UK could become ‘global dumping ground’ sans steel tariffs? minister
The UK risks becoming a ‘global dumping ground for cheap steel’ without proposed tariffs on imports, a business minister said.
From July, the government will lower the tariff-free quota level for steel importers by 60% compared to current arrangements.
This will double import taxes on steel coming into the UK above those levels from 25% to 50%.
It is part of the government’s aim to ensure 50% of the steel used in the UK is made in the country, up from 30%.
MPs have previously raised concerns the move cost thousands of jobs without exemptions for specialist steel which is only made abroad.
In a statement to the Commons, Chris Bryant announced an increase to the total quota volume ‘to protect categories of steel that are manufactured in the UK’.
He told MPs: ‘Canada, the US, and the EU have already put in place similar toughened measures to protect their industries.
‘So if we do nothing, or if we delay introducing new measures, we will immediately become the global dumping ground for cheap steel across the world.
‘Again, I say that would mean the end of UK steel production.’
Bryant added: ‘The total quota volume will now be 3.2 million metric tonnes, that is an increase of over 560,000 metric tonnes of steel that can be imported tariff-free compared to the provisional volumes we announced, a significant 21% uplift.
‘Having listened to members and to industry, we have increased the quotas in several instances, so as more accurately to protect categories of steel that are manufactured in the UK.
‘Some of the changes reflect the fact that the EU remains our largest export market for steel, and we have highly interconnected supply chains.’
Shadow business secretary Andrew Griffith warned the 50% tariff rate ‘will do great damage to British manufacturing, to housebuilders and those who construct the nation’s infrastructure’.
He welcomed ‘concessions’ made by the government, but said concern remains over some steel import codes that are used by aerospace and space, arguing defence firms would face higher costs.
In his response, Bryant said: ‘I don’t think he understands how any of this works, we would immediately become the dumping ground for all the cheap steel in the world we would be a magnet for that, and we would be exacerbating the problem that we already have for steel production in the UK.’
He went on to back British steel being used in defence projects, as he reeled off a series of Conservative-commissioned naval projects where the metal had come from Sweden, Finland, Korea and France.
By Rhiannon James and Harry Taylor, Press Association Political Staff
Press Association: Finance
source: PA
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