US-imposed Trade Tariffs — House of Lords, 2019-10-07
Topic: Foreign Trade
John Eric Gardiner (Conservative, Centre-right): My Lords, with the leave of the House, I will now repeat in the form of a Statement the Answer given to an Urgent Question today by my right honourable friend the Minister of State for International Trade in the other place. The Statement is as follows: "The UK continues to be a champion of the international rules-based order of which the WTO is a cornerstone. However, the UK Government are clear that resorting to tariffs is in no one’s interests. Low tariffs and free trade underpin prosperity and jobs in the UK and globally. That is why we are pursuing an ambitious free trade agenda, lowering tariffs and quotas where possible, and working on an ambitious package of bilateral free trade agreements. Our Government are disappointed by the US Administration’s announcement that they intend to impose tariffs on the UK and our European partners following the recent ruling My right honourable friend asks what communications there have been between the Government and the United States. We have continued to raise the issue at the highest levels. My right honourable friend the Secretary of State has herself spoken to US Trade Representative Lighthizer, Commerce Secretary Ross and Vice-President Pence. My right honourable friend the Chancellor raised the subject of Airbus tariffs with US Secretary of the Treasury Mnuchin in July. My right honourable friend the Member for Maidenhead raised the issue with President Trump during his state visit to the UK in June of this year This dispute has a long history, going back to 2004. I will not detain the House by setting out that history, but it is long and complex. It has led to this WTO judgment, and although the UK, France, Germany and Spain took steps to bring their support into compliance with the WTO, the WTO ruled last year that further steps were required to bring this support fully into compliance Following this ruling, the UK and other Airbus nations have now taken steps to bring their support fully into line. The Airbus nations are seeking confirmation from the WTO in ongoing proceedings that these steps are sufficient to achieve compliance. A ruling is expected in the coming months. However, WTO procedure allows for the US to seek authorisation to retaliate on the EU in parallel to these proceedings, and therefore the WTO has confirmed whether the Airbus nations have now complied with their WTO obligations On 2 October, the WTO announced that the US can be authorised to impose up to approximately $7.5 billion annually in tariffs. Following this, the US published a list of tariffs on the EU, targeting products produced by the Airbus nations and wider EU. These measures are not in the interests of the UK, the European Union or the United States. Tariffs would only inflict damage on businesses and citizens on both sides of the Atlantic, and harm global trade and the broader aviation industry at a sensitive time. We are working closely with the US, the EU and European partners to support a negotiated settlement to the Airbus dispute, along with the separate Boeing dispute. I would like to reassure the House that we will continue to press this issue at the highest levels and urge the United States to withhold tariffs until the WTO has confirmed that we have complied in the compliance proceedings, something we expect to happen in the next few months Single malt scotch whisky has been tariff-free with the US for more than 25 years now, and whisky exports to the US are worth over £1 billion annually. Single malt producers are often small and medium-sized businesses, and these tariffs will hit those who can afford them least We will continue to talk to the US at the highest levels to press for a settlement and for the US to hold off applying these tariffs until the WTO has had time to rule".