Jonathan Reynolds MP: speeches

Speeches

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  There is only one Member for Strangford, and no one could mistake him for anybody else in asking a question of that sort. He asks about the definition of whether goods are at risk of entering the single market when they come into Northern Ireland. That is based on a percentage differential in the tariff between the United Kingdom tariff rate for a good or tariff line and that for the EU. I believe that a 3% differential puts a good coming into Northern Ireland potentially at risk and therefore considered for the higher tariff up front. In this case, that would be the EU one, and it would then be reimbursed. I understand that it is a more complex position for businesses in his constituency than for many other things, but we have to make this work. We have to be committed to working with businesses in his area, in Northern Ireland and in the wider United Kingdom, and specifically with political leaders, to ensure that we are getting this right. I am hearing, and I have heard many times, about how we can make that system smoother, more reliable and more efficient. We will take that away and work with our colleagues to do that. However, the system in place is balancing many different competing pressures, and there are no obvious or easy solutions. I was a parliamentarian when we went through all the potential outcomes when a different party was in charge. Let us make it work. Let us listen where we need to improve things, but let us recognise that this agreement fundamentally addresses some of the core problems that existed when this country chose to leave the European Union.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  Mr Speaker, I would have been more than happy to make it a statement, and I was hoping to be able to do so. We have negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%, and secured an agreement for associated car parts, recognising the vital role that this sector plays in our economy. For steel and aluminium, this deal will remove the 25% additional tariffs that were put in place earlier this year, reducing US tariffs on core steel products to zero. This will provide a critical lift for the steel industry, which has been brought back from the brink of collapse, allowing UK steelmakers to continue exporting to the US. This follows our intervention last month to take control of British Steel and save thousands of jobs in Scunthorpe. For pharmaceuticals and life sciences, this deal provides assurances that we will receive significantly preferential access in case of any new US tariffs, something that, so far, only the UK has secured. As the pharmaceutical manufacturing sector contributes £20 billion to the UK economy a year and employs around 50,000 people, this was a priority for us. On aerospace, we agreed that UK aerospace exports, such as Rolls-Royce engines and plane parts, will have a specific guarantee of zero tariffs as a result of this deal. This will be a huge boost to the sector, which supports 450,000 jobs in the UK. To secure this deal, we have made agreements with the US on beef, ethanol and economic security. On beef, we have agreed a new quota of 13,000 metric tonnes, and have reduced the UK tariff on existing US imports coming through a World Trade Organisation quota limited to 1,000 metric tonnes. Crucially, I can confirm this will comply with sanitary and phytosanitary standards, in accordance with the commitments that we have always made. The increase in the quota of 13,000 tonnes compares with the 110,000 tonnes in the Australia deal negotiated by the last Conservative Government. Even more importantly, the deal is reciprocal, meaning our UK beef farmers will have unprecedented market access to the US. Our farmers will be able to export their high-quality beef through an exclusive UK quota to a market of over 300 million people, providing unparalleled access to the world’s largest consumer market. On ethanol, we already import a significant amount of ethanol from the US and have agreed a duty-free quota capped at 1.4 billion litres. We are working closely with our domestic sector to understand its concerns and any potential impacts to businesses, including what more Government can do to support the sector. Finally, the UK and US will strengthen our co-operation on economic security and work together to combat duty evasion. We will continue to use investment screening measures already in place, and we will work together to protect our existing supply chains from any third-country investment that concerns either one of us. This Government will take a consistent, long-term and pragmatic approach to managing the UK’s relationships with third countries, rooted in our UK and global interests. As we have made clear, the aspiration on both sides is that this is just the beginning, with the US agreeing to deepen transatlantic trade and investment further, and to progress discussions towards a transformative UK-US technology partnership. This deal has seen jobs saved and jobs won, but it is by no means job done. The siren voices of the extremes can claim to be the voice of working people all they want, but we know that on matters of action on wages, security and opportunity, it is this Government who will make the difference. The deal comes on the back of our India trade deal earlier last week and on the promises that many Governments have made to secure trade agreements with the US. Although many people have talked about those deals, it is this Government that have got them across the line for every bit of the UK, including Northern Ireland.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I understand that the right hon. Gentleman feels strongly about this, but I say again to him that any difficulty or complexity is not caused by this trade agreement per se. There is an arrangement in place—one that the Government support and one that, I believe, those on all sides of the House adhere to—that manages the particular situation that Northern Ireland was put in as a result of Brexit. That is the reality. Where we have a lot of tension in the global trading system and differentials between ourselves and the EU—there are going to be differentials at times—it is incumbent on us all to manage them and ensure that Northern Irish businesses and consumers are getting the benefits of the trade agreements we are seeking, and that where there is that relationship to the wider European Union, we operate all those schemes in a way that is to their maximum utilisation and efficiency. I recognise that there are complaints about the duty reimbursement scheme, and we have worked with colleagues on that, but it is not these trade deals that caused that complexity; it was the particular situation that the previous Government needed to find a solution to—and, to be fair to them, they did find a solution. We, on all sides, are committed to honouring and making sure it is working.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  That has never been our position. It was never the position in our manifesto and it was never our position after the introduction of Brexit. The hon. Gentleman talked about the promises that Brexiteers made. I am not accountable for those and never have been, and frankly I am relieved about that. I would simply ask him whether an economy of our size—a G7 economy—can contract out trade policy to a customs union when we are not part of the political arrangements sitting behind that. I just do not see that as realistic. I hear the hon. Gentleman not get behind, for instance, the reduction in the Indian tariff on Scotch whisky from 150% to 40%, but he should promote his own interests a bit more strongly. Regardless of how Members voted in the referendum on the European Union, they should get behind the benefits for every part of the United Kingdom, whether in the deal with India or that with the US. It will not be the same as being part of the single market—that political decision was taken in the referendum—but despite that we can build the best possible position for every bit of the United Kingdom. I think we should look to the future, rather than relive the battles of the past. I know this will not mean much to the SNP, but the political uncertainty after the referendum while we did not have the new arrangements in place really did cause harm to the UK. It was in itself a detriment, and that is exactly why the continued obsession about the constitutional position of Scotland is not in the interests of Scottish businesses. We are looking to the future, and agreeing deals that benefit every part of the UK, and if the hon. Gentleman cannot get behind that, so what? We will defend Scotland’s interests, and make sure it is getting better access to every market in every bit of the world.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  Last week was a good week all told, on footballing and trade matters. You may be noting, Mr Speaker, that my voice is a little hoarse as a result. We on the Government Benches were elected on our manifesto commitment not to alter our sanitary and phytosanitary regime and our food standards. Some people said that a deal with the United States would not be possible if we stuck to that, but we did, and we have an agreement. That proves everything we said about why that issue is so important to us.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I understand the reasonable point the right hon. Gentleman is making—that perhaps large parts of the global trading system did not anticipate the position we find ourselves in today—but I believe it was drafted recognising that there would likely be divergence in trade policy between the United Kingdom and the European Union, and that is what we are seeking to manage. He mentions—I understand this, because it is the feedback we receive in the Department as well—things like the complexity and the functioning of the duty reimbursement scheme, and how it needs to work better. I hear that from businesses in Northern Ireland and I am hearing it very clearly in the Chamber today. Obviously, that relates to His Majesty’s Revenue and Customs and a Treasury responsibility, but I give him an absolute assurance that we are listening and we are committed to doing this. But it is incumbent on all of us to make it work.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I am grateful to my hon. Friend for his question, and for his industrial expertise. I promise to have that meeting. Whenever trade arrangements have an impact on domestic industry, it is important that we work as a partner to industry in order to address that. He is right to say there are two substantial bioethanol plants in the United Kingdom that might be affected, and we are already setting up a process to work with them, as he has requested.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I regularly meet all colleagues across the United Kingdom to keep them updated on matters of trade. Those were specific meetings in relation to what was being negotiated with the US. The final decision on any trade agreement is with myself and the Prime Minister. We do not seek formal agreement per se from colleagues in the devolved Governments, but we keep them informed as to what we are negotiating, the kinds of issues coming up on the other side and how we deal with that. It is not for me to reveal the content of those conversations, but the kind of reasonable concerns being aired in the Chamber today, about how things like the reimbursement system works and the feedback from Northern Ireland businesses, were of course a part of that conversation. We committed again, as I have done here at the Dispatch Box, to work with them on effective solutions to those problems.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  With your permission, Mr Speaker, I am grateful to be able to give a statement today, following that given by my right hon. Friend the Minister for Trade Policy and Economic Security on Thursday, to update the House on the agreement we have reached with the United States and specifically to address the important circumstances of Northern Ireland. I can confirm that we have closely considered the impacts of this agreement on Northern Ireland. I have personally spoken to the First Minister and Deputy First Minister twice while negotiating this deal, the first time alongside the Prime Minister. I want all Northern Ireland colleagues to know that the importance of Northern Ireland in this deal, and all trade deals, is paramount to me personally, and I commit absolutely to working with any colleague from Northern Ireland on the implementation of agreements of this sort. First, as Northern Ireland is part of the UK’s customs territory and internal market, Northern Ireland exporters can access the US market under this deal on the same preferential basis as the rest of the UK. Secondly, this deal does not affect how imports to Northern Ireland operate. US origin goods will be able to benefit from this deal where they are not at risk of entering the EU. As a result of the Windsor framework, Northern Ireland businesses importing eligible US goods under this deal can avoid any unnecessary duties with established schemes such as the UK internal market scheme. Thirdly, there is a comprehensive tariff reimbursement scheme. The difference between the UK and EU duty can be claimed back, so long as it can be demonstrated that the goods did not enter the EU single market. The customs duty waiver scheme also allows at-risk duties to be waived entirely regardless of the destination, subject to an overall limit. As we have said all along, we have continued to act in the best interests of all UK businesses, which very much include those in Northern Ireland. More broadly, I can confirm that this agreement saves thousands of jobs, gives the UK an advantage over other countries in relation to trade with the US, and confirms a process of potentially securing a much wider trade agreement between our two countries. The UK-US trading relationship, which is already worth £315 billion, is important and growing. We have £1.2 trillion invested in each other’s economies, employing around 2.5 million people across both our countries. That is why this deal was so important. Throughout our negotiations, businesses have consistently praised our calm-headed, pragmatic approach to working with President Trump’s Administration and I thank them for their engagement, their support and their advocacy. Turning to the detail of the agreement, in no industry was the potential impact of tariffs more acute than in our automotive sector. We have therefore negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%—

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I thoroughly endorse that. There are some significant headline wins from these trade agreements. Obviously, we are focused in the main on headline reductions in tariffs—whether that is whisky going from 150% to 40% under the India deal, or the removal of sectoral tariffs through the US deal—but there are other things. I have mentioned procurement from the Indian Government, but what really interests me is how we can remove frictions for smaller businesses and how we could have greater access to the US market. Trade—liberalised trade and free trade—is one of the absolute certainties for growth, for jobs and for investment. That is why I want all colleagues to be behind these deals. At times in the UK’s history, there has been a genuine cross-party consensus on the benefits that trade can bring, and I want to see every colleague on either side of the Chamber get out there and sell the benefits to businesses in their own communities.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  Absolutely. Whenever any trade agreement of any sort is agreed, there will obviously be domestic impacts if our trading partners have requested further access to the UK market. That is particularly the case for the agreement on bioethanol. Senior officials from my Department have been meeting representatives of the domestic industry, and I have a personal meeting set up—on Wednesday of this week, I believe. A lot of the issues we need to address are wider than what has been agreed through this trade agreement, but our commitment to working with the domestic industry to help manage any trade-based transitions is absolute.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  I am grateful to the hon. and learned Member for bringing this urgent question and for putting his community’s concerns on the record; I understand how strongly he will feel about them. There is much that I could say and criticise about the previous Conservative Government’s approach to a lot of things, but the approach that they took with the Windsor agreement to balance the obvious, practical problems and realities of Brexit—of leaving the single market when Ireland is in the EU and the customs union—alongside our commitments under the Good Friday agreement to observe what we have all signed up to and want to support is fundamentally better than when they threatened to break all kinds of international laws and agreements with key partners. It was the better way to find a way through them. I absolutely accept and understand that this issue is difficult and complicated, but I can tell the hon. and learned Member that that is not just the perspective of the UK Government, in terms of working with our colleagues and ensuring that these issues are reflected in the agreements, but what we hear from the other side in these agreements. When we explain what we need to see happen around agreements such as this, we see that the US is absolutely committed to peace, to the Good Friday agreement and to the sound working of the Windsor agreement. The hon. and learned Member has raised a number of specific questions, and I will ensure that we deal with them. We will meet with him and a delegation of MPs and ensure that we are in correspondence with him, as we have promised to be with the First Minister and Deputy First Minister. This approach is complicated, but it is far better than the one we briefly glimpsed in that difficult period when the Conservative Government did not have the Windsor agreement in place. Fundamentally, there is a difference between goods entering Northern Ireland and therefore entering the UK and goods entering Northern Ireland if there is a risk of them entering the single market more widely. This is a sound system to deal with that, and I accept that we must make it work. This is not our system, but we recognise what the previous Government were trying to do. Whether the hon. and learned Member wants it or not, I offer him an absolute, unequivocal agreement that we will work with him on any concerns he or his community have to ensure that we get this right to the maximum degree possible.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  Mr Speaker, I am incredibly grateful for your forbearance. If it is okay, I will continue to these words, given how important I know the matter is to all Members of the House.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  First of all, I am extremely grateful to the right hon. Gentleman for pointing out that, across this House, there should be unanimous agreement that trade agreements with the United States and India are in everyone’s interests. I have been a bit dismayed by some of the feedback from those on the Conservatives Benches—not Back Benchers, but Front Benchers—because we should all recognise that such deals are important not only for our bilateral trading relationships with those key markets and for the potential growth that comes from that, but because they send a message to the rest of the world about free, fair and open trade at a time when that message is very much needed. Feedback on the performance of the duty reimbursement scheme has been significant and we are working with partners in Northern Ireland, and with the Treasury, to see how we can improve the scheme. I think people recognise the fundamentals of the scheme and what it is trying to do, but there are complaints about how easy it is to access. I recognise that and commit to working on it. We have a whole range of export programmes, as the right hon. Gentleman might be aware, but how exciting it will be to have businesses from Northern Ireland and every part of the UK take advantage of some of the new, liberalised trading relationships that we have in place. They are not only preferential to what we have had in the past, but preferential to what other countries have. For instance, the deal with India offers access to Indian Government procurement that no other country in the world has. I am excited by that, and I hope other colleagues are too.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  The hon. Member will have heard my earlier answers. I believe that Parliament should play a role in scrutinising trade legislation, and indeed any international agreement, but it is not the case in the United Kingdom that we have formal “up or down” votes on any treaty. We vote on the implementation of those agreements, and the responsibility for negotiating and agreeing those is with the Government, rather than Parliament. I am not aware of any substantive proposal to change that system. It is certainly not something that the UK Government today are committed to doing. The hon. Member talks about the impact of leaving our existing trade relationships in the customs union. That was part of that referendum. I understand how people feel intensely about that. [ Interruption. ] People have different interpretations of why they voted. We can relive the argument forever or we can focus on the future, on reducing barriers to trade and on the kinds of agreements delivering advantages for every part of the UK, and that is exactly what we are doing. Had we in this case still been part of the customs union, there would be no breakthrough with the US or the India trade deal. All colleagues need to balance up the two things alongside each other. In relation to the automotive sector, that lack of a breakthrough would have meant significant job losses this week in the United Kingdom, and that would have been very painful for all of us.

• 1 May 2025 · Trade: US Tariffs · Hansard source

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  As my right hon. Friend knows, I always welcome communications from the Select Committee and the constructive and helpful role it plays in all these important matters. He is right to say that the business community in the UK strongly backs the Government’s calm and level-headed approach to these difficult issues. The automotive sector is one of our major priorities. It is the sector that has the most exports because of the brilliant success we have with automotive exports to the US. It remains an absolute priority for us in any negotiation to secure what we need, which is the continuation of access to US markets in a way that is complementary to the US and that meets the ambitions of US consumers. Frankly, I do not see any argument for making that relationship more difficult through the long-term imposition of tariffs. We are closely engaged in a number of important meetings this week with senior automotive leaders, and we will continue to prepare that, working to keep the Select Committee involved.

• 1 May 2025 · Trade: US Tariffs · Hansard source

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  As we have heard, the US is our largest single country trading partner, with total trade worth £315 billion in 2024, representing 18% of total UK trade. More than a million Americans work for UK-owned businesses and vice versa. We have regular and ongoing constructive negotiations with our US counterparts, including some this week, on securing a wider economic deal to benefit UK businesses and our economy. In those talks, we continually push the case for free and open trade. Nobody wants to see a trade war, so our focus is on keeping calm and continuing to negotiate in the interest of UK businesses and consumers.

• 1 May 2025 · Trade: US Tariffs · Hansard source

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  First, let me assuage the hon. Gentleman’s concerns: that is a misreading of how the US is approaching these negotiations. The US has perhaps more complex issues with some countries that will take more bandwidth on its side. As I have always said, the existing relationship between the UK and the US is incredibly strong, reciprocal and mutually beneficial. I see far fewer issues to negotiate to get to that outcome. Again, I would push back on anyone attempting to put the case that the decisions we make must be based on either the EU, the US or any other partner being our principal partner. The role for the UK is to position ourselves in this challenging world with a genuine strategic advantage because we do things that improve our trading relationship with the EU; we secure this US deal; and we secure the deals with India, the Gulf and other key markets. I am pragmatic about where the UK’s national interest lies and am absolutely confident that it is possible and desirable.

• 1 May 2025 · Topical Questions · Hansard source

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  The shadow Secretary of State points to the statement in which I said that in the previous budget there was a £2.5 billion allocation for the green steel fund. Of course, that came in addition to the £500 million for the Port Talbot transformation, which was agreed under the previous Government but was not in the Departmental accounts—as he knows, it was in a heavily oversubscribed Treasury reserve. Yes, the green steel fund will be there to support what we have had to do at Scunthorpe. Again, as I said when Parliament was recalled, the question there was whether we would pay a significant amount of money for the total loss of the business; give a large amount of money to Jingye, but without the certainty that it would be able to deliver on that plan; or step in and take the action that we did, which I am confident was the right option for value for money and for Scunthorpe.

• 1 May 2025 · Topical Questions · Hansard source

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  When we took office, years of Conservative neglect had left our steel industry on the brink, but while others were willing to let the heart of British industry go cold, we were not. I welcome the recent conversion of Opposition colleagues to an active industrial policy, but make no mistake: while others may talk tough, only Labour can be trusted to act in the interests of British workers. When the future of British Steel was on the line, we took immediate action. I can report to the House that thanks to our intervention we have secured the raw materials to keep Scunthorpe’s blast furnaces lit, and British Steel has cancelled the redundancy consultation, which put 2,700 jobs at risk. It was an honour to visit Scunthorpe and Immingham port recently to meet British Steel workers, and I am enormously grateful to them for their resilience, determination and hard work during a turbulent time. There is still much to be done to protect and rebuild our steel industry as a whole after a decade of failure, and that is why we are committed to a £2.5 billion clean steel fund and to work with industry on our steel strategy. We have always said that steel has a bright future in this country, and our actions over the past month have shown that we meant it.

• 1 May 2025 · Topical Questions · Hansard source

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  We should always be careful about what we read in some newspapers. [ Laughter. ] The hon. Gentleman knows that we cannot give a running commentary on trade negotiations, but the UK-India talks have been fruitful this week. I am optimistic and excited for the future of what is a key relationship bilaterally and for the signal it can send to the rest of the world.

• 1 May 2025 · Topical Questions · Hansard source

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  I welcome the progress being made in the hon. Gentleman’s constituency—I thought he was about to invite me there, which is often the case at topical questions, but I sadly did not manage to secure an invitation. I have been absolutely clear: I genuinely wish the inheritance of this Government was a better one in economic terms than the one we received. I genuinely wish the Conservative Government had not left that black hole and that we had not had to make difficult decisions, but life is sometimes about difficult decisions, and Government and business certainly are as well. Without investment in infrastructure, without a serious approach to the fiscal rules, which was absent for much of the last Government, and without investment in the health service, we would struggle. I welcome the success he is talking about; I am always keen to work with him on that.

• 1 May 2025 · Topical Questions · Hansard source

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  The amount of working capital provided to British Steel to date stands at £94 million, which is considerably less than if we had given a large amount of money to Jingye, or if we had had to deal with the complete loss of the entire British Steel site and business.

• 1 May 2025 · Topical Questions · Hansard source

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  I feel that is a question for either the Treasury or the Department for Environment, Food and Rural Affairs, but the hon. Lady made it well. Agriculture features prominently in trade and business, and I will ensure that she gets the right opportunity to put questions about taxation to the Chancellor.

• 1 May 2025 · Topical Questions · Hansard source

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  I can absolutely give that assurance. I have had meetings about this issue just this week. We are ambitious for the just transition for Grangemouth and recognise the issues not just with the refinery but with the polyethylene cracker. We will get to work and set that meeting up.