HC Deb 16 December 1954 vol 535 cc1968-9
39. Mr. Holt

asked the President of the Board of Trade the present percentage of liberalisation of our trade with the United States of America and Canada; and whether he has any announcement to make with regard to future policy.

Mr. P. Thorneycroft

Since the hon. Member asked a similar question on the 15th July, import restrictions on a number of commodities have been removed or relaxed. These measures do not, however, significantly affect the estimate made at that time that about one-half of our imports from Canada and the United States of America are free from licensing restrictions. It is our intention to continue to remove restrictions as our balance of payments situation allows.

Mr. Holt

Will the right hon. Gentleman not agree that, although there are balance of payment problems in this, there would be considerable advantages to British industry, both as regards cost and productivity, if a great deal of liberalisation in regard to America and Canada were to take place at an early date?

Mr. Thorneycroft

I think we have moved very fast and very far in our liberalisation, and we shall continue to move in that direction as and when our economic position permits.

Mr. Fletcher-Cooke

Can my right hon. Friend say whether our liberalisation measures have been matched by similar liberalisation measures on the part of the United States of America?

Mr. Thorneycroft

Of course, the United States of America does not impose quota restriction on our goods.

40. Mr. Holt

asked the President of the Board of Trade the present percentage of liberalisation of our trade with Europe; and whether he has any announcement to make with regard to future policy.

Mr. P. Thorneycroft

We have liberalised 83 per cent. of our imports on private account from the Member countries of the Organisation for European Economic Co-operation. Our policy continues to be to remove as rapidly as circumstances permit the remaining quota restrictions on inter-European trade, and we are at present considering with our partners in the Organisation what further measures member countries might take collectively to that end.

Mr. Holt

This is only a 3 per cent. gain on last summer. Would not the Minister agree, now that our balance of payments with European countries has slightly improved again, that a much bolder policy would probably pay dividends in this respect?

Mr. Thorneycroft

We have pursued very bold policies in this respect, but I suggest that we pursue them together. I do not think we should be the only country to do this, but we should do it collectively with our friends in Europe.

Mr. Smithers

Would not the best contribution from this country to the liberalisation of trade with and in Europe be the convertibility of sterling when the time is ripe?