Contribution
Madam Deputy Speaker, I apologise for the delayed submission. We respect the processes of this House, and I will ensure that that does not happen again.
With permission, I will update the House on Argentina’s escalating campaign against individuals and companies in the United Kingdom and around the world that are involved in the lawful economic development of the Falkland Islands. Let me state from the outset that the Falkland Islands, South Georgia and the South Sandwich Islands are British. The United Kingdom has no doubt about its sovereignty over them and their surrounding maritime areas.
As the Prime Minister told the House yesterday, in conversations at the UN General Assembly, he and President Trump discussed the islanders’ clear and declared will to remain British. The Prime Minister reiterated that message to the UN General Assembly. Let me repeat what he made clear to this House yesterday:
“we will also always do whatever it takes to uphold”—[Official Report, 12 October 2026; Vol. 791, c. 24.]
the will of the Falkland Islanders. The Foreign Secretary and I have reiterated this Government’s commitment to the Falkland Islanders’ right to determine their own political and economic future and livelihoods. I made that point very clear in my public statement, which was published online on 30 September, and in my subsequent meetings with members of the Legislative Assembly. I welcome Jack Ford, Chair of the Falkland Islands Legislative Assembly, to the Gallery today; I know that the whole House will want to show him and the Falkland Islanders our full support.
In recent weeks, we have heard inflammatory remarks from President Milei at the UN General Assembly and increasingly aggressive public statements from the Argentine Foreign Minister. The Argentine Government have threatened sanctions and warned that they will pursue criminal measures against businesses and individuals connected directly and indirectly to the Sea Lion project. The Sea Lion field lies on the Falkland Islands continental shelf. The project is lawful and regulated by the democratically elected Falkland Islands Government. Argentina has no jurisdiction over it.
Let me be absolutely clear: this Government will not stand by while Argentina uses economic coercion against the people of the Falkland Islands. We will do whatever it takes to support them. What is particularly disappointing about this is President Milei’s brazen attempt to use the people of the Falkland Islands as some sort of political prop ahead of Argentina’s elections next year. We will not allow the Falkland Islanders to be used as a tool of Argentine domestic politics.
The Government of the United Kingdom are responding in four ways. First, we have confronted Argentina directly. On 17 September, the Minister for Latin America, my hon. Friend the Member for Bridgend (Chris Elmore), made clear our position to the Argentine ambassador and rejected the attempted application of Argentine law to the Falkland Islands. He also reaffirmed the islanders’ right to develop their natural resources. Our message is unequivocal: the measures announced by President Milei on 3 September, threatening companies and individuals for lawful commercial decisions, are economic coercion. They will not change the United Kingdom’s position or weaken our commitment to the rights and wishes of the Falkland Islanders, nor will they halt lawful economic activity. We will respond firmly and promptly to Argentine threats to apply measures beyond Argentina’s jurisdiction, which are intended to frighten businesses. Such conduct damages legal certainty and confidence in Argentina as a reliable economic partner.
Secondly, the Government are engaging with affected businesses to understand their concerns and make clear the Government’s position. The Department for Business, Innovation, Science and Trade, working closely with the Foreign, Commonwealth and Development Office, is having regular discussions with the Sea Lion operator and its supporting supply chain. Our message is straightforward: legitimate commercial activity in the Falkland Islands remains lawful, and the British Government stand behind those engaged in it. We are also speaking to wider UK business interests to explain the Government’s position and understand the potential consequences of Argentina’s actions.
Thirdly, I can confirm that the Business Secretary will, subject to the necessary parliamentary protocols, deploy the powers available to him under the protection of trading interests legislation against any Argentine measures that seek to influence or regulate lawful activity beyond Argentine jurisdiction. These steps will provide additional protection for UK businesses against attempts to compel them to comply with measures that Argentina is trying to enforce outside its jurisdiction. They will also demonstrate that the Government are prepared to use the available tools to defend lawful British commercial activity. We will continue to talk to businesses as the situation develops to understand how best to support their operations. Let me emphasise that this action responds to Argentina’s attempted extraterritorial application of its domestic measures.
Fourthly, we are mobilising international partners. Our diplomatic network, acting on the instruction of the Foreign Secretary, is engaging to set out what Argentina’s conduct means for international businesses, secure supply chains and predictable global commerce. We are engaging G7 and G20 partners and Governments across Europe, the Americas and beyond. We urge countries that value open markets, legal certainty and stable trading relationships to stand against the intimidation of companies undertaking lawful business.
Finally, I say to this House, and the Government of Argentina, that the United Kingdom will prepare additional measures if this situation persists. They will be legal, proportionate and, let me assure the House, robust. The United Kingdom never sought this confrontation with the Argentinian Government, and less so with the Argentinian people. We do not want to see wider implications for our two countries. Let us not forget the reconciliation and progress we have seen since the events of 1982. Next year, we will mark 45 years since British forces liberated the Falkland Islands. For some of those veterans who fought in that conflict, this may be one of the last major anniversaries they see. To mark the occasion, celebrate the liberation and remember all those who paid the ultimate price for the freedom of the Falkland Islands—they should never be forgotten—today I can announce that the Foreign, Commonwealth and Development Office, in partnership with the Ministry of Defence, will support commemorations on the islands and here in the United Kingdom.
There should be no doubt that the Government will defend the Falkland Islanders from bullying and threats, and defend their right to self-determination. Every part of this response is being developed in close co-ordination with the democratically elected Falkland Islands Government. The islanders’ interests and wishes remain at its heart. The principle at stake is simple: the Falkland Islanders have the right to determine their own future. In the 2013 referendum, 99.8% of those voting, on a turnout of 92%, chose for the Falkland Islands to remain a British overseas territory. Their wishes could not have been clearer. The United Kingdom will remain open to dialogue and practical co-operation with Argentina, where that benefits both countries and our peoples. [Interruption.] The right hon. Member for Rayleigh and Wickford (Mr Francois) would do well to listen to my statement. Progress must rest on international law and respect for the rights and wishes of the Falkland Islanders. Firmness in defending those principles is entirely consistent with keeping the door open to diplomacy and dialogue.
On 28 September, the Government of Argentina formally notified the United Kingdom that they were commencing arbitration proceedings under annex VII of the United Nations convention on the law of the sea, or UNCLOS. Argentina demanded that the United Kingdom prevent hydrocarbon activity in the North Falkland basin in relation to the Sea Lion project. Argentina threatened to seek provisional measures from the International Tribunal for the Law of the Sea. I can confirm that the UK Government’s intention is to engage with this process; that is consistent with our long-standing position in respect of international courts and tribunals. On Sunday 11 October, the British embassy in Buenos Aires delivered our formal response to Argentina’s notification. That response sets out clearly the United Kingdom’s position. The House will understand that while legal proceedings are contemplated or under way, I will not provide a running commentary, but I assure Members that we will defend the interests of the Falkland Islanders and the United Kingdom robustly.
At the same time, I want to be clear about what Argentina’s action does not do. Its notification does not constitute a judgment by an international court or tribunal. It does not invalidate licences issued by the Falkland Islands Government. It does not alter the islands’ regulatory authority, and it does not require lawful activity on hydrocarbons development to cease.
His Majesty’s Government stand shoulder to shoulder with the Falkland Islanders. We are in no doubt about their sovereignty. We will defend their security, their livelihoods and their right to determine their own future, while remaining ready to resolve differences with Argentina through diplomacy, dialogue and international law. The United Kingdom’s resolve is absolute. I commend this statement to the House.