Commons Sense

House of Commons · Ministers' Questions

UK Exports to the US: Tariffs

Thursday 15 April 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The Secretary of State is committed to the Good Friday agreement and has had frequent discussions with the Biden Administration.
  • The Secretary of State is having positive discussions with her counterpart Katherine Tai about resolving the Airbus-Boeing dispute to benefit the Scotch whisky industry.
  • The UK is urging the United States to desist from tit-for-tat tariffs disputes, including those related to a digital services tax.

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Questions & Answers

Context

The Scotch whisky industry in Orkney and Shetland faces significant economic challenges due to tariffs imposed by the US, affecting 50,000 jobs.

Question

What recent discussions she has had with her US counterpart on not re-imposing tariffs on UK exports to the US? The Scotch whisky industry is of economic importance to a large number of the most economically fragile communities in the highlands and islands, so I genuinely wish the Secretary of State very well in her endeavours to get the removal of tariffs made permanent. Is the situation that the Prime Minister has created in Northern Ireland helping or hindering the engagement with the Biden Administration?

Answer from Elizabeth Truss

We are extremely committed to the Good Friday agreement and have had frequent discussions with the Biden Administration. I am having very positive discussions with my counterpart Katherine Tai about resolving the Airbus-Boeing dispute—which has been going on for 16 years—to the benefit of the Scotch whisky industry, other industries throughout the UK and industries such as aerospace, in which we need Airbus to be able to compete.

Partly answered

Not addressed: The PM's approach in Northern Ireland was not directly addressed regarding its impact on tariff negotiations.

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Context

The Scotch whisky industry faces significant economic challenges due to US tariffs, affecting a large number of communities in Scotland.

Question

Is the situation that the Prime Minister has created in Northern Ireland helping or hindering the engagement with the Biden Administration?

Answer from Elizabeth Truss

We are extremely committed to the Good Friday agreement and have had frequent discussions with the Biden Administration. I am having very positive discussions with my counterpart Katherine Tai about resolving the Airbus-Boeing dispute—which has been going on for 16 years—to the benefit of the Scotch whisky industry, other industries throughout the UK and industries such as aerospace, in which we need Airbus to be able to compete.

Partly answered

Not addressed: The PM's approach in Northern Ireland was not directly addressed regarding its impact on tariff negotiations.

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Context

The UK faces threats to its digital service tax sovereignty from the US, which could harm the special relationship between both countries.

Question

Madainn mhath, Mr Speaker. The digital-service-tax threats from the USA show that the Biden Administration value their special relationship with big tech more than the one with the UK. Is not the prospect of a trade deal with the USA pretty dead? In any case, the 0.2% of GDP that such a deal was going to recover was only a fraction of the damage done by Brexit.

Answer from Elizabeth Truss

We are urging the United States to desist from any more tit-for-tat tariffs disputes, including in respect of a digital services tax. We think that the best way to resolve the issue is through the process that the Chancellor is leading at the OECD. We are in further discussions with the United States not just to end the Airbus tariff dispute but to work with the United States at the G7 to challenge unfair practices in the global trading system by countries such as China.

Partly answered

Not addressed: The likelihood of a trade deal was not directly addressed.

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