UK-US Trade

Lord Watts Excerpts

Monday 12th May 2025 Lords Chamber

[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.

[Lord Watts (Lab)]

My Lords, is it not the case that no matter how good a deal we do with America, Europe is our most important trading partner and the one that we should concentrate on and get the most out of?

[Baroness Gustafsson (Lab)]

I agree with my noble friend that our trading relationship with the EU is incredibly important. I do not believe in the premise of false dichotomies or that we are picking between one and the other. This is a continuing relationship and dialogue. I note that there is a very important EU summit coming up in May, which should really endorse and build on our relationship with the EU.