Steel Tariffs: Northern Ireland

(Urgent Question): To ask the Secretary of State for Business and Trade to make a statement on steel tariffs in relation to Northern Ireland.

I hope you would agree, Mr Speaker, that I have always done my level best to come to the House first with any new announcements.

As I told the House last Thursday in written and oral statements, the Government’s new steel trade measure comes into force tomorrow, immediately succeeding the expiry of the steel safeguard, ensuring that there is no gap in protection for our domestic steel industry. The European Union has today also announced the details of its trade measure, which comes into force tomorrow. Since the announcement of its measure on 7 October last year, we have engaged extensively with the EU and agreed an approach that reflects the UK and the EU’s highly interconnected supply chains. This will provide stability for UK EU steel trade from 1 July while we continue to work together to strengthen UK EU steel trade for the longer term.

As Members would expect, our engagement has also covered the matter of Northern Ireland in some detail. This ensures that specific arrangements are and will be in place to facilitate the continued smooth movement of steel to Northern Ireland from Great Britain, guaranteeing that movements of steel within the UK market will not pay EU tariffs. These arrangements, which are aimed at comprehensively protecting the UK internal market, include the retention of the seven tariff rate quotas—for categories 7, 8, 9, 13, 17, 25A and 28—and specific arrangements for other categories that will continue to mean that UK origin steel can move tariff free to Northern Ireland.

The arrangements will operate from tomorrow, 1 July, and taken together will serve to protect the operation of the UK internal market and flows of goods within it. His Majesty’s Revenue and Customs is now taking steps to confirm the arrangements with industry, including business representative organisations in Northern Ireland. The Government will continue to provide guidance and support to traders moving goods from Great Britain to Northern Ireland through the trader support service, and we will work closely with the EU to ensure that these arrangements operate effectively in practice.

We are doing two things. First, we are protecting the UK internal market; secondly, we are giving UK steel production the protection it needs so that we have strong UK steel production that is able to meet at least 50% of the UK’s steel needs.

I am grateful to the Minister for coming to the House. I have to say, there is an inherent absurdity, and indeed a constitutional offence, in having to come to the sovereign Parliament of the United Kingdom to ask whether there will be any tariff arrangements on moving steel from one part of the United Kingdom to another. Indeed, one recalls that last Thursday, the Minister said that he could not tell us because he had to await the EU decision, which underscores how absurd it is that these matters are governed by a foreign jurisdiction and not by ourselves.

I have three specific questions for the Minister. First, is there any quota differential in regard to any class of steel, and if so, in respect of which classes?

Secondly, will the EU’s new traceability rules, which it calls the “melt and pour” rules, be applied to steel being imported into Northern Ireland? If they are, they will impose an extra layer of bureaucracy, with form filling and certificates having to be obtained that are not required when steel is brought into Great Britain. Could we have clarity on that?

Thirdly, last Thursday the Minister said that 74% of steel imports to Great Britain will not be covered by the UK trade measure. Can the same be said of Northern Ireland? Is it the same level of exemption—if we want to call it that—in respect of Northern Ireland, given the import of the EU governance? I ask those questions because in Northern Ireland we do not make steel; we rely exclusively on importing it. Many businesses in Northern Ireland depend very much on steel imports, yet here they are facing a new regime tomorrow and only hearing about it today.

I am sorry, but I think that the absurdity all lies with the hon. and learned Member. He seems to be trying to create a difference between Great Britain and Northern Ireland, which we are striving in every way to prevent. We have made it absolutely clear that the existing—[Interruption.] If he chunters from his seat he will not be able to hear what I am saying; I might be able to enlighten him.

There are seven key categories that are most important to Northern Ireland. Category 7—steel plate—is important for shipbuilding and defence. Category 8—stainless, hot rolled sheets and strips—is important for automotives. Category 9—stainless, cold rolled sheets and strips—is also important for automotives. Category 13—rebar—is important for construction. Category 17—steel beams—is also important for construction. Category 25A—large tubes—is vital for the oil and gas industry. Category 28 —alloy wire—is important for fencing.

In all those categories, we have maintained the tariff rate quotas. There is no difference. From the initial conversations I had with the European Union back in December last year, we have made it absolutely clear that we want to make sure that there is a single market between Great Britain and Northern Ireland and that there is no border down the Irish sea.

All this shows the patent nonsense of having left the European Union. I know that the people of Northern Ireland agreed with me on that and disagreed with the hon. and learned Member. The truth is that we would not have to negotiate with the European Union on these matters if we were still a member, and there would not be any of these quota issues. It is true that there is a problem with overcapacity of steel around the world, but the UK is not the problem for the EU, and the EU is not the problem for the UK, so, frankly, we should come to a very sensible arrangement. That is what we have mostly managed to do so far, but we will continue to discuss it with the EU.

Seventy three per cent of steel imports into the whole of the UK, which includes Northern Ireland, are completely excluded from the measure, and the tariffs only apply above the quota levels. For many categories, we have managed to create quota levels that are above existing trade flow levels, so I do not expect there to be problems in those. But in some areas we are deliberately trying to make sure that people use British steel, because Britain now produces only 4 million tonnes of steel. If we do not continue to make steel in this country, a significant problem will accrue to us into the future.

I thank the hon. and learned Member for North Antrim (Jim Allister) for bringing this important urgent question to the Chamber. I welcome the Government’s ambition on British steel, but British Gypsum in my constituency has raised concerns about the short term impact of tariffs and called for transitional arrangements for steel to avoid unintended consequences in the construction industry. Will the Minister comment on the idea of better, stronger transitional arrangements?

As I explained last Thursday, we have introduced transitional arrangements to make sure that for the first quarter, imports are possible where people already have contracts to bring stuff in. As I say, 73% of UK imports of steel will not be in scope of the measure at all and can come into the UK easily. We are simply trying to make sure that for the categories of steel that we produce in the UK, people turn to British production. That is the way in which we can ensure that we still have strong steel production in the UK into the future. If my hon. Friend has specific issues relating to a company in his constituency, I am very happy for my officials to meet with them.

I call the shadow Minister.

I congratulate the hon. and learned Member for North Antrim (Jim Allister) on securing this urgent question. The Conservatives have made clear for a number of weeks how concerned we are about the incoming steel tariffs that will take effect tomorrow. We have heard from businesses, not just in Northern Ireland but across the country, that the 50% tariff on steel imports above the quota will do great damage to upstream British manufacturing, our defence and aerospace sectors, and those who construct the nation’s infrastructure.

We acknowledge that on Thursday the Government brought forward some changes to the quotas after reflecting on concerns raised by industry, but we have now heard at the last minute that the EU has cut a significant chunk of the UK’s export quota. Businesses have been warning us for months about the damage that these proposals could cause, and they are now expected to adapt in a matter of hours, not days. Will the Minister publish the full impact assessment and communicate properly with the affected sectors? He mentioned a few ways in which he is going to communicate with them, but I cannot stress enough the urgency of getting clarity for every business across this country in the upstream steel industry.

Have any Northern Ireland businesses specifically lodged applications with the Trade Remedies Authority? I know that the Minister for Industry, the hon. Member for Stockton North (Chris McDonald), has kindly let us know that he cannot attend oral questions on Thursday as he will be visiting businesses in Northern Ireland. Is that to do with the serious concerns over steel tariffs?

Finally, may we have an update on the negotiations the Government are having in this area with the US and India, because it seems that whenever the UK Government negotiate on behalf of our steel industry, the industry loses out? This is all shaping up to be a disaster for steel, and we would appreciate an update.

I will start with the question about the Minister for Industry and his visit to Northern Ireland. He is visiting shipbuilding and aerospace companies. The visit does not specifically relate to steel at all.

On steel generally, the Conservatives’ record is absolutely shocking, and we will not be going down the route that they went down. When they came to power in 2010, the UK was producing 12 million tonnes of steel, and when they left power we were producing 4 million tonnes. That is an existential crisis that happened entirely on their watch. We need to address it, and we are serious about doing so.

Incidentally, countless contracts for major infrastructure projects in the UK that were awarded by the previous Government, including through the Ministry of Defence, regularly went to steel produced in other countries. I am not going to follow the route that the hon. Lady’s party went down. In fact, the then Prime Minister even refused to meet with steelworkers. That shows the level of concern that the Conservative Government had with steel. We are determined to make sure that we have a proper steel production industry in the UK, and that means that we have to take some tough measures.

In relation to the European Union, to be fair to the hon. Lady, she was not a leaver. She was in favour of remaining in the European Union. The UK has now secured 1.05 megatonnes of guaranteed access through country specific quotas and 1.09 megatonnes of access through competitive pools—a total access of up to 2.14 megatonnes through the EU process. UK steel exports to the EU averaged 1.82 megatonnes between 2022 and 2024 when including products covered by the EU steel measure, so we did end up with a good result.

The truth of the matter, as I have said before and as we have said repeatedly to many others, is that it would be much more sensible if there was an exemption between the UK and the EU in relation to steel measures, so that neither of us was facing quotas or tariffs, because frankly we are not the problem for each other. There is a danger that in specific instances, some companies might facing tariffs going in both directions, such as Marcegaglia, which is a part Italian, part British steel manufacturer.

I just want to correct one other thing. The hon. Lady has repeatedly said on her X account that there will be a 50% tariff on all steel imports. This is patently untrue, and I really hope that she starts correcting the record.

I thank the Minister for his work and engagement on this issue over the last few weeks and months. I have been contacted by a range of defence and aerospace companies both in my constituency and across the UK—including some with a footprint in Northern Ireland—that are concerned that some of the quotas and exclusions do not take into account some of the relevant codes suggested by industry, which could lead to increased costs, project delays and threats to jobs in the future. Will he assure me that he will meet the industry again to discuss the codes that it feels are outstanding? Will he or his officials meet me to discuss this issue in more detail?

I have regularly and repeatedly met industry downstream and producers—I did so again yesterday—as has my hon. Friend the Under Secretary of State for Business and Trade, the hon. Member for Stockton North (Chris McDonald), the Minister for Industry, who is sitting by my side. We have striven at every point to ensure that where possible we are including only those categories of steel that are manufactured in the UK. One of the reasons we changed the quotas in what we announced last week from the original suggestions made in March was that Speciality Steel is not up and running and therefore it is not able to supply some of the categories that my hon. Friend spoke about. In many areas, the quota is larger than existing trade levels. Yesterday afternoon, a variety of MPs came to meet me and officials to talk this through, and I am happy for my hon. Friend to meet my officials if he has specific concerns for constituency businesses.

I call the Liberal Democrat spokesperson.

Businesses across Northern Ireland and the rest of the United Kingdom are concerned that from tomorrow they may face tariffs on the steel that they are importing even if that steel is not manufactured in the United Kingdom in the quantities or grades they need. The Under Secretary has requested that we write to him with specific examples, and I did so on 19 June on behalf of Hewland Engineering in my constituency, but it is concerned that it has not heard back yet and 1 July is coming quickly.

The Minister mentioned in his response to the urgent question that he was working hard to ensure a single market in this area between us and the European Union. The Liberal Democrats are really grateful to hear that, because we have long argued that this friction is an inevitable result of our leaving the European Union and the single market. Will he help support the Liberal Democrats’ campaign to ditch the Government’s red lines and have a new, bespoke UK EU customs union, along with joining the single market for our new growth and defence partnership with the EU, to help protect British companies and help get Britain growing again?

He’s a cheeky one! No, I am not going to sign up to the Lib Dem campaign. However, there is a serious point here: it would be much better if the UK and the EU were to have a mutual exemption in relation to quotas and tariffs in this area. I have made the point already, but I will make it again: we are not the problem for EU steel manufacture and it is not the problem for us. The real problem is about overcapacity, and all the countries in the world that are facing this same issue should be joining together to try to tackle it.

I was asked a question about the Trade Remedies Authority. I am not aware of a particular company in Northern Ireland having approached anybody about whether a TRA investigation should be launched, but certainly there are areas where steel production in the UK could look at whether a trade remedy ought to be sought.

The world has moved on and we no longer live in a free trade utopia, as some might wish. It is clearly difficult to impose protections for our steel industry, but it is the right thing to do. Does the Minister agree that failing to impose such protections would surrender our steel industry, surrender our national defence and surrender our sovereignty to other nations, which can never be acceptable?

Of course I agree with my hon. Friend. I am, broadly speaking, in favour of free trade, but it has to be free and fair trade, and one of the issues in relation to overcapacity in steel is that there is not a level playing field across the world because of subsidies and anti competitive practices that make it impossible for UK steel to compete. It is an existential moment.

I have heard from some Conservatives that there has been an argument that we should delay introduction of the measure or that we should have lower tariffs or whatever. The truth of the matter is that, with the EU already implementing its measure, along with the US and Canada, if we were not to implement a similar measure, the danger is that we would be the dumping ground for all the cheap steel in the world, which would kill stone dead every single steel mill in the UK. This is not a Government who will put up with such a strategy.

The Minister may have met representatives of the industry, but the question is: has he even listened to their concerns? They still say that the problems caused by his imposition of tariffs will abide with the industry. He said that he is relying on UK producers to be able to produce steel, but Tata has said that it will not be able to supply all the steel required, and one of the firms in Rotherham that he is relying on is in administration. How can he say with assurance that the supply of steel will be available?

The question for Northern Ireland is this. If Northern Ireland producers have to bring steel from the UK, they need first to be sure that the UK quota has not been exceeded, so will the Minister assure us that they will not have to be concerned about whether there is any EU quota left? Otherwise, they may have to pay tax twice.

I am sorry, but the right hon. Member simply is not listening to some of the things I have said. He referred to the business in Rotherham, which is Speciality Steel. Precisely one of the things that we changed—because we listened to people’s concerns—were the quotas that would have been met by Speciality Steel, because it is not up and running as we had envisaged. We have precisely listened and acted on that.

If the right hon. Member had been in the Chamber on Thursday, he could have taken up the offer I made to meet my officials and me to go through specific details. I have often found that businesses are being given completely misleading information about how the tariffs will or will not apply to them. If he has specific businesses about which he wants to go through the details with my officials, of course we can make that opportunity available to him.

I will take the Minister up on that offer. I wrote to him asking him to meet companies in South Antrim over two weeks ago and I am still waiting on a response to that. In his initial response, he said that the TSS and HMRC are able to support Northern Ireland companies with advice and guidance. Will he assure the House and Northern Ireland companies that they will know what they are talking about? Up until now, they have been found lacking.

If the hon. Member wants to write to me about how HMRC or the support is lacking, I would be happy to respond. Again, as I said, if he had been in the House last Thursday, he could have taken up the opportunity—[Interruption.] I made a statement in the House last Thursday on precisely all these issues, and he would have been able to take up the opportunity yesterday afternoon, as many MPs did. It is difficult to arrange precisely that same set of meetings again, but I am happy to ensure that officials speak directly to the companies he talked about so that they get the best information they need.

The Minister talks about protecting the steel industry, and we can all agree with that, but steel users in Northern Ireland have been left with confusion, uncertainty and rising costs, and price gouging from suppliers is already happening. Whether he likes to admit it or not, Northern Ireland is collateral damage and often caught between UK trade policy and EU diktats, so we can understand the confusion.

Despite repeated requests, the Minister has not met businesses from Northern Ireland—indeed, I got a commitment in the House a couple of weeks ago and we are still waiting on that to happen. He needs to allow his officials to meet urgently with the industry and speak directly to it—not to trade bodies or even to us—because the industry and these businesses know exactly the answers they need to get from the Government. Will he organise that with immediate effect?

First, I note that the hon. Member’s first sentence started, “Yes, we want to protect steel production, but”—yet nobody wants us to take the measures that we believe are necessary and proportionate to do that. That is one of the problems here: of course there are trade offs. We want to protect steel production in the UK, which we believe is essential to our national security and to having a strong defence sector into the future, and that is why we are taking these measures.

I am not sure whether I can meet every single business. We have been rigorous about pursuing every single meeting that I have committed to. If I have got this wrong, I apologise to the hon. Member, but, again, if she had been in the Chamber on Thursday, she could have come to the meeting yesterday afternoon when lots of people took up the specific issues relating to their businesses.

If it is all right, Madam Deputy Speaker, I will make a correction. I said earlier that 1.5 megatonnes were being allowed under the EU measure; it is 1.05 megatonnes.

I welcome the Minister’s announcement about no EU tariffs for steel coming into Northern Ireland. If we can do that for steel, can we not do that for other commodities that come into Northern Ireland? Will he look at reviewing that to see whether there are other items coming into Northern Ireland that do not need to have the same regulations?

I want to achieve frictionless trade, both within the UK internal market—I am determined to protect it as much as I possibly can—and with the whole of the European Union, because it is our single biggest trading partner. It was an act of monumental self harm when we left the European Union that we did not achieve the frictionless trade that we need.

The Minister has been very clear and open about offering the problem companies that are having difficulties a meeting with his officials. He has heard the number of people who have requested meetings. Will he agree to inform each Northern Ireland MP before the summer recess in 14 days’ time that either those meetings have taken place or of the dates when they will take place, to avoid any possible ambiguity going forward?

If the hon. Gentleman is not prepared to take me at my word, I am sorry but I will never be able to satisfy him. The truth is that I have been very open: I came to the House to make a statement last Thursday; we laid a written ministerial statement as well, which is obviously available to all Members; and I made a commitment that any Member who wanted to meet me and my officials to talk about these things could do so. Sometimes it is other people’s diaries and sometimes it is my diary that is the problem. I will not make the specific commitment that he asks for, because I think all he is saying is that he does not trust me.

I thank the Minister for his answers and his endeavours to find solutions for Northern Ireland. Strangford is home to a robust network of engineering and construction firms that rely on global supply chains to remain competitive and fulfil their live contracts. As a result of the Government’s new steel quotas and out of quota tariffs, those businesses are facing cost increases of some 18% on active projects and crippling delays. Furthermore, due to the Windsor framework, our Northern Ireland businesses are uniquely vulnerable to a double whammy of UK tariffs and EU related red tape. If Strangford’s engineering companies fold, the Treasury will lose corporation tax and pay as you earn contributions, and will ultimately have to pay out benefits for staff made redundant. Given the gravity of the situation, respectfully—the Minister knows that I always do things respectfully—will the Minister commit to providing exemptions from these punitive tariffs for specific grade sizes and specifications of specialist steel that are not manufactured domestically?

We have always said that we want to provide protection for the categories of steel that are manufactured in the UK and that people can source in the UK. That is our primary aim. We need to keep that under review. As I said last Thursday—the hon. Gentleman will know this, as he was present—we will keep it under review from day one, and there will be a formal review process at the end of the first year. We need to make sure that that is true.

The hon. Gentleman referred to a double whammy. I would say that Northern Ireland also enjoys a double benefit, because it is both within the UK internal market and, in many ways, within the European market. That is a significant advantage for Northern Ireland that other parts of the UK do not necessarily enjoy. I am very happy to meet any Member—I have always held the view that no Minister should ever refuse a meeting with another Member. I made that offer last Thursday, as the hon. Gentleman knows, and that offer still stands.