US-UK Trade Deal: Northern Ireland

Jim Shannon Excerpts

Monday 12th May 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

With what I am sure will be a pithy final question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

You have set me a challenge, Madam Deputy Speaker. I thank the hon. and learned Member for North Antrim (Jim Allister) for securing this urgent question. It is so important to talk about this issue in this place. It has caused considerable problems for my Strangford constituents. In particular, I mention three distilleries—Echlinville, Rademon and the Hinch—but many other businesses are affected, too. How does the Minister plan to address the tariff differentials that may arise for Northern Ireland following the UK-US trade deal? It may see any EU retaliatory tariffs on US goods being applied to US goods entering Northern Ireland, potentially creating an Irish sea border for US goods.

[Jonathan Reynolds]

There is only one Member for Strangford, and no one could mistake him for anybody else in asking a question of that sort. He asks about the definition of whether goods are at risk of entering the single market when they come into Northern Ireland. That is based on a percentage differential in the tariff between the United Kingdom tariff rate for a good or tariff line and that for the EU. I believe that a 3% differential puts a good coming into Northern Ireland potentially at risk and therefore considered for the higher tariff up front. In this case, that would be the EU one, and it would then be reimbursed. I understand that it is a more complex position for businesses in his constituency than for many other things, but we have to make this work. We have to be committed to working with businesses in his area, in Northern Ireland and in the wider United Kingdom, and specifically with political leaders, to ensure that we are getting this right. I am hearing, and I have heard many times, about how we can make that system smoother, more reliable and more efficient. We will take that away and work with our colleagues to do that.

However, the system in place is balancing many different competing pressures, and there are no obvious or easy solutions. I was a parliamentarian when we went through all the potential outcomes when a different party was in charge. Let us make it work. Let us listen where we need to improve things, but let us recognise that this agreement fundamentally addresses some of the core problems that existed when this country chose to leave the European Union.