Boris Johnson said he was considering extending steel tariffs, despite fears that the move could violate international rules and lead to another major dispute with the EU.
It is reported that the Prime Minister is drawing up plans to impose “safeguard” restrictions on steel imports from several developing countries and to expand existing tariffs already imposed on China and others.
But critics have warned that the move to expand tariffs would “violate” World Trade Organization (WTO) rules, with the EU ambassador to Britain warning against any “protectionism”.
Lord Hyde, the prime minister’s former ethics adviser, quoted steel tariff plans in his resignation letter earlier this month, saying he had been put in the “disgusting position” of being asked to license a breach of the rules.
Mr Johnson said on Sunday that he wanted steel in the UK to enjoy the “same protections” of other steel economies in the EU – arguing that the industry was going through difficult times due to energy prices.
“I think it makes sense for British steel to have the same protection as any other European, absolutely any other European steel economy,” he told reporters at the G7 summit in Germany.
The Prime Minister added: “The difficulty is, is it possible to do this by remaining within our WTO, our obligations to the World Trade Organization? This is the problem. But these are difficult choices you have to make. “
Johnson’s government on Thursday proposed extending the existing package of tariffs and quotas on five steel products for another two years to protect local steelmakers.
However, TheSunday Telegraph said broader measures are being finalized for announcement next week. № 10 is preparing to hit several developing countries with new “protective” import restrictions, according to the newspaper.
A government figure who opposes the expansion of tariffs said it would “fuck up the economy” and be “anti-conservative”, adding: “This is a complete violation of WTO rules.”
But Mr Johnson insisted that Britain should not “lower” steel tariffs, as planned next week. “I do not think this is the right way forward. I want another solution. “
Asked about the tariff plan, the prime minister’s official spokesman said: “No decision has been made. They will be made soon and will balance our international obligations and the national interest.
The UK’s ambassador to the EU, Joao Valle de Almeida, warned that Brussels would be “very tough” on any breach of trade rules.
“I don’t think protectionism is the solution to any of our problems,” he told Sky News on Sunday. “Of course we have to be careful about the rules of the game. When we find this kind of discrepancy, we are as firm as necessary. “
Labor foreigner David Lamy has suggested that the opposition party could support the government’s plan if it means expanding steel tariffs. “I think this is an extension [Mr Johnson] he offered … we will support him, “he told Sky News.
The plan to repeal parts of the protocol agreed by Mr Johnson as part of the Brexit withdrawal agreement has sparked outrage in Brussels and raised fears of a trade war if the EU decides to retaliate on tariffs and other controls.
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