Boris Johnson has said he is considering expanding steel tariffs, despite concerns that the measure could break international rules and set it on track for another major dispute with the EU.
According to reports, the prime minister is drawing up plans to apply “safeguard” limits to steel imports from various developing countries and expand existing tariffs that were already imposed on China and others.
But critics have warned that the measure to extend tariffs would “violate” World Trade Organization (WTO) rules, with the EU ambassador to Britain warning against any “protectionism”.
Lord Geidt, the prime minister’s former ethics adviser, cited steel tariff plans in his resignation letter earlier this month, saying he had put himself in the “hateful position” of asking. you license to violate the rules.
Johnson said on Sunday that he wanted UK steel to enjoy the “same protections” that other EU steel economies have, arguing that the industry was going through a difficult time due to energy prices.
“I think it’s reasonable for UK steel to have the same protections as other European steel economies, absolutely all other Europeans,” he told reporters at the G7 summit in Germany.
The Prime Minister added: “The difficulty is, is it possible to do so by staying within our WTO, our World Trade Organization obligations? That is the problem. But these are difficult decisions that you have to make. “.
The Johnson administration on Thursday proposed extending for two more years an existing package of tariffs and quotas to five steel products to protect domestic steelmakers.
However, TheSunday Telegraph said wider measures were being finalized to announce them next week. Number 10 is preparing to hit several developing countries with new “safeguard” import limits, according to the newspaper.
A government figure who opposes tariff increases said it would “paint the economy” and was “anti-conservative,” adding, “It’s a total violation of WTO rules.”
But Johnson insisted the UK should not “take out” steel tariffs as planned next week. “I don’t think it’s the right way. 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 national interest.”
The UK’s ambassador to the EU, Joao Vale de Almeida, warned that Brussels would be “very tough” with 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 pay attention to the rules of the game. When we find this kind of non-compliance, we are very tough, as it should be. “
Labor-backed foreigner David Lammy suggested the opposition party could support the government’s plan if that meant expanding steel tariffs. “I think it ‘s the extension [Mr Johnson] he was suggesting … that we would support him, “he told Sky News.
The plan to cancel parts of the protocol, agreed by Mr. Johnson as part of the Brexit withdrawal deal, sparked outrage in Brussels and sparked fears of a trade war if the EU decides to retaliate against tariffs and other controls.