As it stands, the Customs Bill risks letting other countries deliberately undermine skilled jobs. Ministers need to listen up.
Pic: The Port Talbot steel works in Wales
On January 8th, the House of Commons will give the Customs Bill its second reading. Although there has been minimal coverage in the mainstream press, one reason that Parliament must get the legislation right is that it will establish the UK’s post-Brexit ‘trade remedies’.
Trade remedies are vitally important. They are the only way we can tackle unfairly ‘dumped’ imports such as steel, ceramics and tyres from countries such as China, which aim to undermine UK industry.
Unfortunately, in its current form the Customs Bill does not set up post-Brexit ‘trade remedies’ that will be effective in protecting UK manufacturing jobs.
The legislation doesn’t state how non-market economies like China will be handled in trade investigations.
It’s also silent about how UK trade remedies will uphold international labour and environmental standards.
It includes a ‘lesser duty rule’ – but in many cases it will result in lower anti-dumping duties than the actual level of dumping going on.
Incredibly, it also provides the government with the opportunity to reject protective measures when dumping or subsidy is proven through an ill-defined ‘Economic Interest Test’, and a completely undefined ‘Public Interest Test’.
Combined, these shortcomings mean the Bill will produce one of the world’s weakest trade remedy systems. This will put many thousands of high quality jobs in manufacturing are at risk across the country.
Instead of free trade, the Customs Bill will create a free-for-all.
These problems could be easily rectified if the government is prepared to listen.
Unite and our partners in the Manufacturing Trade Remedies Alliance – GMB, Community, the TUC and employers trade bodies including Steel, Chemicals, Glass, Ceramics, Papermaking, Agricultural Industries and Mineral Products -have all written to the Secretary of State and MPs with constructive suggestions for amendments to the Bill.
These changes could dramatically improve the Bill and provide the level playing field for our UK manufacturing industries.
We need strong anti-dumping measures that will protect thousands of decent jobs.
We also need a Trade Remedies Authority consisting of manufacturers and representatives of trade unions with the ability to bring complaints of unfair practices and dumping.
For Unite members and workers in manufacturing, this is too an important an issue for the government to ignore our concerns.
Tony Burke is Assistant General Secretary of Unite, and a Contributing Editor to Left Foot Forward
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