Source · Select Committees · Business and Trade Committee
Recommendation 11
11
Accepted
No detailed agreement reached on steel and aluminium tariff-reducing quota, causing sector uncertainty.
Conclusion
While the General Terms of the Economic Prosperity Deal outline an intention to establish a tariff-reducing quota for UK steel and aluminium exports, no detailed agreement has yet been reached. Key issues remain unresolved including the size of the quota, which products will qualify and the conditions attached. This continued uncertainty is affecting planning and investment decisions in the sector. (Conclusion, Paragraph 73)
Government Response Summary
The government addresses the uncertainty by stating the UK will maintain a preferential 25% tariff rate on steel and aluminium exports to the US. It also details several other actions taken to support the steel industry, including new trade measures and funding.
Government Response
Accepted
HM Government
Accepted
The UK and US are both committed to protecting our critical steel supply chains. In September, the US confirmed that the UK will not face an increase in steel and aluminium tariffs to 50% and will remain the only country in the world to benefit from a preferential 25% rate on steel, aluminium and derivative exports to the US, thanks to the EPD. This provides the certainty that UK industry has long been calling for. We have also taken bold action to support the steel industry, including: • Introducing new and strengthened trade measures to protect steel producers via the UK’s Steel Safeguard. • Reducing electricity costs for steel producers through our increase to the relief offered through the British Energy Supercharger, by uplifting the Network Charging Compensation Scheme from 60% to 90% • Confirming funding in the Spending Review for a £500 million grant to Tata Steel in Port Talbot as part of a £1.25bn transformation deal to construct an Electric Arc Furnace. • Changing government procurement rules, via the publication of a new Steel Public Procurement Notice, to ensure UK-made-steel is considered for all public projects and to use exemptions in buying rules to support steel makers wherever possible. • Committing to publishing our steel strategy by the end of this year that will set a long-term vision for a revitalised and sustainable industry and the actions needed to get there.