§ 12. Mr. Nabarroasked the President of the Board of Trade whether he is aware of the damaging effects to the carpet industry in Britain, arising from discriminatory export taxes imposed by the Indian Government upon such raw materials as wool and jute yarn which are indispensable to carpet production in 2488 Britain; and what negotiations are in hand by his Department to secure cancellation or abandonment of the taxes by the Indian Government.
§ Sir H. ShawcrossI am aware of the existence of export taxes imposed by the Government of India on a number of Indian products including wool and jute yarn. These duties are not discriminatory but apply to all exports irrespective of destination. We have made known to the Indian authorities our concern at the effect which the present high level of certain duties is having on the cost of materials to the United Kingdom industry, but we have not so far been able to persuade the Indian Government to alter the duties.
§ Mr. NabarroDoes the right hon. and learned Gentleman realise that my use of the word "discriminatory" means that two products have been selected from a whole range of products to which to apply these duties? Is he aware that this is particularly damaging to the textile industry in Britain?
§ Sir H. ShawcrossI see no reason to think that these items were selected with a view to discrimination against British trade or industry. It is the policy of some Governments to select particular articles of their own production or manufacture for the imposition of duties.
§ 15. Mr. Nabarroasked the President of the Board of Trade why carpets and rugs of Indian and Pakistani origin are admitted into the United Kingdom duty free, whereas carpets and rugs of British manufacture are subject to ad valorem import duties of up to 45 per cent. entering India and Pakistan; and what steps he is taking to secure reciprocity in this regard.
§ Sir H. ShawcrossCarpets which are manufactured in Commonwealth countries are entitled to free entry into the United Kingdom under the provisions of the Ottawa Agreements Act, 1932. These Agreements are of great mutual benefit and confer valuable tariff advantages to United Kingdom exporters. They do not, however, contain any obligation on the part of India or Pakistan to accord free entry to carpets and rugs of British manufacture although, in the case of India, our exports of carpets enjoy a guaranteed preference of 10 per cent. and an actual 2489 preference of 12½ per cent. It is impossible to negotiate trade agreements on the basis of reciprocity of treatment for individual commodities.