The Government is sending out the message that it will stand out for UK companies in the face of unfair tactics by rivals, including possible quotas on cheap Chinese steel
Labour has vowed to “protect” UK firms from cheap and unfair foreign competition.
In a marked change of tone from previous governments, it will champion a back British message in its new Trade Strategy. Others see the plan as a bid to further remove trade barriers with the EU, potentially angering Brexit-backing voters. Business and Trade Secretary Jonathan Reynolds will say: “We will not sit by idly while cheap imports threaten to undercut UK industry.” Trade Minister Douglas Alexander called it “pragmatic patriotism”. He added: “In this changed and challenging world, we will promote what we can and protect what we must to advance the UK’s national interest.”
Sources insist the pivot is not akin to US President Donald Trump’s protectionist policies. But it is a recognition that UK companies have been at a disadvantage compared to those in many other countries, with the aim of levelling the playing field.
Examples could include quotas to prevent the “dumping” of cheap state-subsidised Chinese steel given a global over-supply and fears for UK producers. Labour has also pledged to cut energy costs for UK manufacturers through its Industrial Strategy, unveiled earlier this week.
Shevaun Haviland, director general of the British Chambers of Commerce, says the government can do its part through its huge spending power. She will tell the BCC’s annual conference on Thursday, at which Mr Reynolds is due to speak: “Government must use the power of its purse. It must buy British. We need government to keep its promise to boost British businesses through its infrastructure strategy, and to apply these rules to all areas of government procurement. Ministers say “trade defences” will be toughened up with new tools and safeguards to “better protect vital industries from global threats”.
As well as trying to combat unfair imports, they will also vow to unlock £5billion worth of opportunities for UK exporters through a new fund.
It comes against what the government will say is a backdrop of turbulent economic times, “resurgent protectionism” elsewhere and unfair trading practices creating “significant challenges for businesses and industries across the whole of the UK”.
Mr Reynolds said: “The UK is an open trading nation but we must reconcile this with a new geopolitical reality and work in our own national interest . Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before.”
Prime Minister Keir Starmer, said: “What works for business, works for Britain. It means more jobs, more opportunities, and more money in people’s pockets.”
TUC General Secretary Paul Nowak said: “This is an important step forward to a trade agenda with workers’ rights and good jobs at its heart – and it represents a marked departure from the Conservative approach of treating trade deals as mere PR exercises. t’s right that the government is focusing on removing barriers to trade with our largest trading partner – the EU – on which thousands of quality jobs depend, and it’s vital that the government continues to show ambition in its trading reset with the bloc.”
Naomi Smith, Chief Executive of Best for Britain, which campaigns for closer trade ties with the EU, said: This plan correctly identifies the importance of restoring frictionless access to reliable EU markets for British farmers, but the gamechanger will be doing the same for all British industries, which independent analysis shows is the best way to significantly boost the UK economy and bring down prices for British consumers.”
Alongside the Trade Strategy, the government also published a six-week consultation for views from across the steel supply chain to ensure continued protection for UK steel producers, jobs, and supply chains beyond the expiry of current World Trade Organisation safeguards in June next year.