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Trade Negotiations 2025-05-08
08 May 2025
Lead MP
The Minister for Trade Policy and Economic Security
Debate Type
Ministerial Statement
Tags
ImmigrationEconomyTaxationEmploymentNorthern IrelandBrexit
Other Contributors: 26
At a Glance
The Minister for Trade Policy and Economic Security raised concerns about trade negotiations 2025-05-08 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
ImmigrationEconomyTaxationEmploymentNorthern IrelandBrexit
Government Statement
Today, a deal has been announced by the Prime Minister and President Trump to secure reductions in tariffs on UK car industry exports, ensuring lower tariffs of 10% for a quota of 100,000 vehicles. This is positive news for iconic British luxury brands like Aston Martin, Bentley, and McLaren as well as Jaguar Land Rover, which employs 34,000 employees directly in the UK. The deal also secures removal of tariffs on steel and aluminium through duty-free quotas. For agriculture, it opens exclusive access to the US market for UK beef farmers without allowing hormone-treated beef or chlorinated chicken. The agreement ensures co-operation on non-market policies from third countries, investment security, and export controls in key sectors like pharmaceuticals, semiconductors, critical minerals, copper, lumber, and film production. Following today’s announcement, there will be formal negotiations to deliver a binding legal framework with aims such as digital trade, tackling non-tariff barriers, mutual recognition agreements for industrial goods, domestic services regulation, economic security, and upholding standards in intellectual property and labour practices.
Andrew Griffith
Con
Arundel and South Downs
Question
While acknowledging the tariff reductions welcomed by JLR, the Conservative Party still sees this as a 'Diet Coke' deal lacking comprehensive free trade agreement necessary for growth. It asks about specific impacts on industries like film and television.
Minister reply
The Minister welcomes the acknowledgment of tariff reductions but emphasises that significant progress has been made, particularly for Jaguar Land Rover and other critical export sectors.
Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Question
Will the Minister clarify when tariff reductions will kick in and confirm that there is nothing in this bargain that compromises our ability to reset with the EU?
Minister reply
The agreement removes the 25% tariff on UK cars from April 2nd, and we are committed to continuing support for the automotive industry. We recognise the importance of twin-tracking our approach by recognising both the US as our largest single trading partner and the EU as our largest trading bloc.
Torbay
Question
Will there be a vote in this House on these proposals? We need to protect the NHS, ensure that farmers are not sold down the river, and prevent cuts to taxes on high-tech industries.
Minister reply
The Prime Minister confirmed that we do not anticipate any change to the process of scrutiny for trade matters in the House. There is no change to the UK’s digital services tax or measures to tackle online harm as a result of this agreement.
Meg Hillier
Lab/Co-op
Hackney South and Shoreditch
Question
Will the Minister reassure us that he is putting his shoulder to the wheel on protecting the film industry from potential tariffs?
Minister reply
It is not my personal style or the departmental habit to rest on laurels. We continue to negotiate on behalf of the UK, and we have been diligent in securing this agreement despite global trading challenges.
Michael Gove
Con
Sarum
Question
As someone who has been involved in trade negotiations, I recognise the complexity and sensitivity of such deals. Can the Minister confirm that the deal will not impact beef farmers adversely and will there be support for them?
Minister reply
I would rehearse the numbers that I shared: an initial tariff quota on beef of 10,000 tonnes rising by 1,000 tonnes annually to a cap of 13,000 tonnes. This is less than previous agreements and will not impact beef farmers adversely.
Slough
Question
With two major trade deals in a week, how will the UK-US deal benefit Slough constituents and contribute to economic growth?
Minister reply
The reduction in tariffs will particularly benefit the automotive industry and its supply chain. This is an important step towards enhancing economic growth and creating jobs across the country.
Julian Smith
Con
Skipton and Ripon
Question
How can North Yorkshire businesses take advantage of this deal, particularly in terms of agriculture?
Minister reply
British farmers have significant opportunities given the reciprocal nature of the agreement. We will work closely with DEFRA to ensure that British farmers are fully informed about these new market access benefits.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
Can you confirm that online harms and the digital services tax will not be affected by this agreement?
Minister reply
The agreement does not impact the work on online harm or the digital services tax. We have listened carefully to concerns regarding these issues and are advancing our national interest accordingly.
Ian Roome
LD
North Devon
Question
What changes will this deal bring to the proposed defence industrial strategy?
Minister reply
We aim to bring the defence component of the industrial strategy to the public in coming weeks and months. The agreement recognises the changing character of modern warfare, including digital contributions.
Smethwick
Question
Does this deal vindicate the Prime Minister's approach to securing a trade agreement with the US within 45 days?
Minister reply
The reduction in tariffs affecting autos, particularly beneficial for Jaguar Land Rover and its supply chain, is a real and meaningful benefit. This aligns with the Prime Minister’s commitment to delivering economic benefits swiftly.
Mark Pritchard
Con
The Wrekin
Question
Can you assure British farmers that their pork industry remains safe due to this deal?
Minister reply
There has been a focus on red lines around hormone-reared beef and chlorinated chicken. We are mindful of the importance of maintaining standards across all agricultural sectors, including pigs.
Phil Brickell
Lab
Bolton West
Question
The Minister has spoken a lot about tariffs so far. Might he talk about the non-tariff and non-quota trade barriers to further economic development between the United Kingdom and the United States?
Minister reply
It is important to recognise that while trade policy and tariffs are often synonymous, we must also address non-tariff barriers such as those behind the border. These are areas of focus in our agreement and will require further work going forward.
Chris Law
SNP
Dundee Central
Question
Although a reduction in tariffs is welcome, President Trump's unreliability raises concerns about constraints on the UK’s relationship with the EU. Can the Minister provide an unequivocal assurance that there are no conditions attached to the deal?
Minister reply
The Prime Minister has stated we do not want to have to choose between our friends and allies. The US is a deep and strong defence ally, but we will continue to work closely with the European Union as well.
Southend West and Leigh
Question
Does the Minister agree that this trade deal, along with the one with India and interest rate cuts, are positive signs that the Government’s plan for change is working?
Minister reply
I thank my hon. Friend for his support and recognise the significance of these developments in improving economic conditions across the country.
Alison Griffiths
Con
Bognor Regis and Littlehampton
Question
Will he request a summer forecast update from the Office for Budget Responsibility that incorporates all the latest updates to provide transparency?
Minister reply
As a Trade Minister, I am not sure the Treasury would look kindly on me telling the OBR when to update its forecasts. However, we recognise significant changes in the economic landscape recently.
Deirdre Costigan
Lab
Ealing Southall
Question
Can the Minister categorically assure the House that this deal will protect our British food standards and ensure chlorinated chicken and hormone-injected beef remain illegal?
Minister reply
I can assure her that there is nothing in this deal that compromises safety standards for poultry or beef. We were clear that maintaining these standards was a red line, which we have delivered.
Edinburgh West
Question
There has been no mention of the Scotch whisky industry or the drink and food industry in general. Should we expect details next week, or are there assurances he can give us now?
Minister reply
Further work will continue on some broader sectors not covered by this deal, but the Indian trade deal signed recently is significant for Scottish whisky, salmon, and Irn-Bru.
Adam Jogee
Lab
Newcastle-under-Lyme
Question
Will the Minister expand a little further on what exact engagement took place with farmers before this deal was agreed? What support will be pledged to them now?
Minister reply
I appreciate my hon. Friend's observations and can assure that we uphold our standards as an absolute red line, ensuring major British manufacturers are not adversely affected.
Robbie Moore
Con
Keighley and Ilkley
Question
Will the Minister confirm that no reductions to UK food standards, environmental protections, and animal welfare rules have been conceded in this agreement? What is the true impact of the tariff arrangements on British farmers?
Minister reply
I assure him about everything I have said on sanitary and phytosanitary measures; we made that a red line and were very clear about it. There is nothing vague about the reciprocity described in terms of opportunities for beef farmers.
Ben Lake
PC
Ceredigion Preseli
Question
Will the Minister confirm that the 13,000 tonnes represents the maximum tariff quota for beef and whether any tariff quota has been agreed for lamb, pork, and poultry?
Minister reply
I assure him that compared to the tariff quotas agreed under the Australia deal, there is much more proportionality anticipated under the quota in the agreement reached today.
Helen Morgan
Lib Dem
North Shropshire
Question
Will there be protections in place for egg products from hens raised in battery cages?
Minister reply
We have not compromised our animal welfare standards in any aspect of what we have agreed on behalf of the United Kingdom today.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
Question
Is it correct that President Trump’s Secretary of Agriculture has said this deal puts American agricultural producers first? Is he wrong?
Minister reply
The north star by which we have negotiated is the UK’s national interest. Today’s agreement reflects the quiet but determined diplomacy of a serious Prime Minister to deliver a deal.
David Chadwick
Lib Dem
Brecon, Radnor and Cwm Tawe
Question
Why has the Government decided to include beef imports in the deal, and how will it affect farmers?
Minister reply
I assure him that if he looks at the numbers, including the quota agreed by the previous Government, his concerns will be allayed.
Harriet Cross
Con
Gordon and Buchan
Question
Will the Minister give a cast-iron guarantee that this deal with the US will not undermine British farmers? What measures will he put in place to ensure low-quality, low-welfare products do not enter the UK?
Minister reply
The deal we have signed today will protect British farmers and uphold our high standards of welfare and environmental standards. Any agricultural imports coming into the United Kingdom will have to meet our high and continuing SPS standards.
Damian Hinds
Con
East Hampshire
Question
Can he confirm that no commitments have been made that would curtail the freedom of this House to make further changes in the area of online safety?
Minister reply
On today of all days, I will not suggest that there should be any fetters or constraints whatsoever on this House when it comes to introducing legislation on online harm, or any other issue.
Shadow Comment
Andrew Griffith
Shadow Comment
The Conservative Party welcomes the reduction in tariffs but notes that British businesses are still facing higher tariffs now than they did in February. The deal is a 'Diet Coke' version of what was promised, not comprehensive free trade agreement necessary for growth. Questions raised include the impact on the film and television industry, the price and trade-offs made, protection for beef, lamb, pork, poultry farmers, special status of Northern Ireland, and British overseas territories. The shadow Secretary calls for immediate steps to ease business burdens imposed by elevated US tariffs.
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