Britain needs tougher steel trade defenses, Cabinet minister says
Stephen Kinnock tells POLITICO he is “not at all happy” with the current tariff position.
LIVERPOOL, England — Wales Secretary Stephen Kinnock is advocating for more stringent steel trade defenses to shield domestic producers from being undercut by low-cost imports. At The POLITICO Pub during the Labour Party conference, Kinnock revealed ongoing discussions with Trade Minister Anas Sarwar regarding bolstering safeguards for the steel industry.
He emphasized the necessity of a level playing field for domestic producers amid Tata Steel’s Llanwern plant in Newport, South Wales, reducing its production capacity to approximately 50% due to competition from an influx of cheaper foreign galvanized steel imports. Kinnock expressed dissatisfaction with the current quota and tariff situation, stating, "There is clear evidence that the British steel industry is being undercut."
Following Keir Starmer’s administration in July, the U.K. introduced a new steel trade measure, decreasing tariff-free quota volumes by 51% compared to previous levels. However, Kinnock criticized the dilution of some initial measures, resulting in plants like Llanwern being undercut by imports from Vietnam, Turkey, and South Korea.
"We absolutely have to do something about that," he stated, adding it as one of his top priorities as Secretary of State for Wales. Kinnock noted that an independent auditor is evaluating the impact of potential dumping, and he is in close collaboration with Sarwar on the matter. He hopes for a swift resolution, with the trade remedies agency eager to act once the necessary data is gathered, with Kinnock pushing for progress before Christmas.
Regarding reports suggesting the Indian owner of Port Talbot has requested an additional multi-million pound support package from Whitehall due to delays in its new electric arc furnace, Kinnock confirmed that he would "carefully consider" any financial support proposal. This additional funding would supplement the £500 million government grant given to Tata Steel in 2023 for constructing the furnace.
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