UK-US Trade

Lord Lamont of Lerwick Excerpts

Monday 12th May 2025 Lords Chamber

Asked by

[Lord Lamont of Lerwick]

To ask His Majesty’s Government what further action they plan to take to protect and increase trade between the United Kingdom and the United States.

[The Minister of State, Department for Business and Trade and HM Treasury (Baroness Gustafsson) (Lab)]

My Lords, on Thursday 8 May we were delighted to announce the agreement of a landmark economic deal between the United Kingdom and the United States, making the UK the first country to get an agreement with President Trump. It was the second major trade announcement of the week, following the India free trade agreement on Tuesday 6 May. What we have agreed will provide the foundation for a new reciprocal trading partnership between the US and the UK and secure actions that will protect jobs across the country and protect British businesses.

[Lord Lamont of Lerwick (Con)]

I thank the Minister for her reply, but after all the self-congratulation has faded away, is it not clear that this agreement is very far from being a comprehensive trade agreement of the type that ought to be possible in this post-Brexit world? Is it not the case that British firms are now worse off than they were before 2 April—so-called “liberation day”—because of the 10% tariff? Although it is welcome that the worst draconian tariffs have been reduced on motor cars, British firms are worse off than they were before. If the Government regard this as just a transition to a more effective, more comprehensive deal, is it not important that they give that priority and do away with thinking about dynamic alignment with the EU market?

[Baroness Gustafsson (Lab)]

The noble Lord is right that there is still a lot of work to be done. But having spent time with the many very capable and hard-working officials who have been part of this deal, it is worth acknowledging the hard work that has gone into this, which we are very appreciative of. The reality of this situation is that it has lifted some of the barriers to trade for many of our industries and some of the key sectors that we really value—for example, the automotive, steel and pharmaceutical industries. The noble Lord is right that there are still a lot of industries that have not been covered by the scope of this agreement. We are just starting on our journey, making sure that we can build on the strong trading relationship between the US and the UK and continue this approach of removing the onerous tariffs and supporting the people, industries and sectors supported by this.

The areas that have been covered by this agreement employ over 320,000 people within the UK, with a further 260,000 jobs within the UK supporting these sectors. Yes, it is just the first step in negotiating the fuller economic situation with the US, but I think the noble Lord will agree that it is a very powerful one.