Free trade contributes to prosperity, innovation and fairness across the world
Earlier today I spoke in a debate in the House of Commons to ask that the Government act to support the UK steel industry by finding a way to maintain import safeguards against unfair trading practices.
Opposition Day Debate - June 21
I am very much in favour of free trade, which contributes to prosperity, innovation and fairness across the world.
However, free trade requires a level playing field, and right now the pitch on which our UK steel industry is trying to compete is uphill and full of holes. Our British steelmakers cannot compete on price with foreign manufacturers many of whom have far cheaper energy prices and receive massive state subsidies.
Other countries also employ market-distorting practices such as steel dumping, with the deliberate intention of putting British steel manufacturers out of business. That is why we, and the US and the EU, have rightly implemented steel safeguards over recent years to protect domestic industries from unfair and malicious practices that are the very antithesis of free trade. It is therefore incomprehensible that the Trade Remedies Authority is recommending that we allow over half our safeguards on steel products to lapse, at a time when the EU and the US will be maintaining their safeguards in response to the continuing threats to steel producers around the world.
Steel is a critical national industry producing essential materials for our infrastructure and our nuclear and defence capabilities. Steel is therefore crucial to our security. It is also an industry that is vital to our economy.
Steel supports over 33,000 jobs, including many hundreds in the Stocksbridge steelworks in my constituency. I know that the Government fully understand this. I am grateful for the frequent engagement of my right hon. Friend the Business Secretary with me on this issue and the welcome commitment of the Minister today to use anti-dumping measures where necessary. I also look forward to meeting my right hon. Friend the Prime Minister later this week to discuss this issue further. The recommendations of the TRA could be devastating for UK steel and I am concerned that they are based on the wrong data and fail to take into account the international situation.
We need to take action to retain our steel safeguards. I accept that my right hon. Friend the Secretary of State for International Trade does not currently have the power that she needs to ensure that that happens. However, the necessary changes are legally complex, and the Opposition’s proposal will breach World Trade Organisation rules and could result in retaliatory tariffs from other nations. Although we must act quickly, we must also be certain to act legally, and a quick Bill thrown together on the back of an Opposition debate is not the proper way to give our steel industry the protection it needs. We cannot afford to get this wrong. Although I cannot support the motion, I do urge the Government to take rapid action to reform the TRA and give new powers to the Secretary of State.
In 2016, people in my constituency voted to take back control. That means our democratically elected Government having the final say over our trade policy. The Government must act to back UK steel.
