the right hon. Member, as a learned and wise individual, will be aware, said:

“Tactics without strategy are the noise before defeat.”

I observe that in the eight years since Brexit, the previous Government did not publish a trade strategy.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Like buses, we wait ages—years—for a trade deal with a major global partner, and then two come along at once, within a week. It is a major vote of confidence for the position of Great Britain on the global stage. With a bit of déjà vu, I commend again the Minister, the Labour Government and in particular the Prime Minister for the calm and collected manner in which they have consolidated this agreement when, by the way, others failed for years. While markets are up and tariffs are significantly down because of the announcement of this agreement, will the Minister confirm how this UK-US trade deal will benefit my Slough constituents and lead to economic growth and jobs?

--- Later in debate ---

[Mr Alexander]

As a former Secretary of State for Transport, I am always nervous as to whether buses turn up or not, but I appreciate the analogy.

It has been a busy week for the Government and for the Department for Business and Trade, but it is right to recognise that, by happy coincidence, we have seen both the India and US deals agreed within a couple of days. However, those couple of days were preceded by many months of quiet work and diplomacy, and that is why my hon. Friend is entirely right to recognise the Prime Minister’s personal contribution to the agreements, with Prime Minister Modi and now with President Trump.

After the clown show that we had witnessed in recent years and the cavalcade of chaos that we saw under previous Governments, when I saw that image of the Prime Minister sitting alongside President Trump in the Oval Office a couple of months back, I felt what I judge was a widespread sentiment among the British public, which was a sense of relief that we had a serious man in what were undoubtedly serious times. The serious man—the serious Prime Minister—has engaged in serious diplomacy to get to this agreement today, and as he recognised, with the reduction in tariffs that has been secured, not least in relation to the auto industry and the supply chain that stretches to many parts of the United Kingdom, there will be significant benefits for the United Kingdom as a result.

[Sir Julian Smith (Skipton and Ripon) (Con)]

I welcome this deal. The politics and detail aside, it is worth acknowledging that the Prime Minister’s strategy towards the US—low-key diplomacy, mediation-led over the past few months—has led the United Kingdom to the front of the queue. In addition to Peter Mandelson, I would thank Varun Chandra, civil servants and others for getting us to this position. What practical support can the Minister provide in assistance for business and farmers in North Yorkshire to take advantage of this deal?

[Mr Alexander]

Let me pay tribute to the right hon. Gentleman. I noticed his tweet—I am not sure if one calls it that or X—earlier this afternoon, which reflected his question and which spoke to a wisdom, maturity and experience in recognising the British Government’s work. I genuinely appreciate the graciousness with which he made that public observation, even before doing so in the Chamber.

I echo exactly the sentiment that the right hon. Gentleman has described in relation not just to the Prime Minister, the Secretary of State for Business and Trade and Ministers, but to those individuals in the British system, both in Washington and in London, who have been working pretty much flat out to try to secure an outcome to the benefit of the United Kingdom.

On the opportunities for British farmers, the right hon. Gentleman is right to recognise that, far from some of the concerns that we have heard from Members on the Front Bench, there are significant opportunities for the UK given the reciprocal character of the agreement reached today. We will work as the Department of Business and Trade with our colleagues in the Department for Environment, Food and Rural Affairs to ensure that British farmers are fully apprised of the opportunities that the new market access potentially offers to them.

[Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

May I congratulate my right hon. Friend and his team on the second major trade deal in a matter of days? Our agricultural sector, our automotive sector and our steel sector will all be grateful. I have learned to be wary of enthusiastic posts from President Trump on the subject of trade, but this really does seem to be a win, win, win.

As my right hon. Friend said, there is more to be done and negotiations carry on. Will he confirm, as the Minister for Future Digital Economy and Online Safety did to my Select Committee, that online harms are not on the negotiating table? Can he say whether the digital services tax is on the negotiating table? Can he also say a little bit about the issues about labour practices that he mentioned in his statement?

[Mr Alexander]

I thank my hon. Friend for her focus and concern, regarding both the work on online harm and the digital services tax. As I sought to reflect earlier, those remain undisturbed and unchanged by this agreement. We have listened carefully to the concerns from different parts of the House on online harms, and we have worked hard to advance the UK’s national interest in the agreement that is reached. I am also grateful to my hon. Friend for recognising the significance of the move in tariffs in relation to steel and aluminium, which, again, represents a significant benefit to the foundations of the UK economy. In that sense, we worked hard in the course of this deal, not just for automotives and the supply chain, but for steel and aluminium.

[Ian Roome (North Devon) (LD)]

One area that is important to this country and worth billions of pounds is defence. What changes will the deal bring to the proposed defence industrial strategy for the big primes and for small and medium-sized enterprises, which this Government, and all of us, want to support?

[Mr Alexander]

Only in recent days I have been involved in discussions, notwithstanding the work we have been doing on India and the United States, in relation to the defence component of the industrial strategy. We aim to bring the industrial strategy and its defence component to the public in the coming weeks and months. A huge amount of work is happening within Government. The hon. Member is right to recognise that one of the challenges is how we can have defence procurement in the United Kingdom that does not simply reward some of our outstanding primes, but recognises that the character of modern warfare is changing, whereby we are moving from a small number of large platforms being the central feature to a large number of small platforms. We can look, for example, at drone technology in Ukraine and the transformative effect on the battlespace. We are therefore deeply mindful of the point he makes: we need to ensure, in terms of defence procurement, that we have a whole-economy effort that recognises not least the digital and technological contribution of modern warfare. Digital is a key part of the agreement we have reached today, and we will work closely with the United States to advance our shared interest.

[Gurinder Singh Josan (Smethwick) (Lab)]

Thank you for making this statement possible, Mr Speaker. I welcome this statement and congratulate the Minister, the Labour Government and all our officials in the UK and US who have worked incredibly hard on this, as he says, over several months. I said in the statement on the India free trade deal earlier this week that this is in contrast to the abject failure of the Conservatives, who did not deliver any deal at all. Yesterday, the Mayor of the West Midlands, Richard Parker, published a report prepared by Steve Rigby of the Rigby Group, which detailed a hit of £6.2 billion to the west midlands GDP from US automotive tariffs. The report also said that a deal within 45 days is absolutely essential, and that an imperfect deal is better than a delayed deal. Does the Minister agree that this deal is a total vindication of the Prime Minister’s approach to work in the spirit of co-operation with our partners in the USA and Europe to deliver a deal that would benefit the whole of the UK?

[Mr Alexander]

Let me first pay tribute to my hon. Friend for his tireless efforts in promoting the economic development of and opportunities for his constituency. I last spoke with Richard Parker only two or three weeks ago when we were together. I am fully aware—not least given his background with PwC, as I recollect—that he is deeply invested in economic development and the opportunities for the west midlands, and he has brought that commercial acumen to bear already in office. On the west midlands, perhaps the signature feature of today’s announcement will be the benefit accrued to Jaguar Land Rover, as well as to other luxury car exporters to the United States. Given the scale of Jaguar Land Rover production within the United Kingdom and the reliance on the US market, it was critical that we worked under the huge pressure of time to deliver a cut in tariffs affecting autos. In that sense, the quota agreed today and the reduction in the tariff level will be a real and meaningful benefit to JLR and its supply chain.

[Mark Pritchard (The Wrekin) (Con)]

May I congratulate the Prime Minister on this trade deal? It is an historic moment. I believe that it is in the national interest, but of course we will have to see the details, and the devil is in the detail. It appears from the statement that there are lots of details still to be worked out. I also pay tribute to Lord Mandelson, our ambassador in the United States.

The Minister mentioned managing to keep red lines around hormone-reared beef and chlorinated chicken, and of course that was mentioned by the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith). He also mentioned lamb—I do not think the Minister mentioned lamb—which is important to Shropshire farmers. What has not been mentioned is antibiotics in pigs. This nation eats a lot of pork. A lot of that is reared in Shropshire. Could the Minister assure Shropshire and British farmers that the pig industry in this country is still safe as a result of this deal?

[Mr Alexander]

I hope I can give the right hon. Gentleman the assurance that he seeks. The SPS arrangements were, as I said, an absolute red line for the United Kingdom. We were keen, both in public and in private, to reinforce the Government’s continuing focus on upholding animal welfare standards here in the United Kingdom. In relation to his broader points about the deal, I am grateful that he has brought his experience and expertise to bear in the House in his judgment that, going by even this initial setting out of the deal, it is clearly in the national interest that we are in a position to have a quota allowing a reduced rate for the export of UK cars, for example. We would otherwise have been looking at very serious consequences for major British manufacturers. I am grateful to him for his generous words. I will ensure that Lord Mandelson, as I am now obliged to call him, is made aware of the right hon. Gentleman’s generous tributes—he is never averse to receiving compliments.

[Phil Brickell (Bolton West) (Lab)]

I commend the Minister for his statement, and I wish to put on record my thanks to him, the Prime Minister and our excellent trade negotiators. The Minister has spoken a lot about tariffs so far, but might he talk about the non-tariff and non-quota trade barriers to further economic development between the United Kingdom and the United States, and about where we will go in the ongoing negotiations?

[Mr Alexander]

It has been a feature of the last few months, since the President was elected, that people have thought that trade policy and tariffs are synonymous. My hon. Friend is exactly right to recognise that a growing proportion of trade is conducted electronically. The UK is an almost 81% services-based economy. We therefore have a huge interest in non-tariffs barriers—not just barriers at the border but barriers behind the border. That is an area of focus in the agreement, and one that will require further work, as is appropriate and right. We were working under huge time pressure to address the tariff issue, for the reasons I have set out, but he is entirely right to recognise that we will take forward an ambitious agenda on non-tariff barriers.

[Chris Law (Dundee Central) (SNP)]

Although a reduction in tariffs is welcome, the past four months have shown the UK Government that President Trump is an unreliable partner, not just in trade but in defence and security, climate and the international rule of law. In contrast, closer relations with our trusted allies in the EU have never been more important. Given that Trump has previously described the EU as “a foe”, “very nasty” and “an atrocity”, will the Minister provide an unequivocal assurance that there are no conditions whatsoever attached to the deal that will constrain the UK’s relationship with the EU, which is the UK’s largest trading partner?

[Mr Alexander]

I can do no better than refer to the Prime Minister’s Mansion House speech towards the end of last year, when he said clearly that we do not want to have to choose between our friends and allies—between dealing and working constructively with the European Union and with the United States.

On the hon. Gentleman’s broader point, it is important to recognise that the United States is our deepest and strongest defence ally. For the past 80 years—we should remember the day on which we are gathering—the United Kingdom has worked hand in glove with the armed forces of the United States to keep the world safe. I saw for myself, in previous conflicts such as Afghanistan, the extraordinary heroism and courage that American service personnel brought to bear alongside British personnel, so it is right to recognise that, as well as taking forward this economic agreement, there is a strong and enduring security foundation to the relationship between the United States and the United Kingdom. All that said, of course we stand ready to work with the European Union as we look ahead to the UK-EU summit on 19 May.

The hon. Gentleman asks whether there are any conditions. The single biggest concern expressed by many commentators related to SPS, given that that was one of the key agricultural areas on which the previous Government foundered in their negotiations with the first Trump Administration. That was a red line for us in these negotiations—a red line that I am glad to say we have protected.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

I thank the Minister, the Prime Minister, Lord Mandelson and all involved in this work for getting the deal over the line. Unlike some Opposition Members, who seem intent on talking down the Government’s positive work and our country, I find the deal really positive. Does the Minister agree that this trade deal, the one with India and the fall in interest rates announced by the Bank of England are positive signs that the Government’s plan for change is working and will start to benefit people in my constituency and across the country?

[Mr Alexander]

I thank my hon. Friend for his generous roll-call of honour. It would probably do my career prospects in the Department for Business and Trade some benefit if I added the Secretary of State to his roll-call of Lord Mandelson and the Prime Minister.

Of course, the latest cut in interest rates from the Bank of England will be welcomed by hard-pressed families seeking to make their mortgage payments in communities right across the country. As I said earlier, the Prime Minister has commented on today’s US agreement that it is

“jobs saved…not job done.”

The work goes on in relation to sorting out the fiscal mess that we inherited and raising the trend rate of growth, but I hope that both the US deal today and the cut in interest rates will be welcomed in all parts of the House and the country.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

I am sure the Minister will agree that the economic landscape has changed dramatically since 26 March: we have had the trade deal with India, we have had today’s pact with the United States, the Employment Rights Bill will come into law later this year, and there is much more besides. In the interests of transparency to this House, and indeed to the country, will he request a summer forecast update from the Office for Budget Responsibility that incorporates all the latest updates and let us know what the public finance impacts will be?

[Mr Alexander]

As a mere Minister of Trade, I am not sure the Treasury would look kindly on me telling the OBR when to update its forecasts. I am a Trade Minister, not a Treasury Minister, but I have noted the hon. Lady’s observation. She is entirely right that the economic landscape has changed. It is right to recognise that many of the promises that were made in the past about us seeing major trading blocs bringing barriers down have been set aside in recent months and years, and we are seeing major trading blocs putting barriers up. That is why today’s deal is so significant.

[Deirdre Costigan (Ealing Southall) (Lab)]

I congratulate the Minister and this Labour Government on achieving not just one trade deal but two historic deals in the space of a week. I am a vegetarian, but many of my constituents like nothing better than a chicken curry on the streets of Southall Broadway. Can the Minister categorically assure the House that this deal will protect our British food standards and, in particular, that chlorinated chicken and hormone-injected beef will remain illegal in this country?

[Mr Alexander]

First, I am grateful for the catch-all congratulations to the whole Government; it is a sentiment I heartily endorse, and I will ensure it is heard by other colleagues. In relation to my hon. Friend’s substantive point, I can assure her that curries are not just a favourite in Ealing Southall; in most of our major metropolitan cities, there is nothing quite as British as a chicken tikka masala. That is a huge tribute to the 1.9 million people of Indian heritage who live in the United Kingdom and the immense contribution they have made over the decades not just to our cuisine, but to our country. She raises a really important point in relation to chlorinated chicken and hormone-injected beef. There was a lot of genuine concern before this agreement was reached today, and I can give the House the assurance she is seeking that there is nothing in this deal that compromises the safety standards of either poultry or beef. We were clear that that was a red line, and we have delivered on that red line.

[Christine Jardine (Edinburgh West) (LD)]

I thank the Minister for his statement. There has been a great deal of reassurance for the car industry and agriculture, but there has been no mention of the Scotch whisky industry or the drink and food industry in general. In Edinburgh, as in much of Scotland, that is a huge concern. Should we expect details next week, or are there assurances he can give us now?

[Mr Alexander]

The hon. Lady is entirely right to raise the importance of the Scotch whisky industry, and I say that as a Member with a constituency interest: I have the Glenkinchie distillery in my East Lothian constituency, which I am delighted to say the Chancellor of the Exchequer visited this week, in the light of the deal that was struck with India.

In relation to this deal with the United States, it is right to recognise that further work and negotiations will continue, not least in relation to some of the broader sectors that it does not cover. It is also right to recognise, in this week of all weeks, the extraordinary significance of the Indian trade deal that was struck for the Scotch Whisky Association. Members need not take my word for it; they can look at the words of the chief executive of the Scotch Whisky Association, who described in glowing terms the significance of the Indian market and the precipitate decline in the tariffs that we have secured in that deal. We have more to do, but broadly this has been recognised as a very significant and positive week not just for Scottish whisky, but for Scottish salmon and, I am delighted to say, Irn-Bru, which will also benefit from access to the Indian market.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

In the Vatican, in the last hour, the cardinals have elected a new Pope; and we wish the new Holy Father well, and give thanks for the life of Pope Francis. Of course, we send our best wishes to the Catholic community in Newcastle-under-Lyme and up and down our United Kingdom.

I welcome the Minister’s statement, and the confirmation that he has given several times to colleagues that imports of hormone-treated beef and chlorinated chicken will remain illegal under this deal. That is good news, and important for my farmers in Newcastle-under-Lyme and farmers up and down the country. Will the Minister expand a little further on what exact engagement took place with farmers and their representatives before this deal was agreed, and what support will be pledged to farmers now, because that is important to my farmers and those up and down the country?

[Mr Alexander]

I fully appreciate my hon. Friend’s observations. I was unaware on arriving in the Chamber that a successor to Pope Francis, who is greatly grieved and missed on both sides of the House, has now been announced, and of course we wish the new pontiff well in the spiritual leadership that role will require—and I say that as a proud Presbyterian and member of the Church of Scotland.

On the broader point about engagement with farmers, I also have a farming constituency, and I was on a farm in east Lothian only last Friday, hearing directly from farmers about the impact of the market challenges faced by farmers not just here but internationally. Through our colleagues in the Department for Environment, Food and Rural Affairs, there is a lot of engagement regularly with farmers. Naturally and appropriately, that Department was involved in the cross-Whitehall processes that led to the negotiators being able to reach agreement today, and I fully anticipate further opportunities for dialogue with farmers in the future.

[Robbie Moore (Keighley and Ilkley) (Con)]

We have had huge amounts of tariffs put on the UK, and then a trade deal to reduce them; there have been positive impacts on some industries, and potentially negative impacts on others. Today’s announcement of a UK-US trade deal has therefore given rise to more questions than answers. On one side, we have US officials hailing the deal as “dramatically increasing” access to the UK agricultural market, which I am sure will ring alarm bells for many. On the other side, we have the UK Government claiming that the agreement is balanced and fair. First, will the Minister categorially confirm that no reductions to UK food standards, environmental protections—which have not been mentioned yet—and animal welfare rules have been conceded in this agreement? Secondly, what is the true impact of the tariff arrangements on British farmers and growers? We have heard vague claims of reciprocal access, but have the Government conducted any assessment of the economic impact for UK farmers, their practices and their opportunities?

[Mr Alexander]

I listened carefully to the hon. Gentleman’s comments, and early on he mentioned a trade deal to reduce tariffs; that is exactly the deal we have sought to secure and have secured today. He is right to recognise that there are continuing challenges, not just for the UK but for many countries, in relation to protectionism and higher tariff rates, but today represents significant progress on the terms, as I have described. On animal welfare and food standards, I reassure him about everything I have said on sanitary and phytosanitary measures; we made that a red line and were very clear about it, and were unwilling to compromise. I also assure him that there is nothing vague about the reciprocity I described in terms of the opportunities for beef farmers.

[Ben Lake (Ceredigion Preseli) (PC)]

I am grateful to the Minister for his confirmation that this deal will not in any way undermine the nation’s SPS rules and regulations, but I am sure that he will acknowledge that there will be a degree of nervousness among British and indeed Welsh farmers, especially beef farmers, for although the tariff rate quota agreed is modest compared with that agreed under the New Zealand and Australia trade deals, it does of course come as an addition, and farmers will be worried about the cumulative impact. I think the Minister has mentioned this, but will he confirm that the 13,000 tonnes represents the maximum tariff quota for beef that has been agreed, and has any tariff quota been agreed for lamb, pork and poultry?

[Mr Alexander]

Forgive me: I was shuffling through my papers and missed the hon. Gentleman’s final point, but I am happy to write to him. He is absolutely right, I can assure him, to recognise that compared to the tariff quotas agreed under the Australia deal, negotiated by the then Prime Minister, the former Member for Henley, there is much more proportionality—a much more modest increase—anticipated under the quota in the agreement reached today. I recognise his point that there are continuing challenges for farmers in the United Kingdom, and we will continue to seek to address those.

[Helen Morgan (North Shropshire) (LD)]

I welcome the Minister’s clarification on chlorine-washed chicken and hormone-treated beef, but will there be protections in place for egg products? Hens raised in battery cages are illegal in this country, but not elsewhere in the world, so will it be illegal to import egg products from hens raised in those poor conditions elsewhere?

[Mr Alexander]

We have not compromised our animal welfare standards in any aspect of what we have agreed on behalf of the United Kingdom today.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Thank you, Mr Speaker, for dragging the Minister to the House tonight to explain the terms of the deal. After hammering farms with the family farm tax, it now looks like Labour is selling our farmers down the river, allowing cheap, low-quality imports from the United States. President Trump’s Secretary of Agriculture has said:

“This deal puts our great American Agricultural Producers FIRST!”

Is she wrong?

[Mr Alexander]

It is hardly a surprise that a member of the Trump Administration should talk about America first. I can assure the hon. Gentleman that the north star by which we have negotiated is the UK’s national interest. Today’s agreement reflects the quiet but determined diplomacy of a serious Prime Minister to deliver a deal. The hon. Gentleman’s party does not have a great track record on serious Prime Ministers, or on beef quotas. To put today’s announcement in context, the hon. Gentleman’s Government agreed to a UK-Australia FTA with a beef tariff rate quota of 35,000 tonnes per year. That might be a point that he wants to make to farmers in the Borders.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

Welsh farmers have been reaping the rewards of high beef prices over the past few years. That has been the one piece of good news in the industry. They now hear that another Government have signed another trade deal allowing even more beef imports into our country. Why have the Government decided to include beef imports in the deal, and to kick our farmers in the teeth again?

[Mr Alexander]

I simply do not recognise the aeriated contribution that the hon. Gentleman has made. He has an important and legitimate role in representing farmers in his constituency and more broadly, but I assure him that if he looks at the numbers, including the quota agreed by the previous Government, and the relatively modest shift in the tariff rate quota on beef that has been agreed today, his concerns will be allayed.

[Harriet Cross (Gordon and Buchan) (Con)]

I hope that the Minister will recognise why UK farmers might raise an eyebrow at the assurances that he has given to the House. They have been let down time and again since July through this Government’s policies on the family farm tax, the sustainable farming incentive, double cab pick-ups and fertiliser tax—the list goes on and on. Brooke Rollins, the US Secretary of Agriculture, said after the deal was announced that

“it can’t be understated…how important this deal is”

for American farmers, and that it will “exponentially increase” US beef exports to the UK. The Minister will understand why that raises concerns for our farmers. Will he assure farmers up and down the country that in any further trade negotiations with the US, their interests, livelihoods and futures will not be on the table?

[Mr Alexander]

It would be remiss of me not to start my answer to the hon. Lady with anything other than humble congratulations on her time in the London marathon. Having run it twice, I would have seen her at the starting line, but that would have been the last time I saw her. It was a minor consolation to me that my time was somewhat faster than that of the shadow Justice Secretary, the right hon. Member for Newark (Robert Jenrick). All that being said, she makes a serious point about British farmers. I assure her that the interests of British farmers, rural Britain and the wider agricultural sector is a constant feature of our thinking in Government.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Despite the reassurances from the Minister, many farmers in Glastonbury and Somerton will feel really anxious about being thrown under a bus yet again as a result of this trade deal, especially after the trade deals agreed by former Conservative Governments with Australia and New Zealand, which undermined British farmers and food standards. Can the Minister give a cast-iron guarantee that this deal with the US will not undermine British farmers? What measures will he put in place to ensure that low-quality, low-welfare products do not enter the UK?

[Mr Alexander]

I reiterate the points that I sought to make earlier. Imports of hormone-treated beef or chlorinated chicken will remain illegal. The deal we have signed today will protect British farmers and uphold our high standards of welfare and environmental standards. Any agricultural imports coming into the United Kingdom will have to meet our high and continuing SPS standards. I can put it no more clearly than that.

[Damian Hinds (East Hampshire) (Con)]

East Hampshire farmers will be relieved to hear what the Minister has said about food standards, including on hormone-treated beef and chlorinated chicken, after everything that has happened to them in the last period. Obviously we will have to see the detail, and see what else is in the agreement.

I will ask about online safety. The Minister has said already that there has been no change to the digital services tax and no rowing back on the online safety regulatory regime. Can he confirm that no commitments have been made that would curtail the freedom of this House to make further changes in this area?

[Mr Alexander]

On today of all days, I will not suggest that there should be any fetters or constraints whatsoever on this House when it comes to introducing legislation on online harm, or any other issue.

[Mr Speaker]

Can I just say that I never want to be put in this position again? I remind people that before we send Members home, we ought to think to tell them that there will not be a statement. I think that was bad. The Chair of the Select Committee complained to me, because he was told to go away. We should not be doing this. In this House, we need to work together. This House should be respected. I will stand up for the Back Benchers. Please never put me in this position again.

On behalf of this House and all the Roman Catholics across the United Kingdom, particularly in Chorley and Lancashire, I wish the new pope well.

Adjournment

Resolved, That this House do now adjourn.—(Keir Mather.)