A bid to block the recommended removal of steel protections has failed to win support in Westminster.

Labour had sought to force legislation to allow ministers to overrule the Trade Remedies Authority’s findings, which industry and unions have claimed could open the floodgates to cheap imports.

But the Opposition Day debate came up short, beaten 355 to 271 in the vote, with pledges of further meetings to discuss what tools can be used to prevent dumping - with the potential for safeguards on nine of 19 categories to go come June 30.

Business Minister Anne-Marie Trevelyan said: “I recognise the significant concern being expressed. The world has changed since 2018 when these powers were put in place, and so my department is very supportive of the Trade Secretary’s desire to review the domestic toolkit given the challenges of global trade.

“At the same time, I and my ministerial colleagues in BEIS will continue to devote our focus to the future of this important sector.

“UK industry will continue to need high quality steel and British Steel is amongst the best in the world. Making sure our steel industry has the right conditions to thrive is a key part of our efforts to reach Net Zero and level up across our country.

“There should be no doubt this government is committed to UK steel making. We are already working to protect jobs and we are straining ever sinnow to ensure the industry succeeds at securing a sustainable future.”

Shadow International Trade Secretary Emily Thornberry opened the debate, expressing her disappointment that International Trade Secretary Liz Truss wasn’t present.

Emily Thornberry brought forward the debate.
Emily Thornberry brought forward the debate.

She told how the review process had exposed three fundamental problems - that there was “no sense whatsoever to look at UK safeguards in isolation” with eight out of 10 of the largest steel producers having such protections and China heading towards the one billion tonne steel production mark, with 300 million tonnes of spare capacity. “It would be madness to open the floodgates,” she said.

Ms Thornberry also said the TRA review “didn’t take into account the impact on the 34,000 jobs - exactly the kind of jobs in exactly the same places we are told to level up”.

She added there could be a “knock-on implication for defence, critical infrastructure and Net Zero emissions targets”.

Ms Thornberry said: “Either the TRA remit needs to change so it can consider the global context of its recommendations and take into account their impact on our jobs, communities, regions, national defence, our civil infrastructure and our climate change objectives, or alternatively, the Secretary of State’s powers need to change to allow her to weigh up all those factors, against TRA analysis and make a decision - with parliament's approval - based on our overall national interest; what is best for Britain.

“One thing we should be certain of now is that the government cannot proceed with a decision on steel safeguards on the basis of recommendations by the TRA that have not even taken into account some of the most crucial factors at the heart of this discussion.

“If the Secretary of State refuses to act to protect our safeguard tariffs it will be an unquestionable betrayal of Britain’s steel communities and one they will never forget, and one they will never forgive.”

International Trade Minister Ranil Jayawardena was at the dispatch box for the start of the lengthy debate.

He acknowledged a need for stronger powers, but believes that it is best achieved at World Trade Organization level.

Ranil Jayawardena.
Ranil Jayawardena.

He said: “We need to set an agenda for WTO reform. This will be a tough fight, but a fight we must win. People cannot believe in free trade unless it is fair. That is why we need effective rules and tools.”

He said extending the current safeguards was not an option, and that extension of all would expose to challenge.

He added the government would “not hesitate to take action with anti-dumping tariffs if it were taken advantage of” adding, “the right way forward lies in free and fair trade,” before underlining the strength of domestic demand.

“New roads, track renewal, flood defences, Hinkley Point... this government is unleashing the potential of our whole country by backing British industry and boosting British infrastructure.

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“Steel first came to the fore as Britain led the first industrial revolution and today’s infrastructure revolution is underpinned by seven millions tonnes of steel here alone that will see Britain lead the world in the future.

“Steel remains one of the pillars of British industry, one of the commanding heights of the economy to this people’s governments and we are committed to championing free and fair trade to the benefit of jobs in every corner of the country.

“We agree we should protect, we should also be able to export to our friends.”