Boris Johnson to break international law over steel tariffs
Boris
Johnson says he is prepared to break the law over steel tariffs despite cabinet
warnings of a trade war.
The prime
minister said that lifting steel tariffs on developing nations was not “the
right way forward” and that he was willing to make the “tough choices”.
However, The
Times has been told that Anne-Marie Trevelyan, the trade secretary, has warned
that nations including India, Turkey and South Korea would be entitled to
retaliate.
She has said
that while she was supportive of the policy and believed protecting British
steel was the right thing to do, there would be consequences.
Under World
Trade Organisation (WTO) rules countries affected by steel tariffs would be
entitled to impose retaliatory tariffs. These could include aerospace, whisky
and cars.
Tariffs are
expected to be levied this week on imports from several developing countries to
avoid British producers being undercut by cheap overseas steel.
Johnson will
also extend existing tariffs aimed at China and western countries in another move
which critics believe breaks WTO rules.
Labour yesterday
backed the move, which has also been championed by many of Johnson’s red wall
MPs.
The issue
triggered the resignation of Lord Geidt as the prime minister’s ethics adviser
this month. Geidt said that he had been placed in an “odious position” by being
asked to approve it. He said that a “deliberate and purposeful breach” of
Britain’s international obligations would “make a mockery” of the ministerial
code which commits ministers to upholding the law.
Questioned
on the issue at the G7 summit in Germany, Johnson said that “the UK steel
industry has been going through a difficult time, partly because of the energy
prices . . . we need British steel to be provided with much cheaper energy and
cheap electricity for its blast furnaces. But until we can fix that, I think it
is reasonable for UK steel to have the same protections that other European,
absolutely every other European economy does.”
While part
of the EU, Britain was covered by European tariffs on imported steel, but the
UK’s Trade Remedies Authority last year ruled there was not enough evidence to
maintain 25 per cent tariffs on all steel categories.
Liz Truss,
as trade secretary, used emergency legislation to overrule this proposal, but
that expires on Thursday, potentially making a tariff extension a breach of
domestic law and WTO rules.
Johnson said
of the prospect of removing tariffs when they expire: “I don’t think that’s the
right way forward. I want another solution. The difficulty is, is that possible
to do while staying within our WTO obligations?”
David Lammy,
the shadow foreign secretary, said Labour would back Johnson even at the risk
of breaking international law. “It’s the extension that both the European Union
and the Americans have continued with, so we would support him,” he told the
BBC.