Protecting Britain’s Steel Industry

Jim Shannon Excerpts

Monday 21st June 2021 Commons Chamber

[Mr Jayawardena]

I completely agree. Indeed, not only is my hon. Friend right, but the numbers get worse for Labour: in Labour’s last five years in charge, industrial electricity prices rose by two thirds, hitting the steel industry hard. In contrast, we have provided £500 million in relief to the steel industry since 2013 to help it to cope with high electricity costs. We have also fought hard to make sure that the industry does not have to face duties of 25% when we export to the European Union.

We are alert to concerns that China is artificially promoting state-subsidised steel. We can see the impact of such trade-distorting practices today, with the steel market 40% over capacity. The facts show that as we have stepped up to take action, the Labour party has been shuffling its feet. Despite the rhetoric today, in her very first appearance at the Dispatch Box in that role, the shadow Secretary of State for International Trade, the right hon. Member for Islington South and Finsbury (Emily Thornberry), asked my right hon. Friend the Secretary of State to make it clear to the United States that she would not agree a deal with our American friends that would constrain Britain’s ability to negotiate a deal with China. The right hon. Lady was willing to put a deal with China ahead of the deal with the United States.

Whether the Labour party has changed its policy on China or not, this people’s Government have no plans to do a trade deal with China. On the contrary, we have used our presidency of the G7 to rally an alliance of democracies in a battle for the soul of global trade. To win that battle, we want better and more modern rules at the World Trade Organisation, as well as new rules on industrial subsidies. That is why we are working under the G7 trade track, an initiative pioneered by Britain to set the agenda for WTO reform. This will be a tough fight, but it is a fight we must win. People cannot believe in free trade unless it is fair. That is why we need effective rules and tools.

Trade remedies are an important tool in our tool box, and it is right that Britain stands up for her key industries. It is right to have a robust framework in place, and we do. We said that we would get Brexit done and then move on to people’s priorities. We got Brexit done. We got a trade deal with the EU, and now we have transitioned 19 measures from the EU, plus the steel safeguard. Now that we have full control of our trade policy, we can go further to defend British industry and jobs, and take further action where necessary.

[Jim Shannon (Strangford) (DUP)]

The Minister is painting a very positive picture. Has any consideration been given to ensuring that every Government contract is carried out using only British-based steel? Not only would that secure local jobs for local people, but I believe it would send a message that has been lost in our search for a good deal.

[Mr Jayawardena]

The hon. Gentleman is right to say that we must champion British steel at every turn. Indeed, the Department for Business, Energy and Industrial Strategy has been creating a strong pipeline to ensure that advance notice has been given to industry about the 7 million tonnes of steel that will be required, so that industry can seek the opportunities that lie ahead. The safeguard measures that Labour Members talk about today are only part of the picture with trade remedies. Dare I say that it is not the first time the Labour party has not quite understood international trade?

We must remember that safeguard measures are not intended to address unfair practices, which are the subject of the motion. They are emergency measures intended to tackle unforeseen surges in imports, and they are governed by strict WTO rules. It has been the job of the independent Trade Remedies Authority to investigate whether the steel safeguard measures should be extended, amended or revoked. That independent organisation has followed the evidence, and engaged widely with importers, domestic producers and overseas exporters. Although on Twitter the shadow Business Secretary seemingly does not know the difference between independence and being part of Government, the TRA is independent. This is not the Government’s proposal, and for each commodity covered by the safeguard measures, the TRA has considered whether there is domestic production, whether there is evidence that a surge in imports has caused or threatens to cause serious harm, and whether it is in British economic interests to maintain the measure.