§ 9. Mr. Dubsasked the Secretary of State for Trade and Industry what was the balance of trade in manufactured goods between the United Kingdom and Japan in 1982–83.
§ Mr. ParkinsonThe United Kingdom had a deficit of £2,044 million on trade in manufactured goods with Japan in 1982 as a whole, and £868 million in the first four months of 1983.
§ Mr. DubsDoes the Secretary of State agree that the reason for that imbalance is that, while our markets are wide open to Japanese imports, the Japanese, by one means or another, practise what is effectively a form of trade restriction against our products? What does he propose to do about that, or will he allow it to continue?
§ Mr. ParkinsonOne of Japan's most effective barriers against other people's goods is that it produces products that are of high quality, sell all over the world and, not surprisingly, sell well in Japan. However, last year we exported £528 million worth of goods to Japan. There are voluntary restraints on Japanese exports of cars, electronic goods and a range of other products. We keep pressure on Japan through the Community to remove the trade barriers. However, the ultimate barrier is the good performance of the Japanese economy.
§ Mr. Kenneth CarlisleDoes my right hon. Friend agree that the 11 per cent. ceiling that we now have for the import of Japanese cars has worked well? Would it be right to examine whether we should extend that system to other industries that are clearly under attack from the efficient Japanese?
§ Mr. ParkinsonWe have a range of restrictions on goods produced by Japan such as video cassette recorders, television tubes and many others. We have just negotiated restrictions on the export of Japanese forklift trucks. I am glad that my hon. Friend confirms that for some time the Japanese have honoured their arrangement in regard to cars.
§ Mr. Barry JonesHas the right hon. Gentleman failed to land the Nissan car project? Is he aware that the shortlisted areas in Britain are desperate for work and would like to be put out of their misery and told what on earth is going on?
§ Mr. ParkinsonOf course we want the Nissan project to come to Britain. No decision has been taken. The matter is under consideration. I shall be going to Japan soon to press the case for greater Japanese inward investment and for Japan importing more from Britain.
§ Mr. Eldon GriffithsWhen my right hon. Friend goes to Japan—I am glad that he is to do so—will he take up with the Japanese their use of the so-called laser beam approach to exports whereby they identify a specific industry, undercut it, try to drive it out of business and thereby attain a monopoly? Will my right hon. Friend work closely with the EC to resist such tactics?
§ Mr. ParkinsonThat is precisely what we have been doing. A substantial increase in imports from Japan last year was in video cassette recorders, which are simply not made in Britain. [HON. MEMBERS: "Why?"] Because there has not been an industry. If Opposition Members are to be believed, we should deny the British public access to a product that they want to buy but is not made in Britain.
§ Mr. ArcherDoes the right hon. Gentleman understand that the figures that he has just quoted mean that this year Britain is on target for a £2½ billion trade deficit with Japan? As he has just correctly pointed out, that is not assisted by the EC-Japanese agreement on VCRs, which, although it produces more jobs in West Germany, has been of no benefit to the British? Does he agree that it has simply increased prices here and reduced choice?
§ Mr. ParkinsonThe right hon. and learned Gentleman is not correct. The video cassettee recorder industry in Britain has produced 20,000 jobs in the servicing and maintenance sectors. We are now moving to the assembly of recorders, there will be sourcing of components and we shall gradually develop an industry. The right hon. Gentleman is wrong to say that there is no employment from VCRs at present. Those imports generate 20,000 highly-paid jobs in Britain.