Teesside to benefit from recent trade deals
The three trade deals that we have struck in three weeks will boost the Tees Valley’s manufacturing industries (9% of local jobs), with tariffs on car exports slashed alongside a range of other measures.
- Prime Minister to meet with the Metro Mayor of the Tees Valley Ben Houchen to discuss the benefits of his recent trade deals.
- Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change.
- Delivers a welcome boost to a range of manufacturing sectors that employs 9% of local jobs.
The three trade deals that we have struck in three weeks will boost the Tees Valley’s manufacturing industries (9% of local jobs), with tariffs on car exports slashed alongside a range of other measures.
Reducing India’s tariffs on machinery, slashing tariffs on car exports in both deals and our agreement with the US to remove the 25% tariff on steel provides stability for the biggest employers in the region like Nissan, the engine manufacturer Cummins and Caterpillar.
This means greater job security for workers, stronger economic growth to support more jobs and higher living standards across the Tees Valley – priorities that we are delivering through our Plan for Change.
Prime Minister Keir Starmer said:
The trade deals that we have closed delivers stability for manufacturing in the Tees Valley that employs 9% of all people.
It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.
These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across the Teesside.
10,123 people employed in agriculture across the North East are also set to benefit from our trade deal with the EU. It means less checks and red tape, meaning farmers and producers who grow food across the region now have easy access to the EU, the UK’s biggest trading partner.
This deal also protects British steel exports from new rules and restrictive tariffs, helping to protect 3,050 people working in the steel industry across the North East.
Business and Trade Secretary Jonathan Reynolds said:
The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need.
We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in Teesside, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.
The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.
He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.
Our increased trade with India will unlock opportunities for every region in the UK to access the world’s fastest growing major economy, including for businesses in the Tees Valley like independent production company Wander.
Chloe Clover, Co Founder and CEO at Wander:
Trade deals like these are game changing for ambitious businesses because they open doors, spark innovation and make international growth possible.
The support Wander received from DBT on our recent trade missions to SXSW Austin and Amsterdam gave us the perfect platform to expand our services globally. We connected with major industry players, explored new markets and showcased our expertise at roundtables.
We attended bootcamps ahead of the missions and were introduced to other agencies and potential clients & partners.
Under the Free Trade Deal that was concluded, tariffs on cars sold to India will come down from over 100% to 10% under a quota, while other tariff reductions on aerospace parts will also benefit Teesside’s manufacturing sector.
Based on 2022 trade alone, this amounts to India cutting tariffs worth over £400 million when the deal comes into force, which will more than double to around £900 million after 10 years.
In the same week, we negotiated the first of its kind agreement with the US that will reduce tariffs on UK car exports and remove tariffs on steel, protecting two key industries in Teesside that employ thousands of people.
Just this week the Prime Minister acted in the national interest by confirming a new agreement with the European Union that will deliver on his core mission to grow the economy, creating more jobs in Teesside, raising living standards and putting more money in people’s pockets.
At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.