UK-US Bilateral Relationship

[Sir John Hayes in the Chair]

I beg to move,

That this House has considered the UK-US bilateral relationship.

It is a pleasure to serve under your tutelage, Sir John, and let me introduce you to a fine Scots word: fankle. It means a tangle, or a confusion. President Donald Trump knows what it means, because his mother was a Scot from the Isle of Lewis, and the White House team know one when they see one. And they see one right here in Britain, as our foreign policy is disjointed, dysfunctional and callow.

The White House has fired the first shots in a trade war, with tariffs and the threat of tariffs shaping policy. The EU is under this sword of Damocles, but we could avoid the sort of damage to key exports, such as Scotch whisky, that we saw when Mr Trump was last atop Pennsylvania Avenue.

Overall, the UK enjoys a balanced scorecard on trade with the US, although our preponderance of services over goods could yet make us a target. Should we side with the EU? The UK exported £179 billion-worth of goods and services to the US in 2023 and we imported £112 billion-worth of US goods. Looking at individual countries, the US is by far our largest export market; Germany is a distant second, with an export market about a third the size of America’s.

In today’s world, America innovates, China imitates, Europe regulates and Britain prevaricates. Just as President Trump is freeing US industry from its shackles, here Labour is imposing more taxes, more red tape and self-harming nonsense such as the ruinous Employment Rights Bill—the union barons’ charter. Labour wants to offshore decision making to courts, to outsourced and unelected lawyers, and to take dictation from the EU. And they want to force through the Chagos fiasco, Britain’s biggest capitulation since Singapore in 1942—although we did at least fire some shots 83 years ago.

Can the Minister offer some reassurance today that instead Britain will get off its knees, use the freedoms of Brexit, and stride confidently and boldly into the world, striking our own deals? The Russian bear is scratching at our back door, we feel the hot breath of the Chinese dragon on our neck and under President Trump the American eagle is starting to spread its wings.

Among all that, which way to turn, for our Foreign Secretary seems like a cork in a raging sea? Labour’s instincts in time of trouble are to run for the skirts of nanny Europe, but Europe is fading, with sclerotic growth amid political turmoil. Its two great powers, France and Germany, are rudderless and drifting. And although Labour would have us believe that it is resetting relations with the EU, the reality is that our position is pathetic.

The Prime Minister cannot say what he wants from Europe, while they have their invoice already made out; they want a youth mobility scheme that would put yet more pressure on our own children who are seeking their first job. And Europe has avaricious eyes on that old sacrificial lamb—fish from our pristine waters—and to hell with British coastal communities who rely upon the sea’s bounty.

Also, we are cosying up to China. The Chancellor is fresh back from “Operation Kowtow” with a few cheap baubles, despite China’s anti-competitive trade practices, even as the diggers move to build Beijing’s London embassy astride critical data cables. We risk feeding the dragon that one day may immolate us.

What then of the United States, which for so long has been our ally under the umbrella of the much-vaunted “special relationship”? Surely the choice is obvious, yet it would mean Labour dealing with a man that it dispatched activists to defeat in the US election. He is, to quote that master diplomat the Foreign Secretary,

“a woman-hating, neo-Nazi-sympathising sociopath. A tyrant in a toupee.”

I will also quote Labour’s choice of ambassador to Washington DC, who called the returning President a “bully”, “reckless” and a “danger to the world.” The Damascene conversion that our diplomats have lately undergone means that Mr Trump is now “a nice man”. And as for KKK jibes? Apparently, they are “old news” that will matter not a jot on Capitol Hill. However, they neither forgive nor forget; the die is cast. What is said cannot be unsaid by fawning. And although the Foreign Secretary boasts of having a meal with the President, perhaps the Minister who is here today could confirm both how little access the Foreign Secretary had to the President and just how massive the humble pie was that he was forced to pretend he enjoyed.

Huge though those problems are, they are nothing compared with the Chagos deal, which will see us cede the strategic joint UK-US Diego Garcia base to distant Mauritius and pay billions to lease it back. We saw the unseemly haste with which Labour wanted to push that deal through, in the face of warnings that Mauritius was moving ever closer to both expansive China and malign Iran.

Now the Foreign Secretary is moving at pace again, scuttling to try to explain to Secretary of State Marco Rubio that the deal is just the job to see off a legal opinion—not a decision—that there might be an issue with the Chagos islands and Diego Garcia in particular. Yes, negotiations were begun by the previous Government but we did not conclude them. We would certainly not have considered the ludicrous terms on offer, where we take something of ours, give it away and then pay through the nose to borrow it back.

The Americans already see what this is: a supine Britain, afraid of a possible legal setback, falling over itself to avoid offending a foreign Government. It is nothing short of a national humiliation. We have a Labour Government frightened of their own shadow, happier to be soft-touch law takers not lawmakers, who would have this sovereign Parliament infantilised and push around by bewigged silks and the Brussels secretariat.

This Government are more worried about the price of Oasis tickets than the cost of making our elected representatives subservient to quangos and arm’s length bodies, and now to the National Assembly in Port Louis, Mauritius, which is further from Diego Garcia than London is from Rome. Aboard his luxury jet—he seems more interested in a Gulfstream G700 than the G7 countries—whisking him to the US, the Foreign Secretary might consider a quote from Mr Rubio:

“Compromise that’s not a solution is a waste of time.”

Against that sort of clear thinking, our toadying diplomats look like battery toys plugged into the mains: out of their depth, out of touch, out of control. China knows the true value of bases such as Diego Garcia. It is even building artificial islands—the great wall of sand—in the South China sea as unsinkable aircraft carriers. The US will rightly torpedo Labour’s woeful Chagos sell-out.

I congratulate my hon. Friend on securing this important and timely debate. Does he agree that, despite the best efforts of the Labour Government, there is a long-standing and enduring relationship between the USA, Scotland and the rest of the UK? More importantly from our perspective as Scottish MPs, Tartan Week in New York is a good example of that strong relationship between the US and Scotland.

I agree completely. I was privileged to join my hon. Friend at Tartan Week in America, which is a key showcase for all things Scottish. We are lucky that President Trump is effectively an Ayrshire businessman, since he owns a golf course in Scotland.

If the Chagos deal were in effect vetoed by America, would our Foreign Secretary dare continue, in the event of such mortification? What price Downing Street’s hostage-to-fortune claim that the Foreign Secretary will still be in post at the next election? If their 3-amp fuses do not blow too soon, perhaps our underpowered team might get to discuss defence with America. The US wants NATO to pull its budgetary weight. Might we hear today where Labour are with plans to lift defence spending to 2.5% of GDP, given the first casualty of their mishandling of the economy has been growth? Will it happen, and when?

If we are moving ever closer to faceless and distant Strasbourg and Brussels, as yesterday’s visit by the PM surely signposts, we ought to consider Ireland, which sums up America’s issue with European freeloading on defence. Ireland is not in NATO, yet is under the aegis of the British-supplied nuclear deterrent. The undersea cables that see US tax dollars converted to euros and piled into the coffers of Dublin are at risk from Putin’s shadow fleet.

Those data cables are as critical today as were the convoys from America and Canada during the battle of the Atlantic, and every bit as vulnerable. The country’s only defence, since Ireland has zero underwater capability, is Britain—the same Britain Ireland is happy to traduce in international courts over the troubles. We have a rare window of opportunity with Mr Trump and his White House team, but the puerile insults keep coming. The titanic struggle playing out now is between the oldest superpower, the United States, and the newest, China. Europe, prickling with full outrage at the new US President, is sidelined. It is, at best, indifferent to the UK and wants to make even new defence agreements transactional, all about commercial deals, even as the fires of conflict blaze. China need not be our enemy, but it is not our friend. Its industrial heft means genuine competition in many areas is impossible. Its annual production of batteries is sufficient for global needs—no wonder UK plans for a gigafactory have come to nothing.

Order. First, I will call Members who bob, so please could those who wish to be called make sure to bob? Secondly, I remind Members that they should be here for the start of a debate if they want to contribute, but I will try to be generous. Thirdly, so that all who want to can speak, let us try to work on the basis of about four minutes each. That is informal at this stage, but as we continue, we will look at it again.

It is a pleasure to serve under your chairmanship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for calling this debate on the UK-US bilateral relationship. I listened closely to his speech and we agree on the importance of the UK-US relationship and our desire to build on those bonds.

Britain’s place in the world matters. After the needless fights and petty politicking of the last Government, which did so much damage to our relationships around the world, I am proud that our Prime Minister and the Foreign Secretary have made reconnecting with our allies a priority of this Government. After the furore of the Northern Ireland protocol, the collapse of US-UK trade talks, and strains following Brexit, I am glad that we now have a Government who are ready to put the national interest, rather than party interests, first.

It was Winston Churchill who first described the UK-US relationship as “special”. For centuries, the relationship between our two nations has been one of collaboration, co-operation and enduring partnership. Together, we have defended the world from tyranny and two world wars, stood strong in the cold war, and for centuries worked closely towards our mutual security and prosperity. I put on record my congratulations to President Trump on his inauguration, and we look forward to working with him in the years ahead.

As the Prime Minister has said, we will continue to build upon the unshakeable foundations of our transatlantic alliance as we tackle the global challenges together. We have our shared language, close cultural exchange, strong ties in commerce, and the many links between our peoples through business, friendships and family. Indeed, President Trump’s mother was Scottish and I know he has always been very fond of our country. I am sure that the depth of friendship will continue.

It is a pleasure to serve under your chairmanship, Sir John. I draw Members’ attention to my entry in the Register of Members’ Financial Interests; I serve in the British-American Parliamentary Group. I thank my hon. Friend the Member for Dumfries and Galloway (John Cooper) for securing this important debate.

As President George H. W. Bush once said,

“America has no truer friend than Great Britain.”

That sentiment has been repeated time and again but, sadly, we now have a Government seemingly intent on weakening that vital bond. We have a Foreign Secretary who, without hesitation, labelled the leader of the free world a

“racist and KKK/neo-Nazi sympathiser”;

a Health Secretary who referred to him as an “odious…little man”; and, perhaps most concerning of all, a Prime Minister who accused the leader of the free world of an “attack on democracy”—a far cry from leadership figures such as Churchill, Thatcher and even Blair, who understood the value of forging strong and meaningful relations with our closest ally.

Unfortunately, it is not just the Government’s words of woke condemnation that are cause for concern, but their actions. The Trump Administration have unequivocally expressed their concerns about the Foreign Secretary’s reckless proposal to cede sovereignty over the strategically vital Chagos islands to Mauritius. Yet the Foreign Secretary pressed ahead, attempting to finalise the deal before President Trump officially took office. That pattern of misguided priorities and dangerous diplomacy cannot be ignored. Do the Government believe that the special relationship no longer matters?

Prime Minister after Prime Minister and President after President have been steadfast in their commitment to that enduring relationship. Why? Because both sides recognise that our trade is worth more than £300 billion, with 1.2 million Americans working in British companies and 1.5 million British citizens working for American firms. The UK imports around £58 billion in goods from the US and exports £60.4 billion in return. Our Chancellor has stated that she is focused on growth, so surely consolidating and strengthening those economic ties must be a top priority? The previous Government were in talks with President Trump about a post-Brexit deal that would have seen trade increase by potentially

It is a pleasure to serve under your chairmanship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for securing this debate, and I look forward to visiting his constituency in a couple of weeks for a short holiday during recess.

Like the UK, the USA recently voted for decisive change. I heartily congratulate President Trump on his election. People here in the UK and across the Atlantic have been feeling the impact of low economic growth, with a decline in productivity and GDP per capita for many years. From Mansfield, Massachusetts to my constituency of Mansfield, Nottinghamshire, people are feeling the impact in their pockets. They know how tough things are out there for their families. The recent changes in both Governments are clearly a response to the frustration felt by both electorates, and it is therefore in both our countries’ interests to work together to deal with the issue.

Despite many attempts to highlight the differences between the two Administrations, we have a great deal in common. Both Governments have made much of their agenda for growth: the US Secretary of the Treasury Scott Bessent said that an increase in GDP should be seen as a key performance indicator of the Trump presidency, while here at home my right hon. Friend the Chancellor of the Exchequer has also made it clear that economic growth is the Government’s No. 1 mission, a message reiterated through announcements in the past week. We all understand that, primarily, a Government must ensure the economic security of the electorate and give them confidence that they will be better off. However, to earn the right even to be heard on the crucial issue of the economy, parties—in opposition or in government—must prove beyond doubt that they can also ensure the safety and security of the nation.

Here in the UK we have been steadily increasing our defence spending as a share of GDP over the last 10 years. It is currently at just over 2.3%, higher than the NATO target and higher than most other NATO countries. The new Administration in the United States want NATO allies to do more, and I agree that we must. We live in an increasingly dangerous world, and it is right that we and our European allies are asked to do, and do, more. Only yesterday the Prime Minister was in Brussels urging our European neighbours to spend more on defence and to step up and shoulder more of the burden.

It is a real pleasure to serve under your chairship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for raising this topic at such a timely moment, as we look to the start of the new US Administration.

The new Administration offers an opportunity for greater UK-US relations, which is something we should jump at. Although I have not always been the greatest supporter of the Donald Trump portrayed in the media, I certainly admire some of the steps already taken by the Administration. I am pleased to have a presidency that seems to have a grasp of the special relationship with the United Kingdom of Great Britain and Northern Ireland that we should treasure. We have moved from a former President who called us Brits—that was meant as a slur, by the way—and promised that no orange feet would ever be in the White House, so I could never have gone because I am an Orangeman. He had a very clear, biased opinion. We now have President Trump—a man who treasures his Ulster Scots roots and has the respect for our monarchy that we all hold. What a difference a year makes.

I was heartened to hear the interview in which the President highlighted massive concerns with the EU, which many of us share, yet he indicated his belief that the relationship with the UK could be retained. There is a real possibility of the friendship between our nations being restored to what it once was, which can only benefit us on both sides of the ocean.

Does my hon. Friend agree that it would be utterly outrageous if the benefits of any trade deal with the US were not felt equally in Northern Ireland—an integral part of the United Kingdom—because of the protocol? Does he agree that this Labour Government need to take action and remove the Irish sea border, so that Northern Ireland can benefit from any trade deal done with the US?

I thank my hon. Friend for raising that point. She stands alongside the rest of us in relation to this issue.

I am further encouraged that Vice-President J. D. Vance has close Ulster Scots roots that have shaped him. Now is the time to highlight the fact that so much good in America has a foundation in our shared Ulster Scots values of hard work, courage, family, commitment and fairness. There are multiple large businesses in my constituency, such as Rich Sauces and Lakeland Dairies, that have a great business co-operation with the United States of America. There is so much space for greater investment and economic improvement for both Northern Ireland and the US.

The US and Canada are two of Northern Ireland’s important markets both for exports and inward investment, with over 320 North American firms choosing to establish themselves there—that is the relationship that we have. In the 12 months leading up to March 2024, exports to those markets reached £2.3 billion, highlighting the wealth of opportunities available for local companies. We have a new opportunity, under a new Administration, to make new conditions and make Northern Ireland even greater and bigger within this great United Kingdom of Great Britain.

Many Americans have their roots in what is now Northern Ireland and in Scotland. Their Scots Irish or Ulster Scots roots are something to be proud of, and I believe that we can and should build on those links to bring greater cultural tourism to Northern Ireland. The Northern Ireland Assembly will work on that as well, but there is more to be done. We are a place of peace and open for business, and that needs to be highlighted not simply by the Northern Ireland Executive, but by this Parliament and in this debate.

I will finish with this point, because I am conscious of the numbers who want to speak and the time limit. Donald Trump is a businessman of action, and he responds to that. His Administration have been working hard since day one to bring about change, so let us ensure that greater friendship and business co-operation with the United Kingdom, particularly with Northern Ireland, is brought to his attention and acted upon as a matter of urgency, not left to linger in the ether—to use an Ulster Scotsism. The time to act is now, so let us get going and improve our mutually beneficial relationship.

It is a pleasure to serve under your chairship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for bringing such an important subject to this Chamber.

No political party has a monopoly on patriotism, the flag or, certainly, the UK-US relationship. It is a relationship vested in our shared values of democracy, freedom and the international rules-based system. It is based on our shared history of defending and nurturing these values; frequently we have done so by fighting side by side in wars. It is a relationship based on our armed forces co-operating and our intelligence services working closely together in our mutual national interests. Most fundamentally, it is a relationship between two peoples that is based on friendship, exchange and respect.

In that context, I must refer to the words of the hon. Member for Dumfries and Galloway, which I felt were hyperbolic and unbecoming of such an important subject. He spoke about “supine Britain” and “national humiliation”, and said our defence was, compared with the United States, merely “a precision scalpel”. That is somewhat hypocritical, given that his party saw our Army shrink to the smallest size since the Napoleonic wars. We on the Labour Benches will not take any lectures on our armed forces from him.

The hon. Member spoke about “toadying diplomats”. I regard that as deeply offensive to the diplomats around the world who work around the clock to look after our national interests and our citizens when they are in peril, doing everything they can to enhance our international relationships. He spoke about Labour Ministers having made comments in the past about President Trump. I merely ask whether he has ever investigated the comments of the former British Prime Minister and Mayor of London regarding President Trump. Referring to the torpedoing of Labour’s policy was also unfortunate and dangerous language.