US-UK Trade Deal: Northern Ireland

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the US-UK trade deal, with particular reference to the impact on Northern Ireland.

With your permission, Mr Speaker, I am grateful to be able to give a statement today, following that given by my right hon. Friend the Minister for Trade Policy and Economic Security on Thursday, to update the House on the agreement we have reached with the United States and specifically to address the important circumstances of Northern Ireland.

I can confirm that we have closely considered the impacts of this agreement on Northern Ireland. I have personally spoken to the First Minister and Deputy First Minister twice while negotiating this deal, the first time alongside the Prime Minister. I want all Northern Ireland colleagues to know that the importance of Northern Ireland in this deal, and all trade deals, is paramount to me personally, and I commit absolutely to working with any colleague from Northern Ireland on the implementation of agreements of this sort.

First, as Northern Ireland is part of the UK’s customs territory and internal market, Northern Ireland exporters can access the US market under this deal on the same preferential basis as the rest of the UK. Secondly, this deal does not affect how imports to Northern Ireland operate. US origin goods will be able to benefit from this deal where they are not at risk of entering the EU. As a result of the Windsor framework, Northern Ireland businesses importing eligible US goods under this deal can avoid any unnecessary duties with established schemes such as the UK internal market scheme. Thirdly, there is a comprehensive tariff reimbursement scheme. The difference between the UK and EU duty can be claimed back, so long as it can be demonstrated that the goods did not enter the EU single market. The customs duty waiver scheme also allows at-risk duties to be waived entirely regardless of the destination, subject to an overall limit. As we have said all along, we have continued to act in the best interests of all UK businesses, which very much include those in Northern Ireland.

More broadly, I can confirm that this agreement saves thousands of jobs, gives the UK an advantage over other countries in relation to trade with the US, and confirms a process of potentially securing a much wider trade agreement between our two countries. The UK-US trading relationship, which is already worth £315 billion, is important and growing. We have £1.2 trillion invested in each other’s economies, employing around 2.5 million people across both our countries. That is why this deal was so important. Throughout our negotiations, businesses have consistently praised our calm-headed, pragmatic approach to working with President Trump’s Administration and I thank them for their engagement, their support and their advocacy.

Turning to the detail of the agreement, in no industry was the potential impact of tariffs more acute than in our automotive sector. We have therefore negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%—

Order. I gently say that answers to urgent questions are only meant to last for three minutes. I can see that you have quite a few more pages; I am happy to take them because I think it is important that the House knows about the deal, but we need to understand what we have granted and what we have not granted. I do not want to go back over the events of Thursday, when nobody seemed to understand the procedure of the House, and I recognise how important this issue is to hon. Members but, seriously, we should know the rules and I just wonder how this has gone wrong again.

Mr Speaker, I am incredibly grateful for your forbearance. If it is okay, I will continue to these words, given how important I know the matter is to all Members of the House.

Order. If it is so very important, why was it not presented to the House as a statement or converted? That is what I would say. I never quite understand—the other day, we could not convert them quickly enough, but today we do not want to.

Mr Speaker, I would have been more than happy to make it a statement, and I was hoping to be able to do so.

We have negotiated a quota of 100,000 vehicles where tariffs will be reduced from 27.5% to 10%, and secured an agreement for associated car parts, recognising the vital role that this sector plays in our economy.

For steel and aluminium, this deal will remove the 25% additional tariffs that were put in place earlier this year, reducing US tariffs on core steel products to zero. This will provide a critical lift for the steel industry, which has been brought back from the brink of collapse, allowing UK steelmakers to continue exporting to the US. This follows our intervention last month to take control of British Steel and save thousands of jobs in Scunthorpe.

For pharmaceuticals and life sciences, this deal provides assurances that we will receive significantly preferential access in case of any new US tariffs, something that, so far, only the UK has secured. As the pharmaceutical manufacturing sector contributes £20 billion to the UK economy a year and employs around 50,000 people, this was a priority for us.

On aerospace, we agreed that UK aerospace exports, such as Rolls-Royce engines and plane parts, will have a specific guarantee of zero tariffs as a result of this deal. This will be a huge boost to the sector, which supports 450,000 jobs in the UK.

To secure this deal, we have made agreements with the US on beef, ethanol and economic security. On beef, we have agreed a new quota of 13,000 metric tonnes, and have reduced the UK tariff on existing US imports coming through a World Trade Organisation quota limited to 1,000 metric tonnes. Crucially, I can confirm this will comply with sanitary and phytosanitary standards, in accordance with the commitments that we have always made.

The increase in the quota of 13,000 tonnes compares with the 110,000 tonnes in the Australia deal negotiated by the last Conservative Government. Even more importantly, the deal is reciprocal, meaning our UK beef farmers will have unprecedented market access to the US. Our farmers will be able to export their high-quality beef through an exclusive UK quota to a market of over 300 million people, providing unparalleled access to the world’s largest consumer market.

For all his verbosity, the Secretary of State came nowhere close to addressing the issues that arise from the fact that this Government and this House do not control the trade laws of a part of this United Kingdom—namely, Northern Ireland. Under the Windsor framework, Northern Ireland was placed under the EU’s customs code, so it is therefore its tariffs, not the UK’s tariffs, that govern the imports to Northern Ireland. With the EU having no trade deal with the US or India, the resulting tariffs on imports under this deal will be higher when the goods come to Northern Ireland than when they come to GB. For manufacturing and consumers, that creates huge disadvantage and fundamentally contradicts the equal citizenship that is supposed to denote a United Kingdom.

The Secretary of State referred to the convoluted and tardy system of possible recoupment of tariffs, but the onus there is on those applying to prove that anything they produce will never go into the EU. It is no answer to Northern Ireland’s subjection to foreign trade laws, which we do not make and cannot change. The Secretary of State would not contemplate that for his own constituents, but he expects us to sup it up in Northern Ireland.

I will ask the Secretary of State about three specific issues. Under the deal, will it not be easier for US manufacturers to buy tariff-free steel from Great Britain than for manufacturers in Northern Ireland to buy the same steel from their own country to bring it into their own country? That steel will be subject to EU tariffs. How can that ever be compatible with Northern Ireland supposedly being part of the EU’s internal market? In terms of beef and the tariff-free trade within the quota that has been set, how can—

Order. I am sure that the hon. and learned Member must be coming to an end. Just because the Secretary of State has taken advantage of the Chamber, I certainly do not expect every other Member to do so—Front Benchers, yes, but the hon. and learned Member will know that he is limited to two minutes.

Where there is a set quota for imports of beef, how can Northern Ireland participate in that if the UK cannot offer a reduced tariff rate in Northern Ireland? Does that mean that our beef-exporting farmers in Northern Ireland will be excluded? Surely all these trade deals expose the folly of surrendering part of our territory to foreign customs control.

I am grateful to the hon. and learned Member for bringing this urgent question and for putting his community’s concerns on the record; I understand how strongly he will feel about them. There is much that I could say and criticise about the previous Conservative Government’s approach to a lot of things, but the approach that they took with the Windsor agreement to balance the obvious, practical problems and realities of Brexit—of leaving the single market when Ireland is in the EU and the customs union—alongside our commitments under the Good Friday agreement to observe what we have all signed up to and want to support is fundamentally better than when they threatened to break all kinds of international laws and agreements with key partners. It was the better way to find a way through them.

I absolutely accept and understand that this issue is difficult and complicated, but I can tell the hon. and learned Member that that is not just the perspective of the UK Government, in terms of working with our colleagues and ensuring that these issues are reflected in the agreements, but what we hear from the other side in these agreements. When we explain what we need to see happen around agreements such as this, we see that the US is absolutely committed to peace, to the Good Friday agreement and to the sound working of the Windsor agreement.

The hon. and learned Member has raised a number of specific questions, and I will ensure that we deal with them. We will meet with him and a delegation of MPs and ensure that we are in correspondence with him, as we have promised to be with the First Minister and Deputy First Minister. This approach is complicated, but it is far better than the one we briefly glimpsed in that difficult period when the Conservative Government did not have the Windsor agreement in place. Fundamentally, there is a difference between goods entering Northern Ireland and therefore entering the UK and goods entering Northern Ireland if there is a risk of them entering the single market more widely. This is a sound system to deal with that, and I accept that we must make it work.

Can the Minister update the House on the Government’s engagement with the chemicals industry?

Absolutely. Whenever any trade agreement of any sort is agreed, there will obviously be domestic impacts if our trading partners have requested further access to the UK market. That is particularly the case for the agreement on bioethanol. Senior officials from my Department have been meeting representatives of the domestic industry, and I have a personal meeting set up—on Wednesday of this week, I believe. A lot of the issues we need to address are wider than what has been agreed through this trade agreement, but our commitment to working with the domestic industry to help manage any trade-based transitions is absolute.

I call the shadow Minister.

I congratulate the hon. and learned Member for North Antrim (Jim Allister) on securing this urgent question, although I agree that the Government really should have offered a statement to the House on this important subject.

Of course, the House has still not yet seen the full detail of the trade agreement with the United States of America. The Secretary of State says that this is just the beginning, but there are still a great many unanswered questions about what we have so far, including what are clearly ongoing negotiations on pharmaceuticals. In his answer, the Secretary of State said that the UK will have significantly preferential rates, but what does that mean in practice? Where is the detail about what “significantly preferential rates” actually means? There are similar questions about the digital services tax.

Last week, the shadow Secretary of State for Business and Trade, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), asked the Trade Minister a straight question: whether this trade agreement would

“protect the special status of Northern Ireland”.—[Official Report, 8 May 2025; Vol. 766, c. 899.]

The Minister was unable to provide an answer at the time, and I remain unconvinced by what the Secretary of State has had to say today—there is still a lot of talk about the risks of goods entering the European Union. Clearly, this is a far more complex situation than the Secretary of State would like us to accept. As the hon. and learned Member for North Antrim made clear, the EU is still hugely influential in Northern Ireland trade law. The points he made about steel, for example, were accurate and deserve clear answers.

It is clear that this deal will have a number of implications for the functioning of the dual customs regime, yet businesses in Northern Ireland have been left in the dark for too long by the lack of detail in last week’s announcement. I would therefore be grateful if the Secretary of State would confirm what discussions he has had with his US and EU counterparts about rules of origin and the green lane in Northern Ireland. What specific measures are the Government implementing to ensure that Northern Ireland businesses are not disproportionately burdened by increased costs and administrative complexities as a result of this trade agreement? Finally, given that the Prime Minister is gearing up for his surrender summit with the European Union next week, can the Secretary of State confirm that there will be no backsliding on Northern Ireland’s place as an integral, absolute and total part of our United Kingdom?

That was a fairly odd stream of consciousness, if I am being totally honest. It appears that I have given a stronger defence of the Windsor agreement negotiated by the former Conservative Government than the Conservative party has managed today.

The shadow Minister has asked for detail. I acknowledge that, particularly when dealing with the US and the style of the US system, negotiations have a pace—a pulse—and they are perhaps different from how we would present the detail of a complete trade agreement, such as the one we agreed with India. However, I think he would acknowledge the importance of last week’s announcements, because such a significant part of our exports to the US is covered by its sectoral tariffs, not the reciprocal ones. Businesses would have had to start planning this week for a world of—in some cases—25% tariffs, which would have had major repercussions for jobs, businesses and growth in the UK. Being able to give those businesses reassurance, alongside a clear indication of the ongoing nature of the negotiations, is a significant win for British business. I hope the Opposition recognise that.

The hon. Gentleman asked specifically about preferential rates on pharmaceutical products. Those in the United States have not yet completed their own investigations in respect of some of the sectoral tariffs to which they have alluded, and have not announced what they are putting in place. The nature of the agreement, given that it covers the sectoral tariffs, is to recognise that we would want the UK to be in a preferential position on those as well, rather than agreeing what we have already agreed on sectoral tariffs and then seeing further sectoral tariffs announced in future.

The hon. Gentleman asked about the digital services tax. It is not in the agreement; it is not a part of what was announced last week.

As for the question of the special status of Northern Ireland, this is the agreement that the Conservative party struck. It manages two very difficult countervailing pressures. The Conservatives might have thought more about this during the Brexit process, but they did not. They had to resolve the issue after the agreement, and to be honest, I do not think they did a particularly bad job in reaching the compromise that Windsor represents.

I congratulate the Secretary of State first on being papped in the away end on Friday night, and secondly on, twice in one week, upholding our world-leading environmental and welfare standards. Can he assure me that as these conversations—and, indeed, conversations with future trading partners—develop, further deals will always prioritise high food standards to protect both our farmers and our consumers?

Last week was a good week all told, on footballing and trade matters. You may be noting, Mr Speaker, that my voice is a little hoarse as a result.

We on the Government Benches were elected on our manifesto commitment not to alter our sanitary and phytosanitary regime and our food standards. Some people said that a deal with the United States would not be possible if we stuck to that, but we did, and we have an agreement. That proves everything we said about why that issue is so important to us.