Asked by Lord Dubs To ask Her Majesty’s Government what
advice they have given to British companies about the possible
impact on their trade with the United States of the imposition of
United States sanctions on Iran. The Minister of State, Department
for International Trade (Baroness Fairhead) My Lords, the UK
continues to encourage UK businesses...Request free trial
Asked by
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To ask Her Majesty’s Government what advice they have given
to British companies about the possible impact on their
trade with the United States of the imposition of United
States sanctions on Iran.
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The Minister of State, Department for International Trade
(Baroness Fairhead)
My Lords, the UK continues to encourage UK businesses to
take advantage of trade opportunities in Iran and the US.
The Government have updated their services for doing
business in Iran on GOV.UK. The UK remains party to the
JCPOA, and the UN-EU sanctions on Iran continue to be
lifted to allow UK businesses to operate in Iran. We are
working with our European partners to explore potential
options for protecting UK and European interests.
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(Lab)
I am grateful to the Minister. Will she confirm that the
Government will not allow British companies to be bullied
by the American Administration, the more so that, if that
bullying were to succeed, it would totally undermine the
nuclear deal with Iran?
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My Lords, the UK is absolutely committed to the JCPOA, the
nuclear deal with Iran. We are trying to work with the US
to ensure that links with Iran can continue so that the UK
and other international parties to the deal are able to
allow Iran to get the benefits of the lifting of economic
sanctions, so that it can see the benefits of maintaining
the nuclear deal. We are also working with Iran, with the
E3 and the European External Action Service, to try to work
out how we can ensure that Iran sees continued benefit. We
are committed to maintaining the deal because we think it
is critical for the safety of the world.
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(Con)
My Lords, I draw the House’s attention to my entry in the
Register of Members’ Interests, both as the Government’s
trade envoy to Iran and also as chairman of the British
Iranian Chamber of Commerce. Would my noble friend say what
she thinks the effects of the change in American policy are
going to be on Airbus and Rolls-Royce, which have extensive
pending orders in Iran? Secondly, following on the point made
by the noble Lord, , I am reassured by her
answer, but did she notice the widely reported statement by
the American ambassador to Germany in Berlin? Within hours of
President Trump’s announcement that he was changing policy,
he said that German firms should start winding down their
operations with Iran. Surely it is completely unacceptable
for people to give orders to firms that are acting in
accordance with the laws of their own country.
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My Lords, it is clear that there is extraterritorial reach to
some of these sanctions. I cannot say anything but that. We
are working with the US to see what we can do to make sure
that those trade ties can exist. We are working on a range of
measures to try to make sure that we protect UK and other EU
interests, working with the E3 and the other parties. I
cannot give a direct answer because at the moment we are
still working through the options. However, I can say that we
are working hard to make sure that those interests are
protected. We are also working hard to ensure that it is in
Iran’s continued interest to be part of the deal, to ensure
that we maintain the JCPOA, which we think is critical.
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(Lab)
My Lords, surely the blunt truth is that in international
trade, the dollar rules. American banks will comply, and the
US Administration have totally failed to listen to the
representations from President Macron, Chancellor Merkel and
our own Foreign Secretary. In those circumstances, would not
any lawyers, in the Government or otherwise, urge British
firms to be ultra-cautious?
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We are actively providing advice through our team on the
ground in Iran and through our sector and other teams in DIT.
We are trying to make sure that any business that is
non-sanctioned is able to flow. We would say that all
businesses have to take into account the commercial, legal
and financing risks in any transaction, and clearly these
sanctions make that difficult. We are trying to work with the
US. The noble Lord is right that there was persistent
lobbying but the sanctions were still imposed. That is why we
are working with our EU colleagues and directly with both the
US and the EU to try to protect our businesses and encourage
the US to allow us to maintain our economic ties, because we
think that they are important.
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(LD)
My Lords, the Government have lauded the US-UK Trade and
Investment Working Group for the progress that has been made
in the relationship. Can the Minister confirm that this issue
in particular has been raised at the trade working group,
because it would be utterly unacceptable for UK businesses to
lose US market access for carrying out perfectly legal
trading relationships under an international agreement to
which the UK as a sovereign entity has signed up? Can she
further confirm that the arrangements being put in place
potentially to shield banking transactions, which are
critical to the City of London, will carry on post Brexit
next March?
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The conversations we have had with our US colleagues have
been very significant. I would say that we do have a deep and
strong relationship with the Americans, but when we disagree
with them, we say so. There has not been a meeting of the
US-UK Trade and Investment Working Group since the sanctions
were imposed, so there has been no opportunity for discussion
through that group. However, we are making representations
through my right honourable friends the Prime Minister, the
Foreign Secretary and the Chancellor and we are ensuring that
those points are being heard. On banking, post Brexit, we are
clearly trying to ensure that we have as fluid a border as
possible, so we are trying to make sure that our financial
services industry, which is critical to the economy and the
country, is protected as much as possible.
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