Thousands of jobs have been saved as the Prime Minister secured a
first-of-a-kind trade agreement with the US.
It is the second major trade announcement this week – following
the India Free Trade Agreement on Tuesday, this historic
agreement with the US to slash tariffs delivers for UK carmakers,
steelworks and farmers – protecting jobs and providing stability
for exporters.
Car export tariffs will reduce from 27.5% to 10% - saving
hundreds of millions a year for Jaguar Land Rover alone. This
will apply to a quota of 100,000 UK cars, almost the total the UK
exported last year.
The Prime Minister visited Jaguar Land Rover last month
announcing greater freedom for car manufacturers to back British
industry in the face of global headwinds. During this visit he
told workers he would accelerate trade deals to protect their
jobs, their livelihoods, and to champion British business
worldwide.
The UK steel industry – which was on the brink of collapse just
weeks ago – will no longer face tariffs thanks to today's deal.
The Prime Minister negotiated the 25% tariff down to zero,
meaning UK steelmakers can carry on exporting to the US. This
follows last month's intervention from the Prime Minister to take
control of British Steel to save thousands of jobs in Scunthorpe.
In a win for both nations, we have agreed new reciprocal market
access on beef – with UK farmers given a tariff free quota for
13,000 metric tonnes. There will be no weakening of UK food
standards on imports.
We will also remove the tariff on ethanol – which is used to
produce beer - coming into the UK from the US, down to zero.
It is one of many international deals that the Government is
landing to boost our economy – following an Indian trade deal
which will add £4.8 billion to the UK economy and £2.2 billion in
wages every year.
Prime Minister, , said:
“The new global era demands a government that steps up, not
stands aside.
“This historic deal delivers for British business and British
workers protecting thousands of British jobs in key sectors
including car manufacturing and steel.
“My government has put Britain at the front of the queue because
we want to work constructively with allies for mutual benefit
rather than turning our back on the world.
“As VE Day reminds us, the UK has no greater ally than the United
States, so I am delighted that eight decades on, under President
Trump the special relationship remains a force for economic and
national security.
“This is jobs saved, jobs won but not job done and our teams will
continue to work to build on this agreement.
“My Government is determined to go further and faster to
strengthen the UK's economy, putting more money in working
people's pockets as part of our Plan for Change.”
Business and Trade Secretary said:
“I am delighted our calm approach and proactive engagement with
the US has resulted in this deal which cuts tariffs for UK
industry and cuts costs for businesses.
“Businesses across the country will be glad to see our approach
working, but this is only the beginning. We look forward to
strengthening our trading relationship with the US through a
wider economic deal, which will help us to deliver on our Plan
for Change to provide economic stability and make this country
fit for the future.”
Adrian Mardell, Chief Executive Officer, JLR
said:
“The car industry is vital to the UK's economic prosperity,
sustaining 250,000 jobs. We warmly welcome this deal which
secures greater certainty for our sector and the communities it
supports. We would like to thank the UK and US Governments for
agreeing this deal at pace and look forward to continued
engagement over the coming months.”
Work will continue on the remaining sectors – such as
pharmaceuticals and remaining reciprocal tariffs. But – in an
important move – the US has agreed that the UK will get
preferential treatment in any further tariffs imposed as part of
Section 232 investigations. The deal opens the way to a future UK
US technology partnership through which our science-rich nations
will collaborate in key areas of advanced technology, for example
biotech, life sciences, quantum computing, nuclear fusion,
aerospace and space.
The Digital Services Tax remains unchanged as part of today's
deal. Instead the two nations have agreed to work on a digital
trade deal that will strip back paperwork for British firms
trying to export to the US – opening the UK up to a huge market
that will put rocket boosters on the UK economy.
