Boris Johnson's Ethics Adviser Resigns Amid WTO Tensions

Strategic Insights -

Boris Johnson's resignation of Christopher Geidt, his ethics adviser, has sparked controversy over protection for the British steel industry and potential breaches of WTO rules. The prime minister sought Geidt's advice on tariffs set to expire on June 30, citing concerns about protecting a crucial industry, which might conflict with the UK's obligations under the World Trade Organization. This move has raised eyebrows among experts and critics who argue that it undermines the UK's commitment to free trade.

Key Takeaways:

  • Boris Johnson asked Christopher Geidt's advice on tariffs for protecting the British steel industry, which "might be seen to conflict with our obligations under the WTO".
  • The Trade Remedies Authority (TRA) recommended removing or scrapping nine out of 19 tariffs on steel imports due to a lack of evidence that British producers were being hurt by cheap foreign imports.
  • The government launched emergency legislation to overrule the TRA, imposing 25% taxes above a set quota for certain steel products, which are due to expire on June 30.
  • The steel industry employs 33,700 people directly in the UK and supports a further 42,000 in supply chains.
  • Labour and the trade body, UK Steel, have pushed for an extension of the tariffs, while experts have questioned the prime minister's decision to seek Geidt's advice on trade rules.
  • The Conservative Party has accepted donations, gifts, and hospitality from steel industry bosses, including Sanjeev Gupta and Lakshmi Mittal.
  • Experts have expressed concerns that extending the tariffs could be a breach of WTO rules and that the prime minister's action undermines the UK's commitment to free trade.

Statistics:

  • 33,700 people are employed directly in the UK's steel industry.
  • 42,000 jobs are supported in supply chains related to the steel industry.
  • June 30 is the expiration date of the 25% tariffs above a set quota for certain steel products.
  • 19 tariffs on steel imports have been imposed by the UK government.
  • 9 out of the 19 tariffs have been recommended for removal or scrapping by the Trade Remedies Authority.

Sources:

  • Boris Johnson's letter to Christopher Geidt (Source: The Telegraph)
  • Statement from Gareth Stace, Director General of UK Steel (Source: The Telegraph)
  • Report from the UK Trade Policy Observatory at Sussex University (Source: The Telegraph)
  • Statement from David Gauke, former Conservative justice secretary (Source: Twitter)