Contribution
My Lords, we on these Benches welcome free trade. It is a cornerstone of a prosperous and competitive economy. It benefits everyone, from workers to businesses and from consumers to industry sectors. Trade allows us to access a broader market, to promote innovation and to create jobs. When done right, it provides opportunities for the UK to grow and to succeed on the global stage. This deal is a reminder of one of the key benefits of Brexit. No longer bound by the limitations of collective EU decision-making, we now have the freedom to forge our own trade agreements, tailored to the strengths of our economy and aligned with our national interest. That sovereignty over trade policy is a fundamental asset and one that, used wisely, can bring real and lasting prosperity. I confess that I am at a loss to understand why the Government have repeatedly said that this is a matter of opinion and not fact.
However, while we acknowledge the importance of trade agreements and the positive elements of this UK-US deal, we must approach it with a critical eye and an understanding of the broader context. Trade deals are not simply about negotiating numbers or quotas; they must also be about fairness, sustainability and long-term growth. In this case, I am concerned that the deal, while a step in the right direction, does not go far enough in delivering the kind of comprehensive, ambitious agreement we need.
The agreement announced with the United States contains some very welcome steps—for example, tariff reductions on cars, access for UK beef producers, and the removal of punitive levies on British steel and aluminium, to name but a few. The Government are right to highlight the thousands of jobs that will benefit from these provisions. However, take, for example, the automotive sector: there are more questions that need answers. Reducing tariffs from 27.5% to 10% is undoubtedly welcome, but this deal covers only a relatively small quota of 100,000 cars, a figure that represents just a fraction of total UK car exports. What happens when that quota is reached? Are we going to see tariffs increase again? Where are the long-term assurances for our manufacturers and workers? A more strategic and forward-thinking approach is needed.
This cannot be the end of the road. If we are to make the most of our new trading freedoms, we must push for a comprehensive free trade agreement, one that goes beyond quotas and partial tariff relief and that delivers true long-term certainty for British businesses, across every sector. The 10% reciprocal tariff on a range of UK exports remains in place, affecting sectors that are critical to our industrial base and our export strength. The Government must be clear. When will negotiations begin to eliminate these tariffs, or have they already started? We urge Ministers to move beyond vague commitments that work will continue and to set out a clear timetable and a strategy for achieving a more ambitious deal.
There is particular disappointment in the pharmaceutical sector, for example, where the UK has not yet secured a carve-out from remaining tariffs. This is an industry where Britain leads the world. We are talking about jobs, innovation and the secure delivery of life-saving medicines. We must see more urgency from the Government on this front. What of the creative industries, specifically film and television? The failure to secure any protection for this sector is alarming. The threat of 100% levies on UK-made films exported to the US remains a serious concern. This is a world-leading industry with the potential to deliver billions to our economy and to showcase British culture on the global stage. It deserves far greater attention from the Government.
We on these Benches are not here to oppose free trade; we champion it. However, we want to see trade deals that are ambitious, balanced and comprehensive, and that reflect the best of Britain and support all our key sectors, from farmers to filmmakers and from scientists to steelworkers.
The Minister was somewhat vague in answer to the question from the noble Lord, Lord Purvis of Tweed, yesterday on parliamentary scrutiny of the deal. In an effort to save her from writing many letters, perhaps she can update us on this now.
This deal is a good start, and that deserves to be recognised, but the Government must now finish the job. We call for greater transparency, clear timelines and firm commitments to extend this agreement into a full and fair free trade deal that truly reflects the potential of post-Brexit Britain.