On the 8th May, the Labour government secured a landmark trade agreement with the United States, one that delivers real benefits for working people, our industries and the UK economy.
Labour has acted decisively to save tens of thousands of jobs and protect some of our most important industries, including steel, automotive manufacturing and agriculture.
This trade agreement will strengthen our economy, protect jobs and proves that, under Labour, the UK is back as a genuine leader in the global arena.
This is the first trade agreement of its kind signed by the US with any country. It is a huge vote of confidence in the UK and the Labour Government’s leadership.
For the automotive sector, a core component of UK manufacturing, this agreement will cut car export tariffs from 27.5% to just 10%, a measure that will save many tens of thousands of jobs, not just in car manufacturing plants but also in the supply chain. A preferential annual quota of 100,000 UK vehicles will benefit from this lower tariff. This is the best automotive access that any country has secured with the US, and this Labour government has delivered it.
For steel, this deal provides a lifeline. UK Steel will now benefit from a zero-tariff quota, allowing us to export vital materials to the US market competitively. This is a direct result of the Labour government up for those who have built our industrial heartlands over many generations.
Agriculture will benefit too. UK beef farmers will now have access to a tariff-free export quota of 13,000 metric tonnes into the US market. In return, we have agreed to lift the UK’s 20% tariff on a 1,000-tonne share of US beef imports and to create a new 13,000-tonne quota. But we have been clear: the UK’s high food standards are a red line that cannot be crossed. All US imports must comply with our stringent safety, animal welfare and environmental rules.
Whilst no US tariffs on the pharmaceutical industry are currently in place, we have negotiated a commitment to seek preferential terms if US tariffs are introduced in the future. Our UK pharmaceutical sector is a significant size and important to our economy, so this is good news.
From the very beginning, we have engaged with industry, taken on board their advice and negotiated based on what would have the most positive impact. This deal reflects that collaboration.
Beyond specifics, the general terms of the deal include agreements to continue negotiations in areas like digital trade, mutual recognition of standards and broader tariff cooperation in the months to come.
This Labour Government is delivering on our promises. We are going further and faster to grow the economy and put more money in the pockets of working people. By taking decisive action now, we are securing long-term prosperity for our key industries and working people.