Jonathan Reynolds – 2024 Statement on the UK Steel Safeguard Extension
The statement made by Jonathan Reynolds, the Secretary of State for Business and Trade, in the House of Commons on 18 July 2024.
I would like to make a statement on decisions made by the previous Government in relation to the UK’s steel safeguard measure.
A successful steel industry is critical to our economic future, and we need the right policy environment to build sustainable growth in the UK and to ensure we respond effectively to unfair overseas trading practices and protectionist measures.
Trade remedy measures enable Governments to protect their businesses from unfair foreign trade practices. They tackle issues of dumping or of unfair Government subsidies or, as in the case of safeguards, give businesses time to adjust to unforeseen increases in imports.
The UK has, since 2018, applied a safeguard measure on imports of certain steel products. A safeguard measure imposes a tariff on specified product imports. This provides a level playing field and protects domestic producers from serious injury caused by unforeseen increases in imports giving them the needed time to adjust.
The UK’s safeguard measure applies on 15 different steel product categories and was set to expire on 30 June 2024 under UK law. The Trade Remedies Authority conducted an investigation to determine whether or not there would be injury or threat of injury to domestic steel producers without the safeguard. They considered evidence from both domestic and international industry and organisations. After careful consideration, the Trade Remedies Authority recommended to the previous Secretary of State for Business and Trade that the measure should be extended on all 15 product categories for a further two years, to 30 June 2026.
The previous Government considered the evidence in the Trade Remedies Authority’s recommendation and wider matters in the public interest, including the UK’s obligations under the relevant World Trade Organization agreement. They took the decision to extend the measure on all 15 categories for a further two years, to 30 June 2026. The decision to extend the measure on five of the 15 product categories represented a departure from the UK’s obligations under the relevant WTO agreements. The previous Government balanced this against the evidence the TRA found in their investigation and the UK’s public interest. As shadow Business and Trade Secretary, I supported this decision.
The previous Government also decided to extend the application of the suspension for Ukraine to 30 June 2026. The extension review conducted by the Trade Remedies Authority did not consider the future of the existing suspension for Ukraine as it was beyond the scope of their investigation. The previous Government decided that it was in the UK’s public interest to extend the suspension for Ukraine to 30 June 2026. This decision was taken to ensure that imports of Ukrainian steel will not be subject to the additional safeguard quotas and duty. This is in line with the UK’s commitment to support Ukraine in the war with Russia, which the Prime Minister has reaffirmed to President Zelensky.
In taking this decision with respect to the Ukraine suspension, UK legislation requires the Secretary of State to lay a statement before the House to explain why such a decision was taken. Now that Parliament has been reconstituted, I am laying this statement to make the House aware of the decision taken by the previous Government.
