Kwarteng backs calls for steel import tariff to protect British jobs
KWASI Kwarteng has supported demands to keep steel import tariffs to protect British firms and safeguard their importance to defence.
The Business Secretary’s stance comes as the Cabinet grapples with a crunch decision about whether to extend existing controls to save jobs.
Mr Kwarteng told the Commons Business, Energy and Industrial Strategy Committee yesterday that the UK should protect its steel production because every other major industrialised country already did so.
He said: “I’m in favour of that because I am a free trader but I am also a reciprocal trader. Every single G7 country produces steel and every single one of them supports those industries. And the reason they support it is because it’s strategic.
“If they want to build military hardware, they don’t want to have to enter into some free trade international market depending on China – they want to be able to produce the steel in their country.
“That’s the American view, that’s the French view, that’s the Italian view. Free trade is all very well, but if everyone else is supporting a strategic industry, I think there is a strong argument for us to do so.
“I would hate to see a Britain where we didn’t produce any steel and were reliant on the international market in a totally laissez-faire way – and then when we needed to make steel we had no capacity.” Mr Kwarteng made his remarks in response to Tory backbencher Richard Fuller who warned tariffs conflicted with free-trade principles. Mr Fuller said: “I believe in free trade. I do not think one producer group deserves government support over another. This is special pleading by the steel industry and you are falling for it.”
Mr Kwarteng replied: “The logic of your position is you would see the end of steel-making capacity. There is an enormous interest in the UK in having steel making capacity.”
Boris Johnson is expected to extend existing tariffs on steel before they expire tomorrow.
He is also considering expanding limits on imports from a string of developing countries to stop the UK being flooded by cheap steel.
Mr Johnson indicated at the G7 summit on Sunday that he wanted to protect the steel industry and the proposed protectionist measures would be line with other nations.
Critics have warned the measure could put the UK in breach of World Trade Organisation rules.
At the committee hearing, the Business Secretary also addressed reports that millions of households could face power cuts this winter in a worst-case scenario if Russia cuts off more gas supplies to the EU.
Mr Kwarteng said: “We have being doing a lot on winter resilience.
“Any government has to consider extreme possibilities, but I’m not expecting anything to that extent.”